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Title 27: Alcohol, Tobacco Products and Firearms</TITLE>
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27</IDNO>

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<AMDDATE>April 23, 2026
</AMDDATE>

<DIV1 N="1" NODE="27:1" TYPE="TITLE">

<HEAD>Title 27—Alcohol, Tobacco Products and Firearms--Volume 1</HEAD>
<CFRTOC>
<PTHD>Part
</PTHD>
<CHAPTI>
<SUBJECT><E T="04">chapter i</E>—Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury
</SUBJECT>
<PG>1
</PG></CHAPTI>
<ABBR>
<HED>Abbreviations Used in This Chapter:</HED>
<P>ATF = <I>Alcohol, Tobacco and Firearms.</I> T.D. = <I>Treasury Decision.</I> TTB = <I>Alcohol and Tobacco Tax and Trade Bureau.</I>


</P></ABBR></CFRTOC>

<DIV3 N="I" NODE="27:1.0.1" TYPE="CHAPTER">

<HEAD> CHAPTER I—ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY</HEAD>

<DIV4 N="A" NODE="27:1.0.1.1" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER A—ALCOHOL


</HEAD>

<DIV5 N="1" NODE="27:1.0.1.1.1" TYPE="PART">
<HEAD>PART 1—BASIC PERMIT REQUIREMENTS UNDER THE FEDERAL ALCOHOL ADMINISTRATION ACT, NONINDUSTRIAL USE OF DISTILLED SPIRITS AND WINE, BULK SALES AND BOTTLING OF DISTILLED SPIRITS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>27 U.S.C. 203, 204, 206, 211 unless otherwise noted.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-373, 61 FR 26098, May 24, 1996, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 1 appear by T.D. ATF-463, 66 FR 42733, Aug. 15, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.1.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 1.1" NODE="27:1.0.1.1.1.1.13.1" TYPE="SECTION">
<HEAD>§ 1.1   General.</HEAD>
<P>(a) The regulations in this part relate to requirements governing the issuance, amendment, denial, revocation, suspension, automatic termination, and annulment of basic permits and the duration of permits, except that the provisions of part 71, Rules of Practice in Permit Proceedings, of this chapter are hereby made applicable to administrative proceedings with respect to the application for, and to the suspension, revocation, or annulment of, basic permits under the Federal Alcohol Administration Act.
</P>
<P>(b) The regulations in this part also specify what uses of distilled spirits and wine are “nonindustrial,” as that term is used in section 117 of the Federal Alcohol Administration Act (27 U.S.C. 211). Finally, this part, in accordance with section 106 of the Federal Alcohol Administration Act (27 U.S.C. 206), contains the substantive requirements relative to bulk sales and bottling of distilled spirits under the Federal Alcohol Administration Act, including the terms of warehouse receipts for distilled spirits in bulk. No procedural requirements are prescribed.


</P>
</DIV8>


<DIV8 N="§ 1.2" NODE="27:1.0.1.1.1.1.13.2" TYPE="SECTION">
<HEAD>§ 1.2   Territorial extent.</HEAD>
<P>The provisions of this part are applicable to the several States of the United States, the District of Columbia and Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 1.3" NODE="27:1.0.1.1.1.1.13.3" TYPE="SECTION">
<HEAD>§ 1.3   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF-416, 64 FR 49985, Sept. 15, 1999; T.D. TTB-44, 71 FR 16920, Apr. 4, 2006; T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 1.4" NODE="27:1.0.1.1.1.1.13.4" TYPE="SECTION">
<HEAD>§ 1.4   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.1, Delegation of the Administrator's Authorities in 27 CFR Part 1, Basic Permit Requirements Under the Federal Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16920, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.1.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 1.10" NODE="27:1.0.1.1.1.2.13.1" TYPE="SECTION">
<HEAD>§ 1.10   Meaning of terms.</HEAD>
<P>As used in this part, unless the context otherwise requires, terms shall have the meaning ascribed in this part.
</P>
<P><I>Act.</I> The Federal Alcohol Administration Act.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Alcohol.</I> Ethyl alcohol distilled at or above 190° proof.
</P>
<P><I>Applicant.</I> Any person who has filed an application for a basic permit under the Federal Alcohol Administration Act with the appropriate TTB officer.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.1, Delegation of the Administrator's Authorities in 27 CFR Part 1, Basic Permit Requirements Under the Federal Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits.
</P>
<P><I>Basic permit.</I> A document issued under the Act authorizing a person to engage in activities at a particular location.
</P>
<P><I>Brandy.</I> Brandy or wine spirits for addition to wines as permitted by internal revenue law.
</P>
<P><I>Distilled spirits.</I> Section 117(a) of the Federal Alcohol Administration Act (27 U.S.C. 211(a)) defines “distilled spirits” as ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whiskey, rum, brandy, gin, and other distilled spirits, including all dilutions and mixtures thereof for nonindustrial use.
</P>
<P><I>In bulk.</I> Distilled spirits in containers having a capacity in excess of one wine gallon.
</P>
<P><I>Malt beverage.</I> A beverage made by the alcoholic fermentation of an infusion or decoction, or combination of both, in potable brewing water, of malted barley with hops, or their parts, or their products, and with or without other malted cereals, and with or without the addition of unmalted or prepared cereals, other carbohydrates or products prepared therefrom, and with or without the addition of carbon dioxide, and with or without other wholesome products suitable for human food consumption. Standards applying to the use of processing methods and flavors in malt beverage production appear in § 7.11 of this chapter.
</P>
<P><I>Other term.</I> Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the same meaning assigned to it by the Act.
</P>
<P><I>Permittee.</I> Any person holding a basic permit issued under the Federal Alcohol Administration Act.
</P>
<P><I>Person.</I> Any individual, partnership, joint-stock company, business trust, association, corporation, or other form of business enterprise, including a receiver, trustee, or liquidating agent.
</P>
<P><I>Resale at wholesale.</I> A sale to any trade buyer.
</P>
<P><I>Trade buyer.</I> Any person who is a wholesaler or retailer of distilled spirits, wine, or malt beverages.
</P>
<P><I>Wine.</I> Section 117(a) of the Federal Alcohol Administration Act (27 U.S.C. 211(a)) defines “wine” as any of the following products for nonindustrial use that contain not less than 7 percent and not more than 24 percent alcohol by volume:
</P>
<P>(1) Wine as defined in section 610 and section 617 of the Revenue Act of 1918 (26 U.S.C. 5381-5392); and
</P>
<P>(2) Other alcoholic beverages not so defined, but made in the manner of wine, including sparkling and carbonated wine, wine made from condensed grape must, wine made from other agricultural products than the juice of sound, ripe grapes, imitation wine, compounds sold as wine, vermouth, cider, perry, and sake.
</P>
<P><I>Wine gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches.
</P>
<CITA TYPE="N">[T.D. ATF-373, 61 FR 26098, May 24, 1996. Redesignated and amended by T.D. ATF-416, 64 FR 49985, Sept. 15, 1999; T.D. TTB-44, 71 FR 16920, Apr. 4, 2006; T.D. TTB-91, 76 FR 5476, Feb. 1, 2011; T.D. TTB-145, 81 FR 94196, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.1.3" TYPE="SUBPART">
<HEAD>Subpart C—Basic Permits</HEAD>

<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to subpart C of part 1 appear by T.D. ATF-416, 64 FR 49985, Sept. 15, 1999.</PSPACE></EDNOTE>

<DIV7 N="13" NODE="27:1.0.1.1.1.3.13" TYPE="SUBJGRP">
<HEAD>When Required</HEAD>


<DIV8 N="§ 1.20" NODE="27:1.0.1.1.1.3.13.1" TYPE="SECTION">
<HEAD>§ 1.20   Importers.</HEAD>
<P>No person, except pursuant to a basic permit issued under the Act, shall:
</P>
<P>(a) Engage in the business of importing into the United States distilled spirits, wine, or malt beverages; or
</P>
<P>(b) While so engaged, sell, offer or deliver for sale, contract to sell, or ship, in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits, wine, or malt beverages so imported.


</P>
</DIV8>


<DIV8 N="§ 1.21" NODE="27:1.0.1.1.1.3.13.2" TYPE="SECTION">
<HEAD>§ 1.21   Domestic producers, rectifiers, blenders, and warehousemen.</HEAD>
<P>No person, except pursuant to a basic permit issued under the Act, shall:
</P>
<P>(a) Engage in the business of distilling distilled spirits, producing wine, rectifying or blending distilled spirits or wine, or bottling, or warehousing and bottling, distilled spirits; or
</P>
<P>(b) While so engaged, sell, offer or deliver for sale, contract to sell, or ship, in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits or wine so distilled, produced, rectified, blended, or bottled, or warehoused and bottled. 


</P>
</DIV8>


<DIV8 N="§ 1.22" NODE="27:1.0.1.1.1.3.13.3" TYPE="SECTION">
<HEAD>§ 1.22   Wholesalers.</HEAD>
<P>No person, except pursuant to a basic permit issued under the Act, shall:
</P>
<P>(a) Engage in the business of purchasing for resale at wholesale, distilled spirits, wine, or malt beverages; or,
</P>
<P>(b) While so engaged, receive, sell, offer or deliver for sale, contract to sell, or ship in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits, wine, or malt beverages so purchased.


</P>
</DIV8>


<DIV8 N="§ 1.23" NODE="27:1.0.1.1.1.3.13.4" TYPE="SECTION">
<HEAD>§ 1.23   State agencies.</HEAD>
<P>This subpart shall not apply to any agency of a State or political subdivision thereof or to any officer or employee of any such agency, and no such agency or officer or employee thereof shall be required to obtain a basic permit under this subpart.


</P>
</DIV8>

</DIV7>


<DIV7 N="14" NODE="27:1.0.1.1.1.3.14" TYPE="SUBJGRP">
<HEAD>Persons Entitled to Basic Permits</HEAD>


<DIV8 N="§ 1.24" NODE="27:1.0.1.1.1.3.14.5" TYPE="SECTION">
<HEAD>§ 1.24   Qualifications of applicants.</HEAD>
<P>The application of any person shall be granted and the permit issued by the appropriate TTB officer if the applicant proves to the satisfaction of the appropriate TTB officer that:
</P>
<P>(a) Such person (or in case of a corporation, any of its officers, directors, or principal stockholders) has not, within 5 years prior to the date of application, been convicted of a felony under Federal or State law, and has not, within 3 years prior to date of application, been convicted of a misdemeanor under any Federal law relating to liquor, including the taxation thereof; and
</P>
<P>(b) Such person, by reason of the person's business experience, financial standing or trade connections, is likely to commence operations as a distiller, warehouseman and bottler, rectifier, wine producer, wine blender, importer, or wholesaler, as the case may be, within a reasonable period and to maintain such operations in conformity with Federal law; and
</P>
<P>(c) The operations proposed to be conducted by such person are not in violation of the law of the State in which they are to be conducted. 


</P>
</DIV8>

</DIV7>


<DIV7 N="15" NODE="27:1.0.1.1.1.3.15" TYPE="SUBJGRP">
<HEAD>Applications for Permits</HEAD>


<DIV8 N="§ 1.25" NODE="27:1.0.1.1.1.3.15.6" TYPE="SECTION">
<HEAD>§ 1.25   General.</HEAD>
<P>Applications for basic permits to engage in any of the operations set forth in §§ 1.20 to 1.22 must be made on TTB Form 5100.24, or 5100.18, verified as required by § 1.56, and will be accompanied by such affidavits, documents, and other supporting data, as the appropriate TTB officer may require. The application will include all data, written statements, affidavits, documents, or other evidence submitted in support of the application, or upon a hearing.
</P>
<CITA TYPE="N">[T.D. ATF-416, 64 FR 49985, Sept. 15, 1999; T.D. ATF-416a, 64 FR 54776, Oct. 8, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 1.26" NODE="27:1.0.1.1.1.3.15.7" TYPE="SECTION">
<HEAD>§ 1.26   Incomplete or incorrectly executed applications.</HEAD>
<P>Incomplete or incorrectly executed applications will not be acted upon, but the applicant shall be entitled to file a new application without prejudice, or to complete the application already filed.


</P>
</DIV8>


<DIV8 N="§ 1.27" NODE="27:1.0.1.1.1.3.15.8" TYPE="SECTION">
<HEAD>§ 1.27   Change in ownership, management, or control of the applicant.</HEAD>
<P>In the event of any change in the ownership, management, or control of the applicant (in case of a corporation, any change in the officers, directors, or persons holding more than 10 percent of the corporate stock), after the date of filing of any application for a basic permit and prior to final action on such application, the applicant shall notify the appropriate TTB officer immediately of such change.


</P>
</DIV8>


<DIV8 N="§ 1.29" NODE="27:1.0.1.1.1.3.15.9" TYPE="SECTION">
<HEAD>§ 1.29   Individual plant or premises.</HEAD>
<P>An application for a basic permit must be filed, and permit issued, to cover each individual plant or premises where any of the businesses specified in section 103 of the Act is engaged in.
</P>
<CITA TYPE="N">[T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 1.30" NODE="27:1.0.1.1.1.3.15.10" TYPE="SECTION">
<HEAD>§ 1.30   Power of attorney; Form 5000.8 (1534).</HEAD>
<P>If the application and other documents in support of such application are signed by an attorney in fact of an individual, partnership, association, or corporation, or by one of the members of a copartnership or association, or, in the case of a corporation by an officer or other person not authorized by the corporation's bylaws or by its board of directors to sign such applications and supporting documents, the applications must be supported by a duly authenticated copy of the power of attorney conferring authority upon the person signing the documents to execute the same. Such powers of attorney will be executed on Form 5000.8 (1534).
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0079)
</APPRO>
<CITA TYPE="N">[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 1.31" NODE="27:1.0.1.1.1.3.15.11" TYPE="SECTION">
<HEAD>§ 1.31   Denial of permit applications.</HEAD>
<P>If, upon examination of any application for a basic permit, the appropriate TTB officer has reason to believe that the applicant is not entitled to such a permit, the appropriate TTB officer shall institute proceedings for the denial of the application in accordance with the procedure set forth in part 71 of this chapter.


</P>
</DIV8>

</DIV7>


<DIV7 N="16" NODE="27:1.0.1.1.1.3.16" TYPE="SUBJGRP">
<HEAD>Authorization</HEAD>


<DIV8 N="§ 1.35" NODE="27:1.0.1.1.1.3.16.12" TYPE="SECTION">
<HEAD>§ 1.35   Authority to issue, amend, deny, suspend, revoke, or annul basic permits.</HEAD>
<P>The authority and power of issuing, amending, or denying basic permits, or amendments thereof, is conferred upon the appropriate TTB officer except as to agency initiated curtailment. The Administrator, upon consideration of appeals on petitions for review in part 71 of this chapter, may order the appropriate TTB officer to issue, deny, suspend, revoke, or annul basic permits.
</P>
<CITA TYPE="N">[T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="17" NODE="27:1.0.1.1.1.3.17" TYPE="SUBJGRP">
<HEAD>Amendment and Duration of Basic Permits</HEAD>


<DIV8 N="§ 1.40" NODE="27:1.0.1.1.1.3.17.13" TYPE="SECTION">
<HEAD>§ 1.40   Change of name.</HEAD>
<P>In the event of any change in the name (trade or corporate name) of a permittee, or, in the event a permittee desires to engage in operations under an additional trade name, such permittee must file application Form 5100.18 for an amended basic permit, which application must be approved, and amended permit issued, before operations may be commenced under the new name.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0090)
</APPRO>
<CITA TYPE="N">[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 1.41" NODE="27:1.0.1.1.1.3.17.14" TYPE="SECTION">
<HEAD>§ 1.41   Change of address.</HEAD>
<P>In the event of a change in address the permittee must file application Form 5100.18 for an amended basic permit.
</P>
<CITA TYPE="N">[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 1.42" NODE="27:1.0.1.1.1.3.17.15" TYPE="SECTION">
<HEAD>§ 1.42   Change in ownership, management, or control of business.</HEAD>
<P>In the event of any change in the ownership, management, or control of any business operated pursuant to a basic permit (if the permittee is a corporation, if any change occurs in the officers, directors, or persons owning or controlling more than 10 percent of the voting stock of said corporation) the permittee shall immediately notify the appropriate TTB officer of such change, giving the names and addresses of all new persons participating in the ownership, management, or control of such business, or in the case of a corporation, the names and addresses of such new officers, directors, or persons owning or controlling more than 10 percent of the voting stock. Notice to the appropriate TTB officer of any such change shall be accompanied or supplemented by such data in reference to the personal or business history of such persons as the appropriate TTB officer may require.


</P>
</DIV8>


<DIV8 N="§ 1.43" NODE="27:1.0.1.1.1.3.17.16" TYPE="SECTION">
<HEAD>§ 1.43   Duration of permits.</HEAD>
<P>A basic permit shall continue in effect until suspended, revoked, annulled, voluntarily surrendered, or automatically terminated, as provided in the Act and in this part.


</P>
</DIV8>


<DIV8 N="§ 1.44" NODE="27:1.0.1.1.1.3.17.17" TYPE="SECTION">
<HEAD>§ 1.44   Automatic termination of permits.</HEAD>
<P>No basic permit shall be leased, sold, or otherwise voluntarily transferred, and, in the event of such lease, sale, or other voluntary transfer, such basic permit shall automatically terminate thereupon. If any basic permit is transferred by operation of law or if actual or legal control of the permittee is acquired, directly or indirectly whether by stock ownership or in any other manner, by any person, then such permit shall be automatically terminated at the expiration of 30 days thereafter: Provided, That if within such 30-day period application for a new basic permit is made by the transferee or permittee, respectively, then the outstanding basic permit shall continue in effect until such time as the application is finally acted upon.


</P>
</DIV8>

</DIV7>


<DIV7 N="18" NODE="27:1.0.1.1.1.3.18" TYPE="SUBJGRP">
<HEAD>Revocation, Suspension, or Annulment of Basic Permits</HEAD>


<DIV8 N="§ 1.50" NODE="27:1.0.1.1.1.3.18.18" TYPE="SECTION">
<HEAD>§ 1.50   Revocation or suspension.</HEAD>
<P>Whenever the appropriate TTB officer has reason to believe that any permittee has willfully violated any of the conditions of the permittee's basic permit or has not engaged in the operations authorized by the permit for a period of more than two years, the appropriate TTB officer shall institute proceedings for the revocation or suspension of such permit, in accordance with the procedure set forth in part 71 of this chapter, which part is made applicable to such proceedings.


</P>
</DIV8>


<DIV8 N="§ 1.51" NODE="27:1.0.1.1.1.3.18.19" TYPE="SECTION">
<HEAD>§ 1.51   Annulment.</HEAD>
<P>Whenever the appropriate TTB officer has reason to believe that any basic permit was procured through fraud, or misrepresentation or concealment of material fact, the appropriate TTB officer shall institute proceedings for the annulment of such permit in accordance with the procedure set forth in part 71 of this chapter, which part is made applicable to such proceedings.


</P>
</DIV8>


<DIV8 N="§ 1.52" NODE="27:1.0.1.1.1.3.18.20" TYPE="SECTION">
<HEAD>§ 1.52   Disposition of stocks of alcoholic beverages upon revocation, annulment, or automatic termination of basic permit.</HEAD>
<P>In the event of the revocation or annulment of a basic permit, pursuant to part 71 of this chapter, or in the event such permit is automatically terminated by operation of law (27 U.S.C. 204(g) and § 1.44 of this part), the appropriate TTB officer may authorize the orderly disposition of stocks of distilled spirits, wines, or malt beverages then held by the permittee or former permittee upon such conditions as may be considered proper.


</P>
</DIV8>

</DIV7>


<DIV7 N="19" NODE="27:1.0.1.1.1.3.19" TYPE="SUBJGRP">
<HEAD>Miscellaneous</HEAD>


<DIV8 N="§ 1.55" NODE="27:1.0.1.1.1.3.19.21" TYPE="SECTION">
<HEAD>§ 1.55   Recalling permits for correction.</HEAD>
<P>Whenever it shall be discovered that any basic permit has been issued authorizing acts, or combinations of acts, which may not properly, under the law and regulations, as of now or hereafter in force, be authorized, or that any material mistake has occurred in the issuance thereof, the holder of such permit shall forthwith surrender the same for correction or amendment upon demand of the appropriate TTB officer.


</P>
</DIV8>


<DIV8 N="§ 1.56" NODE="27:1.0.1.1.1.3.19.22" TYPE="SECTION">
<HEAD>§ 1.56   Oaths and affirmations.</HEAD>
<P>A document must be verified by an oath or affirmation taken before a person authorized by the laws of the United States or by State or local law to administer oaths or affirmations in the jurisdiction where the document is executed when required by:
</P>
<P>(a) Regulation; or
</P>
<P>(b) An appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 1.57" NODE="27:1.0.1.1.1.3.19.23" TYPE="SECTION">
<HEAD>§ 1.57   Procedure.</HEAD>
<P>The procedures prescribed by the rules of practice in permit proceedings (part 71 of this chapter) are applicable to administrative proceedings for the issuance, amendment, denial, revocation, suspension, or annulment of basic permits, the issuance of subpoenas and the taking of depositions under the Act.


</P>
</DIV8>


<DIV8 N="§ 1.58" NODE="27:1.0.1.1.1.3.19.24" TYPE="SECTION">
<HEAD>§ 1.58   Filing of permits.</HEAD>
<P>Every person receiving a basic permit under the provisions of this part must maintain the permit at the place of business covered by the permit and make it available upon the request of the appropriate TTB officer. Every person required to obtain a basic permit as an importer under § 1.20 must, when importing distilled spirits, wine, or malt beverages under that permit and filing TTB data electronically, file the number of the permit with U.S. Customs and Border Protection (CBP) along with the filing of the customs entry. Regardless of the method of filing, every importer must make the permit available upon request by the appropriate TTB officer or a customs officer.
</P>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94196, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 1.59" NODE="27:1.0.1.1.1.3.19.25" TYPE="SECTION">
<HEAD>§ 1.59   Public information as to applications acted upon.</HEAD>
<P>The appropriate TTB officer shall cause to be maintained currently in the appropriate TTB officer's office for public inspection, until the expiration of one year following final action on the application, the following information with respect to each application for basic permit filed:
</P>
<P>(a) The name, including trade name or names, if any, and the address of the applicant; the kind of permit applied for and the location of the business; whether the applicant is an individual, a partnership or a corporation; if a partnership, the name and address of each partner; if a corporation, the name and address of each of the principal officers and of each stockholder owning 10 percent or more of the corporate stock.
</P>
<P>(b) The time and place set for any hearing on the application.
</P>
<P>(c) The final action taken on the application. In the event a hearing is held upon an application for a basic permit, the appropriate TTB officer shall make available for inspection at the appropriate TTB officer's office, upon request therefor: The transcript of the hearing, a copy of the administrative law judge's recommended decision, a copy of the appropriate TTB officer's decision and, in the event of an appeal to the Administrator, the decision on appeal with the reasons given in support thereof.
</P>
<CITA TYPE="N">[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.1.4" TYPE="SUBPART">
<HEAD>Subpart D—Nonindustrial Use of Distilled Spirits and Wine</HEAD>


<DIV7 N="20" NODE="27:1.0.1.1.1.4.20" TYPE="SUBJGRP">
<HEAD>Uses Regarded as Industrial</HEAD>


<DIV8 N="§ 1.60" NODE="27:1.0.1.1.1.4.20.1" TYPE="SECTION">
<HEAD>§ 1.60   Use of distilled spirits.</HEAD>
<P>The following uses of distilled spirits are regarded as “industrial” and will be excluded from any application of the term “nonindustrial use.” The use of distilled spirits:
</P>
<P>(a) Free of tax by, and for the use of, the United States or any governmental agency thereof, any State, any political subdivision of a State, or the District of Columbia, for nonbeverage purposes; or
</P>
<P>(b) Free of tax for nonbeverage purposes and not for resale or use in the manufacture of any product for sale:
</P>
<P>(1) For the use of any educational organization described in 26 U.S.C. 170(b)(1)(A)(ii) which is exempt from income tax under 26 U.S.C. 501(a), or for the use of any scientific university or college of learning;
</P>
<P>(2) For any laboratory for use exclusively in scientific research;
</P>
<P>(3) For use at any hospital, blood bank, or sanitarium (including use in making analysis or test at such hospital, blood bank, or sanitarium), or at any pathological laboratory exclusively engaged in making analyses, or tests, for hospitals or sanitariums; or
</P>
<P>(4) For the use of any clinic operated for charity and not for profit (including use in compounding of bona fide medicines for treatment outside of such clinics of patients thereof); or
</P>
<P>(c) Free of tax, after denaturation of such spirits in the manner prescribed by law for:
</P>
<P>(1) Use in the manufacture of ether, chloroform, or other definite chemical substance where such distilled spirits are changed into some other chemical substance and do not appear in the finished product; or
</P>
<P>(2) Any other use in the arts and industries (except for uses prohibited by 26 U.S.C. 5273 (b) or (d)) and for fuel, light, and power.


</P>
</DIV8>


<DIV8 N="§ 1.61" NODE="27:1.0.1.1.1.4.20.2" TYPE="SECTION">
<HEAD>§ 1.61   Use of wine.</HEAD>
<P>The following uses of wine are regarded as “industrial” and will be excluded from any application of the term “nonindustrial”. The use of wine:
</P>
<P>(a) Without payment of tax for use in the production of vinegar; or
</P>
<P>(b) Free of tax for experimental or research purposes by any scientific university, college of learning, or institution of scientific research; or
</P>
<P>(c) Free of tax for use by the United States or any agency thereof, and for use for analysis, testing, research, or experimentation by the governments of the several States and the District of Columbia or of any political subdivision thereof or by any agency of such governments; or
</P>
<P>(d) Which has been rendered unfit for beverage use.


</P>
</DIV8>


<DIV8 N="§ 1.62" NODE="27:1.0.1.1.1.4.20.3" TYPE="SECTION">
<HEAD>§ 1.62   Use of distilled spirits or wine for experimental purposes and in manufacture of nonbeverage products.</HEAD>
<P>The use of distilled spirits or wine for experimental purposes and in the manufacture of (a) medicinal, pharmaceutical, or antiseptic products, including prescriptions compounded by retail druggists; (b) toilet preparations; (c) flavoring extracts, syrups, or food products; or (d) scientific, chemical, mechanical, or industrial products, provided such products are unfit for beverage use, is regarded as “industrial,” and will be excluded from any application of the term “nonindustrial use.”


</P>
</DIV8>

</DIV7>


<DIV7 N="21" NODE="27:1.0.1.1.1.4.21" TYPE="SUBJGRP">
<HEAD>Uses Classed as Nonindustrial</HEAD>


<DIV8 N="§ 1.70" NODE="27:1.0.1.1.1.4.21.4" TYPE="SECTION">
<HEAD>§ 1.70   General.</HEAD>
<P>All uses of distilled spirits and wines, except as provided in §§ 1.60, 1.61, and 1.62 of this part, are regarded as “nonindustrial.” Such “nonindustrial” use shall include, but not be limited to, distilled spirits or wine used for beverage purposes, or in the manufacture, rectification, or blending of alcoholic beverages; or in the preparation of food or drink by a hotel, restaurant, tavern, or similar establishment; or for sacramental purposes; or as a medicine.


</P>
</DIV8>


<DIV8 N="§ 1.71" NODE="27:1.0.1.1.1.4.21.5" TYPE="SECTION">
<HEAD>§ 1.71   Distilled spirits in containers of a capacity of one gallon or less.</HEAD>
<P>Distilled spirits in containers of a capacity of one wine gallon or less, except anhydrous alcohol and alcohol which may be withdrawn free of tax under the internal revenue laws, will be deemed to be for nonindustrial use.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.1.5" TYPE="SUBPART">
<HEAD>Subpart E—Bulk Sales and Bottling of Distilled Spirits</HEAD>


<DIV7 N="22" NODE="27:1.0.1.1.1.5.22" TYPE="SUBJGRP">
<HEAD>Bulk Sales and Bottling</HEAD>


<DIV8 N="§ 1.80" NODE="27:1.0.1.1.1.5.22.1" TYPE="SECTION">
<HEAD>§ 1.80   Sales of distilled spirits in bulk.</HEAD>
<P>It is unlawful for any person to sell, offer to sell, contract to sell, or otherwise dispose of distilled spirits in bulk, for nonindustrial use, except for export or to the classes of persons enumerated in §§ 1.82, 1.83, and 1.84.


</P>
</DIV8>


<DIV8 N="§ 1.81" NODE="27:1.0.1.1.1.5.22.2" TYPE="SECTION">
<HEAD>§ 1.81   Importation of distilled spirits in bulk.</HEAD>
<P>It is unlawful for any person to import distilled spirits in bulk, for nonindustrial use, except for sale to or for use by the classes of persons enumerated in §§ 1.82, 1.83 and 1.84.


</P>
</DIV8>


<DIV8 N="§ 1.82" NODE="27:1.0.1.1.1.5.22.3" TYPE="SECTION">
<HEAD>§ 1.82   Acquiring or receiving distilled spirits in bulk for redistillation, processing, rectification, warehousing, or warehousing and bottling.</HEAD>
<P>(a) <I>Proprietors of distilled spirits plants.</I> Persons holding basic permits (issued under subpart B of this part) authorizing the distilling, processing, rectifying, or warehousing and bottling of distilled spirits, or operating permits (issued under § 19.91 and succeeding sections of this chapter) may acquire or receive in bulk and redistill, warehouse, or process distilled spirits, so far as permitted by law.
</P>
<P>(b) <I>Proprietors of class 8 customs bonded warehouses.</I> If the permittee operates a class 8 customs bonded warehouse, the permittee may acquire or receive in bulk, and warehouse and bottle, imported distilled spirits, so far as permitted by the customs laws.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7805 (68A Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 981, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. TTB-92, 76 FR 9090, Feb. 16, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 1.83" NODE="27:1.0.1.1.1.5.22.4" TYPE="SECTION">
<HEAD>§ 1.83   Acquiring or receiving distilled spirits in bulk for addition to wine.</HEAD>
<P>Persons holding permits as producers and blenders of wine, may, pursuant to such permit, acquire or receive in bulk alcohol or brandy for addition to wines.


</P>
</DIV8>


<DIV8 N="§ 1.84" NODE="27:1.0.1.1.1.5.22.5" TYPE="SECTION">
<HEAD>§ 1.84   Acquisition of distilled spirits in bulk by Government agencies.</HEAD>
<P>Any agency of the United States, or of any State or political subdivision thereof, may acquire or receive in bulk, and warehouse and bottle, imported and domestic distilled spirits in conformity with the internal revenue laws.


</P>
</DIV8>

</DIV7>


<DIV7 N="23" NODE="27:1.0.1.1.1.5.23" TYPE="SUBJGRP">
<HEAD>Warehouse Receipts</HEAD>


<DIV8 N="§ 1.90" NODE="27:1.0.1.1.1.5.23.6" TYPE="SECTION">
<HEAD>§ 1.90   Distilled spirits in bulk.</HEAD>
<P>By the terms of the Act (27 U.S.C. 206), all warehouse receipts for distilled spirits in bulk must require that the warehouseman shall package such distilled spirits, before delivery, in bottles labeled and marked in accordance with law, or deliver such distilled spirits in bulk only to persons to whom it is lawful to sell or otherwise dispose of distilled spirits in bulk.


</P>
</DIV8>


<DIV8 N="§ 1.91" NODE="27:1.0.1.1.1.5.23.7" TYPE="SECTION">
<HEAD>§ 1.91   Bottled distilled spirits.</HEAD>
<P>The provisions of the Act, which forbid any person to sell, offer to sell, contract to sell, or otherwise dispose of warehouse receipts for distilled spirits in bulk, do not apply to warehouse receipts for bottled distilled spirits.
</P>
<CROSSREF>
<HED>Cross Reference:
</HED>
<P>For labeling of distilled spirits, see part 5 of this chapter.</P></CROSSREF>
</DIV8>

</DIV7>


<DIV7 N="24" NODE="27:1.0.1.1.1.5.24" TYPE="SUBJGRP">
<HEAD>Sales of Distilled Spirits for Industrial Use</HEAD>


<DIV8 N="§ 1.95" NODE="27:1.0.1.1.1.5.24.8" TYPE="SECTION">
<HEAD>§ 1.95   General.</HEAD>
<P>Distillers, rectifiers, and other permittees engaged in the sale or other disposition of distilled spirits for nonindustrial use shall not sell or otherwise dispose of distilled spirits in bulk (other than alcohol) for industrial use, unless such distilled spirits are shipped or delivered directly to the industrial user thereof.


</P>
</DIV8>

</DIV7>

</DIV6>

</DIV5>


<DIV5 N="4" NODE="27:1.0.1.1.2" TYPE="PART">
<HEAD>PART 4—LABELING AND ADVERTISING OF WINE
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>27 U.S.C. 205, unless otherwise noted.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. 6521, 25 FR 13835, Dec. 29, 1960, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 4 appear by T.D. ATF-425, 65 FR 11890, Mar. 7, 2000.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.2.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 4.1" NODE="27:1.0.1.1.2.1.25.1" TYPE="SECTION">
<HEAD>§ 4.1   General.</HEAD>
<P>The regulations in this part relate to the labeling and advertising of wine.


</P>
</DIV8>


<DIV8 N="§ 4.2" NODE="27:1.0.1.1.2.1.25.2" TYPE="SECTION">
<HEAD>§ 4.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States, the District of Columbia, and Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 4.3" NODE="27:1.0.1.1.2.1.25.3" TYPE="SECTION">
<HEAD>§ 4.3   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46911, Sept. 23, 1981, as amended by T.D. ATF-249, 52 FR 5955, Feb. 27, 1987; T.D. 372, 61 FR 20723, May 8, 1996; T.D. ATF-425, 65 FR 11890, Mar. 7, 2000; T.D. TTB-44, 71 FR 16920, Apr. 4, 2006; T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 4.4" NODE="27:1.0.1.1.2.1.25.4" TYPE="SECTION">
<HEAD>§ 4.4   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.4, Delegation of the Administrator's  Authorities in 27 CFR Part 4, Labeling and Advertising of Wine. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16920, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 4.5" NODE="27:1.0.1.1.2.1.25.5" TYPE="SECTION">
<HEAD>§ 4.5   Related regulations.</HEAD>
<P>The following regulations also relate to this part: 
</P>
<EXTRACT>
<FP-1>7 CFR Part 205—National Organic Program 
</FP-1>
<FP-1>27 CFR Part 1—Basic Permit Requirements Under the Federal Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits 
</FP-1>
<FP-1>27 CFR Part 5—Labeling and Advertising of Distilled Spirits 
</FP-1>
<FP-1>27 CFR Part 7—Labeling and Advertising of Malt Beverages 
</FP-1>
<FP-1>27 CFR Part 9—American Viticultural Areas 
</FP-1>
<FP-1>27 CFR Part 12—Foreign Nongeneric Names of Geographic Significance Used in the Designation of Wines 
</FP-1>
<FP-1>27 CFR Part 13—Labeling Proceedings 
</FP-1>
<FP-1>27 CFR Part 16—Alcoholic Beverage Health Warning Statement 
</FP-1>
<FP-1>27 CFR Part 24—Wine 
</FP-1>
<FP-1>27 CFR Part 26—Liquors and Articles From Puerto Rico and the Virgin Islands 
</FP-1>
<FP-1>27 CFR Part 27—Importation of Distilled Spirits, Wines, and Beer 
</FP-1>
<FP-1>27 CFR Part 28—Exportation of Alcohol
</FP-1>
<FP-1>27 CFR Part 71—Rules of Practice in Permit Proceedings</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-483, 67 FR 62857, Oct. 8, 2002, as amended by T.D. TTB-8, 69 FR 3829, Jan. 27, 2004; T.D. TTB-91, 76 FR 5476, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 4.6" NODE="27:1.0.1.1.2.1.25.6" TYPE="SECTION">
<HEAD>§ 4.6   Wines covered by this part.</HEAD>
<P>The regulations in this part apply to wine containing not less than 7 percent and not more than 24 percent alcohol by volume.
</P>
<CITA TYPE="N">[T.D. TTB-158, 85 FR 18721, Apr. 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 4.7" NODE="27:1.0.1.1.2.1.25.7" TYPE="SECTION">
<HEAD>§ 4.7   Products produced as wine that are not covered by this part.</HEAD>
<P>Certain wine products do not fall within the definition of a “wine” under the Federal Alcohol Administration Act (FAA Act) and are thus not subject to this part. They may, however, also be subject to other labeling requirements. See 27 CFR parts 24 and 27 for labeling requirements applicable to “wine” as defined by the IRC. See 27 CFR part 16 for health warning statement requirements applicable to “alcoholic beverages” as defined by the Alcoholic Beverage Labeling Act.
</P>
<P>(a) <I>Products containing less than 7 percent alcohol by volume.</I> The regulations in this part do not cover products that would otherwise meet the definition of wine except that they contain less than 7 percent alcohol by volume. Bottlers and importers of alcohol beverages that do not fall within the definition of malt beverages, wine, or distilled spirits under the FAA Act should refer to the applicable labeling regulations for foods issued by the U.S. Food and Drug Administration. See 21 CFR part 101.
</P>
<P>(b) <I>Products containing more than 24 percent alcohol by volume.</I> Products that would otherwise meet the definition of wine except that they contain more than 24 percent alcohol by volume are classified as distilled spirits and must be labeled in accordance with part 5 of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-158, 85 FR 18721, Apr. 2, 2020, as amended by T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.2.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 4.10" NODE="27:1.0.1.1.2.2.25.1" TYPE="SECTION">
<HEAD>§ 4.10   Meaning of terms.</HEAD>
<P>As used in this part, unless the context otherwise requires, terms shall have the meaning ascribed in this part.


</P>
<P><I>Added brandy.</I> Brandy or wine spirits for use in fortification of wine as permitted by internal revenue law.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Advertisement.</I> See § 4.61 for meaning of term as used in subpart G of this part.
</P>
<P><I>Alcohol.</I> Ethyl alcohol distilled at or above 190° proof.
</P>
<P><I>American.</I> The several States, the District of Columbia, and Puerto Rico; “State” includes the District of Columbia and Puerto Rico.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.4, Delegation of the Administrator's Authorities in 27 CFR Part 4, Labeling and Advertising of Wine.
</P>
<P><I>Bottler.</I> Any person who places wine in containers of four liters or less. (See meaning for “containers” and “packer”.)
</P>
<P><I>Brand label.</I> The label carrying, in the usual distinctive design, the brand name of the wine.
</P>
<P><I>Certificate of label approval (COLA).</I> A certificate issued on form TTB F 5100.31 that authorizes the bottling of wine, distilled spirits, or malt beverages, or the removal of bottled wine, distilled spirits, or malt beverages from customs custody for introduction into commerce, as long as the product bears labels identical to the labels appearing on the face of the certificate, or labels with changes authorized by TTB on the certificate or otherwise (such as through the issuance of public guidance available on the TTB website at <I>www.ttb.gov</I>).
</P>
<P><I>Container.</I> Any bottle, barrel, cask, or other closed receptacle irrespective of size or of the material from which made for use for the sale of wine at retail. (See meaning for “bottler” and “packer”.)
</P>
<P><I>Customs officer.</I> An officer of U.S. Customs and Border Protection (CBP) or any agent or other person authorized by law to perform the duties of such an officer.
</P>
<P><I>Gallon.</I> A U.S. gallon of 231 cubic inches of alcoholic beverages at 60 °F.
</P>
<P><I>Interstate or foreign commerce.</I> Commerce between any State and any place outside thereof, or commerce within any Territory or the District of Columbia, or between points within the same State but through any place outside thereof.
</P>
<P><I>Liter or litre.</I> (a) A metric unit of capacity equal to 1,000 cubic centimeters and equivalent to 33.814 U.S. fluid ounces. For purposes of this part, a liter is subdivided into 1,000 milliliters (ml).
</P>
<P>(b) For purposes of regulation, one liter of wine is defined as that quantity (mass) of wine occupying a one-liter volume at 20 °Celsius (68 °F).
</P>
<P><I>Packer.</I> Any person who places wine in containers in excess of four liters. (See meaning for “container” and “bottler”.)
</P>
<P><I>Percent or percentage.</I> Percent by volume.
</P>
<P><I>Permittee.</I> Any person holding a basic permit under the Federal Alcohol Administration Act.
</P>
<P><I>Person.</I> Any individual, partnership, joint-stock company, business trust, association, corporation, or other form of business enterprise, including a receiver, trustee, or liquidating agent, and including an officer or employee of any agency of a State or political subdivision thereof.
</P>
<P><I>Pure condensed must.</I> The dehydrated juice or must of sound, ripe grapes, or other fruit or agricultural products, concentrated to not more than 80° (Balling), the composition thereof remaining unaltered except for removal of water.


</P>
<P><I>Restored pure condensed must.</I> Pure condensed must to which has been added an amount of water not exceeding the amount removed in the dehydration process.
</P>
<P><I>Sugar.</I> Pure cane, beet, or dextrose sugar containing, respectively, not less than 95 percent of actual sugar calculated on a dry basis.
</P>
<P><I>Total solids.</I> The degrees Brix of the dealcoholized wine restored to its original volume.
</P>
<P><I>Trade buyer.</I> Any person who is a wholesaler or retailer.
</P>
<P><I>United States.</I> The several States, the District of Columbia, and Puerto Rico; the term “State” includes the District of Columbia and Puerto Rico.
</P>
<P><I>Use of other terms.</I> Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the same meaning assigned to it by the Act.
</P>
<P><I>Wine.</I> (1) Wine as defined in section 610 and section 617 of the Revenue Act of 1918 (26 U.S.C. 5381-5392), only if for nonindustrial use and containing not less than 7 percent and not more than 24 percent of alcohol by volume; and
</P>
<P>(2) Other alcoholic beverages not so defined, but made in the manner of wine, including sparkling and carbonated wine, wine made from condensed grape must, wine made from other agricultural products than the juice of sound, ripe grapes, imitation wine, compounds sold as wine, vermouth, cider, perry, and sake, only if for nonindustrial use and containing not less than 7 percent and not more than 24 percent of alcohol by volume.
</P>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13532, Mar. 31, 1978, as amended by T.D. ATF-49, 43 FR 19848, May 9, 1978; T.D. ATF-53, 43 FR 37675, Aug. 23, 1978; 44 FR 55838, Sept. 29, 1979; T.D. ATF-66, 45 FR 40544, June 13, 1980; T.D. ATF-94, 46 FR 55095, Nov. 6, 1981; T.D. ATF-299, 55 FR 24988, June 19, 1990; T.D. ATF-425, 65 FR 11891, Mar. 7, 2000; T.D. TTB-44, 71 FR 16921, Apr. 4, 2006; T.D. TTB-91, 76 FR 5476, Feb. 1, 2011; T.D. TTB-145, 81 FR 94196, Dec. 22, 2016; T.D. TTB-158, 85 FR 18721, Apr. 2, 2020; T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.2.3" TYPE="SUBPART">
<HEAD>Subpart C—Standards of Identity for Wine</HEAD>


<DIV8 N="§ 4.20" NODE="27:1.0.1.1.2.3.25.1" TYPE="SECTION">
<HEAD>§ 4.20   Application of standards.</HEAD>
<P>The standards of identity for the several classes and types of wine set forth herein shall be applicable to all regulations and permits issued under the Federal Alcohol Administration Act. Whenever any term for which a standard of identity has been established herein is used in any such regulation or permit, such term shall have the meaning assigned to it by such standard of identity.


</P>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 4.21" NODE="27:1.0.1.1.2.3.25.2" TYPE="SECTION">
<HEAD>§ 4.21   The standards of identity.</HEAD>
<P>Standards of identity for the several classes and types of wine set forth in this part shall be as follows:
</P>
<P>(a) <I>Class 1; grape wine</I>— (1) <I>Grape wine</I> is wine produced by the normal alcoholic fermentation of the juice of sound, ripe grapes (including restored or unrestored pure condensed grape must), with or without the addition, after fermentation, of pure condensed grape must and with or without added spirits of the type authorized for natural wine under 26 U.S.C. 5382, but without other addition or abstraction except as may occur in cellar treatment of the type authorized for natural wine under 26 U.S.C. 5382. 
</P>
<P>(2) Still grape wine may be ameliorated, or sweetened, before, during, or after fermentation, in a way that is consistent with the limits set forth in 26 U.S.C. 5383 for natural grape wine.
</P>
<P>(3) The maximum volatile acidity, calculated as acetic acid and exclusive of sulfur dioxide is 0.14 gram per 100 mL (20 degrees Celsius) for red wine and 0.12 gram per 100 mL (20 degrees Celsius) for other grape wine, provided that the maximum volatile acidity for wine produced from unameliorated juice of 28 or more degrees Brix is 0.17 gram per 100 mL for red wine and 0.15 gram per 100 mL for white wine.
</P>
<P>(4) Grape wine deriving its characteristic color or lack of color from the presence or absence of the red coloring matter of the skins, juice, or pulp of grapes may be designated as “red wine,” “pink (or rose) wine,” “amber wine,” or “white wine” as the case may be. Any grape wine containing no added grape brandy or alcohol may be further designated as “natural.”
</P>
<P>(5) <I>Table wine</I> is grape wine having an alcoholic content not in excess of 14 percent by volume. Such wine may also be designated as “light wine,” “red table wine,” “light white wine,” “sweet table wine,” etc., as the case may be.
</P>
<P>(6) <I>Dessert wine</I> is grape wine having an alcoholic content in excess of 14 percent but not in excess of 24 percent by volume. Dessert wine having the taste, aroma and characteristics generally attributed to sherry and an alcoholic content, derived in part from added grape brandy or alcohol, of not less than 17 percent by volume, may be designated as “sherry”. Dessert wines having the taste, aroma and characteristics generally attributed to angelica, madeira, muscatel and port and an alcoholic content, derived in part from added grape brandy or alcohol, of not less than 18 percent by volume, may be designated as “angelica,” “madeira,” “muscatel,” or “port” respectively. Dessert wines having the taste, aroma, and characteristics generally attributed to any of the above products and an alcoholic content, derived in part from added grape brandy or alcohol, in excess of 14 percent by volume but, in the case of sherry, less than 17 percent, or, in other cases, less than 18 percent by volume, may be designated as “light sherry,” “light angelica,” “light madeira,” “light muscatel” or “light port,” respectively.
</P>
<P>(b) <I>Class 2; sparkling grape wine.</I> (1) <I>Sparkling grape wine</I> (including “sparkling wine,” “sparkling red wine” and “sparkling white wine”) is grape wine made effervescent with carbon dioxide resulting solely from the fermentation of the wine within a closed container, tank or bottle.
</P>
<P>(2) <I>Champagne</I> is a type of sparkling light wine which derives its effervescence solely from the secondary fermentation of the wine within glass containers of not greater than one gallon capacity, and which possesses the taste, aroma, and other characteristics attributed to champagne as made in the champagne district of France.
</P>
<P>(3)(i) A sparkling light wine having the taste, aroma, and characteristics generally attributed to champagne but not otherwise conforming to the standard for “champagne” may, in addition to but not in lieu of the class designation “sparkling wine,” be further designated as:
</P>
<P>(A) “Champagne style;” or
</P>
<P>(B) “Champagne type;” or
</P>
<P>(C) “American (or New York State, Napa Valley, etc.) champagne,” along with one of the following terms: “Bulk process,” “fermented outside the bottle,” “secondary fermentation outside the bottle,” “secondary fermentation before bottling,” “not fermented in the bottle,” or “not bottle fermented.” The term “charmat method” or “charmat process” may be used as additional information.
</P>
<P>(ii) Labels shall be so designed that all the words in such further designation are readily legible under ordinary conditions and are on a contrasting background. In the case of paragraph (b)(3)(i)(C) of this section, TTB will consider whether the label as a whole provides the consumer with adequate information about the method of production and origin of the wine. TTB will evaluate each label for legibility and clarity, based on such factors as type size and style for all components of the further designation and the optional term “charmat method” or “charmat process,” as well as the contrast between the lettering and its background, and the placement of information on the label.
</P>
<P>(iii) Notwithstanding the provisions of paragraphs (b)(3)(i)(A), (B) and (C) of this section, the appropriate TTB officer may authorize the use of a term on sparkling wine labels, as an alternative to those terms authorized in paragraph (b)(3)(i) of this section, but not in lieu of the required class designation “sparkling wine,” upon a finding that such term adequately informs the consumer about the method of production of the sparkling wine.
</P>
<P>(4) <I>Crackling wine, petillant wine, frizzante wine</I> (including cremant, perlant, reciotto, and other similar wine) is sparkling light wine normally less effervescent than champagne or other similar sparkling wine, but containing sufficient carbon dioxide in solution to produce, upon pouring under normal conditions, after the disappearance of air bubbles, a slow and steady effervescence evidenced by the formation of gas bubbles flowing through the wine. Crackling wine which derives its effervescence from secondary fermentation in containers greater than 1-gallon capacity shall be designated “crackling wine—bulk process,” and the words “bulk process” shall appear in lettering of substantially the same size as the words “crackling wine.”
</P>
<P>(c) <I>Class 3; carbonated grape wine. “Carbonated grape wine”</I> (including <I>“carbonated wine,” “carbonated red wine,”</I> and <I>“carbonated white wine”</I>) is grape wine made effervescent with carbon dioxide other than that resulting solely from the secondary fermentation of the wine within a closed container, tank or bottle.
</P>
<P>(d) [Reserved]
</P>
<P>(e) <I>Class 5; fruit wine.</I> 
</P>
<P>(1) Fruit wine is wine produced by the normal alcoholic fermentation of the juice of sound, ripe fruit (including restored or unrestored pure condensed fruit must) other than grapes, with or without the addition, after fermentation, of pure condensed fruit must and, with or without added spirits of the type authorized for natural wine under 26 U.S.C. 5382, but without other addition or abstraction except as may occur in cellar treatment of the type authorized for natural wine under 26 U.S.C. 5382. 
</P>
<P>(2) Fruit wine may be ameliorated, or sweetened, before, during, or after fermentation, in a way that is consistent with the limits set forth in 26 U.S.C. 5384 for natural fruit wine.
</P>
<P>(3) The maximum volatile acidity, calculated as acetic acid and exclusive of sulfur dioxide, shall not be, for fruit wine that does not contain added brandy or wine spirits, more than 0.14 gram, and for other fruit wine, more than 0.12 gram, per 100 milliliters (20 degrees Celsius).
</P>
<P>(4) Any fruit wine containing no added grape brandy or alcohol may be further designated as “natural.”
</P>
<P>(5) <I>Berry wine</I> is fruit wine produced from berries.
</P>
<P>(6) <I>Fruit table wine</I> or <I>berry table wine</I> is fruit or berry wine having an alcoholic content not in excess of 14 percent by volume. Such wine may also be designated “light fruit wine,” or “light berry wine.”
</P>
<P>(7) <I>Fruit dessert wine</I> or <I>berry dessert wine</I> is fruit or berry wine having an alcoholic content in excess of 14 percent but not in excess of 24 percent by volume.
</P>
<P>(8) Fruit wine derived wholly (except for sugar, water, or added alcohol) from one kind of fruit shall be designated by the word “wine” qualified by the name of such fruit, <I>e.g.,</I> “peach wine,” “blackberry wine,” “orange wine.” Fruit wine not derived wholly from one kind of fruit shall be designated as “fruit wine” or “berry wine,” as the case may be, qualified by a truthful and adequate statement of composition appearing in direct conjunction therewith. If the fruit wine is derived wholly (except for sugar, water, or added alcohol) from more than one citrus fruit, the designation “citrus wine” or “citrus fruit wine” may, but is not required to, be used instead of “fruit wine,” and the designation must also be qualified by a truthful and adequate statement of composition appearing in direct conjunction therewith. Fruit wines which are derived wholly (except for sugar, water, or added alcohol) from apples or pears may be designated “cider” and “perry,” respectively, and shall be so designated if lacking in vinous taste, aroma, and characteristics. Fruit wine rendered effervescent by carbon dioxide resulting solely from the secondary fermentation of the wine within a closed container, tank, or bottle shall be further designated as “sparkling”; and fruit wine rendered effervescent by carbon dioxide otherwise derived shall be further designated as “carbonated.” 
</P>
<P>(f) <I>Class 6; wine from other agricultural products.</I> (1)(i) Wine of this class is wine (other than grape wine, citrus wine, or fruit wine) made by the normal alcoholic fermentation of sound fermentable agricultural products, either fresh or dried, or of the restored or unrestored pure condensed must thereof, with the addition before or during fermentation of a volume of water not greater than the minimum necessary to correct natural moisture deficiencies in such products, with or without the addition, after fermentation, of pure condensed must, and with or without added alcohol or such other spirits as will not alter the character of the product, but without other addition or abstraction except as may occur in cellar treatment: <I>Provided,</I> That a domestic product may be ameliorated or sweetened in accordance with part 24, of this chapter, and any product other than domestic may be ameliorated before, during, or after fermentation by adding, separately or in combination, dry sugar or such an amount of sugar and water solution as will not increase the volume of the resulting product more than 35 percent, but in no event shall any product so ameliorated have an alcoholic content, derived by fermentation of more than 14 percent by volume, or a natural acid content, if water has been added, of less than 5 parts per thousand, or a total solids content of more than 22 grams per 100 cubic centimeters.
</P>
<P>(ii) The maximum volatile acidity, calculated as acetic acid and exclusive of sulfur dioxide, shall not be, for natural wine of this class, more than 0.14 gram, and for other wine of this class, more than 0.12 gram, per 100 milliliters (20 °C.).
</P>
<P>(iii) Wine of this class containing no added alcohol or other spirits may be further designated as “natural”.
</P>
<P>(2) <I>Table wine</I> of this class is wine having an alcoholic content not in excess of 14 percent by volume. Such wine may also be designated as “light”.
</P>
<P>(3) <I>Dessert wine</I> of this class is wine having an alcoholic content in excess of 14 percent but not in excess of 24 percent by volume.
</P>
<P>(4) <I>Raisin wine</I> is wine of this class made from dried grapes.
</P>
<P>(5) <I>Sake</I> is wine of this class produced from rice in accordance with the commonly accepted method of manufacture of such product.
</P>
<P>(6) Wine of this class derived wholly (except for sugar, water, or added alcohol) from one kind of agricultural product shall except in the case of “sake,” be designated by the word “wine” qualified by the name of such agricultural product, e.g., “honey wine,” “raisin wine,” “dried blackberry wine.” Wine of this class not derived wholly from one kind of agricultural product shall be designated as “wine” qualified by a truthful and adequate statement of composition appearing in direct conjunction therewith. Wine of this class rendered effervescent by carbon dioxide resulting solely from the secondary fermentation of wine within a closed container, tank, or bottle shall be further designated as “sparkling”; and wine of this class rendered effervescent by carbon dioxide otherwise derived shall be further designated as “carbonated.”
</P>
<P>(g) <I>Class 7; aperitif wine.</I> (1) <I>Aperitif wine</I> is wine having an alcoholic content of not less than 15 percent by volume, compounded from grape wine containing added brandy or alcohol, flavored with herbs and other natural aromatic flavoring materials, with or without the addition of caramel for coloring purposes, and possessing the taste, aroma, and characteristics generally attributed to aperitif wine and shall be so designated unless designated as “vermouth” under paragraph (g)(2) of this section.
</P>
<P>(2) <I>Vermouth</I> is a type of aperitif wine compounded from grape wine, having the taste, aroma, and characteristics generally attributed to vermouth, and shall be so designated.
</P>
<P>(h) <I>Class 8; imitation and substandard or other than standard wine.</I> (1) “Imitation wine” shall bear as a part of its designation the word “imitation,” and shall include:
</P>
<P>(i) Any wine containing synthetic materials.
</P>
<P>(ii) Any wine made from a mixture of water with residue remaining after thorough pressing of grapes, fruit, or other agricultural products.
</P>
<P>(iii) Any class or type of wine the taste, aroma, color, or other characteristics of which have been acquired in whole or in part, by treatment with methods or materials of any kind (except as permitted in § 4.22(c)(6)), if the taste, aroma, color, or other characteristics of normal wines of such class or type are acquired without such treatment.
</P>
<P>(iv) Any wine made from must concentrated at any time to more than 80° (Balling).
</P>
<P>(2) “Substandard wine” or “other than standard wine” shall bear as a part of its designation the words “substandard” or “other than standard,” and shall include: 
</P>
<P>(i) Any wine having a volatile acidity in excess of the maximum prescribed therefor in §§ 4.20 to 4.25.
</P>
<P>(ii) Any wine for which no maximum volatile acidity is prescribed in §§ 4.20 to 4.25, inclusive, having a volatile acidity, calculated as acetic acid and exclusive of sulfur dioxide, in excess of 0.14 gram per 100 milliliters (20 °C.).
</P>
<P>(iii) Any wine for which a standard of identity is prescribed in this §§ 4.20 to 4.25, inclusive, which, through disease, decomposition, or otherwise, fails to have the composition, color, and clean vinous taste and aroma of normal wines conforming to such standard.
</P>
<P>(iv) Any “grape wine” “citrus wine,” “fruit wine,” or “wine from other agricultural products” to which has been added sugar and water solution in an amount which is in excess of the limitations prescribed in the standards of identity for these products, unless, in the case of “citrus wine,” “fruit wine” and “wine from other agricultural products” the normal acidity of the material from which such wine is produced is 20 parts or more per thousand and the volume of the resulting product has not been increased more than 60 percent by such addition.
</P>
<P>(i) <I>Class 9; retsina wine.</I> “Retsina wine” is grape table wine fermented or flavored with resin.
</P>
<CROSSREF>
<HED>Cross Reference:</HED>
<P>For regulations relating to the use of spirits in wine, see part 24 of this chapter.</P></CROSSREF>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960]]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 4.21, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 4.22" NODE="27:1.0.1.1.2.3.25.3" TYPE="SECTION">
<HEAD>§ 4.22   Blends, cellar treatment, alteration of class or type.</HEAD>
<P>(a) If the class or type of any wine shall be altered, and if the product as so altered does not fall within any other class or type either specified in §§ 4.20 through 4.25 or known to the trade, then such wine shall, unless otherwise specified in this section, be designated with a truthful and adequate statement of composition in accordance with § 4.34.
</P>
<P>(b) Alteration of class or type shall be deemed to result from any of the following occurring before, during, or after production.
</P>
<P>(1) Treatment of any class or type of wine with substances foreign to such wine which remain therein: <I>Provided,</I> That the presence in finished wine of not more than 350 parts per million of total sulfur dioxide, or sulphites expressed as sulfur dioxide, shall not be precluded under this paragraph.
</P>
<P>(2) Treatment of any class or type of wine with substances not foreign to such wine but which remain therein in larger quantities than are naturally and normally present in other wines of the same class or type not so treated.
</P>
<P>(3) Treatment of any class or type of wine with methods or materials of any kind to such an extent or in such manner as to affect the basic composition of the wine so treated by altering any of its characteristic elements.
</P>
<P>(4) Blending of wine of one class with wine of another class or the blending of wines of different types within the same class.
</P>
<P>(5) Treatment of any class or type of wine for which a standard of identity is prescribed in this subpart with sugar or water in excess of the quantities specifically authorized by such standards:
</P>
<P><I>Provided, That</I> the class or type thereof shall not be deemed to be altered: 
</P>
<P>(i) Where such wine (other than grape wine) is derived from fruit or other agricultural products having a high normal acidity, if the total solids content is not more than 22 grams per 100 cubic centimeters and the content of natural acid is not less than 7.69 grams per liter, and 
</P>
<P>(ii) Where such wine is derived exclusively from fruit or other agricultural products the normal acidity of which is 20 parts or more per thousand, if the volume of the resulting product has been increased not more than 60 percent by the addition of sugar and water solution for the sole purpose of correcting natural deficiencies due to such acidity and (except in the case of such wine when produced from fruit or berries other than grapes) there is stated as part of the class and type designation the phrase “Made with over 35 percent sugar solution.” 
</P>
<P>(c) Nothing in this section shall preclude the treatment of wine of any class or type in the manner hereinafter specified, provided such treatment does not result in the alteration of the class or type of the wine under the provisions of paragraph (b) of this section.
</P>
<P>(1) Treatment with filtering equipment, and with fining or sterilizing agents.
</P>
<P>(2) Treatment with pasteurization as necessary to perfect the wines to commercial standards in accordance with acceptable cellar practice but only in such a manner and to such an extent as not to change the basic composition of the wine nor to eliminate any of its characteristic elements.
</P>
<P>(3) Treatment with refrigeration as necessary to perfect the wine to commercial standards in accordance with acceptable cellar practice but only in such a manner and to such an extent as not to change the basic composition of the wine nor to eliminate any of its characteristic elements.
</P>
<P>(4) Treatment with methods and materials to the minimum extent necessary to correct cloudiness, precipitation, or abnormal color, odor, or flavor developing in wine.
</P>
<P>(5) Treatment with constituents naturally present in the kind of fruit or other agricultural product from which the wine is produced for the purpose of correcting deficiencies of these constituents, but only to the extent that such constituents would be present in normal wines of the same class or type not so treated.
</P>
<P>(6) Treatment of any class or type of wine involving the use of volatile fruit-flavor concentrates in the manner provided in section 5382 of the Internal Revenue Code.
</P>
<P>(7) Notwithstanding the provisions of § 4.21(b) (1), (2) and (4), (c), (d)(4), (e)(5), and (f)(6) carbon dioxide may be used to maintain counterpressure during the transfer of finished sparkling wines from (i) bulk processing tanks to bottles, or (ii) bottle to bottle: <I>Provided,</I> That the carbon dioxide content of the wine shall not be increased by more than 0.009 gm. per 100 ml. during the transfer operation.
</P>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. 6776, 29 FR 16985, Dec. 11, 1964; T.D. 7185, 37 FR 7976, Apr. 22, 1972; T.D. ATF-403, 64 FR 50253, Sept. 16, 1999; T.D. ATF-458, 66 FR 37578, July 19, 2001; T.D. ATF-953, 68 FR 39455, July 2, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 4.23" NODE="27:1.0.1.1.2.3.25.4" TYPE="SECTION">
<HEAD>§ 4.23   Varietal (grape type) labeling.</HEAD>
<P>(a) <I>General.</I> The names of one or more grape varieties may be used as the type designation of a grape wine only if the wine is also labeled with an appellation of origin as defined in § 4.25.
</P>
<P>(b) <I>One variety.</I> Except as provided in paragraph (c) of this section, the name of a single grape variety may be used as the type designation if not less than 75 percent of the wine is derived from grapes of that variety, the entire 75 percent of which was grown in the labeled appellation of origin area.
</P>
<P>(c) <I>Exceptions.</I> (1) Wine made from any <I>Vitis labrusca</I> variety (exclusive of hybrids with <I>Vitis labrusca</I> parentage) may be labeled with the variety name if:
</P>
<P>(i) Not less than 51 percent of the wine is derived from grapes of the named variety;
</P>
<P>(ii) The statement “contains not less than 51 percent (name of variety)” is shown on the brand label, back label, or a separate strip label, (except that this statement need not appear if 75 percent or more of the wine is derived from grapes of the named variety); and
</P>
<P>(iii) The entire qualifying percentage of the named variety was grown in the labeled appellation of origin area.
</P>
<P>(2) Wine made from any variety of any species found by the appropriate TTB officer upon appropriate application to be too strongly flavored at 75 percent minimum varietal content may be labeled with the varietal name if:
</P>
<P>(i) Not less than 51 percent of the wine is derived from grapes of that variety;
</P>
<P>(ii) The statement “contains not less than 51 percent (name of variety)” is shown on the brand label, back label, or a separate strip label (except that this statement need not appear if 75 percent or more of the wine is derived from grapes of the named variety); and
</P>
<P>(iii) The entire qualifying percentage of the named variety was grown in the labeled appellation of origin area.
</P>
<P>(d) <I>Two or more varieties.</I> The names of two or more grape varieties may be used as the type designation if:
</P>
<P>(1) All of the grapes used to make the wine are of the labeled varieties;
</P>
<P>(2) The percentage of the wine derived from each variety is shown on the label (with a tolerance of plus or minus 2 percent); and
</P>
<P>(3)(i) If labeled with a multicounty appellation of origin, the percentage of the wine derived from each variety from each county is shown on the label; or
</P>
<P>(ii) If labeled with a multistate appellation of origin, the percentage of the wine derived from each variety from each state is shown on the label.
</P>
<P>(e) <I>List of approved variety names.</I> Effective February 7, 1996, the name of a grape variety may be used as a type designation for an American wine only if that name has been approved by the Administrator. A list of approved grape variety names appears in subpart J of this part.
</P>
<CITA TYPE="N">[T.D. ATF-370, 61 FR 538, Jan. 8, 1996, as amended by T.D. TTB-91, 76 FR 5476, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 4.24" NODE="27:1.0.1.1.2.3.25.5" TYPE="SECTION">
<HEAD>§ 4.24   Generic, semi-generic, and non-generic designations of geographic significance.</HEAD>
<P>(a)(1) A name of geographic significance which is also the designation of a class or type of wine, shall be deemed to have become generic only if so found by the Administrator.
</P>
<P>(2) Examples of generic names, originally having geographic significance, which are designations for a class or type of wine are: Vermouth, Sake.
</P>
<P>(b)(1) A name of geographic significance, which is also the designation of a class or type of wine, shall be deemed to have become semi-generic only if so found by the Administrator. Semi-generic designations may be used to designate wines of an origin other than that indicated by such name only if there appears in direct conjunction therewith an appropriate appellation of origin disclosing the true place of origin of the wine, and if the wine so designated conforms to the standard of identity, if any, for such wine contained in the regulations in this part or, if there be no such standard, to the trade understanding of such class or type. See § 24.257(c) of this chapter for exceptions to the Administrator's authority to remove names from paragraph (b)(2) of this section.
</P>
<P>(2) Examples of semi-generic names which are also type designations for grape wines are Angelica, Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine (syn. Hock), Sauterne, Haut Sauterne, Sherry, Tokay.
</P>
<P>(c)(1) A name of geographic significance, which has not been found by the Administrator to be generic or semi-generic may be used only to designate wines of the origin indicated by such name, but such name shall not be deemed to be the distinctive designation of a wine unless the Administrator finds that it is known to the consumer and to the trade as the designation of a specific wine of a particular place or region, distinguishable from all other wines.
</P>
<P>(2) Examples of nongeneric names which are not distinctive designations of specific grape wines are: American, California, Lake Erie, Napa Valley, New York State, French, Spanish. Additional examples of foreign nongeneric names are listed in subpart C of part 12 of this chapter.
</P>
<P>(3) Examples of nongeneric names which are also distinctive designations of specific grape wines are: Bordeaux Blanc, Bordeaux Rouge, Graves, Medoc, Saint-Julien, Chateau Yquem, Chateau Margaux, Chateau Lafite, Pommard, Chambertin, Montrachet, Rhone, Liebfraumilch, Rudesheimer, Forster, Deidesheimer, Schloss Johannisberger, Lagrima, and Lacryma Christi. A list of foreign distinctive designations, as determined by the Administrator, appears in subpart D of part 12 of this chapter.
</P>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. ATF-296, 55 FR 17967, Apr. 30, 1990; T.D. ATF-398, 63 FR 44783, Aug. 21, 1998; T.D. ATF-425, 65 FR 11890, 11891, Mar. 7, 2000]


</CITA>
</DIV8>


<DIV8 N="§ 4.25" NODE="27:1.0.1.1.2.3.25.6" TYPE="SECTION">
<HEAD>§ 4.25   Appellations of origin.</HEAD>
<P>(a) <I>Definition</I>—(1) <I>American wine.</I> An American appellation of origin is: (i) The United States; (ii) a State; (iii) two or no more than three States which are all contiguous; (iv) a county (which must be identified with the word “county”, in the same size of type, and in letters as conspicuous as the name of the county); (v) two or no more than three counties in the same State; or (vi) a viticultural area (as defined in paragraph (e) of this section).
</P>
<P>(2) <I>Imported wine.</I> An appellation of origin for imported wine is:
</P>
<P>(i) A country;
</P>
<P>(ii) A state, province, territory, or similar political subdivision of a country equivalent to a state or county;
</P>
<P>(iii) Two or no more than three states, provinces, territories, or similar political subdivisions of a country equivalent to a state which are all contiguous; or
</P>
<P>(iv) A viticultural area (as defined in paragraph (e) of this section).
</P>
<P>(b) <I>Qualification</I>—(1) <I>American wine.</I> An American wine is entitled to an appellation of origin other than a multicounty or multistate appellation, or a viticultural area, if:
</P>
<P>(i) At least 75 percent of the wine is derived from fruit or agricultural products grown in the appellation area indicated; (ii) it has been fully finished (except for cellar treatment pursuant to § 4.22(c), and blending which does not result in an alteration of class or type under § 4.22(b)) in the United States, if labeled “American”; or, if labeled with a State appellation, within the labeled State or an adjacent State; or if labeled with a county appellation, within the State in which the labeled county is located; and (iii) it conforms to the laws and regulations of the named appellation area governing the composition, method of manufacture, and designation of wines made in such place.
</P>
<P>(2) <I>Imported wine.</I> An imported wine is entitled to an appellation of origin other than a multistate appellation, or a viticultural area, if:
</P>
<P>(i) At least 75 percent of the wine is derived from fruit or agricultural products grown in the area indicated by the appellation of origin; and (ii) The wine conforms to the requirements of the foreign laws and regulations governing the composition, method of production, and designation of wines available for consumption within the country of origin.
</P>
<P>(c) <I>Multicounty appellations.</I> An appellation of origin comprising two or no more than three counties in the same State may be used if all of the fruit or other agricultural products were grown in the counties indicated, and the percentage of the wine derived from fruit or other agricultural products grown in each county is shown on the label with a tolerance of plus or minus two percent.
</P>
<P>(d) <I>Multistate appellations.</I> (1) <I>American wine.</I> An appellation of origin comprising two or no more than three States which are all contiguous may be used, if:
</P>
<P>(i) All of the fruit or other agricultural products were grown in the States indicated, and the percentage of the wine derived from fruit or other agricultural products grown in each State is shown on the label with a tolerance of plus or minus 2 percent;
</P>
<P>(ii) The wine has been fully finished (except for cellar treatment pursuant to § 4.22(c), and blending that does not result in an alteration of class or type under § 4.22(b)) in one of the labeled appellation States; and
</P>
<P>(iii) The wine conforms to the laws and regulations governing the composition, method of manufacture, and designation of wines in all of the States listed in the appellation.
</P>
<P>(2) <I>Imported wine.</I> An appellation of origin comprising two or no more than three states, provinces, territories, or similar political subdivisions of a country equivalent to a state which are all contiguous may be used if:
</P>
<P>(i) All of the fruit or other agricultural products were grown in the states, provinces, territories, or similar political subdivisions of a country equivalent to a state indicated, and the percentage of the wine derived from fruit or other agricultural products grown in each state, province, territory, or political subdivision equivalent to a state is shown on the label with a tolerance of plus or minus 2 percent; and
</P>
<P>(ii) The wine conforms to the requirements of the foreign laws and regulations governing the composition, method of production, and designation of wines available for consumption within the country of origin.
</P>
<P>(e) <I>Viticultural area</I>—(1) <I>Definition</I>—(i) <I>American wine.</I> A delimited grape-growing region having distinguishing features as described in part 9 of this chapter and a name and a delineated boundary as established in part 9 of this chapter.
</P>
<P>(ii) <I>Imported wine.</I> A delimited place or region (other than an appellation defined in paragraph (a)(2)(i), (a)(2)(ii), or (a)(2)(iii)) the boundaries of which have been recognized and defined by the country of origin for use on labels of wine available for consumption within the country of origin.
</P>
<P>(2) <I>Establishment of American viticultural areas.</I> A petition for the establishment of an American viticultural area may be made to the Administrator by any interested party, pursuant to part 9 and § 70.701(c) of this chapter. The petition must be made in written form and must contain the information specified in § 9.12 of this chapter.
</P>
<P>(3) <I>Requirements for use.</I> A wine may be labeled with a viticultural area appellation if:
</P>
<P>(i) The appellation has been approved under part 9 of this chapter or by the appropriate foreign government;
</P>
<P>(ii) Not less than 85 percent of the wine is derived from grapes grown within the boundaries of the viticultural area;
</P>
<P>(iii) In the case of foreign wine, it conforms to the requirements of the foreign laws and regulations governing the composition, method of production, and designation of wines available for consumption within the country of origin; and
</P>
<P>(iv) In the case of American wine, it has been fully finished within the State, or one of the States, within which the labeled viticultural area is located (except for cellar treatment pursuant to § 4.22(c), and blending which does not result in an alteration of class and type under § 4.22(b)).
</P>
<P>(4) <I>Overlap viticultural area appellations.</I> An appellation of origin comprised of more than one viticultural area may be used in the case of overlapping viticultural areas if not less than 85 percent of the volume of the wine is derived from grapes grown in the overlapping area.
</P>
<CITA TYPE="N">[T.D. ATF-53, 43 FR 37675, Aug. 23, 1978]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 4.25, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 4.26" NODE="27:1.0.1.1.2.3.25.7" TYPE="SECTION">
<HEAD>§ 4.26   Estate bottled.</HEAD>
<P>(a) <I>Conditions for use.</I> The term <I>Estate bottled</I> may be used by a bottling winery on a wine label only if the wine is labeled with a viticultural area appellation of origin and the bottling winery:
</P>
<P>(1) Is located in the labeled viticultural area; (2) grew all of the grapes used to make the wine on land owned or controlled by the winery within the boundaries of the labeled viticultural area; (3) crushed the grapes, fermented the resulting must, and finished, aged, and bottled the wine in a continuous process (the wine at no time having left the premises of the bottling winery).
</P>
<P>(b) <I>Special rule for cooperatives.</I> Grapes grown by members of a cooperative bottling winery are considered grown by the bottling winery.
</P>
<P>(c) <I>Definition of “Controlled”.</I> For purposes of this section, <I>Controlled by</I> refers to property on which the bottling winery has the legal right to perform, and does perform, all of the acts common to viticulture under the terms of a lease or similar agreement of at least 3 years duration.
</P>
<P>(d) <I>Use of other terms.</I> No term other than <I>Estate bottled</I> may be used on a label to indicate combined growing and bottling conditions.
</P>
<CITA TYPE="N">[T.D. ATF-53, 43 FR 37676, Aug. 23, 1978, as amended by T.D. ATF-201, 50 FR 12533, Mar. 29, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 4.27" NODE="27:1.0.1.1.2.3.25.8" TYPE="SECTION">
<HEAD>§ 4.27   Vintage wine.</HEAD>
<P>(a) <I>General.</I> Vintage wine is wine labeled with the year of harvest of the grapes and made in accordance with the standards prescribed in classes 1, 2, or 3 of § 4.21. The wine must be labeled with an appellation of origin. The appellation must be shown in direct conjunction with the designation required by § 4.32(a)(2), in lettering substantially as conspicuous as that designation. In no event may the quantity of wine removed from the producing winery, under labels bearing a vintage date, exceed the volume of vintage wine produced in that winery during the year indicated by the vintage date. The following additional rules apply to vintage labeling:
</P>
<P>(1) If an American or imported wine is labeled with a viticultural area appellation of origin (or its foreign equivalent), at least 95 percent of the wine must have been derived from grapes harvested in the labeled calendar year; or
</P>
<P>(2) If an American or imported wine is labeled with an appellation of origin other than a viticultural area (or its foreign equivalent), at least 85 percent of the wine must have been derived from grapes harvested in the labeled calendar year.
</P>
<P>(b) <I>American wine.</I> A permittee who produced and bottled or packed the wine, or a person other than the producer who repackaged the wine may show the year of vintage upon the label if the person possesses appropriate records from the producer substantiating the year of vintage and the appellation of origin; and if the wine is made in compliance with the provisions of paragraph (a) of this section.
</P>
<P>(c) <I>Imported wine.</I> Imported wine may bear a vintage date if all of the following conditions are met:
</P>
<P>(1) It is made in compliance with the provisions of paragraph (a) of this section; and
</P>
<P>(2) The wine is of the vintage shown, the laws of the country of origin regulate the appearance of vintage dates upon the labels of wine produced for consumption within the country of origin, the wine has been produced in conformity with those laws, and the wine would be entitled to bear the vintage date if it had been sold within the country of origin. The importer of the wine imported in bottles or the domestic bottler of wine imported in bulk and bottled in the United States must be able to demonstrate, upon request by the appropriate TTB officer or a customs officer, that the wine is entitled to be labeled with the vintage date.
</P>
<CITA TYPE="N">[T.D. ATF-53, 43 FR 37676, Aug. 23, 1978, as amended by T.D. ATF-195, 50 FR 763, Jan. 7, 1985; T.D. TTB-45, 71 FR 25752, May 2, 2006; T.D. TTB-105, 77 FR 56541, Sept. 13, 2012; T.D. TTB-145, 81 FR 94196, Dec. 22, 2016; T.D. TTB-158, 85 FR 18722, Apr. 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 4.28" NODE="27:1.0.1.1.2.3.25.9" TYPE="SECTION">
<HEAD>§ 4.28   Type designations of varietal significance.</HEAD>
<P>The following are type designations of varietal significance for American wine. These names may be used as type designations for American wines only if the wine is labeled with an appellation of origin as defined in § 4.25.
</P>
<P>(a) <I>Muscadine.</I> An American wine which derives at least 75 percent of its volume from <I>Muscadinia rotundifolia</I> grapes.
</P>
<P>(b) <I>Muscatel.</I> An American wine which derives its predominant taste, aroma, characteristics and at least 75 percent of its volume from any Muscat grape source, and which meets the requirements of § 4.21(a)(3).
</P>
<P>(c) <I>Muscat or Moscato.</I> An American wine which derives at least 75 percent of its volume from any Muscat grape source.
</P>
<P>(d) <I>Scuppernong.</I> An American wine which derives at least 75 percent of its volume from bronze <I>Muscadinia rotundifolia</I> grapes.
</P>
<P>(e)(1) <I>Gamay Beaujolais.</I> An American wine which derives at least 75 percent of its volume from Pinot noir grapes, Valdiguié grapes, or a combination of both.
</P>
<P>(2) For wines bottled on or after January 1, 1999, and prior to April 9, 2007, the name “Gamay Beaujolais” may be used as a type designation only if there appears in direct conjunction therewith, but on a separate line and separated by the required appellation of origin, the name(s) of the grape variety or varieties used to satisfy the requirements of paragraph (e)(1) of this section. Where two varietal names are listed, they shall appear on the same line, in order of predominance. The appellation of origin shall appear either on a separate line between the name “Gamay Beaujolais” and the grape variety name(s) or on the same line as the grape variety name(s) in a manner that qualifies the grape variety name(s). The following statement shall also appear on the brand or back label: “Gamay Beaujolais is made from at least 75 percent Pinot noir and/or Valdiguié grapes.”
</P>
<P>(3) The designation “Gamay Beaujolais” may not be used on labels of American wines bottled on or after April 9, 2007.
</P>
<CITA TYPE="N">[T.D. ATF-370, 61 FR 539, Jan. 8, 1996, as amended by T.D. ATF-388, 62 FR 16490, Apr. 7, 1997; T.D. ATF-388a, 62 FR 33747, June 23, 1997; T.D. TTB-91, 76 FR 5476, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.2.4" TYPE="SUBPART">
<HEAD>Subpart D—Labeling Requirements for Wine</HEAD>


<DIV8 N="§ 4.30" NODE="27:1.0.1.1.2.4.25.1" TYPE="SECTION">
<HEAD>§ 4.30   General.</HEAD>
<P>(a) <I>Application.</I> No person engaged in business as a producer, rectifier, blender, importer, or wholesaler, directly or indirectly or through an affiliate, shall sell or ship or deliver for sale or shipment, or otherwise introduce in interstate or foreign commerce, or receive therein, or remove from customs custody, any wine in containers unless such wine is packaged, and such packages are marked, branded, and labeled in conformity with this subpart. Wine domestically bottled or packed prior to Dec. 15, 1936, and imported wine entered in customs bond in containers prior to that date shall be regarded as being packaged, marked, branded and labeled in accordance with this subpart, if the labels on such wine (1) bear all the mandatory label information required by § 4.32, even though such information is not set forth in the manner and form as required by § 4.32 and other sections of this title referred to therein, and (2) bear no statements, designs, or devices which are false or misleading.
</P>
<P>(b) <I>Alteration of labels.</I> (1) It shall be unlawful for any person to alter, mutilate, destroy, obliterate or remove any mark, brand, or label upon wine held for sale in interstate or foreign commerce or after shipment therein, except as authorized by Federal law, or except as provided in paragraph (b)(2) of this section: <I>Provided,</I> That the appropriate TTB officer may, upon written application, permit additional labeling or relabeling of wine for purposes of compliance with the requirements of this part or of State law.
</P>
<P>(2) No application for permission to relabel wine need be made in any case where there is added to the container, after removal from customs custody or from the premises where bottled or packed, a label identifying the wholesale or retail distributor thereof, and containing no reference whatever to the characteristics of the product.
</P>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. ATF-425, 65 FR 11891, Mar. 7, 2000; T.D. ATF-953, 68 FR 39455, July 2, 2003]
</CITA>
<CROSSREF>
<HED>Cross Reference:
</HED>
<P>For customs warehouses and control of merchandise therein, see 19 CFR part 19.</P></CROSSREF>
</DIV8>


<DIV8 N="§ 4.32" NODE="27:1.0.1.1.2.4.25.2" TYPE="SECTION">
<HEAD>§ 4.32   Mandatory label information.</HEAD>
<P>(a) There shall be stated on the brand label:
</P>
<P>(1) Brand name, in accordance with § 4.33.
</P>
<P>(2) Class, type, or other designation, in accordance with § 4.34.
</P>
<P>(3) [Reserved]
</P>
<P>(4) On blends consisting of American and foreign wines, if any reference is made to the presence of foreign wine, the exact percentage by volume.
</P>
<P>(b) There shall be stated on any label affixed to the container:
</P>
<P>(1) Name and address, in accordance with § 4.35.
</P>
<P>(2) Net contents, in accordance with § 4.37. If the net contents is a standard of fill other than an authorized metric standard of fill as prescribed in § 4.72, the net contents statement shall appear on a label affixed to the front of the bottle.
</P>
<P>(3) Alcohol content, in accordance with § 4.36.
</P>
<P>(c) There shall be stated on the brand label or on a back label a statement that the product contains FD&amp;C Yellow No. 5, where that coloring material is used in a product bottled on or after October 6, 1984.
</P>
<P>(d) <I>Declaration of cochineal extract or carmine.</I> There shall be stated on a front label, back label, strip label, or neck label a statement that the product contains the color additive cochineal extract or the color additive carmine, prominently and conspicuously, using the respective common or usual name (“cochineal extract” or “carmine”), where either of the coloring materials is used in a product that is removed on or after April 16, 2013. (For example: “Contains Cochineal Extract” or “Contains Carmine” or, if applicable, “Contains Cochineal Extract and Carmine”).
</P>
<P>(e) <I>Declaration of sulfites.</I> There shall be stated on a front label, back label, strip label or neck label, the statement “Contains sulfites” or “Contains (a) sulfiting agent(s)” or a statement identifying the specific sulfiting agent where sulfur dioxide or a sulfiting agent is detected at a level of 10 or more parts per million, measured as total sulfur dioxide. The provisions of this paragraph shall apply to:
</P>
<P>(1) Any certificate of label approval issued on or after January 9, 1987;
</P>
<P>(2) Any wine bottled on or after July 9, 1987, regardless of the date of issuance of the certificate of label approval; and,
</P>
<P>(3) Any wine removed on or after January 9, 1988.
</P>
<APPRO TYPE="N">(Paragraph (e) approved by the Office of Management and Budget under Control Number 1512-0469)
</APPRO>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 4.32, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 4.32a" NODE="27:1.0.1.1.2.4.25.3" TYPE="SECTION">
<HEAD>§ 4.32a   Voluntary disclosure of major food allergens.</HEAD>
<P>(a) <I>Definitions.</I> For purposes of this section the following terms have the meanings indicated.
</P>
<P>(1) <I>Major food allergen.</I> <I>Major food allergen</I> means any of the following:
</P>
<P>(i) Milk, egg, fish (for example, bass, flounder, or cod), Crustacean shellfish (for example, crab, lobster, or shrimp), tree nuts (for example, almonds, pecans, or walnuts), wheat, peanuts, and soybeans; or
</P>
<P>(ii) A food ingredient that contains protein derived from a food specified in paragraph (a)(1)(i) of this section, except:
</P>
<P>(A) Any highly refined oil derived from a food specified in paragraph (a)(1)(i) of this section and any ingredient derived from such highly refined oil; or
</P>
<P>(B) A food ingredient that is exempt from major food allergen labeling requirements pursuant to a petition for exemption approved by the Food and Drug Administration (FDA) under 21 U.S.C. 343(w)(6) or pursuant to a notice submitted to FDA under 21 U.S.C. 343(w)(7), provided that the food ingredient meets the terms or conditions, if any, specified for that exemption.
</P>
<P>(2) <I>Name of the food source from which each major food allergen is derived. Name of the food source from which each major food allergen is derived</I> means the name of the food as listed in paragraph (a)(1)(i) of this section, except that:
</P>
<P>(i) In the case of a tree nut, it means the name of the specific type of nut (for example, almonds, pecans, or walnuts);
</P>
<P>(ii) In the case of Crustacean shellfish, it means the name of the species of Crustacean shellfish (for example, crab, lobster, or shrimp); and
</P>
<P>(iii) The names “egg” and “peanuts”, as well as the names of the different types of tree nuts, may be expressed in either the singular or plural form, and the term “soy”, soybean”, or “soya” may be used instead of “soybeans”.
</P>
<P>(b) <I>Voluntary labeling standards.</I> Major food allergens (defined in paragraph (a)(1) of this section) used in the production of a wine may, on a voluntary basis, be declared on any label affixed to the container. However, if any one major food allergen is voluntarily declared, all major food allergens used in production of the wine, including major food allergens used as fining or processing agents, must be declared, except when covered by a petition for exemption approved by the appropriate TTB officer under § 4.32b. The major food allergens declaration must consist of the word “Contains” followed by a colon and the name of the food source from which each major food allergen is derived (for example, “Contains: egg”).
</P>
<P>(c) <I>Cross reference.</I> For mandatory labeling requirements applicable to wines containing FD&amp;C Yellow No. 5 and sulfites, see §§ 4.32(c) and (e).
</P>
<CITA TYPE="N">[T.D. TTB-53, 71 FR 42267, July 26, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 4.32b" NODE="27:1.0.1.1.2.4.25.4" TYPE="SECTION">
<HEAD>§ 4.32b   Petitions for exemption from major food allergen labeling.</HEAD>
<P>(a) <I>Submission of petition.</I> Any person may petition the appropriate TTB officer to exempt a particular product or class of products from the labeling requirements of § 4.32a. The burden is on the petitioner to provide scientific evidence (including the analytical method used to produce the evidence) that demonstrates that the finished product or class of products, as derived by the method specified in the petition, either:
</P>
<P>(1) Does not cause an allergic response that poses a risk to human health; or
</P>
<P>(2) Does not contain allergenic protein derived from one of the foods identified in § 4.32a(a)(1)(i), even though a major food allergen was used in production.
</P>
<P>(b) <I>Decision on petition.</I> TTB will approve or deny a petition for exemption submitted under paragraph (a) of this section in writing within 180 days of receipt of the petition. If TTB does not provide a written response to the petitioner within that 180-day period, the petition will be deemed denied, unless an extension of time for decision is mutually agreed upon by the appropriate TTB officer and the petitioner. TTB may confer with the Food and Drug Administration (FDA) on petitions for exemption, as appropriate and as FDA resources permit. TTB may require the submission of product samples and other additional information in support of a petition; however, unless required by TTB, the submission of samples or additional information by the petitioner after submission of the petition will be treated as the withdrawal of the initial petition and the submission of a new petition. An approval or denial under this section will constitute a final agency action.
</P>
<P>(c) <I>Resubmission of a petition.</I> After a petition for exemption is denied under this section, the petitioner may resubmit the petition along with supporting materials for reconsideration at any time. TTB will treat this submission as a new petition for purposes of the time frames for decision set forth in paragraph (b) of this section.
</P>
<P>(d) <I>Availability of information</I>—(1) <I>General.</I> TTB will promptly post to its public Web site, <I>https://www.ttb.gov,</I> all petitions received under this section as well as TTB's responses to those petitions. Any information submitted in support of the petition that is not posted to the TTB Web site will be available to the public pursuant to 5 U.S.C. 552, except where a request for confidential treatment is granted under paragraph (d)(2) of this section.
</P>
<P>(2) <I>Requests for confidential treatment of business information.</I> A person who provides trade secrets or other commercial or financial information in connection with a petition for exemption under this section may request that TTB give confidential treatment to that information. A failure to request confidential treatment at the time the information in question is submitted to TTB will constitute a waiver of confidential treatment. A request for confidential treatment of information under this section must conform to the following standards:
</P>
<P>(i) The request must be in writing;
</P>
<P>(ii) The request must clearly identify the information to be kept confidential;
</P>
<P>(iii) The request must relate to information that constitutes trade secrets or other confidential commercial or financial information regarding the business transactions of an interested person, the disclosure of which would cause substantial harm to the competitive position of that person;
</P>
<P>(iv) The request must set forth the reasons why the information should not be disclosed, including the reasons the disclosure of the information would prejudice the competitive position of the interested person; and
</P>
<P>(v) The request must be supported by a signed statement by the interested person, or by an authorized officer or employee of that person, certifying that the information in question is a trade secret or other confidential commercial or financial information and that the information is not already in the public domain.
</P>
<CITA TYPE="N">[T.D. TTB-53, 71 FR 42267, July 26, 2006, as amended by T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 4.33" NODE="27:1.0.1.1.2.4.25.5" TYPE="SECTION">
<HEAD>§ 4.33   Brand names.</HEAD>
<P>(a) <I>General.</I> The product shall bear a brand name, except that if not sold under a brand name, then the name of the person required to appear on the brand label shall be deemed a brand name for the purpose of this part.
</P>
<P>(b) <I>Misleading brand names.</I> No label shall contain any brand name, which, standing alone, or in association with other printed or graphic matter creates any impression or inference as to the age, origin, identity, or other characteristics of the product unless the appropriate TTB officer finds that such brand name, either when qualified by the word “brand” or when not so qualified, conveys no erroneous impressions as to the age, origin, identity, or other characteristics of the product.
</P>
<P>(c) <I>Trade name of foreign origin.</I> This section shall not operate to prohibit the use by any person of any trade name or brand of foreign origin not effectively registered in the United States Patent Office on August 29, 1935, which has been used by such person or their predecessors in the United States for a period of at least five years immediately preceding August 29, 1935: <I>Provided,</I> That if such trade name or brand is used, the designation of the product shall be qualified by the name of the locality in the United States in which produced, and such qualifications shall be in script, type, or printing as conspicuous as the trade name or brand.


</P>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 4.34" NODE="27:1.0.1.1.2.4.25.6" TYPE="SECTION">
<HEAD>§ 4.34   Class and type.</HEAD>
<P>(a) The class of the wine shall be stated in conformity with subpart C of this part if the wine is defined therein, except that “table” (“light”) and “dessert” wines need not be designated as such. In the case of still grape wine there may appear, in lieu of the class designation, any varietal (grape type) designation, type designation of varietal significance, semigeneric geographic type designation, or geographic distinctive designation, to which the wine may be entitled. In the case of champagne, or crackling wines, the type designation “champagne” or “crackling wine” (“petillant wine”, “frizzante wine”) may appear in lieu of the class designation “sparkling wine”. In the case of wine which has a total solids content of more than 17 grams per 100 cubic centimeters the words “extra sweet”, “specially sweetened”, “specially sweet” or “sweetened with excess sugar” shall be stated as a part of the class and type designation. The last of these quoted phrases shall appear where required by part 24 of this chapter, on wines sweetened with sugar in excess of the maximum quantities specified in such regulations. If the class of the wine is not defined in subpart C, a truthful and adequate statement of composition shall appear upon the brand label of the product in lieu of a class designation. In addition to the mandatory designation for the wine, there may be stated a distinctive or fanciful name, or a designation in accordance with trade understanding. The statement of composition will not include any reference to a varietal (grape type) designation, type designation of varietal significance, semi-generic geographic type designation, or geographic distinctive designation. All parts of the designation of the wine, whether mandatory or optional, shall be in direct conjunction and in lettering substantially of the same size and kind.
</P>
<P>(b) An appellation of origin such as “American,” “New York,” “Napa Valley,” or “Chilean,” disclosing the true place of origin of the wine, shall appear in direct conjunction with and in lettering substantially as conspicuous as the class and type designation if:
</P>
<P>(1) A varietal (grape type) designation is used under the provisions of § 4.23;
</P>
<P>(2) A type designation of varietal significance is used under the provisions of § 4.28;
</P>
<P>(3) A semi-generic type designation is employed as the class and type designation of the wine pursuant to § 4.24(b);
</P>
<P>(4) A product name is qualified with the word “Brand” under the requirements of § 4.39 (j); or
</P>
<P>(5) The wine is labeled with the year of harvest of the grapes, and otherwise conforms with the provisions of § 4.27. 
</P>
<CITA TYPE="N">[T.D. ATF-53, 43 FR 37677, Aug. 23, 1978; T.D. ATF-48, 44 FR 55839, Sept. 28, 1979, as amended by T.D. ATF-195, 50 FR 763, Jan. 7, 1985; T.D. ATF-229, 51 FR 20482, June 5, 1986; T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-370, 61 FR 539, Jan. 8, 1996; T.D. ATF-431, 65 FR 59724, Oct. 6, 2000; T.D. TTB-105, 77 FR 56541, Sept. 13, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 4.35" NODE="27:1.0.1.1.2.4.25.7" TYPE="SECTION">
<HEAD>§ 4.35   Name and address.</HEAD>
<P>(a) <I>American wine</I>—(1) <I>Mandatory statement.</I> A label on each container of American wine shall state either “bottled by” or “packed by” followed by the name of the bottler or packer and the address (in accordance with paragraph (c)) of the place where the wine was bottled or packed. Other words may also be stated in addition to the required words “bottled by” or “packed by” and the required name and address if the use of such words is in accordance with paragraph (a)(2) of this section.
</P>
<P>(2) <I>Optional statements.</I> (i) In addition to the statement required by paragraph (a)(1), the label may also state the name and address of any other person for whom the wine was bottled or packed, immediately preceded by the words “bottled for” or “packed for” or “distributed by.”
</P>
<P>(ii) The words defined in paragraphs (a)(2)(iii)-(a)(2)(vi) may be used, in accordance with the definitions given, in addition to the name and address statement required by paragraph (a)(1). Use of these words may be conjoined, using the word “and”, and with the words “bottled by” or “packed by” only if the same person performed the defined operation at the same address. More than one name is necessary if the defined operation was performed by a person other than the bottler or packer and more than one address statement is necessary if the defined operation was performed at a different address.
</P>
<P>(iii) <I>Produced</I> or <I>Made</I> means that the named winery:
</P>
<P>(A) Fermented not less than 75% of such wine at the stated address, or
</P>
<P>(B) Changed the class or type of the wine by addition of alcohol, brandy, flavors, colors, or artificial carbonation at the stated address, or
</P>
<P>(C) Produced sparkling wine by secondary fermentation at the stated address.
</P>
<P>(iv) <I>Blended</I> means that the named winery mixed the wine with other wines of the same class and type at the stated address.
</P>
<P>(v) <I>Cellared, Vinted</I> or <I>Prepared</I> means that the named winery, at the stated address, subjected the wine to cellar treatment in accordance with § 4.22(c).
</P>
<P>(b) <I>Imported wine</I>—(1) <I>Mandatory statements.</I> (i) A label on each container of imported wine shall state “imported by” or a similar appropriate phrase, followed immediately by the name of the importer, agent, sole distributor, or other person responsible for the importation, followed immediately by the address of the principal place of business in the United States of the named person.
</P>
<P>(ii) If the wine was bottled or packed in the United States, the label shall also state one of the following:
</P>
<P>(A) “Bottled by” or “packed by” followed by the name of the bottler or packer and the address (in accordance with paragraph (c)) of the place where the wine was bottled or packed; or
</P>
<P>(B) If the wine was bottled or packed for the person responsible for the importation, the words “imported by and bottled (packed) in the United States for” (or a similar appropriate phrase) followed by the name and address of the principal place of business in the United States of the person responsible for the importation; or
</P>
<P>(C) If the wine was bottled or packed by the person responsible for the importation, the words “imported and bottled (packed) by” followed by the name and address of the principal place of business in the United States of the person responsible for the importation.
</P>
<P>(iii) If the wine was blended, bottled or packed in a foreign country other than the country of origin, and the label identifies the country of origin, the label shall state “blended by,” “bottled by,” or “packed by,” or other appropriate statement, followed by the name of the blender, bottler or packer and the place where the wine was blended, bottled or packed.
</P>
<P>(2) <I>Optional statements.</I> In addition to the statements required by paragraph (b) (1), the label may also state the name and address of the principal place of business of the foreign producer. Other words, or their English-language equivalents, denoting winemaking operations may be used in accordance with the requirements of the country of origin, for wines sold within the country of origin.
</P>
<P>(c) <I>Form of address.</I> The “place” stated shall be the post office address shown on the basic permit or other qualifying document of the premises at which the operations took place; and there shall be shown the address for each operation which is designated on the label. An example of such use would be “Produced at Gilroy, California, and bottled at San Mateo, California, by XYZ Winery,” except that the street address may be omitted. No additional places or addresses shall be stated for the same person unless:
</P>
<P>(1) Such person is actively engaged in the conduct of an additional bona fide and actual alcoholic beverage business at such additional place or address, and
</P>
<P>(2) The label also contains in direct conjunction therewith, appropriate descriptive material indicating the function occurring at such additional place or address in connection with the particular product.
</P>
<P>(d) <I>Trade or operating names.</I> The trade or operating name of any person appearing upon any label shall be identical with a name appearing on the basic permit or other qualifying document.
</P>
<P>(e) <I>Cross reference—country of origin statement.</I> For U.S. Customs and Border Protection (CBP) rules regarding country of origin marking requirements, see the CBP regulations at 19 CFR parts 102 and 134.
</P>
<CITA TYPE="N">[T.D. ATF-328, 57 FR 33114, July 27, 1992; 57 FR 37591, Aug. 19, 1992. Redesignated by T.D. ATF-953, 68 FR 39455, July 2, 2003; T.D. TTB-158, 85 FR 18722, Apr. 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 4.36" NODE="27:1.0.1.1.2.4.25.8" TYPE="SECTION">
<HEAD>§ 4.36   Alcoholic content.</HEAD>
<P>(a) Alcoholic content shall be stated in the case of wines containing more than 14 percent of alcohol by volume. In the case of wine containing 14 percent or less of alcohol by volume, the alcohol content may be stated, but need not be stated if the type designation “table” wine (or “light” wine) appears on the brand label as prescribed in § 4.32(a)(2). Any statement of alcoholic content shall be made as prescribed in paragraph (b) of this section.
</P>
<P>(b) Alcoholic content shall be stated in terms of percentage of alcohol by volume, and not otherwise, as provided in either paragraph (b)(1) or (2) of this section:
</P>
<P>(1) “Alcohol __ % by volume,” or similar appropriate phrase; <I>Provided,</I> that if the word “alcohol” and/or “volume” are abbreviated, they shall be shown as “alc.” (alc) and/or “vol.” (vol), respectively. Except as provided in paragraph (c) of this section, a tolerance of 1 percent, in the case of wines containing more than 14 percent of alcohol by volume, and of 1.5 percent, in the case of wines containing 14 percent or less of alcohol by volume, will be permitted either above or below the stated percentage.
</P>
<P>(2) “Alcohol __ % to __ % by volume,” or similar appropriate phrase; <I>Provided,</I> that if the word “alcohol” and/or “volume” are abbreviated, they shall be shown as “alc.” (alc) and/or “vol.” (vol), respectively. Except as provided in paragraph (c) of this section, a range of not more than 2 percent, in the case of wines containing more than 14 percent of alcohol by volume, and of not more than 3 percent, in the case of wines containing 14 percent or less of alcohol by volume, will be permitted between the minimum and maximum percentages stated, and no tolerances will be permitted either below such minimum or above such maximum.
</P>
<P>(c) Regardless of the type of statement used and regardless of tolerances normally permitted in direct statements and ranges normally permitted in maximum and minimum statements, alcoholic content statements, whether required or optional, shall definitely and correctly indicate the class, type and taxable grade of the wine so labeled and nothing in this section shall be construed as authorizing the appearance upon the labels of any wine of an alcoholic content statement in terms of maximum and minimum percentages which overlaps a prescribed limitation on the alcoholic content of any class, type, or taxable grade of wine, or a direct statement of alcoholic content which indicates that the alcoholic content of the wine is within such a limitation when in fact it is not.
</P>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. ATF-275, 53 FR 27046, July 18, 1988; T.D. TTB-114, 78 FR 34568, June 10, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 4.37" NODE="27:1.0.1.1.2.4.25.9" TYPE="SECTION">
<HEAD>§ 4.37   Net contents.</HEAD>
<P>(a) <I>Statement of net contents.</I> The net contents of wine for which a standard of fill is prescribed in § 4.72 shall be stated in the same manner and form as set forth in the standard of fill. The net content of wine for which no standard of fill is prescribed in § 4.72 shall be stated in the metric system of measure as follows:
</P>
<P>(1) If more than one liter, net contents shall be stated in liters and in decimal portions of a liter accurate to the nearest one-hundredth of a liter.
</P>
<P>(2) If less than one liter, net contents shall be stated in milliliters (ml).
</P>
<P>(b) <I>Statement of U.S. equivalent net contents.</I> When net contents of wine are stated in metric measure, the equivalent volume in U.S. measure may also be shown. If shown, the U.S. equivalent volume will be shown as follows:


</P>
<P>(1) For the metric standards of fill shown in table 1 to paragraph (b)(1), the equivalent U.S. measures are:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 1 to Paragraph (<E T="01">b</E>)(1)
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Metric measure
</TH><TH class="gpotbl_colhed" scope="col">Equivalent


<br/>U.S. measure
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">3 liters (L)</TD><TD align="left" class="gpotbl_cell">101 fluid ounces (fl. oz.).
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">2.25 L</TD><TD align="left" class="gpotbl_cell">76.1 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1.8 L</TD><TD align="left" class="gpotbl_cell">60.9 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1.5 L</TD><TD align="left" class="gpotbl_cell">50.7 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1 L</TD><TD align="left" class="gpotbl_cell">33.8 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">750 milliliters (mL)</TD><TD align="left" class="gpotbl_cell">25.4 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">720 mL</TD><TD align="left" class="gpotbl_cell">24.3 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">700 mL</TD><TD align="left" class="gpotbl_cell">23.7 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">620 mL</TD><TD align="left" class="gpotbl_cell">21.0 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">600 mL</TD><TD align="left" class="gpotbl_cell">20.3 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">568 mL</TD><TD align="left" class="gpotbl_cell">19.2 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">550 mL</TD><TD align="left" class="gpotbl_cell">18.6 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">500 mL</TD><TD align="left" class="gpotbl_cell">16.9 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">473 mL</TD><TD align="left" class="gpotbl_cell">16 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">375 mL</TD><TD align="left" class="gpotbl_cell">12.7 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">360 mL</TD><TD align="left" class="gpotbl_cell">12.2 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">355 mL</TD><TD align="left" class="gpotbl_cell">12.0 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">330 mL</TD><TD align="left" class="gpotbl_cell">11.2 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">300 mL</TD><TD align="left" class="gpotbl_cell">10.1 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">250 mL</TD><TD align="left" class="gpotbl_cell">8.5 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">200 mL</TD><TD align="left" class="gpotbl_cell">6.8 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">187 mL</TD><TD align="left" class="gpotbl_cell">6.3 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">180 mL</TD><TD align="left" class="gpotbl_cell">6.1 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">100 mL</TD><TD align="left" class="gpotbl_cell">3.4 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">50 mL</TD><TD align="left" class="gpotbl_cell">1.7 fl. oz.</TD></TR></TABLE></DIV></DIV>
<P>(2) Equivalent volumes of less than 100 fluid ounces will be stated in fluid ounces only, accurate to the nearest one-tenth of a fluid ounce; for example, 700 ml (23.7 fl. oz.).
</P>
<P>(3) Equivalent volumes of 100 fluid ounces or more will be stated in fluid ounces only, accurate to the nearest whole fluid ounce; for example, 6 liters (203 fl. oz.).
</P>
<P>(c) <I>Net contents marked in bottle.</I> The net contents need not be stated on any label if the net contents are displayed by having the same blown, etched, sand-blasted, marked by underglaze coloring, or otherwise permanently marked by any method approved by the appropriate TTB officer, in the sides, front, or back of the bottle, in letters and figures in such manner as to be plainly legible under ordinary circumstances, and such statement is not obscured in any manner in whole or in part.
</P>
<P>(d) <I>Tolerances.</I> Statement of net contents shall indicate exactly the volume of wine within the container, except that the following tolerances shall be allowed:
</P>
<P>(1) Discrepancies due exclusively to errors in measuring which occur in filling conducted in compliance with good commercial practice.
</P>
<P>(2) Discrepancies due exclusively to differences in the capacity of containers, resulting solely from unavoidable difficulties in manufacturing such containers so as to be of uniform capacity: <I>Provided,</I> That no greater tolerance shall be allowed in case of containers which, because of their design, cannot be made of approximately uniform capacity than is allowed in case of containers which can be manufactured so as to be of approximately uniform capacity.
</P>
<P>(3) Discrepancies in measure due to differences in atmospheric conditions in various places and which unavoidably result from the ordinary and customary exposure of alcoholic beverages in containers to evaporation. The reasonableness to discrepancies under this paragraph shall be determined on the facts in each case.
</P>
<P>(e) <I>Unreasonable shortages.</I> Unreasonable shortages in certain of the containers in any shipment shall not be compensated by overages in other containers in the same shipment.
</P>
<CITA TYPE="N">[T.D. ATF-12, 39 FR 45222, Dec. 31, 1974, as amended by T.D. ATF-49, 43 FR 19848, May 9, 1978; T.D. ATF-76, 46 FR 1727, Jan. 7, 1981; T.D. ATF-303, 55 FR 42713, Oct. 23, 1990; T.D. TTB-91, 76 FR 5476, Feb. 1, 2011; T.D. TTB-200, 90 FR 1875, Jan. 10, 2025]


</CITA>
</DIV8>


<DIV8 N="§ 4.38" NODE="27:1.0.1.1.2.4.25.10" TYPE="SECTION">
<HEAD>§ 4.38   General requirements.</HEAD>
<P>(a) <I>Legibility.</I> All labels shall be so designed that all the statements thereon required by §§ 4.30 through 4.39 are readily legible under ordinary conditions, and all such statement shall be on a contrasting background.
</P>
<P>(b) <I>Size of type.</I> (1) Containers of more than 187 milliliters. All mandatory information required on labels by this part, except the alcoholic content statement, shall be in script, type, or printing not smaller than 2 millimeters; except that if contained among other descriptive or explanatory information, the script, type, or printing of the mandatory information shall be of a size substantially more conspicuous than that of the descriptive or explanatory information.
</P>
<P>(2) Containers of 187 milliliters or less. All mandatory information required on labels by this part, except the alcoholic content statement, shall not be smaller than 1 millimeter, except that if contained among other descriptive or explanatory information, the script, type, or printing of the mandatory information shall be of a size substantially more conspicuous than that of the descriptive or explanatory information.
</P>
<P>(3) Alcoholic content statements shall not appear in script, type, or printing larger or more conspicuous than 3 millimeters nor smaller than 1 millimeter on labels of containers having a capacity of 5 liters or less and shall not be set off with a border or otherwise accentuated.
</P>
<P>(c) <I>English language.</I> All mandatory label information shall be stated on labels in the English language, except that the brand name, the place of production, and the name of the manufacturer, producer, blender, bottler, packer, or shipper appearing on the label need not be in the English language if the words “product of” immediately precede the name of the country of origin stated in accordance with customs requirements. Additional statements in foreign languages may be made on labels, if they do not in any way conflict with, or contradict the requirements of §§ 4.30 through 4.39.
</P>
<P>(d) <I>Location of label.</I> Labels shall not obscure Government stamps nor be obscured thereby.
</P>
<P>(e) <I>Labels firmly affixed.</I> All labels shall be affixed to containers of wine in such manner that they cannot be removed without thorough application of water or other solvents.
</P>
<P>(f) <I>Additional information on labels.</I> Labels may contain information other than the mandatory label information required by §§ 4.30 through 4.39, if such information complies with the requirements of such sections and does not conflict with, nor in any manner qualify statements required by this part. In addition, information which is truthful, accurate, and specific, and which is neither disparaging nor misleading may appear on wine labels.
</P>
<P>(g) <I>Representations as to materials.</I> If any representation (other than representations or information required by §§ 4.30 through 4.39 or percentage statements required or permitted by this part) is made as to the presence, excellence, or other characteristic of any ingredient in any wine, or used in its production, the label containing such representation shall state, in print, type, or script, substantially as conspicuous as such representation, the name and amount in percent by volume of each such ingredient.
</P>
<P>(h) <I>Statement of contents of containers.</I> Upon request of the appropriate TTB officer, there shall be submitted a full and accurate statement of the contents of the containers to which labels are to be or have been affixed.
</P>
<CITA TYPE="N">[T.D. ATF-53, 43 FR 37677, Aug. 23, 1978, as amended by T.D. ATF-66, 45 FR 40544, June 13, 1980; T.D. ATF-94, 46 FR 55095, Nov. 6, 1981; T.D. ATF-249, 52 FR 5955, Feb. 27, 1987; T.D. ATF-275, 53 FR 27046, July 18, 1988; T.D. ATF-312, 56 FR 31077, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 4.38a" NODE="27:1.0.1.1.2.4.25.11" TYPE="SECTION">
<HEAD>§ 4.38a   Bottle cartons, booklets and leaflets.</HEAD>
<P>(a) <I>General.</I> An individual covering, carton, or other container of the bottle used for sale at retail (other than a shipping container), or any written, printed, graphic, or other matter accompanying the bottle to the consumer buyer shall not contain any statement, design, device, or graphic, pictorial, or emblematic representation that is prohibited by §§ 4.30 through 4.39 on labels.
</P>
<P>(b) <I>Sealed cartons.</I> If bottles are enclosed in sealed opaque coverings, cartons, or other containers used for sale at retail (other than a shipping container), such coverings, cartons, or other containers must bear all mandatory label information.
</P>
<P>(c) <I>Other cartons.</I> (1) If an individual covering, carton, or other container of the bottle used for sale at retail (other than a shipping container) is so designed that the bottle is readily removable, it may display any information which is not in conflict with the label on the bottle contained therein.
</P>
<P>(2) Cartons displaying brand names and/or designations must display such names and designations in their entirety—brand names required to be modified, e.g. by “Brand” or “Product of U.S.A.”, must also display such modification.
</P>
<P>(3) Wines for which a truthful and adequate statement of composition is required must display such statement.
</P>
<CITA TYPE="N">[T.D. ATF-36, 41 FR 47425, Oct. 29, 1976]


</CITA>
</DIV8>


<DIV8 N="§ 4.39" NODE="27:1.0.1.1.2.4.25.12" TYPE="SECTION">
<HEAD>§ 4.39   Prohibited practices.</HEAD>
<P>(a) <I>Statements on labels.</I> Containers of wine, or any label on such containers, or any individual covering, carton, or other wrapper of such container, or any written, printed, graphic, or other matter accompanying such container to the consumer shall not contain:
</P>
<P>(1) Any statement that is false or untrue in any particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific or technical matter, tends to create a misleading impression.
</P>
<P>(2) Any statement that is disparaging of a competitor's products.
</P>
<P>(3) Any statement, design, device, or representation which is obscene or indecent.
</P>
<P>(4) Any statement, design, device, or representation of or relating to analyses, standards, or tests, irrespective of falsity, which the appropriate TTB officer finds to be likely to mislead the consumer.
</P>
<P>(5) Any statement, design, device or representation of or relating to any guarantee, irrespective of falsity, which the appropriate TTB officer finds to be likely to mislead the consumer. Money-back guarantees are not prohibited.
</P>
<P>(6) A trade or brand name that is the name of any living individual of public prominence, or existing private or public organization, or is a name that is in simulation or is an abbreviation thereof, or any graphic, pictorial, or emblematic representation of any such individual or organization, if the use of such name or representation is likely falsely to lead the consumer to believe that the product has been endorsed, made, or used by, or produced for, or under the supervision of, or in accordance with the specifications of, such individual or organization; <I>Provided,</I> That this paragraph shall not apply to the use of the name of any person engaged in business as a producer, blender, rectifier, importer, wholesaler, retailer, bottler, or warehouseman of wine, nor to the use by any person of a trade or brand name that is the name of any living individual of public prominence or existing private or public organization, provided such trade or brand name was used by that person or their predecessors in interest prior to August 29, 1935.
</P>
<P>(7) Any statement, design, device, or representation (other than a statement of alcohol content in conformity with § 4.36), which tends to create the impression that a wine:
</P>
<P>(i) Contains distilled spirits;
</P>
<P>(ii) Is comparable to a distilled spirit; or
</P>
<P>(iii) Has intoxicating qualities.
</P>
<FP>However, if a statement of composition is required to appear as the designation of a product not defined in these regulations, such statement of composition may include a reference to the type of distilled spirits contained therein.
</FP>
<P>(8) Any coined word or name in the brand name or class and type designation which simulates, imitates, or which tends to create the impression that the wine so labeled is entitled to bear, any class, type, or permitted designation recognized by the regulations in this part unless such wine conforms to the requirements prescribed with respect to such designation and is in fact so designated on its labels.
</P>
<P>(9) Any word in the brand name or class and type designation which is the name of a distilled spirits product or which simulates, imitates, or created the impression that the wine so labeled is, or is similar to, any product customarily made with a distilled spirits base. Examples of such words are: “Manhattan,” “Martini,” and “Daquiri” in a class and type designation or brand name of a wine cocktail; “Cuba Libre,” “Zombie,” and “Collins” in a class and type designation or brand name of a wine specialty or wine highball; “creme,” “cream,” “de,” or “of” when used in conjunction with “menthe,” “mint,” or “cacao” in a class and type designation or a brand name of a mint or chocolate flavored wine specialty.
</P>
<P>(b) <I>Statement of age.</I> No statement of age or representation relative to age (including words or devices in any brand name or mark) shall be made, except (1) for vintage wine, in accordance with the provisions of § 4.27; (2) references relating to methods of wine production involving storage or aging in accordance with § 4.38(f); or (3) use of the word “old” as part of a brand name.
</P>
<P>(c) <I>Statement of bottling dates.</I> The statement of any bottling date shall not be deemed to be a representation relative to age, if such statement appears in lettering not greater than 8-point Gothic caps and in the following form: “Bottled in __” (inserting the year in which the wine was bottled).
</P>
<P>(d) <I>Statement of miscellaneous dates.</I> No date, except as provided in paragraphs (b) and (c) of this section with respect to statement of vintage year and bottling date, shall be stated on any label unless in addition thereto and in direct conjunction therewith in the same size and kind of printing, there shall be stated an explanation of the significance thereof such as “established” or “founded in”. If any such date refers to the date of establishment of any business or brand name, it shall not be stated, in the case of containers of a capacity of 5 liters or less, in any script, type, or printing larger than 2 millimeters, and shall be stated in direct conjunction with the name of the person, company, or brand name to which it refers if the appropriate TTB officer finds that this is necessary in order to prevent confusion as to the person, company, or brand name to which the establishment date is applicable.
</P>
<P>(e) <I>Simulation of Government stamps.</I> (1) No labels shall be of such design as to resemble or simulate a stamp of the United States Government or any State or foreign government. No label, other than stamps authorized or required by the United States Government or any State or foreign government, shall state or indicate that the wine contained in the labeled container is produced, blended, bottled, packed, or sold under, or in accordance with, any municipal, State or Federal Government authorization, law, or regulation, unless such statement is required or specifically authorized by Federal, State or municipal law or regulation, or is required or specifically authorized by the laws or regulations of a foreign country. If the municipal, State, or Federal Government permit number is stated upon a label, it shall not be accompanied by any additional statement relating thereto.
</P>
<P>(2) Bonded wine cellar and bonded winery numbers may be stated but only in direct conjunction with the name and address of the person operating such wine cellar or winery. Statement of bonded wine cellar or winery numbers may be made in the following form: “Bonded Wine Cellar No. __”, “Bonded Winery No. __”, “B. W. C. No. __”, “B. W. No. __”. No additional reference thereto shall be made, nor shall any use be made of such statement that may convey the impression that the wine has been made or matured under Government supervision or in accordance with Government specifications or standards.
</P>
<P>(3) If imported wines are covered by a certificate of origin and/or a certificate of vintage date issued by a duly authorized official of the appropriate foreign government, the label, except where prohibited by the foreign government, may refer to such certificate or the fact of such certification, but shall not be accompanied by any additional statements relating thereto. The reference to such certificate or certification shall be substantially in the following form:
</P>
<EXTRACT>
<P>This product accompanied at the time of the importation by a certificate issued by the
</P>
<FP-DASH>
</FP-DASH>
<HD3>(Name of government)
</HD3>
<P>government indicating that the product is
</P>
<FP-DASH>
</FP-DASH>
<HD3>(Class and type as stated on the label)
</HD3>
<P>and (if label bears a statement of vintage date) that the wine is of the vintage of
</P>
<FP-DASH>
</FP-DASH>
<HD3>(Year of vintage stated on the label)</HD3></EXTRACT>
<P>(f) <I>Use of the word “Importer”, or similar words.</I> The word <I>Importer,</I> or similar words, shall not be stated on labels on containers of domestic wine except as part of the bona fide name of a permittee for or by whom, or of a retailer for whom, such wine is bottled, packed or distributed: <I>Provided,</I> That in all cases where such words are used as part of such name, there shall be stated on the same label the words “Product of the United States”, or similar words to negative any impression that the product is imported, and such negative statement shall appear in the same size and kind of printing as such name.
</P>
<P>(g) <I>Flags, seals, coats of arms, crests, and other insignia.</I> Labels shall not contain, in the brand name or otherwise, any statement, design, device, or pictorial representation which the appropriate TTB officer finds relates to, or is capable of being construed as relating to, the armed forces of the United States, or the American flag, or any emblem, seal, insignia, or decoration associated with such flag or armed forces; nor shall any label contain any statement, design, device, or pictorial representation of or concerning any flag, seal, coat of arms, crest or other insignia, likely to mislead the consumer to believe that the product has been endorsed, made, or used by, or produced for, or under the supervision of, or in accordance with the specifications of the government, organization, family, or individual with whom such flag, seal, coat of arms, crest, or insignia is associated.
</P>
<P>(h) <I>Health-related statements</I>—(1) <I>Definitions.</I> When used in this paragraph (h), terms are defined as follows:
</P>
<P>(i) <I>Health-related statement</I> means any statement related to health (other than the warning statement required by § 16.21 of this chapter) and includes statements of a curative or therapeutic nature that, expressly or by implication, suggest a relationship between the consumption of alcohol, wine, or any substance found within the wine, and health benefits or effects on health. The term includes both specific health claims and general references to alleged health benefits or effects on health associated with the consumption of alcohol, wine, or any substance found within the wine, as well as health-related directional statements. The term also includes statements and claims that imply that a physical or psychological sensation results from consuming the wine, as well as statements and claims of nutritional value (e.g., statements of vitamin content). Statements concerning caloric, carbohydrate, protein, and fat content do not constitute nutritional claims about the product.
</P>
<P>(ii) <I>Specific health claim</I> is a type of health-related statement that, expressly or by implication, characterizes the relationship of the wine, alcohol, or any substance found within the wine, to a disease or health-related condition. Implied specific health claims include statements, symbols, vignettes, or other forms of communication that suggest, within the context in which they are presented, that a relationship exists between wine, alcohol, or any substance found within the wine, and a disease or health-related condition.
</P>
<P>(iii) <I>Health-related directional statement</I> is a type of health-related statement that directs or refers consumers to a third party or other source for information regarding the effects on health of wine or alcohol consumption.
</P>
<P>(2) <I>Rules for labeling</I>—(i) <I>Health-related statements.</I> In general, labels may not contain any health-related statement that is untrue in any particular or tends to create a misleading impression as to the effects on health of alcohol consumption. TTB will evaluate such statements on a case-by-case basis and may require as part of the health-related statement a disclaimer or some other qualifying statement to dispel any misleading impression conveyed by the health-related statement.
</P>
<P>(ii) <I>Specific health claims.</I> (A) TTB will consult with the Food and Drug Administration (FDA), as needed, on the use of a specific health claim on a wine label. If FDA determines that the use of such a labeling claim is a drug claim that is not in compliance with the requirements of the Federal Food, Drug, and Cosmetic Act, TTB will not approve the use of that specific health claim on a wine label.
</P>
<P>(B) TTB will approve the use of a specific health claim on a wine label only if the claim is truthful and adequately substantiated by scientific or medical evidence; sufficiently detailed and qualified with respect to the categories of individuals to whom the claim applies; adequately discloses the health risks associated with both moderate and heavier levels of alcohol consumption; and outlines the categories of individuals for whom any levels of alcohol consumption may cause health risks. This information must appear as part of the specific health claim.
</P>
<P>(iii) <I>Health-related directional statements.</I> A statement that directs consumers to a third party or other source for information regarding the effects on health of wine or alcohol consumption is presumed misleading unless it—
</P>
<P>(A) Directs consumers in a neutral or other non-misleading manner to a third party or other source for balanced information regarding the effects on health of wine or alcohol consumption; and
</P>
<P>(B)(<I>1</I>) Includes as part of the health-related directional statement the following disclaimer: “This statement should not encourage you to drink or to increase your alcohol consumption for health reasons;” or
</P>
<P>(<I>2</I>) Includes as part of the health-related directional statement some other qualifying statement that the appropriate TTB officer finds is sufficient to dispel any misleading impression conveyed by the health-related directional statement.
</P>
<P>(i) <I>Geographic brand names.</I> (1) Except as provided in subparagraph 2, a brand name of viticultural significance may not be used unless the wine meets the appellation of origin requirements for the geographic area named.
</P>
<P>(2) For brand names used in existing certificates of label approval issued prior to July 7, 1986:
</P>
<P>(i) The wine shall meet the appellation of origin requirements for the geographic area named; or
</P>
<P>(ii) The wine shall be labeled with an appellation of origin in accordance with § 4.34(b) as to location and size of type of either:
</P>
<P>(A) A county or a viticultural area, if the brand name bears the name of a geographic area smaller than a state, or;
</P>
<P>(B) A state, county or a viticultural area, if the brand name bears a state name; or
</P>
<P>(iii) The wine shall be labeled with some other statement which the appropriate TTB officer finds to be sufficient to dispel the impression that the geographic area suggested by the brand name is indicative of the origin of the wine.
</P>
<P>(3) A name has viticultural significance when it is the name of a state or county (or the foreign equivalents), when approved as a viticultural area in part 9 of this chapter, or by a foreign government, or when found to have viticultural significance by the appropriate TTB officer.
</P>
<P>(j) <I>Product names of geographical significance (not mandatory before January 1, 1983).</I> The use of product names with specific geographical significance is prohibited unless the appropriate TTB officer finds that because of their long usage, such names are recognized by consumers as fanciful product names and not representations as to origin. In such cases the product names shall be qualified with the word “brand” immediately following the product name, in the same size of type, and as conspicuous as the product name itself. In addition, the label shall bear an appellation of origin under the provisions of § 4.34(b), and, if required by the appropriate TTB officer, a statement disclaiming the geographical reference as a representation as to the origin of the wine.
</P>
<P>(k) <I>Other indications of origin.</I> Other statements, designs, devices or representations which indicate or infer an origin other than the true place of origin of the wine are prohibited.
</P>
<P>(l) <I>Foreign terms.</I> Foreign terms which: (1) Describe a particular condition of the grapes at the time of harvest (such as “Auslese,” “Eiswein,” and “Trockenbeerenauslese”); or (2) denote quality under foreign law (such as “Qualitatswein” and “Kabinett”) may not be used on the labels of American wine.
</P>
<P>(m) <I>Use of a vineyard, orchard, farm or ranch name.</I> When used in a brand name, a vineyard, orchard, farm or ranch name having geographical or viticultural significance is subject to the requirements of §§ 4.33(b) and 4.39(i) of this part. Additionally, the name of a vineyard, orchard, farm or ranch shall not be used on a wine label, unless 95 percent of the wine in the container was produced from primary winemaking material grown on the named vineyard, orchard, farm or ranch.
</P>
<P>(n) <I>Use of a varietal name, type designation of varietal significance, semi-generic name, or geographic distinctive designation.</I> Labels that contain in the brand name, product name, or distinctive or fanciful name, any varietal (grape type) designation, type designation of varietal significance, semi-generic geographic type designation, or geographic distinctive designation, are misleading unless the wine is made in accordance with the standards prescribed in classes 1, 2, or 3 of § 4.21. Any other use of such a designation on other than a class 1, 2, or 3 wine is presumed misleading.
</P>
<CITA TYPE="N">[T.D. 6521, 25 FR 13841, Dec. 29, 1960]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 4.39, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.2.5" TYPE="SUBPART">
<HEAD>Subpart E—Requirements for Withdrawal of Wine From Customs Custody</HEAD>


<DIV8 N="§ 4.40" NODE="27:1.0.1.1.2.5.25.1" TYPE="SECTION">
<HEAD>§ 4.40   Label approval and release.</HEAD>
<P>(a) <I>Certificate of label approval.</I> Wine, imported in containers, is not eligible for release from customs custody for consumption, and no person may remove such wine from customs custody for consumption, unless the person removing the wine has obtained and is in possession of a certificate of label approval (COLA) and the containers bear labels identical to the labels appearing on the face of the certificate, or labels with changes authorized by the form. Any person removing wine in containers from customs custody for consumption must first apply for and obtain a COLA covering the wine from the appropriate TTB officer, or obtain authorization to use the COLA from the person to whom the COLA is issued. Products imported under another person's COLA are eligible for release only if each bottle or individual container to be imported bears the name (or trade name) and address of the person to whom the COLA was issued by TTB, and only if the importer using the COLA to obtain release of a shipment can substantiate that the person to whom the COLA was issued has authorized its use by the importer. If filing electronically, the importer must file with U.S. Customs and Border Protection (CBP), at the time of filing the customs entry, the TTB-assigned number of the valid COLA that corresponds to the label on the brand or lot of wine to be imported. If the importer is not filing electronically, the importer must provide a copy of the COLA to CBP at time of entry. In addition, the importer must provide a copy of the applicable COLA, and proof of the COLA holder's authorization if applicable, upon request by the appropriate TTB officer or a customs officer. The COLA requirement imposed by this section applies only to wine that is removed for sale or any other commercial purpose. See 27 CFR 27.49, 27.74 and 27.75 for labeling exemptions applicable to certain imported samples of wine.
</P>
<P>(b) [Reserved]
</P>
<P>(c) <I>Relabeling.</I> Imported wine in U.S. Customs custody which is not labeled in conformity with certificates of label approval issued by the appropriate TTB officer must be relabeled prior to release under the supervision and direction of customs officers of the port at which the wine is located.
</P>
<P>(d) <I>Cross reference.</I> For procedures regarding the issuance, denial, and revocation of certificates of label approval, as well as appeal procedures, see part 13 of this chapter.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0020 and 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. ATF-66, 45 FR 40546, June 13, 1980, as amended by T.D. ATF-94, 46 FR 55095, Nov. 6, 1981; T.D. ATF-242, 51 FR 39525, Oct. 29, 1986; T.D. ATF-359, 59 FR 42160, Aug. 17, 1994; T.D. ATF-406, 64 FR 2128, Jan. 13, 1999; T.D. TTB-145, 81 FR 94197, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 4.45" NODE="27:1.0.1.1.2.5.25.2" TYPE="SECTION">
<HEAD>§ 4.45   Certificates of origin, identity and proper cellar treatment.</HEAD>
<P>(a) <I>Certificate of origin and identity.</I> Wine imported in containers is not eligible for release from customs custody for consumption, and no person may remove such wine from customs custody for consumption, unless that person has obtained, and is in possession of an invoice accompanied by a certificate of origin issued by the appropriate foreign government if that country requires the issuance of such a certificate for wine exported from that country. The certificate must have been issued by an official duly authorized by the foreign government, and it must certify as to the identity of the wine and that the wine has been produced in compliance with the laws of the foreign country regulating the production of the wine for home consumption.
</P>
<P>(b) <I>Certification of proper cellar treatment of natural wine</I>—(1) <I>General.</I> An importer of wine may be required to have in his or her possession at the time of release of the wine from customs custody a certification or may have to comply with other conditions prescribed in § 27.140 of this chapter regarding proper cellar treatment. If imported wine requires a certification under § 27.140, the importer must provide a copy of that certification to TTB as follows:
</P>
<P>(i) The importer must attach a copy of the certification to the application for a certificate of label approval for the wine in question submitted under § 13.21 of this chapter; or
</P>
<P>(ii) If a certification for the wine in question was not available when the importer submitted the application for label approval, the importer must submit a copy of the certification to the appropriate TTB officer prior to release from customs custody of the first shipment of the wine.
</P>
<P>(2) <I>Validity of certification.</I> A certification submitted under paragraph (b)(1) of this section is valid as long as the wine is of the same brand and class or type, was made by the same producer, was subjected to the same cellar treatment, and conforms to the statements made on the certification. Accordingly, if the cellar treatment of the wine changes and a new certification under § 27.140 is required, an importer is required to submit a new certification for the wine even though it is subject to the same label approval.
</P>
<P>(3) <I>Use of certification.</I> TTB may use the information from a certification for purposes of verifying the appropriate class and type designation of the wine under the labeling provisions of this part. TTB will make certifications submitted under paragraph (b)(1) of this section available to the public on the TTB Internet Web site at <I>www.ttb.gov.</I>
</P>
<P>(c) <I>Retention of certificates.</I> The importer of wine imported in containers must retain for five years following the date of the removal of the bottled wine from customs custody copies of the certificates (and accompanying invoices, if required) required by paragraphs (a) and (b) of this section, and must provide them upon request of the appropriate TTB officer or a customs officer.


</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0064 and 1513-0119)
</APPRO>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. TTB-31, 70 FR 49482, Aug. 24, 2005; T.D. TTB-145, 81 FR 94197, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.2.6" TYPE="SUBPART">
<HEAD>Subpart F—Requirements for Approval of Labels of Wine Domestically Bottled or Packed</HEAD>


<DIV8 N="§ 4.50" NODE="27:1.0.1.1.2.6.25.1" TYPE="SECTION">
<HEAD>§ 4.50   Certificates of label approval.</HEAD>
<P>(a) No person shall bottle or pack wine, other than wine bottled or packed in U.S. Customs custody, or remove such wine from the plant where bottled or packed, unless an approved certificate of label approval, TTB Form 5100.31, is issued by the appropriate TTB officer.
</P>
<P>(b) Any bottler or packer of wine shall be exempt from the requirements of this section if upon application the bottler or packer shows to the satisfaction of the appropriate TTB officer that the wine to be bottled or packed is not to be sold, offered for sale, or shipped or delivered for shipment, or otherwise introduced in interstate or foreign commerce. Application for exemption shall be made on TTB Form 5100.31 in accordance with instructions on the form. If the application is approved, a certificate of exemption will be issued on the same form.
</P>
<P>(c) <I>Cross reference.</I> For procedures regarding the issuance, denial, and revocation of certificates of label approval, and certificates of exemption from label approval, as well as appeal procedures, see part 13 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-66, 45 FR 40546, June 13, 1980, as amended by T.D. ATF-94, 46 FR 55095, Nov. 6, 1981; T.D. ATF-242, 51 FR 39525, Oct. 29, 1986; T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-406, 64 FR 2128, Jan. 13, 1999; T.D. ATF-425, 65 FR 11891, Mar. 7, 2000]


</CITA>
</DIV8>


<DIV8 N="§ 4.51" NODE="27:1.0.1.1.2.6.25.2" TYPE="SECTION">
<HEAD>§ 4.51   Exhibiting certificates to Government officials.</HEAD>
<P>Any bottler or packer holding an original or duplicate original of a certificate of label approval or a certificate of exemption shall, upon demand, exhibit such certificate to a duly authorized representative of the United States Government.


</P>
</DIV8>


<DIV8 N="§ 4.52" NODE="27:1.0.1.1.2.6.25.3" TYPE="SECTION">
<HEAD>§ 4.52   Photoprints.</HEAD>
<P>Photoprints or other reproductions of certificates of label approval or certificates of exemption are not acceptable, for the purposes of §§ 4.50 through 4.52, as substitutes for an original or duplicate original of a certificate of label approval, or a certificate of exemption. The appropriate TTB officer will, upon the request of the bottler or packer, issue duplicate originals of certificates of label approval or of certificates of exemption if wine under the same brand is bottled or packed at more than one plant by the same person, and if the necessity for the duplicate originals is shown and there is listed with the appropriate TTB officer the name and address of the additional bottling or packing plant where the particular label is to be used.


</P>
</DIV8>


<DIV8 N="§ 4.53" NODE="27:1.0.1.1.2.6.25.4" TYPE="SECTION">
<HEAD>§ 4.53   Retention of certificates.</HEAD>
<P>Wine that would be required under § 4.45 to be covered by a certificate of origin and identity and/or a certification of proper cellar treatment and that is imported in bulk for bottling in the United States may be removed for consumption from the premises where bottled only if the bottler possesses a certificate of origin and identity and/or a certification of proper cellar treatment of natural wine applicable to the wine, issued by the appropriate entity as set forth in §§ 4.45 and 27.140 of this chapter respectively, that provides the same information as a certificate required under § 4.45(a) and (b) would provide for like wine imported in bottles. The bottler of wine imported in bulk must retain for five years following the removal of such wine from the bonded wine cellar where bottled copies of the certificates required by § 4.45(a) and (b), and must provide them upon request of the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94197, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 4.54" NODE="27:1.0.1.1.2.6.25.5" TYPE="SECTION">
<HEAD>§ 4.54   Personalized labels.</HEAD>
<P>(a) <I>General.</I> Applicants for label approval may obtain permission from TTB to make certain changes in order to personalize labels without having to resubmit labels for TTB approval. A personalized label is an alcohol beverage label that meets the minimum mandatory label requirements and is customized for customers. Personalized labels may contain a personal message, picture, or other artwork that is specific to the consumer who is purchasing the product. For example, a winery may offer individual or corporate customers labels that commemorate an event such as a wedding or grand opening.
</P>
<P>(b) <I>Application.</I> Any person who intends to offer personalized labels must submit a template for the personalized label as part of the application for label approval required under §§ 4.40 or 4.50 of this part, and must note on the application a description of the specific personalized information that may change.
</P>
<P>(c) <I>Approval of personalized label.</I> If the application complies with the regulations, TTB will issue a certificate of label approval (COLA) with a qualification allowing the personalization of labels. The qualification will allow the certificate holder to add or change items on the personalized label such as salutations, names, graphics, artwork, congratulatory dates and names, or event dates without applying for a new COLA. All of these items on personalized labels must comply with the regulations of this part.
</P>
<P>(d) <I>Changes not allowed to personalized labels.</I> Approval of an application to personalize labels does not authorize the addition of any information that discusses either the alcohol beverage or characteristics of the alcohol beverage or that is inconsistent with or in violation of the provisions of this part or any other applicable provision of law or regulations.
</P>
<CITA TYPE="N">[T.D. TTB-158, 85 FR 18722, Apr. 2, 2020]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.2.7" TYPE="SUBPART">
<HEAD>Subpart G—Advertising of Wine</HEAD>


<DIV8 N="§ 4.60" NODE="27:1.0.1.1.2.7.25.1" TYPE="SECTION">
<HEAD>§ 4.60   Application.</HEAD>
<P>No person engaged in the business as a producer, rectifier, blender, importer, or wholesaler of wine, directly or indirectly or through an affiliate, shall publish or disseminate or cause to be published or disseminated by radio or television broadcast, or in any newspaper, periodical, or any publication, by any sign or outdoor advertisement, or any other printed or graphic matter, any advertisement of wine, if such advertising is in, or is calculated to induce sale in, interstate or foreign commerce, or is disseminated by mail, unless such advertisement is in conformity with §§ 4.60-4.65 of this part. Provided, that such sections shall not apply to outdoor advertising in place on September 7, 1984, but shall apply upon replacement, restoration, or renovation of any such advertising; and provided further, that such sections shall not apply to a retailer or the publisher of any newspaper, periodical, or other publication, or radio or television broadcast, unless such retailer or publisher or radio or television broadcaster is engaged in business as a producer, rectifier, blender, importer, or wholesaler of wine, directly or indirectly, or through an affiliate.
</P>
<CITA TYPE="N">[T.D. ATF-180, 49 FR 31672, Aug. 8, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 4.61" NODE="27:1.0.1.1.2.7.25.2" TYPE="SECTION">
<HEAD>§ 4.61   Definitions.</HEAD>
<P>As used in §§ 4.60 through 4.65 of this part, the term <I>advertisement</I> includes any written or verbal statement, illustration, or depiction which is in, or calculated to induce sales in, interstate or foreign commerce, or is disseminated by mail, whether it appears in a newspaper, magazine, trade booklet, menu, wine card, leaflet, circular, mailer, book insert, catalog, promotional material, sales pamphlet, or any written, printed, graphic, or other matter accompanying the container, representations made on cases, billboard, sign, or other outdoor display, public transit card, other periodical literature, publication, or in a radio or television broadcast, or in any other media; except that such term shall not include:
</P>
<P>(a) Any label affixed to any container of wine, or any individual covering, carton, or other wrapper of such container which constitute a part of the labeling under provisions of §§ 4.30-4.39 of this part.
</P>
<P>(b) Any editorial or other reading material (<I>i.e.,</I> news release) in any periodical or publication or newspaper for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by any permittee, and which is not written by or at the direction of the permittee.
</P>
<CITA TYPE="N">[T.D. ATF-180, 49 FR 31672, Aug. 8, 1984, as amended by T.D. TTB-91, 76 FR 5477, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 4.62" NODE="27:1.0.1.1.2.7.25.3" TYPE="SECTION">
<HEAD>§ 4.62   Mandatory statements.</HEAD>
<P>(a) <I>Responsible advertiser.</I> The advertisement must display the responsible advertiser's name, city, and State or the name and other contact information (such as telephone number, website, or email address) where the responsible advertiser may be contacted.
</P>
<P>(b) <I>Class, type, and distinctive designation.</I> The advertisement shall contain a conspicuous statement of the class, type, or distinctive designation to which the product belongs, corresponding with the statement of class, type, or distinctive designation which is required to appear on the label of the product.
</P>
<P>(c) <I>Exception.</I> (1) If an advertisement refers to a general wine line or all of the wine products of one company, whether by the company name or by the brand name common to all the wine in the line, the only mandatory information necessary is the name and address of the responsible advertiser. This exception does not apply where only one type of wine is marketed under the specific brand name advertised.
</P>
<P>(2) On consumer specialty items, the only information necessary is the company name or brand name of the product.
</P>
<CITA TYPE="N">[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. ATF-180, 49 FR 31672, Aug. 8, 1984; T.D. TTB-158, 85 FR 18722, Apr. 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 4.63" NODE="27:1.0.1.1.2.7.25.4" TYPE="SECTION">
<HEAD>§ 4.63   Legibility of mandatory information.</HEAD>
<P>(a) Statements required under §§ 4.60 through 4.65 of this part to appear in any written, printed, or graphic advertisement shall be in lettering or type size sufficient to be conspicuous and readily legible.
</P>
<P>(b) In the case of signs, billboards, and displays the name and address of the permittee responsible for the advertisement may appear in type size of lettering smaller than the other mandatory information, provided such information can be ascertained upon closer examination of the sign or billboard.
</P>
<P>(c) Mandatory information shall be so stated as to be clearly a part of the advertisement and shall not be separated in any manner from the remainder of the advertisement.
</P>
<P>(d) Mandatory information for two or more products shall not be stated unless clearly separated.
</P>
<P>(e) Mandatory information shall be so stated in both the print and audio-visual media that it will be readily apparent to the persons viewing the advertisement.
</P>
<CITA TYPE="N">[T.D. ATF-180, 49 FR 31672, Aug. 8, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 4.64" NODE="27:1.0.1.1.2.7.25.5" TYPE="SECTION">
<HEAD>§ 4.64   Prohibited practices.</HEAD>
<P>(a) <I>Restrictions.</I> The advertisement of wine shall not contain:
</P>
<P>(1) Any statement that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific or technical matter tends to create a misleading impression.
</P>
<P>(2) Any statement that is disparaging of a competitor's products.
</P>
<P>(3) Any statement, design, device, or representation which is obscene or indecent.
</P>
<P>(4) Any statement, design, device, or representation of or relating to analyses, standards, or tests, irrespective of falsity, which the appropriate TTB officer finds to be likely to mislead the consumer.
</P>
<P>(5) Any statement, design, device, or representation of or relating to any guarantee, irrespective of falsity, which the appropriate TTB officer finds to be likely to mislead the consumer. Money-back guarantees are not prohibited.
</P>
<P>(6) Any statement that the wine is produced, blended, bottled, packed, or sold under, or in accordance with, any municipal, State, or Federal Government authorization, law, or regulations; and if a municipal, State, or Federal permit number is stated, the permit number shall not be accompanied by any additional statement relating thereto.
</P>
<P>(7) Any statement of bonded winecellar and bonded winery numbers unless stated in direct conjunction with the name and address of the person operating such winery or storeroom. Statement of bonded winecellar and bonded winery numbers may be made in the following form: “Bonded Winecellar No. __,” “Bonded Winery No. __,” “B. W. C. No. __,” “B. W. No. __.” No additional reference thereto shall be made, nor shall any use be made of such statement that may convey the impression that the wine has been made or matured under Government supervision or in accordance with Government specifications or standards.
</P>
<P>(8) Any statement, design, device, or representation which relates to alcohol content or which tends to create the impression that a wine:
</P>
<P>(i) Contains distilled spirits; or
</P>
<P>(ii) Is comparable to a distilled spirit; or
</P>
<P>(iii) Has intoxicating qualities.
</P>
<FP>However, if a statement of composition is required to appear as the designation of a product not defined in these regulations, such statement of composition may include a reference to the type of distilled spirits contained therein. Further, an approved wine label, which bears the statement of alcohol content may be depicted in any advertising media, or an actual wine bottle showing the approved label bearing the statement of alcoholic content may be displayed in any advertising media.
</FP>
<P>(9) Any word in the brand name or class and type designation which is the name of a distilled spirits product or which simulates, imitates, or creates the impression that the wine so labeled is, or is similar to, any product customarily made with a distilled spirits base.
</P>
<P>(b) <I>Statements inconsistent with labeling.</I> (1) Advertisements shall not contain any statement concerning a brand or lot of wine that is inconsistent with any statement on the labeling thereof.
</P>
<P>(2) Any label depicted on a bottle in an advertisement shall be a reproduction of an approved label.
</P>
<P>(c) <I>Statement of age.</I> No statement of age or representation relative to age (including words or devices in any brand name or mark) shall be made, except (1) for vintage wine, in accordance with the provisions of § 4.27; (2) references in accordance with § 4.38(f); or (3) use of the word “old” as part of a brand name.
</P>
<P>(d) <I>Statement of bottling dates.</I> The statement of any bottling date shall not be deemed to be a representation relative to age, if such statement appears without undue emphasis in the following form: “Bottled in __” (inserting the year in which the wine was bottled).
</P>
<P>(e) <I>Statement of miscellaneous dates.</I> No date, except as provided in paragraphs (c) and (d) of this section, with respect to statement of vintage year and bottling date, shall be stated unless, in addition thereto, and in direct conjunction therewith, in the same size and kind of printing there shall be stated an explanation of the significance of such date: <I>Provided,</I> That if any date refers to the date of establishment of any business, such date shall be stated without undue emphasis and in direct conjunction with the name of the person to whom it refers.
</P>
<P>(f) <I>Flags, seals, coats of arms, crests, and other insignia.</I> No advertisement shall contain any statement, design, device, or pictorial representation of or relating to, or capable of being construed as relating to, the armed forces of the United States, or of the American flag, or of any emblem, seal, insignia, or decoration associated with such flag or armed forces; nor shall any advertisement contain any statement, device, design, or pictorial representation of or concerning any flag, seal, coat of arms, crest, or other insignia likely to mislead the consumer to believe that the product has been endorsed, made, or used by, or produced for, or under the supervision of, or in accordance with the specifications of the government, organization, family, or individual with whom such flag, seal, coat of arms, crests, or insignia is associated.
</P>
<P>(g) <I>Statements indicative of origin.</I> No statement, design, device, or representation which tends to create the impression that the wine originated in a particular place or region, shall appear in any advertisement unless the label of the advertised product bears an appellation of origin, and such appellation of origin appears in the advertisement in direct conjunction with the class and type designation.
</P>
<P>(h) <I>Use of the word “importer” or similar words.</I> The word <I>importer</I> or similar words shall not appear in advertisements of domestic wine except as part of the bona fide name of the permittee by or for whom, or of a retailer for whom, such wine is bottled, packed or distributed: <I>Provided,</I> That in all cases where such words are used as part of such name, there shall be stated the words “Product of the United States” or similar words to negate any impression that the product is imported, and such negating statements shall appear in the same size and kind of printing as such name.
</P>
<P>(i) <I>Health-related statements</I>—(1) <I>Definitions.</I> When used in this paragraph (i), terms are defined as follows:
</P>
<P>(i) <I>Health-related statement</I> means any statement related to health and includes statements of a curative or therapeutic nature that, expressly or by implication, suggest a relationship between the consumption of alcohol, wine, or any substance found within the wine, and health benefits or effects on health. The term includes both specific health claims and general references to alleged health benefits or effects on health associated with the consumption of alcohol, wine, or any substance found within the wine, as well as health-related directional statements. The term also includes statements and claims that imply that a physical or psychological sensation results from consuming the wine, as well as statements and claims of nutritional value (e.g., statements of vitamin content). Statements concerning caloric, carbohydrate, protein, and fat content do not constitute nutritional claims about the product.
</P>
<P>(ii) <I>Specific health claim</I> is a type of health-related statement that, expressly or by implication, characterizes the relationship of the wine, alcohol, or any substance found within the wine, to a disease or health-related condition. Implied specific health claims include statements, symbols, vignettes, or other forms of communication that suggest, within the context in which they are presented, that a relationship exists between wine, alcohol, or any substance found within the wine, and a disease or health-related condition.
</P>
<P>(iii) <I>Health-related directional statement</I> is a type of health-related statement that directs or refers consumers to a third party or other source for information regarding the effects on health of wine or alcohol consumption.
</P>
<P>(2) <I>Rules for advertising</I>—(i) <I>Health-related statements.</I> In general, advertisements may not contain any health-related statement that is untrue in any particular or tends to create a misleading impression as to the effects on health of alcohol consumption. TTB will evaluate such statements on a case-by-case basis and may require as part of the health-related statement a disclaimer or some other qualifying statement to dispel any misleading impression conveyed by the health-related statement. Such disclaimer or other qualifying statement must appear as prominent as the health-related statement.
</P>
<P>(ii) <I>Specific health claims.</I> A specific health claim will not be considered misleading if it is truthful and adequately substantiated by scientific or medical evidence; sufficiently detailed and qualified with respect to the categories of individuals to whom the claim applies; adequately discloses the health risks associated with both moderate and heavier levels of alcohol consumption; and outlines the categories of individuals for whom any levels of alcohol consumption may cause health risks. This information must appear as part of the specific health claim and in a manner as prominent as the specific health claim.
</P>
<P>(iii) <I>Health-related directional statements.</I> A statement that directs consumers to a third party or other source for information regarding the effects on health of wine or alcohol consumption is presumed misleading unless it—
</P>
<P>(A) Directs consumers in a neutral or other non-misleading manner to a third party or other source for balanced information regarding the effects on health of wine or alcohol consumption; and
</P>
<P>(B)(<I>1</I>) Includes as part of the health-related directional statement, and in a manner as prominent as the health-related directional statement, the following disclaimer: “This statement should not encourage you to drink or increase your alcohol consumption for health reasons;” or
</P>
<P>(<I>2</I>) Includes as part of the health-related directional statement, and in a manner as prominent as the health-related directional statement, some other qualifying statement that the appropriate TTB officer finds is sufficient to dispel any misleading impression conveyed by the health-related directional statement.
</P>
<P>(j) <I>Confusion of brands.</I> Two or more different brands or lots of wine shall not be advertised in one advertisement (or in two or more advertisements in one issue of a periodical or newspaper, or in one piece of other written, printed, or graphic matter) if the advertisement tends to create the impression that representations made as to one brand or lot apply to the other or others, and if as to such latter the representations contravene any provision of §§ 4.60 through 4.64 or are in any respect untrue.
</P>
<P>(k) <I>Deceptive advertising techniques.</I> Subliminal or similar techniques are prohibited. “Subliminal or similar techniques,” as used in this part, refers to any device or technique that is used to convey, or attempts to convey, a message to a person by means of images or sounds of a very brief nature that cannot be perceived at a normal level of awareness.
</P>
<CITA TYPE="N">[T.D. 6521, 25 FR 13843, Dec. 29, 1960, as amended by T.D. 6976, 33 FR 15025, Oct. 8, 1968; T.D. ATF-53, 43 FR 37678, Aug. 23, 1978; T.D. ATF-180, 49 FR 31672, Aug. 8, 1984; TTB T.D.-1, 68 FR 10103, Mar. 3, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 4.65" NODE="27:1.0.1.1.2.7.25.6" TYPE="SECTION">
<HEAD>§ 4.65   Comparative advertising.</HEAD>
<P>(a) <I>General.</I> Comparative advertising shall not be disparaging of a competitor's product.
</P>
<P>(b) <I>Taste tests.</I> (1) Taste test results may be used in advertisements comparing competitors' products unless they are disparaging, deceptive, or likely to mislead the consumer.
</P>
<P>(2) The taste test procedure used shall meet scientifically accepted procedures. An example of a scientifically accepted procedure is outlined in the <I>Manual on Sensory Testing Methods,</I> ASTM Special Technical Publication 434, published by the American Society for Testing and Materials, 1916 Race Street, Philadelphia, Pennsylvania 19103, ASTM, 1968, Library of Congress Catalog Card Number 68-15545.
</P>
<P>(3) A statement shall appear in the advertisement providing the name and address of the testing administrator.
</P>
<CITA TYPE="N">[T.D. ATF-180, 49 FR 31673, Aug. 8, 1984, as amended by T.D. TTB-91, 76 FR 5477, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.2.8" TYPE="SUBPART">
<HEAD>Subpart H—Standards of Fill for Wine</HEAD>


<DIV8 N="§ 4.70" NODE="27:1.0.1.1.2.8.25.1" TYPE="SECTION">
<HEAD>§ 4.70   Application.</HEAD>
<P>(a) Except as provided in paragraph (b) of this section, no person engaged in business as a producer, rectifier, blender, importer, or wholesaler of wine, directly or indirectly or through an affiliate, shall sell or ship or deliver for sale or shipment, or otherwise introduce in interstate or foreign commerce, or receive therein, or remove from customs custody, any wine unless such wine is bottled or packed in the standard wine containers herein prescribed.
</P>
<P>(b) Sections 4.71 and 4.72 of this part do not apply to:
</P>
<P>(1) Sake;
</P>
<P>(2) Wine packed in containers of 18 liters or more;
</P>
<P>(3) Imported wine in the original containers in which entered customs custody if the wine was bottled or packed before January 1, 1979;
</P>
<P>(4) Imported wine bottled or packed before January 1, 1979, and certified as to such in a statement, available to the appropriate TTB officer upon request, signed by an official duly authorized by the appropriate foreign government; or
</P>
<P>(5) Wine domestically bottled or packed, either in or out of customs custody, before October 24, 1943, if the container, or the label on the container, bears a conspicuous statement of the net contents, and if the actual capacity of the container is not substantially less than the apparent capacity upon visual examination under ordinary conditions of purchase or use.
</P>
<P>(c) Section 4.72 of this part does not apply to wine domestically bottled or packed, either in or out of customs custody, before January 1, 1979, if the wine was bottled or packed according to the standards of fill (listed in ounces, quarts, and gallons) prescribed by regulation before that date.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. ATF-12, 39 FR 45222, Dec. 31, 1974, as amended by T.D. ATF-49, 43 FR 19848, May 9, 1978; T.D. ATF-76, 46 FR 1727, Jan. 7, 1981; T.D. TTB-91, 76 FR 5477, Feb. 1, 2011; T.D. TTB-145, 81 FR 94197, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 4.71" NODE="27:1.0.1.1.2.8.25.2" TYPE="SECTION">
<HEAD>§ 4.71   Standard wine containers.</HEAD>
<P>(a) A standard wine container shall be made, formed and filled to meet the following specifications:
</P>
<P>(1) <I>Design.</I> It shall be so made and formed as not to mislead the purchaser. Wine containers shall be held (irrespective of the correctness of the net contents specified on the label) to be so made and formed as to mislead the purchaser if the actual capacity is substantially less than the apparent capacity upon visual examination under ordinary conditions of purchase or use; and
</P>
<P>(2) <I>Fill.</I> It shall be so filled as to contain the quantity of wine specified in one of the standards of fill prescribed in § 4.72; and
</P>
<P>(3) <I>Headspace.</I> It must be designed and filled so that the headspace, or empty space between the top of the wine and the top of the container, meets the following specifications:
</P>
<P>(i) <I>187 mL or more.</I> If the net contents stated on the label are 187 milliliters or more, the headspace must not exceed 6 percent of the container's total capacity after closure.
</P>
<P>(ii) <I>Less than 187 mL.</I> If the net contents stated on the label are less than 187 milliliters, except as described in (a)(3)(iii) of this section, the headspace must not exceed 10 percent of the container's total capacity after closure.
</P>
<P>(iii) <I>Exception.</I> Wine bottled in clear containers with the contents clearly visible, with a net content stated on the label of 100 milliliters or less, may have a headspace that does not exceed 30 percent of the container's total capacity after closure.
</P>
<CITA TYPE="N">[T.D. ATF-12, 39 FR 45222, Dec. 31, 1974, as amended by T.D. TTB-91, 76 FR 5477, Feb. 1, 2011; T.D. TTB-165, 85 FR 85520, Dec. 29, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 4.72" NODE="27:1.0.1.1.2.8.25.3" TYPE="SECTION">
<HEAD>§ 4.72   Metric standards of fill.</HEAD>
<P>(a) <I>Authorized standards of fill.</I> The standards of fill for wine are the following:
</P>
<P>(1) 3 liters.
</P>
<P>(2) 2.25 liters.
</P>
<P>(3) 1.8 liters.
</P>
<P>(4) 1.5 liters.
</P>
<P>(5) 1 liter.
</P>
<P>(6) 750 milliliters.
</P>
<P>(7) 720 milliliters.
</P>
<P>(8) 700 milliliters.
</P>
<P>(9) 620 milliliters.
</P>
<P>(10) 600 milliliters.
</P>
<P>(11) 568 milliliters.
</P>
<P>(12) 550 milliliters.
</P>
<P>(13) 500 milliliters.
</P>
<P>(14) 473 milliliters.
</P>
<P>(15) 375 milliliters.
</P>
<P>(16) 360 milliliters.
</P>
<P>(17) 355 milliliters.
</P>
<P>(18) 330 milliliters.
</P>
<P>(19) 300 milliliters.
</P>
<P>(20) 250 milliliters.
</P>
<P>(21) 200 milliliters.
</P>
<P>(22) 187 milliliters.
</P>
<P>(23) 180 milliliters.
</P>
<P>(24) 100 milliliters.
</P>
<P>(25) 50 milliliters.




</P>
<P>(b) <I>Sizes larger than 3 liters.</I> Wine may be bottled or packed in containers of 4 liters or larger if the containers are filled and labeled in quantities of even liters (4 liters, 5 liters, 6 liters, etc.).
</P>
<P>(c) <I>Tolerances.</I> The tolerances in fill are the same as are allowed by § 4.37 in respect to statement of net contents on labels.
</P>
<CITA TYPE="N">[T.D. ATF-12, 39 FR 45223, Dec. 31, 1974, as amended by T.D. ATF-49, 43 FR 19848, May 9, 1978; T.D. ATF-76, 46 FR 1727, Jan. 7, 1981; T.D. ATF-303, 55 FR 42713, Oct. 23, 1990. Redesignated by T.D. ATF-953, 68 FR 39455, July 2, 2003; T.D. TTB-165, 85 FR 85520, Dec. 29, 2020; T.D. TTB-200, 90 FR 1875, Jan. 20, 2025]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.2.9" TYPE="SUBPART">
<HEAD>Subpart I—General Provisions</HEAD>


<DIV8 N="§ 4.80" NODE="27:1.0.1.1.2.9.25.1" TYPE="SECTION">
<HEAD>§ 4.80   Exports.</HEAD>
<P>The regulations in this part shall not apply to wine exported in bond.


</P>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.2.10" TYPE="SUBPART">
<HEAD>Subpart J—American Grape Variety Names</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-370, 61 FR 539, Jan. 8, 1996, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 4.91" NODE="27:1.0.1.1.2.10.25.1" TYPE="SECTION">
<HEAD>§ 4.91   List of approved names.</HEAD>
<P>The following grape variety names have been approved by the Administrator for use as type designations for American wines. When more than one name may be used to identify a single variety of grape, the synonym is shown in parentheses following the grape variety names. Grape variety names may appear on labels of wine in upper or in lower case, and may be spelled with or without the hyphens or diacritic marks indicated in the following list.
</P>
<EXTRACT>
<FP-1><I>Aglianico</I>
</FP-1>
<FP-1><I>Agawam</I>
</FP-1>
<FP-1><I>Albariño (Alvarinho)</I> 
</FP-1>
<FP-1><I>Albemarle</I>
</FP-1>
<FP-1><I>Aleatico</I>
</FP-1>
<FP-1><I>Alicante Bouschet</I>
</FP-1>
<FP-1><I>Aligoté</I>
</FP-1>
<FP-1><I>Alvarelhão</I>
</FP-1>
<FP-1><I>Alvarinho (Albariño)</I> 
</FP-1>
<FP-1><I>Arneis</I>
</FP-1>
<FP-1><I>Aurore</I>
</FP-1>
<FP-1><I>Auxerrois</I>
</FP-1>
<FP-1><I>Bacchus</I>
</FP-1>
<FP-1><I>Baco blanc</I>
</FP-1>
<FP-1><I>Baco noir</I>
</FP-1>
<FP-1><I>Barbera</I>
</FP-1>
<FP-1><I>Beacon</I>
</FP-1>
<FP-1><I>Beclan</I>
</FP-1>
<FP-1><I>Bellandais</I>
</FP-1>
<FP-1><I>Beta</I>
</FP-1>
<FP-1><I>Biancolella</I>
</FP-1>
<FP-1><I>Black Corinth</I> 
</FP-1>
<FP-1><I>Black Malvoisie (Cinsaut)</I>
</FP-1>
<FP-1><I>Black Monukka</I>
</FP-1>
<FP-1><I>Black Muscat (Muscat Hamburg)</I>
</FP-1>
<FP-1><I>Black Pearl</I>
</FP-1>
<FP-1><I>Blanc Du Bois</I>
</FP-1>
<FP-1><I>Blaufränkish (Lemberger, Limberger)</I>
</FP-1>
<FP-1><I>Blue Eye</I>
</FP-1>
<FP-1><I>Bonarda</I>
</FP-1>
<FP-1><I>Bountiful</I>
</FP-1>
<FP-1><I>Brianna</I>
</FP-1>
<FP-1><I>Burdin 4672</I>
</FP-1>
<FP-1><I>Burdin 5201</I>
</FP-1>
<FP-1><I>Burdin 11042</I>
</FP-1>
<FP-1><I>Burgaw</I>
</FP-1>
<FP-1><I>Burger</I>
</FP-1>
<FP-1><I>Cabernet Diane</I>
</FP-1>
<FP-1><I>Cabernet Doré</I>
</FP-1>
<FP-1><I>Cabernet franc</I>
</FP-1>
<FP-1><I>Cabernet Pfeffer</I>
</FP-1>
<FP-1><I>Cabernet Sauvignon</I>
</FP-1>
<FP-1><I>Calzin</I>
</FP-1>
<FP-1><I>Campbell Early</I> (<I>Island Belle</I>)
</FP-1>
<FP-1><I>Canada Muscat</I>
</FP-1>
<FP-1><I>Canaiolo (Canaiolo Nero)</I>
</FP-1>
<FP-1><I>Canaiolo Nero (Canaiolo)</I>
</FP-1>
<FP-1><I>Captivator</I>
</FP-1>
<FP-1><I>Carignan (Carignane)</I>
</FP-1>
<FP-1><I>Carignane (Carignan)</I>
</FP-1>
<FP-1><I>Carlos</I>
</FP-1>
<FP-1><I>Carmenère</I>
</FP-1>
<FP-1><I>Carmine</I>
</FP-1>
<FP-1><I>Carnelian</I>
</FP-1>
<FP-1><I>Cascade</I>
</FP-1>
<FP-1><I>Castel 19-637</I>
</FP-1>
<FP-1><I>Catawba</I>
</FP-1>
<FP-1><I>Cayuga White</I>
</FP-1>
<FP-1><I>Centurion</I>
</FP-1>
<FP-1><I>Chambourcin</I>
</FP-1>
<FP-1><I>Chancellor</I>
</FP-1>
<FP-1><I>Charbono</I>
</FP-1>
<FP-1><I>Chardonel</I>
</FP-1>
<FP-1><I>Chardonnay</I>
</FP-1>
<FP-1><I>Chasselas doré</I>
</FP-1>
<FP-1><I>Chelois</I>
</FP-1>
<FP-1><I>Chenin blanc</I>
</FP-1>
<FP-1><I>Chief</I>
</FP-1>
<FP-1><I>Chowan</I>
</FP-1>
<FP-1><I>Cinsaut</I> (<I>Black Malvoisie</I>)
</FP-1>
<FP-1><I>Clairette blanche</I>
</FP-1>
<FP-1><I>Clinton</I>
</FP-1>
<FP-1><I>Colombard</I> (<I>French Colombard</I>)
</FP-1>
<FP-1><I>Colobel</I>
</FP-1>
<FP-1><I>Corot noir</I>
</FP-1>
<FP-1><I>Cortese</I>
</FP-1>
<FP-1><I>Corvina</I>
</FP-1>
<FP-1><I>Concord</I>
</FP-1>
<FP-1><I>Conquistador</I>
</FP-1>
<FP-1><I>Couderc noir</I>
</FP-1>
<FP-1><I>Counoise</I>
</FP-1>
<FP-1><I>Cowart</I>
</FP-1>
<FP-1><I>Creek</I>
</FP-1>
<FP-1><I>Crimson Cabernet</I>
</FP-1>
<FP-1><I>Cynthiana</I> (<I>Norton</I>)
</FP-1>
<FP-1><I>Dearing</I>
</FP-1>
<FP-1><I>De Chaunac</I>
</FP-1>
<FP-1><I>Delaware</I>
</FP-1>
<FP-1><I>Diamond</I>
</FP-1>
<FP-1><I>Dixie</I>
</FP-1>
<FP-1><I>Dolcetto</I>
</FP-1>
<FP-1><I>Doreen</I>
</FP-1>
<FP-1><I>Dornfelder</I>
</FP-1>
<FP-1><I>Dulcet</I>
</FP-1>
<FP-1><I>Durif (Petite Sirah)</I>
</FP-1>
<FP-1><I>Dutchess</I>
</FP-1>
<FP-1><I>Early Burgundy</I>
</FP-1>
<FP-1><I>Early Muscat</I>
</FP-1>
<FP-1><I>Edelweiss</I>
</FP-1>
<FP-1><I>Eden</I>
</FP-1>
<FP-1><I>Ehrenfelser</I>
</FP-1>
<FP-1><I>Ellen Scott</I>
</FP-1>
<FP-1><I>Elvira</I>
</FP-1>
<FP-1><I>Emerald Riesling</I>
</FP-1>
<FP-1><I>Erbaluce</I>
</FP-1>
<FP-1><I>Favorite</I>
</FP-1>
<FP-1><I>Feher Szagos</I>
</FP-1>
<FP-1><I>Fernão Pires</I>
</FP-1>
<FP-1><I>Fern Munson</I>
</FP-1>
<FP-1><I>Fiano</I> 
</FP-1>
<FP-1><I>Flame Tokay</I>
</FP-1>
<FP-1><I>Flora</I>
</FP-1>
<FP-1><I>Florental</I>
</FP-1>
<FP-1><I>Folle blanche</I>
</FP-1>
<FP-1><I>Forastera</I>
</FP-1>
<FP-1><I>Fredonia</I>
</FP-1>
<FP-1><I>Freedom</I>
</FP-1>
<FP-1><I>Freisa</I>
</FP-1>
<FP-1><I>French Colombard (Colombard)</I>
</FP-1>
<FP-1><I>Frontenac</I>
</FP-1>
<FP-1><I>Frontenac gris</I>
</FP-1>
<FP-1><I>Fry</I>
</FP-1>
<FP-1><I>Fumé blanc (Sauvignon blanc)</I>
</FP-1>
<FP-1><I>Furmint</I>
</FP-1>
<FP-1><I>Gamay noir</I>
</FP-1>
<FP-1><I>Garnacha (Grenache, Grenache noir)</I>
</FP-1>
<FP-1><I>Garnacha blanca (Grenache blanc)</I>
</FP-1>
<FP-1><I>Garronet</I>
</FP-1>
<FP-1><I>Geneva Red 7</I>
</FP-1>
<FP-1><I>Gewürztraminer</I>
</FP-1>
<FP-1><I>Gladwin 113</I>
</FP-1>
<FP-1><I>Glennel</I>
</FP-1>
<FP-1><I>Gold</I>
</FP-1>
<FP-1><I>Golden Isles</I>
</FP-1>
<FP-1><I>Golden Muscat</I>
</FP-1>
<FP-1><I>Graciano</I>
</FP-1>
<FP-1><I>Grand Noir</I>
</FP-1>
<FP-1><I>Green Hungarian</I>
</FP-1>
<FP-1><I>Grenache (Garnacha, Grenache noir)</I>
</FP-1>
<FP-1><I>Grenache blanc (Garnacha blanca)</I>
</FP-1>
<FP-1><I>Grenache noir (Garnacha, Grenache)</I>
</FP-1>
<FP-1><I>Grignolino</I>
</FP-1>
<FP-1><I>Grillo</I>
</FP-1>
<FP-1><I>Gros Verdot</I>
</FP-1>
<FP-1><I>Grüner Veltliner</I>
</FP-1>
<FP-1><I>Helena</I>
</FP-1>
<FP-1><I>Herbemont</I>
</FP-1>
<FP-1><I>Higgins</I>
</FP-1>
<FP-1><I>Horizon</I>
</FP-1>
<FP-1><I>Hunt</I>
</FP-1>
<FP-1><I>Iona</I>
</FP-1>
<FP-1><I>Interlaken</I>
</FP-1>
<FP-1><I>Isabella</I>
</FP-1>
<FP-1><I>Island Belle (Campbell Early)</I>
</FP-1>
<FP-1><I>Ives</I>
</FP-1>
<FP-1><I>James</I>
</FP-1>
<FP-1><I>Jewell</I>
</FP-1>
<FP-1><I>Joannes Seyve 12-428</I>
</FP-1>
<FP-1><I>Joannes Seyve 23-416</I>
</FP-1>
<FP-1><I>Kerner</I>
</FP-1>
<FP-1><I>Kay Gray</I>
</FP-1>
<FP-1><I>Kleinberger</I>
</FP-1>
<FP-1><I>La Crescent</I>
</FP-1>
<FP-1><I>LaCrosse</I>
</FP-1>
<FP-1><I>Lagrein</I>
</FP-1>
<FP-1><I>Lake Emerald</I>
</FP-1>
<FP-1><I>Lambrusco</I>
</FP-1>
<FP-1><I>Landal</I>
</FP-1>
<FP-1><I>Landot noir</I>
</FP-1>
<FP-1><I>Lenoir</I>
</FP-1>
<FP-1><I>Léon Millot</I>
</FP-1>
<FP-1><I>Lemberger (Blaufränkish, Limberger)</I>
</FP-1>
<FP-1><I>Limberger (Blaufränkisch, Lemberger)</I>
</FP-1>
<FP-1><I>Louise Swenson</I>
</FP-1>
<FP-1><I>Lucie Kuhlmann</I>
</FP-1>
<FP-1><I>Madeline Angevine</I>
</FP-1>
<FP-1><I>Magnolia</I>
</FP-1>
<FP-1><I>Magoon</I>
</FP-1>
<FP-1><I>Malbec</I>
</FP-1>
<FP-1><I>Malvasia bianca (Moscato greco)</I>
</FP-1>
<FP-1><I>Mammolo</I>
</FP-1>
<FP-1><I>Maréchal Foch</I>
</FP-1>
<FP-1><I>Marquette</I>
</FP-1>
<FP-1><I>Marsanne</I>
</FP-1>
<FP-1><I>Mataro (Monastrell, Mourvèdre)</I>
</FP-1>
<FP-1><I>Melody</I>
</FP-1>
<FP-1><I>Melon (Melon de Bourgogne)</I>
</FP-1>
<FP-1><I>Melon de Bourgogne (Melon)</I>
</FP-1>
<FP-1><I>Merlot</I>
</FP-1>
<FP-1><I>Meunier (Pinot Meunier)</I>
</FP-1>
<FP-1><I>Mish</I>
</FP-1>
<FP-1><I>Mission</I>
</FP-1>
<FP-1><I>Missouri Riesling</I>
</FP-1>
<FP-1><I>Monastrell (Mataro, Mourvèdre)</I>
</FP-1>
<FP-1><I>Mondeuse (Refosco)</I>
</FP-1>
<FP-1><I>Montefiore</I>
</FP-1>
<FP-1><I>Montepulciano</I>
</FP-1>
<FP-1><I>Moore Early</I>
</FP-1>
<FP-1><I>Morio-Muskat</I>
</FP-1>
<FP-1><I>Moscato greco (Malvasia bianca)</I>
</FP-1>
<FP-1><I>Mourvèdre (Mataro)</I>
</FP-1>
<FP-1><I>Mourvèdre (Mataro, Monastrell)</I>
</FP-1>
<FP-1><I>Müller-Thurgau</I>
</FP-1>
<FP-1><I>Münch</I>
</FP-1>
<FP-1><I>Muscadelle</I>
</FP-1>
<FP-1><I>Muscat blanc (Muscat Canelli)</I>
</FP-1>
<FP-1><I>Muscat Canelli (Muscat blanc)</I>
</FP-1>
<FP-1><I>Muscat du Moulin</I>
</FP-1>
<FP-1><I>Muscat Hamburg (Black Muscat)</I>
</FP-1>
<FP-1><I>Muscat of Alexandria</I>
</FP-1>
<FP-1><I>Muscat Ottonel</I>
</FP-1>
<FP-1><I>Naples</I>
</FP-1>
<FP-1><I>Nebbiolo</I>
</FP-1>
<FP-1><I>Négrette</I>
</FP-1>
<FP-1><I>Negrara</I>
</FP-1>
<FP-1><I>Negro Amaro</I>
</FP-1>
<FP-1><I>Nero d'Avola</I>
</FP-1>
<FP-1><I>New York Muscat</I>
</FP-1>
<FP-1><I>Niagara</I>
</FP-1>
<FP-1><I>Noah</I>
</FP-1>
<FP-1><I>Noble</I>
</FP-1>
<FP-1><I>Noiret</I>
</FP-1>
<FP-1><I>Norton (Cynthiana)</I>
</FP-1>
<FP-1><I>Ontario</I>
</FP-1>
<FP-1><I>Orange Muscat</I>
</FP-1>
<FP-1><I>Palomino</I>
</FP-1>
<FP-1><I>Pamlico</I>
</FP-1>
<FP-1><I>Pedro Ximenes</I>
</FP-1>
<FP-1><I>Peloursin</I>
</FP-1>
<FP-1><I>Petit Bouschet</I>
</FP-1>
<FP-1><I>Petit Manseng</I>
</FP-1>
<FP-1><I>Petit Verdot</I>
</FP-1>
<FP-1><I>Petite Sirah (Durif)</I>
</FP-1>
<FP-1><I>Peverella</I>
</FP-1>
<FP-1><I>Picpoul (Piquepoul blanc)</I>
</FP-1>
<FP-1><I>Pinotage</I>
</FP-1>
<FP-1><I>Pinot blanc</I>
</FP-1>
<FP-1><I>Pinot Grigio (Pinot gris)</I>
</FP-1>
<FP-1><I>Pinot gris (Pinot Grigio)</I>
</FP-1>
<FP-1><I>Pinot Meunier (Meunier)</I>
</FP-1>
<FP-1><I>Pinot noir</I>
</FP-1>
<FP-1><I>Piquepoul blanc (Picpoul)</I>
</FP-1>
<FP-1><I>Prairie Star</I>
</FP-1>
<FP-1><I>Precoce de Malingre</I>
</FP-1>
<FP-1><I>Pride</I>
</FP-1>
<FP-1><I>Primitivo</I>
</FP-1>
<FP-1><I>Princess</I>
</FP-1>
<FP-1><I>Rayon d'Or</I>
</FP-1>
<FP-1><I>Ravat 34</I>
</FP-1>
<FP-1><I>Ravat 51 (Vignoles)</I>
</FP-1>
<FP-1><I>Ravat noir</I>
</FP-1>
<FP-1><I>Redgate</I>
</FP-1>
<FP-1><I>Refosco (Mondeuse)</I>
</FP-1>
<FP-1><I>Regale</I>
</FP-1>
<FP-1><I>Reliance</I>
</FP-1>
<FP-1><I>Riesling (White Riesling)</I>
</FP-1>
<FP-1><I>Rkatsiteli (Rkatziteli)</I>
</FP-1>
<FP-1><I>Rkatziteli (Rkatsiteli)</I>
</FP-1>
<FP-1><I>Roanoke</I>
</FP-1>
<FP-1><I>Rondinella</I>
</FP-1>
<FP-1><I>Rosette</I>
</FP-1>
<FP-1><I>Roucaneuf</I>
</FP-1>
<FP-1><I>Rougeon</I>
</FP-1>
<FP-1><I>Roussanne</I>
</FP-1>
<FP-1><I>Royalty</I>
</FP-1>
<FP-1><I>Rubired</I>
</FP-1>
<FP-1><I>Ruby Cabernet</I>
</FP-1>
<FP-1><I>St. Croix</I>
</FP-1>
<FP-1><I>St. Laurent</I>
</FP-1>
<FP-1><I>St. Pepin</I>
</FP-1>
<FP-1><I>St. Vincent</I>
</FP-1>
<FP-1><I>Sabrevois</I>
</FP-1>
<FP-1><I>Sagrantino</I>
</FP-1>
<FP-1><I>Saint Macaire</I>
</FP-1>
<FP-1><I>Salem</I>
</FP-1>
<FP-1><I>Salvador</I>
</FP-1>
<FP-1><I>Sangiovese</I>
</FP-1>
<FP-1><I>Sauvignon blanc (Fumé blanc)</I>
</FP-1>
<FP-1><I>Sauvignon gris</I>
</FP-1>
<FP-1><I>Scarlet</I>
</FP-1>
<FP-1><I>Scheurebe</I>
</FP-1>
<FP-1><I>Sémillon</I>
</FP-1>
<FP-1><I>Sereksiya</I>
</FP-1>
<FP-1><I>Seyval</I> (<I>Seyval blanc</I>)
</FP-1>
<FP-1><I>Seyval blanc (Seyval)</I>
</FP-1>
<FP-1><I>Shiraz (Syrah)</I>
</FP-1>
<FP-1><I>Siegerrebe</I>
</FP-1>
<FP-1><I>Siegfried</I>
</FP-1>
<FP-1><I>Southland</I>
</FP-1>
<FP-1><I>Souzão</I>
</FP-1>
<FP-1><I>Steuben</I>
</FP-1>
<FP-1><I>Stover</I>
</FP-1>
<FP-1><I>Sugargate</I>
</FP-1>
<FP-1><I>Sultanina</I> (<I>Thomspon Seedless</I>)
</FP-1>
<FP-1><I>Summit</I>
</FP-1>
<FP-1><I>Suwannee</I>
</FP-1>
<FP-1><I>Sylvaner</I>
</FP-1>
<FP-1><I>Symphony</I>
</FP-1>
<FP-1><I>Syrah</I> (<I>Shiraz</I>)
</FP-1>
<FP-1><I>Swenson Red</I>
</FP-1>
<FP-1><I>Tannat</I> 
</FP-1>
<FP-1><I>Tarheel</I>
</FP-1>
<FP-1><I>Taylor</I>
</FP-1>
<FP-1><I>Tempranillo</I> (<I>Valdepeñas</I>)
</FP-1>
<FP-1><I>Teroldego</I>
</FP-1>
<FP-1><I>Thomas</I>
</FP-1>
<FP-1><I>Thompson Seedless</I> (<I>Sultanina</I>)
</FP-1>
<FP-1><I>Tinta Madeira</I>
</FP-1>
<FP-1><I>Tinto cão</I>
</FP-1>
<FP-1><I>Tocai Friulano</I>
</FP-1>
<FP-1><I>Topsail</I>
</FP-1>
<FP-1><I>Touriga</I>
</FP-1>
<FP-1><I>Traminer</I>
</FP-1>
<FP-1><I>Traminette</I>
</FP-1>
<FP-1><I>Trebbiano (Ugni blanc)</I>
</FP-1>
<FP-1><I>Trousseau</I>
</FP-1>
<FP-1><I>Trousseau gris</I>
</FP-1>
<FP-1><I>Ugni blanc</I> (<I>Trebbiano</I>)
</FP-1>
<FP-1><I>Valdepeñas (Tempranillo)</I>
</FP-1>
<FP-1><I>Valdiguié</I>
</FP-1>
<FP-1><I>Valerien</I>
</FP-1>
<FP-1><I>Valiant</I>
</FP-1>
<FP-1><I>Valvin Muscat</I>
</FP-1>
<FP-1><I>Van Buren</I>
</FP-1>
<FP-1><I>Veeblanc</I>
</FP-1>
<FP-1><I>Veltliner</I>
</FP-1>
<FP-1><I>Ventura</I>
</FP-1>
<FP-1><I>Verdelet</I>
</FP-1>
<FP-1><I>Verdelho</I>
</FP-1>
<FP-1><I>Vergennes</I>
</FP-1>
<FP-1><I>Vermentino</I>
</FP-1>
<FP-1><I>Vidal blanc</I>
</FP-1>
<FP-1><I>Vignoles (Ravat 51)</I>
</FP-1>
<FP-1><I>Villard blanc</I>
</FP-1>
<FP-1><I>Villard noir</I>
</FP-1>
<FP-1><I>Vincent</I>
</FP-1>
<FP-1><I>Viognier</I>
</FP-1>
<FP-1><I>Vivant</I>
</FP-1>
<FP-1><I>Welsch Rizling</I>
</FP-1>
<FP-1><I>Watergate</I>
</FP-1>
<FP-1><I>Welder</I>
</FP-1>
<FP-1><I>White Riesling (Riesling)</I>
</FP-1>
<FP-1><I>Wine King</I>
</FP-1>
<FP-1><I>Yuga</I>
</FP-1>
<FP-1><I>Zinfandel</I>
</FP-1>
<FP-1><I>Zinthiana</I>
</FP-1>
<FP-1><I>Zweigelt</I></FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-370, 61 FR 539, Jan. 8, 1996, as amended by T.D. ATF-417, 64 FR 49388, Sept. 13, 1999; T.D. ATF-433, 65 FR 78096, Dec. 14, 2000; T.D. ATF-466, 66 FR 49280, Sept. 27, 2001; T.D. ATF-475, 67 FR 11918, Mar. 18, 2002; T.D. ATF-481, 67 FR 56481, Sept. 4, 2002; T.D. TTB-95, 76 FR 66628, Oct. 25, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 4.92" NODE="27:1.0.1.1.2.10.25.2" TYPE="SECTION">
<HEAD>§ 4.92   Alternative names permitted for temporary use.</HEAD>
<P>The following alternative names shown in the left column may be used as the type designation for American wine in lieu of the name of the grape variety shown in the right column. Alternative names listed in the left column may only be used for wine bottled prior to the date indicated.
</P>
<P>(a) <I>Wines bottled prior to January 1, 1997.</I>
</P>
<EXTRACT>
<HD2>Alternative Name/Name
</HD2>
<FP-1><I>Baco 1—Baco noir</I>
</FP-1>
<FP-1><I>Baco 22A—Baco blanc</I>
</FP-1>
<FP-1><I>Bastardo—Trousseau</I>
</FP-1>
<FP-1><I>Black Spanish—Lenoir</I>
</FP-1>
<FP-1><I>Burdin 7705—Florental</I>
</FP-1>
<FP-1><I>Cayuga—Cayuga White</I>
</FP-1>
<FP-1><I>Chancellor noir—Chancellor</I>
</FP-1>
<FP-1><I>Chasselas—Chasselas doré</I>
</FP-1>
<FP-1><I>Chevrier—Sémillon</I>
</FP-1>
<FP-1><I>Chelois noir—Chelois</I>
</FP-1>
<FP-1><I>Couderc 71-20—Couderc noir</I>
</FP-1>
<FP-1><I>Couderc 299-35—Muscat du Moulin</I>
</FP-1>
<FP-1><I>Foch—Maréchal Foch</I>
</FP-1>
<FP-1><I>Franken Riesling—Sylvaner</I>
</FP-1>
<FP-1><I>Gutedel—Chasselas doré</I>
</FP-1>
<FP-1><I>Ives Seedling—Ives</I>
</FP-1>
<FP-1><I>Jacquez—Lenoir</I>
</FP-1>
<FP-1><I>Joannes Seyve 26-205—Chambourcin</I>
</FP-1>
<FP-1><I>Landot 244—Landal</I>
</FP-1>
<FP-1><I>Landot 4511—Landot noir</I>
</FP-1>
<FP-1><I>Millot—Leon Millot</I>
</FP-1>
<FP-1><I>Moore's Diamond—Diamond</I>
</FP-1>
<FP-1><I>Norton Seedling—Norton</I>
</FP-1>
<FP-1><I>Pfeffer Cabernet—Cabernet Pfeffer</I>
</FP-1>
<FP-1><I>Pineau de la Loire—Chenin blanc</I>
</FP-1>
<FP-1><I>Pinot Chardonnay—Chardonnay</I>
</FP-1>
<FP-1><I>Ravat 262—Ravat noir</I>
</FP-1>
<FP-1><I>Ruländer—Pinot gris</I>
</FP-1>
<FP-1><I>Seibel 128—Salvador</I>
</FP-1>
<FP-1><I>Seibel 1000—Rosette</I>
</FP-1>
<FP-1><I>Seibel 4986—Rayon d'Or</I>
</FP-1>
<FP-1><I>Seibel 5279—Aurore</I>
</FP-1>
<FP-1><I>Seibel 5898—Rougeon</I>
</FP-1>
<FP-1><I>Seibel 7053—Chancellor</I>
</FP-1>
<FP-1><I>Seibel 8357—Colobel</I>
</FP-1>
<FP-1><I>Seibel 9110—Verdelet</I>
</FP-1>
<FP-1><I>Seibel 9549—De Chaunac</I>
</FP-1>
<FP-1><I>Seibel 10878—Chelois</I>
</FP-1>
<FP-1><I>Seibel 13053—Cascade</I>
</FP-1>
<FP-1><I>Seibel 14596—Bellandais</I>
</FP-1>
<FP-1><I>Seyve-Villard 5-276—Seyval</I>
</FP-1>
<FP-1><I>Seyve-Villard 12-309—Roucaneuf</I>
</FP-1>
<FP-1><I>Seyve-Villard 12-375—Villard blanc</I>
</FP-1>
<FP-1><I>Seyve-Villard 18-283—Garronet</I>
</FP-1>
<FP-1><I>Seyve-Villard 18-315—Villard noir</I>
</FP-1>
<FP-1><I>Seyve-Villard 23-410—Valerien</I>
</FP-1>
<FP-1><I>Sweetwater—Chasselas doré</I>
</FP-1>
<FP-1><I>Verdelet blanc—Verdelet</I>
</FP-1>
<FP-1><I>Vidal 256—Vidal blanc</I>
</FP-1>
<FP-1><I>Virginia Seedling—Norton</I>
</FP-1>
<FP-1><I>Wälschriesling—Welsch Rizling</I>
</FP-1>
<FP-1><I>Welschriesling—Welsch Rizling</I></FP-1></EXTRACT>
<P>(b) <I>Wines bottled prior to January 1, 1999.</I>
</P>
<EXTRACT>
<HD2>Alternative Name/Name
</HD2>
<FP-1><I>Cabernet—Cabernet Sauvignon</I>
</FP-1>
<FP-1><I>Grey Riesling—Trousseau gris</I>
</FP-1>
<FP-1><I>Muscat Frontignan—Muscat blanc</I>
</FP-1>
<FP-1><I>Muscat Pantelleria—Muscat of Alexandria</I>
</FP-1>
<FP-1><I>Napa Gamay—Valdiquié</I>
</FP-1>
<FP-1><I>Pinot Saint George—Négrette</I>
</FP-1>
<FP-1><I>Sauvignon vert—Muscadelle</I></FP-1></EXTRACT>
<P>(c) <I>Wines bottled prior to January 1, 2006.</I>
</P>
<EXTRACT>
<HD2>Alternative Name/Name
</HD2>
<FP-1><I>Johannisberg Riesling—Riesling</I></FP-1></EXTRACT>
<P>(d) <I>Wines bottled prior to</I> October 29, 2012.
</P>
<EXTRACT>
<HD2>Alternative Name/Name
</HD2>
<FP-1><I>Agwam—Agawam</I></FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-370, 61 FR 539, Jan. 8, 1996, as amended by T.D. ATF-417, 64 FR 49388, Sept. 13, 1999; T.D. TTB-95, 76 FR 66629, Oct. 27, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 4.93" NODE="27:1.0.1.1.2.10.25.3" TYPE="SECTION">
<HEAD>§ 4.93   Approval of grape variety names.</HEAD>
<P>(a) Any interested person may petition the Administrator for the approval of a grape variety name. The petition may be in the form of a letter and should provide evidence of the following—
</P>
<P>(1) Acceptance of the new grape variety,
</P>
<P>(2) The validity of the name for identifying the grape variety,
</P>
<P>(3) That the variety is used or will be used in winemaking, and
</P>
<P>(4) That the variety is grown and used in the United States.
</P>
<P>(b) For the approval of names of new grape varieties, documentation submitted with the petition to establish the items in paragraph (a) of this section may include—
</P>
<P>(1) reference to the publication of the name of the variety in a scientific or professional journal of horticulture or a published report by a professional, scientific or winegrowers' organization,
</P>
<P>(2) reference to a plant patent, if so patented, and
</P>
<P>(3) information pertaining to the commercial potential of the variety, such as the acreage planted and its location or market studies.
</P>
<P>(c) The Administrator will not approve a grape variety name if:
</P>
<P>(1) The name has previously been used for a different grape variety;
</P>
<P>(2) The name contains a term or name found to be misleading under § 4.39; or
</P>
<P>(3) The name of a new grape variety contains the term “Riesling.”
</P>
<P>(d) For new grape varieties developed in the United States, the Administrator may determine if the use of names which contain words of geographical significance, place names, or foreign words are misleading under § 4.39. The Administrator will not approve the use of a grape variety name found to be misleading.
</P>
<P>(e) The Administrator shall publish the list of approved grape variety names at least annually in the <E T="04">Federal Register.</E>
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under Control Number 1512-0513)


</APPRO>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.2.11" TYPE="SUBPART">
<HEAD>Subpart K—Use of the Term “Organic”</HEAD>


<DIV8 N="§ 4.101" NODE="27:1.0.1.1.2.11.25.1" TYPE="SECTION">
<HEAD>§ 4.101   Use of the term “organic.”</HEAD>
<P>(a) Use of the term “organic” is optional and is treated as “additional information on labels” under § 4.38(f). 
</P>
<P>(b) Any use of the term “organic” on a wine label or in advertising of wine must comply with the United States Department of Agriculture's (USDA) National Organic Program rules (7 CFR part 205) as interpreted by the USDA. 
</P>
<P>(c) This section applies to labels and advertising that use the term “organic” on and after October 21, 2002.
</P>
<CITA TYPE="N">[T.D. ATF-483, 67 FR 62858, Oct. 8, 2002]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="5" NODE="27:1.0.1.1.3" TYPE="PART">
<HEAD>PART 5—LABELING AND ADVERTISING OF DISTILLED SPIRITS


</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5301, 7805, 27 U.S.C. 205 and 207.


</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-176, 87 7579, Feb. 9, 2022, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 5.0" NODE="27:1.0.1.1.3.0.25.1" TYPE="SECTION">
<HEAD>§ 5.0   Scope.</HEAD>
<P>This part sets forth requirements that apply to the labeling and packaging of distilled spirits in containers, including requirements for label approval and rules regarding mandatory, regulated, and prohibited labeling statements. This part also sets forth requirements that apply to the advertising of distilled spirits.


</P>
</DIV8>


<DIV6 N="A" NODE="27:1.0.1.1.3.1" TYPE="SUBPART">
<HEAD>Subpart A—General Provisions</HEAD>


<DIV8 N="§ 5.1" NODE="27:1.0.1.1.3.1.25.1" TYPE="SECTION">
<HEAD>§ 5.1   Definitions.</HEAD>
<P>When used in this part and on forms prescribed under this part, the following terms have the meaning assigned to them in this section, unless the terms appear in a context that requires a different meaning. Any other term defined in the Federal Alcohol Administration Act (FAA Act) and used in this part has the same meaning assigned to it by the FAA Act.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury.
</P>
<P><I>Advertisement or Advertising.</I> See § 5.232 for meaning of these terms as used in subpart N of this part.
</P>
<P><I>Age.</I> The length of time during which, after distillation and before bottling, the distilled spirits have been stored in oak barrels. “Age” for bourbon whisky, rye whisky, wheat whisky, malt whisky, or rye malt whisky, and straight whiskies other than straight corn whisky and straight American single malt whisky, means the period the whisky has been stored in charred new oak barrels.




</P>
<P><I>American proof.</I> See <I>Proof.</I>
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any function relating to the administration or enforcement of this part by the current version of TTB Order 1135.5, Delegation of the Administrator's Authorities in 27 CFR part 5, Labeling and Advertising of Distilled Spirits.
</P>
<P><I>Bottler.</I> Any distiller or processor of distilled spirits who places distilled spirits in containers.
</P>
<P><I>Brand name.</I> The name under which a distilled spirit or a line of distilled spirits is sold.
</P>
<P><I>Certificate holder.</I> The permittee or brewer whose name, address, and basic permit number, plant registry number, or brewer's notice number appears on an approved TTB Form 5100.31.
</P>
<P><I>Certificate of exemption from label approval.</I> A certificate issued on TTB Form 5100.31, which authorizes the bottling of wine or distilled spirits, under the condition that the product will under no circumstances be sold, offered for sale, shipped, delivered for shipment, or otherwise introduced by the applicant, directly or indirectly, into interstate or foreign commerce.
</P>
<P><I>Certificate of label approval (COLA).</I> A certificate issued on TTB Form 5100.31 that authorizes the bottling of wine, distilled spirits, or malt beverages, or the removal of bottled wine, distilled spirits, or malt beverages from customs custody for introduction into commerce, as long as the product bears labels identical to the labels appearing on the face of the certificate, or labels with changes authorized by TTB on the certificate or otherwise (such as through the issuance of public guidance available on the TTB website at <I>https://www.ttb.gov).</I>
</P>
<P><I>Container.</I> Any can, bottle, box, cask, keg, or other closed receptacle, in any size or material, which is for use in the sale of distilled spirits at retail. See subpart K of this part for rules regarding authorized standards of fill for containers.
</P>
<P><I>Customs officer.</I> An officer of U.S. Customs and Border Protection (CBP) or any agent or other person authorized by law to perform the duties of such an officer.
</P>
<P><I>Distilled spirits.</I> Ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whisky, rum, brandy, gin, and other distilled spirits, including all dilutions and mixtures thereof, for nonindustrial use. The term “distilled spirits” does not include mixtures containing wine, bottled at 48 degrees of proof (24 percent alcohol by volume) or less, if the mixture contains more than 50 percent wine on a proof gallon basis. The term “distilled spirits” also does not include products containing less than one degree of proof (0.5 percent alcohol by volume).
</P>
<P><I>Distilling season.</I> The period from January 1 through June 30, which is the spring distilling season, or the period from July 1 through December 31, which is the fall distilling season.
</P>
<P><I>Distinctive or fanciful name.</I> A descriptive name or phrase chosen to identify a distilled spirits product on the label. It does not include a brand name, class or type designation, or statement of composition.
</P>
<P><I>FAA Act.</I> The Federal Alcohol Administration Act.
</P>
<P><I>Gallon.</I> A U.S. gallon of 231 cubic inches at 60 degrees Fahrenheit.
</P>
<P><I>Grain.</I> Includes cereal grains and the seeds of the pseudocereals amaranth, buckwheat, and quinoa.
</P>
<P><I>In bulk.</I> In barrels or other receptacles having a capacity in excess of 1 wine gallon (3.785 liters).
</P>
<P><I>Interstate or foreign commerce.</I> Commerce between any State and any place outside of that State or commerce within the District of Columbia or commerce between points within the same State but through any place outside of that State.
</P>
<P><I>Liter or litre.</I> A metric unit of capacity equal to 1,000 cubic centimeters or 1,000 milliliters (mL) of distilled spirits at 15.56 degrees Celsius (60 degrees Fahrenheit), and equivalent to 33.814 U.S. fluid ounces.
</P>
<P><I>Net contents.</I> The amount, by volume, of distilled spirits held in a container.
</P>
<P><I>Permittee.</I> Any person holding a basic permit under the FAA Act.
</P>
<P><I>Person.</I> Any individual, corporation, partnership, association, joint-stock company, business trust, limited liability company, or other form of business enterprise, including a receiver, trustee, or liquidating agent and including an officer or employee of any agency of a State or political subdivision of a State.
</P>
<P><I>Produced at or distilled at.</I> When used with reference to specific degrees of proof of a distilled spirits product, the phrases “produced at” and “distilled at” mean the composite proof of the distilled spirits after completion of distillation and before reduction in proof, if any.
</P>
<P><I>Proof.</I> The ethyl alcohol content of a liquid at 60 degrees Fahrenheit, stated as twice the percentage of ethyl alcohol by volume.
</P>
<P><I>Proof gallon.</I> A gallon of liquid at 60 degrees Fahrenheit that contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit, referred to water at 60 degrees Fahrenheit as unity, or the alcoholic equivalent thereof.
</P>
<P><I>Responsible advertiser.</I> The permittee responsible for the publication or broadcast of an advertisement.
</P>
<P><I>Spirits.</I> See Distilled spirits.
</P>
<P><I>State.</I> One of the 50 States of the United States, the District of Columbia, or the Commonwealth of Puerto Rico.
</P>
<P><I>TTB.</I> The Alcohol and Tobacco Tax and Trade Bureau of the Department of the Treasury.
</P>
<P><I>United States (U.S.).</I> The 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.


</P>
<CITA TYPE="N">[T.D. TTB-176, 87 7579, Feb. 9, 2022, as amended by T.D. TTB-199, 89 FR 102734, Dec. 18, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 5.2" NODE="27:1.0.1.1.3.1.25.2" TYPE="SECTION">
<HEAD>§ 5.2   Territorial extent.</HEAD>
<P>The provisions of this part apply to the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 5.3" NODE="27:1.0.1.1.3.1.25.3" TYPE="SECTION">
<HEAD>§ 5.3   General requirements and prohibitions under the FAA Act.</HEAD>
<P>(a) <I>Certificates of label approval (COLAs).</I> Subject to the requirements and exceptions set forth in the regulations in subpart B of this part, any bottler of distilled spirits, and any person who removes distilled spirits in containers from customs custody for sale or any other commercial purpose, is required to first obtain from TTB a COLA covering the label(s) on each container.
</P>
<P>(b) <I>Alteration, mutilation, destruction, obliteration, or removal of labels.</I> Subject to the requirements and exceptions set forth in the regulations in subpart C of this part, it is unlawful to alter, mutilate, destroy, obliterate, or remove labels on distilled spirits containers. This prohibition applies to any person, including retailers, holding distilled spirits for sale in interstate or foreign commerce or any person holding distilled spirits for sale after shipment in interstate or foreign commerce.
</P>
<P>(c) <I>Labeling requirements for distilled spirits.</I> It is unlawful for any person engaged in business as a distiller, rectifier (processor), importer, wholesaler, bottler, or warehouseman and bottler, directly or indirectly, or through an affiliate, to sell or ship, or deliver for sale or shipment, or otherwise introduce or receive in interstate or foreign commerce, or remove from customs custody, any distilled spirits in containers unless such containers are marked, branded, labeled, and packaged in conformity with the regulations in this part.
</P>
<P>(d) <I>Labeled in accordance with this part.</I> In order to be labeled in accordance with the regulations in this part, a container of distilled spirits must be in compliance with the following requirements:
</P>
<P>(1) It must bear one or more label(s) meeting the standards for “labels” set forth in subpart D of this part;
</P>
<P>(2) One or more of the labels on the container must include the mandatory information set forth in subpart E of this part;
</P>
<P>(3) Claims on any label, container, or packaging (as defined in § 5.81) must comply with the rules for restricted label statements, as applicable, set forth in subpart F of this part;
</P>
<P>(4) Statements or any other representations on any label, container, or packaging (as defined in §§ 5.101 and 5.121) may not violate the regulations in subparts G and H of this part regarding certain practices on labeling of distilled spirits; and
</P>
<P>(5) The class and type designation on any label, as well as any designation appearing on containers or packaging, must comply with the standards of identity set forth in subpart I of this part.
</P>
<P>(e) <I>Packaged in accordance with this part.</I> In order to be packaged in accordance with the regulations in this part, the distilled spirits must be bottled in authorized standards of fill in containers that meet the requirements of subpart K of this part.


</P>
</DIV8>


<DIV8 N="§§ 5.4-5.6" NODE="27:1.0.1.1.3.1.25.4" TYPE="SECTION">
<HEAD>§§ 5.4-5.6   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 5.7" NODE="27:1.0.1.1.3.1.25.5" TYPE="SECTION">
<HEAD>§ 5.7   Other TTB labeling regulations that apply to distilled spirits.</HEAD>
<P>In addition to the regulations in this part, distilled spirits must also comply with the following TTB labeling regulations:
</P>
<P>(a) <I>Health warning statement.</I> Alcoholic beverages, including distilled spirits, that contain at least 0.5 percent alcohol by volume, must be labeled with a health warning statement, in accordance with the Alcoholic Beverage Labeling Act of 1988 (ABLA). The regulations implementing the ABLA are contained in 27 CFR part 16.
</P>
<P>(b) <I>Internal Revenue Code requirements.</I> The labeling and marking requirements for distilled spirits under the Internal Revenue Code are found in 27 CFR part 19, subpart T (for domestic products) and 27 CFR part 27, subpart E (for imported products).


</P>
</DIV8>


<DIV8 N="§ 5.8" NODE="27:1.0.1.1.3.1.25.6" TYPE="SECTION">
<HEAD>§ 5.8   Distilled spirits for export.</HEAD>
<P>The regulations in this part shall not apply to distilled spirits exported in bond.


</P>
</DIV8>


<DIV8 N="§ 5.9" NODE="27:1.0.1.1.3.1.25.7" TYPE="SECTION">
<HEAD>§ 5.9   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 5.10" NODE="27:1.0.1.1.3.1.25.8" TYPE="SECTION">
<HEAD>§ 5.10   Other related regulations.</HEAD>
<P>(a) <I>TTB regulations.</I> Other TTB regulations that relate to distilled spirits are listed in paragraphs (a)(1) through (8) of this section:
</P>
<P>(1) 27 CFR part 1—Basic Permit Requirements under the Federal Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits;
</P>
<P>(2) 27 CFR part 13—Labeling Proceedings;
</P>
<P>(3) 27 CFR part 16—Alcoholic Beverage Health Warning Statement;
</P>
<P>(4) 27 CFR part 19—Distilled Spirits Plants;
</P>
<P>(5) 27 CFR Part 26—Liquors and Articles from Puerto Rico and the Virgin Islands;
</P>
<P>(6) 27 CFR Part 27—Importation of Distilled Spirits, Wines, and Beer;
</P>
<P>(7) 27 CFR Part 28—Exportation of Alcohol; and
</P>
<P>(8) 27 CFR Part 71—Rules of Practice in Permit Proceedings.
</P>
<P>(b) <I>Other Federal Regulations.</I> The regulations listed in paragraphs (b)(1) through (8) of this section issued by other Federal agencies also may apply:
</P>
<P>(1) 7 CFR Part 205—National Organic Program;
</P>
<P>(2) 19 CFR Part 11—Packing and Stamping; Marking;
</P>
<P>(3) 19 CFR Part 102—Rules of Origin;
</P>
<P>(4) 19 CFR Part 134—Country of Origin Marking;
</P>
<P>(5) 21 CFR Part 1—General Enforcement Regulations, Subpart H, Registration of Food Facilities, and Subpart I, Prior Notice of Imported Food;
</P>
<P>(6) 21 CFR Parts 70-82, which pertain to food and color additives;
</P>
<P>(7) 21 CFR Part 110—Current Good Manufacturing Practice in Manufacturing, Packing, or Holding Human Food; and
</P>
<P>(8) 21 CFR Parts 170-189, which pertain to food additives and secondary direct food additives.


</P>
</DIV8>


<DIV8 N="§ 5.11" NODE="27:1.0.1.1.3.1.25.9" TYPE="SECTION">
<HEAD>§ 5.11   Forms.</HEAD>
<P>(a) <I>General.</I> TTB prescribes and makes available all forms required by this part. Any person completing a form must provide all of the information required by each form as indicated by the headings on the form and the instructions for the form. Each form must be filed in accordance with this part and the instructions for the form.
</P>
<P>(b) <I>Electronically filing forms.</I> The forms required by this part can be filed electronically by using TTB's online filing systems: COLAs Online and Formulas Online. Anyone who intends to use one of these online filing systems must first register to use the system by accessing the TTB website at <I>https://www.ttb.gov.</I>
</P>
<P>(c) <I>Obtaining paper forms.</I> Forms required by this part are available for printing through the TTB website (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8002, Cincinnati, OH 45202.


</P>
</DIV8>


<DIV8 N="§ 5.12" NODE="27:1.0.1.1.3.1.25.10" TYPE="SECTION">
<HEAD>§ 5.12   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to “appropriate TTB officers.” To find out which officers have been delegated specific authorities, see the current version of TTB Order 1135.5, Delegation of the Administrator's Authorities in 27 CFR part 5, Labeling and Advertising of Distilled Spirits. Copies of this order can be obtained by accessing the TTB website (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8002, Cincinnati, OH 45202.


</P>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.3.2" TYPE="SUBPART">
<HEAD>Subpart B—Certificates of Label Approval and Certificates of Exemption from Label Approval</HEAD>

<HD1>Requirements for Distilled Spirits Bottled in the United States


</HD1>

<DIV8 N="§ 5.21" NODE="27:1.0.1.1.3.2.25.1" TYPE="SECTION">
<HEAD>§ 5.21   Requirement for certificates of label approval (COLAs) for distilled spirits bottled in the United States.</HEAD>
<P>(a) <I>Applicability.</I> The certificate of label approval (COLA) requirements described in this section apply to distilled spirits bottled in the United States, outside of customs custody.
</P>
<P>(b) <I>Distilled spirits shipped or sold in interstate commerce.</I> No person may bottle distilled spirits without first applying for and obtaining a COLA issued by the appropriate TTB officer. This requirement applies to distilled spirits produced and bottled in the United States and to distilled spirits imported in bulk, regardless of where produced, and bottled in the United States. Bottlers may obtain an exemption from this requirement only if they satisfy the conditions set forth in § 5.23.
</P>
<P>(c) <I>Evidence of COLA.</I> Upon request by the appropriate TTB officer, a bottler or importer must provide evidence that a container of distilled spirits is covered by a COLA. This requirement may be satisfied by providing original COLAs, photocopies or electronic copies of COLAs, or records showing the TTB identification number assigned to the approved certificate.


</P>
</DIV8>


<DIV8 N="§ 5.22" NODE="27:1.0.1.1.3.2.25.2" TYPE="SECTION">
<HEAD>§ 5.22   Rules regarding certificates of label approval (COLAs) for distilled spirits bottled in the United States.</HEAD>
<P>(a) <I>What a COLA authorizes.</I> An approved TTB Form 5100.31 authorizes the bottling of distilled spirits covered by the certificate of label approval (COLA), as long as the container bears labels identical to the labels appearing on the face of the COLA, or labels with changes authorized by TTB on the COLA or otherwise (such as through the issuance of public guidance available on the TTB website at <I>https://www.ttb.gov</I>).
</P>
<P>(b) <I>When to obtain a COLA.</I> The COLA must be obtained prior to bottling. No bottler may bottle distilled spirits, or remove distilled spirits from the premises where bottled, unless a COLA has been obtained.
</P>
<P>(c) <I>Application for a COLA.</I> The bottler may apply for a COLA by submitting an application to TTB on Form 5100.31, in accordance with the instructions on the form. The bottler may apply for a COLA either electronically by accessing TTB's online system, COLAs Online, at <I>https://www.ttb.gov,</I> or by submitting the paper form. For procedures regarding the issuance of COLAs, see part 13 of this chapter.


</P>
</DIV8>


<DIV8 N="§ 5.23" NODE="27:1.0.1.1.3.2.25.3" TYPE="SECTION">
<HEAD>§ 5.23   Application for exemption from label approval for distilled spirits bottled in the United States.</HEAD>
<P>(a) <I>Exemption.</I> Any bottler of distilled spirits may apply to be exempt from the requirements of §§ 5.21, 5.22, and 5.30(h), by showing to the satisfaction of the appropriate TTB officer that the distilled spirits to be bottled are not to be sold, offered for sale, or shipped or delivered for shipment, or otherwise introduced, in interstate or foreign commerce.
</P>
<P>(b) <I>Application required.</I> The bottler must file an application on TTB Form 5100.31 for exemption from label approval before bottling the distilled spirits. The bottler may apply for a certificate of exemption from label approval either electronically, by accessing TTB's online system, COLAs Online, at <I>https://www.ttb.gov,</I> or by using the paper form. For procedures regarding the issuance of certificates of exemption from label approval, see part 13 of this chapter.
</P>
<P>(c) <I>Labeling of distilled spirits covered by certificate of exemption.</I> The application for a certificate of exemption from label approval requires that the applicant identify the State in which the product will be sold. As a condition of receiving exemption from label approval, the label covered by an approved certificate of exemption must include the statement “For sale in [name of State] only.” See §§ 19.517 and 19.518 of this chapter for additional labeling rules that apply to distilled spirits covered by a certificate of exemption.
</P>
<HD1>Requirements for Distilled Spirits Imported in Containers


</HD1>
</DIV8>


<DIV8 N="§ 5.24" NODE="27:1.0.1.1.3.2.25.4" TYPE="SECTION">
<HEAD>§ 5.24   Certificates of label approval (COLAs) for distilled spirits imported in containers.</HEAD>
<P>(a) <I>Application requirement.</I> Any person removing distilled spirits in containers from customs custody for consumption must first apply for and obtain a certificate of label approval (COLA) covering the distilled spirits from the appropriate TTB officer, or obtain authorization to use the COLA from the person to whom the COLA is issued.
</P>
<P>(b) <I>Release of distilled spirits from customs custody.</I> Distilled spirits, imported in containers, are not eligible for release from customs custody for consumption, and no person may remove such distilled spirits from customs custody for consumption, unless the person removing the distilled spirits has obtained a COLA covering the distilled spirits and is able to provide it (either electronically or on paper) upon request. Products imported under another person's COLA are eligible for release only if each bottle or individual container to be imported bears the name (or trade name) and address of the person to whom the COLA was issued by TTB, and only if the importer using the COLA to obtain release of a shipment can substantiate that the person to whom the COLA was issued has authorized its use by the importer.
</P>
<P>(c) <I>Filing requirements.</I> If filing electronically, the importer must file with U.S. Customs and Border Protection (CBP), at the time of filing the customs entry, the TTB-assigned identification number of the valid COLA that corresponds to the label on the product or lot of distilled spirits to be imported. If the importer is not filing electronically, the importer must provide a copy of the COLA to CBP at the time of entry. In addition, the importer must provide a copy of the applicable COLA, and proof of the COLA holder's authorization if applicable, upon request by the appropriate TTB officer or a customs officer.
</P>
<P>(d) <I>Evidence of COLA.</I> Upon request by the appropriate TTB officer, an importer must provide evidence that a container of distilled spirits is covered by a COLA. This requirement may be satisfied by providing original COLAs, photocopies or electronic copies of COLAs, or records showing the TTB identification number assigned to the approved certificate.
</P>
<P>(e) <I>Scope of this section.</I> The COLA requirement imposed by this section applies only to distilled spirits that are removed for sale or any other commercial purpose. Distilled spirits that are imported in containers are not eligible for a certificate of exemption from label approval. See 27 CFR 27.49, 27.74, and 27.75 for labeling exemptions applicable to certain imported samples of distilled spirits.
</P>
<P>(f) <I>Relabeling in customs custody.</I> Containers of distilled spirits in customs custody that are required to be covered by a COLA but are not labeled in conformity with a COLA must be relabeled, under the supervision and direction of customs officers, prior to their removal from customs custody for consumption.


</P>
</DIV8>


<DIV8 N="§ 5.25" NODE="27:1.0.1.1.3.2.25.5" TYPE="SECTION">
<HEAD>§ 5.25   Rules regarding certificates of label approval (COLAs) for distilled spirits imported in containers.</HEAD>
<P>(a) <I>What COLA authorizes.</I> An approved TTB Form 5100.31 authorizes the use of the labels covered by the certificate of label approval (COLA) on containers of distilled spirits, as long as the container bears labels identical to the labels appearing on the face of the COLA, or labels with changes authorized by the form or otherwise authorized by TTB (such as through the issuance of public guidance available on the TTB website at <I>https://www.ttb.gov</I>).
</P>
<P>(b) <I>When to obtain a COLA.</I> The COLA must be obtained prior to the removal of distilled spirits in containers from customs custody for consumption.
</P>
<P>(c) <I>Application for a COLA.</I> The person responsible for the importation of distilled spirits must obtain approval of the labels by submitting an application to TTB on TTB Form 5100.31. A person may apply for a COLA either electronically, by accessing TTB's online system, COLAs Online, at <I>https://www.ttb.gov,</I> or by submitting the paper form. For procedures regarding the issuance of COLAs, see part 13 of this chapter.
</P>
<HD1>Administrative Rules


</HD1>
</DIV8>


<DIV8 N="§ 5.27" NODE="27:1.0.1.1.3.2.25.6" TYPE="SECTION">
<HEAD>§ 5.27   Presenting certificates of label approval (COLAs) to Government officials.</HEAD>
<P>A certificate holder must present the original or a paper or electronic copy of the appropriate certificate of label approval (COLA) upon the request of any duly authorized representative of the United States Government.


</P>
</DIV8>


<DIV8 N="§ 5.28" NODE="27:1.0.1.1.3.2.25.7" TYPE="SECTION">
<HEAD>§ 5.28   Formulas, samples, and documentation.</HEAD>
<P>(a) In addition to any formula specifically required under subpart J of this part, TTB may require formulas under certain circumstances in connection with the label approval process. Prior to or in conjunction with the review of an application for a certificate of label approval (COLA) on TTB Form 5100.31, the appropriate TTB officer may require a bottler or importer to submit a formula, the results of laboratory testing of the distilled spirits, or a sample of any distilled spirits or ingredients used in producing a distilled spirit. After the issuance of a COLA, or with regard to any distilled spirits required to be covered by a COLA, the appropriate TTB officer may require a full and accurate statement of the contents of the container.
</P>
<P>(b) A formula may be filed electronically by using Formulas Online, or it may be submitted on paper on TTB Form 5100.51. See § 5.11 for more information on forms and Formulas Online.


</P>
</DIV8>


<DIV8 N="§ 5.29" NODE="27:1.0.1.1.3.2.25.8" TYPE="SECTION">
<HEAD>§ 5.29   Personalized labels.</HEAD>
<P>(a) <I>General.</I> Applicants for label approval may obtain permission from TTB to make certain changes in order to personalize labels without having to resubmit labels for TTB approval. A personalized label is an alcohol beverage label that meets the minimum mandatory label requirements and is customized for customers. Personalized labels may contain a personal message, picture, or other artwork that is specific to the consumer who is purchasing the product. For example, a distiller may offer individual or corporate customers labels that commemorate an event such as a wedding or grand opening.
</P>
<P>(b) <I>Application.</I> Any person who intends to offer personalized labels must submit a template for the personalized label as part of the application for label approval required under §§ 5.21 or 5.24, and must note on the application a description of the specific personalized information that may change.
</P>
<P>(c) <I>Approval of personalized label.</I> If the application complies with the regulations, TTB will issue a certificate of label approval (COLA) with a qualification allowing the personalization of labels. The qualification will allow the certificate holder to add or change items on the personalized label such as salutations, names, graphics, artwork, congratulatory dates and names, or event dates without applying for a new COLA. All of these items on personalized labels must comply with the regulations of this part.
</P>
<P>(d) <I>Changes not allowed to personalized labels.</I> Approval of an application to personalize labels does not authorize the addition of any information that discusses either the alcohol beverage or characteristics of the alcohol beverage or that is inconsistent with or in violation of the provisions of this part or any other applicable provision of law or regulations.


</P>
</DIV8>


<DIV8 N="§ 5.30" NODE="27:1.0.1.1.3.2.25.9" TYPE="SECTION">
<HEAD>§ 5.30   Certificates of age and origin for imported spirits.</HEAD>
<P>(a) <I>Scotch, Irish, and Canadian whiskies.</I> (1) Scotch, Irish, and Canadian whiskies, imported in containers, are not eligible for release from customs custody for consumption, and no person may remove such whiskies from customs custody for consumption, unless that person has obtained and is in possession of an invoice accompanied by a certificate of origin issued by an official duly authorized by the appropriate foreign government, certifying:
</P>
<P>(i) That the particular distilled spirits are Scotch, Irish, or Canadian whisky, as the case may be; and
</P>
<P>(ii) That the distilled spirits have been manufactured in compliance with the laws of the respective foreign governments regulating the manufacture of whisky for home consumption.
</P>
<P>(2) In addition, an official duly authorized by the appropriate foreign government must certify to the age of the youngest distilled spirits in the container. The age certified shall be the period during which, after distillation and before bottling, the distilled spirits have been stored in oak containers.
</P>
<P>(b) <I>Brandy and Cognac.</I> Brandy (other than fruit brandies of a type not customarily stored in oak containers) or Cognac, imported in containers, is not eligible for release from customs custody for consumption, and no person may remove such brandy or Cognac from customs custody for consumption, unless the person so removing the brandy or Cognac possesses a certificate issued by an official duly authorized by the appropriate foreign country certifying that the age of the youngest brandy or Cognac in the container is not less than 2 years, or if age is stated on the label that none of the distilled spirits are of an age less than that stated. The age certified shall be the period during which, after distillation and before bottling, the distilled spirits have been stored in oak containers. If the label of any fruit brandy, not stored in oak containers, bears any statement of storage in another type of container, the brandy is not eligible for release from customs custody for consumption, and no person may remove such brandy from customs custody for consumption, unless the person so removing the brandy possesses a certificate issued by an official duly authorized by the appropriate foreign government certifying to such storage. Cognac, imported in bottles, is not eligible for release from customs custody for consumption, and no person may remove such Cognac from customs custody for consumption, unless the person so removing the Cognac possesses a certificate issued by an official duly authorized by the French Government, certifying that the product is grape brandy distilled in the Cognac region of France and entitled to be designated as “Cognac” by the laws and regulations of the French Government.
</P>
<P>(c) <I>Rum.</I> Rum imported in containers that contain any statement of age is not eligible to be released from customs custody for consumption, and no person may remove such rum from customs custody for consumption, unless the person so removing the rum possesses a certificate issued by an official duly authorized by the appropriate foreign country, certifying to the age of the youngest rum in the container. The age certified shall be the period during which, after distillation and before bottling, the distilled spirits have been stored in oak containers.
</P>
<P>(d) <I>Tequila.</I> (1) Tequila imported in containers is not eligible for release from customs custody for consumption, and no person may remove such Tequila from customs custody for consumption, unless the person removing such Tequila possesses a Certificate of Tequila Export issued by an official duly authorized by the Mexican Government or a conformity assessment body stating that the product is entitled to be designated as Tequila under the applicable laws and regulations of the Mexican Government.
</P>
<P>(2) If the label of any Tequila imported in containers contains any statement of age, the Tequila is not eligible for release from customs custody for consumption, and no person may remove such Tequila from customs custody for consumption, unless the person removing the Tequila possesses a Certificate of Tequila Export issued by an official duly authorized by the Mexican Government or a conformity assessment body as to the age of the youngest Tequila in the container. The age certified shall be the period during which the Tequila has been stored in oak containers after distillation and before bottling.
</P>
<P>(e) <I>Other whiskies.</I> Whisky, as defined in § 5.143(c)(2) through (7) and (10) through (14), imported in bottles, is not eligible for release from customs custody for consumption, and no person shall remove such whiskies from customs custody for consumption, unless that person has obtained and is in possession of a certificate issued by an official duly authorized by the appropriate foreign government certifying:
</P>
<P>(1) In the case of whisky (regardless of whether it is mixed or blended) that contains no neutral spirits:
</P>
<P>(i) The type of the whisky as defined in § 5.143;
</P>
<P>(ii) The American proof at which the whisky was distilled;
</P>
<P>(iii) That no neutral spirits (or other whisky in the case of straight whisky) have been added or otherwise included in the whisky;
</P>
<P>(iv) The age of the whisky; and
</P>
<P>(v) The type of oak barrel in which the whisky was aged and whether the barrel was new or reused, charred or uncharred; and
</P>
<P>(2) In the case of whisky containing neutral spirits:
</P>
<P>(i) The type of the whisky as defined in § 5.143;
</P>
<P>(ii) The percentage of straight whisky used in the blend, if any;
</P>
<P>(iii) The American proof at which any straight whisky in the blend was distilled;
</P>
<P>(iv) The percentage of whisky other than straight whisky in the blend, if any;
</P>
<P>(v) The percentage of neutral spirits in the blend and the name of the commodity from which the neutral spirits were distilled;
</P>
<P>(vi) The age of any straight whisky and the age of any other whisky in the blend; and
</P>
<P>(vii) The type of oak barrel in which the age of each whisky in the blend was attained and whether the barrel was new or reused and charred or uncharred.
</P>
<P>(f) <I>Miscellaneous.</I> Distilled spirits (other than Scotch, Irish, and Canadian whiskies, and Cognac) imported in containers are not eligible for release from customs custody for consumption, and no person shall remove such spirits from customs custody for consumption, unless that person has obtained and is in possession of an invoice accompanied by a certificate of origin issued by an official duly authorized by the appropriate foreign government, if the issuance of such certificates with respect to such distilled spirits is required by the foreign government concerned, certifying as to the identity of the distilled spirits and that the distilled spirits have been manufactured in compliance with the laws of the respective foreign government regulating the manufacture of such distilled spirits for home consumption.
</P>
<P>(g) <I>Retention of certificates—distilled spirits imported in containers.</I> The importer of distilled spirits imported in containers must retain for 5 years following the removal of the bottled distilled spirits from customs custody copies of the certificates (and accompanying invoices, if applicable) required by paragraphs (a) through (f) of this section, and must provide them upon request of the appropriate TTB officer or a customs officer.
</P>
<P>(h) <I>Distilled spirits imported in bulk for bottling in the United States.</I> Distilled spirits that would be required under paragraphs (a) through (f) of this section to be covered by a certificate of age and/or a certificate of origin and that are imported in bulk for bottling in the United States may be removed from the premises where bottled only if the bottler possesses a certificate of age and/or a certificate of origin, issued by the appropriate entity as set forth in paragraphs (a) through (f) of this section, applicable to the spirits that provides the same information as a certificate required under paragraphs (a) through (f) of this section, would provide for like spirits imported in bottles.
</P>
<P>(i) <I>Retention of distilled spirits certificates—distilled spirits in bulk.</I> The bottler of distilled spirits imported in bulk must retain, for 5 years following the removal of such distilled spirits from the premises where bottled, copies of the certificates required by paragraphs (a) through (f) of this section, and must provide them upon request of the appropriate TTB officer.


</P>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.3.3" TYPE="SUBPART">
<HEAD>Subpart C—Alteration of Labels, Relabeling, and Adding Information to Containers</HEAD>


<DIV8 N="§ 5.41" NODE="27:1.0.1.1.3.3.25.1" TYPE="SECTION">
<HEAD>§ 5.41   Alteration of labels.</HEAD>
<P>(a) <I>Prohibition.</I> It is unlawful for any person to alter, mutilate, destroy, obliterate or remove any mark, brand, or label on distilled spirits in containers held for sale in interstate or foreign commerce, or held for sale after shipment in interstate or foreign commerce, except as authorized by §§ 5.42, 5.43, or 5.44, or as otherwise authorized by Federal law.
</P>
<P>(b) <I>Authorized relabeling.</I> For purposes of the relabeling activities authorized by this subpart, the term “relabel” includes the alteration, mutilation, destruction, obliteration, or removal of any existing mark, brand, or label on the container, as well as the addition of a new label (such as a sticker that adds information about the product or information engraved on the container) to the container, and the replacement of a label with a new label bearing identical information.
</P>
<P>(c) <I>Obligation to comply with other requirements.</I> Authorization to relabel under this subpart:
</P>
<P>(1) In no way authorizes the placement of labels on containers that do not accurately reflect the brand, bottler, identity, or other characteristics of the product;
</P>
<P>(2) Does not relieve the person conducting the relabeling operations from any obligation to comply with the regulations in this part and with State or local law; and,
</P>
<P>(3) Does not relieve the person conducting the relabeling operations from any obligation to obtain permission from the owner of the brand where otherwise required.


</P>
</DIV8>


<DIV8 N="§ 5.42" NODE="27:1.0.1.1.3.3.25.2" TYPE="SECTION">
<HEAD>§ 5.42   Authorized relabeling activities by distillers and importers.</HEAD>
<P>(a) <I>Relabeling at distilled spirits plant premises.</I> A proprietor of distilled spirits plant premises may relabel domestically bottled distilled spirits prior to removal from, and after return to bond at, the distilled spirits plant premises, with labels covered by a certificate of label approval (COLA), without obtaining separate permission from TTB for the relabeling activity, provided that the proprietor is the certificate holder (and bottler).
</P>
<P>(b) <I>Relabeling after removal from distilled spirits plant premises.</I> A proprietor of distilled spirits plant premises may relabel domestically bottled distilled spirits (or direct the relabeling of such spirits by an authorized agent) after removal from distilled spirits plant premises with labels covered by a COLA, without obtaining separate permission from TTB for the relabeling activity, provided that the proprietor is the certificate holder (and bottler).
</P>
<P>(c) <I>Relabeling in customs custody.</I> Under the supervision of U.S. customs officers, imported distilled spirits in containers in customs custody may be relabeled without obtaining separate permission from TTB for the relabeling activity. Such containers must bear labels covered by a COLA upon their removal from customs custody for consumption. See § 5.24(b).
</P>
<P>(d) <I>Relabeling after removal from customs custody.</I> The importer of distilled spirits in containers may relabel imported distilled spirits (or direct the relabeling of such spirits by an authorized agent) after removal from customs custody without obtaining separate permission from TTB for the relabeling activity, as long as the labels are covered by a COLA.


</P>
</DIV8>


<DIV8 N="§ 5.43" NODE="27:1.0.1.1.3.3.25.3" TYPE="SECTION">
<HEAD>§ 5.43   Relabeling activities that require separate written authorization from TTB.</HEAD>
<P>(a) <I>General.</I> Any permittee holding distilled spirits for sale who needs to relabel the containers but is not the original bottler may apply for written permission for the relabeling of distilled spirits containers. The appropriate TTB officer may permit relabeling of distilled spirits in containers if the facts show that the relabeling is for the purpose of compliance with the requirements of this part or State law, or for the purpose of replacing damaged labels.
</P>
<P>(b) <I>Application.</I> The written application must include:
</P>
<P>(1) Copies of the original and proposed new labels;
</P>
<P>(2) The circumstances of the request, including the reason for relabeling;
</P>
<P>(3) The number of containers to be relabeled;
</P>
<P>(4) The location where the relabeling will take place; and
</P>
<P>(5) The name and address of the person who will be conducting the relabeling operations.


</P>
</DIV8>


<DIV8 N="§ 5.44" NODE="27:1.0.1.1.3.3.25.4" TYPE="SECTION">
<HEAD>§ 5.44   Adding a label or other information to a container that identifies the wholesaler, retailer, or consumer.</HEAD>
<P>Any label or other information that identifies the wholesaler, retailer, or consumer of the distilled spirits may be added to containers (by the addition of stickers, engraving, stenciling, etc.) without prior approval from TTB and without being covered by a certificate of label approval or certificate of exemption from label approval. Such information may be added before or after the containers have been removed from distilled spirits plant premises or released from customs custody. The information added:
</P>
<P>(a) May not violate the provisions of subpart F, G, or H of this part;
</P>
<P>(b) May not contain any reference to the characteristics of the product; and
</P>
<P>(c) May not be added to the container in such a way that it obscures any other labels on the container.


</P>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.3.4" TYPE="SUBPART">
<HEAD>Subpart D—Label Standards</HEAD>


<DIV8 N="§ 5.51" NODE="27:1.0.1.1.3.4.25.1" TYPE="SECTION">
<HEAD>§ 5.51   Requirement for firmly affixed labels.</HEAD>
<P>Any label that is not an integral part of the container must be affixed to the container in such a way that it cannot be removed without thorough application of water or other solvents.


</P>
</DIV8>


<DIV8 N="§ 5.52" NODE="27:1.0.1.1.3.4.25.2" TYPE="SECTION">
<HEAD>§ 5.52   Legibility and other requirements for mandatory information on labels.</HEAD>
<P>(a) <I>Readily legible.</I> Mandatory information on labels must be readily legible to potential consumers under ordinary conditions.
</P>
<P>(b) <I>Separate and apart.</I> Subject to the exceptions below, mandatory information on labels, except brand names, must be separate and apart from any additional information.
</P>
<P>(1) This does not preclude the addition of brief optional phrases of additional information as part of the class or type designation (such as, “premium vodka” or “delicious Tequila”), the name and address statement (such as, “Proudly distilled and bottled by ABC Distilling Company, Atlanta, GA, for over 30 years”) or other information required by § 5.63(a) and (b). The statements required by § 5.63(c) may not include additional information.
</P>
<P>(2) Mandatory information (other than an aspartame declaration required by § 5.63(c)(8)) may be contained among other descriptive or explanatory information if the script, type, or printing of the mandatory information is substantially more conspicuous than that of the descriptive or explanatory information.
</P>
<P>(c) <I>Contrasting background.</I> Mandatory information must appear in a color that contrasts with the background on which it appears, except that if the net contents are blown into a glass container, they need not be contrasting. The color of the container and of the distilled spirits must be taken into account if the label is transparent or if mandatory label information is etched, engraved, sandblasted, or otherwise carved into the surface of the container or is branded, stenciled, painted, printed, or otherwise directly applied on to the surface of the container. Examples of acceptable contrasts are:
</P>
<P>(1) Black lettering appearing on a white or cream background; or
</P>
<P>(2) White or cream lettering appearing on a black background.
</P>
<P>(d) <I>Capitalization.</I> Except for the aspartame statement when required by § 5.63(c)(8), which must appear in all capital letters, mandatory information prescribed by this part may appear in all capital letters, in all lower case letters, or in mixed-case using both capital and lower-case letters.


</P>
</DIV8>


<DIV8 N="§ 5.53" NODE="27:1.0.1.1.3.4.25.3" TYPE="SECTION">
<HEAD>§ 5.53   Minimum type size of mandatory information.</HEAD>
<P>All capital and lowercase letters in statements of mandatory information on labels must meet the following type size requirements.
</P>
<P>(a) <I>Containers of more than 200 milliliters.</I> All mandatory information must be in script, type, or printing that is at least two millimeters in height.
</P>
<P>(b) <I>Containers of 200 milliliters or less.</I> All mandatory information must be in script, type, or printing that is at least one millimeter in height.


</P>
</DIV8>


<DIV8 N="§ 5.54" NODE="27:1.0.1.1.3.4.25.4" TYPE="SECTION">
<HEAD>§ 5.54   Visibility of mandatory information.</HEAD>
<P>Mandatory information on a label must be readily visible and may not be covered or obscured in whole or in part. See § 5.62 for rules regarding packaging of containers (including cartons, coverings, and cases). See subpart N of this part for regulations pertaining to advertising materials.


</P>
</DIV8>


<DIV8 N="§ 5.55" NODE="27:1.0.1.1.3.4.25.5" TYPE="SECTION">
<HEAD>§ 5.55   Language requirements.</HEAD>
<P>(a) <I>General.</I> Mandatory information must appear in the English language, with the exception of the brand name and except as provided in paragraph (c) of this section.
</P>
<P>(b) <I>Foreign languages.</I> Additional statements in a foreign language, including translations of mandatory information that appears elsewhere in English on the label, are allowed on labels and containers as long as they do not in any way conflict with, or contradict, the requirements of this part.
</P>
<P>(c) <I>Distilled spirits for consumption in the Commonwealth of Puerto Rico.</I> Mandatory information may be stated solely in the Spanish language on labels of distilled spirits bottled for consumption within the Commonwealth of Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 5.56" NODE="27:1.0.1.1.3.4.25.6" TYPE="SECTION">
<HEAD>§ 5.56   Additional information.</HEAD>
<P>Information (other than mandatory information) that is truthful, accurate, and specific, and that does not violate subparts F, G, or H of this part, may appear on labels. Such additional information may not conflict with, modify, qualify or restrict mandatory information in any manner.


</P>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.3.5" TYPE="SUBPART">
<HEAD>Subpart E—Mandatory Label Information</HEAD>


<DIV8 N="§ 5.61" NODE="27:1.0.1.1.3.5.25.1" TYPE="SECTION">
<HEAD>§ 5.61   What constitutes a label for purposes of mandatory information.</HEAD>
<P>(a) <I>Label.</I> Certain information, as outlined in § 5.63, must appear on a label. When used in this part for purposes of determining where mandatory information must appear, the term “label” includes:
</P>
<P>(1) Material affixed to the container, whether made of paper, plastic, metal, or other matter;
</P>
<P>(2) For purposes of the net content statement only, information blown, embossed, or molded into the container as part of the process of manufacturing the container;
</P>
<P>(3) Information etched, engraved, sandblasted, or otherwise carved into the surface of the container; and
</P>
<P>(4) Information branded, stenciled, painted, printed, or otherwise directly applied on to the surface of the container.
</P>
<P>(b) <I>Information appearing elsewhere on the container.</I> Information appearing on the following parts of the container is subject to all of the restrictions and prohibitions set forth in subparts F, G and H of this part, but will not satisfy any requirements in this part for mandatory information that must appear on labels:
</P>
<P>(1) Material affixed to, or information appearing on, the bottom surface of the container;
</P>
<P>(2) Caps, corks or other closures unless authorized to bear mandatory information by the appropriate TTB officer; and
</P>
<P>(3) Foil or heat shrink bottle capsules.
</P>
<P>(c) <I>Materials not firmly affixed to the container.</I> Any materials that accompany the container to the consumer but are not firmly affixed to the container, including booklets, leaflets, and hang tags, are not “labels” for purposes of this part. Such materials are instead subject to the advertising regulations in subpart N of this part.


</P>
</DIV8>


<DIV8 N="§ 5.62" NODE="27:1.0.1.1.3.5.25.2" TYPE="SECTION">
<HEAD>§ 5.62   Packaging (cartons, coverings, and cases).</HEAD>
<P>(a) <I>General.</I> An individual covering, carton, or other container of the bottle used for sale at retail (other than a shipping container), may not contain any statement, design, device, or graphic, pictorial, or emblematic representation that is prohibited on labels by regulations in subpart F, G, or H of this part.
</P>
<P>(b) <I>Sealed opaque cartons.</I> If containers are enclosed in sealed opaque coverings, cartons, or other containers used for sale at retail (other than shipping containers), such coverings, cartons, or other containers must bear all mandatory label information.
</P>
<P>(c) <I>Other cartons.</I> (1) If an individual covering, carton, or other container of the bottle used for sale at retail (other than a shipping container) is so designed that the bottle is readily removable, it may display any information which is not in conflict with the label on the bottle contained therein.
</P>
<P>(2) Cartons displaying brand names and/or designations must display such names and designations in their entirety—brand names required to be modified, <I>e.g.,</I> by “Brand” or “Product of U.S.A.”, must also display such modification.
</P>
<P>(3) Specialty products for which a truthful and adequate statement of composition is required must display such statement.
</P>
<P>(d) <I>Labeling of containers within the packaging.</I> The container within the packaging is subject to all labeling requirements of this part, including mandatory labeling information requirements, regardless of whether the packaging bears such information.


</P>
</DIV8>


<DIV8 N="§ 5.63" NODE="27:1.0.1.1.3.5.25.3" TYPE="SECTION">
<HEAD>§ 5.63   Mandatory label information.</HEAD>
<P>(a) <I>Mandatory information required to appear within the same field of vision.</I> Distilled spirits containers must bear a label or labels (as defined in § 5.61) containing the following information within the same field of vision (which means a single side of a container (for a cylindrical container, a side is 40 percent of the circumference) where all of the pieces of information can be viewed simultaneously without the need to turn the container):
</P>
<P>(1) Brand name, in accordance with § 5.64;
</P>
<P>(2) Class, type, or other designation, in accordance with subpart I of this part; and
</P>
<P>(3) Alcohol content, in accordance with § 5.65.
</P>
<P>(b) <I>Other mandatory information.</I> Distilled spirits containers must bear a label or labels (as defined in § 5.61) anywhere on the container bearing the following information:
</P>
<P>(1) Name and address of the bottler or distiller, in accordance with § 5.66, or the importer, in accordance with § 5.67 or § 5.68, as applicable; and
</P>
<P>(2) Net contents (which may be blown, embossed, or molded into the container as part of the process of manufacturing the container), in accordance with § 5.70.
</P>
<P>(c) <I>Disclosure of certain ingredients, processes and other information.</I> The following ingredients, processes, and other information must be disclosed on a label, without the inclusion of any additional information as part of the statement, as follows:
</P>
<P>(1) <I>Neutral spirits.</I> The percentage of neutral spirits and the name of the commodity from which the neutral spirits were distilled, or in the case of continuously distilled neutral spirits or gin, the name of the commodity only, in accordance with § 5.71;
</P>
<P>(2) <I>Coloring or treatment with wood.</I> Coloring or treatment with wood, in accordance with §§ 5.72 and 5.73;
</P>
<P>(3) <I>Age.</I> A statement of age or age and percentage of type, when required or used, in accordance with § 5.74;
</P>
<P>(4) <I>State of distillation.</I> State of distillation of any type of whisky defined in § 5.143(c)(2) through (c)(7), which is distilled in the United States, in accordance with § 5.66(f);
</P>
<P>(5) <I>FD&amp;C Yellow No. 5.</I> If a distilled spirit contains the coloring material FD&amp;C Yellow No. 5, the label must include a statement to that effect, such as “FD&amp;C Yellow No. 5” or “Contains FD&amp;C Yellow No. 5”;
</P>
<P>(6) <I>Cochineal extract or carmine.</I> If a distilled spirit contains the color additive cochineal extract or the color additive carmine, the label must include a statement to that effect, using the respective common or usual name (such as “contains cochineal extract” or “contains carmine”). This requirement applies to labels when either of the coloring materials was used in a distilled spirit that is removed from bottling premises or from customs custody on or after April 16, 2013;
</P>
<P>(7) <I>Sulfites.</I> If a distilled spirit contains 10 or more parts per million of sulfur dioxide or other sulfiting agent measured as total sulfur dioxide, the label must include a statement to that effect. Examples of acceptable statements are “Contains sulfites” or “Contains (a) sulfiting agent(s)” or a statement identifying the specific sulfiting agent. The alternative terms “sulphites” or “sulphiting” may be used; and
</P>
<P>(8) <I>Aspartame.</I> If the distilled spirit contains aspartame, the label must include the following statement, in capital letters, separate and apart from all other information: “PHENYLKETONURICS: CONTAINS PHENYLALANINE.”
</P>
<P>(d) <I>Distinctive liquor bottles.</I> See § 5.205(b)(2) for exemption from placement requirements for certain mandatory information for distinctive liquor bottles.


</P>
</DIV8>


<DIV8 N="§ 5.64" NODE="27:1.0.1.1.3.5.25.4" TYPE="SECTION">
<HEAD>§ 5.64   Brand name.</HEAD>
<P>(a) <I>Requirement.</I> The distilled spirits label must include a brand name. If the distilled spirits are not sold under a brand name, then the name of the bottler, distiller or importer, as applicable, appearing in the name and address statement is treated as the brand name.
</P>
<P>(b) <I>Misleading brand names.</I> Labels may not include any misleading brand names. A brand name is misleading if it creates (by itself or in association with other printed or graphic matter) any erroneous impression or inference as to the age, origin, identity, or other characteristics of the distilled spirits. A brand name that would otherwise be misleading may be qualified with the word “brand” or with some other qualification, if the appropriate TTB officer determines that the qualification dispels any misleading impression that might otherwise be created.


</P>
</DIV8>


<DIV8 N="§ 5.65" NODE="27:1.0.1.1.3.5.25.5" TYPE="SECTION">
<HEAD>§ 5.65   Alcohol content.</HEAD>
<P>(a) <I>General.</I> The alcohol content for distilled spirits must be stated on the label as a percentage of alcohol by volume. Products that contain a significant amount of material, such as solid fruit, that may absorb spirits after bottling must state the alcohol content at the time of bottling as follows: “Bottled at ____ percent alcohol by volume.”
</P>
<P>(b) <I>How the alcohol content must be expressed.</I> The following rules apply to statements of alcohol content.
</P>
<P>(1) A statement of alcohol content must be expressed as a percentage of alcohol by volume.
</P>
<P>(i) In addition, the alcohol content in degrees of proof may be stated on a label as long as it appears in the same field of vision as the mandatory statement of alcohol content as a percentage of alcohol by volume. Additional statements of proof may appear on the label without being in the same field of vision as the mandatory alcohol by volume statement.
</P>
<P>(ii) Other truthful, accurate, and specific factual representations of alcohol content, such as alcohol by weight, may be made, as long as they appear together with, and as part of, the statement of alcohol content as a percentage of alcohol by volume.
</P>
<P>(2)(i) The alcohol content statement must be expressed in one of the following formats:
</P>
<P>(A) “Alcohol ____ percent by volume”;
</P>
<P>(B) “____ percent alcohol by volume”; or
</P>
<P>(C) “Alcohol by volume ____ percent.”
</P>
<P>(ii) Any of the words or symbols may be enclosed in parentheses and authorized abbreviations may be used with or without a period. The alcohol content statement does not have to appear with quotation marks.
</P>
<P>(3) The statements listed in paragraph (b)(2)(i) of this section must appear as shown, except that the following abbreviations may be used: Alcohol may be abbreviated as “alc”; percent may be represented by the percent symbol “%”; alcohol and volume may be separated by a slash “/” in lieu of the word “by”; and volume may be abbreviated as “vol”.
</P>
<P>(4) The following are examples of alcohol content statements that comply with the requirements of this part:
</P>
<P>(i) “40% alc/vol”;
</P>
<P>(ii) “Alc. 40 percent by vol.”;
</P>
<P>(iii) “Alc 40% by vol”; and
</P>
<P>(iv) “40% Alcohol by Volume.”
</P>
<P>(c) <I>Tolerances.</I> A tolerance of plus or minus 0.3 percentage points is allowed for actual alcohol content that is above or below the labeled alcohol content.


</P>
</DIV8>


<DIV8 N="§ 5.66" NODE="27:1.0.1.1.3.5.25.6" TYPE="SECTION">
<HEAD>§ 5.66   Name and address for domestically bottled distilled spirits that were wholly made in the United States.</HEAD>
<P>(a) <I>General.</I> Domestically bottled distilled spirits that were wholly made in the United States and contain no imported distilled spirits must be labeled in accordance with this section. (See §§ 5.67 and 5.68 for name and address requirements applicable to distilled spirits that are not wholly made in the United States.) For purposes of this section, a “processor” who solely bottles the labeled distilled spirits will be considered the “bottler.”
</P>
<P>(b) <I>Form of statement.</I> The bottler, distiller, or processor of the distilled spirits must be identified by a phrase describing the function performed by that person. If that person performs more than one function, the label may (but is not required to) so indicate.
</P>
<P>(1) If the name of the bottler appears on the label, it must be preceded by a phrase such as “bottled by,” “canned by,” “packed by,” or “filled by,” followed by the name and address of the bottler.
</P>
<P>(2) If the name of the processor appears on the label, it must be preceded by a phrase such as “blended by,” “made by,” “prepared by,” “produced by,” or “manufactured by,” as appropriate, followed by the name and address of the processor. When applied to distilled spirits, the term “produced by” indicates a processing operation (formerly known as rectification) that involves a change in the class or type of the product through the addition of flavors or some other processing activity.
</P>
<P>(3) If the name of the distiller appears on the label, it must be preceded by a phrase such as “distilled by,” followed by the name and address of the distiller. If the distilled spirits were bottled for the distiller thereof, the name and address of the distiller may be preceded by a phrase such as “distilled by and bottled for,” or “bottled for.”
</P>
<P>(c) <I>Listing of more than one function.</I> If different functions are performed by more than one person, statements on the label may not create the misleading impression that the different functions were performed by the same person.
</P>
<P>(d) <I>Form of address</I>—(1) <I>General.</I> The address consists of the city and State where the operation occurred, or the city and State of the principal place of business of the person performing the operation. This information must be consistent with the information on the basic permit. Addresses may, but are not required to, include additional information such as street names, counties, zip codes, phone numbers, and website addresses. The postal abbreviation of the State name may be used; for example, California may be abbreviated as CA.
</P>
<P>(2) <I>More than one address.</I> If the bottler, distiller, or processor listed on the name and address statement is the actual operator of more than one distilled spirits plant engaged in bottling, distilling, or processing operations, as applicable, the label may state, immediately following the name of the permittee, the addresses of those other plants, in addition to the address of the plant at which the distilled spirits were bottled. In this situation, the address where the operation occurred must be indicated on the label or on the container by printing, coding, or other markings.
</P>
<P>(3) <I>Principal place of business.</I> The label may provide the address of the bottler's, distiller's, or processor's principal place of business, in lieu of the place where the bottling, distilling, or other operation occurred, provided that the address where the operation occurred is indicated on the label or on the container by printing, coding, or other markings.
</P>
<P>(4) <I>Distilled spirits bottled for another person.</I> (i) If distilled spirits are bottled for another person, other than the actual distiller thereof, the label may state, in addition to (but not in place of) the name and address of the bottler, the name and address of such other person, immediately preceded by the words “bottled for” or another similar appropriate phrase. Such statements must clearly indicate the relationship between the two persons (for example, contract bottling).
</P>
<P>(ii) If the same brand of distilled spirits is bottled by two distillers that are not under the same ownership, the label for each distiller may set forth both locations where bottling takes place, as long as the label uses the actual location (and not the principal place of business) and as long as the nature of the arrangement is clearly set forth.
</P>
<P>(5) <I>Additional addresses.</I> No additional places or addresses may be stated for the same person unless:
</P>
<P>(i) That person is actively engaged in the conduct of an additional bona fide and actual alcohol beverage business at such additional place or address, and
</P>
<P>(ii) The label also contains in direct conjunction therewith, appropriate descriptive material indicating the function occurring at such additional place or address in connection with the particular product (such as “distilled by.”)
</P>
<P>(e) <I>Special rule for straight whiskies.</I> If “straight whiskies” (see § 5.143) of the same type are distilled in the same State by two or more different distillers and are combined (either at the time of bottling or at a warehouseman's bonded premises for further storage) and subsequently bottled and labeled as “straight whisky,” that “straight whisky” must bear a label that contains name and address information of the bottler. If that combined “straight whisky” is bottled by or for the distillers, in lieu of the name and address of the bottler, the label may contain the words “distilled by,” followed immediately by the names (or trade names) and addresses of the different distillers who distilled a portion of the “straight whisky” and the percentage of “straight whisky” distilled by each distiller, with a tolerance of plus or minus 2 percent. If “straight whisky” consists of a mixture of “straight whiskies” of the same type from two or more different distilleries of the same proprietor located within the same State, and if that “straight whisky” is bottled by or for that proprietor, in lieu of the name and address of the bottler, the “straight whisky” may bear a label containing the words “distilled by” followed by the name (or trade name) of the proprietor and the addresses of the different distilleries that distilled a portion of the “straight whisky.”
</P>
<P>(f) <I>State of distillation for whisky.</I> (1) The State of distillation, which is the State in which original distillation takes place, must appear on the label of any type of whisky defined in § 5.143(c)(2) through (7), (15), and (16), which is distilled in the United States. The State of distillation may appear on any label and must be shown in at least one of the following ways:
</P>
<P>(i) By including a “distilled by” (or “distilled and bottled by” or any other phrase including the word “distilled”) statement as part of the mandatory name and address statement, followed by a single location;


</P>
<P>(ii) If the address shown in the “bottled by” statement includes the State in which distillation occurred, by including a “bottled by” statement as part of the mandatory name and address statement, followed by a single location;
</P>
<P>(iii) By including the name of the State in which original distillation occurred immediately adjacent to the class or type designation (such as “Kentucky bourbon whisky”), as long as the product was both distilled and aged in that State in conformance with the requirements of § 5.143(b); or
</P>
<P>(iv) By including a separate statement, such as “Distilled in [name of State].”
</P>
<P>(2) The appropriate TTB officer may require that the State of distillation or other information appear on a label of any whisky subject to the requirements of paragraph (f)(1) of this section (and may prescribe placement requirements for such information), even if that State appears in the name and address statement, if such additional information is necessary to negate any misleading or deceptive impression that might otherwise be created as regards the actual State of distillation.
</P>
<P>(3) In the case of “light whisky,” the State name “Kentucky” or “Tennessee” may not appear on any label, except as a part of a name and address as specified in paragraph (a)(1), (2), or (4) of this section.
</P>
<P>(g) <I>Trade or operating names.</I> The name of the person appearing on the label may be the trade name or the operating name, as long as it is identical to a trade or operating name appearing on the basic permit. In the case of a distillation statement for spirits bottled in bond, the name or trade name under which the spirits were distilled must be shown.


</P>
<CITA TYPE="N">[T.D. TTB-176, 87 7579, Feb. 9, 2022, as amended at T.D. TTB-199, 89 FR 102735, Dec. 18, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 5.67" NODE="27:1.0.1.1.3.5.25.7" TYPE="SECTION">
<HEAD>§ 5.67   Name and address for domestically bottled distilled spirits that were bottled after importation.</HEAD>
<P>(a) <I>General.</I> This section applies to distilled spirits that were bottled after importation. See § 5.68 for name and address requirements applicable to imported distilled spirits that were imported in a container. See 19 CFR parts 102 and 134 for U.S. Customs and Border Protection country of origin marking requirements.
</P>
<P>(b) <I>Distilled spirits bottled after importation in the United States.</I> Distilled spirits bottled, without further blending, making, preparing, producing, manufacturing, or distilling activities after importation, must bear one of the following name and address statements:
</P>
<P>(1) The name and address of the bottler, preceded by the words “bottled by,” “canned by,” “packed by,” or “filled by”;
</P>
<P>(2) If the distilled spirits were bottled for the person responsible for the importation, the words “imported by and bottled (canned, packed, or filled) in the United States for” (or a similar appropriate phrase) followed by the name and address of the principal place of business in the United States of the person responsible for the importation;
</P>
<P>(3) If the distilled spirits were bottled by the person responsible for the importation, the words “imported by and bottled (canned, packed, or filled) in the United States by” (or a similar appropriate phrase) followed by the name and address of the principal place of business in the United States of the person responsible for the importation.
</P>
<P>(c) <I>Distilled spirits that were subject to blending or other production activities after importation.</I> Distilled spirits that, after importation in bulk, were blended, made, prepared, produced, manufactured or further distilled, may not bear an “imported by” statement on the label, but must instead be labeled in accordance with the rules set forth in § 5.66 for mandatory and optional labeling statements.
</P>
<P>(d) <I>Optional statements.</I> In addition to the statements required by paragraph (a)(1) of this section, the label may also state the name and address of the principal place of business of the foreign producer.
</P>
<P>(e) <I>Form of address.</I> (1) The address consists of the city and State where the operation occurred, or the city and State of the principal place of business of the person performing the operation. This information must be consistent with the information on the basic permit. Addresses may, but are not required to, include additional information such as street names, counties, zip codes, phone numbers, and website addresses.
</P>
<P>(2) If the bottler or processor listed on the name and address statement is the actual operator of more than one distilled spirits plant engaged in bottling, distilling, or processing operations, as applicable, the label may state, immediately following the name of the bottler, the addresses of those other plants, in addition to the address of the plant at which the distilled spirits were bottled. In this situation, the address where the operation occurred must be indicated on the label or on the container by printing, coding, or other markings.
</P>
<P>(3) The label may provide the address of the bottler's or processor's principal place of business, in lieu of the place where the bottling, distilling, or other operation occurred, provided that the address where the operation occurred is indicated on the label or on the container by printing, coding, or other markings.
</P>
<P>(f) <I>Trade or operating names.</I> A trade name may be used if the trade name is listed on the basic permit or other qualifying documentation.


</P>
</DIV8>


<DIV8 N="§ 5.68" NODE="27:1.0.1.1.3.5.25.8" TYPE="SECTION">
<HEAD>§ 5.68   Name and address for distilled spirits that were imported in a container.</HEAD>
<P>(a) <I>General.</I> This section applies to distilled spirits that were imported in a container, as defined in § 5.1. See § 5.67 for name and address requirements applicable to distilled spirits that were domestically bottled after importation. See 19 CFR parts 102 and 134 for U.S. Customs and Border Protection country of origin marking requirements.
</P>
<P>(b) <I>Mandatory labeling statement.</I> Distilled spirits imported in containers, as defined in § 5.1, must bear a label stating the words “imported by” or a similar appropriate phrase, followed by the name and address of the importer.
</P>
<P>(1) For purposes of this section, the importer is the holder of the importer's basic permit who either makes the original customs entry or is the person for whom such entry is made, or the holder of the importer's basic permit who is the agent, distributor, or franchise holder for the particular brand of imported alcohol beverages and who places the order abroad.
</P>
<P>(2) The address of the importer must be stated as the city and State of the principal place of business and must be consistent with the address reflected on the importer's basic permit. Addresses may, but are not required to, include additional information such as street names, counties, zip codes, phone numbers, and website addresses. The postal abbreviation of the State name may be used; for example, California may be abbreviated as CA.
</P>
<P>(c) <I>Optional statements.</I> In addition to the statements required by paragraph (b)(1) of this section, the label may also state the name and address of the principal place of business of the foreign producer.
</P>
<P>(d) <I>Form of address.</I> The “place” stated must be the city and State, shown on the basic permit or other qualifying document, of the premises at which the operations took place; and the place for each operation that is designated on the label must be shown.
</P>
<P>(e) <I>Trade or operating names.</I> A trade name may be used if the trade name is listed on the basic permit or other qualifying documentation.


</P>
</DIV8>


<DIV8 N="§ 5.69" NODE="27:1.0.1.1.3.5.25.9" TYPE="SECTION">
<HEAD>§ 5.69   Country of origin.</HEAD>
<P>For U.S. Customs and Border Protection (CBP) rules regarding country of origin marking requirements, see the CBP regulations at 19 CFR parts 102 and 134.


</P>
</DIV8>


<DIV8 N="§ 5.70" NODE="27:1.0.1.1.3.5.25.10" TYPE="SECTION">
<HEAD>§ 5.70   Net contents.</HEAD>
<P>The requirements of this section apply to the net contents statement required by § 5.63.
</P>
<P>(a) <I>General.</I> The volume of spirits in the container must appear on a label as a net contents statement. The word “liter” may be alternatively spelled “litre” or may be abbreviated as “L”. The word “milliliters” may be abbreviated as “ml.,” “mL.,” or “ML.” Net contents in equivalent U.S. customary units of measurement and in metric equivalents such as centiliters may appear on a label and, if used, must appear in the same field of vision as the metric net contents statement.
</P>
<P>(b) <I>Tolerances.</I> (1) The following tolerances are permissible for purposes of applying paragraph (a) of this section:
</P>
<P>(i) <I>Errors in measuring.</I> Discrepancies due to errors in measuring that occur in filling conducted in compliance with good commercial practice;
</P>
<P>(ii) <I>Differences in capacity.</I> Discrepancies due exclusively to differences in the capacity of containers, resulting solely from unavoidable difficulties in manufacturing the containers so as to be of uniform capacity, provided that the discrepancy does not result from a container design that prevents the manufacture of containers of an approximately uniform capacity; and
</P>
<P>(iii) <I>Differences in atmospheric conditions.</I> Discrepancies in measure due to differences in atmospheric conditions in various places, including discrepancies resulting from the ordinary and customary exposure of alcohol beverage products in containers to evaporation, provided that the discrepancy is determined to be reasonable on a case by case basis.
</P>
<P>(2) <I>Shortages and overages.</I> A contents shortage in certain of the containers in a shipment may not be counted against a contents overage in other containers in the same shipment for purposes of determining compliance with the requirements of this section.


</P>
</DIV8>


<DIV8 N="§ 5.71" NODE="27:1.0.1.1.3.5.25.11" TYPE="SECTION">
<HEAD>§ 5.71   Neutral spirits and name of commodity.</HEAD>
<P>(a) In the case of distilled spirits (other than cordials, liqueurs, flavored neutral spirits, including flavored vodka, and distilled spirits specialty products) manufactured by blending or other processing, if neutral spirits were used in the production of the spirits, the percentage of neutral spirits so used and the name of the commodity from which the neutral spirits were distilled must appear on a label. The statement of percentage and the name of the commodity must be in substantially the following form: “____% neutral spirits distilled from____ (insert grain, cane products, fruit, or other commodity as appropriate)”; or “____ % neutral spirits (vodka) distilled from ____ (insert grain, cane products, fruit, or other commodity as appropriate)”; or “____ % (grain) (cane products), (fruit) neutral spirits”, or “____ % grain spirits.”
</P>
<P>(b) In the case of gin manufactured by a process of continuous distillation or in the case of neutral spirits, a label on the container must state the name of the commodity from which the gin or neutral spirits were distilled. The statement of the name of the commodity must appear in substantially the following form: “Distilled from grain” or “Distilled from cane products”.


</P>
</DIV8>


<DIV8 N="§ 5.72" NODE="27:1.0.1.1.3.5.25.12" TYPE="SECTION">
<HEAD>§ 5.72   Coloring materials.</HEAD>
<P>The words “artificially colored” must appear on a label of any distilled spirits product containing synthetic or natural materials that primarily contribute color, or when information on a label conveys the impression that a color was derived from a source other than the actual source of the color, except that:
</P>
<P>(a) If no coloring material other than a color exempt from certification under FDA regulations has been added, a truthful statement of the source of the color may appear in lieu of the words “artificially colored,” for example, “Contains Beta Carotene” or “Colored with beet extract.” See 21 CFR parts 73 and 74 for the list of such colors under Food and Drug Administration (FDA) regulations;
</P>
<P>(b) If no coloring material has been added other than one certified as suitable for use in foods by the FDA, the words “(to be filled in with name of) certified color added” or “Contains Certified Color” may appear in lieu of the words “artificially colored”; and
</P>
<P>(c) If no coloring material other than caramel has been added, the words “colored with caramel,” “contains caramel color,” or another statement specifying the use of caramel color, may appear in lieu of the words “artificially colored.” However, no statement of any type is required for the use of caramel color in brandy, rum, or Tequila, or in any type of whisky other than straight whisky if used at not more than 2.5 percent by volume of the finished product. Provided, if any amount of caramel color is used in American single malt whisky, or in straight American single malt whisky, a statement specifying the use of caramel color must appear on the label. 
</P>
<P>(d) As provided in § 5.61, the use of FD&amp;C Yellow No. 5, carmine, or cochineal extract must be specifically stated on the label even if the label also contains a phrase such as “contains certified color” or “artificially colored.”


</P>
<CITA TYPE="N">[T.D. TTB-176, 87 7579, Feb. 9, 2022, as amended by T.D. TTB-199, 89 FR 102735, Dec. 24, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 5.73" NODE="27:1.0.1.1.3.5.25.13" TYPE="SECTION">
<HEAD>§ 5.73   Treatment of whisky or brandy with wood.</HEAD>
<P>The words “colored and flavored with wood____ ” (inserting “chips,” “slabs,” etc., as appropriate) must appear immediately adjacent to, and in the same size of type as, the class and type designation under subpart I of this part for whisky and brandy treated, in whole or in part, with wood through percolation or otherwise during distillation or storage, other than through contact with an oak barrel. However, the statement specified in this section is not required in the case of brandy treated with an infusion of oak chips in accordance with § 5.155(b)(3)(B).


</P>
</DIV8>


<DIV8 N="§ 5.74" NODE="27:1.0.1.1.3.5.25.14" TYPE="SECTION">
<HEAD>§ 5.74   Statements of age, storage, and percentage.</HEAD>
<P>(a) <I>General.</I> (1) As defined in § 5.1, age is the length of time during which, after distillation and before bottling, the distilled spirits have been stored in oak barrels. For bourbon whisky, rye whisky, wheat whisky, malt whisky, or rye malt whisky, and straight whiskies other than straight corn whisky and straight American single malt whisky, aging must occur in charred new oak barrels.
</P>
<P>(2) If an age statement is used, it is permissible to understate the age of a product, but overstatements of age are prohibited. However, the age statement may not conflict with the standard of identity, if aging is required as part of the standard of identity. For example, the standard of identity for straight rye whisky requires that the whisky be aged for a minimum of 2 years, so the age statement “Aged 1 year,” would be prohibited for a product designated as “straight” rye whisky, even if the spirits were actually aged for more than 2 years, because it is inconsistent with the standard of identity.
</P>
<P>(3)The age may be stated in years, months, or days.
</P>
<P>(b) <I>Age statements and percentage of type statements for whisky.</I> For all domestic or foreign whiskies that are aged less than 4 years, including blends containing a whisky that is aged less than 4 years, an age statement and percentage of types of whisky statement is required to appear on a label, unless the whisky is labeled as “bottled in bond” in conformity with § 5.88. For all other whiskies, the statements are optional, but if used, they must conform to the formatting requirements listed below. Moreover, if the bottler chooses to include a statement of age or percentage on the label of a product that is 4 years old or more and that contains neutral spirits, the statement must appear immediately adjacent to the neutral spirits statement required by § 5.70. The following are the allowable formats for the age and percentage statements for whisky:
</P>
<P>(1)(i) In the case of whisky, whether or not mixed or blended but containing no neutral spirits, the age of the youngest whisky in the product. The age statement must appear substantially as follows: “____ years old”; and
</P>
<P>(ii) If a whisky is aged in more than one container, the label may optionally indicate the types of oak containers used.
</P>
<P>(2) In the case of whisky containing neutral spirits, whether or not mixed or blended, if any straight whisky or other whisky in the product is less than 4 years old, the percentage by volume of each such whisky and the age of each such whisky (the age of the youngest of the straight whiskies or other whiskies if the product contains two or more of either). The age and percentage statement for a straight whisky and other whisky must appear immediately adjacent to the neutral spirits statement required by § 5.70 and must read substantially as follows:
</P>
<P>(i) If the product contains only one straight whisky and no other whisky: “____ percent straight whisky ____ years old;”
</P>
<P>(ii) If the product contains more than one straight whisky but no other whisky: “____ percent straight whiskies ____ years or more old.” In this case the age blank must state the age of the youngest straight whisky in the product. However, in lieu of the foregoing statement, the following statement may appear on the label: “____ percent straight whisky ____ years old, ____ percent straight whisky ____ years old, and ____ percent straight whisky ____ years old”;
</P>
<P>(iii) If the product contains only one straight whisky and one other whisky: “____ percent straight whisky ____ years old, ____ percent whisky ____ years old”; or
</P>
<P>(iv) If the product contains more than one straight whisky and more than one other whisky: “____ percent straight whiskies ____ years or more old, ____ percent whiskies ____ years or more old.” In this case, the age blanks must state the age of the youngest straight whisky and the age of the youngest other whisky. However, in lieu of the foregoing statement, the following statement may appear on the label: “____ percent straight whisky ____ years old, percent straight whisky ____ years old, ____ percent whisky ____ years old, and ____ percent whisky ____ years old”;
</P>
<P>(3) In the case of an imported rye whisky, wheat whisky, malt whisky, or rye malt whisky, a label on the product must state each age and percentage in the manner and form that would be required if the whisky had been made in the United States;


</P>
<P>(4) In the case of whisky made in the United States and stored in reused oak barrels, other than corn whisky, light whisky, American single malt whisky, and straight American single malt whisky, in lieu of the words “__ years old” specified in paragraphs (b)(1) and (2) of this section, the period of storage in the reused oak barrels must appear on the label as follows: “stored __ years in reused cooperage.”
</P>
<P>(c) <I>Statements of age for rum, brandy, and agave spirits.</I> A statement of age on labels of rums, brandies, and agave spirits is optional, except that, in the case of brandy (other than immature brandies, fruit brandies, marc brandy, pomace brandy, Pisco brandy, Singani brandy, and grappa brandy, which are not customarily stored in oak barrels) not stored in oak barrels for a period of at least two years, a statement of age must appear on the label.  Any statement of age authorized or required under this paragraph must appear substantially as follows: “____ years old,” with the blank to be filled in with the age of the youngest distilled spirits in the product.
</P>
<P>(d) <I>Statement of storage for grain spirits.</I> In the case of grain spirits, the period of storage in oak barrels may appear on a label immediately adjacent to the percentage statement required under § 5.73, for example: “____ % grain spirits stored ____ years in oak barrels.”
</P>
<P>(e) <I>Other distilled spirits.</I> (1) Statements regarding age or maturity or similar statements or representations on labels for all other spirits, except neutral spirits, are permitted only when the distilled spirits are stored in an oak barrel and, once dumped from the barrel, subjected to no treatment besides mixing with water, filtering, and bottling. If batches are made from barrels of spirits of different ages, the label may only state the age of the youngest spirits.
</P>
<P>(2) Statements regarding age or maturity or similar statements of neutral spirits (except for grain spirits as stated in paragraph (c) of this section) are prohibited from appearing on any label.
</P>
<P>(f) <I>Other age representations.</I> (1) If a representation that is similar to an age or maturity statement permitted under this section appears on a label, a statement of age, in a manner that is conspicuous and in characters at least half the type size of the representation must also appear on each label that carries the representation, except in the following cases:
</P>
<P>(i) The use of the word “old” or another word denoting age as part of the brand name of the product is not deemed to be an age representation that requires a statement of age; and
</P>
<P>(ii) Labels of whiskies and brandies (other than immature brandies, pomace brandy, marc brandy, Pisco brandy, Singani brandy, and grappa brandy) not required to bear a statement of age, and rum and agave spirits aged for not less than four years, may contain general inconspicuous age, maturity or similar representations without the label having to bear an age statement.


</P>
<P>(2) Distillation dates (which may be an exact date or a year) may appear on a label of spirits where the spirits are manufactured solely through distillation. A distillation date may only appear if an optional or mandatory age statement is used on the label and must appear in the same field of vision as the age statement.


</P>
<CITA TYPE="N">[T.D. TTB-176, 87 7579, Feb. 9, 2022, as amended by T.D. TTB-187 88 FR 2227, Jan. 13, 2023; T.D. TTB-199, 89 FR 102735, Dec. 18, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.3.6" TYPE="SUBPART">
<HEAD>Subpart F—Restricted Labeling Statements.</HEAD>


<DIV8 N="§ 5.81" NODE="27:1.0.1.1.3.6.25.1" TYPE="SECTION">
<HEAD>§ 5.81   General.</HEAD>
<P>(a) <I>Application.</I> The labeling practices, statements, and representations in this subpart may be used on distilled spirits labels only when used in compliance with this subpart. In addition, if any of the practices, statements, or representations in this subpart are used elsewhere on containers or in packaging, they must comply with the requirements of this subpart. For purposes of this subpart:
</P>
<P>(1) The term “label” includes all labels on distilled spirits containers on which mandatory information may appear, as set forth in § 5.61(a), as well as any other label on the container.
</P>
<P>(2) The term “container” includes all parts of the distilled spirits container, including any part of a distilled spirits container on which mandatory information may appear, as well as those parts of the container on which information does not satisfy mandatory labeling requirements, as set forth in § 5.61(b).
</P>
<P>(3) The term “packaging” includes any carton, case, carrier, individual covering or other packaging of such containers used for sale at retail, but does not include shipping cartons or cases that are not intended to accompany the container to the consumer.
</P>
<P>(b) <I>Statement or representation.</I> For purposes of the practices in this subpart, the term “statement or representation” includes any statement, design, device, or representation, and includes pictorial or graphic designs or representations as well as written ones. The term “statement or representation” includes explicit and implicit statements and representations.
</P>
<HD1>Food Allergen Labeling


</HD1>
</DIV8>


<DIV8 N="§ 5.82" NODE="27:1.0.1.1.3.6.25.2" TYPE="SECTION">
<HEAD>§ 5.82   Voluntary disclosure of major food allergens.</HEAD>
<P>(a) <I>Definitions.</I> For purposes of this section, the following terms or phrases have the meanings indicated.
</P>
<P>(1) <I>Major food allergen</I> means any of the following:
</P>
<P>(i) Milk, egg, fish (for example, bass, flounder, or cod), Crustacean shellfish (for example, crab, lobster, or shrimp), tree nuts (for example, almonds, pecans, or walnuts), wheat, peanuts, and soybeans; or
</P>
<P>(ii) A food ingredient that contains protein derived from a food specified in paragraph (a)(1)(i) of this section, except:
</P>
<P>(A) Any highly refined oil derived from a food specified in paragraph (a)(1)(i) of this section and any ingredient derived from such highly refined oil; or
</P>
<P>(B) A food ingredient that is exempt from major food allergen labeling requirements pursuant to a petition for exemption approved by the Food and Drug Administration (FDA) under 21 U.S.C. 343(w)(6) or pursuant to a notice submitted to FDA under 21 U.S.C. 343(w)(7), provided that the food ingredient meets the terms or conditions, if any, specified for that exemption.
</P>
<P>(2) <I>Name of the food source from which each major food allergen is derived</I> means the name of the food as listed in paragraph (a)(1)(i) of this section, except that:
</P>
<P>(i) In the case of a tree nut, it means the name of the specific type of nut (for example, almonds, pecans, or walnuts); and
</P>
<P>(ii) In the case of Crustacean shellfish, it means the name of the species of Crustacean shellfish (for example, crab, lobster, or shrimp); and
</P>
<P>(iii) The names “egg” and “peanuts,” as well as the names of the different types of tree nuts, may be expressed in either the singular or plural form, and the name “soy,” “soybean,” or “soya” may be used instead of “soybeans.”
</P>
<P>(b) <I>Voluntary labeling standards.</I> Major food allergens used in the production of a distilled spirits product may, on a voluntary basis, be declared on any label affixed to the container. However, if any one major food allergen is voluntarily declared, all major food allergens used in production of the distilled spirits product, including major food allergens used as fining or processing agents, must be declared, except when covered by a petition for exemption approved by the appropriate TTB officer under § 5.83. The major food allergens declaration must consist of the word “Contains” followed by a colon and the name of the food source from which each major food allergen is derived (for example, “Contains: egg”).


</P>
</DIV8>


<DIV8 N="§ 5.83" NODE="27:1.0.1.1.3.6.25.3" TYPE="SECTION">
<HEAD>§ 5.83   Petitions for exemption from major food allergen labeling.</HEAD>
<P>(a) <I>Submission of petition.</I> Any person may petition the appropriate TTB officer to exempt a particular product or class of products from the labeling requirements of § 5.82. The burden is on the petitioner to provide scientific evidence (as well as the analytical method used to produce the evidence) that demonstrates that the finished product or class of products, as derived by the method specified in the petition, either:
</P>
<P>(1) Does not cause an allergic response that poses a risk to human health; or
</P>
<P>(2) Does not contain allergenic protein derived from one of the foods identified in § 5.82(a)(1)(i), even though a major food allergen was used in production.
</P>
<P>(b) <I>Decision on petition.</I> TTB will approve or deny a petition for exemption submitted under paragraph (a) of this section in writing within 180 days of receipt of the petition. If TTB does not provide a written response to the petitioner within that 180-day period, the petition will be deemed denied, unless an extension of time for decision is mutually agreed upon by the appropriate TTB officer and the petitioner. TTB may confer with the Food and Drug Administration (FDA) on petitions for exemption, as appropriate and as FDA resources permit. TTB may require the submission of product samples and other additional information in support of a petition; however, unless required by TTB, the submission of samples or additional information by the petitioner after submission of the petition will be treated as the withdrawal of the initial petition and the submission of a new petition. An approval or denial under this section will constitute final agency action.
</P>
<P>(c) <I>Resubmission of a petition.</I> After a petition for exemption is denied under this section, the petitioner may resubmit the petition along with supporting materials for reconsideration at any time. TTB will treat this submission as a new petition.
</P>
<P>(d) <I>Availability of information</I>—(1) <I>General.</I> TTB will promptly post to its website (<I>https://www.ttb.gov</I>) all petitions received under this section, as well as TTB's responses to those petitions. Any information submitted in support of the petition that is not posted to the TTB website will be available to the public pursuant to the Freedom of Information Act, at 5 U.S.C. 552, except where a request for confidential treatment is granted under paragraph (d)(2) of this section.
</P>
<P>(2) <I>Requests for confidential treatment of business information.</I> A person who provides trade secrets or other commercial or financial information in connection with a petition for exemption under this section may request that TTB give confidential treatment to that information. A failure to request confidential treatment at the time the information in question is submitted to TTB will constitute a waiver of confidential treatment. A request for confidential treatment of information under this section must conform to the following standards:
</P>
<P>(i) The request must be in writing;
</P>
<P>(ii) The request must clearly identify the information to be kept confidential;
</P>
<P>(iii) The request must relate to information that constitutes trade secrets or other confidential commercial or financial information regarding the business transactions of an interested person, the disclosure of which would cause substantial harm to the competitive position of that person;
</P>
<P>(iv) The request must set forth the reasons why the information should not be disclosed, including the reasons why the disclosure of the information would prejudice the competitive position of the interested person; and
</P>
<P>(v) The request must be supported by a signed statement by the interested person, or by an authorized officer or employee of that person, certifying that the information in question is a trade secret or other confidential commercial or financial information and that the information is not already in the public domain.
</P>
<HD1>Production Claims


</HD1>
</DIV8>


<DIV8 N="§ 5.84" NODE="27:1.0.1.1.3.6.25.4" TYPE="SECTION">
<HEAD>§ 5.84   Use of the term “organic.”</HEAD>
<P>Use of the term “organic” is permitted if any such use complies with United States Department of Agriculture (USDA) National Organic Program rules (7 CFR part 205), as interpreted by the USDA.


</P>
</DIV8>


<DIV8 N="§ 5.85" NODE="27:1.0.1.1.3.6.25.5" TYPE="SECTION">
<HEAD>§ 5.85   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 5.86" NODE="27:1.0.1.1.3.6.25.6" TYPE="SECTION">
<HEAD>§ 5.86   [Reserved]</HEAD>
<HD1>Other Label Terms


</HD1>
</DIV8>


<DIV8 N="§ 5.87" NODE="27:1.0.1.1.3.6.25.7" TYPE="SECTION">
<HEAD>§ 5.87   “Barrel Proof” and similar terms.</HEAD>
<P>(a) The term “barrel proof” or “cask strength” may be used to refer to distilled spirits stored in wood barrels only when the bottling proof is not more than two degrees lower than the proof of the spirits when the spirits are dumped from the barrels.
</P>
<P>(b) The term “original proof,” “original barrel proof,” “original cask strength,” or “entry proof” may be used only if the distilled spirits were stored in wooden barrels and the proof of the spirits entered into the barrel and the proof of the bottled spirits are the same.


</P>
</DIV8>


<DIV8 N="§ 5.88" NODE="27:1.0.1.1.3.6.25.8" TYPE="SECTION">
<HEAD>§ 5.88   Bottled in bond.</HEAD>
<P>(a) The term “bond,” “bonded,” “bottled in bond,” or “aged in bond,” or phrases containing these or synonymous terms, may be used (including as part of the brand name) only if the distilled spirits are:
</P>
<P>(1) Composed of the same kind (type, if one is applicable to the spirits, otherwise class) of spirits distilled from the same class of materials;
</P>
<P>(2) Distilled in the same distilling season (as defined in § 5.1) by the same distiller at the same distillery.
</P>
<P>(3) Stored for at least 4 years in wooden containers wherein the spirits have been in contact with the wood surface, except for vodka, which must be stored for at least 4 years in wooden containers coated or lined with paraffin or other substance which will preclude contact of the spirits with the wood surface, and except for gin, which must be stored in paraffin-lined or unlined wooden containers for at least 4 years;
</P>
<P>(4) Unaltered from their original condition or character by the addition or subtraction of any substance other than by filtration, chill proofing, or other physical treatments (which do not involve the addition of any substance which will remain in the finished product or result in a change in class or type);
</P>
<P>(5) Reduced in proof by the addition of only pure water to 50 percent alcohol by volume (100 degrees of proof); and
</P>
<P>(6) Bottled at 50 percent alcohol by volume (100 degrees of proof).
</P>
<P>(b) Imported spirits labeled as “bottled in bond” or other synonymous term described above must be manufactured in accordance with paragraphs (a)(1) through (6) of this section and may only be so labeled if the laws and regulations of the country in which the spirits are manufactured authorize the bottling of spirits in bond and require or specifically authorize such spirits to be so labeled. The “bottled in bond” or synonymous statement must be immediately followed, in the same font and type size, by the name of the country under whose laws and regulations such distilled spirits were so bottled.
</P>
<P>(c) Domestically manufactured spirits labeled as “bottled in bond” or with some other synonymous statement must bear the real name of the distillery or the trade name under which the distiller distilled and warehoused the spirits, and the number of the distilled spirits plant in which distilled, and the number of the distilled spirits plant in which bottled. The label may also bear the name or trade name of the bottler.


</P>
</DIV8>


<DIV8 N="§ 5.89" NODE="27:1.0.1.1.3.6.25.9" TYPE="SECTION">
<HEAD>§ 5.89   Multiple distillation claims.</HEAD>
<P>(a) Truthful statements about the number of distillations, such as “double distilled,” “distilled three times,” or similar terms to convey multiple distillations, may be used if they are truthful statements of fact. For the purposes of this section only, the term “distillation” means a single run through a pot still or a single run through a column of a column (reflux) still. For example, if a column still has three separate columns, one complete additional run through the system would constitute three additional distillations.
</P>
<P>(b) The number of distillations may be understated but may not be overstated.


</P>
</DIV8>


<DIV8 N="§ 5.90" NODE="27:1.0.1.1.3.6.25.10" TYPE="SECTION">
<HEAD>§ 5.90   Terms related to Scotland.</HEAD>
<P>(a) The words “Scotch,” “Scots,” “Highland,” or “Highlands,” and similar words connoting, indicating, or commonly associated with Scotland, may be used to designate only distilled spirits wholly manufactured in Scotland, except that the term “Scotch whisky” may appear in the designation for a flavored spirit (“Flavored Scotch Whisky”) or in a truthful statement of composition (“Scotch whisky with natural flavors”) where the base distilled spirit meets the requirements for a Scotch whisky designation, regardless of where the finished product is manufactured.
</P>
<P>(b) In accordance with § 5.127, statements relating to government supervision may appear on Scotch whisky containers only if such labeling statements are required or specifically authorized by the applicable regulations of the United Kingdom.


</P>
</DIV8>


<DIV8 N="§ 5.91" NODE="27:1.0.1.1.3.6.25.11" TYPE="SECTION">
<HEAD>§ 5.91   Use of the term “pure.”</HEAD>
<P>Distilled spirits labels, containers, or packaging may not bear the word “pure” unless it:
</P>
<P>(a) Refers to a particular ingredient used in the production of the distilled spirits, and is a truthful representation about that ingredient;
</P>
<P>(b) Is part of the bona fide name of a permittee or retailer for which the distilled spirits are bottled; or
</P>
<P>(c) Is part of the bona fide name of the permittee that bottled the distilled spirits.


</P>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.3.7" TYPE="SUBPART">
<HEAD>Subpart G—Prohibited Labeling Practices</HEAD>


<DIV8 N="§ 5.101" NODE="27:1.0.1.1.3.7.25.1" TYPE="SECTION">
<HEAD>§ 5.101   General.</HEAD>
<P>(a) <I>Application.</I> The prohibitions set forth in this subpart apply to any distilled spirits label, container, or packaging. For purposes of this subpart:
</P>
<P>(1) The term “label” includes all labels on distilled spirits containers on which mandatory information may appear, as set forth in § 5.61(a), as well as any other label on the container;
</P>
<P>(2) The term “container” includes all parts of the distilled spirits container, including any part of a distilled spirits container on which mandatory information may appear, as well as those parts of the container on which information does not satisfy mandatory labeling requirements, as set forth in § 5.61(b); and
</P>
<P>(3) The term “packaging” includes any carton, case, carrier, individual covering or other packaging of such containers used for sale at retail, but does not include shipping cartons or cases that are not intended to accompany the container to the consumer.
</P>
<P>(b) <I>Statement or representation.</I> For purposes of the practices in this subpart, the term “statement or representation” includes any statement, design, device, or representation, and includes pictorial or graphic designs or representations as well as written ones. The term “statement or representation” includes explicit and implicit statements and representations.


</P>
</DIV8>


<DIV8 N="§ 5.102" NODE="27:1.0.1.1.3.7.25.2" TYPE="SECTION">
<HEAD>§ 5.102   False or untrue statements.</HEAD>
<P>Distilled spirits labels, containers, or packaging may not contain any statement or representation that is false or untrue in any particular.


</P>
</DIV8>


<DIV8 N="§ 5.103" NODE="27:1.0.1.1.3.7.25.3" TYPE="SECTION">
<HEAD>§ 5.103   Obscene or indecent depictions.</HEAD>
<P>Distilled spirits labels, containers, or packaging may not contain any statement, design, device, picture, or representation that is obscene or indecent.


</P>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.3.8" TYPE="SUBPART">
<HEAD>Subpart H—Labeling Practices That Are Prohibited If They Are Misleading</HEAD>


<DIV8 N="§ 5.121" NODE="27:1.0.1.1.3.8.25.1" TYPE="SECTION">
<HEAD>§ 5.121   General.</HEAD>
<P>(a) <I>Application.</I> The labeling practices that are prohibited if misleading set forth in this subpart apply to any distilled spirits label, container, or packaging. For purposes of this subpart:
</P>
<P>(1) The term “label” includes all labels on distilled spirits containers on which mandatory information may appear, as set forth in § 5.61(a), as well as any other label on the container;
</P>
<P>(2) The term “container” includes all parts of the distilled spirits container, including any part of a distilled spirits container on which mandatory information may appear, as well as those parts of the container on which information does not satisfy mandatory labeling requirements, as set forth in § 5.61(b); and
</P>
<P>(3) The term “packaging” includes any carton, case, carrier, individual covering or other packaging of such containers used for sale at retail, but does not include shipping cartons or cases that are not intended to accompany the container to the consumer.
</P>
<P>(b) <I>Statement or representation.</I> For purposes of this subpart, the term “statement or representation” includes any statement, design, device, or representation, and includes pictorial or graphic designs or representations as well as written ones. The term “statement or representation” includes explicit and implicit statements and representations.


</P>
</DIV8>


<DIV8 N="§ 5.122" NODE="27:1.0.1.1.3.8.25.2" TYPE="SECTION">
<HEAD>§ 5.122   Misleading statements or representations.</HEAD>
<P>(a) <I>General prohibition.</I> Distilled spirits labels, containers, or packaging may not contain any statement or representation, irrespective of falsity, that is misleading to consumers as to the age, origin, identity, or other characteristics of the distilled spirits, or with regard to any other material factor.
</P>
<P>(b) <I>Ways in which statements or representations may be found to be misleading.</I> (1) A statement or representation is prohibited, irrespective of falsity, if it directly creates a misleading impression, or if it does so indirectly through ambiguity, omission, inference, or by the addition of irrelevant, scientific, or technical matter. For example, an otherwise truthful statement may be misleading because of the omission of material information, the disclosure of which is necessary to prevent the statement from being misleading.
</P>
<P>(2) All claims, whether implicit or explicit, must have a reasonable basis in fact. Any claim on distilled spirits labels, containers, or packaging that does not have a reasonable basis in fact, or cannot be adequately substantiated upon the request of the appropriate TTB officer, is considered misleading.


</P>
</DIV8>


<DIV8 N="§ 5.123" NODE="27:1.0.1.1.3.8.25.3" TYPE="SECTION">
<HEAD>§ 5.123   Guarantees.</HEAD>
<P>Distilled spirits labels, containers, or packaging may not contain any statement relating to guarantees if the appropriate TTB officer finds it is likely to mislead the consumer. However, money-back guarantees are not prohibited.


</P>
</DIV8>


<DIV8 N="§ 5.124" NODE="27:1.0.1.1.3.8.25.4" TYPE="SECTION">
<HEAD>§ 5.124   Disparaging statements.</HEAD>
<P>(a) <I>General.</I> Distilled spirits labels, containers, or packaging may not contain any false or misleading statement that explicitly or implicitly disparages a competitor's product.
</P>
<P>(b) <I>Truthful and accurate comparisons.</I> This section does not prevent truthful and accurate comparisons between products (such as, “Our liqueur contains more strawberries than Brand X”) or statements of opinion (such as, “We think our rum tastes better than any other distilled spirits on the market”).


</P>
</DIV8>


<DIV8 N="§ 5.125" NODE="27:1.0.1.1.3.8.25.5" TYPE="SECTION">
<HEAD>§ 5.125   Tests or analyses.</HEAD>
<P>Distilled spirits labels, containers, or packaging may not contain any statement or representation of or relating to analyses, standards, or tests, whether or not it is true, that is likely to mislead the consumer. An example of such a misleading statement is “tested and approved by our research laboratories” if the testing and approval does not in fact have any significance.


</P>
</DIV8>


<DIV8 N="§ 5.126" NODE="27:1.0.1.1.3.8.25.6" TYPE="SECTION">
<HEAD>§ 5.126   Depictions of government symbols.</HEAD>
<P><I>Representations of the armed forces and flags.</I> Distilled spirits labels, containers, or packaging may not show an image of any government's flag or any representation related to the armed forces of the United States if the representation, standing alone or considered together with any additional language or symbols on the label, creates a false or misleading impression that the product was endorsed by, made by, used by, or made under the supervision of, the government represented by that flag or by the armed forces of the United States. This section does not prohibit the use of a flag as part of a claim of American origin or another country of origin.


</P>
</DIV8>


<DIV8 N="§§ 5.127-5.128" NODE="27:1.0.1.1.3.8.25.7" TYPE="SECTION">
<HEAD>§§ 5.127-5.128   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 5.129" NODE="27:1.0.1.1.3.8.25.8" TYPE="SECTION">
<HEAD>§ 5.129   Health-related statements.</HEAD>
<P>(a) <I>Definitions.</I> When used in this section, the following terms have the meaning indicated:
</P>
<P>(1) <I>Health-related statement</I> means any statement related to health (other than the warning statement required under part 16 of this chapter) and includes statements of a curative or therapeutic nature that, expressly or by implication, suggest a relationship between the consumption of alcohol, distilled spirits, or any substance found within the distilled spirits product, and health benefits or effects on health. The term includes both specific health claims and general references to alleged health benefits or effects on health associated with the consumption of alcohol, distilled spirits, or any substance found within the distilled spirits, as well as health-related directional statements. The term also includes statements and claims that imply that a physical or psychological sensation results from consuming the distilled spirits, as well as statements and claims of nutritional value (for example, statements of vitamin content).
</P>
<P>(2) <I>Specific health claim</I> means a type of health-related statement that, expressly or by implication, characterizes the relationship of distilled spirits, alcohol, or any substance found within the distilled spirits, to a disease or health-related condition. Implied specific health claims include statements, symbols, vignettes, or other forms of communication that suggest, within the context in which they are presented, that a relationship exists between alcohol, distilled spirits, or any substance found within the distilled spirits, and a disease or health-related condition.
</P>
<P>(3) <I>Health-related directional statement</I> means a type of health-related statement that directs or refers consumers to a third party or other source for information regarding the effects on health of distilled spirits or alcohol consumption.
</P>
<P>(b) <I>Rules for labeling</I>—(1) <I>Health-related statements.</I> In general, distilled spirits may not contain any health-related statement that is untrue in any particular or tends to create a misleading impression as to the effects on health of alcohol consumption. TTB will evaluate such statements on a case-by-case basis and may require as part of the health-related statement a disclaimer or some other qualifying statement to dispel any misleading impression conveyed by the health-related statement.
</P>
<P>(2) <I>Specific health claims.</I> (i) TTB will consult with the Food and Drug Administration (FDA), as needed, on the use of a specific health claim on the distilled spirits. If FDA determines that the use of such a labeling claim is a drug claim that is not in compliance with the requirements of the Federal Food, Drug, and Cosmetic Act, TTB will not approve the use of that specific health claim on the distilled spirits.
</P>
<P>(ii) TTB will approve the use of a specific health claim on a distilled spirits label only if the claim is truthful and adequately substantiated by scientific or medical evidence; is sufficiently detailed and qualified with respect to the categories of individuals to whom the claim applies; adequately discloses the health risks associated with both moderate and heavier levels of alcohol consumption; and outlines the categories of individuals for whom any levels of alcohol consumption may cause health risks. This information must appear as part of the specific health claim.
</P>
<P>(3) <I>Health-related directional statements.</I> A health-related directional statement is presumed misleading unless it:
</P>
<P>(i) Directs consumers in a neutral or other non-misleading manner to a third party or other source for balanced information regarding the effects on health of distilled spirits or alcohol consumption; and
</P>
<P>(ii)(A) Includes as part of the health-related directional statement the following disclaimer: “This statement should not encourage you to drink or to increase your alcohol consumption for health reasons;” or
</P>
<P>(B) Includes as part of the health-related directional statement some other qualifying statement that the appropriate TTB officer finds is sufficient to dispel any misleading impression conveyed by the health-related directional statement.


</P>
</DIV8>


<DIV8 N="§ 5.130" NODE="27:1.0.1.1.3.8.25.9" TYPE="SECTION">
<HEAD>§ 5.130   Appearance of endorsement.</HEAD>
<P>(a) <I>General.</I> Distilled spirits labels, containers, or packaging may not include the name, or the simulation or abbreviation of the name, of any living individual of public prominence, or an existing private or public organization, or any graphic, pictorial, or emblematic representation of the individual or organization, if its use is likely to lead a consumer to falsely believe that the product has been endorsed, made, or used by, or produced for, or under the supervision of, or in accordance with the specifications of, such individual or organization. This section does not prohibit the use of such names where the individual or organization has provided authorization for their use.
</P>
<P>(b) <I>Disclaimers.</I> Statements or other representations do not violate this section if, taken as a whole, they create no misleading impression as to an implied endorsement either because of the context in which they are presented or because of the use of an adequate disclaimer.
</P>
<P>(c) <I>Exception.</I> This section does not apply to the use of the name of any person engaged in business as a distiller, rectifier (processor), blender, or other producer, or as an importer, wholesaler, retailer, bottler, or warehouseman of distilled spirits. This section also does not apply to the use by any person of a trade or brand name that is the name of any living individual of public prominence or existing private or public organization, provided such trade or brand name was used by the industry member or its predecessors in interest prior to August 29, 1935.


</P>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.3.9" TYPE="SUBPART">
<HEAD>Subpart I—Standards of Identity for Distilled Spirits</HEAD>


<DIV8 N="§ 5.141" NODE="27:1.0.1.1.3.9.25.1" TYPE="SECTION">
<HEAD>§ 5.141   The standards of identity in general.</HEAD>
<P>(a) <I>General.</I> Distilled spirits are divided, for labeling purposes, into classes, which are further divided into specific types. As set forth in § 5.63, a distilled spirits product label must bear the appropriate class, type or other designation. The standards that define the classes and types are known as the “standards of identity.” The classes and types of distilled spirits set forth in this subpart apply only to distilled spirits for beverage or other nonindustrial purposes.
</P>
<P>(b) <I>Rules.</I> (1) Unless otherwise specified, when a standard of identity states that a mash is of a particular ingredient (such as “fermented mash of grain”), the mash must be made entirely of that ingredient without the addition of other fermentable ingredients.
</P>
<P>(2) Some distilled spirits products may conform to the standards of identity of more than one class. Such products may be designated with any single class designation defined in this subpart to which the products conform.
</P>
<P>(c) <I>Designating with both class and type.</I> If a product is designated with both the class and the type, the type designation must be as conspicuous as the class designation, and must appear in the same field of vision.
</P>
<P>(d) <I>Words in a designation.</I> All words in a designation must be similarly conspicuous and must appear together.


</P>
</DIV8>


<DIV8 N="§ 5.142" NODE="27:1.0.1.1.3.9.25.2" TYPE="SECTION">
<HEAD>§ 5.142   Neutral spirits or alcohol.</HEAD>
<P>(a) <I>The class neutral spirits.</I> “Neutral spirits” or “alcohol” are distilled spirits distilled from any suitable material at or above 95 percent alcohol by volume (190° proof), and, if bottled, bottled at not less than 40 percent alcohol by volume (80° proof). Neutral spirits other than the type “grain spirits” may be designated as “neutral spirits” or “alcohol” on a label. Neutral spirits (other than the type “grain spirits”) may not be aged in wood barrels at any time.
</P>
<P>(b) <I>Types.</I> The following chart lists the types of neutral spirits and the rules that apply to the type designation.
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Type designation
</TH><TH class="gpotbl_colhed" scope="col">Standards
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Vodka</TD><TD align="left" class="gpotbl_cell">Neutral spirits which may be treated with up to two grams per liter of sugar and up to one gram per liter of citric acid. Products to be labeled as vodka may not be aged or stored in wood barrels at any time except when stored in paraffin-lined wood barrels and labeled as bottled in bond pursuant to § 5.88. Vodka treated and filtered with not less than one ounce of activated carbon or activated charcoal per 100 wine gallons of spirits may be labeled as “charcoal filtered.” Addition of any other flavoring or blending materials changes the classification to flavored vodka or to a distilled spirits specialty product, as appropriate. Vodka must be designated on the label as “neutral spirits,” “alcohol,” or “vodka”.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Grain spirits</TD><TD align="left" class="gpotbl_cell">Neutral spirits distilled from a fermented mash of grain and stored in oak barrels. “Grain spirits” must be designated as such on the label. Grain spirits may not be designated as “neutral spirits” or “alcohol” on the label.</TD></TR></TABLE></DIV></DIV>
</DIV8>


<DIV8 N="§ 5.143" NODE="27:1.0.1.1.3.9.25.3" TYPE="SECTION">
<HEAD>§ 5.143   Whisky.</HEAD>
<P>(a) <I>The class whisky.</I> “Whisky” or “whiskey” is distilled spirits that is an alcoholic distillate from a fermented mash of any grain distilled at less than 95 percent alcohol by volume (190° proof) having the taste, aroma, and characteristics generally attributed to whisky, stored in oak barrels (except that corn whisky need not be so stored), and bottled at not less than 40 percent alcohol by volume (80° proof), and also includes mixtures of such distillates for which no specific standards of identity are prescribed.
</P>
<P>(b) <I>Label designations.</I> The word whisky may be spelled as either “whisky” or “whiskey”. The place, State, or region where the whisky was distilled may appear as part of the designation on the label if the distillation and any required aging took place in that location (<I>e.g.,</I> “New York Bourbon Whisky” must be distilled and aged in the State of New York); however, blending and bottling need not have taken place in the same place, State, or region. However, if any whisky is made partially from whisky distilled in a country other than that indicated by the type designation, the label must indicate the percentage of such whisky and the country where that whisky was distilled. Additionally, the label of whisky that does not meet one of the standards for specific types of whisky and that is comprised of components distilled in more than one country must contain a statement of composition indicating the country of origin of each component (such as “Whisky—50% from Japan, 50% from the United States”). The word “bourbon” may not be used to describe any whisky or whisky-based distilled spirits not distilled and aged in the United States. The whiskies defined in paragraphs (c)(2) through (6) and (10) through (14) of this section are distinctive products of the United States and must have the country of origin stated immediately adjacent to the type designation if it is distilled outside of the United States, or the whisky designation must be proceeded by the term “American type” if the country of origin appears elsewhere on the label. For example, “Brazilian Corn Whisky,” “Rye Whisky distilled in Sweden,” and “Blended Whisky—Product of Japan” are statements that meet this country of origin requirement. “Light whisky”, “Blended light whisky”, and “Whisky distilled from bourbon (rye, wheat, malt, rye malt, or other named grain) mash” may only be produced in the United States.
</P>
<P>(c) <I>Types of whisky.</I> The following tables set out the designations for whisky. Table 1 sets forth the standards for whisky that are defined based on production, storage, and processing standards, while Table 2 sets forth rules for the types of whisky that are defined as distinctive products of certain foreign countries. For the whiskies listed in Table 1, a domestic whisky may be labeled with the designation listed, when it complies with the production standards in the subsequent columns. The “source” column indicates the source of the grain mash used to make the whisky. The “distillation proof” indicates the allowable distillation proof for that type. The “storage” column indicates the type of packages (barrels) in which the spirits must be stored and limits for the proof of the spirits when entering the packages. The “neutral spirits permitted” column indicates whether neutral spirits may be used in the product in their original state (and not as vehicles for flavoring materials), and if so, how much may be used. The “harmless coloring, flavoring, blending materials permitted” column indicates whether harmless coloring, flavoring, or blending materials, other than neutral spirits in their original form, described in § 5.142, may be used in the product. The use of the word “straight” is a further designation of a type, and is optional.
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 1 to Paragraph (<E T="01">c</E>)—Types of Whisky and Production, Storage, and Processing Standards
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Source
</TH><TH class="gpotbl_colhed" scope="col">Distillation proof
</TH><TH class="gpotbl_colhed" scope="col">Storage
</TH><TH class="gpotbl_colhed" scope="col">Neutral spirits
<br/>permitted
</TH><TH class="gpotbl_colhed" scope="col">Allowable coloring, flavoring, blending materials permitted
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Whisky, which may be used as the designation for any of the type designations under the class “whisky,” or may be used as the designation if the whisky does not meet one of the type designations but satisfies the class designation</TD><TD align="left" class="gpotbl_cell">Fermented grain mash</TD><TD align="left" class="gpotbl_cell">Less than 190°</TD><TD align="left" class="gpotbl_cell">Oak barrels with no minimum time requirement</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">Yes.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Bourbon Whisky, Rye Whisky, Wheat Whisky, Malt Whisky, Rye Malt Whisky, or [name of other grain] Whisky</TD><TD align="left" class="gpotbl_cell">Fermented mash of not less than 51%, respectively: Corn, Rye, Wheat, Malted Barley, Malted Rye Grain, [Other grain]</TD><TD align="left" class="gpotbl_cell">160° or less</TD><TD align="left" class="gpotbl_cell">Charred new oak barrels at 125° or less</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">Yes, except for bourbon whisky.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(3) Corn Whisky. (Whisky conforming to this standard must be designated as “corn whisky.”)</TD><TD align="left" class="gpotbl_cell">Fermented mash of not less than 80% corn</TD><TD align="left" class="gpotbl_cell">160° or less</TD><TD align="left" class="gpotbl_cell">Required only if age is claimed on the label. If stored, must be stored at 125° or less in used or uncharred new oak barrels</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">Yes.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(4) Straight Whisky</TD><TD align="left" class="gpotbl_cell">Fermented mash of less than 51% corn, rye, wheat, malted barley, malted rye [or other] grain. (Includes mixtures of straight whiskies made in the same state.)</TD><TD align="left" class="gpotbl_cell">160° or less</TD><TD align="left" class="gpotbl_cell">Charred new oak barrels at 125° or less for a minimum of 2 years</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">No.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(5) Straight Bourbon Whisky, Straight Rye Whisky, Straight Wheat Whisky, Straight Malt Whisky, or Straight Rye Malt Whisky</TD><TD align="left" class="gpotbl_cell">Fermented mash of not less than 51%, respectively: Corn, Rye, Wheat, Malted Barley, Malted Rye Grain</TD><TD align="left" class="gpotbl_cell">160° or less</TD><TD align="left" class="gpotbl_cell">Charred new oak barrels at 125° or less for a minimum of 2 years</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">No.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(6) Straight Corn Whisky</TD><TD align="left" class="gpotbl_cell">Fermented mash of not less than 80% corn</TD><TD align="left" class="gpotbl_cell">160° or less</TD><TD align="left" class="gpotbl_cell">125° or less in used or uncharred new oak barrels for a minimum of 2 years</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">No.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(7) Whisky distilled from Bourbon/Rye/Wheat/Malt/Rye Malt/[Name of other grain] mash</TD><TD align="left" class="gpotbl_cell">Fermented mash of not less than 51%, respectively: Corn, Rye, Wheat, Malted Barley, Malted Rye Grain, [Other grain]</TD><TD align="left" class="gpotbl_cell">160° or less</TD><TD align="left" class="gpotbl_cell">Used oak barrels</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">Yes.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(8) Light Whisky</TD><TD align="left" class="gpotbl_cell">Fermented grain mash</TD><TD align="left" class="gpotbl_cell">More than 160°</TD><TD align="left" class="gpotbl_cell">Used or uncharred new oak barrels</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">Yes.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(9) Blended Light Whisky (Light Whisky—a blend)</TD><TD align="left" class="gpotbl_cell">Light whisky blended with less than 20% Straight Whisky on a proof gallon basis</TD><TD align="left" class="gpotbl_cell">Blend</TD><TD align="left" class="gpotbl_cell">Will contain a blend</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">Yes.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(10) Blended Whisky (Whisky—a blend)</TD><TD align="left" class="gpotbl_cell">At least 20% Straight Whisky on a proof gallon basis plus Whisky or Neutral Spirits alone or in combination</TD><TD align="left" class="gpotbl_cell">160° or less</TD><TD align="left" class="gpotbl_cell">Will contain a blend of spirits, some stored and some not stored</TD><TD align="left" class="gpotbl_cell">Maximum of 80% on a proof gallon basis</TD><TD align="left" class="gpotbl_cell">Yes.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(11) Blended Bourbon Whisky, Blended Rye Whisky, Blended Wheat Whisky, Blended Malt Whisky, Blended Rye Malt Whisky, Blended Corn Whisky (or Whisky—a blend)</TD><TD align="left" class="gpotbl_cell">At least 51% on a proof gallon basis of: Straight Bourbon, Rye, Wheat, Malt, Rye Malt, or Corn Whisky; the rest comprised of Whisky or Neutral Spirits alone or in combination</TD><TD align="left" class="gpotbl_cell">Blend</TD><TD align="left" class="gpotbl_cell">Will contain a blend of spirits, some stored and some not stored</TD><TD align="left" class="gpotbl_cell">Maximum of 49% on a proof gallon basis</TD><TD align="left" class="gpotbl_cell">Yes.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(12) Blend of Straight Whiskies (Blended Straight Whiskies)</TD><TD align="left" class="gpotbl_cell">Mixture of Straight Whiskies that does not conform to “Straight Whisky”</TD><TD align="left" class="gpotbl_cell">160° or less</TD><TD align="left" class="gpotbl_cell">Will contain a blend of spirits which were aged at least 2 years</TD><TD align="left" class="gpotbl_cell">No, except as part of a flavor</TD><TD align="left" class="gpotbl_cell">Yes.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(13) Blended Straight Bourbon Whiskies, Blended Straight Rye Whiskies, Blended Straight Wheat Whiskies, Blended Straight Malt Whiskies, Blended Straight Rye Malt Whiskies, Blended Straight Corn Whiskies, (or a blend of straight whiskies)</TD><TD align="left" class="gpotbl_cell">Mixture of Straight Whiskies of the same named type produced in different states or produced in the same state but contains coloring, flavoring or blending material</TD><TD align="left" class="gpotbl_cell">160° or less</TD><TD align="left" class="gpotbl_cell">Will contain a blend of spirits which were aged at least 2 years</TD><TD align="left" class="gpotbl_cell">No, except as part of a flavor</TD><TD align="left" class="gpotbl_cell">Yes.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(14) Spirit Whisky</TD><TD align="left" class="gpotbl_cell">Mixture of Neutral Spirits and 5% or more on a proof gallon basis of: Whisky or Straight Whisky or a combination of both. The Straight Whisky component must be less than 20% on a proof gallon basis</TD><TD align="left" class="gpotbl_cell">Blend</TD><TD align="left" class="gpotbl_cell">Will contain a blend of spirits, some stored and some not stored</TD><TD align="left" class="gpotbl_cell">Maximum of 95% on a proof gallon basis</TD><TD align="left" class="gpotbl_cell">Yes.




</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(15) American single malt whisky</TD><TD align="left" class="gpotbl_cell">Fermented mash of 100 percent malted barley, produced in the United States</TD><TD align="left" class="gpotbl_cell">160 or less, distilled at the same distillery in the United States</TD><TD align="left" class="gpotbl_cell">Used, charred new, or uncharred new oak barrels; 700-liter maximum capacity; stored only in the United States</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">No, except for caramel coloring and only if disclosed on the label.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(16) Straight American single malt whisky</TD><TD align="left" class="gpotbl_cell">Fermented mash of 100 percent malted barley, produced in the United States</TD><TD align="left" class="gpotbl_cell">160 or less, distilled at the same distillery in the United States</TD><TD align="left" class="gpotbl_cell">Used, charred new, or uncharred new oak barrels for a minimum of 2 years; 700-liter maximum capacity; stored only in the United States</TD><TD align="left" class="gpotbl_cell">No</TD><TD align="left" class="gpotbl_cell">No, except for caramel coloring and only if disclosed on the label.
</TD></TR></TABLE></DIV></DIV>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 2 to Paragraph (<E T="01">c</E>)—Types of Whisky That Are Distinctive Products
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col"> 
</TH><TH class="gpotbl_colhed" scope="col"> 
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(17) Scotch whisky</TD><TD align="left" class="gpotbl_cell">Whisky which is a distinctive product of Scotland, manufactured in Scotland in compliance with the laws of the United Kingdom regulating the manufacture of Scotch whisky for consumption in the United Kingdom: <E T="03">Provided,</E> That if such product is a mixture of whiskies, such mixture is “blended Scotch whisky” or “Scotch whisky—a blend”.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(18) Irish whisky</TD><TD align="left" class="gpotbl_cell">Whisky which is a distinctive product of Ireland, manufactured either in the Republic of Ireland or in Northern Ireland, in compliance with their laws regulating the manufacture of Irish whisky for home consumption: <E T="03">Provided,</E> That if such product is a mixture of whiskies, such mixture is “blended Irish whisky” or “Irish whisky—a blend”.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(19) Canadian whisky</TD><TD align="left" class="gpotbl_cell">Whisky which is a distinctive product of Canada, manufactured in Canada in compliance with the laws of Canada regulating the manufacture of Canadian whisky for consumption in Canada: <E T="03">Provided,</E> That if such product is a mixture of whiskies, such mixture is “blended Canadian whisky” or “Canadian whisky—a blend”.</TD></TR></TABLE></DIV></DIV>
<P>(d) <I>Transition period.</I> A label with the designation “American single malt whisky” or “straight American single malt whisky” may be used on distilled spirits bottled before January 19, 2030, if the distilled spirits conform to the applicable standards set forth in this part in effect prior to January 19, 2025.


</P>
<CITA TYPE="N">[T.D. TTB-176, 87 7579, Feb. 9, 2022, as amended by T.D. TTB-199, 89 FR 102735, Dec. 18, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 5.144" NODE="27:1.0.1.1.3.9.25.4" TYPE="SECTION">
<HEAD>§ 5.144   Gin.</HEAD>
<P>(a) <I>The class gin.</I> “Gin” is distilled spirits made by original distillation from mash, or by redistillation of distilled spirits, or by mixing neutral spirits, with or over juniper berries and, optionally, with or over other aromatics, or with or over extracts derived from infusions, percolations, or maceration of such materials, and includes mixtures of gin and neutral spirits. It must derive its main characteristic flavor from juniper berries and be bottled at not less than 40 percent alcohol by volume (80° proof). Gin may be aged in oak containers.
</P>
<P>(b) <I>Distilled gin.</I> Gin made exclusively by original distillation or by redistillation may be further designated as “distilled,” “Dry,” “London,” “Old Tom” or some combination of these four terms.


</P>
</DIV8>


<DIV8 N="§ 5.145" NODE="27:1.0.1.1.3.9.25.5" TYPE="SECTION">
<HEAD>§ 5.145   Brandy.</HEAD>
<P>(a) <I>The class brandy.</I> “Brandy” is spirits that are distilled from the fermented juice, mash, or wine of fruit, or from the residue thereof, distilled at less than 95 percent alcohol by volume (190° proof) having the taste, aroma, and characteristics generally attributed to the product, and bottled at not less than 40 percent alcohol by volume (80° proof).
</P>
<P>(b) <I>Label designations.</I> Brandy conforming to one of the type designations must be designated with the type name or specific designation specified in the requirements for that type. The term “brandy” without further qualification (such as “peach” or “marc”) may only be used as a designation on labels of grape brandy as defined in paragraph (c)(1) of this section. Brandy conforming to one of the type designations defined in paragraphs (c)(1) through (13) of this section must be designated on the label with the type name unless a specific designation is included in the requirements for that type. Brandy, or mixtures thereof, not conforming to any of the types defined in this section must be designated on the label as “brandy” followed immediately by a truthful and adequate statement of composition.
</P>
<P>(c) <I>Types.</I> Paragraphs (c)(1) through (13) of this section set out the types of brandy and the standards for each type.
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Standards
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Fruit brandy</TD><TD align="left" class="gpotbl_cell">Brandy distilled solely from the fermented juice or mash of whole, sound, ripe fruit, or from standard grape or other fruit wine, with or without the addition of not more than 20 percent by weight of the pomace of such juice or wine, or 30 percent by volume of the lees of such wine, or both (calculated prior to the addition of water to facilitate fermentation or distillation). Fruit brandy includes mixtures of such brandy with not more than 30 percent (calculated on a proof gallon basis) of lees brandy. Fruit brandy derived solely from grapes and stored for at least 2 years in oak containers must be designated “grape brandy” or “brandy.” Grape brandy that has been stored in oak barrels for fewer than 2 years must be designated “immature grape brandy” or “immature brandy.” Fruit brandy, other than grape brandy, derived from one variety of fruit, must be designated by the word “brandy” qualified by the name of such fruit (for example, “peach brandy”), except that “apple brandy” may be designated “applejack,” “plum brandy” may be designated “Slivovitz,” and “cherry brandy” may be designated “Kirschwasser.” Fruit brandy derived from more than one variety of fruit must be designated as “fruit brandy” qualified by a truthful and adequate statement of composition, for example “Fruit brandy distilled from strawberries and blueberries.”
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Cognac or “Cognac (grape) brandy”</TD><TD align="left" class="gpotbl_cell">Grape brandy distilled exclusively in the Cognac region of France, which is entitled to be so designated by the laws and regulations of the French government.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(3) Armagnac</TD><TD align="left" class="gpotbl_cell">Grape brandy distilled exclusively in France in accordance with the laws and regulations of France regulating the manufacture of Armagnac for consumption in France.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(4) Brandy de Jerez</TD><TD align="left" class="gpotbl_cell">Grape brandy distilled exclusively in Spain in accordance with the laws and regulations of Spain regulating the manufacture of Brandy de Jerez for consumption in Spain.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(5) Calvados</TD><TD align="left" class="gpotbl_cell">Apple brandy distilled exclusively in France in accordance with the laws and regulations of France regulating the manufacture of Calvados for consumption in France.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(6) Pisco</TD><TD align="left" class="gpotbl_cell">Grape brandy distilled in Peru or Chile in accordance with the laws and regulations of the country of manufacture of Pisco for consumption in the country of manufacture, including:
<br/>(i) “Pisco Perú” (or “Pisco Peru”), which is Pisco manufactured in Peru in accordance with the laws and regulations of Peru governing the manufacture of Pisco for consumption in that country; and
<br/>(ii) “Pisco Chileno” (or “Chilean Pisco”), which is Pisco manufactured in Chile in accordance with the laws and regulations of Chile governing the manufacture of Pisco for consumption in that country.


</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(7) Singani</TD><TD align="left" class="gpotbl_cell">Brandy derived from grape/s that is manufactured in Bolivia in accordance with the laws and regulations of Bolivia governing the manufacture of Singani for consumption in that country.


</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(8) Dried fruit brandy</TD><TD align="left" class="gpotbl_cell">Brandy that conforms to the standard for fruit brandy except that it has been derived from sound, dried fruit, or from the standard wine of such fruit. Brandy derived from raisins, or from raisin wine, must be designated “raisin brandy.” Dried fruit brandy, other than raisin brandy, must be designated by the word “brandy” qualified by the name of the dried fruit(s) from which made preceded by the word “dried”, for example, “dried apricot brandy.”
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(9) Lees brandy</TD><TD align="left" class="gpotbl_cell">Brandy distilled from the lees of standard grape or other fruit wine, and such brandy derived solely from grapes must be designated “grape lees brandy” or “lees brandy.” Lees brandy derived from fruit other than grapes must be designated as “lees brandy,” qualified by the name of the fruit from which such lees are derived, for example, “cherry lees brandy.”
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(10) Pomace brandy or Marc brandy</TD><TD align="left" class="gpotbl_cell">Brandy distilled from the skin and pulp of sound, ripe grapes or other fruit, after the withdrawal of the juice or wine therefrom. Such brandy derived solely from grape components must be designated “grape pomace brandy,” “grape marc brandy”, “pomace brandy,” or “mark brandy.” Grape pomace brandy may alternatively be designated as “grappa” or “grappa brandy.” Pomace or marc brandy derived from fruit other than grapes must be designated as “pomace brandy” or “marc brandy” qualified by the name of the fruit from which derived, for example, “apple pomace brandy” or “pear marc brandy.”
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(11) Residue brandy</TD><TD align="left" class="gpotbl_cell">Brandy distilled wholly or in part from the fermented residue of fruit or wine. Such brandy derived solely from grapes must be designated “grape residue brandy,” or “residue brandy.” Residue brandy, derived from fruit other than grapes, must be designated as “residue brandy” qualified by the name of the fruit from which derived, for example, “orange residue brandy.” Brandy distilled wholly or in part from residue materials which conforms to any of the standards set forth in paragraphs (b)(1) and (7) through (9) of this section may, regardless of such fact, be designated “residue brandy”, but the use of such designation shall be conclusive, precluding any later change of designation.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(12) Neutral brandy</TD><TD align="left" class="gpotbl_cell">Any type of brandy distilled at more than 85% alcohol by volume (170° proof) but less than 95% alcohol by volume. Such brandy derived solely from grapes must be designated “grape neutral brandy,” or “neutral brandy.” Other neutral brandies, must be designated in accordance with the rules for those types of brandy, and be qualified by the word “neutral”; for example, “neutral citrus residue brandy”.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(13) Substandard brandy</TD><TD align="left" class="gpotbl_cell">Any brandy:
<br/>(i) Distilled from fermented juice, mash, or wine having a volatile acidity, calculated as acetic acid and exclusive of sulfur dioxide, in excess of 0.20 gram per 100 cubic centimeters (20 degrees Celsius); measurements of volatile acidity must be calculated exclusive of water added to facilitate distillation.
<br/>(ii) Distilled from unsound, moldy, diseased, or decomposed juice, mash, wine, lees, pomace, or residue, or which shows in the finished product any taste, aroma, or characteristic associated with products distilled from such material.
<br/>(iii) Such brandy derived solely from grapes must be designated “substandard grape brandy,” or “substandard brandy.” Other substandard brandies must be designated in accordance with the rules for those types of brandy, and be qualified by the word “substandard”; for example, “substandard fig brandy”.</TD></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. TTB-176, 87 7579, Feb. 9, 2022, as amended by T.D. TTB-187, 88 FR 2228, Jan. 13, 2023]




</CITA>
</DIV8>


<DIV8 N="§ 5.146" NODE="27:1.0.1.1.3.9.25.6" TYPE="SECTION">
<HEAD>§ 5.146   Blended applejack.</HEAD>
<P>(a) <I>The class blended applejack.</I> “Blended applejack” is a mixture containing at least 20 percent on a proof gallon basis of apple brandy (applejack) that has been stored in oak barrels for not less than 2 years, and not more than 80 percent of neutral spirits on a proof gallon basis. Blended applejack must be bottled at not less than 40 percent alcohol by volume (80° proof).
</P>
<P>(b) <I>Label designation.</I> The label designation for blended applejack may be “blended applejack” or “applejack-a blend.”


</P>
</DIV8>


<DIV8 N="§ 5.147" NODE="27:1.0.1.1.3.9.25.7" TYPE="SECTION">
<HEAD>§ 5.147   Rum.</HEAD>
<P>(a) <I>The class rum.</I> “Rum” is distilled spirits that is distilled from the fermented juice of sugar cane, sugar cane syrup, sugar cane molasses, or other sugar cane by-products at less than 95 percent alcohol by volume (190° proof) having the taste, aroma, and characteristics generally attributed to rum, and bottled at not less than 40 percent alcohol by volume (80° proof); and also includes mixtures solely of such spirits. All rum may be designated as “rum” on the label, even if it also meets the standards for a specific type of rum.
</P>
<P>(b) <I>Types.</I> Paragraph (b)(1) of this section describes a specific type of rum and the standards for that type.
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Standards
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Cachaça</TD><TD align="left" class="gpotbl_cell">Rum that is a distinctive product of Brazil, manufactured in Brazil in compliance with the laws of Brazil regulating the manufacture of Cachaça for consumption in that country. The word “Cachaça” may be spelled with or without the diacritic mark (i.e., “Cachaça” or “Cachaca”). Cachaça may be designated as “Cachaça” or “rum” on labels.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) [Reserved]</TD><TD align="left" class="gpotbl_cell"></TD></TR></TABLE></DIV></DIV>
</DIV8>


<DIV8 N="§ 5.148" NODE="27:1.0.1.1.3.9.25.8" TYPE="SECTION">
<HEAD>§ 5.148   Agave spirits.</HEAD>
<P>(a) <I>The class agave spirits.</I> “Agave spirits” are distilled from a fermented mash, of which at least 51 percent is derived from plant species in the genus Agave and up to 49 percent is derived from other sugars. Agave spirits must be distilled at less than 95 percent alcohol by volume (190° proof) and bottled at or above 40 percent alcohol by volume (80° proof). Agave spirits may be stored in wood barrels. Agave spirits may contain added flavoring or coloring materials as authorized by § 5.155. This class also includes mixtures of agave spirits. Agave spirits that meet the standard of identity for “Tequila” or “Mezcal” may be designated as “agave spirits,” or as “Tequila” or “Mezcal”, as applicable.
</P>
<P>(b) <I>Types.</I> Paragraphs (b)(1) and (2) of this section describe the types of agave spirits and the rules for each type.
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Standards
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Tequila</TD><TD align="left" class="gpotbl_cell">An agave spirit that is a distinctive product of Mexico. Tequila must be made in Mexico, in compliance with the laws and regulations of Mexico governing the manufacture of Tequila for consumption in that country.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Mezcal</TD><TD align="left" class="gpotbl_cell">An agave spirit that is a distinctive product of Mexico. Mezcal must be made in Mexico, in compliance with the laws and regulations of Mexico governing the manufacture of Mezcal for consumption in that country.</TD></TR></TABLE></DIV></DIV>
</DIV8>


<DIV8 N="§ 5.149" NODE="27:1.0.1.1.3.9.25.9" TYPE="SECTION">
<HEAD>§ 5.149   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 5.150" NODE="27:1.0.1.1.3.9.25.10" TYPE="SECTION">
<HEAD>§ 5.150   Cordials and liqueurs.</HEAD>
<P>(a) <I>The class cordials and liqueurs.</I> Cordials and liqueurs are flavored distilled spirits that are made by mixing or redistilling distilled spirits with or over fruits, flowers, plants, or pure juices therefrom, or other natural flavoring materials, or with extracts derived from infusions, percolation, or maceration of such materials, and containing sugar (such as sucrose, fructose, dextrose, or levulose) in an amount of not less than 2.5 percent by weight of the finished product. Designations on labels may be “Cordial” or “Liqueur,” or, in the alternative, may be one of the type designations below. Cordials and liqueurs may not be designated as “straight”. The designation of a cordial or liqueur may include the word “dry” if sugar is less than 10 percent by weight of the finished product.
</P>
<P>(b) <I>Types.</I> Paragraph (b)(1) through (12) of this section list definitions and standards for optional type designations.
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Rule
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Sloe gin</TD><TD align="left" class="gpotbl_cell">A cordial or liqueur with the main characteristic flavor derived from sloe berries.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Rye liqueur, bourbon liqueur (or rye cordial or bourbon cordial)</TD><TD align="left" class="gpotbl_cell">Liqueurs, bottled at not less than 30 percent alcohol by volume, in which not less than 51 percent, on a proof gallon basis, of the distilled spirits used are, respectively, rye or bourbon whisky, straight rye or straight bourbon whisky, or whisky distilled from a rye or bourbon mash, and which possess a predominant characteristic rye or bourbon flavor derived from such whisky. Wine, if used, must be within the 2.5 percent limitation provided in § 5.155 for coloring, flavoring, and blending materials.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(3) Rock and rye; Rock and bourbon; Rock and brandy; Rock and rum</TD><TD align="left" class="gpotbl_cell">Liqueurs, bottled at not less than 24 percent alcohol by volume, in which, in the case of rock and rye and rock and bourbon, not less than 51 percent, on a proof gallon basis, of the distilled spirits used are, respectively, rye or bourbon whisky, straight rye or straight bourbon whisky, or whisky distilled from a rye or bourbon mash, and, in the case of rock and brandy and rock and rum, the distilled spirits used are all grape brandy or rum, respectively; containing rock candy or sugar syrup, with or without the addition of fruit, fruit juices, or other natural flavoring materials, and possessing, respectively, a predominant characteristic rye, bourbon, brandy, or rum flavor derived from the distilled spirits used. Wine, if used, must be within the 2.5 percent limitation provided in § 5.155 for harmless coloring, flavoring, and blending materials.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(4) Rum liqueur, gin liqueur, brandy liqueur</TD><TD align="left" class="gpotbl_cell">Liqueurs, bottled at not less than 30 percent alcohol by volume, in which the distilled spirits used are entirely rum, gin, or brandy, respectively, and which possess, respectively, a predominant characteristic rum, gin, or brandy flavor derived from the distilled spirits used. In the case of brandy liqueur, the type of brandy must be stated in accordance with paragraph (d) of this section, except that liqueurs made entirely with grape brandy may be designated simply as “brandy liqueur.” Wine, if used, must be within the 2.5 percent limitation provided for in § 5.155 for harmless coloring, flavoring, and blending materials.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(5) Amaretto</TD><TD align="left" class="gpotbl_cell">Almond flavored liqueur/cordial
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(6) Kummel</TD><TD align="left" class="gpotbl_cell">Caraway flavored liqueur/cordial
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(7) Ouzo, Anise, Anisette</TD><TD align="left" class="gpotbl_cell">Anise flavored liqueurs/cordials
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(8) Sambuca</TD><TD align="left" class="gpotbl_cell">Anise flavored liqueur. See § 5.154(b)(2) for designation rules for Sambuca not produced in Italy.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(9) Peppermint Schnapps</TD><TD align="left" class="gpotbl_cell">Peppermint flavored liqueur/cordial
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(10) Triple Sec and Curacao</TD><TD align="left" class="gpotbl_cell">Orange flavored liqueurs/cordials. Curacao may be preceded by the color of the liqueur/cordial (for example, Blue Curacao).
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(11) Crème de</TD><TD align="left" class="gpotbl_cell">A liqueur/cordial where the blank is filled in with the predominant flavor (for example, Crème de menthe is mint flavored liqueur/cordial.)
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(12) Goldwasser</TD><TD align="left" class="gpotbl_cell">Herb flavored liqueur/cordial and containing gold flakes. See § 5.154(b)(2) for designation rules for Goldwasser not made in Germany.</TD></TR></TABLE></DIV></DIV>
</DIV8>


<DIV8 N="§ 5.151" NODE="27:1.0.1.1.3.9.25.11" TYPE="SECTION">
<HEAD>§ 5.151   Flavored spirits.</HEAD>
<P>(a) <I>The class flavored spirits.</I> “Flavored spirits” are distilled spirits that are spirits conforming to one of the standards of identity set forth in §§ 5.142 through 5.148 to which have been added nonbeverage natural flavors, wine, or nonalcoholic natural flavoring materials, with or without the addition of sugar, and bottled at not less than 30 percent alcohol by volume (60° proof). The flavored spirits must be specifically designated by the single base spirit and one or more of the most predominant flavors (for example, “Pineapple Flavored Tequila” or “Cherry Vanilla Flavored Bourbon Whisky”). The base spirit must conform to the standard of identity for that spirit before the flavoring is added. Base spirits that are a distinctive product of a particular place must be manufactured in accordance with the laws and regulations of the country as designated in the base spirit's standard of identity. If the finished product contains more than 2.5 percent by volume of wine, the kinds and percentages by volume of wine must be stated as a part of the designation (whether the wine is added directly to the product or whether it is first mixed into an intermediate product), except that a flavored brandy may contain an additional 12.5 percent by volume of wine, without label disclosure, if the additional wine is derived from the particular fruit corresponding to the labeled flavor of the product.
</P>
<P>(b) [Reserved]


</P>
</DIV8>


<DIV8 N="§ 5.152" NODE="27:1.0.1.1.3.9.25.12" TYPE="SECTION">
<HEAD>§ 5.152   Imitations.</HEAD>
<P>(a) Imitations must bear, as a part of the designation thereof, the word “imitation” and include the following:
</P>
<P>(1) Any class or type of distilled spirits to which has been added coloring or flavoring material of such nature as to cause the resultant product to simulate any other class or type of distilled spirits;
</P>
<P>(2) Any class or type of distilled spirits (other than distilled spirits specialty products as defined in § 5.156) to which has been added flavors considered to be artificial or imitation.
</P>
<P>(3) Any class or type of distilled spirits (except cordials, liqueurs and specialties marketed under labels which do not indicate or imply that a particular class or type of distilled spirits was used in the manufacture thereof) to which has been added any whisky essence, brandy essence, rum essence, or similar essence or extract which simulates or enhances, or is used by the trade or in the particular product to simulate or enhance, the characteristics of any class or type of distilled spirits;
</P>
<P>(4) Any type of whisky to which beading oil has been added;
</P>
<P>(5) Any rum to which neutral spirits or distilled spirits other than rum have been added;
</P>
<P>(6) Any brandy made from distilling material to which has been added any amount of sugar other than the kind and amount of sugar expressly authorized in the production of standard wine; and
</P>
<P>(7) Any brandy to which neutral spirits or distilled spirits other than brandy have been added, except that this provision shall not apply to any product conforming to the standard of identity for blended applejack.
</P>
<P>(b) If any of the standards set forth in paragraphs (a)(1) through (7) of this section apply, the “Imitation” class designation must be used in front of the appropriate class as part of the designation (for example, Imitation Whisky).


</P>
</DIV8>


<DIV8 N="§ 5.153" NODE="27:1.0.1.1.3.9.25.13" TYPE="SECTION">
<HEAD>§ 5.153   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 5.154" NODE="27:1.0.1.1.3.9.25.14" TYPE="SECTION">
<HEAD>§ 5.154   Rules for geographical designations.</HEAD>
<P>(a) <I>Geographical designations.</I> (1) Geographical names for distinctive types of distilled spirits (other than names found by the appropriate TTB officer under paragraph (a)(2) of this section to have become generic) may not be applied to distilled spirits produced in any other place than the particular region indicated by the name, unless:
</P>
<P>(i) There appears the word “type” or the word “American” or some other adjective indicating the true place of production, in lettering substantially as conspicuous as such name; and
</P>
<P>(ii) The distilled spirits to which the name is applied conform to the distilled spirits of that particular region. The following are examples of distinctive types of distilled spirits with geographical names that have not become generic: Eau de Vie de Dantzig (Danziger Goldwasser), Ojen, Swedish punch. Geographical names for distinctive types of distilled spirits may be used to designate only distilled spirits conforming to the standard of identity, if any, for such type specified in this section, or if no such standard is so specified, then in accordance with the trade understanding of that distinctive type.
</P>
<P>(2) Only such geographical names for distilled spirits as the appropriate TTB officer finds have by usage and common knowledge lost their geographical significance to such extent that they have become generic shall be deemed to have become generic. Examples are London dry gin, Geneva (Hollands) gin.
</P>
<P>(3) Geographical names that are not names for distinctive types of distilled spirits, and that have not become generic, shall not be applied to distilled spirits produced in any other place than the particular place or region indicated in the name. Examples are Armagnac, Greek brandy, Jamaica rum, Puerto Rico rum, Demerara rum and Andong Soju.
</P>
<P>(b) <I>Products without geographical designations but distinctive of a particular place.</I> (1) The whiskies of the types specified in paragraphs (c)(2) through (6) and (10) through (14) of § 5.143 are distinctive products of the United States and if produced in a foreign country shall be designated by the applicable designation prescribed in such paragraphs, together with the words “American type” or the words “produced (distilled, blended) in ____”, the blank to be filled in with the name of the foreign country: <I>Provided,</I> That the word “bourbon” shall not be used to describe any whisky or whisky-based distilled spirits not produced in the United States. If whisky of any of these types is composed in part of whisky or whiskies produced in a foreign country there shall be stated, on the brand label, the percentage of such whisky and the country of origin thereof.
</P>
<P>(2) The name for other distilled spirits which are distinctive products of a particular place or country (such as Habanero), may not be given to the product of any other place or country unless the designation for such product includes the word “type” or an adjective such as “American”, or the like, clearly indicating the true place of production. The provision for place of production shall not apply to designations which by usage and common knowledge have lost their geographical significance to such an extent that the appropriate TTB officer finds they have become generic. Examples of generic designations are Slivovitz, Zubrovka, Aquavit, Arrack, and Kirschwasser.


</P>
</DIV8>


<DIV8 N="§ 5.155" NODE="27:1.0.1.1.3.9.25.15" TYPE="SECTION">
<HEAD>§ 5.155   Alteration of class and type.</HEAD>
<P>(a) <I>Definitions</I>—(1) <I>Coloring, flavoring, or blending material.</I> For the purposes of this section, the term “coloring, flavoring, or blending material” means a harmless substance that is an essential component of the class or type of distilled spirits to which it is added; or a harmless substance, such as caramel, straight malt or straight rye malt whiskies, fruit juices, sugar, infusion of oak chips when approved by the Administrator, or wine, that is not an essential component part of the distilled spirits product to which it is added but which is customarily employed in the product in accordance with established trade usage.
</P>
<P>(2) <I>Certified color.</I> For purposes of this section, the term “certified color” means a color additive that is required to undergo batch certification in accordance with part 74 or part 82 of the Food and Drug Administration regulations (21 CFR parts 74 and 82). An example of a certified color is FD&amp;C Blue No. 2.
</P>
<P>(b) <I>Allowable additions.</I> Except as provided in paragraph (c) of this section, the following may be added to distilled spirits without changing the class or type designation:
</P>
<P>(1) Coloring, flavoring, and blending materials that are essential components of the class or type of distilled spirits to which added;
</P>
<P>(2) Coloring, flavoring, and blending materials that are not essential component parts of the distilled spirits to which added, provided that such coloring, flavoring, or blending materials do not total more than 2.5 percent by volume of the finished product; and
</P>
<P>(3) Wine, when added to Canadian whisky in Canada in accordance with the laws and regulations of Canada governing the manufacture of Canadian whisky.
</P>
<P>(c) <I>Special rules.</I> The addition of the following will require a redesignation of the class or type of the distilled spirits product to which added:
</P>
<P>(1) Coloring, flavoring, or blending materials that are not essential component parts of the class or type of distilled spirits to which they are added, if such coloring, flavoring, and blending materials total more than 2.5 percent by volume of the finished product;
</P>
<P>(2) Any material, other than caramel, infusion of oak chips, and sugar, added to Cognac brandy;
</P>
<P>(3) Any material whatsoever added to neutral spirits or straight whisky, except that vodka may be treated with sugar, in an amount not to exceed two grams per liter, and with citric acid, in an amount not to exceed one gram per liter;
</P>
<P>(4) Certified colors, carmine, or cochineal extract;
</P>
<P>(5) Any material that would render the product to which it is added an imitation, as defined in § 5.152; or
</P>
<P>(6) For products that are required to be stored in oak barrels in accordance with a standard of identity, the storing of the product in an additional barrel made of another type of wood.
</P>
<P>(d) <I>Extractions from distilled spirits.</I> The removal of any constituents from a distilled spirits product to such an extent that the product no longer possesses the taste, aroma, and characteristics generally attributed to that class or type of distilled spirits will alter the class or type of the product, and the resulting product must be redesignated appropriately. In addition, in the case of straight whisky, the removal of more than 15 percent of the fixed acids, volatile acids, esters, soluble solids, or higher alcohols, or the removal of more than 25 percent of the soluble color, constitutes an alteration of the class or type of the product and requires a redesignation of the product.
</P>
<P>(e) <I>Exceptions.</I> Nothing in this section has the effect of modifying the standards of identity specified in § 5.150 for cordials and liqueurs, and in § 5.151 for flavored spirits, or of authorizing any product defined in § 5.152 to be designated as other than an imitation.


</P>
</DIV8>


<DIV8 N="§ 5.156" NODE="27:1.0.1.1.3.9.25.16" TYPE="SECTION">
<HEAD>§ 5.156   Distilled spirits specialty products.</HEAD>
<P>(a) <I>General.</I> Distilled spirits that do not meet one of the other standards of identity specified in this subpart are distilled spirits specialty products and must be designated in accordance with trade and consumer understanding, or, if no such understanding exists, with a distinctive or fanciful name (which may be the name of a cocktail) appearing in the same field of vision as a statement of composition. The statement of composition and the distinctive or fanciful name serve as the class and type designation for these products. The statement of composition must follow the rules found in § 5.166. A product may not bear a designation which indicates it contains a class or type of distilled spirits unless the distilled spirits therein conform to such class and type.
</P>
<P>(b) <I>Products designated in accordance with trade and consumer understanding.</I> Products may be designated in accordance with trade and consumer understanding without a statement of composition if the appropriate TTB officer has determined that there is such understanding.


</P>
</DIV8>


<DIV8 N="§§ 5.157-5.165" NODE="27:1.0.1.1.3.9.25.17" TYPE="SECTION">
<HEAD>§§ 5.157-5.165   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 5.166" NODE="27:1.0.1.1.3.9.25.18" TYPE="SECTION">
<HEAD>§ 5.166   Statements of composition.</HEAD>
<P>(a) <I>Rules for the statement of composition.</I> When a statement of composition is required as part of a designation for a distilled spirits specialty product, the statement must be truthful and adequate.
</P>
<P>(b) <I>Cocktails.</I> A statement of the classes and types of distilled spirits used in the manufacture thereof will be deemed a sufficient statement of composition in the case of highballs, cocktails, and similar prepared specialties when the designation adequately indicates to the consumer the general character of the product.


</P>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.3.10" TYPE="SUBPART">
<HEAD>Subpart J—Formulas</HEAD>


<DIV8 N="§ 5.191" NODE="27:1.0.1.1.3.10.25.1" TYPE="SECTION">
<HEAD>§ 5.191   Application.</HEAD>
<P>The requirements of this subpart apply to the following persons:
</P>
<P>(a) Proprietors of distilled spirits plants qualified as processors under part 19 of this chapter;
</P>
<P>(b) Persons in the Commonwealth of Puerto Rico who manufacture distilled spirits products for shipment to the United States. However, the filing of a formula for approval by TTB is only required for those products that will be shipped to the United States; and
</P>
<P>(c) Persons who ship Virgin Islands distilled spirits products into the United States.


</P>
</DIV8>


<DIV8 N="§ 5.192" NODE="27:1.0.1.1.3.10.25.2" TYPE="SECTION">
<HEAD>§ 5.192   Formula requirements.</HEAD>
<P>(a) <I>General.</I> An approved formula is required to blend, mix, purify, refine, compound, or treat distilled spirits in a manner that results in a change of class or type of the spirits.
</P>
<P>(b) <I>Preparation and submission.</I> In order to obtain formula approval, a person listed in § 5.191 must file a formula in accordance with the instructions on TTB Form 5100.51, Formula and Process for Domestic and Imported Alcohol Beverages (if filing by paper) or on Formulas Online, if filing electronically. When a product will be made or processed under the same formula at more than one location operated by the distiller or processor, the distiller or processor must identify on the form each place of production or processing by name and address, and by permit number, if applicable, and must ensure that a copy of the approved formula is maintained at each location.
</P>
<P>(c) <I>Existing approvals.</I> Any approval of a formula will remain in effect until revoked, superseded, or voluntarily surrendered, and if the formula is revoked, superseded, or voluntarily surrendered, any existing qualifying statements on such approval as to the rate of tax or the limited use of alcoholic flavors will be made obsolete.
</P>
<P>(d) <I>Change in formula.</I> Any change in an approved formula requires the filing of a new TTB Form 5100.51 for approval of the changed formula. After a changed formula is approved, the filer must surrender the original formula approval to the appropriate TTB officer.


</P>
</DIV8>


<DIV8 N="§ 5.193" NODE="27:1.0.1.1.3.10.25.3" TYPE="SECTION">
<HEAD>§ 5.193   Operations requiring formulas.</HEAD>
<P>The following operations change the class or type of distilled spirits and therefore require formula approval under § 5.192: <I>Provided,</I> That, TTB may exempt categories of distilled spirits products from specific regulatory formula requirements upon a finding that the filing of a formula is no longer necessary in order to properly classify the finished product:
</P>
<P>(a) The compounding of distilled spirits through the mixing of a distilled spirits product with any coloring or flavoring material, wine, or other material containing distilled spirits, unless TTB has issued public guidance recognizing that such ingredients are harmless coloring, flavoring or blending materials that do not alter the class or type pursuant to the standards set forth in § 5.155;
</P>
<P>(b) The manufacture of an intermediate product to be used exclusively in other distilled spirits products on bonded premises;
</P>
<P>(c) Any filtering or stabilizing process that results in a distilled spirits product's no longer possessing the taste, aroma, and characteristics generally attributed to the class or type of distilled spirits before the filtering or stabilizing, or, in the case of straight whisky, that results in the removal of more than 15 percent of the fixed acids, volatile acids, esters, soluble solids, or higher alcohols, or more than 25 percent of the soluble color;
</P>
<P>(d) The mingling of spirits that differ in class or in type of materials from which made;
</P>
<P>(e) The mingling of distilled spirits that were stored in charred cooperage with distilled spirits that were stored in plain or reused cooperage, or the mixing of distilled spirits that have been treated with wood chips with distilled spirits not so treated, or the mixing of distilled spirits that have been subjected to any treatment which changes their character with distilled spirits not subjected to such treatment, unless it is determined by the appropriate TTB officer in each of these cases that the composition of the distilled spirits is the same notwithstanding the storage in different kinds of cooperage or the treatment of a portion of the spirits;
</P>
<P>(f) Except when authorized for production or storage operations by part 19 of this chapter, the use of any physical or chemical process or any apparatus that accelerates the maturing of the distilled spirits;
</P>
<P>(g) The steeping or soaking of plant materials, such as fruits, berries, aromatic herbs, roots, or seeds, in distilled spirits or wines at a distilled spirits plant;
</P>
<P>(h) The artificial carbonating of distilled spirits;
</P>
<P>(i) In Puerto Rico, the blending of distilled spirits with any liquors manufactured outside Puerto Rico;
</P>
<P>(j) The production of gin by:
</P>
<P>(1) Redistillation, over juniper berries and other natural aromatics or over the extracted oils of such materials, of spirits distilled at or above 190 degrees of proof that are free from impurities, including such spirits recovered by redistillation of imperfect gin spirits; or
</P>
<P>(2) Mixing gin with other distilled spirits;
</P>
<P>(k) The treatment of gin by:
</P>
<P>(1) The addition or abstraction of any substance or material other than pure water after redistillation in a manner that would change its class and type designation; or
</P>
<P>(2) The addition of any substance or material other than juniper berries or other natural aromatics or the extracted oils of such materials, or the addition of pure water, before or during redistillation, in a manner that would change its class and type designation; and
</P>
<P>(l) The recovery of spirits by redistillation from distilled spirits products containing other alcoholic ingredients and from spirits that have previously been entered for deposit. However, no formula approval is required for spirits redistilled into any type of neutral spirits other than vodka or for spirits redistilled at less than 190 degrees of proof that lack the taste, aroma and other characteristics generally attributed to whisky, brandy, rum, or gin and that are designated as “Spirits” preceded or followed by a word or phrase descriptive of the material from which distilled. Such spirits may not be designated “Spirits Grain” or “Grain Spirits” on any label.


</P>
</DIV8>


<DIV8 N="§ 5.194" NODE="27:1.0.1.1.3.10.25.4" TYPE="SECTION">
<HEAD>§ 5.194   Adoption of predecessor's formulas.</HEAD>
<P>A successor to a person listed in § 5.191 may adopt a predecessor's approved formulas by filing an application with the appropriate TTB officer. The application must include a list of the formulas for adoption and must identify each formula by formula number, name of product, and date of approval. The application must clearly show that the predecessor has authorized the use of the previously approved formulas by the successor.


</P>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.3.11" TYPE="SUBPART">
<HEAD>Subpart K—Standards of Fill and Authorized Container Sizes.</HEAD>


<DIV8 N="§ 5.201" NODE="27:1.0.1.1.3.11.25.1" TYPE="SECTION">
<HEAD>§ 5.201   General.</HEAD>
<P>No person engaged in business as a distiller, rectifier (processor), importer, wholesaler, bottler, or warehouseman and bottler, directly or indirectly, or through an affiliate, may sell or ship or deliver for sale or shipment in interstate or foreign commerce, or otherwise introduce in interstate or foreign commerce, or receive therein, or remove from customs custody for consumption, any distilled spirits in containers, unless the distilled spirits are bottled in conformity with §§ 5.202 and 5.203.


</P>
</DIV8>


<DIV8 N="§ 5.202" NODE="27:1.0.1.1.3.11.25.2" TYPE="SECTION">
<HEAD>§ 5.202   Standard liquor containers.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (d) of this section and in § 5.205, distilled spirits must be bottled in standard liquor containers, as defined in this paragraph. A standard liquor container is a container that is made, formed, and filled in such a way that it does not mislead purchasers as regards its contents. An individual carton or other container of a bottle may not be so designed as to mislead purchasers as to the size of the bottle it contains.
</P>
<P>(b) <I>Headspace.</I> A filled liquor container of a capacity of 200 milliliters (6.8 fl. oz.) or more is deemed to mislead the purchaser if it has a headspace in excess of 8 percent of the total capacity of the container after closure.
</P>
<P>(c) <I>Design.</I> Regardless of the correctness of the stated net contents, a liquor container is deemed to mislead the purchaser if it is made and formed in such a way that its actual capacity is substantially less than the capacity it appears to have upon visual examination under ordinary conditions of purchase or use.
</P>
<P>(d) <I>Exception for distinctive liquor bottles.</I> The provisions of paragraphs (b) and (c) of this section do not apply to liquor bottles for which a distinctive liquor bottle approval has been issued pursuant to § 5.205.




</P>
</DIV8>


<DIV8 N="§ 5.203" NODE="27:1.0.1.1.3.11.25.3" TYPE="SECTION">
<HEAD>§ 5.203   Standards of fill (container sizes).</HEAD>
<P>(a) <I>Authorized standards of fill.</I> The following metric standards of fill are authorized for distilled spirits, whether domestically bottled or imported:
</P>
<P>(1) 3.75 Liters.
</P>
<P>(2) 3 Liters.
</P>
<P>(3) 2 Liters.
</P>
<P>(4) 1.8 Liters.
</P>
<P>(5) 1.75 Liters.
</P>
<P>(6) 1.5 Liters.
</P>
<P>(7) 1.00 Liter.
</P>
<P>(8) 945 mL.
</P>
<P>(9) 900 mL.
</P>
<P>(10) 750 mL.
</P>
<P>(11) 720 mL.
</P>
<P>(12) 710 mL.
</P>
<P>(13) 700 mL.
</P>
<P>(14) 570 mL.
</P>
<P>(15) 500 mL.
</P>
<P>(16) 475 mL.
</P>
<P>(17) 375 mL.
</P>
<P>(18) 355 mL.
</P>
<P>(19) 350 mL.
</P>
<P>(20) 331 mL.
</P>
<P>(21) 250 mL.
</P>
<P>(22) 200 mL.
</P>
<P>(23) 187 mL.
</P>
<P>(24) 100 mL.
</P>
<P>(25) 50 mL.
</P>
<P>(b) <I>Spirits bottled using outdated standards.</I> Paragraph (a) of this section does not apply to:
</P>
<P>(1) Imported distilled spirits in the original containers in which entered into customs custody prior to January 1, 1980; or
</P>
<P>(2) Imported distilled spirits bottled or packed prior to January 1, 1980, and certified as to such in a statement signed by an official duly authorized by the appropriate foreign government.
</P>
<CITA TYPE="N">[T.D. TTB-200, 90 FR 1876, Jan. 10, 2025]










</CITA>
</DIV8>


<DIV8 N="§ 5.204" NODE="27:1.0.1.1.3.11.25.4" TYPE="SECTION">
<HEAD>§ 5.204   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 5.205" NODE="27:1.0.1.1.3.11.25.5" TYPE="SECTION">
<HEAD>§ 5.205   Distinctive liquor bottle approval.</HEAD>
<P>(a) <I>General.</I> A bottler or importer of distilled spirits in distinctive liquor bottles may apply for a distinctive liquor bottle approval from the appropriate TTB officer. The distinctive liquor bottle approval will provide an exemption only from those requirements that are specified in paragraph (b) of this section. A distinctive liquor bottle is a container that is not the customary shape and that may obscure the net contents of the distilled spirits.
</P>
<P>(b) <I>Exemptions provided by the distinctive liquor bottle approval.</I> The distinctive liquor bottle approval issued pursuant to this section will provide that:
</P>
<P>(1) The provisions of § 5.202(b) and (c) do not apply to the liquor containers for which the distinctive liquor bottle approval has been issued; and
</P>
<P>(2) The information required to appear in the same field of vision pursuant to § 5.63(a) may appear elsewhere on a distinctive liquor bottle for which the distinctive liquor bottle approval has been issued, if the design of the container precludes the presentation of all mandatory information in the same field of vision.
</P>
<P>(c) <I>How to apply.</I> A bottler or importer of distilled spirits in distinctive liquor bottles may apply for a distinctive liquor bottle approval as part of the application for a certificate of label approval (COLA).


</P>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.3.12" TYPE="SUBPART">
<HEAD>Subpart L [Reserved]</HEAD>


<DIV8 N="§ 5.211" NODE="27:1.0.1.1.3.12.25.1" TYPE="SECTION">
<HEAD>§ 5.211   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 5.212" NODE="27:1.0.1.1.3.12.25.2" TYPE="SECTION">
<HEAD>§ 5.212   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.3.13" TYPE="SUBPART">
<HEAD>Subpart M—Penalties and Compromise of Liability</HEAD>


<DIV8 N="§ 5.221" NODE="27:1.0.1.1.3.13.25.1" TYPE="SECTION">
<HEAD>§ 5.221   Criminal penalties.</HEAD>
<P>A violation of the labeling provisions of 27 U.S.C. 205(e) is punishable as a misdemeanor. See 27 U.S.C. 207 for the statutory provisions relating to criminal penalties, consent decrees, and injunctions.


</P>
</DIV8>


<DIV8 N="§ 5.222" NODE="27:1.0.1.1.3.13.25.2" TYPE="SECTION">
<HEAD>§ 5.222   Conditions of basic permit.</HEAD>
<P>A basic permit is conditioned upon compliance with the requirements of 27 U.S.C. 205, including the labeling and advertising provisions of this part. A willful violation of the conditions of a basic permit provides grounds for the revocation or suspension of the permit, as applicable, as set forth in part 1 of this chapter.


</P>
</DIV8>


<DIV8 N="§ 5.223" NODE="27:1.0.1.1.3.13.25.3" TYPE="SECTION">
<HEAD>§ 5.223   Compromise.</HEAD>
<P>Pursuant to 27 U.S.C. 207, the appropriate TTB officer is authorized, with respect to any violation of 27 U.S.C. 205, to compromise the liability arising with respect to such violation upon payment of a sum not in excess of $500 for each offense, to be collected by the appropriate TTB officer and to be paid into the Treasury as miscellaneous receipts.


</P>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.3.14" TYPE="SUBPART">
<HEAD>Subpart N—Advertising of Distilled Spirits</HEAD>


<DIV8 N="§ 5.231" NODE="27:1.0.1.1.3.14.25.1" TYPE="SECTION">
<HEAD>§ 5.231   Application.</HEAD>
<P>No person engaged in business as a distiller, rectifier (processor), importer, wholesaler, bottler, or warehouseman and bottler of distilled spirits, directly or indirectly or through an affiliate, shall publish or disseminate or cause to be published or disseminated by radio or television broadcast, or in any newspaper, periodical, or any publication, by any sign or outdoor advertisement, or by electronic or internet media, or any other printed or graphic matter, any advertisement of distilled spirits, if such advertising is in, or is calculated to induce sales in, interstate or foreign commerce, or is disseminated by mail, unless such advertisement is in conformity with this subpart: <I>Provided,</I> That such sections shall not apply to outdoor advertising in place on September 7, 1984, but shall apply upon replacement, restoration, or renovation of any such advertising; <I>and provided further,</I> that such sections shall not apply to a retailer or the publisher of any newspaper, periodical, or other publication, or radio or television or internet broadcast, unless such retailer or publisher or broadcaster is engaged in business as a distiller, rectifier (processor), importer, wholesaler, or warehouseman and bottler of distilled spirits, directly or indirectly, or through an affiliate.


</P>
</DIV8>


<DIV8 N="§ 5.232" NODE="27:1.0.1.1.3.14.25.2" TYPE="SECTION">
<HEAD>§ 5.232   Definition.</HEAD>
<P>As used in this subpart, the term “advertisement” “or advertising” includes any written or verbal statement, illustration, or depiction which is in, or calculated to induce sales in, interstate or foreign commerce, or is disseminated by mail, whether it appears in a newspaper, magazine, trade booklet, menu, wine card, leaflet, circular, mailer, book insert, catalog, promotional material, sales pamphlet, internet or other electronic site or social network, or in any written, printed, graphic, or other matter (such as hang tags) accompanying, but not firmly affixed to, the bottle, representations made on shipping cases or in any billboard, sign, other outdoor display, public transit card, other periodical literature, publication, or in a radio or television broadcast, or in any other media; except that such term shall not include:
</P>
<P>(a) Any label affixed to any bottle of distilled spirits; or any individual covering, carton, or other container of the bottle which constitute a part of the labeling under this part.
</P>
<P>(b) Any editorial or other reading material (such as a news release) in any periodical or publication or newspaper for the publication of which no money or valuable consideration or thing of value is paid or promised, directly or indirectly, by any permittee, and which is not written by or at the direction of the permittee.


</P>
</DIV8>


<DIV8 N="§ 5.233" NODE="27:1.0.1.1.3.14.25.3" TYPE="SECTION">
<HEAD>§ 5.233   Mandatory statements.</HEAD>
<P>(a) <I>Responsible advertiser.</I> The advertisement must display the responsible advertiser's name, city, and State or the name and other contact information (such as, telephone number, website, or email address) where the responsible advertiser may be contacted.
</P>
<P>(b) <I>Class and type.</I> The advertisement shall contain a conspicuous statement of the class to which the product belongs and the type thereof corresponding with the statement of class and type which is required to appear on the label of the product.
</P>
<P>(c) <I>Alcohol content</I>—(1) <I>Mandatory statement.</I> The alcohol content for distilled spirits must be stated as a percentage of alcohol by volume, in the manner set forth in § 5.65 of this chapter for labels. Products that contain a significant amount of material, such as solid fruit, that may absorb spirits after bottling must state the alcohol content at the time of bottling as follows: “Bottled at ____ percent-alcohol-by-volume.”
</P>
<P>(2) <I>Optional statement.</I> In addition, the advertisement may also state the alcohol content in degrees of proof if this information appears in the same field of vision as the statement expressed in percent-alcohol-by-volume.
</P>
<P>(d) <I>Percentage of neutral spirits and name of commodity.</I>
</P>
<P>(1) In the case of distilled spirits (other than cordials, liqueurs, flavored neutral spirits, including flavored vodka, and distilled spirits specialty products) produced by blending or rectification, if neutral spirits have been used in the production thereof, there shall be stated the percentage of neutral spirits so used and the name of the commodity from which such neutral spirits have been distilled. The statement of percentage and the name of the commodity shall be made in substantially the following form: “____% neutral spirits distilled from ____ (insert grain, cane products, or fruit, or other products as appropriate)”; or ____% neutral spirits (vodka) distilled from ____ (insert grain, cane product, fruit, or other commodity, as appropriate)”; or “____% grain (cane products), (fruit) neutral spirits”; or “____% grain spirits”. The statement used under this paragraph must be identical to that on the label of distilled spirits to which the advertisement refers.
</P>
<P>(2) In the case of gin manufactured by a process of continuous distillation or in the case of neutral spirits, there shall be stated the name of the commodity from which such gin or neutral spirits were distilled. The statement of the name of the commodity shall be made in substantially the following form: “Distilled from grain”, or “Distilled from cane products”, or “Distilled from fruit.” The statement used under this paragraph must be identical to that on the label of distilled spirits to which the advertisement refers.
</P>
<P>(e) <I>Exception.</I> (1) If an advertisement refers to a general distilled spirits line or all of the distilled spirits products of one company, whether by the company name or by the brand name common to all the distilled spirits in the line, the only mandatory information necessary is the responsible advertiser's name, city, and State or the name and other contact information (such as telephone number, website, or email address) where the responsible advertiser may be contacted. This exception does not apply where only one type of distilled spirits is marketed under the specific brand name advertised.
</P>
<P>(2) On consumer specialty items (such as T-shirts, hats, bumper stickers, or refrigerator magnets), the only information necessary is the company name of the responsible advertiser or brand name of the product.


</P>
</DIV8>


<DIV8 N="§ 5.234" NODE="27:1.0.1.1.3.14.25.4" TYPE="SECTION">
<HEAD>§ 5.234   Legibility of mandatory information.</HEAD>
<P>(a) Statements required under this subpart to appear in any written, printed, or graphic advertisement shall be in lettering or type size sufficient to be conspicuous and readily legible.
</P>
<P>(b) In the case of signs, billboards, and displays the name and address or name and other contact information (such as, telephone number, website, or email) of the permittee responsible for the advertisement may appear in type size of lettering smaller than the other mandatory information, provided such information can be ascertained upon closer examination of the sign or billboard.
</P>
<P>(c) Mandatory information shall be so stated as to be clearly a part of the advertisement and shall not be separated in any manner from the remainder of the advertisement.
</P>
<P>(d) Mandatory information for two or more products shall not be stated unless clearly separated.
</P>
<P>(e) Mandatory information shall be so stated in both the print and audio-visual media that it will be readily apparent to the persons viewing the advertisement.


</P>
</DIV8>


<DIV8 N="§ 5.235" NODE="27:1.0.1.1.3.14.25.5" TYPE="SECTION">
<HEAD>§ 5.235   Prohibited practices.</HEAD>
<P>(a) <I>Restrictions.</I> An advertisement of distilled spirits shall not contain:
</P>
<P>(1) Any statement that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific or technical matter tends to create a misleading impression.
</P>
<P>(2) Any false or misleading statement that explicitly or implicitly disparages a competitor's product. This does not prevent truthful and accurate comparisons between products (such as, “Our liqueur contains more strawberries than Brand X”) or statements of opinion (such as, “We think our rum tastes better than any other distilled spirits on the market”).
</P>
<P>(3) Any statement, design, device, or representation which is obscene or indecent.
</P>
<P>(4) Any statement, design, device, or representation of or relating to analyses, standards or tests, irrespective of falsity, which the appropriate TTB officer finds to be likely to mislead the consumer.
</P>
<P>(5) Any statement, design, device, or representation of or relating to any guarantee, irrespective of falsity, which the appropriate TTB officer finds to be likely to mislead the consumer. Money-back guarantees are not prohibited.
</P>
<P>(6) The words “bond”, “bonded”, “bottled in bond”, “aged in bond”, or phrases containing these or synonymous terms, unless such words or phrases appear, pursuant to § 5.88, on labels of the distilled spirits advertised, and are stated in the advertisement in the manner and form in which they are permitted to appear on the label.
</P>
<P>(7) The word “pure” unless:
</P>
<P>(i) It refers to a particular ingredient used in the production of the distilled spirits, and is a truthful representation about the ingredient; or
</P>
<P>(ii) It is part of the bona fide name of a permittee or retailer for whom the distilled spirits are bottled; or
</P>
<P>(iii) It is part of the bona fide name of the permittee who bottled the distilled spirits.
</P>
<P>(8) The words “double distilled” or “triple distilled” or any similar terms unless it is a truthful statement of fact. For purposes of this paragraph only, a distillation means a single run through a pot still or a single run through a column of a column (reflux) still. The number of distillations may be understated but may not be overstated.
</P>
<P>(b) <I>Statements inconsistent with labeling.</I> (1) Advertisements shall not contain any statement concerning a brand or lot of distilled spirits that is inconsistent with any statement on the labeling thereof.
</P>
<P>(2) Any label depicted on a container in an advertisement shall be a reproduction of an approved label.
</P>
<P>(c) <I>Statement of age.</I> The advertisement shall not contain any statement, design, or device directly or by implication concerning age or maturity of any brand or lot of distilled spirits unless a statement of age appears on the label of the advertised product. When any such statement, design, or device concerning age or maturity is contained in any advertisement, it shall include (in direct conjunction therewith and with substantially equal conspicuousness) all parts of the statement, if any, concerning age and percentages required to be made on the label under the provisions of § 5.74. An advertisement for any whisky or brandy (except immature brandies, pomace brandy, marc brandy, Pisco brandy, Singani brandy, and grappa brandy) which is not required to bear a statement of age on the label or an advertisement for any rum or agave spirits, which has been aged for not less than 4 years may, however, contain inconspicuous, general representations as to age, maturity or other similar representations even though a specific age statement does not appear on the label of the advertised product and in the advertisement itself. 
</P>
<P>(d) <I>Health-related statements</I>—(1) <I>Definitions.</I> When used in this paragraph (d), terms are defined as follows:
</P>
<P>(i) <I>Health-related statement</I> means any statement related to health and includes statements of a curative or therapeutic nature that, expressly or by implication, suggest a relationship between the consumption of alcohol, distilled spirits, or any substance found within the distilled spirits, and health benefits or effects on health. The term includes both specific health claims and general references to alleged health benefits or effects on health associated with the consumption of alcohol, distilled spirits, or any substance found within the distilled spirits, as well as health-related directional statements. The term also includes statements and claims that imply that a physical or psychological sensation results from consuming the distilled spirits, as well as statements and claims of nutritional value (<I>e.g.,</I> statements of vitamin content). Statements concerning caloric, carbohydrate, protein, and fat content do not constitute nutritional claims about the product.
</P>
<P>(ii) <I>Specific health claim</I> is a type of health-related statement that, expressly or by implication, characterizes the relationship of the distilled spirits, alcohol, or any substance found within the distilled spirits, to a disease or health-related condition. Implied specific health claims include statements, symbols, vignettes, or other forms of communication that suggest, within the context in which they are presented, that a relationship exists between distilled spirits, alcohol, or any substance found within the distilled spirits, and a disease or health-related condition.
</P>
<P>(iii) <I>Health-related directional statement</I> is a type of health-related statement that directs or refers consumers to a third party or other source for information regarding the effects on health of distilled spirits or alcohol consumption.
</P>
<P>(2) <I>Rules for advertising</I>—(i) <I>Health-related statements.</I> In general, advertisements may not contain any health-related statement that is untrue in any particular or tends to create a misleading impression as to the effects on health of alcohol consumption. TTB will evaluate such statements on a case-by-case basis and may require as part of the health-related statement a disclaimer or some other qualifying statement to dispel any misleading impression conveyed by the health-related statement. Such disclaimer or other qualifying statement must appear as prominent as the health-related statement.
</P>
<P>(ii) <I>Specific health claims.</I> A specific health claim will not be considered misleading if it is truthful and adequately substantiated by scientific or medical evidence; sufficiently detailed and qualified with respect to the categories of individuals to whom the claim applies; adequately discloses the health risks associated with both moderate and heavier levels of alcohol consumption; and outlines the categories of individuals for whom any levels of alcohol consumption may cause health risks. This information must appear as part of the specific health claim and in a manner as prominent as the specific health claim.
</P>
<P>(iii) <I>Health-related directional statements.</I> A statement that directs consumers to a third party or other source for information regarding the effects on health of distilled spirits or alcohol consumption is presumed misleading unless it—
</P>
<P>(A) Directs consumers in a neutral or other non-misleading manner to a third party or other source for balanced information regarding the effects on health of distilled spirits or alcohol consumption; and
</P>
<P>(B)(<I>1</I>) Includes as part of the health-related directional statement, and in a manner as prominent as the health-related directional statement, the following disclaimer: “This statement should not encourage you to drink or increase your alcohol consumption for health reasons;” or
</P>
<P>(<I>2</I>) Includes as part of the health-related directional statement, and in a manner as prominent as the health-related directional statement, some other qualifying statement that the appropriate TTB officer finds is sufficient to dispel any misleading impression conveyed by the health-related directional statement.
</P>
<P>(e) <I>Place of origin.</I> The advertisement shall not represent that the distilled spirits were manufactured in or imported from a place or country other than that of their actual origin, or were produced or processed by one who was not in fact the actual producer or processor.
</P>
<P>(f) <I>Confusion of brands.</I> Two or more different brands or lots of distilled spirits shall not be advertised in one advertisement (or in two or more advertisements in one issue of a periodical or newspaper, or in one piece of other written, printed, or graphic matter) if the advertisement tends to create the impression that representations made as to one brand or lot apply to the other or others, and if as to such latter the representations contravene any provisions of this subpart or are in any respect untrue.
</P>
<P>(g) <I>Representations of the armed forces or flags.</I> Advertisements may not show an image of any government's flag or any representation related to the armed forces of the United States if the representation, standing alone or considered together with any additional language or symbols, creates a false or misleading impression that the product was endorsed by, made by, used by, or made under the supervision of, the government represented by that flag or by the armed forces of the United States. This section does not prohibit the use of a flag as part of a claim of American origin or another country of origin.
</P>
<P>(h) <I>Deceptive advertising techniques.</I> Subliminal or similar techniques are prohibited. “Subliminal or similar techniques,” as used in this subpart, refers to any device or technique that is used to convey, or attempts to convey, a message to a person by means of images or sounds of a very brief nature that cannot be perceived at a normal level of awareness.
</P>
<P>(i) Any use of the term “organic” in the advertising of distilled spirits must comply with the United States Department of Agriculture's (USDA) National Organic Program rules, 7 CFR part 205, as interpreted by the USDA.




</P>
<CITA TYPE="N"> T.D. TTB-176, 87 7579, Feb. 9, 2022, as amended by T. D.TTB-187, 88 FR 2228, Jan. 13, 2023; T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]






</CITA>
</DIV8>


<DIV8 N="§ 5.236" NODE="27:1.0.1.1.3.14.25.6" TYPE="SECTION">
<HEAD>§ 5.236   Comparative advertising.</HEAD>
<P>(a) <I>General.</I> Comparative advertising shall not be disparaging of a competitor's product in a manner that is false or misleading.
</P>
<P>(b) <I>Taste tests.</I> (1) Taste test results may be used in advertisements comparing competitors' products unless they are disparaging in a false or misleading manner; deceptive; or likely to mislead the consumer.
</P>
<P>(2) The taste test procedure used shall meet scientifically accepted procedures. An example of a scientifically accepted procedure is outlined in the Manual on Sensory Testing Methods, ASTM Special Technical Publication 434, published by the American Society for Testing and Materials, 1916 Race Street, Philadelphia, Pennsylvania 19103, ASTM, 1968, Library of Congress Catalog Card Number 68-15545.
</P>
<P>(3) A statement shall appear in the advertisement providing the name and address of the testing administrator.


</P>
</DIV8>

</DIV6>


<DIV6 N="O" NODE="27:1.0.1.1.3.15" TYPE="SUBPART">
<HEAD>Subpart O—Paperwork Reduction Act</HEAD>


<DIV8 N="§ 5.241" NODE="27:1.0.1.1.3.15.25.1" TYPE="SECTION">
<HEAD>§ 5.241   OMB control numbers assigned under the Paperwork Reduction Act.</HEAD>
<P>(a) <I>Purpose.</I> This subpart displays the control numbers assigned to information collection requirements in this part by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995, Public Law 104-13.
</P>
<P>(b) <I>Table.</I> The following table identifies each section in this part that contains an information collection requirement and the OMB control number that is assigned to that information collection requirement.
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 1 to Paragraph (<E T="01">b</E>)
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Section where contained
</TH><TH class="gpotbl_colhed" scope="col">Current OMB control No.
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.11</TD><TD align="right" class="gpotbl_cell">1513-0111
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.21</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.22</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.23</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.24</TD><TD align="right" class="gpotbl_cell">1513-0020
<br/>1513-0064
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.25</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.27</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.28</TD><TD align="right" class="gpotbl_cell">1513-0122
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.29</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.30</TD><TD align="right" class="gpotbl_cell">1513-0064
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.62</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.63</TD><TD align="right" class="gpotbl_cell">1513-0084
<br/>1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.82</TD><TD align="right" class="gpotbl_cell">1513-0121
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.83</TD><TD align="right" class="gpotbl_cell">1513-0121
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.84</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.87</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.88</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.89</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.90</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.91</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.192</TD><TD align="right" class="gpotbl_cell">1513-0122
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.193</TD><TD align="right" class="gpotbl_cell">1513-0122
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.194</TD><TD align="right" class="gpotbl_cell">1513-0122
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.203</TD><TD align="right" class="gpotbl_cell">1513-0064
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.205</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5.233</TD><TD align="right" class="gpotbl_cell">1513-0087</TD></TR></TABLE></DIV></DIV>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="6" NODE="27:1.0.1.1.4" TYPE="PART">
<HEAD>PART 6—“TIED-HOUSE”
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>15 U.S.C. 49-50; 27 U.S.C. 202 and 205; 44 U.S.C. 3504(h).
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:1.0.1.1.4.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 6.1" NODE="27:1.0.1.1.4.1.33.1" TYPE="SECTION">
<HEAD>§ 6.1   General.</HEAD>
<P>The regulations in this part, issued pursuant to section 105 of the Federal Alcohol Administration Act (27 U.S.C. 205), specify practices that are means to induce under section 105(b) of the Act, criteria for determining whether a practice is a violation of section 105(b) of the Act, and exceptions to section 105(b) of the Act. This part does not attempt to enumerate all of the practices that may result in a violation of section 105(b) of the Act. Nothing in this part shall operate to exempt any person from the requirements of any State law or regulation.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.2" NODE="27:1.0.1.1.4.1.33.2" TYPE="SECTION">
<HEAD>§ 6.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States, the District of Columbia, and Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 6.3" NODE="27:1.0.1.1.4.1.33.3" TYPE="SECTION">
<HEAD>§ 6.3   Application.</HEAD>
<P>(a) <I>General.</I> This part applies only to transactions between industry members and retailers. It does not apply to transactions between two industry members (for example, between a producer and a wholesaler), or to transactions between an industry member and a retailer wholly owned by that industry member.
</P>
<P>(b) <I>Transaction involving State agencies.</I> The regulations in this part apply only to transactions between industry members and State agencies operating as retailers as defined in this part. The regulations do not apply to State agencies with regard to their wholesale dealings with retailers.


</P>
</DIV8>


<DIV8 N="§ 6.4" NODE="27:1.0.1.1.4.1.33.4" TYPE="SECTION">
<HEAD>§ 6.4   Jurisdictional limits.</HEAD>
<P>(a) <I>General.</I> The regulations in this part apply where:
</P>
<P>(1) The industry member induces a retailer to purchase distilled spirits, wine, or malt beverages from such industry member to the exclusion in whole or in part of products sold or offered for sale by other persons in interstate or foreign commerce; and
</P>
<P>(2) If: (i) The inducement is made in the course of interstate or foreign commerce; or
</P>
<P>(ii) The industry member engages in the practice of using an inducement to such an extent as substantially to restrain or prevent transactions in interstate or foreign commerce in any such products; or
</P>
<P>(iii) The direct effect of the inducement is to prevent, deter, hinder or restrict other persons from selling or offering for sale any such products to such retailer in interstate or foreign commerce.
</P>
<P>(b) <I>Malt beverages.</I> In the case of malt beverages, this part applies to transactions between a retailer in any State and a brewer, importer, or wholesaler of malt beverages inside or outside such State only to the extent that the law of such State imposes requirements similar to the requirements of section 105(b) of the Federal Alcohol Administration Act (27 U.S.C. 205(b)), with respect to similar transactions between a retailer in such State and a brewer, importer, or wholesaler or malt beverage in such State, as the case may be.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.5" NODE="27:1.0.1.1.4.1.33.5" TYPE="SECTION">
<HEAD>§ 6.5   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.6, Delegation of the Administrator's Authorities in 27 CFR Part 6, <I>Tied-House.</I> You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16922, Apr. 4, 2006, as amended by T.D. TTB-196 , 89 FR 87935, Nov. 6, 2024]

 
</CITA>
</DIV8>


<DIV8 N="§ 6.6" NODE="27:1.0.1.1.4.1.33.6" TYPE="SECTION">
<HEAD>§ 6.6   Administrative provisions.</HEAD>
<P>(a) <I>General.</I> The Act makes applicable the provisions including penalties of sections 49 and 50 of Title 15, United States Code, to the jurisdiction, powers and duties of the Administrator under this Act, and to any person (whether or not a corporation) subject to the provisions of law administered by the Administrator under this Act. The Act also provides that the Administrator is authorized to require, in such manner and such form as he or she shall prescribe, such reports as are necessary to carry out the powers and duties under this chapter.
</P>
<P>(b) <I>Examination and subpoena.</I> Any appropriate TTB officer shall at all reasonable times have access to, for the purpose of examination, and the right to copy any documentary evidence of any person, partnership, or corporation being investigated or proceeded against. An appropriate TTB officer shall also have the power to require by subpoena the attendance and testimony of witnesses and the production of all such documentary evidence relating to any matter under investigation, upon a satisfactory showing the requested evidence may reasonably be expected to yield information relevant to any matter being investigated under the Act.
</P>
<P>(c) <I>Reports required by the appropriate TTB officer</I>—(1) <I>General.</I> The appropriate TTB officer may, as part of a trade practice investigation of an industry member, require such industry member to submit a written report containing information on sponsorships, advertisements, promotions, and other activities pertaining to its business subject to the Act conducted by, or on behalf of, or benefiting the industry member.
</P>
<P>(2) <I>Preparation.</I> The report will be prepared by the industry member in letter form, executed under the penalties of perjury, and will contain the information specified by the appropriate TTB officer. The period covered by the report will not exceed three years.
</P>
<P>(3) <I>Filing.</I> The report will be filed in accordance with the instructions of the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0392)
</APPRO>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995. Redesignated and amended by T.D. ATF-428, 65 FR 52019, Aug. 28, 2000]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.4.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 6.11" NODE="27:1.0.1.1.4.2.33.1" TYPE="SECTION">
<HEAD>§ 6.11   Meaning of terms.</HEAD>
<P>As used in this part, unless the context otherwise requires, terms have the meanings given in this section. Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the meaning assigned to it by that Act.
</P>
<P><I>Act.</I> The Federal Alcohol Administration Act.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.6, Delegation of the Administrator's Authorities in 27 CFR Part 6, <I>Tied-House.</I>
</P>
<P><I>Brand.</I> For purposes of administering this part, the term “brand” refers to differences in the brand name of a product or in the nature of a product. Examples of different brands are products having a different brand name or class, type, or kind designation; appellation of origin (wine); vintage date (wine); age (distilled spirits); or percentage of alcohol. Differences in packaging such as difference in label design or color, or a different style, type or size of container are not considered different brands.
</P>
<P><I>Equipment.</I> All functional items such as tap boxes, glassware, pouring racks, and similar items used in the conduct of a retailer's business.
</P>
<P><I>Industry member.</I> Any person engaged in business as a distiller, brewer, rectifier, blender, or other producer, or as an importer or wholesaler, of distilled spirits, wine or malt beverages, or as a bottler, or warehousemen and bottler, of distilled spirits; industry member does not include an agency of a State or political subdivision thereof, or an officer or employee of such agency.
</P>
<P><I>Product.</I> Distilled spirits, wine or malt beverages, as defined in the Federal Alcohol Administration Act.
</P>
<P><I>Retail establishment.</I> Any premises where distilled spirits, wine or malt beverages are sold or offered for sale to consumers, whether for consumption on or off the premises where sold.
</P>
<P><I>Retailer.</I> Any person engaged in the sale of distilled spirits, wine or malt beverages to consumers. A wholesaler who makes incidental retail sales representing less than five percent of the wholesaler's total sales volume for the preceding two-month period shall not be considered a retailer with respect to such incidental sales.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 60 FR 20421, Apr. 26, 1995; T.D. ATF-428, 65 FR 52020, Aug. 28, 2000; T.D. TTB-44, 71 FR 16922, Apr. 4, 2006]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.4.3" TYPE="SUBPART">
<HEAD>Subpart C—Unlawful Inducements</HEAD>


<DIV7 N="33" NODE="27:1.0.1.1.4.3.33" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 6.21" NODE="27:1.0.1.1.4.3.33.1" TYPE="SECTION">
<HEAD>§ 6.21   Application.</HEAD>
<P>Except as provided in subpart D, it is unlawful for any industry member to induce, directly or indirectly, any retailer to purchase any products from the industry member to the exclusion, in whole or in part, of such products sold or offered for sale by other persons in interstate or foreign commerce by any of the following means:
</P>
<P>(a) By acquiring or holding (after the expiration of any license held at the time the FAA Act was enacted) any interest in any license with respect to the premises of the retailer;
</P>
<P>(b) By acquiring any interest in the real or personal property owned, occupied, or used by the retailer in the conduct of their business;
</P>
<P>(c) By furnishing, giving, renting, lending, or selling to the retailer, any equipment, fixtures, signs, supplies, money, services or other thing of value, subject to the exceptions contained in subpart D;
</P>
<P>(d) By paying or crediting the retailer for any advertising, display, or distribution service;
</P>
<P>(e) By guaranteeing any loan or the repayment of any financial obligation of the retailer;
</P>
<P>(f) By extending to the retailer credit for a period in excess of the credit period usual and customary to the industry for the particular class of transactions as prescribed in § 6.65; or
</P>
<P>(g) By requiring the retailer to take and dispose of a certain quota of any such products.


</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. TTB-196, 89 FR 87935, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="34" NODE="27:1.0.1.1.4.3.34" TYPE="SUBJGRP">
<HEAD>Interest in Retail License</HEAD>


<DIV8 N="§ 6.25" NODE="27:1.0.1.1.4.3.34.2" TYPE="SECTION">
<HEAD>§ 6.25   General.</HEAD>
<P>The act by an industry member of acquiring or holding any interest in any license (State, county or municipal) with respect to the premises of a retailer constitutes a means to induce within the meaning of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.26" NODE="27:1.0.1.1.4.3.34.3" TYPE="SECTION">
<HEAD>§ 6.26   Indirect interest.</HEAD>
<P>Industry member interest in retail licenses includes any interest acquired by corporate officials, partners, employees or other representatives of the industry member. Any interest in a retail license acquired by a separate corporation in which the industry member or its officials, hold ownership or are otherwise affiliated, is an interest in a retail license.


</P>
</DIV8>


<DIV8 N="§ 6.27" NODE="27:1.0.1.1.4.3.34.4" TYPE="SECTION">
<HEAD>§ 6.27   Proprietary interest.</HEAD>
<P>(a) <I>Complete ownership.</I> Outright ownership of a retail business by an industry member is not an interest which may result in a violation of section 105(b)(1) of the Act.
</P>
<P>(b) <I>Partial ownership.</I> Less than complete ownership of a retail business by an industry member constitutes an interest in a retail license within the meaning of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="35" NODE="27:1.0.1.1.4.3.35" TYPE="SUBJGRP">
<HEAD>Interest in Retail Property</HEAD>


<DIV8 N="§ 6.31" NODE="27:1.0.1.1.4.3.35.5" TYPE="SECTION">
<HEAD>§ 6.31   General.</HEAD>
<P>The act by an industry member of acquiring an interest in real or personal property owned, occupied, or used by the retailer in the conduct of business constitutes a means to induce within the meaning of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.32" NODE="27:1.0.1.1.4.3.35.6" TYPE="SECTION">
<HEAD>§ 6.32   Indirect interest.</HEAD>
<P>Industry member interest in retail property includes any interest acquired by corporate officials, partners, employees or other representatives of the industry member. Any interest in retail property acquired by a separate corporation in which the industry member or its officials, hold ownership or are otherwise affiliated, is an interest in retail property.


</P>
</DIV8>


<DIV8 N="§ 6.33" NODE="27:1.0.1.1.4.3.35.7" TYPE="SECTION">
<HEAD>§ 6.33   Proprietary interest.</HEAD>
<P>(a) <I>Complete ownership.</I> Outright ownership of a retail business by an industry member is not an interest that may result in a violation of section 105(b)(2) of the Act.
</P>
<P>(b) <I>Partial ownership.</I> Less than complete ownership of a retail business by an industry member constitutes an interest in retail property within the meaning of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.34" NODE="27:1.0.1.1.4.3.35.8" TYPE="SECTION">
<HEAD>§ 6.34   Mortgages.</HEAD>
<P>The acquisition of a mortgage on a retailer's real or personal property by an industry member constitutes an interest in the retailer's property within the meaning of the Act.


</P>
</DIV8>


<DIV8 N="§ 6.35" NODE="27:1.0.1.1.4.3.35.9" TYPE="SECTION">
<HEAD>§ 6.35   Renting display space.</HEAD>
<P>The renting of display space by an industry member at a retail establishment constitutes an interest in the retailer's property within the meaning of the Act.


</P>
</DIV8>

</DIV7>


<DIV7 N="36" NODE="27:1.0.1.1.4.3.36" TYPE="SUBJGRP">
<HEAD>Furnishing Things of Value</HEAD>


<DIV8 N="§ 6.41" NODE="27:1.0.1.1.4.3.36.10" TYPE="SECTION">
<HEAD>§ 6.41   General.</HEAD>
<P>Subject to the exceptions listed in subpart D, the act by an industry member of furnishing, giving, renting, lending, or selling any equipment, fixtures, signs, supplies, money, services, or other things of value to a retailer constitutes a means to induce within the meaning of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.42" NODE="27:1.0.1.1.4.3.36.11" TYPE="SECTION">
<HEAD>§ 6.42   Indirect inducement through third party arrangements.</HEAD>
<P>(a) <I>General.</I> The furnishing, giving, renting, lending, or selling of equipment, fixtures, signs, supplies, money, services, or other thing of value by an industry member to a third party, where the benefits resulting from such things of value flow to individual retailers, is the indirect furnishing of a thing of value within the meaning of the Act. Indirect furnishing of a thing of value includes, but is not limited to, making payments for advertising to a retailer association or a display company where the resulting benefits flow to individual retailers.
</P>
<P>(b) <I>Exceptions.</I> An indirect inducement will not arise where the thing of value was furnished to a retailer by the third party without the knowledge or intent of the industry member, or the industry member did not reasonably foresee that the thing of value would have been furnished to a retailer. Things which may lawfully be furnished, given, rented, lent, or sold by industry members to retailers under subpart D may also be furnished directly by a third party to a retailer.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.43" NODE="27:1.0.1.1.4.3.36.12" TYPE="SECTION">
<HEAD>§ 6.43   Sale of equipment.</HEAD>
<P>A transaction in which equipment is sold to a retailer by an industry member, except as provided in § 6.88, is the selling of equipment in within the meaning of the Act regardless of how sold. Further, the negotiation by an industry member of a special price to a retailer for equipment from an equipment company is the furnishing of a thing of value within the meaning of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.44" NODE="27:1.0.1.1.4.3.36.13" TYPE="SECTION">
<HEAD>§ 6.44   Free warehousing.</HEAD>
<P>The furnishing of free warehousing by delaying delivery of distilled spirits, wine, or malt beverages beyond the time that payment for the product is received, or if a retailer is purchasing on credit, delaying final delivery of products beyond the close of the period of time for which credit is lawfully extended, is the furnishing of a service or thing of value within the meaning of the Act.


</P>
</DIV8>


<DIV8 N="§ 6.45" NODE="27:1.0.1.1.4.3.36.14" TYPE="SECTION">
<HEAD>§ 6.45   Assistance in acquiring license.</HEAD>
<P>Any assistance (financial, legal, administrative or influential) given the retailer by an industry member in the retailer's acquisition of the retailer's license is the furnishing of a service or thing of value within the meaning of the Act.


</P>
</DIV8>


<DIV8 N="§§ 6.46-6.47" NODE="27:1.0.1.1.4.3.36.15" TYPE="SECTION">
<HEAD>§§ 6.46-6.47   [Reserved]</HEAD>
</DIV8>

</DIV7>


<DIV7 N="37" NODE="27:1.0.1.1.4.3.37" TYPE="SUBJGRP">
<HEAD>Paying for Advertising, Display or Distribution Service</HEAD>


<DIV8 N="§ 6.51" NODE="27:1.0.1.1.4.3.37.16" TYPE="SECTION">
<HEAD>§ 6.51   General.</HEAD>
<P>The act by an industry member of paying or crediting a retailer for any advertising, display, or distribution service constitutes a means to induce within the meaning of the Act, whether or not the advertising, display, or distribution service received by the industry member in these instances is commensurate with the amount paid therefor. This includes payments or credits to retailers that are merely reimbursements, in full or in part, for such services purchased by a retailer from a third party.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.52" NODE="27:1.0.1.1.4.3.37.17" TYPE="SECTION">
<HEAD>§ 6.52   Cooperative advertising.</HEAD>
<P>An arrangement in which an industry member participates with a retailer in paying for an advertisement placed by the retailer constitutes paying the retailer for advertising within the meaning of the Act.


</P>
</DIV8>


<DIV8 N="§ 6.53" NODE="27:1.0.1.1.4.3.37.18" TYPE="SECTION">
<HEAD>§ 6.53   Advertising in ballparks, racetracks, and stadiums.</HEAD>
<P>The purchase, by an industry member, of advertising on signs, scoreboards, programs, scorecards, and the like at ballparks, racetracks or stadiums, from the retail concessionaire constitutes paying the retailer for an advertising service within the meaning of the Act.


</P>
</DIV8>


<DIV8 N="§ 6.54" NODE="27:1.0.1.1.4.3.37.19" TYPE="SECTION">
<HEAD>§ 6.54   Advertising in retailer publications.</HEAD>
<P>The purchase, by an industry member, of advertising in a retailer publication for distribution to consumers or the general public constitutes paying the retailer for advertising within the meaning of the Act.


</P>
</DIV8>


<DIV8 N="§ 6.55" NODE="27:1.0.1.1.4.3.37.20" TYPE="SECTION">
<HEAD>§ 6.55   Display service.</HEAD>
<P>Industry member reimbursements to retailers for setting up product or other displays constitutes paying the retailer for rendering a display service within the meaning of the Act.


</P>
</DIV8>


<DIV8 N="§ 6.56" NODE="27:1.0.1.1.4.3.37.21" TYPE="SECTION">
<HEAD>§ 6.56   Renting display space.</HEAD>
<P>A promotion whereby an industry member rents display space at a retail establishment constitutes paying the retailer for rendering a display service within the meaning of the Act.


</P>
</DIV8>

</DIV7>


<DIV7 N="38" NODE="27:1.0.1.1.4.3.38" TYPE="SUBJGRP">
<HEAD>Guaranteeing Loans</HEAD>


<DIV8 N="§ 6.61" NODE="27:1.0.1.1.4.3.38.22" TYPE="SECTION">
<HEAD>§ 6.61   Guaranteeing loans.</HEAD>
<P>The act by an industry member of guaranteeing any loan or the repayment of any financial obligation of a retailer constitutes a means to induce within the meaning of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="39" NODE="27:1.0.1.1.4.3.39" TYPE="SUBJGRP">
<HEAD>Extension of Credit</HEAD>


<DIV8 N="§ 6.65" NODE="27:1.0.1.1.4.3.39.23" TYPE="SECTION">
<HEAD>§ 6.65   General.</HEAD>
<P>Extension of credit by an industry member to a retailer for a period of time in excess of 30 days from the date of delivery constitutes a means to induce within the meaning of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.66" NODE="27:1.0.1.1.4.3.39.24" TYPE="SECTION">
<HEAD>§ 6.66   Calculation of period.</HEAD>
<P>For the purpose of this part, the period of credit is calculated as the time elapsing between the date of delivery of the product and the date of full legal discharge of the retailer, through the payment of cash or its equivalent, from all indebtedness arising from the transaction.


</P>
</DIV8>


<DIV8 N="§ 6.67" NODE="27:1.0.1.1.4.3.39.25" TYPE="SECTION">
<HEAD>§ 6.67   Sales to retailer whose account is in arrears.</HEAD>
<P>An extension of credit (for product purchases) by an industry member to a retailer whose account is in arrears does not constitute a means to induce within the meaning of the Act so long as such retailer pays in advance or on delivery an amount equal to or greater than the value of each order, regardless of the manner in which the industry member applies the payment in its records.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="40" NODE="27:1.0.1.1.4.3.40" TYPE="SUBJGRP">
<HEAD>Quota Sales</HEAD>


<DIV8 N="§ 6.71" NODE="27:1.0.1.1.4.3.40.26" TYPE="SECTION">
<HEAD>§ 6.71   Quota sales.</HEAD>
<P>The act by an industry member of requiring a retailer to take and dispose of any quota of distilled spirits, wine, or malt beverages constitutes a means to induce within the meaning of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.72" NODE="27:1.0.1.1.4.3.40.27" TYPE="SECTION">
<HEAD>§ 6.72   “Tie-in” sales.</HEAD>
<P>The act by an industry member of requiring that a retailer purchase one product (as defined in § 6.11) in order to obtain another constitutes a means to induce within the meaning of the Act. This includes the requirement to take a minimum quantity of a product in standard packaging in order to obtain the same product in some type of premium package, i.e., a distinctive decanter, or wooden or tin box. This also includes combination sales if one or more products may be purchased only in combination with other products and not individually. However, an industry member is not precluded from selling two or more kinds or brands of products to a retailer at a special combination price, provided the retailer has the option of purchasing either product at the usual price, and the retailer is not required to purchase any product it does not want. See § 6.93 for combination packaging of products plus non-alcoholic items.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.4.4" TYPE="SUBPART">
<HEAD>Subpart D—Exceptions</HEAD>


<DIV8 N="§ 6.81" NODE="27:1.0.1.1.4.4.41.1" TYPE="SECTION">
<HEAD>§ 6.81   General.</HEAD>
<P>(a) <I>Application.</I> Section 105(b)(3) of the Act enumerates means to induce that may be unlawful under the subsection, subject to such exceptions as are prescribed in regulations, having due regard for public health, the quantity and value of articles involved, established trade customs not contrary to the public interest, and the purposes of that section. This subpart implements section 105(b)(3) of the Act and identifies the practices that are exceptions to section 105(b)(3) of the Act. An industry member may furnish a retailer equipment, inside signs, supplies, services, or other things of value, under the conditions and within the limitations prescribed in this subpart.
</P>
<P>(b) <I>Recordkeeping Requirements.</I> (1) Industry members shall keep and maintain records on the permit or brewery premises, for a three year period, of all items furnished to retailers under §§ 6.83, 6.88, 6.91, 6.96(a), and 6.100 and the commercial records required under § 6.101. Commercial records or invoices may be used to satisfy this recordkeeping requirement if all required information is shown. These records shall show:
</P>
<P>(i) The name and address of the retailer receiving the item;
</P>
<P>(ii) The date furnished;
</P>
<P>(iii) The item furnished;
</P>
<P>(iv) The industry member's cost of the item furnished (determined by the manufacturer's invoice price); and
</P>
<P>(v) Charges to the retailer for any item.
</P>
<P>(2) Although no separate recordkeeping violation results, an industry member who fails to keep such records is not eligible for the exception claimed.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0392)
</APPRO>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.82" NODE="27:1.0.1.1.4.4.41.2" TYPE="SECTION">
<HEAD>§ 6.82   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 6.83" NODE="27:1.0.1.1.4.4.41.3" TYPE="SECTION">
<HEAD>§ 6.83   Product displays.</HEAD>
<P>(a) <I>General.</I> The act by an industry member of giving or selling product displays to a retailer does not constitute a means to induce within the meaning of section 105(b)(3) of the Act provided that the conditions prescribed in paragraph (c) of this section are met.
</P>
<P>(b) <I>Definition.</I> “Product display” means any wine racks, bins, barrels, casks, shelving, or similar items the primary function of which is to hold and display consumer products.
</P>
<P>(c) <I>Conditions and limitations.</I> (1) The total value of all product displays given or sold by an industry member under paragraph (a) of this section may not exceed $300 per brand at any one time in any one retail establishment. Industry members may not pool or combine dollar limitations in order to provide a retailer a product display valued in excess of $300 per brand. The value of a product display is the actual cost to the industry member who initially purchased it. Transportation and installation costs are excluded.
</P>
<P>(2) All product displays must bear conspicuous and substantial advertising matter on the product or the industry member which is permanently inscribed or securely affixed. The name and address of the retailer may appear on the product displays.
</P>
<P>(3) The giving or selling of such product displays may be conditioned upon the purchase of the distilled spirits, wine, or malt beverages advertised on those displays in a quantity necessary for the initial completion of such display. No other condition can be imposed by the industry member on the retailer in order for the retailer to receive or obtain the product display.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.84" NODE="27:1.0.1.1.4.4.41.4" TYPE="SECTION">
<HEAD>§ 6.84   Point of sale advertising materials and consumer advertising specialties.</HEAD>
<P>(a) <I>General.</I> The act by an industry member of giving or selling point of sale advertising materials and consumer advertising specialties to a retailer does not constitute a means to induce within the meaning of section 105(b)(3) of the Act provided that the conditions prescribed in paragraph (c) of this section are met.
</P>
<P>(b) <I>Definitions</I>—(1) <I>Point of sale advertising materials</I> are items designed to be used within a retail establishment to attract consumer attention to the products of the industry member. Such materials include, but are not limited to: posters, placards, designs, inside signs (electric, mechanical or otherwise), window decorations, trays, coasters, mats, menu cards, meal checks, paper napkins, foam scrapers, back bar mats, thermometers, clocks, calendars, and alcoholic beverage lists or menus.
</P>
<P>(2) <I>Consumer advertising specialties</I> are items that are designed to be carried away by the consumer, such as trading stamps, nonalcoholic mixers, pouring racks, ash trays, bottle or can openers, cork screws, shopping bags, matches, printed recipes, pamphlets, cards, leaflets, blotters, post cards, pencils, shirts, caps, and visors.
</P>
<P>(c) <I>Conditions and limitations.</I> (1) All point of sale advertising materials and consumer advertising specialties must bear conspicuous and substantial advertising matter about the product or the industry member which is permanently inscribed or securely affixed. The name and address of the retailer may appear on the point of sale advertising materials.
</P>
<P>(2) The industry member may not directly or indirectly pay or credit the retailer for using or distributing these materials or for any expense incidental to their use.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.85" NODE="27:1.0.1.1.4.4.41.5" TYPE="SECTION">
<HEAD>§ 6.85   Temporary retailers.</HEAD>
<P>(a) <I>General.</I> The furnishing of things of value to a temporary retailer does not constitute a means to induce within the meaning of section 105(b)(3) of the Act.
</P>
<P>(b) <I>Definition.</I> For purposes of administering this part, a temporary retailer is a dealer who is not engaged in business as a retailer for more than four consecutive days per event, and for not more than five events in a calendar year.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§§ 6.86-6.87" NODE="27:1.0.1.1.4.4.41.6" TYPE="SECTION">
<HEAD>§§ 6.86-6.87   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 6.88" NODE="27:1.0.1.1.4.4.41.7" TYPE="SECTION">
<HEAD>§ 6.88   Equipment and supplies.</HEAD>
<P>(a) <I>General.</I> The act by an industry member of selling equipment or supplies to a retailer does not constitute a means to induce within the meaning of section 105(b)(3) of the Act if the equipment or supplies are sold at a price not less than the cost to the industry member who initially purchased them, and if the price is collected within 30 days of the date of the sale. The act by an industry member of installing dispensing accessories at the retailer's establishment does not constitute a means to induce within the meaning of the Act as long as the retailer bears the cost of initial installation. The act by an industry member of furnishing, giving, or selling coil cleaning service to a retailer of distilled spirits, wine, or malt beverages does not constitute a means to induce within the meaning of section 105(b)(3) of the Act.
</P>
<P>(b) <I>Definition.</I> “Equipment and supplies” means glassware (or similar containers made of other material), dispensing accessories, carbon dioxide (and other gasses used in dispensing equipment) or ice. “Dispensing accessories” include items such as standards, faucets, cold plates, rods, vents, taps, tap standards, hoses, washers, couplings, gas gauges, vent tongues, shanks, and check valves.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§§ 6.89-6.90" NODE="27:1.0.1.1.4.4.41.8" TYPE="SECTION">
<HEAD>§§ 6.89-6.90   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 6.91" NODE="27:1.0.1.1.4.4.41.9" TYPE="SECTION">
<HEAD>§ 6.91   Samples.</HEAD>
<P>The act by an industry member of furnishing or giving a sample of distilled spirits, wine, or malt beverages to a retailer who has not purchased the brand from that industry member within the last 12 months does not constitute a means to induce within the meaning of section 105(b)(3) of the Act. For each retail establishment the industry member may give not more than 3 gallons of any brand of malt beverage, not more than 3 liters of any brand of wine, and not more than 3 liters of distilled spirits. If a particular product is not available in a size within the quantity limitations of this section, an industry member may furnish to a retailer the next larger size.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.92" NODE="27:1.0.1.1.4.4.41.10" TYPE="SECTION">
<HEAD>§ 6.92   Newspaper cuts.</HEAD>
<P>Newspaper cuts, mats, or engraved blocks for use in retailers' advertisements may be given or sold by an industry member to a retailer selling the industry member's products.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.93" NODE="27:1.0.1.1.4.4.41.11" TYPE="SECTION">
<HEAD>§ 6.93   Combination packaging.</HEAD>
<P>The act by an industry member of packaging and distributing distilled spirits, wine, or malt beverages in combination with other (non-alcoholic) items for sale to consumers does not constitute a means to induce within the meaning of section 105(b)(3) of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.94" NODE="27:1.0.1.1.4.4.41.12" TYPE="SECTION">
<HEAD>§ 6.94   Educational seminars.</HEAD>
<P>An industry member may give or sponsor educational seminars for employees of retailers either at the industry member's premises or at the retail establishment. Examples would be seminars dealing with use of a retailer's equipment, training seminars for employees of retailers, or tours of industry member's plant premises. This section does not authorize an industry member to pay a retailer's expense in conjunction with an educational seminar (such as travel and lodging). This does not preclude providing nominal hospitality during the event.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.95" NODE="27:1.0.1.1.4.4.41.13" TYPE="SECTION">
<HEAD>§ 6.95   Consumer tasting or sampling at retail establishments.</HEAD>
<P>An industry member may conduct tasting or sampling activities at a retail establishment. The industry member may purchase the products to be used from the retailer, but may not purchase them from the retailer for more than the ordinary retail price.


</P>
</DIV8>


<DIV8 N="§ 6.96" NODE="27:1.0.1.1.4.4.41.14" TYPE="SECTION">
<HEAD>§ 6.96   Consumer promotions.</HEAD>
<P>(a) <I>Coupons.</I> The act by an industry member of furnishing to consumers coupons which are redeemable at a retail establishment does not constitute a means to induce within the meaning of section 105(b)(3) of the Act, provided the following conditions are met:
</P>
<P>(1) All retailers within the market where the coupon offer is made may redeem such coupons; and
</P>
<P>(2) An industry member may not reimburse a retailer for more than the face value of all coupons redeemed, plus a usual and customary handling fee for the redemption of coupons.
</P>
<P>(b) <I>Direct offerings.</I> Contest prizes, premium offers, refunds, and like items may be offered by industry members directly to consumers. Officers, employees and representatives of wholesalers or retailers are excluded from participation.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 60 FR 20423, Apr. 26, 1995; T.D. TTB-196, 89 FR 87935 Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 6.97" NODE="27:1.0.1.1.4.4.41.15" TYPE="SECTION">
<HEAD>§ 6.97   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 6.98" NODE="27:1.0.1.1.4.4.41.16" TYPE="SECTION">
<HEAD>§ 6.98   Advertising service.</HEAD>
<P>The listing of the names and addresses of two or more unaffiliated retailers selling the products of an industry member in an advertisement of that industry member does not constitute a means to induce within the meaning of section 105(b)(3) of the Act, provided:
</P>
<P>(a) The advertisement does not also contain the retail price of the product (except where the exclusive retailer in the jurisdiction is a State or a political subdivision of a State), and
</P>
<P>(b) The listing is the only reference to the retailers in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole, and
</P>
<P>(c) The advertisement does not refer only to one retailer or only to retail establishments controlled directly or indirectly by the same retailer, except where the retailer is an agency of a State or a political subdivision of a State.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.99" NODE="27:1.0.1.1.4.4.41.17" TYPE="SECTION">
<HEAD>§ 6.99   Stocking, rotation, and pricing service.</HEAD>
<P>(a) <I>General.</I> Industry members may, at a retail establishment, stock, rotate and affix the price to distilled spirits, wine, or malt beverages which they sell, provided products of other industry members are not altered or disturbed. The rearranging or resetting of all or part of a store or liquor department is not hereby authorized.
</P>
<P>(b) <I>Shelf plan and shelf schematics.</I> The act by an industry member of providing a recommended shelf plan or shelf schematic for distilled spirits, wine, or malt beverages does not constitute a means to induce within the meaning of section 105(b)(3) of the Act.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20424, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.100" NODE="27:1.0.1.1.4.4.41.18" TYPE="SECTION">
<HEAD>§ 6.100   Participation in retailer association activities.</HEAD>
<P>The following acts by an industry member participating in retailer association activities do not constitute a means to induce within the meaning of section 105(b)(3) of the Act:
</P>
<P>(a) Displaying its products at a convention or trade show;
</P>
<P>(b) Renting display booth space if the rental fee is the same as paid by all exhibitors at the event;
</P>
<P>(c) Providing its own hospitality which is independent from association sponsored activities;
</P>
<P>(d) Purchasing tickets to functions and paying registration fees if the payments or fees are the same as paid by all attendees, participants or exhibitors at the event; and
</P>
<P>(e) Making payments for advertisements in programs or brochures issued by retailer associations at a convention or trade show if the total payments made by an industry member for all such advertisements do not exceed $300 per year for any retailer association.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20424, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.101" NODE="27:1.0.1.1.4.4.41.19" TYPE="SECTION">
<HEAD>§ 6.101   Merchandise.</HEAD>
<P>(a) <I>General.</I> The act by an industry member, who is also in business as a bona fide producer or vendor of other merchandise (for example, groceries or pharmaceuticals), of selling that merchandise to a retailer does not constitute a means to induce within the meaning of section 105(b)(3) of the Act, provided:
</P>
<P>(1) The merchandise is sold at its fair market value;
</P>
<P>(2) The merchandise is not sold in combination with distilled spirits, wines, or malt beverages (except as provided in § 6.93);
</P>
<P>(3) The industry member's acquisition or production costs of the merchandise appears on the industry member's purchase invoices or other records; and
</P>
<P>(4) The individual selling prices of merchandise and distilled spirits, wines, or malt beverages sold in a single transaction can be determined from commercial documents covering the sales transaction.
</P>
<P>(b) <I>Things of value covered in other sections of this part.</I> The act by an industry member of providing equipment, fixtures, signs, glassware, supplies, services, and advertising specialties to retailers does not constitute a means to induce within the meaning of section 105(b)(3) of the Act only as provided in other sections within this part.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20424, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 6.102" NODE="27:1.0.1.1.4.4.41.20" TYPE="SECTION">
<HEAD>§ 6.102   Outside signs.</HEAD>
<P>The act by an industry member of giving or selling outside signs to a retailer does not constitute a means to induce within the meaning of section 105(b)(3) of the Act provided that:
</P>
<P>(a) The sign must bear conspicuous and substantial advertising matter about the product or the industry member which is permanently inscribed or securely affixed;
</P>
<P>(b) The retailer is not compensated, directly or indirectly such as through a sign company, for displaying the signs; and
</P>
<P>(c) The cost of the signs may not exceed $400.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20424, Apr. 26, 1995]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.4.5" TYPE="SUBPART">
<HEAD>Subpart E—Exclusion</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-364, 60 FR 20424, Apr. 26, 1995, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 6.151" NODE="27:1.0.1.1.4.5.41.1" TYPE="SECTION">
<HEAD>§ 6.151   Exclusion, in general.</HEAD>
<P>(a) Exclusion, in whole or in part occurs:
</P>
<P>(1) When a practice by an industry member, whether direct, indirect, or through an affiliate, places (or has the potential to place) retailer independence at risk by means of a tie or link between the industry member and retailer or by any other means of industry member control over the retailer; and
</P>
<P>(2) Such practice results in the retailer purchasing less than it would have of a competitor's product.
</P>
<P>(b) Section 6.152 lists practices that create a tie or link that places retailer independence at risk. Section 6.153 lists the criteria used for determining whether other practices can put retailer independence at risk.


</P>
</DIV8>


<DIV8 N="§ 6.152" NODE="27:1.0.1.1.4.5.41.2" TYPE="SECTION">
<HEAD>§ 6.152   Practices which put retailer independence at risk.</HEAD>
<P>The practices specified in this section put retailer independence at risk. The practices specified here are examples and do not constitute a complete list of those practices that put retailer independence at risk.
</P>
<P>(a) The act by an industry member of resetting stock on a retailer's premises (other than stock offered for sale by the industry member).
</P>
<P>(b) The act by an industry member of purchasing or renting display, shelf, storage or warehouse space (<I>i.e.</I> slotting allowance).
</P>
<P>(c) Ownership by an industry member of less than a 100 percent interest in a retailer, where such ownership is used to influence the purchases of the retailer.
</P>
<P>(d) The act by an industry member of requiring a retailer to purchase one alcoholic beverage product in order to be allowed to purchase another alcoholic beverage product at the same time.


</P>
</DIV8>


<DIV8 N="§ 6.153" NODE="27:1.0.1.1.4.5.41.3" TYPE="SECTION">
<HEAD>§ 6.153   Criteria for determining retailer independence.</HEAD>
<P>The criteria specified in this section are indications that a particular practice, other than those in § 6.152, places retailer independence at risk. A practice need not meet all of the criteria specified in this section in order to place retailer independence at risk.
</P>
<P>(a) The practice restricts or hampers the free economic choice of a retailer to decide which products to purchase or the quantity in which to purchase them for sale to consumers.
</P>
<P>(b) The industry member obligates the retailer to participate in the promotion to obtain the industry member's product.
</P>
<P>(c) The retailer has a continuing obligation to purchase or otherwise promote the industry member's product.
</P>
<P>(d) The retailer has a commitment not to terminate its relationship with the industry member with respect to purchase of the industry member's products.
</P>
<P>(e) The practice involves the industry member in the day-to-day operations of the retailer. For example, the industry member controls the retailer's decisions on which brand of products to purchase, the pricing of products, or the manner in which the products will be displayed on the retailer's premises.
</P>
<P>(f) The practice is discriminatory in that it is not offered to all retailers in the local market on the same terms without business reasons present to justify the difference in treatment.


</P>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="7" NODE="27:1.0.1.1.5" TYPE="PART">
<HEAD>PART 7—LABELING AND ADVERTISING OF MALT BEVERAGES


</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>27 U.S.C. 205 and 207.


</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-176, 87 FR 7605, Feb. 9, 2022, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 7.0" NODE="27:1.0.1.1.5.0.43.1" TYPE="SECTION">
<HEAD>§ 7.0   Scope.</HEAD>
<P>This part sets forth requirements that apply to the labeling and packaging of malt beverages in containers, including requirements for label approval and rules regarding mandatory, regulated, and prohibited labeling statements. This part also sets forth requirements that apply to the advertising of malt beverages.


</P>
</DIV8>


<DIV6 N="A" NODE="27:1.0.1.1.5.1" TYPE="SUBPART">
<HEAD>Subpart A—General Provisions</HEAD>


<DIV8 N="§ 7.1" NODE="27:1.0.1.1.5.1.43.1" TYPE="SECTION">
<HEAD>§ 7.1   Definitions.</HEAD>
<P>When used in this part and on forms prescribed under this part, the following terms have the meaning assigned to them in this section, unless the terms appear in a context that requires a different meaning. Any other term defined in the Federal Alcohol Administration Act (FAA Act) and used in this part has the same meaning assigned to it by the FAA Act.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury.
</P>
<P><I>Advertisement or Advertising.</I> See § 7.232 for meaning of these terms as used in subpart N of this part.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any function relating to the administration or enforcement of this part by the current version of TTB Order 1135.7, Delegation of the Administrator's Authorities in 27 CFR part 7, Labeling and Advertising of Malt Beverages.
</P>
<P><I>Bottler.</I> Any brewer or wholesaler who places malt beverages in containers.
</P>
<P><I>Brand name.</I> The name under which a malt beverage or a line of malt beverages is sold.
</P>
<P><I>Certificate holder.</I> The permittee or brewer whose name, address, and basic permit number, plant registry number, or brewer's notice number appears on an approved TTB Form 5100.31.
</P>
<P><I>Certificate of exemption from label approval.</I> A certificate issued on TTB Form 5100.31, which authorizes the bottling of wine or distilled spirits, under the condition that the product will under no circumstances be sold, offered for sale, shipped, delivered for shipment, or otherwise introduced by the applicant, directly or indirectly, into interstate or foreign commerce.
</P>
<P><I>Certificate of label approval (COLA).</I> A certificate issued on form TTB Form 5100.31 that authorizes the bottling of wine, distilled spirits, or malt beverages, or the removal of bottled wine, distilled spirits, or malt beverages from customs custody for introduction into commerce, as long as the product bears labels identical to the labels appearing on the face of the certificate, or labels with changes authorized by TTB on the certificate or otherwise (such as through the issuance of public guidance available on the TTB website at <I>https://www.ttb.gov</I>).
</P>
<P><I>Container.</I> Any can, bottle, box, cask, keg, barrel or other closed receptacle, in any size or material, which is for use in the sale of malt beverages at retail.
</P>
<P><I>Customs officer.</I> An officer of U.S. Customs and Border Protection (CBP) or any agent or other person authorized by law to perform the duties of such an officer.
</P>
<P><I>Distinctive or fanciful name.</I> A descriptive name or phrase chosen to identify a malt beverage product on the label. It does not include a brand name, class or type designation, statement of composition, or designation known to the trade or consumers.
</P>
<P><I>FAA Act.</I> The Federal Alcohol Administration Act.
</P>
<P><I>Gallon.</I> A U.S. gallon of 231 cubic inches of malt beverages at 39.1 degrees Fahrenheit (4 degrees Celsius). All other liquid measures used are subdivisions of the gallon as defined.
</P>
<P><I>Interstate or foreign commerce.</I> Commerce between any State and any place outside of that State or commerce within the District of Columbia or commerce between points within the same State but through any place outside of that State.
</P>
<P><I>Keg collar.</I> A disk that is pushed down over the keg's bung or tap cover.
</P>
<P><I>Malt beverage.</I> A beverage made by the alcoholic fermentation of an infusion or decoction, or combination of both, in potable brewing water, of malted barley with hops, or their parts, or their products, and with or without other malted cereals, and with or without the addition of unmalted or prepared cereals, other carbohydrates or products prepared therefrom, and with or without the addition of carbon dioxide, and with or without other wholesome products suitable for human food consumption. See § 7.5 for standards applying to the use of processing methods and flavors in malt beverage production.
</P>
<P><I>Net contents.</I> The amount, by volume, of a malt beverage held in a container.
</P>
<P><I>Permittee.</I> Any person holding a basic permit under the FAA Act.
</P>
<P><I>Person.</I> Any individual, corporation, partnership, association, joint-stock company, business trust, limited liability company, or other form of business enterprise, including a receiver, trustee, or liquidating agent and including an officer or employee of any agency of a State or political subdivision of a State.
</P>
<P><I>Responsible advertiser.</I> The permittee or brewer responsible for the publication or broadcast of an advertisement.
</P>
<P><I>State.</I> One of the 50 States of the United States, the District of Columbia, or the Commonwealth of Puerto Rico.
</P>
<P><I>Tap cover.</I> A cap, usually made of plastic, that fits over the top of the tap (or bung) of a keg.
</P>
<P><I>TTB.</I> The Alcohol and Tobacco Tax and Trade Bureau of the Department of the Treasury.
</P>
<P><I>United States (U.S.).</I> The 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 7.2" NODE="27:1.0.1.1.5.1.43.2" TYPE="SECTION">
<HEAD>§ 7.2   Territorial extent.</HEAD>
<P>The provisions of this part apply to the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 7.3" NODE="27:1.0.1.1.5.1.43.3" TYPE="SECTION">
<HEAD>§ 7.3   General requirements and prohibitions under the FAA Act.</HEAD>
<P>(a) <I>Certificates of label approval (COLAs).</I> Subject to the requirements and exceptions set forth in the regulations in subpart B of this part, any brewer or wholesaler who bottles malt beverages, and any person who removes malt beverages in containers from customs custody for sale or any other commercial purpose, is required to first obtain from TTB a certificate of label approval (COLA) covering the label(s) on each container.
</P>
<P>(b) <I>Alteration, mutilation, destruction, obliteration, or removal of labels.</I> Subject to the requirements and exceptions set forth in the regulations in subpart C of this part, it is unlawful to alter, mutilate, destroy, obliterate, or remove labels on malt beverage containers. This prohibition applies to any person, including retailers, holding malt beverages for sale in interstate or foreign commerce or any person holding malt beverages for sale after shipment in interstate or foreign commerce.
</P>
<P>(c) <I>Labeling requirements for malt beverages.</I> Subject to the jurisdictional limits of the FAA Act, as set forth in § 7.4, it is unlawful for any person engaged in business as a brewer, wholesaler, or importer of malt beverages, directly or indirectly, or through an affiliate, to sell or ship, or deliver for sale or shipment, or otherwise introduce or receive in interstate or foreign commerce, or remove from customs custody, any malt beverages in containers unless such containers are marked, branded, labeled, and packaged in conformity with the regulations in this part.
</P>
<P>(d) <I>Labeled in accordance with this part.</I> In order to be labeled in accordance with the regulations in this part, a container of malt beverages must be in compliance with the following requirements:
</P>
<P>(1) It must bear one or more labels meeting the standards for “labels” set forth in subpart D of this part;
</P>
<P>(2) One or more of the labels on the container must include the mandatory information set forth in subpart E of this part;
</P>
<P>(3) Claims on any label, container, or packaging (as defined in § 7.81) must comply with the rules for restricted label statements, as applicable, set forth in subpart F of this part;
</P>
<P>(4) Statements or any other representations on any malt beverage label, container, or packaging (as defined in §§ 7.101 and 7.121) may not violate the regulations in subparts G and H of this part regarding certain practices on labeling of malt beverages; and
</P>
<P>(5) The class and type designation on any label, as well as any designation appearing on containers or packaging, must comply with the standards for classes and types set forth in subpart I of this part.


</P>
</DIV8>


<DIV8 N="§ 7.4" NODE="27:1.0.1.1.5.1.43.4" TYPE="SECTION">
<HEAD>§ 7.4   Jurisdictional limits of the FAA Act.</HEAD>
<P>(a) <I>Malt beverages sold in interstate or foreign commerce</I>—(1) <I>General.</I> The labeling provisions of this part apply to malt beverages sold or shipped or delivered for shipment, or otherwise introduced into or received in any State from any place outside thereof, only to the extent that the laws or regulations of such State impose requirements similar to the requirements of the regulations in this part, with respect to the labels and labeling of malt beverages not sold or shipped or delivered for shipment or otherwise introduced into or received in such State from any place outside thereof.
</P>
<P>(2) <I>Similar State law.</I> For purposes of this section, a “similar” State law may be found in State laws or regulations that apply specifically to malt beverages or in State laws or regulations that provide general labeling requirements that are not specific to malt beverages but that do apply to malt beverages. In order to be “similar” to the Federal requirements, the State requirements need not be identical to the Federal requirements. Nonetheless, if the label in question does not violate the laws or regulations of the State or States into which the brewer, wholesaler, or importer is shipping the malt beverages, it does not violate this part.
</P>
<P>(b) <I>Malt beverages not sold in interstate or foreign commerce.</I> The labeling regulations in this part do not apply to domestically bottled malt beverages that are not and will not be sold, or offered for sale, or shipped or delivered for shipment, or otherwise introduced in interstate or foreign commerce.


</P>
</DIV8>


<DIV8 N="§ 7.5" NODE="27:1.0.1.1.5.1.43.5" TYPE="SECTION">
<HEAD>§ 7.5   Ingredients and processes.</HEAD>
<P>(a) <I>Use of nonbeverage flavors and other nonbeverage ingredients containing alcohol.</I> (1) Nonbeverage flavors and other nonbeverage ingredients containing alcohol may be used in producing a malt beverage (sometimes referred to as a “flavored malt beverage”). Except as provided in paragraph (a)(2) of this section, no more than 49 percent of the overall alcohol content (determined without regard to any tolerance otherwise allowed by this part) of the finished product may be derived from the addition of nonbeverage flavors and other nonbeverage ingredients containing alcohol. For example, a finished malt beverage that contains 5.0 percent alcohol by volume must derive a minimum of 2.55 percent alcohol by volume from the fermentation of barley malt and other materials and may derive not more than 2.45 percent alcohol by volume from the addition of nonbeverage flavors and other nonbeverage ingredients containing alcohol.
</P>
<P>(2) In the case of malt beverages with an alcohol content of more than 6 percent by volume (determined without regard to any tolerance otherwise allowed by this part), no more than 1.5 percent of the volume of the malt beverage may consist of alcohol derived from added nonbeverage flavors and other nonbeverage ingredients containing alcohol.
</P>
<P>(b) <I>Processing.</I> Malt beverages may be filtered or otherwise processed in order to remove color, taste, aroma, bitterness, or other characteristics derived from fermentation.


</P>
</DIV8>


<DIV8 N="§ 7.6" NODE="27:1.0.1.1.5.1.43.6" TYPE="SECTION">
<HEAD>§ 7.6   Brewery products not covered by this part.</HEAD>
<P>Certain fermented products that are regulated as “beer” under the Internal Revenue Code (IRC) do not fall within the definition of a “malt beverage” under the FAA Act and thus are not subject to this part. See § 7.7 for related TTB regulations that may apply to these products. See §§ 25.11 and 27.11 of this chapter for the definition of “beer” under the IRC.
</P>
<P>(a) <I>Saké and similar products.</I> Saké and similar products (including products that fall within the definition of “beer” under parts 25 and 27 of this chapter) that fall within the definition of a “wine” under the FAA Act are covered by the labeling regulations for wine in 27 CFR part 4.
</P>
<P>(b) <I>Other beers not made with both malted barley and hops.</I> The regulations in this part do not cover beer products that are not made with both malted barley and hops, or their parts or their products, or that do not fall within the definition of a “malt beverage” under § 7.1 for any other reason. Bottlers and importers of alcohol beverages that do not fall within the definition of malt beverages, wine, or distilled spirits under the FAA Act should refer to the applicable labeling regulations for foods issued by the U.S. Food and Drug Administration. See 21 CFR part 101.


</P>
</DIV8>


<DIV8 N="§ 7.7" NODE="27:1.0.1.1.5.1.43.7" TYPE="SECTION">
<HEAD>§ 7.7   Other TTB labeling regulations that apply to malt beverages.</HEAD>
<P>In addition to the regulations in this part, malt beverages must also comply with the following TTB labeling regulations:
</P>
<P>(a) <I>Health warning statement.</I> Alcoholic beverages, including malt beverages, that contain at least 0.5 percent alcohol by volume, must be labeled with a health warning statement in accordance with the Alcoholic Beverage Labeling Act of 1988 (ABLA). The regulations implementing the ABLA are contained in 27 CFR part 16.
</P>
<P>(b) <I>Internal Revenue Code requirements.</I> The labeling and marking requirements for beer under the Internal Revenue Code are found in 27 CFR part 25, subpart J (for domestic breweries) and 27 CFR part 27, subpart E (for importers).


</P>
</DIV8>


<DIV8 N="§ 7.8" NODE="27:1.0.1.1.5.1.43.8" TYPE="SECTION">
<HEAD>§ 7.8   Malt beverages for export.</HEAD>
<P>The regulations in this part shall not apply to malt beverages exported in bond.


</P>
</DIV8>


<DIV8 N="§ 7.9" NODE="27:1.0.1.1.5.1.43.9" TYPE="SECTION">
<HEAD>§ 7.9   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 7.10" NODE="27:1.0.1.1.5.1.43.10" TYPE="SECTION">
<HEAD>§ 7.10   Other related regulations.</HEAD>
<P>(a) <I>TTB regulations.</I> Other TTB regulations that relate to malt beverages are listed in paragraphs (a)(1) through (8) of this section:
</P>
<P>(1) 27 CFR part 1—Basic Permit Requirements Under the Federal Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits;
</P>
<P>(2) 27 CFR part 13—Labeling Proceedings;
</P>
<P>(3) 27 CFR part 16—Alcoholic Beverage Health Warning Statement;
</P>
<P>(4) 27 CFR part 25—Beer;
</P>
<P>(5) 27 CFR part 26—Liquors and Articles from Puerto Rico and the Virgin Islands;
</P>
<P>(6) 27 CFR part 27—Importation of Distilled Spirits, Wines, and Beer;
</P>
<P>(7) 27 CFR part 28—Exportation of Alcohol; and
</P>
<P>(8) 27 CFR part 71—Rules of Practice in Permit Proceedings.
</P>
<P>(b) <I>Other Federal regulations.</I> The regulations listed in paragraphs (b)(1) through (8) of this section issued by other Federal agencies also may apply:
</P>
<P>(1) 7 CFR part 205—National Organic Program;
</P>
<P>(2) 19 CFR part 11—Packing and Stamping; Marking;
</P>
<P>(3) 19 CFR part 102—Rules of Origin;
</P>
<P>(4) 19 CFR part 134—Country of Origin Marking;
</P>
<P>(5) 21 CFR part 1—General Enforcement Provisions, Subpart H, Registration of Food Facilities, and Subpart I, Prior Notice of Imported Food;
</P>
<P>(6) 21 CFR parts 70-82, which pertain to food and color additives;
</P>
<P>(7) 21 CFR part 110—Current Good Manufacturing Practice in Manufacturing, Packing, or Holding Human Food; and
</P>
<P>(8) 21 CFR parts 170-189, which pertain to food additives and secondary direct food additives for human consumption.


</P>
</DIV8>


<DIV8 N="§ 7.11" NODE="27:1.0.1.1.5.1.43.11" TYPE="SECTION">
<HEAD>§ 7.11   Forms.</HEAD>
<P>(a) <I>General.</I> TTB prescribes and makes available all forms required by this part. Any person completing a form must provide all of the information required by each form as indicated by the headings on the form and the instructions for the form. Each form must be filed in accordance with this part and the instructions for the form.
</P>
<P>(b) <I>Electronically filing forms.</I> The forms required by this part can be filed electronically by using TTB's online filing systems: COLAs Online and Formulas Online. Anyone who intends to use one of these online filing systems must first register to use the system by accessing the TTB website at <I>https://www.ttb.gov.</I>
</P>
<P>(c) <I>Obtaining paper forms.</I> Forms required by this part are available for printing through the TTB website (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8002, Cincinnati, OH 45202.


</P>
</DIV8>


<DIV8 N="§ 7.12" NODE="27:1.0.1.1.5.1.43.12" TYPE="SECTION">
<HEAD>§ 7.12   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to “appropriate TTB officers.” To find out which officers have been delegated specific authorities, see the current version of TTB Order 1135.7, Delegation of the Administrator's Authorities in 27 CFR part 7, Labeling and Advertising of Malt Beverages. Copies of this order can be obtained by accessing the TTB website (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8002, Cincinnati, OH 45202.


</P>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.5.2" TYPE="SUBPART">
<HEAD>Subpart B—Certificates of Label Approval</HEAD>

<HD1>Requirements for Malt Beverages Bottled in the United States


</HD1>

<DIV8 N="§ 7.21" NODE="27:1.0.1.1.5.2.43.1" TYPE="SECTION">
<HEAD>§ 7.21   Requirement for certificates of label approval (COLAs) for malt beverages bottled in the United States.</HEAD>
<P>(a) <I>COLA requirement.</I> Subject to the requirements and exceptions set forth in paragraphs (b) and (c) of this section, a brewer or wholesaler bottling malt beverages must obtain a certificate of label approval (COLA) covering the malt beverages from TTB prior to bottling the malt beverages or removing the malt beverages from the premises where they were bottled.
</P>
<P>(b) <I>Malt beverages shipped or sold in interstate commerce.</I> Persons bottling malt beverages (other than malt beverages in customs custody) for shipment, or delivery for sale or shipment, into a State (from outside of that State) are required to obtain a COLA covering those malt beverages only if the laws or regulations of the State require that all malt beverages sold or otherwise disposed of in such State be labeled in conformity with the requirements of subparts D through I of this part. This requirement applies when the State has either adopted subparts D through I of this part in their entireties or has adopted requirements that are identical in effect to those set forth in subparts D through I of this part. In accordance with §§ 7.3 and 7.4, malt beverages that are not subject to the COLA requirements of this section may still be subject to the substantive labeling provisions of subparts D through I of this part to the extent that the State into which the malt beverages are being shipped has similar State laws or regulations.
</P>
<P>(c) <I>Products not shipped or sold in interstate commerce.</I> Persons bottling malt beverages that will not be shipped or delivered for sale or shipment in interstate or foreign commerce are not required to obtain a COLA or a certificate of exemption from label approval. (Note: A certificate of exemption from label approval is a certificate issued by TTB to cover a wine or distilled spirits product that will not be sold, offered for sale, shipped, delivered for shipment, or otherwise introduced, in interstate or foreign commerce.)
</P>
<P>(d) <I>Evidence of COLA.</I> Upon request by the appropriate TTB officer, a bottler or importer must provide evidence of label approval for a label used on a container of malt beverages that is subject to the COLA requirements of this part. This requirement may be satisfied by providing original COLAs, photocopies, or electronic copies of COLAs, or records showing the TTB identification number assigned to the approved COLA.


</P>
</DIV8>


<DIV8 N="§ 7.22" NODE="27:1.0.1.1.5.2.43.2" TYPE="SECTION">
<HEAD>§ 7.22   Rules regarding certificates of label approval (COLAs) for malt beverages bottled in the United States.</HEAD>
<P>(a) <I>What a COLA authorizes.</I> An approved TTB Form 5100.31 authorizes the bottling of malt beverages covered by the certificate of label approval (COLA), as long as the container bears labels identical to the labels appearing on the face of the COLA, or labels with changes authorized by TTB on the COLA or otherwise, (such as through the issuance of public guidance available on the TTB website at <I>https://www.ttb.gov</I>).
</P>
<P>(b) <I>When to obtain a COLA.</I> The COLA must be obtained prior to bottling. No brewer or wholesaler may bottle malt beverages or remove malt beverages from the premises where bottled unless a COLA has been obtained.
</P>
<P>(c) <I>Application for a COLA.</I> The bottler may apply for a COLA by submitting an application to TTB on Form 5100.31, in accordance with the instructions on the form. The bottler may apply for a COLA either electronically by accessing TTB's online system, COLAs Online, at <I>https://www.ttb.gov,</I> or by submitting the paper form. For procedures regarding the issuance of COLAs, see part 13 of this chapter.


</P>
</DIV8>


<DIV8 N="§ 7.23" NODE="27:1.0.1.1.5.2.43.3" TYPE="SECTION">
<HEAD>§ 7.23   [Reserved]</HEAD>
<HD1>Requirements for Malt Beverages Imported in Containers


</HD1>
</DIV8>


<DIV8 N="§ 7.24" NODE="27:1.0.1.1.5.2.43.4" TYPE="SECTION">
<HEAD>§ 7.24   Certificates of label approval (COLAs) for malt beverages imported in containers.</HEAD>
<P>(a) <I>Application requirement.</I> Any person removing malt beverages in containers from customs custody for consumption must first apply for and obtain a certificate of label approval (COLA) covering the malt beverages from the appropriate TTB officer, or obtain authorization to use the COLA from the person to whom the COLA is issued.
</P>
<P>(b) <I>Release of malt beverages from customs custody.</I> Malt beverages, imported in containers, are not eligible for release from customs custody for consumption, and no person may remove such malt beverages from customs custody for consumption, unless the person removing the malt beverages has obtained a COLA covering the malt beverages and is able to provide it (either electronically or on paper) upon request. Products imported under another person's COLA are eligible for release only if each bottle or individual container to be imported bears the name (or trade name) and address of the person to whom the COLA was issued by TTB, and only if the importer using the COLA to obtain release of a shipment can substantiate that the person to whom the COLA was issued has authorized its use by the importer.
</P>
<P>(c) <I>Filing requirements.</I> If filing electronically, the importer must file with U.S Customs and Border Protection (CBP), at the time of filing the customs entry, the TTB-assigned identification number of the valid COLA that corresponds to the label on the product or lot of malt beverages being imported. If the importer is not filing electronically, the importer must provide a copy of the COLA to CBP at the time of entry. In addition, the importer must provide a copy of the applicable COLA, and proof of the COLA holder's authorization if applicable, upon request by the appropriate TTB officer or a customs officer.
</P>
<P>(d) <I>Evidence of COLA.</I> Upon request by the appropriate TTB officer, an importer must provide evidence of label approval for a label used on a container of malt beverages that is subject to the COLA requirements of this part. This requirement may be satisfied by providing original COLAs, photocopies, or electronic copies of COLAs, or records showing the TTB identification number assigned to the approved COLA.
</P>
<P>(e) <I>Scope of this section.</I> The COLA requirement imposed by this section applies only to malt beverages that are removed for sale or any other commercial purpose. See 27 CFR 27.49, 27.74, and 27.75 for labeling exemptions applicable to certain imported samples of malt beverages.
</P>
<P>(f) <I>Relabeling in customs custody.</I> Containers of malt beverages in customs custody that are required to be covered by a COLA but are not labeled in conformity with a COLA must be relabeled, under the supervision and direction of customs officers, prior to their removal from customs custody for consumption.
</P>
<P>(g) <I>State law.</I> Paragraphs (a) through (c) of this section apply only if the laws or regulations of the State in which the malt beverages are withdrawn require that all malt beverages sold or otherwise disposed of in such State be labeled in conformity with the requirements of subparts D through I of this part. A State requires that malt beverages be labeled in conformity with the requirements of subparts D through I of this part when the State has either adopted subparts D through I of this part in their entireties or has adopted requirements identical in effect to those set forth in subparts D through I in this part. In accordance with §§ 7.3 and 7.4, malt beverages that are not subject to the COLA requirements of this section may still be subject to the substantive labeling provisions of subparts D through I of this part to the extent that the State into which the malt beverages are being shipped has similar State law or regulation.


</P>
</DIV8>


<DIV8 N="§ 7.25" NODE="27:1.0.1.1.5.2.43.5" TYPE="SECTION">
<HEAD>§ 7.25   Rules regarding certificates of label approval (COLAs) for malt beverages imported in containers.</HEAD>
<P>(a) <I>What a COLA authorizes.</I> An approved TTB Form 5100.31 authorizes the use of the labels covered by the certificate of label approval (COLA) on containers of malt beverages, as long as the container bears labels identical to the labels appearing on the face of the COLA, or labels with changes authorized by the form or otherwise authorized by TTB (such as through the issuance of public guidance available on the TTB website at <I>https://www.ttb.gov</I>).
</P>
<P>(b) <I>When to obtain a COLA.</I> The COLA must be obtained prior to the removal of malt beverages in containers from customs custody for consumption.
</P>
<P>(c) <I>Application for a COLA.</I> The person responsible for the importation of malt beverages must obtain approval of the labels by submitting an application to TTB on Form 5100.31. A person may apply for a COLA either electronically by accessing TTB's online system, COLAs Online, at <I>https://www.ttb.gov</I> or by submitting the paper form. For procedures regarding the issuance of COLAs, see part 13 of this chapter.
</P>
<HD1>Administrative Rules


</HD1>
</DIV8>


<DIV8 N="§ 7.27" NODE="27:1.0.1.1.5.2.43.6" TYPE="SECTION">
<HEAD>§ 7.27   Presenting certificates of label approval (COLAs) to Government officials.</HEAD>
<P>A certificate holder must present the original or a paper or electronic copy of the appropriate certificate of label approval (COLA) upon the request of any duly authorized representative of the United States Government.


</P>
</DIV8>


<DIV8 N="§ 7.28" NODE="27:1.0.1.1.5.2.43.7" TYPE="SECTION">
<HEAD>§ 7.28   Formulas, samples, and documentation.</HEAD>
<P>(a) Prior to or in conjunction with the review of an application for a certificate of label approval (COLA) on TTB Form 5100.31, the appropriate TTB officer may require a bottler or importer to submit a formula, the results of laboratory testing of the malt beverage, or a sample of any malt beverage or ingredients used in producing a malt beverage. After the issuance of a COLA, or with regard to any malt beverage required to be covered by a COLA, the appropriate TTB officer may require a full and accurate statement of the contents of the container.
</P>
<P>(b) A formula may be filed electronically by using Formulas Online, or it may be submitted on paper on TTB Form 5100.51. See § 7.11 for more information on forms and Formulas Online.


</P>
</DIV8>


<DIV8 N="§ 7.29" NODE="27:1.0.1.1.5.2.43.8" TYPE="SECTION">
<HEAD>§ 7.29   Personalized labels.</HEAD>
<P>(a) <I>General.</I> Applicants for label approval may obtain permission from TTB to make certain changes in order to personalize labels without having to resubmit labels for TTB approval. A personalized label is an alcohol beverage label that meets the minimum mandatory label requirements and is customized for customers. Personalized labels may contain a personal message, picture, or other artwork that is specific to the consumer who is purchasing the product. For example, a brewer may offer individual or corporate customers labels that commemorate an event such as a wedding or grand opening.
</P>
<P>(b) <I>Application.</I> Any person who intends to offer personalized labels must submit a template for the personalized label as part of the application for label approval required under §§ 7.21 or 7.24, and must note on the application a description of the specific personalized information that may change.
</P>
<P>(c) <I>Approval of personalized label.</I> If the application complies with the regulations, TTB will issue a certificate of label approval (COLA) with a qualification allowing the personalization of labels. The qualification will allow the certificate holder to add or change items on the personalized label such as salutations, names, graphics, artwork, congratulatory dates and names, or event dates without applying for a new COLA. All of these items on personalized labels must comply with the regulations of this part.
</P>
<P>(d) <I>Changes not allowed to personalized labels.</I> Approval of an application to personalize labels does not authorize the addition of any information that discusses either the alcohol beverage or characteristics of the alcohol beverage or that is inconsistent with or in violation of the provisions of this part or any other applicable provision of law or regulations.


</P>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.5.3" TYPE="SUBPART">
<HEAD>Subpart C—Alteration of Labels, Relabeling, and Adding Information to Containers</HEAD>


<DIV8 N="§ 7.41" NODE="27:1.0.1.1.5.3.43.1" TYPE="SECTION">
<HEAD>§ 7.41   Alteration of labels.</HEAD>
<P>(a) <I>Prohibition.</I> It is unlawful for any person to alter, mutilate, destroy, obliterate or remove any mark, brand, or label on malt beverages in containers held for sale in interstate or foreign commerce, or held for sale after shipment in interstate or foreign commerce, except as authorized by §§ 7.42, 7.43, or 7.44, or as otherwise authorized by Federal law.
</P>
<P>(b) <I>Authorized relabeling.</I> For purposes of the relabeling activities authorized by this subpart, the term “relabel” includes the alteration, mutilation, destruction, obliteration, or removal of any existing mark, brand, or label on the container, as well as the addition of a new label (such as a sticker that adds information about the product or information engraved on the container) to the container, and the replacement of a label with a new label bearing identical information.
</P>
<P>(c) <I>Obligation to comply with other requirements.</I> Authorization to relabel under this subpart:
</P>
<P>(1) In no way authorizes the placement of labels on containers that do not accurately reflect the brand, bottler, identity, or other characteristics of the product;
</P>
<P>(2) Does not relieve the person conducting the relabeling operations from any obligation to comply with the regulations in this part and with State or local law: and,
</P>
<P>(3) Does not relieve the person conducting the relabeling operations from any obligation to obtain permission from the owner of the brand where otherwise required.


</P>
</DIV8>


<DIV8 N="§ 7.42" NODE="27:1.0.1.1.5.3.43.2" TYPE="SECTION">
<HEAD>§ 7.42   Authorized relabeling activities by brewers and importers.</HEAD>
<P>(a) <I>Relabeling at brewery premises.</I> A brewer may relabel domestically bottled malt beverages prior to removal from, and after return to bond at, the brewery premises, with labels covered by a certificate of label approval (COLA) without obtaining separate permission from TTB for the relabeling activity, provided that the brewer is the certificate holder (and bottler).
</P>
<P>(b) <I>Relabeling after removal from brewery premises.</I> A brewer may relabel domestically bottled malt beverages (or direct the relabeling of such malt beverages by an authorized agent) after removal from brewery premises with labels covered by a COLA, without obtaining separate permission from TTB for the relabeling activity, provided that the brewer is the certificate holder (and bottler).
</P>
<P>(c) <I>Relabeling in customs custody.</I> Under the supervision of U.S. customs officers, imported malt beverages in containers in customs custody may be relabeled without obtaining separate permission from TTB for the relabeling activity. Such containers must bear labels covered by a certificate of label approval (COLA) upon their removal from customs custody for consumption. See § 7.24(b).
</P>
<P>(d) <I>Relabeling after removal from customs custody.</I> The importer of malt beverages in containers may relabel such malt beverages (or direct the relabeling of such malt beverages by an authorized agent) after removal from customs custody without obtaining separate permission from TTB for the relabeling activity, as long as the labels are covered by a COLA.


</P>
</DIV8>


<DIV8 N="§ 7.43" NODE="27:1.0.1.1.5.3.43.3" TYPE="SECTION">
<HEAD>§ 7.43   Relabeling activities that require separate written authorization from TTB.</HEAD>
<P>(a) <I>General.</I> Any permittee or brewer holding malt beverages for sale who needs to relabel the containers but is not the original bottler may apply for written permission for the relabeling of malt beverage containers. The appropriate TTB officer may permit relabeling of malt beverages in containers if the facts show that the relabeling is for the purpose of compliance with the requirements of this part or State law, or for the purpose of replacing damaged labels.
</P>
<P>(b) <I>Application.</I> The written application must include:
</P>
<P>(1) Copies of the original and proposed new labels;
</P>
<P>(2) The circumstances of the request, including the reason for relabeling;
</P>
<P>(3) The number of containers to be relabeled;
</P>
<P>(4) The location where the relabeling will take place; and,
</P>
<P>(5) The name and address of the person who will be conducting the relabeling operations.


</P>
</DIV8>


<DIV8 N="§ 7.44" NODE="27:1.0.1.1.5.3.43.4" TYPE="SECTION">
<HEAD>§ 7.44   Adding a label or other information to a container that identifies the wholesaler, retailer, or consumer.</HEAD>
<P>Any label or other information that identifies the wholesaler, retailer, or consumer of the malt beverage may be added to containers (by the addition of stickers, engraving, stenciling, etc.) without prior approval from TTB and without being covered by a certificate of label approval. Such information may be added before or after the containers are removed from brewery premises or released from customs custody. The information added:
</P>
<P>(a) May not violate the provisions of subparts F, G, and H of this part;
</P>
<P>(b) May not contain any reference to the characteristics of the product; and
</P>
<P>(c) May not be added to the container in such a way that it obscures any other label on the container.


</P>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.5.4" TYPE="SUBPART">
<HEAD>Subpart D—Label Standards</HEAD>


<DIV8 N="§ 7.51" NODE="27:1.0.1.1.5.4.43.1" TYPE="SECTION">
<HEAD>§ 7.51   Requirement for firmly affixed labels.</HEAD>
<P>(a) <I>General rule.</I> Except as otherwise provided in paragraph (b) of this section, any label that is not an integral part of the container must be affixed to the container in such a way that it cannot be removed without thorough application of water or other solvents.
</P>
<P>(b) <I>Exception for keg labels.</I> The following provisions apply to labels on kegs with a capacity of 5.16 gallons or more that bear mandatory information, as defined by § 7.61(a)(5), and are in the form of a keg collar or tap cover, as defined in § 7.1.
</P>
<P>(1) Such keg collars or tap covers are considered to be firmly affixed if removal would break or destroy the keg collar or tap cover in such a way that it cannot be reused.
</P>
<P>(2) Such keg collars or tap covers are not required to be firmly affixed, provided that the name of the bottler or importer of the malt beverage, as applicable under §§ 7.66-7.68, is permanently or semi-permanently stated on the keg in the form of embossing, engraving, stamping, or through the use of a sticker or ink jet method.
</P>
<P>(c) This section in no way affects the requirements of part 16 of this chapter regarding the mandatory health warning statement.


</P>
</DIV8>


<DIV8 N="§ 7.52" NODE="27:1.0.1.1.5.4.43.2" TYPE="SECTION">
<HEAD>§ 7.52   Legibility and other requirements for mandatory information on labels.</HEAD>
<P>(a) <I>Readily legible.</I> Mandatory information on labels must be readily legible to potential consumers under ordinary conditions.
</P>
<P>(b) <I>Separate and apart.</I> Subject to the exceptions below, mandatory information on labels, except brand names, must be separate and apart from any additional information.
</P>
<P>(1) This does not preclude the addition of brief optional phrases of additional information as part of the class or type designation (such as “premium malt beverage”), the name and address statement (such as “Proudly brewed and bottled by ABC Brewing Co. in Pittsburgh, PA, for over 30 years”), or other information required by § 7.63(a). The statements required by § 7.63(b) may not include additional information.
</P>
<P>(2) Mandatory information (other than an aspartame declaration required by § 7.63(b)(4)) may be contained among other descriptive or explanatory information if the script, type, or printing of the mandatory information is substantially more conspicuous than that of the descriptive or explanatory information.
</P>
<P>(c) <I>Contrasting background.</I> Mandatory information must appear in a color that contrasts with the background on which it appears, except that if the net contents or the name and address are blown into a glass container, they need not be contrasting. The color of the container and of the malt beverages must be taken into account if the label is transparent or if mandatory label information is etched, engraved, sandblasted, or otherwise carved into the surface of the container or is branded, stenciled, painted, printed, or otherwise directly applied on to the surface of the container. Examples of acceptable contrasts are:
</P>
<P>(1) Black lettering appearing on a white or cream background; or
</P>
<P>(2) White or cream lettering appearing on a black background.
</P>
<P>(d) <I>Capitalization.</I> Except for the aspartame statement when required by § 7.63(b)(4), which must appear in all capital letters, mandatory information may appear in all capital letters, in all lower case letters, or in mixed-case using both capital and lower-case letters.


</P>
</DIV8>


<DIV8 N="§ 7.53" NODE="27:1.0.1.1.5.4.43.3" TYPE="SECTION">
<HEAD>§ 7.53   Type size of mandatory information and alcohol content statements.</HEAD>
<P>(a) All capital and lowercase letters in statements of mandatory information on labels must meet the following type size requirements.
</P>
<P>(1) <I>Minimum type size</I>—<I>Containers of more than one-half pint.</I> All mandatory information (including an alcohol content statement required by § 7.63(a)(3)) must be in script, type, or printing that is at least two millimeters in height.
</P>
<P>(2) <I>Minimum type size</I>—<I>Containers of one-half pint or less.</I> All mandatory information (including an alcohol content statement required by § 7.63(a)(3)) must be in script, type, or printing that is at least one millimeter in height.
</P>
<P>(b) <I>Maximum type size for mandatory and optional alcohol content statements</I>—(1) <I>Containers of more than 40 fluid ounces.</I> An alcohol content statement, whether required or optional under this part, may not appear in script, type, or printing that is more than four millimeters in height on containers of malt beverages of more than 40 fluid ounces.
</P>
<P>(2) <I>Containers of 40 fluid ounces or less.</I> An alcohol content statement, whether required or optional under this part, may not appear in script, type, or printing that is more than three millimeters in height on containers of malt beverages of 40 fluid ounces or less.


</P>
</DIV8>


<DIV8 N="§ 7.54" NODE="27:1.0.1.1.5.4.43.4" TYPE="SECTION">
<HEAD>§ 7.54   Visibility of mandatory information.</HEAD>
<P>Mandatory information on a label must be readily visible and may not be covered or obscured in whole or in part. See § 7.62 for rules regarding packaging of containers (including cartons, coverings, and cases). See subpart N of this part for regulations pertaining to advertising materials.


</P>
</DIV8>


<DIV8 N="§ 7.55" NODE="27:1.0.1.1.5.4.43.5" TYPE="SECTION">
<HEAD>§ 7.55   Language requirements.</HEAD>
<P>(a) <I>General.</I> Mandatory information must appear in the English language, with the exception of the brand name and except as provided in paragraph (c) of this section.
</P>
<P>(b) <I>Foreign languages.</I> Additional statements in a foreign language, including translations of mandatory information that appears elsewhere in English on the label, are allowed on labels and containers as long as they do not in any way conflict with, or contradict, the requirements of this part.
</P>
<P>(c) <I>Malt beverages for consumption in the Commonwealth of Puerto Rico.</I> Mandatory information may be stated solely in the Spanish language on labels of malt beverages bottled for consumption within the Commonwealth of Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 7.56" NODE="27:1.0.1.1.5.4.43.6" TYPE="SECTION">
<HEAD>§ 7.56   Additional information.</HEAD>
<P>Information (other than mandatory information) that is truthful, accurate, and specific, and that does not violate subpart F, G, or H of this part, may appear on labels. Such additional information may not conflict with, modify, qualify or restrict mandatory information in any manner.


</P>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.5.5" TYPE="SUBPART">
<HEAD>Subpart E—Mandatory Label Information</HEAD>


<DIV8 N="§ 7.61" NODE="27:1.0.1.1.5.5.43.1" TYPE="SECTION">
<HEAD>§ 7.61   What constitutes a label for purposes of mandatory information.</HEAD>
<P>(a) <I>Label.</I> Certain information, as outlined in § 7.63, must appear on a label. When used in this part for purposes of determining where mandatory information must appear, the term “label” includes:
</P>
<P>(1) Material affixed to the container, whether made of paper, plastic, metal, or other matter;
</P>
<P>(2) For purposes of the net contents statement and the name and address statement only, information blown, embossed, or molded into the container as part of the process of manufacturing the container;
</P>
<P>(3) Information etched, engraved, sandblasted, or otherwise carved into the surface of the container;
</P>
<P>(4) Information branded, stenciled, painted, printed, or otherwise directly applied on to the surface of the container; and
</P>
<P>(5) Information on a keg collar or a tap cover of a keg, only if it includes mandatory information that is not repeated elsewhere on a label firmly affixed to the container and only if it meets the requirements of § 7.51.
</P>
<P>(b) <I>Information appearing elsewhere on the container.</I> Information appearing on the following parts of the container is subject to all of the restrictions and prohibitions set forth in subparts F, G, and H of this part, but will not satisfy any requirements in this part for mandatory information that must appear on labels:
</P>
<P>(1) Material affixed to, or information appearing on, the bottom surface of the container;
</P>
<P>(2) Caps, corks, or other closures unless authorized to bear mandatory information by the appropriate TTB officer; and
</P>
<P>(3) Foil or heat shrink bottle capsules.
</P>
<P>(c) <I>Materials not firmly affixed to the container.</I> Any materials that accompany the container to the consumer but are not firmly affixed to the container, including booklets, leaflets, and hang tags, are not “labels” for purposes of this part. Such materials are instead subject to the advertising regulations in subpart N of this part.


</P>
</DIV8>


<DIV8 N="§ 7.62" NODE="27:1.0.1.1.5.5.43.2" TYPE="SECTION">
<HEAD>§ 7.62   Packaging (cartons, coverings, and cases).</HEAD>
<P>(a) <I>General.</I> The term “packaging” includes any covering, carton, case, carrier, or other packaging of malt beverage containers used for sale at retail, but does not include shipping cartons or cases that are not intended to accompany the container to the consumer.
</P>
<P>(b) <I>Prohibition.</I> Any packaging of malt beverage containers may not contain any statement, design, device, or graphic, pictorial, or emblematic representation that is prohibited on labels by regulations in subpart F, G, or H of this part.
</P>
<P>(c) <I>Other information on packaging.</I> The following requirements apply to optional information on packaging.
</P>
<P>(1) The packaging may display any information that is not in conflict with the labeling on the container or containers within the packaging.
</P>
<P>(2) If the packaging displays a brand name, it must display the brand name in its entirety. For example, if a brand name is required to be modified with additional information on the container or containers within the packaging, the packaging must also display the same modifying language.
</P>
<P>(3) If the packaging displays a class or type designation it must be identical to the class or type designation appearing on the container or containers within the packaging. For example, if the packaging displays a class or type designation for a specialty product for which a statement of composition is required on the container, the packaging must include the statement of composition as well.
</P>
<P>(d) <I>Labeling of containers within the packaging.</I> The container or containers within the packaging are subject to all labeling requirements of this part, including mandatory labeling information requirements, regardless of whether the packaging bears such information.


</P>
</DIV8>


<DIV8 N="§ 7.63" NODE="27:1.0.1.1.5.5.43.3" TYPE="SECTION">
<HEAD>§ 7.63   Mandatory label information.</HEAD>
<P>(a) <I>Mandatory information.</I> Malt beverage containers must bear a label or labels (as defined in § 7.61(a)) containing the following information:
</P>
<P>(1) Brand name, in accordance with § 7.64;
</P>
<P>(2) Class, type, or other designation, in accordance with subpart I of this part;
</P>
<P>(3) Alcohol content, in accordance with § 7.65, for malt beverages that contain any alcohol derived from added nonbeverage flavors or other added nonbeverage ingredients (other than hops extract) containing alcohol;
</P>
<P>(4) Name and address of the bottler or importer (which may be blown, embossed, or molded into the container as part of the process of manufacturing the container), in accordance with § 7.66, 7.67, or 7.68, as applicable; and
</P>
<P>(5) Net contents (which may be blown, embossed, or molded into the container as part of the process of manufacturing the container), in accordance with § 7.70.
</P>
<P>(b) <I>Disclosure of certain ingredients.</I> Certain ingredients must be declared on a label without the inclusion of any additional information as part of the statement as follows:
</P>
<P>(1) <I>FD&amp;C Yellow No. 5.</I> If a malt beverage contains the coloring material FD&amp;C Yellow No. 5, the label must include a statement to that effect, such as “FD&amp;C Yellow No. 5” or “Contains FD&amp;C Yellow No. 5.”
</P>
<P>(2) <I>Cochineal extract or carmine.</I> If a malt beverage contains the color additive cochineal extract or the color additive carmine, the label must include a statement to that effect, using the respective common or usual name (such as, “contains cochineal extract” or “contains carmine”). This requirement applies to labels when either of the coloring materials is used in a malt beverage that is removed from bottling premises or from customs custody on or after April 16, 2013.
</P>
<P>(3) <I>Sulfites.</I> If a malt beverage contains 10 or more parts per million of sulfur dioxide or other sulfiting agent(s) measured as total sulfur dioxide, the label must include a statement to that effect. Examples of acceptable statements are “Contains sulfites” or “Contains (a) sulfiting agent(s)” or a statement identifying the specific sulfiting agent. The alternative terms “sulphites” or “sulphiting” may be used.
</P>
<P>(4) <I>Aspartame.</I> If the malt beverage contains aspartame, the label must include the following statement, in capital letters, separate and apart from all other information: “PHENYLKETONURICS: CONTAINS PHENYLALANINE.”


</P>
</DIV8>


<DIV8 N="§ 7.64" NODE="27:1.0.1.1.5.5.43.4" TYPE="SECTION">
<HEAD>§ 7.64   Brand name.</HEAD>
<P>(a) <I>Requirement.</I> The malt beverage label must include a brand name. If the malt beverage is not sold under a brand name, then the name of the bottler or importer, as applicable, appearing in the name and address statement is treated as the brand name.
</P>
<P>(b) <I>Misleading brand names.</I> Labels may not include any misleading brand names. A brand name is misleading if it creates (by itself or in association with other printed or graphic matter) any erroneous impression or inference as to the age, origin, identity, or other characteristics of the malt beverage. A brand name that would otherwise be misleading may be qualified with the word “brand” or with some other qualification if the appropriate TTB officer determines that the qualification dispels any misleading impression that might otherwise be created.


</P>
</DIV8>


<DIV8 N="§ 7.65" NODE="27:1.0.1.1.5.5.43.5" TYPE="SECTION">
<HEAD>§ 7.65   Alcohol content.</HEAD>
<P>(a) <I>General.</I> Alcohol content and the percentage and quantity of the original gravity or extract may be stated on any malt beverage label, unless prohibited by State law. When alcohol content is stated, and the manner of statement is not required under State law, it must be stated as prescribed in paragraph (b) of this section.
</P>
<P>(b) <I>How the alcohol content must be expressed.</I> The following rules apply to both mandatory and optional statements of alcohol content.
</P>
<P>(1) A statement of alcohol content must be expressed as a percentage of alcohol by volume. Other truthful, accurate, and specific factual representations of alcohol content, such as alcohol by weight, may be made, as long as they appear together with, and as part of, the statement of alcohol content as a percentage of alcohol by volume.
</P>
<P>(2) For malt beverages containing one half of one percent (0.5 percent) or more alcohol by volume, statements of alcohol content must be expressed to the nearest one-tenth of a percentage point, subject to the tolerance permitted by paragraph (c) of this section. For malt beverages containing less than 0.5 percent alcohol by volume, alcohol content may be expressed either to the nearest one-tenth or the nearest one-hundredth of a percentage point, and such statements are not subject to any tolerance. See paragraph (e) of this section for the rules applicable to such statements.
</P>
<P>(3)(i) The alcohol content statement must be expressed in one of the following formats:
</P>
<P>(A) “Alcohol percent by volume”;
</P>
<P>(B) “percent alcohol by volume”; or
</P>
<P>(C) “Alcohol by volume: percent.”
</P>
<P>(ii) Any of the words or symbols may be enclosed in parentheses and authorized abbreviations may be used with or without a period. The alcohol content statement does not have to appear with quotation marks.
</P>
<P>(4) The statements listed in paragraph (b)(3) of this section must appear as shown, except that the following abbreviations may be used: Alcohol may be abbreviated as “alc”; percent may be represented by the percent symbol “%”; alcohol and volume may be separated by a slash “/” in lieu of the word “by”; and volume may be abbreviated as “vol”.
</P>
<P>(5) <I>Examples.</I> The following are examples of alcohol content statements that comply with the requirements of this part:
</P>
<P>(i) “4.2% alc/vol”;
</P>
<P>(ii) “Alc. 4.0 percent by vol.”;
</P>
<P>(iii) “Alc 4% by vol”; and
</P>
<P>(iv) “5.9% Alcohol by Volume.”
</P>
<P>(c) <I>Tolerances.</I> Except as provided by paragraph (d) of this section, a tolerance of 0.3 percentage points will be permitted, either above or below the stated alcohol content, for malt beverages containing 0.5 percent or more alcohol by volume. However, any malt beverage that is labeled as containing 0.5 percent or more alcohol by volume may not contain less than 0.5 percent alcohol by volume, regardless of any tolerance. The tolerance provided by this paragraph does not apply in determining compliance with the provisions of § 7.5 regarding the percentage of alcohol derived from added nonbeverage flavors and other nonbeverage ingredients containing alcohol.
</P>
<P>(d) <I>Low alcohol and reduced alcohol.</I> The terms “low alcohol” or “reduced alcohol” may be used only on labels of malt beverages containing less than 2.5 percent alcohol by volume. The actual alcohol content may not equal or exceed 2.5 percent alcohol by volume, regardless of any tolerance permitted by paragraph (c) of this section.
</P>
<P>(e) <I>Non-alcoholic.</I> The term “non-alcoholic” may be used on labels of malt beverages only if the statement “contains less than 0.5 percent (or .5%) alcohol by volume” appears immediately adjacent to it, in readily legible printing, and on a completely contrasting background. No tolerances are permitted for malt beverages labeled as “non-alcoholic” and containing less than 0.5 percent alcohol by volume. A malt beverage may not be labeled with an alcohol content of 0.0 percent alcohol by volume, unless it is also labeled as “alcohol free” in accordance with paragraph (f) of this section, and contains no alcohol.
</P>
<P>(f) <I>Alcohol free.</I> The term “alcohol free” may be used only on malt beverages containing no alcohol. No tolerances are permitted for “alcohol free” malt beverages.


</P>
</DIV8>


<DIV8 N="§ 7.66" NODE="27:1.0.1.1.5.5.43.6" TYPE="SECTION">
<HEAD>§ 7.66   Name and address for domestically bottled malt beverages that were wholly fermented in the United States.</HEAD>
<P>(a) <I>General.</I> Domestically bottled malt beverages that were wholly fermented in the United States and contain no imported malt beverages must be labeled in accordance with this section. (See §§ 7.67 and 7.68 for name and address requirements applicable to malt beverages that are not wholly fermented in the United States.)
</P>
<P>(b) <I>Mandatory statement.</I> A label on the container must state the name and address of the bottler, in accordance with the rules set forth in this section.
</P>
<P>(c) <I>Form of address.</I> The address consists of the city and State and must be consistent with the information reflected on the brewer's notice required under part 25 of this chapter. Addresses may, but are not required to, include additional information such as street names, counties, zip codes, phone numbers, and website addresses. The postal abbreviation of the State name may be used; for example, California may be abbreviated as CA.
</P>
<P>(d) <I>Optional statements.</I> The bottler may, but is not required to, be identified by a phrase describing the function performed by that person, such as “bottled by,” “canned by,” “packed by,” or “filled by,” followed by the name and address of the bottler. If one person performs more than one function, the label may so indicate (for example, “brewed and bottled by XYZ Brewery.”) If different functions are performed by more than one person, statements on the label may not create the misleading impression that the different functions were performed by the same person. The appropriate TTB officer may require specific information about the functions performed if necessary to prevent a misleading impression on the label.
</P>
<P>(e) <I>Principal place of business.</I> The bottler's principal place of business may be shown in lieu of the actual place where the malt beverage was bottled if the address shown is a location where a bottling operation takes place. The appropriate TTB officer may disapprove the listing of a principal place of business if its use would create a false or misleading impression as to the geographic origin of the malt beverage. See 27 CFR 25.141 and 25.142 for coding requirements applicable in these circumstances.
</P>
<P>(f) <I>Multiple breweries under the same ownership.</I> If two or more breweries are owned or operated by the same person, the place where the malt beverage is bottled within the meaning of paragraph (a) of this section may be shown in one of the following two ways:
</P>
<P>(1) <I>Listing of where bottled.</I> The place where the malt beverage is bottled may be shown as the only location on the label; or
</P>
<P>(2) <I>Listing of all brewer's locations.</I> The place where the malt beverage is bottled may appear in a listing of the locations of breweries owned by that person if the place of bottling is not given less emphasis than any of the other locations. See 27 CFR 25.141 and 25.142 for coding requirements applicable in these circumstances.
</P>
<P>(g) <I>Malt beverages bottled for another person.</I> (1) If malt beverages are bottled for another person, the label may state, in addition to (but not in lieu of) the name and address of the bottler, the name and address of such other person, immediately preceded by the words “brewed and bottled for” or “bottled for” or another similar appropriate phrase. Such statements must clearly indicate the relationship between the two persons (for example, contract brewing).
</P>
<P>(2) If the same brand of malt beverage is brewed and bottled by two or more breweries that are not under the same ownership, the label for each brewery may set forth all the locations where bottling takes place, as long as the label uses the actual location (and not the principal place of business) and as long as the nature of the arrangement is clearly set forth.
</P>
<P>(h) <I>Use of trade names.</I> The name of the person appearing on the label may be the trade name or the operating name, as long as it is identical to a trade or operating name appearing on the brewer's notice.


</P>
</DIV8>


<DIV8 N="§ 7.67" NODE="27:1.0.1.1.5.5.43.7" TYPE="SECTION">
<HEAD>§ 7.67   Name and address for domestically bottled malt beverages that were bottled after importation.</HEAD>
<P>(a) <I>General.</I> This section applies to domestically bottled malt beverages that were bottled after importation. See § 7.68 for name and address requirements applicable to imported malt beverages that are imported in a container. See 19 CFR parts 102 and 134 for U.S. Customs and Border Protection country of origin marking requirements.
</P>
<P>(b) <I>Malt beverages that were subject to blending or other production activities after importation.</I> Malt beverages that were subject, after importation, to blending or other production may not bear an “imported by” statement on the label, but must instead be labeled in accordance with the rules set forth in § 7.66 with regard to mandatory and optional labeling statements.
</P>
<P>(c) <I>Malt beverages bottled after importation without blending or other production activities.</I> The label on malt beverages that are bottled without being subject to blending or other production activities in the United States after the malt beverages were imported must state the words “imported by” or a similar appropriate phrase, followed by the name and address of the importer. The label must also state the words “bottled by” or “packed by,” followed by the name and address of the bottler, except that the following phrases are acceptable in lieu of the name and address of the bottler under the circumstances set forth below:
</P>
<P>(1) If the malt beverages were bottled for the person responsible for the importation, the words “imported and bottled (canned, packed or filled) in the United States for” (or a similar appropriate phrase) followed by the name and address of the principal place of business in the United States of the person responsible for the importation;
</P>
<P>(2) If the malt beverages were bottled by the person responsible for the importation, the words “imported and bottled (canned, packed or filled) in the United States by” (or a similar appropriate phrase) followed by the name and address of the principal place of business in the United States of the person responsible for the importation;
</P>
<P>(3) In the situations set forth in paragraphs (c)(1) and (2) of this section, the address shown on the label may be that of the principal place of business of the importer who is also the bottler, provided that the address shown is a location where bottling takes place.
</P>
<P>(d) <I>Use of trade names.</I> A trade name may be used if the trade name is listed on the importer's basic permit.


</P>
</DIV8>


<DIV8 N="§ 7.68" NODE="27:1.0.1.1.5.5.43.8" TYPE="SECTION">
<HEAD>§ 7.68   Name and address for malt beverages that are imported in a container.</HEAD>
<P>(a) <I>General.</I> This section applies to malt beverages that are imported in a container, as defined in § 7.1. See § 7.67 for rules regarding name and address requirements applicable to malt beverages that are domestically bottled after importation. See 19 CFR parts 102 and 134 for U.S. Customs and Border Protection country of origin marking requirements.
</P>
<P>(b) <I>Mandatory labeling statement.</I> The label on malt beverages imported in containers, as defined in § 7.1, must state the words “imported by” or a similar appropriate phrase, followed by the name and address of the importer.
</P>
<P>(1) For purposes of this section, the importer is the holder of the importer's basic permit that either makes the original customs entry or is the person for whom such entry is made, or the holder of the importer's basic permit that is the agent, distributor, or franchise holder for the particular brand of imported alcohol beverages and that places the order abroad.
</P>
<P>(2) The address of the importer must be stated as the city and State of the principal place of business and must be consistent with the address reflected on the importer's basic permit. Addresses may, but are not required to, include additional information such as street names, counties, zip codes, phone numbers, and website addresses. The postal abbreviation of the State name may be used; for example, California may be abbreviated as CA.


</P>
</DIV8>


<DIV8 N="§ 7.69" NODE="27:1.0.1.1.5.5.43.9" TYPE="SECTION">
<HEAD>§ 7.69   Country of origin.</HEAD>
<P>For U.S. Customs and Border Protection (CBP) rules regarding country of origin marking requirements, see the CBP regulations at 19 CFR parts 102 and 134.


</P>
</DIV8>


<DIV8 N="§ 7.70" NODE="27:1.0.1.1.5.5.43.10" TYPE="SECTION">
<HEAD>§ 7.70   Net contents.</HEAD>
<P>The following rules apply to the net contents statement required by § 7.63.
</P>
<P>(a) The volume of malt beverage in the container must appear on a label as a net contents statement using the following measures:
</P>
<P>(1) If less than one pint, the net contents must be stated in fluid ounces or fractions of a pint.
</P>
<P>(2) If one pint, one quart, or one gallon, the net contents must be so stated.
</P>
<P>(3) If more than one pint, but less than one quart, the net contents must be stated in fractions of a quart, or in pints and fluid ounces.
</P>
<P>(4) If more than one quart, but less than one gallon, the net contents must be stated in fractions of a gallon, or in quarts, pints, and fluid ounces.
</P>
<P>(5) If more than one gallon, the net contents must be stated in gallons and fractions thereof.
</P>
<P>(b) All fractions must be expressed in their lowest denominations.
</P>
<P>(c) Metric measures may be used in addition to, but not in lieu of, the U.S. customary units of measurement and must appear in the same field of vision.


</P>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.5.6" TYPE="SUBPART">
<HEAD>Subpart F—Restricted Labeling Statements</HEAD>


<DIV8 N="§ 7.81" NODE="27:1.0.1.1.5.6.43.1" TYPE="SECTION">
<HEAD>§ 7.81   General.</HEAD>
<P>(a) <I>Application.</I> The labeling practices, statements, and representations in this subpart may be used on malt beverage labels only when used in compliance with this subpart. In addition, if any of the practices, statements, or representations in this subpart are used elsewhere on containers or in packaging, they must comply with the requirements of this subpart. For purposes of this subpart:
</P>
<P>(1) The term “label” includes all labels on malt beverage containers on which mandatory information may appear, as set forth in § 7.61(a), as well as any other label on the container.
</P>
<P>(2) The term “container” includes all parts of the malt beverage container, including any part of a malt beverage container on which mandatory information may appear, as well as those parts of the container on which information does not satisfy mandatory labeling requirements, as set forth in § 7.61(b).
</P>
<P>(3) The term “packaging” includes any carton, case, carrier, individual covering, or other packaging of such containers used for sale at retail, but does not include shipping cartons or cases that are not intended to accompany the container to the consumer.
</P>
<P>(b) <I>Statement or representation.</I> For purposes of this subpart, the term “statement or representation” includes any statement, design, device, or representation, and includes pictorial or graphic designs or representations as well as written ones. The term “statement or representation” includes explicit and implicit statements and representations.


</P>
</DIV8>


<DIV7 N="43" NODE="27:1.0.1.1.5.6.43" TYPE="SUBJGRP">
<HEAD>Food Allergen Labeling</HEAD>


<DIV8 N="§ 7.82" NODE="27:1.0.1.1.5.6.43.2" TYPE="SECTION">
<HEAD>§ 7.82   Voluntary disclosure of major food allergens.</HEAD>
<P>(a) <I>Definitions.</I> For purposes of this section, the following terms have the meanings indicated.
</P>
<P>(1) <I>Major food allergen</I> means any of the following:
</P>
<P>(i) Milk, egg, fish (for example, bass, flounder, or cod), Crustacean shellfish (for example, crab, lobster, or shrimp), tree nuts (for example, almonds, pecans, or walnuts), wheat, peanuts, and soybeans; or
</P>
<P>(ii) A food ingredient that contains protein derived from a food specified in paragraph (a)(1)(i) of this section, except:
</P>
<P>(A) Any highly refined oil derived from a food specified in paragraph (a)(1)(i) of this section and any ingredient derived from such highly refined oil; or
</P>
<P>(B) A food ingredient that is exempt from major food allergen labeling requirements pursuant to a petition for exemption approved by the Food and Drug Administration (FDA) under 21 U.S.C. 343(w)(6) or pursuant to a notice submitted to the FDA under 21 U.S.C. 343(w)(7), provided that the food ingredient meets the terms or conditions, if any, specified for that exemption.
</P>
<P>(2) <I>Name of the food source from which each major food allergen is derived</I> means the name of the food as listed in paragraph (a)(1)(i) of this section, except that:
</P>
<P>(i) In the case of a tree nut, it means the name of the specific type of nut (for example, almonds, pecans, or walnuts);
</P>
<P>(ii) In the case of Crustacean shellfish, it means the name of the species of Crustacean shellfish (for example, crab, lobster, or shrimp); and
</P>
<P>(iii) The names “egg” and “peanuts,” as well as the names of the different types of tree nuts, may be expressed in either the singular or plural form, and the names “soy,” “soybean,” or “soya” may be used instead of “soybeans.”
</P>
<P>(b) <I>Voluntary labeling standards.</I> Major food allergens used in the production of a malt beverage product may, on a voluntary basis, be declared on a label. However, if any one major food allergen is voluntarily declared, all major food allergens used in production of the malt beverage product, including major food allergens used as fining or processing agents, must be declared, except when covered by a petition for exemption approved by the appropriate TTB officer under § 7.83. The major food allergens declaration must consist of the word “Contains” followed by a colon and the name of the food source from which each major food allergen is derived (for example, “Contains: egg”).
</P>
<P>(c) <I>Cross reference.</I> For mandatory labeling requirements applicable to malt beverage products containing FD&amp;C Yellow No. 5, sulfites, aspartame, and cochineal extract or carmine, see § 7.63(b).


</P>
</DIV8>


<DIV8 N="§ 7.83" NODE="27:1.0.1.1.5.6.43.3" TYPE="SECTION">
<HEAD>§ 7.83   Petitions for exemption from major food allergen labeling.</HEAD>
<P>(a) <I>Submission of petition.</I> Any person may petition the appropriate TTB officer to exempt a particular product or class of products from the labeling requirements of § 7.82. The burden is on the petitioner to provide scientific evidence (as well as the analytical method used to produce the evidence) that demonstrates that the finished product or class of products, as derived by the method specified in the petition, either:
</P>
<P>(1) Does not cause an allergic response that poses a risk to human health; or
</P>
<P>(2) Does not contain allergenic protein derived from one of the foods identified in § 7.82(a)(1)(i), even though a major food allergen was used in production.
</P>
<P>(b) <I>Decision on petition.</I> TTB will approve or deny a petition for exemption submitted under paragraph (a) of this section in writing within 180 days of receipt of the petition. If TTB does not provide a written response to the petitioner within that 180-day period, the petition will be deemed denied unless an extension of time for decision is mutually agreed upon by the appropriate TTB officer and the petitioner. TTB may confer with the Food and Drug Administration (FDA) on petitions for exemption, as appropriate and as FDA resources permit. TTB may require the submission of product samples and other additional information in support of a petition; however, unless required by TTB, the submission of samples or additional information by the petitioner after submission of the petition will be treated as the withdrawal of the initial petition and the submission of a new petition. An approval or denial under this section will constitute final agency action.
</P>
<P>(c) <I>Resubmission of a petition.</I> After a petition for exemption is denied under this section, the petitioner may resubmit the petition along with supporting materials for reconsideration at any time. TTB will treat this submission as a new petition.
</P>
<P>(d) <I>Availability of information</I>—(1) <I>General.</I> TTB will promptly post to its website (<I>https://www.ttb.gov</I>) all petitions received under this section as well as TTB's responses to those petitions. Any information submitted in support of the petition that is not posted to the TTB website will be available to the public pursuant to the Freedom of Information Act (5 U.S.C. 552), except where a request for confidential treatment is granted under paragraph (d)(2) of this section.
</P>
<P>(2) <I>Requests for confidential treatment of business information.</I> A person who provides trade secrets or other commercial or financial information in connection with a petition for exemption under this section may request that TTB give confidential treatment to that information. A failure to request confidential treatment at the time the information in question is submitted to TTB will constitute a waiver of confidential treatment. A request for confidential treatment of information under this section must conform to the following standards:
</P>
<P>(i) The request must be in writing;
</P>
<P>(ii) The request must clearly identify the information to be kept confidential;
</P>
<P>(iii) The request must relate to information that constitutes trade secrets or other confidential, commercial, or financial information regarding the business transactions of an interested person, the disclosure of which would cause substantial harm to the competitive position of that person;
</P>
<P>(iv) The request must set forth the reasons why the information should not be disclosed, including the reasons the disclosure of the information would prejudice the competitive position of the interested person; and
</P>
<P>(v) The request must be supported by a signed statement by the interested person, or by an authorized officer or employee of that person, certifying that the information in question is a trade secret or other confidential, commercial, or financial information and that the information is not already in the public domain.


</P>
</DIV8>

</DIV7>


<DIV7 N="44" NODE="27:1.0.1.1.5.6.44" TYPE="SUBJGRP">
<HEAD>Production and Other Claims</HEAD>


<DIV8 N="§ 7.84" NODE="27:1.0.1.1.5.6.44.4" TYPE="SECTION">
<HEAD>§ 7.84   Use of the term “organic.”</HEAD>
<P>Use of the term “organic” is permitted if any such use complies with the United States Department of Agriculture (USDA) National Organic Program rules (7 CFR part 205), as interpreted by the USDA.


</P>
</DIV8>


<DIV8 N="§§ 7.85-7.87" NODE="27:1.0.1.1.5.6.44.5" TYPE="SECTION">
<HEAD>§§ 7.85-7.87   [Reserved]</HEAD>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.5.7" TYPE="SUBPART">
<HEAD>Subpart G—Prohibited Labeling Practices</HEAD>


<DIV8 N="§ 7.101" NODE="27:1.0.1.1.5.7.45.1" TYPE="SECTION">
<HEAD>§ 7.101   General.</HEAD>
<P>(a) <I>Application.</I> The prohibitions set forth in this subpart apply to any malt beverage label, container, or packaging. For purposes of this subpart:
</P>
<P>(1) The term “label” includes all labels on malt beverage containers on which mandatory information may appear, as set forth in § 7.61(a), as well as any other label on the container;
</P>
<P>(2) The term “container” includes all parts of the malt beverage container, including any part of a malt beverage container on which mandatory information may appear, as well as those parts of the container on which information does not satisfy mandatory labeling requirements, as set forth in § 7.61(b); and
</P>
<P>(3) The term “packaging” includes any carton, case, carrier, individual covering, or other packaging of such containers used for sale at retail but does not include shipping cartons or cases that are not intended to accompany the container to the consumer.
</P>
<P>(b) <I>Statement or representation.</I> For purposes of the practices in this subpart, the term “statement or representation” includes any statement, design, device, or representation, and includes pictorial or graphic designs or representations as well as written ones. The term “statement or representation” includes explicit and implicit statements and representations.


</P>
</DIV8>


<DIV8 N="§ 7.102" NODE="27:1.0.1.1.5.7.45.2" TYPE="SECTION">
<HEAD>§ 7.102   False or untrue statements.</HEAD>
<P>Malt beverage labels, containers, or packaging may not contain any statement or representation that is false or untrue in any particular.


</P>
</DIV8>


<DIV8 N="§ 7.103" NODE="27:1.0.1.1.5.7.45.3" TYPE="SECTION">
<HEAD>§ 7.103   Obscene or indecent depictions.</HEAD>
<P>Malt beverage labels, containers, or packaging may not contain any statement or representation that is obscene or indecent.


</P>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.5.8" TYPE="SUBPART">
<HEAD>Subpart H—Labeling Practices That Are Prohibited if They Are Misleading</HEAD>


<DIV8 N="§ 7.121" NODE="27:1.0.1.1.5.8.45.1" TYPE="SECTION">
<HEAD>§ 7.121   General.</HEAD>
<P>(a) <I>Application.</I> The labeling practices that are prohibited if misleading set forth in this subpart apply to any malt beverage label, container, or packaging. For purposes of this subpart:
</P>
<P>(1) The term “label” includes all labels on malt beverage containers on which mandatory information may appear, as set forth in § 7.61(a), as well as any other label on the container;
</P>
<P>(2) The term “container” includes all parts of the malt beverage container, including any part of a malt beverage container on which mandatory information may appear, as well as those parts of the container on which information does not satisfy mandatory labeling requirements, as set forth in § 7.61(b); and
</P>
<P>(3) The term “packaging” includes any carton, case, carrier, individual covering, or other packaging of such containers used for sale at retail but does not include shipping cartons or cases that are not intended to accompany the container to the consumer.
</P>
<P>(b) <I>Statement or representation.</I> For purposes of this subpart, the term “statement or representation” includes any statement, design, device, or representation, and includes pictorial or graphic designs or representations as well as written ones. The term “statement or representation” includes explicit and implicit statements and representations.


</P>
</DIV8>


<DIV8 N="§ 7.122" NODE="27:1.0.1.1.5.8.45.2" TYPE="SECTION">
<HEAD>§ 7.122   Misleading statements or representations.</HEAD>
<P>(a) <I>General prohibition.</I> Malt beverage labels, containers, or packaging may not contain any statement or representation, irrespective of falsity, that is misleading to consumers as to the age, origin, identity, or other characteristics of the malt beverage, or with regard to any other material factor.
</P>
<P>(b) <I>Ways in which statements or representations may be found to be misleading.</I> (1) A statement or representation is prohibited, irrespective of falsity, if it directly creates a misleading impression or if it does so indirectly through ambiguity, omission, inference, or by the addition of irrelevant, scientific, or technical matter. For example, an otherwise truthful statement may be misleading because of the omission of material information, the disclosure of which is necessary to prevent the statement from being misleading.
</P>
<P>(2) All claims, whether implicit or explicit, must have a reasonable basis in fact. Any claim on malt beverage labels, containers, or packaging that does not have a reasonable basis in fact or cannot be adequately substantiated upon the request of the appropriate TTB officer is considered misleading.


</P>
</DIV8>


<DIV8 N="§ 7.123" NODE="27:1.0.1.1.5.8.45.3" TYPE="SECTION">
<HEAD>§ 7.123   Guarantees.</HEAD>
<P>Malt beverage labels, containers, or packaging may not contain any statement relating to guarantees if the appropriate TTB officer finds it is likely to mislead the consumer. However, money-back guarantees are not prohibited.


</P>
</DIV8>


<DIV8 N="§ 7.124" NODE="27:1.0.1.1.5.8.45.4" TYPE="SECTION">
<HEAD>§ 7.124   Disparaging statements.</HEAD>
<P>(a) <I>General.</I> Malt beverage labels, containers, or packaging may not contain any false or misleading statement that explicitly or implicitly disparages a competitor's product.
</P>
<P>(b) <I>Truthful and accurate comparisons.</I> This section does not prevent truthful and accurate comparisons between products (such as “Our ale contains more hops than Brand X”) or statements of opinion (such as “We think our beer tastes better than any other beer on the market”).


</P>
</DIV8>


<DIV8 N="§ 7.125" NODE="27:1.0.1.1.5.8.45.5" TYPE="SECTION">
<HEAD>§ 7.125   Tests or analyses.</HEAD>
<P>Malt beverage labels, containers, or packaging may not contain any statement or representation of or relating to analyses, standards, or tests, whether or not it is true, that is likely to mislead the consumer. An example of a misleading statement is “tested and approved by our research laboratories” if the testing and approval does not in fact have any significance.


</P>
</DIV8>


<DIV8 N="§ 7.126" NODE="27:1.0.1.1.5.8.45.6" TYPE="SECTION">
<HEAD>§ 7.126   Depictions of government symbols.</HEAD>
<P><I>Representations of the armed forces or flags.</I> Malt beverage labels, containers, or packaging may not show an image of any government's flag or any representation related to the armed forces of the United States if the representation, standing alone or considered together with any additional language or symbols on the label, creates a false or misleading impression that the product was endorsed by, made by, used by, or made under the supervision of the government represented by that flag or by the armed forces of the United States. This section does not prohibit the use of a flag as part of a claim of American origin or another country of origin.


</P>
</DIV8>


<DIV8 N="§ 7.127" NODE="27:1.0.1.1.5.8.45.7" TYPE="SECTION">
<HEAD>§ 7.127   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 7.128" NODE="27:1.0.1.1.5.8.45.8" TYPE="SECTION">
<HEAD>§ 7.128   Claims related to distilled spirits.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (b) of this section, containers of malt beverages, or any labels on such containers, or any carton, case, or individual covering of such containers, used for sale at retail, or any written, printed, graphic, or other material accompanying such containers to the consumer, must not contain any statement, design, device, or representation that tends to create a false or misleading impression that the malt beverage contains distilled spirits or is a distilled spirits product.
</P>
<P>(b) <I>Exceptions.</I> This section does not prohibit:
</P>
<P>(1) A truthful and accurate statement of alcohol content, in conformity with § 7.65;
</P>
<P>(2) The use of a brand name of a distilled spirits product as a malt beverage brand name, provided that the overall label does not create a misleading impression as to the identity of the product;
</P>
<P>(3) The use of a cocktail name as a brand name or a distinctive or fanciful name of a malt beverage, provided that the overall labeling does not present a misleading impression about the identity of the product; or
</P>
<P>(4) The use of truthful and accurate statements about the production of the malt beverage as part of a statement of composition or otherwise, such as “aged in whisky barrels,” as long as such statements do not create a misleading impression as to the identity of the product.


</P>
</DIV8>


<DIV8 N="§ 7.129" NODE="27:1.0.1.1.5.8.45.9" TYPE="SECTION">
<HEAD>§ 7.129   Health-related statements.</HEAD>
<P>(a) <I>Definitions.</I> When used in this section, the following terms have the meaning indicated:
</P>
<P>(1) <I>Health-related statement</I> means any statement related to health (other than the warning statement required under part 16 of this chapter) and includes statements of a curative or therapeutic nature that, expressly or by implication, suggest a relationship between the consumption of alcohol, malt beverages, or any substance found within the malt beverage, and health benefits or effects on health. The term includes both specific health claims and general references to alleged health benefits or effects on health associated with the consumption of alcohol, a malt beverage, or any substance found within the malt beverage product, as well as health-related directional statements. The term also includes statements and claims that imply that a physical or psychological sensation results from consuming the alcohol beverage product, as well as statements and claims of nutritional value (for example, statements of vitamin content). Numerical statements of the calorie, carbohydrate, protein, and fat content of the product do not constitute claims of nutritional value.
</P>
<P>(2) <I>Specific health claim</I> means a type of health-related statement that, expressly or by implication, characterizes the relationship of malt beverages, alcohol, or any substance found within the malt beverage, to a disease or health-related condition. Implied specific health claims include statements, symbols, vignettes, or other forms of communication that suggest, within the context in which they are presented, that a relationship exists between alcohol, malt beverages, or any substance found within the malt beverage, and a disease or health-related condition.
</P>
<P>(3) <I>Health-related directional statement</I> means a type of health-related statement that directs or refers consumers to a third party or other source for information regarding the effects on health of malt beverage or alcohol consumption.
</P>
<P>(b) <I>Rules for malt beverage labels, containers, and packaging</I>—(1) <I>Health-related statements.</I> In general, malt beverage labels, containers, or packaging may not contain any health-related statement that is untrue in any particular or tends to create a misleading impression as to the effects on health of alcohol consumption. TTB will evaluate such statements on a case-by-case basis and may require as part of the health-related statement a disclaimer or some other qualifying statement to dispel any misleading impression conveyed by the health-related statement.
</P>
<P>(2) <I>Specific health claims.</I> (i) TTB will consult with the Food and Drug Administration (FDA) as needed on the use of specific health claims on labels, containers, or packaging. If FDA determines that the use of such a claim is a drug claim that is not in compliance with the requirements of the Federal Food, Drug, and Cosmetic Act, TTB will not approve the use of that specific health claim on the malt beverage label.
</P>
<P>(ii) TTB will approve the use of a specific health claim on a malt beverage label only if the claim is truthful and adequately substantiated by scientific or medical evidence; is sufficiently detailed and qualified with respect to the categories of individuals to whom the claim applies; adequately discloses the health risks associated with both moderate and heavier levels of alcohol consumption; and outlines the categories of individuals for whom any levels of alcohol consumption may cause health risks. This information must appear as part of the specific health claim.
</P>
<P>(3) <I>Health-related directional statements.</I> A health-related directional statement is presumed misleading unless it:
</P>
<P>(i) Directs consumers in a neutral or other non-misleading manner to a third party or other source for balanced information regarding the effects on health of malt beverage or alcohol consumption; and
</P>
<P>(ii)(A) Includes as part of the health-related directional statement the following disclaimer: “This statement should not encourage you to drink or to increase your alcohol consumption for health reasons”; or
</P>
<P>(B) Includes as part of the health-related directional statement some other qualifying statement that the appropriate TTB officer finds is sufficient to dispel any misleading impression conveyed by the health-related directional statement.


</P>
</DIV8>


<DIV8 N="§ 7.130" NODE="27:1.0.1.1.5.8.45.10" TYPE="SECTION">
<HEAD>§ 7.130   Appearance of endorsement.</HEAD>
<P>(a) <I>General.</I> Malt beverage labels, containers, or packaging may not include the name, or the simulation or abbreviation of the name, of any living individual of public prominence or an existing private or public organization, or any graphic, pictorial, or emblematic representation of the individual or organization if its use is likely to lead a consumer to falsely believe that the product has been endorsed, made, or used by, or produced for, or under the supervision of, or in accordance with the specifications of, such individual or organization. This section does not prohibit the use of such names where the individual or organization has provided authorization for their use.
</P>
<P>(b) <I>Disclaimers.</I> Statements or other representations do not violate this section if, taken as a whole, they create no misleading impression as to an implied endorsement either because of the context in which they are presented or because of the use of an adequate disclaimer.
</P>
<P>(c) <I>Exception.</I> This section does not apply to the use of the name of any person engaged in business as a producer, importer, bottler, packer, wholesaler, retailer, or warehouseman, of malt beverages. This section also does not apply to the use by any industry member of a trade or brand name that is the name of any living individual of public prominence, or existing private or public organization, provided such trade or brand name was used by the industry member or its predecessors in interest prior to August 29, 1935.


</P>
</DIV8>


<DIV8 N="§ 7.131" NODE="27:1.0.1.1.5.8.45.11" TYPE="SECTION">
<HEAD>§ 7.131   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 7.132" NODE="27:1.0.1.1.5.8.45.12" TYPE="SECTION">
<HEAD>§ 7.132   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.5.9" TYPE="SUBPART">
<HEAD>Subpart I—Classes and Types of Malt Beverages</HEAD>


<DIV8 N="§ 7.141" NODE="27:1.0.1.1.5.9.45.1" TYPE="SECTION">
<HEAD>§ 7.141   Class and type.</HEAD>
<P>(a) <I>Products known to the trade.</I> The class of the malt beverage must be stated on the label (see § 7.63). The type of the malt beverage may be stated, but is not required to appear on the label. Statements of class and type must conform to the designation of the product as known to the trade. All parts of the designation must appear together.
</P>
<P>(b) <I>Malt beverage specialty products</I>—(1) <I>General.</I> A malt beverage specialty product is a malt beverage that does not fall under any of the class designations set forth in §§ 7.142 through 7.144 and is not known to the trade under a particular designation, usually because of the addition of ingredients such as colorings, flavorings, or food materials or the use of certain types of production processes where the appropriate TTB officer has not determined that such ingredients or processes are generally recognized as traditional in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor.”
</P>
<P>(2) <I>Designation.</I> A malt beverage specialty product must be designated with a distinctive or fanciful name, together with a statement of the composition of the product, in accordance with § 7.147. This statement will be considered the class designation for the purposes of this part. All parts of the designation must appear together.


</P>
</DIV8>


<DIV8 N="§ 7.142" NODE="27:1.0.1.1.5.9.45.2" TYPE="SECTION">
<HEAD>§ 7.142   Class designations.</HEAD>
<P>The following class designations may be used in accordance with this section:
</P>
<P>(a) Any malt beverage, as defined in § 7.1, may be designated simply as a “malt beverage.”
</P>
<P>(b)(1) The class designations “beer,” “ale,” “porter,” “stout,” “lager,” and “malt liquor” may be used to designate malt beverages that contain at least 0.5 percent alcohol by volume and that conform to the trade understanding of those designations. These designations may be preceded or followed by descriptions of the color of the product (such as “amber,” “brown,” “red,” or “golden”) as well as descriptive terms such as “dry,” “export,” “cream,” and “pale.”
</P>
<P>(2) No product other than a malt beverage fermented at a comparatively high temperature, possessing the characteristics generally attributed to “ale,” “porter,” or “stout” and produced without the use of coloring or flavoring materials (other than those recognized in standard brewing practices) may bear any of these class designations.


</P>
</DIV8>


<DIV8 N="§ 7.143" NODE="27:1.0.1.1.5.9.45.3" TYPE="SECTION">
<HEAD>§ 7.143   Class and type—special rules.</HEAD>
<P>The following special rules apply to specified class and type designations:
</P>
<P>(a) <I>Reconstituted malt beverages.</I> Malt beverages that have been concentrated by the removal of water therefrom and reconstituted by the addition of water and carbon dioxide must for the purpose of this part be labeled in the same manner as malt beverages which have not been concentrated and reconstituted, except that there must appear immediately adjacent to, and as a part of, the class designation the statement “PRODUCED FROM____ __CONCENTRATE” (the blank to be filled in with the appropriate class designation). All parts of the class designation must appear in lettering of substantially the same size and kind. However, ice beers, described in paragraph (c) of this section, which are produced by the removal of less than 0.5 percent of the volume of the beer in the form of ice crystals and that retain beer character are not considered concentrated.
</P>
<P>(b) <I>Half and half.</I> No product may be designated with the type designation “half and half” unless it is in fact composed of equal parts of two classes of malt beverages, the names of which are conspicuously stated immediately adjacent to the designation “half and half” (for example, “Half and Half, Porter and Stout”). This does not preclude the use of terms such as “half and half” as part of a distinctive or fanciful name that refers to flavors added to a malt beverage designated in accordance with trade understanding or with a statement of composition.
</P>
<P>(c) <I>Ice beer.</I> Malt beverages supercooled during the brewing process to form ice crystals may be labeled with the type designation “ice” preceding the class designation (beer, ale, etc.).
</P>
<P>(d) <I>Black and tan.</I> A product composed of two classes of malt beverages may be designated with the type designation “black and tan,” and the class and type designation is the names of the two classes of malt beverages in conjunction with “black and tan” (for example, “Black and Tan, Stout and Ale”).
</P>
<P>(e) <I>Wheat beer.</I> Any “beer,” “ale,” “porter,” “stout,” “lager,” “malt liquor,” or other malt beverage made from a fermentable base that consists of at least 25 percent by weight malted wheat may be designated with the type designation “wheat” preceding the applicable class designation.
</P>
<P>(f) <I>Rye beer.</I> Any “beer,” “ale,” “porter,” “stout,” “lager,” “malt liquor,” or other malt beverage made from a fermentable base that consists of at least 25 percent by weight malted rye may be designated with the type designation “rye” preceding the applicable class designation.
</P>
<P>(g) <I>Barley wine ale.</I> The term “barley (or wheat or rye) wine ale” or “barley (or wheat or rye) wine style ale” may be used in accordance with trade understanding.
</P>
<P>(h) <I>Malt beverages aged in barrels</I>—(1) <I>General.</I> Label designations for malt beverages aged in barrels or with woodchips, spirals, or staves derived from barrels may, but are not required to, include a description of how the product was aged. Thus, for example, acceptable designations for a standard beer aged in an oak barrel would include “beer,” “oak aged beer,” and “beer aged in an oak barrel.”
</P>
<P>(2) <I>Barrels previously used in the production or storage of wine or distilled spirits.</I> Malt beverages aged in barrels previously used in the production or storage of wine or distilled spirits, or with woodchips, spirals, or staves derived from barrels previously used in the production or storage of wine or distilled spirits, or from woodchips previously used in the aging of distilled spirits or wine may, but are not required to, include a description of how the product was aged.
</P>
<P>(i) Examples of acceptable designations for a standard beer aged in a wine barrel include “beer,” “beer aged in a wine barrel,” and “wine barrel aged beer.”
</P>
<P>(ii) Examples of acceptable designations for an ale brewed with honey and aged in a bourbon barrel include “honey ale” and “bourbon barrel aged honey ale” but not simply “ale” or “bourbon barrel aged ale.”
</P>
<P>(3) <I>Misleading designations.</I> Designations that create a misleading impression as to the identity of the product by emphasizing certain words or terms are prohibited. As set forth in § 7.122, designations may not mislead consumers as to the age, origin, identity, or other characteristics of the malt beverage. Examples of designations that would be prohibited under this provision are “bourbon ale,” “bourbon-flavored lager,” “Chardonnay lager,” or “lager with whisky flavors.”
</P>
<P>(i) <I>Other designations.</I> Other type designations (such as “milk” preceding the class designation “stout”) may be applied in conformance with trade understanding.


</P>
</DIV8>


<DIV8 N="§ 7.144" NODE="27:1.0.1.1.5.9.45.4" TYPE="SECTION">
<HEAD>§ 7.144   Malt beverages fermented or flavored with certain traditional ingredients.</HEAD>
<P>(a) <I>General.</I> Any malt beverage that has been fermented or flavored only with one or more ingredients (such as honey or certain fruits) that the appropriate TTB officer has determined are generally recognized as traditional ingredients in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor” may be labeled in accordance with trade understanding following the rules set forth in this section.
</P>
<P>(1) A list of such traditional ingredients may be found on the TTB website (<I>https://www.ttb.gov</I>).
</P>
<P>(2) If the malt beverage has also been fermented or flavored with ingredients that the appropriate TTB officer has not determined are generally recognized as traditional ingredients in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor,” it is a malt beverage specialty and must be labeled in accordance with the statement of composition rules in § 7.147.
</P>
<P>(b) <I>Rules for designation.</I> (1) A designation in accordance with trade understanding must identify the base product, such as “malt beverage,” “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor” along with a modifier or explanation that provides the consumer with adequate information about the fruit, honey, or other food ingredient used in production of the malt beverage. The label may include additional information about the production process (such as “beer fermented with cherry juice”).
</P>
<P>(2) Where more than one exempted ingredient is included, a designation in accordance with trade understanding may identify each ingredient (such as “Ale with cherry juice, cinnamon, and nutmeg”), refer to the ingredients by category (such as “Fruit ale,” “Spiced ale,” or “Ale with natural flavors”), or simply include the ingredient or ingredients that the bottler or importer believes best identify the product (such as “Cherry ale,” “Cinnamon ale,” or “Nutmeg ale”). The designation must distinguish the product from a malt beverage, beer, ale, porter, stout, lager, or malt liquor that is not brewed or flavored with any of these ingredients; thus, unmodified designations such as “beer,” “stout,” or “ale” would not be acceptable.
</P>
<P>(c) <I>Other requirements.</I> All parts of the designation must appear together and must be readily legible on a contrasting background. Designations that create a misleading impression as to the identity of the product by emphasizing certain words or terms are prohibited.


</P>
</DIV8>


<DIV8 N="§ 7.145" NODE="27:1.0.1.1.5.9.45.5" TYPE="SECTION">
<HEAD>§ 7.145   Malt beverages containing less than 0.5 percent alcohol by volume.</HEAD>
<P>(a) Products containing less than 0.5 percent of alcohol by volume must bear the class designation “malt beverage,” “cereal beverage,” or “near beer.”
</P>
<P>(b) If the designation “near beer” is used, both words must appear in the same size and style of type, in the same color of ink, and on the same background.
</P>
<P>(c) No product containing less than 0.5 percent of alcohol by volume may bear the class designations “beer,” “lager beer,” “lager,” “ale,” “porter,” “stout,” or any other class or type designation commonly applied to malt beverages containing 0.5 percent or more of alcohol by volume.


</P>
</DIV8>


<DIV8 N="§ 7.146" NODE="27:1.0.1.1.5.9.45.6" TYPE="SECTION">
<HEAD>§ 7.146   Geographical names.</HEAD>
<P>(a) Geographical names for distinctive types of malt beverages (other than names found under paragraph (b) of this section to have become generic) shall not be applied to malt beverages produced in any place other than the particular region indicated by the name unless:
</P>
<P>(1) In direct conjunction with the name there appears the word “type” or the word “American”, or some other statement indicating the true place of production in lettering substantially as conspicuous as such name; and
</P>
<P>(2) The malt beverages to which the name is applied conform to the type so designated. The following are examples of distinctive types of beer with geographical names that have not become generic; Dortmund, Dortmunder, Vienna, Wien, Wiener, Bavarian, Munich, Munchner, Salvator, Kulmbacher, Wurtzburger, Pilsen (Pilsener and Pilsner): <I>Provided,</I> That notwithstanding the foregoing provisions of this section, beer which is produced in the United States may be designated as “Pilsen,” “Pilsener,” or “Pilsner” without further modification, if it conforms to such type.
</P>
<P>(b) Only such geographical names for distinctive types of malt beverages as the appropriate TTB officer finds have by usage and common knowledge lost their geographical significance to such an extent that they have become generic shall be deemed to have become generic, <I>e.g.,</I> India Pale Ale.
</P>
<P>(c) Except as provided in § 7.64(b), geographical names that are not names for distinctive types of malt beverages shall not be applied to malt beverages produced in any place other than the particular place or region indicated in the name.


</P>
</DIV8>


<DIV8 N="§ 7.147" NODE="27:1.0.1.1.5.9.45.7" TYPE="SECTION">
<HEAD>§ 7.147   Statement of composition.</HEAD>
<P>(a) A statement of composition is required to appear on the label for malt beverage specialty products, as defined in § 7.141(b), which are not known to the trade under a particular designation. For example, the addition of flavoring materials, colors, or artificial sweeteners may change the class and type of the malt beverage. The statement of composition along with a distinctive or fanciful name serves as the class and type designation for these products.
</P>
<P>(b) When required by this part, a statement of composition must contain all of the following information, as applicable:
</P>
<P>(1) <I>Identify the base class and/or type designation.</I> The statement of composition must clearly identify the base class and/or type designation of the malt beverage product (<I>e.g.,</I> “beer,” “lager beer,” “lager,” “ale,” “porter,” “stout,” or “malt beverage”).
</P>
<P>(2) <I>Identify added flavoring material(s) used before, during, and after fermentation.</I> The statement of composition must disclose fermentable or non-fermentable flavoring materials added to the malt beverage base class.
</P>
<P>(i) If the flavoring material is used before or during the fermentation process, the statement of composition must indicate that the malt beverage was fermented or brewed with the flavoring material (such as “Beer Fermented with grapefruit juice” or “Grapefruit Ale”). If the flavoring material is added after fermentation, the statement of composition must describe that process, using terms such as “added,” “with,” “infused,” or “flavored” (such as “Grapefruit-flavored ale.”).
</P>
<P>(ii) If a single flavoring material is used in the production of the malt beverage product, the flavoring material may be specifically identified (such as “Ale Fermented with grapefruit juice”) or generally referenced (such as “Ale with natural flavor”). If two or more flavoring materials are used in the production of the malt beverage, each flavoring material may be specifically identified (such as “lemon juice, kiwi juice” or “lemon and kiwi juice”) or the characterizing flavoring material may be specifically identified and the remaining flavoring materials may be generally referenced (such as “kiwi and other natural and artificial flavor(s)”), or all flavors may be generally referenced (such as “with artificial flavors”).
</P>
<P>(3) <I>Identify added coloring material(s).</I> The statement of composition must disclose the addition of coloring material(s), whether added directly or through flavoring material(s). The coloring materials may be identified specifically (such as “caramel color,” “FD&amp;C Red #40,” “annatto,” etc.) or as a general statement, such as “Contains certified color” for colors approved under 21 CFR subpart 74 or “artificially colored” to indicate the presence of any one or a combination of coloring material(s). However, FD&amp;C Yellow No. 5, carmine, and cochineal extract require specific disclosure in accordance with § 7.63(b)(1) and (2) and that specific disclosure may appear either in the statement of composition or elsewhere in accordance with those sections.
</P>
<P>(4) <I>Identify added artificial sweeteners.</I> The statement of composition must disclose any artificial sweetener that is added to a malt beverage product, whether the artificial sweetener is added directly or through flavoring material(s). The artificial sweetener may be identified specifically by either generic name or trademarked brand name, or as a general statement (such as “artificially sweetened”) to indicate the presence of any one or combination of artificial sweeteners. However, if aspartame is used, an additional warning statement is required in accordance with § 7.63(b)(4).


</P>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.5.10" TYPE="SUBPART">
<HEAD>Subparts J-L [Reserved]</HEAD>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.5.11" TYPE="SUBPART">
<HEAD>Subpart M—Penalties and Compromise of Liability</HEAD>


<DIV8 N="§ 7.221" NODE="27:1.0.1.1.5.11.45.1" TYPE="SECTION">
<HEAD>§ 7.221   Criminal penalties.</HEAD>
<P>A violation of the labeling provisions of 27 U.S.C. 205(e) is punishable as a misdemeanor. See 27 U.S.C. 207 for the statutory provisions relating to criminal penalties, consent decrees, and injunctions.


</P>
</DIV8>


<DIV8 N="§ 7.222" NODE="27:1.0.1.1.5.11.45.2" TYPE="SECTION">
<HEAD>§ 7.222   Conditions of basic permit.</HEAD>
<P>A basic permit is conditioned upon compliance with the requirements of 27 U.S.C. 205, including the labeling and advertising provisions of this part. A willful violation of the conditions of a basic permit provides grounds for the revocation or suspension of the permit, as applicable, as set forth in part 1 of this chapter.


</P>
</DIV8>


<DIV8 N="§ 7.223" NODE="27:1.0.1.1.5.11.45.3" TYPE="SECTION">
<HEAD>§ 7.223   Compromise.</HEAD>
<P>Pursuant to 27 U.S.C. 207, the appropriate TTB officer is authorized, with respect to any violation of 27 U.S.C. 205, to compromise the liability arising with respect to such violation upon payment of a sum not in excess of $500 for each offense, to be collected by the appropriate TTB officer and to be paid into the Treasury as miscellaneous receipts.


</P>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.5.12" TYPE="SUBPART">
<HEAD>Subpart N—Advertising of Malt Beverages</HEAD>


<DIV8 N="§ 7.231" NODE="27:1.0.1.1.5.12.45.1" TYPE="SECTION">
<HEAD>§ 7.231   Application.</HEAD>
<P>No person engaged in business as a brewer, wholesaler, or importer, of malt beverages directly or indirectly or through an affiliate, shall publish or disseminate or cause to be published or disseminated by radio or television broadcast, or in any newspaper, periodical, or any publication, by any sign or outdoor advertisement, or by electronic or internet media, or in any other printed or graphic matter, any advertisement of malt beverages, if such advertising is in, or is calculated to induce sales in, interstate or foreign commerce, or is disseminated by mail, unless such advertisement is in conformity with this subpart: <I>Provided,</I> That such sections shall not apply to outdoor advertising in place on September 7, 1984, but shall apply upon replacement, restoration, or renovation of any such advertising; and <I>provided further,</I> that this subpart shall apply to advertisements of malt beverages intended to be sold or shipped or delivered for shipment, or otherwise introduced into or received in any State from any place outside thereof, only to the extent that the laws of such State impose similar requirements with respect to advertisements of malt beverages manufactured and sold or otherwise disposed of in such State. <I>And provided further</I> that such sections shall not apply to a retailer or the publisher of any newspaper, periodical, or other publication, or radio or television or internet broadcast, unless such retailer or publisher or broadcaster is engaged in business as a brewer, wholesaler, bottler, or importer of malt beverages, directly or indirectly, or through an affiliate.


</P>
</DIV8>


<DIV8 N="§ 7.232" NODE="27:1.0.1.1.5.12.45.2" TYPE="SECTION">
<HEAD>§ 7.232   Definitions.</HEAD>
<P>As used in this subpart, the term “advertisement” or “advertising” includes any written or verbal statement, illustration, or depiction which is in, or calculated to induce sales in, interstate or foreign commerce, or is disseminated by mail, whether it appears in a newspaper, magazine, trade booklet, menu, wine card, leaflet, circular, mailer, book insert, catalog, promotional material, sales pamphlet, internet or other electronic site or social network, or in any written, printed, graphic, or other matter (such as hang tags) accompanying, but not firmly affixed to, the container, representations made on shipping cases, or in any billboard, sign, or other outdoor display, public transit card, other periodical literature, publication, or in a radio or television broadcast, or in any other media; except that such term shall not include:
</P>
<P>(a) Any label affixed to any container of malt beverages; or any coverings, cartons, or cases of containers of malt beverages used for sale at retail which constitute a part of the labeling under this part.
</P>
<P>(b) Any editorial or other reading material (such as a news release) in any periodical or publication or newspaper, for the publication of which no money or valuable consideration or thing of value is paid or promised, directly or indirectly, by any permittee or brewer, and which is not written by or at the direction of the permittee or brewer.


</P>
</DIV8>


<DIV8 N="§ 7.233" NODE="27:1.0.1.1.5.12.45.3" TYPE="SECTION">
<HEAD>§ 7.233   Mandatory statements.</HEAD>
<P>(a) <I>Responsible advertiser.</I> The advertisement must display the responsible advertiser's name, city, and State or the name and other contact information (such as, telephone number, website, or email address) where the responsible advertiser may be contacted.
</P>
<P>(b) <I>Class.</I> The advertisement shall contain a conspicuous statement of the class to which the product belongs, corresponding to the statement of class which is required to appear on the label of the product.
</P>
<P>(c) <I>Exception.</I> (1) If an advertisement refers to a general malt beverage line or all of the malt beverage products of one company, whether by the company name or by the brand name common to all the malt beverages in the line, the only mandatory information necessary is the responsible advertiser's name, city, and State or the name and other contact information (such as telephone number, website, or email address) where the responsible advertiser may be contacted. This exception does not apply where only one type of malt beverage is marketed under the specific brand name advertised.
</P>
<P>(2) On consumer specialty items, the only information necessary is the company name or brand name of the product.


</P>
</DIV8>


<DIV8 N="§ 7.234" NODE="27:1.0.1.1.5.12.45.4" TYPE="SECTION">
<HEAD>§ 7.234   Legibility of mandatory information.</HEAD>
<P>(a) Statements required under this subpart that appear in any written, printed, or graphic advertisement must be in lettering or type size sufficient to be conspicuous and readily legible.
</P>
<P>(b) In the case of signs, billboards, and displays the name and address or name and other contact information (such as, telephone number, website, or email) of the permittee responsible for the advertisement may appear in type size of lettering smaller than the other mandatory information, provided such information can be ascertained upon closer examination of the sign or billboard.
</P>
<P>(c) Mandatory information must be so stated as to be clearly a part of the advertisement and may not be separated in any manner from the remainder of the advertisement.
</P>
<P>(d) Mandatory information for two or more products shall not be stated unless clearly separated.
</P>
<P>(e) Mandatory information must be so stated in both the print and audiovisual media that it will be readily apparent to the persons viewing the advertisement.


</P>
</DIV8>


<DIV8 N="§ 7.235" NODE="27:1.0.1.1.5.12.45.5" TYPE="SECTION">
<HEAD>§ 7.235   Prohibited practices.</HEAD>
<P>(a) <I>General prohibition.</I> An advertisement of malt beverages must not contain:
</P>
<P>(1) Any statement that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific or technical matter, tends to create a misleading impression.
</P>
<P>(2) Any false or misleading statement that explicitly or implicitly disparages a competitor's product. This does not prevent truthful and accurate comparisons between products (such as “Our ale contains more hops than Brand X”) or statements of opinion (such as “We think our beer tastes better than any other beer on the market”).
</P>
<P>(3) Any statement, design, device, or representation which is obscene or indecent.
</P>
<P>(4) Any statement, design, device, or representation of or relating to analyses, standards, or tests, irrespective of falsity, which the appropriate TTB officer finds to be likely to mislead the consumer.
</P>
<P>(5) Any statement, design, device, or representation of or relating to any guarantee, irrespective of falsity, which the appropriate TTB officer finds to be likely to mislead the consumer. Money-back guarantees are not prohibited.
</P>
<P>(6) [Reserved].
</P>
<P>(7) [Reserved].
</P>
<P>(8) Any statement, design, device, or representation that tends to create a false or misleading impression that the malt beverage contains distilled spirits or is a distilled spirits product. Advertisements may include the types of statements that are listed as being not prohibited on labels in § 7.128(b).
</P>
<P>(b) <I>Statements inconsistent with labeling.</I> (1) Advertisements shall not contain any statement concerning a brand or lot of malt beverages that is inconsistent with any statement on the labeling thereof.
</P>
<P>(2) Any label depicted on a container in an advertisement shall be a reproduction of an approved label, except that malt beverage labels not required to be covered by a COLA in accordance with the rules in § 7.21 of this chapter may also appear on advertisements.
</P>
<P>(c) [Reserved]
</P>
<P>(d) <I>Class.</I> (1) No product containing less than 0.5 percent of alcohol by volume shall be designated in any advertisement as “beer”, “lager beer”, “lager”, “ale”, “porter”, or “stout”, or by any other class or type designation commonly applied to fermented malt beverages containing 0.5 percent or more of alcohol by volume.
</P>
<P>(2) No product other than a malt beverage fermented at comparatively high temperature, possessing the characteristics generally attributed to “ale,” “porter,” or “stout” and produced without the use of coloring or flavoring materials (other than those recognized in standard brewing practices) shall be designated in any advertisement by any of these class designations.
</P>
<P>(e) <I>Health-related statements</I>—(1) <I>Definitions.</I> When used in this paragraph (e), terms are defined as follows:
</P>
<P>(i) <I>Health-related statement</I> means any statement related to health and includes statements of a curative or therapeutic nature that, expressly or by implication, suggest a relationship between the consumption of alcohol, malt beverages, or any substance found within the malt beverage, and health benefits or effects on health. The term includes both specific health claims and general references to alleged health benefits or effects on health associated with the consumption of alcohol, malt beverages, or any substance found within the malt beverage, as well as health-related directional statements. The term also includes statements and claims that imply that a physical or psychological sensation results from consuming the malt beverage, as well as statements and claims of nutritional value (<I>e.g.,</I> statements of vitamin content). Statements concerning caloric, carbohydrate, protein, and fat content do not constitute nutritional claims about the product.
</P>
<P>(ii) <I>Specific health claim</I> is a type of health-related statement that, expressly or by implication, characterizes the relationship of the malt beverage, alcohol, or any substance found within the malt beverage, to a disease or health-related condition. Implied specific health claims include statements, symbols, vignettes, or other forms of communication that suggest, within the context in which they are presented, that a relationship exists between malt beverages, alcohol, or any substance found within the malt beverage, and a disease or health-related condition.
</P>
<P>(iii) <I>Health-related directional statement</I> is a type of health-related statement that directs or refers consumers to a third party or other source for information regarding the effects on health of malt beverage or alcohol consumption.
</P>
<P>(2) <I>Rules for advertising</I>—(i) <I>Health-related statements.</I> In general, advertisements may not contain any health-related statement that is untrue in any particular or tends to create a misleading impression as to the effects on health of alcohol consumption. TTB will evaluate such statements on a case-by-case basis and may require as part of the health-related statement a disclaimer or some other qualifying statement to dispel any misleading impression conveyed by the health-related statement. Such disclaimer or other qualifying statement must appear as prominent as the health-related statement.
</P>
<P>(ii) <I>Specific health claims.</I> A specific health claim will not be considered misleading if it is truthful and adequately substantiated by scientific or medical evidence; sufficiently detailed and qualified with respect to the categories of individuals to whom the claim applies; adequately discloses the health risks associated with both moderate and heavier levels of alcohol consumption; and outlines the categories of individuals for whom any levels of alcohol consumption may cause health risks. This information must appear as part of the specific health claim and in a manner as prominent as the specific health claim.
</P>
<P>(iii) <I>Health-related directional statements.</I> A statement that directs consumers to a third party or other source for information regarding the effects on health of malt beverage or alcohol consumption is presumed misleading unless it—
</P>
<P>(A) Directs consumers in a neutral or other non-misleading manner to a third party or other source for balanced information regarding the effects on health of malt beverage or alcohol consumption; and
</P>
<P>(B)(<I>1</I>) Includes as part of the health-related directional statement, and in a manner as prominent as the health-related directional statement, the following disclaimer: “This statement should not encourage you to drink or increase your alcohol consumption for health reasons;” or
</P>
<P>(<I>2</I>) Includes as part of the health-related directional statement, and in a manner as prominent as the health-related directional statement, some other qualifying statement that the appropriate TTB officer finds is sufficient to dispel any misleading impression conveyed by the health-related directional statement.
</P>
<P>(f) <I>Confusion of brands.</I> Two or more different brands or lots of malt beverages shall not be advertised in one advertisement (or in two or more advertisements in one issue of a periodical or a newspaper or in one piece of other written, printed, or graphic matter) if the advertisement tends to create the impression that representations made as to one brand or lot apply to the other or others, and if as to such latter the representations contravene any provision of this subpart or are in any respect untrue.
</P>
<P>(g) <I>Representations of the armed forces or flags.</I> Advertisements may not show an image of any government's flag or any representation related to the armed forces of the United States if the representation, standing alone or considered together with any additional language or symbols, creates a false or misleading impression that the product was endorsed by, made by, used by, or made under the supervision of, the government represented by that flag or by the armed forces of the United States. This section does not prohibit the use of a flag as part of a claim of American origin or another country of origin.
</P>
<P>(h) <I>Deceptive advertising techniques.</I> Subliminal or similar techniques are prohibited. “Subliminal or similar techniques,” as used in this part, refers to any device or technique that is used to convey, or attempts to convey, a message to a person by means of images or sounds of a very brief nature that cannot be perceived at a normal level of awareness.
</P>
<P>(i) <I>Organic.</I> Any use of the term “organic” in the advertising of malt beverages must comply with the United States Department of Agriculture's (USDA) National Organic Program rules, 7 CFR part 205, as interpreted by the USDA.


</P>
</DIV8>


<DIV8 N="§ 7.236" NODE="27:1.0.1.1.5.12.45.6" TYPE="SECTION">
<HEAD>§ 7.236   Comparative advertising.</HEAD>
<P>(a) <I>General.</I> Comparative advertising shall not be disparaging of a competitor's product in a manner that is false or misleading.
</P>
<P>(b) <I>Taste tests.</I> (1) Taste test results may be used in advertisements comparing competitors' products unless they are disparaging in a false or misleading manner, deceptive, or likely to mislead the consumer.
</P>
<P>(2) The taste test procedure used shall meet scientifically accepted procedures. An example of a scientifically accepted procedure is outlined in the Manual on Sensory Testing Methods, ASTM Special Technical Publication 434, published by the American Society for Testing and Materials, 1916 Race Street, Philadelphia, Pennsylvania 19103, ASTM, 1968, Library of Congress Catalog Card Number 68-15545.
</P>
<P>(3) A statement shall appear in the advertisement providing the name and address of the testing administrator.


</P>
</DIV8>

</DIV6>


<DIV6 N="O" NODE="27:1.0.1.1.5.13" TYPE="SUBPART">
<HEAD>Subpart O—Paperwork Reduction Act</HEAD>


<DIV8 N="§ 7.241" NODE="27:1.0.1.1.5.13.45.1" TYPE="SECTION">
<HEAD>§ 7.241   OMB control numbers assigned under the Paperwork Reduction Act.</HEAD>
<P>(a) <I>Purpose.</I> This subpart displays the control numbers assigned to information collection requirements in this part by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995, Public Law 104-13.
</P>
<P>(b) <I>Table.</I> The following table identifies each section in this part that contains an information collection requirement and the OMB control number that is assigned to that information collection requirement.
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 1 to Paragraph (<E T="01">b</E>)
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Section where contained
</TH><TH class="gpotbl_colhed" scope="col">Current OMB Control No.
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.11</TD><TD align="right" class="gpotbl_cell">1513-0111
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.21</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.22</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.24</TD><TD align="right" class="gpotbl_cell">1513-0020
<br/>1513-0064
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.25</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.27</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.28</TD><TD align="right" class="gpotbl_cell">1513-0122
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.29</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.62</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.63</TD><TD align="right" class="gpotbl_cell">1513-0084
<br/>1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.66</TD><TD align="right" class="gpotbl_cell">1513-0085
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.67</TD><TD align="right" class="gpotbl_cell">1513-0085
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.81</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.82</TD><TD align="right" class="gpotbl_cell">1513-0121
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.83</TD><TD align="right" class="gpotbl_cell">1513-0121
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.84</TD><TD align="right" class="gpotbl_cell">1513-0087
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7.233</TD><TD align="right" class="gpotbl_cell">1513-0087</TD></TR></TABLE></DIV></DIV>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="8" NODE="27:1.0.1.1.6" TYPE="PART">
<HEAD>PART 8—EXCLUSIVE OUTLETS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>15 U.S.C. 49-50; 27 U.S.C. 202 and 205; 44 U.S.C. 3504(h).
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-74, 45 FR 63256, Sept. 23, 1980, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:1.0.1.1.6.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 8.1" NODE="27:1.0.1.1.6.1.45.1" TYPE="SECTION">
<HEAD>§ 8.1   General.</HEAD>
<P>The regulations in this part, issued pursuant to section 105 of the Federal Alcohol Administration Act (27 U.S.C. 205), specify arrangements which are exclusive outlets under section 105(a) of the Act and criteria for determining whether a practice is a violation of section 105(a) of the Act. This part does not attempt to enumerate all of the practices prohibited by section 105(a) of the Act. Nothing in this part shall operate to exempt any person from the requirements of any State law or regulation.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20425, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 8.2" NODE="27:1.0.1.1.6.1.45.2" TYPE="SECTION">
<HEAD>§ 8.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States, the District of Columbia, and Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 8.3" NODE="27:1.0.1.1.6.1.45.3" TYPE="SECTION">
<HEAD>§ 8.3   Application.</HEAD>
<P>(a) <I>General.</I> This part applies only to transactions between industry members and retailers. It does not apply to transactions between two industry members; for example, between a producer and a wholesaler.
</P>
<P>(b) <I>Transactions involving State agencies.</I> The regulations in this part apply only to transactions between industry members and State agencies operating as retailers as defined in this part. The regulations do not apply to State agencies with regard to their wholesale dealings with retailers.


</P>
</DIV8>


<DIV8 N="§ 8.4" NODE="27:1.0.1.1.6.1.45.4" TYPE="SECTION">
<HEAD>§ 8.4   Jurisdictional limits.</HEAD>
<P>(a) <I>General.</I> The regulations in this part apply where:
</P>
<P>(1) The industry member requires, by agreement or otherwise, a retailer to purchase distilled spirits, wine, or malt beverages from such industry member to the exclusion in whole or in part of products sold or offered for sale by other persons in interstate or foreign commerce; and
</P>
<P>(2) If: (i) The requirement is made in the course of interstate or foreign commerce; or
</P>
<P>(ii) The industry member engages in the practice of using a requirement to such an extent as substantially to restrain or prevent transactions in interstate or foreign commerce in any such products; or
</P>
<P>(iii) The direct effect of the requirement is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such products to such retailer in interstate or foreign commerce.
</P>
<P>(b) <I>Malt beverages.</I> In the case of malt beverages, this part applies to transactions between a retailer in any State and a brewer, importer, or wholesaler of malt beverages inside or outside such State only to the extent that the law of such State imposes requirements similar to the requirements of section 5(a) of the Federal Alcohol Administration Act (27 U.S.C. 205(a)), with respect to similar transactions between a retailer in such State and a brewer, importer, or wholesaler of malt beverages in such State.


</P>
</DIV8>


<DIV8 N="§ 8.5" NODE="27:1.0.1.1.6.1.45.5" TYPE="SECTION">
<HEAD>§ 8.5   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.8, Delegation of the Administrator's Authorities in 27 CFR Part 8, Exclusive Outlets.  You may obtain a copy of this order on the TTB website (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16923, Apr. 4, 2006, T.D. TTB-196, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 8.6" NODE="27:1.0.1.1.6.1.45.6" TYPE="SECTION">
<HEAD>§ 8.6   Administrative provisions.</HEAD>
<P>(a) <I>General.</I> The Act makes applicable the provisions including penalties of sections 49 and 50 of Title 15, United States Code, to the jurisdiction, powers and duties of the Administrator under this Act, and to any person (whether or not a corporation) subject to the provisions of law administered by the Administrator under this Act. The Act also provides that the Administrator is authorized to require, in such manner and such form as he or she shall prescribe, such reports as are necessary to carry out the powers and duties under this chapter.
</P>
<P>(b) <I>Examination and subpoena.</I> Any appropriate TTB officer shall at all reasonable times have access to, for the purpose of examination, and the right to copy any documentary evidence of any person, partnership, or corporation being investigated or proceeded against. An appropriate TTB officer shall also have the power to require by subpoena the attendance and testimony of witnesses and the production of all such documentary evidence relating to any matter under investigation, upon a satisfactory showing the requested evidence may reasonably be expected to yield information relevant to any matter being investigated under the Act.
</P>
<P>(c) <I>Reports required by the appropriate TTB officer</I>—(1) <I>General.</I> The appropriate TTB officer may, as part of a trade practice investigation of an industry member, require such industry member to submit a written report containing information on sponsorships, advertisements, promotions, and other activities pertaining to its business subject to the Act conducted by, or on behalf of, or benefiting the industry member.
</P>
<P>(2) <I>Preparation.</I> The report will be prepared by the industry member in letter form, executed under the penalties of perjury, and will contain the information specified by the appropriate TTB officer. The period covered by the report will not exceed three years.
</P>
<P>(3) <I>Filing.</I> The report will be filed in accordance with the instructions of the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0392)
</APPRO>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20425, Apr. 26, 1995. Redesignated and amended by T.D. ATF-428, 65 FR 52020, Aug. 28, 2000]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.6.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 8.11" NODE="27:1.0.1.1.6.2.45.1" TYPE="SECTION">
<HEAD>§ 8.11   Meaning of terms.</HEAD>
<P>As used in this part, unless the context otherwise requires, terms have the meanings given in this section. Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the meaning assigned to it by that Act.
</P>
<P><I>Act.</I> The Federal Alcohol Administration Act.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.8, Delegation of the Administrator's Authorities in 27 CFR Part 8, Exclusive Outlets.
</P>
<P><I>Industry member.</I> Any person engaged in business as a distiller, brewer, rectifier, blender, or other producer, or as an importer or wholesaler, of distilled spirits, wine or malt beverages, or as a bottler, or warehouseman and bottler, of distilled spirits; industry member does not include an agency of a State or political subdivision thereof, or an officer or employee of such agency.
</P>
<P><I>Product.</I> Distilled spirits, wine or malt beverages, as defined in the Federal Alcohol Administration Act.
</P>
<P><I>Retailer.</I> Any person engaged in the sale of distilled spirits, wine or malt beverages to consumers. A wholesaler who makes incidental retail sales representing less than five percent of the wholesaler's total sales volume for the preceding two-month period shall not be considered a retailer with respect to such incidental sales.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63256, Sept. 23, 1980, as amended by T.D. ATF-364, 60 FR 20425, Apr. 26, 1995; T.D. ATF-428, 65 FR 52020, Aug. 28, 2000; T.D. TTB-44, 71 FR 16923, Apr. 4, 2006]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.6.3" TYPE="SUBPART">
<HEAD>Subpart C—Prohibited Practices</HEAD>


<DIV8 N="§ 8.21" NODE="27:1.0.1.1.6.3.45.1" TYPE="SECTION">
<HEAD>§ 8.21   General.</HEAD>
<P>It is unlawful for an industry member to require, by agreement or otherwise, that any retailer purchase distilled spirits, wine, or malt beverages from the industry member to the exclusion, in whole or in part, of products sold or offered for sale by other persons in interstate or foreign commerce. This prohibition includes purchases coerced by industry members, through acts or threats of physical or economic harm, as well as voluntary industry member-retailer purchase agreements.


</P>
</DIV8>


<DIV8 N="§ 8.22" NODE="27:1.0.1.1.6.3.45.2" TYPE="SECTION">
<HEAD>§ 8.22   Contracts to purchase distilled spirits, wine, or malt beverages.</HEAD>
<P>Any contract or agreement, written or unwritten, which has the effect of requiring the retailer to purchase distilled spirits, wine, or malt beverages from the industry member beyond a single sales transaction is prohibited. Examples of such contracts are:
</P>
<P>(a) An advertising contract between an industry member and a retailer with the express or implied requirement of the purchase of the advertiser's products; or
</P>
<P>(b) A sales contract awarded on a competitive bid basis which has the effect of prohibiting the retailer from purchasing from other industry members by:
</P>
<P>(1) Requiring that for the period of the agreement, the retailer purchase a product or line of products exclusively from the industry member; or
</P>
<P>(2) Requiring that the retailer purchase a specific or minimum quantity during the period of the agreement.


</P>
</DIV8>


<DIV8 N="§ 8.23" NODE="27:1.0.1.1.6.3.45.3" TYPE="SECTION">
<HEAD>§ 8.23   Third party arrangements.</HEAD>
<P>Industry member requirements, by agreement or otherwise, with non-retailers which result in a retailer being required to purchase the industry member's products are within the exclusive outlet provisions. These industry member requirements are covered whether the agreement or other arrangement originates with the industry member or the third party. For example, a supplier enters into a contractual agreement or other arrangement with a third party. This agreement or arrangement contains an industry member requirement as described above. The third party, a ballclub, or municipal or private corporation, not acting as a retailer, leases the concession rights and is able to control the purchasing decisions of the retailer. The third party, as a result of the requirement, by agreement or otherwise, with the industry member, requires the retailer to purchase the industry member's products to the exclusion, in whole or in part, of products sold or offered for sale by other persons in interstate or foreign commerce. The business arrangements entered into by the industry member and the third party may consist of such things as sponsoring radio or television broadcasting, paying for advertising, or providing other services or things of value.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20425, Apr. 26, 1995]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.6.4" TYPE="SUBPART">
<HEAD>Subpart D—Exclusion</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-364, 60 FR 20425, Apr. 26, 1995, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 8.51" NODE="27:1.0.1.1.6.4.45.1" TYPE="SECTION">
<HEAD>§ 8.51   Exclusion, in general.</HEAD>
<P>(a) Exclusion, in whole or in part occurs:
</P>
<P>(1) When a practice by an industry member, whether direct, indirect, or through an affiliate, places (or has the potential to place) retailer independence at risk by means of a tie or link between the industry member and retailer or by any other means of industry member control over the retailer, and
</P>
<P>(2) Such practice results in the retailer purchasing less than it would have of a competitor's product.
</P>
<P>(b) Section 8.52 lists practices that result in exclusion. Section 8.53 lists practices not resulting in exclusion. Section 8.54 lists the criteria used for determining whether other practices can put retailer independence at risk.


</P>
</DIV8>


<DIV8 N="§ 8.52" NODE="27:1.0.1.1.6.4.45.2" TYPE="SECTION">
<HEAD>§ 8.52   Practices which result in exclusion.</HEAD>
<P>The practices specified in this section result in exclusion under section 105(a) of the Act. The practices specified here are examples and do not constitute a complete list of such practices:
</P>
<P>(a) Purchases of distilled spirits, wine or malt beverages by a retailer as a result, directly or indirectly, of a threat or act of physical or economic harm by the selling industry member.
</P>
<P>(b) Contracts between an industry member and a retailer which require the retailer to purchase distilled spirits, wine, or malt beverages from that industry member and expressly restrict the retailer from purchasing, in whole or in part, such products from another industry member.


</P>
</DIV8>


<DIV8 N="§ 8.53" NODE="27:1.0.1.1.6.4.45.3" TYPE="SECTION">
<HEAD>§ 8.53   Practice not resulting in exclusion.</HEAD>
<P>The practice specified in this section is deemed not to result in exclusion under section 105(a) of the Act: a supply contract for one year or less between the industry member and retailer under which the industry member agrees to sell distilled spirits, wine, or malt beverages to the retailer on an “as needed” basis provided that the retailer is not required to purchase any minimum quantity of such product.


</P>
</DIV8>


<DIV8 N="§ 8.54" NODE="27:1.0.1.1.6.4.45.4" TYPE="SECTION">
<HEAD>§ 8.54   Criteria for determining retailer independence.</HEAD>
<P>The criteria specified in this section are indications that a particular practice, other than those in §§ 8.52 and 8.53, places retailer independence at risk. A practice need not meet all of the criteria specified in this section in order to place retailer independence at risk.
</P>
<P>(a) The practice restricts or hampers the free economic choice of a retailer to decide which products to purchase or the quantity in which to purchase them for sale to consumers.
</P>
<P>(b) The industry member obligates the retailer to participate in the promotion to obtain the industry member's product.
</P>
<P>(c) The retailer has a continuing obligation to purchase or otherwise promote the industry member's product.
</P>
<P>(d) The retailer has a commitment not to terminate its relationship with the industry member with respect to purchase of the industry member's products.
</P>
<P>(e) The practice involves the industry member in the day-to-day operations of the retailer. For example, the industry member controls the retailer's decisions on which brand of products to purchase, the pricing of products, or the manner in which the products will be displayed on the retailer's premises.
</P>
<P>(f) The practice is discriminatory in that it is not offered to all retailers in the local market on the same terms without business reasons present to justify the difference in treatment.


</P>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="9" NODE="27:1.0.1.1.7" TYPE="PART">
<HEAD>PART 9—AMERICAN VITICULTURAL AREAS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>27 U.S.C. 205.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-60, 44 FR 56692, Oct. 2, 1979, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 9.0" NODE="27:1.0.1.1.7.0.45.1" TYPE="SECTION">
<HEAD>§ 9.0   Scope.</HEAD>
<P>The regulations in this part relate to American viticultural areas created under the authority of the Federal Alcohol Administration Act and referred to in § 4.25(e) of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-90, 76 FR 3500, Jan. 20, 2011]


</CITA>
</DIV8>


<DIV6 N="A" NODE="27:1.0.1.1.7.1" TYPE="SUBPART">
<HEAD>Subpart A—General Provisions</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-90, 76 FR 3500, Jan. 20, 2011, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 9.1" NODE="27:1.0.1.1.7.1.45.1" TYPE="SECTION">
<HEAD>§ 9.1   Definitions.</HEAD>
<P>(a) <I>General.</I> For purposes of this part, and unless the specific context otherwise requires, the following terms shall have the meanings indicated:
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>American viticultural area.</I> A viticultural area as defined in § 4.25(e)(1)(i) of this chapter.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.9, Delegation of the Administrator's Authorities in 27 CFR Part 9, American Viticultural Areas.
</P>
<P><I>Approved map.</I> The U.S.G.S. map(s) used to define the boundary of an approved AVA.
</P>
<P><I>AVA.</I> An American viticultural area.
</P>
<P><I>Perfected petition.</I> A petition containing all of the evidence meeting the requirements of § 9.12 and containing sufficient supporting information for TTB to decide whether or not to proceed with rulemaking to establish a new AVA or to change an existing AVA.
</P>
<P><I>Person.</I> An individual, partnership, association, corporation, or other entity.
</P>
<P><I>Petition.</I> A written request to establish a new AVA or to change an existing AVA, signed by the petitioner or an authorized agent of the petitioner, and submitted in accordance with this part and § 70.701(c) of this chapter.
</P>
<P><I>Petitioner.</I> An individual or entity that submits a petition to TTB.
</P>
<P><I>Term of viticultural significance.</I> A name recognized under § 4.39(i)(3) of this chapter.
</P>
<P><I>TTB.</I> The Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>U.S.G.S.</I> The United States Geological Survey.
</P>
<P>(b) <I>Use of other terms.</I> Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the same meaning assigned to it by that Act.


</P>
</DIV8>


<DIV8 N="§ 9.2" NODE="27:1.0.1.1.7.1.45.2" TYPE="SECTION">
<HEAD>§ 9.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States, the District of Columbia, and Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 9.3" NODE="27:1.0.1.1.7.1.45.3" TYPE="SECTION">
<HEAD>§ 9.3   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. Those TTB officers are specified in TTB Order 1135.9, Delegation of the Administrator's Authorities in 27 CFR Part 9, American Viticultural Areas. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.


</P>
<CITA TYPE="N">[T.D. TTB-90, 76 FR 3500, Jan. 20, 2011, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.7.2" TYPE="SUBPART">
<HEAD>Subpart B—AVA Petitions</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-90, 76 FR 3500, Jan. 20, 2011, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 9.11" NODE="27:1.0.1.1.7.2.45.1" TYPE="SECTION">
<HEAD>§ 9.11   Submission of AVA petitions.</HEAD>
<P>(a) <I>Procedure for petitioner.</I> Any person may submit an AVA petition to TTB to establish a grape-growing region as a new AVA, to change the boundary of an existing AVA, or to change the name of an existing AVA. The petitioner is responsible for including with the petition all of the information specified in § 9.12. The person submitting the petition is also responsible for providing timely and complete responses to TTB requests for additional information to support the petition.


</P>
<P>(b) <I>How and where to submit an AVA petition.</I> The AVA petition may be sent to TTB via the U.S. Postal Service or a private delivery service. A petition sent via the U.S. Postal Service should be addressed to: Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005. A petition sent via a private delivery service should be directed to: Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Room 300 East, Washington, DC 20005.
</P>
<P>(c) <I>Purpose and effect of submission of AVA petitions.</I> The submission of a petition under this subpart is intended to provide TTB with sufficient documentation to propose the establishment of a new AVA or to propose changing the name or boundary of an existing AVA. After considering the petition evidence and any other relevant information, TTB shall decide what action to take in response to a petition and shall so advise the petitioner. Nothing in this chapter shall, or shall be interpreted to, compel any Department of the Treasury official to proceed to rulemaking in response to a submitted petition.
</P>
<SECAUTH TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0127)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-90, 76 FR 3500, Jan. 20, 2011, as amended T.D. TTB-196, 89 FR 87936, Nov. 7, 2024


</CITA>
</DIV8>


<DIV8 N="§ 9.12" NODE="27:1.0.1.1.7.2.45.2" TYPE="SECTION">
<HEAD>§ 9.12   AVA petition requirements.</HEAD>
<P>(a) <I>Establishment of an AVA in general.</I> A petition for the establishment of a new AVA must include all of the evidentiary materials and other information specified in this section. The petition must contain sufficient information, data, and evidence such that no independent verification or research is required by TTB.
</P>
<P>(1) <I>Name evidence.</I> The name identified for the proposed AVA must be currently and directly associated with an area in which viticulture exists. All of the area within the proposed AVA boundary must be nationally or locally known by the name specified in the petition, although the use of that name may extend beyond the proposed AVA boundary. The name evidence must conform to the following rules:
</P>
<P>(i) <I>Name usage.</I> The petition must completely explain, in narrative form, the manner in which the name is used for the area covered by the proposed AVA.
</P>
<P>(ii) <I>Source of name and name evidence.</I> The name and the evidence in support of it must come from sources independent of the petitioner. Appropriate name evidence sources include, but are not limited to, historical and modern government or commercial maps, books, newspapers, magazines, tourist and other promotional materials, local business or school names, and road names. Whenever practicable, the petitioner must include with the petition copies of the name evidence materials, appropriately cross-referenced in the petition narrative. Although anecdotal information by itself is not sufficient, statements taken from local residents with knowledge of the name and its use may also be included to support other name evidence.
</P>
<P>(2) <I>Boundary evidence.</I> The petition must explain in detail the basis for defining the boundary of the proposed AVA as set forth in the petition. This explanation must have reference to the name evidence and other distinguishing features information required under this section. In support of the proposed boundary, the petition must outline the commonalities or similarities within that boundary and must explain with specificity how those elements are different in the adjacent areas outside that boundary.
</P>
<P>(3) <I>Distinguishing features.</I> The petition must provide, in narrative form, a description of the common or similar features of the proposed AVA affecting viticulture that make it distinctive. The petition must also explain with specificity in what way these features affect viticulture and how they are distinguished viticulturally from features associated with adjacent areas outside the proposed AVA boundary. For purposes of this section, information relating to distinguishing features affecting viticulture includes the following:
</P>
<P>(i) <I>Climate.</I> Temperature, precipitation, wind, fog, solar orientation and radiation, and other climate information;
</P>
<P>(ii) <I>Geology.</I> Underlying formations, landforms, and such geophysical events as earthquakes, eruptions, and major floods;
</P>
<P>(iii) <I>Soils.</I> Soil series or phases of a soil series, denoting parent material, texture, slope, permeability, soil reaction, drainage, and fertility;
</P>
<P>(iv) <I>Physical features.</I> Flat, hilly, or mountainous topography, geographical formations, bodies of water, watersheds, irrigation resources, and other physical features; and
</P>
<P>(v) <I>Elevation.</I> Minimum and maximum elevations.
</P>
<P>(4) <I>Maps and boundary description.</I> —(i) <I>Maps.</I> The petitioner must submit with the petition, in an appropriate scale, the U.S.G.S. map(s) showing the location of the proposed AVA. The exact boundary of the AVA must be prominently and clearly drawn on the maps without obscuring the underlying features that define the boundary line. U.S.G.S. maps may be obtained from the U.S. Geological Survey, Branch of Distribution. If the map name is not known, the petitioner may request a map index by State.
</P>
<P>(ii) <I>Boundary description.</I> The petition must include a detailed narrative description of the proposed AVA boundary based on U.S.G.S. map markings. This description must have a specific beginning point, must proceed unbroken from that point in a clockwise direction, and must return to that beginning point to complete the boundary description. The boundary description must refer to easily discernable reference points on the U.S.G.S. maps. The proposed AVA boundary description may rely on any of the following map features:
</P>
<P>(A) State, county, township, forest, and other political entity lines;
</P>
<P>(B) Highways, roads (including unimproved roads), and trails;
</P>
<P>(C) Contour or elevation lines;
</P>
<P>(D) Natural geographical features, including rivers, streams, creeks, ridges, and marked elevation points (such as summits or benchmarks);
</P>
<P>(E) Human-made features (such as bridges, buildings, windmills, or water tanks); and
</P>
<P>(F) Straight lines between marked intersections, human-made features, or other map points.
</P>
<P>(b) <I>AVAs within AVAs.</I> If the petition proposes the establishment of a new AVA entirely within, or overlapping, an existing AVA, the evidence submitted under paragraph (a) of this section must include information that both identifies the attributes of the proposed AVA that are consistent with the existing AVA and explains how the proposed AVA is sufficiently distinct from the existing AVA and therefore appropriate for separate recognition. If the petition proposes the establishment of a new AVA that is larger than, and encompasses, all of one or more existing AVAs, the evidence submitted under paragraph (a) of this section must include information addressing whether, and to what extent, the attributes of the proposed AVA are consistent with those of the existing AVA(s). In any case in which an AVA would be created entirely within another AVA, whether by the establishment of a new, larger AVA or by the establishment of a new AVA within an existing one, the petition must explain why establishment of the AVA is acceptable. When a smaller AVA has name recognition and features that so clearly distinguish it from a larger AVA that surrounds it, TTB may determine in the course of the rulemaking that it is not part of the larger AVA and that wine produced from grapes grown within the smaller AVA would not be entitled to use the name of the larger AVA as an appellation of origin or in a brand name.
</P>
<P>(c) <I>Modification of an existing AVA</I>—(1) <I>Boundary change.</I> If a petition seeks to change the boundary of an existing AVA, the petitioner must include with the petition all relevant evidence and other information specified for a new AVA petition in paragraphs (a) and (b) of this section. This evidence or information must include, at a minimum, the following:
</P>
<P>(i) <I>Name evidence.</I> If the proposed change involves an expansion of the existing boundary, the petition must show how the name of the existing AVA also applies to the expansion area. If the proposed change would result in a decrease in the size of an existing AVA, the petition must explain, if so, the extent to which the AVA name does not apply to the excluded area.
</P>
<P>(ii) <I>Distinguishing features.</I> The petition must demonstrate that the area covered by the proposed change has, or does not have, distinguishing features affecting viticulture that are essentially the same as those of the existing AVA. If the proposed change involves an expansion of the existing AVA, the petition must demonstrate that the area covered by the expansion has the same distinguishing features as those of the existing AVA and has different features from those of the area outside the proposed, new boundary. If the proposed change would result in a decrease in the size of an existing AVA, the petition must explain how the distinguishing features of the excluded area are different from those within the boundary of the smaller AVA. In all cases the distinguishing features must affect viticulture.
</P>
<P>(iii) <I>Boundary evidence and description.</I> The petition must explain how the boundary of the existing AVA was incorrectly or incompletely defined or is no longer accurate due to new evidence or changed circumstances, with reference to the name evidence and distinguishing features of the existing AVA and of the area affected by the proposed boundary change. The petition must include the appropriate U.S.G.S. maps with the proposed boundary change drawn on them and must provide a detailed narrative description of the changed boundary.
</P>
<P>(2) <I>Name change.</I> If a petition seeks to change the name of an existing AVA, the petition must establish the suitability of that name change by providing the name evidence specified in paragraph (a)(1) of this section.
</P>
<SECAUTH TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0127)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-90, 76 FR 3500, Jan. 20, 2011, as amended by T.D. TTB-196 , 89 FR 87936, Nov. 6, 2024


</CITA>
</DIV8>


<DIV8 N="§ 9.13" NODE="27:1.0.1.1.7.2.45.3" TYPE="SECTION">
<HEAD>§ 9.13   Initial processing of AVA petitions.</HEAD>
<P>(a) <I>TTB notification to petitioner of petition receipt.</I> The appropriate TTB officer will acknowledge receipt of a submitted petition. This notification will be in a letter sent to the petitioner within 30 days of receipt of the petition.
</P>
<P>(b) <I>Acceptance of a perfected petition or return of a deficient petition to the petitioner.</I> The appropriate TTB officer will perform an initial review of the petition to determine whether it is a perfected petition. If the petition is not perfected, the appropriate TTB officer will return it to the petitioner without prejudice to resubmission in perfected form. If the petition is perfected, TTB will decide whether to proceed with rulemaking under § 9.14 and will advise the petitioner in writing of that decision. If TTB decides to proceed with rulemaking, TTB will advise the petitioner of the date of receipt of the perfected petition. If TTB decides not to proceed with rulemaking, TTB will advise the petitioner of the reasons for that decision.
</P>
<P>(c) <I>Notice of pending petition.</I> When a perfected petition is accepted for rulemaking, TTB will place a notice to that effect on the TTB Web site.


</P>
</DIV8>


<DIV8 N="§ 9.14" NODE="27:1.0.1.1.7.2.45.4" TYPE="SECTION">
<HEAD>§ 9.14   AVA rulemaking process.</HEAD>
<P>(a) <I>Notice of proposed rulemaking.</I> If TTB determines that rulemaking in response to a petition is appropriate, TTB will prepare and publish a notice of proposed rulemaking (NPRM) in the <E T="04">Federal Register</E> to solicit public comments on the petitioned-for AVA action.
</P>
<P>(b) <I>Final action.</I> Following the close of the NPRM comment period, TTB will review any submitted comments and any other available relevant information and will take one of the following actions:
</P>
<P>(1) Prepare a final rule for publication in the <E T="04">Federal Register</E> adopting the proposed AVA action, with or without changes;
</P>
<P>(2) Prepare a notice for publication in the <E T="04">Federal Register</E> withdrawing the proposal and setting forth the reasons for the withdrawal. Reasons for withdrawal of a proposal must include at least one of the following:
</P>
<P>(i) The extent of viticulture within the proposed boundary is not sufficient to constitute a grape-growing region as specified in § 9.11(a); or
</P>
<P>(ii) The name, boundary, or distinguishing features evidence does not meet the standards for such evidence set forth in § 9.12; or
</P>
<P>(iii) The petitioned-for action would be inconsistent with one of the purposes of the Federal Alcohol Administration Act or any other Federal statute or regulation or would be otherwise contrary to the public interest;
</P>
<P>(3) Prepare a new NPRM for publication in the <E T="04">Federal Register</E> setting forth a modified AVA action for public comment; or
</P>
<P>(4) Take any other action deemed appropriate by TTB as authorized by law.


</P>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.7.3" TYPE="SUBPART">
<HEAD>Subpart C—Approved American Viticultural Areas</HEAD>


<DIV8 N="§ 9.21" NODE="27:1.0.1.1.7.3.45.1" TYPE="SECTION">
<HEAD>§ 9.21   General.</HEAD>
<P>The viticultural areas listed in this subpart are approved for use as appellations of origin in accordance with part 4 of this chapter.


</P>
</DIV8>


<DIV8 N="§ 9.22" NODE="27:1.0.1.1.7.3.45.2" TYPE="SECTION">
<HEAD>§ 9.22   Augusta.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Augusta.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for the Augusta viticultural area are two U.S.G.S. maps. They are titled:
</P>
<P>(1) “Washington East, Missouri”, 7.5 minute quadrangle; and
</P>
<P>(2) “Labadie, Missouri”, 7.5 minute quadrangle.
</P>
<P>(c) <I>Boundaries.</I> The boundaries of the Augusta viticultural area are located in the State of Missouri and are as follows:
</P>
<P>(1) The beginning point of the boundary is the intersection of the St. Charles County line, the Warren County line and the Franklin County line.
</P>
<P>(2) The western boundary is the St. Charles County-Warren County line from the beginning point to the township line identified on the approved maps as “T45N/T44N.”
</P>
<P>(3) The northern boundary is the township line “T45N/T44N” from the St. Charles County-Warren County line to the range line identified on the approved maps as “R1E/R2E.”
</P>
<P>(4) The eastern boundary is the range line “R1E/R2E” from township line “T45N/T44N” extended to the St. Charles County-Franklin County line.
</P>
<P>(5) The southern boundary is the St. Charles County-Franklin County line from the extension of range line “R1E/R2E” to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-72, 45 FR 41633, June 20, 1980]


</CITA>
</DIV8>


<DIV8 N="§ 9.23" NODE="27:1.0.1.1.7.3.45.3" TYPE="SECTION">
<HEAD>§ 9.23   Napa Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Napa Valley.”
</P>
<P>(b) <I>Approved maps.</I> The maps showing the boundaries of the Napa Valley viticultural area are the:
</P>
<P>(1) “Mt. St. Helena” U.S.G.S. 7.5 minute quadrangle;
</P>
<P>(2) “Detert Reservoir” U.S.G.S. 7.5 minute quadrangle;
</P>
<P>(3) “St. Helena” U.S.G.S. 15 minute quadrangle;
</P>
<P>(4) “Jericho Valley” U.S.G.S. 7.5 minute quadrangle;
</P>
<P>(5) “Lake Berryessa” U.S.G.S. 15 minute quadrangle;
</P>
<P>(6) “Mt. Vaca” U.S.G.S. 15 minute quadrangle;
</P>
<P>(7) “Cordelia” U.S.G.S. 7.5 minute quadrangle;
</P>
<P>(8) “Cuttings Wharf” U.S.G.S. 7.5 minute quadrangle; and
</P>
<P>(9) Appropriate Napa County tax assessor's maps showing the Napa County-Sonoma County line.
</P>
<P>(c) <I>Boundaries.</I> The Napa Valley viticultural area is located within Napa County, California. From the beginning point at the conjuction of the Napa County-Sonoma County line and the Napa County-Lake County line, the boundary runs along—
</P>
<P>(1) The Napa County-Lake County line;
</P>
<P>(2) Putah Creek and the western and southern shores of Lake Berryessa;
</P>
<P>(3) The Napa County-Solano County line; and
</P>
<P>(4) The Napa County-Sonoma County line to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-79, 46 FR 9063, Jan. 28, 1981, as amended by T.D. ATF-201, 50 FR 12533, Mar. 29, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 9.24" NODE="27:1.0.1.1.7.3.45.4" TYPE="SECTION">
<HEAD>§ 9.24   Chalone.</HEAD>
<P>(a) <I>Name</I> The name of the viticultural area described in this section is “Chalone.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Chalone viticultural area are four U.S.G.S. 7.5 minute quadrangle maps. They are titled:
</P>
<P>(1) “Mount Johnson, California, 1968”;
</P>
<P>(2) “Bickmore Canyon, California, 1968”;
</P>
<P>(3) “Soledad, California, 1955”; and
</P>
<P>(4) “North Chalone Peak, California, 1969.”
</P>
<P>(c) <I>Boundaries.</I> The Chalone viticultural area includes 8640 acres, primarily located in Monterey County, California, with small portions in the north and east located in San Benito County, California. The boundaries of the Chalone viticultural area encompass:
</P>
<P>(1) Sections 35 and 36, in their entirety, of T.16 S., R.6.E.;
</P>
<P>(2) Sections 1, 2 and 12, in their entirety, of T.17 S., R.6 E.;
</P>
<P>(3) Sections 6, 7, 8, 9, 16, and 17, in their entirety, the western half of Section 5, and the eastern half of Section 18 of T.17 S., R.7 E.; and
</P>
<P>(4) Section 31, in its entirety, and the western half of Section 32 of T.16 S., R.7 E.
</P>
<CITA TYPE="N">[T.D. ATF-107, 47 FR 25519, June 14, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.25" NODE="27:1.0.1.1.7.3.45.5" TYPE="SECTION">
<HEAD>§ 9.25   San Pasqual Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Pasqual Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries are three U.S.G.S. maps. They are entitled:
</P>
<P>(1) “Escondido Quadrangle, California—San Diego County”, 7.5 minute series;
</P>
<P>(2) “San Pasqual Quadrangle, California—San Diego County”, 7.5 minute series;
</P>
<P>(3) “Valley Center Quadrangle, California—San Diego County”, 7.5 minute series.
</P>
<P>(c) <I>Boundaries.</I> The San Pasqual Valley viticultural area is located in San Diego County, California.
</P>
<P>(1) From the beginning point at the intersection of Interstate 15 and the 500-foot contour line, north of the intersection of point of Interstate 15 and T.12 S./T.13 S., the boundary line follows the 500-foot contour line to;
</P>
<P>(2) The point nearest San Pasqual Road and the 500-foot contour line, the boundary line follows the Escondido Corporate Boundary line to the 500-foot contour line on the hillock and circumnavigates said hillock back to the Escondido Corporate Boundary line and returns to the 500-foot contour line nearest to San Pasqual Road and;
</P>
<P>(3) Continues along the 500-foot contour line completely around San Pasqual Valley to a point where the 500-foot contour line intersects with Pomerado Road, at this point, the boundary line, in a straight, northwesterly direction crosses over to;
</P>
<P>(4) The 500-foot contour line of Battle Mountain, following the 500-foot contour line around Battle Mountain to point nearest to Interstate 15, at which point the boundary line crosses over to Interstate 15; and
</P>
<P>(5) Continues northward along Interstate 15 to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 41493, Sept. 23, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 9.26" NODE="27:1.0.1.1.7.3.45.6" TYPE="SECTION">
<HEAD>§ 9.26   Guenoc Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Guenoc Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Guenoc Valley viticultural area are four USGS maps. They are titled:
</P>
<P>(1) “Middletown Quadrangle, California-Lake Co.,” 7.5 minute series;
</P>
<P>(2) “Jericho Valley Quadrangle, California,” 7.5 minute series;
</P>
<P>(3) “Detert Reservoir Quadrangle, California,” 7.5 minute series; and
</P>
<P>(4) “Aetna Springs Quadrangle, California,” 7.5 minute series.
</P>
<P>(c) <I>Boundaries.</I> The Guenoc Valley viticultural area is located within Lake County, California. The beginning point of the boundary is Station 20 of Denton's Survey of Guenoc Rancho, presently marked by a 1
<FR>1/2</FR> inch galvanized pipe located atop Jim Davis Peak. On the approved maps, Jim Davis Peak is the unnamed peak (elevation 1,455 feet) located on the western boundary of Section 35, Township 11 North, Range 6 West. From this beginning point the boundary runs:
</P>
<P>(1) South 07°49′34″ East, 9,822.57 feet to the USGS triangulation station “Guenoc;”
</P>
<P>(2) Then, South 29°14′31″ West, 10,325.08 feet;
</P>
<P>(3) Then, South 00°00′ West, 2,100.00 feet;
</P>
<P>(4) Then, North 90°00′ West, 4,150.00 feet;
</P>
<P>(5) Then, North 24°23′11″ West, 16,469.36 feet;
</P>
<P>(6) Then, North 75°47′20″ East, 7,943.08 feet; and
</P>
<P>(7) Then, North 60°47′00″ East, 7,970.24 feet to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-95, 46 FR 56786, Nov. 19, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 9.27" NODE="27:1.0.1.1.7.3.45.7" TYPE="SECTION">
<HEAD>§ 9.27   Lime Kiln Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lime Kiln Valley.”
</P>
<P>(b) <I>Approved Map.</I> The appropriate map for determining the boundaries of the Lime Kiln Valley Viticultural area is: “Paicines Quadrangle, California,” 1968, 7.5 minute series.
</P>
<P>(c) <I>Boundaries.</I> The Lime Kiln Valley viticultural area is located in San Benito County, California. From the beginning point at the intersection of Thompson Creek and Cienega Road, the boundary proceeds, in a straight line to the summit of an unnamed peak (1,288 feet) in the northwest quarter of Section 28, T.14 S./R.6 E.;
</P>
<P>(1) Thence in a straight line from the summit of the unnamed peak (1,288 feet) to a point where it intersects the 1,400-foot contour line, by the elevation marker, in the southwest quarter of T.14 S./R.6 E, Section 28;
</P>
<P>(2) Thence following the 1,400-foot contour line through the following sections; Sections 28, 29, and 30, T.14 S./R.6 E.; Section 25, T.14 S./R.5 E.; Sections 30, 19, 20, and returning to 19, T.14 S./R.6 E., to a point where the 1,400-foot contour line intersects with the section line between Sections 19 and 18, T.14 S./R.6 E.;
</P>
<P>(3) Thence in a straight line to the Cienega School Building along Cienega Road;
</P>
<P>(4) Thence along Cienega Road to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-106, 47 FR 24296, June 4, 1982, as amended by T.D. ATF-249, 52 FR 5956, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.28" NODE="27:1.0.1.1.7.3.45.8" TYPE="SECTION">
<HEAD>§ 9.28   Santa Maria Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Santa Maria Valley”. For purposes of part 4 of this chapter, “Santa Maria Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey maps used to determine the boundary of the Santa Maria Valley viticultural area are titled:
</P>
<P>(1) Orcutt Quadrangle, California-Santa Barbara Co., 7.5 minute series, 1959, photorevised 1967 and 1974, photoinspected 1978;
</P>
<P>(2) Santa Maria Quadrangle, California, 7.5 minute series, 1959, photorevised 1982;
</P>
<P>(3) “San Luis Obispo”, N.I. 10-3, series V 502, scale 1: 250,000;
</P>
<P>(4) “Santa Maria”, N.I. 10-6, 9, series V 502, scale 1: 250,000;
</P>
<P>(5) Foxen Canyon Quadrangle, California-Santa Barbara Co., 7.5-minute series, 1995; and
</P>
<P>(6) Sisquoc Quadrangle, California-Santa Barbara Co., 7.5 minute series, 1959, photoinspected 1974.
</P>
<P>(c) <I>Boundary.</I> The Santa Maria Valley viticultural area is located in Santa Barbara and San Luis Obispo Counties, California. The boundary of the Santa Maria Valley viticultural area is as follows:
</P>
<P>(1) Begin on the Orcutt quadrangle map at the intersection of U.S. Route 101 and Clark Avenue, section 18 north boundary line, T9N/R33W, then proceed generally north along U.S. Route 101 approximately 10 miles onto the Santa Maria quadrangle map to U.S. Route 101's intersection with State Route 166 (east), T10N/R34W; then
</P>
<P>(2) Proceed generally northeast along State Route 166 (east) onto the San Luis Obispo N.I. 10-3 map to State Route 166's intersection with the section line southwest of Chimney Canyon, T11N/R32W; then
</P>
<P>(3) Proceed south in a straight line onto the Santa Maria N.I. 10-6 map to the 3,016-foot summit of Los Coches Mountain; then
</P>
<P>(4) Proceed southeast in a straight line onto the Foxen Canyon quadrangle map to the 2,822-foot summit of Bone Mountain, T9N/R32W; then
</P>
<P>(5) Proceed south-southwest in a straight line approximately 6 miles to the line's intersection with secondary highways Foxen Canyon Road and Alisos Canyon Road and a marked 1,116-foot elevation point, T8N/R32W; then
</P>
<P>(6) Proceed west-northwest in a straight line approximately 6 miles onto the Sisquoc quadrangle map to the southeast corner of section 4, T8N/R32W; then
</P>
<P>(7) Proceed west-northwest in a straight line approximately 6.2 miles, crossing over the Solomon Hills, to the line's intersection with U.S. Route 101 and a private, unnamed light-duty road that meanders east into the Cat Canyon Oil Field, T9N/R33W; then
</P>
<P>(8) Proceed north 3.75 miles along U.S. Route 101 onto the Orcutt quadrangle map and return to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-89, 46 FR 39812, Aug. 5, 1981, as amended by T.D. TTB-88, 75 FR 81849, Dec. 29, 2010]


</CITA>
</DIV8>


<DIV8 N="§ 9.29" NODE="27:1.0.1.1.7.3.45.9" TYPE="SECTION">
<HEAD>§ 9.29   Sonoma Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Sonoma Valley.”
</P>
<P>(b) <I>Approved maps.</I> The maps showing the boundaries of the Sonoma valley viticultural area are entitled:
</P>
<P>(1) “Cuttings Wharf, Calif.”, 1949 (photorevised 1968 and photoinspected 1973), 7.5 minute quadrangle;
</P>
<P>(2) “Petaluma Point, Calif.”, 1959 (photorevised 1968 and photoinspected 1973), 7.5 minute quadrangle;
</P>
<P>(3) “Sears Point, Calif.”, 1951 (photorevised 1968), 7.5 minute quadrangle;
</P>
<P>(4) “Petaluma River, Calif.”, 1954 (photorevised 1968 and 1973), 7.5 minute quadrangle;
</P>
<P>(5) “Glen Ellen, Calif.”, 1954 (photorevised 1968 and photoinspected 1973), 7.5 minute quadrangle;
</P>
<P>(6) “Cotati, Calif.”, 1954 (photorevised 1968 and 1973), 7.5 minute quadrangle;
</P>
<P>(7) “Santa Rosa, Calif.”, 1954 (photorevised 1968 and 1973), 7.5 minute quadrangle;
</P>
<P>(8) “Kenwood, Calif.”, 1954 (photorevised 1968 and photoinspected 1973), 7.5 minute quadrangle; and
</P>
<P>(9) Appropriate Sonoma County tax assessor's maps showing the Sonoma County-Napa County line.
</P>
<P>(c) <I>Boundaries.</I> The Sonoma Valley viticultural area is located within Sonoma County, California. From the beginning point at the junction of Tolay Creek and San Pablo Bay, the boundary runs:
</P>
<P>(1) Northerly along Tolay Creek to Highway 37;
</P>
<P>(2) Westerly along Highway 37 to its junction with Highway 121;
</P>
<P>(3) Northwesterly in a straight line to the peak of Wildcat Mountain;
</P>
<P>(4) Northwesterly in a straight line to Sonoma Mountain to the horizontal control station at elevation 2,271 feet;
</P>
<P>(5) Northwesterly in a straight line to the peak of Taylor Mountain;
</P>
<P>(6) Northeasterly in a straight line to the point at which Los Alamos Road joins Highway 12;
</P>
<P>(7) Easterly in a straight line to the peak of Buzzard Peak;
</P>
<P>(8) Easterly in a straight line to the peak of Mount Hood;
</P>
<P>(9) Easterly in a straight line to an unnamed peak located on the Sonoma County-Napa County line and identified as having an elevation of 2,530 feet (This unnamed peak is located in the northeast quarter of Section 9, Township 7 North, Range 6 West, Mt. Diablo Base and Meridian);
</P>
<P>(10) Southerly along the Sonoma County-Napa County line to the point at which Sonoma Creek enters San Pablo Bay; and
</P>
<P>(11) Southwesterly along the shore of San Pablo Bay to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-96, 46 FR 59238, Dec. 4, 1981, as amended by T.D. ATF-201, 50 FR 12533, Mar. 29, 1985; T.D. ATF-249, 52 FR 5956, Feb. 27, 1987] 


</CITA>
</DIV8>


<DIV8 N="§ 9.30" NODE="27:1.0.1.1.7.3.45.10" TYPE="SECTION">
<HEAD>§ 9.30   North Coast.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “North Coast.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the North Coast viticultural area are five U.S.G.S. maps. They are entitled:
</P>
<P>(1) “San Francisco, Cal.”, scaled 1:250,000, edition of 1956, revised 1980;
</P>
<P>(2) “Santa Rosa, Cal.”, scaled 1:250,000, edition of 1958, revised 1970;
</P>
<P>(3) “Ukiah, Cal.”, scaled 1:250,000, edition of 1957, revised 1971;
</P>
<P>(4) “Tomales, CA,” scale 1:24,000, edition of 1995; and
</P>
<P>(5) “Point Reyes NE., CA,” scale 1:24,000, edition of 1995.
</P>
<P>(c) <I>Boundaries.</I> The North Coast viticultural area is located in Lake, Marin, Mendocino, Napa, Solano, and Sonoma Counties, California. The beginning point is found on the “Santa Rosa, California” U.S.G.S. map at the point where the Sonoma and Marin County boundary joins the Pacific Ocean.
</P>
<P>(1) Then follow the Pacific coastline in a generally southeasterly direction for 9.4 miles, crossing onto the Tomales map, to Preston Point on Tomales Bay;
</P>
<P>(2) Then northeast along the shoreline of Tomales Bay approximately 1 mile to the mouth of Walker Creek opposite benchmark (BM) 10 on State Highway 1;
</P>
<P>(3) Then southeast in a straight line for 1.3 miles to the marked 741-foot peak;
</P>
<P>(4) Then southeast in a straight line for 3.1 miles, crossing onto the Point Reyes NE map, to the marked 804-foot peak;
</P>
<P>(5) Then southeast in a straight line 1.8 miles to the marked 935-foot peak;
</P>
<P>(6) Then southeast in a straight line 12.7 miles, crossing back onto the Santa Rosa map, to the marked 1,466-foot peak on Barnabe Mountain;
</P>
<P>(7) Then southeast in a straight line for approximately 10.0 miles to the peak of Mount Tamalpais (western peak, elevation 2604 feet);
</P>
<P>(8) Then northeast in a straight line for approximately 5.8 miles to the confluence of San Rafael Creek and San Rafael Bay in San Rafael;
</P>
<P>(9) Then north and northeast following San Rafael Bay and San Pablo Bay to Sonoma Creek;
</P>
<P>(10) Then north following Sonoma Creek to the boundary between Napa and Solano Counties;
</P>
<P>(11) Then east and north following the boundary between Napa and Solano Counties to the right-of-way of the Southern Pacific Railroad in Jameson Canyon;
</P>
<P>(12) Then east following the right-of-way of the Southern Pacific Railroad to the junction with the Southern Pacific in Suisun City;
</P>
<P>(13) Then north in a straight line for approximately 5.5 miles to the extreme southeastern corner of Napa County;
</P>
<P>(14) Then north following the boundary between Napa and Solano Counties to the Monticello Dam at the eastern end of Lake Berryessa;
</P>
<P>(15) Then following the south and west shore of Lake Berryessa to Putah Creek;
</P>
<P>(16) Then northwest following Putah Creek to the boundary between Napa and Lake Counties;
</P>
<P>(17) Then northwest in a straight line for approximately 11.4 miles to the peak of Brushy Sky High Mountain (elevation 3196 feet);


</P>
<P>(18) Then north-northwest in a straight line for approximately 7.6 miles to the 1,851-foot summit of Red Rocks;
</P>
<P>(19) Then northwest in a straight line for approximately 4.3 miles to the 1,696- foot summit of Chalk Mountain;
</P>
<P>(20) Then northwest in a straight line for approximately 6 miles to the 4,005- foot summit of Evans Peak;
</P>
<P>(21) Then northwest in a straight line for approximately 5.0 miles to Pinnacle Rock Lookout;
</P>
<P>(22) Then northwest in a straight line for approximately 8.0 miles to Youngs Peak (elevation 3683 feet);
</P>
<P>(23) Then northwest in a straight line for approximately 11.2 miles to the peak of Pine Mountain (elevation 4057 feet);
</P>
<P>(24) Then northwest in a straight line for approximately 12.1 miles to the peak of Sanhedrin Mountain (elevation 6175 feet);
</P>
<P>(25) Then northwest in a straight line for approximately 9.4 miles to the peak of Brushy Mountain (elevation 4864 feet);
</P>
<P>(26) Then southwest in a straight line for approximately 17.6 miles to the confluence of Redwood Creek and the Noyo River;
</P>
<P>(27) Then west following the Noyo River to its mouth at the Pacific Ocean;
</P>
<P>(28) Then southeast following the Pacific Ocean shoreline to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-145, 48 FR 42977, Sept. 21, 1983, as amended by T.D. TTB-149, 82 FR 57662, Dec. 7, 2017; T.D. TTB-188, 88 FR 42881, July 5, 2023; T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.31" NODE="27:1.0.1.1.7.3.45.11" TYPE="SECTION">
<HEAD>§ 9.31   Santa Cruz Mountains.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Santa Cruz Mountains.”
</P>
<P>(b) <I>Approved maps.</I> The 24 approved U.S.G.S. maps for determining the boundaries are 23 7.5 minute scale and one 5 × 11 minute scale.
</P>
<P>(1) “Ano Nuevo Quadrangle, California”;
</P>
<P>(2) “Big Basin Quadrangle, California”;
</P>
<P>(3) “Castle Rock Ridge Quadrangle, California”;
</P>
<P>(4) “Cupertino Quadrangle, California”;
</P>
<P>(5) “Davenport Quadrangle, California—Santa Cruz County”;
</P>
<P>(6) “Felton Quadrangle, California—Santa Cruz County”;
</P>
<P>(7) “Franklin Point Quadrangle, California”;
</P>
<P>(8) “Half Moon Bay Quadrangle, California—San Mateo County”;
</P>
<P>(9) “La Honda Quadrangle, California—San Mateo County”;
</P>
<P>(10) “Laurel Quadrangle, California”;
</P>
<P>(11) “Loma Prieta Quadrangle, California”;
</P>
<P>(12) “Los Gatos Quadrangle, California”;
</P>
<P>(13) “Mt. Madonna Quadrangle, California”;
</P>
<P>(14) “Mindego Hill Quadrangle, California”;
</P>
<P>(15) “Morgan Hill Quadrangle, California—Santa Clara County”;
</P>
<P>(16) “Palo Alto Quadrangle, California”;
</P>
<P>(17) “San Gregorio Quadrangle, California—San Mateo County”;
</P>
<P>(18) “San Mateo Quadrangle, California—San Mateo County”;
</P>
<P>(19) “Santa Teresa Hills Quadrangle—Santa Clara County”;
</P>
<P>(20) “Soquel Quadrangle, California—Santa Cruz County”;
</P>
<P>(21) “Watsonville East Quadrangle, California”;
</P>
<P>(22) “Watsonville West Quadrangle, California”;
</P>
<P>(23) “Woodside Quadrangle, California—San Mateo County”; and
</P>
<P>(24) One 5 × 11 minute series map entitled: “Santa Cruz, California.”
</P>
<P>(c) <I>Boundaries.</I> The Santa Cruz Mountains viticultural area is located in portions of San Mateo, Santa Clara, and Santa Cruz Counties, California.
</P>
<P>(1) From the beginning point where Highway 92 and the 400-foot contour line intersect (Half Moon Bay Quadrangle), the boundary line follows Highway 92, beginning in a southeasterly direction, to a point where Highway 92 and the 400-foot contour line intersect (San Mateo Quadrangle);
</P>
<P>(2) Thence along the 400-foot contour line, beginning in a southeasterly direction, to a point where the 400-foot contour line and Canada Road intersect (Woodside Quadrangle);
</P>
<P>(3) Thence along Canada Road, beginning in a southerly direction, to a point where Canada Road and Highway 280 intersect (Woodside Quadrangle);
</P>
<P>(4) Thence along Highway 280, beginning in a southeasterly direction, to a point where Highway 280 and 84 intersect (Palo Alto Quadrangle);
</P>
<P>(5) Thence along Highway 84, beginning in a southwesterly direction, to a point where Highway 84 and Mountain Home Road intersect (Woodside Quadrangle);
</P>
<P>(6) Thence along Mountain Home Road, beginning in a southerly direction, to a point where Mountain Home Road and Portola Road intersect (Palo Alto Quadrangle);
</P>
<P>(7) Thence along Portola Road, beginning in a westerly direction, to a point where Portola Road and Highway 84 intersect (Woodside Quadrangle);
</P>
<P>(8) Thence along Highway 84, beginning in a southwesterly direction, to a point where Highway 84 and the 600-foot contour line intersect (Woodside Quadrangle);
</P>
<P>(9) Thence along the 600-foot contour line, beginning in a northeasterly direction, to a point where the 600-foot contour line and Regnart Road intersect (Cupertino Quadrangle);
</P>
<P>(10) Thence along Regnart Road, beginning in a northeasterly direction, to a point where Regnart Road and the 400-foot contour line intersect (Cupertino Quadrangle);
</P>
<P>(11) Thence along the 400-foot contour line, beginning in a southerly direction, to a point where the 400-foot contour line and the north section line of Section 35, T. 6 S./R. 2 W, intersect (Cupertino Quadrangle);
</P>
<P>(12) Thence along the north section line of Sections 35 and 36, in an easterly direction, to a point where the section line and Highway 85 intersect (Cupertino Quadrangle);
</P>
<P>(13) Thence along Highway 85, in a southerly direction, to a point where Highway 85 and the southern section line of Section 36 intersect (Cupertino Quadrangle);
</P>
<P>(14) Thence along the section line, in a westerly direction, to a point where the section line and the 600-foot contour line intersect (Cupertino Quadrangle);
</P>
<P>(15) Thence along the 600-foot contour line, beginning in a southerly direction, to a point where the 600-foot contour line and Pierce Road intersect (Cupertino Quadrangle);
</P>
<P>(16) Thence along Pierce Road, in a southerly direction, to a point where Pierce Road and the 800-foot contour line intersect (Cupertino Quadrangle);
</P>
<P>(17) Thence along the 800-foot line, beginning in a northwesterly direction, to a point where the 800-foot contour line and the east section line of Section 25, T. 10 S./R. 2 E., intersect (Mt. Madonna Quadrangle);
</P>
<P>(18) Thence along the east section line, in a southerly direction, to a point where this section line and the 800-foot contour line intersect (Mt. Madonna Quadrangle);
</P>
<P>(19) Thence along the 800-foot contour line, beginning in a southeasterly direction, to a point where the 800-foot contour line and Highway 152 intersect (Watsonville East Quadrangle);
</P>
<P>(20) Thence along Highway 152, in a southwesterly direction, to a point where Highway 152 and the 400-foot contour line intersect (Watsonville East Quadrangle);
</P>
<P>(21) Thence along the 400-foot contour line, beginning in a northwesterly direction, to a point where the 400-foot contour line and the Felton Empire Road intersect (Felton Quadrangle);
</P>
<P>(22) Thence along Felton Empire Road, in an easterly direction, to a point where Felton Empire Road and Highway 9 intersect (Felton Quadrangle);
</P>
<P>(23) Thence along Highway 9, in a southerly direction, to a point where Highway 9 and Bull Creek intersect (Felton Quadrangle);
</P>
<P>(24) Thence along Bull Creek, beginning in a southwesterly direction, to a point where Bull Creek and the 400-foot contour line intersect (Felton Quadrangle); and
</P>
<P>(25) Thence along the 400-foot contour line, beginning in a southeasterly direction, back to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-98, 46 FR 59240, Dec. 4, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 9.32" NODE="27:1.0.1.1.7.3.45.12" TYPE="SECTION">
<HEAD>§ 9.32   Los Carneros.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Los Carneros”. “Carneros” may also be used as the name of the viticultural area described in this section. For purposes of part 4 of this chapter, “Los Carneros” and “Carneros” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The approved maps for the Carneros viticultural area are the following U.S.G.S. maps:
</P>
<P>(1) “Sonoma Quadrangle, California,” 7.5 minute series (topographic), 1951 (photorevised 1968).
</P>
<P>(2) “Napa Quadrangle, California—Napa Co.,” 7.5 minute series (topographic), 1951 (photorevised 1968 and 1973).
</P>
<P>(3) “Cuttings Wharf Quadrangle, California,” 7.5 minute series (topographic), 1949 (photorevised 1968; photoinspected 1973).
</P>
<P>(4) “Sears Point Quadrangle, California,” 7.5 minute series (topographic), 1951 (photorevised 1968).
</P>
<P>(5) “Petaluma River Quadrangle,California—Sonoma Co.,” 7.5 minute series (topographic), 1954 (photorevised 1980).
</P>
<P>(6) “Glen Ellen Quadrangle, California—Sonoma Co.,” 7.5 minute series (topographic), 1954 (photorevised 1980).
</P>
<P>(c) <I>Boundaries.</I> The boundaries of the Carneros viticultural area are located in Napa and Sonoma Counties, California, and are as follows:
</P>
<P>(1) The point of beginning is the intersection of highway 12/121 and the Napa County-Sonoma County line, near the extreme southeast corner of the Sonoma Quadrangle map.
</P>
<P>(2) From there, following the Napa County-Sonoma County line generally northwestward for about 1.6 miles to the summit of an unnamed hill with a marked elevation of 685 ft.
</P>
<P>(3) From there in a straight line northeastward to the summit of Milliken Peak (743 ft.), located on the Napa Quadrangle map.
</P>
<P>(4) From there due eastward to the 400 ft. contour line.
</P>
<P>(5) Then following that contour line generally northwestward to Carneros Creek (on the Sonoma Quadrangle map).
</P>
<P>(6) Then following the same contour line generally southeastward to the range line R. 5 W/R. 4 W (on the Napa Quadrangle map).
</P>
<P>(7) Then continuing to follow the same contour line generally northward for about one mile, till reaching a point due west of the summit of an unnamed hill having a marked elevation of 446 ft. (That hill is about .8 mile southwest of Browns Valley School.)
</P>
<P>(8) From that point due eastward to the summit of that hill.
</P>
<P>(9) From there in a straight line northeastward across Buhman Avenue to the summit of an unnamed hill having a marked elevation of 343 ft.
</P>
<P>(10) From there due eastward to the Napa-Entre Napa land grant boundary.
</P>
<P>(11) Then northeastward along that land grant boundary to Browns Valley Road.
</P>
<P>(12) Then eastward along Browns Valley Road to Highway 29.
</P>
<P>(13) Then southward along Highway 29 to Imola Avenue.
</P>
<P>(14) Then eastward along Imola Avenue to the Napa River.
</P>
<P>(15) Then generally southward along the west bank of the Napa River to the Southern Pacific Railroad tracks.
</P>
<P>(16) Then generally westward and northwestward along the Southern Pacific Railroad tracks to their intersection with the township line T. 5 N./T. 4 N. (on the Sears Point Quadrangle map).
</P>
<P>(17) From there due westward to the Northwestern Pacific Railroad tracks.
</P>
<P>(18) Then generally southward along the Northwestern Pacific Railroad tracks to Highway 37.
</P>
<P>(19) The westward along Highway 37 to its intersection with Highway 121.
</P>
<P>(20) From there northwestward in a straight line to the summit of Wildcat Mountain (682 ft.).
</P>
<P>(21) From there northwestward, following a straight line toward the summit of Sonoma Mountain (2295 ft.—on the Glenn Ellen Quadrangle map) till reaching a point due west of the intersection of Lewis Creek with the 400-ft. contour line. (That point is about 4
<FR>1/3</FR> miles southeast of Sonoma Mountain.)
</P>
<P>(22) From that point due eastward to Lewis Creek.
</P>
<P>(23) Then generally southeastward along Lewis Creek to Felder Creek.
</P>
<P>(24) Then generally eastward along Felder Creek to Leveroni Road (on the Sonoma Quadrangle map).
</P>
<P>(25) Then generally eastward along Leveroni Road to Napa Road.
</P>
<P>(26) Then eastward and southeastward along Napa Road to Highway 12/121.
</P>
<P>(27) Then eastward along Highway 12/121 to the starting point.
</P>
<CITA TYPE="N">[T.D. ATF-142, 48 FR 37368, Aug. 18, 1983, as amended by T.D. ATF-249, 52 FR 5956, Feb. 27, 1987; T.D. TTB-55, 71 FR 66455, Nov. 15, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.33" NODE="27:1.0.1.1.7.3.45.13" TYPE="SECTION">
<HEAD>§ 9.33   Fennville.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Fennville.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Fennville Viticultural Area are three U.S.G.S. maps. They are entitled:
</P>
<P>(1) “Fennville Quadrangle, Michigan-Allegan County,” 15 minute series;
</P>
<P>(2) “Bangor Quadrangle, Michigan,” 15 minute series; and
</P>
<P>(3) “South Haven Quadrangle, Michigan,” 15 minute series.
</P>
<P>(c) <I>Boundaries.</I> The Fennville viticultural area is primarily located in the southwestern portion of Allegan County, Michigan, with a small finger extending into the northwest corner of Van Buren County, Michigan.
</P>
<P>(1) The western boundary is the eastern shore of Lake Michigan, extending from the Black River, at the City of South Haven, north to the Kalamazoo River.
</P>
<P>(2) The northern boundary is the Kalamazoo River, extending easterly from Lake Michigan to 86°5′ west longitude.
</P>
<P>(3) The eastern boundary is the 86°5′ west longitude meridian, extending from the Kalamazoo River to the intersection of the Middle Fork of the Black River.
</P>
<P>(4) The southern boundary is the Middle Fork of the Black River extending westerly from 86°5′ west longitude until it joins the Black River, continuing west along the Black River to the eastern shore of Lake Michigan.
</P>
<CITA TYPE="N">[T.D. ATF-91, 46 FR 46320, Sept. 18, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 9.34" NODE="27:1.0.1.1.7.3.45.14" TYPE="SECTION">
<HEAD>§ 9.34   Finger Lakes.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Finger Lakes.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Finger Lakes viticultural area are two U.S.G.S. maps scaled 1:250,000. They are entitled:
</P>
<P>(1) “Rochester,” Location diagram NK 18-1, 1961; and
</P>
<P>(2) “Elmira,” Location diagram NK 18-4, 1968.
</P>
<P>(c) <I>Boundaries.</I> The boundaries of the Finger Lakes viticultural area, based on landmarks and points of reference found on the approved maps, are as follows:
</P>
<P>(1) Starting at the most northwest point, the intersection of the Erie Canal and the north/south Conrail line south of the City of Rochester.
</P>
<P>(2) Then east along the course of the Erie Canal approximately 56 miles (45 miles due east) to the intersection of New York State Highway 89 (NY-89).
</P>
<P>(3) Then south on NY-89 four miles to the intersection of highway US-20.
</P>
<P>(4) Then east on US-20 for 36 miles to the intersection of interstate 81 (I-81).
</P>
<P>(5) Then south along I-81 for ten miles to NY-281.
</P>
<P>(6) Then south along NY-281 for 20 miles around the western city limits of Cortland where NY-281 becomes NY-13.
</P>
<P>(7) Then continuing southwest on NY-13 (through the cities of Dryden and Ithaca) approximately 36 miles to the intersection of NY-224.
</P>
<P>(8) Then due west one mile to the southern boundary of Schuyler County.
</P>
<P>(9) Then continuing west along this county line 20 miles to the community of Meads Creek.
</P>
<P>(10) Then north along the Schuyler-Steuben county line four miles to the major east-west power line.
</P>
<P>(11) Then west along the power line for eight miles to the intersection of NY-17 (four miles southeast of the community of Bath).
</P>
<P>(12) Then northwest on NY-17 approximately nine miles to the intersection of I-390.
</P>
<P>(13) Then northwest on I-390 for 21 miles to the intersection of NY-36.
</P>
<P>(14) Then north for two miles through the community of Dansville to NY-63.
</P>
<P>(15) Then northwest on NY-63 approximately 18 miles to the intersection of NY-39, just south of Genesco.
</P>
<P>(16) Then north on NY-39 nine miles to the intersection where the west and north/south Conrail lines meet at the community of Avon.
</P>
<P>(17) Then north along the north/south Conrail line for 15 miles to the beginning point at the intersection of the Erie Canal.
</P>
<CITA TYPE="N">[T.D. ATF-113, 47 FR 38518, Sept. 1, 1982, as amended by T.D. ATF-249, 52 FR 5956, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.35" NODE="27:1.0.1.1.7.3.45.15" TYPE="SECTION">
<HEAD>§ 9.35   Edna Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Edna Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Edna Valley viticultural area for four U.S.G.S. maps, They are titled:
</P>
<P>(1) “San Luis Obispo Quadrangle, California—San Luis Obispo Co.,” 7.5 minute series;
</P>
<P>(2) “Lopez Mtn, Quadrangle, California—San Luis Obispo Co.,” 7.5 minute series;
</P>
<P>(3) “Pismo Beach Quadrangle, California—San Luis Obispo Co.,” 7.5 minute series; and
</P>
<P>(4) “Arroyo Grande NE Quadrangle, California—San Luis Obispo Co.”, 7.5 minute series.
</P>
<P>(c) <I>Boundaries.</I> The Edna Valley viticultural area is located in San Luis Obispo County, California. The beginning point is Cuesta Canyon County Park, located on U.S.G.S. map “San Luis Obispo Quadrangle” at the north end of Section 25, Township 30 South, Range 12 East.
</P>
<P>(1) From the beginning point, the boundary runs southwesterly along San Luis Obispo Creek to a point .7 mile southerly of the confluence with Davenport Creek;
</P>
<P>(2) Thence due east to the intersection with the 400-foot contour line of the northeastern flank of the San Luis Range;
</P>
<P>(3) Thence in a generally easterly and then a southeasterly direction along this 400-foot contour line of the northeastern flank of the San Luis Range, which forms the southwestern rim of Edna Valley, to the township line identified as “T31S/T32S” on the U.S.G.S. map;
</P>
<P>(4) Thence east along township line “T31S/T32S”, across Price Canyon to Tiber;
</P>
<P>(5) Thence in a generally easterly direction along the 400-foot contour line of Tiber Canyon and the southern rim of Canada Verde, crossing Corbit Canyon Road and continuing along the 400-foot contour line to longitude line 120°32′30″;
</P>
<P>(6) Thence north along longitude line 120°32′30″ to the 600-foot contour line of the southwestern flank of the Santa Lucia Mountain Range;
</P>
<P>(7) Thence in a generally northwesterly direction along the 600-foot contour line of the southwestern flank of the Santa Lucia Range to Cuesta Canyon County Park, the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-101, 47 FR 20299, May 12, 1982, as amended by T.D. ATF-249, 52 FR 5956, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.36" NODE="27:1.0.1.1.7.3.45.16" TYPE="SECTION">
<HEAD>§ 9.36   McDowell Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “McDowell Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate map for determining the boundaries of the McDowell Valley viticultural area is a USGS map. That map is titled: “Hopland Quadrangle California” 7.5 minute series.
</P>
<P>(c) <I>Boundaries.</I> (1) Beginning at the northwest corner of Section 22 T13N R11W.
</P>
<P>(2) Then southerly along the section line between Sections 22 and 21 approximately 1700 feet to the intersection of the section line and the ridge line (highest elevation line) between the McDowell Creek Valley and the Dooley Creek Valley.
</P>
<P>(3) Then southeasterly along the ridge line (highest elevation line) to the intersection of the ridge line and the 1000-foot contour line in Section 27.
</P>
<P>(4) Then southeasterly and on the McDowell Creek Valley side of the ridge along the 1000-foot contour line to the intersection of the 1000-foot contour line and the south section line of Section 27.
</P>
<P>(5) Then easterly along the section line between Sections 27 and 34 and between Sections 26 and 35 to the intersection of the section line and the centerline of Younce Road.
</P>
<P>(6) Then southeasterly and then northeasterly along Younce Road to the intersection of Younce Road and the section line between Sections 26 and 35.
</P>
<P>(7) Then due north from the section line, across Coleman Creek approximately 1250 feet, to the 1000-foot contour line.
</P>
<P>(8) Then westerly and then meandering generally to the north and east along the 1000-foot contour line to the intersection of the 1000-foot contour line and section line between Sections 26 and 25.
</P>
<P>(9) Then continuing along the 1000-foot contour line easterly and then northwesterly in Section 25 to the intersection of the 1000-foot contour line and the section line between Sections 26 and 25.
</P>
<P>(10) Then northerly along the 1000-foot contour line to the intersection of the 1000-foot contour line and the section line between Sections 23 and 24.
</P>
<P>(11) Then northerly along the section line across State Highway 175 approximately 1000 feet to the intersection of the section line and the 1000-foot contour line.
</P>
<P>(12) Then generally to the northwest along the 1000-foot contour line through Sections 23 and 14 and into Section 15 to the intersection of the 1000-foot contour line and the flowline of an unnamed creek near the northeast corner of Section 15.
</P>
<P>(13) Then southwesterly and down stream along the flowline of said unnamed creek and across Section 15, to the stream's intersection with the section line between Sections 15 and 16.
</P>
<P>(14) Then southerly along the section approximately 100 feet to the northwest corner of Section 22 and to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-97, 46 FR 59243, Dec. 4, 1981, as amended by T.D. ATF-249, 52 FR 5956, Feb. 27, 1987; T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.37" NODE="27:1.0.1.1.7.3.45.17" TYPE="SECTION">
<HEAD>§ 9.37   California Shenandoah Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Shenandoah Valley” qualified by the word “California” in direct conjunction with the name “Shenandoah Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the California Shenandoah Valley viticultural area are two 1962 U.S.G.S. maps. The maps are titled: “Fiddletown Quadrangle California” 7.5 minute series and “Amador City Quadrangle California-Amador Co.” 7.5 minute series.
</P>
<P>(c) <I>Boundaries.</I> The Shenandoah Valley viticultural Area is located in portions of Amador and El Dorado Counties of California. The boundaries are as follows:
</P>
<P>(1) Beginning at the point where the Consumnes River meets Big Indian Creek.
</P>
<P>(2) Then south, following Big Indian Creek, until Big Indian Creek meets the boundary between Sections 1 and 2 of Township 7 North Range 10 East.
</P>
<P>(3) Then following this boundary south until it meets the Oleta (Fiddletown) Road.
</P>
<P>(4) Then following the Oleta Road east until it meets the boundary between Sections 6 and 5 of Township 7 North Range 11 East.
</P>
<P>(5) Then following that boundary north into Township 8 North Range 11 East, and continues north on the boundary between Sections 31 and 32 until this boundary meets Big Indian Creek.
</P>
<P>(6) Then following Big Indian Creek in a northeasterly direction until Big Indian Creek meets the boundary between Sections 28 and 27 of Township 8 North Range 11 East.
</P>
<P>(7) Then following this boundary north until it reaches the southeast corner of Section 21 of Township 8 North Range 11 East.
</P>
<P>(8) The boundary then proceeds east, then north, then west along the boundary of the western half of Section 22 of Township 8 North Range 11 East to the intersection of Sections 16, 15, 21, and 22.
</P>
<P>(9) Then proceeding north along the boundary line between Sections 16 and 15 of Township 8 North Range 11 East and continues north along the boundary of Sections 9 and 10 of Township 8 North Range 11 East to the intersection of Sections 9, 10, 3, and 4 of Township 8 North Range 11 East.
</P>
<P>(10) Then proceeding west along the boundary of Sections 9 and 4.
</P>
<P>(11) Then continuing west along the boundary of Sections 5 and 8 of Township 8 North Range 11 East to the Consumnes River.
</P>
<P>(12) Then the boundary proceeds west along the Consumnes River to the point of the beginning.
</P>
<CITA TYPE="N">[T.D. ATF-121, 47 FR 57696, Dec. 28, 1982, as amended by T.D. ATF-249, 52 FR 5957, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.38" NODE="27:1.0.1.1.7.3.45.18" TYPE="SECTION">
<HEAD>§ 9.38   Cienega Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Cienega Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Cienega Valley viticultural area are four U.S.G.S. maps. They are titled:
</P>
<P>(1) “Hollister Quadrangle, California,” 7.5 minute series (1971);
</P>
<P>(2) “Tres Pinos Quadrangle, California,” 7.5 minute series (1971);
</P>
<P>(3) “Mt. Harlan Quadrangle, California,” 7.5 minute series (1968); and
</P>
<P>(4) “Paicines Quadrangle, California,” 7.5 minute series (1968).
</P>
<P>(c) <I>Boundaries.</I> The Cienega Valley viticultural area is located in San Benito County, California. The beginning point is the Gaging Station, located on U.S.G.S. map “Paicines Quadrangle” in the southeast portion of Section 21, Township 14 South, Range 6 East.
</P>
<P>(1) From the beginning point, the boundary follows the Pescadero Creek Bed in a southeasterly direction about 100 feet to the unimproved road and continues southwesterly on the unimproved road .5 mile to where it intersects with the south border of Township 14 South, Range 6 East, Section 21;
</P>
<P>(2) Thence in a straight line to the southwest portion of Section 28, Township 14 South, Range 6 East, where the 1400-foot contour line intersects the south border of Section 28;
</P>
<P>(3) Thence following the 1400-foot contour line through the following sections; Sections 28, 29, and 30, Township 14 South, Range 6 East; Section 25, Township 14 South, Range 5 East; Sections 30, 19, 20, and returning to 19, Township 14 South, Range 6 East, to a point where the 1400-foot contour line intersects with the section line between Sections 19 and 18, Township 14 South, Range 6 East;
</P>
<P>(4) Thence in a straight line due north to the intersection with the 1200-foot contour line in Section 18, Township 14 South, Range 6 East;
</P>
<P>(5) Thence following the 1200-foot contour line in a generally northwesterly direction to where it intersects with the north boundary of Township 14 South, Range 5 East, Section 10; then following this boundary line in a northwesterly direction to where this boundary intersects with the 1600-foot contour line; thence following the 1600-foot contour line in a generally northerly direction to where it intersects with the unimproved road;
</P>
<P>(6) Thence looping southward along the unimproved road and continuing on in an easterly direction past the designated “Spring” and then in a northeasterly direction parallel with the Gulch to the Vineyard School on Cienega Road; thence in a southeasterly direction on Cienega Road .4 mile to where the unimproved road intersects; thence traveling north and following the unimproved road in a northwesterly direction about 5. mile; then looping in an easterly direction .75 mile to the intersection of the unimproved road and branching in a southeasterly direction;
</P>
<P>(7) Thence crossing Township 13 South to Township 14 South and following the unimproved road to the intersection of the western border of Township 14 South, Range 6 East, Section 6; thence south to the northwest corner of Section 7;
</P>
<P>(8) Thence continuing in a straight diagonal line to the southeast corner of Township 14 South, Range 6 East, Section 7; thence from the southeast corner of Section 7 .25 mile west to where it intersects with an unimproved road;
</P>
<P>(9) Thence following this unimproved road in a southeasterly direction to the Gaging Station, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-109, 47 FR 36126, Aug. 19, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.39" NODE="27:1.0.1.1.7.3.45.19" TYPE="SECTION">
<HEAD>§ 9.39   Paicines.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Paicines.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Paicines viticultural area are the three U.S.G.S. maps. They are titled:
</P>
<P>(1) “Tres Pinos Quadrangle, California,” 7.5 minute series (1971);
</P>
<P>(2) “Paicines Quadrangle, California,” 7.5 minute series (1968); and
</P>
<P>(3) “Cherry Peak Quadrangle, California,” 7.5 minute series (1968).
</P>
<P>(c) <I>Boundaries.</I> The Paicines viticultural area is located in San Benito County, California. The beginning point is the northwestern-most point of the proposed area at Township 14 South, Range 6 East, Section 3, northwest corner, located on U.S.G.S. map “Tres Pinos Quadrangle.”
</P>
<P>(1) From the beginning point the boundary runs east along the north border of Sections 3, 2, and 1, Township 14 South, Range 6 East;
</P>
<P>(2) Thence south along the east border of Section 1, Township 14 South, Range 6 East; thence east along the north border of Section 7, Township 14 South, Range 7 East; thence south along the east border of Section 7, Township 14 South, Range 7 East;
</P>
<P>(3) Thence continuing south along the east border of Section 18, Township 14 South, Range 7 East; thence east along the north border of Section 20, Township 14 South, Range 7 East; thence south along the east border of Sections 20, 29 and 32, Township 14 South, Range 7 East;
</P>
<P>(4) Thence continuing south along the east border of Section 5, Township 15 South, Range 7 East; thence south along the east border of Sections 8 and 17, Township 15 South, Range 7 East to latitude line 36°37′30″;
</P>
<P>(5) Thence west along latitude line 36°37′30″ to the west border of Section 18, Township 15 South, Range 7 East;
</P>
<P>(6) Thence north along the west border of Sections 18 and 7, Township 15 South, Range 7 East; thence west along the south border of Section 1, Township 15 South, Range 6 East; thence north along the west border of Section 1, Township 15 South, Range 6 East to the 800-foot elevation contour line and then in a generally northwest direction along this 800-foot contour line to where it intersects with the south border of Section 35, Township 14 South, Range 6 East;
</P>
<P>(7) Thence west along the south border of Section 35, Township 14 South, Range 6 East; thence north along the east border of Section 34, Township 14 South, Range 6 East; thence in a northwest direction along the northeast border of Section 34, Township 14 South, Range 6 East; thence continuing in a northwest direction along the east border of Section 27, Township 14 South, Range 6 East;
</P>
<P>(8) Thence continuing in a northwest direction to the northeast border of Section 22, Township 14 South, Range 6 East to where an unnamed, unimproved dirt road intersects the northeast border; thence east and then northwest along the unimproved dirt road to the intersection with the San Benito River; thence following the San Benito River and meandering north to the intersection with the east border of Section 4, Township 14 South, Range 6 East;
</P>
<P>(9) Thence continuing north along the east border of Section 4, Township 14 South, Range 6 East to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-108, 47 FR 35481, Aug. 16, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.40" NODE="27:1.0.1.1.7.3.45.20" TYPE="SECTION">
<HEAD>§ 9.40   Leelanau Peninsula.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Leelanau Peninsula.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Leelanau Peninsula viticultural area are four U.S.G.S. maps. They are entitled:
</P>
<P>(1) “Empire Quadrangle, Michigan,” 15 minute series;
</P>
<P>(2) “Maple City Quadrangle, Michigan,” 15 minute series;
</P>
<P>(3) “Traverse City Quadrangle, Michigan,” 15 minute series; and
</P>
<P>(4) “Northport Quadrangle, Michigan,” 15 minute series.
</P>
<P>(c) <I>Boundaries.</I> The Leelanau Peninsula viticultural area encompasses all of Leelanau County, Michigan, excluding the offshore islands.
</P>
<CITA TYPE="N">[T.D. ATF-99, 47 FR 13329, Mar. 30, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.41" NODE="27:1.0.1.1.7.3.45.21" TYPE="SECTION">
<HEAD>§ 9.41   Lancaster Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lancaster Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Lancaster Valley viticultural area are two U.S.G.S. maps. They are entitled:
</P>
<P>(1) “Lancaster County, Pennsylvania”, scaled 1:50,000, edition of 1977; and
</P>
<P>(2) “Honey Brook Quadrangle”, 7.5 minute series, edition of 1955, photorevised 1969 and 1974.
</P>
<P>(c) <I>Boundaries.</I> The Lancaster Valley viticultural area is located in Lancaster County and Chester County, Pennsylvania. The beginning point is where Pennsylvania Highway 23 crosses the Lancaster and Berks County boundary.
</P>
<P>(1) Then in a southeasterly direction following the Lancaster County boundary for approximately 0.9 mile to the 500 foot contour line immediately south of the Conestoga River.
</P>
<P>(2) Then following the 500 foot contour in a southwesterly direction to the Caernarvon-East Earl Township boundary.
</P>
<P>(3) Then south approximately 0.1 mile following the Caernarvon-East Earl Township boundary to U.S. Highway 322.
</P>
<P>(4) Then west following U.S. Highway 322 for approximately 1.7 miles to the electric transmission line between Fetterville and Cedar Grove School.
</P>
<P>(5) Then southwest in a straight line for approximately 5.2 miles to the intersection of Earl, Upper Leacock, and Leacock Townships at the Mill Creek.
</P>
<P>(6) Then southeast following the boundary between Earl Township and Leacock Township to the point where Earl, East Earl, Salisbury, and Leacock Townships intersect.
</P>
<P>(7) Then east in a straight line for approximately 4.8 miles to the point where the 500 foot contour line intersects Pequea Creek northwest of Mt. Pleasant School.
</P>
<P>(8) Then following the 500 foot contour line past Cole Hill through the town of Gap and along Mine Ridge to the 76°07′30″ west longitude line in Paradise Township.
</P>
<P>(9) Then southwest in a straight line for approximately 7.7 miles to the Boehm Church south of Willow Street.
</P>
<P>(10) The northwest in a straight line for approximately 1.2 miles to the township school in West Willow.
</P>
<P>(11) Then west in a straight line for 4.2 miles to the confluence of Stehman Run and the Conestoga River.
</P>
<P>(12) Then northwest in a straight line for approximately 0.5 mile to the confluence of Indian Run and Little Conestoga Creek.
</P>
<P>(13) Then west following Indian Run for approximately 3.6 miles to the source of the more northerly branch.
</P>
<P>(14) Then northwest in a straight line for approximately 0.25 mile to the source of Wisslers Run.
</P>
<P>(15) Then west following Wisslers Run downstream for approximately 0.7 mile to the 300 foot contour line.
</P>
<P>(16) Then north following the 300 foot contour line to its intersection with Pennsylvania Highway 999 in Washington Boro.
</P>
<P>(17) Then east following Pennsylvania Highway 999 to the school in Central Manor.
</P>
<P>(18) Then northeast in a straight line for approximately 2.7 miles to the point where the West Branch of the Little Conestoga Creek intersects with Pennsylvania Highway 462.
</P>
<P>(19) Then west following Pennsylvania Highway 462 for approximately 1.5 miles to Strickler Run.
</P>
<P>(20) Then following Strickler Run southwest to the Columbia municipal boundary.
</P>
<P>(21) Then north following the eastern boundary of Columbia to Shawnee Run.
</P>
<P>(22) Then northeast in a straight line for approximately 5.8 miles to the intersection of Pennsylvania Highway 23 and Running Pump Road [unnamed on map] at elevation check point 436 near Centerville.
</P>
<P>(23) Then east following Pennsylvania Highway 23 for approximately 0.5 mile to the 400 foot contour line.
</P>
<P>(24) Then following the 400 foot contour line north around Chestnut Ridge, past Millers Run and continuing until the 400 foot contour line intersects an unnamed stream.
</P>
<P>(25) Then due south in a straight line for approximately 0.8 mile to Pennsylvania Highway 23.
</P>
<P>(26) Then west following Pennsylvania Highway 23 to the intersection with Pennsylvania Highway 441 at Marietta.
</P>
<P>(27) Then west following Pennsylvania Highway 441 to Pennsylvania Highway 241 near Bainbridge.
</P>
<P>(28) Then northwest in a straight line for approximately 5.5 miles to the point where the Consolidated Railroad Corporation crosses the West Donegal-Mount Joy Township boundary in Rheems.
</P>
<P>(29) Then east in a straight line for approximately 3.3 miles to the Mt. Pleasant Church.
</P>
<P>(30) Then east in a straight line for approximately 3.8 miles to the Erismans Church.
</P>
<P>(31) Then east in a straight line for approximately 3.3 miles to the point where the 400 foot contour line crosses Pennsylvania Highway 72 south of Valley View.
</P>
<P>(32) Then following the 400 foot contour line east to Pennsylvania Highway 501.
</P>
<P>(33) Then east in a straight line for approximately 2.9 miles to the Union Meetinghouse.
</P>
<P>(34) Then southeast in a straight line for approximately 1.0 miles to the point where Pennsylvania Highway 272 (indicated as U.S. Highway 222 on the map) crosses Cocalico Creek (which forms the boundary between West Earl and Warwick Townships).
</P>
<P>(35) Then northwest following the West Earl Township boundary to its intersection with U.S. Highway 322 southeast of Ephrata.
</P>
<P>(36) Then east in a straight line for approximately 3.4 miles to the Lincoln Independence School.
</P>
<P>(37) Then southeast in a straight line for approximately 1.7 miles to the West Terre Hill School.
</P>
<P>(38) Then east in a straight line for approximately 8.5 miles to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-102, 47 FR 20301, May 12, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.42" NODE="27:1.0.1.1.7.3.45.22" TYPE="SECTION">
<HEAD>§ 9.42   Cole Ranch.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Cole Ranch.”
</P>
<P>(b) <I>Approved map.</I> The approved map for the Cole Ranch viticultural area is the U.S.G.S. map entitled “Elledge Peak Quadrangle California—Mendocino County,” 7.5 minute series (topographic), 1958.
</P>
<P>(c) <I>Boundaries.</I> The boundaries of the Cole Ranch viticultural area are located in Mendocino County California and are as follows:
</P>
<P>(1) The point of beginning is the intersection of the 1480-foot-elevation contour line with the Boonville-Ukiah Cutoff Road near the southeast corner of section 13;
</P>
<P>(2) The Boundary follows the 1480-foot-elevation contour line southerly, then easterly, within section 24, then easterly and northwesterly within section 19 to its first intersection with this section line. The boundary proceeds due west on the north section line of section 19 until it intersects with the Boonville-Ukiah Cutoff Road;
</P>
<P>(3) The boundary follows this road northwesterly to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-130, 48 FR 16248, Apr. 15, 1983, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.43" NODE="27:1.0.1.1.7.3.45.23" TYPE="SECTION">
<HEAD>§ 9.43   Rocky Knob.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Rocky Knob.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Rocky Knob viticultural area are two 1968 U.S.G.S. maps. The maps are entitled: “Willis Quadrangle Virginia” 7.5 minute series and “Woolwine Quadrangle Virginia” 7.5 minute series.
</P>
<P>(c) <I>Boundaries.</I> The Rocky Knob viticultural area is located in Floyd and Patrick Counties in southern Virginia. The boundaries are as follows:
</P>
<P>(1) The beginning point is the intersection of Virginia State Route Nos. 776 and 799 at Connors Grove.
</P>
<P>(2) Then follow State Route No. 799 south and east to the Blue Ridge Parkway.
</P>
<P>(3) Then south on the parkway to its first intersection with State Route No. 758.
</P>
<P>(4) Then follow State Route No. 758 east to the intersection of State Route No. 726 at the southern boundary of the Rocky Knob Recreation Area.
</P>
<P>(5) Then follow the boundary of the Rocky Knob Recreation Area south then in a northeastern direction to where the boundary first intersects State Route No. 8.
</P>
<P>(6) Then from that point at State Route No. 8, proceed northeast in a straight line to State Route No. 719 and Widgeon Creek at a point about 0.7 of a mile west of the intersection of State Route Nos. 719 and 710.
</P>
<P>(7) Then proceed northwest in a straight line to the intersection with State Route No. 710 and the Blue Ridge Parkway.
</P>
<P>(8) Then follow the Parkway southwest to the intersection with State Route No. 726.
</P>
<P>(9) Then turn right on State Route No. 726 and proceed 0.6 of a mile to a roadway at the 3308 elevation point on the map.
</P>
<P>(10) Then from that point, proceed west in a straight line back to the starting point at Connors Grove.
</P>
<CITA TYPE="N">[T.D. ATF-124, 48 FR 1293, Jan. 12, 1983, as amended by T.D. ATF-249, 52 FR 5957, Feb. 27, 1987; T.D. TTB-91, 76 FR 5477, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 9.44" NODE="27:1.0.1.1.7.3.45.24" TYPE="SECTION">
<HEAD>§ 9.44   Solano County Green Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Green Valley” qualified by the words “Solano County” in direct conjunction with the name “Green Valley.” On a label the words “Solano County” may be reduced in type size to the minimum allowed in 27 CFR 4.38(b).
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Green Valley viticultural area are two U.S.G.S. maps. They are titled:
</P>
<P>(1) “Mt. George Quadrangle, California”, 7.5 minute series (1968); and
</P>
<P>(2) “Cordelia Quadrangle, California”, 7.5 minute series (1968).
</P>
<P>(c) <I>Boundaries.</I> The Green Valley viticultural area is located in Solano County, California. The beginning point is the intersection of the township line identified as T6N/T5N with the westernmost point of the Solano County/Napa County line on the north border of Section 4, located on U.S.G.S. map “Mt. George Quadrangle.”
</P>
<P>(1) From the beginning point, the boundary runs in a southerly direction along the Napa/Solano County border to State Road 12;
</P>
<P>(2) Thence east along State Road 12 to where it intersects with Interstate 80;
</P>
<P>(3) Thence southwest on Interstate 80 to where it intersects with the Southern Pacific Railroad track;
</P>
<P>(4) Thence in an easterly direction along the Southern Pacific Railroad track to where it intersects with range line “R3W/R2W”;
</P>
<P>(5) Thence due north on range line “R3W/R2W” to where it intersects with the Solano County/Napa County line;
</P>
<P>(6) Thence due west along the Solano County/Napa County line to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-122, 47 FR 37922, Dec. 29, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.45" NODE="27:1.0.1.1.7.3.45.25" TYPE="SECTION">
<HEAD>§ 9.45   Suisun Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Suisun Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Suisun Valley viticultural area are four U.S.G.S. maps. They are titled:
</P>
<P>(1) “Mt. George Quadrangle, California”, 7.5 minute series (1968);
</P>
<P>(2) “Fairfield North Quadrangle, California”, 7.5 minute series (1973);
</P>
<P>(3) “Fairfield South Quadrangle, California”, 7.5 minute series (1968); and
</P>
<P>(4) “Cordelia Quadrangle, California”, 7.5 minute series (1968).
</P>
<P>(c) <I>Boundaries.</I> The Suisun Valley viticultural area is located in Solano County, California. The beginning point is the intersection of the Southern Pacific Railroad track with range line “R3W/R2W” in the town of Cordelia, located on U.S.G.S. map “Cordelia Quadrangle.”
</P>
<P>(1) From the beginning point, the boundary runs northeast in a straight line to the intersection of Ledgewood Creek with township line “T5N/T4N”;
</P>
<P>(2) Thence in a straight line in a northeast direction to Bench Mark (BM) 19 located in the town of Fairfield; 
</P>
<P>(3) Thence in a straight line due north to Soda Springs Creek;
</P>
<P>(4) Thence in a straight line in a northwest direction to the extreme southeast corner of Napa County located just south of Section 34, Township 6 North, Range 2 West;
</P>
<P>(5) Thence due west along the Napa/Solano County border to where it intersects with range line “R3W/R2W”;
</P>
<P>(6) Thence due south along range line “R3W/R2W” to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-117, 47 FR 52997, Nov. 24, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.46" NODE="27:1.0.1.1.7.3.45.26" TYPE="SECTION">
<HEAD>§ 9.46   Livermore Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Livermore Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Livermore Valley viticultural area are 13 United States Geological Survey 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Clayton, CA (1953; Photorevised 1980; Minor Revision 1994);
</P>
<P>(2) Diablo, Calif. (1953; Photorevised 1980);
</P>
<P>(3) Tassajara, CA (1996);
</P>
<P>(4) Byron Hot Springs, Calif., (1953, Photorevised 1968);
</P>
<P>(5) Altamont, Calif., (1953, Photorevised 1981);
</P>
<P>(6) Midway, Calif., (1953, Photorevised 1980);
</P>
<P>(7) Cedar Mtn., CA, (1956, Photorevised 1971, Minor Revision 1994);
</P>
<P>(8) Mendenhall Springs, CA (1996);
</P>
<P>(9) La Costa Valley, CA (1996);
</P>
<P>(10) Niles, Calif., (1961, Photorevised 1980);
</P>
<P>(11) Dublin, Calif., (1961, Photorevised 1980);
</P>
<P>(12) Hayward, CA (1993); and
</P>
<P>(13) Las Trampas Ridge, CA (1995).
</P>
<P>(c) <I>Boundary.</I> The Livermore Valley viticultural area is located in the State of California in Contra Costa and Alameda Counties. The Livermore Valley viticultural area's boundary is defined as follows:
</P>
<P>(1) The beginning point is on the Clayton map at the peak of Mount Diablo (VABM 3849) where the Mount Diablo Base Line and Mount Diablo Meridian Line intersect, T1S, R1E;
</P>
<P>(2) From the beginning point proceed southeast in a straight line for approximately 14 miles, crossing the Diablo and Tassajara maps, and pass onto the Byron Hot Springs map to the summit of Brushy Peak (elevation 1,702 feet), T1S, R2E; then
</P>
<P>(3) Continue due south in a straight line approximately 400 feet to the northern boundary of section 13, T2S, R2E; then
</P>
<P>(4) Proceed due east along the section 13 and section 18 northern boundary lines to the northeast corner of section 18, T2S, R3E; then
</P>
<P>(5) Continue southeast in a straight line approximately 1.8 miles to BM 720 in section 21, T2S, R3E, on the Altamont map; then
</P>
<P>(6) Continue south-southeast in a straight line approximately 1 mile to an unnamed, 1,147-foot peak in section 28, T2S, R3E; then
</P>
<P>(7) Continue south-southwest in a straight line approximately 1.1 miles to the intersection of the eastern boundary of section 32, T2S, R3E, with Interstate 580; then
</P>
<P>(8) Continue southeast in a straight line approximately 2.7 miles to BM 1602 in Patterson Pass in section 10, T3S, R3E; then
</P>
<P>(9) Continue south-southeast in a straight line approximately 2.8 miles to BM 1600, adjacent to Tesla Road in section 26, T3S, R3E, on the Midway map; then
</P>
<P>(10) Continue south in a straight line approximately 4.2 miles, passing onto the Cedar Mtn. map, to BM 1878, 40 feet north of Mines Road, in section 14, T4S, R3E; then
</P>
<P>(11) Proceed west-southwest in a straight line approximately 4.2 miles, passing onto the Mendenhall Springs map, to the southeast corner of section 19, T4S, R3E; then
</P>
<P>(12) Continue west along the southern boundaries of section 19, T4S, R3E, and section 24, T4S, R2E, to the southwest corner of section 24; then
</P>
<P>(13) Proceed north along the western boundary of section 24, T4S, R2E, to the southeast corner of section 14, T4S, R2E; then
</P>
<P>(14) Continue west along the southern boundary of section 14, T4S, R2E, to its southwest corner and then proceed north along the western boundary of section 14 to its intersection with the Hetch Hetchy Aqueduct, T4S, R2E; then
</P>
<P>(15) Follow the Hetch Hetchy Aqueduct west-southwest approximately 4.2 miles to the Aqueduct's intersection with the R1E/R2E range line on the La Costa Valley map, T4S; then
</P>
<P>(16) Continue southwest in a straight line approximately 3.9 miles, crossing Apperson, Welsh, and Alameda Creeks, to BM 533 in section 10, T5S, R1E; then
</P>
<P>(17) Proceed due west-northwest in a straight line approximately 1.9 miles, passing onto the Niles map, to the line's intersection with the eastern boundary of section 5 and the Fremont Boundary Line, T5S, R1E; then
</P>
<P>(18) Continue northwest in a straight line approximately 1.1 miles to an unnamed, 1,291-foot peak in section 32, T4S, R1E; then
</P>
<P>(19) Continue northwest in a straight line approximately 1.1 miles to an unnamed, 1,058-foot peak in section 30, T4S, R1E; then
</P>
<P>(20) Continue northwest in a straight line approximately 3.8 miles, passing through BM 161 in section 11, T4S, R1W, until the line intersects Palomares Road, a medium duty road, in section 11; then
</P>
<P>(21) Follow Palomares Road in a northerly direction for approximately 0.7 miles to the road's intersection with the power transmission line shown in section 11, T4S, R1W; then
</P>
<P>(22) Proceed northwest along the power transmission line for approximately 6.4 miles, passing through the Dublin map near Walpert Ridge, onto the Hayward map to the point where the power transmission line turns nearly west, approximately 500 feet south of an unnamed, 891-foot, peak, T3S, R2W; then
</P>
<P>(23) Continue north-northwest in a straight line approximately 1.4 miles to an unnamed, 840-foot peak, T3S, R2W; then
</P>
<P>(24) Proceed north-northeast in a straight line approximately 3.4 miles, returning to the Dublin map, to the point where the Contra Costa County-Alameda County line turns to the northwest, about 0.4 mile west of Wiedemann Hill (elevation 1,854 feet), section 20, T2S, R1W; then
</P>
<P>(25) Proceed in a northwesterly direction along the meandering Contra Costa County-Alameda County line for approximately 6.0 miles, passing briefly onto the Hayward, Las Trampas Ridge, and Diablo maps, before returning to the Las Trampas Ridge map and continuing to the point where the Contra Costa County-Alameda County line turns to the west-northwest, section 35, T1S, R2W; then
</P>
<P>(26) Continue north-northwest in a straight line approximately 2.7 miles to the summit of Las Trampas Peak (elevation 1,827 feet) in section 22, T1S, R2W; then
</P>
<P>(27) Proceed east-northeast in a straight line approximately 8.8 miles, passing through the Diablo map, and return to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-112, 47 FR 38520, Sept. 1, 1982, as amended by T.D. TTB-47, 71 FR 34531, June 15, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.47" NODE="27:1.0.1.1.7.3.45.27" TYPE="SECTION">
<HEAD>§ 9.47   Hudson River Region.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Hudson River Region.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundaries of Hudson River Region viticultural area are four U.S.G.S. maps, as follows:
</P>
<P>(1) Albany (NK 18-6), scale of 1:250,000 series;
</P>
<P>(2) Hartford (NK 18-9), scale of 1:250,000 series;
</P>
<P>(3) Scranton (NK 18-8), scale of 1:250,000 series;
</P>
<P>(4) Binghamton (NK 18-5), scale of 1:250,000 series.
</P>
<P>(c) <I>Boundary.</I> The Hudson River Region viticultural area is located in New York State. The boundary is as follows:
</P>
<P>(1) The beginning point is the point where N.Y. Route 15 (Merritt Parkway) crosses the New York-Connecticut state line.
</P>
<P>(2) The boundary proceeds northerly along the New York-Connecticut state line and the New York-Massachusetts state line to the northeast corner of Columbia County, New York.
</P>
<P>(3) The boundary proceeds westerly along the Columbia County-Rensselaer County line to the Columbia County-Greene County line in the Hudson River.
</P>
<P>(4) The boundary proceeds southerly along the Columbia County-Greene County line in the Hudson River to the northeast corner of Ulster County.
</P>
<P>(5) The boundary proceeds westerly along the Ulster County-Greene County line to N.Y. Route 214.
</P>
<P>(6) The boundary proceeds southerly along the eastern side of N.Y. Route 214 to the junction with N.Y. Route 28 in Phoenicia.
</P>
<P>(7) The boundary proceeds southerly along the eastern side of N.Y. Route 28 to the junction with N.Y. Route 28A.
</P>
<P>(8) The boundary proceeds southerly along the eastern side of N.Y. Route 28A to the intersection with the secondary, hard surface, southbound road leading toward Samsonville.
</P>
<P>(9) The boundary proceeds southerly along the eastern side of this southbound road through Samsonville, Tabasco, Mombaccus, Fantinekill, and Pataukunk to the junction with U.S. Route 209.
</P>
<P>(10) The boundary proceeds southerly along the eastern side of U.S. Route 209 to the New York-Pennsylvania state line in the Delaware River.
</P>
<P>(11) The boundary proceeds easterly along the Delaware River to the New York-New Jersey state line.
</P>
<P>(12) The boundary proceeds easterly along the New York-New Jersey state line to N.Y. Route 17.
</P>
<P>(13) The boundary proceeds northerly along the western side of N.Y. Route 17 to the junction with Interstate Route 287.
</P>
<P>(14) The boundary proceeds easterly along the northern side of Interstate Route 287 to the junction with N.Y. Route 15.
</P>
<P>(15) The boundary proceeds easterly along the northern side of N.Y. Route 15 to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-105, 47 FR 24294, June 4, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.48" NODE="27:1.0.1.1.7.3.45.28" TYPE="SECTION">
<HEAD>§ 9.48   Monticello.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Monticello.”
</P>
<P>(b) <I>Approved maps.</I> Approved maps for the Monticello viticultural area are three 1971 U.S.G.S. maps titled:
</P>
<P>(1) Charlottesville Quadrangle, Virginia: 1:250,000 minute series;
</P>
<P>(2) Roanoke Quadrangle, Virginia: 1:250,000 minute series; and
</P>
<P>(3) Washington, DC: 1:250,000 minute series.
</P>
<P>(c) <I>Boundaries.</I> (1) From Norwood, Virginia, following the Tye River west and northwest until it intersects with the eastern boundary of the George Washington National Forest;
</P>
<P>(2) Following this boundary northeast to Virginia Rt. 664;
</P>
<P>(3) Then west following Rt. 664 to its intersection with the Nelson County line;
</P>
<P>(4) Then northeast along the Nelson County line to its intersection with the Albemarle County line at Jarman Gap;
</P>
<P>(5) From this point continuing northeast along the eastern boundary of the Shenandoah National Park to its intersection with the northern Albemarle County line;
</P>
<P>(6) Continuing northeast along the Greene County line to its intersection with Virginia Rt. 33;
</P>
<P>(7) Follow Virginia Rt. 33 east to the intersection of Virginia Rt. 230 at Stanardsville;
</P>
<P>(8) Follow Virginia Rt. 230 north to the Greene County line (the Conway River);
</P>
<P>(9) Following the Greene County line (Conway River which becomes the Rapidan River) southeast to its intersection with the Orange County line;
</P>
<P>(10) Following the Orange County line (Rapidan River) east and northeast to its confluence with the Mountain Run River;
</P>
<P>(11) Then following the Mountain Run River southwest to its intersection with Virginia Rt. 20;
</P>
<P>(12) Continuing southwest along Rt. 20 to the corporate limits of the town of Orange;
</P>
<P>(13) Following southwest the corporate limit line to its intersection with U.S. Rt. 15;
</P>
<P>(14) Continuing southwest on Rt. 15 to its intersection with Virginia Rt. 231 in the town of Gordonsville;
</P>
<P>(15) Then southwest along Rt. 231 to its intersection with the Albemarle County line.
</P>
<P>(16) Then continuing southwest along the county line to its intersection with the Rivanna River;
</P>
<P>(17) Then southeast along the Rivanna River to its confluence with the James River, near the Fluvanna-Goochland County line;
</P>
<P>(18) Then southwest, then northwest along the James River to its intersection with the Albemarle County line;
</P>
<P>(19) Then following the James River to its confluence with the Tye River at Norwood, Virginia, the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-164, 49 FR 2758, Jan. 23, 1984, as amended by T.D. ATF-249, 52 FR 5957, Feb. 27, 1987; T.D. ATF-255, 52 FR 23652, June 24, 1987; T.D. TTB-154, 83 FR 64274, Dec. 14, 2018]


</CITA>
</DIV8>


<DIV8 N="§ 9.49" NODE="27:1.0.1.1.7.3.45.29" TYPE="SECTION">
<HEAD>§ 9.49   Central Delaware Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Central Delaware Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Central Delaware Valley viticultural area are nine U.S.G.S. maps in the 7.5 minute series (topographic). They are titled:
</P>
<P>(1) Bloomsbury Quadrangle, New Jersey, 1955 (photorevised 1970).
</P>
<P>(2) Riegelsville Quadrangle, Pennsylvania-New Jersey, 1956 (photorevised 1968 and 1973).
</P>
<P>(3) Frenchtown Quadrangle, Pennsylvania-New Jersey, 1955 (photorevised 1970).
</P>
<P>(4) Lumberville Quadrangle, Pennsylvania-New Jersey, 1955 (photorevised 1968 and 1973).
</P>
<P>(5) Stockton Quadrangle, New Jersey-Pennsylvania, 1954 (photorevised 1970).
</P>
<P>(6) Hopewell Quadrangle, New Jersey, 1954 (photorevised 1970).
</P>
<P>(7) Buckingham Quadrangle, Pennsylvania—Bucks Co., 1953 (photorevised 1968 and 1973).
</P>
<P>(8) Lambertville Quadrangle, Pennsylvania-New Jersey, 1953 (photorevised 1968 and 1973).
</P>
<P>(9) Pennington Quadrangle, New Jersey-Pennsylvania 1954 (photorevised 1970).
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The Central Delaware Valley viticultural area is located in Pennsylvania and New Jersey. The starting point of the following boundary description is the summit of Strawberry Hill, which is located in New Jersey near the Delaware River about one mile northwest of Titusville, at the southern end of the Central Delaware Valley viticultural area. The starting point is found on the Lambertville Quadrangle map.
</P>
<P>(2) <I>Boundary Description:</I> (i) From the summit of Strawberry Hill (475 feet) in a straight line to the summit of Mt. Canoe (428 feet—on the Pennington Quadrangle map).
</P>
<P>(ii) From there due east to Mercer County Route 579 (Bear Tavern Road) about .2 mile south of Ackors Corner.
</P>
<P>(iii) Then northward along Mercer 579 to Harbourton.
</P>
<P>(iv) From there northwestward along Route 3 (Mount Airy-Harbourton Road) to the 2nd English Presbyterian Church in Mount Airy (on the Stockton Quadrangle map).
</P>
<P>(v) From there along Old York Road northward to Benchmark 157 on U.S. Route 202.
</P>
<P>(vi) From there westward along Queen Road and northwestward along Mount Airy Road to Dilts Corner.
</P>
<P>(vii) From there northwestward along Dilts Corner Road to Sandy Ridge Church.
</P>
<P>(viii) From there northwestward via Cemetary Road to Benchmark 305.
</P>
<P>(ix) From there northward along Covered Bridge Road to Green Sergeant Covered Bridge.
</P>
<P>(x) From there generally westward along Sanford Road to its intersection with Route 519 about one mile north of Rosemont.
</P>
<P>(xi) From there northward along Route 519 (via Kingwood, Barbertown and Baptistown) to Palmyra (on the Frenchtown Quadrangle map).
</P>
<P>(xii) From the intersection in Palmyra, in a straight line northward to the 487 ft. elevation point near Nishisakawick Creek.
</P>
<P>(xiii) From there in a straight line northwestward to Benchmark 787 on Rt. 579 (a secondary hard surface highway, unnamed on the map).
</P>
<P>(xiv) From there northward along Route 579 to Benchmark 905 (on the Bloomsbury Quadrangle map).
</P>
<P>(xv) From there in a straight line westward to the 952 ft. summit of Musconetcong Mountain (on the Frenchtown Quadrangle map).
</P>
<P>(xvi) From there in a straight line southwestward to the 836 ft. summit of Musconetcong Mountain (on the Riegelsville Quadrangle map).
</P>
<P>(xvii) From there in straight lines connecting the 838 ft., 839 ft., 707 ft., and 386 ft. summits of Musconetcong Mountain.
</P>
<P>(xviii) From the 386 ft. summit of Musconetcong Mountain in a straight line across the Delaware River to the intersection of Routes 611 and 212.
</P>
<P>(xix) From there along Route 212 to the intersection with the lane going up Mine Hill.
</P>
<P>(xx) From there in a straight line to the summit of Mine Hill (488 feet).
</P>
<P>(xxi) From there in a straight line southwestward to the 522 ft. summit elevation point.
</P>
<P>(xxii) From there southeastward to the summit of Chestnut Hill (743 feet).
</P>
<P>(xxiii) From there in a straight line southeastward to the 347 ft. summit elevation point (located south of Kintnersville near Benchmark 173, about .1 mile west of Route 611).
</P>
<P>(xxiv) From there in a straight line eastward to the summit of Coffman Hill (826 feet).
</P>
<P>(xxv) From there in a straight line southeastward to the 628 ft. summit elevation point (about .3 mile north of Camp Davis).
</P>
<P>(xxvi) From there in a straight line southeastward to the point where Bridgeton, Nockamixon, and Tinicum Townships meet (on the Frenchtown Quadrangle map).
</P>
<P>(xxvii) From there in a straight line southward to the intersection of Slant Hill Road (Covered Bridge Road) and Stump Road in Smiths Corner (on the Lumberville Quadrangle map).
</P>
<P>(xxviii) From there in a straight line southeastward to the 472 ft. elevation point near Rocky Ridge School.
</P>
<P>(xxix) From there southeastward in a straight line to the 522 ft. elevation point on Plumstead Hill.
</P>
<P>(xxx) From there in a straight line to the 482 ft. elevation point about .7 mile northwest of Lahaska.
</P>
<P>(xxxi) From there in a straight line southeastward to the 352 ft. elevation point approximately .6 mile northeast of Lahaska.
</P>
<P>(xxxii) From there in a straight line to the point where a power transmission line crosses the 400 ft. contour line on the south side of Solebury Mountain (on the Lambertville Quadrangle map).
</P>
<P>(xxxiii) From there in a straight line to the tower on Bowman Hill in Washington Crossing State Park.
</P>
<P>(xxxiv) From there in a straight line across the Delaware River to the starting point, the summit of Strawberry Hill (475 feet).
</P>
<CITA TYPE="N">[T.D. ATF-168, 49 FR 10117, Mar. 19, 1984, as amended by T.D. ATF-249, 52 FR 5958, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.50" NODE="27:1.0.1.1.7.3.45.30" TYPE="SECTION">
<HEAD>§ 9.50   Temecula Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Temecula Valley.” 
</P>
<P>(b) <I>Approved map.</I> The approved maps for determining the boundary of the Temecula Valley viticultural area are seven USGS quadrangle maps in the 7.5 minute series, as follows: 
</P>
<P>(1) Wildomar, California, dated 1953, photorevised 1973;
</P>
<P>(2) Fallbrook, California, dated 1968;
</P>
<P>(3) Murrieta, California, dated 1953, photorevised 1979;
</P>
<P>(4) Temecula, California, dated 1968, photorevised 1975;
</P>
<P>(5) Pechanga, California, dated 1968;
</P>
<P>(6) Sage, California, dated 1954;
</P>
<P>(7) Bachelor Mountain, California, dated 1953, photorevised 1973.
</P>
<P>(c) <I>Boundary.</I> The Temecula Valley viticultural area is located in Riverside County, California. The boundary is as follows: 
</P>
<P>(1) The beginning point is the northernmost point of the Santa Rosa Land Grant where the Santa Rosa Land Grant boundary intersects the easternmost point of the Cleveland National Forest boundary.
</P>
<P>(2) The boundary follows the Cleveland National Forest boundary southwesterly to the point where it converges with the Riverside County-San Diego County line.
</P>
<P>(3) The boundary follows the Riverside County-San Diego County line southwesterly, then southeasterly to the point where the Riverside County-San Diego County line diverges southward and the Santa Rosa Land Grant boundary continues southeasterly.
</P>
<P>(4) The boundary follows the Santa Rosa Land Grant boundary southeasterly, then northeasterly, to its intersection with the Temecula Land Grant boundary.
</P>
<P>(5) The boundary follows the Temecula Land Grant boundary southeasterly, then northeasterly, to its intersection with the Little Temecula Land Grant boundary.
</P>
<P>(6) The boundary follows the Little Temecula Land Grant boundary southeasterly to its intersection with the boundary of that portion of the Pechanga Indian Reservation which, until 1907, was Lot “E” of the Little Temecula Land Grant.
</P>
<P>(7) The boundary follows the Pechanga Indian Reservation boundary southeasterly, then northeasterly (including that portion of the Penchanga Indian Reservation in the approved viticultural area) to the point at which it rejoins the Little Temecula Land Grant boundary.
</P>
<P>(8) The boundary follows the Little Temecula Land Grant boundary northeasterly to its intersection with the Pauba Land Grant boundary.
</P>
<P>(9) The boundary follows the Pauba Land Grant boundary southeasterly, then northeasterly, to the north-south section line dividing Section 23 from Section 24 in Township 8 South, Range 2 West.
</P>
<P>(10) The boundary follows this section line south to the 1500-foot contour line.
</P>
<P>(11) The boundary follows the 1500-foot contour line easterly to the range line dividing Range 2 West from Range 1 West.
</P>
<P>(12) The boundary follows this range line north, across California State Highway 71/79, to the 1400-foot contour line of Oak Mountain.
</P>
<P>(13) The boundary follows the 1400-foot contour line around Oak Mountain to its intersection with the 117°00′ West longitude meridian.
</P>
<P>(14) The boundary follows the 117°00′ West longitude meridian north to its intersection with the Pauba Land Grant boundary.
</P>
<P>(15) The boundary follows the Pauba Land Grant boundary northwesterly, then west, then south, then west, to Warren Road (which coincides with the range line dividing Range 1 West from Range 2 West).
</P>
<P>(16) The boundary follows Warren Road north to an unnamed east-west, light-duty, hard or improved surface road (which coincides with the section line dividing Section 12 from Section 13 in Township 7 South, Range 2 West).
</P>
<P>(17) The boundary follows this road west to the north-south section line dividing Section 13 from Section 14 in Township 7 South, Range 2 West.
</P>
<P>(18) The boundary follows this section line south to its intersection with Buck Road (which coincides with the east-west section line on the southern edge of Section 14 in Township 7 South, Range 2 West).
</P>
<P>(19) The boundary follows Buck Road west to the point where it diverges northwesterly from the section line on the southern edge of Section 14 in Township 7 South, Range 2 West.
</P>
<P>(20) The boundary follows this section line west, along the southern edges of Sections 14, 15, 16, 17, and 18 in Township 7 South, Range 2 West, to Tucalota Creek.
</P>
<P>(21) The boundary follows Tucalota Creek southerly to Santa Gertrudis Creek.
</P>
<P>(22) The boundary follows Santa Gertrudis Creek southwesterly to Murrieta Creek.
</P>
<P>(23) The boundary proceeds northwesterly along the westernmost branches of Murrieta Creek to its intersection with Hayes Avenue, northwest of Murrieta, California.
</P>
<P>(24) The boundary follows Hayes Avenue northwesterly, approximately 4,000 feet, to its terminus at an unnamed, unimproved, fair or dry weather road.
</P>
<P>(25) The boundary follows this road southwesterly to Murrieta Creek.
</P>
<P>(26) The boundary proceeds northwesterly along the westernmost branches of Murrieta Creek to its intersection with Orange Street in Wildomar, California.
</P>
<P>(27) From the intersection of Murrieta Creek and Orange Street in Wildomar, California, the boundary proceeds in a straight line to the beginning point.
</P>
<P>(d) From November 23, 1984, until June 17, 2004, the name of this viticultural area was “Temecula”. Effective June 18, 2004, this viticulture area is named “Temecula Valley”. Existing certificates of label approval showing “Temecula” as the appellation of origin will be revoked by operation of this regulation on June 19, 2006.
</P>
<CITA TYPE="N">[T.D. ATF-188, 49 FR 42566, Oct. 23, 1984; 49 FR 43455, Oct. 29, 1984, as amended by T.D. ATF-221, 51 FR 750, Jan. 8, 1986; T.D. ATF-249, 52 FR 5958, Feb. 27, 1987; T.D. TTB-10, 69 FR 20825, Apr. 19, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 9.51" NODE="27:1.0.1.1.7.3.45.31" TYPE="SECTION">
<HEAD>§ 9.51   Isle St. George.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Isle St. George.”
</P>
<P>(b) <I>Approved maps.</I> The approved map for determining the boundary of the Isle St. George viticultural area is the U.S.G.S. quadrangle map, “Put-in-Bay, Ohio”, 7.5 minute series, edition of 1969.
</P>
<P>(c) <I>Boundaries.</I> The Isle St. George viticultural area is located entirely within Ottawa County, Ohio. The boundary of the Isle St. George viticultural area is the shoreline of the island named “North Bass Island” on the “Put-in-Bay, Ohio” U.S.G.S. map, and the viticultural area comprises the entire island.
</P>
<CITA TYPE="N">[T.D. ATF-110, 47 FR 36421, Aug. 20, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.52" NODE="27:1.0.1.1.7.3.45.32" TYPE="SECTION">
<HEAD>§ 9.52   Chalk Hill.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Chalk Hill.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Chalk Hill viticultural area are the U.S.G.S. topographic maps titled:
</P>
<P>“Mark West Springs Quadrangle, California”, 7.5 minute series, 1958; and,
</P>
<P>“Healdsburg Quadrangle, California”, 7.5 minute series, 1955 (Photorevised 1980).
</P>
<P>(c) <I>Boundary.</I> The Chalk Hill viticultural area is located near the town of Windsor in Sonoma County, California. From the beginning point on the south line of Section 2, Township 8 North (T. 8 N.), Range 9 West (R. 9 W.) at the intersection of Arata Lane and Redwood Highway (a.k.a. Old Highway 101), on the “Healdsburg Quadrangle” map, the boundary proceeds—
</P>
<P>(1) Southeasterly along Redwood Highway through Section 11, T. 8 N., R. 9 W., to the point of intersection with Windsor River Road;
</P>
<P>(2) Then westerly along Windsor River Road on the south boundary of Section 11, T. 8 N., R. 9 W., to the point of intersection with Starr Road;
</P>
<P>(3) The southerly along Starr Road to the point of intersection with the south line of Section 14, T. 8 N., R. 9 W.;
</P>
<P>(4) Then easterly along the south line of Sections 14 and 13, T. 8 N., R. 9 W. and Section 18, T. 8 N., R. 8 W., to the point of intersection with the Redwood Highway;
</P>
<P>(5) Then southeasterly along the Redwood Highway to the intersection with an unnamed road that intersects the Redwood Highway at a right angle from the northeast near the southwest corner of Section 28 near Mark West Creek, T. 8 N., R. 8 W.;
</P>
<P>(6) Then northeast approximately 500 feet along the unnamed road to its intersection with the Pacific Gas and Electric power transmission line;
</P>
<P>(7) Then northeast approximately 1,000 feet along the power transmission line (paralleling the unnamed road) to the point where the power transmission line turns in a northerly direction;
</P>
<P>(8) Then in a northerly direction along the power transmission line to the point of its intersection with the south line of Section 17, T. 8 N., R. 8 W.;
</P>
<P>(9) Then east along the south line of Sections 17, 16 and 15, T. 8 N., R. 8 W. to the point of intersection with Mark West Road on the “Mark West Quadrangle Map”;
</P>
<P>(10) Then northerly for approximately 1.3 miles along Mark West Road (which becomes Porter Creek Road), then northeasterly for approximately 1.7 miles on Porter Creek Road to its intersection with the unnamed medium duty road that parallels Porter Creek in Section 12, T. 8 N., R. 8 W.; then northeasterly on the Franz Valley Road over the Tarwater Grade and continuing along the Franz Valley Road for approximately 3 miles to its intersection with Franz Creek (approximately 2,000 feet west of the range line common to R. 7 W. and R. 8 W. in T. 9 N. and approximately 1,150 feet north of the north line of Section 25, T. 9 N., R. 8 W.);
</P>
<P>(11) Then westerly along Franz Creek to its point of intersection with the east line of Section 21, T. 9 N., R. 8 W.;
</P>
<P>(12) Then southerly along the east line of Section 21 to the southeast corner thereof;
</P>
<P>(13) Then southerly, approximately 0.08 mile, along the west line of section 27, T. 9 N., R. 8 W., to the point at which an unnamed unimproved road which parallels the south bank of Martin Creek intersects the west line of section 27,  T. 9 N., R. 8 W.;
</P>
<P>(14) Then southeasterly, approximately 1.07 miles, along said road to the point at which the road is crossed by the east line of section 27, T. 9 N., R. 8 W.;
</P>
<P>(15) Then southerly, approximately 0.65 mile, along the east lines of sections 27 and 34, T. 9 N., R. 8 W., to the point in the northeast corner of section 34, T. 9 N., R. 8 W. where the north fork of Barnes Creek intersects such line in section 34, T. 9 N., R. 8 W.;
</P>
<P>(16) Then continuing along the north fork of Barnes Creek, approximately 0.5 mile, in a generally westerly direction to a small dwelling at the eastern terminus of an unnamed unimproved road (known locally as the access to the Shurtleff Ranch) in section 34, T. 9 N., R. 8 W.;
</P>
<P>(17) Then continuing in a generally westerly direction, approximately 1.4 miles, along the unnamed unimproved road (known locally as the access to the Shurtleff Ranch) to its intersection with an unnamed unimproved road (known locally as Spurgeon Road) in section 33, T. 9 N., R. 8 W. on the Healdsburg, California, Quadrangle Map;
</P>
<P>(18) Then westerly, approximately 0.45 mile, along the unnamed unimproved road (known locally as Spurgeon Road) to the point where the road intersects Chalk Hill Road in section 32, T. 9 N., R. 8 W.;
</P>
<P>(19) Then in a generally northwesterly direction, approximately 1.3 miles, along Chalk Hill Road to the point where Chalk Hill Road crosses Brooks Creek in section 29, T. 9 N., R. 8 W.;
</P>
<P>(20) Then north in a straight line, approximately 0.2 mile, to the top of a peak identified as Chalk Hill;
</P>
<P>(21) Then west-northwesterly in a straight line to the confluence of Brooks Creek and the Russian River;
</P>
<P>(22) Then westerly along the Russian River to the point of intersection with the range line common to R. 8 W. and R. 9 W. in T. 9 N.;
</P>
<P>(23) Then southwesterly in a straight line to the point of a hill identified as having an elevation of 737 feet;
</P>
<P>(24) Then south-southwesterly in a straight line to the point at the easterly terminus of Reiman Road;
</P>
<P>(25) Then southwesterly in a straight line to the point at the intersection of the township line common to T. 8 N. and T. 9 N. in R. 9 W. and the frontage road (a.k.a. Los Amigos Road) for U.S. Highway 101;
</P>
<P>(26) Then west approximately 3,000 feet along the township line common to T. 8 N. and T. 9 N. in R. 9 W.;
</P>
<P>(27) Then southerly for approximately 2,000 feet in a straight line to the point of intersection with an unnamed stream drainage;
</P>
<P>(28) Then east in a straight line to the point of intersection with Eastside Road;
</P>
<P>(29) Then northeasterly along Eastside Road to the point of intersection with Redwood Highway;
</P>
<P>(30) Then southeasterly along Redwood Highway to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-155, 48 FR 48812, Oct. 21, 1983, as amended by T.D. ATF-272, 53 FR 17023, May 13, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 9.53" NODE="27:1.0.1.1.7.3.45.33" TYPE="SECTION">
<HEAD>§ 9.53   Alexander Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Alexander Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Alexander Valley viticultural area are seven U.S.G.S. maps entitled:
</P>
<P>(1) “Mark West Springs Quadrangle, California,” 7.5 minute series, 1958;
</P>
<P>(2) “Mount St. Helena Quadrangle, California,” 7.5 minute series, 1959;
</P>
<P>(3) “Jimtown Quadrangle, California—Sonoma County,” 7.5 minute series, 1955 (Photorevised 1975);
</P>
<P>(4) “Geyserville Quadrangle, California—Sonoma County,” 7.5 minute series, 1955 (Photorevised 1975);
</P>
<P>(5) “Healdsburg Quadrangle, California—Sonoma County,” 7.5 minute series, 1955;
</P>
<P>(6) “Asti Quadrangle, California,” 7.5 minute series, 1959 (Photorevised 1978); and
</P>
<P>(7) “Cloverdale Quadrangle, California,” 7.5 minute series, 1960.
</P>
<P>(c) <I>Boundary.</I> The Alexander Valley viticultural area is located in northeastern Sonoma County, California. From the beginning point at the northeast corner of Section 32, Township 12 North (T. 12 N.), Range 10 West (R. 10 W.), on the Asti Quadrangle map, the boundary runs—
</P>
<P>(1) West along the north line of Sections 32 and 31, T. 12 N., R. 10 W., and Sections 36, 35, and 34, T. 12 N., R. 11 W., to the northwest corner of Section 34, on the Cloverdale Quadrangle map;
</P>
<P>(2) Then south along the west line of Section 34 to the southwest corner thereof;
</P>
<P>(3) Then east southeasterly in a straight line to the southeast corner of section 2, T. 11 N., R. 11 W.;
</P>
<P>(4) Then south southeasterly in a straight line to the southeast corner of section 24, T. 11 N., R. 11 W.;
</P>
<P>(5) Then straight south along the eastern boundary line of Section 25, to its intersection with Kelly Road, a medium-duty road, T. 11 N., R. 11 W.;
</P>
<P>(6) Then southwest along Kelly Road to its intersection with the northern boundary line of Section 36, T. 11 N., R. 11 W.;
</P>
<P>(7) Then straight south to its intersection with 38° 45′ N. latitude along the southern border of the Cloverdale Quadrangle map, T. 10 N., R. 11 W. and R. 10 W.;
</P>
<P>(8) Then straight east to its intersection with 123° 00′ E. longitude at the southeastern corner of the Cloverdale Quadrangle map, T. 10 N., R. 10 W.;
</P>
<P>(9) Then southeasterly in a straight line approximately 11,000 feet (closely following the ridge line) to the northwest corner of Section 10, T. 10 N., R.10 W. on the Geyserville Quadrangle map; 
</P>
<P>(10) [Reserved]
</P>
<P>(11) Then southerly along the west line of Section 10, T. 10 N., R. 10 W.;
</P>
<P>(12) Then S. 74 degrees, E. 2,800 feet in a straight line to the northeasterly tip of a small lake;
</P>
<P>(13) Then N. 57 degrees, E. 2,300 feet in a straight line to the southeast corner of Section 10, T. 10 N., R. 10 W.;
</P>
<P>(14) Then S. 16 degrees, E. 1,800 feet in a straight line to the point on a peak identified as having an elevation of 664 feet;
</P>
<P>(15) Then S. 55 degrees, E. 7,900 feet in a straight line to the most northerly point on the northeasterly line of “Olive Hill” Cemetery, lying on the easterly side of a light-duty road identified as Canyon Road;
</P>
<P>(16) Then southeasterly along the northeasterly line of “Olive Hill” cemetery to most easterly point thereon;
</P>
<P>(17) Then southerly 3,000 feet along the meanders of the west fork of Wood Creek to the point lying 400 feet north of the point on a peak identified as having an elevation of 781 feet;
</P>
<P>(18) Then southerly 400 feet in a straight line to the point on a peak identified as having an elevation of 781 feet;
</P>
<P>(19) Then S. 50
<FR>1/2</FR> degrees, E. 15,200 feet in a straight line to the point lying at the intersection of Lytton Creek with the township line common to T. 9 N. and T. 10 N. in R. 9 W.;
</P>
<P>(20) Then southerly along the meanders of Lytton Creek to the point of intersection with a light-duty road identified as Lytton Springs Road in T. 9 N., R. 9 W.;
</P>
<P>(21) Then easterly along Lytton Springs Road to the point of intersection with a heavy-duty road identified as U.S. Highway 101 (a.k.a. Redwood Highway), on the Jimtown Quadrangle map;
</P>
<P>(22) Then southerly along U.S. Highway 101 to the point of intersection with an unnamed light-duty road (known locally as Chiquita Road), on the Geyserville Quadrangle map;
</P>
<P>(23) Then easterly along the unnamed light-duty road to the point of intersection with an unnamed heavy-duty road (known locally as Healdsburg Avenue), on the Jimtown Quadrangle map;
</P>
<P>(24) Then southeasterly in a straight line approximately 11,000 feet to the 991-foot peak of Fitch Mountain;
</P>
<P>(25) Then east southeasterly approximately 7,000 feet in a straight line to the peak identified as having an elevation of 857 feet;
</P>
<P>(26) Then east southeasterly approximately 1,750 feet to the peak identified as Black Peak;
</P>
<P>(27) Then southeasterly approximately 7,333 feet to the peak identified as having an elevation of 672 feet;
</P>
<P>(28) Then northeasterly approximately 5,000 feet in a straight line to the point of confluence of Brooks Creek with the Russian River in T. 9 N., R. 8 W., on the Healdsburg Quadrangle map;
</P>
<P>(29) Then east-southeasterly 2,400 feet in a straight line to the top of a peak identified as Chalk Hill;
</P>
<P>(30) Then south from said peak, in a straight line, approximately 0.2 mile to the point where Chalk Hill Road crosses Brooks Creek (on the Healdsburg Quadrangle map);
</P>
<P>(31) Then southeasterly, approximately 1.3 miles, along the roadbed of Chalk Hill Road to the point near the confluence of Brooks Creek and Barnes Creek where Chalk Hill Road intersects an unnamed unimproved road (known locally as Spurgeon Road) that parallels Barnes Creek in section 32, T. 9 N., R. 8 W.;
</P>
<P>(32) Then easterly, approximately 0.45 mile, along said road (known locally as Spurgeon Road) to the point where the road is intersected by an unnamed unimproved road (known locally as the access to the Shurtleff Ranch) in section 33, T. 9 N., R. 8 W.;
</P>
<P>(33) Then continuing along the unnamed unimproved road (known locally as the access to the Shurtleff Ranch), approximately 1.33 miles, in a generally easterly direction, to the eastern terminus of said road at a small dwelling along the north fork of Barnes Creek in section 34, T. 9 N., R. 8 W. on the Mark West Springs, California, Quadrangle map;
</P>
<P>(34) Then easterly along the north fork of Barnes Creek, approximately 0.5 mile, to the point in the northeast corner of section 34, T. 9 N., R. 8 W. where the north fork of Barnes Creek intersects the east line of section 34, T. 9 N., R. 8 W.;
</P>
<P>(35) Then north, approximately 0.65 mile, along the east lines of sections 34 and 27, T. 9 N., R. 8 W., to the point at which an unnamed unimproved road which parallels the south bank of Martin Creek intersects the eastern border of section 27, T. 9 N., R. 8 W.;
</P>
<P>(36) Then in a generally northwesterly direction, approximately 1.07 miles, along said road to the point at which the road is crossed by the west line of section 27, T. 9 N., R. 8 W.;
</P>
<P>(37) Then north, approximately 0.08 mile, along the west line of section 27, T. 9 N., R. 8 W., to the southeast corner of section 21, T. 9 N., R. 8 W.;
</P>
<P>(38) Then northerly along the east line of Sections 21, 16, and 9, T. 9 N., R. 8 W. to the northeast corner of Section 9, on the Mount St. Helena Quadrangle map;
</P>
<P>(39) Then westerly along the north line of Section 9 to the northwest corner thereof, on the Jimtown Quadrangle map;
</P>
<P>(40) Then northerly along the western lines of section 4, of T. 9 N, R. 8 W., and sections 33, 28, 21, 16, and 9 of T. 10 N., R. 8 W.;
</P>
<P>(41) Then westerly along the northern lines of section 8 and 7, T. 10 N., R. 8 W. and section 12, T. 10 N., R. 9 W. to the southeastern corner of section 2, T. 10 N., R. 9 W.;
</P>
<P>(42) Then northwesterly in a straight line to the eastern line of section 3 at 38 degrees 45 minutes latitude, T. 10 N., R. 9 W.;
</P>
<P>(43) Then westerly along latitude line 38 degrees 45 minutes to the point lying at 122 degrees 52 minutes 30 seconds longitude;
</P>
<P>(44) Then northwesterly in a straight line to the southeast corner of section 4, T. 11 N., R. 10 W., on the Asti, Quadrangle map;
</P>
<P>(45) Then northeasterly in a straight line to the southeast corner of section 34, T. 12 N., R. 10 W.;
</P>
<P>(46) Then north along the east boundary of section 34, T. 12 N., R. 10 W., to the northeast corner of section 34, T. 12 N., R. 10 W.;
</P>
<P>(47) Then west along the north boundaries of sections 34 and 33, T. 12 N., R. 10 W., to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-187, 49 FR 42724, Oct. 24, 1984, as amended by T.D. ATF-233, 51 FR 30354, Aug. 26, 1986; T.D. ATF-272, 53 FR 17025, May 13, 1988; T.D. ATF-300, 55 FR 32402, Aug. 9, 1990; T.D. ATF-468, 66 FR 50565, Oct. 4, 2001; T.D. TTB-65, 73 FR 12877, Mar. 11, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 9.54" NODE="27:1.0.1.1.7.3.45.34" TYPE="SECTION">
<HEAD>§ 9.54   Santa Ynez Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Santa Ynez Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Santa Ynez Valley viticultural area are 12 U.S.G.S. quadrangle maps. They are entitled:
</P>
<P>(1) “Figueroa Mountain, Cal.”, 7.5 minute series, edition of 1959;
</P>
<P>(2) “Foxen Canyon, Cal.”, 7.5 minute series, edition of 1964;
</P>
<P>(3) “Lake Cachuma, Cal.”, 7.5 minute series, edition of 1959;
</P>
<P>(4) “Lompoc, Cal.”, 7.5 minute series, edition of 1959 (photorevised 1974);
</P>
<P>(5) “Lompoc Hills, Cal.”, 7.5 minute series, edition of 1959;
</P>
<P>(6) “Los Alamos, Cal.”, 7.5 minute series, edition of 1959;
</P>
<P>(7) “Los Olivos, Cal.”, 7.5 minute series, edition of 1959 (photoinspected 1974);
</P>
<P>(8) “Santa Rosa Hills, Cal.”, 7.5 minute series, edition of 1959;
</P>
<P>(9) “Santa Ynez, Cal.”, 7.5 minute series, edition of 1959 (photorevised 1974);
</P>
<P>(10) “Solvang, Cal.”, 7.5 minute series, edition of 1959 (photorevised 1974);
</P>
<P>(11) “Zaca Creek, Cal.”, 7.5 minute series, edition of 1959; and
</P>
<P>(12) “Zaca Lake, Cal.”, 7.5 minute series, edition of 1964.
</P>
<P>(c) <I>Boundaries.</I> The Santa Ynez Valley viticultural area is located within Santa Barbara County, California. The beginning point is found on the “Los Alamos, California” U.S.G.S. map where California Highway 246 (indicated as Highway 150 on the Los Alamos map) intersects with the 120°22′30″ longitude line.
</P>
<P>(1) Then north following the 120°22′30″ longitude line to Cebada Canyon Road.
</P>
<P>(2) Then northeast following Cebada Canyon Road and an unnamed jeep trail to the northern boundary of Section 9, T. 7 N., R. 33 W.
</P>
<P>(3) Then east following the northern boundaries of Sections 9, 10, 11, 12, 7, and 8 to the northeast corner of Section 8, T. 7 N., R. 33 W.
</P>
<P>(4) Then south following the eastern boundaries of Sections 8 and 17 to the intersection with the boundary dividing the La Laguna and San Carlos de Jonata Land Grants.
</P>
<P>(5) Then east following the boundary between the La Laguna and the San Carlos de Jonata Land Grants to the intersection with Canada de Santa Ynez.
</P>
<P>(6) Then northeast in a straight line for approximately 3.6 miles to Benchmark 947 at U.S. Highway 101.
</P>
<P>(7) Then northeast in a straight line for approximately 2.6 miles to the southwest corner of the La Zaca Land Grant.
</P>
<P>(8) Then following the boundary of the La Zaca Land Grant north, then east to its northeast corner.
</P>
<P>(9) Then east in a straight line for approximately 2.0 miles to the point of intersection of the La Laguna and Sisquoc Land Grants with the Los Padres National Forest.
</P>
<P>(10) Then following the boundary of the Los Padres National Forest south, east, and south until it intersects with the eastern boundary of Section 29, T. 7 N., R. 29 W.
</P>
<P>(11) Then south following the eastern boundaries of Sections 29, 32, 5, 8, and 17 to the boundary of the Cachuma Recreation Area at Bitt Benchmark 1074.
</P>
<P>(12) Then following the boundary of the Cachuma Recreation Area west and south to the point of intersection with the Los Padres National Forest.
</P>
<P>(13) Then south and west following the boundary of the Los Padres National Forest to its intersection with the Las Cruces Land Grant at the southwest corner of Section 12, T. 5 N., R. 32 W.
</P>
<P>(14) Then north following the boundary of the Las Cruces Land Grant to the southeast corner of Section 26, T. 6 N., R. 32 W.
</P>
<P>(15) Then west following the southern boundaries of Sections 26, 27, 28, and 29 to the intersection with the northern boundary of the San Julian Land Grant at the southwestern corner of Section 29, T. 6 N., R. 32 W.
</P>
<P>(16) Then northwest following the boundary of the San Julian Land Grant to its intersection with the 120°22′30″ longitude line.
</P>
<P>(17) Then northwest in a straight line for approximately 3.2 miles to the point where Santa Rosa Road intersects Salsipuedes Creek.
</P>
<P>(18) Then following Salsipuedes Creek downstream to the point of confluence with the Santa Ynez River.
</P>
<P>(19) Then northeast in a straight line for approximately 1.4 miles to an unnamed hill, elevation 597 feet.
</P>
<P>(20) Then northeast in a straight line for approximately 1.7 miles to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-132, 48 FR 16252, Apr. 15, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 9.55" NODE="27:1.0.1.1.7.3.45.35" TYPE="SECTION">
<HEAD>§ 9.55   Bell Mountain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Bell Mountain.”
</P>
<P>(b) <I>Approved map.</I> The appropriate map for determining the boundaries of the Bell Mountain viticultural area is one U.S.G.S. map, titled: Willow City Quadrangle, 7.5 minute series, 1967.
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The Bell Mountain viticultural area is located in Gillespie County, Texas. The starting point of the following boundary description is the summit of Bell Mountain (1,956 feet).
</P>
<P>(2) <I>Boundary Description.</I> (i) From the starting point, the boundary proceeds due southward for exactly one half mile;
</P>
<P>(ii) Then southeastward in a straight line to the intersection of Willow City Loop Road with an unnamed unimproved road, where marked with an elevation of 1,773 feet;
</P>
<P>(iii) Then generally southward along Willow City Loop Road (a light-duty road) to Willow City.
</P>
<P>(iv) Then continuing southward and westward along the same light-duty road to the intersection having an elevation of 1,664 feet;
</P>
<P>(v) Then continuing westward along the light-duty road to the intersection having an elevation of 1,702 feet;
</P>
<P>(vi) Then turning southward along the light-duty road to the intersection having an elevation of 1,736 feet;
</P>
<P>(vii) Then turning westward along the light-duty road to the intersection having an elevation of 1,784 feet;
</P>
<P>(viii) Then turning southward and then westward, following the light-duty road to its intersection with Texas Highway 16, where marked with an elevation of 1,792 feet;
</P>
<P>(ix) Then due westward to the longitude line 98°45′;
</P>
<P>(x) Then northward along that longitude line to a point due west of an unnamed peak with an elevation of 1,784 feet;
</P>
<P>(xi) Then due eastward to the summit of that unnamed peak;
</P>
<P>(xii) Then in a straight line eastward to the intersection of an unnamed unimproved road with Texas Highway 16, where marked with an elevation of 1,822 feet;
</P>
<P>(xiii) Then following that unnamed road, taking the right-hand fork at an intersection, to a point due west of the summit of Bell Mountain;
</P>
<P>(xiv) Then due eastward to the summit of Bell Mountain.
</P>
<CITA TYPE="N">[T.D. ATF-238, 51 FR 36400, Oct. 10, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 9.56" NODE="27:1.0.1.1.7.3.45.36" TYPE="SECTION">
<HEAD>§ 9.56   San Lucas.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Lucas.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of San Lucas viticultural area are the following four U.S.G.S. topographical maps of the 7.5 minute series:
</P>
<EXTRACT>
<FP-1>San Lucas, CA, 1949, photorevised 1979,
</FP-1>
<FP-1>Nattrass Valley, CA, 1967,
</FP-1>
<FP-1>San Ardo, CA, 1967, and,
</FP-1>
<FP-1>Espinosa Canyon, CA, 1949, photorevised 1979.</FP-1></EXTRACT>
<P>(c) <I>Boundary.</I> The San Lucas viticultural area is located in Monterey County in the State of California. The boundary is as follows:
</P>
<EXTRACT>
<P>Beginning on the “San Lucas Quadrangle” map at the northwest corner of section 5 in Township 21 South, Range 9 East, the boundary proceeds northeasterly in a straight line approximately 0.35 mile to the 630-foot promontory in section 32, T. 20 S., R. 9 E.;
</P>
<P>(1) Then east southeasterly in a straight line approximately 0.6 mile to the 499-foot promontory in the southwest corner of section 33, T. 20 S., R. 9 E.;
</P>
<P>(2) Then east southeasterly in a straight line approximately 1.3 miles to the 847-foot promontory in section 3, T. 21 S., R. 9 E., on the “Nattrass Valley Quadrangle” map;
</P>
<P>(3) Then south southeasterly in a straight line approximately 2.2 miles to the 828-foot promontory in section 14, T. 21 S., R. 9 E., on the “San Ardo Quadrangle” map;
</P>
<P>(4) Then east southeasterly in a straight line approximately 1.3 miles to the 868-foot promontory in section 13, T. 21 S., R. 9 E.;
</P>
<P>(5) Then southeasterly in a straight line approximately 0.94 mile to the 911-foot promontory in section 19, T. 21 S., R. 10 E.;
</P>
<P>(6) Then easterly in a straight line approximately 1.28 miles to the 1,042-foot promontory in section 20, T. 21 S., R. 10 E.;
</P>
<P>(7) Then east northeasterly in a straight line approximately 1.28 miles to the 998-foot promontory in southeast corner of section 16, T. 21 S., R. 10 E.;
</P>
<P>(8) Then southerly in a straight line approximately 2.24 miles to the 1,219-foot promontory near the east boundary of section 28, T. 21 S., R. 10 E.;
</P>
<P>(9) Then southwesterly in a straight line approximately 1.5 miles to the 937-foot promontory near the north boundary of section 32, T. 21 S., R. 10 E.;
</P>
<P>(10) Then southwesterly in a straight line approximately 0.34 mile to the 833-foot promontory in section 32, T. 21 S., R. 10 E.;
</P>
<P>(11) Then south southeasterly in a straight line approximately 0.5 mile to the 886-foot “Rosenberg” promontory in section 32, T. 21 S., R. 10 E.;
</P>
<P>(12) Then south southeasterly approximately 1.1 miles to the 781-foot promontory in section 5, T. 22 S., R. 10 E.;
</P>
<P>(13) Then southeasterly in a straight line approximately 0.7 mile to the 767-foot promontory in section 9, T. 22 S., R. 10 E.;
</P>
<P>(14) Then southerly in a straight line approximately 0.5 mile to the 647-foot promontory along the south boundary of section 9, T. 22 S., R. 10 E.;
</P>
<P>(15) Then southwesterly in a straight line approximately 2.67 miles to the 835-foot promontory in section 19, T. 22 S., R. 10 E.;
</P>
<P>(16) Then west southwesterly in a straight line approximately 1.1 miles to the 1,230-foot promontory in section 24, T. 22 S., R. 9 E.;
</P>
<P>(17) Then north northwesterly in a straight line approximately 1.4 miles to the 1,149-foot promontory in section 14, T. 22 S., R. 9 E.;
</P>
<P>(18) Then northwesterly in a straight line approximately 0.57 mile to the 1,128-foot promontory in section 11, T. 22 S., R. 9 E.;
</P>
<P>(19) Then west southwesterly in a straight line approximately 0.58 mile to the 1,220-foot promontory near the north boundary of section 15, T. 22 S., R. 9 E.;
</P>
<P>(20) Then northwesterly in a straight line approximately 1.33 miles to the 1,071-foot promontory in the northwest corner of section 9, T. 22 S., R. 9 E.;
</P>
<P>(21) Then northwesterly in a straight line approximately 2.82 miles to the 1,004-foot promontory in section 31, T. 21 S., R. 9 E., on the “Espinosa Canyon Quadrangle” map;
</P>
<P>(22) Then north northwesterly in a straight line approximately 1.32 miles to the 882-foot promontory in section 25, T. 21 S., R. 8 E.;
</P>
<P>(23) Then northwesterly in a straight line approximately 1.05 miles to the 788-foot promontory in section 23, T. 21 S., R. 8 E.;
</P>
<P>(24) Then northeasterly approximately 1.3 miles to the 595-foot promontory, section 13, T21S, R8E (Espinosa Canyon Quadrangle);
</P>
<P>(25) Then northeasterly approximately 0.6 mile to the intersection of a meandering, unnamed, light duty road and the fork of an intermittent stream, then continue meandering northeasterly, followed by southeasterly, approximately 1.1 miles to its intersection with an unnamed, light duty road south of the windmill, T21, R8E (Espinosa Canyon Quadrangle);
</P>
<P>(26) Then northeasterly along the unnamed road approximately 0.6 mile to its intersection with the Salinas River, then continue 0.8 mile north in a straight line to benchmark 340, between U.S. Highway 101 and the Salinas River, in T21S, R9E (San Lucas Quadrangle);
</P>
<P>(27) Then approximately 0.4 mile northwesterly in a straight line to the intersection with a water tank, then continues northeasterly in a straight line approximately 0.7 mile, and return to the point of beginning in the northwest corner of section 5, in T21S, R9E (San Lucas Quadrangle).</P></EXTRACT>
<CITA TYPE="N">[T.D. ATF-248, 52 FR 2945, Jan. 29, 1987, as amended by T.D. TTB-14, 69 FR 38836, June 29, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 9.57" NODE="27:1.0.1.1.7.3.45.37" TYPE="SECTION">
<HEAD>§ 9.57   Green Valley of Russian River Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Green Valley of Russian River Valley”. For purposes of part 4 of this chapter, “Green Valley of Russian River Valley” is a term of viticultural significance. “Sonoma County Green Valley” is also a term of viticultural significance until April 23, 2009.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Green Valley of Russian River Valley viticultural area are three United States Geological Survey maps. They are titled:
</P>
<P>(1) “Sebastopol Quadrangle, California—Sonoma Co.”, 7.5 minute series (1954, photorevised 1980);
</P>
<P>(2) “Camp Meeker Quadrangle, California—Sonoma Co.”, 7.5 minute series (1954, photorevised 1971); and
</P>
<P>(3) “Guerneville Quadrangle, California—Sonoma Co.”, 7.5 minute series (1955).
</P>
<P>(c) <I>Boundary.</I> The Green Valley of Russian River Valley viticultural area is located in Sonoma County, California. The beginning point is located in the northeastern portion of the “Camp Meeker Quadrangle” map where the line separating Section 31 from Section 32, in Township 8 North (T.8N.), Range 9 West (R.9W.) intersects River Road.
</P>
<P>(1) From the beginning point, the boundary runs south along the line separating Section 31 from Section 32, continuing south along Covey Road (shown on the map as an unnamed, light-duty road) to the town of Forestville where Covey Road intersects with State Highway 116 (Gravenstein Highway).
</P>
<P>(2) Thence east along State Highway 116 until it turns in a southeasterly direction and then proceeding along State Highway 116 in a southeasterly direction until the point at which State Highway 116 intersects State Highway 12 in the town of Sebastopol (located on the “Sebastopol Quadrangle” map);
</P>
<P>(3) Thence in a southwesterly direction on State Highway 12 through the town of Sebastopol;
</P>
<P>(4) Thence in a westerly direction on State Highway 12, which becomes Bodega Road, until Bodega Road intersects with Pleasant Hill Road;
</P>
<P>(5) Thence in a southerly direction on Pleasant Hill Road until it intersects with Water Trough Road;
</P>
<P>(6) Thence westerly and then northwesterly on Water Trough Road until it intersects with Gold Ridge Road;
</P>
<P>(7) Thence in a southwesterly, northwesterly, and then a northeasterly direction along Gold Ridge Road until it intersects with Bodega Road;
</P>
<P>(8) Thence in a southwesterly direction along Bodega Road until Bodega Road intersects with Jonive Road in Township 6 North (T.6N.), Range 9 West (R.9W.) located in the southeast portion of U.S.G.S. map “Camp Meeker Quadrangle”;
</P>
<P>(9) Thence proceeding in a northwesterly direction on Jonive Road until it intersects Occidental Road;
</P>
<P>(10) Thence proceeding on Occidental Road in a northwesterly direction until Occidental Road intersects the west border of Section 35;
</P>
<P>(11) Thence proceeding due north along the west borders of Sections 35, 26, 23, and 14 to the northwest corner of Section 14;
</P>
<P>(12) Thence in an easterly direction along the north border of Section 14 to the northeast corner of Section 14;
</P>
<P>(13) Thence north along the west borders of Sections 12, 1, and 36 to the northwest corner of Section 36 located in the extreme southern portion of the “Guerneville Quadrangle” map;
</P>
<P>(14) Thence in an easterly direction along the north border of Section 36 until it intersects with River Road;
</P>
<P>(15) Thence in a southeasterly direction along River Road to the point of beginning located on the “Camp Meeker Quadrangle” map.
</P>
<P>(d) From December 21, 1983, until April 23, 2007, the name of this viticultural area was “Sonoma County Green Valley”. Effective April 23, 2007, this viticulture area is named “Green Valley of Russian River Valley”. Existing certificates of label approval showing “Sonoma County Green Valley” as the appellation of origin will be revoked by operation of this regulation on April 23, 2009.
</P>
<CITA TYPE="N">[T.D. ATF-161, 48 FR 52579, Nov. 21, 1983, as amended by T.D. TTB-60, 72 FR 13692, Mar. 23, 2007]


</CITA>
</DIV8>


<DIV8 N="§ 9.58" NODE="27:1.0.1.1.7.3.45.38" TYPE="SECTION">
<HEAD>§ 9.58   Carmel Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Carmel Valley.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundary of the Carmel Valley viticultural area are five U.S.G.S. topographic maps in the 7.5 minute series, as follows:
</P>
<P>(1) Mt. Carmel, Calif., dated 1956;
</P>
<P>(2) Carmel Valley, Calif., dated 1956;
</P>
<P>(3) Ventana Cones, Calif., dated 1956;
</P>
<P>(4) Chews Ridge, Calif., dated 1956; and
</P>
<P>(5) Rana Creek, Calif., dated 1956.
</P>
<P>(c) <I>Boundary.</I> The Carmel Valley viticultural area is located in Monterey County, California. The boundary is as follows:
</P>
<P>(1) The beginning point is the northeast corner of Section 5 in Township 17 South, Range 2 East.
</P>
<P>(2) The boundary follows the Los Laurelles Land Grant boundary south, then easterly, to the north-south section line dividing Section 9 from Section 10 in Township 17 South, Range 2 East.
</P>
<P>(3) The boundary follows this section line south to the southwest corner of Section 22 in Township 17 South, Range 2 East.
</P>
<P>(4) From this point, the boundary follows section lines in Township 17 South, Range 2 East:
</P>
<P>(i) To the southeast corner of Section 22,
</P>
<P>(ii) To the southwest corner of Section 26,
</P>
<P>(iii) To the southeast corner of Section 26,
</P>
<P>(iv) To the southwest corner of Section 36.
</P>
<P>(5) From this point, the boundary follows the Los Padres National Forest boundary east, then south, then east to the southwest corner of Section 9 in Township 18 South, Range 3 East.
</P>
<P>(6) The boundary follows the section line east to the southeast corner of the same section, where the section line rejoins the Los Padres National Forest boundary.
</P>
<P>(7) The boundary follows the Los Padres National Forest boundary to the north-south section line dividing Section 11 from Section 12 in Township 18 South, Range 3 East.
</P>
<P>(8) The boundary follows this section line north to the township line dividing Township 17 South from Township 18 South.
</P>
<P>(9) The boundary follows this township line west to the north-south section line dividing Section 34 from Section 35 in Township 17 South, Range 3 East.
</P>
<P>(10) The boundary follows this section line north to the Los Tularcitos Land Grant boundary.
</P>
<P>(11) The boundary follows the Los Tularcitos Land Grant boundary northwesterly to the Carmel River.
</P>
<P>(12) The boundary follows the Carmel River northerly to the Los Tularcitos Land Grant boundary.
</P>
<P>(13) The boundary follows the Los Tularcitos Land Grant boundary northeasterly to the unsurveyed township line (approximate location denoted by a line of red dashes) dividing Township 16 South from Township 17 South.
</P>
<P>(14) The boundary follows the unsurveyed township line west to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-119, 47 FR 55916, Dec. 14, 1982, as amended by T.D. TTB-91, 76 FR 5477, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 9.59" NODE="27:1.0.1.1.7.3.45.39" TYPE="SECTION">
<HEAD>§ 9.59   Arroyo Seco.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Arroyo Seco.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Arroyo Seco viticultural area are four U.S.G.S. quadrangle maps. They are entitled:
</P>
<P>(1) “Greenfield, California,” 7.5 minute series, edition of 1956;
</P>
<P>(2) “Paraiso Springs, California,” 7.5 minute series, edition of 1956;
</P>
<P>(3) “Soledad, California,” 7.5 minute series, edition of 1955; and
</P>
<P>(4) “Sycamore Flat, California,” 7.5 minute series, edition of 1956 (photoinspected 1972).
</P>
<P>(c) <I>Boundaries.</I> The Arroyo Seco viticultural area is located in Monterey County, California. The beginning point is found on the “Sycamore Flat” U.S.G.S. map at the intersection of Jamesburg Road (known locally as Carmel Valley Road) and Arroyo Seco Road, near the intersection of sections 21, 22, 28, and 27, T.19 S., R. 5 E. From the beginning point, proceed southwesterly along Arroyo Seco Road to its intersection with Piney Creek.
</P>
<P>(1) Then southeasterly along Piney Creek to its confluence with the Arroyo Seco in section 27, T. 19 S., R. 5 E.
</P>
<P>(2) Then northerly along the Arroyo Seco to its intersection with the southern boundary of section 22, T. 19 S., R 5 E.
</P>
<P>(3) Then east following the southern boundaries of Sections 22, 23, 24, 19, and 20 to the southeastern corner of Section 20, T. 19 S., R. 6 E.
</P>
<P>(4) Then northeast in a straight line for approximately 1.3 miles to the summit of Pettits Peak.
</P>
<P>(5) Then northeast in a straight line for approximately 1.8 miles to the point where the 400′ contour line intersects the northern boundary of Section 14, T. 19 S., R. 6 E.
</P>
<P>(6) Then east following the 400′ contour line to a point immediately west of the Reservoir within the Posa de los Ositos Land Grant.
</P>
<P>(7) Then following the ridge line in a northeasterly direction for approximately 7.5 miles to U.S. Highway 101 at the intersection of Underwood Road.
</P>
<P>(8) Then east following Underwood Road to its intersection with the Posa de los Ositos Land Grant.
</P>
<P>(9) Then north following the boundary of the Posa de los Ositos Land Grant to the west bank of the Salinas River.
</P>
<P>(10) Then northwest following the west bank of the Salinas River to the southern boundary of Section 17, T. 18 S., R. 7 E.
</P>
<P>(11) Then due west for approximately 2.0 miles following the southern boundary of Section 17, and continuing to U.S. Highway 101.
</P>
<P>(12) Then south following Paraiso Road to its intersection with an unnamed, light-duty road north of Clark Road in Section 20, T18S/R6E.
</P>
<P>(13) Then east-southeast along the unnamed road for 0.3 mile to its intersection with an intermittent stream.
</P>
<P>(14) Then southwesterly along the intermittent stream for 0.2 mile to its intersection with the western boundary of Section 21, T18S/R6E.
</P>
<P>(15) Then south-southwest in a straight line for approximately 0.3 mile to the intersection of Clark Road and the southern boundary of Section 21, T18S/R6E.
</P>
<P>(16) Then west-southwest along Clark Road for 0.2 mile to its intersection with an unnamed, light-duty road.
</P>
<P>(17) Then east-northeasterly along Clark Road for approximately 1,000 feet to its intersection with an unnamed light-duty road to the south.
</P>
<P>(18) Then in a straight south-southeasterly line for approximately 1.9 miles to the line's intersection with the southeast corner of section 33, T18S, R6E (this line coincides with the unnamed light duty road for approximately 0.4 miles and then with the eastern boundaries of sections 29, 32 and 33, T18S, R6E, which mark this portion of the western boundary of the historical Arroyo Seco Land Grant).
</P>
<P>(19) Then straight west along the southern boundary of section 33, T18S, R6E, to its southwest corner.
</P>
<P>(20) Then due south following the eastern boundaries of Sections 5, 8, and 17, to Arroyo Seco Road.
</P>
<P>(21) Then southwest in a straight line for approximately 1.0 mile to Bench Mark 673.
</P>
<P>(22) Then west in a straight line for approximately 1.8 miles to Bench Mark 649.
</P>
<P>(23) Then northwest in a straight line for approximately 0.2 mile to the northeast corner of Section 23, T. 19 S., R. 5 E.
</P>
<P>(24) Then west following the northern boundaries of Section 23 and 22 to the northwest corner of Section 22, T. 19 S., R. 5 E.
</P>
<P>(25) Then south in a straight line for approximately 1.0 mile to the point of beginning.
</P>
<P>(d) <I>Transition period.</I> A label containing the words “Arroyo Seco” in the brand name or as an appellation of origin approved prior to September 24, 2021 may be used on wine bottled before August 25, 2023, if the wine conforms to the standards for use of the label set forth in § 4.25 or § 4.39(i) of this chapter in effect prior to September 24, 2021.
</P>
<CITA TYPE="N">[T.D. ATF-131, 48 FR 16246, Apr. 15, 1983, as amended by T.D. TTB-49, 71 FR 34527, June 15, 2006; T.D. TTB-153, 83 FR 64276, Dec. 14, 2018; T.D. TTB-172, 86 FR 47379, Aug. 25, 2021; 86 FR 52825, Sept. 23, 2021]


</CITA>
</DIV8>


<DIV8 N="§ 9.60" NODE="27:1.0.1.1.7.3.45.40" TYPE="SECTION">
<HEAD>§ 9.60   Shenandoah Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Shenandoah Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Shenandoah Valley viticultural area are four U.S.G.S. Eastern United States 1:250,000 scale maps. The maps are titled: Roanoke (1971), Charlottesville (1956, with a revision in 1965), Cumberland (1956, revised 1969) and Baltimore (1957, revised 1978).
</P>
<P>(c) <I>Boundaries.</I> The Shenandoah Valley Viticultural area is located in Frederick, Clarke, Warren, Shenandoah, Page, Rockingham, Augusta, Rockbridge, Botetourt, and Amherst Counties in Virginia, and Berkeley and Jefferson Counties in West Virginia. The boundaries are as follows:
</P>
<P>(1) The boundary line starts at the point of the intersection of the Potomac River and the Virginia-West Virginia State line approximately eight miles east of Charlestown, West Virginia.
</P>
<P>(2) Then the boundary proceeds southwesterly approximately 14.8 miles along the State line, which essentially follows the crest of the Blue Ridge Mountains, to its intersection with the western border line of Clarke County, Virginia.
</P>
<P>(3) Then the boundary continues approximately 13.8 miles southwesterly along the county line and the crest of the Blue Ridge to its intersection with the western boundary line of Warren County, Virginia.
</P>
<P>(4) Then the boundary continues approximately 15 miles along the Warren County line to its intersection with the Skyline Drive.
</P>
<P>(5) Then the boundary continues approximately 71 miles in a southwesterly direction along the Skyline Drive and the Blue Ridge to its intersection with the Blue Ridge Parkway.
</P>
<P>(6) Then the boundary continues approximately 53 miles in a southeasterly direction along the Blue Ridge Parkway to its intersection with the James River.
</P>
<P>(7) Then the boundary proceeds approximately 44 miles along the James River in a west-northwesterly direction to its intersection with the northwest boundary line of the Jefferson National Forest near Eagle Rock.
</P>
<P>(8) Then the boundary proceeds approximately 10.5 miles in a northeasterly direction along the Jefferson National Forest line and along the crest of North Mountain to its intersection with the western boundary line of Rockbridge County.
</P>
<P>(9) Then the boundary continues approximately 23 miles along the county line in the same northeasterly direction to its intersection with the Chesapeake and Ohio Railroad.
</P>
<P>(10) Then the boundary continues approximately 23 miles along the railroad between the Great North Mountain and the Little North Mountain to its intersection with the southeastern boundary line of the George Washington National Forest at Buffalo Gap.
</P>
<P>(11) Then the boundary continues approximately 81 miles northeasterly along the George Washington National Forest Line to the Vertical Control Station, (elevation 1883), on the crest of Little North Mountain approximately 3 miles west of Van Buren Furnace.
</P>
<P>(12) Then the boundary line continues approximately 53 miles northeasterly along the crest of Little North Mountain to its intersection with the Potomac River in Fort Frederick State Park.
</P>
<P>(13) Then the boundary continues approximately 47.4 miles southeasterly along the Potomac River to the beginning point at that River's intersection with the boundary line between West Virginia and Virginia.
</P>
<CITA TYPE="N">[T.D. ATF-120, 47 FR 57698, Dec. 28, 1982, as amended by T.D. ATF-249, 52 FR 5958, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.61" NODE="27:1.0.1.1.7.3.45.41" TYPE="SECTION">
<HEAD>§ 9.61   El Dorado.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “El Dorado.”
</P>
<P>(b) <I>Approved maps.</I> The approved U.S.G.S. topographic maps (7.5 series; quadrangles) showing the boundaries of the El Dorado viticultural area, including quadrangles showing the area within the boundaries, are as follows:
</P>
<P>(1) “Pilot Hill, California,” 1954 (photorevised 1973);
</P>
<P>(2) “Auburn, California,” 1953 (photorevised 1973);
</P>
<P>(3) “Greenwood, California,” 1949 (photorevised 1973);
</P>
<P>(4) “Georgetown, California,” 1949 (photorevised 1973);
</P>
<P>(5) “Foresthill, California,” 1949 (photorevised 1973);
</P>
<P>(6) “Michigan Bluff, California,” 1952 (photorevised 1973);
</P>
<P>(7) “Tunnel Hill, California,” 1950 (photorevised 1973);
</P>
<P>(8) “Slate Mountain, California,” 1950 (photorevised 1973);
</P>
<P>(9) “Pollock Pines, California,” 1950 (photorevised 1973);
</P>
<P>(10) “Stump Spring, California,” 1951 (photorevised 1973);
</P>
<P>(11) “Caldor, California,” 1951 (photorevised 1973);
</P>
<P>(12) “Omo Ranch, California,” 1952 (photorevised 1973);
</P>
<P>(13) “Aukum, California,” 1952 (photorevised 1973);
</P>
<P>(14) “Fiddletown, California,” 1949;
</P>
<P>(15) “Latrobe, California,” 1949 (photorevised 1973);
</P>
<P>(16) “Shingle Springs, California,” 1949;
</P>
<P>(17) “Coloma, California,” 1949 (photorevised 1973);
</P>
<P>(18) “Garden Valley, California,” 1949 (photorevised 1973);
</P>
<P>(19) “Placerville, California,” 1949 (photorevised 1973);
</P>
<P>(20) “Camino, California,” 1952 (photorevised 1973);
</P>
<P>(21) “Sly Park, California,” 1952 (photorevised 1973);
</P>
<P>(c) <I>Boundaries.</I> The boundaries of the El Dorado viticultural area which is located in El Dorado County, California, are as follows:
</P>
<P>(1) The beginning point of the boundaries is the intersection of the North Fork of the American River (also the boundary line between El Dorado and Placer Counties) and the township line “T. 11 N./T. 12 N.” (“Pilot Hill” Quadrangle);
</P>
<P>(2) Thence northeast along the North Fork of the American River to its divergence with the Middle Fork of the American River, continuing then, following the Middle Fork of the American River to its intersection with the Rubicon River which continues as the boundary line between El Dorado and Placer Counties (“Auburn,” “Greenwood,” “Georgetown,” “Foresthill,” and “Michigan Bluff” Quadrangles);
</P>
<P>(3) Thence southeast along the Rubicon River to its intersection with the range line “R. 11 E./R. 12 E.” (“Tunnel Hill” Quadrangle);
</P>
<P>(4) Thence south along the range line through T. 13 N. and T. 12 N., to its intersection with the township line “T. 12 N./T. 11 N.” (“Tunnel Hill” and “Slate Mountain” Quadrangles);
</P>
<P>(5) Thence east along the range line to its intersection with the range line “R. 12 E./R. 13 E.” (“Slate Mountains” and “Pollock Pines” Quadrangles);
</P>
<P>(6) Thence south along the range line to its intersection with the township line “T. 11 N./T. 10 N.” (“Pollock Pines” Quadrangle);
</P>
<P>(7) Thence east along the township line to its intersection with the range line “R. 13 E./R. 14 E.” (“Pollock Pines” and “Stump Spring” Quadrangles);
</P>
<P>(8) Thence south along the range line through T. 10 N., T. 9 N., and T. 8 N. to its intersection with the South Fork of the Cosumnes River (also the boundary line between El Dorado and Amador Counties) (“Stump Spring” and “Caldor” Quadrangles);
</P>
<P>(9) Thence west and northwest along the South Fork of the Cosumnes River to its intersection with range line “R. 11 E./R. 10 E.” (“Caldor,” “Omo Ranch,” “Aukum,” and “Fiddletown” Quadrangles);
</P>
<P>(10) Thence north along the range line to its intersection with the township line “T. 8 N./T. 9 N.” (“Fiddletown” Quadrangle);
</P>
<P>(11) Thence west along the township line to its intersection with range line “R. 10 E./R. 9 E.” (“Fiddletown” and “Latrobe” Quadrangles);
</P>
<P>(12) Thence north along the range line to its intersection with U.S. Route 50;
</P>
<P>(13) Thence west along U.S. Route 50 to its intersection with Cameron Park Drive;
</P>
<P>(14) Thence north along Cameron Park Drive to its intersection with Green Valley Road;
</P>
<P>(15) Thence east along Green Valley Road to its intersection with range line R.10 E/ R.9 E;
</P>
<P>(16) Thence north along the range line to its intersection with the township line T.10 N./ T.11 N;
</P>
<P>(17) Thence east along the township line approximately 4,000 feet to its intersection with the range line “R. 9 E./R. 10 E.” (“Coloma” Quadrangle);
</P>
<P>(18) Thence north on the range line to its intersection with the township line “T. 11 N./T. 12 N.” (“Coloma” Quadrangle); and
</P>
<P>(19) Thence west along the township line to the point of beginning (“Coloma” and “Pilot Hill” Quadrangles).
</P>
<CITA TYPE="N">[T.D. ATF-152, 48 FR 46520, Oct. 13, 1983, as amended by T.D. ATF-254, 52 FR 23651, June 24, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.62" NODE="27:1.0.1.1.7.3.45.42" TYPE="SECTION">
<HEAD>§ 9.62   Loramie Creek.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Loramie Creek.”
</P>
<P>(b) <I>Approved map.</I> The approved map for the Loramie Creek viticultural area is the U.S.G.S. map entitled “Fort Loramie Quadrangle, Ohio—Shelby Co.,” 7.5 minute series (topographic), 1961 (photoinspected 1973).
</P>
<P>(c) <I>Boundaries.</I> The Loramie Creek viticultural area is located entirely within Shelby County, Ohio. The boundaries are as follows:
</P>
<P>(1) From the beginning point of the boundary at the intersection of State Route 47 and Wright-Puthoff Road, the boundary runs southward on Wright-Puthoff Road for a distance of 1
<FR>3/8</FR> miles to the intersection of the Wright-Puthoff Road with Consolidated Railroad Corporation (indicated on the U.S.G.S. map as New York Central Railroad);
</P>
<P>(2) Then along the Consolidated Railroad Corporation right-of-way in a southwesterly direction for a distance of 2
<FR>1/8</FR> miles to the intersection of the Consolidated Railroad Corporation right-of-way with Loramie Creek;
</P>
<P>(3) Then upstream along Loramie Creek in a northwesterly direction for a distance of approximately 3
<FR>1/2</FR> miles to the intersection of Loramie Creek and State Route 47;
</P>
<P>(4) Then eastward on State Route 47 for a distance of approximately 4
<FR>1/8</FR> miles to the beginning point of State Route 47 and Wright-Puthoff Road.
</P>
<CITA TYPE="N">[T.D. ATF-118, 47 FR 53356, Nov. 26, 1982]


</CITA>
</DIV8>


<DIV8 N="§ 9.63" NODE="27:1.0.1.1.7.3.45.43" TYPE="SECTION">
<HEAD>§ 9.63   Linganore.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Linganore.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Linganor viticultural area are five U.S.G.S topographic maps. They are—
</P>
<P>(1) “Walkersville Quadrangle, Maryland—Frederick Co.”, 7.5 minute series, 1953 (Photorevised 1979);
</P>
<P>(2) “Libertytown Quadrangle, Maryland”, 7.5 minute series, 1944 (Photorevised 1971);
</P>
<P>(3) “Damascus Quadrangle, Maryland”, 7.5 minute series, 1944 (Photorevised 1979);
</P>
<P>(4) “Winfield Quadrangle, Maryland”, 7.5 minute series, 1950 (Photorevised 1979); and
</P>
<P>(5) “Union Bridge Quadrangle, Maryland,” 7.5 minute series, 1953 (Photorevised 1971).
</P>
<P>(c) <I>Boundaries.</I> The Linganore viticultural area is located in north central Maryland and encompasses parts of Frederick and Carroll Counties. From the beginning point lying at the confluence of Linganore Creek and the Monocacy River, on the Walkersville Quadrangle map, the boundary runs—
</P>
<P>(1) South-southeasterly 5,000 feet in a straight line to the point lying approximately 1,000 feet south of Interstate Highway 70 at the intersection of two unnamed light duty roads in the town of Bartonsville;
</P>
<P>(2) Then east-southeasterly 15,500 feet in a straight line to the point lying at the intersection of Mussetter Road and latitude line 39 degrees 22 minutes 30 seconds;
</P>
<P>(3) Then east-northeasterly 8,125 feet in a straight line to the point lying at the intersection of Mill Road and State Highway 144;
</P>
<P>(4) Then easterly along State Highway 144 on the Walkersville Quadrangle, Libertytown Quadrangle, and Damascus Quadrangle maps to the point of intersection with State Highway 27, approximately midway between the towns of Ridgeville and Parrsville, on the Damascus Quadrangle map;
</P>
<P>(5) Then northeasterly along State Highway 27 on the Damascus Quadrangle, Libertytown Quadrangle, and Winfield Quadrangle maps to the point of intersection with State Highway 26 in the town of Taylorsville on the Winfield Quadrangle map;
</P>
<P>(6) Then northerly 2,750 feet in a straight line to the point on a hill identified as having an elevation of 850 feet;
</P>
<P>(7) Then northwesterly 21,000 feet in a straight line to the point lying at the intersection of State Highway 31 and latitude line 39 degrees 30 minutes on the Libertytown Quadrangle and Union Bridge Quadrangle maps;
</P>
<P>(8) Then westerly 15,625 feet along latitude line 39 degrees 30 minutes to the point of intersection with Copper Mine Road;
</P>
<P>(9) Then northwesterly along Copper Mine Road on the Union Bridge Quadrangle map to the point of intersection with longitude line 77 degrees 15 minutes;
</P>
<P>(10) Then southerly 5,250 feet along longitude line 77 degrees 15 minutes to the point of intersection with latitude line 39 degrees 30 minutes on the Union Bridge Quadrangle and Walkersville Quadrangle maps;
</P>
<P>(11) Then southwesterly 46,750 feet in a straight line on the Walkersville Quadrangle map to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-140, 48 FR 37374, Aug. 18, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 9.64" NODE="27:1.0.1.1.7.3.45.44" TYPE="SECTION">
<HEAD>§ 9.64   Dry Creek Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Dry Creek Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Dry Creek Valley viticultural area are six U.S.G.S. topographic maps. They are—
</P>
<P>(1) “Geyserville Quadrangle, California—Sonoma County,” 7.5 minute series, 1955 (Photorevised 1975);
</P>
<P>(2) “Jimtown Quadrangle, California—Sonoma County,” 7.5 minute series, 1955 (Photorevised 1975);
</P>
<P>(3) “Healdsburg Quadrangle, California—Sonoma County,” 7.5 minute series, 1955 (Photorevised 1980);
</P>
<P>(4) “Guerneville Quadrangle, California—Sonoma County,” 7.5 minute series, 1955;
</P>
<P>(5) “Cazadero Quadrangle, California—Sonoma County,” 7.5 minute series, 1978; and
</P>
<P>(6) “Warm Springs Dam Quadrangle (formerly ‘Skaggs Springs Quadrangle’), California—Sonoma County,” 7.5 minute series, 1978.
</P>
<P>(c) <I>Boundaries.</I> The Dry Creek Valley viticultural area is located in north central Sonoma County, California. From the beginning point, lying at the intersection of latitude line 38 degrees 45 minutes and the northwest corner of Section 5, T. 10 N., R. 10 W. on the “Geyserville Quadrangle” map, the boundary runs— 
</P>
<P>(1) Southeasterly in a straight line approximately 11,000 feet (closely following the ridge line) to the northeast corner of Section 9, T. 10 N., R. 10 W.;
</P>
<P>(2) Then southerly along the east line of Section 9 to the southeast corner thereof;
</P>
<P>(3) Then S. 74 degrees, E. 2,800 feet in a straight line to the northeasterly tip of a small unnamed lake;
</P>
<P>(4) Then N. 57 degrees, E. 2,300 feet in a straight line to the southeast corner of Section 10, T. 10 N., R. 10 W.;
</P>
<P>(5) Then S. 16 degrees, E. 1,800 feet in a straight line to the point on a peak identified as having an elevation of 664 feet;
</P>
<P>(6) Then S. 55 degrees, E. 7,900 feet in a straight line to the most northerly point on the northeasterly line of “Olive Hill” cemetery lying on the easterly side of Canyon Road;
</P>
<P>(7) Then southeasterly along the northeasterly line of “Olive Hill” cemetery to the most easterly point thereon;
</P>
<P>(8) Then S. 2 degrees, E. 3,100 feet in a straight line to the point in the westerly fork of Wood Creek lying at the westerly terminus of a dirt road;
</P>
<P>(9) Then southerly 3,000 feet along the west fork of Wood Creek to the point lying 400 feet north of the point on a peak identified as having an elevation of 781 feet;
</P>
<P>(10) Then southerly 400 feet in a straight line to the point on a peak identified as having an elevation of 781 feet;
</P>
<P>(11) Then S. 50
<FR>1/2</FR> degrees, E. 15,500 feet in a straight line to the point lying at the intersection of Lytton Creek and the township line common to T. 9 N. and T. 10 N. in R. 9 W.;
</P>
<P>(12) Then southerly along the meanders of Lytton Creek to the point of intersection with Lytton Springs Road in T. 9 N., R. 9 W.;
</P>
<P>(13) Then easterly along Lytton Springs Road to the point of intersection with U.S. Highway 101 (a.k.a. Redwood Highway) on the “Jimtown Quadrangle” map;
</P>
<P>(14) Then southerly along U.S. Highway 101 to the point of intersection with an unnamed light duty road (known locally as Chiquita Road) on the “Geyserville Quadrangle” map;
</P>
<P>(15) Then easterly along the unnamed light duty road to the point of intersection with an unnamed heavy duty road (known locally as Healdsburg Avenue) on the “Jimtown Quadrangle” map;
</P>
<P>(16) Then southerly along the unnamed heavy duty road through the town of Healdsburg to the point of intersection with the Russian River on the “Healdsburg Quadrangle” map;
</P>
<P>(17) Then southerly along the meanders of the Russian River to the confluence of Dry Creek;
</P>
<P>(18) Then west-southwesterly 1,300 feet in a straight line to an unnamed light duty road (known locally as Foreman Lane);
</P>
<P>(19) Then westerly along the unnamed light duty road, crossing West Dry Creek Road and passing Felta School, to the point of intersection with Felta Creek on the “Guerneville Quadrangle” map;
</P>
<P>(20) Then southwesterly 18,000 feet along the meanders of Felta Creek to the point lying at the intersection of three springs in T. 8 N., R. 10 W., approximately 300 feet east from the word “Springs”;
</P>
<P>(21) Then S. 58 degrees, W. 15,000 feet in a straight line to the southwest corner of Section 9, T. 8 N., R. 10 W.;
</P>
<P>(22) Then northerly along the west line of Sections 9 and 4, T. 8 N., R. 10 W., continuing along the west line of Section 33, T. 9 N., R. 10 W. to the northwest corner thereof;
</P>
<P>(23) Then westerly along the south line of Sections 29 and 30, T. 9 N., R. 10 W. to the southwest corner of Section 30 on the “Cazadero Quadrangle” map;
</P>
<P>(24) Then northerly along the west line of Sections 30 and 19, T. 9 N., R. 10 W. to the northwest corner of Section 19;
</P>
<P>(25) Then westerly along the south line of Section 13, T. 9 N., R. 11 W. to the southwest corner thereof;
</P>
<P>(26) Then southwesterly 14,200 feet in a straight line to the northeast corner of Section 20, T. 9 N., R. 11 W.;
</P>
<P>(27) Then westerly along the north line of Section 20 to the northwest corner thereof;
</P>
<P>(28) Then northerly along the east line of Sections 18, 7, and 6, T. 9 N., R. 11 W., continuing along the east line of Sections 31, 30, 19, 18, 7, and 6, T. 10 N., R. 11 W. to the point of intersection with latitude line 38 degrees 45 minutes on the “Warm Springs Dam Quadrangle” map; and
</P>
<P>(29) Then easterly along latitude line 38 degrees 45 minutes to the point of beginning on the “Geyserville Quadrangle” map.
</P>
<CITA TYPE="N">[T.D. ATF-137, 48 FR 35397, Aug. 4, 1983, as amended by T.D. ATF-468, 66 FR 50565, Oct. 4, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 9.65" NODE="27:1.0.1.1.7.3.45.45" TYPE="SECTION">
<HEAD>§ 9.65   North Fork of Roanoke.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “North Fork of Roanoke.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the North Fork of Roanoke viticultural area are six U.S.G.S. Virginia, 7.5 minute series maps. They are:
</P>
<P>(1) McDonalds Mill Quadrangle, 1965;
</P>
<P>(2) Glenvar Quadrangle, 1965;
</P>
<P>(3) Elliston Quadrangle, 1965;
</P>
<P>(4) Ironto Quadrangle, 1965;
</P>
<P>(5) Blacksburg Quadrangle, 1965; and
</P>
<P>(6) Newport Quadrangle, 1965.
</P>
<P>(c) <I>Boundaries.</I> The North Fork of Roanoke viticultural area is located in parts of Roanoke and Montgomery Counties in southern Virginia.
</P>
<P>(1) The point of the beginning is in the north at the intersection of State Routes 785 and 697 in Roanoke County.
</P>
<P>(2) Then the boundary follows State Route 697 northeast over Crawford Ridge to the intersection at State Route 624.
</P>
<P>(3) Then the boundary turns southwest on State Route 624 along the boundary of the Jefferson National Forest and then continues across the Montgomery County line to U.S. 460 (business).
</P>
<P>(4) Then the boundary follows U.S. Route 460 (business) south through the town of Blacksburg.
</P>
<P>(5) Then the boundary continues on U.S. Route 460 (bypass) to the intersection of U.S. Route 460 East, where it turns east for approximately one mile to the intersection of U.S. Interstate Highway 81 at Interchange 37.
</P>
<P>(6) Then the boundary continues northeast on Interstate Highway 81 to its intersection with State Route 603 at interchange 38.
</P>
<P>(7) Then the boundary continues northwest on State Route 603 to its intersection with State Route 629.
</P>
<P>(8) Then the boundary follows State Route 629 (which later becomes State Route 622 north of Brandshaw Creek) 2 miles across the Roanoke County line to where it intersects the Chesapeake and Potomac Telephone Company right-of-way.
</P>
<P>(9) Then the boundary turns northwest along the C &amp; P right-of-way over Pearis Mountain to the point where the right-of-way intersects State Route 785, one quarter mile northeast of the intersections of State Routes 785 and 697.
</P>
<P>(10) Then the boundary follows State Route 784 back to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-129, 48 FR 16250, Apr. 15, 1983, as amended by T.D. ATF-249, 52 FR 5958, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.66" NODE="27:1.0.1.1.7.3.45.46" TYPE="SECTION">
<HEAD>§ 9.66   Russian River Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Russian River Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Russian River Valley viticultural area are 11 United States Geological Survey 1:24,000 Scale topographic maps. They are titled:
</P>
<P>(1) Healdsburg, California Quadrangle—Sonoma Co., 7.5 Minute Series, edition of 1993;
</P>
<P>(2) Guerneville, California Quadrangle—Sonoma Co., 7.5 Minute Series, edition of 1993;
</P>
<P>(3) Cazadero, California Quadrangle—Sonoma Co., 7.5 Minute Series, edition of 1978;
</P>
<P>(4) Duncans Mills California Quadrangle—Sonoma Co., 7.5 Minute Series, edition of 1979;
</P>
<P>(5) Camp Meeker, California Quadrangle—Sonoma Co., 7.5 Minute Series, edition of 1995;
</P>
<P>(6) Valley Ford, California Quadrangle, 7.5 Minute Series, edition of 1954; photorevised 1971;
</P>
<P>(7) Two Rock, California Quadrangle, 7.5 Minute Series, edition of 1954; photorevised 1971;
</P>
<P>(8) Sebastopol, California Quadrangle—Sonoma Co., 7.5 Minute Series, edition of 1954; photorevised 1980;
</P>
<P>(9) Santa Rosa, California Quadrangle—Sonoma Co., 7.5 Minute Series, edition of 1954; 
</P>
<P>(10) Mark West Springs, California Quadrangle, 7.5 Minute Series, edition of 1998;
</P>
<P>(11) Jimtown, California Quadrangle—Sonoma Co., 7.5 Minute Series, edition of 1993; and
</P>
<P>(12) Cotati Quadrangle, California—Sonoma Co., scale 1:24 000, 1954, photorevised 1980.
</P>
<P>(c) <I>Boundaries.</I> The Russian River Valley viticultural area is located in Sonoma County, California.
</P>
<P>(1) Starting point Healdsburg map-Healdsburg Avenue Bridge over the Russian River at Healdsburg. Proceed south along Russian River to the point where Russian River and Dry Creek converge, from this point proceed west in a straight line to Forman Lane.
</P>
<P>(2) Proceed west along Foreman Lane to where it crosses Westside Road and becomes Felta School Road.
</P>
<P>(3) Proceed west on Felta School Road to the point where it crosses Felta Creek.
</P>
<P>(4) Proceed 18000′ up Felta Creek to its headwaters as shown on the <I>Guerneville, map</I> as “Springs.”
</P>
<P>(5) Proceed southwest in a straight line 58 degrees W 27000′ to an intersection with Hulbert Creek on the Cazadero map.
</P>
<P>(6) Proceed south and southeast along Hulbert Creek to the point where it intersects California Hwy 116 on the Duncan Mills map.
</P>
<P>(7) Proceed in a westerly direction along California Hwy 116 to Monte Rio where it intersects the Bohemian Hwy.
</P>
<P>(8) Proceed southeast along the Bohemian Highway, crossing over the Camp Meeker map, to the town of Freestone, where the highway intersects at BM 214 with an unnamed medium-duty road (known locally as Bodega Road, section 12, T6N, R10W, on the Valley Ford map).
</P>
<P>(9) Proceed 0.9 mile northeast on Bodega Road to its intersection, at BM 486, with Jonvive Road to the north and an unnamed light duty road to the south, (known locally as Barnett Valley Road, T6N, R9W, on the Camp Meeker map).
</P>
<P>(10) Proceed 2.2 miles south, and then east, on Barnett Valley Road, crossing over the Valley Ford map, to its intersection with Burnside Road in section 17, T6N, R9W, on the Two Rock map.
</P>
<P>(11) Proceed 3.3 miles southeast on Burnside Road to its intersection with an unnamed medium duty road at BM 375, T6N, R9W, on the Two Rock map.
</P>
<P>(12) Proceed 0.6 mile straight southeast to an unnamed 610-foot elevation peak, 1.5 miles southwest of Canfield School, T6N, R9W, on the Two Rock map.
</P>
<P>(13) Proceed 0.75 mile straight east-southeast to an unnamed 641-foot elevation peak, 1.4 miles south-southwest of Canfield School, T6N, R9W, on the Two Rock map.
</P>
<P>(14) Proceed 0.85 mile straight northeast to the intersection with an unnamed intermittent stream and Canfield Road; continue 0.3 mile straight in the same northeast line of direction to its intersection with the common boundary of Ranges 8 and 9, just west of an unnamed unimproved dirt road, T6N, on the Two Rock map.
</P>
<P>(15) Proceed southeast 0.5 mile, crossing over the end of an unnamed, unimproved dirt road to an unnamed 524-foot elevation peak, T6N, R8W, on the Two Rock map.
</P>
<P>(16) Proceed southeast 0.75 mile in a straight line to the intersection of an unnamed unimproved dirt road (leading to four barn-like structures) and an unnamed medium-duty road (known locally as Roblar Road), T6N, R8W, on the Two Rock map.
</P>
<P>(17) Proceed south 0.5 mile to an unnamed 678-foot elevation peak just slightly north of the intersection of T5N and T6N, R8W, on the Two Rock map.
</P>
<P>(18) Proceed east-southeast 0.8 mile to an unnamed peak with a 599-foot elevation, T5N, R8W, on the Two Rock map.
</P>
<P>(19) Proceed east-southeast 0.7 mile to an unnamed peak with a 604-foot elevation, T5N, R8W, on the Two Rock map.
</P>
<P>(20) Proceed east-southeast 0.9 mile to the intersection of a short, unnamed light-duty road leading past a group of barn-like structures and a medium duty road known locally as Meacham Road, and cross on to the Cotati map T5N, R8W.
</P>
<P>(21) Proceed north-northeast 0.75 mile to the intersection of Meacham and Stony Point Roads, T5N, R8W, on the Cotati map.
</P>
<P>(22) Proceed southeast 1.1 miles along Stony Point Road to the point where the 200-foot elevation contour line intersects Stony Point Road, T5N, R8W, on the Cotati map.
</P>
<P>(23) Proceed north-northeast 0.5 mile to the point where an unnamed intermittent stream intersects U.S. 101, T5N, R8W, on the Cotati map.
</P>
<P>(24) Proceed north 4.25 miles along U.S. 101 to the point where Santa Rosa Avenue exits U.S. 101 (approximately 0.5 mile north of the Wilfred Avenue overpass) T6N, R8W, on the Cotati map.
</P>
<P>(25) Proceed north 1.1 miles along Santa Rosa Avenue to its intersection with Todd Road, crossing on to the Santa Rosa map, T6N, R8W, on the Santa Rosa map.
</P>
<P>(26) Proceed 5.8 miles generally north along Santa Rosa Avenue, which becomes Mendocino Avenue, to its intersection with an unnamed secondary road, known locally as Bicentennial Way, 0.3 mile north-northwest of BM 161 on Mendocino Avenue, section 11, T7N, R8W, on the Santa Rosa map.
</P>
<P>(27) Proceed 2.5 miles straight north, crossing over the 906-foot elevation peak in section 35 of the Santa Rosa map, to its intersection with Mark West Springs Road and the meandering 280-foot elevation in section 26, T8N, R8W, of the Mark West Springs map.
</P>
<P>(28) Proceed 4.8 miles north-northwest along Mark West Springs Road, which becomes Porter Creek Road, to its intersection with Franz Valley Road, a light-duty road to the north of Porter Creek Road, in section 12, T8N, R8W, on the Mark West Springs map.
</P>
<P>(29) Proceed in a northerly direction along Franz Valley Road to the northerly most crossing of Franz Creek.
</P>
<P>(30) Proceed west along Franz Creek until it intersects the line separating Section 21 and Section 22.
</P>
<P>(31) Proceed south on this line separating Section 21 and 22 to the corner common to Section 21 and 22 and Section 27 and 28.
</P>
<P>(32) Proceed west from the common corner of Section 21 and 22 and 27 and 28 and in a straight line to the peak of Chalk Hill on the <I>Healdsburg map.</I>
</P>
<P>(33) Proceed west from the peak of Chalk Hill in a straight line to the point where Brooks Creek joins the Russian River.
</P>
<P>(34) Proceed north west in a straight line 8000′ to a peak marked 772′ elv. on the <I>Jimtown map.</I>
</P>
<P>(35) Proceed north west in a straight line from hill top 772′ elv. to hill top 596′ elv.
</P>
<P>(36) Proceed north west in a straight line from hill top 596′ elv. to hill top 516′ elv.
</P>
<P>(37) Proceed north west in a straight line from hill top 516′ elv. to hill top 530′ elv.
</P>
<P>(38) Proceed west in a straight line from hill top 530′ elv. to hill top 447′ elv.
</P>
<P>(39) Proceed west in a straight line from hill top 447′ elv. to the point where Alexander Valley Road meets Healdsburg Avenue.
</P>
<P>(40) Proceed south along Healdsburg Avenue through the city of Healdsburg on the <I>Healdsburg map</I> to the point where it crosses the Russian River at the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-159, 48 FR 48813, Oct. 21, 1983, as amended by T.D. ATF-249, 52 FR 5959, Feb. 27, 1987; T.D. TTB-7, 68 FR 67370, Dec. 2, 2003; T.D. TTB-32, 70 FR 53299, Sept. 8, 2005; T.D. TTB-97, 76 FR 70877, Nov. 16, 2011; T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.67" NODE="27:1.0.1.1.7.3.45.47" TYPE="SECTION">
<HEAD>§ 9.67   Catoctin.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Catoctin.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Catoctin viticultural area are 12 U.S.G.S. maps in the scale 1:24,000. They are—
</P>
<P>(1) “Point of Rocks Quadrangle, Maryland—Virginia,” 7.5 minute series, 1970;
</P>
<P>(2) “Buckeystown Quadrangle, Maryland,” 7.5 minute series, 1952 (Photorevised 1971);
</P>
<P>(3) “Frederick Quadrangle, Maryland,” 7.5 minute series, 1953 (Photorevised 1980);
</P>
<P>(4) “Catoctin Furnace Quadrangle, Maryland,” 7.5 minute series, 1953 (Photorevised 1979);
</P>
<P>(5) “Blue Ridge Summit Quadrangle, Maryland—Pennsylvania,” 7.5 minute series, 1953 (Photorevised 1971);
</P>
<P>(6) “Emmitsburg Quadrangle, Maryland—Pennsylvania,” 7.5 minute series, 1953 (Photorevised 1971);
</P>
<P>(7) “Smithsburg Quadrangle, Maryland—Pennsylvania,” 7.5 minute series, 1953 (Photorevised 1971);
</P>
<P>(8) “Myersville Quadrangle, Maryland,” 7.5 minute series, 1953 (Photorevised 1971);
</P>
<P>(9) “Funkstown Quadrangle, Maryland,” 7.5 minute series, 1953 (Photorevised 1971);
</P>
<P>(10) “Keedysville Quadrangle, Maryland—West Virginia,” 7.5 minute series, 1978;
</P>
<P>(11) “Harpers Ferry Quadrangle, Virginia—Maryland—West Virginia,” 7.5 minute series, 1969; and
</P>
<P>(12) “Charles Town Quadrangle, West Virginia—Virginia—Maryland,” 7.5 minute series, 1978;
</P>
<P>(13) “Middletown Quadrangle, Maryland,” 7.5 minute series, 1953 (photorevised 1979);
</P>
<P>(c) <I>Boundaries.</I> The Catoctin viticultural area is located in western Maryland and encompasses parts of Frederick and Washington Counties. From the beginning point at the point where U.S. Highway 15 crosses the Potomac River and enters the land mass of Maryland on the “Point of Rocks Quadrangle” map, the boundary runs—
</P>
<P>(1) Northerly 1,100 feet in a straight line to the point of intersection with a 500-foot contour line;
</P>
<P>(2) Then northeasterly along the meanders of the 500-foot contour line on the “Point of Rocks Quadrangle,” “Buckeystown Quadrangle,” “Frederick Quadrangle,” “Catoctin Furnace Quadrangle,” “Blue Ridge Summit Quadrangle,” and “Emmitsburg Quadrangle” maps to the point of intersection with the Maryland—Pennsylvania State line on the “Emmitsburg Quadrangle” map;
</P>
<P>(3) Then west along the Maryland-Pennsylvania State line on the “Emmitsburg Quadrangle,” “Blue Ridge Summit Quadrangle,” and “Smithsburg Quadrangle” maps to the point of intersection with the first 800-foot contour line lying west of South Mountain on the “Smithsburg Quadrangle” map;
</P>
<P>(4) Then southwesterly along the meanders of the 800-foot contour line on the “Smithburg Quadrangle,” “Myersville Quadrangle,” “Funkstown Quadrangle,” and “Keedysville Quadrangle” maps to the point of intersection with an unnamed light duty road (known locally as Clevelandville Road) north of the town of Clevelandville on the “Keedysville Quadrangle” map;
</P>
<P>(5) Then southerly along the unnamed light duty road to the point of intersection with Reno Monument Road;
</P>
<P>(6) Then southwesterly 13,500 feet in a straight line to the point lying at the intersection of Highway 67 and Millbrook Road;
</P>
<P>(7) Then westerly along Millbrook Road to the point of intersection with Mount Briar Road;
</P>
<P>(8) Then northerly along Mount Briar Road to the point of intersection with a 500-foot contour line;
</P>
<P>(9) Then northerly along the 500-foot contour line to the point of intersection with Red Hill Road;
</P>
<P>(10) Then southerly along the 500-foot contour line to the point of intersection with Porterstown Road;
</P>
<P>(11) Then south-southwesterly 29,000 feet in a straight line to the most eastern point on the boundary line of the Chesapeake and Ohio Canal National Historical Park lying north of the town of Dargan;
</P>
<P>(12) Then southwesterly 7,500 feet in a straight line to the point of the “Harpers Ferry Quadrangle” map lying approximately 600 feet northwest of Manidokan Camp at the confluence of an unnamed stream and the Potomac River; and
</P>
<P>(13) Then easterly along the meanders of the Potomac River on the “Harpers Ferry Quadrangle,” “Charles Town Quadrangle,” and “Point of Rocks Quadrangle” maps to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-154, 48 FR 46523, Oct. 13, 1983, as amended by T.D. ATF-249, 52 FR 5959, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.68" NODE="27:1.0.1.1.7.3.45.48" TYPE="SECTION">
<HEAD>§ 9.68   Merritt Island.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Merritt Island.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Merritt Island viticultural area are two U.S.G.S. maps, 7.5 minute series. They are entitled:
</P>
<P>(1) “Clarksburg Quadrangle, California,” 1967 (Photo revised 1980); and
</P>
<P>(2) “Courtland Quadrangle, California,” 1978.
</P>
<P>(c) <I>Boundaries.</I> The Merritt Island viticultural area is located in Yolo County, California, six miles south of the City of Sacramento. The boundaries of the Merritt Island viticultural area, using landmarks and points of reference found on the appropriate U.S.G.S. maps, are as follows:
</P>
<P>(1) Starting at the most southernly point, the intersection of Sutter Slough with the Sacramento River.
</P>
<P>(2) Then west along the course of Sutter Slough for 0.54 miles until it intersects Elk Slough.
</P>
<P>(3) Then northeast along the course of Elk Slough for 9.58 miles to the community of Clarksburg and the intersection of Sacramento River.
</P>
<P>(4) Then southeasterly along the course of the Sacramento River for 7.8 miles to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-134, 48 FR 22146, May 17, 1983, as amended by T.D. ATF-249, 52 FR 5959, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.69" NODE="27:1.0.1.1.7.3.45.49" TYPE="SECTION">
<HEAD>§ 9.69   Yakima Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Yakima Valley.”
</P>
<P>(b) <I>Approved maps.</I> The United States Geological Survey (USGS) maps used to determine the boundary of the Yakima Valley viticultural area are titled:
</P>
<P>(1) Walla Walla, Washington (1:250,000 scale), 1953; limited revision 1963;
</P>
<P>(2) Yakima, Washington (1:250,000 scale), 1958; revised 1971;
</P>
<P>(3) Benton City, WA (1:24,000 scale), 2013;
</P>
<P>(4) Badger Mountain, Washington (1:24,000 scale), 2013; and
</P>
<P>(5) Richland, Washington (1:24,000 scale), 2014.
</P>
<P>(c) <I>Boundaries.</I> The Yakima Valley viticultural area is located in Benton and Yakima Counties, Washington. The beginning point is found on the “Yakima, Washington,” U.S.G.S. map at the Wapato Dam located on the Yakima River.
</P>
<P>(1) Then east following the crest of the Rattlesnake Hills across Elephant Mountain, Zillah Peak, High Top (elevation 3031 feet), and an unnamed mountain (elevation 3629 feet) to the Bennett Ranch;
</P>
<P>(2) Then due east approximately 0.2 mile to the boundary of the Hanford Atomic Energy Commission Works;
</P>
<P>(3) Then southeast following the boundary of the Hanford AEC Works along the Rattlesnake Hills to the Yakima River;
</P>
<P>(4) Then southeast, crossing onto the Benton City map, to the top of Red Mountain;
</P>
<P>(5) Then southeast to a point on East Kennedy Road approximately 2,500 feet east of an intermittent stream flowing north into Lost Lake;
</P>
<P>(6) Then southeast across the top of Candy Mountain, crossing onto the Badger Mountain map, and continuing to the intersection with the southernmost point of an unnamed road known locally as Arena Road; then
</P>
<P>(7) Proceed north for 0.45 mile along Arena Road, crossing onto the Richland map, to the intersection with the 670-foot elevation contour; then
</P>
<P>(8) Proceed generally east for 0.4 mile along the elevation contour to the intersection with Dallas Road; then
</P>
<P>(9) Proceed south in a straight line for 0.5 mile, crossing onto the Badger Mountain map, to the intersection with Interstate 182; then
</P>
<P>(10) Proceed southeast in a straight line, crossing onto the Walla Walla map, to the top of Badger Mountain;
</P>
<P>(11) Then due south for approximately 4.9 miles to the 1000 foot contour line immediately south of the Burlington Northern Railroad (indicated on map as the Northern Pacific Railroad);
</P>
<P>(12) Then west following the 1000 foot contour line to its intersection with U.S. Highway 97 immediately west of Hembre Mountain;
</P>
<P>(13) Then west following the Toppenish Ridge, across an unnamed mountain (elevation 2172 feet), an unnamed mountain (elevation 2363 feet), to the peak of Toppenish Mountain (elevation 3609 feet);
</P>
<P>(14) Then northwest in straight line for approximately 9.3 miles to the lookout tower at Fort Simcoe Historical State Park;
</P>
<P>(15) Then north in a straight line for approximately 11.7 miles to an unnamed peak, (elevation 3372 feet); and
</P>
<P>(16) Then east following Ahtanum Ridge, crossing unnamed peaks of 2037 feet elevation, 2511 feet elevation, 2141 feet elevation, to the Wapato Dam at the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-128, 48 FR 14375, Apr. 4, 1983, as amended by T.D. TTB-163, 85 FR 60361, Sept. 25, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 9.70" NODE="27:1.0.1.1.7.3.45.50" TYPE="SECTION">
<HEAD>§ 9.70   Northern Sonoma.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Northern Sonoma.”
</P>
<P>(b) <I>Approved Maps.</I> The nine United States Geological Survey maps used to determine the boundary of the Northern Sonoma viticultural area are titled:
</P>
<P>(1) Sonoma County, California, scale 1:100 000, 1970;
</P>
<P>(2) Asti Quadrangle, California, scale 1:24 000, 1959, photorevised 1978;
</P>
<P>(3) Jimtown Quadrangle, California—Sonoma County; scale 1:24 000, 1955, photorevised 1975;
</P>
<P>(4) Camp Meeker Quadrangle, California—Sonoma Co., scale 1:24 000, 1954, photorevised 1971;
</P>
<P>(5) Valley Ford Quadrangle, California, scale 1:24 000, 1954, photorevised 1971;
</P>
<P>(6) Two Rock Quadrangle, California, scale 1:24 000, 1954, photorevised 1971;
</P>
<P>(7) Cotati Quadrangle, California—Sonoma Co., scale 1:24 000, 1954, photorevised 1980;
</P>
<P>(8) Santa Rosa Quadrangle, California—Sonoma Co., scale 1:24 000, 1954, photorevised 1980; and
</P>
<P>(9) Mark West Springs Quadrangle, California, scale 1:24 000, 1993.
</P>
<P>(c) <I>Boundary.</I> The Northern Sonoma viticultural area is located in Sonoma County, California. The boundary description includes (in parentheses) the local names of roads that are not identified by name on the map.
</P>
<P>(1) The beginning point is on the Sonoma County, map in the town of Monte Rio at the intersection of the Russian River and a secondary highway (Bohemian Highway);
</P>
<P>(2) The boundary follows this secondary highway (Bohemian Highway), southeasterly parallel to Dutch Bill Creek, through the towns of Camp Meeker, Occidental, and Freestone, and then northeasterly to its intersection with an unnamed secondary highway designated as State Highway 12 (Bodega Road) at BM 214, as shown on the Valley Ford map.
</P>
<P>(3) The boundary follows Bodega Road northeasterly 0.9 miles on the Valley Ford map; then onto the Camp Meeker map to its intersection, at BM 486, with Jonive Road to the north and an unnamed light duty road to the south (Barnett Valley Road), Township 6 North, Range 9 West, on the Camp Meeker map.
</P>
<P>(4) The boundary follows Barnett Valley Road south 2.2 miles, then east crossing over the Valley Ford map and onto the Two Rock map, to Barnett Valley Road's intersection with Burnside Road, section 17, Township 6 North, Range 9 West.
</P>
<P>(5) The boundary follows Burnside Road southeast 3.3 miles to Burnside Road's intersection with an unnamed medium duty road at BM 375, Township 6 North, Range 9 West.
</P>
<P>(6) The boundary follows a straight line southeast 0.6 mile to an unnamed 610-foot elevation peak, 1.5 miles southwest of Canfield School, Township 6 North, Range 9 West.
</P>
<P>(7) The boundary follows a straight line east-southeast 0.75 mile to an unnamed 641-foot elevation peak 1.4 miles south-southwest of Canfield School, Township 6 North, Range 9 West.
</P>
<P>(8) The boundary follows a straight line northeast 0.85 mile to its intersection with an unnamed intermittent stream and Canfield Road; then continues on the straight line northeast 0.3 mile to the line's intersection with the common Ranges 8 and 9 line, just west of an unnamed unimproved dirt road, Township 6 North.
</P>
<P>(9) The boundary follows a straight line southeast 0.5 mile, crossing over the end of an unnamed, unimproved dirt road to an unnamed 524-foot elevation peak, Township 6 North, Range 8 West.
</P>
<P>(10) The boundary follows a straight line southeast 0.75 mile to the intersection of an unnamed unimproved dirt road (leading to four barn-like structures) and an unnamed medium-duty road (Roblar Road), Township 6 North, Range 8 West.
</P>
<P>(11) The boundary follows a straight line south 0.5 mile to an unnamed 678-foot elevation peak, Township 6 North, Range 8 West.
</P>
<P>(12) The boundary follows a straight line east-southeast 0.8 mile to an unnamed peak with a 599-foot elevation, Township 5 North, Range 8 West.
</P>
<P>(13) The boundary follows a straight line east-southeast 0.7 mile to an unnamed peak with a 604-foot elevation, Township 5 North, Range 8 West.
</P>
<P>(14) The boundary follows a straight line east-southeast 0.9 mile, onto the Cotati map, to the intersection of a short, unnamed light-duty road leading past a group of barn-like structures and Meacham Road, Township 5 North, Range 8 West.
</P>
<P>(15) The boundary follows Meacham Road north-northeast 0.75 mile to Meacham Road's intersection with Stony Point Road, Township 5 North, Range 8 West.
</P>
<P>(16) The boundary follows Stony Point Road southeast 1.1 miles to the point where the 200-foot elevation contour line intersects Stony Point Road, Township 5 North, Range 8 West.
</P>
<P>(17) The boundary follows a straight line north-northeast 0.5 mile to the point where an unnamed intermittent stream intersects U.S. 101, Township 5 North, Range 8 West.
</P>
<P>(18) The boundary follows U.S. Route 101 north 4.25 miles to the point where Santa Rosa Avenue exits U.S. Route 101 to the east (approximately 0.5 mile north of the Wilfred Avenue overpass) Township 6 North, Range 8 West.
</P>
<P>(19) The boundary follows Santa Rosa Avenue north 1.1 miles to its intersection with Todd Road, crossing on to the Santa Rosa map, Township 6 North, Range 8 West.
</P>
<P>(20) The boundary follows Santa Rosa Avenue generally north 5.8 miles, eventually becoming Mendocino Avenue, to Santa Rosa Avenue's intersection with an unnamed secondary road (Bicentennial Way), 0.3 mile north-northwest of BM 161 on Mendocino Avenue, section 11, Township 7 North, Range 8 West.
</P>
<P>(21) The boundary follows a straight line north 2.5 miles crossing over the 906-foot elevation peak in section 35, T8N, R8W, crossing onto the Mark West Springs map, to the line's intersection with Mark West Springs Road and the meandering 280-foot elevation line in section 26, Township 6 North, Range 8 West.
</P>
<P>(22) The boundary follows the unnamed secondary highway, Mark West Springs Road, on the Sonoma County map, generally north and east, eventually turning into Porter Road and then to Petrified Forest Road, passing BM 545, the town of Mark West Springs, BM 495, and the Petrified Forest area, to Petrified Forest Road's intersection with the Sonoma County-Napa County line.
</P>
<P>(23) The boundary follows the Sonoma County-Napa County line northerly to the Sonoma County-Lake County line.
</P>
<P>(24) The boundary follows the Sonoma County-Lake County line northwesterly to the section line on the north side of Section 11, Township 10 North, Range 8 West.
</P>
<P>(25) The boundary follows this section line west to the northwest corner of Section 9, Township 10 North, Range 8, West.
</P>
<P>(26) The boundary follows the section line south to the southwest corner of Section 4, Township 9 North, Range 8, West.
</P>
<P>(27) The boundary proceeds northerly along the western lines of section 4, of Township 9 North, Range 8 West, and sections 33, 28, 21, 16, and 9 of Township 10 North, Range 8 West of the Jimtown Quadrangle map.
</P>
<P>(28) The boundary proceeds westerly along the northern lines of sections 8 and 7, Township 10 North, Range 8 West and section 12, Township 10 North, Range 9 West to the southeastern corner of section 2, Township 10 North, Range 9 West.
</P>
<P>(29) The boundary proceeds northwesterly in a straight line to the eastern line of section 3 at 38 degrees 45 minutes latitude, Township 10 North, Range 9 West.
</P>
<P>(30) The boundary proceeds westerly along latitude line 38 degrees 45 minutes to the point lying at 122 degrees 52 minutes 30 seconds longitude.
</P>
<P>(31) The boundary proceeds northwesterly in a straight line to the southeast corner of section 4, Township 11 North, Range 10 West, on the Asti, Quadrangle map.
</P>
<P>(32) The boundary proceeds northeasterly in a straight line to the southeast corner of section 34, Township 12 North, Range 10 West.
</P>
<P>(33) The boundary proceeds north along the east boundary of section 34, Township 12 North, Range 10 West on the U.S.G.S. Topographical Map of Sonoma County, California, to the Sonoma County-Mendocino County line.
</P>
<P>(34) The boundary proceeds along the Sonoma County-Mendocino County line west then south to the southwest corner of section 34, Township 12 North, Range 11 West.
</P>
<P>(35) The boundary proceeds in a straight line east southeasterly to the southeast corner of section 2, Township 11 North, Range 11 West.
</P>
<P>(36) The boundary proceeds in a straight line south southeasterly to the southeast corner of section 24, Township 11 North, Range 11 West.
</P>
<P>(37) The boundary proceeds in a straight line southeasterly across sections 30, 31, and 32 in Township 11 North, Range 10 West, to the point at 38 degrees 45 minutes North latitude parallel and 123 degrees 00 minutes East longitude in section 5, Township 10 North, Range 10 West.
</P>
<P>(38) The boundary proceeds along this latitude parallel west to the west line of section 5, Township 10 North, Range 11 West.
</P>
<P>(39) The boundary proceeds along the section line south to the southeast corner of section 18, Township 9 North, Range 11 West.
</P>
<P>(40) The boundary proceeds in a straight line southwesterly approximately 5 miles to the peak of Big Oat Mountain, elevation 1,404 feet.
</P>
<P>(41) The boundary proceeds in a straight line southerly approximately 2
<FR>3/4</FR> miles to the peak of Pole Mountain, elevation 2,204 feet.
</P>
<P>(42) The boundary proceeds in a straight line southeasterly approximately 4
<FR>3/4</FR> miles to the confluence of Austin Creek and the Russian River.
</P>
<P>(43) The boundary proceeds along the Russian River northeasterly, then southeasterly to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-204, 50 FR 20562, May 17, 1985, as amended by T.D. ATF-233, 51 FR 30354, Aug. 26, 1986; T.D. ATF-300, 55 FR 32402, Aug. 9, 1990; T.D. TTB-97, 76 FR 70877, Nov. 16, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 9.71" NODE="27:1.0.1.1.7.3.45.51" TYPE="SECTION">
<HEAD>§ 9.71   Hermann.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Hermann.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Hermann viticultural area are six U.S.G.S. Missouri Quadrangle maps, 7.5 minute series. They are entitled:
</P>
<P>(1) Hermann (1974).
</P>
<P>(2) Berger (1974).
</P>
<P>(3) Gasconade (1974).
</P>
<P>(4) Pershing (1974).
</P>
<P>(5) Swiss (1973).
</P>
<P>(6) Dissen (1973).
</P>
<P>(c) <I>Boundaries.</I> The Hermann viticultural area is located in central Missouri along and south of the Missouri River, in the northern portions of Gasconade and Franklin Counties. The boundaries of the Hermann viticultural area, using landmarks and points of reference found on the appropriate U.S.G.S. maps, are as follows:
</P>
<P>(1) Starting at the intersection of the Gasconade River with the Missouri River.
</P>
<P>(2) Then continuing east and northeast approximately 16.5 miles along the Missouri River Pacific Railroad, as it parallels the Missouri River, to the Gasconade/Franklin County line.
</P>
<P>(3) Then continuing along the Missouri Pacific Railroad southeast approximately 8.5 miles to the intersection Big Berger Creek.
</P>
<P>(4) Then southwest along the winding course of Big Berger Creek for approximately 20 miles (eight miles due southwest) to Township line T.44/45N.
</P>
<P>(5) Then west along the T.44/45N. line approximately 15.5 miles to the intersection of First Creek.
</P>
<P>(6) Then north and northwest along the course of First Creek approximately 13.7 miles (6.5 miles straight northwest) to the intersection of the Gasconade River.
</P>
<P>(7) Then northeast along the course of the Gasconade River approximately 3.8 miles to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-136, 48 FR 37372, Aug. 18, 1983, as amended by T.D. ATF-249, 52 FR 5959, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.72" NODE="27:1.0.1.1.7.3.45.52" TYPE="SECTION">
<HEAD>§ 9.72   Southeastern New England.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Southeastern New England.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundary of the Southeastern New England viticultural area are three U.S.G.S. maps. They are entitled:
</P>
<P>(1) “Boston, Mass.; N.H.; Conn.; R.I.; Maine”, scaled 1:250,000, edition of 1956, revised 1970;
</P>
<P>(2) “Hartford, Conn.; N.Y.; N.J.; Mass.”, scaled 1:250,000, edition of 1962, revised 1975; and
</P>
<P>(3) “Providence, R.I.; Mass.; Conn.; N.Y.”, scaled 1:250,000, edition of 1947, revised 1969.
</P>
<P>(c) <I>Boundaries.</I> The Southeastern New England viticultural area is located in the counties of New Haven, New London, and Middlesex in Connecticut; in the counties of Bristol, Newport, Providence, and Washington, in Rhode Island; and in the counties of Barnstable, Bristol, Dukes, Nantucket, Norfolk, and Plymouth in Massachusetts. The beginning point is found on the “Hartford” U.S.G.S. map in New Haven Harbor;
</P>
<P>(1) Then north following the Quinnipiac River to U.S. Interstate 91;
</P>
<P>(2) Then east following U.S. Interstate 91 to Connecticut Highway 80;
</P>
<P>(3) Then east following Connecticut Highway 80 to Connecticut Highway 9 near Deep River;
</P>
<P>(4) Then north following Connecticut Highway 9 to Connecticut Highway 82;
</P>
<P>(5) Then north, east, south and east following Connecticut Highway 82 and 182 to Connecticut Highway 2 in Norwich;
</P>
<P>(6) Then east following Connecticut Highway 2 to Connecticut Highway 165;
</P>
<P>(7) Then east following Connecticut and Rhode Island Highway 165 to Interstate Highway 95 near Millville;
</P>
<P>(8) Then north following Interstate Highway 95 to the Kent County-Washington County boundary;
</P>
<P>(9) Then east following the Kent County-Washington County boundary into Narragansett Bay;
</P>
<P>(10) Then north through Narragansett Bay, the Providence River, and the Blackstone River to the Rhode Island-Massachusetts State boundary;
</P>
<P>(11) Then east and south following the Rhode Island-Massachusetts State boundary to the Norfolk-Bristol (Mass.) County boundary;
</P>
<P>(12) Then northeast following the Norfolk-Bristol (Mass.) County boundary to the Amtrak right-of-way (Penn Central on map) northeast of Mansfield;
</P>
<P>(13) Then north following the Amtrak right-of-way to the Neponset River immediately east of the Norwood Memorial Airport;
</P>
<P>(14) Then northeast following the Neponset River into Dorchester Bay;
</P>
<P>(15) Then east following the Norfolk-Suffolk County boundary, and the Plymouth-Suffolk County boundary into Massachusetts Bay;
</P>
<P>(16) Then returning to the point of beginning by way of Massachusetts Bay, the Atlantic Ocean, Block Island Sound and Long Island Sound; and including all of the offshore islands in Norfolk, Plymouth, Barnstable, Nantucket, Dukes, and Bristol Counties, Massachusetts; all offshore islands in Rhode Island; and all offshore islands in Connecticut east of the Quinnipiac River.
</P>
<CITA TYPE="N">[T.D. ATF-169, 49 FR 11830, Mar. 28, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 9.73" NODE="27:1.0.1.1.7.3.45.53" TYPE="SECTION">
<HEAD>§ 9.73   Martha's Vineyard.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Martha's Vineyard.”
</P>
<P>(b) <I>Approved maps.</I> The approved map for determining the boundary of the Martha's Vineyard viticultural area is the U.S.G.S. map, “Providence, R.I.; Mass.; Conn.; N.Y.;” scaled 1:250,000, edition of 1947 revised 1969.
</P>
<P>(c) <I>Boundaries.</I> The Martha's Vineyard viticultural area is located entirely within Dukes County, Massachusetts. The boundary of the Martha's Vineyard viticultural area is the shoreline of the islands named “Martha's Vineyard” and “Chappaquiddic Island” on the “Providence” U.S.G.S. map, and the viticultural area comprises the entire area of the islands.
</P>
<CITA TYPE="N">[T.D. ATF-193, 50 FR 256, Jan. 3, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 9.74" NODE="27:1.0.1.1.7.3.45.54" TYPE="SECTION">
<HEAD>§ 9.74   Columbia Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Columbia Valley.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundary of the Columbia Valley viticultural area are nine 1:250,000 scale U.S.G.S. maps and one 1:100,000 (metric) scale U.S.G.S. map. They are entitled:
</P>
<P>(1) Concrete, Washington, U.S.; British Columbia, Canada, edition of 1955, limited revision 1963;
</P>
<P>(2) Okanogan, Washington, edition of 1954, limited revision 1963;
</P>
<P>(3) Pendleton, Oregon, Washington, edition of 1954, revised 1973;
</P>
<P>(4) Pullman, Washington, Idaho, edition of 1953, revised 1974;
</P>
<P>(5) Clarkston, Washington, Idaho, Oregon, 1:100,000 (metric) scale, edition of 1981;
</P>
<P>(6) Ritzville, Washington, edition of 1953, limited revision 1965;
</P>
<P>(7) The Dalles, Oregon, Washington, edition of 1953, revised 1971;
</P>
<P>(8) Walla Walla, Washington, Oregon, edition of 1953, limited revision 1963;
</P>
<P>(9) Wenatchee, Washington, edition of 1957, revised 1971; and
</P>
<P>(10) Yakima, Washington, edition of 1958, revised 1971.
</P>
<P>(c) <I>Boundaries.</I> The Columbia Valley viticultural area is located in Adams, Benton, Chelan, Columbia, Douglas, Ferry, Franklin, Garfield, Grant, Kittitas, Klickitat, Lincoln, Okanogan, Stevens, Walla Walla, Whitman, and Yakima Counties, Washington, and in Gilliman, Morrow, Sherman, Umatilla, and Wasco Counties, Oregon. The beginning point is found on “The Dalles” U.S.G.S. map at the confluence of the Klickitat and Columbia Rivers:
</P>
<P>(1) Then north and east following the Klickitat and Little Klickitat Rivers to U.S. Highway 97 northeast of Goldendale;
</P>
<P>(2) Then north following U.S. Highway 97 to the 1,000′ contour line southwest of Hembre Mountain;
</P>
<P>(3) Then west following the Toppenish Ridge, across unnamed mountains of 2,172′ and 2,363′ elevation, to the peak of Toppenish Mountain, elevation 3,609′;
</P>
<P>(4) Then northwest in a straight line for approximately 11.3 miles to the intersection of Agency Creek with the township line between R. 15 E. and R. 16 E.;
</P>
<P>(5) Then north following the township line between R. 15 E. and R. 16 E. to the Tieton River;
</P>
<P>(6) Then northeast following the Tieton River to the confluence with the Naches River;
</P>
<P>(7) Then east in a straight line for approximately 15.3 miles to the intersection of the 46°45′ latitude line with the Yakima River;
</P>
<P>(8) Then north following the Yakima River to the confluence with the North Branch Canal approximately one mile northwest of Throp;
</P>
<P>(9) Then north, east, and southeast following the North Branch Canal to its intersection with U.S. Interstate 90 in Johnson Canyon;
</P>
<P>(10) Then east following U.S. Interstate 90 to the Columbia River;
</P>
<P>(11) Then north following the Columbia River to the township line between T. 21 N. and T. 22 N. immediately north of the Rock Island Dam;
</P>
<P>(12) Then west following the township line between T. 21 N. and T. 22 N. for approximately 7.1 miles (from the west shore of the Columbia River) to the 2,000′ contour line immediately west of Squilchuck Creek;
</P>
<P>(13) Then north and west following the 2,000′ contour line to the township line between R. 18 E. and R. 19 E. west of the landing area at Cashmere-Dryden;
</P>
<P>(14) Then north following the township line between R. 18 E. and R. 19 E. for approximately 4.4 miles to the 2,000′ contour line in Ollala Canyon;
</P>
<P>(15) Then east, north, and northwest following the 2,000′ contour line to the township line between R. 19 E. and R. 20 E. immediately west of Ardenoir;
</P>
<P>(16) Then north following the township line between R. 19 E. and R. 20 E for approximately 2.8 miles to the 2,000′ contour line immediately north of the secondary road;
</P>
<P>(17) Then southwest and north following the 2,000′ contour line to the township line between T. 28 N. and T. 29 N.;
</P>
<P>(18) Then east following the township line between T. 28 N. and T. 29 N. for approximately 2.1 miles to the 2,000′ contour line immediately east of Lake Chelan;
</P>
<P>(19) Then southeast and north following the 2,000′ contour line (beginning in the “Wenatchee” U.S.G.S. map, passing through the “Ritzville” and “Okanogan” maps, and ending in the “Concrete” map) to the point where the 2,000′ contour line intersects the township line between T. 30 N. and T. 31 N. immediately west of Methow;
</P>
<P>(20) Then east following the township line between T. 30 N. and T. 31 N. for approximately 20.2 miles to the 2,000′ contour line east of Monse;
</P>
<P>(21) Then south and east following the 2,000′ contour line to the township line between T. 30 N. and T. 31 N. west of Alkali Lake;
</P>
<P>(22) Then northeast in a straight line for approximately 10.7 miles to the point of intersection of the 2,000′ contour line with Coyote Creek;
</P>
<P>(23) Then east, north, south, east, and north following the 2,000′ contour line to the township line between T. 29 N. and T. 30 N. immediately west of the Sanpoil River;
</P>
<P>(24) Then east following the township line between T. 29 N. and T. 30 N. for approximately 2.3 miles to the 2,000′ contour line immediately east of the Sanpoil River;
</P>
<P>(25) Then south, east, and north following the 2,000′ contour line to the township line between T. 29 N. and T 30 N. at Ninemile Flat;
</P>
<P>(26) Then east following the township line between T. 29 N. and T. 30 N. for approximately 10.7 miles to the township line between R. 36 E. and R. 37 E.;
</P>
<P>(27) Then south following the township line between R. 36 N. and R. 37 E. to the township line between T. 26 N. and T. 27 N.;
</P>
<P>(28) Then west following the township line between T. 26 N. and T. 27 N. to Banks Lake;
</P>
<P>(29) Then south following Banks Lake to Dry Falls Dam;
</P>
<P>(30) Then west and south following U.S. Highway 2 and Washington Highway 17 to the intersection with Washington Highway 28 in Soap Lake;
</P>
<P>(31) Then southeast in a straight line for approximately 4.7 miles to the source of Rocky Ford Creek near a fish hatchery;
</P>
<P>(32) Then south following Rocky Ford Creek and Moses Lake to U.S. Interstate 90 southwest of the town of Moses Lake;
</P>
<P>(33) Then east following U.S. Interstate 90 to the Burlington Northern (Northern Pacific) Railroad right-of-way at Raugust Station;
</P>
<P>(34) Then south following the Burlington Northern (Northern Pacific) Railroad right-of-way to Washington Highway 260 in Connell;
</P>
<P>(35) Then east following Washington Highway 260 through Kahlotus to the intersection with Washington Highway 26 in Washtucna;
</P>
<P>(36) Then east following Washington Highways 26 and 127 through La Crosse and Dusty to the intersection with U.S. Highway 195 at Colfax;
</P>
<P>(37) Then south following U.S. Highway 195 to the Washington-Idaho State boundary;
</P>
<P>(38) Then south following the Washington-Idaho State boundary on the 1:100,000 (metric) scale Clarkston, Washington, Idaho, Oregon map to the 600-meter elevation contour along the eastern boundary of section 9,
</P>
<P>R. 46 E./T. 11 N.; and then generally west following the meandering 600-meter contour to the eastern boundary of section 17, R. 45E./T. 11N.; then south following the eastern boundary of section 17 to the southern boundary of section 17; and then west following the southern boundaries of sections 17 and 18 to the Asotin-Garfield county line in section 19, R. 45E./T. 11N.;
</P>
<P>(39) Then south following the Garfield-Asotin county line to the 600-meter elevation contour; then following generally west and south in a counterclockwise direction along the meandering 600-meter elevation contour to Charley Creek in section 4, R. 44 E./T. 9 N.; and then west following Charley Creek on to the township line between R. 42 E. and R. 43 E.;
</P>
<P>(40) Then north following the township line between R. 42 E. and R. 43 E. on the 1:250,000 scale “Pullman, Washington, Idaho” map to Washington Highway 128 at Peola;
</P>
<P>(41) Then north following Washington Highway 128 to the intersection with U.S. Highway 12 in Pomeroy;
</P>
<P>(42) Then west following U.S. Highway 12 for approximately 5 miles to the intersection with Washington Highway 126 [in Zumwalt];
</P>
<P>(43) Then southwest following Washington Highway 126 and U.S. Highway 12 through Marengo, Dayton, and Waitsburg to a point where an unnamed light-duty road leaves Highway 12 in an easterly direction in Minnick Station, Washington;
</P>
<P>(44) Then east following the unnamed light-duty road for approximately 250 feet until it reaches the 2000′ contour line;
</P>
<P>(45) Then south and southwest following the 2000′ contour line to the place where it crosses Oregon Highway 74 in Windmill, Oregon;
</P>
<P>(46) Then west following Oregon Highway 74 to Highway 207 in Heppner;
</P>
<P>(47) Then southwest following Oregon Highway 207 to Highway 206 in Ruggs;
</P>
<P>(48) Then northwest following Oregon Highway 206 to the intersection with the township line between T. 1 S. and T. 2 S.;
</P>
<P>(49) Then west following the township line between T. 1 S. and T. 2 S. to the Deschutes River;
</P>
<P>(50) Then north following the Deschutes River to the Willamette Base Line;
</P>
<P>(51) Then west following the Willamette Base Line to the township line between R. 12 E. and R. 13 E.;
</P>
<P>(52) Then north following the township line between R. 12 E. and R. 13. to the Columbia River;
</P>
<P>(53) Then west following the Columbia River to the confluence with the Klickitat River and the point of beginning.
</P>
<P>(d) <I>Transition period.</I> A label containing the words “Columbia Valley” in the brand name or as an appellation of origin approved prior to May 20, 2016 may be used on wine bottled before May 21, 2018 if the wine conforms to the standards for use of the label set forth in § 4.25 or § 4.39(i) of this chapter in effect prior to May 20, 2016.
</P>
<CITA TYPE="N">[T.D. ATF-190, 49 FR 44897, Nov. 13, 1984, as amended by T.D. ATF-249, 52 FR 5959, Feb. 27, 1987; 52 FR 10224, Mar. 31, 1987; T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-441, 66 FR 11542, Feb. 26, 2001; T.D. TTB-136, 81 FR 23161, Apr. 20, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.75" NODE="27:1.0.1.1.7.3.45.55" TYPE="SECTION">
<HEAD>§ 9.75   Central Coast.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Central Coast.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundary of the Central Coast viticultural area are the following 43 United States Geological Survey topographic maps:
</P>
<P>(1) Monterey, California (formerly, the Santa Cruz map), scale 1:250,000, NJ 10-12, dated 1974;
</P>
<P>(2) Watsonville East, Calif. Quadrangle, Scale 1:24,000, dated 1955, photorevised 1968;
</P>
<P>(3) Mt. Madonna, Calif. Quadrangle, Scale 1:24,000, dated 1955, photorevised 1980;
</P>
<P>(4) Loma Prieta, Calif. Quadrangle, Scale 1:24,000, dated 1955, photorevised 1968;
</P>
<P>(5) Morgan Hill, Calif. Quadrangle, Scale 1:24,000, dated 1955, photorevised 1980;
</P>
<P>(6) Santa Teresa Hills, Calif. Quadrangle, Scale 1:24,000, dated 1953, photorevised 1968;
</P>
<P>(7) Los Gatos, Calif. Quadrangle, Scale 1:24,000, dated 1953, photorevised 1980;
</P>
<P>(8) Castle Rock Ridge, Calif. Quadrangle, Scale 1:24,000, dated 1955, photorevised 1968, photoinspected 1973;
</P>
<P>(9) San Jose, California, scale 1:250,000, NJ 10-9, dated 1962, revised 1969;
</P>
<P>(10) Dublin, Calif. Quadrangle, scale 1:24,000, dated 1961, photorevised 1980;
</P>
<P>(11) Livermore, Calif. Quadrangle, scale 1:24,000, dated 1961, photorevised 1968 and 1973;
</P>
<P>(12) Tassajara, Calif. Quadrangle, scale 1:24,000, dated 1953, photoinspected 1974;
</P>
<P>(13) Byron Hot Springs, Calif. Quadrangle, scale 1:24,000, dated 1953, photorevised 1968;
</P>
<P>(14) Altamont, Calif. Quadrangle, scale 1:24,000, dated 1953, photorevised 1968;
</P>
<P>(15) Mendenhall Springs, Calif. Quadrangle, scale 1:24,000, dated 1956, photorevised 1971;
</P>
<P>(16) San Luis Obispo, California, scale 1:250,000, NI 10-3, dated 1956, revised 1969 and 1979;
</P>
<P>(17) Santa Maria, California, scale 1:250,000, NI 10-6, 9, dated 1956, revised 1969;
</P>
<P>(18) Los Angeles, California, scale 1:250,000, NI 11-4, dated 1974;
</P>
<P>(19) Diablo, California, scale 1:24,000, dated 1953, Photorevised 1980;
</P>
<P>(20) Clayton, California, scale 1:24,000, dated 1953, Photorevised 1980;
</P>
<P>(21) Honker Bay, California, scale 1:24,000, dated 1953, Photorevised 1980;
</P>
<P>(22) Vine Hill, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(23) Benicia, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(24) Mare Island, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(25) Richmond, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(26) San Quentin, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(27) Oakland West, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(28) San Francisco North, California, scale 1:24,000, dated 1956, Photorevised 1968 and 1973;
</P>
<P>(29) San Francisco South, California, scale 1:24,000, dated 1956, Photorevised 1980;
</P>
<P>(30) Montara Mountain, California, scale 1:24,000, dated 1956, Photorevised 1980;
</P>
<P>(31) Half Moon Bay, California, scale 1:24,000, dated 1961, Photoinspected 1978, Photorevised 1968 and 1973;
</P>
<P>(32) San Gregorio, California, scale 1:24,000, dated 1961, Photoinspected 1978, Photorevised 1968;
</P>
<P>(33) Pigeon Point, California, scale 1:24,000, dated 1955, Photorevised 1968;
</P>
<P>(34) Franklin Point, California, scale 1:24,000, dated 1955, Photorevised 1968;
</P>
<P>(35) Año Nuevo, California, scale 1:24,000, dated 1955, Photorevised 1968;
</P>
<P>(36) Davenport, California, scale 1:24,000, dated 1955, Photorevised 1968;
</P>
<P>(37) Santa Cruz, California, scale 1:24,000, dated 1954, Photorevised 1981;
</P>
<P>(38) Felton, California, scale 1:24,000, dated 1955, Photorevised 1980;
</P>
<P>(39) Laurel, California, scale 1:24,000, dated 1955, Photoinspected 1978, Photorevised 1968;
</P>
<P>(40) Soquel, California, scale 1:24,000, dated 1954, Photorevised 1980; 
</P>
<P>(41) Watsonville West, California, scale 1:24,000, dated 1954, Photorevised 1980;
</P>
<P>(42) Midway, California, scale 1:24,000, dated 1953, Photorevised 1980; 
</P>
<P>(43) Cedar Mtn., California, scale 1:24,000, dated 1956, Photorevised 1971; minor revision 1994;
</P>
<P>(44) Benicia, California, scale 1:24,000, dated 2018;
</P>
<P>(45) Vine Hill, California, scale 1:24,000, dated 2018;
</P>
<P>(46) Honker Bay, California, scale 1:24,000, dated 2018;
</P>
<P>(47) Antioch North, California, scale 1:24,000, dated 2018;
</P>
<P>(48) Jersey Island, California, scale 1:24,000, dated 2018;
</P>
<P>(49) Bouldin Island, California, scale 1:24,000, dated 2018;
</P>
<P>(50) Woodward Island, California, scale 1:24,000, dated 2018;
</P>
<P>(51) Clifton Court Forebay, California, scale 1:24,000, dated 2018;
</P>
<P>(52) Byron Hot Springs, California, scale 1:24,000, dated 2018;
</P>
<P>(53) Tassajara, California, scale 1:24,000, dated 2018;
</P>
<P>(54) Antioch South, California, scale 1:24,000, dated 2018; and
</P>
<P>(55) Clayton, California, scale 1:24,000, dated 2018.


</P>
<P>(c) <I>Boundary.</I> The Central Coast viticultural area is located in the following California counties: Monterey, Santa Cruz, Santa Clara, Alameda, San Benito, San Luis Obispo, Santa Barbara, San Francisco, San Mateo, and Contra Costa. The Santa Cruz Mountains viticultural area is excluded. (The boundaries of the Santa Cruz Mountains viticultural area are described in 27 CFR § 9.31.)
</P>
<P>(1) The beginning point is the point at which the Pajaro River flows into Monterey Bay. (Monterey map)
</P>
<P>(2) The boundary follows north along the shoreline of the Pacific Ocean (across the Watsonville West, Soquel, Santa Cruz, Davenport, Año Nuevo, Franklin Point, Pigeon Point, San Gregorio, Half Moon Bay, Montara Mountain and San Francisco South maps) to the San Francisco/Oakland Bay Bridge. (San Francisco North Quadrangle)
</P>
<P>(3) From this point, the boundary proceeds east on the San Francisco/Oakland Bay Bridge to the Alameda County shoreline. (Oakland West Quadrangle)
</P>
<P>(4) From this point, the boundary proceeds east along the shoreline of Alameda County and Contra Costa County across the Richmond, San Quentin, Mare Island, Benicia (2018 edition), Vine Hill (2018 edition), Honker Bay (2018 edition), and Antioch North maps and onto the Jersey Island map to the intersection of the shoreline with Bethel Island Road.
</P>
<P>(5) Proceed southeast in a straight line 0.7 mile to the intersection of Wells Road and Sandmound Road.
</P>
<P>(6) Proceed northeast in a straight line 2.7 miles, crossing onto the Bouldin Island map, to the northernmost point of Holland Tract Road.


</P>
<P>(7) Proceed south 1.9 miles along Holland Tract Road, crossing onto the Woodward Island map, to the road's intersection with the 10-foot elevation contour.
</P>
<P>(8) Proceed south-southeast in a straight line 4.1 miles to the intersection of Orwood Road and the Mokelumne Aqueduct.
</P>
<P>(9) Proceed south-southwest 5.5 miles, crossing onto the Clifton Court Forebay map, to the stream gauging station on Italian Slough, just west of Widdows Island and the shared Contra Costa-San Joaquin County line.
</P>
<P>(10) Proceed due west in a straight line to the western shore of Italian Slough, then proceed southwesterly along the shore of Italian Slough to its confluence with Brushy Creek.
</P>
<P>(11) Proceed westerly along Brushy Creek, crossing onto the Byron Hot Springs (2018 edition) map and continuing southwesterly along the creek to its intersection with Vasco Road.
</P>
<P>(12) Proceed northwest in a straight line 4.3 miles to the intersection of Kellogg Creek and Walnut Boulevard.
</P>
<P>(13) Proceed west-southwest in a straight line 2.9 miles, crossing onto the Tassajara (2018 edition) map, to the intersection of Marsh Creek and Miwok Trail.
</P>
<P>(14) Proceed northwesterly along Marsh Creek 2.4 miles, crossing onto the Antioch South map, to the creek's intersection with Deer Valley Road.
</P>
<P>(15) Proceed northerly along Deer Valley Road 3.1 miles to its intersection with Chadbourne Road.
</P>
<P>(16) Proceed northwest in a straight line 0.6 mile to the southwestern terminus of Tour Way.
</P>
<P>(17) Proceed northwest in a straight line 3 miles to the intersection of Oil Canyon Trail, Stewartville Trail, and Chadbourne Road.
</P>
<P>(18) Proceed northeasterly along the Stewartville Trail 1.9 miles to its intersection with the Contra Loma Trail.
</P>
<P>(19) Proceed northwest in a straight line 2.5 miles to the intersection of Somersville Road and Donlan Boulevard.
</P>
<P>(20) Proceed west-southwest in a straight line 2.5 miles, crossing onto the Clayton (2018 edition) map, to the intersection of Nortonville Road and Kirker Pass Road.
</P>
<P>(21) Proceed southwesterly along Kirker Pass Road approximately 2.5 miles to its intersection with Hess Road.
</P>
<P>(22) Proceed southeasterly in a straight line to the 3,849-foot summit of Mt. Diablo.


</P>
<P>(23) The boundary proceeds in a southeasterly direction in a straight line across the Diablo and Tassajara maps to Brushy Peak elevation 1,702. (Byron Hot Springs Quadrangle)
</P>
<P>(24) The boundary proceeds due south, approximately 400 feet, to the northern boundaries of Section 13, Township 2 South, Range 2 East. (Byron Hot Springs Quadrangle)
</P>
<P>(25) The boundary proceeds due east along the northern boundaries of Section 13 and Section 18, Township 2 South, Range 3 East, to the northeast corner of Section 18. (Byron Hot Springs Quadrangle)
</P>
<P>(26) Then proceed southeast in a straight line approximately 1.8 miles to BM 720 in Section 21, Township 2 South, Range 3 East. (Altamont Quadrangle)
</P>
<P>(27) Then proceed south-southeast approximately 1 mile to an unnamed 1,147-foot peak in Section 28, Township 2 South, Range 3 East. (Altamont Quadrangle)
</P>
<P>(28) Then proceed south-southwest in a straight line approximately 1.1 miles to the intersection of the eastern boundary of Section 32 with Highway 580, Township 2 South, Range 3 East. (Altamont Quadrangle)
</P>
<P>(29) Then proceed south-southeast in a straight line approximately 2.7 miles to BM 1602 in Patterson Pass in Section 10, Township 3 South, Range 3 East. (Altamont Quadrangle)
</P>
<P>(30) Then proceed south-southeast in a straight line approximately 2.8 miles to BM 1600, adjacent to Tesla Road in Section 26. (Midway Quadrangle)
</P>
<P>(31) Then proceed south in a straight line approximately 4.2 miles to BM 1878, 40 feet north of Mines Road, in Section 14, Township 4 South, Range 3 East. (Cedar Mtn. Quadrangle)
</P>
<P>(32) Then proceed west-southwest in a straight line approximately 4.2 miles to the southeast corner of Section 19, Township 4 South, Range 3 East. (Mendenhall Springs Quadrangle) 
</P>
<P>(33) The boundary follows the east-west section line west along the southern boundary of Section 19 in Township 4 South, Range 3 east, and west along the southern boundary of Section 24 in Township 4 South, Range 2 east, to the southwest corner of that Section 24. (Mendenhall Springs Quadrangle)
</P>
<P>(34) The boundary follows the north-south section line north along the western boundary of Section 24 in Township 4 South, Range 2 east, to the northwest corner of that Section 24. (Mendenhall Springs Quadrangle)
</P>
<P>(35) The boundary follows the east-west section line west along the southern boundary of Section 14 in Township 4 South, Range 2 east, to the southwest corner of that Section 14. (Mendenhall Springs Quadrangel)
</P>
<P>(36) The boundary follows the north-south section line north along the western boundary of Section 14 in Township 4 South, Range 2 east, to the Hetch Hetchy Aqueduct. (Mendenhall Springs Quadrangle)
</P>
<P>(37) The boundary follows the Hetch Hetchy Aqueduct southwesterly to the range line dividing Range 1 East from Range 2 East. (San Jose map)
</P>
<P>(38) The boundary follows this range line south to its intersection with State Route 130. (San Jose map)
</P>
<P>(39) The boundary follows State Route 130 southeasterly to its intersection with the township line dividing Township 6 South from Township 7 South. (San Jose map)
</P>
<P>(40) From this point, the boundary proceeds in a straight line southeasterly to the intersection of the township line dividing Township 7 South from Township 8 South with the range line dividing Range 2 East from Range 3 East. (San Jose map)
</P>
<P>(41) From this point, the boundary proceeds in a straight line southeasterly to the intersection of the township line dividing Township 8 South from Township 9 South with the range line dividing Range 3 East from Range 4 East. (San Jose map)
</P>
<P>(42) From this point, the boundary proceeds in a straight line southeasterly to the intersection of Coyote Creek with the township line dividing Township 9 South from Township 10 South. (San Jose map)
</P>
<P>(43) From this point, the boundary proceeds in a straight line southeasterly to the intersection of the 37°00′ North latitude parallel with State Route 152. (San Jose map)
</P>
<P>(44) The boundary follows the 37°00′ North latitude parallel east to the range line dividing Range 5 East from Range 6 East. (Monterey map)
</P>
<P>(45) The boundary follows this range line south to the San Benito-Santa Clara County line. (Monterey map)
</P>
<P>(46) The boundary follows the San Benito-Santa Clara County line easterly to the San Benito-Merced County line. (Monterey map)
</P>
<P>(47) The boundary follows the San Benito-Merced County line southeasterly to the conjunction of the county lines of San Benito, Merced, and Fresno Counties. (Monterey map)
</P>
<P>(48) From this point, the boundary proceeds in a southwesterly extension of the Merced-Fresno County line to Salt Creek. (Monterey map)
</P>
<P>(49) From this point, the boundary proceeds in a straight line southeasterly to the conjunction of the county lines of Monterey, San Benito, and Fresno Counties. (Monterey map)
</P>
<P>(50) The boundary follows the Monterey-Fresno County line southeasterly to the Monterey-Kings County line. (Monterey and San Luis Obispo maps)
</P>
<P>(51) The boundary follows the Monterey-Kings County line southeasterly to the San Luis Obispo-Kings County line. (San Luis Obispo map)
</P>
<P>(52) The boundary follows the San Luis Obispo-Kings County line east to the San Luis Obispo-Kern County line. (San Luis Obispo map)
</P>
<P>(53) The boundary follows the San Luis Obispo-Kern County line south, then east, then south to the point at which the county line diverges easterly from the range line dividing Range 17 East from Range 18 East. (San Luis Obispo map)
</P>
<P>(54) The boundary follows this range line south to the township line dividing Township 28 South from Township 29 South. (San Luis Obispo map)
</P>
<P>(55) The boundary follows the township line west to the range line dividing Range 13 East from Range 14 East. (San Luis Obispo map)
</P>
<P>(56) The boundary follows this range line south to the boundary of the Los Padres National Forest. (San Luis Obispo map)
</P>
<P>(57) The boundary follows the boundary of the Los Padres National Forest southeasterly to the creek of Toro Canyon. (San Luis Obispo, Santa Maria, and Los Angeles maps)
</P>
<P>(58) The boundary follows the creek of Toro Canyon southerly to the Pacific Ocean. (Los Angeles map)
</P>
<P>(59) The boundary follows the shoreline of the Pacific Ocean and Monterey Bay northerly to the beginning point. (Los Angeles, Santa Maria, San Luis Obispo, and Monterey maps)
</P>
<CITA TYPE="N">[T.D. ATF-216, 50 FR 43130, Oct. 24, 1985, as amended by T.D. ATF-407, 64 FR 3023, Jan. 20, 1999; T.D. TTB-48, 71 FR 34524, June 15, 2006; T.D. TTB-191, 89 FR 18800, Mar. 15, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.76" NODE="27:1.0.1.1.7.3.45.56" TYPE="SECTION">
<HEAD>§ 9.76   Knights Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Knights Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Knights Valley viticultural area are four U.S.G.S. maps. They are—
</P>
<P>(1) “Mount St. Helena Quadrangle, California,” 7.5 minute series, 1959 (Photoinspected 1973);
</P>
<P>(2) “Jimtown Quadrangle, California,” 7.5 minute series, 1955 (Photorevised 1975);
</P>
<P>(3) “Mark West Springs Quadrangle, California,” 7.5 minute series, 1958; and
</P>
<P>(4) “Detert Reservoir Quadrangle, California,” 7.5 minute series, 1958 (Photorevised 1980).
</P>
<P>(c) <I>Boundary.</I> The Knights Valley viticultural area is located in northeastern Sonoma County, California. From the beginning point lying at the intersection of the Sonoma/Lake County line and the north line of Section 11, Township 10 North (T. 10 N.), Range 8 West (R. 8 W.) on the “Mount St. Helena Quadrangle” map, the boundary runs—
</P>
<P>(1) Westerly along the north line of Sections 11, 10, and 9, T. 10 N., R. 8 W. to the northwest corner of Section 9 on the “Jimtown Quadrangle” map;
</P>
<P>(2) Then southerly along the west line of Sections 9, 16, 21, 28, and 33, T. 10 N., R. 8 W., continuing along the west line of Section 4, T. 9 N., R. 8 W. to the southwest corner thereof;
</P>
<P>(3) Then easterly along the south line of Section 4 to the southeast corner thereof on the “Mount St. Helena Quadrangle” map;
</P>
<P>(4) Then southerly along the west line of Sections 10, 15, and 22, T. 9 N., R. 8 W. to the point of intersection with Franz Creek in Section 22 on the “Mark West Springs Quadrangle” map;
</P>
<P>(5) Then easterly along Franz Creek approximately 14,000 feet to the centerline of Franz Valley Road;
</P>
<P>(6) Then southerly along the centerline of Franz Valley Road to the point of intersection with the west line of Section 6, T. 8 N., R. 7 W.;
</P>
<P>(7) Then southerly along the west line of Section 6 to the southwest corner thereof;
</P>
<P>(8) Then easterly along the south line of Sections 6, 5, and 4, T. 8 N., R. 7 W. to the southeast corner of Section 4;
</P>
<P>(9) Then northerly along the east line of Section 4 to the point of intersection with the Sonoma/Napa County line;
</P>
<P>(10) Then northerly along the meanders of the Sonoma/Napa County line on the “Mark West Springs Quadrangle,” “Detert Reservoir Quadrangle,” and “Mount St. Helena Quadrangle” maps to the point of intersection with the Lake County line on the “Mount St. Helena Quadrangle” map;
</P>
<P>(11) Then northerly along the meanders of the Sonoma/Lake County line on the “Mount St. Helena Quadrangle” and “Detert Reservoir Quadrangle” maps to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-158, 48 FR 48816, Oct. 21, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 9.77" NODE="27:1.0.1.1.7.3.45.57" TYPE="SECTION">
<HEAD>§ 9.77   Altus.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Altus.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Altus viticultural area are five U.S.G.S. maps in the 7.5 minute series. They are titled:
</P>
<P>(1) Ozark Quadrangle, 1966.
</P>
<P>(2) Coal Hill Quadrangle, 1961.
</P>
<P>(3) Hartman Quadrangle, 1961.
</P>
<P>(4) Hunt Quadrangle, 1963.
</P>
<P>(5) Watalula Quadrangle, 1973.
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The Altus viticultural area is located in Arkansas. The starting point of the following boundary description is the crossing of the Missouri Pacific Railroad over Gar Creek, near the Arkansas River at the southeast corner of the city of Ozark, Arkansas (on the Ozark Quadrangle map).
</P>
<P>(2) <I>Boundary Description:</I>
</P>
<P>(i) From the crossing of the Missouri Pacific Railroad over Gar Creek, following the railroad tracks eastward to the crossing over Horsehead Creek (on the Hartman Quadrangle map).
</P>
<P>(ii) From there northward along Horsehead Creek to the merger with Dirty Creek (on the Coal Hill Quadrangle map).
</P>
<P>(iii) From there generally northwestward along Dirty Creek to Arkansas Highway 352 (where Dirty Creek passes under the highway as a perennial stream—on the Hunt Quadrangle map).
</P>
<P>(iv) From there along Highway 352 westward to Arkansas Highway 219 (on the Watalula Quadrangle map).
</P>
<P>(v) Then southward along Highway 219 to Gar Creek (on the Ozark Quadrangle map).
</P>
<P>(vi) Then southeastward along Gar Creek to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-176, 49 FR 22471, May 30, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 9.78" NODE="27:1.0.1.1.7.3.45.58" TYPE="SECTION">
<HEAD>§ 9.78   Ohio River Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Ohio River Valley.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundary of the Ohio River Valley viticultural area are 12 U.S.G.S. topographic maps in the scale 1:250,000, as follows:
</P>
<P>(1) Paducah NJ 16-7 (dated 1949, revised 1969);
</P>
<P>(2) Belleville NJ 16-4 (dated 1958, revised 1977);
</P>
<P>(3) Vincennes NJ 16-5 (dated 1956, revised 1969);
</P>
<P>(4) Louisville NJ 16-6 (dated 1956, revised 1969);
</P>
<P>(5) Cincinnati NJ 16-3 (dated 1953, revised 1974);
</P>
<P>(6) Columbus NJ 17-1 (dated 1967);
</P>
<P>(7) Clarksburg NJ 17-2 (dated 1956, limited revision 1965);
</P>
<P>(8) Canton NJ 17-11 (dated 1957, revised 1969);
</P>
<P>(9) Charleston NJ 17-5 (dated 1957, limited revision 1965);
</P>
<P>(10) Huntington NJ 17-4 (dated 1957, revised 1977);
</P>
<P>(11) Winchester NJ 16-9 (dated 1957, revised 1979); and
</P>
<P>(12) Evansville NJ 16-8 (dated 1957, revised 1974);
</P>
<P>(c) <I>Boundary.</I> The Ohio River Valley viticultural area is located in portions of Indiana, Ohio, West Virginia, and Kentucky. The boundary description in paragraphs (c)(1) through (24) of this section includes for each point, in parentheses, the name of the map sheet(s) on which the point can be found.
</P>
<P>(1) The beginning point is the point at which the Kentucky, Illinois, and Indiana State lines converge at the confluence of the Wabash River and the Ohio River (Paducah map).
</P>
<P>(2) The boundary follows the Illinois-Indiana State line northerly (across the Belleville map) to Interstate Route 64 (Vincennes map).
</P>
<P>(3) From the intersection of Interstate Route 64 and the Wabash River, the boundary proceeds in a straight line northeasterly to the town of Oatsville in Pike County, Indiana (Vincennes map).
</P>
<P>(4) The boundary proceeds in a straight line southeasterly to the point in Spencer County, Indiana, at which State Route 162 diverges northerly from U.S. Route 460, which is known locally as State Route 62 (Vincennes map).
</P>
<P>(5) The boundary proceeds in a straight line southeasterly to the confluence of the Anderson River and the Ohio River at Troy, Indiana (Evansville map).
</P>
<P>(6) The boundary proceeds along the Indiana shoreline of the Ohio River (Evansville and Vincennes maps) generally easterly to the mouth of French Creek in Franklin Township, Floyd County, Indiana (Louisville map). 
</P>
<P>(7) The boundary proceeds in a straight line northerly to the peak of Lost Knob, then continues in a straight line north-northeasterly through the peak of Bald Knob to the junction of State Route 111 and a road locally known as W. St. Joe Road at St. Joseph in New Albany Township, Floyd County, Indiana (Louisville map).
</P>
<P>(8) The boundary then proceeds on State Route 111 northerly to State Route 60 at Bennettsville in Clark County, Indiana, then on State Route 60 westerly to Carwood, and then in a straight line northerly to the point where the Clark-Scott county line crosses Interstate 65 at Underwood, Indiana (Louisville map).
</P>
<P>(9) The boundary proceeds in a straight line northwesterly to Leota in Scott County, Indiana (Louisville map).
</P>
<P>(10) The boundary proceeds in a straight line northeasterly to the town of New Marion in Ripley County, Indiana (Cincinnati map).
</P>
<P>(11) The boundary proceeds in a straight line northerly to the town of Clarksburg in Decatur County, Indiana (Cincinnati map).
</P>
<P>(12) The boundary proceeds in a straight line easterly to the town of Ridgeville in Warren County, Ohio (Cincinnati map).
</P>
<P>(13) The boundary proceeds in a straight line southeasterly to the town of Chapman in Jackson County, Ohio (Columbus map).
</P>
<P>(14) The boundary proceeds in a straight line northeasterly to the town identified on the map as Hesboro, also known as Ilesboro, in Hocking County, Ohio (Columbus map).
</P>
<P>(15) The boundary proceeds in a straight line northeasterly to the town of Tacoma in Belmont County, Ohio (Clarksburg map).
</P>
<P>(16) The boundary proceeds in a straight line easterly to the town of Valley Grove in Ohio County, West Virginia (Canton map).
</P>
<P>(17) The boundary proceeds in a straight line southerly to the town of Jarvisville in Harrison County, West Virginia (Clarksburg map).
</P>
<P>(18) The boundary proceeds in a straight line southwesterly to the town of Gandeeville in Roane County West Virginia (Charleston map).
</P>
<P>(19) The boundary proceeds in a straight line southwesterly to the town of Atenville in Lincoln County West Virginia (Huntington map).
</P>
<P>(20) The boundary proceeds in a straight line westerly to the town of Isonville in Elliott County, Kentucky (Huntington map).
</P>
<P>(21) The boundary proceeds in a straight line northwesterly to the town of Berlin in Bracken County, Kentucky (Louisville map).
</P>
<P>(22) The boundary proceeds in a straight line westerly to the town of Dry Ridge in Grant County, Kentucky (Louisville map).
</P>
<P>(23) The boundary proceeds in a straight line southwesterly to the town of Crest in Hardin County, Kentucky (Winchester map).
</P>
<P>(24) The boundary proceeds in a straight line westerly to the intersection of State Route 56 and U.S. Route 41 in the city of Sebree in Webster County, Kentucky (Evansville map).
</P>
<P>(25) The boundary proceeds in a straight line northwesterly to the beginning point (Paducah map).
</P>
<P>(d) <I>Transition period.</I> A label containing the words “Ohio River Valley” in the brand name or as an appellation of origin approved prior to March 7, 2013 may be used on wine bottled before March 9, 2015, if the wine conforms to the standards for use of the label set forth in § 4.25 or § 4.39(i) of this chapter in effect prior to March 7, 2013.
</P>
<CITA TYPE="N">[T.D. ATF-144, 48 FR 40379, Sept. 7, 1983, as amended by T.D. ATF-249, 52 FR 5959, Feb. 27, 1987; T.D. TTB-110, 78 FR, 8021, Feb. 5, 2013; T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.79" NODE="27:1.0.1.1.7.3.45.59" TYPE="SECTION">
<HEAD>§ 9.79   Lake Michigan Shore.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lake Michigan Shore.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Lake Michigan Shore viticultural area are four U.S.G.S. maps, 1:250,000 series. They are entitled: (1) Chicago (1953, revised 1970); (2) Fort Wayne (1953, revised 1969); (3) Racine (1958, revised 1969); and (4) Grand Rapids (1958, revised 1980).
</P>
<P>(c) <I>Boundaries.</I> The Lake Michigan Shore viticultural area is located in the southwestern corner of the State of Michigan. The boundaries of the Lake Michigan Shore viticultural area, using landmarks and points of reference found on the appropriate U.S.G.S maps, are as follows:
</P>
<P>(1) Starting at the most northern point, the intersection the Kalamazoo River with Lake Michigan.
</P>
<P>(2) Then southeast along the winding course of the Kalamazoo River for approximately 35 miles until it intersects the Penn Central railroad line just south of the City of Otsego.
</P>
<P>(3) Then south along the Penn Central railroad line, through the City of Kalamazoo, approximately 25 miles until it intersects the Grand Trunk Western railroad line at the community of Schoolcraft.
</P>
<P>(4) Then southwest along the Grand Trunk Western railroad line approximately 35 miles to the Michigan/ Indiana State line.
</P>
<P>(5) Then west along the Michigan-Indiana State line approximately 38 miles until it meets Lake Michigan.
</P>
<P>(6) Then north along the eastern shore of Lake Michigan approximately 72 miles to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-153, 48 FR 46526, Oct. 13, 1983, as amended by T.D. ATF-249, 52 FR 5959, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.80" NODE="27:1.0.1.1.7.3.45.60" TYPE="SECTION">
<HEAD>§ 9.80   York Mountain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “York Mountain.”
</P>
<P>(b) <I>Approved map.</I> The approved map for the York Mountain viticultural area is the U.S.G.S. map entitled “York Mountain Quadrangle,” 7.5 minute series (topographic), 1949 (photorevised 1979).
</P>
<P>(c) <I>Boundaries.</I> The York Mountain viticultural area is located in San Luis Obispo County, California. The boundaries are as follows:
</P>
<P>(1) From the beginning point at the northwest corner of the York Mountain Quadrangle map where the Dover Canyon Jeep Trail and Dover Canyon Road intersect, proceed east along Dover Canyon Road 1.5 miles to the western boundary line of Rancho Paso de Robles;
</P>
<P>(2) Follow the western boundary line of Rancho Paso de Robles southwest 6.0 miles to where the boundary joins Santa Rita Creek;
</P>
<P>(3) Turn right at Santa Rita Creek and follow the creek 5 miles to where the waters of Dover Canyon and Santa Rita Creek meet; and
</P>
<P>(4) Then proceed north along Dover Canyon Creek to its intersection with Dover Canyon Road, then following Dover Canyon Road (which becomes Dover Canyon Jeep Trail) back to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-143, 48 FR 38463, Aug. 24, 1983, as amended by T.D. ATF-249, 52 FR 5959, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.81" NODE="27:1.0.1.1.7.3.45.61" TYPE="SECTION">
<HEAD>§ 9.81   Fiddletown.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Fiddletown.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for the Fiddletown viticultural area are four U.S.G.S. maps entitled:
</P>
<P>(1) Fiddletown, CA, 1949, 7.5 minute series;
</P>
<P>(2) Amador City, CA, 1962, 7.5 minute series;
</P>
<P>(3) Pine Grove, CA, 1948 (photoinspected 1973), 7.5 minute series;
</P>
<P>(4) Aukum, CA, 1952 (photorevised 1973), 7.5 minute series.
</P>
<P>(c) <I>Boundaries.</I> The Fiddletown viticultural area is located in Amador County, California. The boundaries are as follows:
</P>
<P>(1) From the beginning point at the north boundary where Fiddletown Shenandoah Road crosses Big Indian Creek in Section 28, Township 8 N, Range 11 E, proceed in a southwesterly direction following Big Indian Creek through the southeast corner of Section 29, crossing the northwest corner of Section 32 to where it meets Section 31;
</P>
<P>(2) Then in a southerly direction follow the Section line between Sections 31 and 32, Township 8 N, Range 11 E, and Sections 5 and 6, 7 and 8, Township 7 N, Range 11 E, to where the Section line meets the South Fork of Dry Creek;
</P>
<P>(3) Then following the South Fork of Dry Creek in an easterly direction crossing the lower portions of Sections 8, 9, 10, 11, 12 and into Township 8 N, Range 12 E, at Section 7 and across Section 7 to where it meets Section 8;
</P>
<P>(4) Then north following the Section line between Sections 7 and 8, 5 and 6 into Township 8 N, Range 12 E, between Sections 31 and 32, to Big Indian Creek; and
</P>
<P>(5) Then following Big Indian Creek in a northwesterly direction through Sections 31, 30, 25, 26 and 27, returning to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-147, 48 FR 45239, Oct. 4, 1983, as amended by T.D. ATF-249, 52 FR 5959, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.82" NODE="27:1.0.1.1.7.3.45.62" TYPE="SECTION">
<HEAD>§ 9.82   Potter Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Potter Valley.”
</P>
<P>(b) <I>Approved map.</I> The approved maps for the Potter Valley viticultural area are the U.S.G.S. maps entitled “Potter Valley Quadrangle, California,” 1960, and “Ukiah Quadrangle, California,” 1958, 15 minute series (topographic).
</P>
<P>(c) <I>Boundaries.</I> The Potter Valley viticultural area is located in Mendocino County, California. The boundaries are as follows:
</P>
<P>(1) From the beginning point at the southeast corner of quadrant 36 and southwest corner of quadrant 32 (a point where Mendocino and Lake Counties border on the T. 17 N.-T. 16 N. township line), the boundary runs northwest to the northeastern corner of quadrant 4, on the T. 18 N.-T. 17 N. township line;
</P>
<P>(2) Then west to the northwest corner of quadrant 1;
</P>
<P>(3) Then south to the southwest corner of quadrant 36;
</P>
<P>(4) Then east to R. 12 W.-R. 11 W. range line at the southeast corner of quadrant 36;
</P>
<P>(5) Then south to Highway 20;
</P>
<P>(6) Then southeast on Highway 20 to where Highway 20 passes from quadrant 20 to quadrant 21; and
</P>
<P>(7) Thence northeast, returning to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-151, 48 FR 46521, Oct. 13, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 9.83" NODE="27:1.0.1.1.7.3.45.63" TYPE="SECTION">
<HEAD>§ 9.83   Lake Erie.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lake Erie.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Lake Erie viticultural area are four U.S.G.S. maps. They are titled:
</P>
<P>(1) “Toledo,” scale 1:250,000 (1956, revised 1978);
</P>
<P>(2) “Cleveland,” scale 1:250,000 (1956, revised 1972);
</P>
<P>(3) “Erie,” scale 1:250,000 (1959, revised 1972); and
</P>
<P>(4) “Buffalo,” scale 1:250,000 (1962).
</P>
<P>(c) <I>Boundaries.</I> The Lake Erie viticultural area is located along the shore and on the islands of Lake Erie across the States of New York, Pennsylvania, and Ohio. The beginning point is where Buffalo Creek empties into Lake Erie at Buffalo Harbor.
</P>
<P>(1) From the beginning point the boundary proceeds up Buffalo Creek to the confluence of Cazenovia Creek.
</P>
<P>(2) The boundary proceeds up Cazenovia Creek and thence up the west branch of Cazenovia Creek to a point approximately one mile north of Colden, New York, exactly 12 statute miles inland from any point on the shore of Lake Erie.
</P>
<P>(3) The boundary proceeds southwestward and along a line exactly 12 statute miles inland from any point on the shore of Lake Erie to a point approximately one mile north of Dayton, New York, where it intersects the 1,300-foot contour line.
</P>
<P>(4) The boundary proceeds generally southwestward along the 1,300-foot contour line to a point almost two miles north-northwest of Godard, Pennsylvania, exactly six statute miles inland from any point on the shore of Lake Erie.
</P>
<P>(5) The boundary proceeds southwestward along a line exactly six statute miles inland from any point on the shore of Lake Erie to the point where it intersects Ohio Route 45 near the intersection with Interstate 90.
</P>
<P>(6) The boundary proceeds southward along Ohio Route 45 to a point exactly 14 statute miles inland from any point on the shore of Lake Erie approximately one mile north of Rock Creek, Ohio.
</P>
<P>(7) The boundary proceeds southwestward, then westward, then northwestward along a line 14 statute miles inland from any point on the shore of Lake Erie to the point where it intersects the Ohio-Michigan boundary just north of Centennial, Ohio.
</P>
<P>(8) The boundary then follows the Ohio-Michigan border in an easterly direction to the shoreline of Lake Erie. Thence in a generally southeasterly direction along the shoreline of Lake Erie to the mouth of the Portage River just north of Port Clinton. Thence due north in a straight line to the United States-Canada border. Thence in a southeasterly and then an easterly direction along the United States-Canada border until a point is reached which is due north of the easternmost point of Kelleys Island.
</P>
<P>(9) The boundary then proceeds due south until it reaches the shoreline of Lake Erie. Thence the boundary follows the lakeshore in a generally northeasterly direction to the beginning point at the mouth of Buffalo Creek.
</P>
<CITA TYPE="N">[T.D. ATF-156, 48 FR 48819, Oct. 21, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 9.84" NODE="27:1.0.1.1.7.3.45.64" TYPE="SECTION">
<HEAD>§ 9.84   Paso Robles.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Paso Robles”.
</P>
<P>(b) <I>Approved Map.</I> The appropriate map for determining the boundary of the Paso Robles viticultural area is the United States Geological Survey 1:250,000-scale map of San Luis Obispo, California, 1956, revised 1969, shoreline revised and bathymetry added 1979.
</P>
<P>(c) <I>Boundaries.</I> The Paso Robles viticultural area is located within San Luis Obispo County, California. From the point of beginning where the county lines of San Luis Obispo, Kings and Kern Counties converge, the county line also being the township line between T.24S. and T.25S., in R.16E.:
</P>
<P>(1) Then in a westerly direction along this county line for 42 miles to the range line between R.9E. and R.10E.;
</P>
<P>(2) Then in a southerly direction for 12 miles along the range line to the southwest of corner of T.26S. and R.10E.;
</P>
<P>(3) Then in a southeasterly direction, approximately 5.5 miles to a point of intersection of the Dover Canyon Jeep Trail and Dover Canyon Road;
</P>
<P>(4) Then in an easterly direction along Dover Canyon Road, approximately 1.5 miles, to the western border line of Rancho Paso de Robles;
</P>
<P>(5) Then, following the border of the Paso Robles land grant, beginning in an easterly direction, to a point where it intersects the range line between R.11E. and R.12E.;
</P>
<P>(6) Then southeasterly for approximately 16.5 miles to the point of intersection of the township line between T.29S. and T.30S. and the range line between R.12E. and R.13E.;
</P>
<P>(7) Then in an easterly direction along the T.29S. and T.30S. line for approximately 3.1 miles to its intersection with the eastern boundary line of the Los Padres National Forest;
</P>
<P>(8) Then in a southeasterly direction along the eastern boundary line of the Los Padres National Forest for approximately 4.1 miles to its intersection with the R.13E. and R.14E. line;
</P>
<P>(9) Then in a northerly direction along the R.13E. and R.14E. line for approximately 8.7 miles to its intersection with the T.28S. and T.29S. line; 
</P>
<P>(10) Then in an easterly direction for approximately 18 miles to the range line between R.16E. and R.17E.;
</P>
<P>(11) Then in a northerly direction for approximately 24 miles to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-148, 48 FR 45241, Oct. 4, 1983, as amended by T.D. ATF-377, 61 FR 29953, June 13, 1996; T.D. TTB-72, 74 FR 3429, Jan. 21, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 9.85" NODE="27:1.0.1.1.7.3.45.65" TYPE="SECTION">
<HEAD>§ 9.85   Willow Creek.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Willow Creek.”
</P>
<P>(b) <I>Approved map.</I> The map showing the boundary of the Willow Creek viticultural area is: “Willow Creek Quadrangle,” California, U.S.G.S. 15 minute series (1952).
</P>
<P>(c) <I>Boundaries.</I> The Willow Creek viticultural area is located within portions of Humboldt and Trinity Counties, California. From the point of beginning where the 1,000-foot contour line intersects Kirkham Creek (directly north of section 19, T.7 N./R.5E.), beginning in a southerly direction, the boundary line the 1,000-foot contour line to;
</P>
<P>(1) The point of intersection between the 1,000-foot contour line and the north section line of section 27, T.6N./R.5E.;
</P>
<P>(2) Then in a straight, north easterly line to the point of intersection between the 1,000-foot contour line and the east section line of section 13, T.6N./R.5E.;
</P>
<P>(3) Then in a straight, northwesterly line to the point of intersection between the 1,000-foot contour line and the north section line of section 11, T.6N./R.5E.;
</P>
<P>(4) Then in a straight, south-southwesterly line to the point of intersection between the 1,000-foot contour line and the east section line of section 15, T.6N./R.5E.;
</P>
<P>(5) Then following the 1,000-foot contour line, beginning in a westerly direction, to the point of intersection between the 1,000-foot contour line and Coons Creek;
</P>
<P>(6) Then in a straight, westerly line to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-141, 48 FR 37376, Aug. 18, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 9.86" NODE="27:1.0.1.1.7.3.45.66" TYPE="SECTION">
<HEAD>§ 9.86   Anderson Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Anderson Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Anderson Valley viticultural area are three U.S.G.S. maps. They are titled:
</P>
<P>(1) “Navarro Quadrangle, California—Mendocino Co.,” 15 minute series (1961);
</P>
<P>(2) “Boonville Quadrangle, California—Mendocino Co.,” 15 minute series (1959); and
</P>
<P>(3) “Ornbaun Valley Quadrangle, California,” 15 minute series (1960).
</P>
<P>(c) <I>Boundaries.</I> The Anderson Valley viticultural area is located in the western part of Mendocino County, California. The beginning point is at the junction of Bailey Gulch and the South Branch North Fork Navarro River in Section 8, Township 15 North (T.15N.), Range 15 West (R.15W.), located in the northeast portion of U.S.G.S. map “Navarro Quadrangle.”
</P>
<P>(1) From the beginning point, the boundary runs southeasterly in a straight line to an unnamed hilltop (elevation 2015 feet) in the northeast corner of Section 9, T.13N., R.13W., located in the southeast portion of U.S.G.S. map “Boonville Quadrangle”;
</P>
<P>(2) Then southwesterly in a straight line to Benchmark (BM) 680 in Section 30, T.13N., R.13W., located in the northeast portion of U.S.G.S. map “Ornbaun Valley Quadrangle”;
</P>
<P>(3) Then northwesterly in a straight line to the intersection of an unnamed creek and the south section line of Section 14, T.14N., R.15W., located in the southwest portion of U.S.G.S. map “Boonville Quadrangle”;
</P>
<P>(4) Then in a westerly direction along the south section lines of Sections 14, 15, and 16, T.14N., R.15W., to the intersection of the south section line of Section 16 with Greenwood Creek, approximately .2 miles west of Cold Springs Road which is located in the southeast portion of U.S.G.S. map “Navarro Quadrangle”;
</P>
<P>(5) Then in a southwesterly and then a northwesterly direction along Greenwood Creek to a point in Section 33 directly south (approximately 1.4 miles) of Benchmark (BM) 1057 in Section 28, T.15N., R.16W.;
</P>
<P>(6) Then directly north in a straight line to Benchmark (BM) 1057 in Section 28, T.15N., R.16W.;
</P>
<P>(7) Then in a northeasterly direction in a straight line to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-139, 48 FR 37370, Aug. 18, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 9.87" NODE="27:1.0.1.1.7.3.45.67" TYPE="SECTION">
<HEAD>§ 9.87   Grand River Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Grand River Valley.”
</P>
<P>(b) <I>Approved map.</I> The approved map for determining the boundary of the Grand River Valley viticultural area is the U.S.G.S. topographic map in the scale of 1:250,000, entitled Cleveland, number NK 17-8, dated 1956, revised 1972.
</P>
<P>(c) <I>Boundary.</I> The Grand River Valley viticultural area is located in the following Ohio counties: Lake, Geauga, and Ashtabula. The viticultural area consists of all of the land within the Lake Erie viticultural area, described in § 9.83, which is also within 2 statute miles, in any direction, of the Grand River. Specifically, the Grand River Valley viticultural area consists of all of the land west of Ohio Route 45 which is within 2 statute miles, in any direction, of the Grand River, and which is also within 14 statute miles inland from any point on the shore of Lake Erie.
</P>
<CITA TYPE="N">[T.D. ATF-157, 48 FR 48821, Oct. 21, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 9.88" NODE="27:1.0.1.1.7.3.45.68" TYPE="SECTION">
<HEAD>§ 9.88   Pacheco Pass.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Pacheco Pass.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of Pacheco Pass viticultural area are two U.S.G.S. maps. They are titled:
</P>
<P>(1) San Felipe Quadrangle, 7.5 minute series, 1955 (photorevised 1971).
</P>
<P>(2) Three Sisters Quadrangle, 7.5 minute series, 1954 (photorevised 1971).
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The Pacheco Pass viticultural area is located in California. The starting point of the following boundary description is the crossing of Pacheco Creek under California Highway 156, about 4 miles north of Hollister Municipal Airport, in San Benito County, California.
</P>
<P>(2) <I>Boundary Description.</I> (i) From the starting point northwestward along Pacheco Creek to the intersection with the straight-line extension of Barnheisel Road. (<E T="04">Note.</E> This is an old land grant boundary and appears on the U.S.G.S. map as the western boundary of an orchard.)
</P>
<P>(ii) From there in a straight line northeastward to the intersection of Barnheisel Road and California Highway 156.
</P>
<P>(iii) From there northward along Highway 156 to California Highway 152 (“Pacheco Pass Highway”).
</P>
<P>(iv) Then northward along Pacheco Pass Highway to the 37° latitude line.
</P>
<P>(v) Then eastward along that latitude line to the land line R. 5E./R. 6E.
</P>
<P>(vi) Then southward along that land line, crossing Foothill Road, and continuing southward to a point exactly 2,300 feet south of Foothill Road.
</P>
<P>(vii) From there is a straight line to the starting point.
</P>
<CITA TYPE="N">[T.D. ATF-167, 49 FR 9169, Mar. 12, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 9.89" NODE="27:1.0.1.1.7.3.45.69" TYPE="SECTION">
<HEAD>§ 9.89   Umpqua Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Umpqua Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Umpqua Valley viticultural area are two U.S.G.S. maps. They are titled:
</P>
<P>(1) “Roseburg,” scale 1:250,000 (1958, revised 1970); and
</P>
<P>(2) “Medford,” scale 1:250,000 (1955, revised 1976).
</P>
<P>(c) <I>Boundaries.</I> The Umpqua Valley viticultural area is located entirely within Douglas County, Oregon, which is in the southwest part of the State. The beginning point is the intersection of Interstate Highway 5 with the Douglas/Lane County line in Township 21 South (T21S), Range 4 West (R4W) on the “Roseburg” map.
</P>
<P>(1) From the beginning point, the boundary proceeds north along the Douglas/Lane County line approximately .5 miles to the 1,000-foot contour line;
</P>
<P>(2) Thence northwest along the 1,000-foot contour line to the Douglas/Lane County line; thence west along the Douglas/Lane County line approximately 2.5 miles, returning to the 1,000-foot contour line; thence in a generally westerly direction along the 1,000-foot contour line to the R9W/R10W range line;
</P>
<P>(3) Thence south along the R9W/R10W range line approximately 2.75 miles to the center of the Umpqua River; thence along a straight line in an easterly direction approximately 6.25 miles to the intersection of range line R8W/R9W with the center of the Umpqua River; thence south along range line R8W/R9W approximately 3.5 miles to its intersection with township line T22S/T23S;
</P>
<P>(4) Thence southeast approximately 8.5 miles along a straight line to the intersection of township line T23S/T24S with range line R7W/R8W; thence south along the R7W/R8W range line approximately 8 miles to its intersection with the 1,000-foot contour line; thence in a southeasterly direction in a straight line approximately 3.5 miles toward the intersection of township line T25S/T26S with range line R6W/R7W, returning to the 1,000-foot contour line;
</P>
<P>(5) Thence in a southerly direction along the 1,000-foot contour line to the intersection of township line T27S/T28S with range line R7W/R8W; thence in a southwesterly direction in a straight line approximately 3.5 miles toward the intersection of township line T28S/T29S with range line R8W/R9W, returning to the 1,000-foot contour line; thence south along the 1,000-foot contour line to its intersection with township line T29S/T30S;
</P>
<P>(6) Thence east along township line T29S/T30S approximately .33 miles, rejoining the 1,000-foot contour line; thence in a northerly and eventually a southerly direction along the 1,000-foot contour line past the town of Riddle on the “Medford” map to range line R6W/R7W; thence south along the R6W/R7W range line approximately .5 miles back to the 1,000-foot contour line;
</P>
<P>(7) Thence in an easterly, westerly, and eventually a northerly direction along the 1,000-foot contour line to a point approximately 3.5 miles east of Dillard, where the contour line crosses Interstate Highway 5 on the “Roseburg” map; thence northeast along Interstate Highway 5 approximately .25 mile, returning to the 1,000-foot contour line; thence in a generally northeasterly, southeasterly, northwesterly, and eventually a northeasterly direction along the 1,000-foot contour line past the town of Idleyld Park to the R2W/R3W range line;
</P>
<P>(8) Thence north along range line R2W/R3W approximately 1.75 miles to the T25S/T26S township line; thence west along township line T25S/T26S approximately .25 mile, returning to the 1,000-foot contour line; thence in a generally westerly and then a northerly direction along the 1,000-foot contour line up the valley of Calapooya Creek to the R3W/R4W range line; thence north along range line R3W/R4W approximately 2.25 miles, back to the 1,000-foot contour line;
</P>
<P>(9) Thence in a westerly and then a northerly direction along the 1,000-foot contour line to the T23S/T24S township line; thence east along the T23S/T24S township line approximately 2.75 miles to the 1,000-foot contour line; thence in a northerly direction along the 1,000-foot contour line to its intersection with the Douglas/Lane County line; thence north along the Douglas/Lane County line approximately .75 mile to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-170, 49 FR 12246, Mar. 29, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 9.90" NODE="27:1.0.1.1.7.3.45.70" TYPE="SECTION">
<HEAD>§ 9.90   Willamette Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Willamette Valley.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundaries of the Willamette Valley viticultural area are three U.S.G.S. Oregon maps scaled 1:250,000 and one U.S.G.S. Oregon map scaled 1:24,000. They are entitled:
</P>
<P>(1) “Vancouver,” Location Diagram NL 10-8, 1958 (revised 1974).
</P>
<P>(2) “Salem,” Location Diagram NL 10-11, 1960 (revised 1977).
</P>
<P>(3) “Roseburg,” Location Diagram NL 10-2, 1958 (revised 1970).
</P>
<P>(4) “Letz Creek, OR” (revised 1984).
</P>
<P>(c) <I>Boundaries.</I> The Willamette Valley viticultural area is located in the northwestern part of Oregon, and is bordered on the north by the Columbia River, on the west by the Coast Range Mountains, on the south by the Calapooya Mountains, and on the east by the Cascade Mountains, encompassing approximately 5,200 square miles (3.3 million acres). The exact boundaries of the viticultural area, based on landmarks and points of reference found on the approved maps, are as follows: From the beginning point at the intersection of the Columbia/Multnomah County line and the Oregon/Washington State line;
</P>
<P>(1) West along the Columbia/Multnomah County line 8.5 miles to its intersection with the Washington/Multnomah County line;
</P>
<P>(2) South along the Washington County line 5 miles to its intersection with the 1,000 foot contour line;
</P>
<P>(3) Northwest (15 miles due northwest) along the 1,000 foot contour line to its intersection with State Highway 47, .5 mile north of “Tophill”;
</P>
<P>(4) Then, due west from State Highway 47 one-quarter mile to the 1,000 foot contour line, continuing south and then southwest along the 1,000 foot contour line to its intersection with the Siuslaw National Forest (a point approximately 43 miles south and 26 miles west of “Tophill”), one mile north of State Highway 22;
</P>
<P>(5) Due south 6.5 miles to the 1,000 foot contour line on the Lincoln/Polk County line;
</P>
<P>(6) Continue along the 1,000 foot contour line (approximately 23 miles) east, south, and then west, to a point where the Polk County line is intersected by the Lincoln/Benton County line;
</P>
<P>(7) South along Lincoln/Benton County line, 11 miles to its intersection with the Siuslaw National Forest line;
</P>
<P>(8) East along the Siuslaw National Forest line six miles, and then south along the Siuslaw National Forest line six miles to State Highway 34 and the 1,000 foot contour line;
</P>
<P>(9) South along the 1,000 foot contour line to its intersection with Township line T17S/T18S (31 miles southwest, and one mile west of State Highway 126);
</P>
<P>(10) East along T17S/T18S 4.5 miles to Range line R6W/R7W, south along this range line 2.5 miles to the 1,000 foot contour line;
</P>
<P>(11) Northeast, then southeast along the 1,000 foot contour line approximately 12 miles to its intersection with the R5W/R6W range line;
</P>
<P>(12) South along the R5W/R6W range line approximately 0.25 mile to the intersection with the 1,000 foot contour line;
</P>
<P>(13) Generally southeast along the meandering 1,000 foot contour line, crossing onto the Letz Creek map, to a point on the 1,000 foot contour line located due north of the intersection of Siuslaw River Road and Fire Road;
</P>
<P>(14) South in a straight line approximately 0.55 mile, crossing over the Siuslaw River and the intersection of Siuslaw River Road and Fire Road, to the 1,000 foot contour line;
</P>
<P>(15) Generally southeast along the meandering 1,000 foot contour line, crossing onto the Roseburg, Oregon map, to the intersection of the 1,000 foot contour line with the Lane/Douglas County line;
</P>
<P>(16) East along the Lane/Douglas County line approximately 3.8 miles to the intersection with the 1,000 foot contour line just east of the South Fork of the Siuslaw River;
</P>
<P>(17) Generally north, then northeast along the 1,000 foot contour line around Spencer Butte, and then generally south to a point along the Lane/Douglas County line 0.5 mile north of State Highway 99;
</P>
<P>(18) South along the Lane/Douglas County line 1.25 miles to the 1,000 foot contour line;
</P>
<P>(19) Following the 1,000 foot contour line around the valleys of Little River, Mosby Creek, Sharps Creek and Lost Creek to the intersection of R1W/R1E and State Highway 58);
</P>
<P>(20) North along R1W/R1E, six miles, until it intersects the 1,000 foot contour line just north of Little Fall Creek;
</P>
<P>(21) Continuing along the 1,000 foot contour line around Hills Creek, up the southern slope of McKenzie River Valley to Ben and Kay Dorris State Park, crossing over and down the northern slope around Camp Creek, Mohawk River and its tributaries, Calapooia River (three miles southeast of the town of Dollar) to a point where Wiley Creek intersects R1E/R1W approximately one mile south of T14S/T13S;
</P>
<P>(22) North along R1E/R1W 7.5 miles to T12S/T13S at Cedar Creek;
</P>
<P>(23) West along T12S/T13S four miles to the 1,000 foot contour line;
</P>
<P>(24) Continuing in a general northerly direction along the 1,000 foot contour line around Crabtree Creek, Thomas Creek, North Santiam River (to its intersection with Sevenmile Creek), and Little North Santiam River to the intersection of the 1,000 foot contour line with R1E/R2E (approximately one mile north of State Highway 22);
</P>
<P>(25) North along R1E/R2E (through a small portion of Silver Falls State Park) 14 miles to T6S/T7S;
</P>
<P>(26) East along T6S/T7S six miles to R2E/R3E;
</P>
<P>(27) North along R2E/R3E six miles to T5S/T6S;
</P>
<P>(28) Due northeast 8.5 miles to the intersection of T4S/T5S and R4E/R3E;
</P>
<P>(29) East along T4S/T5S six miles to R4E/R5E;
</P>
<P>(30) North along R4E/R5E six miles to T3S/T4S;
</P>
<P>(31) East along T3S/T4S six miles to R5E/R6E;
</P>
<P>(32) North along R5E/R6E 10.5 miles to a point where it intersects the Mount Hood National Forest boundary (approximately three miles north of U.S. Highway 26);
</P>
<P>(33) West four miles and north one mile along the forest boundary to the 1,000 foot contour line (just north of Bull Run River);
</P>
<P>(34) North along the 1,000 foot contour line, into Multnomah County, to its intersection with R4E/R5E;
</P>
<P>(35) Due north approximately three miles to the Oregon/Washington State line; and
</P>
<P>(36) West and then north, 34 miles, along the Oregon/Washington State line to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-162, 48 FR 54221, Dec. 1, 1983, as amended by T.D. TTB-134, 81 FR 11112, Mar. 3, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.91" NODE="27:1.0.1.1.7.3.45.71" TYPE="SECTION">
<HEAD>§ 9.91   Walla Walla Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Walla Walla Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Walla Walla Valley viticultural area are two U.S.G.S. maps, in the scale 1:100,000. They are entitled:
</P>
<P>(1) “Walla Walla,” Washington-Oregon, 1980
</P>
<P>(2) “Pendleton,” Oregon-Washington, 1983
</P>
<P>(c) <I>Boundaries.</I> The Walla Walla Valley viticultural area is located within Walla Walla County in Washington State and Umatilla County in Oregon. It is entirely within the Columbia Valley viticultural area. The boundaries are as follows:
</P>
<P>(1) The beginning point is on the Walla Walla quadrangle map, in T8N/37E, at the point where the 2,000 foot contour line intersects with an unnamed light duty road approximately 250 feet east of U.S. Highway 12 in Minnick, Washington (on maps measured in metric units, this elevation is between the 600 and 650 meter contour lines),
</P>
<P>(2) Then the boundary goes northwest in a straight line for 7 kilometers (km), until it intersects with a power line that runs between T8N and T9N,
</P>
<P>(3) Then the boundary follows the power line west for 8 km, where it diverges from the power line and goes west-southwest in a straight line for approximately 33 km to the intersection of 2 unnamed light duty roads in the area marked Ninemile Canyon in the southwest corner of T8N/R33E,
</P>
<P>(4) Then the boundary goes south-southwest in a straight line approximately 8 km, until it reaches U.S. Highway 12, about 2.5 km east of Reese, Washington,
</P>
<P>(5) Then the boundary goes south in a straight line for approximately 8 km, crossing the Washington-Oregon state line and moving onto the Pendleton U.S.G.S. map, where it meets the 450 m contour line in T6N/R32E, near an unnamed peak with an elevation of 461 m,
</P>
<P>(6) Then the boundary follows the 450 m contour line in a generally southeasterly direction until it intersects Dry Creek in T4N/R35E,
</P>
<P>(7) Then the boundary goes southeast along Dry Creek (Oregon) until it reaches the 2000 foot contour line,
</P>
<P>(8) Then the boundary follows the 2000 foot contour line in a generally northeasterly direction, crossing the Oregon-Washington state line and returning to the Walla Walla U.S.G.S map, until it reaches the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-441, 66 FR 11542, Feb. 26, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 9.92" NODE="27:1.0.1.1.7.3.45.72" TYPE="SECTION">
<HEAD>§ 9.92   Madera.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Madera.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundary of the Madera viticultural area are eleven U.S.G.S. maps. They are entitled:
</P>
<P>(1) “Clovis, Cal.,” 7
<FR>1/2</FR> minute series, edition of 1964, photorevised 1972;
</P>
<P>(2) “Fresno North, Cal.,” 7
<FR>1/2</FR> minute series, edition of 1965, photorevised 1972;
</P>
<P>(3) “Friant, Cal.,” 7
<FR>1/2</FR> minute series, edition of 1964;
</P>
<P>(4) “Lanes Bridge, Cal.,” 7
<FR>1/2</FR> minute series, edition of 1964, photoinspected 1973;
</P>
<P>(5) “Gregg, Cal.,” 7
<FR>1/2</FR> minute series, edition of 1965;
</P>
<P>(6) “Madera, Cal.,” 7
<FR>1/2</FR> minute series, edition of 1963;
</P>
<P>(7) “Kismet, Cal.,” 7
<FR>1/2</FR> minute series, edition of 1961;
</P>
<P>(8) “Raynor Creek, Cal.,” 7
<FR>1/2</FR> minute series, edition of 1961;
</P>
<P>(9) “Fresno, Cal.,” scaled 1:250,000, edition of 1962, revised 1971;
</P>
<P>(10) “Monterey, Cal.,” scaled 1:250,000, edition of 1974; and
</P>
<P>(11) “San Jose, Cal.,” scaled 1:250,000, edition of 1962, revised 1969.
</P>
<P>(c) <I>Boundaries.</I> The Madera viticultural area is located in Madera and Fresno Counties, California. The beginning point is found on the “Fresno North,” 7
<FR>1/2</FR> minute series U.S.G.S. map at the point where the San Joaquin River intersects the section line dividing sections 20 and 29, and sections 21 and 28, T. 12 S., R. 20 E.;
</P>
<P>(1) Then east approximately 6 miles following the section line and Shepherd Avenue to the intersection with Sunnyside Road;
</P>
<P>(2) Then north approximately 7 miles following Sunnyside Road and continuing along the section line to the point of intersection of section 16, 17, 20, and 21, T.11S., R 21E.;
</P>
<P>(3) Then west approximately 17.6 miles following the section line and continuing along Avenue 15 to the intersection with the Atchison, Topeka and Santa Fe Railroad;
</P>
<P>(4) Then northwest following the Atchison, Topeka and Santa Fe Railroad to Road 26;
</P>
<P>(5) Then north following Road 26 and continuing north in a straight line to the Chowchilla River in the “Raynor Creek” 7
<FR>1/2</FR> minute series U.S.G.S. map, and in the “San Jose” scaled 1:250,000 U.S.G.S. map;
</P>
<P>(6) Then west following the Chowchilla River to the point where the Madera County-Merced County boundary diverges from the river;
</P>
<P>(7) Then southwest following the Madera County-Merced County boundary to the San Joaquin River;
</P>
<P>(8) Then following the San Joaquin River south and east returning to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-192, 49 FR 47833, Dec. 12, 1984; 50 FR 2782, Jan. 22, 1985, as amended by T.D. ATF-249, 52 FR 5960, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.93" NODE="27:1.0.1.1.7.3.45.73" TYPE="SECTION">
<HEAD>§ 9.93   Mendocino.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Mendocino.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries for the Mendocino viticultural area are seven U.S.G.S. maps. They are titled:
</P>
<P>(1) “Willits Quadrangle, California—Mendocino Co.,” 15 minute series (1961);
</P>
<P>(2) “Potter Valley Quadrangle, California,” 15 minute series (1960);
</P>
<P>(3) “Ukiah Quadrangle, California,” 15 minute series (1958);
</P>
<P>(4) “Hopland Quadrangle, California,” 15 minute series (1960);
</P>
<P>(5) “Boonville Quadrangle, California—Mendocino Co.,” 15 minute series (1959);
</P>
<P>(6) “Navarro Quadrangle, California—Mendocino Co.,” 15 minute series (1961);
</P>
<P>(7) “Ornbaun Valley Quadrangle, California,” 15 minute series (1960).
</P>
<P>(c) <I>Boundaries.</I> The “Mendocino” viticultural area is located entirely within Mendocino County, California. The beginning point is the southeast corner of Section 30, Township 12 North (T. 12 N.), Range 10 West (R. 10 W.) located along the Mendocino County/Sonoma County line in the southeast quadrant of U.S.G.S. map “Hopland Quadrangle.”
</P>
<P>(1) From the beginning point, the boundary runs north along the eastern boundary of Sections 30, 19, 18, 7 and 6 to the point labeled Jakes Cr (Jakes Creek) located at the northwest corner of Section 5, T. 12 N., R. 10 W.;
</P>
<P>(2) Thence in a straight line in a northwest direction to the point labeled Bedford Rock in Section 3, T. 13 N., R. 11 W.;
</P>
<P>(3) Thence in a straight line in a northwest direction to a point labeled Red Mtn in Section 17, T. 14 N., R. 11 W.;
</P>
<P>(4) Thence in a straight line in a northwest direction to the southeast corner of Section 25, T. 16 N., R. 11 W.;
</P>
<P>(5) Thence in a straight line in a northeast direction to the northeast corner of Section 1, T. 16 N., R. 11 W. located along the Mendocino County/Lake County line;
</P>
<P>(6) Thence in a straight line in a northwest direction to the northeast corner of Section 5, T. 17 N., R. 11 W.;
</P>
<P>(7) Thence due west along the T.18N./T.17N. common line until the common line intersects with the R.13W./R.12W. common line;</P>
<P>(8) Thence in a straight line in a south-southwesterly direction, crossing onto the Willits map, to the intersection of the 1,600-foot contour line and Baker Creek (within McGee Canyon) along the west boundary line of Section 25, T.17N./R.13W.;
</P>
<P>(9) Thence in a southeasterly direction (downstream) along Bakers Creek to where the creek intersects with the 1,400-foot contour line in Section 25, T.17N/R.13W.;
</P>
<P>(10) Thence in a straight line in a southeasterly direction to the southeast corner of Section 36, T.17N./R.13W.;
</P>
<P>(11) Thence in a straight line in a west-southwesterly direction to the intersection of U.S. Highway 101 and an unnamed road known locally as Reeves Canyon Road in Section 1, T.16N./R.13W.;
</P>
<P>(12) Thence in a straight line in a southeasterly direction to the southeast corner of Section 1, T.16N./R.13W.;
</P>
<P>(13) Thence in a straight line in a south-southwesterly direction to the intersection of an unnamed, unimproved road and an unnamed, intermittent stream, approximately 500 feet south of Seward Creek, in Section 12, T.16N./R.13W.;
</P>
<P>(14) Thence in a straight line in a west-southwesterly direction to the southwest corner of Section 12, T.16N./R.13W.;
</P>
<P>(15) Thence in a straight line in a southwesterly direction to the southwest corner of Section 14, T.16N./R.13W.;
</P>
<P>(16) Thence in a straight line in a southwest direction to the point labeled Eagle Rock located in Section 16, T. 15 N., R. 13 W.;
</P>
<P>(17) Thence in a straight line in a southeast direction to the point labeled Bus McGall Peak located in Section 4, T. 13 N., R. 12 W.;
</P>
<P>(18) Thence in a straight line in a westerly direction to an unnamed hilltop, elevation 2,015 feet, in the northeast corner of Section 9, T. 13 N., R. 13 W.;
</P>
<P>(19) Thence in a straight line in a northwest direction to the junction of Baily Gulch and the South Branch, North Fork of the Navarro River, located in Section 8, T.15N., R.15W.;
</P>
<P>(20) Thence in a straight line in a southwest direction to Benchmark (BM) 1057 located in Section 28, T. 15 N., R. 16 W.;
</P>
<P>(21) Thence due south in a straight line approximately 1.4 miles to Greenwood Creek located in Section 33, T. 15 N., R. 16 W.;
</P>
<P>(22) Thence following Greenwood Creek in a generally southeasterly and then a northeasterly direction to where it intersects with the south section line of Section 16, T. 14 N., R. 15 W., approximately .2 miles west of Cold Springs Road;
</P>
<P>(23) Thence in an easterly direction along the south section lines of Sections 16, 15, and 14, T. 14 N., R. 15 W., to the intersection of the south section line of Section 14 with an unnamed creek;
</P>
<P>(24) Thence in a straight line in a southeasterly direction to Benchmark (BM) 680 located in Section 30, T. 13 N., R. 13 W.;
</P>
<P>(25) Thence continuing in a straight line in a southerly direction to the southwest corner of Section 5, T. 12 N., R. 13 W., and the Mendocino County/Sonoma County line;
</P>
<P>(26) Thence continuing in a straight line in a southeasterly direction to the intersection of the southwest corner of Section 32, T. 12 N., R. 11 W., and the Mendocino County/Sonoma County line;
</P>
<P>(27) Thence following the Mendocino County/Sonoma County line in an easterly, northerly, and then an easterly direction to the beginning point.
</P>
<P>(d) <I>Transition period.</I> A label containing the word “Mendocino” in the brand name (other than in the phrase “Mendocino County” or “Eagle Peak Mendocino County”) or as an appellation of origin approved prior to November 10, 2014 may be used on wine bottled before November 10, 2016 if the wine conforms to the standards for use of the label set forth in § 4.25 or § 4.39(i) of this chapter in effect prior to November 10, 2014.
</P>
<CITA TYPE="N">[T.D. ATF-178, 49 FR 24714, June 15, 1984, as amended by T.D. ATF-397, 63 FR 16904, Apr. 7, 1998; T.D. TTB-124, 79 FR 60972, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.94" NODE="27:1.0.1.1.7.3.45.74" TYPE="SECTION">
<HEAD>§ 9.94   Howell Mountain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Howell Mountain.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Howell Mountain viticultural area are four U.S.G.S. topographic maps in the 7.5 minute series, as follows:
</P>
<P>(1) “Detert Reservoir, CA.,” 1959 (photorevised 1980).
</P>
<P>(2) “Aetna Springs, CA.,” 1958 (photorevised 1981).
</P>
<P>(3) “Calistoga, CA.,” 1958 (photorevised 1980).
</P>
<P>(4) “St. Helena, CA.,” 1960 (photorevised 1980).
</P>
<P>(c) <I>Boundaries.</I> The Howell Mountain viticultural area is located in Napa County, California, and is part of the Napa Valley viticultural area. The exact boundaries of the viticultural area, based on landmarks and points of reference found in the approved maps, as follows:
</P>
<P>(1) Beginning at the 1,400 foot contour line at the intersection of Sections 15 and 16 in R6W/T9N of the Detert Reservoir Quadrangle U.S.G.S. map.
</P>
<P>(2) Then continuing in an east and southeast direction along the 1,400 foot contour line to the southeast corner of Section 23 in R5W/T8N.
</P>
<P>(3) Then in a generally northwest direction along the 1,400 foot contour line until it intersects the line between Sections 21 and 22 in R6W/T9N.
</P>
<P>(4) Then north along the Section 21/22 boundary line to the starting point at the 1,400 foot contour line.
</P>
<CITA TYPE="N">[T.D. ATF-163, 48 FR 57487, Dec. 30, 1983, as amended by T.D. ATF-249, 52 FR 5960, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.95" NODE="27:1.0.1.1.7.3.45.75" TYPE="SECTION">
<HEAD>§ 9.95   Clarksburg.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Clarksburg.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Clarksburg viticultural area are eight U.S.G.S. topographic maps in the 7.5 minute series, as follows:
</P>
<P>(1) Sacramento West, Calif., 1967 (photorevised 1980).
</P>
<P>(2) Saxon, Calif., 1952 (photorevised 1968).
</P>
<P>(3) Clarksburg, Calif., 1967 (photorevised 1980).
</P>
<P>(4) Florin, Calif., 1968 (photorevised 1980).
</P>
<P>(5) Liberty Island, Calif., 1978.
</P>
<P>(6) Courtland, Calif., 1978.
</P>
<P>(7) Bruceville, Calif., 1978 (photorevised 1980).
</P>
<P>(8) Isleton, Calif., 1978.
</P>
<P>(9) Rio Vista, Calif., 1978 (minor revision 1993).
</P>
<P>(c) <I>Boundaries.</I> Beginning at a point (on the Sacramento West topographic map) in Yolo County in T8N/R4E, at the intersection of Jefferson Blvd. and Burrows Ave.,
</P>
<P>(1) Then southwest in a straight line 1.2 miles along Jefferson Blvd. to the eastern bank of the Sacramento River Deep Water Ship Channel.
</P>
<P>(2) Then southwest along the Sacramento River Deep Water Ship Channel, approximately 17 miles to T5N/R3E, to the Class 5 trail on the levee connecting the Sacramento River Deep Water Ship Channel and the dredger cut Miner Slough, approximately 2 miles from the Solano/Yolo County line.
</P>
<P>(3) Then east along the trail to the Miner Slough.


</P>
<P>(4) Then south along Miner Slough to the point where it joins Cache Slough.
</P>
<P>(5) Then south along Cache Slough to the point where it joins the Sacramento River.


</P>
<P>(6) Then east, then generally northeasterly along the meandering Sacramento River to the point where it meets the Delta Cross Channel at the Southern Pacific Railroad.
</P>
<P>(7) Then northeast along the Southern Pacific Railroad for 2 miles, to a point 
<FR>1/3</FR> mile past the intersection of the Southern Pacific Railroad and the eastern branch of Snodgrass Slough.
</P>
<P>(8) Then east approximately 2
<FR>1/2</FR> miles along the levee to Interstate 5 (under construction).
</P>
<P>(9) Then north approximately 8
<FR>1/2</FR> miles along Interstate 5 (under construction, proposed, and completed) to Section 18 in T6N/R5E, at the intersection of Interstate 5 and Hood Franklin Road.
</P>
<P>(10) Then southwest along Hood Franklin Road to the Southern Pacific Railroad Levee, .1 mile northeast of Hood Junction.
</P>
<P>(11) Then north approximately 18 miles along the Southern Pacific Railroad Levee to Section 11 in T7N/R4E, at Freeport Blvd., and then across the Sacramento River at the line between Sections 11 and 14.
</P>
<P>(12) Then northwest along the west bank of the Sacramento River to Burrows Ave.
</P>
<P>(13) Then northwest along Burrows Ave. to the starting point at the intersection of Jefferson Blvd. and Burrows Ave.
</P>
<CITA TYPE="N">[T.D. ATF-166, 49 FR 2759, Jan. 23, 1984, as amended by T.D. TTB-178, 87 FR 13159, Mar. 9, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 9.96" NODE="27:1.0.1.1.7.3.45.76" TYPE="SECTION">
<HEAD>§ 9.96   Mississippi Delta.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Mississippi Delta.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Mississippi Delta viticultural area are three U.S.G.S. maps. They are titled:
</P>
<P>(1) Helena, scale of 1:250,000, 1955 (revised 1977).
</P>
<P>(2) Greenwood, scale of 1:250,000, 1953 (revised 1979).
</P>
<P>(3) Jackson, scale of 1:250,000, 1955 (revised 1973).
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The Mississippi Delta viticultural area is located in Mississippi, Louisiana, and Tennessee. The starting point of the following boundary description is the intersection of the Illinois Central Gulf (I.C.G.) Railroad and the Mississippi River levee system, on the southeast side of Lake Horne, between Lake View, Mississippi, and Walls, Mississippi, on the Helena map.
</P>
<P>(2) <I>Boundary Description.</I> (i) From the starting point generally southward along the Mississippi River levee system until it again intersects the I.C.G. Railroad, near Twin Lake, Mississippi (about 10 miles north of Vicksburg, on the Jackson map). In any place where there is more than one continuous levee, the one closest to the Mississippi River is the boundary.
</P>
<P>(ii) From the intersection described in paragraph (c)(2)(i), the boundary continues southward along the I.C.G. tracks, until they merge with another branch of the I.C.G. Railroad, near Redwood, Mississippi.
</P>
<P>(iii) Then generally northeastward along that other branch of the I.C.G. Railroad, to the Leflore County-Holmes County line (on the Greenwood map).
</P>
<P>(iv) Then southeastward along that county line to the Leflore County-Carroll County line.
</P>
<P>(v) Then generally northward along that county line to Mississippi Route 7.
</P>
<P>(vi) Then generally northeastward along Route 7 to the 90°00′ longitude line.
</P>
<P>(vii) Then northward along that longitude line to Mississippi Route 8.
</P>
<P>(viii) Then eastward along Route 8 to Mississippi Route 35.
</P>
<P>(ix) Then northward along Route 35 to Mississippi Route 322 (on the Helena map).
</P>
<P>(x) Then generally eastward along Route 322 to the Panola Quitman Floodway.
</P>
<P>(xi) Then northward along that floodway to the range line R.9W./R.8W.
</P>
<P>(xii) Then northward along that range line to the 200 ft. contour line (north of Ballentine, Mississippi).
</P>
<P>(xiii) Then generally northeastward along that contour line to Mississippi Route 3.
</P>
<P>(xiv) Then northward along Route 3 to the Tunica County-Tate County line.
</P>
<P>(xv) Then northward along that county line to the Tunica County-De Soto County line.
</P>
<P>(xvi) Then northward along that county line to the I.C.G. Railroad.
</P>
<P>(xvii) Then northward along the I.C.G. tracks to the starting point.
</P>
<CITA TYPE="N">[T.D. ATF-181, 49 FR 34354, Aug. 30, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 9.97" NODE="27:1.0.1.1.7.3.45.77" TYPE="SECTION">
<HEAD>§ 9.97   Sonoita.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Sonoita.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of Sonoita viticultural area are seven U.S.G.S. maps. They are titled:
</P>
<P>(1) Benson Quadrangle, 15 minute series, 1958.
</P>
<P>(2) Fort Huachuca Quadrangle, 15 minute series, 1958.
</P>
<P>(3) Elgin Quadrangle, 15 minute series, 1958.
</P>
<P>(4) Lochiel Quadrangle, 15 minute series, 1958.
</P>
<P>(5) Mount Wrightson Quadrangle, 15 minute series, 1958.
</P>
<P>(6) Sunnyside Quadrangle, 15 minute series, 1958.
</P>
<P>(7) Empire Mountains Quadrangle, 15 minute series, 1958.
</P>
<P>(c) <I>Bouldary</I>—(1) <I>General.</I> The Sonoita viticultural area is located in Arizona. The starting point of the following boundary description is the summit of Mount Wrightson (9,543 feet) in the Santa Rita Mountains.
</P>
<P>(2) <I>Boundary Description</I>—(i) From the starting point southeastward in a straight line for approximately 24 miles, to the summit of Lookout Knob (6,171 feet) in the Canelo Hills.
</P>
<P>(ii) From there in a straight line eastward for approximately 10 miles, to the summit of Huachuca Peak (8,410 feet) in the Huachuca Mountains.
</P>
<P>(iii) From there north-northwestward for approximately 21 miles in a straight line to the summit of Granite Peak (7,413 feet) in the Whetstone Mountains.
</P>
<P>(iv) From there west-southwestward in a straight line for approximately 26 miles, to the summit of Mount Wrightson (the point of beginning).
</P>
<CITA TYPE="N">[T.D. ATF-189, 49 FR 43054, Oct. 26, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 9.98" NODE="27:1.0.1.1.7.3.45.78" TYPE="SECTION">
<HEAD>§ 9.98   Monterey.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Monterey.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundary of the Monterey viticultural area are 36 U.S.G.S. quadrangle maps in the 7.5 minute series, as follows:
</P>
<P>(1) Sycamore Flat, CA, 1956, photoinspected 1972;
</P>
<P>(2) Junipero Serra Peak, CA, 1949, photoinspected 1972;
</P>
<P>(3) Reliz Canyon, CA, 1949;
</P>
<P>(4) Paraiso Springs, CA, 1956;
</P>
<P>(5) Thompson Canyon, CA, 1949, photo-revised 1979;
</P>
<P>(6) Cosio Knob, CA, 1948, photoinspected 1976;
</P>
<P>(7) Espinosa Canyon, CA, 1948;
</P>
<P>(8) San Ardo, CA, 1967;
</P>
<P>(9) Hames Valley, CA, 1949;
</P>
<P>(10) Tierra Redonda Mtn., CA, 1948;
</P>
<P>(11) Bradley, CA, 1949;
</P>
<P>(12) Wunpost, CA, 1948;
</P>
<P>(13) Pancho Rico Valley, CA, 1967;
</P>
<P>(14) Nattras Valley, CA, 1967;
</P>
<P>(15) San Lucas, CA, 1949;
</P>
<P>(16) Pinalito Canyon, CA, 1969;
</P>
<P>(17) North Chalone Peak, CA, 1969;
</P>
<P>(18) Soledad, CA, 1955;
</P>
<P>(19) Mount Johnson, CA, 1968;
</P>
<P>(20) Gonzales, CA, 1955;
</P>
<P>(21) Mt. Harlan Quadrangle, CA, 1968;
</P>
<P>(22) Natividad Quadrangle, CA, 1947, photo-revised 1968, photoinspected 1974;
</P>
<P>(23) San Juan Bautista Quadrangle, CA, 1955, photo-revised 1980;
</P>
<P>(24) Prunedale Quadrangle, CA, 1954, photo-revised 1981;
</P>
<P>(25) Watsonville East Quadrangle, CA, 1955, photo-revised 1980;
</P>
<P>(26) Watsonville West Quadrangle, CA, 1954, photo-revised 1980;
</P>
<P>(27) Moss Landing Quadrangle, CA, 1954, photo-revised 1980;
</P>
<P>(28) Marina Quadrangle, CA, 1947, photo-revised 1968 and 1974;
</P>
<P>(29) Monterey, CA, 1947, photo-revised 1968, photoinspected 1974;
</P>
<P>(30) Mt. Carmel, CA, 1956, photoinspected 1972;
</P>
<P>(31) Carmel Valley, CA, 1956, photoinspected 1974;
</P>
<P>(32) Spreckels, CA, 1947, photo-revised 1968, photoinspected 1975;
</P>
<P>(33) Chualar, CA, 1947, photo-revised 1968, photoinspected 1974;
</P>
<P>(34) Rana Creek, CA, 1956, photoinspected 1973; and
</P>
<P>(35) Palo Escrito Peak, CA, 1956;
</P>
<P>(36) Greenfield, CA, 1956;
</P>
<P>(37) Salinas, CA, 1947 (photorevised 1975); and
</P>
<P>(38) Seaside, CA, 1947 (photorevised 1968, photoinspected 1974).
</P>
<P>(c) <I>Boundary.</I> The Monterey viticultural area is located in Monterey County, California. The boundary is as follows:
</P>
<P>(1) The beginning point is found on the “Sycamore Flat” U.S.G.S. 7.5 minute map at the junction of Arroyo Seco Road and the Jamesburg Road, in the southeast corner of section 21, T(ownship) 19 S., R(ange) 5 E. (This is also the beginning point for the Arroyo Seco viticultural area.)
</P>
<P>(2) The boundary proceeds directly west along the southern boundary of section 21 to the southwest corner of section 21, T. 19 S., R. 5 E.
</P>
<P>(3) Then southeast in a straight diagonal line across section 28 to the southeast corner of section 28, T. 19 S., R. 5 E.
</P>
<P>(4) Then directly east along the southern boundaries of sections 27, 26 and 25 in T. 19 S., R. 5 E., sections 30, 29, 28, 27, 26 and 25 in T. 19 S., R. 6 E., and sections 30, 29, and 28 in T. 19 S., R. 7 E. to the southeast corner of section 28, T. 19 S., R. 7 E.
</P>
<P>(5) Then south along the eastern boundary of section 33 to the southeast corner of section 33, T. 19 S., R. 7 E.
</P>
<P>(6) Then southeast in a straight diagonal line across section 3 to the southeast corner of section 3, T. 20 S., R. 7 E.
</P>
<P>(7) Then south southeast in a straight diagonal line across sections 11 and 14 to the southeast corner of section 14, T. 20 S., R. 7 E.
</P>
<P>(8) Then south along the western boundaries of sections 24 and 25 to the southwest corner of section 25, T. 20 S., R. 7 E.
</P>
<P>(9) Then east along the southern boundaries of sections 25 and 30 to the southeast corner of section 30, T. 20 S., R. 8 E.
</P>
<P>(10) Then southwest in a straight diagonal line across section 31 to the southwest corner of section 31, T. 20 S., R. 8 E.
</P>
<P>(11) Then west along the southern boundary of section 36, T. 20 S., R. 7 E., to the northwest corner of section 6, T. 21 S., R. 8 E.
</P>
<P>(12) Then south along the western boundaries of sections 6 and 7 to the southwest corner of section 7, T. 21 S., R. 8 E.
</P>
<P>(13) Then west along the northern boundary of section 13 to the northwest corner of section 13, T. 21 S., R. 7 E.
</P>
<P>(14) Then south along the western boundaries of sections 13 and 24 to the southwest corner of section 24, T. 21 S., R. 7 E.
</P>
<P>(15) Then east northeast in a straight diagonal line across section 24, T. 21 S., R. 7 E., and across section 19, T. 21 S., R. 8 E., to the northeast corner of section 19, T. 21 S., R. 8 E.
</P>
<P>(16) Then northeast in a straight diagonal line across section 17 to the northeast corner of section 17, T. 21 S., R. 8 E.
</P>
<P>(17) Then southeast in a straight diagonal line across sections 16, 22, 26 and 36 in T. 21 S., R. 8 E. and across sections 6, 8, and 16 in T. 22 S., R. 9 E. to the southeast corner of section 16, T. 22 S., R. 9 E.
</P>
<P>(18) Then east southeast in a straight diagonal line across sections 22, 23, 24, T. 22 S., R. 9 E., and across section 19, T. 22 S., R. 10 E., to the southeast corner of section 19, T. 22 S., R. 10 E.
</P>
<P>(19) Then south southeast in a straight diagonal line across sections 29, 32, and 33, T. 22 S., R. 10 E., to the southeast corner of section 4, T. 23 S., R. 10 E.
</P>
<P>(20) Then south southeast in a straight diagonal line across sections 10, 15, 23, and 26 to the southeast corner of section 26, T. 23 S., R. 10 E.
</P>
<P>(21) Then northwest in a straight diagonal line across section 26 to the northwest corner of section 26, T. 23 S., R. 10 E.
</P>
<P>(22) Then west northwest in a straight diagonal line across sections 22, 21, 20, and 19, T. 23 S., R. 10 E. to the northwest corner of section 24, T. 23 S., R. 9 E.
</P>
<P>(23) Then southeast across sections 24, 25, 30, 31, and 32, to the southeast corner of section 5, T. 24 S., R. 10 E.
</P>
<P>(24) Then east southeast in a straight diagonal line across section 9 to the southeast corner of section 10, T. 24 S., R. 10 E.
</P>
<P>(25) Then south southeast in a straight diagonal line across section 14 to the southeast corner of section 23, T. 24 S., R. 10 E.
</P>
<P>(26) Then southwest in a straight diagonal line to the southwest corner of section 26, T. 24 S., R. 10 E.
</P>
<P>(27) Then south along the western boundary of section 35 to the southwest corner of section 35, T. 24 S., R. 10 E.
</P>
<P>(28) Then east along the southern boundaries of sections 35 and 36 to the southeast corner of section 36, T. 24 S., R. 10 E.
</P>
<P>(29) Then north along the eastern boundaries of sections 36 and 25 to the northeast corner of section 25, T. 24 S., R. 10 E.
</P>
<P>(30) Then northeast in a straight diagonal line across sections 19, 18, and 17 to the northeast corner of section 8, T. 24 S., R. 11 E.
</P>
<P>(31) Then west northwest in a straight diagonal line across section 5 to the northwest corner of section 6, T. 24 S., R. 11 E.
</P>
<P>(32) Then north along the line separating Range 10 E. and Range 11 E. along the eastern boundary lines of sections 36, 25, 24, 13, 12 and 1 in Township 23 S., and along the western boundaries of sections 36, 25, 24, 13, 12 and 1 in Township 22 S., to the northeast corner of section 36, T. 21 S., R. 10 E.
</P>
<P>(33) Then west northwest in a straight diagonal line across sections 25, 26, 23, 22, 15, 16 and 9 to the northwest corner of section 8, T. 21 S., R. 10 E.
</P>
<P>(34) Then northwest in a straight diagonal line to the northwest corner of section 6, T. 21 S., R. 10 E.
</P>
<P>(35) Then west along the northern boundary of section 1, T. 21 S., R. 9 E. to the southeast corner of section 36, T. 20 S., R. 9 E.
</P>
<P>(36) Then northwest in a straight diagonal line across sections 36, 26, 22, 16, 8, and 6 in T. 20 S., R. 9 E. to the northwest corner of section 6, T. 20 S., R. 9 E.
</P>
<P>(37) Then north along the line separating Range 8 E. and Range 9 E. along the western boundaries of sections 36, 25, 24, 13, 12, and 1, T. 19S., R. 8 E. to the northeast corner of section 1, T. 19 S., R. 9 E.
</P>
<P>(38) Then northwest in a straight diagonal line to the point of intersection of the boundary line separating R. 7 E. and R. 8 E. and the boundary line separating T. 17 S. and T. 18 S.
</P>
<P>(39) Then west along the northern boundaries of sections 1 and 2 to the northwest corner of section 2, T. 18 S., R. 7 E.
</P>
<P>(40) Then northwest in a straight diagonal line across section 34 to the northwest corner of section 34, T. 17 S., R. 7 E.
</P>
<P>(41) Then west along the southern boundaries of sections 28 and 29 to the southwest corner of section 29, T. 17 S., R. 7 E.
</P>
<P>(42) Then northwest in a straight diagonal line across sections 30, 24, 14, 10 and 4 to the northwest corner of section 4, T. 17 S., R. 6 E.
</P>
<P>(43) Then north northeast in a straight line across the easternmost portion of section 32 to the northeast corner of section 32, T. 16 S., R. 6 E.
</P>
<P>(44) Then north along the eastern boundary of section 29 to the northeast corner of section 29, T. 16 S., R. 6 E.
</P>
<P>(45) Then northwest in a straight diagonal line across section 20 to the northwest corner of section 20, T. 16 S., R. 6 E.
</P>
<P>(46) Then west northwest in a straight diagonal line across sections 18 and 13 to the northwest corner of section 13, T. 16 S., R. 5 E.
</P>
<P>(47) Then north northwest in a straight diagonal line across sections 11 and 2 to the northwest corner of section 2, T. 16 S., R. 5 E.
</P>
<P>(48) Then west along the southern boundaries of section 34 and 33 to the southwest corner of section 33, T. 15 S., R. 5 E.
</P>
<P>(49) Then north along the western boundary of section 33, T. 15 S., R. 5 E., in a straight line for approximately 0.5 mile to the intersection with the Chualar Land Grant boundary at the northwestern corner of section 33, T. 15 S., R. 5 E.
</P>
<P>(50) Then northeast in a straight diagonal line across the Chualar Land Grant and section 27 to the northeast corner of section 27, T. 15 S., R. 5 E.
</P>
<P>(51) Then northwest in a straight diagonal line across section 22 to the northwest corner of section 22, T. 15 S., R. 5 E.
</P>
<P>(52) Then west in a straight line along the southern boundaries of sections 16 and 17, T. 15 S., R. 5 E., to the southwest corner of section 17 where it intersects with the Encinal Y Buena Esperanza Land Grant boundary.
</P>
<P>(53) Then north and then west along the eastern boundary of the Encinal Y Buena Esperanza Land Grant and the western boundaries of sections 21, 17, 8, and 7, T. 15 S., R. 5 E.
</P>
<P>(54) Then in a straight line from the northwest corner of the Encinal Y Buena Esperanza Land Grant boundary and section 7, T. 15 S., R. 5 E. in a west northwest direction to the point where the power transmission line (with located metal tower) intersects at the western boundary of the Cienega del Gabilan Land Grant and the eastern boundary of the El Alisal Land Grant, T. 14 S., R. 4 E.
</P>
<P>(55) Then north and then northwest along the boundary line between the Cienega del Gabilan Land Grant and El Alisal Land Grant to the westernmost corner of the Cienega del Gabilan Land Grant, T. 14 S., R. 4 E.
</P>
<P>(56) Then west along the boundary line between the Sausal Land Grant and La Natividad Land Grant to the point where the boundary line intersects Old Stage Road.
</P>
<P>(57) Then north along Old Stage Road to the point where Old Stage Road intersects the Monterey County—San Benito County line, T. 13 S., R. 4 E.
</P>
<P>(58) Then northwest along the Monterey County—San Benito County line to the point near the Town of Aromas where the boundary lines of the counties of Monterey, Santa Cruz, and San Benito meet, T. 12 S., R. 3 E.
</P>
<P>(59) Then in a meandering line along the Monterey County—Santa Cruz County line east then southeast to the Pacific Ocean, T. 12 S., R. 1 E.
</P>
<P>(60) Then south along the coastline of Monterey Bay to its intersection with the northwesternmost boundary of Fort Ord Military Reservation, T. 14 S., R. 1 E.
</P>
<P>(61) Then following the boundary line of the Fort Ord Military Reservation in an irregular line generally east, then south, then west to the point where the boundary line of the military reservation meets the Pacific Ocean, T. 15 S., R. 1 E.
</P>
<P>(62) Then following the coastline of the Monterey Peninsula south along the coastline of Carmel Bay to Carmel Point, the northwesternmost point of Point Lobos State Reserve on the Carmel Peninsula.
</P>
<P>(63) Then southeast in a straight diagonal line to the southwestern corner of section 25, T. 16 S., R. 1 W.
</P>
<P>(64) Then east along the southern boundaries of section 25, T. 16 S., R. 1 W., and sections 30 and 29, T. 16 S., R. 1 E., to the southeastern corner of section 29 where it intersects with the southwestern boundary of the El Potrero de San Carlos Land Grant.
</P>
<P>(65) Then southeast along the southwestern boundary line of the El Potrero de San Carlos Land Grant to the southeastern corner of section 33, T. 16 S., R. 1 E.
</P>
<P>(66) Then east along the line separating Township 16 S. and Township 17 S. and across Pinyon Peak to the southeast corner of section 32, T. 16 S., R. 2 E. (This is the beginning and ending point of the boundary of Carmel Valley viticultural area.)
</P>
<P>(67) Then continuing east along the line separating Township 16 S. from Township 17 S. to its point of intersection with the line separating Range 2 E. and Range 3 E.
</P>
<P>(68) Then north along the western boundaries of sections 31, 30, 19, 18, 7 and 6 in T. 16 S., R. 3 E. to the southwestern corner of section 31, T. 15 S., R. 3 E.
</P>
<P>(69) Then in a straight diagonal line east northeast across sections 31, 32 and 33, T. 15 S., R. 3 E. to the southeast corner of section 28, T. 15 S., R. 3 E.
</P>
<P>(70) Then southeast in a straight diagonal line along the eastern boundaries of sections 33 and 34, T. 15 S., R. 3 E., and sections 3, 2, 12, 16, 20, 21, and 28, T. 16 S., R. 4 E., to the point where the eastern boundary line of section 28 intersects the boundary line of the Guadalupe Y Llanitos de Los Correos Land Grant.
</P>
<P>(71) Then south to the southwest corner of section 34, T. 16 S., R. 4 E.
</P>
<P>(72) Then east to the northwest corner of section 2, T. 17 S., R. 4 E.
</P>
<P>(73) Then south along the eastern boundary of section 3 to the southeast corner of section 3, T. 17 S., R. 4 E.
</P>
<P>(74) Then southeast in a straight diagonal line across sections 11, 13, 19, and 29, to the southeast corner of section 29, T. 17 S., R. 5 E.
</P>
<P>(75) Then south along the western boundary of section 33 to the southwest corner of section 33, T. 17 S., R. 5 E.
</P>
<P>(76) Then east along the southern boundary of section 33 to the northeast corner of section 4, T. 18 S., R. 5 E.
</P>
<P>(77) Then southeast in a diagonal line across sections 3 and 11 to the southeast corner of section 11, T. 18 S., R. 5 E.
</P>
<P>(78) Then south along the western boundary of section 13 to the southwest corner of section 13, T. 18 S., R. 5 E.
</P>
<P>(79) Then southeast in a diagonal line across section 24 to the southeast corner of section 24, T. 18 S., R. 5 E.
</P>
<P>(80) Then south along the western boundaries of section 30 and 31 to the southwest corner of section 31, T. 18 S., R. 6 E.
</P>
<P>(81) Then east along the southern boundaries of sections 31 and 32 to the southeast corner of section 32, T. 18 S., R. 6 E. (From this point, the Monterey and Arroyo Seco viticultural areas share the same boundary lines.)
</P>
<P>(82) Then south along the eastern boundaries of sections 5, 8, and 17 to Arroyo Seco Road, T. 19 S., R. 6 E.
</P>
<P>(83) Then southwest in a straight line for approximately 1.0 mile to Benchmark 673, T. 19 S., R. 6 E.
</P>
<P>(84) Then west in a straight line for approximately 1.8 miles to Bench Mark 649.
</P>
<P>(85) Then northwest in a straight line for approximately 0.2 mile to the northeast corner of section 23, T. 19 S., R. 5 E.
</P>
<P>(86) Then west following the northern boundaries of sections 23 and 22 to the northwest corner of section 22, T. 19 S., R. 5 E.
</P>
<P>(87) Then south in a straight line along the western boundary of section 22 to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-177, 49 FR 24718, June 15, 1984, as amended by T.D. ATF-249, 52 FR 5960, Feb. 27, 1987; T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.99" NODE="27:1.0.1.1.7.3.45.79" TYPE="SECTION">
<HEAD>§ 9.99   Clear Lake.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Clear Lake.”
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the Clear Lake viticultural area are four U.S.G.S. maps. The maps are titled as follows:
</P>
<P>(1) “Lower Lake Quadrangle, California,” 15 minute series, 1958;
</P>
<P>(2) “Clearlake Oaks Quadrangle, California,” 15 minute series, 1960;
</P>
<P>(3) “Lakeport Quadrangle, California,” 15 minute series, 1958;
</P>
<P>(4) “Kelseyville Quadrangle, California,” 15 minute series, 1959;
</P>
<P>(5) “Upper Lake Quadrangle, California,” 7.5 minute series, 1996.
</P>
<P>(c) <I>Boundaries.</I> The Clear Lake viticultural area is located in southwestern Lake County, California. The descriptive boundaries of the viticultural area, using landmarks and points of reference on the applicable U.S.G.S. maps, are as follows:
</P>
<EXTRACT>
<P><I>Lower Lake Quadrangle Map</I> (15 minute series); From the beginning point on Mt. Hannah in Section 16, Township 12 North (T12N), Range 8 West (R8W), identified as having an elevation of 3,978 feet, the boundary runs—
</P>
<P>(1) East-southeasterly in a straight line to the point on Seigler Mountain in Section 23, T12N/R8W, identified as having an elevation of 3,692 feet;
</P>
<P>(2) Then east-southeasterly in a straight line to the point on Childers Peak in Section 34, T12N/R7W, identified as having an elevation of 2,188 feet;
</P>
<P>(3) Then east-northeasterly in a straight line to the point on the southeast corner of Section 25, T12N/R7W;
</P>
<P>(4) Then northeasterly in a straight line to the point in Section 16, T12N/R6W, identified as being the “Baker Mine;”
</P>
<P>(5) Then northwesterly in a straight line to the point at the southeast corner of Section 23, T13N/R7W;
</P>
<P>(6) Then northerly along the east line of Sections 23, 14, 11, and 2, to the point at the northeast corner of Section 2, T13N/R7W, on the Clearlake Oaks Quadrangle map;
</P>
<P><I>Clearlake Oaks Quadrangle Map</I> (15 minute series); Continuing from the northeast corner of Section 2, T13N/R7W—
</P>
<P>(7) Then northwesterly in a straight line to the point in Section 21, T14N/R7W, at the top of Round Mountain
</P>
<P>(8) Then northwesterly in a straight line to the southeast corner of Section 4, T14N/R8W;
</P>
<P><I>Lakeport Quadrangle Map</I> (15 minute series); Continuing from the southeast corner of Section 4, T14N/R8W, on the Clearlake Oaks Quadrangle Map—
</P>
<P>(9) Then northwesterly on the Lakeport Quadrangle in a straight line to a point on Charlie Alley Peak in Section 28, T16N/R9W, identified as having an elevation of 3,482 feet;
</P>
<P>(10) Then westerly in a straight line to a point on Hells Peak in Section 29, T16N/R10W, identified as having an elevation of 2,325 feet;
</P>
<P>(11) Then southeasterly in a straight line, crossing onto the Upper Lake quadrangle, to the intersection of the 1,600-foot elevation contour and an unnamed 4-wheel drive road in Section 9, T15N/R10W;
</P>
<P>(12) Then northwesterly, then southwesterly along the 1,600-foot elevation contour to a point in Section 8, T15N/R10W, that is due north of the westernmost structure in a row of three structures located south of Scotts Creek;
</P>
<P>(13) Then south in a straight line, crossing over Scotts Creek and the westernmost structure, to the intersection with an unnamed, unimproved road and the 1,600-foot elevation contour in Section 17, T15N/R10W;
</P>
<P>(14) Then generally east along the 1,600-foot elevation contour to its second intersection with an unnamed, unimproved road in section 15, T15N/R10W;


</P>
<P>(15) The southeasterly in a straight line to a point on Griner Peak in Section 23, T15N/R10W, identified as having an elevation of 2,132 feet;
</P>
<P>(16) Then southwesterly in a straight line to a point on Scotts Mountain in Section 8, T14N/R10W, identified as having an elevation of 2,380 feet;
</P>
<P>(17) Then southeasterly in a straight line to a point on Lakeport Peak in Section 35, T14N/R10W, identified as having an elevation of 2,180 feet;
</P>
<P><I>Kelseyville Quadrangle Map</I> (15 minute series); Continuing from Lakeport Peak in Section 35, T14N/R10W, on the Lakeport Quadrangle Map—
</P>
<P>(18) Then southeasterly in a straight line to the point at the southwest corner of Section 1, T13N/R10W;
</P>
<P>(19) Then south by southeast in a straight line to the point at the southeast corner of Section 36, T13N/R10W;
</P>
<P>(20) Then south by southeasterly in a straight line to the point at the southwest corner of Section 18, T12N/R8W;
</P>
<P>(21) Then east by northeast in a straight line to the beginning point at Mount Hannah, Section 16, T12N/R8W, on the Lower Lake Quadrangle Map.</P></EXTRACT>
<CITA TYPE="N">[T.D. ATF-174, 49 FR 19468, May 8, 1984, as amended by T.D. TTB-182, 87 FR 33645, June 3, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 9.100" NODE="27:1.0.1.1.7.3.45.80" TYPE="SECTION">
<HEAD>§ 9.100   Mesilla Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Mesilla Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of Mesilla Valley viticultural area are 15 U.S.G.S. quadrangle 7.5 minute series maps. They are entitled:
</P>
<P>(1) “Anthony, N. Mex.-Tex.,” 7.5 minute series, edition of 1955;
</P>
<P>(2) “Bishop Cap, N. Mex.,” 7.5 minute series, edition of 1955;
</P>
<P>(3) “Black Mesa, N. Mex.,” 7.5 minute series, edition of 1978;
</P>
<P>(4) “Canutillo, Tex.-N. Mex.,” 7.5 minute series, edition of 1955 (photorevised 1967);
</P>
<P>(5) “Dona Ana, N. Mex.,” 7.5 minute series, edition of 1978;
</P>
<P>(6) “La Mesa, N. Mex.,” 7.5 minute series, edition of 1955;
</P>
<P>(7) “La Union, N. Mex.-Tex.” 7.5 minute series, edition of 1955;
</P>
<P>(8) “Las Cruces, N. Mex.,” 7.5 minute series, edition of 1978;
</P>
<P>(9) “Leasburg, N. Mex.,” 7.5 minute series, edition of 1978;
</P>
<P>(10) “Little Black Mountain, N. Mex.,” 7.5 minute series, edition of 1978;
</P>
<P>(11) “Picacho Mountain, N. Mex.,” 7.5 minute series, edition of 1978;
</P>
<P>(12) “San Miguel, N. Mex.,” 7.5 minute series, edition of 1955;
</P>
<P>(13) “Smeltertown, Tex.-N. Mex.,” 7.5 minute series, edition of 1955 (photorevised 1967 and 1973);
</P>
<P>(14) “Strauss, N. Mex.-Tex.,” 7.5 minute series, edition of 1955; and
</P>
<P>(15) “Tortugas Mountain, N. Mex.,” 7.5 minute series, edition of 1955.
</P>
<P>(c) <I>Boundaries.</I> The Mesilla Valley viticultural area is located within Dona Ana County, New Mexico, and El Paso County, Texas. The boundaries are as follows: The beginning point is at the Faulkner Canyon on the “Leasburg, N. Mex.” U.S.G.S. map at the northwest corner of Section 15, Township 21 South (T21S), Range 1 West (R1W).
</P>
<P>(1) From the beginning point, the boundary runs east 3.7 miles along the north section line until it converges with the 4,200 foot elevation contour line at Section 18, T21S/R1E;
</P>
<P>(2) Then it runs southeasterly 31 miles along the 4,200 foot elevation contour line to a point approximately 3.5 miles south of Bishop Cap where it intersects the Fort Bliss Military Reservation boundary at the northeast portion of Section 13, T25S/R3E on the “Bishop Cap, N. Mex.” U.S.G.S. map;
</P>
<P>(3) Then it follows the Fort Bliss Military Reservation boundary south for approximately 3.7 miles and east approximately .8 mile to the intersection with the 4,200 foot elevation contour line at the southeast portion of Section 6, T26S/R4E on the “Anthony, N. Mex.-Tex.” U.S.G.S. map;
</P>
<P>(4) Then it runs south along the 4,200 foot elevation contour line for approximately 20 miles until it intersects the La Mesa Road (Mesa Avenue) in the city limits of El Paso, Texas, on the “Smeltertown, Tex.-N. Mex.” U.S.G.S. map;
</P>
<P>(5) Then it heads south on the La Mesa Road (Mesa Avenue) for 1.2 miles until it meets Executive Center Boulevard that goes to La Guna/Smeltertown;
</P>
<P>(6) Then it travels in a southwesterly direction for 1.1 miles on Executive Center Boulevard to La Guna/Smeltertown until it crosses the Southern Pacific Railroad tracks at Smeltertown, Texas;
</P>
<P>(7) Then it proceeds back into New Mexico northwesterly along the Southern Pacific Railroad tracks approximately 12.5 miles to a point near the switch yards at Strauss, New Mexico, where it intersects the 4,100 foot elevation contour line at the center of Section 24, T28S/R2E on the “Strauss, N. Mex.-Tex.” U.S.G.S. map;
</P>
<P>(8) Then it follows the 4,100 foot elevation contour line in a northwesterly direction for 17 miles until it intersects with the south section line of Section 29, T25S/R2E, on the “Little Black Mountain, N. Mex.” U.S.G.S. map;
</P>
<P>(9) Then it runs westerly approximately .5 mile along the south section line until it meets the 4,150 foot elevation contour line at Section 29, T25S/R2E;
</P>
<P>(10) Then it follows the 4,150 foot elevation contour line northward for 15 miles until it meets with Interstate Highway 70/80/180 at the southeast corner of Section 19, T23S/R1E, on the “Las Cruces, N. Mex.” U.S.G.S. map;
</P>
<P>(11) Then it runs southwest along Interstate Highway 70/80/180 for approximately .9 mile until it reaches the 4,200 foot elevation contour line at the northwest corner of Section 30, T23S/R1E, on the “Picacho Mt., N. Mex.” U.S.G.S. map;
</P>
<P>(12) Then it meanders in a northerly direction on the 4,200 foot elevation contour line for 15 miles until it reaches the section line at the southwest corner of Section 15, T21S/R1W on the “Leasburg, N. Mex.” U.S.G.S. map;
</P>
<P>(13) Then finally it goes north along the section line to Faulkner Canyon until it meets with the northwest corner of Section 15, T21S/R1W, which is the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-197, 50 FR 6163, Feb. 14, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 9.101" NODE="27:1.0.1.1.7.3.45.81" TYPE="SECTION">
<HEAD>§ 9.101   The Hamptons, Long Island.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “The Hamptons, Long Island.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of “The Hamptons, Long Island” viticultural area are 5 U.S.G.S. maps. They are entitled:
</P>
<P>(1) “Riverhead, N.Y.,” 7.5 minute series, scaled at 1:24,000, edition of 1956;
</P>
<P>(2) “Eastport, N.Y.,” 7.5 minute series, scaled at 1:24,000, edition of 1956;
</P>
<P>(3) “New York, N.Y.; N.J.; Conn., U.S. 1:250,000 series, scaled at 1:250,000, edition of 1960, revised 1979;
</P>
<P>(4) “Providence, R.I.; Mass.; Conn.; N.Y., U.S. 1:250,000 series, scaled at 1:250,000, edition of 1947, revised 1969, and
</P>
<P>(5) “Hartford, Conn.; N.Y.; N.J.; Mass., U.S. 1:250,000 series, scaled at 1:250,000, edition of 1962, revised 1975.
</P>
<P>(c) <I>Boundaries.</I> The boundaries of the viticultural area are as follows: “The Hamptons, Long Island” viticultural area is located entirely within eastern Suffolk County, Long Island, New York. The viticultural area boundaries consist of all of the land areas of the South Fork of Long Island, New York, including all of the beaches, shorelines, islands and mainland areas in the Townships of Southampton and East Hampton (including Gardiners Island). The beginning point is found on the “Riverhead, N.Y.” U.S.G.S. map on the Peconic River about 2 miles east of Calverton where the Townships of Riverhead, Brookhaven and Southampton meet:
</P>
<P>(1) The boundary travels south approximately 10 miles along the Southampton/Brookhaven Township line until it reaches the dunes on the Atlantic Ocean near Cupsogue Beach on the “Eastport, N.Y.” U.S.G.S. map.
</P>
<P>(2) Then the boundary proceeds east and west along the beaches, shorelines, islands and mainland areas of the entire South Fork of Long Island described on the “New York,” “Providence,” and “Hartford” U.S.G.S. maps until it reaches the Peconic River near Calverton at the beginning point. These boundaries consist of all of the land found in the Townships of Southampton and East Hampton (including Gardiners Island).
</P>
<CITA TYPE="N">[T.D. ATF-205, 50 FR 20413, May 16, 1985, as amended by T.D. ATF-344, 58 FR 40354, July 28, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 9.102" NODE="27:1.0.1.1.7.3.45.82" TYPE="SECTION">
<HEAD>§ 9.102   Sonoma Mountain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Sonoma Mountain.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundary of the Sonoma Mountain viticultural area are 2 U.S.G.S. topographic maps in the 7.5 minute series, as follows:
</P>
<P>(1) Glen Ellen, Calif., dated 1954, photorevised 1980; and
</P>
<P>(2) Kenwood, Calif., dated 1954, photorevised 1980.
</P>
<P>(c) <I>Boundary.</I> The Sonoma Mountain viticultural area is located in Sonoma County, California. The boundary is as follows:
</P>
<P>(1) The beginning point is the northern most point at which the 1600-foot contour line crosses the section line dividing section 22 from section 23, in Township 6 North, Range 7 West.
</P>
<P>(2) The boundary follows this section line north to the 800-foot contour line.
</P>
<P>(3) The boundary follows the 800-foot contour line westerly, easterly, and northerly to Bennett Valley Road.
</P>
<P>(4) The boundary follows Bennett Valley Road easterly to Enterprise Road.
</P>
<P>(5) The boundary follows Enterprise Road southeasterly to an unnamed stream, in Section 7, Township 6 North, Range 7 West, which crosses Enterprise Road near the point at which the road turns from an easterly to a southerly direction.
</P>
<P>(6) The boundary follows this stream easterly to the 400-foot contour line.
</P>
<P>(7) The boundary follows the 400-foot contour line southerly to the township line dividing Township 6 North from Township 5 North.
</P>
<P>(8) The boundary follows a straight line extension of this township line west to the 1200-foot contour line.
</P>
<P>(9) The boundary follows the 1200-foot contour line northwesterly to the range line dividing Range 6 West from Range 7 West.
</P>
<P>(10) The boundary follows this range line south to the 1600-foot contour line.
</P>
<P>(11) The boundary follows this contour line westerly to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-196, 50 FR 2979, Jan. 23, 1985, as amended by T.D. ATF-249, 52 FR 5960, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.103" NODE="27:1.0.1.1.7.3.45.83" TYPE="SECTION">
<HEAD>§ 9.103   Mimbres Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Mimbres Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Mimbres Valley viticultural area are 28 U.S.G.S. quadrangle maps (26-7.5 minute series and 2-15 minute series). They are entitled:
</P>
<P>(1) “Akela, N. Mex.,” 7.5 minute series, edition of 1972;
</P>
<P>(2) “Antelope Hill, N. Mex.,” 7.5 minute series, edition of 1963 (photoinspected 1974);
</P>
<P>(3) “Bisbee Hills, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(4) “Bowlin Ranch, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(5) “Capital Dome, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(6) “Carne, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(7) “Columbus, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(8) “Columbus NE, N. Mex.,” 7.5 minute series, edition of 1966;
</P>
<P>(9) “Columbus SE, N. Mex.,” 7.5 minute series, edition of 1966;
</P>
<P>(10) “Deming East, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(11) “Deming West, N. Mex.,” 7.5 minute series, edition of 1964 (photoinspected 1972);
</P>
<P>(12) “Dwyer, N. Mex.,” 15 minute series, edition of 1956;
</P>
<P>(13) “Faywood Station, N. Mex.,” 7.5 minute series, edition of 1947;
</P>
<P>(14) “Florida Gap, N. Mex.,” 7.5 minute series, edition of 1964;
</P>
<P>(15) “Goat Ridge, N. Mex.,” 7.5 minute series, edition of 1964;
</P>
<P>(16) “Gym Peak, N. Mex.,” 7.5 minute series, edition of 1964;
</P>
<P>(17) “Hermanas, N. Mex.,” 7.5 minute series, edition of 1964;
</P>
<P>(18) “Malpais Hill, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(19) “Midway Butte, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(20) “Myndus, N. Mex.,” 7.5 minute series, edition of 1972;
</P>
<P>(21) “North Peak, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(22) “Red Mountain, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(23) “San Lorenzo, N. Mex.,” 15 minute series, edition of 1956;
</P>
<P>(24) “Sibley Hole, N. Mex.,” 7.5 minute series, edition of 1972;
</P>
<P>(25) “South Peak, N. Mex.,” 7.5 minute series, edition of 1965;
</P>
<P>(26) “Spalding, N. Mex.,” 7.5 minute series, edition of 1964;
</P>
<P>(27) “West Lime Hills, N. Mex.,” 7.5 minute series, edition of 1965; and
</P>
<P>(28) “Williams Ranch, N. Mex.,” 7.5 minute series, edition of 1964.
</P>
<P>(c) <I>Boundaries.</I> The Mimbres Valley viticultural area is located within Grant and Luna Counties, New Mexico. The boundaries are as follows: The beginning point is located at Faywood Station on an unimproved dirt road at benchmark 4911 in Luna County, New Mexico on the northern part of Section 2, Township 21 South (T21S), Range 12 West (R12W) on the Faywood Station Quadrangle U.S.G.S. map;
</P>
<P>(1) From the beginning point the boundary runs northeast 2.25 miles along an unimproved dirt road until it intersects U.S. Route 180 (indicated on map as U.S. Rte. 260) at New Mexico Highway 61 (indicated on map as an unnumbered secondary highway) at the south portion of Sec. 30, T20S/R11W;
</P>
<P>(2) The boundary proceeds in a generally northerly direction on N.M. Hwy. 61 for 34.5 miles crossing over U.S. Rte. 90 (indicated on map as U.S. Rte. 180) west of San Lorenzo, N.M. until it meets an unimproved dirt road near Bear Canyon Dam at the west line of Sec. 28, T16S/R11W on the San Lorenzo, N. Mex. U.S.G.S. map;
</P>
<P>(3) It then heads east on the unimproved dirt road for .2 mile until it meets the Mimbres River at Sec. 28, T16S/R11W;
</P>
<P>(4) It then goes south on the Mimbres River for .25 mile until it intersects the 6,000 foot elevation contour line at Sec. 28, T16S/R11W;
</P>
<P>(5) From there the boundary runs south along the 6,000 foot elevation contour line until it meets the east line of Sec. 11, T17S/R11W;
</P>
<P>(6) Then it proceeds south on the section line for .6 mile until it hits the south line of Sec. 12, T17S/R11W;
</P>
<P>(7) Then it travels east on the section line for 1.8 miles until it intersects an unimproved dirt road in Noonday Canyon on the north line of Sec. 18, T17S/R10W;
</P>
<P>(8) It then heads south on the unimproved dirt road for 2.2 miles until it intersects a medium duty road at the northern part of Sec. 30, T17S/R10W;
</P>
<P>(9) The boundary goes south on the medium duty road for .8 mile until it reaches the north line of Sec. 31, T17S/R10W;
</P>
<P>(10) The boundary goes east 5 miles on the section line to the east line of Sec. 36, T17S/R10W;
</P>
<P>(11) The boundary proceeds south on the section line for 13 miles to the south line of Sec. 36 (also indicated on map as Luna/Grant Country line), T19S/R10W on the Dwyer, N. Mex. U.S.G.S. map;
</P>
<P>(12) The boundary travels west on the Luna/Grant County line for three miles to the east line of Sec. 4, T20S/R10W;
</P>
<P>(13) The boundary goes south on the section line for three miles to the south line of Sec. 16, T20S/R10W;
</P>
<P>(14) Then it goes west on the section line for approximately .6 mile to a light duty road located 500 feet south of Benchmark 5119 on the south line of Sec. 16, T20S/R10W;
</P>
<P>(15) The boundary heads south on the light duty road for approximately 10.25 miles until it meets Hwy. 180 at Benchmark 4672 near the west line of Sec. 9, T22S/R10W on the Spalding, N. Mex. U.S.G.S. map;
</P>
<P>(16) Then it proceeds southeasterly on Hwy. 180 for approximately 5 miles to the north line of Sec. 6, T23S/R9W on the Deming West, N. Mex. U.S.G.S. map;
</P>
<P>(17) It then goes east on the section line approximately 11.75 miles to the east line of Sec. 1, T23S/R8W on the Carne, N. Mex. U.S.G.S. map;
</P>
<P>(18) It then travels south on the section line for 1.5 miles until it meets an unimproved dirt road at Sec. 12, T23S/R8W;
</P>
<P>(19) It follows the unimproved dirt road in an easterly direction for 3 miles to Carne Windmill at the northeast part of Sec. 17, T23S/R7W;
</P>
<P>(20) From there it follows an unimproved dirt road in a southeasterly direction for .75 mile until it meets the south line of Sec. 16, T23S/R7W;
</P>
<P>(21) Then it proceeds east along the section line for 9 miles until it arrives at the east line of Sec. 24, T23S/R6W on the Myndus, N. Mex. U.S.G.S. map;
</P>
<P>(22) Then it goes south on the section line for 15 miles until it meets the south line of Sec. 36, T25S/R6W on the Sibley Hole, N. Mex. U.S.G.S. map;
</P>
<P>(23) Then it heads west on the section line for 8 miles until it intersects the 4,200 foot elevation contour line at the southeast corner of Sec. 34, T25S/R7W on the Gym Peak, N. Mex. U.S.G.S. map;
</P>
<P>(24) Then it heads north on the 4,200 foot elevation contour line for 11 miles until it meets N.M. Hwy. 549 (indicated on map as U.S. Rte. 70/80/180) at the southwest corner of Sec. 5, T24S/R7W on the Florida Gap, N. Mex. U.S.G.S. map;
</P>
<P>(25) The boundary heads west on M.M. Hwy. 549 (indicated on map as U.S. Rte. 70/80/180) for 4.5 miles until it meets the light duty road at the east line of Sec. 3, T24S/R8W on the Capital Dome, N. Mex. U.S.G.S. map;
</P>
<P>(26) It then goes south on the light duty road/section line for 4 miles until it meets another light duty road at the south line of Sec. 22, T24S/R8W;
</P>
<P>(27) Then the boundary heads west for 2 miles on the light duty road/section line until it intersects an unimproved dirt road at the east line of Sec. 29, T24S/R8W;
</P>
<P>(28) Then it travels south on the unimproved dirt road/section line for 2 miles until it meets another unimproved dirt road at the south line of Sec. 32, T24S/R8W;
</P>
<P>(29) It then moves west .25 mile on the unimproved dirt road until it reaches the east line of Sec. 5, T25S/R8W;
</P>
<P>(30) Then it goes south on the section line for 6 miles until it reaches an unimproved dirt road near Crawford Ranch at the north line of Sec. 5, T25S/R8W on the South Peak, N. Mex. U.S.G.S. map;
</P>
<P>(31) Then it follows the unimproved dirt road in a southwest then southern direction for approximately 3 miles until it hits the north line of Sec. 19, T26S/R8W;
</P>
<P>(32) It then travels east for 1.1 mile along the section line until it hits the east line of Sec. 20, T26S/R8W;
</P>
<P>(33) From there it proceeds south for 2 miles on the section line until it intersects the north line of Sec. 33, T26S/R8W;
</P>
<P>(34) It then heads east for 5 miles on the section line until it intersects the east line of Sec. 31, T26S/R7W on the Gym Peak, N. Mex. U.S.G.S. map;
</P>
<P>(35) The boundary goes south on the section line for 7 miles until it meets the north line of Sec. 5 (which also is a light duty road), T28S/R7W on the Columbus NE, N. Mex. U.S.G.S. map;
</P>
<P>(36) Then it goes east for 4 miles on the section line until it meets the east line of Sec. 2 near Oney Tank T28S/R7W;
</P>
<P>(37) Then it goes south on the section line for 8.7 miles until it meets the New Mexico, U.S.A./Mexico International border at the east line of Sec. 17, T29S/R7W on the Columbus SE, N. Mex. U.S.G.S. map;
</P>
<P>(38) The boundary follows in a westerly direction along the International border for 23 miles to the west line of Sec. 18, T29S/R10W on the Hermanas, N. Mex. U.S.G.S. map;
</P>
<P>(39) It then heads north on the western section for 3.5 miles to the north line of Sec. 31, T28S/R10W;
</P>
<P>(40) It then moves east for 13 miles on the section line until it intersects the east line of Sec. 32, T28S/R8W on the Columbus, N. Mex. U.S.G.S. map;
</P>
<P>(41) Then it follows the section line north for 8 miles until it meets the south line of Sec. 18, T27S/R8W on the North Peak, N. Mex. U.S.G.S. map;
</P>
<P>(42) Then it proceeds west on the section line for 11 miles to the west part of Sec. 16 identified as longitude point 107 degrees, 52 minutes, 30 seconds, T27S/R10W on the West Lime Hills, N. Mex. U.S.G.S. map;
</P>
<P>(43) Then it moves north on the 107 degrees, 52 minutes, 30 seconds longitude point for 9 miles until it intersects the north line of Sec. 4, T26S/R10W on the Midway Butte, N. Mex. U.S.G.S. map;
</P>
<P>(44) Then it goes west on the section line for 6.5 miles until it meets the west line of Sec. 33, T25S/R11W on the Bisbee Hills, N. Mex. U.S.G.S. map;
</P>
<P>(45) The boundary then travels north on the section line for 26.5 miles (crossing the Southern Pacific Railroad tracks) until it intersects with the Atchison, Topeka and Santa Fe Railroad tracks on the west line of Sec. 21, T21S/R11W on the Spalding, N. Mex. U.S.G.S. map;
</P>
<P>(46) Finally it follows the Atchison, Topeka and Santa Fe Railroad tracks in a northwesterly direction for 5 miles until it reaches the beginning point at benchmark 4911 on an unimproved dirt road in Faywood Station at Sec. 2, T21S/R12W on the Faywood Station, N. Mex. U.S.G.S. map.
</P>
<CITA TYPE="N">[T.D. ATF-217, 50 FR 48081, Nov. 21, 1985, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.104" NODE="27:1.0.1.1.7.3.45.84" TYPE="SECTION">
<HEAD>§ 9.104   South Coast.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “South Coast.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of South Coast viticultural area are four U.S.G.S. maps. They are titled:
</P>
<P>(1) San Diego, 1:250,000 series, 1958 (revised 1978).
</P>
<P>(2) Santa Ana, 1:250,000 series, 1959 (revised 1979).
</P>
<P>(3) Long Beach, 1:250,000 series, 1957 (revised 1978).
</P>
<P>(4) Wildomar Quadrangle, 7.5 minute series, 1953 (photorevised 1973).
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The South Coast viticultural area is located in California. The starting point of the following boundary description is the northern intersection of the Orange County line with the Pacific Ocean (on the Long Beach map).
</P>
<P>(2) <I>Boundary Description.</I> (i) From the starting point generally northeastward, eastward, and southeastward along the Orange County line, to the intersection of that county line with the township line on the northern border of Township 7 South (in Range 6 West; on the Santa Ana map).
</P>
<P>(ii) From there eastward along that township line to its intersection with the northern boundary of the Temecula viticultural area described in § 9.50; at this point, the Temecula viticultural area boundary coincides with the boundary of the Cleveland National Forest (on the Wildomar Quadrangle map).
</P>
<P>(iii) From there following the northern boundary of the Temecula viticultural area, at and near its northernmost point, generally northeastward, eastward, and southeastward until the Temecula viticultural area boundary again intersects the township line on the northern border of Township 7 South (in Range 4 West; thus all of the Temecula viticultural area is included inside of South Coast viticultural area).
</P>
<P>(iv) Then eastward, along the township line on the northern border of Township 7 South, to the San Bernardino Meridian (on the Santa Ana map).
</P>
<P>(v) Then southward along the San Bernardino Meridian to the Riverside County-San Diego County line.
</P>
<P>(vi) Then westward along that county line for about 7
<FR>1/2</FR> miles, to the western boundary of the Cleveland National Forest (near the Pechanga Indian Reservation).
</P>
<P>(vii) Then generally southeastward along the Cleveland National Forest boundary to where it joins California Highway 76.
</P>
<P>(viii) From there generally southeastward along Highway 76 to California Highway 79.
</P>
<P>(ix) Then southeastward along Highway 79 to the township line on the northern border of Township 12 South (in Range 3 East).
</P>
<P>(x) Then eastward along that township line to its intersection with the range line on the eastern border of Range 3 East.
</P>
<P>(xi) From there southward along that range line to the U.S.-Mexico international border.
</P>
<P>(xii) Then westward along that international border to the Pacific Ocean.
</P>
<P>(xiii) Then generally northwestward along the shore of the Pacific Ocean to the starting point.
</P>
<CITA TYPE="N">[T.D. ATF-218, 50 FR 48084, Nov. 21, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 9.105" NODE="27:1.0.1.1.7.3.45.85" TYPE="SECTION">
<HEAD>§ 9.105   Cumberland Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Cumberland Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Cumberland Valley viticultural area are the following 32 U.S.G.S. topographical maps of the 7.5 minute series:
</P>
<P>(1) “Williamsport Quadrangle”, edition of 1969.
</P>
<P>(2) “Shepherdstown Quadrangle”, edition of 1978.
</P>
<P>(3) “Keedysville Quadrangle”, edition of 1978.
</P>
<P>(4) “Middletown Quadrangle”, edition of 1953, photo-revised 1979.
</P>
<P>(5) “Myersville Quadrangle”, edition of 1953, photo-revised 1971.
</P>
<P>(6) “Smithsburg Quadrangle”, edition of 1953, photo-revised 1971.
</P>
<P>(7) “Waynesboro Quadrangle”, edition of 1944, photo-revised 1968 and 1973.
</P>
<P>(8) “Iron Springs Quadrangle”, edition of 1953, photo-revised 1968 and 1973.
</P>
<P>(9) “Scotland Quadrangle”, edition of 1944, photo-revised 1968 and 1973.
</P>
<P>(10) “Caledonia Park Quadrangle”, edition of 1944, photo-revised 1968 and 1973.
</P>
<P>(11) “Walnut Botton Quadrangle”, edition of 1952, photo-revised 1969 and 1977.
</P>
<P>(12) “Dickinson Quadrangle”, edition of 1952, photo-revised 1969 and 1977.
</P>
<P>(13) “Mount Holly Springs Quadrangle”, edition of 1952, photo-revised 1968 and 1973.
</P>
<P>(14) “Mechanicsburg Quadrangle”, edition of 1952, photo-revised 1968 and 1973.
</P>
<P>(15) “LeMoyne Quadrangle”, edition of 1963, photo-revised 1972.
</P>
<P>(16) “Steelton Quadrangle”, edition of 1963, photo-revised 1972.
</P>
<P>(17) “Harrisburg West Quadrangle”, edition of 1969, photo-revised 1974.
</P>
<P>(18) “Wertzville Quadrangle”, edition of 1952, photo-revised 1968 and 1973.
</P>
<P>(19) “Sherman's Dale Quadrangle”, edition of 1952, photo-revised 1968 and 1973.
</P>
<P>(20) “Landisburg Quadrangle”, edition of 1952, photo-revised 1969 and 1977.
</P>
<P>(21) “Andersonburg Quadrangle”, edition of 1952, photo-revised 1969 and 1977.
</P>
<P>(22) “Newville Quadrangle”, edition of 1952, photo-revised 1969 and 1975.
</P>
<P>(23) “Newburg Quadrangle”, edition of 1966, photo-revised 1973.
</P>
<P>(24) “Doylesburg Quadrangle”, edition of 1966, photo-revised 1973.
</P>
<P>(25) “Roxbury Quadrangle”, edition of 1966, photo-revised 1973.
</P>
<P>(26) “Fannettsburg Quadrangle”, edition of 1966, photo-revised 1973.
</P>
<P>(27) “St. Thomas Quadrangle” edition of 1944, photo-revised 1968 and 1973.
</P>
<P>(28) “McConnellsburg Quadrangle”, edition of 1944, photo-revised 1968 and 1973.
</P>
<P>(29) “Mercersburg Quadrangle”, edition of 1943, photo-revised 1968 and 1973.
</P>
<P>(30) “Clear Spring Quadrangle”, edition of 1955, photo-revised 1971.
</P>
<P>(31) “Hedgesville Quadrangle”, edition of 1979.
</P>
<P>(32) “Mason Dixon Quadrangle”, edition of 1943-53 (photorevised 1971).
</P>
<P>(33) “Hagerstown Quadrangle”, edition of 1943-53 (photorevised 1971, photoinspected 1977).
</P>
<P>(34) “Funkstown Quadrangle”, edition of 1943-53 (photorevised 1971, photoinspected 1977).
</P>
<P>(35) “Plainfield Quadrangle”, edition of 1975.
</P>
<P>(36) “Shippensburg Quadrangle”, edition of 1973.
</P>
<P>(37) “Chambersburg Quadrangle”, edition of 1973.
</P>
<P>(38) “Williamson Quadrangle”, edition of 1973.
</P>
<P>(39) “Greencastle Quadrangle”, edition of 1973.
</P>
<P>(40) “Dillsburg Quadrangle”, edition of 1973.
</P>
<P>(c) <I>Boundary.</I> The Cumberland Valley viticultural area is located in Washington County in west-central Maryland and Franklin and Cumberland counties in south-central Pennsylvania. The boundary is as follows:
</P>
<P>(1) Starting immediately west of the Town of Williamsport in Washington County, Maryland, at Lock 45 of the Chesapeake &amp; Ohio (C&amp;O) Canal National Historical Park and the confluence of the Potomac River and Conococheague Creek (see Williamsport Quadrangle), the boundary proceeds in a southeasternly direction along the perimeter of the park on the northeastern bank of the Potomac River to the confluence of Antitam Creek and the Potomac River;
</P>
<P>(2) Then southeast of Limekiln Road which runs along the perimeter of the park from Antietam Creek to the intersection of Limekiln Road and Harpers Ferry Road;
</P>
<P>(3) Then northeasterly a straight line approximately two miles to the 952-foot summit of Hawk's Hill;
</P>
<P>(4) Then northerly on a straight line approximately 2.5 miles to the intersection of Red Hill Road and Porterstown Road;
</P>
<P>(5) Then southeasterly along Porterstown Road to its intersection with Mount Briar—Trego Road;
</P>
<P>(6) Then southerly along Mount Briar—Trego Road to its intersection with Millbrook Road;
</P>
<P>(7) Then east along Millbrook Road to its intersection with State Route 67, approximately 0.5 mile north of Rohersville, Maryland;
</P>
<P>(8) Then directly east approximately 1.25 miles in a straight line to the 1,000-foot contour line of South Mountain;
</P>
<P>(9) Then in a north northeasterly direction along the 1,000-foot contour line of South Mountain in Washington County, Maryland, and Franklin and Cumberland counties in Pennsylvania to the point on South Mountain where the 1,000-foot contour line crosses State Hollow Road (Rt. 233);
</P>
<P>(10) Then north along Rt. 233 to the point where it crosses the 750-foot contour of South Mountain;
</P>
<P>(11) Then east along the 750-foot contour line of South Mountain to the point southwest of the Mount Holly Springs Reservoir where Cold Spring Run, a tributary of Yellow Breeches Creek, crosses the 750-foot contour line, approximately 3 miles southwest of the town of Mount Holly Springs, Pennsylvania;
</P>
<P>(12) Then east northeast in a straight line approximately seven miles to Center Point Knob, elev. 1050 feet, approximately two miles southeast of Boiling Springs, Pennsylvania (see Mechanicsburg Quadrangle);
</P>
<P>(13) Then continuing east northeast in a straight line approximately six miles to the point where U.S. Rt. 15 crosses Yellow Breeches Creek, approximately one mile east of Williams Grove, Pennsylvania;
</P>
<P>(14) Then east and northeast in a meandering line along the north bank of Yellow Breeches Creek to its confluence with the Susquehanna River;
</P>
<P>(15) Then north along the west bank of the Susquehanna River, which forms the western portion of the corporate boundary line of the City of Harrisburg, Pennsylvania, to the point where the 300-foot contour line and the west bank of the Susquehanna River meet;
</P>
<P>(16) Then directly west to the 700-foot contour line of Blue Mountain overlooking the Susquehanna River;
</P>
<P>(17) Then along the 700-foot contour line of Blue Mountain as it meanders west and around McClures Gap;
</P>
<P>(18) Then along the 700-foot contour line of Blue Mountain to the point where the 700-foot contour line crosses State Rt. 233;
</P>
<P>(19) Then northeast along Rt. 233 through Doubling Gap to the 1,000-foot contour line of Blue Mountain;
</P>
<P>(20) Then in a generally southwesterly direction along the 1,000-foot contour line of Blue Mountain into Franklin County to the point where the 1,000-foot contour line meets the roadbed of the Pennsylvania Turnpike, Interstate 76;
</P>
<P>(21) Then along the roadbed of the Pennsylvania Turnpike to the east entrance of the Blue Mountain Tunnel;
</P>
<P>(22) Then in a straight line approximately 6.5 miles to the intersection of State Rt. 533 and the 1,000-foot contour line of Blue Mountain, approximately one mile west northwest of Upper Strasburg, Pennsylvania;
</P>
<P>(23) Then southwest along the 1,000-foot contour line of Blue Mountain to and along the 1,000-foot contour line of Broad Mountain; 
</P>
<P>(24) Then along the 1,000-foot contour line as it meanders along and around Broad Mountain and Front Mountain to the point where the 1,000-foot contour line crosses Wilson Run near Franklin Furnace, Pennsylvania;
</P>
<P>(25) Then southwest in a straight line approximately 3.5 miles to Parnell Knob, elev. 2060 feet;
</P>
<P>(26) Then west northwest in a straight line approximately four miles to the point where the 1,000-foot contour line crosses Township Run near Cape Horn on Cove Mountain, approximately two miles north northwest of Fort Loudon, Pennsylvania;
</P>
<P>(27) Then southwest along the 1,000-foot contour line of Cove Mountain into and out of Cove Gap;
</P>
<P>(28) Then along the 1,000-foot contour line of Cove Mountain and Two Top Mountain in Franklin County, Pennsylvania, and Sword Mountain and Fairview Mountain in Washington County, Maryland, to the point on Fairview Mountain where the 1,000-foot contour line intersects the National Road (U.S. Rt. 40);
</P>
<P>(29) Then west along U.S. Rt. 40 approximately 0.5 mile to the intersection of U.S. Rt. 40 and Cove Road;
</P>
<P>(30) Then south in a straight line from the intersection of U.S. Rt. 40 and Cove Road approximately 1.25 miles to the intersection of McCoys Ferry Road and State Rt. 56;
</P>
<P>(31) Then south along McCoys Ferry Road to the perimeter of the C&amp;O Canal National Historical Park along the Potomac River;
</P>
<P>(32) Then southeast along the perimeter of the C&amp;O National Historical Park to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-210, 50 FR 29971, July 23, 1985, as amended by T.D. ATF-249, 52 FR 5960, Feb. 27, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.106" NODE="27:1.0.1.1.7.3.45.86" TYPE="SECTION">
<HEAD>§ 9.106   North Yuba.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “North Yuba.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of North Yuba viticultural area are the following four U.S.G.S. topographical maps of the 7.5 minute series:
</P>
<P>(1) “Oregon House Quadrangle,” edition of 1948, photo-revised 1969.
</P>
<P>(2) “Rackerby Quadrangle,” edition of 1948, photo-revised 1969.
</P>
<P>(3) “Challenge Quadrangle,” edition of 1948 photo-revised 1969.
</P>
<P>(4) “French Corral Quadrangle,” edition of 1948, photo-revised 1969.
</P>
<P>(c) <I>Boundary.</I> The North Yuba viticultural area is located in Yuba County in the State of California. The boundary is as follows:
</P>
<P>(1) Beginning on the “Oregon House Quadrangle” map at the point where the Browns Valley Ditch crosses Woods Creek in the southwest corner of section 25, T. 17 N., R. 6 E., the boundary proceeds northeasterly in a meandering line approximately 1.5 miles along the east bank of Woods Creek to the point near Richards Ranch where the paved light duty road crosses said creek;
</P>
<P>(2) Then west and north, approximately 0.33 mile to the point where the paved light duty road meets the unimproved dirt road accessing Dixon Hill and Texas Hill;
</P>
<P>(3) Then northwest continuing along the paved light duty road approximately 2.75 miles to the intersection at Oregon House of said light duty road with the medium duty road which travels east and west between Virginia Ranch Reservoir of Dry Creek and the Yuba County Forestry Headquarters near Dobbins;
</P>
<P>(4) Then northeasterly, 0.7 mile, along same light duty road to its intersection with the unimproved dirt road to Lake Mildred, located in the northwest corner of section 2, T. 17 N., R. 6 E.;
</P>
<P>(5) Then northwesterly, 1.0 miles, along the unimproved dirt road to the end of said road at the shoreline of Lake Mildred;
</P>
<P>(6) Then southwest along the shoreline of Lake Mildred to the Los Verjeles Dam at the westernmost end of said lake;
</P>
<P>(7) Then across the face of said dam and continuing northeast along the shoreline of Lake Mildred to the point where the stream running through Smokey Ravine flows into Lake Mildred;
</P>
<P>(8) Then north and west along said stream to the point where the stream crosses the 1,900-foot contour line in the northeast corner of section 27, T. 18 N., R. 6 E.;
</P>
<P>(9) Then southwest in a meandering line along the 1.900-foot contour line of Lamb Hill;
</P>
<P>(10) Then northwest along the 1,900-foot contour line of High Spring Ridge to the point where the medium duty paved road running north and south along Willow Glen Creek crosses the 1,900-foot contour line, approximately 0.75 mile north of Finley Ranch;
</P>
<P>(11) Then north along said road, approximately 1 mile, to its intersection at Willow Glen Ranch near the west boundary line of section 15, T. 18 N., R. 6 E., with the light duty road which crosses Critterden Ridge;
</P>
<P>(12) Then in a generally easterly direction along said road, approximately 2.0 miles, to its point of intersection with the light duty paved road named Frenchtown Road which runs north and south between Brownsville and Frenchtown;
</P>
<P>(13) Then south along the Frenchtown Road to the point where the road crosses the 1,600-foot contour line in the northwest corner of section 24, T. 18 N., R. 6 E.;
</P>
<P>(14) Then east along the 1,600-foot contour line to the point where Dry Creek crosses the 1,600-foot contour line near the south boundary line of section 13, T. 18 N., R. 6 E.;
</P>
<P>(15) Then south along Dry Creek, approximately 0.16 mile, to the confluence of Indiana Creek with Dry Creek;
</P>
<P>(16) Then in a generally easterly direction, approximately 1 mile, along Indiana Creek to the confluence of Keystone Creek with Indiana Creek;
</P>
<P>(17) Then north along indiana Creek, approximately 0.87 mile, to the point where Indiana Creek meets the 2,000-foot contour line of Oregon Hills;
</P>
<P>(18) Then in a generally southeasterly direction along the 2,000-foot contour line of Oregon Hills, approximately 6 miles, to the point near the east boundary line of section 9, T. 17 N., R. 7 E., where the power transmission line on Red Bluff crosses the 2,000-foot contour line;
</P>
<P>(19) Then southwest along the right of way of said power transmission line to the point near the south boundary of section 9, T. 17 N., R. 7 E., where it meets the power transmission line running northwest and southeast between Dobbins and the Colgate Power House;
</P>
<P>(20) Then southeast along the power transmission line between Dobbins and Colgate Power House to the Colgate Power House;
</P>
<P>(21) Then in a generally westerly direction from the Colgate Power House along the power transmission line which crosses over Dobbins Creek to the point west of Dobbins Creek where the power transmission line intersects the 1,000-foot contour line;
</P>
<P>(22) Then in a generally southwesterly direction along the 1,000-foot contour line above the north bank of the Yuba River and Harry L. Englebright lake of the Yuba River to the intersection of the 1,000-foot contour line with Woods Creek in the northeast corner of section 36, T. 17 N., R. 6 E.;
</P>
<P>(23) Then east and north along the east bank of Woods Creek, approximately 0.5 miles, to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-211, 50 FR 30820, July 30, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 9.107" NODE="27:1.0.1.1.7.3.45.87" TYPE="SECTION">
<HEAD>§ 9.107   Lodi.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lodi.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Lodi viticultural area are 18 U.S.G.S. 7.5 minute series maps and are titled as follows: 
</P>
<P>(1) Valley Springs SW, Calif. 1962; 
</P>
<P>(2) Farmington, Calif. 1968 (Photorevised 1987); 
</P>
<P>(3) Peters, CA 1952 (Photorevised 1968); 
</P>
<P>(4) Stockton East, Calif. 1968 (Photorevised 1987); 
</P>
<P>(5) Waterloo, Calif. 1968 (Photoinspected 1978); 
</P>
<P>(6) Lodi South, Calif. 1968 (Photorevised 1976); 
</P>
<P>(7) Terminous, Calif. 1978 (Minor Revision 1993); 
</P>
<P>(8) Thornton, Calif. 1978; 
</P>
<P>(9) Bruceville, Calif. 1968 (Photorevised 1980); 
</P>
<P>(10) Florin, Calif. 1968 (Photorevised 1980); 
</P>
<P>(11) Elk Grove, Calif. 1968 (Photorevised 1979); 
</P>
<P>(12) Sloughhouse, Calif. 1968 (Photorevised 1980, Minor Revision 1993); 
</P>
<P>(13) Buffalo Creek, Calif. 1967 (Photorevised 1980); 
</P>
<P>(14) Folsom SE, Calif. 1954 (Photorevised 1980); 
</P>
<P>(15) Carbondale, Calif. 1968 (Photorevised 1980, Minor Revision 1993); 
</P>
<P>(16) Goose Creek, Calif. 1968 (Photorevised 1980, Minor Revision 1993); 
</P>
<P>(17) Clements, Calif. 1968 (Minor Revision 1993); and 
</P>
<P>(18) Wallace, Calif. 1962. 
</P>
<P>(c) <I>Boundaries.</I> The Lodi viticultural area is located in California in the counties of Sacramento and San Joaquin. The beginning point is located at the intersection of the Calaveras River and the San Joaquin-Stanislaus County line (Valley Springs SW, Calif. map). 
</P>
<P>(1) From the beginning point, proceed south along the San Joaquin-Stanislaus County line to its intersection with State Route 4, also known as Funck Road, T1N, R9E (Farmington, Calif. map); 
</P>
<P>(2) Then proceed west on State Route 4 (west on Funck Road, then south on Waverly Road, then west through the village of Farmington on Farmington Road) to State Route 4's intersection with Jack Tone Road, T1N, R7E (beginning on the Farmington, Calif. map, passing through the Peters, CA map, and ending on the Stockton East, Calif. map); 
</P>
<P>(3) Then proceed north along Jack Tone Road to its intersection with Eightmile Road, T3N, R7E (ending on the Waterloo, Calif. map); 
</P>
<P>(4) Then proceed west along Eightmile Road to its intersection with Bishop Cut, T3N, R5E (beginning on the Waterloo, Calif. map, passing through the Lodi South, Calif. map, and ending on the Terminous, Calif. map); 
</P>
<P>(5) Then proceed north along Bishop Cut to White Slough, T3N, R5E (Terminous, Calif. map); 
</P>
<P>(6) Then proceed west along White Slough to an unnamed drainage canal on Terminous Tract, across the slough from a marked pumping station on King Island, T3N, R5E (Terminous, Calif. map); 
</P>
<P>(7) Then proceed straight northwest on the Terminous Tract to the south end of Peatland Road and follow it north to its intersection with State Route 12, T3N, R5E (Terminous, Calif. map); 
</P>
<P>(8) Then proceed west 0.2 mile on State Route 12 to its intersection with an unnamed unimproved road at BM-8, and continue straight northwest on the Terminous Tract to the marked siphon on the south side of Sycamore Slough, T3N, R5E (ending on the Thornton, Calif. map); 
</P>
<P>(9) Then proceed in a straight line north-to-northeast across Brack Tract, Hog Slough and Canal Ranch to the line's intersection with Beaver Slough near the 90-degree east turn of an unnamed light duty road, west of a small cluster of buildings, T4N, R5E (Thornton, Calif. map); 
</P>
<P>(10) Then proceed west along Beaver Slough to its intersection with the South Mokelumne River, following the river north and east to its intersection with Interstate 5 (marked as under construction), T5N, R5E (ending on the Bruceville, Calif. map); 
</P>
<P>(11) Then proceed northwest along Interstate 5 to its intersection with an unnamed road, locally known as Hood-Franklin Road. 
</P>
<P>(12) From Interstate 5, proceed east on Hood-Franklin Road to its intersection with Franklin Boulevard, Section 17, T6N, R5E (ending on the Florin, Calif. map); 
</P>
<P>(13) Proceed generally north along Franklin Boulevard to its intersection with Sims Road and a section line running due east marking the northern boundary of Section 28, T7N, R5E (Florin, Calif. map). 
</P>
<P>(14) Follow this section line due east to its junction with Sheldon Road and then proceed east along Sheldon Road to its intersection with the Central California Traction Co. Railroad (beginning on the Florin, Calif. map and ending on the Elk Grove, Calif. map); 
</P>
<P>(15) Proceed southeast along the Central California Traction Co. Railroad to its intersection with Grant Line Road (Elk Grove, Calif. map); 
</P>
<P>(16) Then northeast along Grant Line Road to its intersection with State Highway 16 (beginning on the Elk Grove, Calif. map, passing through the Sloughhouse, Calif. map, and ending on the Buffalo Creek, Calif. map); 
</P>
<P>(17) Proceed southeast along State Highway 16 to its intersection with Deer Creek (ending on the Sloughhouse, Calif. map); 
</P>
<P>(18) Then proceed generally northeast along Deer Creek to its intersection with the eastern boundary of Sacramento County (beginning on the Sloughhouse, Calif. map, passing through the Buffalo Creek, Calif. map, and ending on the Folsom SE, Calif. map); and 
</P>
<P>(19) Proceed generally south along the eastern boundary of Sacramento County to the meeting point of Sacramento, Amador, and San Joaquin Counties (beginning on the Folsom SE, Calif. map, passing through the Carbondale, Calif. map, and ending on the Goose Creek, Calif. map); and 
</P>
<P>(20) Then proceed generally south-southeast along the eastern boundary of San Joaquin County to the point of beginning (beginning on the Goose Creek, Calif. map, passing through the Clements, Calif. and Wallace, Calif. maps, and ending on the Valley Springs SW, Calif. map).
</P>
<CITA TYPE="N">[T.D. ATF-223, 51 FR 5324, Feb. 13, 1986, as amended by T.D. ATF-482, 67 FR 56484, Sept. 4, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 9.108" NODE="27:1.0.1.1.7.3.45.88" TYPE="SECTION">
<HEAD>§ 9.108   Ozark Mountain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Ozark Mountain.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of Ozark Mountain viticultural area are 11 U.S.G.S. maps in the scale of 1:250,000. They are titled—
</P>
<P>(1) St. Louis, Missouri (1963, revised 1969);
</P>
<P>(2) Jefferson City, Missouri (1955, revised 1970);
</P>
<P>(3) Springfield, Missouri (1954, revised 1969);
</P>
<P>(4) Joplin, Missouri; Kansas (1954, revised 1974);
</P>
<P>(5) Tulsa, Oklahoma; Arkansas; Missouri; Kansas (1958, revised 1973);
</P>
<P>(6) Fort Smith, Arkansas-Oklahoma (1978);
</P>
<P>(7) Russellville, Arkansas (compiled in 1954);
</P>
<P>(8) Memphis, Tennessee; Arkansas; Missouri (1953, revised 1978);
</P>
<P>(9) Poplar Bluff, Missouri; Arkansas (1957, revised 1978);
</P>
<P>(10) Paducah, Kentucky; Illinois; Missouri; Indiana (1949, revised 1969); and
</P>
<P>(11) Rolla, Missouri; Illinois (1954, revised 1969).
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The Ozark Mountain viticultural area is located in Missouri, Oklahoma, and Arkansas. The starting point of the following boundary description is the point at which the Missouri River joins the Mississippi River north of St. Louis, Missouri (on the St. Louis map).
</P>
<P>(2) <I>Boundary Description.</I> (i) The boundary proceeds from the starting point westward along the Missouri River until it meets the Osage River;
</P>
<P>(ii) Then further westward along the Osage River (flowing through Lake of the Ozarks and the Harry S. Truman Reservoir) until it passes adjacent to Missouri Highway 82 in Osceola, Missouri (on the Jefferson City map);
</P>
<P>(iii) Then southwestward along Missouri Highway 82 until it intersects U.S. Highway 54 in Eldorado Springs, Missouri (on the Joplin map);
</P>
<P>(iv) Then westward along U.S. Highway 54 until it intersects U.S. Highway 71 near Nevada, Missouri;
</P>
<P>(v) Then southward along U.S. Highway 71 until it intersects Interstate Highway 44, approximately 5 miles south of Carthage, Missouri;
</P>
<P>(vi) Then westward and southwestward along Interstate Highway 44 into the State of Oklahoma, and continuing southwestward until Interstate Highway 44 crosses the Neosho River near Miami, Oklahoma (on the Tulsa map);
</P>
<P>(vii) Then southward along the Neosho River (flowing through the Lake of the Cherokees, Lake Hudson, and Fort Gibson Lake) until it flows into the Arkansas River, approximately 2 miles west of Fort Gibson, Oklahoma (on the Fort Smith map);
</P>
<P>(viii) Then southward and eastward along the Arkansas River (flowing through the Robert S. Kerr Lake) into the State of Arkansas, and continuing eastward until the Arkansas River is joined by Vache Grasse Creek, approximately 4 miles east of Barling, Arkansas;
</P>
<P>(ix) Then southeastward and southwestward following Vache Grasse Creek to the place where it is crossed by Arkansas Highway 10, near Greenwood, Arkansas;
</P>
<P>(x) Then westward along Highway 10 to U.S. Highway 71. Note: Highway 10 is the primary highway leading from Greenwood to Hackett, Arkansas;
</P>
<P>(xi) Then southward and eastward along Highway 71 until it crosses Rock Creek;
</P>
<P>(xii) Then northeastward along Rock Creek to Petit Jean Creek;
</P>
<P>(xiii) Then generally northeastward and eastward along Petit Jean Creek until it becomes the Petit Jean River (on the Russellville map);
</P>
<P>(xiv) Then generally eastward along the Petit Jean River, flowing through Blue Mountain Lake, until the Petit Jean River joins the Arkansas River;
</P>
<P>(xv) Then generally eastward along the Arkansas River to Cadron Creek;
</P>
<P>(xvi) Then northeastward and eastward along Cadron Creek, for about 2
<FR>1/2</FR> miles, until it passes under U.S. Highway 64, approximately 3
<FR>1/2</FR> miles west of Conway, Arkansas;
</P>
<P>(xvii) Then eastward along U.S. Highway 64 until it intersects U.S. Highway 67, near Beebe, Arkansas (on the Memphis map);
</P>
<P>(xviii) Then northeastward along U.S. Highway 67 into the state of Missouri, then northward until U.S. Highway 67 intersects U.S. Highway 60, in Poplar Bluff, Missouri (on the Poplar Bluff map);
</P>
<P>(xix) Then eastward along U.S. Highway 60 until it crosses the western boundary of Stoddard County. Note: Here that boundary is the St. Francis River;
</P>
<P>(xx) Then northward, northeastward, and eastward along the boundary of Stoddard County until it joins the southern boundary of Cape Girardeau County (on the Cape Girardeau map);
</P>
<P>(xxi) Then northeastward along the Cape Girardeau County boundary until it meets the Mississippi River south of Cape Girardeau, Missouri;
</P>
<P>(xxii) Then northward along the Mississippi River to the starting point.
</P>
<CITA TYPE="N">[T.D. ATF-231, 51 FR 24144, July 2, 1986; 51 FR 25366, July 14, 1986; T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.109" NODE="27:1.0.1.1.7.3.45.89" TYPE="SECTION">
<HEAD>§ 9.109   Northern Neck George Washington Birthplace.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Northern Neck George Washington Birthplace.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Northern Neck George Washington Birthplace viticultural area are 2 U.S.G.S. 1:250,000 scale maps. They are entitled:
</P>
<P>(1) Washington, DC; Maryland; Virginia, 1957 (Revised 1979); and
</P>
<P>(2) Richmond, VA; MD., 1973.
</P>
<P>(c) <I>Boundaries.</I> The Northern Neck George Washington Birthplace viticultural area consists of all of the lands in the Counties of Westmoreland, King George, Northumberland, Lancaster and Richmond, in the Commonwealth of Virginia. The boundaries of the Northern Neck George Washington Birthplace viticultural area, using landmarks and points of reference found on the appropriate U.S.G.S. maps, are as follows:
</P>
<P>(1) Beginning on the Washington, DC; Maryland; Virginia U.S.G.S. map at a point on Potomac Creek where the King George County western boundary line at its northernmost point intersects Potomac Creek the boundary proceeds easterly and southeasterly on the Richmond, VA; MD. U.S.G.S. map, along the Virginia shoreline of the Potomac River for approximately 66 miles to Smith Point on the Chesapeake Bay;
</P>
<P>(2) Thence southerly along the shoreline of the Chesapeake Bay for approximately 20 miles to Windmill Point at the mouth of the Rappahannock River;
</P>
<P>(3) Thence northwesterly along the banks of the Rappahannock River for approximately 72 air miles to Muddy Creek at the point where the western boundary line of King George County at its southernmost point begins;
</P>
<P>(4) Thence northward along the King George County/Stafford County line approximately 7 miles to the point of the beginning.
</P>
<CITA TYPE="N">[T.D. ATF-250, 52 FR 13082, Apr. 21, 1987, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.110" NODE="27:1.0.1.1.7.3.45.90" TYPE="SECTION">
<HEAD>§ 9.110   San Benito.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Benito.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of San Benito viticultural area are six U.S.G.S. maps. They are titled:
</P>
<P>(1) Hollister Quadrangle, 7.5 minute series, 1955 (photorevised 1971).
</P>
<P>(2) Tres Pinos Quadrangle, 7.5 minute series, 1955 (photorevised 1971).
</P>
<P>(3) Quien Sabe Valley Quadrangle, 7.5 minute series, 1968.
</P>
<P>(4) Mt. Harlan Quadrangle, 7.5 minute series, 1968.
</P>
<P>(5) Paicines Quadrangle, 7.5 minute series, 1968.
</P>
<P>(6) Cherry Peak Quadrangle, 7.5 minute series, 1968.
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The San Benito viticultural area is located in San Benito County, California. The starting point of the following boundary description is the point where the eastern border of Section 17 of Township 15 South, Range 7 East, crosses the latitude 36°37′30″ (on the Cherry Peak map).
</P>
<P>(2) <I>Boundary Description.</I> (i) From the starting point, westward along latitude 36°37′30″ to the Range Line R.6E./R.7E. (on the Paicines map).
</P>
<P>(ii) Then northward along that range line to the southern border of Section 1, Township 15 South, Range 6 East.
</P>
<P>(iii) Then westward along that southern border to the western border of the same section.
</P>
<P>(iv) Then northward along that western border to the 800-foot contour line.
</P>
<P>(v) Then northwestward along that contour line to the Township Line T.14S./T.15S.
</P>
<P>(vi) Then westward along that township line to the southern border of Section 34, Township 15 South, Range 6 East.
</P>
<P>(vii) Then continuing westward along that southern border to the 1200-foot contour line.
</P>
<P>(viii) Then generally northwestward along that contour line until it crosses for the second time the southern border of Section 28, Township 14 South, Range 6 East.
</P>
<P>(ix) Then westward along that southern border to the 1400-foot contour line.
</P>
<P>(x) Then following the 1400-foot contour line through the following sections: Sections 28, 29, and 30, Township 14 South, Range 6 East; Section 25, Township 14 South, Range 5 East; Sections 30, 19, 20, and returning to 19, Township 14 South, Range 6 East; to the point where the 1400-foot contour line intersects the section line between Sections 19 and 18, Township 14 South, Range 6 East.
</P>
<P>(xi) From there in a straight line due northward to the 1200-foot contour line in Section 18, Township 14 South, Range 6 East.
</P>
<P>(xii) Then following the 1200-foot contour line generally northwestward to the northern border of Section 10, Township 14 South, Range 5 East (on the Mt. Harlan map).
</P>
<P>(xiii) Then following that northern border northwestward to the 1600-foot contour line.
</P>
<P>(xiv) Then following the 1600-foot contour line generally northward to an unimproved road.
</P>
<P>(xv) Then looping southward along the unimproved road and continuing eastward past the designated “Spring” and then northward parallel with Bonanza Gulch to the Vineyard School on Cienega Road (on the Hollister map).
</P>
<P>(xvi) From there in a straight line northeastward, crossing Bird Creek and the San Benito River, to the northwestern corner of Section 19, Township 13 South, Range 6 East (on the Tres Pinos map).
</P>
<P>(xvii) From there following the northern border of Sections 19 and 20, Township 13 South, Range 6 East, to the northeastern corner of Section 20.
</P>
<P>(xviii) From there in a straight line due eastward to the Range line R.6E./R7E.
</P>
<P>(xix) Then southward along that Range line to the Township line T.13S./T.14S.
</P>
<P>(xx) Then eastward along that Township line to the eastern border of Section 6, Township 14 South, Range 7 East (on the Quien Sabe Valley map).
</P>
<P>(xxi) Then southward along the eastern border of Sections 6, 7, and 18, Township 14 South, Range 7 East, to the northern border of Section 20, Township 14 South, Range 7 East (on the Cherry Peak map).
</P>
<P>(xxii) Then eastward along that northern border to the eastern border of Section 20.
</P>
<P>(xxiii) Then southward along the eastern border of Sections 20, 29, and 32, Township 14 South, Range 7 East, and continuing southward along the eastern border of Sections 5, 8, and 17, Township 15 South, Range 7 East, to the starting point.
</P>
<CITA TYPE="N">[T.D. ATF-258, 52 FR 37137, Oct. 5, 1987, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.111" NODE="27:1.0.1.1.7.3.45.91" TYPE="SECTION">
<HEAD>§ 9.111   Kanawha River Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Kanawha River Valley”.
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundary of the Kanawha River Valley viticultural area are 20 U.S.G.S. topographic maps in the 7.5-Minute series as follows:
</P>
<P>(1) Addison, Ohio—W. Va., dated 1960;
</P>
<P>(2) Gallipolis, Ohio—W. Va., dated 1958;
</P>
<P>(3) Apple Grove, Ohio—W. Va., dated 1968, photorevised 1975;
</P>
<P>(4) Glenwood, W. Va.—Ohio, dated 1968;
</P>
<P>(5) Milton, W. Va., dated 1972;
</P>
<P>(6) West Hamlin, W. Va., dated 1957;
</P>
<P>(7) Hamlin, W. Va., dated 1958;
</P>
<P>(8) Garrets Bend, W. Va., dated 1958;
</P>
<P>(9) Scott Depot, W. Va., dated 1958;
</P>
<P>(10) Saint Albans, W. Va., dated 1958;
</P>
<P>(11) Pocatalico, W. Va., dated 1958;
</P>
<P>(12) Sissonville, W. Va., dated 1958;
</P>
<P>(13) Romance, W. Va.,—Ky., dated 1957;
</P>
<P>(14) Kentuck, W. Va., dated 1957;
</P>
<P>(15) Kenna, W. Va., dated 1957;
</P>
<P>(16) Ripley, W. Va., dated 1960;
</P>
<P>(17) Cottageville, W. Va., dated 1960;
</P>
<P>(18) Mount Alto, W. Va.—Ohio, dated 1958, photorevised 1972;
</P>
<P>(19) Beech Hill, W. Va.—Ohio, dated 1957, photorevised 1975;
</P>
<P>(20) Cheshire, W. Va.—Ohio, dated 1968;
</P>
<P>(c) <I>Boundary description.</I> The boundary description of the Kanawha River Valley viticultural area includes (in parentheses) the name of the map on which each described point is found. The boundary description is as follows:
</P>
<P>(1) The beginning point is the West Virginia-Ohio State Line at the confluence of Champaign Creek and the Ohio River. (Addison quadrangle)
</P>
<P>(2) The boundary follows the West Virginia-Ohio State Line, in the Ohio River (across the Gallipolis and Apple Grove quadrangles) southwesterly to the point at which the Mason County-Cabell County Line intersects the State Line. (Glenwood quadrangle)
</P>
<P>(3) The boundary proceeds in a straight line southerly to the benchmark at 583 ft. elevation in the town of Yates Crossing in Cabell County, WV. (Milton quadrangle)
</P>
<P>(4) The boundary proceeds in a straight line southeasterly to the benchmark at 640 ft. elevation in the town of Balls Gap, in Lincoln County, WV. (West Hamlin quadrangle)
</P>
<P>(5) The boundary proceeds in a straight line easterly (across the Hamlin, Garrett Bend, and Scott Depot quadrangles) to the benchmark at 590 ft. elevation in the town of Institute in Kanawha County, WV. (Saint Albans quadrangle)
</P>
<P>(6) The boundary proceeds in a straight line northeasterly to the benchmark at 654 ft. elevation in the town of Pocatalico, in Kanawha County, WV. (Pocatalico quadrangle)
</P>
<P>(7) The boundary proceeds in a straight line northeasterly (across the Sissonville quadrangle) to the confluence of Johns Branch and Sugar Creek in the town of Romance, in Jackson County, WV. (Romance quadrangle)
</P>
<P>(8) The boundary proceeds in a straight line northwesterly (across the Kentuck quadrangle) to the confluence of Plum Orchard Run and Stonelick Creek in the town of Plum Orchard, in Jackson County, WV. (Kenna quadrangle)
</P>
<P>(9) The boundary proceeds in a straight line northwesterly (across the Ripley quadrangle) to the Baltimore and Ohio Railroad crossing of State Highway 87 in the town of Evans, in Jackson County, WV. (Cottageville quadrangle)
</P>
<P>(10) The boundary proceeds in a straight line northwesterly (across the Mount Alto quadrangle) to the benchmark at 674 ft. elevation in the town of Flatrock, in Mason County, WV. (Beech Hill quadrangle)
</P>
<P>(11) The boundary proceeds northwesterly in a straight line (across the Cheshire quadrangle) to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-226, 51 FR 11913, Apr. 8, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 9.112" NODE="27:1.0.1.1.7.3.45.92" TYPE="SECTION">
<HEAD>§ 9.112   Arkansas Mountain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Arkansas Mountain.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Arkansas Mountain viticultural area are two U.S.G.S. maps, titled:
</P>
<P>(1) Russellville, Arkansas, 1:250,000 series compiled in 1954.
</P>
<P>(2) Fort Smith, Arkansas-Oklahoma, 1:250,000 series, 1978.
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The Arkansas Mountain viticultural area is located in northwestern Arkansas. Starting at the point where Frog Bayou converges with the Arkansas River, near Yoestown, Arkansas (or the Fort Smith map), the boundary proceeds:
</P>
<P>(2) <I>Boundary Description.</I> (i) Southwestward along the Arkansas River to Vache Grasse Creek.
</P>
<P>(ii) Then southeastward and southwestward following Vache Grasse Creek to the place where it is crossed by Arkansas Highway 10, near Greenwood, Arkansas.
</P>
<P>(iii) From there westward along Highway 10 to U.S. Highway 71. (Note: Highway 10 is the primary highway leading to Greenwood to Hackett, Arkansas.)
</P>
<P>(iv) Then southward and eastward along Highway 71 until it crosses Rock Creek.
</P>
<P>(v) Then northeastward along Rock Creek to Petit Jean Creek.
</P>
<P>(vi) Then generally northeastward and eastward along Petit Jean Creek until it becomes the Petit Jean River (on the Russellville map).
</P>
<P>(vii) Then generally eastward along the Petit Jean River, flowing through Blue Mountain Lake, until the Petit Jean River joins the Arkansas River.
</P>
<P>(viii) Then generally eastward along the Arkansas River to Cadron Creek.
</P>
<P>(ix) Then generally northward and northeastward along Cadron Creek to the place where it is crossed by U.S. Highway 65.
</P>
<P>(x) From there northward along Highway 65 to its intersection with Arkansas Highway 16 near Clinton, Arkansas.
</P>
<P>(xi) From there following Highway 16 generally westward to its intersection with Arkansas Highway 23 in Brashears, Arkansas.
</P>
<P>(xii) From there southward along Highway 23 to the Madison County-Franklin County line.
</P>
<P>(xiii) Then westward and southward along that county line to the Madison County-Crawford County line.
</P>
<P>(xiv) Then westward along that county line to the Washington County-Crawford County line.
</P>
<P>(xv) Then westward along that county line to Jones Fork (on the Fort Smith map).
</P>
<P>(xvi) Then southward along Jones Fork until it joins Frog Bayou near Winfrey, Arkansas.
</P>
<P>(xvii) Then generally southward along Frog Bayou, flowing through Lake Shepherd Springs and Lake Fort Smith, to the starting point.
</P>
<CITA TYPE="N">[T.D. ATF-235, 51 FR 34205, Sept. 26, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 9.113" NODE="27:1.0.1.1.7.3.45.93" TYPE="SECTION">
<HEAD>§ 9.113   North Fork of Long Island.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “North Fork of Long Island.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the “North Fork of Long Island” viticultural area are 5 U.S.G.S. maps. They are entitled:
</P>
<P>(1) Wading River, N.Y., 7.5 minute series, scaled at 1:24,000 edition of 1967.
</P>
<P>(2) Riverhead, N.Y., 7.5 minute series, scaled at 1:24,000, edition of 1956.
</P>
<P>(3) New York, N.Y.; N.J.; Conn., U.S., 1:250,000 series, scaled at 1:250,000, edition of 1960, revised 1979.
</P>
<P>(4) Providence, R.I.; Mass.; Conn., N.Y., U.S., 1:250,000 series, scaled at 1:250,000, edition of 1947, revised 1969.
</P>
<P>(5) Hartford, Conn.; N.Y.; N.J.; Mass., U.S., 1:250,000 series, scaled at 1,250,000, edition of 1962, revised 1975.
</P>
<P>(c) <I>Boundaries.</I> The boundaries of the proposed viticultural area are as follows: The North Fork of Long Island viticultural area is located entirely within eastern Suffolk County, Long Island, New York. The viticultural area boundaries consist of all of the land areas of the North Fork of Long Island, New York, including all of the mainland, shorelines and islands in the Townships of Riverhead, Shelter Island, and Southold.
</P>
<P>(1) The point of beginning is on the Wading River, N.Y., 7.5 minute series, U.S.G.S. map at the northern boundary of the Brookhaven/Riverhead Township line on the Long Island Sound (approximately 500 feet east of the mouth of the Wading River);
</P>
<P>(2) The boundary goes south on the Brookhaven/Riverhead Town line for approximately 6.5 miles until it meets the Peconic River approximately 1 mile east of U.S. Reservation Brookhaven National Laboratory;
</P>
<P>(3) Then the boundary travels east on the Peconic River (Brookhaven/Riverhead Town line) for 2.7 miles until it meets the Riverhead/Southampton Township line on the Riverhead, N.Y., U.S.G.S. map;
</P>
<P>(4) It then goes east on the Riverhead/Southampton Township line for 4.2 miles until it reaches an area where the Peconic River widens north of Flanders;
</P>
<P>(5) Then the boundary proceeds east to Orient Point then west along the shoreline, beaches, islands, and mainland areas of the North Fork of Long Island, described on the “New York”, “Providence” and “Hartford” U.S.G.S. maps until it reaches the Brookhaven/Riverhead Township line at the point of beginning. These boundaries consist of all the land (and isolated islands including without limitation, Wicopesset Island, Robins Island, Fishers Island, Great Gull Island, Plum Island, and Shelter Island) in the Townships of Riverhead, Shelter Island, and Southold.
</P>
<CITA TYPE="N">[T.D. ATF-240, 51 FR 36398, Oct. 10, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 9.114" NODE="27:1.0.1.1.7.3.45.94" TYPE="SECTION">
<HEAD>§ 9.114   Old Mission Peninsula.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Old Mission Peninsula.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the “Old Mission Peninsula” viticultural area are 2 U.S.G.S. Quadrangle (15 Minute Series) maps, scaled at 1:62,500. They are entitled:
</P>
<P>(1) Elk Rapids, Mich. (1957); and
</P>
<P>(2) Traverse City, Mich. (1957).
</P>
<P>(c) <I>Boundary.</I> The boundary in Grand Traverse County, Michigan, consists of all of Peninsula Township, excluding Marion and Bassett Islands. In addition, the viticultural area takes in a small portion of Traverse City Township.
</P>
<P>(1) The beginning point is on the Traverse City, Mich., U.S.G.S. map at the shoreline of the West Arm of Grand Traverse Bay at Section 1, Township 27 North, Range 11 West (T27N, R11W), approximately 500 feet due west of the intersection of two unmarked light-duty roads (approx. 750 feet north of Bryant Park);
</P>
<P>(2) The boundary proceeds north 19 miles along the western shoreline of the Old Mission Peninsula until it reaches the lighthouse near Old Mission Point at the north side of the Peninsula on the Elk Rapids, Mich., U.S.G.S. map, Sec. 23, T30N, R10W;
</P>
<P>(3) It then proceeds south for approximately 19 miles along the eastern shoreline of the peninsula to the southeast portion of an unmarked light-duty road (known locally as Eastern Avenue) at Sec. 6, T27N, R10W on the Traverse City, Mich., U.S.G.S. map. The unmarked light-duty road is located immediately north of Northwestern Michigan College on the shoreline of the East Arm of the Grand Traverse Bay;
</P>
<P>(4) The boundary travels west along the unmarked light-duty road (known locally as Eastern Avenue) for approximately one mile until it meets an unmarked north/south light-duty road at Sec. 1, T27N, R11W; and
</P>
<P>(5) Finally, the boundary proceeds due east 500 feet to the beginning point on the shoreline of the West Arm of the Grand Traverse Bay at Sec. 1, T27N, R11W.
</P>
<CITA TYPE="N">[T.D. ATF-252, 52 FR 21515, June 8, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.115" NODE="27:1.0.1.1.7.3.45.95" TYPE="SECTION">
<HEAD>§ 9.115   Ozark Highlands.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Ozark Highlands.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Ozark Highlands viticultural area are three U.S.G.S. maps of the 1:250,000 series. They are titled:
</P>
<P>(1) Rolla, Missouri; Illinois, 1954 (revised 1969).
</P>
<P>(2) St. Louis, Missouri; Illinois, 1963 (revised 1969).
</P>
<P>(3) Springfield, Missouri, 1954 (revised 1969).
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The Ozark Highlands viticultural area is located in south central Missouri. The area comprises portions of the following counties: Phelps, Maries, Osage, Gasconade, Franklin, Crawford, Texas, Shannon, Dent, Reynolds, and Pulaski. The beginning point of the following boundary description is the junction of Little Piney Creek and the Gasconade River, near Jerome, Missouri (in the northwest corner of the Rolla map).
</P>
<P>(2) <I>Boundary Description.</I> (i) From the beginning point, the boundary goes northward along the Gasconade River to the latitude line 38°00′ (the dividing line between the Rolla and St. Louis maps);
</P>
<P>(ii) Then eastward along that latitude line to U.S. Highway 63;
</P>
<P>(iii) Then northward along U.S. 63 to Spring Creek;
</P>
<P>(iv) Then north-northwestward along Spring Creek to the Gasconade River;
</P>
<P>(v) Then northward along the Gasconade River to a power transmission line (less than 1 mile north of Buck Elk Creek);
</P>
<P>(vi) Then eastward and east-northeastward along that power transmission line to Missouri Route 19;
</P>
<P>(vii) Then southward along Route 19 to the Bourbeuse River;
</P>
<P>(viii) Then east-northeastward along the Bourbeuse River to the range line dividing R. 2 W. and R. 1 W.;
</P>
<P>(ix) Then southward along that range line to the Meramec River;
</P>
<P>(x) Then southwestward along the Meramec River to Huzzah Creek;
</P>
<P>(xi) Then southward along Huzzah Creek to Dry Creek (on the Rolla map, where Missouri Route 8 crosses Huzzah Creek);
</P>
<P>(xii) Then southward along Dry Creek to Cherry Valley Creek;
</P>
<P>(xiii) Then south-southwestward along Cherry Valley Creek to Missouri Route 19;
</P>
<P>(xiv) Then southward and southwestward along Route 19 to Crooked Creek;
</P>
<P>(xv) Then northwestward along Crooked Creek to the Meramec River;
</P>
<P>(xvi) Then southward along the Meramec River to Hutchins Creek;
</P>
<P>(xvii) The southeastward along Hutchins Creek to its source near Missouri Route 32, across from the Howes Mill Post Office;
</P>
<P>(xviii) Then in a straight line toward the Howes Mill Post Office to Route 32;
</P>
<P>(xix) Then eastward along Route 32 to the range line dividing R. 3 W. and R. 2 W.;
</P>
<P>(xx) Then southward along that range line to the township line dividing T. 33 N. and T. 32 N.;
</P>
<P>(xxi) Then westward along that township line (which coincides, in R. 3 W., with the Reynolds County/Dent County line) to the boundary of Clark National Forest;
</P>
<P>(xxii) Then generally southward along that national forest boundary to the Dent County/Shannon County line;
</P>
<P>(xxiii) Then westward along that county line to the Current River;
</P>
<P>(xxiv) Then southeastward along the Current River to Missouri Route 19;
</P>
<P>(xxv) Then southward along Route 19 to Jack's Fork;
</P>
<P>(xxvi) Then westward, southwestward and northwestward along Jack's Fork, taking the North Prong, to its northwesternmost source;
</P>
<P>(xxvii) Then in a straight line northwestward to the southeasternmost source of Hog Creek;
</P>
<P>(xxviii) Then northwestward along Hog Creek to the Big Piney River (on the Springfield map);
</P>
<P>(xxix) Then northward along the Big Piney River to the township line dividing T. 35 N. and T. 36 N.;
</P>
<P>(xxx) Then eastward along that township line to Little Piney Creek (on the Rolla map);
</P>
<P>(xxxi) Then northward and westward along Little Piney Creek to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-256, 52 FR 32785, Aug. 31, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.116" NODE="27:1.0.1.1.7.3.45.96" TYPE="SECTION">
<HEAD>§ 9.116   Sonoma Coast.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Sonoma Coast”.
</P>
<P>(b) <I>Approved map.</I> The approved maps for determining the boundary of the Sonoma Coast viticultural area are the following six U.S.G.S. topographic maps:
</P>
<P>(1) Sonoma County, California, scale 1:100,000, dated 1970;
</P>
<P>(2) Mark West Springs, California, 7.5-minute series, dated 1958, photoinspected 1978;
</P>
<P>(3) Healdsburg, California, 7.5-minute series, dated 1955, photorevised 1980;
</P>
<P>(4) Jimtown, California, 7.5-minute series, dated 1955, photorevised 1975;
</P>
<P>(5) Guerneville, California, 7.5-minute series, dated 1955; and
</P>
<P>(6) Cazadero, California, 7.5-minute series, dated 1978.
</P>
<P>(c) <I>Boundary description.</I> In general, the boundary description of the Sonoma Coast viticultural area is found on the U.S.G.S. Topographic Map of Sonoma County, California, scale 1:100,000, dated 1970. When a point of the boundary description is found on one of the 7.5-minute quadrangles, the boundary description indicates this in parentheses. The boundary description is as follows:
</P>
<P>(1) The beginning point is the point at which the Sonoma County-Mendocino County line meets the shoreline of the Pacific Ocean.
</P>
<P>(2) The boundary follows the shoreline of the Pacific Ocean southerly to the Sonoma County-Marin County line.
</P>
<P>(3) The boundary follows the Sonoma County-Marin County line southeasterly to San Pablo Bay.
</P>
<P>(4) The boundary follows the shoreline of San Pablo Bay easterly to the Sonoma County-Napa County line.
</P>
<P>(5) The boundary follows the Sonoma County-Napa County line northerly to the peak of Arrowhead Mountain.
</P>
<P>(6) From the peak of Arrowhead Mountain, the boundary proceeds in a straight line westerly to the peak of Sonoma Mountain.
</P>
<P>(7) From the peak of Sonoma Mountain, the boundary proceeds in a straight line northwesterly to the peak of Taylor Mountain.
</P>
<P>(8) From the peak of Taylor Mountain, the boundary proceeds in a straight line northwesterly to the point, near the benchmark at 184 ft. elevation in Section 34, Township 8 North, Range 8 West, at which Mark West Road crosses an unnamed stream which flows northwesterly into Mark West Creek. (Mark West Springs map)
</P>
<P>(9) From this point, the boundary proceeds northerly in a straight line to the headwaters of Brooks Creek, in Section 4, Township 8 North, Range 8 West. (Mark West Springs map)
</P>
<P>(10) The boundary follows Brooks Creek northwesterly to its confluence with the Russian River. (Healdsburg map)
</P>
<P>(11) The boundary proceeds southwesterly in a straight line to an unidentified peak at elevation 672 ft. (Healdsburg map)
</P>
<P>(12) The boundary proceeds northwesterly in a straight line to the peak identified as Black Peak. (Healdsburg map)
</P>
<P>(13) The boundary proceeds westerly in a straight line to an unidentified peak at elevation 857 ft. (Healdsburg map)
</P>
<P>(14) The boundary proceeds westerly in a straight line to the peak of Fitch Mountain at elevation 991 ft. (Healdsburg map)
</P>
<P>(15) The boundary proceeds northwesterly in a straight line to the intersection, near a benchmark at elevation 154 ft. in the town of Chiquita, of a light-duty road (known locally as Chiquita Road) and a southbound primary highway, hard surface road (known locally as Healdsburg Avenue). (Jimtown map)
</P>
<P>(16) The boundary follows that road (known locally as Healdsburg Avenue) southerly through the city of Healdsburg to the point at which it is a light-duty, hard or improved surface road, identified on the map as Redwood Highway, which crosses the Russian River, immediately south of the city of Healdsburg at a bridge (known locally as the Healdsburg Avenue Bridge). (Healdsburg map)
</P>
<P>(17) The boundary follows the Russian River southerly to a point, near the confluence with Dry Creek, opposite a straight line extension of a light-duty, hard or improved surface road (known locally as Foreman Lane) located west of the Russian River. (Healdsburg map)
</P>
<P>(18) The boundary proceeds in a straight line to that road and follows it westerly, then south, then westerly, onto the Guerneville map, across a secondary highway, hard surface road (known locally as Westside Road), and continues westerly, then northwesterly to the point at which it crosses Felta Creek. (Guerneville map)
</P>
<P>(19) The boundary follows Felta Creek approximately 18,000 ft. westerly to its headwaters, at the confluence of three springs, located approximately 5,800 feet northwesterly of Wild Hog Hill. (Guerneville map)
</P>
<P>(20) The boundary proceeds in a straight line southwesterly to the southwest corner of Section 9, Township 8 North, Range 10 West. (Guerneville map)
</P>
<P>(21) The boundary proceeds in a straight line southwesterly to the point in, Section 24, Township 8 North, Range 11 West, at which Hulbert Creek crosses the 160 ft. contour line. (Cazadero map)
</P>
<P>(22) The boundary follows Hulbert Creek southerly to its confluence with the Russian River.
</P>
<P>(23) The boundary follows the Russian River southwesterly to its confluence with Austin Creek.
</P>
<P>(24) From this point, the boundary proceeds in a straight line northwesterly to the peak of Pole Mountain.
</P>
<P>(25) From the peak of Pole Mountain, the boundary proceeds in a straight line northwesterly to the peak of Big Oat Mountain.
</P>
<P>(26) From the peak of Big Oat Mountain, the boundary proceeds in a straight line northwesterly to the peak of Oak Mountain.
</P>
<P>(27) From the peak of Oak Mountain, the boundary proceeds in a straight line northwesterly approximately 14.5 miles to the Sonoma County-Mendocino County line at the northeast corner of Section 25, Township 11 North, Range 14 West.
</P>
<P>(28) The boundary follows the Sonoma County-Mendocino County line west, then southwesterly to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-253, 52 FR 22304, June 11, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.117" NODE="27:1.0.1.1.7.3.45.97" TYPE="SECTION">
<HEAD>§ 9.117   Stags Leap District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Stags Leap District.”
</P>
<P>(b) <I>Approved map.</I> The appropriate map for determining the boundaries of the Stags Leap District viticultural area is one U.S.G.S. topographic map in the 7.5 minute series, scaled 1:24000, titled “Yountville, Calif.,” 1951 (photorevised 1968).
</P>
<P>(c) <I>Boundaries.</I> The Stags Leap District viticultural area is located in Napa County, California, within the Napa Valley viticultural area. The boundaries are as follows:
</P>
<P>(1) Commencing at the intersection of the intermittent stream (drainage creek) with the Silverado Trail at the 60 foot contour line in T6N/R4W, approximately 7 miles north of the city of Napa.
</P>
<P>(2) Then southwest in a straight line, approximately 900 feet, to the main channel of the Napa River.
</P>
<P>(3) Then following the main branch of the Napa River (not the southern branch by the levee) in a northwesterly then northerly direction, until it intersects the medium-duty road (Grant Bdy) in T7N/R4W, known locally as the Yountville Cross Road.
</P>
<P>(4) Then northeast along the Yountville Cross Road until it intersects the medium-duty road, the Silverado Trail.
</P>
<P>(5) Then north along the Silverado Trail approximately 590 feet to a gully entering the Silverado Trail from the east.
</P>
<P>(6) Then northeast along the center line of that gully, approximately 800 feet, until it intersects the 400 foot contour line in Section 30 of T7N/R4W.
</P>
<P>(7) Then in a generally southeast direction, following the 400 foot contour line through Sections 29, 32, 33, 4, and 3, until it intersects the intermittent stream in the southwest corner of Section 3 in T6N/R4W.
</P>
<P>(8) Then in a generally southwest direction along that intermittent stream to the beginning point, at the intersection with the Silverado Trail.
</P>
<CITA TYPE="N">[T.D. ATF-281, 54 FR 4018, Jan. 27, 1989, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.118" NODE="27:1.0.1.1.7.3.45.98" TYPE="SECTION">
<HEAD>§ 9.118   Ben Lomond Mountain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Ben Lomond Mountain.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Ben Lomond Mountain viticultural area are four 7.5 minute series U.S.G.S. maps. They are titled:
</P>
<P>(1) Davenport Quadrangle (1955, photorevised 1968);
</P>
<P>(2) Big Basin Quadrangle (1955, photorevised 1973);
</P>
<P>(3) Felton Quadrangle (1955, photorevised 1980); and
</P>
<P>(4) Santa Cruz Quadrangle (1954, photorevised 1981).
</P>
<P>(c) <I>Boundaries.</I> The Ben Lomond Mountain viticultural area is located entirely within Santa Cruz County, California, which is in the central part of the State near the coast. The beginning point is the intersection of sections 25, 26, 35 and 36 (Davenport Quadrangle, T. 10S., R. 3W.) which coincides with the 800-foot contour line and is approximately .6 mile northwest of the top of Bald Mountain.
</P>
<P>(1) From the beginning point, the boundary follows the 800-foot contour line in a meandering manner in a generally northwesterly direction across section 26 into section 27 (T. 10S., R. 3W.).
</P>
<P>(2) Thence along the 800-foot contour line in an easterly and then generally a northeasterly direction through section 27 and then back across the northwest corner of section 26 and thence in a generally northwesterly direction along the 800-foot contour line across sections 23, 22 and into section 15.
</P>
<P>(3) Thence along the 800-foot contour line in a northerly and then a southerly direction across section 22 and eventually in a generally northwesterly direction into section 20.
</P>
<P>(4) Thence continuing along the 800-foot contour line in a generally northwesterly direction through sections 20, 17, 16, 17, 16, 9, 8, 5, 8, 7 and 6 (T. 10S., R. 3W.).
</P>
<P>(5) Thence continuing in a northerly direction across sections 5 and 32 and thence in a southwesterly direction across sections 31 and 6.
</P>
<P>(6) Thence continuing in a generally northerly direction across sections 1, 6, 31, 36, 31, 36 and 30 (T. 9S., R. 3W.) to the intersection of the 800-foot contour line and Scott Creek in section 19 (T. 9S., R. 3W.).
</P>
<P>(7) Thence in a northeasterly direction along the south bank of Scott Creek through sections 19, 20 and 17 to the intersection of Scott Creek with the 1600-foot contour line in section 16 (T. 9S., R. 3W.).
</P>
<P>(8) Thence in a generally northeasterly and then southerly direction along the 1600-foot contour line through section 16 and then through the southeast and southwest corners of sections 9 and 10 respectively to the intersection of the 1600-foot contour line with Jamison Creek in section 16 (T. 9S., R. 3W.).
</P>
<P>(9) Thence in an easterly direction along the south bank of Jamison Creek across sections 15 and 14 (T. 9S., R. 3W.) to the intersection of Jamison Creek and the 800-foot contour line in the southeast corner of section 14 (T. 9S., R. 3W.).
</P>
<P>(10) Thence in a southeasterly direction in a meandering manner along the 800-foot contour line across sections 14, 23, 24, 25 (T. 9S., R. 3W.), sections 30 and 31 (T. 9S., R. 2W.), and sections 32, 5, 8, 9, 16, 17 and 21 (T. 10S., R. 2W.).
</P>
<P>(11) Thence in a southwesterly, then generally a southeasterly and then a northwesterly direction along the 800-foot contour line in a meandering manner to section 31 and then continuing on through sections 31 and 30 (T. 10S., R. 2W.).
</P>
<P>(12) Thence continuing along the 800-foot contour line in a generally southerly and then a generally northwesterly direction through sections 25, 36, 31 and 36 to the point of beginning at the intersection of sections 25, 26, 35 and 36 (T. 10S., R. 3W.).
</P>
<CITA TYPE="N">[T.D. ATF-264, 52 FR 46591, Dec. 9, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 9.119" NODE="27:1.0.1.1.7.3.45.99" TYPE="SECTION">
<HEAD>§ 9.119   Middle Rio Grande Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Middle Rio Grande Valley.”
</P>
<P>(b) <I>Approved maps.</I> The approved maps for determining the boundaries of the “Middle Rio Grande Valley” viticultural area are 24 U.S.G.S. Quadrangle (7.5 Minute Series) maps and 1 (15 Minute Series) U.S.G.S. map. They are titled:
</P>
<P>(1) Abeytas, N. Mex. (1952), revised 1979.
</P>
<P>(2) Alameda, N. Mex. (1960), revised 1967 and 1972.
</P>
<P>(3) Alburquerque East, N. Mex. (1960), revised 1967 and 1972.
</P>
<P>(4) Albuquerque West, N. Mex. (1960), revised 1967 and 1972.
</P>
<P>(5) Belen, N. Mex. (1952), revised 1971.
</P>
<P>(6) Bernalillo, N. Mex. (1954), revised 1972.
</P>
<P>(7) Dalies, N. Mex. (1952), revised 1971.
</P>
<P>(8) Isleta, N. Mex. (1952), revised 1967 and 1974.
</P>
<P>(9) La Joya, N. Mex. (1952), revised 1971.
</P>
<P>(10) Lemitar, N. Mex. (1952), revised 1971.
</P>
<P>(11) Loma De Las Canas, N. Mex. (1959), revised 1979.
</P>
<P>(12) Loma Machete, N. Mex. (1954), revised 1972.
</P>
<P>(13) Los Griegos, N. Mex. (1960), revised 1967 and 1972.
</P>
<P>(14) Los Lunas, N. Mex. (1952), revised 1971 and 1974.
</P>
<P>(15) Mesa Del Yeso, N. Mex. (1959).
</P>
<P>(16) Placitas, N. Mex. (1954).
</P>
<P>(17) San Acacia, N. Mex. (1952), revised 1971.
</P>
<P>(18) San Antonio, N. Mex. (1948)—15 minute series.
</P>
<P>(19) San Felipe Pueblo, N. Mex. (1954), revised 1978.
</P>
<P>(20) Santa Ana Pueblo, N. Mex. (1954), revised 1978.
</P>
<P>(21) Socorro, N. Mex. (1959), revised 1971.
</P>
<P>(22) Tome, N. Mex. (1952), revised 1979.
</P>
<P>(23) Turn, N. Mex. (1952), revised 1979.
</P>
<P>(24) Veguita, N. Mex. (1952), revised 1979.
</P>
<P>(25) Wind Mesa, N. Mex. (1952), revised 1967.
</P>
<P>(c) <I>Boundary description.</I> The boundary of the proposed Middle Rio Grande Valley viticultural area is as follows:
</P>
<P>(1) The beginning point is at the transmission line tower in the middle of Section 34, T14N, R4E of the Santa Ana Pueblo, N. Mex. U.S.G.S. map;
</P>
<P>(2) The boundary follows the power transmission line east for 2.5 miles until it converges with New Mexico State Route 25/Interstate 85 (now known as Interstate 25) at Sec. 1, T13N, R4E on the San Felipe Pueblo, M. Mex. U.S.G.S. map;
</P>
<P>(3) It follows I-25 southwest for 1.2 miles until it arrives at an unimproved dirt road approx. .2 mile east of Algodones Cemetery, at Sec. 11, T13N, R4E on the Placitas, N. Mex. U.S.G.S. map;
</P>
<P>(4) The boundary follows the unimproved dirt road southeast for 5.5 miles until it meets another unimproved dirt road at Tecolote, NM, south of Sec. 27 and 28, T13N, R5E;
</P>
<P>(5) It travels southwest on the unimproved dirt road .7 mile until it meets NM-44 approx. 100 feet northwest of BM 6,075 in Placitas, NM, at T13N, R5E;
</P>
<P>(6) It then goes southeast on NM-44 for approx. 250 feet until it intersects the 6,100 foot elevation contour line approx. 250 feet southeast of BM 6,075, at T13N, R5E;
</P>
<P>(7) It then travels west for 3.5 miles on the 6,100 feet elevation contour line until it reaches a light-duty road on the Huertas Grant/Cibola National Forest Boundary at Sec. 6, T12N, R5E;
</P>
<P>(8) The boundary runs north to northwest on the light-duty road for approx. .9 mile until it meets NM-44 next to BM 5,875 in Sec. 31, T13N, R5E;
</P>
<P>(9) It travels west 5.2 miles on NM-44 until it arrives at I-25 (southbound interchange) near the Bernalillo Cemetery at T13N, R4E on the Bernalillo, N. Mex. U.S.G.S. map;
</P>
<P>(10) It proceeds south on I-25 for approx. 8.6 miles until it intersects with NM-556 at the east bound interchange at Sec. 1, T11N, R3E on the Alameda, N. Mex. U.S.G.S. map;
</P>
<P>(11) The boundary goes east approx. 5 miles on NM-556 until it intersects the 106°30′ longitude meridian, T11N, R4E;
</P>
<P>(12) Then it goes south on the 106°30′ longitude meridian for approx. 4.5 miles until it arrives at Montgomery Blvd. at Sec. 34, T10/11N, R4E;
</P>
<P>(13) The boundary travels west on Montgomery Blvd. for approx. 6.1 miles until it meets the south exit ramp of 1-25 in Sec. 34, T11N, R3E;
</P>
<P>(14) Then it travels south on I-25 for approx. 13.3 miles (through Albuquerque, NM) until it intersects with NM-47 at Sec. 6, T8N, R3E on the Isleta, N. Mex. U.S.G.S. map;
</P>
<P>(15) It heads south on NM-47 for approx. 3.2 miles until it converges with the 4,900 foot elevation contour line at Isleta Pueblo, NM, in Sec. 24, T8N, R2E;
</P>
<P>(16) The boundary follows the 4,900 foot elevation contour line south for approx. 25 miles until it arrives at a point north on Madron, NM, at the Atchison, Topeka and Santa Fe Railroad (AT&amp;SF RR) tracks, approx. 250 feet east of elevation mark 4,889 feet on the Turn, N. Mex. U.S.G.S. map;
</P>
<P>(17) It then travels north on the AT&amp;SF RR tracks for approx. 350 feet until it intersects NM-47 approx. 350 feet north of elevation mark 4,889 feet;
</P>
<P>(18) The boundary goes southwest on NM-47 (through Turn, N.M.) for approx. 2.4 miles until it reaches the 106°45′ longitude meridian between the Turn, N. Mex. &amp; Vequita, N. Mex. U.S.G.S. maps;
</P>
<P>(19) Then it travels south on the 106°45′ longitude meridian for approx. 4.7 miles until it meets the 34°30′ latitude parallel on the Veguita, N. Mex. U.S.G.S. map;
</P>
<P>(20) It then proceeds west on the 34°30′ latitude parallel for approx. 1 mile until it arrives at NM-47 approx. .75 mile south of San Juan Church;
</P>
<P>(21) Then it moves south on NM-47 for approx. 13.2 miles until it reaches an improved light-duty road at La Joya, NM, approx. 500 feet west of La Joya Cemetery on the La Joya, N. Mex. U.S.G.S. map;
</P>
<P>(22) It then travels south on the improved light-duty road for approx. 450 feet until it intersects another improved light-duty road;
</P>
<P>(23) Then it goes 500 feet west on the improved light-duty road until it reaches a north-south unimproved road at a point approx. .9 mile east of the AT&amp;SF RR tracks;
</P>
<P>(24) The boundary heads south on the unimproved road for approx. 7.9 miles until it reaches the 34°15′ latitude parallel on the La Joya, N. Mex. U.S.G.S. map;
</P>
<P>(25) It travels west on the 34°15′ latitude parallel for approx. .9 mile until it intersects the 106°52′30′ longitude meridian on the Mesa Del Yeso, N. Mex. U.S.G.S. map;
</P>
<P>(26) It then goes south on the 106°52′30″ longitude meridian for approx. 3.3 miles until it intersects the south section line of Sec. 19, T1S, R1E;
</P>
<P>(27) It then runs east for approx. 1.25 miles until it reaches the east section line (marked altitude 5,058 feet) of Sec. 20, T1S, R1E;
</P>
<P>(28) It travels south on the section line for approx. 7.1 miles, until it meets the Grant Boundary at altitude mark 4,734 feet at Sec. 32/33, T2S, R1E on the Loma De Las Canas, N. Mex. U.S.G.S. map;
</P>
<P>(29) It proceeds east on the Grant Boundary for .25 mile until it arrives at the section line (Grant Boundary at Sec. 32/33, T2S, R1E;
</P>
<P>(30) The boundary moves south on the Grant Boundary for approx. 5.2 miles until it meets the (Grant Boundary) section line near altitude spot 4,702 feet at Sec. 28/29, T3S, R1E;
</P>
<P>(31) The boundary goes west on the section line (Grant Boundary) for approx. .25 mile until it arrives at the section line at Sec. 28/29, T3S, R1E;
</P>
<P>(32) Then it moves south on the section line for approx. 5.7 miles until it meets an unimproved dirt road at Bosquecito, N.M. on the west section line of Sec. 9, T4S, R1E on the San Antonio, N. Mex. (15 minute series) U.S.G.S. map;
</P>
<P>(33) It heads south on the unimproved dirt road for approx. 2 miles until it changes to a light-duty road at Padilla Ranch in Sec. 21, T4S, R1E;
</P>
<P>(34) It follows the light-duty road for 2.25 miles until it intersects US-380/85, in Sec. 33, T4S, R1E;
</P>
<P>(35) Then it follows US-380/85, first west then it loops north for approx. 8 miles until it meets the 34°00′ latitude parallel;
</P>
<P>(36) The boundary moves west on the 34°00′ latitude parallel of the Socorro, N. Mex. U.S.G.S. map for approx. .75 mile until it meets the 4,800 foot elevation contour line in Sec. 35;
</P>
<P>(37) It meanders north on the 4,800 foot elevation contour line for approx. 9 miles until it meets the 34°07′30″ latitude parallel;
</P>
<P>(38) It travels east for approx. .2 mile on the 34°07′30″ latitude parallel until it meets I-25 (US-60/85);
</P>
<P>(39) It goes north on I-25 (US-60/85) for approx 27.8 miles until it meets the Belen Highline Canal levee approx. 1.6 mile south of San Antonio Church on the Veguita, N. Mex. U.S.G.S. map;
</P>
<P>(40) Then the boundary follows the Belen Highline Canal north for approx. 9.4 miles until it intersects I-25, approx. .5 mile west of Bacaville, NM, on the Belen, N. Mex. U.S.G.S. map;
</P>
<P>(41) Then it travels north on I-25 for approx. 16 miles until it meets the 34°52′30″ latitude parallel on the Isleta, N. Mex. U.S.G.S. map;
</P>
<P>(42) The boundary goes west on the 34°52 30″ latitude parallel for approx. 1 mile until it arrives at the 106°45′ longitude meridian;
</P>
<P>(43) Then it moves north on the 106°45′ longitude meridian for approx. 16.5 miles until it reaches the 35°07′30″ longitude meridian on the Albuquerque West, N. Mex. U.S.G.S. map;
</P>
<P>(44) At this point it heads east for approx. 1.2 miles along the 35°07′30″ latitude parallel until it reaches the power transmission line towers at Sec. 3/4, T10N, R2E of the Los Griegos, N. Mex. U.S.G.S. map; and finally
</P>
<P>(45) From there it follows the power transmission line towers (and for 1 mile along a connecting unimproved road) north and northeast for a total of approx. 24.4 miles to the point of beginning at Sec. 34, T14N, R4E, of the Santa Ana Pueblo, N. Mex. U.S.G.S. map.
</P>
<CITA TYPE="N">[T.D. ATF-266, 52 FR 2836, Feb. 2, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 9.120" NODE="27:1.0.1.1.7.3.45.100" TYPE="SECTION">
<HEAD>§ 9.120   Sierra Foothills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Sierra Foothills.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Sierra Foothills viticultural area are four U.S.G.S. topographical maps of the 1:250,000 scale:
</P>
<P>(1) “Chico” (NJ 10-3), edition of 1958, revised 1970.
</P>
<P>(2) “Sacramento” (NJ 10-6), edition of 1957 revised 1970.
</P>
<P>(3) “San Jose” (NJ 10-9), edition of 1962, revised 1969.
</P>
<P>(4) “Mariposa” (NJ 11-7), edition of 1957, revised 1970.
</P>
<P>(c) <I>Boundary.</I> The Sierra Foothills viticultural area is located in portions of the counties of Yuba, Nevada, Placer, El Dorado, Amador, Calaveras, Tuolumne and Mariposa, in the State of California. The boundary is as follows:
</P>
<P>(1) Beginning on the “Chico” map at the point of intersection of the north border of T(ownship) 18 N(orth), R(ange) 6 E(ast), with S. Honcut Creek the boundary proceeds approximately 3.5 miles, in a generally south and southwesterly direction, along the eastern bank of S. Honcut Creek to the point where S. Honcut Creek meets the western border of T. 18 N., R. 6 E.;
</P>
<P>(2) Then south, approximately 15 miles, along the western borders of T. 18 N., T. 17 N., and T. 16 N. in R. 6 E., to the point where the western border of T. 16 N., R. 6 E. meets the northernmost perimeter of Beale Air Force Base in the southwestern corner of T. 16 N., R. 6 E.;
</P>
<P>(3) Then east, south and west along the perimeter of Beale Air Force Base to the point where the perimeter of Beale Air Force Base intersects the western border of R. 7 E. in T. 14 N.;
</P>
<P>(4) Then south, approximately 24 miles, along the western borders of T. 14 N., T. 13 N., T. 12 N., and T. 11 N. in R. 7 E., to the southwestern corner of T. 11 N., R. 7 E. (see “Sacramento” map);
</P>
<P>(5) Then east, approximately six miles, along the south border of T. 11 N., R. 7 E., to the southeastern corner of T. 11 N., R. 7 E.;
</P>
<P>(6) Then in a south southeasterly direction, in a straight line, approximately three miles, to the northeasternmost corner of Sacramento County in T. 10 N., R. 8 E.;
</P>
<P>(7) Then continuing in a south southeasterly direction, in a straight line, along the Sacramento County—El Dorado County line, approximately 15 miles, to the point where the county line meets the Cosumnes River in the southwestern corner of T. 8 N., R. 9 E.;
</P>
<P>(8) Then south, in a straight line, approximately 14.1 miles, along the Sacramento County—Amador County line, to the point where the county line meets Dry Creek in the northwestern corner of T. 5 N., R. 9 E.;
</P>
<P>(9) Then in a south southeasterly direction, in a straight line, approximately 5.4 miles. along the San Joaquin County—Amador County line, to the point where the Mokelumne River forms the Amador County—Calaveras County line in T. 4 N., R. 9 E.;
</P>
<P>(10) Then continuing in a south southeasterly direction, in a straight line, approximately 10.4 miles, along the San Joaquin County-Calaveras County line, to the point where the power line meets the western border of T. 3 N., R. 10 E.;
</P>
<P>(11) Then in a southeasterly direction, in a straight line, approximately 22.4 miles, along the Calaveras County-Stanislaus County line to the point where the county line meets the Stanislaus River in T. 1 S., R. 12 E. (see “San Jose” map);
</P>
<P>(12) Then in a southeasterly direction, in a straight line, approximately 20 miles, along the Tuolumne County-Stanislaus County line to the point where the county lines of Tuolumne, Mariposa, Stanislaus and Merced counties meet in the southeast corner of T. 3 S., R. 14 E.;
</P>
<P>(13) Then continuing along the Mariposa County-Merced County line in a generally southeasterly direction, approximately 37 miles, to the point where the county lines of Mariposa, Merced and Madera counties meet in the northwestern corner of T. 9 S, R. 18 E.;
</P>
<P>(14) Then northeasterly in a straight line, approximately 23 miles, along the Mariposa County-Merced County line to the point, approximately one mile west of Miami Mountain, where the Mariposa County-Merced County line meets the western border of the boundary of the Sierra National Forest in T. 6S, R. 20 E. (see “Mariposa” map);
</P>
<P>(15) Then in a generally northerly and westerly direction, along the western borders of the Sierra and Stanislaus National Forests in Mariposa County (see “San Jose” map);
</P>
<P>(16) Then in a generally northerly and westerly direction, along the western border of the Stanislaus National Forest in Tuolumne County (see “Sacramento” map);
</P>
<P>(17) Then in a generally northerly and westerly direction, along the western border of the Stanislaus National Forest in Calaveras and Amador counties;
</P>
<P>(18) Then in a generally northerly and westerly direction, along the western border of the El Dorado National Forest in Amador, El Dorado and Placer counties (see “Chico” map);
</P>
<P>(19) Then in a generally northerly and westerly direction, along the western border of the Tahoe National Forest in Placer, Nevada and Yuba counties to the point south of Ruef Hill where the western border of the Tahoe National Forest intersects the northeast corner of T. 18 N., R. 6 E.;
</P>
<P>(20) Then west, approximately five miles, along the north border of T. 18 N., R. 6 E., to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-261, 52 FR 44105, Nov. 18, 1987, as amended by T.D. TTB-196 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.121" NODE="27:1.0.1.1.7.3.45.101" TYPE="SECTION">
<HEAD>§ 9.121   Warren Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Warren Hills.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Warren Hills viticultural area are thirteen U.S.G.S. maps of the 7.5 minute series. They are titled:
</P>
<P>(1) Riegelsville Quadrangle, Pennsylvania—New Jersey, 1956 (photorevised 1968 and 1973).
</P>
<P>(2) Bloomsbury Quadrangle, New Jersey, 1955 (photorevised 1970).
</P>
<P>(3) High Bridge Quadrangle, New Jersey, 1954 (photorevised 1970).
</P>
<P>(4) Washington Quadrangle, New Jersey, 1954 (photorevised 1971).
</P>
<P>(5) Hackettstown Quadrangle, New Jersey, 1953 (photorevised 1971, photoinspected 1976).
</P>
<P>(6) Tranquility Quadrangle, New Jersey, 1954 (photorevised 1971).
</P>
<P>(7) Newton West Quadrangle, New Jersey, 1954 (photorevised 1971).
</P>
<P>(8) Flatbrookville Quadrangle, New Jersey—Pennsylvania, 1954 (photorevised 1971).
</P>
<P>(9) Blairstown Quadrangle, New Jersey—Warren Co., 1954 (photorevised 1971).
</P>
<P>(10) Portland Quadrangle, Pennsylvania—New Jersey, 1955 (photorevised 1984).
</P>
<P>(11) Belvidere Quadrangle, New Jersey—Pennsylvania, 1955 (photorevised 1984).
</P>
<P>(12) Bangor Quadrangle, Pennsylvania—New Jersey, 1956 (photorevised 1968 and 1973).
</P>
<P>(13) Easton Quadrangle, New Jersey—Pennsylvania, 1956 (photorevised 1968 and 1973).
</P>
<P>(c) <I>Boundary</I>—(1) <I>General.</I> The Warren Hills viticultural area is located in Warren County, New Jersey. The beginning point of the following boundary description is the junction of the Delaware River and the Musconetcong River, at the southern tip of Warren County (on the Riegelsville map).
</P>
<P>(2) <I>Boundary Description.</I> (i) From the beginning point, the boundary goes northeastward along the Musconetcong River about 32 miles (on the Riegelsville, Bloomsbury, High Bridge, Washington, Hackettstown, and Tranquaility maps) to the point where it intersects the Warren County-Sessex County line;
</P>
<P>(ii) Then northwestward along that county line for about 10 miles (on the Tranquility, Newton West, and Flatbrookville maps) to Paulins Kill;
</P>
<P>(iii) Then generally southwestward along Paulins Kill (on the Flatbrookville, Blairstown and Portland maps) to the Delaware River;
</P>
<P>(iv) Then generally south-southwestward along the Delaware River (on the Portland, Belvidere, Bangor, Easton, and Reigelsville maps) to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-276, 53 FR 29676, Aug. 8, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 9.122" NODE="27:1.0.1.1.7.3.45.102" TYPE="SECTION">
<HEAD>§ 9.122   Western Connecticut Highlands.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Western Connecticut Highlands.”
</P>
<P>(b) <I>Approved map.</I> The approved map for determining the boundaries of the “Western Connecticut Highlands” viticultural area is 1 U.S.G.S. 1:125,000 series map. It is titled State of Connecticut, Compiled in 1965, Edition of 1966.
</P>
<P>(c) <I>Boundary description.</I> The boundaries of the proposed Western Connecticut Highlands viticultural area are as follows:
</P>
<P>(1) The beginning point is where Connecticut Route #15 (Merritt Parkway) meets the Connecticut-New York State line near Glenville, CT, in the Town of Greenwich.
</P>
<P>(2) The boundary goes approximately 80 miles northerly along the Connecticut-New York State line to the northwest corner of Connecticut at the Town of Salisbury (Connecticut-New York-Massachusetts State line);
</P>
<P>(3) The boundary proceeds approximately 32 miles east along the Connecticut-Massachusetts State line to the northeast border of the Town of Hartland;
</P>
<P>(4) The boundary runs approximately 5 miles south along the eastern boundary of the Town of Hartland to the northeast corner of the Town of Barkhamstead (Litchfield-Hartford County line);
</P>
<P>(5) The boundary then goes south approximately 25 miles along the Litchfield-Hartford County line to the southeast corner of the Town of Plymouth (Litchfield-Hartford-New Haven County line);
</P>
<P>(6) The boundary then travels approximately 7 miles west along the Litchfield-New Haven County line to Connecticut Route #8 at Waterville in the Town of Waterbury;
</P>
<P>(7) The boundary proceeds approximately 25 miles south along Connecticut Route #8 to the intersection of Connecticut Route 15 (Merritt Parkway) near Nichols in the Town of Trumbull;
</P>
<P>(8) The boundary travels approximately 32 miles west along Connecticut Route 15 (Merritt Parkway) to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-267, 53 FR 3747, Feb. 9, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 9.123" NODE="27:1.0.1.1.7.3.45.103" TYPE="SECTION">
<HEAD>§ 9.123   Mt. Veeder.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Mt. Veeder.”
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the “Mt. Veeder” viticultural area are three U.S.G.S. Quadrangle (7.5 Minute Series) maps. They are titled:
</P>
<P>(1) Napa, California (1951 (Photorevised (1980))
</P>
<P>(2) Rutherford, California (1951 (Photorevised (1968))
</P>
<P>(3) Sonoma, California (1951 (Photorevised (1980))
</P>
<P>(c) <I>Boundaries.</I> (1) Beginning at unnamed peak, elevation 1,820, on the common boundary between Napa County and Sonoma County in section 23, Township 7 North, Range 6 West, Mount Diablo Base and Meridian on the Rutherford, Calif. U.S.G.S. map;
</P>
<P>(2) Thence south along common boundary between Napa County and Sonoma County to unnamed peak, elevation 1,135 feet on the Sonoma, Calif. U.S.G.S. map;
</P>
<P>(3) Thence continuing south along the ridge line approximately 
<FR>1/2</FR> mile to unnamed peak, elevation 948 feet;
</P>
<P>(4) Thence due east in a straight line approximately 
<FR>2/10</FR> mile to the 400 foot contour;
</P>
<P>(5) Thence following the 400 foot contour line north around Carneros Valley and then to the west of Congress Valley and Browns Valley on the Napa, Calif. U.S.G.S. map;
</P>
<P>(6) Thence paralleling Redwood Road to its intersection with the line dividing Range 5 West and Range 4 West, east of the unnamed 837 foot peak;
</P>
<P>(7) Thence north along the line dividing Range 5 West and Range 4 West approximately 
<FR>4/10</FR> mile to the 400 foot contour;
</P>
<P>(8) Thence briefly southeast, then northwest along the 400 foot contour to the point where that contour intersects the northern border of Section 10, Township 6 North, Range 5 West immediately adjacent to Dry Creek on the Rutherford Calif. U.S.G.S. map;
</P>
<P>(9) Thence northwesterly along Dry Creek through Sections 3 and 4 of Township 6 North, Range 5 West, and Sections 32 and 31 of Township 7 North, Range 5 West, to the fork of Dry Creek near the center of Section 25 of Township 7 North, Range 6 West;
</P>
<P>(10) Continuing along the northern fork of Dry Creek through Sections 25 and 24 of Township 7 North, Range 6 West, to the point at which the main channel of Dry Creek ends and divides into three tributaries;
</P>
<P>(11) Thence following the middle tributary of Dry Creek through Sections 24 and 23 of Township 7 North, Range 6 West, to its source at the intersection with a trail indicated on the map;
</P>
<P>(12) Thence following a straight line west approximately 
<FR>1/10</FR> mile to the top of unnamed peak, elevation 1,820, the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-295, 55 FR 5844, Feb. 20, 1990, as amended by T.D. ATF-351, 58 FR 65126, Dec. 13, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 9.124" NODE="27:1.0.1.1.7.3.45.104" TYPE="SECTION">
<HEAD>§ 9.124   Wild Horse Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Wild Horse Valley.”
</P>
<P>(b) <I>Approved Map.</I> The appropriate map for determining the boundaries of the “Wild Horse Valley” viticultural area is one U.S.G.S. Quadrangle (7.5 Minute Series) map. It is titled Mt. George, California (1951), photorevised 1968.
</P>
<P>(c) <I>Boundaries.</I> The boundaries of the Wild Horse Valley viticultural area (in Napa and Solano Counties) are as follows:
</P>
<P>(1) The beginning point is on the section line boundary between Section 33, Range 3 West, Township 6 North and Section 4, Range 3 West, Township 5 North, Mount Diablo Range and Meridian, marked with an elevation of 1,731 feet, which is a northwest corner of the boundary between Napa and Solano Counties.
</P>
<P>(2) From the beginning point, the boundary runs in a north-northeasterly direction approximately .9 mile to the summit of an unnamed hill having a marked elevation of 1,804 feet;
</P>
<P>(3) Then northeasterly approximately .7 mile to the summit of an unnamed hill having a marked elevation of 1,824 feet;
</P>
<P>(4) Then south-southeasterly approximately .6 mile to the summit of an unnamed hill having a marked elevation of 1,866 feet;
</P>
<P>(5) Then south-southeasterly approximately .5 mile to the summit of an unnamed hill having a marked elevation of 2,062 feet;
</P>
<P>(6) Then southerly approximately .7 mile to the summit of an unnamed hill having a marked elevation of 2,137 feet;
</P>
<P>(7) Then south-southeasterly approximately .4 mile to the summit of an unnamed hill having a marked elevation of 1,894 feet;
</P>
<P>(8) Then southerly approximately 2.3 miles to the midpoint of the section line boundary between Sections 15 and 22, Township 5 North, Range 3 West, Mount Diablo Range and Meridian;
</P>
<P>(9) Then southwesterly approximately 1.3 miles to the summit of an unnamed hill having a marked elevation of 1,593 feet;
</P>
<P>(10) Then west-northwesterly approximately 1.2 miles to the summit of an unnamed hill, on the Napa/Solano County boundary, having a marked elevation of 1,686 feet;
</P>
<P>(11) Then north-northeasterly approximately 1.5 miles to the summit of an unnamed hill having a marked elevation of 1,351 feet;
</P>
<P>(12) Then north-northeasterly approximately 1.2 miles to the summit of an unnamed hill having a marked elevation of 1,480 feet; and
</P>
<P>(13) Then north-northwesterly approximately 1.0 miles to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-278, 53 FR 48247, Nov. 30, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 9.125" NODE="27:1.0.1.1.7.3.45.105" TYPE="SECTION">
<HEAD>§ 9.125   Fredericksburg in the Texas Hill Country.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Fredericksburg in the Texas Hill Country.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Fredericksburg in the Texas Hill Country viticultural area are six U.S.G.S. topographical maps of the 1:24,000 scale. They are titled:
</P>
<P>(1) Stonewall Quadrangle (1961);
</P>
<P>(2) Cain City Quadrangle (1963);
</P>
<P>(3) Fredericksburg East Quadrangle (1967, photorevised 1982);
</P>
<P>(4) Cave Creek School Quadrangle (1961);
</P>
<P>(5) Fredericksburg West Quadrangle (1967, photorevised 1982); and
</P>
<P>(6) Lady Bird Johnson Park Quadrangle (1964, photoinspected 1979).
</P>
<P>(c) <I>Boundaries.</I> The Fredericksburg in the Texas Hill Country viticultural area is located entirely in Gillespie County, Texas, in the central part of the State approximately 80 miles west of Austin. The beginning point is on the Stonewall Quadrangle map near Blumenthal at a point on U.S. Route 290 approximately .1 mile east of bench mark (BM) 1504, at the junction of a light-duty road known locally as Jung Road.
</P>
<P>(1) From the beginning point, the boundary proceeds on Jung Road in a northwesterly direction across the Pedernales River.
</P>
<P>(2) Then northwesterly approximately 1 mile along Jung Road as it parallels the Pedernales River.
</P>
<P>(3) Then north along Jung Road approximately 3.9 miles to a point where Jung Road meets a medium-duty road known locally as Texas Ranch Road 2721.
</P>
<P>(4) Then westerly approximately .1 mile on Texas Ranch Road 2721 to a point where it meets a medium-duty road known locally as Texas Ranch Road 1631.
</P>
<P>(5) Then northeasterly along Texas Ranch Road 1631 approximately 1 mile to a point where Texas Ranch Road 1631 crosses the 1,800 foot contour line.
</P>
<P>(6) Then northwesterly in a meandering manner along the 1,800-foot contour line to the point where the 1,800-foot contour line crosses State Route 16.
</P>
<P>(7) Then in a generally westerly direction along the 1,800-foot contour line to the point where the 1,800-foot contour line crosses State Route 965.
</P>
<P>(8) Then in a northwesterly and then generally a southeasterly direction along the 1,800-foot contour line to a point where the 1,800-foot contour line goes just south of the Kordzik Hills approximately 1 mile due east of the city of Fredericksburg.
</P>
<P>(9) Then continuing on the 1,800-foot contour line in a generally northwesterly, southerly, and again northwesterly direction to the point where the 1,800-foot contour line crosses Loudon Road approximately 4 miles northwest of Fredericksburg.
</P>
<P>(10) Then continuing on the 1,800-foot contour line in a northwesterly, then generally a southeasterly, westerly and finally a southerly direction to a point where the 1,800-foot contour line crosses a light-duty road known locally as Hayden Ranch Road about 50 yards north of Texas Ranch Road 2093.
</P>
<P>(11) Then 50 yards south on Hayden Ranch Road to Texas Ranch Road 2093 and then east on Texas Ranch Road 2093 approximately .15 mile to an unimproved, southbound, gravel and dirt county road known locally as Beverly Gold's Road.
</P>
<P>(12) Then approximately 2.6 miles south on Beverly Gold's Road to a point where it joins Texas State Route 16.
</P>
<P>(13) Then approximately 1.5 miles northeast on State Route 16 to a light-duty county road known locally as Bear Creek Road.
</P>
<P>(14) Then approximately 1 mile in a southeasterly, northeasterly, and then a southerly direction along Bear Creek Road to the point where the road crosses the 1,700-foot contour line.
</P>
<P>(15) Then in a generally easterly direction for approximately 10 miles along the 1,700-foot contour line to a point where the 1,700-foot contour line crosses Texas Ranch Road 1376.
</P>
<P>(16) Then approximately 3.1 miles southeast along Texas Ranch Road 1376 to a light-duty road at Luckenbach known locally both as Kunz-Klien Road and Luckenbach Road.
</P>
<P>(17) Then approximately 1.3 miles in a generally northeasterly and then an easterly direction along Luckenbach Road and continuing along Luckenbach Road in a northerly direction about 2.5 miles to the point where Luckenbach Road joins U.S. Route 290.
</P>
<P>(18) Then west approximately .2 mile on U.S. Route 290 to the intersection with Jung Road, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-279, 53 FR 51541, Dec. 22, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 9.126" NODE="27:1.0.1.1.7.3.45.106" TYPE="SECTION">
<HEAD>§ 9.126   Santa Clara Valley.</HEAD>
<P>(a) Name. The name of the viticultural area described in this section is “Santa Clara Valley.”
</P>
<P>(b) Approved Maps. The appropriate maps for determining the boundaries of the “Santa Clara Valley” viticultural area are 25 U.S.G.S. Quadrangle (7.5 Minute Series) maps. They are titled:
</P>
<P>(1) Calaveras Reservoir, Calif., 1961 (photorevised 1980);
</P>
<P>(2) Castle Rock Ridge, Calif., 1955 (photorevised 1968), photoinspected 1973;
</P>
<P>(3) Chittenden, Calif., 1955 (photorevised 1980);
</P>
<P>(4) Cupertino, Calif., 1961 (photorevised 1980);
</P>
<P>(5) Gilroy, Calif., 1955 (photorevised 1981);
</P>
<P>(6) Gilroy Hot Springs, Calif., 1955 (photorevised 1971), photoinspected 1973;
</P>
<P>(7) Lick Observatory, Calif., 1955 (photorevised 1968), photoinspected 1973;
</P>
<P>(8) Loma Prieta, Calif., 1955 (photorevised 1968);
</P>
<P>(9) Los Gatos, Calif., 1953 (photorevised 1980);
</P>
<P>(10) Milpitas, Calif., 1961 (photorevised 1980);
</P>
<P>(11) Mindego Hill, Calif., 1961 (photorevised 1980);
</P>
<P>(12) Morgan Hill, Calif., 1955 (photorevised 1980);
</P>
<P>(13) Mt. Madonna, Calif., 1955 (photorevised 1980);
</P>
<P>(14) Mt. Sizer, Calif., 1955 (photorevised 1971), photoinspected 1978;
</P>
<P>(15) Mountain View, Calif., 1961 (photorevised 1981);
</P>
<P>(16) Newark, Calif., 1959 (photorevised 1980);
</P>
<P>(17) Niles, Calif., 1961 (photorevised 1980);
</P>
<P>(18) Pacheco Peak, Calif., 1955 (photorevised 1971);
</P>
<P>(19) Palo Alto, Calif., 1961 (photorevised 1973);
</P>
<P>(20) San Felipe, Calif., 1955 (photorevised 1971);
</P>
<P>(21) San Jose East, Calif., 1961 (photorevised 1980);
</P>
<P>(22) San Jose West, Calif., 1961 (photorevised 1980);
</P>
<P>(23) Santa Teresa Hills, Calif., 1953 (photorevised 1980);
</P>
<P>(24) Three Sisters, Calif., 1954 (photorevised 1980);
</P>
<P>(25) Watsonville East, Calif., 1955 (photorevised 1980); and
</P>
<P>(c) The boundaries of the proposed Santa Clara Valley viticultural area are as follows:
</P>
<P>(1) The beginning point is at the junction of Elephant Head Creek and Pacheco Creek (approx. .75 mile southwest of the Pacheco Ranger Station) on the Pacheco Peak, Calif. U.S.G.S. map.
</P>
<P>(2) From the beginning point the boundary moves in a northerly direction up Elephant Head Creek approx. 1.2 miles until it intersects the 600 foot elevation contour line;
</P>
<P>(3) Then it meanders in a northwesterly direction along the 600 foot contour line approx. 55 miles until it intersects Vargas Road in the northwest portion of Sec. 25, T4S/RlW on the Niles, Calif. U.S.G.S. map;
</P>
<P>(4) Then it travels in a northwesterly direction approx. .6 mile to the intersection of Morrison Canyon Road in the eastern portion of Sec. 23, T4S/RlW;
</P>
<P>(5) Then it follows Morrison Canyon Road west approx. 1.5 miles to Mission Boulevard (Highway 238) at Sec. 22, T4S/RlW;
</P>
<P>(6) Then it moves northwest on Mission Boulevard (Highway 238) approx. .6 mile to the intersection of Mowry Avenue just past the Sanatorium at Sec. 22, T4S/RlW;
</P>
<P>(7) It then goes in a southwesterly direction on Mowry Avenue approx. 3.6 miles to the intersection of Nimitz Freeway (Highway 880) (depicted on the map as Route 17) at Sec. 5, T5S/RlW, on the Newark, Calif. U.S.G.S. map;
</P>
<P>(8) It then moves along the Nimitz Freeway (Highway 880) in a southeasterly direction for approx. 9 miles to the intersection of Calaveras Boulevard (Highway 237) at Milpitas on the Milpitas, Calif. U.S.G.S. map;
</P>
<P>(9) Then it follows Highway 237 in a westerly direction approx. 7.2 miles to intersection of Bay Shore Freeway (Highway 101) at Moffett Field on the Mt. View, Calif. U.S.G.S. map;
</P>
<P>(10) Then in a northwest direction follow Bay Shore Freeway (Highway 101) for approx. 6.5 miles to the intersection of the San Francisquito Creek (Santa Clara County/San Mateo County boundary) at Palo Alto T5S/R2W, on the Palo Alto, Calif. U.S.G.S. map;
</P>
<P>(11) Then it heads west on San Francisquito Creek (Santa Clara County/San Mateo County boundary) approx. 7 miles until it converges with Los Trancos Creek (Santa Clara County/San Mateo County boundary) near Bench Mark 172, approx. 100 feet east of Alpine Road;
</P>
<P>(12) It travels south approx. 4 miles along Los Trancos Creek (Santa Clara County/San Mateo County boundary) until it intersects the 600 foot elevation contour line at El Corte De Madera, approx. .5 mile north of Trancos Woods on the Mindego Hill, Calif. U.S.G.S. map;
</P>
<P>(13) It moves along the 600 foot elevation contour line in a southeasterly direction approx. 10 miles to Regnart Road at Regnart Creek on the Cupertino, Calif. U.S.G.S. map;
</P>
<P>(14) It goes northeast along Regnart Road, approx. .7 mile to the 400 foot elevation contour line (.3 mile southwest of Regnart School);
</P>
<P>(15) It travels along the 400 foot elevation contour line southeast approx. 1.4 miles to the north section line of Section 36, T7S/R2W at Blue Hills, CA;
</P>
<P>(16) The boundary goes east on the section line approx. .4 mile to Saratoga Sunnyvale Road (Highway 85);
</P>
<P>(17) It travels south on Saratoga Sunnyvale Road (Highway 85) approx. 1 mile to the south section line of Section 36, T7/8S R2W;
</P>
<P>(18) Then it goes west on the section line approx. .75 mile to the first intersection of the 600 foot elevation contour line;
</P>
<P>(19) It follows the 600 foot elevation contour line southeast approx. .75 mile to Pierce Road south of Calabazas Creek;
</P>
<P>(20) It then travels south on Pierce Road approx. .4 mile to the first intersection of the 800 foot elevation contour line;
</P>
<P>(21) Then it runs southeast approx. 28 miles on the 800 foot elevation contour line to the east section line of Sec. 25, T10S/R2E/R3E approx. .5 mile north of Little Arthur Creek on the Mt. Madonna, Calif. U.S.G.S. map;
</P>
<P>(22) Then it goes south on the section line approx. .5 mile to the 800 foot elevation contour line approx. .2 mile south of Little Arthur Creek;
</P>
<P>(23) Then it goes southeast along the 800 foot elevation contour line approx. 2.7 miles to Hecker Pass Road (Highway 152) approx. 1.25 miles east of Hecker Pass on the Watsonville East, Calif. U.S.G.S. map;
</P>
<P>(24) The boundary goes northeast on Hecker Pass Road (Highway 152) approx. .75 mile to the intersection of the 600 foot elevation contour line just west of Bodfish Creek;
</P>
<P>(25) It travels southeast along the 600 foot elevation contour line approx. 7.3 miles to the first intersection of the western section line of Sec. 30, T11S/R3E/R4E on the Chittenden, Calif. U.S.G.S. map;
</P>
<P>(26) Then it follows south along the section line approx. 1.9 miles to the south township line at Sec. 31, T11S/T12S, R3E/R4E;
</P>
<P>(27) It moves in an easterly direction along the township line approx. 12.4 miles to the intersection of T11S/T12S and R5E/R6E on the Three Sisters, Calif. U.S.G.S. map;
</P>
<P>(28) Then it goes north along R5E/R6E range line approx. 5.3 miles to Pacheco Creek on the Pacheco Creek, Calif. U.S.G.S. map;
</P>
<P>(29) Then it moves northeast along Pacheco Creek approx. .5 mile to Elephant Head Creek at the point of beginning.
</P>
<SECAUTH TYPE="N">[T.D. ATF-286, 54 FR 12606, Mar. 28, 1989]


</SECAUTH>
</DIV8>


<DIV8 N="§ 9.127" NODE="27:1.0.1.1.7.3.45.107" TYPE="SECTION">
<HEAD>§ 9.127   Cayuga Lake.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Cayuga Lake.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate map for determining the boundaries of the Cayuga Lake viticultural area is one U.S.G.S. map scaled 1:250,000, titled “Elmira, New York; Pennsylvania,” 1962 (revised 1978).
</P>
<P>(c) <I>Boundaries.</I> The Cayuga Lake viticultural area is located within the counties of Seneca, Tompkins, and Cayuga, in the State of New York, within the Finger Lakes viticultural area. The boundaries are as follows:
</P>
<P>(1) Commencing at the intersection of State Route 90 with State Route 5 in Cayuga County, north of Cayuga Lake.
</P>
<P>(2) Then south along State Route 90 to a point approximately one mile past the intersection of State Route 90 with State Route 326.
</P>
<P>(3) Then south along the primary, all-weather, hard surface road, approximately 
<FR>3/4</FR> mile, until it becomes State Route 90 again at Union Springs.
</P>
<P>(4) Then south/southeast along State Route 90 until it intersects the light-duty, all-weather, hard or improved surface road, approximately 1.5 miles west of King Ferry.
</P>
<P>(5) Then south along another light-duty, all-weather, hard or improved surface road, approximately 4 miles, until it intersects State Route 34B, just south of Lake Ridge.
</P>
<P>(6) Then follow State Route 34B in a generally southeast direction until it intersects State Route 34, at South Lansing.
</P>
<P>(7) Then south along State Route 34, until it meets State Route 13 in Ithaca.
</P>
<P>(8) Then southwest along State Routes 34/13, approximately 1.5 miles, until it intersects State Route 79, in Ithaca.
</P>
<P>(9) Then west along State Route 79, approximately 
<FR>1/2</FR> mile, until it intersects State Route 96.
</P>
<P>(10) Then along State Route 96, in a generally northwest direction, until it intersects State Routes 414 and 96A in Ovid.
</P>
<P>(11) Then north along State Routes 96/414, until they divide, approximately 2.5 miles north of Ovid.
</P>
<P>(12) Then along State Route 414, in a generally northeast direction, until it meets U.S. Route 20 in the town of Seneca Falls.
</P>
<P>(13) Then along U.S. Route 20, in a northeast direction, until it intersects State Routes 318, 89, and 5.
</P>
<P>(14) Then along U.S. Route 20/State Route 5, in a northeast direction, to the beginning point, at the intersection with State Route 90.
</P>
<CITA TYPE="N">[T.D. ATF-269, 53 FR 9769, Mar. 25, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 9.128" NODE="27:1.0.1.1.7.3.45.108" TYPE="SECTION">
<HEAD>§ 9.128   Seneca Lake.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Seneca Lake”.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the Seneca Lake viticultural area are 13 United States Geological Survey (USGS) topographic maps (Scale: 1:24,000). The maps are titled:
</P>
<P>(1) Burdett Quadrangle (New York—Schuyler Co. 1950 (photoinspected 1976));
</P>
<P>(2) Montour Falls Quadrangle (New York 1978 (photorevised 1976));
</P>
<P>(3) Beaver Dams Quadrangle (New York 1953);
</P>
<P>(4) Reading Center Quadrangle (New York 1950 (photorevised 1978));
</P>
<P>(5) Dundee Quadrangle (New York 1942 (photoinspected 1976));
</P>
<P>(6) Dresden Quadrangle (New York 1943 (photorevised 1978));
</P>
<P>(7) Penn Yan Quadrangle (New York—Yates Co. 1942 (photoinspected 1976));
</P>
<P>(8) Stanley Quadrangle (New York 1952);
</P>
<P>(9) Phelps Quadrangle (New York—Ontario Co. 1953);
</P>
<P>(10) Geneva North Quadrangle (New York 1953 (photorevised 1976));
</P>
<P>(11) Geneva South Quadrangle (New York 1953 (photorevised 1978));
</P>
<P>(12) Ovid Quadrangle (New York—Seneca Co. 1970); and
</P>
<P>(13) Lodi Quadrangle (New York 1942).
</P>
<P>(c) <I>Boundaries.</I> The Seneca Lake viticultural area surrounds Seneca Lake in upstate New York and is located in portions of Schuyler, Yates, Ontario, and Seneca counties. The boundaries are as follows:
</P>
<P>(1) Beginning in the town of Watkins Glen at the State Route 414 bridge over the New York State Barge Canal, follow the Canal south approximately 0.2 miles to the mouth of Glen Creek, on the Burdette, N.Y. map;
</P>
<P>(2) Follow Glen Creek upstream (west), crossing onto the Montour Falls, N.Y. map and continuing to the road locally known as the Van Zandt Hollow Road on the Beaver Dams, N.Y. map;
</P>
<P>(3) Proceed north on Van Zandt Hollow Road to Cross Road;
</P>
<P>(4) Continue north on Cross Road, which changes to Cretsley Road, to its intersection with Mud Lake Road (County Road 23) on the Reading Center, N.Y. map;
</P>
<P>(5) Proceed west approximately 0.7 miles on County Road 23 to its intersection with Pre-emption Road;
</P>
<P>(6) Then continue north on Pre-emption Road along the Dundee, N.Y., Penn Yan, N.Y. and Dresden, N.Y. maps, for approximately 18 miles to its junction with an unnamed light duty road just east of Keuka Lake Outlet on the Penn Yan, N.Y. map;
</P>
<P>(7) Follow the unnamed light duty road across the Keuka Outlet, traveling approximately 0.3 miles to its junction in Seneca Mills with an unnamed light duty road, known locally as Outlet Road;
</P>
<P>(8) Follow Outlet Road west along the north bank of the Keuka Outlet approximately 0.6 miles, until the road forks;
</P>
<P>(9) At the fork, continue north approximately 1 mile, on an unnamed light duty road know locally as Stiles Road, to its junction with Pre-emption Road.
</P>
<P>(10) Then proceed north 14.6 miles on Pre-emption Road across the Stanley, N.Y. map, to an unnamed medium duty road, known locally as County Road 4, on the Phelps, N.Y. map;
</P>
<P>(11) Continue west approximately 4.5 miles on County Road 4 to its intersection with Orleans Road in Seneca Castle;
</P>
<P>(12) Then proceed north on Orleans Road, which becomes Seneca Castle Road, for 2.1 miles, to Warner Corners where the name of the road changes to Wheat Road;
</P>
<P>(13) Continue north from Warner Corners on Wheat Road approximately 1.9 miles to its intersection with State Route 88;
</P>
<P>(14) Continue north on State Route 88 approximately 1.4 miles, to its intersection with State Route 96 at Knickerbocker Corner;
</P>
<P>(15) Continue east on State Route 96 approximately 10.4 miles, to the intersection with Brewer Road on the Geneva North, N.Y. map;
</P>
<P>(16) Follow Brewer Road south approximately 1.8 miles to the intersection with U.S. Route 20/State Route 5;
</P>
<P>(17) At the intersection of Brewer Road and U.S. Route 20/State Route 5, continue south approximately 0.1 miles, following an imaginary line to the south bank of the Seneca River;
</P>
<P>(18) Follow the south bank of the Seneca River east approximately 0.1 miles to the mouth of the Kendig Creek;
</P>
<P>(19) Continue south following the Kendig Creek approximately 3.3 miles to the Creek's intersection with Yellow Tavern Road on the Geneva South, N.Y. map;
</P>
<P>(20) Follow Yellow Tavern Road west approximately 0.1 miles, to its intersection with Post Road;
</P>
<P>(21) Follow Post Road south approximately 1.4 miles to its junction with State Route 96A;
</P>
<P>(22) Then follow State Route 96A south 17.5 miles across the Dresden, N.Y., Ovid, N.Y., and Lodi, N.Y. maps to the village of Lodi;
</P>
<P>(23) In Lodi, continue south where State Route 96A changes to S. Main Street and then changes to an unnamed medium duty road (known locally as Center Road-Country Road 137);
</P>
<P>(24) Continue south on Center Road-Country Road 137 for approximately 4.9 miles to the Seneca/Schuyler County Line;
</P>
<P>(25) Then proceed west 0.5 miles on the county line to Logan Road;
</P>
<P>(26) Then proceed 8.6 miles south on Logan Road to State Route 227 (identified by the petitioner as State Route 79) on the Burdette, N.Y. map;
</P>
<P>(27) Then proceed approximately 800 feet east on Route 227 to Skyline Drive;
</P>
<P>(28) Then proceed south on Skyline Drive for 2.5 miles to an unnamed stream;
</P>
<P>(29) Follow the unnamed stream west approximately 0.6 miles to its intersection with State Route 414; and
</P>
<P>(30) Continue west on State Route 414 approximately 0.5 miles to the beginning point on the bridge over the New York State Barge Canal.
</P>
<CITA TYPE="N">[T.D. TTB-3, 68 FR 39835, July 3, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 9.129" NODE="27:1.0.1.1.7.3.45.109" TYPE="SECTION">
<HEAD>§ 9.129   Arroyo Grande Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Arroyo Grande Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of Arroyo Grande Valley viticultural area are four U.S.G.S. topographical maps of the 1:24,000 scale:
</P>
<P>(1) “Arroyo Grande, NE, California,” edition of 1965, photorevised 1978.
</P>
<P>(2) “Tar Spring Ridge, California,” edition of 1967.
</P>
<P>(3) “Nipomo, California,” edition of 1965.
</P>
<P>(4) “Oceano, California,” edition of 1965, photorevised 1979.
</P>
<P>(c) <I>Boundary:</I> The Arroyo Grande Valley viticultural area is located in San Luis Obispo County in the State of California. The boundary is as follows:
</P>
<P>(1) Beginning on the “Arroyo Grande” map at the point of intersection of State Route 227 and Corbit Canyon Road in Arroyo Grande Township, the boundary proceeds approximately 0.1 mile, in a northwesterly direction, along the roadway of State Route 227 to the point where State Route 227 intersects with Printz Road in Poorman Canyon in the Santa Manuela land grant;
</P>
<P>(2) Then northwesterly, approximately 1.5 miles, along Printz Road to its intersection with Noyes Road in the Santa Manuela land grant;
</P>
<P>(3) Then northerly, approximately 1.5 miles, along Noyes Road to its intersection with State Route 227 (at vertical control station “BM 452”) in the Santa Manuela land grant;
</P>
<P>(4) Then in a northeasterly direction in a straight line approximately 1.4 miles to the intersection of Corbit Canyon Road with an unnamed, unimproved road at Verde in the Santa Manuela land grant;
</P>
<P>(5) Then approximately 1.9 miles in a generally northeasterly direction, along the meanders of said unimproved road to its easternmost point, prior to the road turning back in a northwesterly direction to its eventual intersection with Biddle Ranch Road;
</P>
<P>(6) Then in a northwesterly direction approximately 1.13 miles in a straight line to the summit of an unnamed peak identified as having an elevation of 626 feet in the Santa Manuela land grant;
</P>
<P>(7) Then easterly, approximately 0.46 mile in a straight line, to the summit of an unnamed peak identified as having an elevation of 635 feet, in the Santa Manuela land grant;
</P>
<P>(8) Then east northeasterly, approximately 0.27 mile in a straight line, to the summit of an unnamed peak identified as having an elevation of 799 feet, in the Santa Manuela land grant;
</P>
<P>(9) Then easterly, approximately 0.78 mile in a straight line, to the summit of an unnamed peak identified as having an elevation of 952 feet, in the Santa Manuela land grant;
</P>
<P>(10) Then easterly, approximately 0.7 mile in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,188 feet, in the southwest corner of section 29, T. 31 S., R. 14 E.;
</P>
<P>(11) Then east southeasterly, approximately 0.9 mile in a straight line, to the point at which Upper Arroyo Grande Road crosses the spillway of Lopez Dam in section 32, T. 31 S., R. 14 E. (see “Tar Spring Ridge” map);
</P>
<P>(12) Then, in a generally easterly direction, approximately 3.64 miles along Upper Arroyo Grande Road (under construction) to the point where the broken red line for the proposed location of said road diverges in a northerly direction from the light duty roadbed of said road in the Arroyo Grande land grant (north of section 35, T. 31 S., R. 14 E.);
</P>
<P>(13) Then, in a generally northerly direction, approximately 2.5 miles, along the broken red line for the proposed location of Upper Arroyo Grande Road to its point of intersection with an unnamed unimproved road (this intersection being 1.2 miles northwest of Ranchita Ranch) in the Arroyo Grande land grant;
</P>
<P>(14) From the point of intersection of the proposed location of Upper Arroyo Grande Road and the unnamed unimproved road, the boundary proceeds in a straight line, east northeasterly, approximately 1.8 miles, to the summit of an unnamed peak identified as having an elevation of 1,182 feet, in the northwest corner of section 19, T. 31 S., R. 15 E.;
</P>
<P>(15) Then southeasterly, approximately 1.8 miles in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,022 feet, in the northeast corner of section 29, T. 31 S., R. 15 E.;
</P>
<P>(16) Then west southwesterly, approximately 0.84 mile in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,310 feet, in the northeast corner of section 30, T. 31 S., R. 15 E.;
</P>
<P>(17) Then south southeasterly, approximately 1.46 miles in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,261 feet, in section 32, T. 31 S., R. 15 E.;
</P>
<P>(18) Then southeasterly, approximately 0.7 mile in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,436 feet, in the northwest corner of section 4, T. 32 S., R. 15 E.;
</P>
<P>(19) Then southwesterly, approximately 1.07 miles in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,308 feet, in the Huasna land grant;
</P>
<P>(20) Then west northwesterly, approximately 1.50 miles in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,070 feet, along the east border of section 1, T. 32 S., R. 14 E.;
</P>
<P>(21) Then south southeasterly, approximately 1.38 miles in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,251 feet, in the Hausna land grant;
</P>
<P>(22) Then southwesterly, approximately 0.95 mile in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,458 feet, in the Santa Manuela land grant;
</P>
<P>(23) Then southeasterly, approximately 0.8 mile in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,377 feet, in the Huasna land grant;
</P>
<P>(24) Then southwesterly, approximately 1.4 miles in a straight line, to the summit of an unnamed peak identified as having an elevation of 1,593 feet, in the Santa Manuela land grant (See “Nipomo” map);
</P>
<P>(25) Then southwesterly, approximately 1.1 miles in a straight line, to the jeep trail immediately north of the summit of an unnamed peak identified as having an elevation of 1,549 feet, just north of section 35, T. 32 S., R. 14 E.;
</P>
<P>(26) Then north northwesterly, approximately 2.73 miles along the jeep trail on Newsom Ridge to the point of intersection of said jeep trail and an unnamed unimproved road (immediately north of section 28, T. 32 S., R. 14 E.);
</P>
<P>(27) Then southerly, approximately 1.63 miles along said unimproved road to its intersection with Upper Los Berros No. 2 Road in section 33, T. 32 S., R. 14 E.;
</P>
<P>(28) Then southwesterly, approximately 3.27 miles along the stream in Los Berros Canyon (of which approximately 2.0 miles are along Upper Los Berros No. 2 Road) to the point at which U.S. Highway 101 crosses said stream in section 35, T. 12 N., R. 35 W. (See “Oceano” map);
</P>
<P>(29) Then across U.S. Highway 101 and continuing in a southwesterly direction approximately 0.1 mile to Los Berros Arroyo Grande Road;
</P>
<P>(30) Then following Los Berros Arroyo Grande Road in generally a northwesterly direction approximately 4 miles until it intersects with Valley Road;
</P>
<P>(31) Then following Valley Road in generally a northerly direction approximately 1.2 miles until it intersects with U.S. Highway 101;
</P>
<P>(32) Then in a northwesterly direction along U.S. Highway 101 approximately .35 mile until it intersects with State Highway 227;
</P>
<P>(33) Then in a northeasterly and then a northerly direction along State Highway 227 approximately 1.4 miles to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-291, 55 FR 287, Jan. 4, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 9.130" NODE="27:1.0.1.1.7.3.45.110" TYPE="SECTION">
<HEAD>§ 9.130   San Ysidro District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Ysidro District.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the San Ysidro District viticultural area are four U.S.G.S. Quadrangle (7.5 minute series) maps. They are titled:
</P>
<P>(1) Gilroy, Calif., 1955 (photorevised 1981);
</P>
<P>(2) Chittenden, Calif., 1955 (photorevised 1980);
</P>
<P>(3) San Felipe, Calif., 1955 (photorevised 1971);
</P>
<P>(4) Gilroy Hot Springs, Calif., 1955 (photorevised 1971, photoinspected 1978.)
</P>
<P>(c) <I>Boundary.</I> The San Ysidro District viticultural area is located in Santa Clara County, California, within the Santa Clara Valley viticultural area. The boundary is as follows:
</P>
<P>(1) The beginning point is the intersection of California State Highway 152 and Ferguson Road with an un-named wash, or intermittent stream, on the Gilroy, Calif., U.S.G.S. map;
</P>
<P>(2) From the beginning point, the boundary follows the wash northeast as it runs co-incident with the old Grant boundary for approximately 3,800 feet;
</P>
<P>(3) The boundary then follows the wash when it diverges from the old Grant boundary and continues approximately 2,300 feet in a northeasterly direction, crosses and recrosses Crews Road, then follows the wash southeast until the wash turns northeast in section 35, T.10S., R.4E., on the Gilroy Hot Springs, Calif., map;
</P>
<P>(4) The boundary then diverges from the wash, continuing in a straight line in a southeasterly direction, across an unimproved road, until it intersects with the 600 foot contour line.
</P>
<P>(5) The boundary then proceeds in a straight line at about the 600 foot elevation in a southeasterly direction until it meets the minor northerly drainage of the San Ysidro Creek;
</P>
<P>(6) The boundary then follows the minor northerly drainage of San Ysidro Creek southeast for approximately 2,000 feet to the seasonal pond adjacent to Canada Road;
</P>
<P>(7) From the seasonal pond, the boundary follows the southerly drainage of San Ysidro Creek for about 1,300 feet until it reaches the southwest corner of section 36, T.10S., R.4E.;
</P>
<P>(8) The boundary then continues in a straight line in a southerly direction across Canada Road for approximately 900 feet until it intersects with the 600 foot contour line;
</P>
<P>(9) The boundary follows the 600 foot contour line for approximately 6,000 feet in a generally southeasterly direction, diverges from the contour line and continues southeast another 1,200 feet until it meets an unimproved road near the north end of a seasonal pond on the San Felipe, Calif., U.S.G.S. map;
</P>
<P>(10) The boundary follows the unimproved road to Bench Mark 160 at Highway 152.
</P>
<P>(11) The boundary then follows Highway 152 in a northwesterly direction across the northeast corner of the Chittenden, Calif., U.S.G.S. map, and back to the beginning point at the junction of Ferguson Road and Highway 152.
</P>
<CITA TYPE="N">[T.D. ATF-305, 55 FR 47749, Nov. 15, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 9.131" NODE="27:1.0.1.1.7.3.45.111" TYPE="SECTION">
<HEAD>§ 9.131   Mt. Harlan.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Mt. Harlan.”
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the “Mt. Harlan” viticultural area are two U.S.G.S. Quadrangle (7.5 Minute Series) maps. They are titled:
</P>
<P>(1) Mt. Harlan, California (Photorevised (1984)).
</P>
<P>(2) Paicines, California (Photorevised (1984)).
</P>
<P>(c) <I>Boundaries.</I> (1) The point of beginning is the unnamed 3,063′ peak on the county line between San Benito and Monterey Counties in Township 14 S., Range 5 E., Section 34 of the “Mt. Harlan,” California Quadrangle map.
</P>
<P>(2) From the point of beginning on the Mt. Harlan Quadrangle map proceed in a generally northwesterly direction along the county line through Sections 34 and 33, briefly into Section 28 and back through Section 33, and then through Sections 32, 29, and 30 all in Township 14 S., Range 5 E., to the point at which the county line intersects the line between Sections 30 and 19 of said Township and Range.
</P>
<P>(3) Thence proceed in a straight line northeast approximately 750 feet to the commencement of the westernmost stream leading into Pescadero Creek. The stream commences in the southwest corner of Section 19 in Township 14 S., Range 5 E.
</P>
<P>(4) Thence following the stream in a northeasterly direction to its intersection with the 1,800-foot contour line near the center of Section 19 in Township 14 S., Range 5 E.
</P>
<P>(5) Thence following the 1,800′ contour line in a southeasterly and then northeasterly direction through Sections 19, 20, 17, 16, 15, 14, then through the area north of Section 14, then southerly through Section 13 on the Mt. Harlan Quadrangle map and continuing on the “Paicines,” California Quadrangle map to the point at which the 1800-foot contour line intersects the line between Sections 13 and 24 of Township 14 S., Range 5 E.
</P>
<P>(6) Thence along the 1,800′ contour line through Section 24, back up through Section 13, and then in a southerly direction through Sections 18, 19, and 30 (all on the Paicines Quadrangle map), then westerly through Section 25 on the Paicines Quadrangle map and continuing on the Mt. Harlan Quadrangle map, and then through Section 26 to the point of intersection of said 1,800′ contour and Thompson Creek near the center of Section 26 in Township 14 S., Range 5 E., on the Mt. Harlan Quadrangle map.
</P>
<P>(7) Thence southwesterly along Thompson Creek to its commencement in the northwest corner of Section 34, Township 14 S., Range 5 E.
</P>
<P>(8) Thence in a straight line to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-304, 55 FR 47747, Nov. 15, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 9.132" NODE="27:1.0.1.1.7.3.45.112" TYPE="SECTION">
<HEAD>§ 9.132   Rogue Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Rouge Valley.”
</P>
<P>(b) <I>Approved map.</I> The appropriate map for determining the boundaries of the Rogue Valley viticultural area is one U.S.G.S. map titled “Medford,” scale 1:250,000 (1955, revised 1976).
</P>
<P>(c) <I>Boundaries.</I> The Rogue Valley viticultural area is located entirely within Jackson and Josephine Counties in southwestern Oregon. The boundaries are as follows:
</P>
<P>(1) Beginning at the point of intersection of Interstate 5 and the Josephine County/Douglas County line approximately 20 miles north of Grants Pass, the boundary proceeds southerly and southwesterly along U.S. Interstate 5 to and including the town of Wolf Creek;
</P>
<P>(2) Then westerly and southerly out of the town of Wolf Creek along the Southern Pacific Railway Line to and including the town of Hugo;
</P>
<P>(3) Then southwesterly along the secondary, hard surface road known as Hugo Road to the point where the Hugo Road crosses Jumpoff Joe Creek;
</P>
<P>(4) Then westerly and down stream along Jumpoff Joe Creek to the intersection of Jumpoff Joe Creek and the Rogue River;
</P>
<P>(5) Then northwesterly and down stream along the Rogue River to the first point where the Wild and Scenic Rogue River designated area touches the easterly boundary of the Siskiyou National Forest just south of Galice;
</P>
<P>(6) Then in a generally southwesterly direction (with many diversions) along the easterly border of the Siskiyou National Forest to the 42 degree 0 minute latitude line;
</P>
<P>(7) Then easterly along the 42 degree 0 minute latitude line to the point where the Siskiyou National Forest again crosses into Oregon approximately 1 mile east of U.S. Highway 199;
</P>
<P>(8) Then in a generally northeasterly direction and then a southeasterly direction (with many diversions) along the northern boundary of the Siskiyou National Forest to the point where the Siskiyou National Forest touches the Rogue River National Forest at Big Sugarloaf Peak;
</P>
<P>(9) Then in a generally easterly direction (with many diversions) along the northern border of the Rogue River National Forest to the point where the Rogue River National Forest intersects with Slide Creek approximately 6 miles southeast of Ashland;
</P>
<P>(10) Then southeasterly and northeasterly along Slide Creek to the point where it intersects State Highway 273;
</P>
<P>(11) Then northwesterly along State Highway 273 to the point where it intersects State Highway 66;
</P>
<P>(12) Then in an easterly direction approximately 5 miles along State Highway 66 to the east line of Township 39 South, Range 2 East (T39S, R2E);
</P>
<P>(13) Then following the east line of T39S, R2E, in a northerly direction to the northeast corner of T39S, R2E;
</P>
<P>(14) Then westerly approximately 5 miles along the north line of T39S, R2E, to the 2,600 foot contour line;
</P>
<P>(15) Then in a northerly direction following the 2,600 foot contour line across Walker Creek and then in a southwesterly direction to the point where the 2,600 foot contour line touches the east line of T38S, R1E;
</P>
<P>(16) Then northerly along the east line of T38S, R1E, to the northeast corner of T38S, R1E;
</P>
<P>(17) Then westerly along the north line of T38S, R1E, to the northwest corner of T38S, R1E;
</P>
<P>(18) Then northerly along the west line of T37S, R1E, to the northwest corner of T37S, R1E.
</P>
<P>(19) Then easterly along the north lines of T37S, R1E, and T37S, R2E, to the southeast corner of T36S, R2E;
</P>
<P>(20) Then northerly along the east line of T36S, R2E, to the northeast corner of T36S, R2E;
</P>
<P>(21) Then westerly along the north line of T36S, R2E, to the northwest corner of T36S, R2E;
</P>
<P>(22) Then northerly along the east line of T35S, R1E, to the northeast corner of T35S, R1E;
</P>
<P>(23) Then westerly along the north line of T35S, R1E, to the northwest corner of T35S, R1E;
</P>
<P>(24) Then northerly along the east line of T34S, R1W, to the northeast corner of T34S, R1W;
</P>
<P>(25) Then westerly along the north lines of T34S, R1E; T34S, R2W; T34S, R3W; T34S, R4W; and T34S, R5W, to the northwest corner of T34S, R5W;
</P>
<P>(26) Then northerly along the west line of T33S, R5W, to the Josephine County/Douglas County line;
</P>
<P>(27) Then westerly along the Josephine County/Douglas County line to U.S. Interstate 5, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-310, 56 FR 2435, Jan. 23, 1991, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.133" NODE="27:1.0.1.1.7.3.45.113" TYPE="SECTION">
<HEAD>§ 9.133   Rutherford.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Rutherford.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Rutherford viticultural area are two U.S.G.S. topographical maps of the 1:24,000 scale:
</P>
<P>(1) “Yountville Quadrangle, California,” edition of 1951, photorevised 1968.
</P>
<P>(2) “Rutherford Quadrangle, California,” edition of 1951, photorevised 1968, photoinspected 1973.
</P>
<P>(c) <I>Boundary.</I> The Rutherford viticultural area is located in Napa County in the State of California. The boundary is as follows:
</P>
<P>(1) Beginning on the Yountville quadrangle map at the point where the county road known as the Silverado Trail intersects Skellenger Lane, just outside the southwest corner of Section 12, Township 7 North (T.7 N.), Range 5 West (R.5 W.), the boundary proceeds in a southwesterly direction in a straight line approximately 1.7 miles along Skellenger Lane, past its intersection with Conn Creek Road, to the point of intersection with the main channel of the Napa River (on the “Rutherford” map);
</P>
<P>(2) Then south along the center of the river bed approximately .4 miles to the point where an unnamed stream drains into the Napa River from the west;
</P>
<P>(3) Then along the unnamed stream in a generally northwesterly direction to its intersection with the west track of the Southern Pacific Railroad Track;
</P>
<P>(4) Then southeasterly along said railroad track 1,650 feet to a point which is approximately 435 feet north of the centerline of the entry road to Robert Mondavi Winery (shown on the map) to the southeast corner of Assessor's Parcel Number 27-250-14;
</P>
<P>(5) Thence southwesterly S 55°06′28″ W for 3,869 feet along the common boundary between Assessor's Parcel Numbers 27-250-14 and 27-280-50/51 to the southwest corner of Assessor's Parcel Number 27-250-14;
</P>
<P>(6) Thence northwesterly N 40°31′42″ W for 750 feet along the westerly property line of Assessor's Parcel Number 27-250-14;
</P>
<P>(7) Thence southwesterly S 51°00′ W in a straight line to the 500-foot contour line of the Mayacamas Range in the northwestern corner of Section 28, T.7 N., R.5 W.;
</P>
<P>(8) Then proceeding along the 500-foot contour line in a generally northwesterly direction in T.7 N., R.5 W. through Sections 21, 20, 17, 18, 17, and 18 to the northwest portion of Section 7 where the 500-foot contour line intersects a southwestward straight line extension of the light-duty road known as Inglewood Avenue;
</P>
<P>(9) Thence in a straight line in a northeasterly direction along this extension of Inglewood Avenue to its intersection with the north fork of Bale Slough;
</P>
<P>(10) Thence in a southeasterly direction along the north fork of Bale Slough approximately 2,750 feet to its intersection with the end of the county road shown on the map as Zinfandel Avenue, known locally as Zinfandel Lane, near the 201-foot elevation marker;
</P>
<P>(11) Then in a northeasterly direction along Zinfandel Avenue (Zinfandel Lane) approximately 2.12 miles to the intersection of that road and Silverado Trail, then continuing northeasterly in a straight line to the 380-foot contour line;
</P>
<P>(12) Then following the 380-foot contour line southeasterly through Section 33 to the western border of Section 34, T.8 N., R.5 W., then following that section line north to the 500-foot contour line;
</P>
<P>(13) Then following the 500-foot contour line southeasterly to the western border of Section 2, T.7 N., R.5 W., then south along that section line past Conn Creek to its intersection with the 500-foot contour line northwest of the unnamed 832-foot peak;
</P>
<P>(14) Then continuing in a westerly direction and then a generally southeasterly direction along the 500-foot contour line through Sections 3, 2, 11 and 12 to the intersection of that contour line with the southern border of Section 12 (on Yountville map);
</P>
<P>(15) Then proceeding in a straight line in a westerly direction to the intersection of the Silverado Trail with Skellenger Lane, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-342, 58 FR 35876, July 2, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 9.134" NODE="27:1.0.1.1.7.3.45.114" TYPE="SECTION">
<HEAD>§ 9.134   Oakville.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Oakville.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Oakville viticultural area are two U.S.G.S. 7.5 minute series topographical maps of the 1:24,000 scale:
</P>
<P>(1) “Yountville Quadrangle, California,” edition of 1951, photorevised 1968.
</P>
<P>(2) “Rutherford Quadrangle, California,” edition of 1951, photorevised 1968, photoinspected 1973.
</P>
<P>(c) <I>Boundary.</I> The Oakville viticultural area is located in Napa County in the State of California. The boundary is as follows:
</P>
<P>(1) Beginning on the Yountville quadrangle map at the point where the county road known as the Silverado Trail intersects Skellenger Lane, just outside the southwest corner of Section 12, Township 7 North (T.7 N.), Range 5 West (R.5 W.), the boundary proceeds in a southwesterly direction in a straight line approximately 1.7 miles along Skellenger Lane, past its intersection with Conn Creek Road, to the point of intersection with the main channel of the Napa River (on the Rutherford quadrangle map);
</P>
<P>(2) Then south along the center of the river bed approximately .4 miles to the point where an unnamed stream drains into the Napa River from the west;
</P>
<P>(3) Then along the unnamed stream in a generally northwesterly direction to its intersection with the west track of the Southern Pacific Railroad Track;
</P>
<P>(4) Then southeasterly along said railroad track 1,650 feet to a point which is approximately 435 feet north of the centerline of the entry road to Robert Mondavi Winery (shown on the map) to the southeast corner of Assessor's Parcel Number 27-250-14;
</P>
<P>(5) Thence southwesterly S 55°06′28″ W for 3,869 feet along the common boundary between Assessor's Parcel Numbers 27-250-14 and 27-280-50/51 to the southwest corner of Assessor's Parcel Number 27-250-14;
</P>
<P>(6) Thence northwesterly N 40°31′42″ W for 750 feet along the westerly property line of Assessor's Parcel Number 27-250-14;
</P>
<P>(7) Thence southwesterly S 51°00′ W in a straight line to the 500-foot contour line of the Mayacamas Range in the northwestern corner of Section 28, T.7 N., R.5 W.;
</P>
<P>(8) Then proceeding along the 500-foot contour line in a generally southeasterly direction through Sections 28, 29, 20, 29, 28, 29, 28, 33 and 34 of T.7 N., R.5 W. and Section 3 of T.6 N., R.5 W. to its intersection with the unnamed stream known locally as Hopper Creek near the middle of Section 3;
</P>
<P>(9) Then along the unnamed stream (Hopper Creek) southeasterly and, at the fork in Section 3, northeasterly along the stream to the point where the stream intersects with the unnamed dirt road in the northwest corner of Section 2, T.6 N., R.5 W;
</P>
<P>(10) Then proceed in a straight line to the light duty road to the immediate northeast in Section 2, then along the light duty road in a northeasterly direction to the point at which the road turns 90 degrees to the left;
</P>
<P>(11) Then proceed along the light duty road 625 feet, then proceed northeasterly (N 40°43′ E) in a straight line 1,350 feet, along the northern property line of Assessor's Parcel Number 27-380-08 (not shown on the map), to State Highway 29, then continuing in a straight line approximately .1 mile to the peak of the 320 + foot hill along the western edge of the Yountville Hills;
</P>
<P>(12) Then proceed due east to the second 300-foot contour line, then follow that contour line around the Yountville Hills to the north to the point at which the 300-foot contour line exits the Rutherford quadrangle map for the second time;
</P>
<P>(13) Then proceed (on the Yountville quadrangle map) in a straight line in a northeasterly direction approximately N 34°30′ E approximately 1,000 feet to the 90 degree bend in the unimproved dirt road shown on the map, then along that road, which coincides with a fence line (not shown on the map) to the intersection of Conn Creek and Rector Creek;
</P>
<P>(14) Then along Rector Creek to the northeast past the Silverado Trail to the Rector Reservoir spillway entrance, then proceed due north along the spillway of Rector Reservoir, then east and northeast along the shoreline of Rector Reservoir to the point where the first unnamed stream enters the Reservoir;
</P>
<P>(15) Thence follow the unnamed stream north and northeast to where it intersects an unimproved dirt road at the 1006-foot benchmark;
</P>
<P>(16) Then proceed in a straight line approximately .6 mile due west to the intersection of an unnamed stream, then follow said stream downslope to the 500-foot contour line, and along that contour line northwesterly through sections 18 and 13 to the intersection of the contour line with the southern border of Section 12 in T.7 N, R.5 W.;
</P>
<P>(17) Then proceed in a straight line in a westerly direction to the intersection of Skellenger Lane with the Silverado Trail, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-343, 58 FR 35884, July 2, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 9.135" NODE="27:1.0.1.1.7.3.45.115" TYPE="SECTION">
<HEAD>§ 9.135   Virginia's Eastern Shore.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Virginia's Eastern Shore.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the “Virginia's Eastern Shore” viticultural area are 3 U.S.G.S. Quadrangle (1:250,000 Series) maps. They are titled:
</P>
<P>(1) Eastville, VA.; N.C.; MD., 1946 (revised 1969).
</P>
<P>(2) Salisbury, MD.; DEL.; N.J.; VA., 1946 (revised 1969).
</P>
<P>(3) Richmond VA.; MD., 1973.
</P>
<P>(c) <I>Boundary.</I> The Virginia's Eastern Shore viticultural area is located in Accomack and Northampton counties, Virginia. The boundary is as follows:
</P>
<P>(1) The beginning point is the intersection of the Virginia/Maryland border and Chincoteague Bay, near Greenbackville on the Salisbury, MD., U.S.G.S. map;
</P>
<P>(2) From the beginning point, the boundary follows the coastline in a southwesterly direction. Where there are marshes indicated on the U.S.G.S. maps, the boundary is the inland side of these marshes;
</P>
<P>(3) When the boundary reaches the southernmost point of the peninsula, on the Eastville, VA., U.S.G.S. map, the boundary turns and proceeds in a northwesterly direction, again following the coastline around Cherrystone Inlet on the Richmond, VA., U.S.G.S. map;
</P>
<P>(4) The boundary continues to follow the coastline and the inland side of any marshes indicated on the U.S.G.S. maps in a northeasterly direction, until it reaches the Virginia/Maryland border on the Eastville, VA., U.S.G.S. map;
</P>
<P>(5) The boundary then follows the Virginia/Maryland border back to the beginning point at Chincoteague Bay on the Salisbury, MD., U.S.G.S. map.
</P>
<CITA TYPE="N">[T.D. ATF-309, 56 FR 24, Jan. 2, 1991, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.136" NODE="27:1.0.1.1.7.3.45.116" TYPE="SECTION">
<HEAD>§ 9.136   Texas Hill Country.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Texas Hill Country.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the “Texas Hill Country” viticultural area are 7 U.S.G.S. (scale 1:250,000) maps. They are titled:
</P>
<P>(1) Brownwood, Texas, 1954 (revised 1974);
</P>
<P>(2) Sonora, Texas, 1954 (revised 1978);
</P>
<P>(3) Llano, Texas, 1954 (revised 1975);
</P>
<P>(4) Austin, Texas, 1954 (revised 1974);
</P>
<P>(5) Del Rio, Texas, 1958 (revised 1969);
</P>
<P>(6) San Antonio, Texas, 1954 (revised 1980);
</P>
<P>(7) Seguin, Texas, 1953 (revised 1975).
</P>
<P>(c) <I>Boundary.</I> The Texas Hill Country viticultural area is located in portions of McCulloch, San Saba, Lampasas, Burnet, Travis, Williamson, Llano, Mason, Menard, Kimble, Gillespie, Blanco, Hays, Kendall, Kerr, Edwards, Real, Bandera, Bexar, Comal, Guadalupe, Medina, and Uvalde counties, in the State of Texas. The boundary is as follows:
</P>
<P>(1) The beginning point is the intersection of Interstate Highway 35 and State highway 29 to the north of the city of Austin, on the Austin Texas, U.S.G.S. map;
</P>
<P>(2) From the beginning point, the boundary follows State highway 29 in a west-northwesterly direction to the intersection with U.S. Highway 183;
</P>
<P>(3) The boundary then follows U.S. Highway 183 in a northwesterly direction to the top of the Austin map and across the northeast corner of the Llano, Texas, U.S.G.S. map, to the intersection with State Highway 190 in Lometa, on the Brownwood, Texas, U.S.G.S. map;
</P>
<P>(4) The boundary then follows State Highway 190 in a southwesterly direction through San Saba and Brady on the Brownwood map to the intersection of U.S. Highway 83 at Menard, on the Llano, Texas, U.S.G.S. map;
</P>
<P>(5) The boundary follows U.S. highway 83 in a southerly direction to the town of Junction, where it meets U.S. Highway 377 (Llano map);
</P>
<P>(6) The boundary then follows U.S. Highway 377 southwest to the town of Rocksprings, on the Sonora, Texas, U.S.G.S. map, where it meets State Highway 55;
</P>
<P>(7) The boundary then follows State Highway 55 in a southeasterly direction across the southeast portion of the Del Rio, Texas, U.S.G.S. map, and continues to the town of Uvalde, on the San Antonio, Texas, U.S.G.S. map, where it meets U.S. Highway 83;
</P>
<P>(8) The boundary then follows U.S. Highway 83 south for approximately 2 miles, until it meets U.S. Highway 90;
</P>
<P>(9) The boundary then follows U.S. Highway 90 east across the San Antonio map to its intersection with Loop 410 in the city of San Antonio;
</P>
<P>(10) The boundary then follows Loop 410 to the west of San Antonio, until it meets Interstate Highway 35;
</P>
<P>(11) The boundary then follows Interstate Highway 35 in a northeasterly direction across the San Antonio map and then across the northwest corner of the Seguin, Texas, U.S.G.S. map until it reaches the beginning point at the intersection with State highway 29 on the Austin, Texas, U.S.G.S. map.
</P>
<CITA TYPE="N">[T.D. ATF-318, 56 FR 60923, Nov. 29, 1991, as amended by T.D. ATF-344, 58 FR 40354, July 28, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 9.137" NODE="27:1.0.1.1.7.3.45.117" TYPE="SECTION">
<HEAD>§ 9.137   Grand Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Grand Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Grand Valley viticultural area are six U.S.G.S. (7.5 minute series) topographical maps of the 1:24,000 scale:
</P>
<P>(1) “Palisade Quadrangle, Colorado,” edition of 1962.
</P>
<P>(2) “Clifton Quadrangle, Colorado,” edition of 1962, photorevised 1973.
</P>
<P>(3) “Grand Junction Quadrangle, Colorado,” edition of 1962, photorevised 1973.
</P>
<P>(4) “Colorado National Monument Quadrangle, Colorado,” edition of 1962, photorevised 1973.
</P>
<P>(5) “Fruita Quadrangle, Colorado,” edition of 1962, photorevised 1973.
</P>
<P>(6) “Corcoran Point Quadrangle, Colorado,” edition of 1962.
</P>
<P>(c) <I>Boundary.</I> The Grand Valley viticultural area is located entirely within Mesa County, Colorado, in the western part of the State. The boundary is as follows:
</P>
<P>(1) The beginning point is located on the Palisade quadrangle map at a point northeast of the city of Palisade where Interstate 70 crosses the Colorado River and intersects with U.S. Highways 6 and 24, adjacent to and immediately west of the Orchard Mesa Canal Aqueduct;
</P>
<P>(2) From the beginning point, the boundary proceeds due east to the adjacent Orchard Mesa Canal Aqueduct and then in a southerly direction along the Orchard Mesa Canal Aqueduct to an unnamed creek in the western part of section 11, Township 11 South, Range 98 West (T. 11 S., R. 98 W.);
</P>
<P>(3) Thence in a southeasterly direction along the unnamed creek to its intersection with the 5000-foot contour line in the northeast corner of section 1, T. 1 S., R. 2 E.;
</P>
<P>(4) Thence in a northwesterly and then a southerly direction along the 5000-foot contour line to its intersection with Watson Creek in section 12, T. 1 S., R. 2 E.;
</P>
<P>(5) Thence in a southeasterly direction along Watson Creek to its intersection with the electrical power lines in the southern part of section 12, T. 1 S., R. 2 E.;
</P>
<P>(6) Thence in a southwesterly direction along the electrical power lines along the northern slope of Horse Mountain to that point where the power lines intersect with the Jeep Trail in the central part of section 15, T. 1 S., R. 2 E.;
</P>
<P>(7) Thence in a northwesterly direction along the Jeep Trail to its intersection with Orchard Mesa Canal No. 2 on the western border of section 10, T. 1 S., R. 2 E.;
</P>
<P>(8) Thence in a generally southwesterly direction along Orchard Mesa Canal No. 2 through the Clifton quadrangle map to the Canal's junction with the Gunnison River on the Grand Junction quadrangle map (western part of section 31, T. 1 S., R. 1 E.);
</P>
<P>(9) Thence in a generally northwesterly direction along the Gunnison River to its junction with the Colorado River in section 22, T. 1 S., R. 1 W.;
</P>
<P>(10) Thence continuing in a northwesterly direction along the Colorado River to the bridge where County Road 340 crosses the river (Section 15, T. 1 S., R. 1 W.);
</P>
<P>(11) Thence in a southwesterly direction along County Road 340 approximately .2 mile to its intersection with a secondary highway, hard surface road, known locally as Monument Road;
</P>
<P>(12) Thence in a southwesterly direction along Monument Road to the boundary of the Colorado National Monument, located on the Colorado National Monument quadrangle map (section 30, T. 1 S., R. 1 W.);
</P>
<P>(13) Thence in a generally northwesterly direction along the boundary of the Colorado National Monument to its intersection with County Road 340 (known locally as Broadway) on the northern border of section 32, T. 1 N., R. 2 W.;
</P>
<P>(14) Thence in a generally northerly direction along County Road 340 to the city of Fruita where County Road 340 (known locally as Cherry Street) intersects K Road on the Fruita quadrangle map;
</P>
<P>(15) Thence due east on K Road to the northeast corner of section 17, T. 1 N., R. 1 W., on the Corcoran Point quadrangle map, then extending in the same direction in a straight line along the northern boundary of section 16, T. 1 N., R. 1 W. to the intersection with the Government Highline Canal;
</P>
<P>(16) Thence in a southeasterly direction along the Government Highline Canal to its intersection with U.S. Interstate 70 on the Grand Junction quadrangle map;
</P>
<P>(17) Thence in an easterly direction along U.S. Interstate 70 through the Clifton quadrangle map to where Interstate 70 crosses the Colorado River and intersects with U.S. Highways 6 and 24 on the Palisade quadrangle map, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-317, 56 FR 59216, Nov. 25, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 9.138" NODE="27:1.0.1.1.7.3.45.118" TYPE="SECTION">
<HEAD>§ 9.138   Benmore Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Benmore Valley.”
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the Benmore Valley viticultural area are two U.S.G.S. maps. They are entitled:
</P>
<P>(1) “Hopland, CA,” 7.5 Minute Series, edition of 1960, (photoinspected 1975); and
</P>
<P>(2) “Purdys Gardens, CA,” 7.5 Minute Series, edition of 1958, (photoinspected 1975).
</P>
<P>(c) <I>Boundaries.</I> The Benmore Valley viticultural area is located in the southwest corner of Lake County, California. It lies entirely within the North Coast viticultural area. The beginning point is an unnamed peak of 2788 feet elevation found in the southeast portion of section 35, T. 14 N., R. 11 W., on the “Purdys Gardens, CA” U.S.G.S. map:
</P>
<P>(1) Then southwest in a straight line to the point where an unnamed unimproved road crosses the south section line of section 35, T. 14 N., R. 11 W., west of Benmore Creek;
</P>
<P>(2) Then following the unnamed unimproved road south to the intersection with the boundary between Lake and Mendocino Counties;
</P>
<P>(3) Then following the county boundary between Lake and Mendocino Counties east and south to the intersection with the 2800 foot contour line;
</P>
<P>(4) Then following the 2800 foot contour line in a northerly and then southernly direction to its intersection with the boundary between Lake and Mendocino Counties on the southern edge of section 2, T. 13 N., R. 11 W;
</P>
<P>(5) Then following the boundary between Lake and Mendocino Counties east to the point of intersection of sections 1, 2, 11, and 12, T. 13 N., R. 11 W;
</P>
<P>(6) Then southeasterly in a straight line to an unnamed peak of 2769 feet elevation in the center of section 12, T. 13 N., R. 11 W;
</P>
<P>(7) Then south in a straight line to the point where the boundary between Lake and Mendocino Counties changes from an east-west direction to a north-south direction;
</P>
<P>(8) Then in a straight line in an easterly direction to an unnamed peak of 2883 feet elevation in the southwestern portion of section 5, T. 13 N., R. 10 W;
</P>
<P>(9) Then northeast in a straight line to the easternmost peak of an unnamed ridge with four peaks in the center of section 5, T. 13 N., R. 10 W;
</P>
<P>(10) Then northerly in a straight line to an unnamed peak of 2647 feet elevation near the north section line of section 5, T. 13 N., R. 10 W;
</P>
<P>(11) Then westerly in a straight line to the point of intersection between section 5, T. 13 N., R 10 W., section 31, T. 14 N., R. 10 W., and section 1, T. 13 N., R. 11 W;
</P>
<P>(12) Then northwest in a straight line to an unnamed peak of 2904 feet elevation in the north portion of section 1, T. 13 N., R. 11 W;
</P>
<P>(13) Then northwest in a straight line to an unnamed peak of 2788 feet elevation, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-315, 56 FR 52191, Oct. 18, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 9.139" NODE="27:1.0.1.1.7.3.45.119" TYPE="SECTION">
<HEAD>§ 9.139   Santa Lucia Highlands.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Santa Lucia Highlands.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the “Santa Lucia Highlands” viticultural area are 7 U.S.G.S. Quadrangle 7.5 minute series topographic maps. They are titled:
</P>
<P>(1) Chualar, Calif., 1947 (photorevised 1984)
</P>
<P>(2) Gonzales, Calif., 1955 (photorevised 1984)
</P>
<P>(3) Rana Creek, Calif., 1956 (photoinspected 1973)
</P>
<P>(4) Palo Escrito Peak, Calif., 1956 (photorevised 1984)
</P>
<P>(5) Soledad, Calif., 1955 (photorevised 1984)
</P>
<P>(6) Sycamore Flat, Calif., 1956 (photorevised 1984)
</P>
<P>(7) Paraiso Springs, Calif., 1956 (photorevised 1984)
</P>
<P>(c) <I>Boundaries.</I> The Santa Lucia Highlands viticultural area is located in Monterey County, California. The beginning point is found on the “Chualar, California” U.S.G.S. map, where Limekiln Creek crosses the 360 foot contour interval. This point also coincides with the western boundary of the Guadalupe Y Llanitos de los Correos Land Grant and the eastern boundary of section 28, T. 16S., R. 4E. The boundary is as follows:
</P>
<P>(1) From the beginning point, the boundary follows Limekiln Creek for approximately 1.2 miles northeast to the 120-foot elevation contour.
</P>
<P>(2) Then following the 120-foot elevation contour in a general southeasterly direction for approximately 0.9 mile to where it intersects with River Road.
</P>
<P>(3) Then following River Road in a southeasterly direction for 0.3 mile to its intersection with an unimproved road near the marked 130-foot elevation.
</P>
<P>(4) Then follow a straight line southeast to the terminus of the 110-foot elevation contour.
</P>
<P>(5) Then follow a straight line southeast 0.9 mile, crossing onto the Gonzales map, to the Salinas River.
</P>
<P>(6) Then follow the Salinas River in a south-southeast direction 0.7 mile, crossing onto the Palo Escrito map, to the intersection of the Salinas River and the 120-foot elevation contour.
</P>
<P>(7) Then follow the 120-foot contour south for 1 mile, then southeast to its intersection with River Road.
</P>
<P>(8) Then follow River Road east for 0.1 mile to its intersection with an unnamed, light-duty road.
</P>
<P>(9) Then follow the unnamed road southeast for 0.2 mile to its intersection with the 160-foot elevation contour.
</P>
<P>(10) Then follow the 160-foot elevation contour southeasterly for approximately 5.9 miles to its intersection with River Road.
</P>
<P>(11) Then follow River Road southeasterly for approximately 1 mile to the intersection of River, Fort Romie, and Foothill Roads.
</P>
<P>(12) Then following Foothill Road in a southeasterly direction for approximately 4 miles to the junction of Foothill Road and Paraiso Roads on the Soledad map.
</P>
<P>(13) Then follow Paraiso Road in a southerly direction, crossing onto the Paraiso Springs map, to its intersection with an unnamed, light-duty road north of Clark Road in Section 20, T18S/R6E.
</P>
<P>(14) Then follow the unnamed road east-southeast for 0.3 mile to its intersection with an intermittent stream.
</P>
<P>(15) Then follow the intermittent stream in a southwesterly direction for 0.2 mile to its intersection with the western boundary of Section 21, T18S/R6E.
</P>
<P>(16) Then follow a straight line south-southwest for 0.3 mile to the intersection of Clark Road and the southern boundary of Section 21, T18S/R6E.
</P>
<P>(17) Then follow Clark Road west-southwest for 0.2 mile to its intersection with an unnamed, light-duty road.
</P>
<P>(18) Then in a straight south-southeasterly line for approximately 1.9 miles to the line's intersection with the southeast corner of section 33, T18S, R6E (this line coincides with the unnamed light duty road for about 0.4 miles and then with the eastern boundaries of sections 29, 32 and 33, T18S, R6E, which mark this portion of the western boundary of the historical Arroyo Seco Land Grant).
</P>
<P>(19) Then straight west along the southern boundaries of sections 33, 32, and 31, T18S, R6E, to the southwest corner of section 31.
</P>
<P>(20) Then north along the western boundaries of sections 31 and 30, to the northwestern corner of section 30 T. 18S., R. 6E.
</P>
<P>(21) Then northwest in a straight diagonal line to the northwest corner of section 24, T. 18S., R. 5E on the Sycamore Flat, California U.S.G.S. map.
</P>
<P>(22) Then north along the western boundary of section 13, T. 18S., R. 5E., to the northwestern corner of section 13, T. 18S., R. 5E.
</P>
<P>(23) Then northwest in a diagonal line across sections 11 and 3, to the northwest corner of section 3, T. 18S., R. 5E on the Palo Escrito Peak, California U.S.G.S. map.
</P>
<P>(24) Then due west along the southern boundary of section 33, T. 17S., R. 5E., to the southwestern corner of section 33, T. 17S., R. 5E.
</P>
<P>(25) Then north along the western boundary of section 33 to the southeast corner of section 29, T. 17S., R. 5E.
</P>
<P>(26) Then northwest in a diagonal line through sections 29, 19, 13, and 11, to the northwest corner of section 11, T. 17S., R. 4E on the Rana Creek, California U.S.G.S. map.
</P>
<P>(27) Then north along the western boundary of section 2, T. 17S., R. 4E., to the northwestern corner of section 2, T. 17S., R. 4E.
</P>
<P>(28) Then west along the southern boundary of section 34, T. 16S., R. 4E., to the southwestern corner of section 34, T. 16S., R. 4E.
</P>
<P>(29) Then north along the eastern boundary of sections 33 and 28, T. 16S., R. 4E., for approximately 1 mile, to the point where the eastern boundary of section 28 T. 165., R. 4E., coincides with the western boundary of the Guadalupe Y Llanitos de los Correos Land Grant on the Chualar, California U.S.G.S. map.
</P>
<P>(30) Then northwest along the grant line for approximately 2,500 feet to the point of beginning on Limekiln Creek.
</P>
<CITA TYPE="N">[T.D. ATF-321, 57 FR 20764, May 15, 1992, as amended by T.D. TTB-49, 71 FR 34527, June 15, 2006; T.D. TTB-172, 86 FR 47379, Aug. 25, 2021]


</CITA>
</DIV8>


<DIV8 N="§ 9.140" NODE="27:1.0.1.1.7.3.45.120" TYPE="SECTION">
<HEAD>§ 9.140   Atlas Peak.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Atlas Peak.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps of determining the boundaries of the Atlas Peak viticultural area are two U.S.G.S. maps. They are entitled:
</P>
<P>(1) “Yountville, Calif.,” 7.5 minute series, edition of 1951, (photorevised 1968); and
</P>
<P>(2) “Capell Valley, Calif.,” 7.5 minute series, edition of 1951, (photorevised 1968).
</P>
<P>(c) <I>Boundaries.</I> The Atlas Peak viticultural area is located in Napa County, California. It lies entirely within the Napa Valley viticultural area. The beginning point is Haystack (peak) found in section 21, T. 7 N., R. 4 W. on the “Yountville” U.S.G.S. map;
</P>
<P>(1) From the beginning point, the boundary proceeds south in a straight line approximately 0.5 miles, to the highest point of an unnamed peak of 1443 feet elevation on the boundary of sections 21 and 28, T. 7 N., R. 4 W.;
</P>
<P>(2) Then southeast in a straight line approximately one mile to an unnamed pass with an elevation of 1485 feet, located on Soda Canyon Road;
</P>
<P>(3) Then easterly in a straight line approximately 0.5 miles to an unnamed peak of 2135 feet elevation;
</P>
<P>(4) Then in a generally southeasterly direction, as a series of five straight lines connecting the highest points of unnamed peaks with elevations of 1778, 2102, 1942, 1871 and 1840 feet, ending in the center of section 2, T. 6 N., R. 4 W.;
</P>
<P>(5) Then southeast in a straight line approximately 1.8 miles to the highest point of an unnamed peak of 1268 feet elevation in section 12, T. 6 N., R. 4 W. on the Capell Valley U.S.G.S. map;
</P>
<P>(6) Then east-southeast in a straight line approximately 1.1 miles to the point where an unnamed tributary stream enters Milliken Creek, immediately south of the Milliken Reservoir in section 7, T. 6 N., R. 3 W.;
</P>
<P>(7) Then following the unnamed stream east-northeast approximately 0.5 miles to its source;
</P>
<P>(8) Then northeast in a straight line approximately 0.5 miles, through the highest point of an unnamed peak of 1846 feet elevation, to the 1600 foot contour line in the eastern portion of section 8, T. 6 N., R. 3 W.;
</P>
<P>(9) Then following the 1600 foot contour line generally north and west for approximately 10 miles, to the point of intersection with the boundary line between sections 12 and 13, T. 7 N., R. 4 W. on the Yountville U.S.G.S. map;
</P>
<P>(10) Then following the section boundary line west approximately 1.1 miles to the intersection with an unnamed, unimproved road;
</P>
<P>(11) Then northwest in a straight line approximately 0.7 miles to the highest point of an unnamed peak of 2114 feet elevation, located in section 10, T. N., R. 4 W.;
</P>
<P>(12) Then northwest in a straight line approximately 0.7 miles to the highest point of an unnamed peak of 2023 feet elevation, located in section 10, T. N., R. 4 W.;
</P>
<P>(13) Then southwest in a straight line approximately 2.2 miles to Haystack (peak), the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-320, 57 FR 2681, Jan. 23, 1992]


</CITA>
</DIV8>


<DIV8 N="§ 9.141" NODE="27:1.0.1.1.7.3.45.121" TYPE="SECTION">
<HEAD>§ 9.141   Escondido Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Escondido Valley.”
</P>
<P>(b) <I>Approved map.</I> The appropriate map for determining the boundaries of the “Escondido Valley” viticultural area is 1 U.S.G.S. (scale 1:250,000) map. It is titled Fort Stockton, Texas, 1954 (revised 1973).
</P>
<P>(c) <I>Boundary.</I> The Escondido Valley viticultural area is located in Pecos County, Texas. The boundary is as follows:
</P>
<P>(1) The beginning point is the intersection of Interstate Route 10 (I-10) and an intermittent stream approximately 18 miles east of the city of Fort Stockton (standard reference GE3317 on the Fort Stockton, Texas, U.S.G.S. map);
</P>
<P>(2) From the beginning point, the boundary follows I-10 in an easterly direction approximately 9 miles until a southbound trail diverges from I-10 just past the point where it intersects horizontal grid line 2 of square GE on the Fort Stockton, Texas, U.S.G.S. map;
</P>
<P>(3) The boundary then follows the trail in a generally southeasterly direction about 5 miles until it intersects the 3000 foot contour line;
</P>
<P>(4) The boundary follows the 3000 foot contour line in a generally westerly direction approximately 17 miles;
</P>
<P>(5) The boundary continues to follow the 3000 foot contour line as it turns sharply northwest, but diverges from the contour line when the contour line turns south again;
</P>
<P>(6) From the point where it diverges from the contour line, the boundary follows a straight north-northwesterly line as it returns to the beginning point at I-10.
</P>
<CITA TYPE="N">[ATF-322, 57 FR 20761, May 15, 1992]


</CITA>
</DIV8>


<DIV8 N="§ 9.142" NODE="27:1.0.1.1.7.3.45.122" TYPE="SECTION">
<HEAD>§ 9.142   Bennett Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Bennett Valley”.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Bennett Valley viticultural area are four 1:24,000 scale USGS topographic maps. They are titled:
</P>
<P>(1) Santa Rosa Quadrangle, CA—Sonoma Co. 1994
</P>
<P>(2) Kenwood Quadrangle, CA 1954, photorevised 1980
</P>
<P>(3) Glen Ellen Quadrangle, CA—Sonoma Co. 1954, photorevised 1980
</P>
<P>(4) Cotati Quadrangle, CA—Sonoma Co. 1954, photorevised 1980
</P>
<P>(c) <I>Boundary.</I> The Bennett Valley viticultural area is entirely within Sonoma County, California, and is located northwest of the peak of Sonoma Mountain and southeast of the city of Santa Rosa.
</P>
<P>(1) Beginning at the peak of Taylor Mountain (BM 1401), Section 6, T6N, R7W, proceed straight northeast to the intersection of the common line between Sections 31 and 32 and the 560-foot elevation line, T7N, R7W; continue straight northeast at the same angle, crossing the Bennett Valley Golf Course and Matanzas Creek, to a point on the 500-foot elevation line approximately 400 feet north of the southern boundary of Section 20, T7N, R7W (Santa Rosa Quadrangle); then
</P>
<P>(2) Proceed straight southeast to the center peak of the three unnamed peaks above the 1,100-foot elevation line, located approximately 1,600 feet southwest of Hunter Spring, in Section 28, T7N, R7W (Santa Rosa Quadrangle); then
</P>
<P>(3) Proceed straight east-southeast to a 1,527-foot peak in the southeast corner of Section 28, T7N, R7W (Santa Rosa Quadrangle); then
</P>
<P>(4) Proceed straight southeast to Bennett Mountain's 1,887-foot peak, Section 34, T7N, R7W (Kenwood Quadrangle); then
</P>
<P>(5) Proceed straight southeast to the 1,309-foot peak located northwest of a water tank and approximately 400 feet north of the southern boundary of Section 35, T7N, R7W (Kenwood Quadrangle); then
</P>
<P>(6) Proceed straight south-southeast to the 978-foot peak in the northeast quadrant of Section 11, T6N, R7W, and continue straight south-southeast approximately 600 feet to the “T” intersection of two unimproved roads located on the common boundary line between Sections 11 and 12, T6N, R7W (Kenwood Quadrangle); then
</P>
<P>(7) Proceed south along the north-south unimproved road to its intersection with Sonoma Mountain Road, Section 13, T6N, R7W, and continue straight south to the 1,600-foot elevation line, Section 13, T6N, R7W (Glen Ellen Quadrangle); then
</P>
<P>(8) Proceed west along the meandering 1,600-foot elevation line to the point where it crosses the common line between Sections 22 and 23, T6N, R7W (Glen Ellen Quadrangle); then
</P>
<P>(9) Proceed straight west-northwest to the point where the 900-foot elevation line crosses the common line between Sections 15 and 16, T6N, R7W, approximately 500 feet north of the southwest corner of Section 15 (Cotati Quadrangle); then
</P>
<P>(10) Proceed straight northwest to the intersection of Grange Road (known as Crane Canyon Road to the west) and the southern boundary of Section 9, and continue straight west along that section boundary to the southwest corner of Section 9, T6N, R7W (Cotati Quadrangle); then
</P>
<P>(11) Proceed straight north-northwest to the 961-foot peak on the east side of Section 8, T6N, R7W (Santa Rosa Quadrangle); and then
</P>
<P>(12) Proceed straight northwest to the peak of Taylor Mountain, returning to the point of beginning.
</P>
<CITA TYPE="N">[T.D. TTB-6, 68 FR 61748, Oct. 30, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 9.143" NODE="27:1.0.1.1.7.3.45.123" TYPE="SECTION">
<HEAD>§ 9.143   Spring Mountain District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Spring Mountain District.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Spring Mountain District viticultural area are four U.S.G.S. 7.5 minute series topographical maps of the 1:24000 scale. They are titled:
</P>
<P>(1) “Kenwood, Calif.,” 1954 (photorevised 1980).
</P>
<P>(2) “Rutherford, Calif.,” 1951 (photorevised 1968).
</P>
<P>(3) “St. Helena, Calif.,” 1960 (photorevised 1980).
</P>
<P>(4) “Calistoga, Calif.,” 1958 (photorevised 1980).
</P>
<P>(c) <I>Boundary.</I> The Spring Mountain District viticultural area is located in Napa County, California, within the Napa Valley viticultural area. The boundary is as follows:
</P>
<P>(1) Beginning on the Calistoga quadrangle map at the Napa-Sonoma county line at the boundary line between sections 18 and 19 in T8N/R6W.
</P>
<P>(2) Then east along the boundary line between sections 18 and 19 for approximately 
<FR>3/4</FR> of a mile to its intersection with Ritchie Creek at the boundary line between sections 17 and 20.
</P>
<P>(3) Then northeast along Ritchie Creek approximately 2 miles, to the 400 foot contour line in the northeast corner in section 16 of T8N/R6W.
</P>
<P>(4) Then along the 400 foot contour line in a northeast then generally southeast direction, through the St. Helena and Rutherford quadrangle maps, approximately 9 miles, past the town of St. Helena to the point where it intersects Sulphur Creek in Sulphur Canyon, in the northwest corner of section 2 in T7N/R6W.
</P>
<P>(5) Then west along Sulfur Creek (onto the Kenwood quadrangle map) and south to the point where it first divides into two intermittent streams in section 3 in T7N/R6W.
</P>
<P>(6) Then south along the intermittent stream approximately 1.5 miles to the point where it intersects the 2,360 foot contour line in section 10 in T7N/R6W.
</P>
<P>(7) Then southwest in a straight line, approximately .10 mile, to the unnamed peak (elevation 2600 feet) at the boundary line between Napa and Sonoma Counties.
</P>
<P>(8) Then in a generally northwest direction along the Napa-Sonoma county line, through sections 10, 9, 4, 5, 32, 33, 32, 29, 20, and 19, to the beginning point on the Calistoga quadrangle map at the boundary between sections 18 and 19 in T8N/R6W.
</P>
<CITA TYPE="N">[T.D. ATF-341, 58 FR 28350, May 13, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 9.144" NODE="27:1.0.1.1.7.3.45.124" TYPE="SECTION">
<HEAD>§ 9.144   Texas High Plains.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Texas High Plains.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Texas High Plains viticultural area are six U.S.G.S. topographical maps of the 1:250,000 scale. They are titled:
</P>
<P>(1) “Clovis, New Mexico; Texas” 1954, revised 1973.
</P>
<P>(2) “Brownfield, Texas; New Mexico” 1954, revised 1973.
</P>
<P>(3) “Hobbs, New Mexico; Texas” 1954, revised 1973.
</P>
<P>(4) “Plainview, Texas” 1954, revised 1974.
</P>
<P>(5) “Lubbock, Texas” 1954, revised 1975.
</P>
<P>(6) “Big Spring, Texas” 1954, revised 1975.
</P>
<P>(c) <I>Boundary.</I> The Texas High Plains viticultural area is located in Armstrong, Bailey, Borden, Briscoe, Castro, Cochran, Crosby, Dawson, Deaf Smith, Dickens, Floyd, Gaines, Garza, Hale, Hockley, Lamb, Lubbock, Lynn, Motley, Parmer, Randall, Swisher, Terry and Yoakum Counties, Texas. The boundary is as follows:
</P>
<P>(1) Beginning on the Hobbs, New Mexico; Texas, map at the intersection of the Texas-New Mexico border and U.S. Route 180 east of Hobbs, New Mexico;
</P>
<P>(2) The boundary follows U.S. Route 180 east through Seminole, Texas and onto the Big Spring, Texas, U.S.G.S. map where it intersects with the 3,000 foot contour line in the town of Lamesa, Texas;
</P>
<P>(3) The boundary then follows the 3,000 foot contour line in a generally northeasterly direction across the U.S.G.S. maps of Big Spring and Lubbock, Texas;
</P>
<P>(4) The boundary continues along the 3,000 foot contour line onto the map of Plainview, Texas, where it follows a generally northwesterly direction until it intersects with State Highway 217 approximately 12 miles east of Canyon, Texas;
</P>
<P>(5) The boundary then follows State Highway 217 west to Canyon, Texas, leaves State Highway 217 and proceeds in a straight line in a northwesterly direction until it intersects with U.S. Route 60, still within Canyon, Texas;
</P>
<P>(6) The boundary then follows U.S. Route 60 in a southwesterly direction onto the U.S.G.S. map of Clovis, New Mexico; Texas, where it intersects the Texas-New Mexico border;
</P>
<P>(7) The boundary then follows the Texas-New Mexico border south, across the U.S.G.S. map of Brownfield, Texas; New Mexico, to the beginning point on the Hobbs, New Mexico; Texas, U.S.G.S. map.
</P>
<CITA TYPE="N">[T.D. ATF-336, 58 FR 11967, Mar. 2, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 9.145" NODE="27:1.0.1.1.7.3.45.125" TYPE="SECTION">
<HEAD>§ 9.145   Dunnigan Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Dunnigan Hills.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Dunnigan Hills viticultural area are three U.S.G.S. 15 minute series topographical maps of the 1:62500 scale. They are titled:
</P>
<P>(1) “Guinda, Calif.,” 1959.
</P>
<P>(2) “Dunnigan, Calif.,” 1953.
</P>
<P>(3) “Woodland, Calif.,” 1953.
</P>
<P>(c) <I>Boundary.</I> The Dunnigan Hills viticultural area is located in Yolo County, California. The boundary is as follows:
</P>
<P>(1) The beginning point is on the Dunnigan, Calif., U.S.G.S. map at the intersection of Buckeye Creek and U.S. Route 99W just south of the Colusa-Yolo county line;
</P>
<P>(2) From the beginning point, the boundary follows Route 99W in a southeasterly direction until an unnamed westbound light-duty road coincident with a grant boundary (referred to by the petitioner as County Road 17) diverges from Route 99W just north of the town of Yolo, California, on the Woodland, Calif., U.S.G.S. map;
</P>
<P>(3) The boundary then follows the County Road 17 for approximately 2 miles to an unnamed southbound light duty road (referred to by the petitioner as County Road 95A);
</P>
<P>(4) The boundary then follows County Road 95A south for approximately 
<FR>1/2</FR> mile to an unnamed westbound light duty road (referred to by the petitioner as County Road 17A);
</P>
<P>(5) The boundary then proceeds west along County Road 17A for approximately 
<FR>3/8</FR> mile to an unnamed southbound light duty road (referred to by the petitioner as County Road 95);
</P>
<P>(6) The boundary then proceeds south along County Road 95 for approximately 1 mile to an unnamed light duty road which goes in a southwesterly direction (referred to by the petitioner as County Road 19);
</P>
<P>(7) The boundary then proceeds southwest along County Road 19 for approximately 
<FR>1/4</FR> mile to an unnamed light duty road which travels south-southwest (referred to by the petitioner as County Road 94B);
</P>
<P>(8) The boundary then proceeds southwest along County Road 94B approximately 1
<FR>1/4</FR> mile until it intersects Cache Creek;
</P>
<P>(9) The boundary then follows Cache Creek in a westerly direction 5.5 miles until it intersects an unnamed north-south light duty road approximately 1 mile north of the city of Madison, California (referred to by the petitioner as County Road 89);
</P>
<P>(10) The boundary then follows County Road 89 two miles in a northerly direction back on to the Dunnigan, Calif., U.S.G.S. map where it intersects an unnamed light duty road (referred to by the petitioner as County Road 16);
</P>
<P>(11) The boundary follows County Road 16 west for approximately 2 miles onto the Guinda, Calif., U.S.G.S. map, where it turns north onto an unnamed light-duty road between sections 31 and 32 of T10N/R1W (referred to by the petitioner as County Road 87);
</P>
<P>(12) The boundary follows County Road 87 north for 2 miles to an unnamed east-west light duty road (referred to by the petitioner as County Road 14);
</P>
<P>(13) The boundary follows County Road 14 west for 3 miles, and then leaves the unnamed road and turns north on the dividing line between sections 22 and 23 of T11N/R2W.
</P>
<P>(14) The boundary continues due north until it intersects Little Buckeye Creek just south of the Yolo-Colusa county line;
</P>
<P>(15) The boundary then follows Little Buckeye Creek in an easterly direction until it joins Buckeye Creek;
</P>
<P>(16) The boundary then follows Buckeye Creek in an easterly direction back to the point of beginning on the Dunnigan, Calif., U.S.G.S. map.
</P>
<CITA TYPE="N">[T.D. ATF-340, 58 FR 28352, May 13, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 9.146" NODE="27:1.0.1.1.7.3.45.126" TYPE="SECTION">
<HEAD>§ 9.146   Lake Wisconsin.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lake Wisconsin.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the “Lake Wisconsin” viticultural area are two U.S.G.S. 7.5 minute series topographical maps of the 1:24,000 scale. They are titled:
</P>
<P>(1) Sauk City, Wis., 1975; and
</P>
<P>(2) Lodi, Wis., 1975.
</P>
<P>(c) <I>Boundary.</I> The Lake Wisconsin viticultural area is located in Columbia and Dane Counties, Wisconsin. The boundary is as follows:
</P>
<P>(1) The point of beginning is on the “Lodi, Wisc.” U.S.G.S. map in the northeast quarter-section of section 17, Lodi Township, Columbia County, where Spring Creek enters Lake Wisconsin;
</P>
<P>(2) From the point of beginning, follow the southern shoreline of Lake Wisconsin northwest to where Lake Wisconsin narrows and becomes the Wisconsin River on the map, in the vicinity of the town of Merrimac, Sauk County;
</P>
<P>(3) Then continue along the southern shoreline of the Wisconsin River, west and south past Goose Egg Hill, Columbia County, on the “Sauk City, Wisc.” quadrangle map, and then west to a southwest bend in the shoreline opposite Wiegands Bay, Sauk County, where the Wisconsin River becomes Lake Wisconsin again on the map;
</P>
<P>(4) Then southwest and south along the eastern shoreline of Lake Wisconsin, to the power plant that defines where Lake Wisconsin ends and the Wisconsin River begins again;
</P>
<P>(5) Then continuing south along the Wisconsin River shoreline to where it intersects with U.S. Highway 12 opposite Sauk City, Sauk County;
</P>
<P>(6) Then in a southeasterly direction on U.S. Highway 12 to the intersection at State Highway 188, just over one-half a mile;
</P>
<P>(7) Then in a northeasterly direction about 1,000 feet on State Highway 188, to the intersection of Mack Road;
</P>
<P>(8) Then east on Mack Road to the intersection of State Highway Y, about 3 miles;
</P>
<P>(9) Then follow State Highway Y in a generally northeasterly direction onto the “Lodi, Wisc.” quadrangle map and continue in a northeasterly direction to the intersection with State Highway 60;
</P>
<P>(10) Then in a northeasterly direction on State Highway 60 to the intersection with State Highway 113 in the town of Lodi;
</P>
<P>(11) Then in a northwesterly direction on State Highway 113 to where it crosses Spring Creek the second time just before Chrislaw Road;
</P>
<P>(12) Then follow Spring Creek in a northwesterly direction to where it enters Lake Wisconsin, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-352, 59 FR 539, Jan. 5, 1994, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.147" NODE="27:1.0.1.1.7.3.45.127" TYPE="SECTION">
<HEAD>§ 9.147   Hames Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Hames Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate map for determining the boundary of the Hames Valley viticultural area is one U.S.G.S. 15 minute series topographical map, titled Bradley Quadrangle, California, edition of 1961, with a scale of 1:62,500.
</P>
<P>(c) <I>Boundary.</I> The Hames Valley viticultural area is located in southern Monterey County in the State of California. The boundary is as follows:
</P>
<P>(1) Beginning at the southeast corner of section 26, T. 23 S., R. 10 E., which coincides with the point where the 640 foot contour line crosses the Swain Valley drainage, the boundary proceeds in a straight line across section 26 to the northwest corner of section 26, T. 23 S., R. 10 E.;
</P>
<P>(2) Then west northwest in a straight line across sections 22, 21, 20, and 19, T. 23 S., R. 10 E., to the northwest corner of section 24, T. 23 S., R. 9 E.;
</P>
<P>(3) Then southeast in a straight line across sections 24, 25, 30, 31, and 32, to the southeast corner of section 5, T. 24 S., R. 10 E.;
</P>
<P>(4) Then east southeast in a straight line across section 9 to the southeast corner of section 10, T. 24 S., R. 10 E.;
</P>
<P>(5) Then east southeast in a straight line for approximately 2.25 miles to Hill 704, located in section 18, T. 24 S., R. 11 E.;
</P>
<P>(6) Then north northwest in a straight line for approximately 1.35 miles to Hill 801, located near the northwest corner of section 7, T. 24 S., R. 11 E., and then continue in a straight line to the northwest corner of section 6, T. 24 S., R. 11 E.;
</P>
<P>(7) Then in a generally northwesterly direction along the Salinas River for approximately 1 mile to where the Swain Valley drainage enters the Salinas River about .11 mile south of the northern boundary line of section 36, T. 23 S., R. 10 E.;
</P>
<P>(8) Then in a westerly direction for approximately .75 mile along the Swain Valley drainage to the southeast corner of section 26, T. 23 S., R. 10 E., the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-356, 59 FR 14100, Mar. 25, 1994]


</CITA>
</DIV8>


<DIV8 N="§ 9.148" NODE="27:1.0.1.1.7.3.45.128" TYPE="SECTION">
<HEAD>§ 9.148   Seiad Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Seiad Valley.”
</P>
<P>(b) <I>Approved map.</I> The appropriate map for determining the boundary of the Seiad Valley viticultural area is a U.S.G.S. 7.5 minute series topographical map of the 1:24000 scale, titled “Seiad Valley, Calif.,” 1980.
</P>
<P>(c) <I>Boundary.</I> The Seiad Valley viticultural area is located in Siskiyou County, California. The boundary is as follows:
</P>
<P>(1) The beginning point is the intersection of the 1600 foot contour line with the power transmission line north of the Klamath River, near Mile 130;
</P>
<P>(2) From the beginning point, the boundary follows the 1600′ contour line in a generally northeasterly direction until it reaches the intersection of an unnamed light duty road and an unimproved road just west of Canyon Creek;
</P>
<P>(3) The boundary then follows the unimproved road north to its end, then goes east in a straight line until it reaches the 1800′ contour line;
</P>
<P>(4) The boundary then follows the 1800′ contour line in a northeasterly direction to the point, near Sawmill Gulch, where the contour line crosses Seiad Creek and turns south and west;
</P>
<P>(5) The boundary continues to follow the 1800′ contour line as it proceeds southwest for approximately 4.5 miles, then turns sharply south-southeast for approximately 0.3 miles, until the contour line turns sharply east at a point just north of the Klamath River;
</P>
<P>(6) The boundary then diverges from the 1800′ contour line and proceeds south-southeast in a straight line, across the Klamath River and State Route 96, until it intersects with the 1600′ contour line;
</P>
<P>(7) The boundary then follows the 1600′ contour line south and west, then north and west, roughly following the course of the Klamath River, until it reaches an unnamed peak 1744 feet high;
</P>
<P>(8) The boundary continues along the 1600′ contour line as it diverges from the Klamath River and proceeds south, just to the east of an unnamed light duty road, to the point where that road crosses Grider Creek;
</P>
<P>(9) The boundary diverges from the contour line and proceeds west in a straight line across the road and Grider Creek until it intersects with the 1600′ contour line on the west side of Grider Creek; 
</P>
<P>(10) The boundary then follows the 1600′ contour line north, west and north again until it reaches a point where the contour line turns west, just south of the Klamath River;
</P>
<P>(11) The boundary diverges from the 1600′ contour line and proceeds in a straight line in a northeasterly direction, back to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-357, 59 FR 26114, May 19, 1994]


</CITA>
</DIV8>


<DIV8 N="§ 9.149" NODE="27:1.0.1.1.7.3.45.129" TYPE="SECTION">
<HEAD>§ 9.149   St. Helena.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “St. Helena.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the St. Helena viticultural area are three U.S.G.S. 7.5 minute series topographical maps of the 1:24,000 scale. They are titled:
</P>
<P>(1) St. Helena Quadrangle, California, edition of 1960, revised 1993;
</P>
<P>(2) Calistoga Quadrangle, California, edition of 1958, photorevised 1980;
</P>
<P>(3) Rutherford Quadrangle, California, edition of 1951, photorevised 1968, photoinspected 1973.
</P>
<P>(c) <I>Boundary.</I> The St. Helena viticultural area is located in Napa County in the State of California. The boundary is as follows:
</P>
<P>(1) Beginning on the Rutherford Quadrangle map at the point of intersection between State Highway 29 and a county road shown on the map as Zinfandel Avenue, known locally as Zinfandel Lane, the boundary proceeds in a southwest direction along Zinfandel Avenue to its intersection with the north fork of Bale Slough (blueline stream) near the 201 foot elevation marker;
</P>
<P>(2) Thence in a northwesterly direction approximately 2,750 feet along the north fork of Bale Slough to a point of intersection with a southwesterly straight line projection of a light duty road locally known as Inglewood Avenue;
</P>
<P>(3) Thence in a straight line in a southwesterly direction along this projected extension of Inglewood Avenue approximately 2,300 feet to its intersection with the 500 foot contour line in Section 7, Township 7 North (T7N), Range 5 West (R5W);
</P>
<P>(4) Thence along the 500 foot contour line in a generally northwesterly direction through Sections 7, 1 and 2, to its intersection of the western border of Section 2, T7N, R6W; 
</P>
<P>(5) Thence northerly along the western border of Section 2 approximately 500 feet to its intersection with Sulphur Creek in Sulphur Canyon in the northwest corner of Section 2, T7N, R6W;
</P>
<P>(6) Thence along Sulphur Creek in an easterly direction approximately 350 feet to its intersection with the 400 foot contour line;
</P>
<P>(7) Thence along the 400 foot contour line in a generally easterly, then northwesterly, direction past the city of St. Helena (on the St. Helena Quadrangle map) to a point of intersection with a southwesterly straight line projection of the county road shown as Bale Lane in the Carne Humana Rancho on the Calistoga Quadrangle map;
</P>
<P>(8) Thence along the projected straight line extension of Bale Lane in a northeasterly direction approximately 700 feet to the intersection of State Highway 29 and Bale Lane and continuing northeasterly along Bale Lane to its intersection with the Silverado Trail;
</P>
<P>(9) Thence in a northwesterly direction along the Silverado Trail approximately 1,500 feet to an unmarked driveway on the north side of the Silverado Trail near the 275 foot elevation marker;
</P>
<P>(10) Thence approximately 300 feet northeasterly along the driveway to and beyond its point of intersection with another driveway and continuing in a straight line projection to the 400 foot contour line;
</P>
<P>(11) Thence in a northerly and then generally southeasterly direction along the 400 foot contour line through Sections 10 (projected), 11, 12, 13, 24 and 25 in T8N, R6W, Section 30 in T8N, R5W, Sections 25 and 24 in T8N, R6W, Sections 19 and 30 in T8N, R5W to a point of intersection with the city limits of St. Helena on the eastern boundary of Section 30 in T8N, R5W, on the St. Helena Quadrangle map;
</P>
<P>(12) Thence north, east and south along the city limits of St. Helena to the third point of intersection with the county road known as Howell Mountain Road in Section 29, T8N, R5W;
</P>
<P>(13) Thence in a northeasterly direction approximately 900 feet along Howell Mountain Road to its intersection with Conn Valley Road;
</P>
<P>(14) Thence northeasterly and then southeasterly along Conn Valley Road to its intersection with the eastern boundary of Section 28, T8N, R5W;
</P>
<P>(15) Thence south approximately 5,200 feet along the eastern boundary of Sections 28 and 33 to a point of intersection with the 380 foot contour line near the southeast corner of Section 33, T8N, R5W, on the Rutherford Quadrangle map;
</P>
<P>(16) Thence in a northwesterly direction along the 380 foot contour line in Section 33 to a point of intersection with a northeasterly straight line projection of Zinfandel Avenue;
</P>
<P>(17) Thence in a southwesterly direction approximately 950 feet along this straight line projection of Zinfandel Avenue to its intersection with the Silverado Trail;
</P>
<P>(18) Thence continuing along Zinfandel Avenue in a southwesterly direction to its intersection with State Highway 29, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-366, 60 FR 47061, Sept. 11, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 9.150" NODE="27:1.0.1.1.7.3.45.130" TYPE="SECTION">
<HEAD>§ 9.150   Cucamonga Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Cucamonga Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Cucamonga Valley viticultural area are the following ten U.S.G.S. topographical maps (7.5 minute series 1:24000 scale):
</P>
<P>(1) Mt. Baldy, Calif., 1967, photorevised 1988;
</P>
<P>(2) Cucamonga Peak, Calif., 1966, photorevised 1988;
</P>
<P>(3) Devore, Calif., 1966, photorevised 1988;
</P>
<P>(4) San Bernardino North, Calif., 1967, photorevised 1988;
</P>
<P>(5) Ontario, Calif., 1967, photorevised 1981;
</P>
<P>(6) Guasti, Calif., 1966, photorevised 1981;
</P>
<P>(7) Fontana, Calif., 1967, photorevised 1980;
</P>
<P>(8) San Bernardino South, Calif., 1967, photorevised 1980;
</P>
<P>(9) Prado Dam, Calif., 1967, photorevised 1981;
</P>
<P>(10) Corona North, Calif., 1967, photorevised 1981.
</P>
<P>(c) <I>Boundary.</I> The Cucamonga Valley viticultural area is located in San Bernardino and Riverside Counties, California. The boundary is as follows:
</P>
<P>(1) The beginning point is the intersection of Euclid Avenue and 24th Street on the Mt. Baldy, Calif. U.S.G.S. map;
</P>
<P>(2) From the beginning point, the boundary follows 24th Street east for approximately 0.3 mile, until it reaches the intersection of 24th Street with two unnamed light-duty streets to the north;
</P>
<P>(3) The boundary then diverges from 24th Street and goes straight north for approximately 0.3 mile, until it reaches the 2,000 foot contour line;
</P>
<P>(4) The boundary then follows the 2,000 foot contour line in a generally easterly direction across the Cucamonga Peak, Calif., U.S.G.S. map and onto the Devore, Calif., U.S.G.S. map until it reaches Lytle Creek Wash;
</P>
<P>(5) The boundary follows the intermittent stream in Lytle Creek Wash in a southeasterly direction to the end of the intermittent stream on the Devore, Calif., U.S.G.S. map;
</P>
<P>(6) The boundary then continues through Lytle Creek Wash, proceeding southeast in a straight line from the end of the intermittent stream, across the southwest corner of the San Bernardino North, Calif., U.S.G.S. map and onto the San Bernardino, South, Calif., U.S.G.S. map, to the northernmost point of the flood control basin at the end of the Lytle Creek Wash, a distance of approximately 4.3 miles;
</P>
<P>(7) The boundary then proceeds in a straight line south-southeast across the flood control basin to the point where Lytle Creek Channel exits the basin;
</P>
<P>(8) The boundary continues along Lytle Creek Channel until it empties into Warm Creek;
</P>
<P>(9) The boundary then follows Warm Creek until it meets the Santa Ana River;
</P>
<P>(10) The boundary then follows the western edge of the Santa Ana River in a generally southwesterly direction until it meets the San Bernardino—Riverside County line;
</P>
<P>(11) The boundary follows the county line west, crossing onto the Guasti, Calif., U.S.G.S. map, until it reaches the unnamed channel between Etiwanda and Mulberry Avenues (identified by the petitioner as Etiwanda Creek Channel);
</P>
<P>(12) The boundary then follows Etiwanda Creek Channel in a southerly direction until it parallels Bain Street;
</P>
<P>(13) The boundary then diverges from Etiwanda Creek Channel and follows Bain Street south until it ends at Limonite Avenue in the northeast corner of the Corona North, Calif., U.S.G.S. map;
</P>
<P>(14) The boundary then continues south in a straight line until it reaches the northern shore of the Santa Ana River;
</P>
<P>(15) The boundary then follows the north shore of the Santa Ana River until it intersects the 560 foot contour line in Section 1 T3S/R7W;
</P>
<P>(16) The boundary then follows the 560′ contour line to the north of the Santa Ana River in a generally westerly direction until it reaches Euclid Avenue on the Prado Dam, Calif., U.S.G.S. map;
</P>
<P>(17) The boundary then follows Euclid Avenue north to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-362, 60 FR 16578, Mar. 31, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 9.151" NODE="27:1.0.1.1.7.3.45.131" TYPE="SECTION">
<HEAD>§ 9.151   Puget Sound.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Puget Sound.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Puget Sound viticultural area are four 1:250,000 scale U.S.G.S. topographical maps, one 1:25,000 scale topographic map, and three 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Hoquiam, Washington, 1958 revised 1974 (1:250,000)
</P>
<P>(2) Seattle, Washington, 1958 revised 1974 (1:250,000)
</P>
<P>(3) Wenatchee, Washington, 1957 revised 1971 (1:250,000)
</P>
<P>(4) Victoria, B.C., Can., Wash., U.S., 1957 revised (U.S. area) 1974 (1:250,000)
</P>
<P>(5) Auburn, Washington, 1983 (1:25,000)
</P>
<P>(6) Buckley, Washington, 1993 (1:24,000)
</P>
<P>(7) Cumberland, Washington, 1993 (1:24,000)
</P>
<P>(8) Enumclaw, Washington, 1993 (1:24,000)
</P>
<P>(c) <I>Boundary.</I> The Puget Sound viticultural area is located in the State of Washington. The boundaries of the Puget Sound viticultural area, using landmarks and points of reference found on appropriate U.S.G.S. maps, follow.
</P>
<P>(1) Beginning where the Whatcom county line comes closest to an unnamed secondary road (referred to in the petition as Silver Lake Road) on the U.S.G.S. map “Victoria,” T41N/R6E;
</P>
<P>(2) Then south along Silver Lake Road approximately 5.5 miles to its intersection with State Highway 542, T39N/R5E;
</P>
<P>(3) Then west and then southwest along State Highway 542 approximately 11 miles to its intersection with State Highway 9, T38N/R5E;
</P>
<P>(4) Then south along State Highway 9 approximately 44 miles to its intersection with an unnamed secondary road (referred to in the petition as Burn Road) at the town of Arlington, T31N/R5E;
</P>
<P>(5) Then south, southeast along Burn Road approximately 11 miles to its intersection with State Highway 92, T30N/R6E;
</P>
<P>(6) Then south along State Highway 92 approximately 3 miles to its intersection with an unnamed light duty road (referred to in the petition as Machias Hartford Road), T29N/R6E;
</P>
<P>(7) Then south along Machias Hartford Road approximately 4 miles to its intersection with an unnamed secondary road (referred to in the petition as Lake Roesiger Road), on the U.S.G.S. map “Wenatchee,” T29N/R7E;
</P>
<P>(8) Then east along Lake Roesiger Road approximately 3.5 miles to its intersection with an unnamed secondary road (referred to in the petition as Woods Creek Road), T29N/R7E;
</P>
<P>(9) Then south along Woods Creek Road approximately 10.5 miles to its intersection with U.S. Highway 2 in the town of Monroe, T27N/R7E;
</P>
<P>(10) Then west along U.S. Highway 2 approximately 
<FR>1/2</FR> mile to its intersection with State Highway 203, T27N/R6E;
</P>
<P>(11) Then south along State Highway 203 approximately 24 miles to its intersection with an unnamed secondary road (referred to in the petition as Preston-Fall City Road), at the town of Fall City, T24N/R7E;
</P>
<P>(12) Then southwest along Preston-Fall City Road approximately 4 miles to its intersection with Interstate Highway 90 at the town of Preston, T24N/R7E;
</P>
<P>(13) Then east along Interstate Highway 90 approximately 3 miles to its intersection with State Highway 18, T23N/R7E;
</P>
<P>(14) Then southwest along State Highway 18 approximately 7 miles to its intersection with an unnamed secondary road (referred to in the petition as 276th Avenue SE), T23N/R6E;
</P>
<P>(15) Then south along 276th Avenue SE approximately 5 miles to its intersection with State Highway 516 at the town of Georgetown, T22N/R6E;
</P>
<P>(16) Then west along State Highway 516 approximately 2 miles to its intersection with State Highway 169 at the town of Summit on the U.S.G.S. map, “Seattle,” (shown in greater detail on the U.S.G.S. map, “Auburn”), T22N/R6E;
</P>
<P>(17) Then south along State Highway 169 approximately 11.5 miles to its intersection with State Highway 410 at the town of Enumclaw on the U.S.G.S. map, “Wenatchee,” (shown in greater detail on the U.S.G.S. map, “Enumclaw”), T20N/R6E;
</P>
<P>(18) Then southwest approximately 5 miles along State Highway 410 until its intersection with State Highway 165 on the U.S.G.S. map, “Seattle,” (shown in greater detail on the U.S.G.S. map, “Buckley”), T19N/R6E;
</P>
<P>(19) Then southwest on State Highway 165 until its intersection with State Highway 162 at the town of Cascade Junction on the U.S.G.S. map, “Seattle” (shown in greater detail on the U.S.G.S. Map, “Buckley”), T19N/R6E;
</P>
<P>(20) Then southwest along State Highway 162 approximately 8 miles to its intersection with an unnamed secondary road (referred to in the petition as Orville Road E.), T19N/R5E;
</P>
<P>(21) Then south along Orville Road E., approximately 8 miles to its intersection with the CMSTP&amp;P railroad at the town of Kapowsin, on the U.S.G.S. map, “Hoquiam,” T17N/R5E;
</P>
<P>(22) Then south along the CMSTP&amp;P railroad approximately 17 miles to where it crosses the Pierce County line at the town of Elbe, T15N/R5E;
</P>
<P>(23) Then west along the Pierce County line approximately 1 mile to the eastern tip of Thurston County, T15N/R5E;
</P>
<P>(24) Then west along the Thurston County line approximately 38 miles to where it crosses Interstate Highway 5, T15N/R2W;
</P>
<P>(25) Then north along Interstate Highway 5 approximately 18 miles to its intersection with U.S. Highway 101 at the town of Tumwater on the U.S.G.S. map “Seattle,” T18N/R2W;
</P>
<P>(26) Then northwest along U.S. Highway 101 approximately 18 miles to its intersection with State Highway 3 at the town of Shelton, T20N/R3W;
</P>
<P>(27) Then northeast along State Highway 3 approximately 24 miles to where it crosses the Kitsap County line, T23N/R1W;
</P>
<P>(28) Then north along the Kitsap County line approximately 3 miles to the point where it turns west, T23N/R1W;
</P>
<P>(29) Then west along the Kitsap County line approximately 11 miles to the point where it turns north, T23N/R3W;
</P>
<P>(30) Then continuing west across Hood Canal approximately 1 mile to join with U.S. Highway 101 just south of the mouth of an unnamed creek (referred to in the petition as Jorsted Creek), T23N/R3W;
</P>
<P>(31) Then north along U.S. Highway 101 approximately 40 miles to the point where it turns west at the town of Gardiner on the U.S.G.S. map “Victoria,” T30N/R2W;
</P>
<P>(32) Then west along U.S. Highway 101 approximately 32 miles to where it crosses the Elwha River, T30N/R7W;
</P>
<P>(33) Then north along the Elwha River approximately 6 miles to its mouth, T31N/R7W;
</P>
<P>(34) Then continuing north across the Strait of Juan de Fuca approximately 5 miles to the Clallam County line, T32N/R7W;
</P>
<P>(35) Then northeast along the Clallam County line approximately 14 miles to the southwestern tip of San Juan County, T32N/R4W;
</P>
<P>(36) Then northeast along the San Juan County line approximately 51 miles to the northern tip of San Juan County, T38N/R3W;
</P>
<P>(37) Then northwest along the Whatcom County line approximately 19 miles to the western tip of Whatcom County, T41N/R5W;
</P>
<P>(38) Then east along the Whatcom County line approximately 58 miles to the beginning.
</P>
<CITA TYPE="N">[T.D. ATF-368, 60 FR 51899, Oct. 4, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 9.152" NODE="27:1.0.1.1.7.3.45.132" TYPE="SECTION">
<HEAD>§ 9.152   Malibu-Newton Canyon.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this petition is “Malibu-Newton Canyon.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate map for determining the boundary of the Malibu-Newton Canyon viticultural area is the U.S.G.S. map, “Point Dume Quadrangle, California” (7.5 Minute Series 1:24,000 Topographic map, photorevised 1981).
</P>
<P>(c) <I>Boundary.</I> The Malibu-Newton Canyon viticultural area is located in Los Angeles County, California. The boundary is as follows:
</P>
<P>(1) Beginning at the intersection of the Newton Canyon creek (lowest elevation) and an unnamed medium duty road referred to by the petitioner as Kanan Dume Road at the boundary of section 13 and 18 on the U.S.G.S. map “Point Dume Quadrangle.”
</P>
<P>(2) Then south along Kanan Dume Road to the point where an unnamed, unimproved dirt road referred to by the petitioner as Ramerez Mountain Way crosses over Kanan Dume Road at the tunnel in the northwest corner of section 19.
</P>
<P>(3) Then east along Ramerez Mountain Way, following the southern ridgeline of Newton Canyon, to Latigo Canyon Road in the southwest corner of section 17.
</P>
<P>(4) Then south along Latigo Canyon Road to an unnamed, unimproved dirt road referred to by the petitioner as Newton Mountain Way at the southern boundary of section 17.
</P>
<P>(5) Then northeast along Newton Mountain Way, following the southeastern ridgeline of Newton Canyon, to an unnamed, unimproved dirt road referred to by the petitioner as Castro Mountain Way in section 16.
</P>
<P>(6) Then west along Castro Mountain Way, past Castro Peak, following the northern ridgeline of Newton Canyon to Latigo Canyon Road in section 18.
</P>
<P>(7) Then southwest along the natural ridgeline of Newton Canyon to the intersection of Kanan Dume Road and the 1,600 foot contour line in the southeastern portion of section 13.
</P>
<P>(8) Then southeasterly along Kanan Dume Road to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-375, 61 FR 29952, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 9.153" NODE="27:1.0.1.1.7.3.45.133" TYPE="SECTION">
<HEAD>§ 9.153   Redwood Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Redwood Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Redwood Valley viticultural area are four Quadrangle 7.5 minute series 1:24,000 scale U.S.G.S. topographical maps. They are titled:
</P>
<P>(1) Redwood Valley, Calif., 1960, photorevised 1975;
</P>
<P>(2) Ukiah, Calif., 1958, photorevised 1975;
</P>
<P>(3) Laughlin Range, Calif., 1991;
</P>
<P>(4) Orrs Springs, California, provisional edition, 1991.
</P>
<P>(c) <I>Boundary.</I> The Redwood Valley viticultural area is located in the east central interior portion of Mendocino County, California. The boundaries of the Redwood Valley viticultural area, using landmarks and points of reference found on appropriate U.S.G.S. maps, are:
</P>
<P>(1) The beginning point is in the northeastern portion of the Ukiah map at the point where State Highway 20 crosses the R11W/R12W range line along the south bank of the East Fork of the Russian River, T16N/R12W. From the beginning point, proceed north along the R11W/R12W range line, crossing onto the Redwood Valley map, to the northeast corner of section 1, T16N/R12W; then
</P>
<P>(2) Proceed west along the northern boundary of section 1 to the section's northwest corner, T16N/R12W; then
</P>
<P>(3) Proceed north along the eastern boundary lines of sections 35, 26, 23, 14, 11, and 2 to the T17N/T18N common boundary line at the northeast corner of section 2, T17N/R12W; then
</P>
<P>(4) Proceed west along the T17N/T18N common line to the northwest corner of section 6, T17N/R12W; then
</P>
<P>(5) Proceed south-southwesterly in a straight line, crossing onto the Laughlin Range map, to the intersection of the 1,400-foot contour line and Bakers Creek within McGee Canyon, section 25, T17N/R13W; then
</P>
<P>(6) Proceed southeasterly in a straight line approximately 1.5 miles, crossing onto the Redwood Valley map, to the southeast corner of section 36, T17N/R13W; then
</P>
<P>(7) Proceed west-southwesterly in a straight line approximately 0.55 mile, crossing onto the Laughlin Range map, to the intersection of U.S. Highway 101 and an unnamed road known locally as Reeves Canyon Road, section 1, T16N/R13W; then
</P>
<P>(8) Proceed southeasterly in a straight line approximately 0.9 mile, crossing onto the Redwood Valley map, to the southeast corner of section 1, T16N/R13W; then
</P>
<P>(9) Proceed south-southwesterly in a straight line approximately 0.65 mile to the intersection of an unnamed, unimproved road and an unnamed, intermittent stream, approximately 500 feet south of Seward Creek, section 12, T16N/R13W; then
</P>
<P>(10) Proceed west-southwesterly in a straight line approximately 0.9 mile, crossing onto the Laughlin Range map, to the southwest corner of section 12, T16N/R13W; then
</P>
<P>(11) Proceed east-southeasterly in a straight line, crossing onto the far northeastern corner of the Orrs Springs map, then continuing onto the Ukiah map, to the intersection of State Highway 20 and a road known locally as North State Street (old U.S. Highway 101), north of Calpella, T16N/R12W; then
</P>
<P>(12) Proceed easterly along State Highway 20, returning to the beginning point.
</P>
<P>(d) <I>Transition period.</I> A label containing the words “Redwood Valley” in the brand name or as an appellation of origin approved prior to November 10, 2014 may be used on wine bottled before November 10, 2016 if the wine conforms to the standards for use of the label set forth in § 4.25 or § 4.39(i) of this chapter in effect prior to November 10, 2014.
</P>
<CITA TYPE="N">[T.D. ATF-386, 61 FR 67466, Dec. 23, 1996, as amended by T.D. TTB-124, 79 FR 60972, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.154" NODE="27:1.0.1.1.7.3.45.134" TYPE="SECTION">
<HEAD>§ 9.154   Chiles Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Chiles Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Chiles Valley viticultural area are four 1:24,000 Scale U.S.G.S. topography maps. They are titled:
</P>
<P>(1) St. Helena, CA 1960 photorevised 1980;
</P>
<P>(2) Rutherford, CA 1951 photorevised 1968;
</P>
<P>(3) Chiles Valley, CA 1958 photorevised 1980;
</P>
<P>(4) Yountville, CA 1951 photorevised 1968.
</P>
<P>(c) <I>Boundary.</I> The Chiles Valley viticultural area is located in the State of California, entirely within the Napa Valley viticultural area. The boundaries of the Chiles Valley viticultural area, using landmarks and points of reference found on appropriate U.S.G.S. maps follow. The local names of roads are identified by name.
</P>
<P>(1) Beginning on the St. Helena, CA quadrangle map at the northernmost corner of Rancho Catacula in Section 34, Township 9 North (T9N), Range 5 West (R5W), Mount Diablo Base and Meridian (MDBM);
</P>
<P>(2) Then in southwesterly direction along the Rancho Catacula boundary line to its intersection with the Rancho La Jota boundary line;
</P>
<P>(3) Then in a south-southeasterly direction approximately 3,800 feet along the Rancho Catacula/Rancho La Jota boundary line to the point where the Rancho Catacula boundary separates from the common boundary with Rancho La Jota;
</P>
<P>(4) Then in a southeasterly direction continuing along the Rancho Catacula boundary approximately 23,600 feet to a point of intersection, in the NE 
<FR>1/4</FR> Sec. 19, T8N, R4W, on the Chiles Valley quadrangle map, with a county road known locally as Chiles and Pope Valley Road;
</P>
<P>(5) Then in a southwesterly direction along Chiles and Pope Valley Road to a point where it first crosses an unnamed blueline stream in the SE 
<FR>1/4</FR> Section 19, T8N, R4W;
</P>
<P>(6) Then following the unnamed stream in generally southeast direction to its intersection with the 1200 foot contour;
</P>
<P>(7) Then following the 1200 foot contour in a northeasterly direction to a point of intersection with the Rancho Catacula boundary in section 20, T8N, R4W;
</P>
<P>(8) Then in a southeasterly direction along the Rancho Catcula boundary approximately 17,500 feet to the southwest corner of Rancho Catacula in section 34, T8N, R4W on the Yountville, CA, quadrangle map;
</P>
<P>(9) Then in a northeasterly direction along the Rancho Catacula boundary approximately 650 feet to its intersection with the 1040 foot contour;
</P>
<P>(10) Then along the 1040 foot contour in a generally east and northeast direction to its intersection with the Rancho Catacula boundary;
</P>
<P>(11) Then in a northeasterly direction along the Rancho Catacula boundary approximately 1100 feet to its intersection with the 1040 foot contour;
</P>
<P>(12) Then along the 1040 foot contour in an easterly direction and then in a northwesterly direction to its intersection of the Rancho Catacula boundary;
</P>
<P>(13) Then in a southwesterly direction along the Rancho Catacula boundary approximately 300 feet to a point of intersection with a line of high voltage power lines;
</P>
<P>(14) Then in a westerly direction along the high voltage line approximately 650 feet to its intersection with the 1000 foot contour;
</P>
<P>(15) Then continuing along the 1000 foot contour in a generally northwesterly direction to the point of intersection with the first unnamed blueline stream;
</P>
<P>(16) Then along the unnamed stream in a northerly direction to its point of intersection with the 1200 foot contour;
</P>
<P>(17) Then along the 1200 foot contour in a northwesterly direction to its points of intersection with the Rancho Catacula boundary in Section 35, T9N, R5W on the St. Helena, CA, quadrangle map;
</P>
<P>(18) Then along the Rancho Catacula boundary in a northwesterly direction approximately 5,350 feet to a northernmost corner of Rancho Catacula, the beginning point on the St. Helena quadrangle map a the northernmost corner of Rancho Catacula in Section 34, T9N, R5W, MDBM.
</P>
<CITA TYPE="N">[T.D. ATF-408, 64 FR 7787, Feb. 17, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 9.155" NODE="27:1.0.1.1.7.3.45.135" TYPE="SECTION">
<HEAD>§ 9.155   Texas Davis Mountains.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Texas Davis Mountains.”
</P>
<P>(b) <I>Approved map.</I> The appropriate maps for determining the boundary of the Texas Davis Mountains viticultural area are two U.S.G.S. metric topographical maps of the 1:100 000 scale, titled:
</P>
<P>(1) “Fort Davis, Texas,” 1985.
</P>
<P>(2) “Mount Livermore, Texas—Chihuahua,” 1985.
</P>
<P>(c) <I>Boundary.</I> The Texas Davis Mountains viticultural area is located in Jeff Davis County, Texas. The boundary is as follows:
</P>
<P>(1) The beginning point is the intersection of Texas Highway 17 and Farm Road 1832 on the Fort Davis, Texas, U.S.G.S. map;
</P>
<P>(2) From the beginning point, the boundary follows Highway 17 in a southeasterly and then southwesterly direction until it reaches the intersection of Limpia Creek with the unnamed stream which flows through Grapevine Canyon on the Fort Davis, Texas, U.S.G.S. map;
</P>
<P>(3) The boundary then proceeds in a straight line in a southwesterly direction until it meets Highway 118 at a gravel pit 1
<FR>3/4</FR> miles southeast of the intersection of Highway 118 and Highway 17;
</P>
<P>(4) The boundary then proceeds in a straight line east by southeast until it meets Highway 166 at its junction with Highway 17;
</P>
<P>(5) The boundary then follows Highway 166 in a southwesterly direction onto the Mt. Livermore, Texas-Chihuahua, U.S.G.S. map;
</P>
<P>(6) The boundary then continues to follow Highway 166 in a westerly direction;
</P>
<P>(7) The boundary then continues to follow Highway 166 as it turns in a northerly and then northeasterly direction to the point where it meets Highway 118;
</P>
<P>(8) The boundary then follows Highway 118 in a northerly direction until it reaches a point where it intersects with the 1600 meter contour line, just north of Robbers Roost Canyon;
</P>
<P>(9) The boundary then proceeds in a straight line due east for about two miles until it reaches the 1600 meter contour line to the west of Friend Mountain;
</P>
<P>(10) The boundary then follows the 1600 meter contour line in a northeasterly direction until it reaches the northernmost point of Friend Mountain;
</P>
<P>(11) The boundary then diverges from the contour line and proceeds in a straight line east-southeast until it reaches the beginning point of Buckley Canyon, approximately three fifths of a mile;
</P>
<P>(12) The boundary then follows Buckley Canyon in an easterly direction to the point where it meets Cherry Canyon;
</P>
<P>(13) The boundary then follows Cherry Canyon in a northeasterly direction to the point where it meets Grapevine Canyon on the Mt. Livermore, Texas-Chihuahua, U.S.G.S. map;
</P>
<P>(14) The boundary then proceeds in a straight line from the intersection of Cherry and Grapevine Canyons to the peak of Bear Cave Mountain, on the Fort Davis, Texas, U.S.G.S. map;
</P>
<P>(15) The boundary then proceeds in a straight line from the peak of Bear Cave Mountain to the point where Farm Road 1832 begins;
</P>
<P>(16) The boundary then follows Farm Road 1832 back to its intersection with Texas Highway 17, at the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-395, 63 FR 11828, Mar. 11, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 9.156" NODE="27:1.0.1.1.7.3.45.136" TYPE="SECTION">
<HEAD>§ 9.156   Diablo Grande.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Diablo Grande”.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Diablo Grande viticultural area are the following four U.S.G.S. Quadrangle 7.5 Minute Series (Topographic) maps. They are titled:
</P>
<P>(1) Patterson Quadrangle, California—Stanislaus Co., 1953 (Photorevised 1971, Photoinspected 1978);
</P>
<P>(2) Copper Mtn. Quadrangle, California—Stanislaus Co., 1953 (Field Check 1956, Aerial Photo 1971);
</P>
<P>(3) Wilcox Ridge, California—Stanislaus Co., 1956 (Photorevised 1971);
</P>
<P>(4) Orestimba Peak, California—Stanislaus Co., 1955 (Photorevised 1971).
</P>
<P>(c) <I>Boundary.</I> The Diablo Grande viticultural area is located in the western foothills of Stanislaus County, California. The beginning point is at Reservoir Spillway 780 in section 8, Township 6 South, Range 7 East (T. 6S., R. 7E.) on the Patterson Quadrangle U.S.G.S. map.
</P>
<P>(1) Then proceed northwest to Salt Grass Springs to the point where the 1000 foot contour line crosses the northern section line of section 9, T. 6S., R. 6E., on the Copper Mtn., Quadrangle U.S.G.S. map.
</P>
<P>(2) Then proceed due south past Copper Mountain in section 16, T. 6S., R. 6E., to Mikes Peak in section 4, T. 7S., R. 6E., on the Wilcox Ridge Quadrangle U.S.G.S. map.
</P>
<P>(3) Then proceed due west to Oristimba Creek in section 6, T. 7S., R. 6E.
</P>
<P>(4) Then proceed following Orestimba Creek south/southeast and then east/northeast to the point where Orestimba Creek meets Bench Mark #340 in section 28, T. 7S., R. 7E., on the Orestimba Peak Quadrangle U.S.G.S. map.
</P>
<P>(5) Then proceed northwest to the point of beginning at Reservoir Spillway 780 in section 8, T. 6S., R. 7E.
</P>
<CITA TYPE="N">[T.D. ATF-399, 63 FR 33853, June 22, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 9.157" NODE="27:1.0.1.1.7.3.45.137" TYPE="SECTION">
<HEAD>§ 9.157   San Francisco Bay.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Francisco Bay.”
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the San Francisco Bay viticultural area are 47 1:24,000 Scale USGS topographic maps. They are titled:
</P>
<P>(1) Pacheco Peak, California, scale 1:24,000, dated 1955, Photorevised 1971;
</P>
<P>(2) Gilroy Hot Springs, California, scale 1:24,000, dated 1955, Photoinspected 1978, Photorevised 1971
</P>
<P>(3) Mt. Sizer, California, scale 1:24,000, dated 1955, Photoinspected 1978, Photorevised 1971
</P>
<P>(4) Morgan Hill, California, scale 1:24,000, dated 1955, Photorevised 1980
</P>
<P>(5) Lick Observatory, California, scale 1:24,000, dated 1955, Photoinspected 1973, Photorevised 1968
</P>
<P>(6) San Jose East, California, scale 1:24,000, dated 1961, Photorevised 1980;
</P>
<P>(7) Calaveras Reservoir, California, scale 1:24,000, dated 1961, Photorevised 1980;
</P>
<P>(8) La Costa Valley, California, scale 1:24,000, dated 1960, Photorevised 1968;
</P>
<P>(9) Mendenhall Springs, California, scale 1:24,000, dated 1956, Photoinspected 1978, Photorevised 1971;
</P>
<P>(10) Altamont, California, scale 1:24,000, dated 1953, Photorevised 1981;
</P>
<P>(11) Byron Hot Springs, California, scale 1:24,000, dated 1953, Photorevised 1968;
</P>
<P>(12) Tassajara, California, scale 1:24,000, dated 1953, Photoinspected 1974, Photorevised 1968;
</P>
<P>(13) Diablo, California, scale 1:24,000, dated 1953, Photorevised 1980;
</P>
<P>(14) Clayton, California, scale 1:24,000, dated 1953, Photorevised 1980;
</P>
<P>(15) Honker Bay, California, scale 1:24,000, dated 1953, Photorevised 1980;
</P>
<P>(16) Vine Hill, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(17) Benicia, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(18) Mare Island, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(19) Richmond, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(20) San Quentin, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(21) Oakland West, California, scale 1:24,000, dated 1959, Photorevised 1980;
</P>
<P>(22) San Francisco North, California, scale 1:24,000, dated 1956, Photorevised 1968 and 1973;
</P>
<P>(23) San Francisco South, California, scale 1:24,000, dated 1956, Photorevised 1980;
</P>
<P>(24) Montara Mountain, California, scale 1:24,000, dated 1956, Photorevised 1980;
</P>
<P>(25) Half Moon Bay, California, scale 1:24,000, dated 1961, Photoinspected 1978, Photorevised 1968 and 1973;
</P>
<P>(26) San Gregorio, California, scale 1:24,000, dated 1961, Photoinspected 1978, Photorevised 1968;
</P>
<P>(27) Pigeon Point, California, scale 1:24,000, dated 1955, Photorevised 1968;
</P>
<P>(28) Franklin Point, California, scale 1:24,000, dated 1955, Photorevised 1968;
</P>
<P>(29) Año Nuevo, California, scale 1:24,000, dated 1955, Photorevised 1968;
</P>
<P>(30) Davenport, California, scale 1:24,000, dated 1955, Photorevised 1968;
</P>
<P>(31) Santa Cruz, California, scale 1:24,000, dated 1954, Photorevised 1981;
</P>
<P>(32) Felton, California, scale 1:24,000, dated 1955, Photorevised 1980;
</P>
<P>(33) Laurel, California, scale 1:24,000, dated 1955, Photoinspected 1978, Photorevised 1968;
</P>
<P>(34) Soquel, California, scale 1:24,000, dated 1954, Photorevised 1980;
</P>
<P>(35) Watsonville West, California, scale 1:24,000, dated 1954, Photorevised 1980;
</P>
<P>(36) Loma Prieta, California, scale 1:24,000, dated 1955, Photoinspected 1978, Photorevised 1968;
</P>
<P>(37) Watsonville East, California, scale 1:24,000, dated 1955, Photorevised 1980;
</P>
<P>(38) Mt. Madonna, California, scale 1:24,000, dated 1955, Photorevised 1980;
</P>
<P>(39) Gilroy, California, scale 1:24,000, dated 1955, Photorevised 1981;
</P>
<P>(40) Chittenden, California, scale 1:24,000, dated 1955, Photorevised 1980;
</P>
<P>(41) San Felipe, California, scale 1:24,000, dated 1955, Photorevised 1971; 
</P>
<P>(42) Three Sisters, California, scale 1:24,000, dated 1954, Photoinspected 1978, Photorevised 1971;
</P>
<P>(43) Cedar Mtn., California, scale 1:24,000, dated 1956, Photorevised 1971; Minor Revision 1994;
</P>
<P>(44) Cuttings Wharf, Calif.; 1949; Photorevised 1981;
</P>
<P>(45) Sears Point, Calif.; 1951; Photorevised 1968;
</P>
<P>(46) Cordelia, Calif.; 1951; Photorevised 1980; 
</P>
<P>(47) Fairfield South, Calif.; 1949; Photorevised 1980;
</P>
<P>(48) Clayton, California, scale 1:24,000, 2018;
</P>
<P>(49) Antioch South, California, scale 1:24,000, 2018;
</P>
<P>(50) Tassajara, California, scale 1:24,000, 2018;
</P>
<P>(51) Byron Hot Springs, California, scale 1:24,000, 2018;
</P>
<P>(52) Clifton Court Forebay, California, scale 1:24,000, 2018;
</P>
<P>(53) Woodward Island, California, scale 1:24,000; 2018;
</P>
<P>(54) Bouldin Island, California, scale 1:24,000, 2018;
</P>
<P>(55) Jersey Island, California, scale 1:24,000, 2018;
</P>
<P>(56) Antioch North, California, scale 1:24,000, 2018;
</P>
<P>(57) Honker Bay, California, scale 1:24,000, 2018; and
</P>
<P>(58) Vine Hill, California, scale 1:24,000, 2018.


</P>
<P>(c) <I>Boundary.</I> The San Francisco Bay viticultural area is located mainly within five counties, San Francisco, San Mateo, Santa Clara, Alameda, and Contra Costa, which border the San Francisco Bay. The area also includes portions of three other counties, Solano, Santa Cruz, and San Benito, which are in the general vicinity of the greater San Francisco Bay metropolitan area. The boundary of the San Francisco Bay viticultural area is as described below.
</P>
<P>(1) Beginning at the intersection of the 37 degree 00′ North latitude parallel with State Route 152 on the Pacheco Peak Quadrangle.
</P>
<P>(2) Then proceed in a northwesterly direction in a straight line to the intersection of Coyote Creek with the township line dividing Township 9 South from Township 10 South on the Gilroy Hot Springs Quadrangle.
</P>
<P>(3) Then proceed in a northwesterly direction in a straight line to the intersection of the township line dividing Township 8 South from Township 9 South with the range line dividing Range 3 East from Range 4 East on the Mt. Sizer Quadrangle.
</P>
<P>(4) Then proceed in a northwesterly direction in a straight line (across the Morgan Hill Quadrangle) to the intersection of the township line dividing Township 7 South from Township 8 South with the range line dividing Range 2 East from Range 3 East on the Lick Observatory Quadrangle.
</P>
<P>(5) Then proceed in a northwesterly direction in a straight line to the intersection of State Route 130 with the township line dividing Township 6 South from Township 7 South on the San Jose East Quadrangle.
</P>
<P>(6) Then proceed in a northeasterly direction following State Route 130 to its intersection with the range line dividing Range 1 East from Range 2 East on the Calaveras Reservoir Quadrangle.
</P>
<P>(7) Then proceed north following this range line to its intersection with the Hetch Hetchy Aqueduct on the La Costa Valley Quadrangle.
</P>
<P>(8) Then proceed in a northeasterly direction in a straight line following the Hetch Hetchy Aqueduct to the western boundary of Section 14 in Township 4 South, Range 2 East on the Mendenhall Springs Quadrangle.
</P>
<P>(9) Then proceed south along the western boundary of Section 14 in Township 4 South, Range 2 East to the southwest corner of Section 14 on the Mendenhall Springs Quadrangle.
</P>
<P>(10) Then proceed east along the southern boundary of Section 14 in Township 4 South, Range 2 East to the southeast corner of Section 14 on the Mendenhall Springs Quadrangle.
</P>
<P>(11) Then proceed south along the western boundary of Section 24 in Township 4 South, Range 2 East to the southwest corner of Section 24 on the Mendenhall Springs Quadrangle.
</P>
<P>(12) Then proceed east along the southern boundary of Section 24 in Township 4 South, Range 2 East and Section 19 in Township 4 South, Range 3 East to the southeast corner of Section 19 on the Mendenhall Springs Quadrangle.
</P>
<P>(13) Then proceed northeast in a straight line approximately 3.2 miles to BM 1878 in Section 14 on the Cedar Mtn. Quadrangle.
</P>
<P>(14) Then proceed north in a straight line approximately 4.2 miles to BM 1600 adjacent to Tesla Road in Section 26, Township 3 South, Range 3 East on the Midway Quadrangle.
</P>
<P>(15) Then proceed north-northwest in a straight line approximately 2.8 miles to Patterson Pass, BM 1602, in Section 10, Township 3 South, Range 3 East, on the Altamont Quadrangle.
</P>
<P>(16) Then proceed north-northwest in a straight line approximately 2.7 miles to the intersection of the eastern boundary of Section 32 with Highway 580 in Township 2 South, Range 3 East.
</P>
<P>(17) Then proceed north-northeast in a straight line approximately 1.1 miles to an unnamed peak, elevation 1147, in Section 28, Township 2 South, Range 3 East.
</P>
<P>(18) Then proceed north-northwest in a straight line approximately 1 mile to BM 720 in Section 21, Township 2 South, Range 3 East, and proceed northwest in a straight line approximately 1.8 miles to the northeast corner of Section 18 on the Byron Hot Springs Quadrangle, Township 2 South, Range 3 East.
</P>
<P>(19) Then proceed due west along the northern boundaries of Section 18 and Section 13 (Township 2 South, Range 2 East) to a point approximately 400 feet due south of Brushy Peak on the Byron Hot Springs Quadrangle.
</P>
<P>(20) Then proceed due north to Brushy Peak (elevation 1,702) on the Byron Hot Springs Quadrangle.
</P>
<P>(21) Then proceed in a northwesterly direction in a straight line (across the Tassajara and Diablo Quadrangles) to Mt. Diablo (elevation 3,849) on the Clayton Quadrangle.


</P>
<P>(22) Then proceed in a northwesterly direction in a straight line to the intersection of Kirker Pass Road and Hess Road on the Clayton (2018 edition) map.
</P>
<P>(23) Proceed northeasterly along Kirker Pass Road to its intersection with Nortonville Road.
</P>
<P>(24) Proceed east-northeast in a straight line for 2.5 miles, crossing onto the Antioch South map, to the intersection of Somersville Road and Donlan Boulevard.


</P>
<P>(25) Proceed southeasterly in a straight line for 2.5 miles to the intersection of the Stewartville Trail and the Contra Loma Trail.
</P>
<P>(26) Proceed southwesterly along Stewartville Trail for 1.9 miles to the intersection of Oil Canyon Trail, Stewartville Trail, and Chadbourne Road.
</P>
<P>(27) Proceed southeast in a straight line for 3 miles to the southern terminus of Tour Way.
</P>
<P>(28) Proceed southeast in a straight line for 0.6 miles to the intersection of Chadbourne Road and Deer Valley Road.
</P>
<P>(29) Proceed southerly along Deer Valley Road for 3.1 miles to its intersection with Marsh Creek.
</P>
<P>(30) Proceed southeasterly along Marsh Creek for 2.4 miles, crossing onto the Tassajara (2018 edition) map, to the creek's intersection with Miwok Trail.
</P>
<P>(31) Proceed north-northeast in a straight line for 2.9 miles, crossing onto the Byron Hot Springs (2018 edition) map, to the intersection of Kellogg Creek and Walnut Boulevard.
</P>
<P>(32) Proceed southeast in a straight line for 4.3 miles to the intersection of Brushy Creek and Vasco Road.
</P>
<P>(33) Proceed northeasterly along Brushy Creek, crossing onto the Clifton Court Forebay map, to the confluence of Brushy Creek with the western shore of Italian Slough to a point due west of the stream gauging station on Italian Slough, just west of Widdows Island and the shared Contra Costa-San Joaquin County line.
</P>
<P>(34) Proceed due east to the stream gauging station, then proceed northeast for 5.5 miles, crossing onto the Woodward Island map, to the intersection of the Mokelumne Aqueduct and Orwood Road.
</P>
<P>(35) Proceed north-northwest in a straight line for 4.1 miles to the intersection of Holland Tract Road and the 10-foot elevation contour.
</P>
<P>(36) Proceed north for 1.9 miles along Holland Tract Road, crossing onto the Bouldin Island map, and continuing to the northernmost point of Holland Tract Road.
</P>
<P>(37) Proceed southeast in a straight line for 2.7 miles, crossing onto the Jersey Island map, to the intersection of Wells Road and Sandmound Road.
</P>
<P>(38) Proceed northwest in a straight line for 0.7 mile to the intersection of Bethel Island Road and the shoreline of Dutch Slough Road.
</P>
<P>(39) Proceed westerly along the shoreline of Dutch Slough and Big Break, crossing onto the Antioch North map, and continuing westerly along the shoreline of New York Slough, crossing onto the Honker Bay (2018 edition) map, and continuing westerly along the shoreline and onto the Vine Hill (2018 edition) map to the intersection of the shoreline and Interstate 680 at the Benicia-Martinez Bridge.


</P>
<P>(40) Then proceed generally north following Interstate 680, crossing over and back on the Benicia Quadrangle map and continuing over the Fairfield South Quadrangle map, to its intersection with the Southern Pacific railroad track at Cordelia, Section 12, T4N/R3W, on the Cordelia Quadrangle map.
</P>
<P>(41) Then proceed generally west along the Southern Pacific railroad track to its intersection with the Napa and Solano Counties boundary line in Jameson Canyon at Creston, Section 9, T4N/R3W, on the Cordelia Quadrangle map.
</P>
<P>(42) Then proceed generally south-southeast, followed by straight west along the Napa and Solano Counties boundary line; continue straight west, crossing over the Cuttings Wharf Quadrangle map, to its intersection with the east shoreline of Sonoma Creek slough, which coincides with the Highway 37 bridge on the Solano County side of the creek, T4N/R5W, on the Sears Point Quadrangle.
</P>
<P>(43) Then proceed generally southeast along the north and east shorelines of San Pablo Bay, also known as the San Pablo Bay National Wildlife Refuge, crossing over the Cuttings Wharf Quadrangle map, to its intersection with the Breakwater line, located within the Vallejo City boundary and 0.7 mile west-southwest of the beacon, T3N/R4W, on the Mare Island Quadrangle.
</P>
<P>(44) Then proceed straight south-southwest 1.2 miles to its intersection with the San Pablo Bay shoreline at BM 14, west of Davis Point, T3N/R4W, on the Mare Island Quadrangle.
</P>
<P>(45) Then proceed generally south along the contiguous eastern shorelines of San Pablo Bay and San Francisco Bay, crossing over the Richmond and San Quentin Quadrangle maps, to its intersection with the San Francisco/Oakland Bay Bridge on the Oakland West Quadrangle.
</P>
<P>(46) Then proceed west on the San Francisco/Oakland Bay Bridge to the San Francisco County shoreline on the San Francisco North Quadrangle.
</P>
<P>(47) Then proceed along the San Francisco, San Mateo, and Santa Cruz County shoreline (across the Quadrangles of San Francisco South, Montara Mountain, Half Moon Bay, San Gregorio, Pigeon Point, Franklin Point, Año Nuevo and Davenport) to the place where Majors Creek flows into the Pacific Ocean on the Santa Cruz Quadrangle.
</P>
<P>(48) Then proceed northeasterly along Majors Creek to its intersection with the 400 foot contour line on the Felton Quadrangle.
</P>
<P>(49) Then proceed along the 400 foot contour line in a generally easterly/northeasterly direction to its intersection with Bull Creek on the Felton Quadrangle.
</P>
<P>(50) Then proceed along Bull Creek to its intersection with Highway 9 on the Felton Quadrangle.
</P>
<P>(51) Then proceed along Highway 9 in a northerly direction to its intersection with Felton Empire Road.
</P>
<P>(52) Then proceed along Felton Empire Road in a westerly direction to its intersection with the 400 foot contour line on the Felton Quadrangle.
</P>
<P>(53) Then proceed along the 400 foot contour line (across the Laurel, Soquel, Watsonville West and Loma Prieta Quadrangles) to its intersection with Highway 152 on the Watsonville East Quadrangle.
</P>
<P>(54) Then proceed along Highway 152 in a northeasterly direction to its intersection with the 600 foot contour line just west of Bodfish Creek on the Watsonville East Quadrangle.
</P>
<P>(55) Then proceed in a generally east/southeasterly direction along the 600 foot contour line (across the Mt. Madonna and Gilroy Quadrangles), approximately 7.3 miles, to the first intersection of the western section line of Section 30, Township 11 South, Range 4 East on the Chittenden Quadrangle.
</P>
<P>(56) Then proceed south along the section line approximately 1.9 miles to the south township line at Section 31, Township 11 South, Range 4 East on the Chittenden Quadrangle.
</P>
<P>(57) Then proceed in an easterly direction along the township line (across the San Felipe Quadrangle), approximately 12.4 miles to the intersection of Township 11 South and Township 12 South and Range 5 East and Range 6 East on the Three Sisters Quadrangle.
</P>
<P>(58) Then proceed north along the Range 5 East and Range 6 East range line approximately 5.5 miles to Pacheco Creek on the Pacheco Creek Quadrangle.
</P>
<P>(59) Then proceed northeast along Pacheco Creek approximately .5 mile to the beginning point.
</P>
<CITA TYPE="N">[T.D. ATF-407, 64 FR 3024, Jan. 20, 1999, as amended by T.D. TTB-48, 71 FR 34525, June 15, 2006; T.D. TTB-67, 73 FR 12880, Mar. 11, 2008; T.D. TTB-191, 89 FR 18801, Mar. 15, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.158" NODE="27:1.0.1.1.7.3.45.138" TYPE="SECTION">
<HEAD>§ 9.158   Mendocino Ridge.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Mendocino Ridge.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Mendocino Ridge viticultural area are four 1:62,500 scale U.S.G.S. topographical maps. They are titled:
</P>
<P>(1) Ornbaun Valley Quadrangle, California, 15 minute series topographic map, 1960;
</P>
<P>(2) Navarro Quadrangle, California, 15 minute series topographic map, 1961;
</P>
<P>(3) Point Arena Quadrangle, California, 15 minute series topographic map, 1960;
</P>
<P>(4) Boonville Quadrangle, California, 15 minute series topographic map, 1959.
</P>
<P>(c) <I>Boundary.</I> The Mendocino Ridge viticultural area is located within Mendocino County, California. Within the boundary description that follows, the viticultural area starts at the 1200 foot elevation (contour line) and encompasses all areas at or above the 1200 foot elevation line. The boundaries of the Mendocino Ridge viticultural area, using landmarks and points of reference found on appropriate U.S.G.S. maps, follow.
</P>
<P>(1) Beginning at the Mendocino/Sonoma County line at the mouth of the Gualala River, where the Gualala River empties into the Pacific Ocean, in section 27 of Township 11 North (T11N), Range 5 West (R5W), located in the southeastern portion of U.S.G.S. 15 minute series map, “Point Arena, California;”
</P>
<P>(2) Then following the Mendocino/Sonoma County line eastward to the southeast corner of section 8 in T11N/R13W, on the U.S.G.S. 15 minute map, “Ornbaun Valley, California;”
</P>
<P>(3) Then from the southeast corner of section 8 in T11N/R13W directly north approximately 3 + miles to the southwest corner of section 9 in T12N/R13W;
</P>
<P>(4) Then proceeding in a straight line in a northwesterly direction to the southwestern corner of section 14 in T13N/R14W;
</P>
<P>(5) Then directly north along the western line of section 14 in T13N/R14W to a point on the western line of section 14 approximately 
<FR>1/4</FR> from the top where the Anderson Valley viticultural area boundary intersects the western line of section 14 in T13N/R14W;
</P>
<P>(6) Then in a straight line, in a northwesterly direction, to the intersection of an unnamed creek and the south section line of section 14, T14N/R15W, on the U.S.G.S. 15 minute series map, “Boonville, California;”
</P>
<P>(7) Then in a westerly direction along the south section lines of sections 14 and 15 in T14N/R15W to the southwest corner of section 15, T14N/R15W, on the U.S.G.S. 15 minute series map, “Navarro, California;”
</P>
<P>(8) Then in a northerly direction along the western section lines of sections 15, 10, and 3 in T14N/R15W in a straight line to the intersection of the Navarro River on the western section line of section 3 in T14N/R15W;
</P>
<P>(9) Then in a northwesterly direction along the Navarro River to the mouth of the river where it meets the Pacific Ocean in section 5 of T15N/R17W;
</P>
<P>(10) Then in a southern direction along the Mendocino County coastline to the Mendocino/Sonoma County line to the beginning point at the mouth of the Gualala River in section 27 of T11N/R15W, on the U.S.G.S. 15 minute series map, “Point Arena, California.”
</P>
<CITA TYPE="N">[T.D. ATF-392, 62 FR 55516, Oct. 27, 1997]


</CITA>
</DIV8>


<DIV8 N="§ 9.159" NODE="27:1.0.1.1.7.3.45.139" TYPE="SECTION">
<HEAD>§ 9.159   Yorkville Highlands.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Yorkville Highlands.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Yorkville Highlands viticultural area are the following six U.S.G.S. topographical maps (7.5 minute series, 1:24000 scale):
</P>
<P>(1) Gube Mountain, Calif., provisional edition 1991;
</P>
<P>(2) Big Foot Mountain, Calif., provisional edition 1991;
</P>
<P>(3) Cloverdale, Calif., 1960, photoinspected 1975;
</P>
<P>(4) Ornbaun Valley Quadrangle, Calif., provisional edition, 1991;
</P>
<P>(5) Yorkville, Calif., provisional edition, 1991;
</P>
<P>(6) Hopland, Calif., 1960, photoinspected 1975.
</P>
<P>(c) <I>Boundary.</I> The Yorkville Highlands viticultural area is located in Mendocino County, California. The boundary is as follows:
</P>
<P>(1) The beginning point is Benchmark 680, located in Section 30, T. 12 N., R. 13 W., on the Ornbaum Valley quadrangle map;
</P>
<P>(2) From the beginning point, the boundary proceeds in a straight line in a northeasterly direction to a point intersecting the North Fork of Robinson Creek and the Section 20, T. 13 N., R. 13 W.;
</P>
<P>(3) The boundary then proceeds in a straight line in a southeasterly direction to the summit of Sanel Mountain, located at the southeast corner of Section 30, T. 13 N., R. 12 W., on the Yorkville quadrangle map;
</P>
<P>(4) The boundary then proceeds in a straight line in a southeasterly direction until it reaches the southeast corner of Section 15, T. 12 N., R 11 W., on the Hopland quadrangle map;
</P>
<P>(5) The boundary then proceeds south, following the eastern boundaries of Sections 22 and 27, T. 12 N., R 11 W., until it reaches the Mendocino-Sonoma County line on the Cloverdale quadrangle map;
</P>
<P>(6) The boundary then follows the Mendocino-Sonoma county line west, south and west until it reaches the southwest corner of Section 32, T. 12 N., R. 11 W.;
</P>
<P>(7) The boundary then diverges from the county line and proceeds in a northwesterly direction, traversing the Big Foot Mountain quadrangle map, until it reaches the southwest corner of Section 5, T. 12 N., R. 13 W. on the Ornbaun Valley quadrangle map;
</P>
<P>(8) The boundary proceeds in a straight line in a northerly direction until it reaches the beginning point at Benchmark 680.
</P>
<CITA TYPE="N">[T.D. ATF-397, 63 FR 16904, Apr. 7, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 9.160" NODE="27:1.0.1.1.7.3.45.140" TYPE="SECTION">
<HEAD>§ 9.160   Yountville.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Yountville.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Yountville viticultural area are four 1:24,000 Scale U.S.G.S. topography maps. They are titled:
</P>
<P>(1) Napa, CA 1951 photorevised 1980;
</P>
<P>(2) Rutherford, CA 1951 photorevised 1968;
</P>
<P>(3) Sonoma, CA 1951 photorevised 1980;
</P>
<P>(4) Yountville, CA 1951 photorevised 1968.
</P>
<P>(c) <I>Boundary.</I> The Yountville viticultural area is located in the State of California, entirely within the Napa Valley viticultural area. The boundaries of the Yountville viticultural area, using landmarks and points of reference found on appropriate U.S.G.S. maps are as follows:
</P>
<P>(1) Beginning on the Rutherford quadrangle map at the intersection of the 500 foot contour line with an unnamed stream known locally as Hopper Creek north of the center of Section 3, T6N, R5W, Mount Diablo Meridan (MDM);
</P>
<P>(2) Then along the unnamed stream (Hopper Creek) southeasterly, and at the fork in Section 3, northeasterly along the stream to the point where the stream intersects with an unnamed dirt road in the northwest corner of Section 2, T6N, R5W, MDM;
</P>
<P>(3) Then in a straight line to the light duty road to the immediate northeast in Section 2, then along the light duty road in a northeasterly direction to the point at which the road turns 90 degrees to the left;
</P>
<P>(4) Then northerly along the light duty road 625 feet, then northeasterly (N 40° by 43′) in a straight line 1,350 feet, along the northern property line of Assessor's Parcel Number 27-380-08, to State Highway 29, then continuing in a straight line approximately 500 feet to the peak of the 320 plus foot hill along the western edge of the Yountville hills;
</P>
<P>(5) Then east to the second 300 foot contour line, then along said contour line around the Yountville hills to the north to the point at which the 300 foot line exits the Rutherford quadrangle for the second time;
</P>
<P>(6) Then, on the Yountville quadrangle map, in a straight line in a northeasterly direction approximately N34° by 30′ E approximately 1,000 feet to the 90 degree bend in the unimproved dirt road shown on the map, then along that road, which coincides with a fence line to the intersection of Conn Creek and Rector Creek;
</P>
<P>(7) Then along Rector Creek to the northeast past Silverado Trail to the Rector Reservoir spillway entrance, then south approximately 100 feet to the 400 foot contour line, then southerly along the 400 foot contour line approximately 4200 feet to the intersection with a gully in section 30, T7N, R4W, MDM;
</P>
<P>(8) Then southwesterly down the center of the gully approximately 800 feet to the medium duty road known as Silverado Trail, then southeasterly along the Silverado Trail approximately 590 feet to the medium duty road known locally Yountville Cross Road;
</P>
<P>(9) Then southwesterly along the Yountville Cross Road (denoted as GRANT BDY on the map) approximately 4,700 feet to the main branch of the Napa River, then following the western boundary of the Stags Leap District viticultural area, first southerly down the center of the Napa River approximately 21,000 feet, then leaving the Napa River northeasterly in a straight line approximately 900 feet to the intersection of the Silverado Trail with an intermittent stream at the 60 foot contour line in T6N, R4W, MDM;
</P>
<P>(10) Then along the Silverado Trail southerly approximately 3,200 feet, passing into the Napa quadrangle, to a point which is east of the confluence of Dry Creek with the Napa River; then west approximately 600 feet to said confluence; then northwesterly along Dry Creek approximately 3,500 feet, passing into the Yountville quadrangle to a fork in the creek; then northwesterly along the north fork of Dry Creek approximately 5,700 feet to the easterly end of the light duty road labeled Ragatz Lane;
</P>
<P>(11) Then southwesterly along Ragatz Lane to the west side of State Highway 29, then southerly along Highway 29 by 982 feet to the easterly extension of the north line boundary of Napa County Assessor's parcel number 034-170-015, then along the north line of APN 034-170-015 and its extension westerly 3,550 feet to the dividing line Between R4W and R5W on the Napa quadrangle, then southwesterly approximately 1000 feet to the peak denoted as 564 (which is about 5,500 feet easterly of the northwest corner of the Napa quadrangle); then southwesterly approximately 4,000 feet to the peak northeast of the reservoir gauging station denoted as 835;
</P>
<P>(12) Then southwesterly approximately 1,500 feet to the reservoir gauging station, then west to the 400 foot contour line on the west side of Dry Creek, then northwesterly along the 400 foot contour line to the point where the contour intersects the north line of Section 10. T6N, R5W, MDM, immediately adjacent to Dry Creek on the Rutherford, CA map;
</P>
<P>(13) Then northwesterly along Dry Creek approximately 6,500 feet to BM503, then northeasterly approximately 3,000 feet to the peak denoted as 1478, then southeasterly approximately 2,300 feet to the beginning of the creek known locally as Hopper Creek, then southeasterly along Hopper Creek approximately 2,300 feet to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-410, 64 FR 13513, Mar. 19, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 9.161" NODE="27:1.0.1.1.7.3.45.141" TYPE="SECTION">
<HEAD>§ 9.161   Oak Knoll District of Napa Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Oak Knoll District of Napa Valley”. 
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Oak Knoll District of Napa Valley viticultural area are the following United States Geological Survey Quadrangle maps (7.5 Minute Series): 
</P>
<P>(1) Napa, California, 1951 (Photo revised 1980); and 
</P>
<P>(2) Yountville, California, 1951 (Photo revised 1968). 
</P>
<P>(c) <I>Boundaries.</I> The Oak Knoll District of Napa Valley viticultural area is located entirely within Napa County, California. The boundaries of the Oak Knoll District of Napa Valley viticultural area, using landmarks and points of reference found on the appropriate U.S.G.S. maps, are as follows: 
</P>
<P>(1) Beginning at the intersection of State Highway 29 and Trancas Road in the city of Napa on the Napa, CA quadrangle map; 
</P>
<P>(2) Proceed easterly along Trancas Road until it meets the Napa River; 
</P>
<P>(3) Proceed southerly along the Napa River approximately 3,500 feet to its confluence with Milliken Creek; 
</P>
<P>(4) Continue northerly up Milliken Creek to its intersection with Monticello Road; 
</P>
<P>(5) Then proceed westerly along Monticello Road to its intersection with Silverado Trail; 
</P>
<P>(6) Then proceed northerly and then northeasterly along Silverado Trail to its intersection with an unimproved dirt road located approximately 1,300 feet north of the intersection of Silverado Trail and Oak Knoll Avenue; 
</P>
<P>(7) From that point, proceed west in a straight line to the confluence of Dry Creek and the Napa River; 
</P>
<P>(8) Then proceed northwesterly along Dry Creek onto the Yountville map to the fork in the creek; then northwesterly along the north fork of Dry Creek to its intersection with the easterly end of the light-duty road labeled Ragatz Lane; 
</P>
<P>(9) Proceed southwesterly along Ragatz Lane to the west side of State Highway 29; 
</P>
<P>(10) Then proceed southerly along the west side of State Highway 29 for 982 feet to a point marking the easterly extension of the northern boundary of Napa County Assessor's parcel number 034-170-015 (marked in part by a fence along the southern edge of the orchard shown along the west side of State Highway 29 just above the bottom of the Yountville map); 
</P>
<P>(11) Then proceed westerly for 3,550 feet along the northern boundary of Napa County Assessor's parcel number 034-170-015 and its westerly extension to the dividing line between Range 5 West and Range 4 West on the Napa, CA map; 
</P>
<P>(12) Then proceed southwest in a straight line to the peak marked with an elevation of 564 feet; then south-southwest in a straight line to the peak marked with an elevation of 835 feet; 
</P>
<P>(13) Then proceed southwest in a straight line approximately 1,300 feet to the reservoir gauging station located on Dry Creek; then proceed west in a straight line across Dry Creek to the 400 foot contour line; 
</P>
<P>(14) Proceed along the 400-foot contour line in a generally southeasterly direction to its intersection with the line dividing Range 5 West and Range 4 West; then proceed south along that dividing line approximately 2,400 feet to the center of Redwood Road; 
</P>
<P>(15) Then proceed southerly and then easterly along Redwood Road to the point of beginning at Highway 29.
</P>
<CITA TYPE="N">[T.D. TTB-9, 69 FR 8564, Feb. 25, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 9.162" NODE="27:1.0.1.1.7.3.45.142" TYPE="SECTION">
<HEAD>§ 9.162   Sta. Rita Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Sta. Rita Hills”. For purposes of part 4 of this chapter, “Sta. Rita Hills” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the Sta. Rita Hills viticultural area are five United States Geological Survey (USGS) 7.5 Minute Series maps titled:
</P>
<P>(1) “Lompoc, Calif.,” edition of 1959 (photorevised in 1982). 
</P>
<P>(2) “Lompoc Hills, Calif.,” edition of 1959 (photoinspected 1971). 
</P>
<P>(3) “Los Alamos, Calif.,” edition of 1959. 
</P>
<P>(4) “Santa Rosa Hills, Calif.,” edition of 1959 (photoinspected 1978). 
</P>
<P>(5) “Solvang, Calif.,” edition of 1959 (photorevised 1982). 
</P>
<P>(6) “Zaca Creek, Calif.,” edition of 1959.
</P>
<P>(c) <I>Boundary.</I> The Sta. Rita Hills viticultural area is located in Santa Barbara County, California. The boundary is as follows:
</P>
<P>(1) The beginning point is found on the Solvang, California U.S.G.S. Quadrangle map at an unnamed hilltop, elevation 1600 feet, in section 27, T.6N, R. 32W, on the Solvang, Calif., Quadrangle U.S.G.S. map. 
</P>
<P>(2) Then proceed north and slightly west 2.3 miles to an unnamed hilltop elevation 1174 feet, Section 15, T.6N., R. 32W. 
</P>
<P>(3) Proceed west-northwest in a straight line 0.5 mile to the intersection of Santa Rosa Road and an unnamed, unimproved road that runs just north of a marked gaging station.
</P>
<P>(4) Proceed west along the unnamed, unimproved road approximately 0.4 mile to a “T” intersection with an unnamed, unimproved road and the 320-foot elevation contour, Santa Rosa Land Grant, T. 6N, R. 32W.
</P>
<P>(5) Proceed northwest along the 320-foot elevation contour, crossing onto the Santa Rosa Hills, Calif., Quadrangle U.S.G.S. map, then continue northwest, north, and northeast along the meandering 320-foot elevation contour for approximately 1.2 miles, crossing onto the Solvang, Calif., Quadrangle U.S.G.S. map, and continue east then north along the 320-foot elevation contour approximately 0.5 miles, crossing onto the Zaca Creek, Calif., Quadrangle U.S.G.S. map, to the intersection of the 320-foot elevation contour with an unnamed, unimproved north-south road that follows the length of the Cañada de los Palos Blancos, San Carlos de Jonata Land Grant, T. 6N, R. 32W.
</P>
<P>(6) Proceed north-northwest along the unnamed, unimproved road 1.2 miles, crossing onto the Los Alamos, Calif., Quadrangle U.S.G.S. map, and continue along the road 1.3 miles to the marked 635-foot elevation point at the intersection of the road and a 4-wheel drive trail, San Carlos de Jonata Land Grant, T. 7N, R. 32W.
</P>
<P>(7) Proceed northwest in a straight line approximately 1.3 miles to an unnamed hilltop, elevation 1443 feet. Section 20, T. 7N, R. 32W.
</P>
<P>(8) Proceed west 1.4 miles to an unnamed hilltop elevation 1479 feet. Section 24, T.7N., R. 33W. 
</P>
<P>(9) Proceed north 1.2 miles to an unnamed hilltop elevation 1705 feet. Section 13, T.7N., R. 33W. 
</P>
<P>(10) Proceed northwest approximately 2 miles to an unnamed hilltop elevation 1543. Section 10, T.7N., R. 33W. 
</P>
<P>(11) Proceed west and slightly south 1.6 miles to an unnamed hilltop elevation 935 feet within the northern section of the Santa Rosa Land Grant. T.7N., R. 33W. 
</P>
<P>(12) Proceed south by southwest 1.5 miles to an unnamed hilltop elevation 605 feet in the northern section of the Santa Rosa Land Grant. T.7N., R. 33W. 
</P>
<P>(13) Proceed west by southwest approximately 2 miles to the point where California Highway 246 intersects with the 200-foot elevation contour line comprising the western border of the Santa Rita Hills, within the Santa Rosa Land Grant. T.7N., R. 34W, on the Lompoc, Calif., Quadrangle U.S.G.S. map. 
</P>
<P>(14) Proceed following the 200 foot elevation contour line south along the western border of the Santa Rita Hills to the extreme southern tip of the 200 foot elevation contour that is .6 miles due west of an unnamed hilltop 361 feet in elevation in the Canada de Salispuedes Land Grant. T.6N., R. 34W. 
</P>
<P>(15) Proceed southeast 2.35 miles to an unnamed hilltop elevation 1070 feet. Section 18, T.6N., R. 33W, on the Lompoc Hills, Calif., Quadrangle U.S.G.S. map. 
</P>
<P>(16) Proceed east and slightly south 1.95 miles to an unnamed hilltop elevation 921 feet. Section 16, T.6N., R. 33W, on the Santa Rosa Hills, Calif., Quadrangle U.S.G.S. map. 
</P>
<P>(17) Proceed east by southeast 1.35 miles to an unnamed hilltop elevation 1307 feet at intersection between Sections 22 and 23. T.6N., R. 33W. 
</P>
<P>(18) Proceed east 2.35 miles to an unnamed hilltop elevation 1507 feet in the southern area of the Santa Rosa Land Grant. T.6N., 32W. 
</P>
<P>(19) Proceed east by southeast 2.1 miles to an unnamed hilltop elevation 1279 feet in the southern area of the Santa Rosa Land Grant. T.6N., 32W. 
</P>
<P>(20) Then proceed east by southeast 1.45 miles to the point of the beginning.
</P>
<P>(d) From July 30, 2001, until January 5, 2006, this viticultural area was named “Santa Rita Hills”. Effective January 6, 2006, the name of this viticultural area is “Sta. Rita Hills”. Existing certificates of label approval showing “Santa Rita Hills” as the appellation of origin are revoked by operation of this regulation on January 6, 2007.
</P>
<CITA TYPE="N">[T.D. ATF-454, 66 FR 29479, May 31, 2001, as amended by T.D. TTB-37, 70 FR 72713, Dec. 7, 2005; T.D. TTB 141, 81 FR 56504, Aug. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.163" NODE="27:1.0.1.1.7.3.45.143" TYPE="SECTION">
<HEAD>§ 9.163   Salado Creek.</HEAD>
<P>(a) The name of the viticultural area described in this section is “Salado Creek”.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the Salado Creek viticultural area are two 1:24,000 Scale USGS topographic maps. They are titled:
</P>
<P>(1) Patterson, California Quadrangle,—Stanislaus Co., 7.5 Minute Series, edition of 1953; photorevised 1971, photoinspected 1978; and
</P>
<P>(2) Crows Landing, California Quadrangle,—Stanislaus Co., 7.5 Minute Series, edition of 1952, photorevised 1980.
</P>
<P>(c) <I>Boundaries.</I> The Salado Creek viticultural area is located in Stanislaus County, California, just southwest of the town of Patterson. The Salado Creek viticultural area boundary is as follows:
</P>
<P>(1) Beginning on the Patterson Quadrangle map, section 19, T6S, R8E, at the intersection of Interstate Highway 5 and Fink Road, proceed northwest for 4.25 miles along Interstate 5 to its junction with an unnamed light duty road in section 35, T5S, R7E; then
</P>
<P>(2) Follow the unnamed light duty road for approximately 0.45 miles, going east across the California Aqueduct and then north, to the road's intersection with the light duty road atop the levee on the east bank of the Delta-Mendota Canal in section 35, T5S, R7E; then
</P>
<P>(3) Proceed southeast approximately 0.3 miles along the Delta-Mendota Canal levee road to its intersection with an unnamed unimproved road in section 35, T5S, R7E; then
</P>
<P>(4) Proceed north and then east on the unimproved road for approximately 0.4 mile to its intersection with Baldwin Road and continue east on Baldwin Road approximately one mile, crossing Salado Creek, to the Baldwin Road's intersection with Ward Avenue at the eastern boundary line of section 36, T5S, R7E; then,
</P>
<P>(5) Proceed north on Ward Avenue approximately 400 feet to its intersection with the 2nd Lift drainage canal in section 31, T5S, R8E; then
</P>
<P>(6) Follow the 2nd Lift canal southeast approximately 0.75 miles to its intersection with Elfers Road in section 31, T5S, R8E; then
</P>
<P>(7) Proceed east on Elfers Road approximately for 0.45 miles, crossing onto the Crows Landing Quadrangle map, to its intersection with an unnamed, unimproved road on the south side of Elfers Road that also marks the western boundary of section 6, T6S, R8E; then
</P>
<P>(8) Proceed straight south on the unimproved road approximately one mile to its intersection with Marshall Road in section 6, T6S, R8E; then
</P>
<P>(9) Follow Marshall Road straight west 1.1 miles, crossing onto the USGS Patterson map, to its intersection with Ward Avenue in section 6, T6S, R8E; then
</P>
<P>(10) Proceed south 1.65 miles on Ward Avenue to its intersection with the California Aqueduct, then continue generally south approximately 1.4 miles along the aqueduct to its intersection with Fink Road in section 19, T6S, R8E; then
</P>
<P>(11) Follow Fink Road northwest for approximately 0.5 miles, returning to the beginning point at the intersection of Interstate Highway 5 and Fink Road in section 19, T6S, R8E.
</P>
<CITA TYPE="N">[T.D. TTB-13, 69 FR 38833, June 29, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 9.164" NODE="27:1.0.1.1.7.3.45.144" TYPE="SECTION">
<HEAD>§ 9.164   River Junction.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “River Junction.” 
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the River Junction viticultural area are the following two 1:24,000 Scale U.S.G.S. topographical maps. They are titled:
</P>
<P>(1) Ripon, CA 1969, photorevised 1980; 
</P>
<P>(2) Vernalis, CA 1969, photorevised 1980.
</P>
<P>(c) <I>Boundaries.</I> The River Junction AVA is located in southern San Joaquin County, California. The boundaries are as follows: 
</P>
<P>(1) Beginning on the Vernalis, CA quadrangle map at the intersection of the secondary highway Airport Way and the San Joaquin River levee, near Benchmark 35 in T3S/R6E; 
</P>
<P>(2) Then in a southeasterly direction, follow the levee along the San Joaquin River onto the Ripon, CA quadrangle map; 
</P>
<P>(3) Then in a northerly direction around Sturgeon Bend in section 18 T3S/R7E; 
</P>
<P>(4) Then continuing in a generally southeasterly, then northeasterly direction along the levee adjoining the Stanislaus River through sections 19, 20 and 17 to the point where the levee intersects sections 17 and 8; 
</P>
<P>(5) Then continuing in a northerly direction along the levee in section 8 for approximately 1,000 feet; 
</P>
<P>(6) Then in a straight line in a northwesterly direction for approximately 100 feet to the intersection with Division Road; 
</P>
<P>(7) Then in a southwesterly, then northwesterly direction along Division Road through sections 8, 17, 18 and 7 to the intersection with the secondary highway Airport Way; 
</P>
<P>(8) Then in a southwesterly direction along Airport Way onto the Vernalis quadrangle map to the starting point at the intersection of Airport Way and the San Joaquin River levee T3S/R6E.
</P>
<CITA TYPE="N">[T.D. ATF-452, 66 FR 23592, May 9, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 9.165" NODE="27:1.0.1.1.7.3.45.145" TYPE="SECTION">
<HEAD>§ 9.165   Applegate Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Applegate Valley.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate map for determining the boundaries of the Applegate Valley viticultural area is one U.S.G.S. map titled “Medford, Oregon; California” (NK 10-5) scale 1:250,000 (1955, revised 1976).
</P>
<P>(c) <I>Boundaries.</I> The Applegate Valley viticultural area is located in the State of Oregon within Jackson and Josephine Counties, and entirely within the existing Rogue Valley viticultural area. The boundaries are as follows:
</P>
<P>(1) Beginning at the confluence of the Applegate River with the Rogue River approximately 5 miles west of Grants Pass, the boundary proceeds due west to the boundary of the Siskiyou National Forest north of Dutcher Creek;
</P>
<P>(2) Then in a straight line in a southerly and westerly direction along the boundary of the Siskiyou National Forest to Highway 199;
</P>
<P>(3) Then in a straight line easterly to the peak of Roundtop Mountain (4693 feet);
</P>
<P>(4) Then in a straight line easterly and southerly to the peak of Mungers Butte;
</P>
<P>(5) Then in a straight line southerly and westerly to Holcomb Peak;
</P>
<P>(6) Then in a generally southeasterly direction along the eastern boundary of the Siskiyou National Forest until it joins the northern boundary of the Rogue River National Forest;
</P>
<P>(7) Then easterly along the northern boundary of the Rogue River National forest to a point due south of the peak of Bald Mountain;
</P>
<P>(8) Then due north to the peak of Bald Mountain (5635 feet);
</P>
<P>(9) Then in a straight-line northerly and westerly to the lookout tower on Anderson Butte;
</P>
<P>(10) Then in a straight line northerly and westerly to the peak of an unnamed mountain with an elevation of 3181 feet;
</P>
<P>(11) Then in a straight line northerly and westerly to the peak of Timber Mountain;
</P>
<P>(12) Then in a straight line westerly and southerly to the middle peak of Billy Mountain;
</P>
<P>(13) Then, northerly and westerly by straight lines connecting a series of five unnamed peaks with elevations of approximately 3600, 4000, 3800, 3400, and 3800 feet, respectively;
</P>
<P>(14) Then in a straight line northerly and easterly to Grants Pass Peak;
</P>
<P>(15) Then in a straight line westerly to Jerome Prairie;
</P>
<P>(16) Then in a straight line northwesterly to the confluence of the Applegate River and the Rogue River and the point of the beginning.
</P>
<CITA TYPE="N">[T.D. ATF-434, 65 FR 78099, Dec. 14, 2000]


</CITA>
</DIV8>


<DIV8 N="§ 9.166" NODE="27:1.0.1.1.7.3.45.146" TYPE="SECTION">
<HEAD>§ 9.166   Diamond Mountain District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Diamond Mountain District.” 
</P>
<P>(b) <I>Approved map.</I> The appropriate maps for determining the boundary of the Diamond Mountain District viticultural area are two 1:24,000 Scale U.S.G.S. topography maps. They are titled: 
</P>
<P>(1) Mark West Springs, CA 1993
</P>
<P>(2) Calistoga, CA 1993. 
</P>
<P>(c) <I>Boundaries.</I> The viticultural area is located in Napa County, California. The beginning point is where the boundary between Napa and Sonoma counties intersects Petrified Forest Road in Section 3 of Township 8 North, Range 7 West, Mount Diablo Base and Meridian on the Mark West Springs map; 
</P>
<P>(1) Then north and east along Petrified Forest Road approximately 1.9 miles to the point where it intersects the 400-foot contour just east of Section 35 of Township 9 North, Range 7 West, Mount Diablo Base and Meridian, in the Mallacomes land grant; 
</P>
<P>(2) Then generally east southeast along the 400-foot contour approximately 6.5 miles to the point where it intersects Ritchey Creek in Section 3 of Township 8 North, Range 6 West, Mount Diablo Base and Meridian; 
</P>
<P>(3) Then west southwest along Ritchey Creek approximately 2.2 miles to the point where it intersects the boundary between Sections 17 and 20 of Township 8 North, Range 6 West, Mount Diablo Base and Meridian; 
</P>
<P>(4) Then due west in a straight line along the section boundary approximately 0.8 miles to the point where it intersects the boundary between Napa and Sonoma Counties between Sections 18 and 19 of Township 8 North, Range 6 West, Mount Diablo Base and Meridian; 
</P>
<P>(5) Then generally northwest along the boundary between Napa and Sonoma Counties approximately 4.2 miles to the point where it intersects Petrified Forest Road, to the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-456, 66 FR 29698, June 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 9.167" NODE="27:1.0.1.1.7.3.45.147" TYPE="SECTION">
<HEAD>§ 9.167   Red Mountain</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Red Mountain.” 
</P>
<P>(b) <I>Approved maps.</I> The appropriate map for determining the boundaries of the Red Mountain viticultural area is one U.S.G.S. map titled “Benton City, Washington” 7.5 minute series (topographic), (1974).
</P>
<P>(c) <I>Boundaries.</I> The Red Mountain viticultural area is located within Benton County, Washington, entirely within the existing Yakima Valley viticultural area. The boundaries are as follows: 
</P>
<P>(1) The northwest boundary beginning on this map at the intersection of the 560-foot elevation level and the aqueduct found northwest of the center of section 32. 
</P>
<P>(2) Then following the aqueduct east to its endpoint at an elevation of approximately 650-feet, again in section 32. 
</P>
<P>(3) From this point in a straight line southeast to the 1173-foot peak, located southeast of the center of section 32. 
</P>
<P>(4) From this peak southeast in a straight line across the lower southwest corner of section 33 to the 1253-foot peak located due north of the center of section 4. 
</P>
<P>(5) Then in a straight line southeast to the 1410-foot peak located in the southwest corner of section 3. 
</P>
<P>(6) From this peak in a straight line southeast to the border of sections 10 and 11 where the power line crosses these two sections. This intersection is northeast of the center of section 10 and northwest of the center of section 11. 
</P>
<P>(7) From this point in a straight line south following the border of sections 10 and 11 to the corner of sections 10,11,15, and 14. This point has an elevation of 684 feet. 
</P>
<P>(8) From this point southwest in a diagonal to the 700-foot elevation line and then following this 700-foot elevation through Section 15 and into section 16. 
</P>
<P>(9) Then following the 700-foot elevation line southwest 
<FR>1/4</FR> mile in a southwest diagonal until it meets the creek bed. 
</P>
<P>(10) Following the creek bed southwest through section 16, across the extreme southeast corner of section 17 and into the northeast corner of section 20 to a point where the creek bed meets the 560-foot elevation point. 
</P>
<P>(11) From this 560-foot elevation point, running north along this elevation line through section 17, through section 8, through section 5 and through section 32 until meeting the beginning point at the aqueduct in section 32. 
</P>
<CITA TYPE="N">[T.D. ATF-448, 66 FR 18545, Apr. 10, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 9.168" NODE="27:1.0.1.1.7.3.45.148" TYPE="SECTION">
<HEAD>§ 9.168   Fair Play.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Fair Play.”
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Fair Play viticultural area are titled:
</P>
<P>(1) Aukum, Calif., 1952 (photorevised 1973);
</P>
<P>(2) Camino, CA, 1952 (photorevised 1973);
</P>
<P>(3) Sly Park, CA, 1952 (photorevised 1973); and
</P>
<P>(4) Omo Ranch, Calif., 1952 (photorevised 1973).
</P>
<P>(c) <I>Boundaries.</I> The Fair Play viticultural area is located in El Dorado County, California and is located entirely within the existing Sierra Foothills and El Dorado viticultural areas. The boundary for Fair Play is as follows:
</P>
<P>(1) The beginning point of the boundary is the intersection of the Middle Fork of the Cosumnes River and the U.S.G.S. map section line between Sections 26 and 27, T. 9 N., R. 11 E. (“Aukum” Quadrangle);
</P>
<P>(2) From the beginning point, the boundary follows northeast along the Middle Fork of the Cosumnes River until it meets an unnamed medium-duty road (Mt. Aukum Road or El Dorado County Road E-16) just as it crosses onto the “Camino” Quadrangle map;
</P>
<P>(3) The boundary continues then northeast along Mt. Aukum Road to its intersection with Grizzly Flat Road at the town of Somerset (“Camino” Quadrangle);
</P>
<P>(4) The boundary continues east along Grizzly Flat Road to its intersection with the 2,200-foot contour line (“Camino Quadrangle”);
</P>
<P>(5) The boundary continues northeasterly and then easterly along the 2,200-foot contour line until the contour line intersects with Jackass Canyon Creek near the eastern boundary of Section 10, T. 9 N., R. 12. E., on the “Camino Quadrangle” map;
</P>
<P>(6) The boundary then proceeds southeast along Jackass Canyon Creek, crossing over the southwestern corner of the “Sly Park” Quadrangle map and onto the “Omo Ranch” Quadrangle map, to the headwaters of the creek, then proceeds in a straight line southeast to Grizzly Flat Road in Section 24, T. 9 N., R. 12 E.;
</P>
<P>(7) The boundary continues east along Grizzly Flat Road until the road intersects with the range line between R. 12 E. and R. 13 E. (“Omo Ranch Quadrangle”);
</P>
<P>(8) The boundary then follows south along the range line between R. 12 E. and R. 13 E. to its intersection with an unnamed medium-duty road in T. 8 N. (Omo Ranch Road) (“Omo Ranch” Quadrangle);
</P>
<P>(9) The boundary then continues west in a straight line approximately 0.3 miles to the point where Cedar Creek intersects with the 3200-foot contour line, within Section 1, T. 8 N.,R. 12 E. (“Omo Ranch” Quadrangle); 
</P>
<P>(10) The boundary follows along Cedar Creek west and then southwest until it empties into Scott Creek (“Aukum” Quadrangle);
</P>
<P>(11) The boundary then proceeds west along Scott Creek until it empties into the South Fork of the Cosumnes River (“Aukum” Quadrangle);
</P>
<P>(12) The boundary continues west along the South Fork of the Cosumnes River to its intersection with the western boundary of Section 14, T. 8 N., R 11 E. (“Aukum Quadrangle”);
</P>
<P>(13) The boundary then proceeds north along the western boundary lines of Sections 14, 11, and 2, T. 8 N., R 11 E., and then the western boundary lines of Sections 35 and 26, T. 9 N., R 11 E., to return to the beginning point (“Aukum Quadrangle”).
</P>
<CITA TYPE="N">[T.D. ATF-440, 66 FR 11539, Feb. 26, 2001, as amended by T.D. TTB-126, 80 FR 402, Jan. 6, 2015]


</CITA>
</DIV8>


<DIV8 N="§ 9.169" NODE="27:1.0.1.1.7.3.45.149" TYPE="SECTION">
<HEAD>§ 9.169   Red Hills Lake County.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Red Hills Lake County”.
</P>
<P>(b) <I>Approved Map.</I> The appropriate maps for determining the boundary of the Red Hills Lake County viticultural area are four 1:24,000 Scale U.S.G.S. topography maps. They are titled:
</P>
<P>(1) Clearlake Highlands Quadrangle, CA—Lake Co. 1958, photorevised 1975;
</P>
<P>(2) Lower Lake Quadrangle, CA—Lake Co. 1958, photorevised 1975;
</P>
<P>(3) Whispering Pines Quadrangle, CA 1958, photoinspected 1975;
</P>
<P>(4) Kelseyville Quadrangle—California. 1993.
</P>
<P>(c) <I>Boundary.</I> The Red Hills Lake County viticultural area is located entirely within the Clear Lake viticultural area of Lake County, California, on the southwestern shore of Clear Lake, between the towns of Lower Lake and Kelseyville, California. The Red Hills Lake County viticultural area boundary is as follows:
</P>
<P>(1) Beginning on the Clearlake Highlands map at the intersection of the Clear Lake shoreline, south of Slater Island, with the common boundary line between sections 3 and 4, T12N, R7W, proceed approximately 0.1 miles due south along the common section line to its intersection with the 1,400-foot contour line, section 3, T12N, R7W (Clearlake Highlands Quadrangle); then
</P>
<P>(2) Proceed east-southeasterly along the meandering 1,400-foot contour line onto the Lower Lake map south of Anderson Flat, then reverse direction with the contour line and continue westerly, leaving the Lower Lake map, to the 1,400-foot contour line's intersection with Seigler Canyon Creek, section 10, T12N, R7W (Clearlake Highlands Quadrangle); then
</P>
<P>(3) Proceed generally west then south along Seigler Canyon Creek to its confluence with Perini Creek, section 9, R7W, T12N, and continue southerly about 1.2 miles along Perini Creek to its intersection with the 1,800-foot contour line, section 16, R7W, T12N (Clearlake Highlands Quadrangle); then
</P>
<P>(4) Continue southerly along the 1,800-foot contour line, crossing on to the Whispering Pines map, and, turning westerly, continue along the 1,800-foot contour line to its intersection with Copsey Creek, section 28, T12N, R7W (Whispering Pines Quadrangle); then
</P>
<P>(5) Proceed generally west-northwest along Copsey Creek to its headwaters in section 29, then continue straight west-southwesterly to the headwaters of Bad Creek at its intersection with the section 30 eastern boundary line, and, from that point, proceed approximately 0.1 miles due west to Big Canyon Road, section 30, T12N, R7W (Whispering Pines Quadrangle); then
</P>
<P>(6) Proceed about 1.1 miles north-northwesterly along Big Canyon Road, leaving the Whispering Pines map, to its intersection with Loch Lomond Road, northeast of Hoberg Airport, section 19, T12N, R7W (Clearlake Highlands Quadrangle); then
</P>
<P>(7) Proceed approximately 1.5 miles westerly then southerly along Loch Lomond Road, returning to the Whispering Pines map, passing through Seigler Springs, to the road's first intersection with the 2,640-foot contour line, northwest of Bonanza Springs, section 25, T12N, R8W (Whispering Pines Quadrangle); then
</P>
<P>(8) From that point, proceed about 1.9 miles northwesterly in a straight line, passing through the peak of Seigler Mountain, elevation 3,692 feet, and returning to the Clearlake Highlands map, to the line's intersection with Salmina Road, section 23, T12N, R8W (Clearlake Highlands Quadrangle); then
</P>
<P>(9) Proceed 1.25 miles northwesterly along Salmina Road to its intersection with State Highway 175, section 15, T12N, R8W (Clearlake Highlands Quadrangle); then
</P>
<P>(10) Proceed south 0.6 miles on State Highway 175 to its intersection with the section 15 southern boundary line, T12N, R8W (Clearlake Highlands Quadrangle); then
</P>
<P>(11) From that point, proceed about 1 mile in a straight northwesterly line to the peak of Mt. Hannah, elevation 3,978 feet, section 16, T12N, R8W (Clearlake Highlands Quadrangle); then
</P>
<P>(12) From the peak of Mt. Hannah, proceed about 0.8 miles in a westerly straight line, crossing on to the Kelseyville map, to the intersection of the 3,000-foot contour line with the section 17 east boundary line, and continue for about 0.45 miles along the same line of direction to the 2,800-foot contour line east of Boggs Lake, section 17, T12N, R8W (Kelseyville Quadrangle); then
</P>
<P>(13) Proceed northerly and then westerly along the 2,800-foot contour line around Boggs Lake to the contour line's intersection with Harrington Flat Road, section 18, T12N, R8W (Kelseyville Quadrangle); then


</P>
<P>(14) Proceed about 0.4 mile northwesterly along Harrington Flat Road to its intersection with Bottle Rock Road in section 18, T21N, R8W; then
</P>
<P>(15) Proceed southerly along Bottle Rock Road approximately 2,500 feet to its intersection with an unnamed, unimproved dirt road near the marked 2,928-foot elevation; then


</P>
<P>(16) Proceed west along the unimproved dirt road to its intersection with the 2,800-foot elevation contour; then


</P>
<P>(17) Proceed northwesterly, then northerly along the meandering 2,800-foot elevation contour to its intersection with the northern boundary of section 18, T12N, R8W; then
</P>
<P>(18) Proceed easterly along the northern boundary of section 18 to its intersection with Bottle Rock Road; then
</P>
<P>(19) Proceed north along Bottle Rock Road to its intersection with an unnamed trail in section 7, T12N, R8W; then
</P>
<P>(20) Proceed west in a straight line to the western boundary of section 7, T12N, R8W; then
</P>
<P>(21) Proceed north along the western boundary of section 7 to the southeastern corner of section 1, T12N, R9W; then
</P>
<P>(22) Proceed west along the southern boundary of section 1 to its intersection with the 2,600-foot elevation contour; then
</P>
<P>(23) Proceed north in a straight line to the intersection with an unnamed, unimproved dirt road known locally as Helen Road; then
</P>
<P>(24) Proceed west in a straight line to the fourth intersection with the 2,560-foot elevation contour in section 1, T12N, R9W; then
</P>
<P>(25) Proceed south in a straight line to the southern boundary of section 1; then
</P>
<P>(26) Proceed west along the southern boundary of section 1 to its intersection with the western boundary of section 1; then
</P>
<P>(27) Proceed north along the western boundary of section 1 to its intersection with the northern boundary of section 1; then
</P>
<P>(28) Proceed east along the northern boundary of section 1 to its intersection with the 2,000-foot elevation contour; then
</P>
<P>(29) Proceed southeasterly along the 2,000-foot elevation contour to its intersection with Bottle Rock Road; then
</P>
<P>(30) Proceed northwesterly along Bottle Rock Road to its intersection with Cole Creek Road to the west and an unnamed, unimproved road to the east in section 25, T13N, R9W; then


</P>
<P>(31) Proceed east and then northeast approximately 0.4 mile along the unimproved road to the road's intersection with State Highway 29/175, then proceed east along State Highway 29/175 to the intersection of the highway with the 1,720-foot elevation line located just west of the 1,758-foot benchmark (BM) in section 25, T13N, R9W (Kelseyville Quadrangle); then
</P>
<P>(32) Proceed northwest along the 1,720-foot elevation line to the common boundary line between sections 25 and 26, T13N, R9W; then
</P>
<P>(33) Proceed north along the common boundary line between sections 25 and 26, T13N, R9W, and then the common boundary line between sections 23 and 24, T13N, R9W, (partially concurrent with Wilkinson Road) to the intersection of the common section 23-24 boundary line with the 1,600-foot elevation line (Kelseyville Quadrangle); then
</P>
<P>(34) Proceed about 1.35 miles straight easterly to the 2,493 benchmark located along an unnamed light-duty road known locally as Konocti Road, section 19, T13N, R8W (Kelseyville Quadrangle); then
</P>
<P>(35) Proceed less than 0.2 miles easterly and then northerly along the unnamed light-duty road to its intersection with the 2,600-foot elevation line, section 19, T13N, R8W (Kelseyville Quadrangle); then
</P>
<P>(36) Proceed about 3.0 miles generally east along the 2,600-foot elevation line to its intersection, north of Bell Mine, with an unnamed intermittent stream near the section 20 east boundary line, T13N, R8W (Kelseyville Quadrangle); then
</P>
<P>(37) Proceed about 1.2 miles in a straight east-northeasterly line to the intersection of Konocti Bay Road and Soda Bay Road, and continue due east to the shore of Clear Lake, section 22, T13N, R8W (Clearlake Highlands Quadrangle); then
</P>
<P>(38) Proceed southeasterly along the shoreline of Clear Lake, returning to the point of beginning at the shoreline's intersection with the common boundary line between sections 3 and 4, T12N, R7W (Clearlake Highlands Quadrangle).
</P>
<CITA TYPE="N">[T.D. TTB-15, 69 FR 41754, July 12, 2004; T.D. TTB-118, 78 FR 60688, Oct. 2, 2013; T.D. TTB-190, 89 FR 7620, Feb. 5, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.170" NODE="27:1.0.1.1.7.3.45.150" TYPE="SECTION">
<HEAD>§ 9.170   Long Island.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Long Island.” 
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Long Island viticultural area are three United States Geological Survey (U.S.G.S.) topographic maps (Scale: 1:250,000). They are titled: 
</P>
<P>(1) “New York, N.Y.; N.J.; Conn.,” 1960 (revised 1979); 
</P>
<P>(2) “Hartford, Conn.; N.Y.; N.J.; Mass.,” 1962 (revised 1975); and 
</P>
<P>(3) “Providence, R.I.; Mass.; Conn.; N.Y.,” 1947 (revised 1969). 
</P>
<P>(c) <I>Boundaries.</I> The Long Island viticultural area includes approximately 1,170 square miles or 749,146 acres and is made up of the counties of Nassau and Suffolk, New York, including all off shore islands in those counties.
</P>
<CITA TYPE="N">[T.D. ATF-453, 66 FR 26791, May 15, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 9.171" NODE="27:1.0.1.1.7.3.45.151" TYPE="SECTION">
<HEAD>§ 9.171   San Bernabe.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Bernabe”.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the San Bernabe viticultural area are four 1:24,000 scale, USGS topographic maps. They are titled:
</P>
<P>(1) Thompson Canyon Quadrangle, California-Monterey County, 1949 (photorevised 1984);
</P>
<P>(2) San Lucas Quadrangle, California-Monterey County, 1949 (photorevised 1984);
</P>
<P>(3) Espinosa Canyon Quadrangle, California-Monterey County, 1949 (photorevised 1979); and
</P>
<P>(4) Cosio Knob Quadrangle, California-Monterey County, 1949 (photorevised 1984);
</P>
<P>(c) <I>Boundary.</I> The San Bernabe viticultural area is located in central Monterey County, south of King City, California, and west of U.S. Highway 101.
</P>
<P>(1) The point of beginning on the Thompson Canyon Quadrangle is benchmark 304, located one-half mile southwest of King City, along the Salinas River, in Township 20 South (T20S) and Range 8 East (R8E). Proceed southeast in a straight line for 2.35 miles to benchmark 304, at the intersection of a trail and the 300-foot contour line, between U.S. Highway 101 and the Salinas River, in T20S and R8E (San Lucas Quadrangle); then
</P>
<P>(2) Proceed southeast in a straight line for 2.9 miles to benchmark 336, between U.S. Highway 101 and the Salinas River, in T20S and R8E (San Lucas Quadrangle); then
</P>
<P>(3) Proceed southeast in a straight line for 3 miles to benchmark 340, between U.S. Highway 101 and the Salinas River, in T21S and R9E (San Lucas Quadrangle); then
</P>
<P>(4) Proceed south in a straight line for 0.8 mile to the intersection of the Salinas River and the Highway 198 bridge, in T21S and R9E (Espinosa Canyon Quadrangle); then
</P>
<P>(5) Proceed southwest along Highway 198 for 0.6 mile to its intersection with an unnamed light duty road, in T21S and R9E (Espinosa Canyon Quadrangle); then
</P>
<P>(6) Proceed northwest, followed by southwest, about 1.2 miles along the meandering, unnamed, light duty road to its intersection with the fork of an intermittent stream, in T21S and R8E (Espinosa Canyon Quadrangle); then
</P>
<P>(7) Proceed southwest in a straight line for 0.6 mile to the 595-foot peak, Section 13, in T21S and R8E (Espinosa Canyon Quadrangle); then
</P>
<P>(8) Proceed southwest in a straight line for 1.3 miles to the 788-foot peak, section 23, in T21S and R8E (Espinosa Canyon Quadrangle); then
</P>
<P>(9) Proceed southwest in a straight line for 0.7 mile to the intersection of the unimproved road and jeep trail, east of the 73-degree longitudinal line, section 26, in T21S and R8E (Espinosa Canyon Quadrangle); then
</P>
<P>(10) Proceed northwest in a straight line for 3.2 miles to the northwest corner of section 16, in T21S and R8E (Espinosa Canyon Quadrangle); then
</P>
<P>(11) Proceed southwest in a straight line for 1.5 miles to the northeast corner of section 19, in T21S and R8E (Cosio Knob Quadrangle); then
</P>
<P>(12) Proceed southwest in a straight line for 2.2 miles to the southwest corner of section 24, in T21S and R7E (Cosio Knob Quadrangle); then
</P>
<P>(13) Proceed north in a straight line for 2 miles to the northwest corner of section 13, in T21S and R7E (Cosio Knob Quadrangle); then
</P>
<P>(14) Proceed east in a straight line for 1 mile to the northeast corner of section 13, in T21S and R7E (Cosio Knob Quadrangle); then
</P>
<P>(15) Proceed north in a straight line for 2 miles, along the R7E and R8E common boundary line, to the northwest corner of section 6, in T21S and R8E (Thompson Canyon Quadrangle); then
</P>
<P>(16) Proceed east in a straight line for 0.1 mile to the southwest corner of section 31 and continue diagonally to the northeast corner of section 31, in T20S and R8E (Thompson Canyon Quadrangle); then
</P>
<P>(17) Proceed west in a straight line for 2 miles to the southwest corner of section 25, in T20S and R7E (Thompson Canyon Quadrangle); then
</P>
<P>(18) Proceed due north in a straight line for 0.1 mile to the intersection with a light duty road, named Pine Canyon Road, in section 25, and continue northeast along that road for 3.2 miles to its intersection with an unnamed secondary highway, north of benchmark 337, section 18, in T20S and R8E (Thompson Canyon Quadrangle); then
</P>
<P>(19) Proceed northwest along the unnamed secondary highway for 0.3 mile to its intersection with U.S. Highway 101, in T20S and R8E (Thompson Canyon Quadrangle); then
</P>
<P>(20) Proceed northeast along U.S. Highway 101 for 0.7 mile to benchmark 304, returning to the point of beginning (Thompson Canyon Quadrangle).
</P>
<CITA TYPE="N">[T.D. TTB-14, 69 FR 38836, June 29, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 9.172" NODE="27:1.0.1.1.7.3.45.152" TYPE="SECTION">
<HEAD>§ 9.172   West Elks.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “West Elks.”
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the West Elks viticultural area are four United States Geological Survey (U.S.G.S.) topographic maps (Scale: 1:250,000). They are titled:
</P>
<P>(1) Lazear Quadrangle (Colorado-Delta Co. 1955 (photorevised 1978));
</P>
<P>(2) Hotchkiss Quadrangle (Colorado-Delta Co. 1965 (photorevised 1979));
</P>
<P>(3) Paonia Quadrangle (Colorado-Delta Co. 1965 (photorevised 1979); and
</P>
<P>(4) Bowie Quadrangle (Colorado-Delta Co. 1965 (photorevised 1978).
</P>
<P>(c) <I>Boundaries.</I> The West Elks viticultural area is located in eastern Delta County, Colorado. The beginning point is found on the “Bowie Quadrangle” U.S.G.S. map at the 
<FR>1/4</FR> corner common to Sections 19 and 20, Township 13 South, Range 91 West (T. 13 S., R. 91 W.);
</P>
<P>(1) The boundary proceeds east following the center subdivision lines of Sections 20 and 21 to its intersection with Colorado Highway 133;
</P>
<P>(2) Then northeasterly following Colorado Highway 133 to its intersection with the N-S center subdivision line of Section 14, T. 13 S., R. 91 W., near Juanita Junction;
</P>
<P>(3) Then south following the center subdivision line to its intersection with the North Fork of the Gunnison River;
</P>
<P>(4) Then southwesterly following the North Fork of the Gunnison River to its intersection with the Stewart Ditch in the extreme southern part of Section 15, T. 13 S., R. 91 W.;
</P>
<P>(5) Then southwesterly following the Stewart Ditch to its intersection with the section line common to Sections 21 and 28, T. 13 S., R. 91 W.;
</P>
<P>(6) Then east following the section line common to Sections 21 and 28 to its intersection with the 6000 foot contour;
</P>
<P>(7) Then southerly following the 6000 foot contour to its second intersection with the section line common to Sections 3 and 4, T. 14 S., R. 91 W., located on the Paonia, Colo. U.S.G.S. map;
</P>
<P>(8) Then south following the section line common to Sections 3 and 4 to its intersection with the 6200 foot contour;
</P>
<P>(9) Then southerly following the 6200 foot contour to its intersection with the section line common to Sections 16 and 17, T. 14 S., R. 91 W.;
</P>
<P>(10) Then south following the section line common to Sections 16 and 17 to the point of intersection of Sections 16, 17, 20 and 21;
</P>
<P>(11) Then west following the section line common to Sections 17 and 20 to the point of intersection of Sections 17, 18, 19 and 20;
</P>
<P>(12) Then south following the section line common to Sections 19 and 20 to the N1/16 corner common to Sections 19 and 20;
</P>
<P>(13) Then west following the subdivision line across Section 19 to the N1/16 corner common to Section 19, T. 14 S., R. 91 W. and Section 24, T, 14 S., R. 92 W.;
</P>
<P>(14) Then south following the range line between R. 91 W. and R. 92 W. to the point of intersection between Sections 19 and 30, T. 14 S., R. 91 W. and Sections 24 and 25, T. 14 S., R. 92 W.;
</P>
<P>(15) Then west following the section line common to Sections 24 and 25 to the point of intersection between Sections 23, 24, 25 and 26, located on the Hotchkiss, Colo. U.S.G.S. map;
</P>
<P>(16) Then south following the section line common to Sections 25 and 26 to the point of intersection between Sections 25, 26, 35 and 36;
</P>
<P>(17) Then west following the section lines common to Sections 26 and 35 and Sections 27 and 34 to the point of intersection between Sections 27, 28, 33 and 34;
</P>
<P>(18) Then south following the section line common to Sections 33 and 34 to the point of intersection between Sections 33 and 34, T. 14 S., R. 92 W. and Sections 3 and 4, T. 15 S., R. 92 W.;
</P>
<P>(19) Then west following the township line between T. 14 S. and T. 15 S. approximately three miles to the point of intersection between Section 31, T. 14 S., R. 92 W., Section 6, T. 15 S., R. 92 W., Section 1, T. 15 S., R. 93 W., and Section 36, T. 14 S., R. 93 W.;
</P>
<P>(20) Then south following the range line between R. 92 W. and R. 93 W. to the point of intersection between Sections 6 and 7, T. 15 S., R. 92 W. and Sections 1 and 12, T. 15 S., R. 93 W.;
</P>
<P>(21) Then west following the section lines common to Sections 1 and 12 and Sections 2 and 11 to its intersection with the North Fork of the Gunnison River, located on the Lazear, Colo. U.S.G.S. map;
</P>
<P>(22) Then westerly following the North Fork of the Gunnison River to its intersection with Big Gulch in the extreme northeastern corner of Section 6, T. 15 S., R. 93 W.;
</P>
<P>(23) Then northerly following Big Gulch to its intersection with the section line common to Sections 17 and 18, T. 14 S., R. 93 W.;
</P>
<P>(24) Then north following the section lines common to Sections 17 and 18, Sections 7 and 8, and Sections 5 and 6 to the point of intersection between Sections 5 and 6, T. 14 S., R. 93 W. and Sections 31 and 32, T. 13 S., R. 93 W.;
</P>
<P>(25) Then east following the township line between T. 13 S. and T. 14 S. approximately two miles to the point of intersection between Sections 3 and 4, T. 14 S., R. 93 W. and Sections 33 and 34, T. 13 S., R. 93 W.;
</P>
<P>(26) Then south following the section line common to Sections 3 and 4 to the point of intersection between Sections 3, 4, 9 and 10;
</P>
<P>(27) Then east following the section lines for approximately 6 miles to the point of intersection between Sections 3, 4, 9 and 10, T. 14 S., R. 92 W., located on the Hotchkiss, Colo. U.S.G.S. map;
</P>
<P>(28) Then north following the section line common to Sections 3 and 4 to the point of intersection between Sections 3 and 4, T. 14 S., R. 92 W. and Sections 33 and 34, T. 13 S., R. 92 W.;
</P>
<P>(29) Then east following the township line between T. 13 S. and T. 14 S. to its intersection with the Fire Mountain Canal in the southwestern corner of Section 35, T. 13 S., R. 92 W.;
</P>
<P>(30) Then northeasterly following the Fire Mountain Canal through the extreme northwest corner of the Paonia, Colo. U.S.G.S. map to its intersection with the section line common to Sections 29 and 30, T. 13 S., R. 91 W., located on the Bowie, Colo. U.S.G.S. map;
</P>
<P>(31) Then north following the section lines common to Sections 29 and 30 and Sections 19 and 20 to the 
<FR>1/4</FR> corner common to Sections 19 and 20, the point of beginning.
</P>
<CITA TYPE="N">[T.D. ATF-445, 66 FR 13430, Mar. 6, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 9.173" NODE="27:1.0.1.1.7.3.45.153" TYPE="SECTION">
<HEAD>§ 9.173   Rockpile.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Rockpile”.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Rockpile viticultural area are four 1:24,000 Scale U.S.G.S. topographic maps. They are titled:
</P>
<P>(1) Warm Springs Dam Quadrangle, CA—Sonoma Co. 1978;
</P>
<P>(2) Cloverdale Quadrangle, CA 1975;
</P>
<P>(3) Tombs Creek Quadrangle, CA—Sonoma Co. 1978; and
</P>
<P>(4) Big Foot Mountain Quadrangle, CA 1991.
</P>
<P>(c) <I>Boundary.</I> The Rockpile viticultural area is located in northwestern Sonoma County, California. The boundary encircles the Rockpile Ranch area, located west of Lake Sonoma. The point of beginning is the intersection of Rockpile Road and the Section 15 east boundary line, T 10 N, R 11 W (Warm Springs Dam Quadrangle);
</P>
<P>(1) Then proceed straight north to the 800-foot contour line, Section 10, T 10 N, R 11 W (Warm Springs Dam Quadrangle);
</P>
<P>(2) Then proceed west along the 800-foot contour line through Sections 10, 9, 4, 5, and 32 to the Section 31 east boundary line, T 11 N, R 11 W (Warm Springs Dam and Cloverdale Quadrangles);
</P>
<P>(3) Then proceed west along the 800-foot contour line in Section 31, following the line as it reverses from the west to the east direction, returning to the east boundary of Section 31, T 11 N, R 11 W (Cloverdale and Big Foot Mountain Quadrangles);
</P>
<P>(4) Then proceed along the 800-foot contour line east through Section 32 and northwest through Sections 33, 32, 29, 30, 25, 24, 23, 14, 15, 22, 21, and 20 to the east boundary line of Section 19, T 11 N, R 12 W (Cloverdale and Big Foot Mountain Quadrangles);
</P>
<P>(5) Then proceed west, north, south and east along the meandering 800-foot contour line, in a loop, crossing the southwest and northwest headwaters of Galloway Creek, and returning to the east boundary line of Section 19, T 11 N, R 12 W (Big Foot Mountain Quadrangle);
</P>
<P>(6) Then proceed straight north to the Mendocino-Sonoma county boundary line, then follow the county line straight west to the R 13 and 12 W line, and continue straight south to the 1,600-foot contour line in the Section 19 southwest corner, T 11 N, R 12 W (Big Foot Mountain Quadrangle);
</P>
<P>(7) Then proceed southeast along the meandering 1,600-foot contour line to the Section 29 west boundary line, and continue straight south to the T 11 and 10 N boundary line, R 12 W (Big Foot Mountain Quadrangle);
</P>
<P>(8) Then proceed east along the T 11 and 10 N boundary line to the Section 1 west boundary line, R 12 W (Big Foot Mountain Quadrangle);
</P>
<P>(9) Then proceed south along the Section 1 west boundary line, turning east at the Section 1 south boundary and continue east to the northwest corner of Section 8, T 10 N, R 11 W (Big Foot Mountain, Tombs Creek and Warm Springs Dam Quadrangles);
</P>
<P>(10) Then proceed south along the west boundary of Section 8, turning east at its southwest corner, and continue east to the 876-foot elevation marker, T 10 N, R 11 W (Warm Springs Dam Quadrangle);
</P>
<P>(11) Then proceed straight south approximately 2,000 feet to the 800-foot contour line, T 10 N, R 11 W (Warm Springs Dam Quadrangle);
</P>
<P>(12) Then follow the 800-foot contour line as it meanders west, southeast, southwest, and east to the Section 14 west boundary, and then straight north, returning to the point of beginning at Rockpile Road, T 10 N, R 11 W (Warm Springs Dam Quadrangle).
</P>
<CITA TYPE="N">[T.D. ATF-473, 67 FR 9193, Feb. 28, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 9.174" NODE="27:1.0.1.1.7.3.45.154" TYPE="SECTION">
<HEAD>§ 9.174   Yadkin Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Yadkin Valley”. 
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Yadkin Valley viticultural area are two United States Geological Survey (USGS) topographic maps, scale 1:250,000:
</P>
<P>(1) Winston-Salem, N.C.; VA; Tenn. (1953, Limited Revision 1962), and,
</P>
<P>(2) Charlotte, North Carolina; South Carolina. (1953, Revised 1974).
</P>
<P>(c) <I>Boundaries.</I> The Yadkin Valley viticultural area is located in the State of North Carolina within Wilkes, Surry, Yadkin and portions of Stokes, Forsyth, Davidson, and Davie Counties. The boundaries are as follows:
</P>
<P>(1) On the Winston-Salem, N.C.; VA; Tenn. map, the beginning point is 3.6 miles west of the northeast corner of Surry County on the Surry County and North Carolina/Virginia state line at the crest of Slate Mountain. From the beginning point, proceed southeast in a straight line approximately 6.5 miles to the intersection of the Surry/Stokes County line and State Route 89;
</P>
<P>(2) Then bear southeast in a straight line for approximately 9 miles to the line's intersection with State Route 66 in the village of Gap (between Sauratown and Hanging Rock Mountains);
</P>
<P>(3) Then bear south, following State Route 66 for approximately 9 miles to intersection of State Route 66 and U.S. Route 52;
</P>
<P>(4) Then, for approximately 9.5 miles, follow U.S. Route 52 south through Rural Hall and Stanelyville, to the intersection of the Southern Railway track and U.S. Route 52;
</P>
<P>(5) Then bear southerly for approximately 2 miles, following the Southern Railway track to where it intersects with U.S. Route 52 in Winston-Salem;
</P>
<P>(6) Then follow U.S. Route 52 south for approximately 19.5 miles, crossing on to the Charlotte, North Carolina; South Carolina map, to its intersection with Interstate 85 at Lexington;
</P>
<P>(7) Then, follow Interstate 85 southwest for approximately 11 miles to the Yadkin River and bear northwest approximately 4.5 miles along the Yadkin River to the mouth of the South Yadkin River;
</P>
<P>(8) Follow the South Yadkin River upstream in a generally northwest direction approximately 3.5 miles to its intersection with U.S. Route 601;
</P>
<P>(9) Then continue in a northerly direction, following U.S. Route 601 through the town of Mocksville, onto the Winston-Salem, N.C.; VA; Tenn. map approximately 20 miles to the Davie/Yadkin County line;
</P>
<P>(10) Then, following a series of county lines, continue west along the Yadkin/Davie County line to the Yadkin/Davie/Iredell County line intersection, then follow the Yadkin/Iredell County line to the Yadkin/Iredell/Wilkes County line intersection, then follow the Iredell/Wilkes County line to the Iredell/Wilkes/Alexander County line intersection, then follow the Wilkes/Alexander County line to the Wilkes/Alexander/Caldwell County line intersection;
</P>
<P>(11) Then bear northwesterly along the Wilkes/Caldwell County line, to the Wilkes/Caldwell/Watauga County intersection;
</P>
<P>(12) Then bear northerly along the Wilkes/Watauga County line to the intersection of the Wilkes/Watauga/Ashe County lines;
</P>
<P>(13) Then bear generally northeasterly along the Wilkes/Ashe County line, to the Wilkes/Ashe/Alleghany County line intersection;
</P>
<P>(14) Then bear generally easterly along the Wilkes/Alleghany County line to the Wilkes/Alleghany/Surry County line intersection;
</P>
<P>(15) Then bear northerly along Alleghany/Surry County line to the intersection of the Alleghany/Surry County line and the North Carolina/Virginia border;
</P>
<P>(16) Then bear east along the North Carolina/Virginia State line approximately 22.5 miles, returning to the point of beginning 3.6 miles west of the northeast corner of Surry County.
</P>
<CITA TYPE="N">[T.D. ATF-485, 67 FR 72839, Dec. 9, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 9.175" NODE="27:1.0.1.1.7.3.45.155" TYPE="SECTION">
<HEAD>§ 9.175   Dos Rios.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Dos Rios”. For purposes of part 4 of this chapter, “Dos Rios” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the Dos Rios viticultural area are four United States Geological Survey 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Dos Rios, California—Mendocino County, 1967 edition, revised 1994;
</P>
<P>(2) Laytonville, California—Mendocino County, 1967 edition, revised 1994;
</P>
<P>(3) Iron Peak, California—Mendocino County, 1967 edition, revised 1994; and
</P>
<P>(4) Covelo West, California—Mendocino County, 1967 edition, photoinspected 1973.
</P>
<P>(c) <I>Boundary.</I> The Dos Rios viticultural area is located in northern Mendocino County, California, at the confluence of the Eel River and the Middle Fork of the Eel River. The area's boundaries are defined as follows—
</P>
<P>(1) Beginning in the northwestern quarter of the Dos Rios map in section 32, T22N, R13W, at the intersection of the 2,000-foot contour line and Poonkinny Road, proceed southerly and then easterly along the meandering 2,000-foot contour line to its intersection with the eastern boundary of section 2, T21N, R13W, immediately south of State Route 162 (Dos Rios Quadrangle); then
</P>
<P>(2) Proceed straight south along the section line, crossing the Middle Fork of the Eel River, to the southeast corner of section 11, T21N, R13W (Dos Rios Quadrangle); then
</P>
<P>(3) Proceed 0.9 mile straight west along the southern boundary of section 11 to its intersection with the 2,000-foot elevation line, T21N, R13W (Dos Rios Quadrangle); then
</P>
<P>(4) Proceed northerly then westerly along the meandering 2,000-foot contour line, crossing Big Water Canyon, Doghouse Creek, and Eastman Creek, to the contour line's intersection with the southern boundary of section 17, T21N, R13W (Dos Rios Quadrangle); then
</P>
<P>(5) Proceed 2.1 miles straight west along the section line, crossing the Eel River, to the section line's intersection with the 2,000-foot contour line along the southern boundary of section 18, T21N, R13W (Dos Rios Quadrangle); then
</P>
<P>(6) Proceed northerly along the meandering 2,000-foot contour line, crossing between the Dos Rios and Laytonville maps (passing around the Sims 2208 benchmark near the southeast corner of section 36, T22N, R14W), and, returning to the Laytonville map, continue westerly to the contour line's intersection with the southwest corner of section 36, T22N, R14W, at Windy Point (Laytonville Quadrangle); then
</P>
<P>(7) Proceed 1.2 miles straight north along the section line to its intersection with the 2,000-foot elevation line, section 25, T22N, R14W (Laytonville Quadrangle); then
</P>
<P>(8) Proceed northerly along the meandering 2,000-foot elevation, crossing between the Laytonville and Iron Peak maps, and, returning to the Iron Peak map, continue along the contour line to its intersection with the western boundary of section 14 immediately south of an unnamed unimproved road, T22N, R14W (Iron Peak Quadrangle); then
</P>
<P>(9) Proceed straight north along the section line to the southeast corner of section 3, T22N, R14W (Iron Peak Quadrangle); then
</P>
<P>(10) Proceed straight west along the section line to the southwest corner of section 3, T22N, R14W (Iron Peak Quadrangle); then
</P>
<P>(11) Proceed straight north along the section line to the northwest corner of section 3, T22N, R14W (Iron Peak Quadrangle); then
</P>
<P>(12) Proceed straight east along the section line, crossing the Eel River, to the northeast corner of section 2, which coincides with the Round Valley Indian Reservation's southern boundary, T22N, R14W (Iron Peak Quadrangle); then
</P>
<P>(13) Proceed straight south along the section line to the southeast corner of section 2, T22N, R14W (Iron Peak Quadrangle); then
</P>
<P>(14) Proceed 0.3 mile straight east to the section line's intersection with the 2,000-foot elevation line along the northern boundary of section 12, T22N, R14W, west of Eberle Ridge, (Iron Peak Quadrangle); and
</P>
<P>(15) Proceed generally southeast along the meandering 2,000-foot elevation, crossing onto the Covelo West map and continuing southerly along the 2,000-foot contour line from Stoner Creek in section 18, T22N, R13W, and, returning to the Dos Rios map, continue southeasterly along the 2,000-foot contour line (crossing Goforth and Poonkinny Creeks), to the beginning point at the contour line's intersection with Poonkinny Road.
</P>
<CITA TYPE="N">[T.D. TTB-34, 70 FR 59995, Oct. 14, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.176" NODE="27:1.0.1.1.7.3.45.156" TYPE="SECTION">
<HEAD>§ 9.176   Capay Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Capay Valley”. 
</P>
<P>(b) <I>Approved maps.</I> The appropriate map for determining the boundary of the Capay Valley viticultural area is the United States Geological Survey (U.S.G.S.) topographic map titled: 30X60 Minute Quadrangle (Healdsburg, California 1972) (Scale: 1:100,000). 
</P>
<P>(c) <I>Boundaries.</I> The Capay Valley viticultural area is located in Yolo County, California. The beginning point is the junction of the Yolo, Napa, and Lake County lines. 
</P>
<P>(1) From the beginning point, proceed north then east along the Yolo-Lake County line; 
</P>
<P>(2) At the junction of the Yolo, Lake, and Colusa County lines, continue east along the Yolo-Colusa County line to its junction with the boundary between ranges R4W and R3W; 
</P>
<P>(3) Then south along the R4W and R3W boundary to its junction with the 250 meter contour line; 
</P>
<P>(4) Proceed generally southeast along the meandering 250 meter contour line to its junction with the T10N-T11N section line; 
</P>
<P>(5) Continue east along the T10N-T11N section line to the unnamed north-south secondary highway known locally as County Road 85; 
</P>
<P>(6) Then south along County Road 85, crossing Cache Creek, to its intersection with State Highway 16; 
</P>
<P>(7) Proceed east on Highway 16 to its junction with the unnamed north-south light duty road known locally as County Road 85B; 
</P>
<P>(8) Then south on County Road 85B to its junction with the unnamed east-west light duty road known locally as County Road 23; 
</P>
<P>(9) Proceed west on County Road 23 for approximately 500 feet to an unnamed light duty road known locally as County Road 85; 
</P>
<P>(10) Proceed south on County Road 85 until the road ends and continue south in a straight line to the T9N-T10N section line; 
</P>
<P>(11) Then west on the T9N-T10N section line to the Napa-Yolo County line; 
</P>
<P>(12) Continue northwest following the Napa-Yolo county line and return to the starting point.
</P>
<CITA TYPE="N">[T.D. ATF-486, 67 FR 77924, Dec. 20, 2002] 


</CITA>
</DIV8>


<DIV8 N="§ 9.177" NODE="27:1.0.1.1.7.3.45.157" TYPE="SECTION">
<HEAD>§ 9.177   Alexandria Lakes.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Alexandria Lakes”.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Alexandria Lakes viticultural area are four United States Geological Survey 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Alexandria West, Minn., 1966, revised 1994.
</P>
<P>(2) Alexandria East, Minn., 1966, revised 1994.
</P>
<P>(3) Lake Miltona East, Minn., 1969.
</P>
<P>(4) Lake Miltona West, Minn., 1969.
</P>
<P>(c) <I>Boundary.</I> The Alexandria Lakes viticultural area is located in Douglas County, Minnesota. The boundary of the Alexandria Lakes viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Alexandria West, Minn. map between Lake Carlos and Lake Darling at benchmark (BM) 1366, which is an unmarked bridge on County Road 11, known as the Carlos-Darling Bridge. From this point the boundary line continues—
</P>
<P>(2) Along the Carlos-Darling bridge and then northeasterly along the western shore of Lake Carlos on to the Alexandria East, Minn. map; then
</P>
<P>(3) Along the shoreline until the point where the Lake Carlos shoreline parallels an unlabeled road known as County Road 38; then
</P>
<P>(4) North along County Road 38 until it intersects with an unlabeled road known as County Road 62; then
</P>
<P>(5) North along County Road 62 on to the Lake Miltona, East, Minn. map and then on to an unlabeled road known as Buckskin Road; then
</P>
<P>(6) North on Buckskin Road to the point at BM 1411; then
</P>
<P>(7) North from BM 1411 in a straight line to the south shoreline of Lake Miltona; then
</P>
<P>(8) Generally west along the south shoreline of Lake Miltona onto the Lake Miltona West, Minn. map until the southern shoreline parallels an unlabeled road known as Krohnfeldt Drive; then
</P>
<P>(9) South and then west along Krohnfeldt Drive until it intersects with an unlabeled road known as County Road 34; then
</P>
<P>(10) South along County Road 34 until the point where County Road 34 runs parallel to Lake Ida's eastern shoreline; then
</P>
<P>(11) South along Lake Ida's eastern shoreline, then onto the Alexandria West, Minn. map to the point where two unlabeled roads known as Burkey's Lane and Sunset Strip Road intersect; then
</P>
<P>(12) South along Sunset Strip Road to the point where it intersects with an unlabeled road known as County Road 104; then
</P>
<P>(13) Generally east along County Road 104 until it intersects with an unlabeled road known as County Road 34; then
</P>
<P>(14) East along County Road 34 until it intersects with an unlabeled road known as County Road 11; then
</P>
<P>(15) East along County Road 11 to the beginning point for the area at BM 1366, at the Carlos-Darling Bridge.
</P>
<CITA TYPE="N">[T.D. TTB-29, 70 FR 38003, July 1, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.178" NODE="27:1.0.1.1.7.3.45.158" TYPE="SECTION">
<HEAD>§ 9.178   Columbia Gorge.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Columbia Gorge”.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the Columbia Gorge viticultural area are 10 United States Geological Survey, 1:24,000 scale, topographic maps. They are—
</P>
<P>(1) Hood River Quadrangle, Oregon—Washington, 1994;
</P>
<P>(2) Northwestern Lake Quadrangle, Washington, 1983;
</P>
<P>(3) Husum Quadrangle, Washington—Klickitat Co., 1994;
</P>
<P>(4) Appleton Quadrangle, Washington—Klickitat Co., 1994;
</P>
<P>(5) Lyle Quadrangle, Washington—Oregon, 1994;
</P>
<P>(6) Brown Creek Quadrangle, Oregon, 1994;
</P>
<P>(7) Ketchum Reservoir Quadrangle, Oregon, 1994;
</P>
<P>(8) Parkdale Quadrangle, Oregon—Hood River Co., 1994;
</P>
<P>(9) Dee Quadrangle, Oregon—Hood River Co., 1994; and
</P>
<P>(10) Mt. Defiance Quadrangle, Oregon—Washington, 1994.
</P>
<P>(c) <I>Boundary.</I> The Columbia Gorge viticultural area is located in Hood River and Wasco Counties, Oregon, and Skamania and Klickitat Counties, Washington. The area's point of beginning is on the Hood River map, at the intersection of Washington State Highway 14 and the R9E-R10E line, close to Tunnel 4, on the north bank of the Columbia River. From this point, the boundary line—
</P>
<P>(1) Goes 1.5 miles straight north along the R9E-R10E line to the northwest corner of section 19, T3N, R10E (Hood River Quadrangle);
</P>
<P>(2) Continues 2 miles straight east along the section line to the northeast corner of section 20, T3N, R10E (Hood River Quadrangle);
</P>
<P>(3) Goes 4.1 miles straight north along the section line, crossing onto the Northwestern Lake map, to the northwest corner of section 33, T4N, R10E (Northwestern Lake Quadrangle);
</P>
<P>(4) Continues 1 mile straight east on the section line to the northeast corner of section 33, T4N, R10E (Northwestern Lake Quadrangle);
</P>
<P>(5) Goes 1 mile straight north on the section line to the northwest corner of section 27, T4N, R10E (Northwestern Lake Quadrangle);
</P>
<P>(6) Continues 1 mile straight east on the section line to the northeast corner of section 27, T4N, R10E (Northwestern Lake Quadrangle);
</P>
<P>(7) Goes 3.8 miles north on the section line to its intersection with the T4N-T5N line, R10E (Northwestern Lake Quadrangle);
</P>
<P>(8) Continues 4 miles straight east on the T4N-T5N line, crossing onto the Husum map, to the northeast corner of section 5, R11E (Husum Quadrangle);
</P>
<P>(9) Goes 2 miles straight south on the section line to the southwest corner of section 9, T4N, R11E (Husum Quadrangle);
</P>
<P>(10) Continues 2 miles straight east on the section line to the northeast corner of section 15, T4N, R11E (Husum Quadrangle);
</P>
<P>(11) Goes 3 miles straight south on the section line to the southwest corner of section 26, T4N, R11E (Husum Quadrangle);
</P>
<P>(12) Continues 2 miles straight east on the section line, crossing onto the Appleton map, to the R11E-R12E line (Appleton Quadrangle);
</P>
<P>(13) Goes 1.25 miles straight south on the R11E-R12E line to its intersection with the 2,000-foot contour line near the northeast corner of section 1, T3N (Appleton Quadrangle);
</P>
<P>(14) Continues 11 miles south along the meandering 2,000-foot contour line through sections 1 and 12; then generally east through sections 7, 18, 8, and 9 to section 10; then generally north, weaving back and forth between sections 3, 4, 33, and 34; then south to section 3, until the 2,000-foot contour line first intersects the section line between sections 2 and 3, near a creek and an unnamed light duty road, T3N, R12E (Appleton Quadrangle);
</P>
<P>(15) Goes 5.1 miles straight south on the section line, crossing onto the Lyle map, and continuing south until it intersects with the Klickitat River along the section 34 east boundary line, T3N, R12E (Lyle Quadrangle);
</P>
<P>(16) Continues 0.9 mile generally southwest along the Klickitat River until it joins the Columbia River, and then continues 0.4 mile southwest in a straight line to the Washington-Oregon State line in the center of the Columbia River, section 3, T2N, R12E (Lyle Quadrangle);
</P>
<P>(17) Follows the Oregon-Washington state line 2.4 miles generally southeast until it intersects with a northward extension of the R12E-R13E line, T2N (Lyle Quadrangle);
</P>
<P>(18) Goes 11 miles straight south on the R12E-R13E line, crossing onto the Brown Creek map, to its intersection with the T1N-T1S Base Line at the southeast corner of section 36 (Brown Creek Quadrangle);
</P>
<P>(19) Continues 6.1 miles straight west along the T1N-T1S Base Line, crossing onto the Ketchum Reservoir map, to its intersection with the R11E-R12E line at the southeast corner of section 36 (Ketchum Reservoir Quadrangle); 
</P>
<P>(20) Goes 6 miles straight north on the R11E-R12E line to its intersection with the T1N-T2N line at the northeast corner of section 1 (Ketchum Reservoir Quadrangle); 
</P>
<P>(21) Continues 6.2 miles straight west on the T1N-T2N line, crossing onto the Parkdale map, to its intersection with the R10E-R11E line at the southeast corner of section 36 (Parkdale Quadrangle); 
</P>
<P>(22) Goes 1.85 miles south on the R10E-R11E line to its intersection with the 2,000-foot contour line near the southeast corner of section 12, T1N, R10E (Parkdale Quadrangle); 
</P>
<P>(23) Continues 10.1 miles along the meandering 2,000-foot contour line generally southwest through sections 12, 13, 14, 23, 22, 26, 27, and 34 in T1N, and section 4 in T1S, to its intersection with the section 4 south boundary line, T1S, R10E (Parkdale Quadrangle); 
</P>
<P>(24) Goes 2.4 miles straight west along the section line to its intersection with the R9E-R10E line, just west of Trout Creek, at the southwest corner of section 6, T1S (Parkdale Quadrangle); 
</P>
<P>(25) Continues 1 mile straight north along the R9E-R10E line to its intersection with the T1S-T1N Base Line at the northwest corner of section 6 (Parkdale Quadrangle); 
</P>
<P>(26) Goes 1.3 miles straight west along the T1S-T1N Base Line, crossing onto the Dee map, to its intersection with the R9E-R10E line at the southwest corner of section 21 (Dee Quadrangle); 
</P>
<P>(27) Continues 3.1 miles north along the R9E-R10E line to the southeast corner of section 13, T1N (Dee Quadrangle); 
</P>
<P>(28) Goes 2 miles west along the section line to the southwest corner of section 14, T1N, R9E (Dee Quadrangle); 
</P>
<P>(29) Continues 1 mile straight north along the section line to the northwest corner of section 14, T1N, R9E (Dee Quadrangle); 
</P>
<P>(30) Goes 1 mile east along the section line to the northeast corner of section 14, T1N, R9E (Dee Quadrangle); 
</P>
<P>(31) Continues 2 miles straight north along the section line until its intersection with the T1N-T2N line, R9E (Dee Quadrangle); 
</P>
<P>(32) Goes 1 mile straight east along the T1N-T2N line to the southeast corner of section 36, R9E (Dee Quadrangle); 
</P>
<P>(33) Continues 6.75 miles straight north along the R9E-R10E line, crossing onto the Mt. Defiance map, to the Washington-Oregon State line in the Columbia River, T3N (Mt. Defiance Quadrangle); 
</P>
<P>(34) Goes 1 mile straight east-northeast along the State line, crossing onto the Hood River map, to its intersection with a southward extension of the R9E-R10E line, T3N (Hood River Quadrangle); and
</P>
<P>(35) Continues 0.6 mile north along the R9E-R10E extension, returning to the point of beginning at its intersection with the Washington State Highway 14, close to Tunnel 4, on the north bank of the Columbia River (Hood River Quadrangle).
</P>
<CITA TYPE="N">[T.D. TTB-11, 69 FR 25833, May 10, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 9.179" NODE="27:1.0.1.1.7.3.45.159" TYPE="SECTION">
<HEAD>§ 9.179   Southern Oregon.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Southern Oregon”.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Southern Oregon viticultural area are two 1:250,000 scale, USGS topography maps. They are titled:
</P>
<P>(1) Roseburg, Oregon—1958, revised 1970; and
</P>
<P>(2) Medford, Oregon; California—1955, revised 1976.
</P>
<P>(c) <I>Boundary.</I> The Southern Oregon viticultural area is located entirely within Douglas, Jackson, and Josephine Counties, Oregon. The beginning point is on the Roseburg map at the intersection of Interstate Highway 5 and the Douglas-Lane County line, T21S, R4W.
</P>
<P>(1) From the beginning point, proceed north along the Douglas-Lane County line approximately 0.5 miles to the 1,000-foot contour line; then
</P>
<P>(2) Proceed northwest along the 1,000-foot contour line to the Douglas-Lane County line; then west along the County line approximately 2.5 miles, returning to the 1,000-foot contour line; then in a generally westerly direction along the 1,000-foot contour line to its first intersection with the R9W-R10W range line; then
</P>
<P>(3) Proceed along the 1,000-foot contour line, crossing the R9W-R10W range line four more times; then proceed south along the R9W-R10W range line approximately 2.75 miles to the center of the Umpqua River; then along a straight line in an easterly direction approximately 6.25 miles to the intersection of range line R8W-R9W with the center of the Umpqua River; then south along range line R8W-R9W approximately 3.5 miles to its intersection with township line T22S-T23S; then
</P>
<P>(4) Proceed southeast approximately 8.5 miles along a straight line to the intersection of township line T23S-T24S with range line R7W-R8W; then south along the R7W-R8W range line approximately 8 miles to its intersection with the 1,000-foot contour line; then in a southeasterly direction in a straight line approximately 3.5 miles toward the intersection of township line T25S-T26S with range line R6W-R7W, but stopping short at the 1,000-foot contour line; then
</P>
<P>(5) Proceed in a southerly direction along the 1,000-foot contour line to the intersection of township line T27S-T28S with range line R7W-R8W; then in a southwesterly direction in a straight line approximately 3.5 miles toward the intersection of township line T28S-T29S with range line R8W-R9W, but stopping short and returning to the 1,000-foot contour line near the center of T28S, R8W; then generally south along the 1,000-foot contour line to its intersection with township line T29S-T30S; then
</P>
<P>(6) Proceed east along township line T29S-T30S approximately 0.33 mile, rejoining the 1,000-foot contour line; then in a northerly and eventually a southerly direction along the 1,000-foot contour line, passing onto the Medford map, and past the town of Riddle to range line R6W-R7W; then south along the R6W-R7W range line approximately 15 miles to the Josephine-Douglas County line; then in a general northeasterly direction along the County line to its intersection with Interstate 5 approximately 1.3 miles south of Cow Creek ; then
</P>
<P>(7) Proceed southerly and southwesterly along southbound Interstate 5 to its junction with Wolf Creek and then north about 500 feet to the Southern Pacific Railway line; then westerly and southerly out of the town of Wolf Creek along the Southern Pacific Railway line to the rail line's intersection with Hugo Road at the town of Hugo; then southwesterly along Hugo Road to the point where Hugo Road crosses Jumpoff Joe Creek; then westerly and downstream along that creek to the intersection of Jumpoff Joe Creek and the Rogue River; then
</P>
<P>(8) Proceed northwesterly and downstream along the Rogue River to the first point where the Wild and Scenic Rogue River designated area touches the easterly boundary of the Siskiyou National Forest, just south of Galice; then
</P>
<P>(9) Proceed in a generally southwesterly direction (with many diversions) along the easterly border of the Siskiyou National Forest to the 42 degree 0 minute north latitude line; then easterly along the latitude line to the point where the Siskiyou National Forest boundary again crosses into Oregon, approximately 1 mile east of U.S. Highway 199; then
</P>
<P>(10) Proceed in a generally northeasterly direction and then in a southeasterly direction (with many diversions) along the northern boundary of the Siskiyou National Forest to the point where the Siskiyou National Forest touches the Rogue River National Forest at Big Sugarloaf Peak; then
</P>
<P>(11) Proceed in a generally easterly direction (with many diversions) along the northern border of the Rogue River National Forest to the point where the Rogue River National Forest intersects with Slide Creek approximately 6 miles southeast of Ashland; then
</P>
<P>(12) Proceed southeasterly and northeasterly along Slide Creek to the point where the creek intersects State Route 273; then northwesterly along State Route 273 to the point where it intersects State Highway 66; then proceed in an easterly direction approximately 5 miles along State Route 66 to the east line of T39S, R2E; then
</P>
<P>(13) Proceed north along the east line of T39S, R2E to the northeast corner of T39S, R2E; then westerly approximately 5 miles along the north line of T39S, R2E, to the 2,600 foot contour line; then in a northerly direction following the 2,600 foot counter line across Walker Creek and then in a southwesterly direction to the point where the 2,600 foot contour line touches the east line of T38S, R1E; then
</P>
<P>(14) Proceed northerly along the east line of T38S, R1E, to the northeast corner of T38S, R1E; then
</P>
<P>(15) Proceed westerly along the north line of T38S, R1E, to the northwest corner of T38S, R1E; then
</P>
<P>(16) Proceed northerly along the west line of T37S, R1E, to the northwest corner of T37S, R1E; then
</P>
<P>(17) Proceed easterly along the north lines of T37S, R1E, and T37S, R2E, to the southeast corner of T36S, R2E; then
</P>
<P>(18) Proceed northerly along the east line of T36S, R2E, to the northeast corner of T36S, R2E; then
</P>
<P>(19) Proceed westerly along the north line of T36S, R2E, to the northwest comer of T36S, R2E; then
</P>
<P>(20) Proceed northerly along the east line of T35S, R1E, to the northeast comer of T35S, R1E; then
</P>
<P>(21) Proceed westerly along the north line of T35S, R1E, to the northwest corner of T35S, R1E; then
</P>
<P>(22) Proceed northerly along the east line of T34S, R1W, to the northeast corner of T34S, R1W; then
</P>
<P>(23) Proceed westerly along the common boundary line of T34S-T33S to the northwest corner of T34S, R5W; then
</P>
<P>(24) Proceed northerly along the west line of T33S, R5W, to the Josephine-Douglas County line; thence in a generally east, northeasterly direction along the county line to the intersection of R3W-R4W range line; thence north along the R3W-R4W range line approximately 11.8 miles to the 1,000-foot contour line just south of State Route 227 southeast of the town of Days Creek; then
</P>
<P>(25) Proceed in an easterly, westerly, and eventually northerly along the 1,000-foot contour line, crossing to the Roseburg map from the Medford map, to a point approximately 3.5 miles east of Dillard, where the contour line crosses Interstate 5 on the Roseburg map; thence northeast along Interstate 5 approximately 0.25 mile, returning to the 1,000-foot contour line; thence in a generally northeasterly, southeasterly, northwesterly, and eventually northeasterly along the 1,000-foot contour line past the town of Idleyld Park to the R2W-R3W range line; then
</P>
<P>(26) Proceed north along range line R2W-R3W approximately 1.75 miles to the T25S-T26S township line; thence west along township line T25S-T26S approximately .25 mile, returning to the 1,000-foot contour line; thence in a generally westerly and then a northerly direction along the 1,000-foot contour line toward the valley of Calapooya Creek to the R3W-R4W range line; thence north along range line R3W-R4W approximately 2.25 miles, back to the 1,000-foot contour line; then
</P>
<P>(27) Proceed in a westerly and then a northerly direction along the 1,000-foot contour line to the T23S-T24S township line, then east along the T23S-T24S township line approximately 2.75 miles to the 1,000-foot contour line; then in a northerly direction along the 1,000-foot contour line to its intersection with the Douglas-Lane County line; thence north along the county line approximately 0.75 mile to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-19, 69 FR 70892, Dec. 8, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 9.180" NODE="27:1.0.1.1.7.3.45.160" TYPE="SECTION">
<HEAD>§ 9.180   Dundee Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Dundee Hills”.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundaries of the Dundee Hills viticultural area are three United States Geological Survey (USGS) 1:24,000 scale maps. They are titled:
</P>
<P>(1) Dundee Quadrangle, Oregon, 1956, revised 1993;
</P>
<P>(2) Newberg Quadrangle, Oregon, 1961, photorevised 1985; and
</P>
<P>(3) Dayton Quadrangle, Oregon, 1957, revised 1992.
</P>
<P>(c) <I>Boundary.</I> The Dundee Hills viticultural area is located in Yamhill County, Oregon, near the town of Newberg, and is entirely within the Willamette Valley viticultural area. The boundary of the Dundee Hills viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Dundee map at the intersection of the 200-foot contour line with Kuehne Road at the common boundary line of sections 47 and 48, T3S, R3W;
</P>
<P>(2) From the beginning point, proceed east then south along the meandering 200-foot contour line, crossing over to and back off the Newberg map, and then cutting diagonally southwest through the town of Dundee to the 200-foot contour line's intersection with Hess Creek, section 34, T3S, R3W (Dundee Quadrangle); then
</P>
<P>(3) Proceed south, then west, and then northeast, along the meandering 200-foot contour line, twice crossing over to and back off the Dayton map, to the contour line's intersection with Abbey Road after the line passes a quarry and crosses the two forks of Millican Creek in section 52, T3S, R3W (Dundee Quadrangle); then
</P>
<P>(4) Proceed generally north on Abbey Road to Kuehne Road and then follow Kuehne Road northeasterly to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-18, 69 FR 69527, Nov. 30, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 9.181" NODE="27:1.0.1.1.7.3.45.161" TYPE="SECTION">
<HEAD>§ 9.181   McMinnville.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “McMinnville.”
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the McMinnville viticultural area are five United States Geological Survey (USGS) 1:24,000 scale topographic maps titled:
</P>
<P>(1) McMinnville, Oregon, 1957, revised 1992;
</P>
<P>(2) Muddy Valley, Oregon, 1979, revised 1992;
</P>
<P>(3) Stony Mountain, Oregon, 1979, revised 1992;
</P>
<P>(4) Sheridan, Oregon, 1956, revised 1992; and
</P>
<P>(5) Ballston, Oregon, 1956, revised 1992.
</P>
<P>(c) <I>Boundary.</I> The McMinnville viticultural area is located in Yamhill County, Oregon, and is entirely within the Willamette Valley viticultural area. The boundary of the McMinnville viticultural area is as described below—
</P>
<P>(1) The beginning point is on the McMinnville, Oregon, map where the 200-foot contour line intersects the common boundary between section 13, T4S, R5W, and section 18, T4S, R4W. From this point follow the meandering 200-foot contour line westerly for about 2 miles to its intersection with Baker Creek Road in section 54, T4W, R5W, on the Muddy Valley map;
</P>
<P>(2) Then follow Baker Creek Road west about 2 miles through Happy Valley to the road's intersection with Power House Hill Road in section 50, T4S, R5W (Muddy Valley map);
</P>
<P>(3) Proceed southwest on Power House Hill Road for about 1.4 miles to its intersection with Peavine Road in section 17, T4S, R5W (Muddy Valley map);
</P>
<P>(4) Follow Peavine Road west and then northwest about 1.5 miles to its intersection with Gill Creek in section 18, T4S, R5W (Muddy Valley map);
</P>
<P>(5) Follow Gill Creek southerly (downstream) for about 0.6 miles to its intersection with the 800-foot contour line in section 18, T4S, R5W, on the Muddy Valley map;
</P>
<P>(6) From Gill Creek, follow the meandering 800-foot contour line westerly, crossing Deer Creek in section 14, T4S, R6W, on the Stony Mountain map, and, crossing back and forth four times between the Stony Mountain and Muddy Valley maps in section 24, T4S, R6W, continue southwesterly to the contour line's intersection with Thomson Mill Road in section 27, T4S, R6W, on the Stony Mountain map;
</P>
<P>(7) Continue to follow the meandering 800-foot contour line southwesterly, crossing Cronin and Beaver Creeks, to the 800-foot contour line's intersection with Rock Creek Road in section 46, T5S, R6W, on the Stony Mountain map;
</P>
<P>(8) Then follow Rock Creek Road south for about 5 miles to its intersection with the West Valley Highway in section 44, T5S, R6W, on the Sheridan map, and continue about 200 feet due south in a straight line to from that intersection to the 200-foot contour line, just north of the Yamhill River (Sheridan map);
</P>
<P>(9) Then follow the meandering 200-foot contour line easterly, passing north of most of the village of Sheridan, crossing onto the Ballston map, and continue easterly and then northerly along the 200-foot contour line to its first intersection with Christensen Road at the common boundary between sections 27 and 34, T5S, R5W (Ballston map);
</P>
<P>(10) Continue to follow the 200-foot contour line westerly and then northerly, passing onto the Muddy Valley map and then the Stony Mountain map, to the contour line's intersection with Deer Creek in section 64, T5S, R6W (Stony Mountain map);
</P>
<P>(11) Cross Deer Creek and follow the 200-foot contour line southeasterly, crossing Dupree Creek in section 64, T5S, R6W, on the Muddy Valley map, and, crossing onto the Ballston map, continue southerly and then easterly along the 200-foot contour line to its intersection with State Route 18 at the hamlet of Bellevue, section 28, T5S, R5W (Ballston map);
</P>
<P>(12) Continue westerly then northerly along the meandering 200-foot contour line, crossing Latham Road at the northern boundary of section 53, T5S, R5W, and, crossing onto the Muddy Valley map, continue northerly along the 200-foot contour line to its intersection with Muddy Creek in section 40, T5S, R5W (Muddy Valley map);
</P>
<P>(13) Crossing Muddy Creek, follow the 200-foot contour line southerly, then easterly, and then northerly to its intersection with Peavine Road in the western extension of section 47, T4S, R5W (Muddy Valley map);
</P>
<P>(14) From Peavine Road, continue northeasterly along the meandering 200-foot contour line, crossing Cozine Creek in section 46, T4S, R5W, and, crossing onto the McMinnville map, follow the 200-foot contour line across Redmond Hill Road in section 44, T4S, R5W, and return to the point of beginning (McMinnville map)
</P>
<CITA TYPE="N">[T.D. TTB-22, 70 FR 2804, Jan. 18, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.182" NODE="27:1.0.1.1.7.3.45.162" TYPE="SECTION">
<HEAD>§ 9.182   Ribbon Ridge.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Ribbon Ridge.”
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps used to determine the boundaries of the Ribbon Ridge viticultural area are the following two United States Geological Survey (USGS), 1:24,000 scale, topographical maps (7.5 minute series).
</P>
<P>(1) Laurelwood Quadrangle, Oregon, 1956, photorevised 1978; and
</P>
<P>(2) Dundee Quadrangle, Oregon, 1956, revised 1993.
</P>
<P>(c) <I>Boundary.</I> The Ribbon Ridge viticultural area is located in northern Yamhill County, Oregon, northwest of the town of Dundee.
</P>
<P>(1) The beginning point is on the Laurelwood Quadrangle map at the intersection of a light-duty road known locally as Albertson Road and Dopp Road (named on the Dundee map), just east of the Lake View School, section 58, T2S, R3W. From the beginning point, the boundary line—
</P>
<P>(2) Continues south on Dopp Road for about 4.9 miles, crossing onto the Dundee map, to the road's intersection with North Valley Road, near the Erwin Young School, section 39, T3S, R3W (Dundee Quadrangle); then
</P>
<P>(3) Continues west then north on North Valley Road for about 5 miles, crossing over to the Laurelwood map, to the road's intersection with Laughlin and Albertson Roads, just west of the Lake View School, section 58, T2S, R3W (Laurelwood Quadrangle); then
</P>
<P>(4) Continues east on Albertson Road for about 0.2 miles and returns to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-27, 70 FR 31344, June 1, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.183" NODE="27:1.0.1.1.7.3.45.163" TYPE="SECTION">
<HEAD>§ 9.183   Yamhill-Carlton.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Yamhill-Carlton”. For purposes of part 4 of this chapter, “Yamhill-Carlton” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Yamhill-Carlton viticultural area are eight 1:24,000 scale United States Geological Survey topography maps. They are titled:
</P>
<P>(1) Gaston Quadrangle, Oregon, 1956, revised 1992;
</P>
<P>(2) Laurelwood Quadrangle, Oregon, 1956, revised 1992;
</P>
<P>(3) Dundee Quadrangle, Oregon, 1956, revised 1993;
</P>
<P>(4) Carlton Quadrangle, Oregon—Yamhill Co., 1957, revised 1992;
</P>
<P>(5) Fairdale Quadrangle, Oregon-Yamhill Co., 1979;
</P>
<P>(6) McMinnville Quadrangle, Oregon—Yamhill Co., 1957, revised 1992;
</P>
<P>(7) Muddy Valley Quadrangle, Oregon—Yamhill Co., 1979, revised 1992; and
</P>
<P>(8) Turner Creek Quadrangle, Oregon, 1979.
</P>
<P>(c) <I>Boundary.</I> The Yamhill-Carlton viticultural area is located in Yamhill and Washington Counties, Oregon, and is entirely within the Willamette Valley viticultural area. The Yamhill-Carlton viticultural area is limited to lands at or above 200 feet in elevation and at or below 1,000 feet in elevation within its boundary, which is described as follows—
</P>
<P>(1) The point of beginning is on the Gaston map in the village of Gaston at the intersection of Gaston Road East (E. Main Street within Gaston) and the 200-foot elevation line, approximately 225 feet west of State Route 47, section 49, T1S, R4W. From this beginning point, proceed southerly and then southeasterly about 8.15 miles along the meandering 200-foot elevation line (crossing to and from the Laurelwood map in sections 12 and 13, T2S, R4W, and then returning to the Laurelwood map) to the 200-foot elevation line's intersection with Spring Hill Road, section 58, T2S, R3W (Laurelwood Quadrangle); then
</P>
<P>(2) Proceed south 1.1 miles on Spring Hill Road, which becomes North Valley Road at Laughlin Road, crossing onto the Dundee map, to the road's intersection with the 200-foot elevation line, section 30, T2S, R3W (Dundee Quadrangle); then
</P>
<P>(3) Proceed northerly then southerly for approximately 5 miles along the 200-foot elevation line, crossing over to and back from the Laurelwood map, to the 200-foot elevation line's intersection with State Route 240, section 47, T3S, R3W (Dundee Quadrangle); then
</P>
<P>(4) Proceed straight west for 0.2 mile on State Route 240 to its intersection with Kuehne Road at the 207-foot benchmark, section 47, T3S, R3W (Dundee Quadrangle); then
</P>
<P>(5) Proceed southerly for about 1.9 miles on Kuehne Road to its intersection with Abbey Road, section 50, T3S, R3W (Dundee Quadrangle); then
</P>
<P>(6) Proceed southerly 1.4 miles on Abbey Road to its intersection with the 200-foot elevation line, north of the 174-foot elevation point, section 52, T3S, R3W (Dundee Quadrangle); then
</P>
<P>(7) Proceed southwesterly for about 2.1 miles along the meandering 200-foot elevation line to Lafayette Cemetery on the Carlton map in section 1, T4S, R4W, and turning northerly along the 200-foot elevation line, continue along the elevation line for about 6 miles, crossing to and from the Dundee map, to the 200-foot elevation line's intersection with Stag Hollow Road, north of Hendricks Road and 190-foot elevation point, section 24, T3S, R4W (Carlton Quadrangle); then
</P>
<P>(8) Continue westerly along the meandering 200-foot elevation line, turning northeasterly as the elevation line passes through the Carlton Lakes State Wildlife Refuge, then westerly as the elevation line crosses Stag Hollow Creek in section 47, T3S, R4W, then southerly as the elevation line crosses the North Yamhill River on the Fairdale map in section 43, T2S, R5W, then, returning to the Carlton map, continue southerly on the 200-foot elevation line to its intersection with Meadow Lake Road near the southwest corner of section 55, T3S, R4W (Carlton Quadrangle);
</P>
<P>(9) Continue westerly along the meandering 200-foot elevation line, crossing onto the Fairdale map, to the elevation line's intersection with the 123°17′30″ longitude line (north of Panther Creek) in the western extension of section 22, T3S, R5W (Fairdale Quadrangle); then
</P>
<P>(10) Proceed 0.2 mile straight south along the 123°17′30″ longitude line, crossing Panther Creek, to the line's intersection with the 200-foot elevation line south of the creek in the western extension of section 22, T3S, R5W (Fairdale Quadrangle); then
</P>
<P>(11) Proceed easterly and then southeasterly along the meandering 200-foot elevation line, crossing onto the Carlton map, then the McMinnville map, to the elevation line's third intersection with an unnamed light-duty road, southwest of the Henderson Benchmark in section 87, T4S, R4W (McMinnville Quadrangle);
</P>
<P>(12) Continue southerly and then westerly along the meandering 200-foot elevation line, crossing onto the Muddy Valley map, to the elevation line's intersection with Baker Creek Road (very near Baker Creek Road's intersection with High Heaven Road) in section 54, T4S, R5W (Muddy Valley Quadrangle); then
</P>
<P>(13) Proceed west-southwest for 0.8 mile on Baker Creek Road to its intersection with the 123°17′30″ longitude line in Happy Valley, section 54, T4S, R5W (Muddy Valley Quadrangle); then
</P>
<P>(14) Proceed straight north 13.4 miles on the 123°17′30″ longitude line, passing through the Fairdale map and crossing onto the Turner Creek map, to the longitude line's intersection with the 1,000-foot elevation line in the northwestern quadrant of section 10, T2S, R5W, approximately one mile diagonally northwest of the footbridge in Menefee Park (Turner Creek Quadrangle); then
</P>
<P>(15) Proceed easterly and then northerly for 4.1 miles along the meandering 1,000-foot elevation line to its intersection with the Washington-Yamhill County line at northern boundary of section 3, T2S, R5W (also the common T1S/T2S boundary line) (Turner Creek Quadrangle); then
</P>
<P>(16) Proceed straight east 3.9 miles along the Washington-Yamhill County line, crossing onto the Gaston map, to the county line's intersection with South Road, just east of Mt. Richmond Road, section 60, T2S, R4W (Gaston Quadrangle); then
</P>
<P>(17) Proceed east-northeast for 1.8 miles on South Road to its intersection with the 200-foot elevation line, 0.3 mile west of the Gaging Station, section 34, T1S, R4W (Gaston Quadrangle); then
</P>
<P>(18) Proceed easterly 1.9 miles along the 200-foot elevation line and return to the beginning point within the village of Gaston.
</P>
<P>(d) From February 7, 2005, until December 2, 2010, the name of this viticultural area was “Yamhill-Carlton District”. Effective December 3, 2010, this viticulture area is named “Yamhill-Carlton”. Existing certificates of label approval showing “Yamhill-Carlton District” as an appellation of origin are revoked by operation of this regulation on December 3, 2012.
</P>
<CITA TYPE="N">[T.D. TTB-20, 69 FR 71374, Dec. 9, 2004, as amended by T.D. TTB-87, 75 FR 67618, Nov. 3, 2010]


</CITA>
</DIV8>


<DIV8 N="§ 9.184" NODE="27:1.0.1.1.7.3.45.164" TYPE="SECTION">
<HEAD>§ 9.184   Trinity Lakes.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Trinity Lakes”.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the Trinity Lakes viticultural area are 11 1:24,000 scale USGS topographic maps. They are titled:
</P>
<P>(1) Carrville, Calif. Provisional Edition 1986;
</P>
<P>(2) Whisky Bill Peak, Calif. Provisional Edition 1986;
</P>
<P>(3) Damnation Peak, Calif. Provisional Edition 1982;
</P>
<P>(4) Trinity Center, Calif. Provisional Edition 1982;
</P>
<P>(5) Papoose Creek, Calif. Provisional Edition 1982;
</P>
<P>(6) Trinity Dam, Calif. Provisional Edition 1982;
</P>
<P>(7) Lewiston, Calif. Provisional Edition 1982;
</P>
<P>(8) Weaverville, Calif. Provisional Edition 1982;
</P>
<P>(9) Rush Creek Lakes, Calif. Provisional Edition 1982;
</P>
<P>(10) Siligo Peak, Calif. Provisional Edition 1982; and
</P>
<P>(11) Covington Mill, Calif. Provisional Edition 1982.
</P>
<P>(c) <I>Boundary.</I> The Trinity Lakes viticultural area is located in Trinity County in northern California. The boundary encompasses Trinity Lake and Lewiston Lake, both within the Trinity Lake unit of the Whiskeytown-Shasta-Trinity National Recreation Area, and a portion of the Trinity River basin below Lewiston Dam.
</P>
<P>(1) The beginning point is on the Carrville, California, quadrangle map on township line T38N/T37N at the northwest corner of section 5, T37N/R7W, near the Trinity River at Derrick Flat;
</P>
<P>(2) From the beginning point, follow township line T38N/T37N due east to the northeast corner of section 5, T37N/R7W;
</P>
<P>(3) Proceed due south on the eastern boundary of sections 5, 8, 17, and 20 to the northwest corner of section 28, T37N/R7W, near Snow Gulch;
</P>
<P>(4) Follow the northern boundary of section 28, T37N/R7W, due east to the section's northeast corner;
</P>
<P>(5) Continue due south on the eastern boundary of sections 28 and 33, T37N/R7W, to township line T37N/T36N at the northeast corner of section 4, T36N/R7W;
</P>
<P>(6) Proceed due east on township line T37N/T36N onto the Whisky Bill Peak, California quadrangle map to the R7W/R6W range line at the southwest corner of section 31, T37N/R6W, near the East Fork of the Trinity River;
</P>
<P>(7) Follow the R7W/R6W range line due north to the northwest corner of section 30, T37N/R6W;
</P>
<P>(8) Continue due east along the northern boundary of section 30, T37N/R6W, to the section's northeast corner;
</P>
<P>(9) Proceed due south on the eastern boundary of sections 30 and 31, T37N/R6W, and sections 6 and 7, T36N/R6W, and continue onto the Damnation Peak, California, quadrangle map to the southeast corner of section 7;
</P>
<P>(10) Follow the southern boundary of section 7, T36N/R6W, and section 12, T36N/R7W, due west onto the Trinity Center, California, quadrangle map to the northeast corner of section 14, T36N/R7W;
</P>
<P>(11) Continue due south along the eastern boundary of sections 14, 23, 26, and 35, T36N/R7W, to the boundary's intersection with township line T36N/T35N at the southeast corner of section 35;
</P>
<P>(12) Proceed due west along township line T36N/T35N approximately 0.5 mile to the township line's intersection with the 900-meter contour line;
</P>
<P>(13) Follow the meandering 900-meter contour line generally west through sections 35 and 34, T36N/R7W; cross the T36N/T35N township line and continue generally southwest on the contour line around Linton Ridge, through Bridge Gulch, Bragdon Gulch, and around Feeny Ridge; cross onto the Papoose Creek, California, quadrangle map and continue southwesterly to the contour line's first intersection with a line marked “NAT RECREATION BDY INDEFINITE,” approximately 2,000 feet north of Feeny Gulch;
</P>
<P>(14) Continue easterly on the 900-meter contour line over Feeny Gulch; then proceed southwesterly on the meandering contour line across Van Ness Creek, both Bear Gulches, Langdon Gulch, Digger Gulch, around Fairview Ridge, along the northern side of Papoose Arm, and over the North, East, and South Forks of Papoose Creek; continue westerly on the contour line along the southern side of Papoose Arm to the contour line's intersection with Little Papoose Creek in section 24, T34N/R8W;
</P>
<P>(15) Continue generally west along the meandering 900-meter contour line through sections 24, 23, 14, and 15, T34N/R8W; cross onto the Trinity Dam, California, quadrangle map and continue on the contour line through sections 15 and 22; pass back onto the Papoose Creek map and follow the contour line through sections 22, 23, and 22 again; then cross back onto the Trinity Dam map and follow the contour line to its intersection with the southern boundary of section 22, T34N/R8W;
</P>
<P>(16) Proceed due west along the southern boundary of section 22 to the northeast corner of section 28, T34N/R8W;
</P>
<P>(17) Follow the eastern boundary of sections 28 and 33, T34W/R8W, and section 4, T33N/R8W, due south onto the Lewiston, California, quadrangle map, and continue due south on the eastern boundary of sections 4, 9, 16, and 21 to the southeast corner of section 21, T33N/R8W;
</P>
<P>(18) Then proceed due west along the southern boundary of sections 21 and 20 to the northeast corner of section 30, T33N/R8W;
</P>
<P>(19) Follow the eastern boundary of section 30, T33N/R8W, due south to the section's southeast corner;
</P>
<P>(20) Continue due west along the southern boundary of section 30, T33N/R8W, and sections 25 and 26, T33N/R9W, to the northeast corner of section 34, T33N/R9W;
</P>
<P>(21) Proceed due south on the eastern boundary of section 34, T33N/R9W, and section 3, T32N/R9W, to the southeast corner of section 3 near Tom Lang Gulch;
</P>
<P>(22) Follow the southern boundary of section 3, T32N/R9W, due west onto the Weaverville, California, quadrangle map, and continue west along the southern boundary of sections 3, 4, and 5, T32N/R9W, to the southwest corner of section 5;
</P>
<P>(23) Then proceed due north along the western boundary of section 5, T32N/R9W, for approximately 0.8 mile to its intersection with the 700-meter contour line;
</P>
<P>(24) Follow the 700-meter contour line generally northwest through section 5, T32N/R9W, and then through sections 32, 31, 32 again, 29, and 28, T33N/R9W, to the contour line's intersection with the northern boundary of section 28;
</P>
<P>(25) Proceed due east along the northern boundary of section 28 across Limekiln Gulch and China Gulch to the southwest corner of section 22, T33N/R9W;
</P>
<P>(26) Follow the western boundary of section 22, T33N/R9W, due north to the section's northwest corner;
</P>
<P>(27) Then continue due east along the northern boundary of section 22, T33N/R9W, onto the Lewiston map to the section's northeast corner;
</P>
<P>(28) Proceed due north on the western boundary of section 14, T33N/R9W, to the section's northwest corner;
</P>
<P>(29) Follow the northern boundary of sections 14 and 13, T33N/R9W, due east to the R9W/R8W range line at the northeast corner of section 13;
</P>
<P>(30) Then proceed due north along the R9W/R8W range line onto the Trinity Dam map, and continue along the range line to the southeast corner of section 1, R9W/T34N, near Smith Gulch;
</P>
<P>(31) Continue due west along the southern boundary of section 1, T34N/R9W, for approximately 0.3 mile to its intersection with the 900-meter contour line;
</P>
<P>(32) Follow the meandering 900-meter contour line generally west over Tannery Gulch and around Tannery Ridge, cross onto the Rush Creek Lakes, California, quadrangle map, and continue along the 900-meter contour line to its intersection with Slate Creek in section 4, T34N/R9W;
</P>
<P>(33) Using the Rush Creek Lakes and Trinity Dam maps, follow the contour line generally northeast from Slate Creek, crossing Irish Gulch in section 3, T34N/R9W, (crossing back and forth between the two maps three times) to the contour line's intersection with township line T34N/T35N at the northern boundary of section 3, T34N/R9W, on the Trinity Dam map;
</P>
<P>(34) Continue generally northwest on the meandering 900-meter contour line and cross onto the Rush Creek Lakes map in section 34, T35N/R9W; continue northwesterly on the contour line over Cummings Creek, Bear Gulch, Snowslide Gulch, Sawmill Creek, and Van Matre Creek; cross onto the Siligo Peak, California, quadrangle map and continue generally northwest on the 900-meter contour line over Middle Creek and Owens Creek to the contour line's intersection with Stuart Fork;
</P>
<P>(35) Continue generally southeast on the 900-meter contour line over Fire Camp Creek, Lightning Creek, and Sunday Creek; cross onto the Rush Creek Lakes map and continue generally southeast on the contour line over Elk Gulch and Trinity Alps Creek; cross onto the Trinity Dam map in section 27, T35N/R9W, and proceed easterly along the contour line to its intersection with the eastern boundary of section 27, T35N/R9W;
</P>
<P>(36) Continue generally north along the 900-meter contour line through sections 26 and 23, T35N/R9W, cross onto the Covington Mill, California, quadrangle map in section 23, T35N/R9W, and continue northerly along the contour line to its intersection with Stoney Creek in the same section;
</P>
<P>(37) From Stoney Creek, continue generally south on the 900-meter contour line, cross back onto the Trinity Dam map in section 23, T35N/R9W, and continue southerly on the contour line through sections 23, 26, and 35 to the contour line's intersection with the eastern boundary of section 35, T35N/R9W, near that section's northeast corner;
</P>
<P>(38) Continue generally northeast on the meandering 900-meter contour line over Telephone Ridge, Buck Gulch, and Buck Ridge; cross onto the Covington Mill map in section 19, T35N/R8W, and continue northwesterly along the contour line across Mule Creek and Snowslide Gulch in section 13, T35N/R9W; continue on the contour line, cross Little Mule Creek in section 18, T35N/R8W, and continue southeasterly on the contour line to its intersection with a line marked “TRANS LINE SINGLE WOOD POLES” in section 20, T35N/R8W;
</P>
<P>(39) Continue generally northeast along the 900-meter contour line through sections 20 and 17, T35N/R8W, and cross Strope Creek, Mosquito Gulch, Greenhorn Gulch, Taylor Gulch, Stuart Fork (in section 5, T35N/R8W), and Davis Creek; cross onto the Trinity Center map in section 35, T36/R8W, and continue on the contour line to its intersection with the northern boundary of that section;
</P>
<P>(40) Proceed due east along the northern boundary of sections 35 and 36, T36N/R8W, to the R8W/R7W range line at the northeast corner of section 36;
</P>
<P>(41) Follow the R8W/R7W range line due north onto the Carrville map and continue along the range line to its intersection with township line T38N/T37N at the northwest corner of section 6, T37N/R7W; and
</P>
<P>(42) Proceed due east along township line T38N/T37N and return to the beginning point at the northwest corner of section 5, T37N/R7W.
</P>
<CITA TYPE="N">[T.D. TTB-24, 70 FR 9530, Feb. 28, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.185" NODE="27:1.0.1.1.7.3.45.165" TYPE="SECTION">
<HEAD>§ 9.185   Texoma.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Texoma”. For purposes of part 4 of this chapter, “Texoma” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the Texoma viticultural area are two United States Geological Survey, 1:250,000 scale, topographic maps. They are titled:
</P>
<P>(1) Sherman, Texas; Oklahoma, 1954, revised 1977; and
</P>
<P>(2) Texarkana, Tex.; Ark.; Okla.; La., 1953, revised 1972.
</P>
<P>(c) <I>Boundary.</I> The Texoma viticultural area is located in Montague, Cooke, Grayson, and Fannin Counties, Texas. The boundary is defined as follows:
</P>
<P>(1) The beginning point is the northwest corner of Montague County (at the Red River, which is also the Texas-Oklahoma State line) on the Sherman map. From this point, the boundary line:
</P>
<P>(2) Follows the Red River eastward along the Texas-Oklahoma State line, passes onto the Texarkana map, and continues to the northeast corner of Fannin County; then
</P>
<P>(3) Continues southward along the eastern Fannin County line to a point approximately three miles west of Petty, Texas, where a power line shown on the Texarkana map crosses the county line; then
</P>
<P>(4) Continues southwest in a straight line for approximately 13 miles to the intersection of State Routes 34/50 and State Route 64 at Ladonia, Texas; then
</P>
<P>(5) Follows State Route 34 west to its intersection with State Route 68; then
</P>
<P>(6) Continues west-southwesterly in a straight line from that intersection to the intersection of U.S. Highway 69 and State Route 78 at Leonard, Texas, on the Sherman map; then
</P>
<P>(7) Continues northwest on U.S. Highway 69 for approximately 6 miles to the intersection of U.S. Highway 69 and State Route 121 at Trenton, Texas; then
</P>
<P>(8) Continues westerly in a straight line to the intersection of State Routes 160 and 121, and then continues west on State Route 121 to its intersection with U.S. Highway 75 at Van Alstyne, Texas; then
</P>
<P>(9) Continues south along U.S. Highway 75 to the Grayson County line; then
</P>
<P>(10) Continues west along the southern Grayson County line and then the southern Cooke County line to the county line's intersection with Interstate 35; then
</P>
<P>(11) Continues north along Interstate 35 to its intersection with State Route 922 in Valley View, Texas; then
</P>
<P>(12) Follows State Route 922 west for approximately 17 miles to Rosston, Texas; then
</P>
<P>(13) Continues west-southwest from Rosston in a straight line for approximately 19 miles to the intersection of U.S. Highway 287 and State Route 101 at Sunset, Texas; then
</P>
<P>(14) Follows U.S. 287 northwest approximately 17 miles to the western Montague County line; and
</P>
<P>(15) Continues north along the western Montague County line to the beginning point at the northwest corner of Montague County.
</P>
<CITA TYPE="N">[T.D. TTB-38, 70 FR 72716, Dec. 7, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.186" NODE="27:1.0.1.1.7.3.45.166" TYPE="SECTION">
<HEAD>§ 9.186   Niagara Escarpment.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Niagara Escarpment”. For purposes of part 4 of this chapter, “Niagara Escarpment” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the “Niagara Escarpment” viticultural area are five United States Geological Survey 1:250,000 scale topographic maps. They are titled:
</P>
<FP-1>(1) Lewiston, New York—Ontario, 1980; 
</FP-1>
<FP-1>(2) Ransomville, New York, 1980; 
</FP-1>
<FP-1>(3) Cambria, New York, 1980; 
</FP-1>
<FP-1>(4) Lockport, New York, 1980; and 
</FP-1>
<FP-1>(5) Gasport, New York, 1979.
</FP-1>
<P>(c) <I>Boundary.</I> The Niagara Escarpment viticultural area is located in Niagara County, New York. The boundary of the Niagara Escarpment viticultural area is as described below:
</P>
<P>(1) On the Lewiston map, south of the village of Lewiston within the Brydges State Artpark, begin on the east bank of the Niagara River at the mouth of Fish Creek; then
</P>
<P>(2) Proceed north along the east bank of the Niagara River about 0.6 mile to the northern boundary of the Brydges State Artpark; then
</P>
<P>(3) Proceed east along the northern boundary of the Brydges State Artpark about 0.8 mile to the park's northeast corner, and continue east in a straight line a short distance to the Robert Moses Parkway; then
</P>
<P>(4) Proceed north along the Robert Moses Parkway about 0.25 mile to Ridge Road, and then east on Ridge Road (State Route 104) about 0.15 mile to the road's first intersection with the 400-foot contour line; then
</P>
<P>(5) Continue easterly along the 400-foot contour line, through the Ransomville map (crossing Model City Road, Dickersonville Road, and State Route 429) and the Cambria map (crossing Baer Road, Plank Road, and State Route 93/270), and pass onto the Lockport map to the contour line's junction with Sunset Drive; then
</P>
<P>(6) Proceed north on Sunset Drive 0.3 mile to its intersection with Stone Road, then east on Stone Road about 1.25 miles (crossing Eighteenmile Creek) to the intersection of Stone, Purdy, and Old Niagara Roads, and continue east along Old Niagara Road about 0.4 mile to its first intersection with the 400-foot contour line; then
</P>
<P>(7) Proceed northeasterly along the 400-foot contour line to its first junction with Slayton Settlement Road, proceed east on Slayton Settlement Road to Day Road, and then proceed north on Day Road to its first junction with the 400-foot contour line; then
</P>
<P>(8) Proceed easterly along the 400-foot contour line, pass onto the Gasport map (crossing Humphrey and Orangeport Roads), and continue to the contour line's junction with Quaker Road; then
</P>
<P>(9) Proceed north on Quaker Road about 0.4 mile to its intersection with State Route 104, and then east on State Route 104 to its intersection with Johnson Creek (at the village of Johnson Creek); then
</P>
<P>(10) Proceed south along Johnson Creek (crossing the Erie Canal), to the creek's junction with Mountain Road; then
</P>
<P>(11) Proceed west on Mountain Road to its intersection with Gasport Road, then south on Gasport Road to its intersection with Mill Road, then west on Mill Road to its intersection with Kayner Road, then north on Kayner Road 0.65 mile to its junction with the 600-foot contour line; then
</P>
<P>(12) Proceed westerly along the 600-foot contour line (crossing Cottage Road) to its junction with State Route 31, and continue west on State Route 31, passing onto the Lockport map and crossing the Erie Canal within the city of Lockport, to the intersection of State Route 31 and Upper Mountain Road; then
</P>
<P>(13) Proceed north-northwesterly on Upper Mountain Road 0.65 mile and then northerly on Sunset Drive 0.25 mile to the junction of Sunset Drive and the 600-foot contour line; then
</P>
<P>(14) Proceed westerly along the 600-foot contour line, continuing through the Cambria map (crossing State Route 93/270 and then Blackman and Baer Roads), through the Ransomville map (crossing State Route 429 just north of Pekin and then crossing Black Nose Spring and Model City Roads), and, passing onto the Lewiston map, continue westward along the contour line (through the Escarpment, Ramsey Ridge, and Lewiston Heights subdivisions), to the contour line's junction with Mountain View Drive (just east of State Highway 104 near the Niagara Falls Country Club); then
</P>
<P>(15) Proceed west along Mountain View Drive to its intersection with State Route 104, and then proceed south on State Route 104 to its junction with Fish Creek; then
</P>
<P>(16) Proceed westerly along Fish Creek and return to the beginning point on the east bank of the Niagara River at the mouth of Fish Creek.
</P>
<CITA TYPE="N">[T.D. TTB-33, 70 FR 53303, Sept. 8, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.187" NODE="27:1.0.1.1.7.3.45.167" TYPE="SECTION">
<HEAD>§ 9.187   Covelo.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Covelo”. For purposes of part 4 of this chapter, “Covelo” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the Covelo viticultural area are four United States Geological Survey 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Dos Rios, California Quadrangle,—Mendocino Co., 7.5 Minute Series, edition of 1967, revised 1994;
</P>
<P>(2) Covelo West, California Quadrangle,—Mendocino Co., 7.5 Minute Series, edition of 1967, photoinspected 1973;
</P>
<P>(3) Covelo East, California Quadrangle,—Mendocino Co., 7.5 Minute Series, edition of 1967, revised 1994; and
</P>
<P>(4) Jamison Ridge, California Quadrangle,—Mendocino Co., 7.5 Minute Series, edition of 1967, revised 1994.
</P>
<P>(c) <I>Boundary.</I> The Covelo viticultural area surrounds the town of Covelo in northern Mendocino County, California. The area's boundaries are defined as follows—
</P>
<P>(1) Beginning on the Dos Rios map at the intersection of State Highway 162 and the southern boundary of section 25, T22N, R13W (labeled Inspiration Point on the map), proceed west 0.3 miles on Highway 162 to BM 2006 in section 36, T22N, R13W; then
</P>
<P>(2) Proceed straight west-northwest 1.5 miles to the 2,537-foot elevation point in the northwest quadrant of section 26, T22N, R13W, Dos Rios map; then
</P>
<P>(3) Proceed straight northwest 1.6 miles to the 2,488-foot peak in the northwest quadrant of section 22, T22N, R13W, Covelo West map; then
</P>
<P>(4) Proceed straight north-northwest 0.75 miles to the 2,262-foot peak on the section 15 and 16 boundary line, T22N, R13W, and continue straight north 1.6 miles to the 2,247-foot peak on the section 3 and 4 boundary line, T22N, R13W, Covelo West map; then
</P>
<P>(5) Proceed straight northerly 1 mile to the 1,974-foot peak on the T22N/T23N boundary line, and continue straight north 1.6 miles to the 2,290-foot peak in the northwest quadrant of section 27, T23N, R13W, Covelo West map; then
</P>
<P>(6) Proceed straight northeast 1.2 miles to the 2,397-foot peak in the northeast quadrant of section 22, and continue straight northeast 1.5 miles to BM 2210 in the northeast quadrant of section 14, T23N, R13W, Covelo West map; then
</P>
<P>(7) Proceed straight east-southeast 1.75 miles to the 2,792-foot peak in the southwest quadrant of section 18, T23, R12W, Covelo East map; then
</P>
<P>(8) Proceed straight north-northeasterly 0.9 mile to the 2,430-foot elevation point in the southeast quadrant of section 7, T23N, R12W, Covelo East map; then
</P>
<P>(9) Proceed straight east-northeast 1.6 miles to the peak of Coyote Rock in section 9, T23N, R12W, Covelo East map; then
</P>
<P>(10) Proceed straight east-southeast 1.55 miles to the 2,435-foot elevation point in the northern half of section 15, and continue straight southeast 2.3 miles to the 2,066-foot peak in the southwest quadrant of section 24, T23N, R12W, Covelo East map; then
</P>
<P>(11) Proceed straight south-southwest 0.6 mile to the 2,024-foot peak near the section 26 eastern boundary line, T23N, R12W, Covelo East map; then
</P>
<P>(12) Proceed straight west-southwest 1.9 miles to the 2,183-foot peak in the northwest quadrant of section 34, T23N, R12W, Covelo East map; then
</P>
<P>(13) Proceed straight south-southeast 1.2 miles to the 1,953-foot peak in the northeast quadrant of section 3, T22N, R12W, Covelo East map; then
</P>
<P>(14) Proceed straight southerly 0.9 mile to the 2,012-foot peak in the northeast quadrant of section 10, T22N, R12W, Covelo East map; then
</P>
<P>(15) Proceed straight south-southeast 1.4 miles along Dingman Ridge to the 2,228-foot peak along the section 14 and 15 boundary line, T22N, R12W, Covelo East map; then
</P>
<P>(16) Proceed straight southeast 0.95 mile to the 2,398-foot peak in the northeast quadrant of section 23, T22N, R12W, Covelo East map; then
</P>
<P>(17) Proceed straight south-southeast 1.75 miles to the 2,474-foot elevation point along the section 25 and 26 boundary line, T22N, R12W, Jamison Ridge map; then
</P>
<P>(18) Proceed straight west-southwest 0.9 mile to BM 2217 in the southwest quadrant of section 26, and continue straight westerly 1.5 miles to the 2,230-foot peak northwest of Iron Spring, in the southeast quadrant of section 28, T22N, R12W, Jamison Ridge map; then
</P>
<P>(19) Proceed straight southwest 0.65 mile to the 2,022-foot peak very near an unimproved road in section 33, T22N, R12W, Jamison Ridge map; then
</P>
<P>(20) Proceed straight west-northwest 1.5 miles to the 1,762-foot peak in the northeast quadrant of section 31, T22N, R12W, Jamison Ridge map, and continue in the same line of direction 1.1 miles to the beginning point at the intersection of State Highway 162 and the southern boundary of section 25, T22N, R13W (labeled Inspiration Point), on the Dos Rios map.
</P>
<CITA TYPE="N">[T.D. TTB-42, 71 FR 8205, Feb. 16, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.188" NODE="27:1.0.1.1.7.3.45.168" TYPE="SECTION">
<HEAD>§ 9.188   Horse Heaven Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Horse Heaven Hills”. For purposes of part 4 of this chapter, “Horse Heaven Hills” and “Horse Heaven” are terms of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the Horse Heaven Hills viticultural area are 28 United States Geological Survey (USGS) 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Umatilla Quadrangle, Oregon—Washington, 1993;
</P>
<P>(2) Irrigon Quadrangle, Oregon—Washington, 1993;
</P>
<P>(3) Paterson Quadrangle, Washington—Oregon, 1993;
</P>
<P>(4) West of Paterson Quadrangle, Washington—Oregon, 1993;
</P>
<P>(5) Boardman Quadrangle, Oregon—Washington, 1993;
</P>
<P>(6) Crow Butte Quadrangle, Washington—Oregon, 1993;
</P>
<P>(7) Golgotha Butte Quadrangle, Washington—Oregon, 1993;
</P>
<P>(8) Heppner Junction Quadrangle, Oregon—Washington, 1962, photo revised, 1970;
</P>
<P>(9) Wood Gulch Quadrangle, Washington—Oregon, 1962, photo revised 1970, photo inspected 1975;
</P>
<P>(10) Crider Valley Quadrangle, Washington, 1962;
</P>
<P>(11) Douty Canyon Quadrangle, Washington, 1962;
</P>
<P>(12) Tule Prong Quadrangle, Washington, 1965;
</P>
<P>(13) Prosser SW Quadrangle, Washington, 1965, photo inspected 1975;
</P>
<P>(14) Mabton West Quadrangle, Washington, 1965;
</P>
<P>(15) Mabton East Quadrangle, Washington, 1965;
</P>
<P>(16) Prosser Quadrangle, Washington, 1965;
</P>
<P>(17) Whitstran Quadrangle, Washington, 1965;
</P>
<P>(18) Whitstran NE Quadrangle, Washington, 1965;
</P>
<P>(19) Corral Canyon Quadrangle, Washington, 1977;
</P>
<P>(20) Webber Canyon Quadrangle, Washington, 1965;
</P>
<P>(21) Badger Mountain Quadrangle, Washington, 1965, photo revised 1978;
</P>
<P>(22) Taylor Canyon Quadrangle, Washington, 1965;
</P>
<P>(23) Johnson Butte Quadrangle, 1964, photo revised 1978;
</P>
<P>(24) Nine Canyon Quadrangle, 1964;
</P>
<P>(25) Wallula Quadrangle, 1992;
</P>
<P>(26) Juniper Canyon Quadrangle, 1966, photo revised 1978;
</P>
<P>(27) Juniper Quadrangle, 1993; and
</P>
<P>(28) Hat Rock Quadrangle, 1993.
</P>
<P>(c) <I>Boundary.</I> The Horse Heaven Hills viticultural area is located in portions of Benton, Klickitat, and Yakima Counties, Washington. The boundary of the Horse Heaven Hills viticultural area is described below:
</P>
<P>(1) Beginning on the Umatilla map at the intersection of Interstate Highway 82 and the north bank of the Columbia River in Benton County, Washington, proceed westerly (downstream) along the river's north bank, passing through the Irrigon, Paterson, West of Paterson, Boardman, Crow Butte, and Golgotha Butte maps, to the mouth of Pine Creek in section 32, T4N/R22E, on the Heppner Junction map in Klickitat County; then
</P>
<P>(2) Follow Pine Creek northwesterly (upstream) for approximately 7.0 miles to the junction of Pine Creek and the western boundary of section 16, T4N/R21E, on the Wood Gulch map, then continue north along the section boundary to the point where East Road, which coincides with the section line at this point, crosses the 1,700-foot contour line, very near the southwestern corner of section 9, T4N, R21E; then
</P>
<P>(3) Proceed northeasterly along the meandering 1,700-foot contour line through, and crossing between, the Crider Valley and Douty Canyon maps (crossing Alder Creek, Stegeman Canyon, Spring Canyon, Sand Ridge, and Willow Creek) to the point where the 1,700-foot contour line intersects Sand Ridge Road in section 4, T5N, R22E, on the Douty Canyon map; then
</P>
<P>(4) Continue north-northeasterly along the meandering 1,700-foot contour line through, and crossing between, the Tule Prong and Douty Canyon maps (crossing Tule Canyon, Tule Prong, and Dead Canyon) to the contour line's intersection with Alderdale Road in section 31, T7N/R23E, northeast of Coyote Canyon, on the Prosser SW map in Yakima County; then
</P>
<P>(5) Follow Alderdale Road northwest, returning to the Tule Prong map, and continue northwest and then north along Alderdale Road to its intersection with Wandling Road in section 2, T7N/R22E; then
</P>
<P>(6) From that intersection, proceed northeasterly in a straight line to the 2,011-foot peak near the northwest corner of section 1, T7N/R22E, on the Mabton West map, and continue northeasterly in a straight line to the 1,989-foot peak in the southeast corner of section 36, T8N/R22E, on the Mabton East map; then
</P>
<P>(7) From that peak, proceed easterly in a straight line through the 1,860-foot benchmark along side Township Road in section 31, T8N/R23E, to the 2,009-foot peak in section 32, T8N/R23E, then northerly in a straight line to the 2,011-foot peak in the same section, then easterly to the 1,850 foot peak in the northwest quadrant of section 33, T8N/R23E, then east-northeasterly to the 1,964-foot peak beside the western boundary of section 27, T8N/R23E, then east-northeasterly through the 2,031-foot peak in the northwest corner of section 26, T8N/R23E, to the 2,064-foot peak in the northern portion of the same section; then
</P>
<P>(8) From that peak, proceed east-southeast to the 2,093 foot peak in the northeastern quadrant of section 25, T8N/R23E on the Prosser map, then northeasterly in a straight line to the 2,193-foot peak of Horse Hill in the northeast corner of section 25, T8N/R23E, then northeasterly in a straight line, crossing into Benton County, to the 2,107-foot peak in section 19, T8N/R24E, then easterly to the 2,081-foot peak in section 21, T8N/R24E, then east-northeasterly through the 1,813-foot peak near the northwest corner of section 13, T8N/R24E, to the 1,861-foot peak marked with radio towers near the southern boundary of section 12, T8N/R24E; then
</P>
<P>(9) From that peak, proceed northeasterly in a straight line to an unmarked 1,410-foot summit in the northeast corner of section 7, T8N/R25E, on the Whitstran map, then east-southeasterly to the 1,637-foot peak near the center of section 8, T8N/R25E, and then north-northeasterly to the intersection of State Route 221 and Carter Road near the southeast corner of section 5, T8N/R25E; then
</P>
<P>(10) Follow Carter Road northerly to the point where it becomes an unimproved road and continue northerly then easterly along the unimproved road to the 1,854-foot peak of Gibbon Hill in the northeast corner of section 4, T8N/R25E; then
</P>
<P>(11) From that peak, proceed east-northeasterly in a straight line through the 1,745-foot peak in section 35, T9N/R25E, to the 1,976-foot peak in section 36, T9N/R25E, then east-northeasterly in a straight line onto the Whitstran NE map through the 1,808-foot peak in section 30, T9N/R26E, to the 1,818-foot peak in the same section; then
</P>
<P>(12) From that peak, proceed due north in a straight line to the jeep trail above the 1,750-foot contour line near the northeast corner of section 30, T9N/R26E; then
</P>
<P>(13) Follow the jeep trail east-northeasterly to the 2,046-foot peak of Chandler Butte in section 21, T9N/R26E, then east-northeasterly and then southeasterly along the jeep trail through sections 22 and 23, T9N/R26E, on the Corral Canyon map, to the intersection of the jeep trail and McBee Grade road near the gravel pit in the southeast corner of section 23, T9N/R26E, on the Whitstran NE map; then
</P>
<P>(14) From that intersection, proceed southeasterly in a series of straight lines through the 1,689-foot peak in the southeast corner of section 23, T9N/R26E, and the 1,826-foot peak in section 25, T9N/R26E, on the Whitstran map, then, on the Webber Canyon map, through the 1,845-foot peak in section 30, T9N/R27E, the 1,808-foot peak in section 31, T9N/R27E, the 1,745-foot peak in section 32, T9N/R27E, and the 1,572-foot peak of Rome Hill in section 14, T8N/R27E, and then, on the Badger Mountain map, continue in a straight line to the 1,757-foot peak in section 30, T8N/R28E; then
</P>
<P>(15) From the 1,757-foot peak, proceed due south in a straight line to the line's intersection with Smith Road near the northern boundary of section 6, T7N/R28E; then
</P>
<P>(16) Continue southerly along Smith Road to the road's intersection with Clodfelter Road at the southern boundary of section 6, T7N/R28E, on the Taylor Canyon map; then
</P>
<P>(17) Proceed east on Clodfelter Road to its intersection with Williams Road at the eastern boundary of section 5, T7N/R28E, and continue east on Williams Road to its intersection with the 1,800-foot contour line in section 4, T7N/R28E; then
</P>
<P>(18) Follow the meandering 1,800-foot contour line southerly then easterly to the contour line's junction with the northeast corner of section 15, T7N/R28E; then
</P>
<P>(19) From that point, proceed east-southeasterly in a straight line to the 1,680-foot benchmark in section 17, T7N/R29E, on the Johnson Butte map, and continue east-northeasterly in a straight line through the 2,043-foot peak of Johnson Butte in section 16, T7N/R29E, to the 2,220-foot peak of Jump Off Joe summit in section 12, T7N/R29E; then
</P>
<P>(20) From that point, proceed southeasterly in a straight line, through the Nine Canyon map, to the 343-foot benchmark on the bank of the Columbia River at Palmer Pond in section 13, T6N/R30E, on the Wallula map; and then
</P>
<P>(21) Follow the north bank of the Columbia River westerly (downstream), through the Juniper Canyon, Juniper, and the Hat Rock maps, to the beginning point at the intersection of Interstate Highway 82 and the north bank of the Columbia River on the Umatilla map.
</P>
<CITA TYPE="N">[T.D. TTB-28, 70 FR 38007, July 1, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.189" NODE="27:1.0.1.1.7.3.45.169" TYPE="SECTION">
<HEAD>§ 9.189   High Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “High Valley”. For purposes of part 4 of this chapter, “High Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the “High Valley” viticultural area are three United States Geological Survey (USGS) 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Clearlake Oaks Quadrangle, California—Lake County; edition of 1958; photorevised 1975, minor revision 1994;
</P>
<P>(2) Benmore Canyon Quadrangle, California—Lake County; provisional edition of 1989, minor revision 1994; and
</P>
<P>(3) Lucerne Quadrangle, California—Lake County; edition of 1958, photorevised 1975, minor revision 1994.
</P>
<P>(c) <I>Boundary.</I> The High Valley viticultural area is located in Lake County, California, near the village of Clearlake Oaks. The boundary of the High Valley viticultural area is as described below:
</P>
<P>(1) The point of beginning is on the Clearlake Oaks map on the northern boundary line of section 16 (also the southern boundary of the Mendocino National Forest), T14N, R8W, at the intersection of the section line and High Valley Road;
</P>
<P>(2) From the beginning point, proceed due east 2.4 miles along the northern boundary lines of sections 16, 15, and 14 (also the southern boundary of the Mendocino National Forest) to the northeast corner of section 14, T14N, R8W; then
</P>
<P>(3) Proceed north along the western boundary of section 12 (also the eastern boundary of the Mendocino National Forest), T14N/R8W, to its intersection with the 1,720-foot elevation contour; then
</P>
<P>(4) Proceed easterly along the meandering 1,720-foot elevation contour for approximately 11.3 miles, crossing onto the Benmore Canyon map, to the intersection of the elevation contour with the northern fork of an unnamed creek in Salt Canyon known locally as Salt Creek in section 23, T14N/R7W; then
</P>
<P>(5) Proceed easterly (downstream) along Salt Creek approximately 760 feet to its intersection with the 1,600-foot elevation contour in section 23; then


</P>
<P>(6) Proceed southerly along the meandering 1,600-foot elevation line 4.1 miles to its intersection with State Route 20, just north of Sweet Hollow Creek, in section 35, T14N, R7W; then
</P>
<P>(7) Proceed southwest and then west 1.7 miles on State Route 20 to its intersection with the 1,600-foot elevation line just northwest of BM 1634, Wye, in section 3, T13N, R7W; then
</P>
<P>(8) Proceed westerly 15.2 miles along the meandering 1,600-foot elevation line, crossing the Clearlake Oaks map, to the elevation line's intersection with an unnamed intermittent stream in Pierce Canyon in the northeast quadrant of section 20, approximately 0.4 mile east of VABM 2533,T14N, R8W, on the Lucerne map; then
</P>
<P>(9) Proceed northerly and then northeasterly along the unnamed intermittent stream in Pierce Canyon and then the stream's northern fork approximately 1.6 miles to the northern fork's intersection with the 3,000-foot elevation line in section 16, T14N, R8W, on the Clearlake Oaks map; and then
</P>
<P>(10) Proceed straight northeast 0.15 mile, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-30, 70 FR 38001, July 1, 2005, as amended by T.D. TTB-188, 88 FR 42881, July 5, 2023]


</CITA>
</DIV8>


<DIV8 N="§ 9.190" NODE="27:1.0.1.1.7.3.45.170" TYPE="SECTION">
<HEAD>§ 9.190   Red Hill Douglas County, Oregon.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Red Hill Douglas County, Oregon”. For purposes of part 4 of this chapter, “Red Hill Douglas County, Oregon” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the Red Hill Douglas County, Oregon viticultural area are three United States Geological Survey (USGS), 1:24,000 scale, topographic maps. They are:
</P>
<P>(1) Sutherlin, OR (Provisional edition 1988);
</P>
<P>(2) Scotts Valley, OR (Provisional edition 1987); and
</P>
<P>(3) Yoncalla, OR (Provisional edition 1987).
</P>
<P>(c) <I>Boundary.</I> The Red Hill Douglas County, Oregon viticultural area is located in Douglas County, Oregon, east of Interstate 5 near the hamlet of Rice Hill, between the villages of Yoncalla and Oakland.
</P>
<P>(1) Beginning on the Yoncalla map along the southern boundary of section 35, T23S/R5W, at the point where a pipeline crosses the T23S/T24S township line, proceed due west 0.8 mile along the T23S/T24S township line to its intersection with the 800-foot contour line just west of Pollock Creek in section 34, T23S/R5W (Yoncalla Quadrangle); then
</P>
<P>(2) Proceed southerly along the meandering 800-foot contour line, cross onto the Sutherlin map in section 10, T24S/R5W, and continue westerly along the 800-foot contour line to its first intersection with the eastern boundary of section 8, T24S/R5W (Sutherlin Quadrangle); then
</P>
<P>(3) Proceed northerly along the meandering 800-foot contour line, return to the Yoncalla map in section 9, T23S/R5W, and continue northerly along the 800-foot contour line to its intersection with the T23S/T24S township line very near the northwest corner of section 4, T24S/R5W (Yoncalla Quadrangle); then
</P>
<P>(4) Proceed northeasterly along the 800-foot contour line, cross Wilson Creek in the northern portion of section 23, T23S/R5W, pass onto the Scotts Valley map at Section 14, T23S/R5W, and continue northeasterly along the 800-foot contour line to its intersection with the R4W/R5W range line, which at that point is also the eastern boundary of section 1, T23S/R5W (Scotts Valley Quadrangle); then
</P>
<P>(5) Proceed southwesterly along the 800-foot contour line, re-cross the R4W/R5W range line, and continue to the second intersection of the 800-foot contour line and the pipeline in section 1, T23/R5W (Scotts Valley Quadrangle); then
</P>
<P>(6) Proceed 5.75 miles southwesterly along the pipeline, cross Wilson Creek in section 24, T23S/R5W, return to the Yoncalla map in section 26, T23S/R5W, and continue southwesterly along the pipeline to the point of beginning at the intersection of the pipeline intersection and the T23S/T24S township line in section 35, T23S/R5W (Yoncalla Quadrangle).
</P>
<CITA TYPE="N">[T.D. TTB-35, 70 FR 60001, Oct. 14, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.191" NODE="27:1.0.1.1.7.3.45.171" TYPE="SECTION">
<HEAD>§ 9.191   Ramona Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Ramona Valley”. For purposes of part 4 of this chapter, “Ramona Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The two United States Geological Survey 1:100,000 scale topographic (30 × 60 Minute Quadrangle) maps used to determine the boundaries of the Ramona Valley viticultural area are titled—
</P>
<P>(1) Borrego Valley, California, 1982 edition; and
</P>
<P>(2) El Cajon, California, 1979 edition.
</P>
<P>(c) <I>Boundary.</I> The Ramona Valley viticultural area is located in central San Diego County, California. The area's boundaries are defined as follows—
</P>
<P>(1) Beginning in the southwest corner of the Borrego Valley map at the 882-meter (2,894-foot) peak of Woodson Mountain, T13S, R1W, proceed straight north-northwest approximately 3.25 miles to the 652-meter (2,140-foot) peak of Starvation Mountain, T13S, R1W (Borrego Valley map); then
</P>
<P>(2) Proceed straight east-northeast approximately 12.5 miles to the Gaging Station on the northwest shoreline of Sutherland Lake, T12S, R2E (Borrego Valley map); then
</P>
<P>(3) Proceed straight southeast approximately 4.4 miles to the 999-meter (3,278-foot) peak of Witch Creek Mountain, T13S, R2E, east of Ballena Valley (Borrego Valley map); then
</P>
<P>(4) Proceed straight south-southeasterly approximately 6.6 miles, crossing onto the El Cajon map, to the summit of Eagle Peak (3,166 feet), T14S, R3E, northeast of the El Capitan Reservoir (El Cajon map); then
</P>
<P>(5) Proceed straight west-southwest approximately 12.7 miles, passing through Barona Valley, to the peak (1,002 feet) near the center of the unnamed island in the San Vicente Reservoir, T14S, R1E (El Cajon map); then
</P>
<P>(6) Proceed straight northwesterly approximately 3.9 miles to the 822-meter (2,697-foot) peak of Iron Mountain, T14S, R1W (El Cajon map); and
</P>
<P>(7) Proceed straight north-northwest approximately 2.8 miles, crossing onto the Borrego Valley map, and return to the beginning point at the peak of Woodson Mountain.
</P>
<CITA TYPE="N">[T.D. TTB-39, 70 FR 72719, Dec. 7, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.192" NODE="27:1.0.1.1.7.3.45.172" TYPE="SECTION">
<HEAD>§ 9.192   Wahluke Slope.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Wahluke Slope”. For purposes of part 4 of this chapter, “Wahluke Slope” and “Wahluke” are terms of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the Wahluke Slope viticultural area are eight United States Geological Survey 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Beverly Quadrangle, Washington, 1965;
</P>
<P>(2) Beverly SE Quadrangle, Washington—Grant Co., 1965;
</P>
<P>(3) Smyrna Quadrangle, Washington—Grant Co., Provisional Edition 1986;
</P>
<P>(4) Wahatis Peak Quadrangle, Washington—Grant Co., Provisional Edition 1986;
</P>
<P>(5) Coyote Rapids Quadrangle, Washington, Provisional Edition 1986;
</P>
<P>(6) Vernita Bridge Quadrangle, Washington, Provisional Edition 1986;
</P>
<P>(7) Priest Rapids NE Quadrangle, Washington, Provisional Edition 1986; and
</P>
<P>(8) Priest Rapids Quadrangle, Washington, 1948; photo revised 1978.
</P>
<P>(c) <I>Boundary.</I> The Wahluke Slope viticultural area is located in Grant County, Washington. The boundary of the Wahluke Slope viticultural area is as described below:
</P>
<P>(1) The beginning point is at the northwest corner of the viticultural area where the east bank of the Columbia River intersects the north boundary line of section 22, T15N/R23E, on the Beverly map; then
</P>
<P>(2) From the beginning point proceed straight east 1.5 miles to the intersection of the section 23 north boundary line and the 1,480-foot elevation line, T15N/R23E, Beverly map; then
</P>
<P>(3) Proceed generally east along the meandering 1,480-foot elevation line, crossing the Beverly map, the Beverly SE map, and the Smyrna map, and continue onto the Wahatis Peak map to the intersection of the 1,480-foot elevation line and the eastern boundary line of section 15, which forms a portion of the boundary line of the Hanford Site, T15N/R26E, Wahatis Peak map; then
</P>
<P>(4) Proceed generally southwest along the Hanford Site boundary in a series of 90 degree angles, crossing the Wahatis map, the Coyote Rapids map in section 36, T15N/R25E, and the Vernita Bridge map, and continue onto the Priest Rapids NE map to the intersection of the Hanford Site boundary and the north bank of the Columbia River, section 10, T13N/R24E, Priest Rapids NE map; then
</P>
<P>(5) Proceed generally west along the north bank of the Columbia River, crossing onto the Priest Rapids map and, turning north-northwest, continue along the river bank and, crossing onto the Beverly map, return to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-40, 70 FR 72710, Dec. 7, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 9.193" NODE="27:1.0.1.1.7.3.45.173" TYPE="SECTION">
<HEAD>§ 9.193   Rattlesnake Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Rattlesnake Hills”. For purposes of part 4 of this chapter, “Rattlesnake Hills” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the Rattlesnake Hills viticultural area are eight United States Geological Survey 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Yakima East Quadrangle, Washington—Yakima Co., 1953, photorevised 1985;
</P>
<P>(2) Elephant Mountain Quadrangle, Washington—Yakima Co., 1953, photorevised 1985;
</P>
<P>(3) Granger NW Quadrangle, Washington—Yakima Co., 1965;
</P>
<P>(4) Granger NE Quadrangle, Washington—Yakima Co., 1964;
</P>
<P>(5) Sunnyside Quadrangle, Washington—Yakima Co., 1965, photorevised 1978;
</P>
<P>(6) Granger Quadrangle, Washington—Yakima Co., 1965;
</P>
<P>(7) Toppenish Quadrangle, Washington—Yakima Co., 1958, photorevised 1985; and
</P>
<P>(8) Wapato Quadrangle, Washington—Yakima Co., 1958, photorevised 1985.
</P>
<P>(c) <I>Boundary.</I> The Rattlesnake Hills viticultural area is located in Yakima County, Washington. The area's boundary is defined as follows:
</P>
<P>(1) The beginning point is on the Yakima East map at the point where a line drawn straight east from the west end of the Wapato Dam on the Yakima River intersects Interstate Highway 82, section 17, T12N/R19E. This line coincides with the boundary of the Yakima Valley viticultural area (27 CFR 9.69). From the beginning point, the Rattlesnake Hills viticultural area boundary line—
</P>
<P>(2) Proceeds straight eastward, crossing onto the Elephant Mountain map, to the 2,192-foot peak of Elephant Mountain, section 16, T12N/R20E; then
</P>
<P>(3) Continues straight east-southeast, crossing over the northeast corner of the Toppenish map, and continuing onto the Granger NW map, to the 2,186-foot pinnacle of Zillah Peak, section 32, T12N/R21E; then
</P>
<P>(4) Continues straight eastward, crossing onto the Granger NE map, to the 3,021-foot peak of High Top Mountain, section 32, T12N/R22E; then
</P>
<P>(5) Continues straight east-southeast to the 2,879-foot peak in the northeast quadrant of section 3, T11N/R22E, and continues in the same direction in a straight line until the line intersects with the 120°00′ west longitude line in section 1 of T11N/R22E along the east margin of the Granger NE map; then
</P>
<P>(6) Proceeds straight south along the 120°00′ west longitude line to its intersection with a set of power lines in section 24, T11N/R22E, on the east margin of the Granger NE map; then
</P>
<P>(7) Follows the power lines southwest, crossing onto the Sunnyside map, to their intersection with the Sunnyside Canal, section 8, T10N/R22E; then
</P>
<P>(8) Follows the meandering Sunnyside Canal generally northwest, crossing over the northeast corner of the Granger map, and continuing over the Granger NW map, the Toppenish map, and onto the Wapato map to the canal's intersection with Interstate Highway 82, section 27 west boundary line, T12N/R19E; then
</P>
<P>(9) Follows Interstate Highway 82 northwest for 2.75 miles, crosses onto the Yakima East map, and returns to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-43, 71 FR 8211, Feb. 16, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.194" NODE="27:1.0.1.1.7.3.45.174" TYPE="SECTION">
<HEAD>§ 9.194   San Antonio Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Antonio Valley”. For purposes of part 4 of this chapter, “San Antonio Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the San Antonio Valley viticultural area are ten United States Geological Survey 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Hames Valley, California, 1949, photorevised 1978;
</P>
<P>(2) Tierra Redonda Mountain, California, 1949, photorevised 1979;
</P>
<P>(3) Bradley, California, 1949, photorevised 1979;
</P>
<P>(4) Bryson, California, 1949, photorevised 1979;
</P>
<P>(5) Williams Hill, California, 1949, photorevised 1979;
</P>
<P>(6) Jolon, California, 1949;
</P>
<P>(7) Alder Peak, California, 1995;
</P>
<P>(8) Bear Canyon, California, 1949, photoinspected 1972;
</P>
<P>(9) Cosio Knob, California, 1949, photorevised 1984; and
</P>
<P>(10) Espinosa Canyon, California, 1949, photorevised 1979.
</P>
<P>(c) <I>Boundary.</I> The San Antonio Valley viticultural area is located in Monterey County, California. The boundary of the San Antonio Valley viticultural area is as described below:
</P>
<P>(1) The beginning point is at the southeast corner of section 14, T23S, R9E, on the Hames Valley map;
</P>
<P>(2) From the beginning point, proceed southeast in a straight line for approximately 5 miles across sections 24 and 25, T23S, R9E, and sections 30, 31, and 32, T23S, R10E, and section 5, T24S, R10E, to the southeast corner of section 5, on the Tierra Redonda Mountain map; then
</P>
<P>(3) Continue southeast in a straight line for approximately 3.25 miles through sections 9, 16, 15, and 22, T24S, R10E, to the mid-point of the eastern boundary of section 22 on the Bradley map; then
</P>
<P>(4) Proceed straight south for approximately 2.5 miles along the eastern boundary line of sections 22, 27, and 34, T24S, R10E, to the Monterey-San Luis Obispo County line; then
</P>
<P>(5) Follow the Monterey-San Luis Obispo County line west for approximately 7.0 miles, back onto the Tierra Redonda Mountain map, to the southwest corner of section 34, T24S, R9E; then
</P>
<P>(6) Proceed northwest in a straight line for approximately 17 miles, crossing sections 33, 32, 29, 30, and 19, T24S, R9E, and sections 24, 13, 14, 10, 9, and 4, T24S, R8E, on the Bryson map, section 5, T24S, R8E in the southwest corner of the Williams Hill map, section 32, T23S, and sections 23, 22, 15, and 16, T23S, R7E, on the Jolon map, to an 1,890-foot peak located approximately 2,100 feet west of section 8, T23S, R7E; then
</P>
<P>(7) Continue northwest in a straight line for approximately 9 miles, crossing the Alder Peak map between Milpitas Grant and Stony Valley, and sections 9, 4, and 5, T22S, R6E, on the Bear Canyon map, to a 2,713-foot peak located in section 5, T22S, R6E; then
</P>
<P>(8) Proceed east-northeast in a straight line for approximately 3.9 miles, passing onto the Hunter Liggett Military Reservation and crossing the San Antonio River, to a 2,449-foot peak on the Hunter Liggett Military Reservation; then
</P>
<P>(9) Proceed northeast in a straight line for approximately 2.5 miles, crossing Mission Creek, across sections 30 and 29, T21S, R7E, on the Cosio Knob map to the 2,530-foot peak of Cosio Knob; then
</P>
<P>(10) From Cosio Knob, proceed east-southeast in a straight line for approximately 9.5 miles across sections 29, 28, 27, 26, 35, and 36, T21S, R7E, sections 31 and 32, T21S, R8E, and sections 5, 4, 3, and 2, T22S, R8E, on the Espinosa Canyon map, to a 1,811-foot peak located in section 2; then
</P>
<P>(11) Proceed southeast in a straight line for approximately 10.4 miles across sections 2, 11, 12, and 13, T22S, R8E, and sections 18 and 19, T22S, R9E, on the Espinosa Canyon map, sections 19, 30, 29, 32, and 33, T22S, R9E, on the northwest corner of the Williams Hill map, and sections 4, 3, 10, 11, and 14, T23S, R9E, on the Hames Valley map, to the beginning point at the southeast corner of section 14, T23S, R9E.
</P>
<CITA TYPE="N">[T.D. TTB-46, 71 FR 33242, June 8, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.195" NODE="27:1.0.1.1.7.3.45.175" TYPE="SECTION">
<HEAD>§ 9.195   Alta Mesa.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Alta Mesa”. For purposes of part 4 of this chapter, “Alta Mesa” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The seven United States Geological Survey, 1:24,000 scale, topographic quadrangle maps used to determine the boundary of the Alta Mesa viticultural area are titled—
</P>
<P>(1) North Lodi, Calif., 1968, photorevised 1976;
</P>
<P>(2) Galt, Calif., 1968, photorevised 1980;
</P>
<P>(3) Florin, Calif., 1968, photorevised 1980;
</P>
<P>(4) Elk Grove, Calif., 1968, photorevised 1979;
</P>
<P>(5) Sloughhouse, Calif., 1968, photorevised 1980, minor revision 1993;
</P>
<P>(6) Clay, Calif., 1968, photorevised 1980, minor revision 1993; and
</P>
<P>(7) Lockeford, Calif., 1968, photorevised 1979, minor revision 1993.
</P>
<P>(c) <I>Boundary.</I> The Alta Mesa viticultural area is located in Sacramento County, California, and is entirely within the Lodi viticultural area (27 CFR 9.107). The Alta Mesa viticultural area boundary is as follows:
</P>
<P>(1) The beginning point is on the Lodi North map at the intersection of Kost Road and the Southern Pacific railway, section 34, T5N, R6E. From the beginning point, proceed north-northwest 8.7 miles along the Southern Pacific railway to its intersection with State Route 99 at McConnel, section 20, T6N, R6E (Galt Quadrangle); then
</P>
<P>(2) Proceed northwest 4.7 miles on State Route 99 to its intersection with Sheldon Road at the northern boundary of section 26, T7N, R5E (Florin Quadrangle); then
</P>
<P>(3) Proceed east 5.2 miles on Sheldon Road to its intersection with the Central California Traction railroad at the northern boundary of section 27, T7N, R6E (Elk Grove Quadrangle); then
</P>
<P>(4) Proceed southeast 3.85 miles along the Central California Traction railroad to Grant Line Road, then southwest on Grant Line Road to Wilton Road at the hamlet of Sheldon, and then continue southeast on Wilton Road to its intersection with Dillard Road, section 6, T6N, R7E (Elk Grove Quadrangle); then
</P>
<P>(5) Proceed northeast 2.6 miles on Dillard Road to its intersection with Lee Shorthorn Road, T7N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(6) Proceed southeast 0.9 mile on Lee Shorthorn Road to its intersection with Tavernor Road, T7N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(7) Proceed south 0.95 mile on Tavernor Road to its first 90 degree turn to the west (where two unimproved roads join Tavernor Road from the east and south), section 4, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(8) Continue due south 1 mile in a straight line to the line's intersection with the 105-foot contour line and an unimproved extension of Blake Road, section 9, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(9) Proceed west 0.3 mile on the unimproved extension of Blake Road to its intersection with Tavernor Road, section 9, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(10) Proceed south 0.7 mile on Tavernor Road to the center of the loop at the end of the road, section 16, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(11) Proceed southwest in a straight line for 0.1 mile to the line's intersection with the east end of the landing strip shown in the northwest quadrant of section 16, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(12) Proceed west along the landing strip and a line extending from its western end to the line's intersection with Alta Mesa Road on the eastern boundary of section 17, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(13) Proceed south 6.1 miles on Alta Mesa Road, crossing State Route 104, to Alta Mesa Road's intersection with Borden Road at the southwest corner of section 9, T5N, R7E (Clay Quadrangle); then
</P>
<P>(14) Proceed east 1 mile on Borden Road to its intersection with Alabama Road at the southeast corner of section 9, T5N, R7E (Clay Quadrangle); then
</P>
<P>(15) Proceed south 2 miles on Alabama Road to its intersection with Simmerhorn Road at the southeast corner of section 21, T5N, R7E (Clay Quadrangle); then
</P>
<P>(16) Proceed east 2 miles on Simmerhorn Road to its intersection with Clay Station Road at the northeast corner of section 26, T5N, R7E (Clay Quadrangle); then
</P>
<P>(17) Proceed south 0.5 mile on Clay Station Road to its intersection with Dry Creek, section 26, T5N, R7E (Clay Quadrangle); then
</P>
<P>(18) Proceed west-southwest (downstream) 7.8 miles along Dry Creek, crossing over the northwest corner of the Lockeford map, and twice crossing over the southeast corner of the Galt map, to Dry Creek's intersection with Lincoln Way, section 35, T5N, R6E (Lodi North Quadrangle); then
</P>
<P>(19) Proceed northwest 0.1 mile on Lincoln Way to its intersection with Kost Road, section 35, T5N, R6E (Lodi North Quadrangle); and
</P>
<P>(20) Proceed west 0.3 mile on Kost Road, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-50, 71 FR 40414, July 17, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.196" NODE="27:1.0.1.1.7.3.45.176" TYPE="SECTION">
<HEAD>§ 9.196   Borden Ranch.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Borden Ranch”. For purposes of part 4 of this chapter, “Borden Ranch” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United State Geological Survey, 1:24,000 scale, topographic quadrangle maps used to determine the boundary of the Borden Ranch viticultural area are titled—
</P>
<P>(1) Lockeford, Calif., 1968, photorevised 1979, minor revision 1993;
</P>
<P>(2) Clay, Calif., 1968, photorevised 1980, minor revision 1993;
</P>
<P>(3) Sloughhouse, Calif., 1968, photorevised 1980, minor revision 1993;
</P>
<P>(4) Carbondale, Calif., 1968, photorevised 1980, minor revision 1993;
</P>
<P>(5) Goose Creek, Calif., 1968, photorevised 1980, minor revision 1993; and
</P>
<P>(6) Clements, Calif., 1968, minor revision 1993.
</P>
<P>(c) <I>Boundary.</I> The Borden Ranch viticultural area is located in Sacramento and San Joaquin Counties, California, and is entirely within the Lodi viticultural area (27 CFR 9.107). The Borden Ranch viticultural area boundary is as follows:
</P>
<P>(1) The beginning point is on the Lockeford map at the intersection of Liberty Road and Elliott Road at the southwest corner of section 36, T5N, R7E. From the beginning point, proceed north 2 miles on Elliot Road, which becomes Clay Station Road upon crossing the Sacramento-San Joaquin County line at Dry Creek, to Clay Station Road's intersection with Simmerhorn Road, at the southeast corner of section 23, T5N, R7E (Clay Quadrangle); then
</P>
<P>(2) Proceed west 2 miles on Simmerhorn Road to its intersection with Alabama Road at the southwest corner of section 22, T5N, R7E (Clay Quadrangle); then
</P>
<P>(3) Proceed north 2 miles on Alabama Road to its intersection with Borden Road at the northwest corner of section 15, T5N, R7E (Clay Quadrangle); then
</P>
<P>(4) Proceed west 1 mile on Borden Road to its intersection with Alta Mesa Road at the southwest corner of section 9, T5N, R7E (Clay Quadrangle); then
</P>
<P>(5) Proceed north 1.35 miles on Alta Mesa Road, crossing State Route 104, to Alta Mesa Road's intersection with the Laguna tributary along the western boundary line of section 4, T5N, R7E (Clay Quadrangle); then
</P>
<P>(6) Proceed easterly (upstream) about 16.5 miles along the meandering Laguna tributary, crossing over the southeast corner of the Sloughhouse map, to the Laguna's intersection with the Sacramento-Amador County line, 0.75 mile south of the Ione Road, T6N, R9E (Carbondale Quadrangle); then
</P>
<P>(7) Proceed south and then southeast about 10.8 miles along the Sacramento-Amador and Sacramento-San Joaquin County lines, crossing over the Goose Creek map, to the County line's intersection with Liberty Road, section 32, T5N, R9E (Clements Quadrangle); and
</P>
<P>(8) Proceed west about 9.3 miles west along Liberty Road, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-50, 71 FR 40414, July 17, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.197" NODE="27:1.0.1.1.7.3.45.177" TYPE="SECTION">
<HEAD>§ 9.197   Clements Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Clements Hills”. For purposes of part 4 of this chapter, “Clements Hills” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey 1:24,000 scale, topographic quadrangle maps used to determine the boundary of the Clements Hills viticultural area are titled—
</P>
<P>(1) Waterloo, Calif., 1968, photoinspected 1978;
</P>
<P>(2) Lockeford, Calif., 1968, photorevised 1979, minor revision 1993;
</P>
<P>(3) Clements, Calif., 1968, minor revision 1993;
</P>
<P>(4) Wallace, Calif., 1962;
</P>
<P>(5) Valley Springs SW., Calif., 1962, photoinspected 1973; and
</P>
<P>(6) Linden, Calif., 1968, minor revision 1993.
</P>
<P>(c) <I>Boundary.</I> The Clements Hills viticultural area is located in San Joaquin County, California, and is entirely within the Lodi viticultural area (27 CFR 9.107). The Clements Hills viticultural areas boundary is as follows—
</P>
<P>(1) The beginning point is on the Waterloo map at the intersection of the Calaveras River and Jack Tone Road, section 31 west boundary line, T3N, R8E. From the beginning point, proceed north 6.9 miles on Jack Tone Road to its intersection with Elliot Road in the village of Lockeford (where Jack Tone Road is known as E. Hammond Street for a short distance), section 30, T4N, R8E (Lockeford Quadrangle); then
</P>
<P>(2) Proceed northwest 5.4 miles on Elliott Road, crossing the Mokelumne River, to Elliott Road's intersection with Liberty Road at the northwest corner of section 1, T4N, R7E, (Lockeford Quadrangle); then
</P>
<P>(3) Proceed east 9.3 miles on Liberty Road to its junction with the San Joaquin-Amador County line, north of the Camanche Reservoir, section 32, T5N, R9E (Clements Quadrangle); then
</P>
<P>(4) Proceed south-southeast 13 miles along the San Joaquin-Amador and San Joaquin-Calaveras County lines, crossing over the Wallace map, to the County line's intersection with the Calaveras River, section 31, T3N, R10E (Valley Springs SW., Quadrangle); and
</P>
<P>(5) Proceed southwest (downstream) 14.2 miles along the Calaveras River, crossing over the Linden map, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-50, 71 FR 40414, July 17, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.198" NODE="27:1.0.1.1.7.3.45.178" TYPE="SECTION">
<HEAD>§ 9.198   Cosumnes River.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Cosumnes River”. For purposes of part 4 of this chapter, “Cosumnes River” and “Cosumnes” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey, 1:24,000 scale, topographic quadrangle maps used to determine the boundary of the Cosumnes River viticultural area are titled—
</P>
<P>(1) Bruceville, Calif., 1968, photorevised 1980;
</P>
<P>(2) Florin, Calif., 1968, photorevised 1980;
</P>
<P>(3) Elk Grove, Calif., 1968, photorevised 1979;
</P>
<P>(4) Galt, Calif., 1968, photorevised 1980;
</P>
<P>(5) Lodi North, Calif.,1968, photorevised 1976; and
</P>
<P>(6) Thornton, Calif., 1978.
</P>
<P>(c) <I>Boundary.</I> The Cosumnes River viticultural area is located in Sacramento County, California, and is entirely within the Lodi viticultural area (27 CFR 9.107). The Cosumnes River viticultural area boundary is as follows—
</P>
<P>(1) The beginning point is on the Bruceville map at the intersection of the Mokelumne River and Interstate Highway 5, T5N, R5E. From the beginning point, proceed north 8.5 miles along Interstate 5 to its intersection with an unnamed light duty road, locally known to the west of Franklin as Hood-Franklin Road, section 18, T6N, R5E (Florin Quadrangle); then
</P>
<P>(2) Proceed east 1.2 miles straight on Hood-Franklin Road to its intersection with Franklin Boulevard in the village of Franklin, section 17, T6N, R5E (Florin Quadrangle); then
</P>
<P>(3) Proceed north 4.3 miles on Franklin Boulevard to its intersection with Sims Road on the west and Sheldon Road to the east at the northwest corner of section 28, T7N, R5E (Florin Quadrangle); then
</P>
<P>(4) Proceed east 2.4 miles on Sheldon Road to its intersection with State Route 99 at the northern boundary section 26, T7N, R5E (Florin Quadrangle); then
</P>
<P>(5) Proceed south-southeast 6 miles on State Route 99, crossing over the Elk Grove map, to the road's intersection with the Southern Pacific railway line at McConnell, section 20, T6N, R6E (Galt Quadrangle); then
</P>
<P>(6) Proceed south-southeast 8.7 miles along the Southern Pacific railway line to its intersection with Kost Road, section 34, T5N, R6E (Lodi North Quadrangle); then
</P>
<P>(7) Proceed west and then north 3.8 miles on Kost Road to its intersection with New Hope Road, T5N, R6E (Lodi North Quadrangle); then
</P>
<P>(8) Proceed west then south 2.8 miles on New Hope Road to its intersection with the Mokelumne River and the Sacramento-San Joaquin County line, T5N, R5E (Thornton Quadrangle); and
</P>
<P>(9) Proceed northerly then westerly (downstream) for about 2.7 miles along the meandering Mokelumne River, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-50, 71 FR 40414, July 17, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.199" NODE="27:1.0.1.1.7.3.45.179" TYPE="SECTION">
<HEAD>§ 9.199   Jahant.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Jahant”. For purposes of part 4 of this chapter, “Jahant” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The five United States Geological Survey, 1:24000 scale, topographic quadrangle maps used to determine the boundary of the Jahant viticultural area are titled—
</P>
<P>(1) Lodi North, Calif., 1968, photorevised 1976;
</P>
<P>(2) Thornton, Calif., 1978;
</P>
<P>(3) Galt, Calif., 1968, photorevised 1980;
</P>
<P>(4) Lockeford, Calif., 1968, photorevised 1979; and
</P>
<P>(5) Clay, Calif., 1968, photorevised 1980, minor revision 1993.
</P>
<P>(c) <I>Boundary.</I> The Jahant viticultural area is located in Sacramento and San Joaquin Counties, California, and is entirely with the Lodi viticultural area (27 CFR 9.107). The Jahant viticultural area boundary is as follows—
</P>
<P>(1) The beginning point is on the Lodi North map at the intersection of Peltier Road and the Mokelumne River, section 16 south boundary line, T4N, R6E. From the beginning point, proceed westerly (downstream) 6.7 miles along the Mokelumne River to its intersection with New Hope Road, about 0.7 mile north of the village of Thornton, T5N, R5E (Thornton Quadrangle); then
</P>
<P>(2) Proceed north then east for 3 miles on New Hope Road to its intersection with Kost Road, T5N, R6E (Lodi North Quadrangle); then
</P>
<P>(3) Proceed south then east for 4.1 miles on Kost Road to its intersection with Lincoln Way, section 35, T5N, R6E (Lodi North Quadrangle); then
</P>
<P>(4) Proceed southeast 0.15 mile on Lincoln Way to its intersection with Dry Creek, section 35, T5N, R6E (Lodi North Quadrangle); then
</P>
<P>(5) Proceed easterly (upstream) 7 miles along Dry Creek, crossing twice over and back at the southeast corner of the Galt map, and then crossing over the northwest corner of the Lockeford map, to Dry Creek's intersection with Elliott Road, section 26, T5N, R7E (Clay Quadrangle); then
</P>
<P>(6) Proceed south 4.5 miles on Elliott Road to its intersection with Peltier Road at the southeast corner of section 14, T4N, R7E (Lockeford Quadrangle); and
</P>
<P>(7) Proceed west 8.3 miles on Peltier Road, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-50, 71 FR 40414, July 17, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.200" NODE="27:1.0.1.1.7.3.45.180" TYPE="SECTION">
<HEAD>§ 9.200   Mokelumne River.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Mokelumne River”. For purposes of part 4 of this chapter, “Mokelumne River” and “Mokelumne” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The seven United States Geological Survey, 1:24,000 scale, topographic quadrangle maps used to determine the boundary of the Mokelumne River viticultural area are titled—
</P>
<P>(1) Lodi South, Calif., 1968, photorevised 1976;
</P>
<P>(2) Terminous, Calif., 1978, minor revision 1993;
</P>
<P>(3) Thornton, Calif., 1978;
</P>
<P>(4) Bruceville, Calif., 1968, photorevised 1980;
</P>
<P>(5) Lodi North, Calif., 1968, photorevised 1976;
</P>
<P>(6) Lockeford, Calif., 1968, photorevised 1979, minor revision 1993; and
</P>
<P>(7) Waterloo, Calif., edition of 1968, photoinspected 1978.
</P>
<P>(c) <I>Boundary.</I> The Mokelumne River viticultural area is located in San Joaquin County, California, and is entirely within the Lodi viticultural area (27 CFR 9.107). The Mokelumne River viticultural area boundary is as follows—
</P>
<P>(1) The beginning point is on the Lodi South map at the intersection of Eightmile Road and Interstate 5, section 36 south boundary line, T3N, R5E. From the beginning point, proceed north-northwest 14.7 miles on Interstate 5, crossing over the Terminous and Thornton maps, to the Interstate's intersection with the Mokelumne River, T5N, R6E (Bruceville Quadrangle); then
</P>
<P>(2) Proceed southeast (upstream) 5 miles along the meandering Mokelumne River to its intersection with Peltier Road, section 16, T4N, R6E (Lodi North Quadrangle); then
</P>
<P>(3) Proceed east 8.3 miles along Peltier Road to its intersection with Elliott Road at the northeast corner of section 23, T4N, R7E (Lockeford Quadrangle); then
</P>
<P>(4) Proceed south then southeast 2.3 miles on Elliott Road to its intersection with Jack Tone Road in the village of Lockeford (where Jack Tone Road is known as E. Hammond Street for a short distance), section 30, T4N, R8E (Lockeford Quadrangle); then
</P>
<P>(5) Proceed south 6.7 miles on Jack Tone Road to its intersection with the Calaveras River, section 36 east boundary line, T3N, R7E (Waterloo Quadrangle); then
</P>
<P>(6) Proceed southwesterly (downstream) 0.9 mile along the meandering Calaveras River to its intersection with Eightmile Road, section 36 south boundary line, T3N, R7E (Waterloo Quadrangle); and
</P>
<P>(7) Proceed west 8.6 miles on Eightmile Road, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-50, 71 FR 40414, July 17, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.201" NODE="27:1.0.1.1.7.3.45.181" TYPE="SECTION">
<HEAD>§ 9.201   Sloughhouse.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Sloughhouse”. For purposes of part 4 of this chapter, “Sloughhouse” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey, 1:24,000 scale, topographic quadrangle maps used to determine the boundary of the Sloughhouse viticultural area are titled—
</P>
<P>(1) Clay, Calif., 1968, photorevised 1980, minor revision 1993;
</P>
<P>(2) Sloughhouse, Calif., 1968, photorevised 1980, minor revision 1993;
</P>
<P>(3) Elk Grove, Calif., 1968, photorevised 1979;
</P>
<P>(4) Buffalo Creek, Calif., 1967, photorevised 1980;
</P>
<P>(5) Folsom SE, Calif., 1954, photorevised 1980; and
</P>
<P>(6) Carbondale, Calif., 1968, photorevised 1980, minor revision 1993.
</P>
<P>(c) <I>Boundary.</I> The Sloughhouse viticultural area is located in Sacramento County, California, and is entirely within the Lodi viticultural area (27 CFR 9.107). The Sloughhouse viticultural area boundary is as follows—
</P>
<P>(1) The beginning point is on the Clay map at the intersection of the Laguna estuary and Alta Mesa Road, on the western boundary of section 4, T5N, R7E. From the beginning point, proceed north 4.8 miles on Alta Mesa Road to the road's intersection with a line drawn due west from the western end of the landing strip shown in the northwestern quadrant of section 16, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(2) Proceed east 0.5 mile to the eastern end of the landing strip, section 16, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(3) Proceed northeast in a straight line 0.1 mile to the center of the loop at the south end of Tavernor Road, section 16, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(4) Proceed north 0.75 mile on Tavernor Road to its intersection with Blake Road, section 9, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(5) Proceed east 0.5 mile on the unimproved extension of Blake Road to its intersection with the 105-foot elevation line, section 9, T6N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(6) Proceed due north about 0.85 mile to the 90 degree turn in Tavernor Road and continue north about 0.9 mile on Tavernor Road to its intersection with Lee Shorthorn Road, T7N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(7) Proceed northwest 0.9 mile on Lee Shorthorn Road to its intersection with Dillard Road, T7N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(8) Proceed southwest about 2.6 miles on Dillard Road to its intersection with Wilton Road at the hamlet of Dillard, section 6, T6N, R7E (Elk Grove Quadrangle); then
</P>
<P>(9) Proceed northwest 3.1 miles on Wilton Road to its intersection with Grant Line Road at the hamlet of Sheldon, section 27, T7N, R6E (Elk Grove Quadrangle); then
</P>
<P>(10) Proceed northwest on Grant Line Road to its intersection with State Route 16 (Jackson Road), section 33, T8N, R7E (Buffalo Creek Quadrangle); then
</P>
<P>(11) Proceed east-southeast 1.6 miles on State Route 16 to its intersection with Deer Creek at BM 108 near Sloughhouse, T8N, R7E (Sloughhouse Quadrangle); then
</P>
<P>(12) Proceed northeasterly (upstream) about 11 miles along the meandering Deer Creek, crossing over the southeast corner of the Buffalo Creek map, to the creek's intersection with the Sacramento-El Dorado County line, section 1, T8N, R8E (Folsom, S.E. Quadrangle); then
</P>
<P>(13) Proceed south-southeast followed by south for about 12.4 miles along the Sacramento-El Dorado and Sacramento-Amador County line to the County line's intersection with the Laguna estuary, 0.75 mile south of the Ione Road, T6N, R9E (Carbondale Quadrangle); and
</P>
<P>(14) Proceed westerly (downstream) 17.5 miles along the meandering Laguna estuary, crossing over the Sloughhouse map, and return to the beginning point on the Clay Quadrangle.
</P>
<CITA TYPE="N">[T.D. TTB-50, 71 FR 40414, July 17, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.202" NODE="27:1.0.1.1.7.3.45.182" TYPE="SECTION">
<HEAD>§ 9.202   Eola-Amity Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Eola-Amity Hills”. For purposes of part 4 of this chapter, “Eola-Amity Hills” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Eola-Amity Hills viticultural area are six United States Geological Survey 1:24,000 scale topographic maps. They are titled—
</P>
<P>(1) Rickreall, Oregon, 1969, photorevised 1976;
</P>
<P>(2) Salem West, Oregon, 1969, photorevised 1986;
</P>
<P>(3) Mission Bottom, Oregon, 1957, revised 1993;
</P>
<P>(4) Dayton, Oregon, 1957, revised 1992;
</P>
<P>(5) McMinnville, Oregon, 1957, revised 1992; and
</P>
<P>(6) Amity, Oregon, 1957, revised 1993.
</P>
<P>(c) <I>Boundary.</I> The Eola-Amity Hills viticultural area is located in the State of Oregon, within Polk and Yamhill Counties, and is entirely within the Willamette Valley viticultural area. The area's boundary is defined as follows—
</P>
<P>(1) The beginning point is on the Rickreall, Oregon, map at the intersection of State Highway 22 and Rickreall Road, near the Oak Knoll Golf Course, in section 50, T7S, R4W;
</P>
<P>(2) From the beginning point, proceed east on State Highway 22 to its intersection with Doaks Ferry Road on the Salem West, Oregon, map; then
</P>
<P>(3) Proceed northeast on Doaks Ferry Road to its intersection with the 200-foot contour line southeast of Gibson Gulch, in section 65; then
</P>
<P>(4) Follow the 200-foot contour line in a westerly loop until it rejoins Doaks Ferry Road; then
</P>
<P>(5) Continue north on Doaks Ferry Road to its intersection with State Highway 221; then
</P>
<P>(6) Continue north on State Highway 221 to its intersection with the 200-foot contour line at the point where the contour line departs from Highway 221 and runs southwest along the southern edge of Spring Valley (section 53 on the Mission Bottom, Oregon, map); then
</P>
<P>(7) Follow the 200-foot contour line first south onto the Salem West, Oregon, map, then northwest around the southern and western edge of Spring Valley and back on to the Mission Bottom, Oregon, map; then
</P>
<P>(8) Continue to follow the 200-foot contour line generally north on the Mission Bottom, Oregon, map, crossing onto and back from the Amity, Oregon, map and continue past the Yamhill County line and onto the Dayton, Oregon, map; then
</P>
<P>(9) Follow the 200-foot contour line from the Dayton, Oregon, map onto the McMinnville, Oregon, map and back to the Dayton, Oregon, map and continue around the northeast edge of the Amity Hills spur of the Eola Hills; then
</P>
<P>(10) Follow the 200-foot contour line onto the McMinnville, Oregon, map as it continues around the northern and western periphery of the Amity Hills spur; then
</P>
<P>(11) Follow the 200-foot contour line onto the Amity, Oregon, map as it heads first south, then generally southeast, then generally south, along the western edge of the Eola Hills until it intersects Old Bethel Road at a point just north of the Polk County line; then
</P>
<P>(12) Follow Old Bethel Road, which becomes Oak Grove Road, south until the road intersects the 200-foot contour line approximately 400 feet north of Oak Grove Road's northern intersection with Zena Road, just northwest of Bethel; then
</P>
<P>(13) Follow the 200-foot contour line easterly and then southerly until its first intersection with Zena Road, and then follow Zena Road west approximately 0.25 mile to its southern intersection with Oak Grove Road, south of Bethel; then
</P>
<P>(14) Follow Oak Grove Road south until it intersects with Frizzell Road; then
</P>
<P>(15) Follow Frizzell Road west for approximately 0.25 mile to its first intersection with the 200-foot contour line, then
</P>
<P>(16) Follow the 200-foot contour line generally south, crossing onto the Rickreall, Oregon, map, until the contour line intersects the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-51, 71 FR 40404, July 17, 2006; T.D. TTB-155, 83 FR 64279, Dec. 14, 2018]


</CITA>
</DIV8>


<DIV8 N="§ 9.203" NODE="27:1.0.1.1.7.3.45.183" TYPE="SECTION">
<HEAD>§ 9.203   Saddle Rock-Malibu.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Saddle Rock-Malibu”. For purposes of part 4 of this chapter, “Saddle Rock-Malibu” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Map.</I> The following United States Geological Survey, 1:24,000 scale, topographic map is used to determine the boundary of the Saddle Rock-Malibu viticultural area: Point Dume Quadrangle California, 7.5-Minute Series (Orthophotoquad), 1995.
</P>
<P>(c) <I>Boundary.</I> The Saddle Rock-Malibu viticultural area is located in Los Angeles County, California. The boundary of the Saddle Rock-Malibu viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Point Dume map at the intersection of Decker Road and Mulholland Highway, section 3, T1S/R19W;
</P>
<P>(2) From the beginning point, proceed north-northeast along Decker Road approximately 0.7 mile to its intersection with the southern boundary of the El Conejo land grant, section 3, T1S/R19W; then
</P>
<P>(3) Proceed straight east-southeast along the El Conejo land grant boundary line approximately 0.4 mile to the point where the land grant boundary line changes direction to the northeast, section 2, T1S/R19W; then
</P>
<P>(4) Proceed straight northeast for approximately 0.5 mile along the El Conejo land grant boundary line to its second intersection with the 1,700-foot contour line in section 2, T1S/R19W; then
</P>
<P>(5) Proceed southeasterly along the meandering 1,700-foot contour line, crossing the R19W/R18W range line near the southwest corner of section 6, T1S/R18W, and continue along the 1,700-foot contour line to its intersection with Kanan Road near the southwest corner of section 6, T1S/R18W; then
</P>
<P>(6) Proceed south along Kanan Road approximately 0.35 mile to its intersection with the 1,800-foot contour line (very near the intersection of Kanan Road and an unnamed unimproved road), section 7, T1S/R18W; then
</P>
<P>(7) Proceed southeasterly along the meandering 1,800-foot contour line to a point approximately 200 feet due north of the intersection of Mulholland Highway and two unnamed, unimproved roads near the center of section 7, T1S/R18W, and, from that point, proceed due south in a straight line to the intersection of Mulholland Highway and the two unnamed, unimproved roads, section 7, T1S/R18W; then
</P>
<P>(8) Following the eastern-most unimproved road, proceed southerly along the meandering unimproved road, passing to the west of a 2,054-foot peak, and continue to the road's intersection with another unnamed, unimproved road immediately south of the section 18 north boundary line and due east of a 2,448-foot peak, section 18, T1S/R18W; then
</P>
<P>(9) Proceed southwesterly along the unnamed, unimproved road to its intersection with the Latigo Canyon Road, just east of BM 2125, section 18, T1S/R18W; then
</P>
<P>(10) Proceed northerly then westerly along Latigo Canyon Road to its intersection with Kanan Road very near the southeast corner of section 12, T1S/R19W; then
</P>
<P>(11) Proceed south along Kanan Road for approximately 0.6 mile to its intersection with the 1,700-foot contour line, located immediately south of the four-way intersection of two unnamed, unimproved roads and Kanan Road, section 13, T1S/R19W; then
</P>
<P>(12) Proceed 1.5 miles generally west and northwest along the unnamed, unimproved road that meanders westerly, crossing over several intermittent streams, and continues through Zuma Canyon to its intersection with Encinal Canyon Road at about the 1,806-foot elevation mark, section 11, T1S/R19W; then
</P>
<P>(13) Crossing Encinal Canyon Road, proceed northwesterly along the unnamed, unimproved road, which becomes a trail, and continue northerly to the trail's intersection with the 1,900-foot contour line, near the center of section 11, T1S/R19W; then
</P>
<P>(14) Proceed northwesterly along the meandering 1,900-foot contour line, circling to the west of the 2,189-foot peak in section 11, to the contour line's intersection with Mulholland Highway at the northern boundary of section 11, T1S/R19W; then
</P>
<P>(15) Proceed westerly about 0.8 mile on Mulholland Highway and return to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-52, 71 FR 40400, July 17, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.204" NODE="27:1.0.1.1.7.3.45.184" TYPE="SECTION">
<HEAD>§ 9.204   Tracy Hills.</HEAD>
<P>(a) <I>Tracy Hills.</I> The name of the viticultural area described in this section is “Tracy Hills”. For purposes of part 4 of this chapter, “Tracy Hills” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Tracy Hills viticultural area are five USGS 1:24,000-scale, topographic maps. They are titled:
</P>
<P>(1) Tracy, Calif., 1954, photorevised 1981;
</P>
<P>(2) Vernalis, CA, 1991;
</P>
<P>(3) Solyo, Calif., 1953, photorevised 1971, photoinspected 1978;
</P>
<P>(4) Lone Tree Creek, Calif., 1955, photorevised 1971; and
</P>
<P>(5) Midway Calif., 1953, photorevised 1980.
</P>
<P>(c) <I>Boundary.</I> The Tracy Hills viticultural area is located in southwestern San Joaquin County and northwestern Stanislaus County in the State of California. The boundary of the Tracy Hills viticultural area is as described below.
</P>
<P>(1) The beginning point is on the Tracy map at the intersection of the Delta-Mendota Canal and Lammers Ferry Road, along the western boundary line of section 6, T3S/R5E. From the beginning point, proceed 0.4 mile generally southeast along the Delta-Mendota Canal to its intersection with the Western Pacific Railway line along the southern boundary line of section 6, T3S/R5E (Tracy map); then
</P>
<P>(2) Proceed 5.6 miles straight east along the Western Pacific Railway line and then along Linne Road to the intersection of Linne Road and Lehman Road, along the northern boundary line of section 12, T3S/R5E (Vernalis map); then
</P>
<P>(3) Proceed 1.5 miles straight south and then east along Lehman Road to its intersection with Bird Road at the southeast corner of section 12, T3S/R5E (Vernalis map); then
</P>
<P>(4) Proceed 1 mile straight south along Bird Road to its intersection with Durham Ferry Road at the southeast corner of section 13, T3S/R5E (Vernalis map); then
</P>
<P>(5) Proceed 1.9 miles straight east along Durham Ferry Road to its intersection with State Highway 33 along the northern boundary line of section 20, T3S/R6E (Vernalis map); then
</P>
<P>(6) Proceed 5.1 miles straight southeast along State Highway 33, passing the hamlet of Vernalis, to the highway's intersection with McCracken Road along the eastern boundary of section 2, T4S/R6E (Solyo map); then
</P>
<P>(7) Proceed 3.4 miles straight south along McCracken Road to its intersection with Hamilton Road at the southeast corner of section 23, T4S/R6E (Solyo map); then
</P>
<P>(8) Proceed 2.4 miles straight west along the southern boundary lines of sections 23, 22, and 21, T4S/R6E, crossing the Delta-Mendota Canal and the California Aqueduct, to the junction of the southern boundary of section 21, the 500-foot elevation line, and the westernmost transmission line, (Solyo map); then
</P>
<P>(9) Proceed 4.2 miles generally northwest along the meandering 500-foot elevation line to section 18, T4S/R6E, where the 500-foot elevation line crosses all the transmission lines and then continues northwest a short distance to the easternmost transmission line in the northwest quadrant of section 18, T4S/R6E, (Solyo map); then
</P>
<P>(10) Proceed 8.45 miles straight northwest along the easternmost transmission line, crossing from the Solyo map, over the Lone Tree Creek map, to the Tracy map, and continue to the transmission line's intersection with the western boundary of section 19, T3S/R5W, about 0.7 mile north-northeast of Black Butte (Tracy map); then
</P>
<P>(11) Proceed in a straight line 2 miles northwest to this line's intersection with the 500-foot elevation line, immediately north of an unimproved dirt road, just north of the midpoint of the western boundary line of section 12, T3S/R4E (Tracy map); then
</P>
<P>(12) Proceed 0.65 mile straight north along the western boundaries of section 12 and then section 1 to the section 1 line's intersection with Interstate Highway 580 (I-580), section 1, T3S/R4E (Tracy map); then
</P>
<P>(13) Proceed 0.8 mile straight northwest along I-580 to its intersection with the Western Pacific Railway line in section 2, T3S/R4E (Midway map); then
</P>
<P>(14) Proceed easterly 0.7 mile along the Western Pacific Railway line to its intersection with the eastern boundary line of section 2, T3S/R4E (Tracy map); and
</P>
<P>(15) Proceed east for 1 mile in a straight line, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-54, 71 FR 65411, Nov. 8, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.205" NODE="27:1.0.1.1.7.3.45.185" TYPE="SECTION">
<HEAD>§ 9.205   Chehalem Mountains.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Chehalem Mountains”. For purposes of part 4 of this chapter, “Chehalem Mountains” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundary of the Chehalem Mountains viticultural area are six United States Geological Survey 1:24,000 scale topographic maps. They are titled:
</P>
<P>(1) Newberg Quadrangle, Oregon, 7.5 Minute Series, 1961 (photorevised 1985);
</P>
<P>(2) Dundee Quadrangle, Oregon, 7.5 Minute Series, 1956 (revised 1993);
</P>
<P>(3) Laurelwood Quadrangle, Oregon, 7.5 Minutes Series 1956 (revised 1992);
</P>
<P>(4) Scholls Quadrangle, Oregon, 7.5 Minute Series, 1961 (photorevised 1985);
</P>
<P>(5) Beaverton Quadrangle, Oregon, 7.5 Minute Series, 1961 (photorevised 1984); and
</P>
<P>(6) Sherwood Quadrangle, Oregon, 7.5 Minute Series, 1961 (photorevised 1985).
</P>
<P>(c) <I>Boundary.</I> The Chehalem Mountains viticultural area is located in Clackamas, Yamhill, and Washington Counties, Oregon. The boundary of the Chehalem Mountains viticultural area is as described below:
</P>
<P>(1) The beginning point is in Yamhill County on the Newberg map in section 15, T3S/R2W, at the intersection of Oregon Highway 99W and the 250-foot contour line, 0.4 mile east of Spring Brook;
</P>
<P>(2) From the beginning point, proceed northwesterly 1.2 miles along the 250-foot contour to its intersection with an unnamed light-duty road locally known as Benjamin Road, section 50, T3S/R2W, Newberg map; then
</P>
<P>(3) Proceed west 0.5 mile along Benjamin Road, crossing railroad tracks, to its intersection with an unnamed light-duty road locally known as Spring Brook Road, section 48, T3S/R2W, Newberg map; then
</P>
<P>(4) Proceed southwest 0.3 mile along Spring Brook Road, parallel to the railroad tracks, to its intersection with an unnamed light-duty road locally known as Mountainview Drive, section 48, T3S/R2W, on the Newberg map; then
</P>
<P>(5) Proceed west 0.35 mile on Mountainview Drive to its intersection with an unnamed light-duty road locally known as Aspen Way, along the western boundary of section 8, T3S/R2W, Newberg map; then
</P>
<P>(6) Proceed northwesterly 1.4 miles on Aspen Way to its intersection with Bell Road, along the northern boundary of section 47, T3S/R2W, Newberg map; then
</P>
<P>(7) Proceed west 0.8 mile on Bell Road, which becomes North Valley Road after crossing Oregon Highway 219, to its intersection with the 250-foot contour line, immediately before an unimproved dirt road on the left, section 46, T3S/R2W, Newberg map; then
</P>
<P>(8) Proceed westerly 2 miles along the 250-foot contour line to its first intersection with the western boundary line of section 43, T3S/R3W, along the western border of the Newberg map; then
</P>
<P>(9) Proceed north 0.2 mile along the western boundary of section 43, T3S/R3W, to its intersection with the 240-foot contour line, Newberg map; then
</P>
<P>(10) Proceed westerly for 4 miles along the 240-foot contour line, crossing onto the Dundee map, to its intersection with an unnamed light-duty road locally known as Sullivan Lane, section 74, T3S/R3, Dundee map; then
</P>
<P>(11) Proceed south 0.25 mile along Sullivan Lane to its intersection with North Valley Road at elevation point 216, section 74, T3S/R3, Dundee map; then
</P>
<P>(12) Proceed west 0.1 mile along North Valley Road to its intersection with the 200-foot contour line, section 74, T3S/R3W, Dundee map; then
</P>
<P>(13) Proceed northwesterly 1 mile along the 200-foot contour line to its intersection with an unnamed creek northeast of elevation point 215, and continue northwesterly 0.05 mile along the unnamed creek to its intersection with Dopp Road along the western boundary line of section 74, T3S/R3W, Dundee map; then
</P>
<P>(14) Proceed south 0.8 mile along Dopp Road to its intersection with North Valley Road at the elevation point 202 near the Ewing Young School, section 39, T3S/R3W, Dundee map; then
</P>
<P>(15) Proceed northerly 5 miles on North Valley Road, crossing onto the Laurelwood map, to the road's intersection with Laughlin Road and Albertson Road at elevation point 235, section 58, T2S/R3W, Laurelwood map; then
</P>
<P>(16) Proceed east 0.1 mile on Albertson Road to its intersection with the 240-foot contour line, section 58, T2S/R3W, Laurelwood map; then
</P>
<P>(17) Proceed northerly 15.6 miles along the 240-foot contour line to its intersection with Sandstrom Road, section 19, T1S/R3W, Laurelwood map; then
</P>
<P>(18) Proceed west 0.15 mile on Sandstrom Road to its third crossing of the 200-foot contour line, just before Fern Hill Road to the west, section 24, T1S/R4W, Laurelwood map; then
</P>
<P>(19) Proceed northwesterly and then northeasterly 4.5 miles along the meandering 200-foot contour line to its intersection with La Follette Road along the eastern boundary of section 8, T1S/R3W, Laurelwood map; then
</P>
<P>(20) Proceed south 0.25 mile on La Follette Road to its intersection with the 240-foot contour line, north of Blooming Fern Hill Road, along the western boundary line of section 16, T1S/R3W, Laurelwood map; then
</P>
<P>(21) Proceed easterly and then southerly 17 miles along the meandering 240-foot contour line, crossing over and back on the Scholls map in section 25 and 56, T1S/R3W, crossing Christensen Creek in section 35, T1S/R3W, and continuing to the contour line's intersection with Laurel Road West, along the southern boundary line of section 1, T2S/R3W, Laurelwood map; then
</P>
<P>(22) Proceed east 0.15 mile on Laurel Road West to its intersection with the 200-foot contour line, along the southern boundary line of section 1, T2S/R3W, Laurelwood map; then
</P>
<P>(23) Proceed easterly 17.5 miles along the meandering 200-foot contour line, and, after crossing onto the Scholls map and crossing over Laurel Road South, McCormick Hill Road four times, and Midway Road, and after crossing over and back on the Newberg map (crossing Heaton Creek) in section 28, T2S/R2W, continue to the contour line's intersection with Mountain Home Road, east of Heaton Creek, section 21, T2S/R2W, Scholls map; then
</P>
<P>(24) Continue easterly and then southerly 8.9 miles along the 200-foot contour line and, after crossing Baker Creek, skirting Laurel Ridge to the north, crossing onto the Beaverton map, crossing over and back on the Sherwood map, crossing over in the northwest corner of the Beaverton map, and returning to the Scholls map, continue to the contour line's intersection with the middle tributary of an unnamed creek, along the western boundary line of section 24, T2S/R2W, Scholls map; then
</P>
<P>(25) Proceed southeast along the meandering 200-foot contour line and, after crossing over to the northeast corner of the Newberg map to the Sherwood map, continue to the contour line's intersection with Edy Road, section 25, T2S/R2W, Sherwood map; then
</P>
<P>(26) Proceed southwest along the meandering 200-foot contour line and, after crossing onto the Newberg map, skirting part of Chicken Creek, and returning to the Sherwood map, continue to the contour line's intersection with Elwert Road, along the eastern boundary line of section 25, T2S/R2W, Sherwood map; then
</P>
<P>(27) Proceed south 0.85 mile on Elwert Road to its intersection with Oregon Highway 99W, along the eastern boundary line of section 36, T2S/R2W, Sherwood map; then
</P>
<P>(28) Proceed south-southwest 0.45 mile on Oregon Highway 99W to its intersection with the 250-foot contour line immediately south of an unnamed Cedar Creek tributary, section 36, T2S/R2W, Sherwood map; then
</P>
<P>(29) Proceed southerly 1 mile along the meandering 250-foot contour line to its intersection with Middleton Road, section 1, T3S/R2W, Sherwood map; then
</P>
<P>(30) Proceed southwesterly 0.5 mile on Middleton Road, which becomes Rein Road, to the road's intersection with the 200-foot contour line, immediately south of Cedar Creek, section 1, T3S/R2W, Sherwood map; then
</P>
<P>(31) Proceed 1.6 miles generally east along the 200-foot contour line to its intersection, in the village of Middleton, with an unnamed light-duty east-west road locally known as Brookman Road, section 6, T3S/R1W, Sherwood map; then
</P>
<P>(32) Proceed easterly 0.7 mile on Brookman Road to its intersection with the Washington-Clackamas County line, at the northwest corner of section 5, T3S/R1W, Sherwood map; then
</P>
<P>(33) Proceed east 1 mile along the Washington-Clackamas County line to its intersection with Brown Road, at the northeast corner of section 5, T3S/R1W, Sherwood map; then
</P>
<P>(34) Proceed southerly 1 mile on Brown Road to its second intersection with the 250-foot contour line, immediately south of an intermittent stream, in section 4, T3S/R1W, Sherwood map; then
</P>
<P>(35) Proceed southerly 2.8 miles along the meandering 250-foot contour line, skirting Hoodview, to the contour line's intersection with Baker Road, section 16, T3S/R1W, Sherwood map; then
</P>
<P>(36) Proceed south 0.15 mile on Baker Road to its intersection with the 200-foot contour line, section 16, T3S/R1W, Sherwood map; then
</P>
<P>(37) Proceed southwesterly 13.1 miles along the meandering 200-foot contour line and, after crossing onto the Newberg map, continue to the contour line's intersection with Wilsonville Road, north of Willamette Greenway State Park, section 60, T3S/R2W, Newberg map; then
</P>
<P>(38) Proceed northwesterly 2 miles on Wilsonville Road to its intersection with an unnamed tributary of Spring Brook, east-northeast of Grouse Butte, section 57, T3S/R2W, Newberg map; then
</P>
<P>(39) Proceed southwesterly 0.25 mile along the unnamed tributary of Spring Brook to its intersection with the 200-foot contour line, section 57, T3S/R2W, Newberg map; then
</P>
<P>(40) Proceed westerly and then northerly 0.45 mile along the 200-foot contour line, following the base of Grouse Butte, to the contour line's intersection with Wilsonville Road, section 57, T3S/R2W, Newberg map; then
</P>
<P>(41) Proceed east 0.45 mile on Wilsonville Road to its intersection with the same unnamed tributary of Spring Brook, section 57, T3S/R2W, Newberg map; then
</P>
<P>(42) Proceed northeasterly 0.05 mile along the unnamed tributary of Spring Brook to its intersection with the 250-foot contour line, southwest of the quarries, section 57, T3S/R2W, Newberg map; then
</P>
<P>(43) Proceed northerly 2.2 miles along the 250-foot contour line to its intersection with Corral Creek Road (misnamed Ladd Hill Road on the Newberg map), south of Oregon Highway 99W, section 15, T3S/R2W, Newberg map; then
</P>
<P>(44) Proceed north 0.5 mile along Corral Creek Road to its western-most intersection with an unnamed light-duty road locally known as Veritas Lane, section 15, T3S/R2W, Newberg map; then
</P>
<P>(45) Proceed north-northwesterly in a straight line approximately 0.05 mile and return to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-56, 71 FR 68462, Nov. 27, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.206" NODE="27:1.0.1.1.7.3.45.186" TYPE="SECTION">
<HEAD>§ 9.206   Shawnee Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Shawnee Hills”. For purposes of part 4 of this chapter, “Shawnee Hills” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The United States Geological Survey (USGS) 1:250,000-scale topographic map used to determine the boundary of the Shawnee Hills viticultural area is titled—Paducah: Kentucky-Illinois, Missouri-Indiana, 1987 edition.
</P>
<P>(c) <I>Boundary.</I> The Shawnee Hills viticultural area is located in southern Illinois between the Ohio and Mississippi Rivers, and largely within the Shawnee National Forest. The boundary of the Shawnee Hills viticultural area is described below—
</P>
<P>(1) Beginning at the intersection of State Routes 3 and 150 in the town of Chester (Randolph County), proceed northeast on Route 150 to its intersection with the surveyed boundary line between Township 6 South (T6S) and Township 7 South (T7S); then
</P>
<P>(2) Proceed due east along the T6S/T7S boundary line until it becomes the boundary between Perry and Jackson Counties, and continue east along the Perry-Jackson County line to State Route 4; then
</P>
<P>(3) Proceed southeast on State Route 4 through the villages of Campbell Hill, Ava, and Oraville to its intersection with State Route 13/127; then
</P>
<P>(4) Proceed south on State Route 13/127 to the intersection where State Routes 13 and 127 divide in the town of Murphysboro; then
</P>
<P>(5) Proceed east on State Route 13 through the city of Carbondale to State Route 13's intersection with Interstate 57; then
</P>
<P>(6) Proceed south on Interstate 57 to its intersection with State Route 148; then
</P>
<P>(7) Proceed southeast on State Route 148 to its intersection with State Route 37; then
</P>
<P>(8) Proceed south on State Highway 37 to Saline Creek; then
</P>
<P>(9) Proceed northeasterly (downstream) along Saline Creek to its confluence with the South Fork of the Saline River, then continue easterly (downstream) along the South Fork of the Saline River to its confluence with the Saline River, then continue easterly and then southeasterly (downstream) along the Saline River to its confluence with the Ohio River near Saline Landing; then
</P>
<P>(10) Proceed southwesterly (downstream) along the Ohio River to the Interstate 24 bridge; then
</P>
<P>(11) Proceed north on Interstate 24 to its intersection with the New Columbia Ditch (with the towns of Big Bay to the northeast and New Columbia to the northwest); then
</P>
<P>(12) Proceed westerly along the New Columbia Ditch to its confluence with the Main Ditch, and continue westerly along the Main Ditch to its confluence with the Cache River (near the Cache River's confluence with the Post Creek Cutoff), approximately 1.5 miles east-northeast of the village of Karnak; then
</P>
<P>(13) Proceed westerly (downstream) along the Cache River, passing under Interstate 57 near the village of Ullin, and continue southeasterly along the Cache River to the river's confluence with Sandy Creek (northeast of the village of Sandusky); then
</P>
<P>(14) Proceed westerly (upstream) along Sandy Creek approximately 4 miles to its junction with an unnamed secondary road (known locally as Alexander County Road 4); then
</P>
<P>(15) Proceed south along the unnamed secondary road (Alexander County Road 4) to its junction with State Route 3 at the village of Olive Branch; then
</P>
<P>(16) Proceed northwest on State Route 3 to its intersection with the Main Ditch (also known locally as Sexton Creek) at the village of Gale; then
</P>
<P>(17) Proceed northerly along Main Ditch and Clear Creek Ditch to a light-duty road (known locally as State Forest Road) near the southwest corner of the Trail of Tears State Forest, approximately 3.75 miles east of the village of Wolf Lake; then
</P>
<P>(18) Proceed west on the light-duty road (State Forest Road) to its intersection with State Route 3 just south of Wolf Lake; then
</P>
<P>(19) Proceed north on State Route 3 to its junction with the Big Muddy River (near the village of Aldridge), and continue north (upstream) along the Big Muddy River to its confluence with Kincaid Creek near the village of Grimsby; then
</P>
<P>(20) Continue northerly along Kincaid Creek to its junction with State Route 149; then
</P>
<P>(21) Proceed west on State Route 149 to its junction with State Route 3, and then continue northwest along State Route 3 to the beginning point in the town of Chester.
</P>
<CITA TYPE="N">[T.D. TTB-57, 71 FR 68471, Nov. 27, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 9.207" NODE="27:1.0.1.1.7.3.45.187" TYPE="SECTION">
<HEAD>§ 9.207   Outer Coastal Plain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Outer Coastal Plain”. For purposes of part 4 of this chapter, “Outer Coastal Plain” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Outer Coastal Plain viticultural area are 10 United States Geological Survey topographic maps. They are titled:
</P>
<P>(1) Wilmington, Delaware-New Jersey-Pennsylvania-Maryland, 1984, 1:100,000 scale;
</P>
<P>(2) Hammonton, New Jersey, 1984, 1:100,000 scale;
</P>
<P>(3) Trenton, New Jersey-Pennsylvania-New York, 1986, 1:100,000 scale;
</P>
<P>(4) Long Branch, New Jersey, 1954, photorevised 1981, 1:24,000 scale;
</P>
<P>(5) Atlantic City, New Jersey, 1984, 1:100,000 scale;
</P>
<P>(6) Cape May, New Jersey, 1981, 1:100,000 scale;
</P>
<P>(7) Dover, Delaware-New Jersey-Maryland, 1984, 1:100,000 scale;
</P>
<P>(8) Freehold, New Jersey, 2014, 1:24,000 scale;
</P>
<P>(9) Marlboro, New Jersey, 2014, 1:24,000 scale; and
</P>
<P>(10) Keyport, New Jersey-New York, 2014, 1:24,000 scale.
</P>
<P>(c) <I>Boundary.</I> The Outer Coastal Plain viticultural area includes all of Cumberland, Cape May, Atlantic, and Ocean Counties and portions of Salem, Gloucester, Camden, Burlington, and Monmouth Counties in the State of New Jersey. The boundary of the Outer Coastal Plain viticultural area is as described below.
</P>
<P>(1) The beginning point is on the Wilmington map at the confluence of Alloway Creek with the Delaware River (within Mad Horse Creek State Wildlife Management Area) in Salem County;
</P>
<P>(2) From the beginning point, proceed northeasterly in a straight line to the village of Hagerville; then
</P>
<P>(3) Continue north on an unnamed road locally known as County Road (CR) 658 to its intersection with State Route (SR) 49; then
</P>
<P>(4) Proceed northwesterly on SR 49 to its intersection with SR 45 in the center of the town of Salem; then
</P>
<P>(5) Proceed northeasterly on SR 45 to its intersection with SR 540 at the village of Pointers; then
</P>
<P>(6) Proceed north on SR 540 into the village of Slapes Corner; then
</P>
<P>(7) Proceed northeasterly on an unnamed road locally known as CR 646 to its intersection with the New Jersey Turnpike near the village of Auburn; then
</P>
<P>(8) Proceed northeasterly on the New Jersey Turnpike for approximately 18 miles to its intersection with SR 47; then
</P>
<P>(9) Proceed south on SR 47 for approximately 0.5 mile to its intersection with SR 534 at the village of Gardenville Center; then
</P>
<P>(10) Proceed southeasterly through Gardenville Center on SR 534 to its intersection with SR 544; then
</P>
<P>(11) Proceed northeasterly on SR 544 to its intersection with SR 73 on the Hammonton map; then
</P>
<P>(12) Proceed north-northwesterly on SR 73 to its intersection with SR 70 in Cropwell; then
</P>
<P>(13) Proceed east on SR 70 to its intersection with U.S. 206 in Red Lion; then
</P>
<P>(14) Proceed north on U.S. 206, onto the Trenton map, to the intersection of U.S. 206 and an unnamed road locally known as CR 537, in the village of Chambers Corner; then
</P>
<P>(15) Proceed northeasterly on CR 537, through the village of Jobstown; then
</P>
<P>(16) Continue northeasterly on CR 537, crossing onto the Freehold, New Jersey, map, to the intersection of CR 537 (known locally as W. Main Street) and State Route 79 (known locally as S. Main Street) in Freehold; then
</P>
<P>(17) Proceed northeasterly, then northerly, along State Route 79, crossing onto the Marlboro, New Jersey, map to the intersection of State Route 79 and Pleasant Valley Road in Wickatunk; then
</P>
<P>(18) Proceed northeasterly, then southeasterly along Pleasant Valley Road to the road's intersection with Schank Road, south of Pleasant Valley; then
</P>
<P>(19) Proceed easterly along Schank Road to the road's intersection with Holmdel Road; then
</P>
<P>(20) Proceed northerly along Holmdel Road, crossing onto the Keyport, New Jersey-New York map, to the road's intersection with the Garden State Parkway, north of Crawford Corners; then
</P>
<P>(21) Proceed southeasterly on the Garden State Parkway to its intersection with SR 36 and proceed east along SR 36 onto the Long Branch map; then
</P>
<P>(22) Using the Long Branch map, continue east on SR 36 to where it intersects with Joline Avenue; then
</P>
<P>(23) Proceed northeasterly on Joline Avenue to the Atlantic Ocean shoreline; then
</P>
<P>(24) Follow the Atlantic Ocean shoreline south, encompassing all coastal islands, onto the Trenton, Hammonton, Atlantic City, and Cape May maps, to the city of Cape May; then
</P>
<P>(25) Proceed west, then north, along the eastern bank of the Delaware River, onto the Atlantic City, Dover, and Wilmington maps to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-58, 72 FR 6167, Feb. 9, 2007, as amended by T.D. TTB-148, 82 FR 57659, Dec. 7, 2017; T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.208" NODE="27:1.0.1.1.7.3.45.188" TYPE="SECTION">
<HEAD>§ 9.208   Snake River Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Snake River Valley”. For purposes of part 4 of this chapter, “Snake River Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps for determining the boundary of the Snake River Valley viticultural area are 14 United States Geological Survey 1:100,000 scale, metric topographic maps. They are titled,
</P>
<P>(1) Baker, Oregon-Idaho, 1981;
</P>
<P>(2) Brogan, Oregon-Idaho, 1980;
</P>
<P>(3) McCall, Idaho-Oregon, 1980, Photoinspected 1990;
</P>
<P>(4) Weiser, Idaho-Oregon, 1980, Photoinspected 1990;
</P>
<P>(5) Boise, Idaho-Oregon, 1981;
</P>
<P>(6) Idaho City, Idaho, 1982;
</P>
<P>(7) Murphy, Idaho, 1986;
</P>
<P>(8) Mountain Home, Idaho, 1990;
</P>
<P>(9) Fairfield, Idaho, 1978;
</P>
<P>(10) Twin Falls, Idaho, 1979;
</P>
<P>(11) Glenns Ferry, Idaho, 1992;
</P>
<P>(12) Triangle, Idaho, 1990;
</P>
<P>(13) Mahogany Mountain, Idaho, 1978; and
</P>
<P>(14) Vale, Oregon-Idaho, 1993.
</P>
<P>(c) <I>Boundary.</I> The Snake River Valley viticultural area is located in Ada, Adams, Boise, Canyon, Elmore, Gem, Gooding, Jerome, Owyhee, Payette, Twin Falls, and Washington Counties in southwestern Idaho and in Baker and Malheur Counties in southeastern Oregon. The boundary of the Snake River Valley viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Baker map in Oregon at the intersection of the 1,040-meter contour line and Interstate 84, between Pleasant Valley and Oxman in Baker County, T10S/R42E;
</P>
<P>(2) From the beginning point proceed east following the 1,040-meter contour line along the eastern side of the Burnt River Valley, then crossing over to the Brogan map, proceed northerly along the western side of the Snake River Valley and, crossing back over to the Baker map, proceed westerly along the southern side of the Powder River Valley to the 1,040-meter contour line's intersection with the northern boundary of Baker County, T7S/R40E, on the Baker map;
</P>
<P>(3) Proceed 7.5 miles straight east along the northern boundary of Baker County to its intersection with the 1,040-meter line east of Oregon State Road 203 and three unnamed creeks, T7S/R41E, on the Baker map;
</P>
<P>(4) Proceed generally southeast along the 1,040-meter contour line onto the McCall map, to its intersection with the 45 degree north latitude line, to the immediate west of North Creek in the Hell's Canyon National Recreation Area, T6S/R47E, on the northern border of the McCall map;
</P>
<P>(5) Proceed straight east along the 45 degree north latitude line to its intersection with the 1,040-meter contour line, to the immediate east of North Creek, T6S/R47E, on the McCall map;
</P>
<P>(6) Follow the 1,040-meter contour line, which encircles the northern portion of McLain Gulch, to its third intersection with the 45 degree north latitude line, west of the Snake River in Baker County, Oregon, T6S/R48E, on the McCall map;
</P>
<P>(7) Proceed straight east along the 45 degree north latitude line to its intersection with the 1,040-meter contour line, to east of the Snake River and Indian Creek in Adams County, Idaho, T6S/R48W, on the McCall map;
</P>
<P>(8) Continue following the 1,040-meter contour line in a generally clockwise rotation on the McCall map, proceeding southerly on the southeast side of the Snake River, northeasterly north of the Crooked River, crossing the Crooked River, T7S/R3W, proceeding southwesterly south of the Crooked River, crossing Brownlee Creek, T16N/R4W, proceeding generally southwesterly onto the Baker map, continuing southwesterly, crossing Sturgill Creek, T15N/R6W, and Dennett Creek, T14N/R6W, proceeding onto the Brogan map, proceeding southeasterly, crossing Rock Creek, T13N/R6W, proceeding onto the Weiser map, proceeding northeasterly, north of the Mann Creek State Recreation Area, crossing Mann Creek, T13N/R5W, continuing northeasterly onto the McCall map;
</P>
<P>(9) Continue following the 1,040-meter contour line in a clockwise rotation on the McCall map, proceeding northeasterly, crossing Pine Creek, T15N/R4W, and Hornet Creek, T8S/R2W, passing west of the Payette National Forest, proceeding southerly, passing east of Mesa, onto the Weiser map, proceeding southerly, crossing Crane Creek, T12N/R1W, turning westerly, rounding north of the Paddock Valley Reservoir, crossing Willow Creek, T9N/R1W, turning southerly onto the Boise map, looping southerly and northerly north of the Black Canyon Reservoir and moving back onto the Weiser map;
</P>
<P>(10) Continue following the 1,040-meter contour line in a clockwise rotation on the Weiser map, proceeding northerly, crossing Squaw Creek, T12N/R1E, and then southerly, crossing Cottonweed Creek, T11N/R1E, and then southerly again onto the Boise map, rounding south of South Mountain, back onto the Weiser map, proceeding northeasterly north of the Payette River, crossing the North Fork Payette River, T10N/R3E, then proceeding southwesterly south of the Payette River, onto the Boise map, proceeding generally southerly, crossing Cartwright Creek, T6N/R2E, and proceeding westerly and southeasterly towards Lucky Peak Lake, and then turning northward onto the Idaho City map;
</P>
<P>(11) Continue following the 1,040-meter contour line in a clockwise rotation on the Idaho City map, proceeding northerly, crossing Grimes and Mores Creek, T5N/R4E, and then proceeding southerly to Lucky Peak Lake, turning northeasterly north of the Lucky Peak Lake, Arrowrock Reservoir, and Middle Fork Boise River to T4N/R7E, crossing the Middle Fork Boise River and proceeding southwesterly south of the Middle Fork Boise River, to the South Fork Boise River, crossing the South Fork Boise River, T2N/R6E, proceeding onto the Boise map proceeding southwesterly south of Lucky Peak Lake onto the Murphy map;
</P>
<P>(12) Continue following the 1,040-meter contour line in a clockwise rotation southeasterly on the Murphy map to the Mountain Home map, proceeding southeasterly, crossing Canyon Creek, passing north of Mountain Home Reservoir, crossing King Hill Creek, onto the Fairfield map, proceeding easterly, crossing Clover Creek, T4S/R13E, proceeding southerly onto the Twin Falls map;
</P>
<P>(13) Continue following the 1,040-meter contour line in a clockwise rotation on the Twin Falls map, proceeding southeasterly to the Snake River, T9S/R14E, following north of the Snake River and crossing at T10S/R18E, northeast of Twin Falls, proceeding westerly south of the Snake River to the Salmon River, following east of the Salmon River and crossing at T10S/R13E, proceeding northerly west of the Salmon River and the Hagerman Wildlife Management Area, proceeding west onto the Glenns Ferry map;
</P>
<P>(14) Continue following the 1,040-meter contour line in a clockwise rotation on the Glenns Ferry map, proceeding generally west to Rosevear Gulch, turning south between Rosevear Gulch and Pilgrim Gulch, near Deadman Creek, heading northwesterly, continuing through the Bruneau Desert, crossing Hole Creek in Pot Canyon and proceeding to Bruneau Canyon, proceeding southeasterly east of Bruneau Canyon, crossing Bruneau Canyon, T10S/R7E, proceeding west of Bruneau Canyon then west onto the Triangle map;
</P>
<P>(15) Continue following the 1,040-meter contour line in a clockwise rotation on the Triangle map, heading northwesterly, crossing Shoofly Creek and Alder Creek, T6S/R1W, onto the Murphy map, continuing northwesterly to Sinker Creek, crossing Sinker Creek, T4S/R2W, continuing northwesterly to Jump Creek, crossing Jump Creek, T1N/R5W, proceeding northwesterly onto the Boise map, crossing its southwestern corner, T2N/R5W, onto the Mahogany Mountain map;
</P>
<P>(16) Continue following the 1,040-meter contour line in a clockwise rotation onto the Mahogany Mountain map, proceeding westerly onto the Vale map, generally northwesterly then southwesterly onto the Mahogany Mountain map, proceeding southwest, west, and generally north onto the Vale map, passing through Succor Creek State Recreational Area, returning to the Mahogany Mountain map, and, passing east of McIntyre Ridge, crossing Succor Creek, T1N/R46E, proceeding northerly back onto the Vale map;
</P>
<P>(17) Continue following the 1,040-meter contour line in a clockwise rotation on the Vale map, proceeding northerly east of Owyhee Ridge and Long Draw to north of Lake Owyhee, southwesterly and southerly south of Lake Owyhee onto the Mahogany Mountain map, southwesterly south of Lake Owyhee, the Owyhee River, and Owyhee Canyon, crossing Owyhee Canyon at T29S/R41E, proceeding northerly west of Owyhee Canyon, northeasterly west of Owyhee River and Owyhee Reservoir, and northerly onto the Vale map;
</P>
<P>(18) Continue following the 1,040-meter contour line in a clockwise rotation on the Vale map, proceeding generally northerly to T20S/R42E, southwesterly east of Cottonwood Creek, crossing Cottonwood Creek, T22S/R40E, proceeding north to the Malheur River, following the Malheur River westerly to the intersection of the 1,040-meter contour line and the 118 degree west longitude line in Malheur County, Oregon, T21S/R38E, on the western border of the Vale map;
</P>
<P>(19) Proceed straight north along the 118 degree west longitude line to its intersection with the 1,040-meter contour line, north of the Malheur River, T20S/R38E, proceeding easterly north of the Malheur River to Hog Creek, crossing Hog Creek, T20S/R40E, and proceeding northerly on the Vale map;
</P>
<P>(20) Continue following the 1,040-meter contour line in a clockwise rotation, crossing onto the Brogan map, proceeding easterly, northerly, and westerly to and around Malheur Reservoir, T14S/R41E, proceeding easterly to Cottonwood Gulch then northerly to Dixie Creek, crossing Dixie Creek, T12S/RR41E, proceeding easterly and northerly onto the Baker map;
</P>
<P>(21) Continue following the 1,040-meter contour line in a clockwise rotation on the Baker map, proceeding westerly south of the Burnt River, crossing the Burnt River, T10S/R41E, proceeding easterly north of the Burnt River to Gravel Pits, then northerly, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-59, 72 FR 10602, Mar. 9, 2007]


</CITA>
</DIV8>


<DIV8 N="§ 9.209" NODE="27:1.0.1.1.7.3.45.189" TYPE="SECTION">
<HEAD>§ 9.209   Calistoga.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Calistoga”. For purposes of part 4 of this chapter, “Calistoga” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The appropriate maps used to determine the boundary of the Calistoga viticultural area are four United States Geological Survey 1:24,000 scale topographic quadrangle maps. They are titled:
</P>
<P>(1) Mark West Springs, Calif. (1993);
</P>
<P>(2) Calistoga, CA (1997);
</P>
<P>(3) St. Helena, Calif. (1960, revised 1993); and
</P>
<P>(4) Detert Reservoir, CA (1997).
</P>
<P>(c) <I>Boundary.</I> The Calistoga viticultural area is located in northwestern Napa County, California. The boundary beginning point is on the Mark West Springs map at the point where the Napa-Sonoma county line intersects Petrified Forest Road in section 3, T8N/R7W. From this point, the boundary:
</P>
<P>(1) Continues northeasterly along Petrified Forest Road approximately 1.9 miles to the road's intersection with the 400-foot contour line near the north bank of Cyrus Creek approximately 1,000 feet southwest of the intersection of Petrified Forest Road and State Route 128 on the Calistoga map;
</P>
<P>(2) Proceeds generally east-southeast (after crossing Cyrus Creek) along the 400-foot contour line to its intersection with Ritchey Creek in section 16, T8N/R6W;
</P>
<P>(3) Follows Ritchey Creek northeast approximately 0.3 mile to its intersection with State Route 29 at the 347-foot benchmark;
</P>
<P>(4) Proceeds east-southeast along State Route 29 approximately 0.3 mile to its intersection with a light-duty road labeled Bale Lane;
</P>
<P>(5) Follows Bale Lane northeast approximately 0.7 mile to its intersection with the Silverado Trail;
</P>
<P>(6) Proceeds northwest along the Silverado Trail approximately 1,500 feet to its intersection with an unmarked driveway on the north side of the Silverado Trail near the 275-foot benchmark;
</P>
<P>(7) Continues northeasterly along the driveway for 300 feet to its intersection with another driveway, and then continues north-northeast in a straight line to the 400-foot contour line;
</P>
<P>(8) Follows the 400-foot contour line easterly approximately 0.6 mile to its intersection with the eastern edge of the Calistoga map, denoted by a north-south longitude line labeled as longitude 122 degrees, 30 minutes;
</P>
<P>(9) Continues north along the longitude line approximately 0.5 mile to its intersection with the 880-foot contour line in section 2, T8N/R6W;




</P>
<P>(10) Follows the meandering 880-foot contour line northwesterly, crossing onto the Calistoga map in section 2, T8N/R6W, and continues along the 880-foot contour line through section 3, T8N/R6W, sections 34 and 35, T9N/R6W, (with a brief return to the St. Helena map in section 35), to the 880-contour line's intersection with Biter Creek in the northeast quadrant of section 34, T9N/R6W;
</P>
<P>(11) Continues westerly along the meandering 880-foot contour line around Dutch Henry Canyon in section 28, T9N/R6W, and Simmons Canyon in section 29, T9N/R6W, to the contour line's first intersection with the R7W/R6W range line in section 30, T9N/R6W;
</P>
<P>(12) Continues northerly along the meandering 880-foot contour line across the two forks of Horns Creek and through Hoisting Works Canyon in section 19, T9N/R6W, crossing between the Calistoga and Detert Reservoir maps, to the contour line's intersection with Garnett Creek in section 13, T9N/R7W, on the Detert Reservoir map;
</P>
<P>(13) Continues westerly along the meandering 880-foot contour line, crossing between the Calistoga and Detert Reservoir maps in sections 13 and 14, T9N/R7W, and in the region labeled “Mallacomes or Moristul y Plan de Agua Caliente,” to the contour line's intersection with the Napa-Sonoma county line approximately 1.1 miles northeast of State Route 128 in the “Mallacomes or Moristul y Plan de Agua Caliente” region, T9N/R7W, of the Mark Springs West map; and
</P>
<P>(14) Proceeds southerly along the Napa-Sonoma county line to the beginning point.
</P>
<P>(d) <I>Transition Period.</I> A label containing the word “Calistoga” in the brand name approved prior to December 8, 2009 may not be used on wine bottled on or after December 10, 2012 if the wine does not conform to the standards for use of the label set forth in § 4.39(i) of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-83, 74 FR 64612, Dec. 8, 2009, as amended by T.D. TTB-196, 89 FR 83434, Oct. 16, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.210" NODE="27:1.0.1.1.7.3.45.190" TYPE="SECTION">
<HEAD>§ 9.210   Lehigh Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lehigh Valley”. For purposes of part 4 of this chapter, “Lehigh Valley” and “Lehigh” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The seven United States Geological Survey 1:50,000 scale topographic maps used to determine the boundary of the Lehigh Valley viticultural area are titled:
</P>
<P>(1) Berks County, Pennsylvania, 1978;
</P>
<P>(2) Schuylkill County (West Half), Pennsylvania, 1979;
</P>
<P>(3) Schuylkill County (East Half), Pennsylvania, 1979;
</P>
<P>(4) Carbon County, Pennsylvania, 1991;
</P>
<P>(5) Monroe County, Pennsylvania, 1980;
</P>
<P>(6) Northampton County, Pennsylvania, 1981; and
</P>
<P>(7) Lehigh County, Pennsylvania, 1987.
</P>
<P>(c) <I>Boundary.</I> The Lehigh Valley viticultural area is located in portions of Lehigh, Northampton, Berks, Schuylkill, Carbon, and Monroe Counties, Pennsylvania. The boundary of the proposed Lehigh Valley viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Berks County map at the intersection of the Berks-Lancaster County line and the single-track Conrail rail line located near Cacoosing Creek in South Heidelberg Township;
</P>
<P>(2) From the beginning point, proceed northwest along the Berks County line and, crossing onto the Schuylkill County (West Half) map, continue northwest along the Schuylkill-Lebanon County line to the county line's intersection with the northern boundary of Pine Grove township; then
</P>
<P>(3) Proceed northeast along the northern boundary of Pine Grove, Washington, and Wayne Townships and, crossing onto the Schuylkill County (East Half) map, continue along the northern boundary of Wayne Township to the northeast corner of that township, then
</P>
<P>(4) Proceed east-northeasterly in a straight line to the confluence of Beaver Creek and Cold Run at the northeast corner of State Game Lands No. 222 in Walker township; then
</P>
<P>(5) Proceed north-northeasterly in a straight line to the 1,402-foot elevation point on Wildcat Mountain in Walker township; then
</P>
<P>(6) Proceed easterly in a straight line, crossing onto the Carbon County map, and continue to Bench Mark (BM) 1032 located on Highway 902, south of the village of Bloomingdale; then
</P>
<P>(7) Proceed east-northeasterly in a straight line to BM 555 located immediately east of the Lehigh River in the city of Jim Thorpe; then
</P>
<P>(8) Proceed east-northeasterly in a straight line to the northern most point of Lehighton Reservoir; then
</P>
<P>(9) Proceed east-northeasterly in a straight line to the western end of the dam at the Penn Forest Reservoir; then
</P>
<P>(10) Proceed easterly in a straight line and, crossing onto the Monroe County map, continue to the 847-foot elevation point located at the intersection of Highway 534 and an unnamed road locally know as Dotters Corner Road in Polk township; then
</P>
<P>(11) Proceed east-northeasterly in a straight line to the intersection of Highway 115 and an unnamed secondary road locally known as Astolat Road immediately north of the village of Effort; then
</P>
<P>(12) Proceed east-northeasterly in a straight line to St. Johns Cemetery, located along Appenzell Creek northwest of the village of Neola; then
</P>
<P>(13) Proceed straight northeast to the intersection of Interstate 80 and an unnamed road locally known as Hamilton Turnpike at the town of Bartonsville; then
</P>
<P>(14) Proceed east-southeast along Interstate 80 through Stroudsburg to the west bank of the Delaware River; then
</P>
<P>(15) Proceed south (downstream) along the west bank of the Delaware River, and, crossing onto the Northampton County map, continue south along the west bank of the Delaware River to the mouth of Lehigh River at Easton; then
</P>
<P>(16) Proceed southwesterly (upstream) along the south bank of the Lehigh River, and crossing onto the Lehigh County map, continue along the south bank of the Lehigh River to the mouth of Jordan Creek in Allentown; then
</P>
<P>(17) Proceed westerly (upstream) along Jordan Creek to the first railroad bridge over the creek, and then, following the Conrail rail line on that bridge, proceed southerly along the Conrail rail line (paralleling Trout Creek at first) through Emmaus, Macungie, and Alburtis, and continue along the rail line to the Lehigh-Berks County line; then
</P>
<P>(18) Crossing onto the Berks County map, continue southerly along the Conrail rail line through Mertztown, Topton, Lyons, Fleetwood, Blandon, and Muhlenburg to the Conrail rail bridge across the Schuylkill River in Reading; then
</P>
<P>(19) Following the Conrail rail line on the Schuylkill River bridge, proceed southerly along the rail line through Wyomissing to the rail line's junction with a single-track Conrail rail line in Sinking Springs; then
</P>
<P>(20) From the Conrail rail line junction in Sinking Springs, follow the single track Conrail rail line through Montello, Fritztown, and Vinemont, and return to the beginning point.
</P>
<CITA TYPE="N">[TTB-66, 73 FR 12874, Mar. 11, 2008, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.211" NODE="27:1.0.1.1.7.3.45.191" TYPE="SECTION">
<HEAD>§ 9.211   Swan Creek.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Swan Creek”. For purposes of part 4 of this chapter, “Swan Creek” is a term of viticultural significance.
</P>
<P>(b) <I>Approved Maps.</I> The appropriate maps for determining the boundaries of the Swan Creek viticultural area are three United States Geological Survey (USGS) 1:100,000 scale topographic maps. They are titled:
</P>
<P>(1) Winston-Salem, North Carolina, 1984, photoinspected 1982;
</P>
<P>(2) Boone, North Carolina-Tennessee, 1985; and
</P>
<P>(3) Salisbury, North Carolina, 1985, photoinspected 1983.
</P>
<P>(c) <I>Boundary.</I> The Swan Creek viticultural area is located in Wilkes, Yadkin, and Iredell Counties, North Carolina. The boundary of the Swan Creek viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Winston-Salem, North Carolina map at the intersection of the Yadkin River and U.S. Highway 21, along the Surry-Yadkin county line, between Elkin and Jonesville;
</P>
<P>(2) From the beginning point, proceed 24.6 miles generally south on U.S. Highway 21, crossing onto the Salisbury, North Carolina map, to the intersection of U.S. Highway 21 with Rocky Creek at Turnersburg; then
</P>
<P>(3) Proceed 12.3 miles generally north and west along Rocky Creek, returning to the Winston-Salem map, to the intersection of Rocky Creek with State Highway 115 at New Hope in the southwest corner of the map; then
</P>
<P>(4) Proceed 15.5 miles generally northwest along State Highway 115, crossing onto the Boone, North Carolina-Tennessee map, to the intersection of State Highway 115 and the Yadkin River, at North Wilkesboro; and
</P>
<P>(5) Proceed 16.7 miles generally east-northeast along the Yadkin River, crossing onto the Winston-Salem map, and return to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-69, 73 FR 22276, Apr. 25, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 9.212" NODE="27:1.0.1.1.7.3.45.192" TYPE="SECTION">
<HEAD>§ 9.212   Leona Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Leona Valley”. For purposes of part 4 of this chapter, “Leona Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Leona Valley viticultural area are titled:
</P>
<P>(1) Ritter Ridge, Calif., 1958; Photorevised 1974;
</P>
<P>(2) Sleepy Valley, CA, 1995;
</P>
<P>(3) Del Sur, CA, 1995; and
</P>
<P>(4) Lake Hughes, CA, 1995.
</P>
<P>(c) <I>Boundary.</I> The Leona Valley viticultural area is located in Los Angeles County, California. The boundary of the Leona Valley viticultural area is as described below:
</P>
<P>(1) From the beginning point on the Ritter Ridge map at the intersection of Elizabeth Lake Pine Canyon Road and the section 23 east boundary line, T6N, R13W, proceed straight south along the section 23 east boundary line approximately 0.1 mile to its intersection with the 3,000-foot elevation line, T6N, R13W; then
</P>
<P>(2) Proceed west along the 3,000-foot elevation line to its intersection with the section 23 west boundary line, T6N, R13W; then
</P>
<P>(3) Proceed south along the section 23 west boundary line to the southwest corner of section 23 at the 3,616-foot marked elevation point, T6N, R13W; then
</P>
<P>(4) Proceed west along the section 22 south boundary line, crossing onto the Sleepy Valley map, and continuing along the section 21 south boundary line, crossing over Pine Creek, to its intersection with the 3,400-foot elevation line, T6N, R13W; then
</P>
<P>(5) Proceed west along the 3,400-foot elevation line to its intersection with the section 19 south boundary line and Bouquet Canyon Road, T6N, R13W; then
</P>
<P>(6) Proceed straight west along the section 19 south boundary line to its intersection with the 3,560-foot elevation line, an unimproved road, and a power transmission line, north of Lincoln Crest, T6N, R13W; then
</P>
<P>(7) Proceed northeast along the 3,560-foot elevation line across section 19 to its east boundary line, T6N, R13W; then
</P>
<P>(8) Proceed in a straight line north-northwest approximately 0.25 mile to its intersection with a trail and the 3,800-foot elevation line, T6N, R13W; then
</P>
<P>(9) Proceed northwest along the meandering 3,800-foot elevation line through section 19 to its intersection with the section 13 southeast corner, T6N, R14W; then
</P>
<P>(10) Proceed straight west, followed by straight north, along the marked Angeles National Forest border to the section 11 southeast corner; then
</P>
<P>(11) Proceed straight north along the section 11 east boundary line to its intersection with the 3,400-foot elevation line south of an unimproved road, T6N, R14W; then
</P>
<P>(12) Proceed generally northwest along the 3,400-foot elevation line through section 11, crossing onto the Del Sur map, to its intersection with the section 3 southeast corner, T6N, R14W; then
</P>
<P>(13) Proceed straight west to the section 4 southeast corner, T6N, R14W; then
</P>
<P>(14) Proceed straight north along the section 4 east boundary line approximately 0.05 mile to its intersection with the 3,600-foot elevation line, T6N, R14W; then
</P>
<P>(15) Proceed northwest along the 3,600-foot elevation line, through section 4 and crossing onto the Lake Hughes map, to its intersection with the Angeles National Forest border and the section 4 western boundary line, T6N, R14W; then
</P>
<P>(16) Proceed straight north along the section 4 western boundary line to its intersection with BM 3402, south of Andrade Corner, T7N, R14W; then
</P>
<P>(17) Proceed in a line straight northeast, crossing onto the Del Sur map, to its intersection with the marked 3,552-foot elevation point, section 33, T7N, R14W; then
</P>
<P>(18) Proceed in a line straight east-southeast to its intersection with the marked 3,581-foot elevation point, and continue in a straight line east-southeast to its intersection with the marked 3,637-foot elevation point, T6N, R14W; then
</P>
<P>(19) Proceed in a line straight northeast to its intersection with the section 2 northwest corner, T6N, R14W; then
</P>
<P>(20) Proceed straight east along the section 2 north boundary line 0.35 mile to its intersection with the 3,600-foot elevation line, T6N, R14W; then
</P>
<P>(21) Proceed north and then generally southeast along the 3,600-foot elevation line that runs parallel to and south of the Portal Ridge to the elevation line's intersection with the section 7 east boundary line, T6N, R13W; then
</P>
<P>(22) Proceed straight south along the section 7 east boundary line, crossing onto the Sleepy Valley map, to its intersection with the 3,400-foot elevation line north of the terminus of 90th Street, T6N, R13W; then
</P>
<P>(23) Proceed generally east-southeast along the 3,400-foot elevation line that runs north of the San Andreas Rift Zone to its intersection with the section 16 east boundary line, T6N, R13W; then
</P>
<P>(24) Proceed straight south along the section 16 east boundary line to its intersection with the 3,000-foot elevation line, between Goode Hill Road and Elizabeth Lake Pine Canyon Road, T6N, R13W; then
</P>
<P>(25) Proceed generally southeast along the 3,000-foot elevation line, crossing onto the Ritter Ridge map, to its intersection with the section 23 east boundary line, north of the intermittent Amargosa Creek and Elizabeth Lake Pine Canyon Road, T6N, R13W; then
</P>
<P>(26) Proceed straight south along the section 23 east boundary line, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-71, 73 FR 64202, Oct. 29, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 9.213" NODE="27:1.0.1.1.7.3.45.193" TYPE="SECTION">
<HEAD>§ 9.213   Snipes Mountain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Snipes Mountain”. For purposes of part 4 of this chapter, “Snipes Mountain” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Snipes Mountain viticultural area are titled:
</P>
<P>(1) Sunnyside, Wash., 1965, photo revised 1978; and
</P>
<P>(2) Granger, Wash., 1965.
</P>
<P>(c) <I>Boundary.</I> The Snipes Mountain viticultural area is located in Yakima County, Washington. The boundary of the Snipes Mountain viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Sunnyside map, to the southwest of the town of Sunnyside, at the intersection of South Hill Road and the eastern boundary of section 34, T10N, R22E. From the beginning point, proceed south along the eastern boundary of section 34 for less than 0.1 mile to its intersection with the 750-foot elevation line, T10N, R22E; then
</P>
<P>(2) Proceed along the 750-foot elevation line, first southeasterly then westerly, to its first intersection with the Union Pacific railroad line in section 31, T10N, R22E; then
</P>
<P>(3) Proceed west-northwesterly along the Union Pacific railroad line, crossing onto the Granger map, and continue along the railroad line to its intersection with the northern boundary of section 27, T10N, R21E; then
</P>
<P>(4) Proceed north in a straight line for less than 0.1 mile to the line's intersection with the 820-foot elevation line in section 22, T10N, R21E; then
</P>
<P>(5) Proceed along the meandering 820-foot elevation line, first northwesterly then easterly, and, returning to the Sunnyside map, continue along the elevation line to its intersection with the northern boundary of section 34, T10N, R22E; then
</P>
<P>(6) Proceed east along the northern boundary line of section 34 and then section 35 to its intersection with the 820-foot elevation line, section 35, T10N, R22E; then
</P>
<P>(7) Proceed southwesterly along the 820-foot elevation line to its intersection with the eastern boundary of section 34, T10N, R22E; and then
</P>
<P>(8) Proceed south along the eastern boundary of section 34 for approximately 0.2 mile, returning to the point of beginning.
</P>
<CITA TYPE="N">[T.D. TTB-73, 74 FR 3424, Jan. 21, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 9.214" NODE="27:1.0.1.1.7.3.45.194" TYPE="SECTION">
<HEAD>§ 9.214   Haw River Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Haw River Valley”. For purposes of part 4 of this chapter, “Haw River Valley” and “Haw River” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey 1:100,000-scale metric topographic maps used to determine the boundary of the Haw River Valley viticultural area are titled:
</P>
<P>(1) Greensboro, North Carolina, 1984; and
</P>
<P>(2) Chapel Hill, North Carolina, 1984.
</P>
<P>(c) <I>Boundary.</I> The Haw River Valley viticultural area is located in all of Alamance County and portions of Caswell, Chatham, Guilford, Orange, and Rockingham Counties. The boundary of the Haw River Valley viticultural area is as described below:
</P>
<P>(1) Begin at a point on the Greensboro map at the intersection of the Caswell and Orange Counties boundary line with Lynch Creek, southeast of Corbett and the Corbett Ridge, and then proceed in a straight line southeast 2 miles to the intersection of North Carolina State Highway 49 and an unnamed, light-duty road, known locally as McCulloch Road, located approximately 1 mile northeast of Carr, in west Orange County; then
</P>
<P>(2) Proceed in a straight line south-southwest 11.9 miles, crossing over U.S. Interstate 85, to Buckhorn at Turkey Hill Creek in west Orange County; then
</P>
<P>(3) Proceed in a straight line southeast 5.2 miles, crossing onto the Chapel Hill map, to its intersection with Dodsons Crossroad and an unnamed, light-duty road that runs generally north-northeast-south-southwest in west Orange County; then
</P>
<P>(4) Proceed south-southwest on the unnamed, light-duty road 3.4 miles to its intersection with North Carolina State Highway 54, also known as Star Route 54, east of White Cross in west Orange County; then
</P>
<P>(5) Proceed southeast in a straight line 14.1 miles, crossing over Terrells Mountain, Wilkinson Creek and several of its eastern tributaries, and U.S. Route 15-501, until the line intersects with an unnamed road, known locally as Gilead Church Road, and U.S. Route 64 at Griffins Crossroads in Chatham County; then
</P>
<P>(6) Proceed generally west along U.S. Route 64 approximately 20.7 miles to its intersection with U.S. Route 421 in Siler City, Chatham County; then
</P>
<P>(7) Proceed generally northwest on U.S. Route 421 approximately 5.6 miles to its intersection with the Randolph County line, southeast of Staley; then
</P>
<P>(8) Proceed straight north along the Randolph County line 7.4 miles to its intersection with the Guilford County line; then
</P>
<P>(9) Proceed straight west along the Randolph County line 5.8 miles to its intersection with U.S. Route 421; then
</P>
<P>(10) Proceed in a straight line north-northwest 20.5 miles, crossing onto the Greensboro map, to its intersection with U.S. Route 29 and North Carolina State Highway 150, between Browns Summit and Monticello in Guilford County; then
</P>
<P>(11) Proceed generally east and north on North Carolina State Highway 150 approximately 4.3 miles to its intersection with North Carolina State Highway 87, east-northeast of Williamsburg in southeast Rockingham County; then
</P>
<P>(12) Proceed in a straight line east-northeast 8.3 miles, crossing over the Caswell County line to a point at the intersection of the 236-meter elevation line, as marked on the map, and an unnamed road, known locally as Cherry Grove Road; then
</P>
<P>(13) Proceed east and southeast along the unnamed road, known locally as Cherry Grove Road, 5 miles to its intersection with North Carolina State Highway 62 at Jericho in Caswell County; then
</P>
<P>(14) Proceed generally southeast on North Carolina State Highway 62 approximately 1.8 miles to its intersection with an unnamed road, known locally as Bayne's Road at Anderson in Caswell County; then
</P>
<P>(15) Proceed generally east on the unnamed road known locally as Baynes Road 2 miles to its intersection with North Carolina State Highway 119 at Baynes in Caswell County; then
</P>
<P>(16) Proceed generally south-southeast along North Carolina State Highway 119 approximately 1.7 miles to its intersection with the Caswell County line; then
</P>
<P>(17) Proceed straight east along the Caswell County line 4.3 miles to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-74, 74 FR 14045, Mar. 30, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 9.215" NODE="27:1.0.1.1.7.3.45.195" TYPE="SECTION">
<HEAD>§ 9.215   Lake Chelan.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lake Chelan”. For purposes of part 4 of this chapter, “Lake Chelan” and “Chelan” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The five United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Lake Chelan viticultural area are titled:
</P>
<P>(1) Manson Quadrangle, Washington—Chelan Co., 1968, photorevised 1987;
</P>
<P>(2) Cooper Ridge Quadrangle—Washington, 1968, photorevised 1987;
</P>
<P>(3) Chelan Quadrangle—Washington, 1968, photorevised 1987;
</P>
<P>(4) Chelan Falls Quadrangle—Washington, 1968, photorevised 1981; and
</P>
<P>(5) Winesap Quadrangle—Washington, 1968, photorevised 1987.
</P>
<P>(c) <I>Boundary.</I> The Lake Chelan viticultural area is located in Chelan County, Washington. The boundary of the Lake Chelan viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Manson map at the intersection of the east shore of Lake Chelan and the north boundary line of section 15, T28N/R21E, north of Greens Landing. From the beginning point, proceed straight east 1.6 miles along the northern boundary line of sections 15 and 4 to its intersection with the 2,000-foot elevation line, T28N/R21E; then
</P>
<P>(2) Follow the meandering 2,000-foot elevation line generally southeast onto the Cooper Ridge map, crossing Purtterman Gulch; continue southeast onto the Chelan map and follow the meandering 2,000-foot elevation line onto the Chelan Falls map, over the Cagle Gulch, and then return to the Chelan map; continue generally southeast onto the Chelan Falls map and follow the 2,000-foot elevation line to section 8, T27N/R23E, to a point 0.3 mile due north of BM 1404 at the intersection of U.S. Route 97 and State Route 151, T27N/R23E; then
</P>
<P>(3) Proceed in a straight south-southeast line 1.35 miles to its intersection with the section 20 north boundary line and the 1,000-foot elevation line, T27N/R23E; then
</P>
<P>(4) Proceed south-southwest along the 1,000-foot contour line to its intersection with the section 20 south boundary line, south of Chelan Station and immediately west of State Route 151, T27N/R23E; then
</P>
<P>(5) Proceed straight west along the south boundary line of sections 20 and 19 for 0.75 mile to its intersection with the light-duty Gorge Road, as identified on the adjoining Chelan map, T27N/R23E; then
</P>
<P>(6) Proceed northwest along Gorge Road, crossing onto the Chelan map, to the southeast corner of section 13, T27N/R22E; then
</P>
<P>(7) Proceed straight west along the south boundary line of sections 13, 14, 15, 16, 17, and 18, and crossing onto the Winesap map in section 18, to its intersection with the R21E/R22E line, T27N; then
</P>
<P>(8) Proceed straight north along the R21E/R22E line to its intersection with the south boundary line of section 13 and the 2,440-foot contour line, T27N/R21E; then
</P>
<P>(9) Proceed straight west to the southwest corner of section 13, T27N/R21E; then
</P>
<P>(10) Proceed straight north along the section 14 east boundary line to the northeast corner of section 14, T27N/R21E; then
</P>
<P>(11) Proceed straight west along the section 14 north boundary line to the northwest corner of section 14, T27N/R21E; then
</P>
<P>(12) Proceed straight north along the east boundary line of section 10 for 0.3 mile to its intersection with the 2,520-foot contour line and a 90-degree turn in the Wenatchee National Forest (WNF) boundary line, T27N/R21E; then
</P>
<P>(13) Proceed straight west along the WNF boundary line 0.3 mile to its intersection with the 2,600-foot contour line and a 90-degree turn in the WNF boundary line, T27N/R21E; then
</P>
<P>(14) Proceed straight south along the WNF boundary line 0.3 mile to its intersection with the south boundary line of section 10, T27N/R21E; then
</P>
<P>(15) Proceed straight west along the south boundary lines of sections 10 and 9 to the southeast corner of section 8, T27N/R21E; then
</P>
<P>(16) Proceed straight north along the east boundary line of section 8 to the northeast corner of section 8, T27N/R21E; then
</P>
<P>(17) Proceed straight west along the north boundary line of section 8 to the northwest corner of section 8, T27N/R21E; then
</P>
<P>(18) Proceed generally north along the east boundary line of section 6, crossing onto the Manson map, and continue along the east boundary lines of sections 31 and 30, to the northeast corner of section 30, T28N/R21E; then
</P>
<P>(19) Proceed straight east along the north boundary lines of sections 29 and 28 to the intersection with the east shoreline of Lake Chelan; and
</P>
<P>(20) Proceed generally northwest and northeast along the east shoreline of Lake Chelan to the point of beginning.
</P>
<CITA TYPE="N">[T.D. TTB-76, 74 FR 19415, Apr. 29, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 9.216" NODE="27:1.0.1.1.7.3.45.196" TYPE="SECTION">
<HEAD>§ 9.216   Upper Mississippi River Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Upper Mississippi River Valley”. For purposes of part 4 of this chapter, “Upper Mississippi River Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey topographic maps used to determine the boundary of the Upper Mississippi River Valley viticultural area are titled:
</P>
<P>(1) State of Minnesota, scale 1:500,000; compiled in 1963; edition of 1985;
</P>
<P>(2) State of Wisconsin, scale 1:500,000; compiled in 1966; edition of 1984;
</P>
<P>(3) State of Illinois, scale 1:500,000; compiled in 1970; edition of 1987;
</P>
<P>(4) State of Iowa, scale 1:500,000; compiled in 1965; edition of 1984;
</P>
<P>(5) Anamosa, Iowa, 1:100,000 scale; edited 1984; and
</P>
<P>(6) Marshalltown, Iowa, 1:100,000 scale; edited 1984.
</P>
<P>(c) <I>Boundary.</I> The Upper Mississippi River Valley viticultural area is located in portions of southeast Minnesota, southwest Wisconsin, northwest Illinois, and northeast Iowa. The boundary of the Upper Mississippi River Valley viticultural area is as described below:
</P>
<P>(1) The beginning point is on the State of Minnesota map at the intersection of Interstate Highways 94 and 494 (beltway), east of St. Paul at Oakbury in Washington County. From the beginning point, proceed east on Interstate 94, crossing over Lake St. Croix and onto the State of Wisconsin map at St. Croix County, and then continuing through Dunn County to Eau Claire County, to the intersection of Interstate Highway 94 with Wisconsin State Highway 85, southwest of the City of Eau Claire; then
</P>
<P>(2) Proceed northeast on Wisconsin State Highway 85 toward the City of Eau Claire to U.S. Highway 12; then
</P>
<P>(3) Proceed southeast on U.S. Highway 12 into Jackson County and passing through Clark County, to Interstate Highway 94 at Black River Falls; then
</P>
<P>(4) Proceed southeast on Interstate Highway 94 into Monroe County to Interstate Highway 90, east of the Fort McCoy Military Reservation; then
</P>
<P>(5) Proceed southeast on Interstate Highway 90 through Juneau, Sauk, Columbia, Dane, and Rock Counties, crossing onto the State of Illinois map at Winnebago County to U.S. Highway 20 at Cherry Valley; then
</P>
<P>(6) Proceed west on U.S. Highway 20 to Illinois State Highway 2, west of the Rock River; then
</P>
<P>(7) Proceed southwest on Illinois State Highway 2, passing through Ogle County and into Lee County, to Illinois State Highway 26 at Dixon; then
</P>
<P>(8) Proceed south on Illinois State Highway 26 to Illinois State Highway 5 (which has been redesignated as Interstate Highway 88 on contemporary maps of Illinois); then
</P>
<P>(9) Proceed southwest on Illinois State Highway 5 (Interstate Highway 88), passing through Whiteside County and into Rock Island County, to Interstate Highway 80 at Barstow; then
</P>
<P>(10) Proceed generally northwest on Interstate Highway 80, crossing the Mississippi River, onto the State of Iowa map at Scott County, and continuing west-northwest through Cedar County and into Johnson County to the intersection of Interstate Highways 80 and 380 at Tiffin; then
</P>
<P>(11) Proceed north-northwest on Interstate Highway 380 into Linn County and Cedar Rapids on the State of Iowa map. Then using the Anamosa map, followed by the Marshalltown map, follow Interstate Highway 380, labeled “Under Construction” on the Anamosa map, northwest through Benton and Buchanan Counties to Black Hawk County, to U.S. Highway 20, southeast of Waterloo and Raymond; then
</P>
<P>(12) Using the State of Iowa map, proceed west-northwest on U.S. Highway 20 to Waterloo and U.S. Highway 63; then
</P>
<P>(13) Proceed north on U.S. Highway 63 through Bremer, Chicksaw, and Howard Counties, skirting the Upper Iowa River at Chester, and crossing onto the State of Minnesota map at Fillmore County, to Minnesota State Highway 56; then
</P>
<P>(14) Proceed northwest and northerly on Minnesota State Highway 56 through Mower, Dodge, and Goodhue Counties to Dakota County, where it joins with State Highway 52 on commercial maps, to Interstate Highway 494 (beltway), south of St. Paul; then
</P>
<P>(15) Follow Interstate Highway 494 (beltway) northeast into Washington County, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-77, 74 FR 29400, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 9.217" NODE="27:1.0.1.1.7.3.45.197" TYPE="SECTION">
<HEAD>§ 9.217   Happy Canyon of Santa Barbara.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Happy Canyon of Santa Barbara”. For purposes of part 4 of this chapter, “Happy Canyon of Santa Barbara” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Happy Canyon of Santa Barbara viticultural area are titled:
</P>
<P>(1) Los Olivos, CA, 1995;
</P>
<P>(2) Figueroa Mountain, CA, 1995;
</P>
<P>(3) Lake Cachuma, CA, 1995; and
</P>
<P>(4) Santa Ynez, CA, 1995.
</P>
<P>(c) <I>Boundary.</I> The Happy Canyon of Santa Barbara viticultural area is located in Santa Barbara County, California. The boundary of the Happy Canyon of Santa Barbara viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Los Olivos map at the intersection of the Santa Lucia Ranger District diagonal line and Figueroa Mountain Road, a light-duty road, section 27, T8N, R30W. From the beginning point, proceed southeast along the Santa Lucia Ranger District diagonal line, crossing onto the Figueroa Mountain map, and continuing east to its intersection with the northwest corner of section 6, T7N, R29W; then
</P>
<P>(2) Proceed straight south along the R29W and R30W line, which is a boundary line of the Los Padres National Forest, to its intersection with the southwest corner of section 18 that coincides with one of the two 90-degree, southwest corners of the Los Padres National Forest, T7N, R29W; then
</P>
<P>(3) Proceed east, south, and then east, along the boundary line of the Los Padres National Forest, to its intersection with the boundary line of the Cañada de Los Pinos, or College Rancho Grant, at the northwest corner of section 28, T7N, R29W; then
</P>
<P>(4) Proceed straight south along the boundary line of the Cañada de Los Pinos, or College Rancho Grant, crossing onto the Lake Cachuma map, to its intersection with the 1,074-foot Bitt elevation point and the Lake Cachuma Recreation Area boundary line, section 17 east boundary line, T6N, R29W; then
</P>
<P>(5) Proceed generally southwest along the Lake Cachuma Recreation Area boundary line to its intersection with the Santa Ynez River to the west of Lake Cachuma and Bradbury Dam, T6N, R30W; then
</P>
<P>(6) Proceed generally west along the Santa Ynez River, crossing onto the Santa Ynez map, and continuing to its intersection with California State Road 154, northwest of BM 533, T6N, R30W; then
</P>
<P>(7) Proceed north-northwest in a straight line 1.2 miles to the marked 924-foot elevation point, T6N, R30W; then
</P>
<P>(8) Proceed north-northwest in a straight line 1.2 miles to the “Y” in an unimproved road 0.1 mile south of the 800-foot elevation line, west of Happy Canyon Road, T6N, R30W; then
</P>
<P>(9) Proceed north-northwest in a straight line for 0.5 mile, crossing onto the Los Olivos map, and continuing to the marked 1,324-foot elevation point, 0.5 mile southwest of Bar G O Ranch, T7N, R30W; then
</P>
<P>(10) Proceed north-northwest in a straight line for 2.5 miles crossing over the marked 1,432-foot elevation point in section 9, then continue in a straight line northerly 1.4 miles to the marked 1,721-foot elevation point in section 4, T7N, R30W; then
</P>
<P>(11) Proceed north in a straight line 1.4 miles to the marked 2,334-foot elevation point, west of a meandering unimproved road and south of Figueroa Mountain Road, T8N, R30W; then
</P>
<P>(12) Proceed east-northeast in a straight line, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-82, 74 FR 51776, Oct. 8, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 9.218" NODE="27:1.0.1.1.7.3.45.198" TYPE="SECTION">
<HEAD>§ 9.218   Sierra Pelona Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Sierra Pelona Valley”. For purposes of part 4 of this chapter, “Sierra Pelona Valley” and “Sierra Pelona” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Sierra Pelona Valley viticultural area are titled:
</P>
<P>(1) Agua Dulce, CA, 1995;
</P>
<P>(2) Sleepy Valley, CA, 1995; and
</P>
<P>(3) Ritter Ridge, Calif., 1958, Photorevised 1974.
</P>
<P>(c) <I>Boundary.</I> The Sierra Pelona Valley viticultural area is located in Los Angeles County, California. The boundary of the Sierra Pelona Valley viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Agua Dulce map at the intersection of the section 26 east boundary line, the pipeline, and Escondido Canyon Road, a secondary highway, T5N, R14W. From the beginning point, proceed in a straight line south 0.3 mile to the line's intersection with the northeast corner of the Vasquez Rocks County Park, T5N, R14W; then
</P>
<P>(2) Proceed southwest through section 26 along the straight lines and 90-degree turns of the county park boundary line to the line's intersection with the southeast corner of section 27, T5N, R14W; then
</P>
<P>(3) Proceed southwest in a straight line 0.4 mile to the line's intersection with BM 2258, section 34, T5N, R14W; then
</P>
<P>(4) Proceed west-northwest in a straight line 0.15 mile, crossing over the Agua Dulce Road, to the line's intersection with the 2,400-foot elevation line and an unimproved dirt road, section 34, T5N, R14W; then
</P>
<P>(5) Proceed generally west along the meandering 2,400-foot elevation line to the line's intersection with the section 34 west boundary line, T5N, R14W; then
</P>
<P>(6) Proceed north along the section 34 west boundary line 1 mile to the line's intersection with the 2,800-foot elevation line and the section 27 west boundary line; then
</P>
<P>(7) Proceed along the 2,800-foot elevation line first generally northeast, then northwest around Saddleback Mountain, and then north across a trail and an unimproved dirt road, to the line's intersection with the section 21 south boundary line, T5N, R14W; then
</P>
<P>(8) Proceed straight east along the section 21 south boundary line 0.25 mile to the southeast corner of section 21, T5N, R14W; then
</P>
<P>(9) Proceed north along the section 21 south boundary line onto the Sleepy Valley map 0.6 mile to the line's intersection with the 2,800-foot elevation line and the section 22 west boundary line, T5N, R14W; then
</P>
<P>(10) Proceed along the 2,800-foot elevation line generally northeast around the 3,166-foot and 3,036-foot pinnacles, then continue southwest to the line's intersection with the section 22 north boundary line, T5N, R14W; then
</P>
<P>(11) Proceed west along the section 22 north boundary line 0.2 mile to the line's intersection with the 2,600-foot elevation line, T5N, R14W; then
</P>
<P>(12) Proceed generally west-southwest along the 2,600-foot elevation line to the line's intersection with the section 21 west boundary line, T5N, R14W; then
</P>
<P>(13) Proceed north along the section 21 west boundary line 0.2 mile to the line's intersection with the 2,400-foot elevation line and the section 20 east boundary line, T5N, R14W; then
</P>
<P>(14) Proceed generally southwest along the 2,400-foot elevation line to the line's intersection with an unimproved dirt road in section 20, T5N, R14W; then
</P>
<P>(15) Proceed northwest along the unimproved dirt road 0.15 mile to its intersection with the Sierra Highway, a secondary highway, section 20, T5N, R14W; then
</P>
<P>(16) Proceed southwest along the Sierra Highway 0.15 mile to its intersection with an unnamed stream, section 20, T5N, R14W; then
</P>
<P>(17) Proceed in a straight line north-northwest approximately 0.3 mile to the line's intersection with the Angeles National Forest boundary line, an unnamed stream running through Rowher Canyon, and the section 17 south boundary line, T5N, R14W; then
</P>
<P>(18) Proceed straight east, north, and east, making 90-degree turns, along the Angeles National Forest boundary line to the line's intersection with the section 7 southwest corner, T5N, R13W; then
</P>
<P>(19) Proceed straight north along the Angeles National Forest boundary line and the section 7 west boundary line 0.5 mile to the line's intersection with the 3,400-foot elevation line, T5N, R13W; then
</P>
<P>(20) Proceed along the 3,400-foot elevation line generally east, north, then west to the line's intersection with the section 6 west boundary line, T5N, R13W; then
</P>
<P>(21) Proceed north along the section 6 west boundary line 0.4 mile to the line's intersection with the 3,400-foot elevation line, T5N, R13W; then
</P>
<P>(22) Proceed generally southeast along the 3,400-foot elevation line, crossing over Latteau, Willow Springs, and Hauser Canyons and continuing onto the Ritter Ridge map, to the line's intersection with an unimproved dirt road at Summit, section 16, T5N, R13W; then
</P>
<P>(23) Proceed south along the unnamed dirt road less than 0.1 mile, crossing the Sierra Highway, to its intersection with the 3,400-foot elevation line, section 16, T5N, R13W; then
</P>
<P>(24) Proceed generally southwest along the 3,400-foot elevation line, meandering between the Sleepy Valley and Ritter Ridge maps and then returning to the Sleepy Valley map, to the line's intersection with the section 20 north boundary line, T5N, R13W; then
</P>
<P>(25) Proceed in a straight line west along the section 20 north boundary line 0.2 mile to the line's intersection with the 3,200-foot elevation line, section 20, T5N, R13W; then
</P>
<P>(26) Proceed generally southwest along the 3,200-foot elevation line to the line's intersection with the section 19 west boundary line, T5N, R13W; then
</P>
<P>(27) Proceed in a straight line north along the section 19 west boundary line 0.15 mile to the line's intersection with a pipeline, T5N, R13W; and then
</P>
<P>(28) Proceed southwest onto the Agua Dulce map 1.25 miles along the pipeline, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-86, 75 FR 42604, July 22, 2010]


</CITA>
</DIV8>


<DIV8 N="§ 9.219" NODE="27:1.0.1.1.7.3.45.199" TYPE="SECTION">
<HEAD>§ 9.219   Antelope Valley of the California High Desert.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Antelope Valley of the California High Desert”. For purposes of part 4 of this chapter, “Antelope Valley of the California High Desert” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 20 United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Antelope Valley of the California High Desert viticultural area are titled:
</P>
<P>(1) Rosamond Quadrangle, California, 1973;
</P>
<P>(2) Rosamond Lake Quadrangle, California, 1973;
</P>
<P>(3) Redman Quadrangle, California, 1992;
</P>
<P>(4) Rogers Lake South Quadrangle, California, 1992;
</P>
<P>(5) Alpine Butte Quadrangle, California-Los Angeles Co., 1992;
</P>
<P>(6) Hi Vista Quadrangle, California-Los Angeles Co., 1957, revised 1992;
</P>
<P>(7) Lovejoy Buttes Quadrangle, California-Los Angeles Co., 1957, revised 1992;
</P>
<P>(8) El Mirage Quadrangle, California, 1956, revised 1992;
</P>
<P>(9) Littlerock Quadrangle, California-Los Angeles Co., 1957, revised 1992;
</P>
<P>(10) Palmdale Quadrangle, California-Los Angeles Co., 1958, photorevised 1974;
</P>
<P>(11) Ritter Ridge Quadrangle, California-Los Angeles Co., 1958, photorevised 1974;
</P>
<P>(12) Lancaster West Quadrangle, California-Los Angeles Co., 1958, photorevised 1974;
</P>
<P>(13) Del Sur Quadrangle, California-Los Angeles Co., 1995;
</P>
<P>(14) Lake Hughes Quadrangle, California-Los Angeles Co., 1995;
</P>
<P>(15) Fairmont Butte Quadrangle, California, 1995;
</P>
<P>(16) Neenach School Quadrangle, California, 1995;
</P>
<P>(17) Tylerhorse Canyon Quadrangle, California-Kern Co., 1995;
</P>
<P>(18) Willow Springs Quadrangle, California-Kern Co., 1965, photorevised 1974;
</P>
<P>(19) Little Buttes Quadrangle, California, 1965, photorevised 1974; and
</P>
<P>(20) Soledad Mtn. Quadrangle, California-Kern Co., 1973.
</P>
<P>(c) <I>Boundary.</I> The Antelope Valley of the California High Desert viticultural area is located in Los Angeles and Kern Counties, California. The boundary of the Antelope Valley of the California High Desert viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Rosamond map at the intersection of the Kern and Los Angeles Counties boundary line and the Edwards Air Force Base (AFB), boundary line, T8N, R12W. From the beginning point, proceed south along the Edwards AFB boundary line to West Avenue E, where the Edwards AFB boundary line turns east, section 22, T8N/R12W; then
</P>
<P>(2) Proceed generally east along the Edwards AFB boundary line, crossing over the Rosamond Lake and Redman maps, onto the Rogers Lake South map to the point where the Edwards AFB boundary line crosses the 2,500-foot elevation line along the northern boundary of section 30, T8N/R9W; then
</P>
<P>(3) Proceed generally south along the meandering 2,500-foot elevation line, crossing over the Redman and Alpine Butte maps, onto the Hi Vista map to the elevation line's intersection with Avenue J, section 17, T7N/R9W; then
</P>
<P>(4) Proceed straight east approximately 0.2 mile along Avenue J to the northeast corner of section 20, T7N/R9W, (intersection of Avenue J and 160th Street East); then
</P>
<P>(5) Proceed straight south along the eastern boundary lines of sections 20 and 29, T7N/R9W, to the northwestern corner of section 33, T7N, R9W; then
</P>
<P>(6) Proceed in a clockwise direction along the northern and eastern boundary lines of section 33, T7N/R9W, to the northwestern corner of section 3, T6N/R9W (intersection of Avenue M and 170th Street East); then
</P>
<P>(7) Proceed in a clockwise direction along the northern and eastern boundary lines of section 3, T6N/R9W, to the northwestern corner of section 11, T6N/R9W; then
</P>
<P>(8) Proceed in a clockwise direction along the northern and eastern boundary lines of section 11, T6N/R9W, crossing onto the Lovejoy Buttes map, to the northwestern corner of section 13, T6N/R9W; then
</P>
<P>(9) Proceed in a clockwise direction along the northern and eastern boundary lines of section 13 and then the eastern boundary line of section 24, T6N/R9W, to the northwestern corner of section 30, T6N/R8W (intersection of Avenue Q and 200th Street East); then
</P>
<P>(10) Proceed in a clockwise direction along the northern and eastern boundary lines of section 30, T6N/R8W, to the northwestern corner of section 32, T6N/R8W; then
</P>
<P>(11) Proceed east along the northern boundary of section 32 T6N/R8W, crossing onto the El Mirage map, and continue along the northern boundary of section 33, T6N/R8W, to elevation point 2916 (along Avenue R); then
</P>
<P>(12) Proceed due south in a straight line to the point where the 3,100-foot elevation line crosses the eastern boundary line of section 8, T5N/R8W; then
</P>
<P>(13) Proceed generally west-southwest along the meandering 3,100-foot elevation line, crossing over the Lovejoy Buttes map, onto the Littlerock map and continue to the elevation line's intersection with the California Aqueduct, approximately 0.2 mile south of Pearlblossom Highway, section 22, T5N/R10W; then
</P>
<P>(14) Proceed generally north and then northwest along the California Aqueduct, crossing over the Palmdale, Ritter Ridge, Lancaster West, Del Sur, Lake Hughes, and Fairmont Butte maps, onto the Neenach School map to the California Aqueduct's intersection with the Pacific Crest National Scenic Trail (adjacent to the Los Angeles Aqueduct) in section 16, T8N/R16W; then
</P>
<P>(15) Proceed north and then generally east and north along the Pacific Crest National Scenic Trail, crossing over the Fairmont Butte map, and continue onto the Tylerhorse Canyon map to the point where the Trail and the adjacent Los Angeles Aqueduct separate near elevation point 3120 and West Antelope Station in section 3, T9N/R15W; then
</P>
<P>(16) Proceed generally northeast along the Los Angeles Aqueduct crossing onto the Willow Springs map, to the Aqueduct's intersection with Tehachapi Willow Springs Road, section 7, T10N/R13W; then
</P>
<P>(17) Proceed generally south on Tehachapi Willow Springs Road, crossing onto the Little Buttes map, to the road's intersection with the 2,500-foot elevation line along the western boundary of section 17, T9N/R13W; then
</P>
<P>(18) Proceed generally east along the meandering 2,500-foot elevation line, crossing over the Willow Springs map and continuing onto the Soledad Mtn. map, where that elevation line crosses over and back three times from the Rosamond map, to the elevation line's intersection with the Edwards AFB boundary line, section 10, T9N/R12W; and then
</P>
<P>(19) Proceed straight south along the Edwards AFB boundary line, crossing over to the Rosamond map, and return to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-93, 76 FR 30007, May 24, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 9.220" NODE="27:1.0.1.1.7.3.45.200" TYPE="SECTION">
<HEAD>§ 9.220   Pine Mountain-Cloverdale Peak.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Pine Mountain-Cloverdale Peak”. For purposes of part 4 of this chapter, “Pine Mountain-Cloverdale Peak” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Pine Mountain-Cloverdale Peak viticultural area are titled:
</P>
<P>(1) Asti Quadrangle—California, 1998;
</P>
<P>(2) Cloverdale Quadrangle—California, 1960, photoinspected 1975; and
</P>
<P>(3) Highland Springs Quadrangle—California, 1959, photorevised 1978.
</P>
<P>(c) <I>Boundary.</I> The Pine Mountain-Cloverdale Peak viticultural area is located in Mendocino and Sonoma Counties, California. The boundary of the Pine Mountain-Cloverdale Peak viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Asti map at the intersection of Pine Mountain Road and the Sonoma-Mendocino County line, section 35, T12N, R10W. From the beginning point, proceed southwesterly on Pine Mountain Road to its intersection with a light duty road known locally as Green Road, section 33, T12N, R10W; then
</P>
<P>(2) Proceed northerly on Green Road approximately 500 feet to its first intersection with the 1,600-foot contour line, section 33, T12N, R10W; then
</P>
<P>(3) Proceed northwesterly along the meandering 1,600-foot contour line, crossing onto the Cloverdale map in section 32, T12N, R10W, and continue to the contour line's intersection with the eastern boundary line of section 31, T12N, R10W; then
</P>
<P>(4) Proceed straight north along the eastern boundary line of section 31, crossing the Sonoma-Mendocino line, to the boundary line's intersection with the 1,600-foot contour line on the west side of Section 29, T12N, R10W; then
</P>
<P>(5) Proceed northeasterly along the meandering 1,600-foot contour line to its intersection with the intermittent Ash Creek, section 29, T12N, R10W; then
</P>
<P>(6) Proceed northeasterly in a straight line, crossing onto the Asti map, to the unnamed 2,769-foot peak located south of Salty Spring Creek, section 20, T12N, R10W; then
</P>
<P>(7) Continue northeasterly in a straight line, crossing onto the Highland Springs map, to the unnamed 2,792-foot peak in the northeast quadrant of section 21, T12N, R10W; then
</P>
<P>(8) Proceed east-southeasterly in a straight line, crossing onto the Asti map, to the unnamed 2,198-foot peak in section 23, T12N, R10W; and then
</P>
<P>(9) Proceed south-southeasterly in a straight line, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-96, 76 FR 66637, Oct. 27, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 9.221" NODE="27:1.0.1.1.7.3.45.201" TYPE="SECTION">
<HEAD>§ 9.221   Fort Ross-Seaview.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Fort Ross-Seaview”. For purposes of part 4 of this chapter, “Fort Ross-Seaview” and “Ft. Ross-Seaview” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The five United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Fort Ross-Seaview viticultural area are titled—
</P>
<P>(1) Arched Rock, California-Sonoma Co., 1977 edition;
</P>
<P>(2) Fort Ross, California-Sonoma Co., 1978 edition;
</P>
<P>(3) Plantation, California-Sonoma Co., 1977 edition;
</P>
<P>(4) Annapolis, California-Sonoma Co., 1977 edition; and
</P>
<P>(5) Tombs Creek, California-Sonoma Co., 1978 edition.
</P>
<P>(c) <I>Boundary.</I> The Fort Ross-Seaview viticultural area is located in Sonoma County, California. The area's boundary is defined as follows:
</P>
<P>(1) The beginning point is on the Arched Rock map at the intersection of the 920-foot elevation line and Meyers Grade Road, T8N, R12W. From the beginning point, proceed northwest on Meyers Grade Road approximately 4.3 miles, on to the Fort Ross map, to the intersection of Meyers Grade Road with Seaview and Fort Ross Roads, T8N, R12W; then
</P>
<P>(2) Proceed northwest on Seaview Road approximately 6.4 miles, on to the Plantation map, to the intersection of Seaview Road with Kruse Ranch and Hauser Bridge Roads in the southeast corner of section 28, T9N, R13W; then
</P>
<P>(3) Proceed west on Kruse Ranch Road approximately 0.2 mile to the intersection of Kruse Ranch Road with the 920-foot elevation line, T9N, R13W; then
</P>
<P>(4) Proceed generally north then east along the 920-foot elevation line approximately 2.2 miles to the intersection of the elevation line with Hauser Bridge Road, section 27, T9N, R13W; then
</P>
<P>(5) Proceed east on Hauser Bridge Road approximately 1.5 miles to the intersection of Hauser Bridge Road with the 920-foot elevation line, section 23, T9N, R13W; then
</P>
<P>(6) Proceed generally northwest then east along the 920-foot elevation line, on to the Annapolis map, approximately 7.8 miles to the intersection of the elevation line with an unnamed, unimproved road that forks to the south from Tin Barn Road, section 8, T9N, R13W; then
</P>
<P>(7) Proceed east then north along the unnamed, unimproved road to the intersection of that road with Tin Barn Road, section 8, T9N, R13W; then
</P>
<P>(8) Proceed east in a straight line approximately 1.55 miles to Haupt Creek, section 10, T9N, R13W; then
</P>
<P>(9) Proceed generally southeast along Haupt Creek approximately 1.2 miles to the western boundary of section 11, T9N, R13W; then
</P>
<P>(10) Proceed straight north along the western boundary of section 11 approximately 0.9 mile to the northwest corner of section 11 (near Buck Spring), T9N, R13W; then
</P>
<P>(11) Proceed straight east along the northern boundary of section 11 and then along the northern boundary of section 12 approximately 1.1 miles to the intersection of the section 12 northern boundary with an unnamed, unimproved road along Skyline Ridge, section 12, T9N, R13W;
</P>
<P>(12) Proceed generally southeast along the unnamed, unimproved road, on to the Tombs Creek map, approximately 1.3 miles to the intersection of that road with the 1,200-foot elevation line, section 13, T9N, R13W; then
</P>
<P>(13) Proceed generally southeast along the 1,200-foot elevation line approximately 0.6 mile to the intersection of that elevation line with Allen Creek, section 18, T9N, R12W; then
</P>
<P>(14) Proceed generally north along Allen Creek approximately 0.2 mile to the intersection of Allen Creek with the 920-foot elevation line, section 18, T9N, R12W; then
</P>
<P>(15) Proceed generally east and then southeast along the meandering 920-foot elevation line, on to the Fort Ross map, to the intersection of that elevation line with Jim Creek, section 21, T9N, R12W; then
</P>
<P>(16) Proceed generally southeast along Jim Creek approximately 0.7 mile to the northern boundary of section 27, T9N, R12W; then
</P>
<P>(17) Proceed east along the northern boundary of section 27, T9N, R12W, to the northeast corner of section 27; then
</P>
<P>(18) Proceed south along the eastern boundaries of sections 27 and 34, T9N, R12W, and continue south along the eastern boundaries of sections 3, 10, 15, and 22, T8N, R12W, to Fort Ross Road; then
</P>
<P>(19) Proceed east along Fort Ross Road to the intersection of Fort Ross Road with the Middle Branch of Russian Gulch Creek, and then proceed south along that creek for approximately 1.2 miles to the intersection of that creek with the 920-foot elevation line, section 26, T8N, R12W; then
</P>
<P>(20) Proceed generally south along the meandering 920-foot elevation line approximately 8.1 miles, passing back and forth on the Fort Ross and Arched Rock maps as the 920-foot elevation line meanders north then south around the West Branch of Russian Gulch, returning to the beginning point, T8N, R12W.
</P>
<CITA TYPE="N">[T.D. TTB-98, 76 FR 77695, Dec. 14, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 9.222" NODE="27:1.0.1.1.7.3.45.202" TYPE="SECTION">
<HEAD>§ 9.222   Naches Heights.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Naches Heights”. For purposes of part 4 of this chapter, “Naches Heights” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The five United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Naches Heights viticultural area are titled:
</P>
<P>(1) Selah, Wash., 1958, photorevised 1985;
</P>
<P>(2) Yakima West, Wash., 1958, photorevised 1985;
</P>
<P>(3) Wiley City, Wash., 1958, photorevised 1985;
</P>
<P>(4) Naches, Wash., 1958, photorevised 1978; and
</P>
<P>(5) Tieton, Wash., 1971, photoinspected 1981.
</P>
<P>(c) <I>Boundary.</I> The Naches Heights viticultural area is located in Yakima County, Washington. The boundary of the Naches Heights viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Selah map at the intersection of the Burlington Northern single-track rail line and the Congdon (Schuler) Canal, section 9, T13N/R18E. From the beginning point, proceed south-southwesterly along the single rail line, onto the Yakima West map, approximately 0.35 mile to the first intersection of the rail line with an unnamed creek, locally known as Cowiche Creek, section 9, T13N/R18E; then
</P>
<P>(2) Proceed upstream (westerly) along Cowiche Creek, onto the Wiley City map and then onto the Naches map, approximately 6.25 miles to the confluence of the North and South Forks of Cowiche Creek, south of Mahoney Road, section 3, T13N/R17E; then
</P>
<P>(3) Proceed upstream (northwesterly) along the North Fork of Cowiche Creek approximately 1.6 miles to the intersection of the North Fork with Livengood Road, section 34, T14N/R17E; then
</P>
<P>(4) Proceed north and northwest on Livengood Road approximately 1.12 miles until the road turns west and joins Forney Road, and continue approximately 1.02 miles along Forney Road to the intersection of Forney Road with the North Fork of Cowiche Creek, section 28 northwest corner, T14N/R17E; then
</P>
<P>(5) Proceed upstream (northwesterly) along the North Fork of Cowiche Creek approximately 1.8 miles to the intersection of the North Fork with the section 17 west boundary line, T14N/R17E; then
</P>
<P>(6) Proceed straight north along the section 17 west boundary line to its intersection with Cox Road, and then continue north along Cox Road to the intersection of Cox Road with Rosenkranz Road, section 17 northwest corner, T14N/R17E; then
</P>
<P>(7) Proceed west on Rosenkranz Road, onto the Tieton map, approximately 0.6 mile to the intersection of Rosenkranz Road with North Tieton Road, section 7 south boundary line, T14N/R17E; then
</P>
<P>(8) Proceed north on North Tieton Road approximately 0.5 mile to the intersection of North Tieton Road with Dilley Road, section 7, T14N/R17E; then
</P>
<P>(9) Proceed west on Dilley Road approximately 0.5 mile to the intersection of Dilley Road with Franklin Road, section 7 west boundary line and the R16E and R17E common line, T14N; then
</P>
<P>(10) Proceed north on Franklin Road approximately 0.8 mile to the intersection of Franklin Road with Schenk Road and the section 6 west boundary line, T14N/R16E; then
</P>
<P>(11) Proceed west on Schenk Road approximately 0.55 mile to the intersection of Schenk Road with Section 1 Road, section 1, T14N/R16E; then
</P>
<P>(12) Proceed straight north from the intersection of Schenk Road and Section 1 Road approximately 2.2 miles to the 1,600-foot elevation line, section 36, T15N/R16E; then
</P>
<P>(13) Proceed easterly and then southeasterly along the 1,600-foot elevation line, onto the Naches map, approximately 7.5 miles to the intersection of the 1,600-foot elevation line with the section 26 north boundary line, T14N/R17E; then
</P>
<P>(14) Proceed straight east along the section 26 north boundary line approximately 0.25 mile to the intersection of the section 26 north boundary line with the 1,400-foot elevation line, T14N/R17E; then
</P>
<P>(15) Proceed southeasterly along the 1,400-foot elevation line approximately 2.5 miles to the intersection of the 1,400-foot elevation line with Young Grade Road, section 31, T14N/R18E; then
</P>
<P>(16) Proceed east in a straight line approximately 0.15 mile to the Congdon (Schuler) Canal, which closely parallels the 1,300-foot elevation line, section 31, T14N/R18E; and then
</P>
<P>(17) Proceed southeasterly along the Congdon (Schuler) Canal, onto the Selah map, approximately 3.25 miles, returning to the beginning point, section 9, T13N/R18E.
</P>
<CITA TYPE="N">[T.D. TTB-99, 76 FR 77699, Dec. 14, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 9.223" NODE="27:1.0.1.1.7.3.45.203" TYPE="SECTION">
<HEAD>§ 9.223   Coombsville.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Coombsville”. For purposes of part 4 of this chapter, “Coombsville” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Coombsville viticultural area are titled:
</P>
<P>(1) Mt. George Quadrangle, California, 1951, Photoinspected 1973; and
</P>
<P>(2) Napa Quadrangle, California-Napa Co., 1951, Photorevised 1980.
</P>
<P>(c) <I>Boundary.</I> The Coombsville viticultural area is located in Napa County, California. The boundary of the Coombsville viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Mt. George map at the 1,877-foot peak of Mt. George, section 29, T6N/R3W. From the beginning point, proceed southeast in a straight line for 0.4 mile to the intersection of the 1,400-foot elevation line and an unnamed intermittent creek that feeds northeast into Leonia Lakes, section 29, T6N/R3W; then
</P>
<P>(2) Proceed east-southeast in a straight line for 0.45 mile to the intersection of the 1,380-foot elevation line and an unnamed, unimproved dirt road, and then continue in the same straight line to the section 29 east boundary line, T6N/R3W; then
</P>
<P>(3) Proceed south-southeast in a straight line for 0.6 mile to the unnamed 1,804-foot elevation point in the northwest quadrant of section 33, T6N/R3W; then
</P>
<P>(4) Proceed south-southwest in a straight line for 1 mile, passing over the marked 1,775-foot elevation point, to the intersection of the T6N and T5N common line and the 1,600-foot elevation line; then
</P>
<P>(5) Proceed south-southeast in a straight line for 1.1 miles to the 1,480-foot elevation point along the section 9 north boundary line, T5N/R3W; then
</P>
<P>(6) Proceed south-southwest in a straight line for 1.3 miles to the 1,351-foot elevation point, section 16, T5N/R3W; then
</P>
<P>(7) Proceed south-southwest in a straight line for 1.5 miles to the intersection with two unimproved dirt roads and the 1,360-foot elevation line in Kreuse Canyon at the headwaters of the intermittent Kreuse Creek, northeast of Sugarloaf, section 20, T5N/R3W; then
</P>
<P>(8) Proceed northwest in a straight line for 1.95 miles to the 90-degree turn of Imola Avenue at the 136-foot elevation point, section 13, T5N/R4W; then
</P>
<P>(9) Proceed west along Imola Avenue for 2.1 miles, crossing from the Mt. George map onto the Napa map, to the intersection of Imola Avenue with the Napa River at the Maxwell Bridge, T5N/R4W; then
</P>
<P>(10) Proceed north (upstream) along the Napa River for 3.2 miles, crossing over the T6N/T5N common line, to the intersection of the Napa River with Milliken Creek, T6N/R4W; then
</P>
<P>(11) Proceed north (upstream) along Milliken Creek for 0.75 mile to the intersection of Milliken Creek with Monticello Road, T6N/R4W; then
</P>
<P>(12) Proceed northeast along Monticello Road for 2.4 miles, crossing from the Napa map onto the Mt. George map, to the intersection of Monticello Road with the section 19 west boundary line, T6N/R3W; and then
</P>
<P>(13) Proceed east-southeast in a straight line for 1.4 miles to the beginning point, section 29, T6N/R3W.
</P>
<CITA TYPE="N">[T.D. TTB-100, 76 FR 77684, Dec. 14, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 9.224" NODE="27:1.0.1.1.7.3.45.204" TYPE="SECTION">
<HEAD>§ 9.224   Wisconsin Ledge.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Wisconsin Ledge”. For purposes of part 4 of this chapter, “Wisconsin Ledge” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 11 United States Geological Survey 1:100,000 scale topographic maps used to determine the boundary of the Wisconsin Ledge viticultural area are titled:
</P>
<P>(1) Door County, Wisconsin, 1986;
</P>
<P>(2) Kewaunee County, Wisconsin, 1985;
</P>
<P>(3) Manitowoc County, Wisconsin, 1986;
</P>
<P>(4) Sheboygan County, Wisconsin, 1986;
</P>
<P>(5) Ozaukee County, Wisconsin, 1986;
</P>
<P>(6) Washington County, Wisconsin, 1986;
</P>
<P>(7) Dodge County, Wisconsin, 1986;
</P>
<P>(8) Fond du Lac County, Wisconsin, 1986;
</P>
<P>(9) Calumet County, Wisconsin, 1986;
</P>
<P>(10) Outagamie County, Wisconsin, 1985; and
</P>
<P>(11) Brown County, Wisconsin, 1984.
</P>
<P>(c) <I>Boundary.</I> The Wisconsin Ledge viticultural area is located in northeast Wisconsin in Door, Kewaunee, Manitowoc, Sheboygan, Ozaukee, Washington, Dodge, Fond du Lac, Calumet, Outagamie, and Brown Counties. The boundary of the Wisconsin Ledge viticultural area is as described below:
</P>
<P>(1) The beginning point is shown on the Door County map and is located at the northern end of the Door Peninsula at the point where the R28E and R29E common boundary line intersects with the Lake Michigan shoreline at Gills Rock in Hedgehog Harbor. From the beginning point, proceed easterly along the Lake Michigan shoreline to Northport and then continue southerly along the meandering shoreline, passing in succession over the Kewaunee, Manitowoc, and Sheboygan County maps and onto the Ozaukee County map to the intersection of the Lake Michigan shoreline with a line drawn as an easterly extension of County Highway T (locally known as Lakefield Road), east of Cedarburg; then
</P>
<P>(2) Proceed west on County Highway T through Cedarburg, crossing onto the Washington County map, passing over the North Western railroad single track, and continuing to the intersection of County Highway T with U.S. Route 45; then
</P>
<P>(3) Proceed north on U.S. Route 45 to the intersection of U.S. Route 45 with State Road 60, south of Hasmer Lake; then
</P>
<P>(4) Proceed westerly on State Road 60, crossing onto the Dodge County map, to the intersection of State Road 60 with State Road 26 at Casper Creek, north-northwest of Clyman Junction; then
</P>
<P>(5) Proceed northerly on State Road 26 to the intersection of State Road 26 with U.S. Route 151, north of Plum Creek in Chester Township; then
</P>
<P>(6) Proceed northerly on U.S. Route 151, passing through Waupun onto the Fond du Lac County map, and continue northeasterly into the City of Fond du Lac to the point where U.S. Route 151 turns east, and, from that point, continue north in a straight line to the south shore of Lake Winnebago in Lakeside Park; then
</P>
<P>(7) Proceed easterly along the southern shoreline of Lake Winnebago, then northerly along the eastern shoreline, crossing onto the Calumet County map, to the intersection of the shoreline with a line drawn as a southerly extension of County Highway N at Highland Beach in Harrison Township; then
</P>
<P>(8) Proceed north on County Highway N, crossing onto the Outagamie County map, to the intersection of County Highway N with the Fox River; then
</P>
<P>(9) Proceed northeasterly (downstream) along the Fox River, crossing onto the Brown County map, until the Fox River meets the southern shoreline of Green Bay; and then
</P>
<P>(10) Proceed northeasterly along the eastern shoreline of Green Bay, passing over the Kewaunee County map and onto the Door County map, to Sister Bay, where the eastern shoreline of Green Bay becomes the shoreline of Lake Michigan, and then continue northeasterly along the shoreline of Lake Michigan, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-102, 77 FR 16675, Mar. 22, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 9.225" NODE="27:1.0.1.1.7.3.45.205" TYPE="SECTION">
<HEAD>§ 9.225   Middleburg Virginia.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Middleburg Virginia”. For purposes of part 4 of this chapter, “Middleburg Virginia” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 14 United States Geological Survey (scale 1:24,000) topographic maps used to determine the boundary of the Middleburg Virginia viticultural area are titled:
</P>
<P>(1) Harpers Ferry Quadrangle, West Virginia-Virginia-Maryland, 1996;
</P>
<P>(2) Point of Rocks Quadrangle, Maryland-Virginia, 1970, photoinspected 1981;
</P>
<P>(3) Waterford Quadrangle, Virginia-Maryland, 1970, photorevised 1984;
</P>
<P>(4) Leesburg Quadrangle, Virginia-Maryland, 1994;
</P>
<P>(5) Lincoln Quadrangle, Virginia-Loudoun Co., 1970, photoinspected 1981;
</P>
<P>(6) Middleburg Quadrangle, Virginia, 1968, photorevised 1978, photoinspected 1981;
</P>
<P>(7) Rectortown Quadrangle, Virginia, 1970, photoinspected 1981;
</P>
<P>(8) Marshall Quadrangle, Virginia-Fauquier Co., 1970, photorevised 1983;
</P>
<P>(9) Orlean Quadrangle, Virginia, 1970, photorevised 1983;
</P>
<P>(10) Upperville Quadrangle, Virginia, 1970, photorevised 1983;
</P>
<P>(11) Linden Quadrangle, Virginia, 1994;
</P>
<P>(12) Ashby Gap Quadrangle, Virginia, 1970, photorevised 1978, photoinspected 1981;
</P>
<P>(13) Bluemont Quadrangle, Virginia, 1970, photorevised 1979; photoinspected 1981; and
</P>
<P>(14) Purcellville Quadrangle, Virginia-Loudoun Co., 1970, photorevised 1984.
</P>
<P>(c) <I>Boundary.</I> The Middleburg Virginia viticultural area is located in Loudoun and Fauquier Counties, Virginia. The boundary of the Middleburg Virginia viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Harpers Ferry map at the intersection of the easternmost boundary line of the Harpers Ferry National Historical Park and the south bank of the Potomac River in Loudoun County, Virginia. From the beginning point, follow the south bank of the Potomac River easterly (downstream) for approximately 8.2 miles, crossing onto the Point of Rocks map, to the mouth of Catoctin Creek; then
</P>
<P>(2) Proceed southwesterly (upstream) along the meandering Catoctin Creek for approximately 4 miles to State Route 663 (locally known as Taylorstown Road) at Taylorstown; then
</P>
<P>(3) Proceed easterly on State Route 663 for approximately 0.1 mile to State Route 665 (locally known as Loyalty Road) in Taylorstown; then
</P>
<P>(4) Proceed southerly on State Route 665 for approximately 5.4 miles, crossing onto the Waterford map, to State Route 662 on the south side of Waterford; then
</P>
<P>(5) Proceed southerly on State Route 662 for approximately 2.5 miles to State Route 9 (locally known as Charles Town Pike) near Paeonian Springs; then
</P>
<P>(6) Proceed southerly on State Route 9 (Charles Town Pike) for approximately 0.7 mile, crossing over State Route 7 (locally known as Harry Byrd Highway), to State Business Route 7 (locally known as E. Colonial Highway); then
</P>
<P>(7) Proceed westerly on State Business Route 7 (E. Colonial Highway) for approximately 0.4 mile to the continuation of State Route 662 (locally known as Canby Road); then
</P>
<P>(8) Proceed southerly on State Route 662 (Canby Road) for approximately 0.75 miles to an unnamed, unimproved road near the marked 701-foot elevation; then
</P>
<P>(9) Proceed southeasterly in a straight line for approximately 0.4 miles, crossing onto the Leesburg map, to the northern terminus of an unnamed light-duty road known locally as Gore Lane; then
</P>
<P>(10) Proceed southerly along Gore Lane for approximately 0.7 miles to State Route 820; then
</P>
<P>(11) Proceed southwesterly along State Route 820 for approximately 0.68 miles, crossing onto the Lincoln map, to State Route 622 (Canby Road); then
</P>
<P>(12) Proceed southwesterly on State Route 622 (Canby Road) for approximately 2 miles to the intersection with State Route 729; then
</P>
<P>(13) Proceed southwesterly on State Route 729 for approximately 2.8 miles to the State Route 729 bridge at North Fork Creek; then
</P>
<P>(14) Proceed southeasterly (downstream) along the meandering North Fork Creek for approximately 4 miles to the confluence of North Fork Creek with Goose Creek; then
</P>
<P>(15) Proceed southwesterly (upstream) along the meandering Goose Creek for approximately 5.6 miles to State Route 734 at Carters Bridge; then
</P>
<P>(16) Proceed southeasterly on State Route 734 for approximately 2.4 miles, crossing onto the Middleburg map, to State Route 629; then
</P>
<P>(17) Proceed southerly on State Route 629 for approximately 1 mile to the road's intersection with U.S. Route 50 at Benchmark (BM) 341 at Dover, then continue in a straight line due south for approximately 150 feet to the Little River; then
</P>
<P>(18) Proceed southwesterly (upstream) along the meandering Little River for approximately 8 miles to the State Route 626 bridge at Halfway; then
</P>
<P>(19) Proceed northwesterly on State Route 626 for approximately 0.3 mile to State Route 706, and then continue northwesterly on State Route 706 for approximately 1.6 miles, crossing onto the Rectortown map, to Burnt Mill Run; then
</P>
<P>(20) Proceed west-southwesterly (upstream) along Burnt Mill Run for approximately 0.4 mile to State Route 705; then
</P>
<P>(21) Proceed south-southwesterly on State Route 705 for approximately 0.5 mile to State Route 715; then
</P>
<P>(22) Proceed west-northwesterly on State Route 715 for approximately 0.4 mile to State Route 709 at Zulla; then
</P>
<P>(23) Proceed south-southwesterly on State Route 709 for approximately 4.6 miles, crossing onto the Marshall map, to Interstate Highway 66 (0.6 mile south of Brookes Corner); then
</P>
<P>(24) Proceed west-northwesterly on Interstate Highway 66 for approximately 4.0 miles, crossing onto the Orlean map, to State Route 732 (locally known as Ramey Road); then
</P>
<P>(25) Proceed westerly on State Route 732 approximately 2 miles to State Route 731 (locally known as Ashville Road) near Ashville; then
</P>
<P>(26) Proceed northwesterly in a straight line, crossing onto the Upperville map, to the marked 1,304-foot peak on Little Cobbler Mountain, then northerly in a straight line to the marked 1,117-foot peak on Little Cobbler Mountain, and then continue northerly in a straight line to the marked 771-foot peak near the northern end of Little Cobbler Mountain; then
</P>
<P>(27) Proceed west in a straight line for approximately 2.7 miles to the 595-foot elevation point on State Route 724, southeast of Markham, and continue west in a straight line for approximately 3.1 miles, crossing onto the Linden map, to State Route 726 and an unnamed side road (near a cemetery), approximately 0.7 mile southwest of the intersection of State Route 726 and State Route 55 (near Belle Meade); then
</P>
<P>(28) Proceed northeasterly along State Route 726 for approximately 0.7 mile to State Route 55; then
</P>
<P>(29) Proceed east-northeast in a straight line for approximately 1.7 miles to State Route 688 at BM 629 in Wildcat Hollow; then
</P>
<P>(30) Proceed northerly and then northeasterly on State Route 688 for approximately 5.5 miles, crossing over and back between the Linden and Upperville maps and then continuing on the Upperville map, to U.S. Route 17; then
</P>
<P>(31) Proceed northerly on U.S. Route 17 for approximately 2.0 miles, crossing onto the Ashby Gap map, to U.S. Route 50 (just east of Paris); then
</P>
<P>(32) Proceed east-northeasterly in a straight line for approximately 1.5 miles to the marked 797-foot elevation point located along State Route 618 at a fork in the road approximately 0.65 miles north of U.S. Route 50; then
</P>
<P>(33) Proceed southeasterly in a straight line for approximately 0.9 mile to U.S. Route 50 at BM 625, which is located at a bridge over an unnamed branch of Panther Skin Creek; then
</P>
<P>(34) Proceed south-southeasterly in a straight line for approximately 2.9 miles, crossing onto the Upperville map, to the intersection of State Routes 712 and 710 at Kerfoot; then
</P>
<P>(35) Proceed southeasterly on State Route 710 for approximately 2.5 miles, crossing onto the Rectortown map, to the State Route 710 bridge over Goose Creek; then
</P>
<P>(36) Proceed northeasterly (downstream) along the meandering Goose Creek for approximately 10.9 miles to State Route 626 at Bentons Bridge; then
</P>
<P>(37) Proceed northwesterly on State Route 626 for approximately 4.0 miles, crossing onto the Bluemont map, to State Route 630 at Unison; then
</P>
<P>(38) Proceed northeasterly on State Route 630 for approximately 0.75 mile to Dog Branch; then
</P>
<P>(39) Proceed northwesterly along Dog Branch for approximately 1.75 miles to State Route 719; then
</P>
<P>(40) Proceed north-northeasterly on State Route 719 for approximately 2 miles to State Route 734 at Airmont; then
</P>
<P>(41) Proceed east-southeasterly on State Route 734 for approximately 0.7 mile to State Route 735; then
</P>
<P>(42) Proceed northeasterly on State Route 735 for approximately 2 miles to State Route 725; then
</P>
<P>(43) Proceed north-northeasterly in a straight line for approximately 4.4 miles, crossing over the northwest corner of the Lincoln map and then onto the Purcellville map, to the intersection of State Routes 711 and 690, (northwest of Purcellville); then
</P>
<P>(44) Proceed north-northeasterly on State Route 690 for approximately 3.1 miles to State Route 9, then proceed east on State Route 9 for approximately 0.2 mile to the continuation of State Route 690, then proceed northerly on State Route 690 for approximately 5.3 miles, crossing onto the Harpers Ferry map, to the road's intersection with the 600-foot elevation line immediately south of the road's marked 592-foot elevation point (located 0.75 mile east-northeast of the radio facilities at the 1,424-foot peak of Short Hill Mountain); then
</P>
<P>(45) Proceed northerly along the 600-foot elevation line for approximately 4 miles to the Harpers Ferry National Historical Park south boundary line; then
</P>
<P>(46) Proceed east and north approximately 0.75 mile along the Harpers Ferry National Historical Park boundary line, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-106, 77 FR 56548, Sept. 13, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 9.226" NODE="27:1.0.1.1.7.3.45.206" TYPE="SECTION">
<HEAD>§ 9.226   Inwood Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Inwood Valley”. For purposes of part 4 of this chapter, “Inwood Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The five United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Inwood Valley viticultural area are titled:
</P>
<P>(1) Clough Gulch, California—Shasta County, Provisional edition 1985;
</P>
<P>(2) Inwood, California—Shasta County, Provisional edition 1985;
</P>
<P>(3) Hagaman Gulch, California—Shasta County, Provisional edition 1985;
</P>
<P>(4) Shingletown, California—Shasta County, Provisional edition 1985; and
</P>
<P>(5) Tuscan Buttes NE., California, 1965, Photoinspected 1976.
</P>
<P>(c) <I>Boundary.</I> The Inwood Valley viticultural area is located in Shasta County, California. The boundary of the Inwood Valley viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Clough Gulch map at BM (Benchmark) 1254.4 located along State Route 44 in T31N/R2W. From the beginning point, proceed east-northeasterly in a straight line approximately 4.1 miles, onto the Inwood map, to the 1,786-foot elevation point, section 17, T31N/R1W; then
</P>
<P>(2) Proceed east-northeasterly in a straight line approximately 2.1 miles to the 2,086-foot elevation point, section 15, T31N/R1W; then
</P>
<P>(3) Proceed north-northeasterly in a straight line approximately 0.7 mile to the marked 1,648-foot elevation point (which should be marked as 2,648 feet based on its two adjacent elevation lines) on Bear Creek Ridge, section 10, T31N/R1W; then
</P>
<P>(4) Proceed east-northeasterly in a straight line approximately 0.8 mile to the 2,952-foot elevation point (located between two transmission lines), section 11, T31N/R1W; then
</P>
<P>(5) Proceed east-northeasterly in a straight line approximately 1.2 miles to the 3,042-foot summit of Blue Mountain, section 1, T31N/R1W; then
</P>
<P>(6) Proceed easterly in a straight line approximately 0.7 mile, crossing over the R1W/R1E “Mt. Diablo Meridian” line, to the 3,104-foot elevation point, section 6, T31N/R1E; then
</P>
<P>(7) Proceed east-northeasterly in a straight line approximately 2.2 miles to the summit of Alamine Peak, section 32, T32N/R1E; then
</P>
<P>(8) Proceed southeasterly in a straight line approximately 2.1 miles, onto the Hagaman Gulch map, to Bear Pen Springs, section 10, T31N/R1E; then
</P>
<P>(9) Proceed west-southwesterly in a straight line approximately 0.8 mile to the 3,373-foot summit of Chalk Mountain, section 9, T31N/R1E; then
</P>
<P>(10) Proceed south-southwesterly in a straight line approximately 1 mile, returning to the Inwood map, to 2,756-foot elevation point, section 17, T31N/R1E; then
</P>
<P>(11) Proceed south in a straight line approximately 0.6 mile to the intersection of that line with an improved road marked “Private” at the southern boundary of section 17, T31N/R1E; then
</P>
<P>(12) Proceed south-southwesterly along that “Private” road approximately 1.6 miles to the marked gate of the “Private” road at the road's intersection with unnamed improved and unimproved roads, section 29, T31N/R1E; then
</P>
<P>(13) Proceed southwesterly in a straight line approximately 1.6 miles, onto the Shingletown map, to the intersection of that line with State Route 44 and an unnamed improved road (known locally as Ash Creek Road), section 31, T31N/R1E; then
</P>
<P>(14) Proceed southwesterly in a straight line approximately 0.2 miles to the 3,334-foot elevation point, section 31, T31N/R1E; then
</P>
<P>(15) Proceed southwesterly in a straight line approximately 1.5 miles, crossing over the R1W/R1E “Mt. Diablo Meridian” line, to the 3,029-foot elevation point on Shingletown Ridge, section 1, T30N/R1W; then
</P>
<P>(16) Proceed westerly in a straight line approximately 1.6 miles to the 2,435-foot elevation point, section 3, T30N/R1W; then
</P>
<P>(17) Proceed west-southwesterly in a straight line approximately 1.7 miles to the 2,065-foot elevation point (southeast of a marked Borrow Pit), section 8, T30N/R1W; then
</P>
<P>(18) Proceed west-northwesterly in a straight line approximately 5.2 miles, onto the Tuscan Buttes NE map, to the 956-foot elevation point near an unnamed spring in section 33, T31N/R2W; then
</P>
<P>(19) Proceed north in a straight line approximately 1.7 miles, onto the Clough Gulch map, to BM 1048.1 on State Route 44, section 28, T31N/R2W; then
</P>
<P>(20) Proceed east along State Route 44 approximately 1.1 miles, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-107, 77 FR 56544, Sept. 13, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 9.227" NODE="27:1.0.1.1.7.3.45.207" TYPE="SECTION">
<HEAD>§ 9.227   Ancient Lakes of Columbia Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Ancient Lakes of Columbia Valley”. For purposes of part 4 of this chapter, “Ancient Lakes of Columbia Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 12 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Ancient Lakes of Columbia Valley viticultural area are titled:
</P>
<P>(1) West Bar, Washington, 1966;
</P>
<P>(2) Rock Island Dam, Washington, 1966;
</P>
<P>(3) Appledale, Washington, 1966, photoinspected 1976;
</P>
<P>(4) Monument Hill, Washington—Grant County, 1966;
</P>
<P>(5) Ephrata SW., Washington—Grant County, 1956;
</P>
<P>(6) Winchester, Washington—Grant County, 1966;
</P>
<P>(7) Winchester SW., Washington—Grant County, 1966, photorevised 1978;
</P>
<P>(8) Royal City, Washington—Grant County, provisional edition 1986 (formerly named Smyrna);
</P>
<P>(9) Beverly NE., Washington—Grant County, 1965;
</P>
<P>(10) Vantage, Washington, 1965, photorevised 1978;
</P>
<P>(11) Ginkgo, Washington, 1953, photorevised 1978; and
</P>
<P>(12) Cape Horn SE., Washington, 1966, photoinspected 1975.
</P>
<P>(c) <I>Boundary.</I> The Ancient Lakes of Columbia Valley viticultural area is located in Douglas, Grant, and Kittitas Counties in central Washington. The boundary of the Ancient Lakes of Columbia Valley viticultural area is as described below:
</P>
<P>(1) The beginning point is on the West Bar map where the western shoreline of the Columbia River in Kittitas County intersects with the north boundary line of section 8, T20N/R22E. Proceed east along the section boundaries for approximately 4.35 miles, over the Columbia River and into Douglas County, to the intersection of the line with the Grant and Douglas Counties common boundary line (concurrent with the R22E and R23E common line) at the northwest corner of section 12, T20N/R22E; then
</P>
<P>(2) Proceed north along the Grant and Douglas Counties common boundary line for approximately 2.25 miles, onto the Rock Island Dam map, to the northwest corner of section 31, T21N/R23E; then
</P>
<P>(3) Proceed east in a straight line along the section boundaries for approximately 12.1 miles, over the Appledale and Monument Hills maps, onto the Ephrata SW map to the intersection of the line with the R24E and R25E common line at the northwest corner of section 36, T21N/R24E; then
</P>
<P>(4) Proceed south along the R24E and R25E common line for approximately 22.5 miles, over the Winchester and Winchester SW maps, onto the Royal City map, passing over the West Canal and into the Frenchman Hills, to the southwest corner of section 12, T17N/R24E (concurrent with the intersection of the R24E and R25E common line and a single transmission line); then
</P>
<P>(5) Proceed west in a straight line along the section boundaries (marked for 3 sections by the single transmission line) for approximately 4 miles, onto the Beverly NE map, to the southwest corner of section 9, T17N/R24E; then
</P>
<P>(6) Proceed north in a straight line along the section boundary for approximately 1 mile to the northwest corner of section 9, T17N/R24E; then
</P>
<P>(7) Proceed west in a straight line along the section boundaries for approximately 7.9 miles, onto the Vantage map, crossing over Interstate Route 90 and Columbia River, to the western shoreline of the Columbia River, at Hole in the Wall in Kittitas County, section 6, T17N/R23E; and then
</P>
<P>(8) Proceed north along the western shoreline of the meandering Columbia River for approximately 23.3 miles, crossing over the Ginkgo and Cape Horn SE maps, and onto the West Bar map, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-108, 77 FR 64035, Oct. 18, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 9.228" NODE="27:1.0.1.1.7.3.45.208" TYPE="SECTION">
<HEAD>§ 9.228   Indiana Uplands.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Indiana Uplands”. For purposes of part 4 of this chapter, “Indiana Uplands” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey 1:100,000-scale metric topographic maps used to determine the boundary of the Indiana Uplands viticultural area are titled:
</P>
<P>(1) Tell City, Indiana—Kentucky, 1991;
</P>
<P>(2) Jasper, Indiana—Kentucky, 1994;
</P>
<P>(3) Bedford, Indiana, 1990;
</P>
<P>(4) Bloomington, Indiana, 1986; Photoinspected 1988;
</P>
<P>(5) Madison, Indiana—Kentucky, 1990; and
</P>
<P>(6) Louisville, Kentucky—Indiana, 1986.
</P>
<P>(c) <I>Boundary.</I> The Indiana Uplands viticultural area is located in south-central Indiana. The boundary of the Indiana Uplands viticultural area is described as follows:
</P>
<P>(1) The beginning point is on the Tell City map at the confluence of the Anderson River and the Ohio River near Troy in Perry County. From the beginning point, proceed north-northwesterly in a straight line, crossing to the Jasper map, to the intersection of State Roads 62 and 162, approximately 3.5 miles north of Santa Claus; then
</P>
<P>(2) Proceed north on State Road 162 to its intersection with U.S. Route 231 in Jasper; then
</P>
<P>(3) Proceed north on U.S. Route 231, crossing to the Bedford map and the Bloomington map, to the intersection of U.S. Route 231 with the 180-meter contour line in Bloomfield, approximately 0.3 mile south of State Road 54; then
</P>
<P>(4) From the west side of U.S. Route 231, proceed northerly along the meandering 180-meter contour line, and, after crossing the Owen-Greene county boundary line, continue northeasterly along the contour line to its intersection with the Monroe-Owen county boundary line approximately 1 mile south of the confluence of Big Creek and the White River; then
</P>
<P>(5) Proceed north, then northeasterly, and then south along the Monroe-Owen county boundary line to its intersection with the 200-meter contour line, approximately 0.3 mile south of the White River; then
</P>
<P>(6) Proceed easterly along the meandering 200-meter contour line to its intersection with State Road 135, south of Morgantown and approximately 0.8 mile north of the Morgan-Brown county boundary line; then
</P>
<P>(7) Proceed south on State Road 135 to the Morgan-Brown county boundary line; then
</P>
<P>(8) Proceed east along the Brown-Morgan country boundary line and then Brown-Johnson county boundary line to its intersection with the Brown-Bartholomew county boundary line; then
</P>
<P>(9) Proceed south-southeasterly in a straight line to the intersection of State Road 46 and a road locally known as N. County Club Road, approximately 1 mile north of Harrison Lake in western Bartholomew County; then
</P>
<P>(10) Proceed south-southwesterly in a straight line to the intersection of State Road 58 and the Bartholomew-Jackson county boundary line; then
</P>
<P>(11) Proceed east along the Bartholomew-Jackson county boundary line for approximately 0.4 mile to the county boundary line's first intersection with the meandering 200-meter contour line after crossing Buck Creek in northwestern Jackson County; then
</P>
<P>(12) Proceed easterly then southwesterly along the meandering 200-meter contour line, crossing to the Bedford map, to the intersection of the contour line with U.S. Route 50; then
</P>
<P>(13) Proceed east on U.S. Route 50 to its intersection with State Road 235; then
</P>
<P>(14) Proceed south on State Road 235 to its intersection with the railroad tracks in Medora; then
</P>
<P>(15) Proceed southwesterly along the railroad tracks to a point next to the intersection of two roads locally known as Sparksville Pike Road and Sparks Ferry Road (approximately 0.5 miles east Sparksville) and then proceed southeasterly less than 250 feet on Sparks Ferry Road to that road's bridge over the East Fork of the White River; then
</P>
<P>(16) Proceed easterly along the East Fork of the White River and then the Muscatatuck River to the State Road 135 bridge over the Muscatatuck River at Millport; then
</P>
<P>(17) Proceed easterly in a straight line to the confluence of the Cammie Thomas Ditch and the Muscatatuck River, located on the northern boundary of Washington County; then
</P>
<P>(18) Proceed southeasterly in a straight line, crossing to the Madison map, to the intersection of two roads locally known as E. Pull Tight Road and N. Pumpkin Center East Road at Pumpkin Center in Gibson Township, Washington County; then
</P>
<P>(19) Proceed due south in a straight line for approximately 4.5 miles to the line's intersection with a road locally known as E. Old State Road 56; then
</P>
<P>(20) Proceed easterly and then northeasterly on E. Old State Road 56 to its intersection with a road locally known in Scott County as S. Bloomington Trail, and then continue southeasterly on S. Bloomington Trail to its intersection with a road locally known as W. Leota Road at Leota; then
</P>
<P>(21) Proceed southeasterly in a straight line to the intersection of Interstate 65 and the Scott-Clark counties boundary line at Underwood; then
</P>
<P>(22) Proceed south-southwesterly in a straight line, crossing to the Louisville map, to the intersection of State Road 60 and a road locally known as Carwood Road at Carwood in Clark County; then
</P>
<P>(23) Proceed southeasterly on State Road 60 to its intersection with State Road 111 at Bennettsville; then
</P>
<P>(24) Proceed southerly on State Road 111 for approximately 1.8 miles to its intersection with a road locally known as W. St. Joe Road at St. Joseph; then
</P>
<P>(25) Proceed south-southwesterly in a straight line to the 266-meter elevation point on Bald Knob, then continue south-southwesterly in a straight line to the 276-meter elevation point on Lost Knob; then
</P>
<P>(26) Proceed southerly in a straight line to the confluence of French Creek and the Ohio River in eastern Franklin Township, Floyd County; then
</P>
<P>(27) Proceed (downstream) along the Indiana shoreline of the Ohio River, crossing back and forth between the Tell City and Jasper maps, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-110, 78 FR 8021, Feb. 5, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 9.229" NODE="27:1.0.1.1.7.3.45.209" TYPE="SECTION">
<HEAD>§ 9.229   Elkton Oregon.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Elkton Oregon”. “Elkton OR” may also be used as the name of the viticultural area described in this section. For purposes of part 4 of this chapter, “Elkton Oregon” and “Elkton OR” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The five United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Elkton Oregon viticultural area are titled:
</P>
<P>(1) Kellogg Quadrangle, Oregon-Douglas Co., Provisional Edition 1990;
</P>
<P>(2) Old Blue Quadrangle, Oregon-Douglas Co., Provisional Edition 1990;
</P>
<P>(3) Devils Graveyard Quadrangle, Oregon-Douglas Co., Provisional Edition 1990;
</P>
<P>(4) Elkton Quadrangle, Oregon-Douglas Co., Provisional Edition 1990; and
</P>
<P>(5) Yellow Butte, Oregon-Douglas Co., Provisional Edition 1987.
</P>
<P>(c) <I>Boundary.</I> The Elkton Oregon viticultural area is located in Douglas County, Oregon. The boundary of the Elkton Oregon viticultural area is described as follows:
</P>
<P>(1) The beginning point is on the Kellogg map at the intersection of the T23S/T24S and R7W/R8W common lines. From the beginning point, proceed northwest in a straight line, crossing onto the Old Blue map, to the eastern-most intersection of the T22S/T23S and R8W/R9W common lines; then
</P>
<P>(2) Proceed north along the R8W/R9W common line onto the Devils Graveyard map, across the Umpqua River, to the intersection of the R8W/R9W common line with the 1,000-foot elevation line along the western boundary of section 30, T21S/R8W; then
</P>
<P>(3) Proceed generally east along the meandering 1,000-elevation line, crossing over Patterson Creek, Weatherly Creek headwaters, Cedar Creek, and House Creek; continue following the 1,000-foot elevation line onto the Elkton map, back to the Devils Graveyard map, returning to the Elkton map, and then continuing generally east and southeast across Paradise Creek and Little Tom Folley Creek, to the intersection of the 1,000-foot elevation line with an unnamed, improved road in the southeast quadrant of section 4, T22S/R7W; then
</P>
<P>(4) Proceed south-southwest along the unnamed, improved road to the intersection of that road with an unimproved logging road, approximately 1.65 miles due north of the Mile 5 marker on Elk Creek, section 9, T22S/R7W; then
</P>
<P>(5) Proceed southeast in a straight line, passing through the southeast corner of section 9, T22S/R7W, to Elk Creek, section 15, T22S/R7W; then
</P>
<P>(6) Proceed generally southeast (downstream) along Elk Creek to the State Route 38 bridge at BM 172, section 15, T22S/R7W; then
</P>
<P>(7) Proceed south in a straight line to the intersection of the 1,000-foot elevation line and the section 22 south boundary line, T22S/R7W; then
</P>
<P>(8) Proceed generally south, west, and then north along the meandering 1,000-foot elevation line, crossing first onto the Kellogg map, then crossing back and forth between the Kellogg map and the Yellow Butte map, returning to the Yellow Butte map to the intersection of the 1,000-foot elevation line with the R7W/R6W common line on Bell Ridge, along the section 1 east boundary line, T23S/R7W; then
</P>
<P>(9) Proceed southeast in a straight line to the intersection of the line with the 1,000-foot elevation line and an unnamed, unimproved road, section 7, T23S/R6W; then
</P>
<P>(10) Proceed south and west along the meandering 1,000-foot elevation, crossing back and forth between the Kellogg and Yellow Butte maps, and finally returning to the Kellogg map, to the intersection of the 1,000-foot elevation line with the T23S/T24S common line along the section 3 north boundary line, T24S/R7W; and then
</P>
<P>(11) Proceed west along the T23S/T24S common line to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-111, 78 FR 8018, Feb. 5, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 9.230" NODE="27:1.0.1.1.7.3.45.210" TYPE="SECTION">
<HEAD>§ 9.230   Ballard Canyon.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Ballard Canyon”. For purposes of part 4 of this chapter, “Ballard Canyon” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Ballard Canyon viticultural area are titled:
</P>
<P>(1) Los Olivos, CA, 1995;
</P>
<P>(2) Zaca Creek, Calif., 1959; and
</P>
<P>(3) Solvang, CA, 1995.
</P>
<P>(c) <I>Boundary.</I> The Ballard Canyon viticultural area is located in Santa Barbara County, California. The boundary of the Ballard Canyon viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Los Olivos map at the intersection of State Route 154 and Foxen Canyon Road, section 23, T7N/R31W.
</P>
<P>(2) From the beginning point, proceed southwesterly in a straight line approximately 0.3 mile, crossing onto the Zaca Creek map, to the intersection of Ballard Canyon Road and an unnamed, unimproved road known locally as Los Olivos Meadows Drive, T7N/R31W; then
</P>
<P>(3) Proceed south-southeasterly in a straight line approximately 1 mile, crossing onto the Los Olivos map, to a marked, unnamed large structure located within a circular-shaped 920-foot contour line in the southwest corner of section 26, T7N/R31W; then
</P>
<P>(4) Proceed south-southwesterly in a straight line approximately 1.25 miles, crossing onto the Zaca Creek map, to the marked “Ball” 801-foot elevation control point, T6N/R31W; then
</P>
<P>(5) Proceed south-southwesterly in a straight line approximately 1.45 miles, crossing onto the Solvang map, to a marked, unnamed 775-foot peak, T6N/R31W; then
</P>
<P>(6) Proceed south-southwesterly in a straight line approximately 0.55 mile to a marked communication tower located within the 760-foot contour line, T6N/R31W; then
</P>
<P>(7) Proceed west-southwesterly in a straight line approximately 0.25 mile to the intersection of Chalk Hill Road and an unnamed, light-duty road known locally as Mesa Vista Lane, T6N/R31W; then
</P>
<P>(8) Proceed west-southwesterly in a straight line approximately 0.6 mile to the southern-most terminus of a marked, unnamed stream known locally as Ballard Creek, T6N/R31W; then
</P>
<P>(9) Proceed northerly (upstream) along Ballard Creek approximately 0.35 mile to the creek's intersection with the 400-foot contour line, T6N/R31W; then
</P>
<P>(10) Proceed southerly and then northwesterly along the 400-foot contour line approximately 1.5 miles, to the contour line's first intersection with Ballard Canyon Road, T6N/R31W; then
</P>
<P>(11) Proceed north-northeasterly in a straight line approximately 1.7 miles, crossing onto the Zaca Creek map, to the western-most intersection of the 800-foot contour line and the T6N/T7N boundary line (approximately 0.9 mile east of U.S Highway 101); then
</P>
<P>(12) Proceed west along the T6N/T7N boundary line approximately 0.4 mile to the boundary line's third intersection with the 600-foot contour line (approximately 0.5 mile east of U.S. Highway 101); then
</P>
<P>(13) Proceed northerly along the meandering 600-foot elevation contour line to the contour line's intersection with Zaca Creek, T7N/R31W; then
</P>
<P>(14) Proceed northeasterly in a straight line for approximately 1.2 miles to the western-most intersection of the southern boundary of the Corral de Quati Land Grant and the 1,000-foot contour line (approximately 0.4 mile east of U.S. Highway 101), T7N/R31W; then
</P>
<P>(15) Proceed easterly along the meandering 1,000-foot contour line approximately 1.5 miles to the contour line's third intersection with the southern boundary of the Corral de Quati Land Grant (approximately 0.1 mile west of State Route 154), section 22, T7N/R31W; then
</P>
<P>(16) Proceed southeasterly in a straight line approximately 0.8 mile, crossing onto the Los Olivos map, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-116, 78 FR 60695, Oct. 2, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 9.231" NODE="27:1.0.1.1.7.3.45.211" TYPE="SECTION">
<HEAD>§ 9.231   Moon Mountain District Sonoma County.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Moon Mountain District Sonoma County”. For purposes of part 4 of this chapter, “Moon Mountain District Sonoma County” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Moon Mountain District Sonoma County viticultural area are titled:
</P>
<P>(1) Rutherford, CA, 1951; photorevised 1968;
</P>
<P>(2) Sonoma, CA, 1951; photorevised 1980
</P>
<P>(3) Glen Ellen, CA, 1954; photorevised 1980; and
</P>
<P>(4) Kenwood, CA, 1954; photorevised 1980.
</P>
<P>(c) <I>Boundary.</I> The Moon Mountain District Sonoma County viticultural area is located in Sonoma County, California. The boundary of the Moon Mountain District Sonoma County viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Rutherford map at the 2,188-foot elevation point located on the Sonoma-Napa County boundary line in section 26, T7N/R6W. From the beginning point, proceed southerly along the meandering Sonoma-Napa County boundary line, crossing onto the Sonoma map, to the intersection of the county line and Lovall Valley Road, Huichica Land Grant; then
</P>
<P>(2) Continue along the Sonoma-Napa County boundary line approximately 0.2 mile to the intersection of the county line and the end of an unnamed light-duty road; then
</P>
<P>(3) Proceed southwesterly in a straight line approximately 1.2 miles, passing through the marked 692-foot peak, to the intersection of the line with an unnamed light-duty road known locally as Thornsberry Road; then
</P>
<P>(4) Proceed north-northwesterly in a straight line approximately 1 mile to the intersection of two unnamed light-duty roads known locally as Castle Road and Bartholomew Road (marked by the 218-foot elevation point); then
</P>
<P>(5) Proceed west in a straight line approximately 1.4 miles, passing through the southern-most quarry marked on Schocken Hill, to the intersection of the line with the 400-foot elevation line, Pueblo Lands of Sonoma; then
</P>
<P>(6) Proceed northwesterly along the meandering 400-foot elevation line for approximately 7.4 miles, crossing onto the Glen Ellen map and then the Kenwood map, to the intersection of the contour line with Nelligan Road, near the mouth of Nunns Canyon, T6N/R6W; then
</P>
<P>(7) Proceed northerly on Nelligan Road approximately 0.6 mile to the intersection of the road with the 600-foot elevation line; then
</P>
<P>(8) Proceed northwest along the 600-foot elevation line approximately 1.8 miles to its second intersection with a marked trail (near a marked quarry and approximately 0.2 mile southeasterly of a marked 973-foot peak), Los Guilicos Land Grant; then
</P>
<P>(9) Proceed east-northeasterly in a straight line approximately 0.8 miles to the marked 1,483-foot peak; then
</P>
<P>(10) Proceed east-southeasterly in a straight line approximately 1.5 miles, crossing onto the Rutherford map, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-117, 78 FR 60692, Oct. 2, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 9.232" NODE="27:1.0.1.1.7.3.45.212" TYPE="SECTION">
<HEAD>§ 9.232   Big Valley District-Lake County.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Big Valley District-Lake County”. For purposes of part 4 of this chapter, “Big Valley District-Lake County” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Big Valley District-Lake County viticultural area are titled:
</P>
<P>(1) Lucerne, CA, 1996;
</P>
<P>(2) Kelseyville, CA, 1993;
</P>
<P>(3) Highland Springs, CA, 1993; and
</P>
<P>(4) Lakeport, CA, 1958; photorevised 1978; minor revision 1994.
</P>
<P>(c) <I>Boundary.</I> The Big Valley District-Lake County viticultural area is located in Lake County, California. The boundary of the Big Valley District-Lake County viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Lucerne map at the point where Cole Creek flows into Clear Lake, section 36, T14N/R9W. From the beginning point, proceed southerly (upstream) along Cole Creek approximately 0.9 mile to the creek's intersection with Soda Bay Road, section 1, T13N/R9W; then
</P>
<P>(2) Proceed east on Soda Bay Road less than 0.1 mile to the road's intersection with the unnamed, light-duty road known locally as Clark Drive, section 1, T13N/R09W; then
</P>
<P>(3) Proceed southeast in a straight line less than 0.1 mile to the 1,400-foot elevation line, section 1, T13N/R9W; then
</P>
<P>(4) Proceed southerly along the 1,400-foot elevation line, crossing onto the Kelseyville map, to the line's intersection with a marked cemetery east of Kelseyville (in the northeast quadrant of section 14, T13N/R9W), and then continue along the 1,400-foot elevation line approximately 0.35 mile to the line's intersection with an unnamed, unimproved road which runs north from Konocti Road, section 13, T13N/R9W; then
</P>
<P>(5) Proceed south-southeast along the unnamed, unimproved road to the road's intersection with the improved portion of Konocti Road, section 13, T13N/R9W; then
</P>
<P>(6) Proceed west on Konocti Road approximately 0.9 mile to the road's intersection with an unnamed, light-duty road within Kelseyville known locally as Main Street, section 14, T13N/R9W; then
</P>
<P>(7) Proceed south-southeast on Main Street approximately 0.35 mile to its intersection with State Highway 29/175, section 14, T13N/R9W; then
</P>
<P>(8) Proceed west-northwest on State Highway 29/175 approximately 0.4 mile to the highway's intersection with Kelsey Creek, section 14, T13N/R9W; then
</P>
<P>(9) Proceed northwesterly (downstream) along Kelsey Creek approximately 0.5 mile to the creek's intersection with an unnamed, light-duty road known locally as Big Valley Road (or North Main Street), section 15, T13N/R9W; then
</P>
<P>(10) Proceed west and then northwest on Big Valley Road approximately 0.35 mile to the road's intersection with Merritt Road, southern boundary of section 10, T13N/R9W; then
</P>
<P>(11) Proceed west on Merritt Road approximately 0.3 mile to the road's intersection with the 1,400-foot elevation line, southern boundary of section 10, T13N/R9W; then
</P>
<P>(12) Proceed northwesterly along the 1,400-foot elevation line to the line's intersection with State Highway 29/175, section 9, T13N/R9W, and then continue southerly along the 1,400-foot elevation to the line's intersection with Merritt Road, southern boundary of section 9, T13N/R9W; then
</P>
<P>(13) Proceed west on Merritt Road approximately 0.1 mile to the road's intersection with Hill Creek, southern boundary of section 9, T13N/R9W; then
</P>
<P>(14) Proceed southerly (upstream) along Hill Creek approximately 0.9 mile to the creek's intersection with Bell Hill Road, section 16, T13N/R9W; then
</P>
<P>(15) Proceed west then southwest on Bell Hill Road approximately 0.15 mile, passing the intersection of Bell Hill Road and Hummel Lane, to Bell Hill Road's intersection with the 1,400-foot elevation line, section 16, T13N/R9W; then
</P>
<P>(16) Proceed westerly and then southwesterly along the meandering 1,400-foot elevation line, crossing onto the Highland Springs map, to the line's first intersection with Bell Hill Road in section 20, T13N/R9W; then
</P>
<P>(17) Proceed west on the meandering Bell Hill Road, crossing Adobe Creek, to the road's intersection with Highland Springs Road, section 30, T13N/R9W; then
</P>
<P>(18) Proceed north on Highland Springs Road approximately 2.8 miles to the road's intersection with Mathews Road at the northwest corner of section 8, T13N/R9W; then
</P>
<P>(19) Proceed west on Mathews Road approximately 0.7 mile to the road's intersection with an unnamed paved road known locally as Ackley Road, southern boundary of section 6, T13N/R9W; then
</P>
<P>(20) Proceed north on Ackley Road approximately 0.9 mile, crossing onto the Lakeport map, to the road's intersection with State Highway 29/175, section 6; T13N/R9W; then
</P>
<P>(21) Proceed due north-northeast in a straight line approximately 0.15 mile to the unnamed secondary highway known locally as Soda Bay Road, northern boundary of section 6, T13N/R9W; then
</P>
<P>(22) Proceed east on Soda Bay Road approximately 0.35 mile to the road's intersection with Manning Creek, northern boundary of section 6, T13N/R9W; then
</P>
<P>(23) Proceed northwesterly (downstream) along Manning Creek to the shore of Clear Lake, section 30, T14N/R9W; then
</P>
<P>(24) Proceed easterly along the meandering shore of Clear Lake, crossing onto the Lucerne map, to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-118, 78 FR 60688, Oct. 2, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 9.233" NODE="27:1.0.1.1.7.3.45.213" TYPE="SECTION">
<HEAD>§ 9.233   Kelsey Bench-Lake County.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Kelsey Bench-Lake County”. For purposes of part 4 of this chapter, “Kelsey Bench-Lake County,” “Kelsey Bench,” and “Kelseyville Bench” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Kelsey Bench-Lake County viticultural area are titled:
</P>
<P>(1) Kelseyville, CA, 1993; and
</P>
<P>(2) Highland Springs, CA, 1993.
</P>
<P>(c) <I>Boundary.</I> The Kelsey Bench-Lake County viticultural area is located in Lake County, California. The boundary of the Kelsey Bench-Lake County viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Kelseyville map within the town of Kelseyville at the intersection of Konocti Road and Main Street (not named on the map), section 14, T13N/R9W. From the beginning point, proceed east on Konocti Road approximately 0.9 mile to the road's 3-way intersection with an unnamed, unimproved road to the south, section 13, T13N/R9W; then
</P>
<P>(2) Proceed south on the unnamed, unimproved road approximately 0.35 mile to a fork in the road, and continue on the eastern branch of the fork approximately 0.4 mile to the point where the road intersects a straight line drawn westward from the marked 2,493-foot elevation point in section 19, T13N/R9W, to the intersection of the 1,600-foot elevation line and the eastern boundary of section 23, T13N/R9W (which is concurrent with Wilkerson Road); then
</P>
<P>(3) Proceed westerly along the straight line described in paragraph (c)(2) approximately 0.3 mile to the line's western end at the intersection of the 1,600-foot elevation line and the eastern boundary of section 23, T13N/R9W; then
</P>
<P>(4) Proceed south along the eastern boundaries of sections 23 and 26, T13N/R9W, approximately 0.8 mile to the first intersection of the eastern boundary of section 26 and the 1,720-foot elevation line; then
</P>
<P>(5) Proceed southeasterly along the 1,720-foot elevation line to the line's intersection with State Highway 29/175, just west of BM 1758, section 25, T13N/R9W; then
</P>
<P>(6) Proceed west on State Highway 29/175 approximately 0.15 mile to the highway's intersection with an unnamed, unimproved road, section 25, T13N/R9W; then
</P>
<P>(7) Proceed southwest then west on the unnamed, unimproved road approximately 0.4 mile to the road's intersection with Cole Creek Road at Bottle Rock Road, section 25, T13N/R9W; then
</P>
<P>(8) Proceed west on Cole Creek Road approximately 0.65 mile to the road's intersection with an unnamed, light-duty road known locally as Live Oak Drive (at BM 1625), section 26, T13N/R9W; then
</P>
<P>(9) Proceed northwest on Live Oak Drive to the road's intersection with Gross Road (at BM 1423), section 26, T13N/R9W; then
</P>
<P>(10) Proceed south on Gross Road approximately 0.65 mile to the road's intersection with the 1,600-foot elevation line, section 26, T13N/R9W; then
</P>
<P>(11) Proceed southerly along the meandering 1,600-foot elevation line to the line's intersection with Sweetwater Creek section 10, T12N/R9W; then
</P>
<P>(12) Proceed due west in a straight line approximately 0.6 mile to the line's first intersection with the 1,600-foot elevation after crossing Kelsey Creek, section 10, T12N/R9W; then
</P>
<P>(13) Proceed westerly and then northerly along the meandering 1,600-foot elevation line to the line's intersection with Kelsey Creek Drive, section 4, T12N/R9W; then
</P>
<P>(14) Proceed west on Kelsey Creek Drive and then Adobe Creek Drive, crossing onto the Highland Springs map, and continue north-northwest on Adobe Creek Drive, a total distance of approximately 3.25 miles, to the marked 1,439-foot elevation point in section 29, T13N/R9W; then
</P>
<P>(15) Proceed west-southwest in a straight line that passes through the marked 1,559-foot elevation point in section 29, T13N/R9W, and continue in the same direction to the line's intersection with an unnamed, light-duty road known locally as East Highland Springs Road, a total distance of approximately 0.6 mile, section 30, T13N, R9W; then
</P>
<P>(16) Proceed north on East Highland Springs Road approximately 0.5 mile, to the road's intersection with an unnamed road in the northeast quadrant of section 30, T13N/R9W; then
</P>
<P>(17) Proceed northwest on the unnamed road to the road's end point, then continue due north-northwest in a straight line, a total distance of approximately 0.3 mile, to the line's intersection with the southern boundary of section 19, T13N/R9W; then
</P>
<P>(18) Proceed west along the southern boundary of section 19, T13N/R9W, approximately 0.5 mile to the section's southwest corner; then
</P>
<P>(19) Proceed north along the western boundary of section 19, T13N/R9W, approximately 0.3 mile to the section line's seventh intersection with the 1,600-foot elevation line; then
</P>
<P>(20) Proceed westerly, northwesterly, and then easterly along the meandering 1,600-foot elevation line to the line's second intersection with the northern boundary of section 19, T13N/R9W; then
</P>
<P>(21) Proceed east along the northern boundary of section 19, T13N/R9W, approximately 0.35 mile to the section boundary's intersection with an unnamed road known locally as Fritch Road; then
</P>
<P>(22) Proceed east on Fritch Road approximately 0.4 mile to the road's intersection with Highland Springs Road, section 18, T13N/R9W; then
</P>
<P>(23) Proceed south on Highland Springs Road approximately 0.8 mile to the road's intersection with Bell Hill Road, section 19, T13N/R9W; then
</P>
<P>(24) Proceed eastward on the meandering Bell Hill Road approximately 1.4 miles to the road's last intersection with the 1,400-foot elevation line in section 20, T13N/R9W; then
</P>
<P>(25) Proceed northeasterly along the 1,400-foot elevation line, crossing onto the Kelseyville map, to the line's first intersection with Bell Hill Road in the southeast quadrant of section 16, T13N/R9W; then
</P>
<P>(26) Proceed northeast and then east on Bell Hill Road approximately 0.15 mile to the road's intersection with Hill Creek, section 16, T13N/R9W; then
</P>
<P>(27) Proceed northerly (downstream) along Hill Creek approximately 0.9 mile to the creek's intersection with Merritt Road, section 16, T13N/R9W; then
</P>
<P>(28) Proceed east on Merritt Road approximately 0.1 mile to the road's intersection with the 1,400-foot elevation line, northern boundary of section 16, T13N/R9W; then
</P>
<P>(29) Proceed northerly along the 1,400-foot elevation line approximately 0.2 mile to State Highway 29/175, section 9, T13N/R9W, and then continue northerly and then southeasterly along the 1,400-foot elevation line approximately 0.5 mile to the line's intersection with Merritt Road, northern boundary of section 15, T13N/R9W; then
</P>
<P>(30) Proceed east on Merritt Road approximately 0.3 mile to the road's intersection with an unnamed road known locally as Big Valley Road (or North Main Street), northern boundary of section 15, T13N/R9W; then
</P>
<P>(31) Proceed south then east on Big Valley Road (North Main Street) approximately 0.35 mile to the road's intersection with Kelsey Creek, section 15, T13N/R9W; then
</P>
<P>(32) Proceed southerly (upstream) along Kelsey Creek approximately 0.5 mile to the creek's intersection with State Highway 29/175, section 14, T13N/R9W; then
</P>
<P>(33) Proceed southeast on State Highway 29/175 approximately 0.4 mile, crossing Live Oak Drive, to the highway's intersection with an unnamed road known locally as Main Street, section 14, T13N/R9W; then
</P>
<P>(34) Proceed north on Main Street approximately 0.3 mile, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-118, 78 FR 60689, Oct. 2, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 9.234" NODE="27:1.0.1.1.7.3.45.214" TYPE="SECTION">
<HEAD>§ 9.234   Upper Hiwassee Highlands.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Upper Hiwassee Highlands”. For purposes of part 4 of this chapter, “Upper Hiwassee Highlands” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 24 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Upper Hiwassee Highlands viticultural area are titled:
</P>
<P>(1) Unaka, NC/TN, 1957; photorevised 1978;
</P>
<P>(2) McDaniel Bald, NC/TN, 1957; photoinspected 1976;
</P>
<P>(3) Marble, NC, 1938; photorevised 1990;
</P>
<P>(4) Andrews, NC, 1938; photorevised 1990;
</P>
<P>(5) Topton, NC, 1957; photoinspected 1976;
</P>
<P>(6) Peachtree, NC, 1937; photorevised 1973;
</P>
<P>(7) Hayesville, NC, 1966; photorevised 1978; photoinspected 1987;
</P>
<P>(8) Shooting Creek, NC, 1957; photorevised 1990;
</P>
<P>(9) Rainbow Springs, NC, 1957; photorevised 1978;
</P>
<P>(10) Macedonia, GA/NC, 1988;
</P>
<P>(11) Hightower Bald, GA/NC, 1988;
</P>
<P>(12) Tray Mountain, GA, 1957; photorevised 1985;
</P>
<P>(13) Jacks Gap, GA, 1988;
</P>
<P>(14) Hiawassee, GA/NC, 1988;
</P>
<P>(15) Blairsville, GA/NC, 1988;
</P>
<P>(16) Cowrock, GA, 1988;
</P>
<P>(17) Coosa Bald, GA, 1988;
</P>
<P>(18) Neels Gap, GA, 1988;
</P>
<P>(19) Mulky Gap, GA, 1965;
</P>
<P>(20) Wilscot, GA, 1947;
</P>
<P>(21) Nottely Dam, GA/NC, 1988;
</P>
<P>(22) Culberson, NC/GA, 1988;
</P>
<P>(23) Persimmon Creek, NC, 1957; photorevised 1978; and
</P>
<P>(24) Isabella, TN/NC, 1957; photorevised 1978.
</P>
<P>(c) <I>Boundary.</I> The Upper Hiwassee Highlands viticultural area is located in Cherokee and Clay Counties, North Carolina, and Towns, Union, and Fannin Counties, Georgia. The boundary of the Upper Hiwassee Highlands viticultural area is as described below:
</P>
<P>(1) The beginning point is in Cherokee County, North Carolina, on the Unaka map at the intersection of the northwestern end of the Hiwassee Dam and an unnamed light-duty road known locally as Hiwassee Dam Access Road.
</P>
<P>(2) From the beginning point, proceed northwesterly on Hiwassee Dam Access Road approximately 4.2 miles to the road's intersection with an unnamed light-duty road known locally as Joe Brown Highway; then
</P>
<P>(3) Proceed northeasterly on Joe Brown Highway approximately 1.4 miles to the highway's intersection with an unnamed light-duty road known locally as Burrell Mountain Road; then
</P>
<P>(4) Proceed east-northeasterly along a straight line (drawn from the intersection of Joe Brown Highway and Burrell Mountain Road to the peak of Bird Knob) to the point where the line intersects the 2,400-foot elevation line west of Bird Knob; then
</P>
<P>(5) Proceed initially southerly and then easterly along the meandering 2,400-foot elevation line and continue to follow the elevation line in an overall clockwise direction through Cherokee and Clay Counties, North Carolina, and then Towns and Union Counties, Georgia, crossing over as necessary the McDaniel Bald, Marble, Andrews, Topton, Peachtree, Hayesville, Shooting Creek, Rainbow Springs, Macedonia, Hightower Bald, Tray Mountain, Jacks Gap, Hiwassee, Blairsville, Cowrock, Coosa Bald, Neels Gap, and Mulky Gap maps and ending on the Wilscot map, at the intersection of the 2,400-foot elevation line with the Union-Fannin County boundary line at Skeenah Gap; then
</P>
<P>(6) Proceed northerly along the meandering Union-Fannin County boundary line, crossing over the Mulky Gap and Nottely Dam maps and onto the Culberson map, to the summit of High Top Mountain; then
</P>
<P>(7) Proceed northwesterly in a straight line approximately one mile to the intersection of two unnamed light-duty roads known locally as Cutcane Road and Mt. Herman Road, near Mt. Herman Church; then
</P>
<P>(8) Proceed northwesterly on Mt. Herman Road approximately one mile to the road's intersection with State Spur 60 (Murphy Highway); then
</P>
<P>(9) Proceed southwesterly on State Spur 60 (Murphy Highway) approximately 2 miles to the road's intersection with an unnamed light-duty road known locally as Knollwood Road; then
</P>
<P>(10) Proceed northwesterly in a straight line approximately 1.75 miles to the summit of Watson Mountain; then
</P>
<P>(11) Proceed northeasterly in a straight line approximately 2.15 miles, crossing onto the Persimmon Creek map, to the line's intersection with the wagon and jeep track at the southernmost summit of Vance Mountain in Cherokee County, North Carolina; then
</P>
<P>(12) Proceed north-northwesterly along the wagon and jeep track approximately 0.8 mile to the track's intersection with a marked foot trail near the 2,200-foot elevation line on the northern spur of Vance Mountain; then
</P>
<P>(13) Proceed north-northwesterly along the foot trail approximately 0.5 mile to the trail's intersection with an unnamed road known locally as Wallace Road, and then continue north-northwesterly along Wallace Road approximately 0.4 mile to the road's intersection with U.S. Highway 64 near Hothouse; then
</P>
<P>(14) Proceed westerly along U.S. Highway 64 approximately one mile to the highway's intersection with a marked northerly foot trail at Nealy Gap; then
</P>
<P>(15) Proceed northerly along the marked foot trail, briefly crossing to and from the Isabella map, to the foot trail's intersection with an unnamed unimproved road, and then continue northerly on the unimproved road to its intersection with a second unnamed unimproved road known locally as Charles Laney Road, a total approximate distance of 0.75 mile; then
</P>
<P>(16) Proceed northwesterly on the unnamed unimproved road known locally as Charles Laney Road, crossing onto the Isabella map, to the road's end, and then continue north-northwesterly on a marked foot trail to the trail's intersection with a wagon and jeep track at Wolfpen Gap, a total approximate distance of one mile; then
</P>
<P>(17) Proceed easterly and then northeasterly along the wagon and jeep trail, crossing onto the Persimmon Creek map, to the 3,284-foot benchmark (MLB 1514) on Payne Mountain, then continue northeasterly on the wagon and jeep trail (which is partially marked as a foot trail) along the ridge line of Payne Mountain to the peak of Harris Top, then continue north-northeasterly on the wagon and jeep trail to the peak of Beaver Top, a total approximate distance of 2.75 miles; then
</P>
<P>(18) Proceed northeasterly approximately 0.25 mile on the wagon and jeep trail to the point where the trail turns sharply to the southeast at a summit within the 2,480-foot elevation line on the western shoulder of Indian Grave Gap; then
</P>
<P>(19) Proceed north in a straight line approximately 0.95 mile to the summit of Candy Mountain, and then continue north-northwest in a straight line approximately 0.45 mile to the line's intersection with an unnamed light-duty road known locally as Candy Mountain Road; then
</P>
<P>(20) Proceed east-northeasterly on Candy Mountain Road approximately 0.8 mile to the 1,740-foot benchmark (BM HR 116); then
</P>
<P>(21) Proceed northerly in a straight line approximately 1.2 miles to the southernmost peak of Ghormley Mountain (within the 2,440-foot elevation line); then
</P>
<P>(22) Proceed north-northeast in a straight line approximately 1.3 miles to the intersection of an unnamed light-duty road known locally as Lower Bear Paw Road and an unnamed unimproved road just south of Reids Chapel (the chapel is shown along the southern edge of the Unaka map); then
</P>
<P>(23) Proceed northerly on Lower Bear Paw Road approximately 0.35 mile, crossing onto the Unaka map, to the road's intersection with an unnamed light-duty road known locally as Hiwassee Dam Access Road; then
</P>
<P>(24) Proceed easterly and then northerly along Hiwassee Dam Access Road approximately 2.9 miles, returning to the beginning point at the northwestern end of Hiwassee Dam.
</P>
<CITA TYPE="N">[T.D. TTB-120, 79 FR 41893, July 18, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.235" NODE="27:1.0.1.1.7.3.45.215" TYPE="SECTION">
<HEAD>§ 9.235   Malibu Coast.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Malibu Coast.” For purposes of part 4 of this chapter, “Malibu Coast” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 10 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Malibu Coast viticultural area are titled:
</P>
<P>(1) Canoga Park, Calif., 1953; photorevised 1967;
</P>
<P>(2) Topanga, CA, 1991;
</P>
<P>(3) Malibu Beach, CA, 1995;
</P>
<P>(4) Point Dume, CA, 1995;
</P>
<P>(5) Triunfo Pass, CA, 1994;
</P>
<P>(6) Point Mugu, Calif., 1949; photorevised 1967; photoinspected 1974;
</P>
<P>(7) Carmarillo, Calif., 1950; photorevised 1967;
</P>
<P>(8) Newbury Park, Calif., 1950; photorevised 1967;
</P>
<P>(9) Thousand Oaks, Calif., 1950; photorevised 1981; and
</P>
<P>(10) Calabasas, Calif., 1952; photorevised 1967.
</P>
<P>(c) <I>Boundary.</I> The Malibu Coast viticultural area is located in portions of Los Angeles County and Ventura County, in California. The boundary of the Malibu Coast viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Canoga Park map beside Mulholland Drive at the 1,126-foot benchmark (BM 1126), located on the marked Los Angeles city boundary line and the northern boundary line of section 24, T1N/R17W. From the beginning point, proceed east-southeasterly along the Los Angeles city boundary line approximately 3.25 miles to the marked 1,718-foot elevation point; then
</P>
<P>(2) Proceed south-southwesterly along the Los Angeles city boundary line approximately 4.35 miles, crossing onto the Topanga map, to the northeast corner of section 19, T1S/R16W; then
</P>
<P>(3) Proceed east-southeasterly along the Los Angeles city boundary line approximately 1.7 miles to the point east of Topanga Canyon where the city boundary line turns south, and then continue southerly along the city boundary line approximately 1.9 miles to the boundary line's intersection with State Route 1 (the Pacific Coast Highway); then
</P>
<P>(4) Proceed westerly on State Route 1, crossing onto the Malibu Beach map and then the Point Dume map, to the road's intersection with the unnamed intermittent creek located within Walnut Canyon (near the Zuma Fire Station); then
</P>
<P>(5) Proceed southeasterly (downstream) along the unnamed intermittent creek located within Walnut Canyon to the Pacific Ocean shoreline; then
</P>
<P>(6) Proceed southwesterly along the Pacific Ocean shoreline approximately 1.5 miles to Point Dume and then continue northwesterly along the Pacific Ocean shoreline approximately 1.3 miles to the mouth of an unnamed intermittent stream; then
</P>
<P>(7) Proceed northeasterly along the unnamed intermittent stream (upstream) approximately 0.35 mile to the stream's intersection with State Route 1 (at BM 30); then
</P>
<P>(8) Proceed westerly on State Route 1 approximately 17.4 miles, crossing onto the Triunfo Pass map and then the Point Mugu map, to the road's intersection with an unnamed light-duty road known locally as Calleguas Creek Road; then
</P>
<P>(9) Proceed north-northeasterly approximately 1.2 miles on Calleguas Creek Road, crossing onto the Camarillo map, to the road's intersection with an unnamed, unimproved road known locally as Caryl Drive; then
</P>
<P>(10) Encircle an unnamed 350-foot hill by proceeding westerly on Caryl Drive approximately 0.2 mile to the road's intersection with an unnamed, unimproved road, then continuing on that unnamed, unimproved road around the hill in a clock-wise direction for approximately 0.8 mile until the road intersects again with Caryl Drive; then
</P>
<P>(11) Proceed easterly on Caryl Drive approximately 0.55 mile to the road's intersection with an unnamed, unimproved road at Broome Ranch; then
</P>
<P>(12) Proceed easterly on the unnamed, unimproved road approximately 0.2 mile to the road's intersection with the 80-foot elevation line; then
</P>
<P>(13) Proceed initially northeasterly along the meandering 80-foot elevation line, and then continue to follow the meandering 80-foot elevation line westerly, then northeasterly to its intersection with West Potrero Road (near Camarillo State Hospital, now the site of California State University Channel Islands); then
</P>
<P>(14) Proceed easterly on West Potrero Road approximately 0.5 mile to the road's third intersection with the 200-foot elevation; then
</P>
<P>(15) Proceed northerly along the 200-foot elevation line approximately 0.75 mile, crossing over an unnamed intermittent creek in Long Grade Canyon, to the elevation line's intersection with a second unnamed intermittent stream; then
</P>
<P>(16) Proceed westerly (downstream) along the unnamed intermittent stream approximately 0.75 mile to the stream's intersection with an unnamed medium-duty road known locally as Camarillo Street; then
</P>
<P>(17) Proceed northerly on Camarillo Street approximately 0.7 mile to the street's intersection with an unnamed light-duty road at the south-bank levee for Calleguas Creek; then
</P>
<P>(18) Proceed easterly on the unnamed light-duty road approximately 0.9 mile to the road's intersection with the 100-foot elevation line; then
</P>
<P>(19) Proceed initially westerly and then continue easterly and then northerly along the meandering 100-foot elevation line, crossing back and forth between the Camarillo map and the Newbury Park map, to the 100-foot elevation line's intersection with the T1N/T2N boundary line near Conejo Creek on the Newbury Park map; then
</P>
<P>(20) Proceed east along the T1N/T2N boundary line approximately 0.7 mile to the line's intersection with U.S. Highway 101 (Ventura Boulevard); then
</P>
<P>(21) Proceed easterly on U.S. Highway 101 approximately 1.8 miles to the highway's intersection with Conejo Road (known locally as Old Conejo Road); then
</P>
<P>(22) Proceed southerly and then easterly on Conejo Road approximately 0.75 mile to the road's intersection with Borchard Road (also known locally as N. Reino Road); then
</P>
<P>(23) Proceed southerly on Borchard Road (also known locally as N. Reino Drive) approximately 0.9 mile to the point where Borchard Road (N. Reino Road) turns eastward, and then continue easterly on Borchard Road approximately 1.75 miles to Borchard Road's intersection with U.S. Highway 101 (Ventura Boulevard); then
</P>
<P>(24) Proceed easterly on U.S. Highway 101 (Ventura Boulevard/Freeway) approximately 5 miles, crossing onto the Thousand Oaks map, to the highway's sixth and last intersection with the 920-foot elevation line in section 14, T1N/R19W (approximately 0.2 mile west of the intersection of U.S. Highway 101 and an unnamed road known locally as Hampshire Road); then
</P>
<P>(25) Proceed southerly and then southwesterly along the meandering 920-foot elevation line to its intersection with an unnamed medium-duty road known locally as E Potrero Road, section 27, T1N/R19W; then
</P>
<P>(26) Proceed easterly on E. Potrero Road approximately 0.55 mile to its intersection with an unnamed heavy-duty road known locally as Westlake Boulevard, section 26, T1N/R19W; then
</P>
<P>(27) Proceed northeasterly on Westlake Boulevard approximately 0.4 mile to the road's second intersection with the 900-foot elevation line, section 26, T1N/R19W; then
</P>
<P>(28) Proceed easterly along the 900-foot elevation line, crossing the Los Angeles-Ventura County line, to the elevation line's intersection with the boundary line of the Las Virgenes Land Grant (concurrent at this point with the northern boundary line of section 31, T1N/R18W); then
</P>
<P>(29) Proceed northeasterly along the Las Virgenes Land Grant boundary line approximately 0.3 mile, crossing Triunfo Canyon, to the boundary line's intersection with the 1,000-foot elevation line; then
</P>
<P>(30) Proceed westerly and then east-northeasterly along the 1,000-foot elevation line to the line's intersection with the Las Virgenes Land Grant boundary line, and then continue northeasterly along the Las Virgenes Land Grant boundary line approximately 0.2 mile to the boundary line's intersection with U.S. Highway 101 (Ventura Freeway); then
</P>
<P>(31) Proceed easterly on U.S. Highway 101 (Ventura Freeway) approximately 5.7 miles, crossing onto the Calabasas map, to the highway's intersection with the northern boundary line of section 30, T1N/R17, near Brents Junction; then
</P>
<P>(32) Proceed west along the northern boundary line of section 30, T1N/R17W approximately 0.5 mile to its intersection with the 1,000-foot elevation line; then
</P>
<P>(33) Proceed northerly, southerly, and easterly along the meandering 1,000-foot elevation line, encompassing portions of Las Virgenes, East Las Virgenes, and Gates Canyons, to the elevation line's intersection with the western boundary line of section 21, T1N/R17W; then
</P>
<P>(34) Proceed north along the western boundary lines of sections 21 and 16, T1N/R17W, to the section line's intersection with the Los Angeles-Ventura County line; then
</P>
<P>(35) Proceed east along the Los Angeles-Ventura County line approximately 0.45 mile, and then proceed north along the county line approximately 0.1 mile to the county line's intersection with Long Valley Road; then
</P>
<P>(36) Proceed east-southeasterly on Long Valley Road approximately 1.7 miles to the road's intersection with the Los Angeles city boundary line (approximately 0.1 mile north of U.S. Highway 101 (Ventura Freeway)), section 23, T1N/R17W; then
</P>
<P>(37) Proceed south along the Los Angeles city boundary line approximately 0.2 mile, then east-northeasterly approximately 0.2 mile, and then southeasterly approximately 0.9 mile to the city boundary line's intersection with the northern boundary line of section 26, T1N/R17W; then
</P>
<P>(38) Proceed east-northeasterly along the Los Angeles city boundary line approximately 0.3 mile, and then continue easterly along the city boundary line approximately 0.5 mile, crossing onto the Canoga Park map, and returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-121, 79 FR 41896, July 18, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.236" NODE="27:1.0.1.1.7.3.45.216" TYPE="SECTION">
<HEAD>§ 9.236   Manton Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Manton Valley”. For purposes of part 4 of this chapter, “Manton Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Manton Valley viticultural area are titled:
</P>
<P>(1) Manton, CA, 1995;
</P>
<P>(2) Shingletown, CA, 1985 (provisional); and
</P>
<P>(3) Grays Peak, CA, 1995.
</P>
<P>(c) <I>Boundary.</I> The Manton Valley viticultural area is located in Shasta and Tehama Counties in northern California. The boundary of the Manton Valley viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Manton map, in the community of Manton, at the intersection of three unnamed light-duty roads known locally as Manton Road, Forward Road, and Rock Creek Road, section 21, T30N/R1E. From the beginning point, proceed northerly, then northeasterly on Rock Creek Road approximately 0.8 mile to the road's intersection with an unnamed light-duty road known locally as Wilson Hill Road, section 21, T30N/R1E; then
</P>
<P>(2) Proceed westerly, then northerly on Wilson Hill Road, crossing onto the Shingletown map, then continue westerly, then northerly, then northeasterly on the turning Wilson Hill Road, approximately 4 miles in total distance, to the road's intersection with the marked power line in section 8, T30N/R1E; then
</P>
<P>(3) Proceed east-southeasterly along the marked power line, crossing onto the Manton map, approximately 1.1 miles to the power line's intersection with the Volta Powerhouse, section 16, T30N/R1E; then
</P>
<P>(4) From the Volta Powerhouse, proceed south-southeasterly (downstream) along an aqueduct and penstock, approximately 0.7 mile in total distance, to the penstock's intersection with the North Fork of Battle Creek, section 16, T30N/R1E; then
</P>
<P>(5) Proceed north-northeasterly (upstream) along the North Fork of Battle Creek approximately 0.3 mile to the confluence of Bailey Creek, section 15, T30N/R1E; then
</P>
<P>(6) Proceed east-northeasterly (upstream) along Bailey Creek approximately 2 miles to the creek's intersection with an unnamed light-duty road known locally as Manton Ponderosa Way, section 11; T30N/R1E; then
</P>
<P>(7) Proceed southeasterly along Manton Ponderosa Way approximately 1.8 miles to the road's intersection with Rock Creek Road, and then proceed easterly on Rock Creek Road approximately 0.05 mile to the road's intersection with an unnamed light-duty road known locally as Forwards Mill Road, section 19, T30N/R2E; then
</P>
<P>(8) Proceed easterly along Forwards Mill Road approximately 4.5 miles, crossing onto the Grays Peak map, to the road's intersection with an unnamed light-duty road known locally as Forward Road, section 26, T30N/R2E; then
</P>
<P>(9) Proceed generally westerly along Forward Road approximately 4.8 miles, crossing onto the Manton map, to the road's intersection with an unnamed light-duty road known locally as Ponderosa Way, section 31, T30N/R2E; then
</P>
<P>(10) Proceed southerly along Ponderosa Way approximately 1.7 miles to the road's intersection with an unimproved road (Pacific Gas and Electric service road, approximately 0.25 mile west-southwest of Bluff Springs), section 1, T29N/R1E; then
</P>
<P>(11) Proceed westerly along the unimproved road approximately 2.2 miles to the road's intersection with the South Battle Creek Canal, section 3, T29N/R1E; then
</P>
<P>(12) Proceed generally northwesterly (downstream) along the meandering South Battle Creek Canal approximately 1.3 miles to the canal's intersection with an unimproved road known locally as South Powerhouse Road, section 4, T29N/R1E; then
</P>
<P>(13) Proceed northerly along South Powerhouse Road approximately 2 miles to the road's intersection with an unnamed light-duty road known locally as Manton Road, section 21, T30N/R1E; then
</P>
<P>(14) Proceed easterly along Manton Road approximately 0.1 mile, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-122, 79 FR 44689, Aug. 1, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.237" NODE="27:1.0.1.1.7.3.45.217" TYPE="SECTION">
<HEAD>§ 9.237   Eagle Peak Mendocino County.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Eagle Peak Mendocino County”. For purposes of part 4 of this chapter, “Eagle Peak Mendocino County” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geographical Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Eagle Peak Mendocino County viticultural area are titled:
</P>
<P>(1) Laughlin Range, California, provisional edition 1991;
</P>
<P>(2) Redwood Valley, Calif., 1960, photo revised 1975;
</P>
<P>(3) Orrs Springs, California, provisional edition 1991; and
</P>
<P>(4) Greenough Ridge, California, provisional edition 1991.
</P>
<P>(c) <I>Boundary.</I> The Eagle Peak Mendocino County viticultural area is located in Mendocino County, California. The boundary of the Eagle Peak Mendocino County viticultural area is as follows:
</P>
<P>(1) The beginning point is located on the Laughlin Range map within McGee Canyon at the point where the 1,600-foot contour line intersects with Bakers Creek near the western boundary of section 25, T17N/R13W. From the beginning point, proceed southeasterly (downstream) approximately 0.2 mile along Bakers Creek to the creek's intersection with the 1,400-foot contour line, section 25, T17N/R13W; then
</P>
<P>(2) Proceed southeasterly in a straight line approximately 1.5 miles, crossing onto the Redwood Valley map, to the southeast corner of section 36, T17N/R13W; then
</P>
<P>(3) Proceed west-southwesterly in a straight line approximately 0.55 mile, crossing onto the Laughlin Range map, to the intersection of U.S. Highway 101 and an unnamed road locally known as Reeves Canyon Road, section 1, T16N/R13W; then
</P>
<P>(4) Proceed southeasterly in a straight line approximately 0.9 mile, crossing onto the Redwood Valley map, to the southeast corner of section 1, T16N/R13W; then
</P>
<P>(5) Proceed south-southwesterly in a straight line approximately 0.65 mile to the intersection of an unnamed, unimproved road and an unnamed intermittent stream located approximately 500 feet south of Seward Creek, section 12, T16N/R13W; then
</P>
<P>(6) Proceed west-southwesterly in a straight line approximately 0.9 mile, crossing onto the Laughlin Ridge map, to the southwest corner of section 12, T16N/R13W; then
</P>
<P>(7) Proceed west-southwesterly in a straight line approximately 0.8 mile, crossing onto the Orrs Springs map, to the 1,883-foot elevation point in section 14, T16N/R13W; then
</P>
<P>(8) Proceed west-southwesterly in a series of three straight lines (totaling approximately 3.15 miles in distance), first to the 1,836-foot elevation point in section 15, T16N/R13W; then to the 1,805-foot elevation point in section 16, T16N/R13W; and then to the 2,251-foot elevation point in section 20, T16W/R13W; then
</P>
<P>(9) Proceed south-southwesterly in a straight line approximately 0.8 mile to the 2,562-foot elevation point, section 20, T16N/R13W; then
</P>
<P>(10) Proceed north-northwesterly in a straight line approximately 0.8 mile to the 2,218-foot elevation point, section 19, T16N/R13W; then
</P>
<P>(11) Proceed northeasterly in a straight line approximately 0.35 mile to the 2,112-foot elevation point in the southeast corner of section 18, T16N/R13W; then
</P>
<P>(12) Proceed north-northeasterly in a straight line approximately 0.9 mile to the 2,344-foot elevation point, section 17, T16N/R13W; then
</P>
<P>(13) Proceed northwesterly in a straight line approximately 1.8 miles, crossing onto the Laughlin Range map, to the intersection of the R13W/R14W common boundary line and an unnamed, unimproved road east of Leonard Lake, section 1, T16N/R14W; then
</P>
<P>(14) Proceed west-northwesterly along the unnamed, unimproved road to the road's intersection with the 2,000 foot contour line between Leonard Lake and Mud Lake, section 1, T16N/R13W; then
</P>
<P>(15) Proceed north-northwesterly in a straight line approximately 1.6 miles, crossing onto the Greenough Ridge map, to the 2,246-foot elevation point, section 26, T17N/R14W; then
</P>
<P>(16) Proceed northerly in a straight line approximately 0.9 mile to the 2,214-foot elevation point, section 23, T17N/R14W; then
</P>
<P>(17) Proceed northeasterly in a straight line approximately 1 mile, crossing onto the Laughlin Range map, to the peak of Impassable Rocks, section 24, T17N/R14W; then
</P>
<P>(18) Proceed northwesterly in a straight line approximately 0.95 mile, crossing onto the Greenough Ridge map, to the 2,617-foot elevation point, section 14, T17N/R14W, and continue northwesterly in a straight line approximately 0.8 mile to the 2,836-foot elevation point of Irene Peak, section 11, T17N/R14W; then
</P>
<P>(19) Proceed northerly in a straight line approximately 1 mile to the intersection of 3 unnamed unimproved roads approximately 0.3 mile west of the headwaters of Walker Creek (locally known as the intersection of Blackhawk Drive, Walker Lake Road, and Williams Ranch Road) section 2, T17N/R14W; then
</P>
<P>(20) Proceed easterly along the unnamed improved road, locally known as Blackhawk Drive, approximately 1.35 miles, crossing onto the Laughlin range map, to the road's intersection with the section 2 eastern boundary line, T17N/R14W; then
</P>
<P>(21) Proceed east-northeasterly in a straight line approximately 0.75 mile, returning to the 2,213 elevation point near the northeast corner of section 1, T17N/R14W; then
</P>
<P>(22) Proceed southeasterly in a straight line approximately 3.55 miles to BM 1893 (0.2 mile south of Ridge) in section 16, T17N/R13W, and then continue southeasterly in a straight line approximately 0.85 mile to a radio facility located at approximately 2,840 feet in elevation in the Laughlin Range, section 15, T17N/R13W; then
</P>
<P>(23) Proceed easterly in a straight line approximately 0.85 mile to another radio facility located at approximately 3,320 feet in elevation in the Laughlin Range, section 14, T17N/R13W; then
</P>
<P>(24) Proceed southerly in a straight line approximately 1.5 miles to the 2,452-foot elevation point in section 26, T17N/R13W; then
</P>
<P>(25) Proceed southeasterly in a straight line approximately 0.4 mile to the intersection of the 1,800-foot contour line with Bakers Creek within McGee Canyon, section 26, T17N/R13W; then
</P>
<P>(26) Proceed southeasterly (downstream) approximately 0.2 mile along Bakers Creek, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-124, 79 FR 60973, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.238" NODE="27:1.0.1.1.7.3.45.218" TYPE="SECTION">
<HEAD>§ 9.238   Adelaida District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Adelaida District.” For purposes of part 4 of this chapter, “Adelaida District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Adelaida District viticultural area are titled:
</P>
<P>(1) Paso Robles, Calif., 1948, photorevised 1979;
</P>
<P>(2) Templeton, Calif., 1948, photorevised 1979;
</P>
<P>(3) York Mountain, Calif., 1948, photorevised 1979;
</P>
<P>(4) Cypress Mountain, Calif., 1948, photorevised 1979;
</P>
<P>(5) Lime Mountain, Calif., 1948, photorevised 1979; and
</P>
<P>(6) Adelaida, Calif., 1948, photorevised 1978.
</P>
<P>(c) <I>Boundary.</I> The Adelaida District viticultural area is located in San Luis Obispo County, California. The boundary of the Adelaida District viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Paso Robles map at the point where an unnamed light-duty road locally known as Wellsona Road crosses the main channel of the Salinas River, section 4, T26S/R12E. From the beginning point, proceed southerly (upstream) along the main channel of the Salinas River approximately 3.4 miles to the river's first intersection with the city of Paso Robles Corporate Boundary line, T26S/R12E; then
</P>
<P>(2) Proceed westerly and then southerly along the meandering city of Paso Robles Corporate Boundary line, crossing onto the Templeton map, to the boundary line's intersection with Peachy Canyon Road, T26S/R12E; then
</P>
<P>(3) Proceed westerly on Peachy Canyon Road approximately 2.6 miles, crossing to and from the Paso Robles map, to the road's intersection with an unnamed intermittent stream at the 1,100-foot elevation line near the center of section 36, T26S/R11; then
</P>
<P>(4) Proceed south-southeasterly (downstream) along the unnamed intermittent stream approximately 1.2 miles to the stream's intersection with the R11E/R12E common boundary line, section 1, T27S/R11E; then
</P>
<P>(5) Proceed south along the R11E/R12E common boundary line approximately 0.15 mile to the line's intersection with an unnamed light-duty road locally known as Kiler Canyon Road, section 1, T27S/R11E; then
</P>
<P>(6) Proceed westerly on the light-duty and then unimproved Kiler Canyon Road approximately 4 miles, crossing onto the York Mountain map, to the road's intersection with Summit Canyon Road (locally known as Peachy Canyon Road), section 33, T26S/R11E; then
</P>
<P>(7) Proceed southwesterly on Summit Canyon Road (locally known as Peachy Canyon Road) approximately 3.5 miles to the road's intersection with Willow Creek Road (locally known as Vineyard Drive), T27S/R11E; then
</P>
<P>(8) Proceed southerly on Willow Creek Road (locally known as Vineyard Drive) approximately 0.4 mile to the road's intersection with Dover Canyon Road, T27S/R11E; then
</P>
<P>(9) Proceed westerly on Dover Canyon Road approximately 2.8 miles to the road's intersection with an intermittent stream and an unnamed jeep trail in Dover Canyon, section 14, T27S/R10E; then
</P>
<P>(10) Proceed west-northwesterly in a straight line approximately 5.7 miles, crossing onto the Cypress Mountain map, to the R9E/R10E common boundary line at the northwest corner of section 6, T27S/R10E; then
</P>
<P>(11) Proceed north along the R9E/R10E common boundary line approximately 6.5 miles, crossing onto the Lime Mountain map, to the line's intersection with the second unnamed intermittent stream that crosses the western boundary line of section 31, T25S/R10E; then
</P>
<P>(12) Proceed easterly in a straight line approximately 0.45 mile to a marked 1,165-foot peak in section 31, T25S/R10E, and then continue easterly in a straight line approximately 0.8 mile to the marked 1,135-foot peak in section 32, T25S/R10E; then
</P>
<P>(13) Proceed due east-northeasterly in a straight line approximately 0.3 mile to the line's intersection with Dip Creek, section 32, T25S/R10E; then
</P>
<P>(14) Proceed southeasterly and then easterly along Dip Creek approximately 6 miles, crossing onto the Adelaida map, to the creek's intersection with San Miguel Road (locally known as Chimney Rock Road), section 13, T26S/R10E; then
</P>
<P>(15) Proceed easterly on San Miguel Road (locally known as Chimney Rock Road, then Nacimiento Lake Drive, then Godfrey Road, and then San Marcos Road) approximately 8.6 miles, crossing onto the Paso Robles map, to the road's intersection with an unnamed light-duty road locally known as Wellsona Road, section 6, T26S/R12E; then
</P>
<P>(16) Proceed southeasterly and then easterly on Wellsona Road approximately 2.0 miles, returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60960, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.239" NODE="27:1.0.1.1.7.3.45.219" TYPE="SECTION">
<HEAD>§ 9.239   Creston District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Creston District.” For purposes of part 4 of this chapter, “Creston District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The five United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Creston District viticultural area are titled:
</P>
<P>(1) Creston, Calif., 1948, photorevised 1980;
</P>
<P>(2) Shedd Canyon, Calif., 1961;
</P>
<P>(3) Wilson Corner, CA, 1995;
</P>
<P>(4) Camatta Ranch, CA, 1995; and
</P>
<P>(5) Santa Margarita, Calif., 1965, revised 1993.
</P>
<P>(c) <I>Boundary.</I> The Creston District viticultural area is located in San Luis Obispo County, California. The boundary of the Creston District viticultural area is as described below:
</P>
<P>(1) The beginning point is located on the Creston map along the common boundary line of the Huerhuero Land Grant and section 34, T27S/R13E, at the eastern-most intersection of State Route 41 and an unnamed light-duty road locally known as Cripple Creek Road. From the beginning point, proceed northerly on Cripple Creek Road approximately 1 mile to the road's intersection with an unnamed light duty road locally known as El Pomar Drive (at BM 1052), section 27, T27S/R13E; then
</P>
<P>(2) Proceed northeasterly in a straight line approximately 0.75 mile to the unnamed 1,142-foot elevation point, T27S/R13E; then
</P>
<P>(3) Proceed north in a straight line approximately 1.2 miles to the line's intersection with an unnamed light duty road locally known as Creston Road at the southwest corner of section 14, T27S/R13E; then
</P>
<P>(4) Proceed east on Creston Road approximately 0.35 mile to the road's intersection with an unnamed light-duty road known locally as Geneseo Road (at BM 1014), T27S/R13E; then
</P>
<P>(5) Proceed north-northwesterly on Geneseo Road approximately 0.7 mile to the road's intersection with a jeep trail (locally known as Rancho Verano Place) and the western boundary line of section 14, T27S/R13E; then
</P>
<P>(6) Proceed due east in a straight line approximately 0.2 mile to the line's intersection with the Huerhuero Land Grant boundary line, section 14, T27S/R13E; then
</P>
<P>(7) Proceed north-northeasterly along the Huerhuero Land Grant boundary line approximately 0.7 mile to the land grant's northern-most point, and then continue east-southeasterly along the land grant's boundary line approximately 0.4 mile to the line's intersection with the northern boundary line of section 14, T27S/R13E; then
</P>
<P>(8) Proceed east approximately 1.3 miles along the northern boundary lines of sections 14 and 13, T27S/R13E, and continue east approximately 0.25 mile along the northern boundary line of section 18, T27S/R14E, to the T-intersection of two unnamed unimproved roads; then
</P>
<P>(9) Proceed east-southeasterly on the generally east-west unnamed unimproved road approximately 0.85 mile, crossing onto the Shedd Canyon map, to the road's intersection with the eastern boundary line of section 18, T27S/R14E; then
</P>
<P>(10) Proceed southeasterly in a straight line approximately 1.2 miles to the 1,641-foot elevation point located at the southeast corner of section 17, T27S/R14E; then
</P>
<P>(11) Proceed southeasterly approximately 0.55 mile in a straight line to BM 1533 (located beside Creston Shandon Road (State Route 41)) and continue southeasterly in a straight line approximately 1.8 miles to the 1,607 elevation point near the western boundary line of section 27, T27S/R14E; then
</P>
<P>(12) Proceed east-southeasterly in a straight line approximately 1.1 miles to the 1.579-foot elevation point at the southeast corner of section 27, T27S/R14E; then
</P>
<P>(13) Proceed east approximately 1.9 miles along the northern boundary lines of sections 35 and 36, T27S/R14E, to the section 36 boundary line's intersection with Indian Creek; then
</P>
<P>(14) Proceed southerly (upstream) along Indian Creek approximately 5.3 miles in straight-line distance, crossing onto the Wilson Corner map, to the creek's intersection with an unnamed light-duty road locally known as La Panza Road, section 20, T28S/R15E; then
</P>
<P>(15) Proceed southeasterly on La Panza Road approximately 0.15 mile to the road's intersection with State Route 58 at Wilson Corner, section 29, T28S/R15E; then
</P>
<P>(16) Proceed easterly on State Route 58 approximately 1.4 miles, crossing onto the Camatta Ranch map, to the road's intersection with the eastern boundary line of section 28, T28S/R15E; then
</P>
<P>(17) Proceed south approximately 1.5 miles along the eastern boundary lines of sections 28 and 33, T28S/R15E, to the T28S/T29S common boundary line at the southeast corner of section 33, T28S/15E; then
</P>
<P>(18) Proceed west along the T28S/T29S common boundary line approximately 9.1 miles, crossing over the Wilson Corner map and onto the Santa Margarita map, to the boundary line's intersection with the Middle Branch of Huerhuero Creek, section 31, T28S/R14E; then
</P>
<P>(19) Proceed north-northwesterly (downstream) along the Middle Branch of Huerhuero Creek approximately 2.3 miles in straight-line distance to the creek's intersection with the southern boundary line of section 24, T28S/R13E; then
</P>
<P>(20) Proceed west along the southern boundary line of section 24, T28S/R13E, approximately 0.45 mile to that section's southwestern corner; then
</P>
<P>(21) Proceed north along the western boundary line of section 24, T28S/R13E, approximately 1.0 mile to the boundary line's intersection with an unnamed unimproved road at the section's northwestern corner; then
</P>
<P>(22) Proceed northwesterly on the unnamed unimproved road approximately 0.7 mile to the road's intersection with State Route 229 near BM 1138, section 14, T28S/R13E; then
</P>
<P>(23) Proceed northeasterly on State Route 229 approximately 0.2 mile to the road's intersection with the Huerhuero Land Grant boundary line, section 14, T28S/R13E; then
</P>
<P>(24) Proceed north-northwesterly along the boundary of the Huerhuero Land Grant approximately 3 miles, crossing onto the Creston map and returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60960, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.240" NODE="27:1.0.1.1.7.3.45.220" TYPE="SECTION">
<HEAD>§ 9.240   El Pomar District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “El Pomar District.” For purposes of part 4 of this chapter, “El Pomar District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the El Pomar District viticultural area are titled:
</P>
<P>(1) Templeton, Calif., 1948, photorevised 1979; and
</P>
<P>(2) Creston, Calif., 1948, photorevised 1980.
</P>
<P>(c) <I>Boundary.</I> The El Pomar District viticultural area is located in San Luis Obispo County, California. The boundary of the El Pomar District viticultural area is as described below:
</P>
<P>(1) The beginning point is on the southeastern portion of the Templeton map at the intersection of State Route 41 and an unnamed light-duty road locally known as Homestead Road, east-northeast of Atascadero within the Asuncion Land Grant. From the beginning point, proceed north-northwesterly on Homestead Road approximately 1.1 miles to the road's intersection with an unnamed light-duty road locally known as South El Pomar Road, Asuncion Land Grant; then
</P>
<P>(2) Proceed north-northwesterly in a straight line approximately 0.8 mile to the 1,452-foot elevation point, and continue north-northwesterly in a straight line approximately 0.3 mile to an unnamed peak above the 1,440-foot elevation line (marked on the map by a triangle), Asuncion Land Grant; then
</P>
<P>(3) Proceed northeasterly in a straight line approximately 0.3 mile to the 1,344-foot elevation point, Asuncion Land Grant; then
</P>
<P>(4) Proceed northerly in a series of straight lines, totaling approximately 1.4 miles, through the 1,338-foot and 1,329-foot elevation points to the intersection of two unnamed light-duty roads locally known as El Pomar Drive and Hollyhock Lane in the Santa Ysabel Land Grant, T27S/R12E; then
</P>
<P>(5) Proceed north-northwesterly on Hollyhock Lane approximately 1 mile to the road's intersection with an unnamed light-duty road locally known as Neal Springs Road, Santa Ysabel Land Grant; then
</P>
<P>(6) Proceed west on Neal Springs Road approximately 0.4 mile to the road's intersection with an unnamed light-duty road locally known as South River Road, Santa Ysabel Land Grant; then
</P>
<P>(7) Proceed northwesterly and then northerly on South River Road approximately 2.8 miles to the road's intersection with an unnamed light-duty road locally known as Charolais Road (0.1 mile north of a marked windmill), Santa Ysabel Land Grant; then
</P>
<P>(8) Proceed east-southeasterly on Charolais Road approximately 1.4 miles to the road's intersection with an unnamed light-duty road locally known as Creston Road, Santa Ysabel Land Grant; then
</P>
<P>(9) Proceed north and then west-northwesterly on Creston Road approximately 1.9 miles to the road's intersection with a marked telephone line (approximately 1.3 miles due east of U.S. Route 101) in the Santa Ysabel Land Grant, T26/R12E; then
</P>
<P>(10) Proceed easterly in a straight line approximately 2 miles, crossing onto the Creston map, to the line's intersection with the point where the R12E/R13E common boundary line crosses Huerhuero Creek, western boundary line of section 31, T26S/R13E; then
</P>
<P>(11) Proceed southeasterly (upstream) along Huerhuero Creek approximately 2.4 miles to the creek's first confluence with an unnamed intermittent stream in the northwest quadrant of section 8, T27S/R13E; then
</P>
<P>(12) Proceed southeasterly in a straight line approximately 1.4 miles to the 1,255-foot elevation point in the northwest quadrant of section 16, T27S/R13E; then
</P>
<P>(13) Proceed easterly in a straight line approximately 0.75 mile to an unnamed peak above the 1,380-foot elevation line (marked on the map with a triangle), section 16, T27S/R13E; then
</P>
<P>(14) Proceed east-southeasterly in a straight line approximately 0.6 mile to the 1,342-foot elevation point in section 15, T27S/R13E, and then continue east-southeasterly in a straight line approximately 0.6 mile to the northern end of a marked, unnamed light-duty road (locally known as a private driveway located approximately 430 feet east of Old Ford Road), section 15, T27S/R13E; then
</P>
<P>(15) Proceed south on the marked, unnamed light-duty road (locally known as a private driveway located approximately 430 feet east of Old Ford Road) approximately 0.3 mile to the road's intersection with an unnamed light-duty road locally known as Creston Road, section 15, T27S/R13E; then
</P>
<P>(16) Proceed east on Creston Road approximately 0.2 mile to the road's intersection with northeast corner of section 22, T27S/R13E; then
</P>
<P>(17) Proceed southerly in a straight line approximately 1.2 miles to the 1,142 elevation point in the Huerhuero Land Grant (0.1 mile south of a pipe line), T27S/R13E; then
</P>
<P>(18) Proceed southwesterly in a straight line approximately 0.75 mile to BM 1052 located at the intersection of two unnamed light-duty roads locally known locally as El Pomar Drive and Cripple Creek Road, section 27, T27S/R13E; then
</P>
<P>(19) Proceed south on Cripple Creek Road approximately 1.0 mile to the road's eastern-most intersection with State Route 41, section 34, T27S/R13E; then
</P>
<P>(20) Proceed southwesterly on State Route 41 approximately 0.5 mile to the marked 1,128-foot elevation point, section 3, T28S/R13E; then
</P>
<P>(21) Proceed south-southwesterly in a straight line approximately 1.1 miles to the southeast corner of section 4, T28S/R13E; then
</P>
<P>(22) Proceed east along the southern boundary of section 4 approximately 0.75 mile to the section line's intersection with State Route 41; then
</P>
<P>(23) Proceed southwesterly on State Route 41 approximately 4.5 miles, crossing onto the Templeton map and returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60961, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.241" NODE="27:1.0.1.1.7.3.45.221" TYPE="SECTION">
<HEAD>§ 9.241   Paso Robles Estrella District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Paso Robles Estrella District.” For purposes of part 4 of this chapter, “Paso Robles Estrella District” and “Paso Robles Estrella” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The five United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Paso Robles Estrella District viticultural area are titled:
</P>
<P>(1) Paso Robles, Calif., 1948, photorevised 1979;
</P>
<P>(2) San Miguel, Calif., 1948, photorevised 1979;
</P>
<P>(3) Ranchito Canyon, Calif., 1948, photorevised 1976;
</P>
<P>(4) Estrella, Calif., 1948, photorevised 1979; and
</P>
<P>(5) Shandon, Calif., 1961.
</P>
<P>(c) <I>Boundary.</I> The Paso Robles Estrella District is located in San Luis Obispo County, California. The boundary of the Paso Robles Estrella District is as described below:
</P>
<P>(1) The beginning point is on the Paso Robles map at the confluence of San Jacinto Creek and the Estrella River, section 26, T25S/R12E. From the beginning point, proceed north-northeasterly (upstream) along San Jacinto Creek approximately 6.5 miles, crossing onto the San Miguel map, to the creek's intersection with the San Luis Obispo County-Monterey County boundary line, northern boundary of section 1, T25S/R12E; then
</P>
<P>(2) Proceed east along the San Luis Obispo County-Monterey County boundary line approximately 2.4 miles, crossing onto the Ranchito Canyon map, to the county line's intersection with an unnamed light-duty road locally known as Ranchita Canyon Road, northern boundary of section 4, T25S/R13E; then
</P>
<P>(3) Proceed east-southeasterly in a straight line approximately 4.5 miles to the 1,819-foot elevation point in the northwestern quadrant of section 18, T25S/R14E; then
</P>
<P>(4) Proceed southeasterly in a straight line approximately 1.6 miles, crossing over the northeastern corner of the Estrella map and then onto the Shandon map, to the 1,614-foot elevation point in the northwestern quadrant of section 20, T25S/R14E; then
</P>
<P>(5) Proceed southeasterly in a straight line approximately 1.05 miles to the 1,601-foot elevation point in the northeastern quadrant of section 29, T25S/R14E; then
</P>
<P>(6) Proceed east-southeasterly in a straight line approximately 2.2 miles to the 1,562-foot elevation point, section 34, T25S/R14E; then
</P>
<P>(7) Proceed south-southeasterly in a straight line approximately 3 miles to the 1,481-foot “Estrella” elevation point, section 14, T26S/R14E; then
</P>
<P>(8) Proceed southwesterly in a straight line approximately 0.95 mile to the intersection of the eastern boundary line of section 15, T26S/R14E, and U.S. 446/State Route 41 (now known as State Route 46); then
</P>
<P>(9) Proceed south along the eastern boundary lines of sections 15 and 22, approximately 0.55 mile, to the intersection of the section 22 boundary line and the unnamed intermittent stream that flows from Shedd Canyon, section 22, T26S/R14E; then
</P>
<P>(10) Proceed southeasterly and then southerly (upstream) along the unnamed intermittent stream located within Shedd Canyon approximately 1.9 miles to the stream's intersection with the southern boundary line of section 26, T26S/R14E; then
</P>
<P>(11) Proceed west along the southern boundary lines of sections 26, 27 and 28, T26S/R14E, approximately 1.9 miles to the section 28 boundary line's intersection with an unnamed unimproved road located between the 1,220- and 1,240-foot contour lines, section 28, T26S/R14E; then
</P>
<P>(12) Proceed southwesterly along the unnamed unimproved road approximately 0.4 miles to a fork and then continue on the westerly fork of the unnamed unimproved road approximately 0.3 miles to the 1,385-foot elevation point, section 32, T26S/R14E; then
</P>
<P>(13) Proceed west-northwesterly in a straight line approximately 1.6 miles, crossing onto the Estrella map, to the line's intersection with an unnamed unimproved road and the southern boundary of section 30, T26R/R14E; then
</P>
<P>(14) Proceed northerly along the unnamed unimproved road approximately 2.0 miles to the road's intersection with an unnamed light-duty road known locally as River Grove Drive in Whitley Gardens, T26S/R14E; then
</P>
<P>(15) Proceed westerly in a straight line less than 0.1 mile to the intersection of the western boundary line of section 19, T26S/R14E and State Route 46, and then continue west on State Route 46 approximately 2.1 miles to the southwest corner of section 14, T26S/R13E; then
</P>
<P>(16) Proceed west along the southern boundary lines of sections 14, 15, 16, 17, and 18 (largely concurrent with State Route 46) approximately 4 miles to the southwest corner of section 18, T26S/R13E; then
</P>
<P>(17) Proceed southwest in a straight line approximately 1.45 miles, crossing onto the Paso Robles map, to the line's intersection with State Route 46 at the southwestern corner of section 24, T26S/R12E; then
</P>
<P>(18) Proceed west on State Route 46 approximately 2.4 miles to the road's intersection with the Salinas River at the city of Paso Robles, T26S/R12E; then
</P>
<P>(19) Proceed northerly (downstream) along the main channel of the Salinas River approximately 5.2 miles in straight-line distance to the river's intersection with the northern boundary line of section 33, T25S/R12E; then
</P>
<P>(20) Proceed east along the northern boundary lines of sections 33, 34, and 35, T25S/R12E, approximately 1.8 miles to the intersection of the section 35 boundary line with the Estrella River; then
</P>
<P>(21) Proceed northerly (downstream) along the main channel of the Estrella River approximately 0.7 mile, returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60962, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.242" NODE="27:1.0.1.1.7.3.45.222" TYPE="SECTION">
<HEAD>§ 9.242   Paso Robles Geneseo District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Paso Robles Geneseo District.” For purposes of part 4 of this chapter, “Paso Robles Geneseo District” and “Paso Robles Geneseo” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Paso Robles Geneseo District viticultural area are titled:
</P>
<P>(1) Paso Robles, Calif., 1948, photorevised 1979;
</P>
<P>(2) Estrella Calif., 1948; photorevised 1979;
</P>
<P>(3) Creston, Calif., 1948; photorevised 1980; and
</P>
<P>(4) Templeton, Calif., 1948; photorevised 1979.
</P>
<P>(c) <I>Boundary.</I> The Paso Robles Geneseo District is located in San Luis Obispo County, California. The boundary of the Paso Robles Geneseo District is as described below:
</P>
<P>(1) The beginning point is on the Paso Robles map at the intersection of State Route 46 and Golden Hill Road at the northwest corner of section 26, T26S/R12E. From the beginning point, proceed east on State Route 46 for 1 mile to the southwest corner of section 24, T26S/R12E; then
</P>
<P>(2) Proceed northeast in a straight line approximately 1.45 miles, crossing onto the Estrella map, to the northwest corner of section 19, T26S/R13E; then
</P>
<P>(3) Proceed east along the northern boundary lines of sections 19 and 20, T26S/R13E, to the section 20 boundary line's intersection with State Route 46 and then continue east on State Route 46 to the road's intersection with the eastern boundary line of section 24, T26S/R13E; then
</P>
<P>(4) Proceed easterly in a straight line less than 0.1 mile to the intersection of an unnamed light duty road locally known as River Grove Drive and an unnamed unimproved road in Whitley Gardens, section 19, T26S/R14E; then
</P>
<P>(5) Proceed south on the unnamed unimproved road approximately 2 miles to the road's intersection with the southern boundary line of section 30, T26S/R14E; then
</P>
<P>(6) Proceed west-southwesterly in a straight line approximately 1.9 miles, crossing onto the Creston map, to the intersection of an unnamed light duty road locally known as Geneseo Road and an unnamed unimproved road locally known as Dry Canyon Road (just east of a windmill within Dry Canyon), section 35, T26S/R13E; then
</P>
<P>(7) Proceed south on Geneseo Road approximately 1 mile to the road's intersection with the eastern boundary line of section 3, T27S/R13E (near BM 1200); then
</P>
<P>(8) Proceed south along the eastern boundary lines of sections 3, 10, and 15, T27S/R13E, approximately 1.9 miles to the first intersection of the section 15 eastern boundary line with the unnamed light-duty road locally known as Geneseo Road, section 15, T27S/R13E; then
</P>
<P>(9) Proceed south-southeasterly on Geneseo Road approximately 0.85 mile to the road's intersection with an unnamed light duty road locally known as Creston Road, Huerhuero Land Grant, T27S/R13E; then
</P>
<P>(10) Proceed west on Creston Road 0.5 mile to the road's intersection with a marked, unnamed light-duty road (locally known as a private driveway located approximately 430 feet east of Old Ford Road), southern boundary of section 15, T27S/R13E; then
</P>
<P>(11) Proceed north on the marked, unnamed light-duty road (locally known as a private driveway located approximately 430 feet east of Old Ford Road) approximately 0.3 mile to the road's end, section 15, T27S/R13E; then
</P>
<P>(12) Proceed west-northwesterly in a straight line approximately 0.6 mile to the 1,342 foot elevation point in section 15, T27S/R13E, and then continue west-northwesterly in a straight line approximately 0.6 mile to an unnamed peak above the 1,380-foot elevation line (marked on the map with a triangle), section 16, T27S/R13E; then
</P>
<P>(13) Proceed westerly in a straight line approximately 0.75 mile to the 1,255-foot elevation point in the northwest quadrant of section 16, T27S/R13E; then
</P>
<P>(14) Proceed northwesterly in a straight line approximately 1.4 miles to the confluence of Huerhuero Creek and an unnamed intermittent stream in the northwest quadrant of section 8, T27S/R13E; then
</P>
<P>(15) Proceed northwesterly (downstream) along Huerhuero Creek approximately 2.4 miles to the creek's intersection with the R12E/R13E common boundary line, section 31, T26S/R13E; then
</P>
<P>(16) Proceed westerly in a straight line approximately 2.3 miles, crossing onto the Templeton map, to the line's intersection with the junction of a marked telephone line and an unnamed light duty road locally known as Creston Road (approximately 1.3 miles due east of U.S. Route 101 in the Santa Ysabel Land Grant, T26S/R12E; then
</P>
<P>(17) Proceed west on Creston Road approximately 0.05 mile to the road's intersection with an unnamed light-duty road locally known as Rolling Hills Road, Santa Ysabel Land Grant; then
</P>
<P>(18) Proceed north on Rolling Hills Road, crossing onto the Paso Robles map (where a portion of Rolling Hills Road is labeled Golden Hill Road), and continue north on Rolling Hills Road and then Golden Hill Road (a total distance of approximately 1.5 miles), returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60963, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.243" NODE="27:1.0.1.1.7.3.45.223" TYPE="SECTION">
<HEAD>§ 9.243   Paso Robles Highlands District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Paso Robles Highlands District.” For purposes of part 4 of this chapter, “Paso Robles Highlands District” and “Paso Robles Highlands” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Paso Robles Highlands District viticultural area are titled:
</P>
<P>(1) Camatta Ranch, CA, 1995;
</P>
<P>(2) Wilson Corner, CA, 1995;
</P>
<P>(3) Shedd Canyon, Calif., 1961, revised 1993;
</P>
<P>(4) Camatta Canyon, Calif., 1961, revised 1993;
</P>
<P>(5) Holland Canyon, Calif., 1961, revised 1993; and
</P>
<P>(6) La Panza Ranch, CA, 1995.
</P>
<P>(c) <I>Boundary.</I> The Paso Robles Highlands District viticultural area is located in San Luis Obispo County, California. The boundary of the Paso Robles Highlands District viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Camatta Ranch map along the T28S/T29S common boundary line (also concurrent with the northern boundary line of the Los Padres National Forest) at the southwest corner of section 34, T28S/R15E. From the beginning point, proceed north along the western boundary lines of sections 34 and 27, T28S/R15E, approximately 1.5 miles to the section 27 boundary line's intersection with State Route 58; then
</P>
<P>(2) Proceed west on State Route 58 approximately 1.5 miles, crossing onto the Wilson Corner map, to the road's intersection with an unnamed light-duty road known locally as La Panza Road at Wilson Corner, section 29, T28S/R15E; then
</P>
<P>(3) Proceed northwest on the unnamed light-duty road known locally as La Panza Road approximately 0.15 mile to the road's intersection with Indian Creek, section 20, T28S/R15E; then
</P>
<P>(4) Proceed north-northwesterly (downstream) along the meandering Indian Creek approximately 8.5 miles in straight-line distance, crossing onto the Shedd Canyon map, to the creek's intersection with the northern boundary line of section 13, T27S/R14E, within Shedd Canyon; then
</P>
<P>(5) Proceed east approximately 6.2 miles along the northern boundary line of section 13, T27S/R14E, and the northern boundary lines of sections 18, 17, 16, 15, 14, and 13, T27S/R15E, crossing onto the Camatta Canyon map, to the intersection of the northern boundary line of section 13, T27S/R15E, with the 1,200-foot elevation line on the western edge of the San Juan Valley; then
</P>
<P>(6) Proceed southerly then easterly along the 1,200-foot elevation line to the elevation line's first intersection with the eastern boundary line of section 13, T27S/R15E; then
</P>
<P>(7) Proceed south along the eastern boundary line of section 13, T27S/R15E, approximately 0.2 mile to the section 13 boundary line's second intersection with an unnamed unimproved road; then
</P>
<P>(8) Proceed southeasterly on the unnamed unimproved road approximately 3 miles as it follows the southwestern edge of the San Juan Valley to the road's intersection with the eastern boundary line of section 29, T27S/R16E; then
</P>
<P>(9) Proceed south along the eastern boundary line of section 29, T27S/R16E, approximately 0.3 mile to the section line's intersection with the 1,300-foot elevation line; then
</P>
<P>(10) Proceed southeasterly along the 1,300-foot elevation line approximately 3.7 miles as it follows the southwestern edge of the San Juan Valley, crossing onto the Holland Canyon map, to the elevation line's first intersection with the eastern boundary line of section 3, T28S/R16E; then
</P>
<P>(11) Proceed south along the eastern boundary line of section 3, T28S/R16E, approximately 0.55 mile to the section boundary line's fifth intersection with the 1,300-foot elevation line (northwest of Pear Tree Spring); then
</P>
<P>(12) Proceed southeasterly along the 1,300-foot elevation line approximately 1.3 miles to the elevation line's intersection with an unnamed tributary of San Juan Creek (approximately 0.35 mile east of the 1,686-foot San Juan peak), section 11, T28S/R16E; then
</P>
<P>(13) Proceed southerly in a straight line approximately 0.6 mile, crossing onto the La Panza Ranch map, to the northwestern corner of section 13, T28S/R16E; then
</P>
<P>(14) Proceed east along the northern boundary line of section 13, T28S/R16E, approximately 0.7 mile to the section boundary line's intersection with an unnamed unimproved road; then
</P>
<P>(15) Proceed south-southeasterly on the unnamed unimproved road approximately 0.85 mile to the road's intersection with the eastern boundary line of section 13, T28S/R16E, which is concurrent with the R16E/R17E common boundary line; then
</P>
<P>(16) Proceed south along the R16E/R17E common boundary line approximately 3.35 miles to the southeast corner of section 36, T28S/R16E, which is concurrent with the eastern-most intersection of the R16E/R17E and T28S/T29S common boundary lines; then
</P>
<P>(17) Proceed west along the T28S/R29S common boundary line approximately 9.1 miles, crossing onto the Camatta Ranch map, returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60964, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.244" NODE="27:1.0.1.1.7.3.45.224" TYPE="SECTION">
<HEAD>§ 9.244   Paso Robles Willow Creek District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Paso Robles Willow Creek District.” For purposes of part 4 of this chapter, “Paso Robles Willow Creek District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Paso Robles Willow Creek District viticultural area are titled:
</P>
<P>(1) York Mountain, Calif., 1948, photorevised 1979;
</P>
<P>(2) Templeton, Calif., 1948, photorevised 1979; and
</P>
<P>(3) Paso Robles, Calif. 1948, photorevised 1979.
</P>
<P>(c) <I>Boundary.</I> The Paso Robles Willow Creek District is located in San Luis Obispo County, California. The boundary of the Paso Robles Willow Creek District is as follows:
</P>
<P>(1) The beginning point is on the York Mountain map at the intersection of Summit Canyon Road (locally known as Peachy Canyon Road), and an unnamed unimproved road locally known as Kiler Canyon Road, section 33, T26S/R11E. From the beginning point, proceed southerly and then southwesterly on Summit Canyon Road (locally known as Peachy Canyon Road) approximately 3.3 miles to the road's intersection with Willow Canyon Road (locally known as Vineyard Drive), Paso de Robles Land Grant; then
</P>
<P>(2) Proceed southerly on Willow Creek Road (locally known as Vineyard Drive) approximately 0.35 mile to its intersection with Dover Canyon Road; then
</P>
<P>(3) Proceed westerly then southerly on Dover Canyon Road approximately 1 mile to the road's intersection with the common boundary line of section 18, T27S/R11E, and the Paso de Robles Land Grant; then
</P>
<P>(4) Proceed east, south, and southeast along the Paso de Robles Land Grant Boundary line approximately 1.9 miles to the fourth crossing of an unnamed intermittent tributary of Jack Creek by the common boundary line of section 20, T27S/R11E, and the Paso de Robles Land Grant; then
</P>
<P>(5) Proceed northerly (downstream) along the unnamed intermittent tributary of Jack Creek approximately 0.15 mile to the tributary's confluence with Jack Creek, Paso de Robles Land Grant; then
</P>
<P>(6) Proceed southeasterly (downstream) along Jack Creek approximately 1.8 miles to the creek's intersection with an unnamed light-duty road locally known as Jack Creek Road (near BM 920), Paso de Robles Land Grant; then
</P>
<P>(7) Proceed northeasterly and then east-southeasterly along Jack Creek Road approximately 1 mile to the road's intersection with State Route 46; then
</P>
<P>(8) Proceed east on State Route 46 approximately 0.15 mile to the road's intersection with an unnamed light-duty road locally known as Hidden Valley Road, Paso de Robles Land Grant; then
</P>
<P>(9) Proceed southeasterly and then easterly on Hidden Valley Road approximately 2.2 miles, crossing onto the Templeton map, to the road's intersection with an unnamed light-duty road locally known as Vineyard Drive, Paso de Robles Land Grant; then
</P>
<P>(10) Proceed east on Vineyard Drive approximately 0.85 mile to the road's intersection with an unnamed light-duty road locally known as S. Bethel Road, Paso de Robles Land Grant; then
</P>
<P>(11) Proceed north-northeasterly on S. Bethel Road and then N. Bethel Road approximately 1.7 miles to the road's fifth intersection with an unnamed intermittent stream, Paso de Robles Land Grant; then
</P>
<P>(12) Proceed westerly (upstream) along the unnamed intermittent stream and then the stream's middle branch approximately 1.1 miles to the marked end of the stream, and then continue due west in a straight line approximately 0.05 mile to State Route 46 (Cayucos Road), Paso de Robles Land Grant; then
</P>
<P>(13) Proceed northeasterly on State Route 46 (Cayucos Road) approximately 0.8 mile to BM 924, Paso de Robles Land Grant; then
</P>
<P>(14) Proceed due north in a straight line to the southeast corner of section 12, T27S/R11E, and continue north along the eastern boundary line of section 12, a total of approximately 1.1 miles, to the section boundary line's intersection with a light-duty road locally known as Live Oak Road; then
</P>
<P>(15) Proceed easterly on Live Oak Road approximately 0.2 mile to the road's intersection with an unnamed intermittent stream, Paso de Robles Land Grant; then
</P>
<P>(16) Proceed northwesterly (upstream) along the unnamed intermittent stream approximately 0.35 mile to the eastern boundary line of section 12, T27S/R11E; then
</P>
<P>(17) Proceed north along the eastern boundary line of section 12, T27S/R11E, to the section's northeast corner, and then proceed east along the southern boundary line of section 6, T27S/R11E, a total of approximately 1.3 miles, to the intersection of the section 6 boundary line with an unnamed light-duty road locally known as Arbor Road; then
</P>
<P>(18) Proceed south-southeasterly on Arbor Road approximately 0.35 mile to the road's first intersection with an unnamed intermittent stream, Paso de Robles Land Grant; then
</P>
<P>(19) Proceed southeasterly and then easterly (downstream) along the unnamed intermittent stream approximately 1.4 miles to the stream's intersection with an unnamed light-duty road known locally as S. Vine Street, just west of the U.S. 101/State Route 46 interchange, Paso de Robles Land Grant; then
</P>
<P>(20) Proceed northerly along S. Vine Street (which generally parallels U.S. 101) approximately 1.8 miles to the street's intersection with the marked city of Paso Robles Corporate Boundary line (concurrent with the locally-known intersection of S. Vine and 1st Streets), Paso de Robles Land Grant; then
</P>
<P>(21) Proceed west, north, west, and north again along the marked city of Paso Robles Corporate Boundary line approximately 1 mile to the boundary line's junction with the intersection of an unnamed light-duty road locally known as Merry Hill Road and Peachy Canyon Road, Paso de Robles Land Grant; then
</P>
<P>(22) Proceed westerly on Peachy Canyon Road approximately 2.6 miles, crossing to and from the Paso Robles map, to the road's intersection with an unnamed intermittent stream near the center of section 36, T26S/R11E; then
</P>
<P>(23) Proceed south-southeasterly (downstream) along the unnamed intermittent stream approximately 1.2 miles to the stream's intersection with the eastern boundary line of section 1, T27S/R11E; then
</P>
<P>(24) Proceed south along the eastern boundary line of section 1, T27S/R11E, approximately 0.15 mile to the line's intersection with an unnamed light-duty road locally known as Kiler Canyon Road, section 1, T27S/R11E; then
</P>
<P>(25) Proceed westerly on Kiler Canyon Road approximately 3.7 miles, crossing onto the York Mountain map, returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60964, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.245" NODE="27:1.0.1.1.7.3.45.225" TYPE="SECTION">
<HEAD>§ 9.245   San Juan Creek.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Juan Creek.” For purposes of part 4 of this chapter, “San Juan Creek” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the San Juan Creek viticultural area are titled:
</P>
<P>(1) Cholame, Calif., 1961, revised 1993;
</P>
<P>(2) Camatta Canyon, Calif., 1961, revised 1993;
</P>
<P>(3) Holland Canyon, Calif. 1961, revised 1993;
</P>
<P>(4) La Panza Ranch, CA, 1995;
</P>
<P>(5) Shedd Canyon, Calif., 1961, revised 1993; and
</P>
<P>(6) Shandon, Calif., 1961, revised 1993.
</P>
<P>(c) <I>Boundary.</I> The San Juan Creek viticultural area is located in San Luis Obispo County, California. The boundary of the San Juan Creek viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Cholame map in the Shandon Valley at the intersection of State Route 41 and San Juan Road, northern boundary of section 21, T26S/R15E. From the beginning point on the Cholame map, and crossing onto the Camatta Canyon map and then the Holland Canyon map, proceed south and then southeasterly approximately 16 miles along the eastern edge of the Shandon Valley and then the San Juan Valley by following San Juan Road (also locally known in places as Shandon San Juan Road, Camatti-Shandon Road, Bitterwater Canyon Road, and then San Juan Road again), passing the San Juan Ranch (where to road is marked as unimproved), to the road's intersection with the San Luis Obispo-Kern County boundary line at the eastern boundary line of section 12, T28S/R16E, which is also concurrent with the R16E/R17E common boundary line; then
</P>
<P>(2) Proceed south along the R16E/R17E common boundary line approximately 1.3 miles, crossing onto the La Panza Ranch map, to the boundary line's intersection with an unnamed unimproved road locally known as Navajo Creek Road, immediately south of the 1,340-foot elevation line, section 13, T28S/R16E; then
</P>
<P>(3) Proceed north-northwesterly on Navajo Creek Road to the road's intersection with the southern boundary line of section 12, T28S/R16E; then
</P>
<P>(4) Proceed west along the southern boundary line of section 12, T28S/R16E, approximately 0.7 mile to the section's southwestern corner; then
</P>
<P>(5) Proceed northerly in a straight line approximately 0.6 mile, crossing onto the Holland Canyon map, to the intersection of the 1,300-foot elevation line and an unnamed tributary of San Juan Creek (approximately 0.35 mile east of the 1,686-foot San Juan peak), in section 11, T28S/R16E; then
</P>
<P>(6) Proceed northwesterly along the 1,300-foot elevation line approximately 1.3 miles to the line's first intersection with the western boundary line of section 2, T28S/R16E, northwest of Pear Tree Spring; then
</P>
<P>(7) Proceed north along the western boundary line of section 2 approximately 0.55 to the section boundary line's last intersection with the 1,300-foot elevation line, near the northwestern corner of section 2, T28S/R16E; then
</P>
<P>(8) Proceed northwesterly along the meandering 1,300-foot elevation line approximately 3.7 miles, crossing onto the Camatta Canyon map, to the elevation line's intersection with the western boundary line of section 28, T27S/R16E; then
</P>
<P>(9) Proceed north along the western boundary line of section 28 approximately 0.15 mile to the section boundary line's intersection with an unnamed unimproved road, section 28, T27S/R16E; then
</P>
<P>(10) Proceed northwesterly on the unnamed unimproved road approximately 3 miles as it follows the southwestern edge of the San Juan Valley to the road's intersection with western boundary line of section 18, T27S/R16E; then
</P>
<P>(11) Proceed north along the western boundary line of section 18, T27S/R16E, approximately 0.2 mile to the section boundary line's intersection with 1,200-foot elevation line, section 18, T27S/R16E; then
</P>
<P>(12) Proceed westerly then northerly along the 1,200-foot elevation line to the elevation line's intersection with the southern boundary of section 12, T27S/R15E; then
</P>
<P>(13) Proceed west approximately 6.4 miles along the southern boundary lines of sections 12, 11, 10, 9, 8, and 7, T27S/R15E, crossing onto the Shedd Canyon map, and continue west along the southern boundary lines of sections 12 and 11, T27S/R14E, to the intersection of the southern boundary line of section 11 with an unnamed unimproved road locally known as Shedd Canyon Road (within Shedd Canyon 0.1 mile west of State Route 41); then
</P>
<P>(14) Proceed northerly on Shedd Canyon Road approximately 3.2 miles, crossing onto the Shandon map, to the road's intersection with the southern boundary line of section 26, T26S/R14E; then
</P>
<P>(15) Proceed west along the southern boundary line of section 26, T26S/R14E, to the boundary line's intersection with the unnamed intermittent stream located within Shedd Canyon; then
</P>
<P>(16) Proceed northerly along the unnamed intermittent stream located within Shedd Canyon approximately 1.8 miles to the stream's intersection with the western boundary line of section 23, T26S/R14E; then
</P>
<P>(17) Proceed north along the western boundary lines of sections 23 and 14, T26S/R14E, approximately 0.6 mile to the section 14 boundary line's intersection with State Route 46; then
</P>
<P>(18) Proceed northeasterly in a straight line approximately 0.95 mile to the 1,481-foot “Estrella” elevation point, section 14, T26S/R14E; then
</P>
<P>(19) Proceed north-northwesterly in a straight line approximately 1.25 miles to the line's intersection with 1,300-foot elevation line and the northern boundary line of section 11, T26S/R14E; then
</P>
<P>(20) Proceed east along northern section boundary lines of sections 11 and 12, T26S/R14E, and the northern boundary lines of sections 7, 8, 9, and 10, T26S/R15E, approximately 5.9 miles in total distance and crossing onto the Cholame map, to the northeast corner of section 10, T26S/R15E (adjacent to State Routes 41/46); then
</P>
<P>(21) Proceed south along the eastern boundary line of section 10, T26S/R15E, approximately 1 mile to the section's southeast corner; then
</P>
<P>(22) Proceed west-southwesterly in a straight line approximately 1.8 miles, returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60965, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.246" NODE="27:1.0.1.1.7.3.45.226" TYPE="SECTION">
<HEAD>§ 9.246   San Miguel District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Miguel District.” For purposes of part 4 of this chapter, “San Miguel District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the San Miguel District viticultural area are titled:
</P>
<P>(1) San Miguel, Calif., 1948, photorevised 1979;
</P>
<P>(2) Paso Robles, Calif., 1948, photorevised 1979; and
</P>
<P>(3) Adelaida, Calif., 1948, photorevised 1978.
</P>
<P>(c) <I>Boundary.</I> The San Miguel District is located in San Luis Obispo County, California. The boundary of the San Miguel District is as described below:
</P>
<P>(1) The beginning point is on the San Miguel map at the intersection of U.S. Highway 101 and the San Luis Obispo-Monterey County boundary line, section 1, T25S/R11E. From the beginning point, proceed east along the San Luis Obispo-Monterey County line approximately 5.9 miles to the county line's intersection with San Jacinto Creek, section 1, T25S/R12E; then
</P>
<P>(2) Proceed south-southwesterly (downstream) along San Jacinto Creek for approximately 6.5 miles, crossing on to the Paso Robles map, to the creek's confluence with the Estrella River, section 26, T25S/R12E; then
</P>
<P>(3) Proceed southerly (upstream) 0.7 mile along the main channel of the Estrella River to the river's intersection with the southern boundary line of section 26, T25S/R12E; then
</P>
<P>(4) Proceed west along the southern boundary lines of sections 26, 27, and 28, T25S/R12E, approximately 1.85 miles to the section 28 boundary line's intersection with the Salinas River; then
</P>
<P>(5) Proceed southerly (upstream) along the main channel of the Salinas River approximately 1.6 miles to the river's intersection with an unnamed light-duty road locally known as Wellsona Road, section 4, T26S/R12E; then
</P>
<P>(6) Proceed west then northwesterly on Wellsona Road approximately 2 miles to the road's intersection with San Miguel Road (locally known as San Marcos Road), section 6, T26S/R12E; then
</P>
<P>(7) Proceed west-southwesterly on San Miguel Road (locally known as San Marcos Road) approximately 2.6 miles, crossing onto the Adelaida map, to the road's intersection with the eastern boundary line of the Camp Roberts Military Reservation (approximately 400 feet east of the road's intersection with Generals Road), section 2, T26S/R11E; then
</P>
<P>(8) Proceed northerly along the meandering eastern boundary line of the Camp Roberts Military Reservation (approximately 6.3 miles in straight line distance), crossing onto the San Miguel map, to the intersection of the military reservation's boundary line with U.S. Highway 101 near the northeast corner of section 7, T25S/R12E; then
</P>
<P>(9) Proceed northwesterly on U.S. Highway 101 approximately 1.55 miles, returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60966, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.247" NODE="27:1.0.1.1.7.3.45.227" TYPE="SECTION">
<HEAD>§ 9.247   Santa Margarita Ranch.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Santa Margarita Ranch.” For purposes of part 4 of this chapter, “Santa Margarita Ranch” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Santa Margarita Ranch viticultural area are titled:
</P>
<P>(1) Santa Margarita, Calif., 1965, revised 1993;
</P>
<P>(2) Lopez Mountain, CA, 1995;
</P>
<P>(3) San Luis Obispo, CA, 1995; and
</P>
<P>(4) Atascadero, CA, 1995.
</P>
<P>(c) <I>Boundary.</I> The Santa Margarita Ranch is located in San Luis Obispo County, California. The boundary of the Santa Margarita Ranch is as follows:
</P>
<P>(1) The beginning point is on the Santa Margarita map at the intersection of the northern boundary line of section 10, T29S/R13E, and the Salinas River. From the beginning point, proceed southerly (upstream) along the meandering Salinas River approximately 7.9 miles, crossing onto the Lopez Mountain map, to the river's intersection with the R13E/R14E boundary line, which coincides with the eastern boundary line of section 36, T29S/R13E; then
</P>
<P>(2) Proceed south along the R13E/R14E boundary line approximately 3.2 miles to the boundary line's first intersection with the Los Padres National Forest boundary line, section 13, T30S/R13E; then
</P>
<P>(3) Proceed northwesterly along the Los Padres National Forest boundary line approximately 4 miles to the Forest boundary line's intersection with the T29S/T30S boundary line, near the northwest corner of section 3, T30S/R13E; then
</P>
<P>(4) Proceed west along the Los Padres National Forest boundary line and then the T29S/T30S boundary line approximately 2 miles to the southwest corner of section 32, T29S/R13E; then
</P>
<P>(5) Proceed north along the western boundary line of section 32, T29S/R13E, and then the Los Padres National Forest boundary line to northwest corner of section 32 where the Forest boundary line makes a 90 degree turn to the west; then
</P>
<P>(6) Proceed west along the Los Padres National Forest boundary line approximately 1.5 miles, crossing onto the San Luis Obispo map, to the point where the Los Padres National Forest boundary line first dips to the south and is no longer concurrent with the northern boundary line of section 36, T29S/R12E; then
</P>
<P>(7) Proceed north-northwesterly in a straight line approximately 2.25 miles, crossing onto the Atascadero map, to the western-most intersection of the 1,400-foot elevation line with the northern boundary line of section 23, T29S/R12E; then
</P>
<P>(8) Proceed west along the northern boundary line of section 23, T29S/R12E, approximately 0.6 mile to the section's northeast corner; then
</P>
<P>(9) Proceed east along the western boundary line of section 13, T29S/R12E, to the section's northwest corner, and then continue east along the northern boundary line of section 13, T29S/R12E, to the section boundary line's intersection with the R12E/R13E common boundary line at section 13's northeast corner; then
</P>
<P>(10) Proceed due north along the R12E/R13E common boundary line approximately 0.75 mile to the boundary line's intersection with the T-intersection of two unnamed unimproved roads, locally known as Powerline Road and Santa Margarita Road; then
</P>
<P>(11) Proceed easterly and then east-northeasterly on Santa Margarita Road approximately 1.5 miles, crossing onto the Santa Margarita map, to the road's intersection with El Camino Real, Santa Margarita Land Grant, T29S/R13E; then
</P>
<P>(12) Proceed southeasterly on El Camino Real approximately 300 feet to the road's intersection with an unnamed light-duty road locally known as Asuncion Road at BM 931 (just south of Santa Margarita Creek), Santa Margarita Land Grant; then
</P>
<P>(13) Proceed northeasterly on Asuncion Road approximately 0.3 mile (crossing a railroad line) to the road's intersection with Chispa Road; then
</P>
<P>(14) Proceed due east in a straight line approximately 0.1 mile to the line's intersection with the boundary line of the Santa Margarita Land Grant, which, at this point, is concurrent with the southwestern boundary line of section 5, T29S/R13E; then
</P>
<P>(15) Proceed southeasterly along the Santa Margarita Land Grant boundary line approximately 0.7 mile to the boundary line's intersection with the northwest corner of section 9, T29S/R13E, and then continue east along the northern boundary lines of sections 9 and 10, T29S/R13E, approximately 1.15 miles, returning to the beginning point. 
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60967, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.248" NODE="27:1.0.1.1.7.3.45.228" TYPE="SECTION">
<HEAD>§ 9.248   Templeton Gap District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Templeton Gap District.” For purposes of part 4 of this chapter, “Templeton Gap District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of the Templeton Gap District viticultural area are titled:
</P>
<P>(1) Templeton, Calif., 1948, photorevised 1979; and
</P>
<P>(2) York Mountain, Calif., 1948, photorevised 1979.
</P>
<P>(c) <I>Boundary.</I> The Templeton Gap viticultural area is located in San Luis Obispo County, California. The boundary of the Templeton Gap District viticultural area is as follows:
</P>
<P>(1) The beginning point is on the northern portion of the Templeton map at the point where the marked southern city of Paso Robles Corporate Boundary line intersects the Salinas River (now very approximate to the point where Niblick Road crosses the Salinas River). From the beginning point, proceed southerly (upstream) along the Salinas River approximately 1.1 miles to the river's confluence with the first marked unnamed intermittent stream flowing from the east, Santa Ysabel Land Grant; then
</P>
<P>(2) Proceed southeasterly (upstream) along the unnamed intermittent stream approximately 0.4 mile to the stream's intersection with an unnamed light-duty road locally known as S. River Road, Santa Ysabel Land Grant; then
</P>
<P>(3) Proceed southeasterly then southerly on S. River Road approximately 2.2 miles to the road's intersection with an unnamed light-duty road locally known as Neal Springs Road, Santa Ysabel Land Grant; then
</P>
<P>(4) Proceed east on Neal Springs Roads approximately 0.4 mile to the road's intersection with an unnamed light-duty road locally known as Hollyhock Lane, Santa Ysabel Land Grant; then
</P>
<P>(5) Proceed south-southeasterly on Hollyhock Lane approximately 0.95 mile to the road's intersection with an unnamed light-duty road locally known as El Pomar Drive, Santa Ysabel Land Grant; then
</P>
<P>(6) Proceed southerly in a series of straight lines, totaling approximately 1.4 miles, through the 1,329-foot and 1,338-foot elevation points (crossing from the Santa Ysabel to the Asuncion Land Grants) to the 1,344-foot elevation point; then
</P>
<P>(7) Proceed southwesterly in a straight line approximately 0.3 mile to the elevation control point (marked by a triangle) above the 1,440-foot contour line, Asuncion Land Grant; then
</P>
<P>(8) Proceed south-southeasterly in a straight line approximately 0.3 mile to the 1,452-foot elevation point, and continue south-southwesterly in a straight line approximately 0.3 mile to the intersection of two light-duty roads locally known as S. El Pomar Road and Homestead Road, Asuncion Land Grant; then
</P>
<P>(9) Proceed west-southwesterly in a straight line approximately 1.1 miles to the point where an unnamed light-duty road locally known as Templeton Road intersects with an unnamed intermittent stream (where Templeton Road makes a 90 degree turn at its junction with two unnamed unimproved roads), Asuncion Land Grant; then
</P>
<P>(10) Proceed westerly (downstream) along the unnamed intermittent stream approximately 0.5 mile to the stream's confluence with the Salinas River, Asuncion Land Grant; then
</P>
<P>(11) Proceed westerly (downstream) along the Salinas River approximately 2.3 miles to the river's intersection with the boundary line of the Paso de Robles Land Grant; then
</P>
<P>(12) Proceed southwesterly along the boundary line of the Paso de Robles Land Grant approximately 2.3 miles to the point where the boundary line turns sharply to the northwest; then
</P>
<P>(13) Proceed northwesterly approximately 4.65 miles along the boundary line of the Paso de Robles Land Grant, crossing onto the York Mountain map, to the point where the boundary line turns due north (coincides with the southeast corner of section 32, T27S/R11E); then
</P>
<P>(14) Proceed north and then north-northeasterly along the boundary line of the Paso de Robles Land Grant approximately 1.5 miles to the point where the boundary line turns sharply to the northwest (coincides with the eastern-most point of section 20, T27S/R11E); then
</P>
<P>(15) Proceed northwesterly along the boundary line of the Paso de Robles Land Grant approximately 0.3 mile to the eastern-most fork of an unnamed three-fork tributary of the Jack Creek; then
</P>
<P>(16) Proceed northerly (downstream) along the unnamed intermittent tributary of Jack Creek approximately 0.15 mile to the tributary's confluence with Jack Creek, Paso de Robles Land Grant; then
</P>
<P>(17) Proceed southeasterly (downstream) along Jack Creek approximately 1.8 miles to the creek's intersection with an unnamed light-duty road locally known as Jack Creek Road (near BM 920), Paso de Robles Land Grant; then
</P>
<P>(18) Proceed northeasterly and then east-southeasterly along Jack Creek Road approximately 1 mile to the road's intersection with State Route 46; then
</P>
<P>(19) Proceed east on State Route 46 approximately 0.15 mile to the road's intersection with an unnamed light-duty road locally known as Hidden Valley Road, Paso de Robles Land Grant; then
</P>
<P>(20) Proceed southeasterly and then easterly on Hidden Valley Road approximately 2.2 miles, crossing onto the Templeton map, to the road's intersection with an unnamed light-duty road locally known as Vineyard Drive, Paso de Robles Land Grant; then
</P>
<P>(21) Proceed east on Vineyard Drive approximately 0.85 mile to the road's intersection with an unnamed light-duty road locally known as S. Bethel Road, Paso de Robles Land Grant; then
</P>
<P>(22) Proceed north-northeasterly on S. Bethel Road and then N. Bethel Road approximately 1.7 miles to the road's fifth intersection with an unnamed intermittent stream, Paso de Robles Land Grant; then
</P>
<P>(23) Proceed westerly (upstream) along the unnamed intermittent stream and then the stream's middle branch approximately 1.1 miles to the marked end of the stream, and then continue due west in a straight line approximately 0.05 mile to State Route 46 (Cayucos Road), Paso de Robles Land Grant; then
</P>
<P>(24) Proceed northeasterly on State Route 46 (Cayucos Road) approximately 0.8 mile to BM 924, Paso de Robles Land Grant; then
</P>
<P>(25) Proceed due north in a straight line to the southeast corner of section 12, T27S/R11E, and continue north along the eastern boundary line of section 12, a total of approximately 1.1 miles, to the section boundary line's intersection with a light-duty road locally known as Live Oak Road; then
</P>
<P>(26) Proceed easterly on Live Oak Road approximately 0.2 mile to the road's intersection with an unnamed intermittent stream, Paso de Robles Land Grant; then
</P>
<P>(27) Proceed northwesterly (upstream) along the unnamed intermittent stream approximately 0.35 mile to the eastern boundary line of section 12, T27S/R11E; then
</P>
<P>(28) Proceed north along the eastern boundary line of section 12, T27S/R11E, to the section's northeast corner, and then proceed east along the southern boundary line of section 6, T27S/R11E, a total of approximately 1.3 miles, to the intersection of the section 6 boundary line with an unnamed light-duty road locally known as Arbor Road; then
</P>
<P>(29) Proceed south-southeasterly on Arbor Road approximately 0.35 mile to the road's first intersection with an unnamed intermittent stream, Paso de Robles Land Grant; then
</P>
<P>(30) Proceed southeasterly and then easterly (downstream) along the unnamed intermittent stream approximately 1.4 miles to the stream's intersection with an unnamed light-duty road known locally as S. Vine Street, just west of the U.S. 101/State Route 46 interchange, Paso de Robles Land Grant; then
</P>
<P>(31) Proceed northerly along S. Vine Street (which generally parallels U.S. 101) approximately 1.8 miles to the street's intersection with the marked city of Paso Robles Corporate Boundary line (concurrent with the locally-known intersection of S. Vine and 1st Streets), Paso de Robles Land Grant; then
</P>
<P>(32) Proceed east along the marked city of Paso Robles Corporate Boundary line (now very approximate to the alignment of 1st Street and then Niblick Road) approximately 0.5 mile, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-125, 79 FR 60967, Oct. 9, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 9.249" NODE="27:1.0.1.1.7.3.45.229" TYPE="SECTION">
<HEAD>§ 9.249   The Rocks District of Milton-Freewater.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “The Rocks District of Milton-Freewater”. For purposes of part 4 of this chapter, “The Rocks District of Milton-Freewater” and “The Rocks of Milton-Freewater” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey 1:24,000 scale topographic maps used to determine the boundary of The Rocks District of Milton-Freewater viticultural area are titled:
</P>
<P>(1) Milton-Freewater, Oreg., 1964; and
</P>
<P>(2) Bowlus Hill, Oreg., 1964; photoinspected 1976.
</P>
<P>(c) <I>Boundary.</I> The Rocks District of Milton-Freewater viticultural area is located in Umatilla County, Oregon. The boundary of The Rocks District of Milton-Freewater viticultural area is as follows:
</P>
<P>(1) The beginning point is found on the Milton-Freewater map at the intersection of an unnamed medium-duty road known locally as Freewater Highway (State Route 339) and an unnamed light-duty road known locally as Crockett Road, section 26, T6N/R35E. From the beginning point, proceed east-southeasterly in a straight line for 0.8 mile to the intersection of State Highway 11 (Oregon-Washington Highway) and an unnamed light-duty road known locally as Appleton Road, section 25, T6N/R35E; then
</P>
<P>(2) Proceed southeasterly in a straight line for 1.05 miles, crossing onto the Bowlus Hill map, to the intersection of three unnamed light-duty roads known locally as Grant Road, Turbyne Road, and Pratt Lane on the common boundary between section 36, T6N/R35E, and section 31, T5N/R36E; then
</P>
<P>(3) Proceed southwesterly in a straight line for 1.1 miles, crossing back onto the Milton-Freewater map, to the intersection of the Union Pacific railroad tracks with the Walla Walla River, section 1, T5N/R35E; then
</P>
<P>(4) Proceed southwesterly and then west-northwesterly along the Union Pacific railroad tracks for 1.2 miles to the intersection of the railroad tracks with the 980-foot elevation contour line, approximately 0.15 mile west of Lamb Street, section 2, T5N/R35E; then
</P>
<P>(5) Proceed west-northwesterly in a straight line for 2.25 miles to the intersection of the 840-foot elevation contour line and an unnamed light-duty road known locally as Lower Dry Creek Road, section 33, T6N/R35E; then
</P>
<P>(6) Proceed northwesterly in a straight line for 0.8 mile to the intersection of the 800-foot elevation contour line with an unnamed light-duty road running north-south in section 32, T6N/R35E; then
</P>
<P>(7) Proceed easterly in a straight line for 0.9 mile to the intersection of the 840-foot elevation contour line with the Hudson Bay Canal, section 33, T6N/R35E; then
</P>
<P>(8) Proceed due north in a straight line for 0.25 mile to the line's intersection with Sunnyside Road, section 33, T6N/T35E; then
</P>
<P>(9) Proceed northeasterly in a straight line for 0.5 mile to the intersection of the 840-foot elevation contour line with an unnamed medium-duty road known locally as State Highway 332 (Umapine Highway), eastern boundary of section 28, R6N/T35E; then
</P>
<P>(10) Proceed east-northeasterly in a straight line for 0.3 mile to the intersection of three unnamed light-duty roads known locally as Triangle Road, Hodgen Road, and Appleton Road, section 27, T6N/R35E; then
</P>
<P>(11) Proceed east-northeasterly in a straight line for 1.25 miles, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-127, 80 FR 6906, Feb. 9, 2015]


</CITA>
</DIV8>


<DIV8 N="§ 9.250" NODE="27:1.0.1.1.7.3.45.230" TYPE="SECTION">
<HEAD>§ 9.250   Fountaingrove District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Fountaingrove District.” For purposes of part 4 of this chapter, “Fountaingrove District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Fountaingrove District viticultural area are titled:
</P>
<P>(1) Mark West Springs, CA; 1993;
</P>
<P>(2) Calistoga, CA; 1997;
</P>
<P>(3) Kenwood, CA; 1954; photorevised 1980; and
</P>
<P>(4) Santa Rosa, CA; 1994.
</P>
<P>(c) <I>Boundary.</I> The Fountaingrove District viticultural area is located in Sonoma County, California. The boundary of the Fountaingrove District viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Mark West Springs map at the intersection of the shared Sonoma-Napa County line with Petrified Forest Road, section 3, T8N/R7W.
</P>
<P>(2) From the beginning point, proceed southeasterly along the Sonoma-Napa County line, crossing onto the Calistoga map and then the Kenwood map, to the marked 2,530-peak of an unnamed mountain, section 9, T7N/R6W; then
</P>
<P>(3) Proceed west-southwest in a straight line to the marked 2,730-foot summit of Mt. Hood, section 8, T7N/R6W; then
</P>
<P>(4) Proceed west-northwest in a straight line to the marked 1,542-foot summit of Buzzard Peak, section 11, T7N/R7W; then
</P>
<P>(5) Proceed west-southwest in a straight line, crossing onto the Santa Rosa map, to the intersection of State Highway 12 and Los Alamos Road; then
</P>
<P>(6) Proceed due north in a straight line to the southern boundary of section 9, T7N/R7W; then
</P>
<P>(7) Proceed west-northwest along the southern boundaries of sections 9, 4, and 5, T7N/R7W, to the western boundary of the Los Guilicos Land Grant; then
</P>
<P>(8) Proceed west-southwest along the southern boundaries of sections 5, 6, and 7, T7N/R7W; then continue west-southwest along the southern boundaries of sections 12 and 11, T7N/R8W, to the point where the section 11 boundary becomes concurrent with an unnamed light-duty road known locally as Lewis Road; and then continue west-southwest along Lewis Road to the road's intersection with Mendocino Avenue in Santa Rosa; then
</P>
<P>(9) Proceed north-northwesterly along Mendocino Avenue to the road's intersection with an unnamed road known locally as Bicentennial Way; then
</P>
<P>(10) Proceed north in a straight line, crossing through the marked 906-foot elevation peak in section 35, T8N/R8W, and, crossing on to the Mark West Springs map, continue to the line's intersection with Mark West Springs Road, section 26, T8N/R8W; then
</P>
<P>(11) Proceed northerly along Mark West Springs Road, which turns easterly and becomes Porter Creek Road, to the road's intersection with Franz Valley Road, section 12, T8N/R8W; then
</P>
<P>(12) Proceed northeasterly along Franz Valley Road to the western boundary of section 6, T8N/R7W; then
</P>
<P>(13) Proceed south along the western boundary of section 6, T8N/R7W, to the southwest corner of section 6; then
</P>
<P>(14) Proceed east, then east-northeast along the southern boundaries of sections 6, 5, and 4, T8N/R7W, to the southeast corner of section 4; then
</P>
<P>(15) Proceed north along the eastern boundary of section 4, T8N/R7W, to the Sonoma-Napa County line; then
</P>
<P>(16) Proceed easterly along the Sonoma-Napa County line to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-128, 80 FR 8531, Feb. 18, 2015]


</CITA>
</DIV8>


<DIV8 N="§ 9.251" NODE="27:1.0.1.1.7.3.45.231" TYPE="SECTION">
<HEAD>§ 9.251   Squaw Valley-Miramonte.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Squaw Valley-Miramonte.” For purposes of part 4 of this chapter, “Squaw Valley-Miramonte” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Squaw Valley-Miramonte viticultural area are titled:
</P>
<P>(1) Orange Cove North, Calif., 1966;
</P>
<P>(2) Pine Flat Dam, Calif., 1965; photoinspected 1978;
</P>
<P>(3) Luckett Mtn., Calif., provisional edition 1987;
</P>
<P>(4) Verplank Ridge, Calif., provisional edition 1987;
</P>
<P>(5) Miramonte, Calif., 1966; and
</P>
<P>(6) Tucker Mtn., Calif., 1966.
</P>
<P>(c) <I>Boundary.</I> The Squaw Valley-Miramonte viticultural area is located in Fresno County, California. The boundary of the Squaw Valley-Miramonte viticultural area is as described below:
</P>
<P>(1) The beginning point is located on the Orange Cove North map, at the southwest corner of section 21, T14S/R25E. From the beginning point, proceed north-northwesterly in a straight line to the marked 3,355-foot elevation point on Bear Mountain, section 5, T14S/R25E; then
</P>
<P>(2) Proceed northeast in a straight line, crossing onto the Pine Flat Dam map and over the marked 3,354-foot elevation point on Bear Mountain, section 32, T13S/R25E, and then continuing northeasterly in a straight line and crossing onto the Luckett Mountain map, proceed to the marked 3,489-foot summit of Dalton Mountain, section 22, T13S/R25E; then
</P>
<P>(3) Proceed easterly in a straight line to the Sequoia National Forest boundary line at the northwest corner of section 28, T13S/R26E; then
</P>
<P>(4) Proceed east along the Sequoia National Forest boundary line, crossing onto the Verplank Ridge map, and continue south, then east, then south along the national forest boundary line, crossing onto the Miramonte map, and then continue south, then east along the national forest boundary line to the northeast corner of section 5, T14S/R27E; then
</P>
<P>(5) Proceed south along the eastern boundary lines of sections 5, 8, and 17, T14S/R27E, to the southeast corner of section 17; then
</P>
<P>(6) Proceed east along the northern boundary line of section 21, T14S/R27E, to the northeast corner of that section; then
</P>
<P>(7) Proceed south along the eastern boundary lines of sections 21, 28, and 33, T14S/R27E, to the Fresno-Tulare County boundary line at the southeast corner of section 33; then
</P>
<P>(8) Proceed west along the Fresno-Tulare County boundary line, crossing onto the Tucker Mountain map, to the southwest corner of section 34, T14S/R26E; then
</P>
<P>(9) Proceed north along the western boundary lines of sections 34, 27, 22, and 15, T14S/R26E, to the northwest corner of section 15; then
</P>
<P>(10) Proceed west along the southern boundary lines of sections 9, 8, and 7, T14S/R26E, and sections 12 and 11, T14S/R25E, to the southwest corner of section 11; then
</P>
<P>(11) Proceed south along the eastern boundary lines of sections 15 and 22, T14S/R25E, to the southeast corner of section 22; then (12) Proceed west along the southern boundary line of section 22, T14S/R25E, and, crossing onto the Orange Cove North map, continue west along the southern boundary line of section 21, T14S/R25E, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-129, 80 FR 47409, Aug. 7, 2015]


</CITA>
</DIV8>


<DIV8 N="§ 9.252" NODE="27:1.0.1.1.7.3.45.232" TYPE="SECTION">
<HEAD>§ 9.252   Eagle Foothills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Eagle Foothills”. For purposes of part 4 of this chapter, “Eagle Foothills” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 6 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Eagle Foothills viticultural area are titled:
</P>
<P>(1) Southwest Emmett, Idaho, 1970;
</P>
<P>(2) Southeast Emmett, Idaho, provisional edition 1985;
</P>
<P>(3) Pearl, Idaho, provisional edition 1985;
</P>
<P>(4) Eagle, Idaho, 1998;
</P>
<P>(5) Star, Idaho, 1953; and
</P>
<P>(6) Middleton, Idaho, 1958; photorevised 1971.
</P>
<P>(c) <I>Boundary.</I> The Eagle Foothills viticultural area is located in Gem and Ada Counties in Idaho. The boundary of the Eagle Foothills viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Southwest Emmett map at the intersection of the Ada, Gem, and Canyon County lines at the southwestern corner of section 31, T6N/R1W.
</P>
<P>(2) From the beginning point, proceed north along the western boundary of section 31 to the southwest corner of section 30, T6N/R1W; then
</P>
<P>(3) Proceed north-northeast in a straight line to the marked 3,109-foot elevation point near the southwest corner of section 30, T6N/R1W; then


</P>
<P>(4) Proceed northeast in a straight line, crossing onto the Southeast Emmett map, to the marked 3,230-foot elevation point in section 22, T6N/R1W; then
</P>
<P>(5) Proceed east-northeast in a straight line to the marked 3,258-foot elevation point in section 23, T6N/R1W; then
</P>
<P>(6) Proceed easterly in a straight line to the 3,493-foot elevation point in section 23, T6N/R1W; then
</P>
<P>(7) Proceed northeast in a straight line to the 3,481-foot elevation point in section 13, T6N/R1W; then
</P>
<P>(8) Proceed northeast in a straight line to the intersection of the marked 4-wheel drive trail with the R1W range line; then
</P>
<P>(9) Proceed north along the R1W range line to its first intersection with the 3,400-foot elevation contour; then
</P>
<P>(10) Proceed east along the meandering 3,400-foot elevation contour, crossing onto the Pearl map, then continuing easterly, then southerly, along the meandering 3,400-foot elevation contour, crossing Schiller Creek, the North and South Forks of Willow Creek, and Big Gulch Creek, to the first intersection of the 3,400-foot contour line with the R1E/R2E range line, which forms the eastern boundary of section 13, T5N/R1E; then
</P>
<P>(11) Proceed southeast in a straight line to the marked 3,613-foot elevation in point Section 18, T5N/R2E; then
</P>
<P>(12) Proceed southwest in a straight line to the marked 3,426-foot elevation point in Section 24, T5N/R1E; then
</P>
<P>(13) Proceed west in a straight line to the marked 3,416-foot elevation point in Section 24, T5N/R1E; then
</P>
<P>(14) Proceed west in a straight line to the marked 3,119-foot elevation point in Section 23, T5N/R1E; then
</P>
<P>(15) Proceed south in a straight line to the marked 3,366-foot elevation point in Section 23, T5N/R1E; then
</P>
<P>(16) Proceed southwest in a straight line, crossing onto the Eagle map, to the marked 3,372-foot elevation point in Section 26, T5N/R1E; then
</P>
<P>(17) Proceed northwest in a straight line, crossing back onto the Pearl map, to the marked 3,228-foot elevation point in Section 22, T5N/R1E; then
</P>
<P>(18) Proceed southwest in a straight line to the marked 3,205-foot elevation point in Section 22, T5N/R1E; then
</P>
<P>(19) Proceed south in a straight line, crossing onto the Eagle map, to the marked 3,163-foot elevation point in Section 27, T5N/R1E; then
</P>
<P>(20) Proceed southwest in a straight line to the marked 2,958-foot elevation point in Section 28, T5N/R1E; then
</P>
<P>(21) Proceed southwest in a straight line to the northeast corner of section 32, T5N/R1E; then
</P>
<P>(22) Proceed south along the eastern boundary of Section 32 to the point where the boundary joins Pearl Road, then continue south along Pearl Road to the intersection of the road with Beacon Road; then
</P>
<P>(23) Proceed west along Beacon Road, crossing onto the Star map, to the intersection of Beacon Road with an unnamed light-duty road known locally as North Wing Road at the southern boundary of section 32, T5N/R1W; then
</P>
<P>(24) Proceed south along North Wing Road to the intersection of the road with New Hope Road in Section 5, T4N/R1W; then
</P>
<P>(25) Proceed west along New Hope Road, crossing onto the Middleton map, to the intersection of the road with the Ada-Canyon County line; then
</P>
<P>(26) Proceed north along the Ada-Canyon County line, crossing onto the Southwest Emmett map, to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-131, 80 FR 73660, Nov. 25, 2015; T.D. TTB-196 , 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.253" NODE="27:1.0.1.1.7.3.45.233" TYPE="SECTION">
<HEAD>§ 9.253   Los Olivos District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Los Olivos District”. For purposes of part 4 of this chapter, “Los Olivos District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Los Olivos District viticultural area are titled:
</P>
<P>(1) Los Olivos, CA, 1995;
</P>
<P>(2) Zaca Creek, Calif., 1959;
</P>
<P>(3) Solvang, CA, 1995; and
</P>
<P>(4) Santa Ynez, CA, 1995.
</P>
<P>(c) <I>Boundary.</I> The Los Olivos District viticultural area is located in Santa Barbara County, California. The boundary of the Los Olivos District viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Los Olivos map at the intersection of Foxen Canyon Road with California State Road 154 (known locally as San Marcos Pass Road/Chumash Highway), section 23, T7N/R31W.
</P>
<P>(2) From the beginning point, proceed southwesterly in a straight line approximately 0.3 mile, crossing onto the Zaca Creek map, to the intersection of Ballard Canyon Road and an unnamed, unimproved road known locally as Los Olivos Meadows Drive, T7N/R31W; then
</P>
<P>(3) Proceed south-southeasterly in a straight line approximately 1 mile, crossing onto the Los Olivos map, to a marked, unnamed structure within a circular-shaped 920-foot contour line in the southwest corner of section 26, T7N/R31W; then
</P>
<P>(4) Proceed south-southwesterly in a straight line approximately 1.25 miles, crossing onto the Zaca Creek map, to the point marked by the “Ball” 801-foot elevation control point, T6N/R31W; then
</P>
<P>(5) Proceed south-southwesterly in a straight line approximately 1.45 miles, crossing onto the Solvang map, to a marked, unnamed 775-foot peak, T6N/R31W; then
</P>
<P>(6) Proceed south-southwesterly in a straight line approximately 0.55 mile to a marked communication tower located within the 760-foot contour line, T6N/R31W; then
</P>
<P>(7) Proceed south-southeasterly in a straight line approximately 0.6 mile to the intersection of Chalk Hill Road with an unnamed creek descending from Adobe Canyon, northwest of the unnamed road known locally as Fredensborg Canyon Road, T6N/R31W; then
</P>
<P>(8) Proceed southwesterly (downstream) along the creek approximately 1 mile to the creek's intersection with the Santa Ynez River, T6N/R31W; then
</P>
<P>(9) Proceed easterly (upstream) along the Santa Ynez River approximately 8 miles, crossing onto the Santa Ynez map, to the river's intersection with State Highway 154, T6N/R30W; then
</P>
<P>(10) Proceed north-northwest in a straight line approximately 1.2 miles to the marked 924-foot elevation point, T6R/R30W; then
</P>
<P>(11) Proceed north-northwest in a straight line 1.2 miles to the “Y” in an unimproved road 0.1 mile south of the 800-foot contour line, west of Happy Canyon Road, T6R/R30W; then
</P>
<P>(12) Proceed north-northwest in a straight line for 0.5 mile, crossing onto the Los Olivos map, and continuing approximately 2.3 miles to the third intersection of the line with the 1,000-foot contour line northwest of BM 812, T7N/R30W; then
</P>
<P>(13) Proceed westerly along the meandering 1,000-foot contour line to the contour line's intersection with an unnamed, unimproved road, an unnamed light-duty road, and the northern boundary line of section 23, T7N/R31W; then
</P>
<P>(14) Proceed northerly, then westerly, along the unnamed, unimproved road to Figueroa Mountain Road, near the marked 895-foot elevation, T7N/R31W; then
</P>
<P>(15) Proceed north on Figueroa Mountain Road approximately 400 feet to the 920-foot contour line, T7N/R31W; then
</P>
<P>(16) Proceed initially south, then northwesterly along the meandering 920-foot contour line, crossing onto the Zaca Creek map, to Foxen Canyon Road, T7N/R31W; then
</P>
<P>(17) Proceed southeasterly on Foxen Canyon Road approximately 1.7 miles, crossing onto the Los Olivos map, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-132, 81 FR 3329, Jan. 21, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.254" NODE="27:1.0.1.1.7.3.45.234" TYPE="SECTION">
<HEAD>§ 9.254   Lamorinda.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lamorinda”. For purposes of part 4 of this chapter, “Lamorinda” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Lamorinda viticultural area are titled:
</P>
<P>(1) Walnut Creek, CA, 1995;
</P>
<P>(2) Las Trampas Ridge, CA, 1995;
</P>
<P>(3) Oakland East, CA, 1997; and
</P>
<P>(4) Briones Valley, CA, 1995.
</P>
<P>(c) <I>Boundary.</I> The Lamorinda viticultural area is located in Contra Costa County, California. The boundary of the Lamorinda viticultural area is as described below:
</P>
<P>(1) The beginning point is on Walnut Creek map at the water tank (known locally as the Withers Reservoir) at the end of an unnamed light-duty road known locally as Kim Road, in the Cañada del Hambre y Las Bolsas Land Grant.
</P>
<P>(2) From the beginning point, proceed south-southeast in a straight line approximately 0.8 mile to the 833-foot peak marked “Hump 2;” then
</P>
<P>(3) Proceed southeast in a straight line approximately 1.7 miles to the marked 781-foot peak south of the shared Lafayette-Walnut Creek corporate boundary line and north of an unnamed light-duty road known locally as Peaceful Lane; then
</P>
<P>(4) Proceed southeast in a straight line approximately 0.3 mile to the marked 610-foot peak southwest of an unnamed light-duty road known locally as Secluded Place; then
</P>
<P>(5) Proceed south-southwest in a straight line approximately 1.7 miles to an unidentified benchmark at the end of an unnamed unimproved road known locally as Diablo Oaks Way in section 33, T1N/R2W; then
</P>
<P>(6) Proceed southeast in a straight line approximately 0.5 mile, crossing onto the Las Trampas map, and continuing another 0.9 mile to the substation at the southeast corner of section 4, T1S/R2W; then
</P>
<P>(7) Proceed southeast in a straight line approximately 2.3 miles to the 1,827-foot summit of Las Trampas Peak, section 22, T1S/R2W; then
</P>
<P>(8) Proceed south-southeast in a straight line approximately 2.1 miles to the 2,024-foot benchmark marked “Rock 2” in section 26, T1S/R2W; then
</P>
<P>(9) Proceed west-southwest in a straight line approximately 2.7 miles to the marked 1,057-foot peak in section 29, T1S/R2W; then
</P>
<P>(10) Proceed west-southwest in a straight line approximately 2 miles to the intersection of the 1,000-foot elevation line with the Contra Costa-Alameda County line in section 31, T1S/R2W; then
</P>
<P>(11) Proceed northwest in a straight line approximately 0.4 mile, crossing onto the Oakland East map, then continuing another 0.1 mile to the 1,121-foot peak in section 30, T1S/R2W; then
</P>
<P>(12) Proceed northwest in a straight line approximately 3.6 miles to the 1,301-foot peak in section 15, T1S/R3W; then
</P>
<P>(13) Proceed northwest in a straight line approximately 1.6 miles to the 1,634-foot peak in section 9, T1S/R3W; then
</P>
<P>(14) Proceed northwest in a straight line approximately 2.2 miles to the communication tower on the Contra Costa-Alameda County line in section 5, T1S/R3W; then
</P>
<P>(15) Proceed north in a straight line approximately 0.1 mile, crossing onto the Briones Valley map, then continuing another 0.6 mile to the 1,905-foot summit of Vollmer Peak in the El Sobrante Land Grant; then
</P>
<P>(16) Proceed north-northeast in a straight line approximately 3 miles, crossing over to the 1,027-foot peak in the Boca de la Cañada del Pinole Land Grant, to the Orinda corporate boundary line; then
</P>
<P>(17) Proceed generally east along the Orinda corporate boundary line approximately 3.3 miles to the water tank at the 1,142-foot elevation in the Boca de la Cañada del Pinole Land Grant; then
</P>
<P>(18) Proceed east-northeast in a straight line approximately 1.2 miles to the 1,357-foot benchmark marked “Russell” in the Boca de la Cañada del Pinole Land Grant; then
</P>
<P>(19) Proceed northwest in a straight line approximately 0.8 mile to the 1,405-foot peak in the Boca de la Cañada del Pinole Land Grant; then
</P>
<P>(20) Proceed east-northeast in a straight line approximately 0.5 mile, crossing onto the Walnut Creek map, then continuing another 1.1 miles to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-133, 81 FR 9108, Feb. 24, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.255" NODE="27:1.0.1.1.7.3.45.235" TYPE="SECTION">
<HEAD>§ 9.255   Loess Hills District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Loess Hills District”. For purposes of part 4 of this chapter, “Loess Hills District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 13 United States Geological Survey (USGS) 1:100,000 scale topographic maps used to determine the boundary of the Loess Hills District viticultural area are titled:
</P>
<P>(1) Rock Rapids, Iowa-South Dakota, 1985;
</P>
<P>(2) Sioux City North, Iowa-South Dakota-Nebraska, 1986; photoinspected 1990;
</P>
<P>(3) Storm Lake, Iowa, 1985; photoinspected 1990;
</P>
<P>(4) Ida Grove, Iowa, 1985; photoinspected 1990;
</P>
<P>(5) Carroll, Iowa, 1993;
</P>
<P>(6) Guthrie Center, Iowa, 1993;
</P>
<P>(7) Creston, Iowa, 1993;
</P>
<P>(8) Omaha, Nebraska-Iowa, 1985; photoinspected, 1990;
</P>
<P>(9) Nebraska City, Nebraska-Iowa-Missouri, 1993;
</P>
<P>(10) Falls City, Nebraska-Missouri, 1986; photoinspected 1991;
</P>
<P>(11) Harlan, Iowa-Nebraska, 1980;
</P>
<P>(12) Blair, Nebraska-Iowa, 1986; photoinspected 1988; and
</P>
<P>(13) Sioux City South, Iowa-Nebraska-South Dakota, 1986; photoinspected 1990.
</P>
<P>(c) <I>Boundary.</I> The Loess Hills District viticultural area is located in Fremont, Page, Mills, Montgomery, Pottawattamie, Cass, Harrison, Shelby, Audubon, Monona, Crawford, Carroll, Woodbury, Ida, Sac, Plymouth, and Sioux Counties in western Iowa and Atchison and Holt Counties in northwestern Missouri. The boundary of the Loess Hills District viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Rock Rapids, Iowa-South Dakota map, in Sioux County, Iowa, at the intersection of the Big Sioux River and an unnamed road known locally as County Road B30 (360th Street), east of Hudson, South Dakota. From the beginning point, proceed east on County Road B30 approximately 3 miles to a road known locally as County Road K22 (Coolidge Avenue); then
</P>
<P>(2) Proceed south on County Road K22 approximately 3 miles to a road known locally as County Road B40 (390th Street); then
</P>
<P>(3) Proceed east on County Road B40 approximately 4 miles to a road known locally as County Road K30 (Eagle Avenue); then
</P>
<P>(4) Proceed south on County Road K30 approximately 13.1 miles, crossing onto the Sioux City North, Iowa-South Dakota-Nebraska map and continuing into Plymouth County, Iowa, to a road known locally as County Road C12 (110th Street), at Craig, Iowa; then
</P>
<P>(5) Proceed east on County Road C12 approximately 2 miles to a road known locally as County Road K42 (Jade Avenue), at the marked 436-meter elevation point; then
</P>
<P>(6) Proceed south on County Road K42 approximately 10 miles to a road known locally as County Road C38; then
</P>
<P>(7) Proceed east on County Road C38 approximately 6.4 miles to a road known locally as County Road K49 (7th Avenue SE), approximately 2 miles south of La Mars, Iowa; then
</P>
<P>(8) Proceed south on County Road K49 approximately 4 miles to a road known locally as County Road C44 (230th Street); then
</P>
<P>(9) Proceed east on County Road C44 approximately 5 miles to a road known locally as County Road K64 (Oyens Avenue); then
</P>
<P>(10) Proceed south on County Road K64 approximately 4.1 miles to a road known locally as County Road C60 (290th Street); then
</P>
<P>(11) Proceed east on County Road C60 approximately 5 miles, crossing onto the Storm Lake, Iowa map, to State Highway 140; then
</P>
<P>(12) Proceed south on State Highway 140 approximately 3.2 miles to a road known locally as County Road L14 (Knox Avenue) in Kingsley, Iowa; then
</P>
<P>(13) Proceed south on County Road L14 approximately 2.7 miles, crossing into Woodbury County, Iowa, to a road known locally as County Road D12 (110th Street); then
</P>
<P>(14) Proceed east on County Road D12 approximately 5 miles to a road known locally as County Road L25 (Minnesota Avenue) near Pierson, Iowa; then
</P>
<P>(15) Proceed south on County Road L25 approximately 4.5 miles, crossing onto the Ida Grove, Iowa map, to U.S. Highway 20; then
</P>
<P>(16) Proceed east on U.S. Highway 20 approximately 22.5 miles, crossing into Ida County, Iowa, to a road known locally as County Road M25 (Market Avenue); then
</P>
<P>(17) Proceed south on County Road M25 approximately 9.8 miles to State Highway 175 east of Ida Grove, Iowa; then
</P>
<P>(18) Proceed east on State Highway 175 approximately 4.1 miles to a road known locally as Country Highway M31 (Quail Avenue) near Arthur, Iowa; then
</P>
<P>(19) Proceed south on Country Highway M31 approximately 4.4 miles to a road known locally as County Road D59 (300th Street); then
</P>
<P>(20) Proceed east on County Road D59 approximately 13 miles, crossing into Sac County, Iowa, to a road known locally as County Road M64 (Needham Avenue/Center Street) at Wall Lake, Iowa; then
</P>
<P>(21) Proceed south on County Road M64 approximately 6.2 miles to a road known locally as County Road E16 (120th Street); then
</P>
<P>(22) Proceed east into Carroll County, Iowa, on County Road E16 approximately 6 miles, crossing onto the Carroll, Iowa map, to Breda, Iowa, and then continue east on State Highway 217 (East Main Street) approximately 5 miles to U.S. Highway 71; then
</P>
<P>(23) Proceed south on U.S. Highway 71 approximately 3 miles to a road known locally as County Road E26 (140th Street); then
</P>
<P>(24) Proceed east on County Road E26 approximately 5 miles to a road known locally as County Road N38 (Quail Avenue); then
</P>
<P>(25) Proceed south on County Road N38 approximately 5 miles to U.S. Highway 30 (Lincoln Highway); then
</P>
<P>(26) Proceed east on U.S. Highway 30 approximately 3 miles to a road known locally as County Road N44 (Colorado Street) in Glidden, Iowa; then
</P>
<P>(27) Proceed south on County Road N44 approximately 8 miles, crossing onto the Guthrie Center, Iowa map, to a road known locally as County Road E57 (280th Street); then
</P>
<P>(28) Proceed east on County Road E57 approximately 2 miles to a road known locally as County Road N44 (Velvet Avenue); then
</P>
<P>(29) Proceed south on County Road N44 approximately 5.4 miles to State Highway 141 (330th Street) at Coon Rapids, Iowa; then
</P>
<P>(30) Proceed west on State Highway 141 approximately 12 miles to U.S. Highway 71 at Lynx Avenue southeast of Templeton, Iowa; then
</P>
<P>(31) Proceed south on U.S. Highway 71 approximately 35.9 miles, crossing into Audubon County, Iowa, and then Cass County, Iowa, and onto the Creston, Iowa map, to U.S. Highway 6/State Highway 83 east of Atlantic, Iowa; then
</P>
<P>(32) Proceed west, then southwest, then west on U.S. Highway 6 approximately 18.9 miles, crossing onto the Omaha, Nebraska-Iowa map and into Pottawattamie County, Iowa, to a road known locally as County Road M47 (500th Street) approximately 1 mile west of Walnut Creek; then
</P>
<P>(33) Proceed south on County Road M47 approximately 12 miles, crossing into Montgomery County, Iowa to a road known locally as County Road H12 (110th Street); then
</P>
<P>(34) Proceed west on County Road H12 approximately 8.9 miles, crossing into Mills County, Iowa, to U.S. Highway 59; then
</P>
<P>(35) Proceed south on U.S. Highway 59 approximately 20.2 miles, crossing onto the Nebraska City, Nebraska-Iowa-Missouri map and into Page County, Iowa, to a road known locally as County Road J14 (130th Street); then
</P>
<P>(36) Proceed east on County Road J14 approximately 4 miles to a road known locally as County Road M41 (D Avenue); then
</P>
<P>(37) Proceed south on County Road M41 approximately 1.7 miles to State Highway 48 at Essex, Iowa; then
</P>
<P>(38) Proceed northeast then east on State Highway 48 approximately 1.2 miles to a road known locally as County Road M41 (E Avenue); then
</P>
<P>(39) Proceed south on County Road M41 approximately 7 miles to State Highway 2 (210th Street); then
</P>
<P>(40) Proceed east on State Highway 2 approximately 8 miles to a road known locally as M Avenue; then
</P>
<P>(41) Proceed south on M Avenue, then east on a road known locally as County Road M60 (Maple Avenue), approximately 6.4 total miles, to a road known locally as County Road J52 (270th Street); then
</P>
<P>(42) Proceed south in a straight line approximately 3.5 miles to the intersection of 304th Street and Maple Avenue (approximately 1.2 miles southwest of College Springs, Iowa), and then continue south on Maple Avenue for 0.5 mile to a road known locally as County Road J64 (310th Street); then
</P>
<P>(43) Proceed west on County Road J64 approximately 4.5 miles to a road known locally as County Road M48 (Hackberry Avenue); then
</P>
<P>(44) Proceed south on County Road M48 approximately 1.2 miles to the Iowa-Missouri State line at Blanchard, Iowa, and, crossing into Atchison County, Missouri, where County Road M48 becomes State Road M, and continue generally south on State Road M approximately 11.2 miles, crossing onto the Falls City, Nebraska-Missouri map, to U.S. Highway 136; then
</P>
<P>(45) Proceed west on U.S. Highway 136 approximately 1 mile to State Road N; then
</P>
<P>(46) Proceed south on State Road N 15 miles, crossing into Holt County, Missouri, to State Road C; then
</P>
<P>(47) Proceed west then south on State Road C approximately 3 miles to U.S. Highway 59; then
</P>
<P>(48) Proceed northwest on U.S. Highway 59 approximately 2 miles to the highway's first intersection with Interstate Highway 29 near Craig, Missouri; then
</P>
<P>(49) Proceed generally north along Interstate Highway 29, crossing into Atchison County, Missouri, and onto the Nebraska City, Nebraska-Iowa-Missouri map, and continuing into Freemont County and Mills County, Iowa, then crossing onto the Omaha, Nebraska-Iowa map and into Pottawattamie County, Iowa; then crossing onto the Harlan, Iowa-Nebraska map and into Harrison County, Iowa; then continuing onto the Blair, Nebraska-Iowa map and into Monona County, Iowa; then crossing onto the Sioux City South, Iowa-Nebraska-South Dakota Map and into Woodbury County for a total of approximately 185 miles, to the intersection of Interstate Highway 29 with the Big Sioux River at Sioux City, Iowa; then
</P>
<P>(50) Proceed generally north (upstream) along the meandering Big Sioux River, crossing onto the Sioux City North, Iowa-South Dakota-Nebraska map and into Plymouth County and Sioux County, Iowa, and continuing onto the Rock Rapids, Iowa-South Dakota map for a total of approximately 50 miles, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D.TTB-135, 81 FR 11115, Mar. 3, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.256" NODE="27:1.0.1.1.7.3.45.236" TYPE="SECTION">
<HEAD>§ 9.256   Lewis-Clark Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lewis-Clark Valley”. For purposes of part 4 of this chapter, “Lewis-Clark Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geographical Survey (USGS) 1:100,000 (metric) scale topographic maps used to determine the boundary of the Lewis-Clark Valley viticultural area are titled:
</P>
<P>(1) Clarkston, Wash.-Idaho-Oregon, 1981;
</P>
<P>(2) Orofino, Idaho-Washington, 1981; and
</P>
<P>(3) Potlatch, Idaho, 1981.
</P>
<P>(c) <I>Boundary.</I> The Lewis-Clark Valley viticultural area is located in Nez Perce, Lewis, Clearwater, and Latah Counties, Idaho, and Asotin, Garfield, and Whitman Counties, Washington. The boundary of the Lewis-Clark Valley viticultural area is as follows:
</P>
<P>(1) The beginning point is located on the Clarkston map in Washington State along the Garfield-Asotin County line at the southwest corner of section 18, T11N/R45E. From the beginning point, proceed east along the southern boundary line of section 18, crossing over the Snake River, and continue along the southern boundary line of section 17, T11N/R45E, to the southeast corner of section 17; then
</P>
<P>(2) Proceed north along the eastern boundary line of section 17 to the 600-meter elevation contour; then
</P>
<P>(3) Proceed generally east-northeast along the meandering 600-meter elevation contour, crossing into Idaho and onto the Orofino map, then continue to follow the elevation contour in an overall clockwise direction, crossing back and forth between the Orofino and Clarkston maps and finally onto the Potlatch map, and then continuing to follow the 600-meter elevation contour in a clockwise direction to the elevation contour's intersection with the southern boundary line of section 1, T37N/R1W, on the Potlatch map, north of the Nez Perce Indian Reservation boundary and west of the Dworshak Reservoir (North Fork of the Clearwater River) in Clearwater County, Idaho; then
</P>
<P>(4) Cross the Dworshak Reservoir (North Fork of the Clearwater River) by proceeding east along the southern boundary line of section 1, T37N/R1E, to the southeastern corner of section 1; then by proceeding north along the eastern boundary line of section 1 to the southwest corner of section 6, T37N/R2E; and then by proceeding east along the southern boundary line of section 6 to the 600-meter elevation contour; then
</P>
<P>(5) Proceed generally east initially, then generally south, and then generally southeast along the meandering 600-meter elevation contour, crossing onto the Orofino map, and then continuing to follow the elevation contour in an overall clockwise direction, crossing back and forth between the Orofino and Potlatch maps, to the eastern boundary of section 13, T35N/R2E, on the Orofino map in Clearwater County, Idaho; then
</P>
<P>(6) Proceed south along the eastern boundary of section 13, T35N/R2E, to the southeastern corner of section 13, T35N/R2E, northeast of Lolo Creek; then
</P>
<P>(7) Proceed west along the southern boundary line of section 13, T35N/R2E, to the Clearwater-Idaho County line in the middle of Lolo Creek; then
</P>
<P>(8) Proceed generally west-northwest along the Clearwater-Idaho County line (concurrent with Lolo Creek) to the Lewis County line at the confluence of Lolo Creek and the Clearwater River; then
</P>
<P>(9) Proceed generally south along the Lewis-Idaho County line (concurrent with the Clearwater River) to the northern boundary line of section 23, T35N/R2E; then
</P>
<P>(10) Proceed west along the northern boundary line of section 23, T35N/R2E, to the 600-meter elevation contour; then
</P>
<P>(11) Proceed generally northwest along the meandering 600-meter elevation contour, crossing onto the Potlatch map and then back onto the Orofino map and continuing generally southwest along the 600-meter elevation contour to the common T32N/T31N township boundary line along the southern boundary line of section 35, T32N/R5W, south of Chimney Creek (a tributary of the Snake River) in Nez Perce County, Idaho; then
</P>
<P>(12) Proceed west along the common T32N/T31N township boundary line, crossing Chimney Creek, to the Idaho-Washington State line (concurrent with the Nez Perce-Asotin County line) at the center of the Snake River; then
</P>
<P>(13) Proceed generally southeast along the Idaho-Washington State line in the Snake River to the northern boundary line of section 29, T31N/R5W; then
</P>
<P>(14) Proceed west along the northern boundary line of section 29, T31N/R5W, to the 600-meter elevation contour, northeast of Lime Hill in Asotin County, Washington; then
</P>
<P>(15) Proceed generally west and then generally south-southwest along the meandering 600-meter elevation contour to the southern boundary line of section 25, T7N/R46E; then
</P>
<P>(16) Proceed west along the southern boundary lines of section 25 and 26, crossing onto the Clarkston map, and continuing along the southern boundary lines of section 26 to the 600-meter elevation contour west of Joseph Creek; then
</P>
<P>(17) Proceed southwest along the meandering 600-meter elevation contour to the western boundary line of section 34, T7N/R46E; then
</P>
<P>(18) Proceed north along the western boundary lines of sections 34 and 27, T7N/R46E, crossing over the Grande Ronde River, to the 600-meter elevation contour; then
</P>
<P>(19) Proceed generally northeast along the meandering 600-meter elevation contour and continue along the 600-meter elevation contour in a clockwise direction, crossing back and forth between the Clarkston and Orofino maps, until, on the Clarkston map, the 600-meter elevation line intersects the Garfield-Asotin County line for the third time along the western boundary of section 19, T11N/R45E; and then
</P>
<P>(20) Proceed north along the Garfield-Asotin County line, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-136, 81 FR 23161, Apr. 20, 2016, as amended by T.D. TTB-196, 89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.257" NODE="27:1.0.1.1.7.3.45.237" TYPE="SECTION">
<HEAD>§ 9.257   Tip of the Mitt.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Tip of the Mitt”. For purposes of part 4 of this chapter, “Tip of the Mitt” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 2 United States Geological Survey (USGS) 1:250,000 scale topographic maps used to determine the boundary of the Tip of the Mitt viticultural area are titled:
</P>
<P>(1) Cheboygan, Michigan, 1955; revised 1981; and
</P>
<P>(2) Alpena, Mich., US-Ontario, Can.; 1954.
</P>
<P>(c) <I>Boundary.</I> The Tip of the Mitt viticultural area is located in all or portions of Charlevoix, Emmet, Cheboygan, Presque Isle, Alpena, and Antrim Counties in Michigan. The boundary of the Tip of the Mitt viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Cheboygan map, at the point where the Mackinac Bridge intersects the southern shoreline of the Straits of Mackinac. From the beginning point, proceed east-southeasterly along the shoreline of the South Channel of the Straits of Mackinac and Lake Huron, crossing onto the Alpena map and continuing to follow the Lake Huron shoreline and then the Thunder Bay shoreline to the point where the Thunder Bay shoreline intersects the common T31N/T30N township line south of the city of Alpena and north of Bare Point; then
</P>
<P>(2) Proceed northwesterly in a straight line to the intersection of an unnamed medium-duty road known locally as Long Rapids Road and an unnamed light-duty road known locally as Cathro Road; then
</P>
<P>(3) Proceed west in a straight line to the line's intersection with State Highway 65 and an unnamed light-duty road known locally as Hibner Road; then
</P>
<P>(4) Proceed northwesterly in a straight line to the intersection of the Presque Isle, Alpena, and Montmorency county lines; then
</P>
<P>(5) Proceed west along the southern boundary of Presque Isle County, crossing onto the Cheboygan map, to the point where the Presque Isle county line becomes the southern boundary of Cheboygan County, and continuing along the Cheboygan county line to the intersection of the Cheboygan county line with the eastern boundary of Charlevoix County; then
</P>
<P>(6) Proceed south then east along the Charlevoix county line to the intersection of the Charlevoix county line with the eastern boundary of Antrim County; then
</P>
<P>(7) Proceed south along the Antrim county line to the point where the county line turns due east; then
</P>
<P>(8) Proceed west in a straight line to the eastern shoreline of Grand Traverse Bay; then
</P>
<P>(9) Proceed north-northeasterly along the shorelines of Grand Traverse Bay, Lake Michigan, Little Traverse Bay, Sturgeon Bay, Trails End Bay, and the Straits of Mackinac, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-139, 81 FR 47291, July 21, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.258" NODE="27:1.0.1.1.7.3.45.238" TYPE="SECTION">
<HEAD>§ 9.258   Champlain Valley of New York.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Champlain Valley of New York”. For purposes of part 4 of this chapter, “Champlain Valley of New York” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey (USGS) 1:100,000 scale topographic maps used to determine the boundary of the Champlain Valley of New York viticultural area are titled:
</P>
<P>(1) Lake Champlain, N.Y.; VT.; N.H.; U.S.; CAN., 1962; revised (U.S. area) 1972; and
</P>
<P>(2) Glens Falls, N.Y.; VT.; N.H., 1956; revised 1972.
</P>
<P>(c) <I>Boundary.</I> The Champlain Valley of New York viticultural area is located in Clinton and Essex Counties, New York. The boundary of the Champlain Valley of New York viticultural area is as described below:
</P>
<P>(1) The beginning point is found on the Lake Champlain map at the intersection of the western shore of Lake Champlain and the U.S.-Canada border, just north of the town of Rouses Point.
</P>
<P>(2) From the beginning point, proceed south along the western shore of Lake Champlain approximately 109.4 miles, crossing onto the Glens Falls map, to a road marked on the map as State Route 73 (now known as State Route 74) and known locally as Fort Ti Road, at the Fort Ticonderoga-Larrabees Point Ferry landing; then
</P>
<P>(3) Proceed west along State Route 73 (State Route 74/Fort Ti Road) approximately 1.6 miles to State Route 22; then
</P>
<P>(4) Proceed north along State Route 22 approximately 21 miles, crossing onto the Lake Champlain map and passing through the town of Port Henry, to an unnamed light-duty road known locally as County Road 44 (Stevenson Road); then
</P>
<P>(5) Proceed north along County Road 44 (Stevenson Road) approximately 5.8 miles to a railroad track; then
</P>
<P>(6) Proceed northerly along the railroad track approximately 1.6 miles to State Route 9N, west of the town of Westport; then
</P>
<P>(7) Proceed westerly along State Route 9N approximately 4.1 miles to Interstate 87; then
</P>
<P>(8) Proceed north along Interstate 87 approximately 21 miles to the Ausable River, southwest of the town of Keeseville; then
</P>
<P>(9) Proceed west (upstream) along the Ausable River approximately 6 miles to a bridge connecting two unnamed light-duty roads known locally as Burke Road and Lower Road in the town of Clintonville, and proceed north along the bridge to Lower Road; then
</P>
<P>(10) Proceed west along Lower Road approximately 0.6 mile to State Route 9N; then
</P>
<P>(11) Proceed west along State Route 9N approximately 0.8 mile to an unnamed light-duty road known locally as County Route 39 (Clintonville Road); then
</P>
<P>(12) Proceed north along County Route 39 (Clintonville Road) approximately 1.5 miles to the second crossing of the Little Ausable River, west of Cook Mountain; then
</P>
<P>(13) Proceed northeast along the Little Ausable River approximately 3.5 miles to the confluence of the river with Furnace Brook, near the town of Harkness; then
</P>
<P>(14) Proceed west along Furnace Brook approximately 0.17 mile to an unnamed light-duty road known locally as County Route 40 (Calkins Road); then
</P>
<P>(15) Proceed north along County Route 40 (Calkins Road) approximately 5.8 miles to an unnamed light-duty road known locally as County Route 35 (Peasleeville Road), south of an unnamed creek known locally as Arnold Brook; then
</P>
<P>(16) Proceed west along County Route 35 (Peasleeville Road) approximately 0.1 mile to an unnamed light-duty road known locally as Connors Road; then
</P>
<P>(17) Proceed north along Connors Road approximately 2.1 miles, crossing the Salmon River, to an unnamed light-duty road known locally as County Route 33 (Norrisville Road); then
</P>
<P>(18) Proceed west along County Route 33 (Norrisville Road) approximately 1.2 miles to an unnamed light-duty road known locally as Shingle Street; then
</P>
<P>(19) Proceed north along Shingle Street approximately 4 miles to an unnamed light-duty road known locally as County Route 31 (Rabideau Street); then
</P>
<P>(20) Proceed west along County Route 31 (Rabideau Street) approximately 0.4 mile to an unnamed light-duty road known locally as Goddeau Street; then
</P>
<P>(21) Proceed north along Goddeau Street approximately 0.9 mile, crossing the Saranac River, to State Route 3 just east of the town of Cadyville; then
</P>
<P>(22) Proceed east along State Route 3 approximately 0.5 mile to an unnamed light-duty road known locally as Akey Road; then
</P>
<P>(23) Proceed north on Akey Road approximately 0.2 mile to State Route 374; then
</P>
<P>(24) Proceed east along State Route 374 approximately 3.6 miles to State Route 190, also known locally as Military Turnpike; then
</P>
<P>(25) Proceed northwest along State Route 190 (Military Turnpike) approximately 15.2 miles to an unnamed light-duty road just east of Park Brook known locally as County Route 12 (Alder Bend Road), northwest of Miner Lake State Park; then
</P>
<P>(26) Proceed north along County Route 12 (Alder Bend Road) approximately 3 miles to U.S. Highway 11; then
</P>
<P>(27) Proceed west along U.S. Highway 11 approximately 1.7 miles to an unnamed light-duty road known locally as County Route 10 (Cannon Corners Road); then
</P>
<P>(28) Proceed north along County Route 10 (Cannon Corners Road) approximately 6 miles to the U.S.-Canada border; then
</P>
<P>(29) Proceed east along the U.S.-Canada border approximately 19.8 miles, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-142, 81 FR 56491, Aug. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.259" NODE="27:1.0.1.1.7.3.45.239" TYPE="SECTION">
<HEAD>§ 9.259   Willcox.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Willcox”. For purposes of part 4 of this chapter, “Willcox” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 21 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Willcox viticultural area are titled:
</P>
<P>(1) Fort Grant, AZ, 1996;
</P>
<P>(2) West of Greasewood Mountain, AZ, 1996;
</P>
<P>(3) Greasewood Mountain, AZ, 1996;
</P>
<P>(4) Willcox North, AZ, 1996;
</P>
<P>(5) Railroad Pass, Ariz., 1979;
</P>
<P>(6) Simmons Peak, AZ, 1996;
</P>
<P>(7) Dos Cabezas, AZ, 1996;
</P>
<P>(8) Pat Hills North, Ariz., 1974;
</P>
<P>(9) Pat Hills South, Arizona, 1986 provisional edition;
</P>
<P>(10) Sulphur Hills, AZ, 1996;
</P>
<P>(11) Pearce, AZ., 1996;
</P>
<P>(12) Turquoise Mountain, AZ, 1996;
</P>
<P>(13) Black Diamond Peak, AZ, 1996;
</P>
<P>(14) Cochise Stronghold, AZ, 1996;
</P>
<P>(15) Cochise, AZ, 1996;
</P>
<P>(16) Red Bird Hills, AZ, 1996;
</P>
<P>(17) Steele Hills, AZ, 1996;
</P>
<P>(18) Square Mountain, AZ, 1996;
</P>
<P>(19) Muskhog Mountain, AZ, 1996;
</P>
<P>(20) Reiley Peak, AZ, 1996; and
</P>
<P>(21) Sierra Bonita Ranch, Ariz., 1972.
</P>
<P>(c) <I>Boundary.</I> The Willcox viticultural area is located in Cochise and Graham Counties in southeastern Arizona. The boundary of the Willcox viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Fort Grant map at the intersection of State Highway 266 and an unnamed light-duty road known locally as Curtis Parkway, in Fort Grant, section 35, T9S/R23E. From the beginning point, proceed south-southeast in a straight line approximately 20.4 miles, crossing over the West of Greasewood Mountain and the Greasewood Mountain map and onto the Willcox North map, to the intersection of three unnamed light-duty roads known locally as Porters Ranch Road, East Saguaro Road, and North Circle I Road, near benchmark (BM) 4,243 on the Willcox North map, section 36, T12S/R24E; then
</P>
<P>(2) Proceed east in a straight line approximately 5 miles to Interstate Highway 10 near the community of Raso, section 1, T13S/R25E; then
</P>
<P>(3) Proceed south in a straight line approximately 0.8 mile to the 4,400-foot elevation contour, section 1, T13S/R25E; then
</P>
<P>(4) Proceed southwesterly along the 4,400-foot elevation contour around the west end of the Dos Cabezas Mountains and continue southeasterly along the 4,400-foot elevation contour for a total of approximately 13.3 miles, crossing over the Railroad Pass map and onto the Simmons Peak map, to State Highway 186 on the Simmons Peak map, section 28, T14S/R26E; then
</P>
<P>(5) Proceed south-southeast in a straight line approximately 15.8 miles, crossing over the Dos Cabezas map and onto the Pat Hills North map, to the intersection of the 4,700-foot elevation contour and an unnamed light-duty road known locally as East Creasey Ranch Road on the Pat Hills North map near BM 4,695, section 21, T16S/R28E; then
</P>
<P>(6) Proceed southerly along the 4,700-foot elevation contour approximately 10.6 miles, crossing onto the Pat Hills South map, to an unnamed light-duty road known locally as East Uncle Curtis Lane, section 7, T18S/R28 E; then
</P>
<P>(7) Proceed west along East Uncle Curtis Lane approximately 0.5 mile to an unnamed light-duty road known locally as South Single Tree Lane near the marked 4,664-foot elevation point, section 7, T18S/R28E; then
</P>
<P>(8) Proceed south along South Single Tree Lane approximately 0.5 mile to State Highway 181, section 7, T18S/R28E; then
</P>
<P>(9) Proceed west along State Highway 181 approximately 9.9 miles, crossing onto the Sulphur Hills map, to State Highway 191, section 10, T18S/R26E; then
</P>
<P>(10) Proceed north-northeasterly, then west, along State Highway 191 approximately 4.8 miles, crossing onto the Pearce map, to an unnamed light-duty road known locally as Kansas Settlement Road, near BM 4,327, section 36, T17S/R25E; then
</P>
<P>(11) Proceed southwest in a straight line approximately 8.9 miles, crossing over the Turquoise Mountain map and onto the Black Diamond Peak map, to the southeastern-most corner of the boundary of the Coronado National Forest on the Black Diamond Peak map, section 35, T18S/R24 E; then
</P>
<P>(12) Proceed north along the boundary of the Coronado National Forest approximately 2 miles to the marked 4,821-foot elevation point, section 26, T18S/R24E; then
</P>
<P>(13) Proceed north-northwest in a straight line approximately 13 miles, crossing over the Cochise Stronghold map and onto the Cochise map, to the northeastern corner of the boundary of the Coronado National Forest at the marked 4,642 elevation point on the Cochise map, section 26, T16S/R23E; then
</P>
<P>(14) Proceed north-northwest in a straight line approximately 1.2 miles to the intersection of the 4,450-foot elevation contour and an unnamed secondary highway known locally as West Dragoon Road, section 23, T16S/R23E; then
</P>
<P>(15) Proceed north in a straight line approximately 1.3 miles to the 4,400-foot elevation contour, section 11, T16S/R23E; then
</P>
<P>(16) Proceed generally northerly along the 4,400-foot elevation contour approximately 10 miles, crossing onto the Red Bird Hills map, to Interstate Highway 10, section 3, T15S/R23E; then
</P>
<P>(17) Proceed north-northwest in a straight line approximately 5.8 miles, crossing onto the Steele Hills map, to the intersection of the 4,600-foot elevation contour and an unnamed light-duty road known locally as West Airport Road, section 7, T14S/R23E; then
</P>
<P>(18) Proceed east-northeasterly, then easterly, then northerly, then easterly along West Airport Road approximately 7.2 miles, crossing back onto the Red Bird Hills map and then onto the Square Mountain map, to the 4,240-foot elevation contour east of BM 4,264, section 6, T14S/R24E; then
</P>
<P>(19) Proceed north-northwest in a straight line approximately 20.5 miles, crossing over the Muskhog Mountain and Reiley Peak maps and onto the Sierra Bonita Ranch map, to the intersection of two unnamed light-duty roads known locally as West Ash Creek Road and South Wells Road, near BM 4,487 on the Sierra Bonita Ranch map, section 3, T11S/R22E; then
</P>
<P>(20) Proceed generally northerly along South Wells Road to BM 4,502, then continuing northerly along the western fork of the road for a total of approximately 7.7 miles to an unnamed light-duty road known locally as Bonita Aravaipa Road, section 27, T9S/R22E; then
</P>
<P>(21) Proceed east in a straight line approximately 8.2 miles, crossing onto the Fort Grant map, to the beginning point.
</P>
<CITA TYPE="N">[T.D.TTB-143, 81 FR 62628, Sept. 12, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.260" NODE="27:1.0.1.1.7.3.45.240" TYPE="SECTION">
<HEAD>§ 9.260   Appalachian High Country.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Appalachian High Country”. For purposes of part 4 of this chapter, “Appalachian High Country” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 46 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Appalachian High Country viticultural area are titled:
</P>
<P>(1) Unicoi, Tenn.-N.C, 1939; photorevised 1978;
</P>
<P>(2) Iron Mountain Gap, Tenn.-N.C., 1960; photorevised 1968;
</P>
<P>(3) Johnson City, Tenn., 1959; photorevised 1968;
</P>
<P>(4) Elizabethton, Tenn., 1959; photorevised 1968;
</P>
<P>(5) Watauga Dam, Tenn., 1960;
</P>
<P>(6) Carter, Tenn., 1938; photorevised 1969;
</P>
<P>(7) Keenburg, Tenn., 1960;
</P>
<P>(8) Doe, Tenn., 1938; photorevised 1969;
</P>
<P>(9) Shady Valley, Tenn.-VA., 1960; photorevised 1970; photoinspected 1988;
</P>
<P>(10) Laurel Bloomery, Tenn.-VA., 1938; photorevised 1969;
</P>
<P>(11) Grayson, Tenn.-N.C.-VA., 1959; photoinspected 1976;
</P>
<P>(12) Park, N.C.-VA., 1959; photorevised 1978;
</P>
<P>(13) Whitetop Mountain, VA., 1959; photorevised 1978;
</P>
<P>(14) Trout Dale, VA., 1959; photorevised 1978; photoinspected 1988;
</P>
<P>(15) Middle Fox Creek, VA., 1959; photoinspected 1988;
</P>
<P>(16) Cedar Springs, VA., 1959; photorevised 1978; photoinspected 1988;
</P>
<P>(17) Speedwell, VA., 1968; photorevised 1979;
</P>
<P>(18) Cripple Creek, VA., 1968; photoinspected 1988;
</P>
<P>(19) Austinville, VA., 1965; photorevised 1979; photoinspected 1982;
</P>
<P>(20) Galax, VA., 1965; photorevised 1984;
</P>
<P>(21) Cumberland Knob, N.C.-VA., 1965; photorevised 1977;
</P>
<P>(22) Lambsburg, VA.-N.C., 1965; photorevised 1977;
</P>
<P>(23) Roaring Gap, N.C., 1971;
</P>
<P>(24) Glade Valley, N.C., 1968;
</P>
<P>(25) Traphill, N.C., 1968;
</P>
<P>(26) Whitehead, N.C., 1968;
</P>
<P>(27) McGrady, N.C., 1968; photoinspected 1984;
</P>
<P>(28) Horse Gap, N.C., 1968;
</P>
<P>(29) Laurel Springs, N.C., 1968;
</P>
<P>(30) Glendale Springs, N.C., 1967;
</P>
<P>(31) Maple Springs, N.C., 1966;
</P>
<P>(32) Deep Gap, N.C., 1967;
</P>
<P>(33) Buffalo Cove, N.C., 1967;
</P>
<P>(34) Globe, N.C., 1959;
</P>
<P>(35) Grandfather Mountain, N.C., 1960; photorevised 1978;
</P>
<P>(36) Newland, N.C., 1960; photorevised 1978;
</P>
<P>(37) Linville Falls, N.C., 1994;
</P>
<P>(38) Ashford, N.C., 1994;
</P>
<P>(39) Little Switzerland, N.C., 1994;
</P>
<P>(40) Spruce Pine, N.C., 1994;
</P>
<P>(41) Celo, N.C., 1994;
</P>
<P>(42) Micaville, N.C., 1960; photorevised 1978;
</P>
<P>(43) Bakersville, N.C.,-Tenn., 1960; photorevised 1978;
</P>
<P>(44) Burnsville, N.C., 1998;
</P>
<P>(45) Huntdale, N.C.-Tenn., 1939; and
</P>
<P>(46) Chestoa, Tenn.-N.C., 1939; photorevised 1978.
</P>
<P>(c) <I>Boundary.</I> The Appalachian High Country viticultural area is located in all or portions of Alleghany, Ashe, Avery, Mitchell, and Watauga Counties in North Carolina; Carter and Johnson Counties in Tennessee; and Grayson County in Virginia. The boundary of the Appalachian High Country viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Unicoi map, at the point where the Unicoi/Mitchell County line intersects with an unnamed road known locally as Unaka Mountain Road near Beauty Spot Gap, Tennessee. From the beginning point, proceed northeasterly approximately 7.3 miles along the Unicoi/Mitchell County line, crossing onto the Iron Mountain Gap map, to the intersection of the Unicoi/Mitchell County line with the Carter County line; then
</P>
<P>(2) Proceed northerly along the Unicoi/Carter County line approximately 9.3 miles, crossing back onto the Unicoi map and then onto the Johnson City map, to the intersection of the Unicoi/Carter County line with the 2,000-foot elevation contour, southeast of an unnamed road known locally as Whispering Pine Road; then
</P>
<P>(3) Proceed southeasterly along the meandering 2,000-foot elevation contour, crossing onto the Unicoi map and then back onto the Johnson City map, and continuing onto the Elizabethton map for approximately 19 miles to the intersection of the elevation contour with an unnamed road known locally as Brimer Road near Bremer Hollow; then
</P>
<P>(4) Proceed northwesterly approximately 1,500 feet along Brimer Road to an unnamed road known locally as Jenkins Hollow Road; then
</P>
<P>(5) Proceed easterly approximately 1.4 miles along Jenkins Hollow Road, crossing the Doe River, to U.S. Route 321 in the town of Valley Forge, Tennessee; then
</P>
<P>(6) Proceed north approximately 400 feet along U.S. Route 321 to an unnamed road known locally as Ruby Harmon Road; then
</P>
<P>(7) Proceed northeasterly approximately 360 feet along Ruby Harmon Road to an unnamed road known locally as Nanny Goat Hill Road; then
</P>
<P>(8) Proceed easterly approximately 0.2 mile along Nanny Goat Hill Road to the 1,800-foot elevation contour, east of an unnamed road known locally as Gene Mathes Road; then
</P>
<P>(9) Proceed northeasterly approximately 0.4 mile along the 1,800-foot elevation contour to an unnamed road known locally as Franklin Lane; then
</P>
<P>(10) Proceed southerly approximately 0.3 mile along Franklin Lane to the 2,000-foot elevation contour; then
</P>
<P>(11) Proceed northeasterly along the meandering 2,000-foot elevation contour, crossing over Hardin Branch, Clover Branch, South Pierce Branch, and North Pierce Branch, to a fifth, unnamed stream; then
</P>
<P>(12) Proceed northerly approximately 0.47 mile along the unnamed stream to an unnamed road known locally as Wilbur Dam Road; then
</P>
<P>(13) Proceed southeasterly approximately 0.25 mile along Wilbur Dam Road to Wilbur Dam; then
</P>
<P>(14) Proceed northeasterly across Wilbur Dam to the marked transmission line; then
</P>
<P>(15) Proceed northerly approximately 0.5 mile along the transmission line to the 2,000-foot elevation contour; then
</P>
<P>(16) Proceed northeasterly approximately 19 miles along the meandering 2,000-foot elevation contour, crossing over the Watauga Dam map and onto the Carter map, and continuing along the 2,000-foot elevation contour as it crosses over State Route 91 near Sadie, Tennessee, and turns southwesterly, and continuing southwesterly for approximately 22.2 miles along the 2,000-foot elevation contour, crossing onto the Keenburg map and circling Carter Knob, to the intersection of the 2,000-foot elevation contour with the Carter/Sullivan County line; then
</P>
<P>(17) Proceed southeasterly, then northeasterly, approximately 7 miles along the Carter/Sullivan County line to an unnamed road known locally as National Forest Road 56, near Low Gap, Tennessee; then
</P>
<P>(18) Proceed easterly approximately 0.75 mile along National Forest Road 56, crossing onto the Carter map, to the Carter/Sullivan County line; then
</P>
<P>(19) Proceed easterly approximately 10.4 miles along the Carter/Sullivan County line, crossing over the Doe map (northwestern corner) and onto the Shady Valley Map, to the intersection of the Carter/Sullivan County line with the Johnson County line at Rich Knob, Tennessee; then
</P>
<P>(20) Proceed northeasterly approximately 13.4 miles along the Johnson/Sullivan County line, crossing onto the Laurel Bloomery map, to the intersection of the Johnson/Sullivan County line with the Washington County line at the Virginia/Tennessee State line; then
</P>
<P>(21) Proceed easterly approximately 10 miles along the Johnson/Washington County line, crossing onto the Grayson map, to the intersection of the Johnson/Washington County line with the Grayson County line; then
</P>
<P>(22) Proceed east, then northeasterly, then southeasterly, along the Grayson County line, crossing over the Park, Whitetop Mountain, Trout Dale, Middle Fox Creek, Cedar Springs, Speedwell, Cripple Creek, Austinville, Galax, and Cumberland Knob maps and onto the Lambsburg map, to the intersection of the Grayson County line with the Surry County line and an unnamed road known locally as Fisher's Peak Road, at the Virginia/North Carolina State line; then
</P>
<P>(23) Proceed west along the Grayson/Surry County line, crossing back onto the Cumberland Knob map, to Alleghany County line; then
</P>
<P>(24) Proceed southerly, then northwesterly, then southwesterly along the Alleghany County line, crossing over the Roaring Gap, Glade Valley, Traphill (northeastern corner), Whitehead, McGrady (northwestern corner), Horse Gap, and Laurel Springs map, then back onto the Horse Gap map and continuing along the Alleghany County line on the Horse Gap map to the Ashe/Wilkes County line at Mulberry Gap, North Carolina; then
</P>
<P>(25) Proceed westerly, then southwesterly along the Ashe/Wilkes County line, crossing over the Glendale Springs and onto the Maple Springs map, then back onto the Glendale Springs map, then back onto the Maple Springs map, and continuing along the Ashe/Wilkes County line on the Maple Springs map to the intersection of the Ashe/Wilkes County line and the Watauga County line at Thomkins Knob, North Carolina; then
</P>
<P>(26) Proceed southwesterly along the Watauga/Wilkes County line, crossing over the Deep Gap map (southeastern corner) and onto the Buffalo Cove map, to the intersection of the Watauga/Wilkes County line and the Caldwell County line at White Rock Mountain, North Carolina; then
</P>
<P>(27) Proceed west along the Watauga/Caldwell County line, crossing over the Globe map and onto the Grandfather Mountain map, to the intersection of the Watauga/Caldwell County line with the Avery County line at Calloway Peak, North Carolina; then
</P>
<P>(28) Proceed southeasterly approximately 1.8 miles along the Caldwell/Avery County line to the boundary of the Blue Ridge Parkway at Pilot Knob, North Carolina; then
</P>
<P>(29) Proceed southwesterly approximately 11.6 miles along the Blue Ridge Parkway boundary, crossing over the Newland map (southeastern corner) and onto the Linville Falls map, to the intersection of the parkway boundary with the Avery/Burke County line; then
</P>
<P>(30) Proceed northwesterly, then southwesterly, for a total of approximately 4.2 miles along the Avery/Burke County line to the McDowell County line; then
</P>
<P>(31) Proceed southerly approximately 5 miles along the Avery/McDowell County line to the Mitchell County line; then
</P>
<P>(32) Proceed southerly, then southwesterly, along the McDowell/Mitchell County line, crossing over the Ashford (northwestern corner) and Little Switzerland (northeastern corner) maps and onto the Spruce Pine map, then back onto the Little Switzerland map and continuing along the McDowell/Mitchell County line, crossing onto the Celo map, to the intersection of the McDowell/Mitchell County line with the Yancey County line; then
</P>
<P>(33) Proceed west then northerly along the Mitchell/Yancey County line, crossing over the Micaville, Bakersville, Huntdale (southeastern corner), and Burnsville maps, then back onto the Huntdale map and continuing along the Mitchell/Yancy County line, crossing onto the Chestoa map, to the intersection of the Mitchell/Yancey County line with the Mitchell/Unicoi County line, which is concurrent with the Tennessee/North Carolina State line; then
</P>
<P>(34) Proceed northeasterly along the Mitchell/Unicoi County line, crossing back over the Huntsdale (northwestern corner) map and onto the Unicoi map, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-144, 81 FR 74679, Oct. 27, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 9.261" NODE="27:1.0.1.1.7.3.45.241" TYPE="SECTION">
<HEAD>§ 9.261   Petaluma Gap.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Petaluma Gap”. For purposes of part 4 of this chapter, “Petaluma Gap” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 12 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Petaluma Gap viticultural area are titled:
</P>
<P>(1) Cotati, Calif., 1954; photorevised 1980;
</P>
<P>(2) Glen Elle, Calif., 1954; photorevised 1980;
</P>
<P>(3) Petaluma River, Calif., 1954; photorevised 1980;
</P>
<P>(4) Sears Point, Calif., 1951; photorevised 1968;
</P>
<P>(5) Petaluma Point, Calif., 1959; photorevised 1980;
</P>
<P>(6) Novato, Calif., 1954; photorevised 1980;
</P>
<P>(7) Petaluma, Calif., 1953; photorevised 1981;
</P>
<P>(8) Point Reyes NE., CA, 1995;
</P>
<P>(9) Tomales, CA, 1995;
</P>
<P>(10) Bodega Head, Calif., 1972;
</P>
<P>(11) Valley Ford, Calif., 1954; photorevised 1971; and
</P>
<P>(12) Two Rock, Calif., 1954; photorevised 1971.
</P>
<P>(c) <I>Boundary.</I> The Petaluma Gap viticultural area is located in Sonoma and Marin Counties in California. The boundary of the Petaluma Gap viticultural area is as described in paragraphs (c)(1) through (48) of this section:
</P>
<P>(1) The beginning point is on the Cotati map at the intersection of Grange Road, Crane Canyon Road, and the northern boundary of section 16, T6N/R7W. From the beginning point, proceed southeast in a straight line for 1 mile, crossing over Pressley Road, to the intersection of the 900-foot elevation contour and the eastern boundary of section 16, T6N/R7W; the
</P>
<P>(2) Proceed east-southeasterly in a straight line for 0.5 mile, crossing onto the Glen Ellen map, to the terminus of an unnamed, unimproved road known locally as Summit View Ranch Road, just north of the southern boundary of section 15, T6N/R7N; then
</P>
<P>(3) Proceed southeast in a straight line for 0.6 mile to the intersection of Crane Creek and the 1,200-foot elevation contour, section 22, T6N/R7W; then
</P>
<P>(4) Proceed southeast in a straight line for 2.9 miles to the marked 2,271-foot peak on Sonoma Mountain, T6N/R6W; then
</P>
<P>(5) Proceed southeast in a straight line for 10.5 miles, crossing over the northeastern corner of the Petaluma River map and onto the Sears Point map, to the marked 682-foot summit of Wildcat Mountain; then
</P>
<P>(6) Proceed south-southeasterly in a straight line for 3.3 miles to the intersection of State Highway 121 (also known locally as Arnold Drive) and State Highway 37 (also known locally as Sears Point Road); then
</P>
<P>(7) Proceed east-northeasterly along State Highway 37/Sears Point Road for approximately 0.1 mile to Tolay Creek; then
</P>
<P>(8) Proceed generally south along the meandering Tolay Creek for 3.9 miles, crossing onto the Petaluma Point map, to the mouth of the creek at San Pablo Bay; then
</P>
<P>(9) Proceed southwesterly along the shore of San Pablo Bay for 2.7 miles, crossing the mouth of the Petaluma River, and continuing southeasterly along the bay's shoreline to Petaluma Point; then
</P>
<P>(10) Proceed northwesterly in a straight line for 6.3 miles, crossing over the northeastern corner of the Novato map and onto the Petaluma River map, to the marked 1,558-foot peak of Burdell Mountain; then
</P>
<P>(11) Proceed northwest in a straight line for 1.3 miles to the marked 1,193-foot peak; then
</P>
<P>(12) Proceed west-southwesterly in a straight line for 2.2 miles, crossing onto the Petaluma map, to the marked 1,209-foot peak; then
</P>
<P>(13) Proceed west-southwest in a straight line for 0.8 mile to the marked 1,296-foot peak; then
</P>
<P>(14) Proceed west in a straight line for 1 mile to the marked 1,257-foot peak on Red Hill in section 31, T4N/R7W; then
</P>
<P>(15) Proceed southwest in a straight line for 2.9 miles to the marked 1,532-foot peak on Hicks Mountain; then
</P>
<P>(16) Proceed north-northwesterly in a straight line for 2.7 miles, crossing onto the Point Reyes NE map, to the marked 1,087-foot peak; then
</P>
<P>(17) Proceed north-northwesterly in a straight line for 1.5 miles to the marked 1,379-foot peak; then
</P>
<P>(18) Proceed west-northwesterly in a straight line for 2.9 miles to the marked 935-foot peak; then
</P>
<P>(19) Proceed northwest in a straight line for 1.8 miles to the marked 804-foot peak; then
</P>
<P>(20) Proceed west-northwesterly in a straight line for 3.1 miles, crossing onto the Tomales map, to the marked 741-foot peak; then
</P>
<P>(21) Proceed northwesterly in a straight line for 1.3 miles to benchmark (BM) 10 on State Highway 1, at the mouth of Walker Creek in Tomales Bay; then
</P>
<P>(22) Proceed southwesterly, then northwesterly along the shoreline of Tomales Bay to Sand Point, on Bodega Bay, and continuing northerly along the shoreline of Bodega Bay, crossing over the Valley Ford map and onto the Bodega Head map, circling the shoreline of Bodega Harbor to the Pacific Ocean and continuing northerly along the shoreline of the Pacific Ocean to the mouth of Salmon Creek, for a total of 19.5 miles; then
</P>
<P>(23) Proceed easterly along Salmon Creek for 9.6 miles, crossing onto the Valley Ford map and passing Nolan Creek, to the second intermittent stream in the Estero Americano land grant, T6N/R10W; then
</P>
<P>(24) Proceed east in a straight line for 1 mile to vertical angle benchmark (VABM) 724 in the Estero Americano land grant, T6N/R10W; then
</P>
<P>(25) Proceed south-southeasterly in a straight line for 0.8 mile to BM 61 on an unmarked light duty road known locally as Freestone Valley Ford Road in the Cañada de Pogolimi land grant, T6N/R10W; then
</P>
<P>(26) Proceed southeast in a straight line for 0.6 mile to the marked 448-foot peak in the Cañada de Pogolimi land grant, T6N/R10W; then
</P>
<P>(27) Proceed southeast in a straight line for 0.1 mile to the northern terminus of an unnamed, unimproved road in the Cañada de Pogolimi land grant, T6N/R10W; then
</P>
<P>(28) Proceed northeasterly, then southeasterly for 0.9 mile along the unnamed, unimproved road to the 400-foot elevation contour in the Cañada de Pogolimi land grant, T6N/R10W; then
</P>
<P>(29) Proceed easterly along the meandering 400-foot elevation contour for 6.7 miles, crossing onto the Two Rocks map, to Burnside Road in the Cañada de Pogolimi land grant, T6N/R10W; then
</P>
<P>(30) Proceed south on Burnside Road for 0.1 mile to an unnamed medium duty road known locally as Bloomfield Road in the Cañada de Pogolimi land grant,T6N/R9W; then
</P>
<P>(31) Proceed southeast in a straight line for 0.6 mile to the marked 610-foot peak in the Blucher land grant, T6N/R9W; then
</P>
<P>(32) Proceed east-southeasterly in a straight line for 0.8 mile to the marked 641-foot peak in the Blucher land grant, T6N/R9W; then
</P>
<P>(33) Proceed northeast in a straight line for 1.2 miles, crossing through the intersection of an intermittent stream with Canfield Road, to the common Range 
<FR>8/9</FR> boundary; then
</P>
<P>(34) Proceed southeast in a straight line for 0.5 mile to the marked 542-foot peak; then
</P>
<P>(35) Proceed southeast in a straight line for 0.8 mile to the intersection of an unnamed, unimproved road (leading to four barn-like structures) known locally as Carniglia Lane and an unnamed medium duty road known locally as Roblar Road, T6N/R8W; then
</P>
<P>(36) Proceed south in a straight line for 0.5 mile to the marked 678-foot peak, T6N/R8W; then
</P>
<P>(37) Proceed east-southeast in a straight line for 0.8 mile to the marked 599-foot peak, T5N/R8W; then
</P>
<P>(38) Proceed east-southeast in a straight line for 0.7 mile to the marked 604-foot peak, T5N/R8W; then
</P>
<P>(39) Proceed east-southeast in a straight line for 0.9 mile, crossing onto the Cotati map, to the intersection of Meacham Road and an unnamed light duty road leading to a series of barn-like structures, T5N/R8W; then
</P>
<P>(40) Proceed north-northeast along Meacham Road for 0.8 mile to Stony Point Road, T5N/R8W; then
</P>
<P>(41) Proceed southeast along Stony Point Road for 1.1 miles to the 200-foot elevation contour, T5N/R8W; then
</P>
<P>(42) Proceed north-northeast in a straight line for 0.5 mile to the intersection of an intermittent creek with U.S. Highway 101, T5N/R8W; then
</P>
<P>(43) Proceed north along U.S. Highway 101 for 1.5 miles to State Highway 116 (also known locally as Graverstein Highway), T6N/R8W; then
</P>
<P>(44) Proceed northeast in a straight line for 3.4 miles to the intersection of Crane Creek and Petaluma Hill Road, T6N/R7W; then
</P>
<P>(45) Proceed easterly along Crane Creek for 0.8 mile to the intersection of Crane Creek and the 200-foot elevation line, T6N/R7W; then
</P>
<P>(46) Proceed northwesterly along the 200-foot elevation contour for 1 mile to the intersection of the contour line and an intermittent stream just south of Crane Canyon Road, T6N/R7W; then
</P>
<P>(47) Proceed east then northeasterly along the northern branch of the intermittent stream for 0.3 mile to the intersection of the stream with Crane Canyon Road, T6N/R7W; then
</P>
<P>(48) Proceed northeasterly along Crane Canyon Road for 1.2 miles, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-149, 82 FR 57662, Dec. 7, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 9.262" NODE="27:1.0.1.1.7.3.45.242" TYPE="SECTION">
<HEAD>§ 9.262   Cape May Peninsula.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Cape May Peninsula”. For purposes of part 4 of this chapter, “Cape May Peninsula” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 11 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Cape May Peninsula viticultural area are titled:
</P>
<P>(1) Ocean City, New Jersey, 1989;
</P>
<P>(2) Marmora, New Jersey, 1989;
</P>
<P>(3) Sea Isle City, New Jersey, 1952; photorevised, 1972;
</P>
<P>(4) Woodbine, New Jersey, 1958; photorevised, 1972;
</P>
<P>(5) Stone Harbor, New Jersey, 1955; photorevised, 1972;
</P>
<P>(6) Wildwood, New Jersey, 1955; photorevised, 1972;
</P>
<P>(7) Cape May, New Jersey, 1954; photorevised, 1972;
</P>
<P>(8) Rio Grande, New Jersey, 1956; photorevised, 1972;
</P>
<P>(9) Heislerville, New Jersey, 1957; photorevised, 1972;
</P>
<P>(10) Port Elizabeth, New Jersey, 1956; photorevised, 1972; and
</P>
<P>(11) Tuckahoe, New Jersey, 1956; photorevised, 1972.
</P>
<P>(c) <I>Boundary.</I> The Cape May Peninsula viticultural area is located in Cape May and Cumberland Counties, New Jersey. The boundary of the Cape May Peninsula viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Ocean City quadrangle at the intersection of the 10-foot elevation contour and the Garden State Parkway, on the southern shore of Great Egg Harbor, northwest of Golders Point. Proceed southeast, then generally southwest along the meandering 10-foot elevation contour, crossing onto the Marmora quadrangle, then onto the Sea Isle City quadrangle, to the intersection of the 10-foot elevation contour with an unnamed road known locally as Sea Isle Boulevard; then
</P>
<P>(2) Proceed northwesterly along Sea Isle Boulevard to the intersection of the road with U.S. Highway 9; then
</P>
<P>(3) Proceed southwesterly along U.S. Highway 9 to the intersection of the highway with the 10-foot elevation contour south of Magnolia Lake; then
</P>
<P>(4) Proceed generally southwesterly along the meandering 10-foot elevation contour, crossing onto the Woodbine quadrangle, then briefly back onto the Sea Isle City quadrangle, then back onto the Woodbine quadrangle, to the intersection of the 10-foot elevation contour with the western span of the Garden State Parkway east of Clermont; then
</P>
<P>(5) Proceed southwest along the Garden State Parkway to the intersection of the road with Uncle Aarons Creek; then
</P>
<P>(6) Proceed westerly (upstream) along Uncle Aarons Creek to the intersection of the creek with the 10-foot elevation contour near the headwaters of the creek; then
</P>
<P>(7) Proceed easterly, then southwesterly along the 10-foot elevation contour, crossing onto the Stone Harbor quadrangle, then onto the northwesternmost corner of the Wildwood quadrangle, then onto Cape May quadrangle, to the intersection of the 10-foot elevation contour with State Route 109 and Benchmark (BM) 8, east of Cold Spring; then
</P>
<P>(8) Proceed southeast, then south, along State Route 109 to the intersection of the road with the north bank of the Cape May Canal; then
</P>
<P>(9) Proceed northwest along the north bank of the Cape May Canal to the intersection of the canal with the railroad tracks (Pennsylvania Reading Seashore Lines); then
</P>
<P>(10) Proceed south along the railroad tracks, crossing the canal, to the intersection of the railroad tracks with the south bank of the Cape May Canal; then
</P>
<P>(11) Proceed east along the canal bank to the intersection of the canal with Cape Island Creek; then
</P>
<P>(12) Proceed south, then northwest along the creek to the intersection of the creek with a tributary running north-south west of an unnamed road known locally as 1st Avenue; then
</P>
<P>(13) Proceed north along the tributary to its intersection with Sunset Boulevard; then
</P>
<P>(14) Proceed northwest along Sunset Boulevard to the intersection of the road with Benchmark (BM) 6; then
</P>
<P>(15) Proceed south in a straight line to the shoreline; then
</P>
<P>(16) Proceed west, then northwest, then northeast along the shoreline, rounding Cape May Point, and continuing northeasterly along the shoreline, crossing onto the Rio Grande quadrangle, then onto the Heislerville quadrangle, to the intersection of the shoreline with West Creek; then
</P>
<P>(17) Proceed generally north along the meandering West Creek, passing through Pickle Factory Pond and Hands Millpond, and continuing along West Creek, crossing onto the Port Elizabeth quadrangle, and continuing along West Creek to the fork in the creek north of Wrights Crossway Road; then
</P>
<P>(18) Proceed along the eastern fork of West Creek to the cranberry bog; then
</P>
<P>(19) Proceed through the cranberry bog and continue northeasterly along the branch of West Creek that exits the cranberry bog to the creek's terminus south of an unnamed road known locally as Joe Mason Road; then
</P>
<P>(20) Proceed northeast in a straight line to Tarkiln Brook Tributary; then
</P>
<P>(21) Proceed easterly along Tarkiln Brook Tributary, passing through the cranberry bog, crossing onto the Tuckahoe quadrangle, and continuing along Tarkiln Brook tributary to its intersection with the Tuckahoe River and the Atlantic-Cape May County line; then
</P>
<P>(22) Proceed easterly along the Atlantic-Cape May County line, crossing onto the Marmora and Cape May quadrangles, to the intersection of the Atlantic-Cape May County line with the Garden State Parkway on the Cape May quadrangle; then
</P>
<P>(23) Proceed south along the Garden State Parkway, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-150, 83 FR 14749, Apr. 6, 2018]


</CITA>
</DIV8>


<DIV8 N="§ 9.263" NODE="27:1.0.1.1.7.3.45.243" TYPE="SECTION">
<HEAD>§ 9.263   Dahlonega Plateau.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Dahlonega Plateau”. For purposes of part 4 of this chapter, “Dahlonega Plateau” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 9 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Dahlonega Plateau viticultural area are titled:
</P>
<P>(1) Dawsonville, GA, 1997;
</P>
<P>(2) Campbell Mountain, GA, 2014;
</P>
<P>(3) Nimblewill, GA, 1997;
</P>
<P>(4) Noontootla, GA, 1988;
</P>
<P>(5) Suches, GA, 1988;
</P>
<P>(6) Neels Gap, GA, 1988;
</P>
<P>(7) Dahlonega, GA, 1951;
</P>
<P>(8) Cowrock, GA, 1988; and
</P>
<P>(9) Cleveland, GA, 1951; photo revised 1973; photo inspected 1981.
</P>
<P>(c) <I>Boundary.</I> The Dahlonega Plateau viticultural area is located in Lumpkin and White Counties, Georgia. The boundary of the Dahlonega Plateau viticultural area is as described below:
</P>
<P>(1) The beginning point is found on the Dawsonville map at the marked 1,412-foot elevation point at the intersection of an unnamed light-duty road known locally as Castleberry Bridge Road and an unimproved road known locally as McDuffie River Road.
</P>
<P>(2) From the beginning point, proceed north-northeast in a straight line approximately 0.89 mile to the marked 1,453-foot elevation point; then
</P>
<P>(3) Proceed northwest in a straight line approximately 1.94 miles, crossing onto the Campbell Mountain map, to the intersection of Arrendale Road and Windy Oaks Road; then
</P>
<P>(4) Proceed northwest in a straight line approximately 0.77 mile to the intersection of the 1,400-foot elevation contour and Dennson Branch; then
</P>
<P>(5) Proceed northwest in a straight line approximately 0.79 mile to the intersection of the 1,360-foot elevation contour and Mill Creek; then
</P>
<P>(6) Proceed northwest in a straight line approximately 0.48 mile to the intersection of the 1,500-foot elevation contour and Sheep Wallow Road; then
</P>
<P>(7) Proceed northwest in a straight line approximately 1.74 miles to the intersection of State Route 52 and the Chattahoochee National Forest boundary; then
</P>
<P>(8) Proceed northwest in a straight line approximately 1.89 miles, crossing onto the Nimblewill map and then crossing over the marked 1,749-foot elevation point along an unnamed light duty road known locally as Nimblewill Church Road, to the line's intersection with the 1,800-foot elevation contour; then
</P>
<P>(9) Proceed generally east-northeast along the 1,800-foot elevation contour approximately 170.72 miles (straight line distance between points is approximately 20.43 miles), crossing over the Noontootla, Suches, Neels Gap and Dahlonega maps and onto the Cowrock map, to the intersection of the 1,800-foot elevation contour with Tom White Branch; then
</P>
<P>(10) Proceed southeast along Tom White Branch approximately 0.73 mile to the 1,600-foot elevation contour; then
</P>
<P>(11) Proceed southeast in a straight line approximately 1.10 miles to the intersection of Cathey Creek and the secondary highway marked Alt. 75; then
</P>
<P>(12) Proceed southwest in a straight line approximately 3.77 miles, crossing into the Cleveland map, to the intersection of two unnamed light-duty roads known locally as Dockery Road and Town Creek Road; then
</P>
<P>(13) Proceed south in a straight line approximately 0.58 mile to the marked 1,774-foot elevation point; then
</P>
<P>(14) Proceed southwest in a straight line approximately 0.60 mile to the 1,623-foot benchmark; then
</P>
<P>(15) Proceed southwest in a straight line approximately 2.73 miles, crossing into the Dahlonega map, to the 1,562-foot benchmark, then
</P>
<P>(16) Proceed southwest in a straight line approximately 3.46 miles to the marked 1,480-foot elevation point near the Mt. Sinai Church; then
</P>
<P>(17) Proceed southwest in a straight line approximately 2.13 miles to the summit of Crown Mountain; then
</P>
<P>(18) Proceed west in a straight line approximately 1.28 miles, crossing onto the Campbell Mountain map, to the intersection of the 1,160-foot elevation contour and Cane Creek; then
</P>
<P>(19) Proceed southwest in a straight line approximately 1.61 miles to the intersection of the 1,300-foot elevation contour and Camp Creek; then
</P>
<P>(20) Proceed southwest in a straight line approximately 2.02 miles, crossing into the Dawsonville map, to the intersection of the 1,200-foot elevation contour with the Etowah River, then
</P>
<P>(21) Proceed southwest in a straight line approximately 1.29 miles to the beginning point.
</P>
<CITA TYPE="N">[T.D.TTB-151, 83 FR 30538, June 29, 2018]


</CITA>
</DIV8>


<DIV8 N="§ 9.264" NODE="27:1.0.1.1.7.3.45.244" TYPE="SECTION">
<HEAD>§ 9.264   Upper Hudson.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Upper Hudson”. For purposes of part 4 of this chapter, “Upper Hudson” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:100,000 scale topographic maps used to determine the boundary of the Upper Hudson viticultural area are titled:
</P>
<P>(1) Glens Falls, New York—Vermont, 1989;
</P>
<P>(2) Albany, New York—Massachusetts—Vermont, 1989;
</P>
<P>(3) Amsterdam, New York, 1985; photoinspected 1990; and
</P>
<P>(4) Gloversville, New York, 1985; photoinspected 1992.
</P>
<P>(c) <I>Boundary.</I> The Upper Hudson viticultural area is located in Albany, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie, and Washington Counties in New York. The boundary of the Upper Hudson viticultural area is as described below:
</P>
<P>(1) The point of the beginning is on the Glens Falls map at the intersection of U.S. Highway 9 and State Highway 32, in Glens Falls. From the beginning point, proceed east on State Highway 32 to its intersection with State Highway 254; then
</P>
<P>(2) Proceed southeasterly along State Highway 254 to its intersection with U.S. Highway 4 in Hudson Falls; then
</P>
<P>(3) Proceed south along U.S. Highway 4 to its intersection with State Highway 197 in Fort Edward; then
</P>
<P>(4) Proceed east, then southeast along State Highway 197 to its intersection with State Highway 40 in Argyle; then
</P>
<P>(5) Proceed southeast in a straight line to the intersection of State Highway 29 and State Highway 22 in Greenwich Junction; then
</P>
<P>(6) Proceed south along State Highway 22, crossing onto the Albany map, to the highway's intersection with State Highway 7 in Hoosick; then
</P>
<P>(7) Proceed southwest along State Highway 7, crossing the Hudson River, to the highway's intersection with State Highway 32 in Green Island; then
</P>
<P>(8) Proceed south on State Highway 32 to its intersection with U.S. Highway 20 in Albany; then
</P>
<P>(9) Proceed west on U.S. Highway 20 its intersection with U.S. Highway 9; then
</P>
<P>(10) Proceed southwest along U.S. Highway 9 to its intersection with State Highway 443; then
</P>
<P>(11) Proceed southwest, then westerly along State Highway 443, crossing onto the Amsterdam map, to the highway's intersection with an unnamed state highway known locally as State Highway 30 in Vroman Corners; then
</P>
<P>(12) Proceed northwesterly along State Highway 30 to its intersection with State Highway 30A in Sidney Corners; then
</P>
<P>(13) Proceed north along State Highway 30A, crossing over the Mohawk River, to the highway's intersection with State Highway 5 in Fonda; then
</P>
<P>(14) Proceed east along State Highway 5 to its intersection with State Highway 67 in Amsterdam; then
</P>
<P>(15) Proceed east along State Highway 67 to its intersection with an unnamed light-duty road known locally as Morrow Road; then
</P>
<P>(16) Proceed northeast in a straight line, crossing over the southeastern corner of the Gloversville map and onto the Glens Falls map, to the point where Daly Creek empties into Great Sacandaga Lake; then
</P>
<P>(17) Proceed northeast, then east along the southern shore of Great Sacandaga Lake to its confluence with the Hudson River in the town of Lake Luzerne; then
</P>
<P>(18) Proceed south, then easterly along the southern bank of the Hudson River to its intersection with U.S. Highway 9 in South Glens Falls; then
</P>
<P>(19) Proceed northwest along U.S. Highway 9, crossing the Hudson River, and returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-152, 83 FR 62709, Dec. 6, 2018]


</CITA>
</DIV8>


<DIV8 N="§ 9.265" NODE="27:1.0.1.1.7.3.45.245" TYPE="SECTION">
<HEAD>§ 9.265   Van Duzer Corridor.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Van Duzer Corridor”. For purposes of part 4 of this chapter, “Van Duzer Corridor” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The five United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Van Duzer Corridor viticultural area are titled:
</P>
<P>(1) Sheridan, Oreg., 1956; revised 1992;
</P>
<P>(2) Ballston, Oreg., 1956; revised 1992;
</P>
<P>(3) Dallas, Oreg., 1974; photorevised 1986;
</P>
<P>(4) Amity, Oreg., 1957; revised 1993; and
</P>
<P>(5) Rickreall, Oreg., 1969; photorevised 1976;
</P>
<P>(c) <I>Boundary.</I> The Van Duzer Corridor viticultural area is located in Polk and Yamhill Counties, in Oregon. The boundary of the Van Duzer Corridor viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Sheridan map at the intersection of State Highway 22 and Red Prairie Road. From the beginning point, proceed southeasterly along State Highway 22 for a total of 12.4 miles, crossing over the Ballston and Dallas maps and onto the Rickreall map, to the intersection of the highway with the 200-foot elevation contour west of the Oak Knoll Golf Course; then
</P>
<P>(2) Proceed north on the 200-foot elevation contour, crossing onto the Amity map, to the third intersection of the elevation contour with Frizzell Road; then
</P>
<P>(3) Proceed east on Frizzell Road for 0.3 mile to the intersection of the road with Oak Grove Road; then
</P>
<P>(4) Proceed north along Oak Grove Road for 1.7 miles to the intersection of the road with Zena Road; then
</P>
<P>(5) Proceed east on Zena Road for approximately 0.25 mile to the second intersection of the road with the 200-foot elevation contour; then
</P>
<P>(6) Proceed northwest along the 200-foot elevation contour to the intersection of the elevation contour with Oak Grove Road; then
</P>
<P>(7) Proceed north along Oak Grove Road (which becomes Old Bethel Road) approximately 7.75 miles to the intersection of the road with Patty Lane; then
</P>
<P>(8) Proceed west in a straight line for a total of 10.8 miles, crossing over the Ballston map and onto the Sheridan map, to the intersection of the line with State Highway 18; then
</P>
<P>(9) Proceed southwest along State Highway 18 for 0.3 miles to the intersection of the highway with Red Prairie Road; then
</P>
<P>(10) Proceed south along Red Prairie Road for approximately 5.3 miles, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-155, 83 FR 64280, Dec. 14, 2018]


</CITA>
</DIV8>


<DIV8 N="§ 9.266" NODE="27:1.0.1.1.7.3.45.246" TYPE="SECTION">
<HEAD>§ 9.266   Crest of the Blue Ridge Henderson County.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Crest of the Blue Ridge Henderson County”. For purposes of part 4 of this chapter, “Crest of the Blue Ridge Henderson County” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The nine United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Crest of the Blue Ridge Henderson County viticultural area are titled:
</P>
<P>(1) Black Mountain, North Carolina, 1941; photorevised 1978;
</P>
<P>(2) Bat Cave, North Carolina, 1997;
</P>
<P>(3) Cliffield Mountain, North Carolina, 1946; photorevised 1991;
</P>
<P>(4) Saluda, North Carolina-South Carolina, 1983 (provisional edition);
</P>
<P>(5) Zirconia, North Carolina-South Carolina, 1997;
</P>
<P>(6) Standingstone Mountain, South Carolina-North Carolina, 1997;
</P>
<P>(7) Horse Shoe, North Carolina, 1997;
</P>
<P>(8) Hendersonville, North Carolina, 1997; and
</P>
<P>(9) Fruitland, North Carolina, 1997.
</P>
<P>(c) <I>Boundary.</I> The Crest of the Blue Ridge Henderson County viticultural area is located in Henderson County, North Carolina. The boundary of the Crest of the Blue Ridge Henderson County viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Black Mountain map at the 4,412-foot elevation marker atop Little Pisgah Mountain, along the shared Buncombe-Henderson county line. From the beginning point, proceed southeast along the Buncombe-Henderson county line approximately 4.4 miles, crossing onto the Bat Cave map, to the intersection of the Buncombe-Henderson county line with the shared Henderson-Rutherford county line; then
</P>
<P>(2) Proceed southerly along the shared Henderson-Rutherford county line approximately 5.1 miles to its intersection with the Polk county line; then
</P>
<P>(3) Proceed southwest along the shared Henderson-Polk county line approximately 14.9 miles, crossing over the Cliffield Mountain map and onto the Saluda map, to its intersection with the North Carolina-South Carolina border; then
</P>
<P>(4) Proceed westerly along the North Carolina-South Carolina border approximately 8.1 miles, crossing onto the Zirconia map, to the 3,058-foot elevation marker atop Big Top Mountain; then
</P>
<P>(5) Proceed northwest in a straight line approximately 2.0 miles, crossing onto the Standingstone Mountain map, to the center of the highest closing contour atop Maybin Mountain; then
</P>
<P>(6) Proceed northeast in a straight line approximately 2.2 miles, crossing back onto the Zirconia map, to the intersection of an unnamed road, known locally as County Road 1113/Maybin Road, with Mountain Valley Road, also known as County Road 1109/Cabin Creek Road; then
</P>
<P>(7) Proceed northwest along Mountain Valley Road/County Road 1109/Cabin Creek Road approximately 1.3 miles, crossing back onto the Standingstone Mountain map, to its intersection with Pinnacle Mountain Road; then
</P>
<P>(8) Proceed northwest in a straight line approximately 1.0 mile to the intersection of Little Cove Creek with the 2,800-foot elevation contour; then
</P>
<P>(9) Proceed westerly along the 2,800-foot elevation contour approximately 2.4 miles to its intersection with an unnamed creek on the north slope of Stone Mountain that flows into Jeffers Lake; then
</P>
<P>(10) Proceed southwest in a straight line approximately 2.0 miles to the intersection of the shared Henderson-Transylvania county line with the Dupont State Forest boundary atop Hickory Mountain; then
</P>
<P>(11) Proceed northeast along the Henderson-Transylvania county line approximately 2.6 miles, crossing onto the Horse Shoe map, to its intersection with an unnamed road, known locally as Clipper Lane, on the hilltop above the Sentell Cemetery; then
</P>
<P>(12) Proceed northeast in a straight line approximately 1.6 miles to the center of the highest closing contour atop Jeter Mountain; then
</P>
<P>(13) Proceed southeast in a straight line approximately 1.3 miles to the center of the highest closing contour atop Evans Mountain; then
</P>
<P>(14) Proceed northeast in a straight line approximately 2.0 miles to the center of the highest closing contour atop Wolf Mountain; then
</P>
<P>(15) Proceed northeast in a straight line approximately 1.2 miles to the center of the highest closing contour atop Drake Mountain; then
</P>
<P>(16) Proceed northwest in a straight line approximately 0.7 mile to the center of the highest closing contour atop Cantrell Mountain; then
</P>
<P>(17) Proceed northeast in a straight line approximately 3.3 miles to the 2,618-foot elevation marker on the northeast slope of Long John Mountain; then
</P>
<P>(18) Proceed northeast in a straight line approximately 1.4 miles, crossing onto the Hendersonville map, to the center of the highest closing contour atop Stoney Mountain; then
</P>
<P>(19) Proceed northeast in a straight line approximately 0.6 mile to the intersection of Brookside Camp Road with Dixie Highway; then
</P>
<P>(20) Proceed northeast along Brookside Camp Road approximately 2.1 miles, crossing onto the Fruitland map, to its intersection with Locust Grove Road; then
</P>
<P>(21) Proceed northeast along Locust Grove Road approximately 1.4 miles to its intersection with an unnamed trail near Locust Grove Church; then
</P>
<P>(22) Proceed northeast in a straight line approximately 0.7 mile to the 3,442-foot elevation marker atop Rich Mountain; then
</P>
<P>(23) Proceed northwest in a straight line approximately 0.4 mile to the intersection of Southern Leveston Road with an unnamed jeep trail; then
</P>
<P>(24) Proceed northwest along Southern Leveston Road approximately 2.4 miles to its intersection with Hoopers Creek Road; then
</P>
<P>(25) Proceed northeast in a straight line approximately 0.7 mile to the 2,983-foot elevation marker labeled Edneyville-5 atop a peak on Burney Mountain along the shared Henderson-Buncombe county line; then
</P>
<P>(26) Proceed northeast along the Henderson-Buncombe county line approximately 8.2 miles, crossing onto the Black Mountain map, and return to the beginning point atop Little Pisgah Mountain.
</P>
<CITA TYPE="N">[T.D. TTB-156, 84 FR 34784, July 19, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 9.267" NODE="27:1.0.1.1.7.3.45.247" TYPE="SECTION">
<HEAD>§ 9.267   Eastern Connecticut Highlands.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Eastern Connecticut Highlands”. For purposes of part 4 of this chapter, “Eastern Connecticut Highlands” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The one United States Geological Survey (USGS) 1:125,000 scale topographic map used to determine the boundary of the Eastern Connecticut Highlands viticultural area is titled “State of Connecticut.”
</P>
<P>(c) <I>Boundary.</I> The Eastern Connecticut Highlands viticultural area is located in Hartford, New Haven, Tolland, Windham, New London, and Middlesex Counties in Connecticut. The boundary of the Eastern Connecticut Highlands viticultural area is as described below:
</P>
<P>(1) The beginning point is on the State of Connecticut map at the intersection of State Highway 83 and the Massachusetts-Connecticut State line in Somers. From the beginning point, proceed east along the Massachusetts-Connecticut State line approximately 33 miles to the intersection of the shared State line and an unnamed road, known locally as Bonnette Avenue, in Thompson; then
</P>
<P>(2) Proceed southeast along Bonnette Avenue approximately 0.38 mile to its intersection with an unnamed road known locally as Sand Dam Road; then
</P>
<P>(3) Proceed southeast along Sand Dam Road approximately 1.5 miles to its intersection with an unnamed road known locally as Thompson Road; then
</P>
<P>(4) Proceed south along Thompson Road approximately 1,000 feet to its intersection with an unnamed road known locally as Quaddick Town Farm Road; then
</P>
<P>(5) Proceed east then south along Quaddick Town Farm Road approximately 5.5 miles into the town of Putnam, where the road becomes known as East Putnam Road, and continuing south along East Putnam Road approximately 1 mile to its intersection with U.S. Highway 44; then
</P>
<P>(6) Proceed west along U.S. Highway 44 approximately 1 mile to its intersection with an unnamed road known locally as Tucker Hill Road; then
</P>
<P>(7) Proceed south along Tucker Hill Road approximately 0.38 mile to its intersection with an unnamed road known locally as Five Mile River Road; then
</P>
<P>(8) Proceed southwest then west along Five Mile River Road 1.75 miles to its intersection with State Highway 21; then
</P>
<P>(9) Proceed south along State Highway 21 approximately 2 miles to its intersection with State Highway 12; then
</P>
<P>(10) Proceed south along State Highway 12 approximately 1 mile to its intersection with Five Mile River; then
</P>
<P>(11) Proceed west along Five Mile River approximately 0.13 mile to its intersection with the highway marked on the map State Highway 52 (also known as Interstate 395); then
</P>
<P>(12) Proceed south along State Highway 52/Interstate 395 approximately 14.5 miles to its intersection with State Highway 201; then
</P>
<P>(13) Proceed southeast along State Highway 201 approximately 5.25 miles to its intersection with State Highway 165; then
</P>
<P>(14) Proceed southwest along State Highway 165 approximately 10 miles to its intersection with State Highway 2; then
</P>
<P>(15) Proceed west along State Highway 2 approximately 1 mile to its intersection with State Highway 82; then
</P>
<P>(16) Proceed southwest, then northwest, then southwest along State Highway 82 approximately 27.72 miles to its intersection with State Highway 9; then
</P>
<P>(17) Proceed southeast along State Highway 9 approximately 3.7 miles to its intersection with State Highway 80; then
</P>
<P>(18) Proceed west along State Highway 80 approximately 15.7 miles to its intersection with State Highway 77; then
</P>
<P>(19) Proceed north along State Highway 77 approximately 8.3 miles to its intersection with State Highway 17; then
</P>
<P>(20) Proceed northeast along State Highway 17 approximately 6.8 miles to the point where it becomes concurrent with State Highway 9; then
</P>
<P>(21) Proceed north along concurrent State Highway 17-State Highway 9 approximately 0.75 mile the point where State Highway 17 departs from State Highway 9; then
</P>
<P>(22) Proceed east along State Highway 17 approximately 0.25 mile, crossing over the Connecticut River, to the highway's intersection with State Highway 17A; then
</P>
<P>(23) Proceed north along State Highway 17A approximately 3 miles to its intersection with State Highway 17; then
</P>
<P>(24) Proceed north along State Highway 17 approximately 8 miles to its intersection with State Highway 94; then
</P>
<P>(25) Proceed east along State Highway 94 approximately 4 miles to its intersection with State Highway 83; then
</P>
<P>(26) Proceed north along State Highway 83 approximately 25 miles, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-157, 84 FR 54781, Oct. 10, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 9.268" NODE="27:1.0.1.1.7.3.45.248" TYPE="SECTION">
<HEAD>§ 9.268   Tualatin Hills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Tualatin Hills”. For purposes of part 4 of this chapter, “Tualatin Hills” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 6 United States Geological Survey (USGS) 1:24,000 scale topographic maps and the single 1:250,000 scale topographic map used to determine the boundary of the Tualatin Hills viticultural area are titled:
</P>
<P>(1) Vancouver, 1974 (1:250,000);
</P>
<P>(2) Dixie Mountain, OR, 2014;
</P>
<P>(3) Gaston, OR, 2014;
</P>
<P>(4) Laurelwood, OR, 2014;
</P>
<P>(5) Forest Grove, OR, 2014;
</P>
<P>(6) Hillsboro, OR, 2014; and
</P>
<P>(7) Linnton, OR, 2014.
</P>
<P>(c) <I>Boundary.</I> The Tualatin Hills viticultural area is located in Clackamas, Multnomah and Washington Counties, in Oregon. The boundary of the Tualatin Hills viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Dixie Mountain map at the intersection of North West Skyline Boulevard and North West Moreland Road. From the beginning point, proceed southwesterly along North West Moreland Road for approximately 1.3 miles to road's intersection with the Multnomah-Washington County line; then
</P>
<P>(2) Proceed south along the Multnomah-Washington County for approximately 1.2 miles to the county line's intersection with the 1,000-foot elevation contour; then
</P>
<P>(3) Proceed northwesterly along the 1,000-foot elevation contour, crossing onto the Vancouver map and continuing generally southwesterly along the meandering 1,000-foot elevation contour to its intersection with the Washington-Yamhill County line; then
</P>
<P>(4) Proceed east along the Washington-Yamhill County line, crossing onto the Gaston map, to the intersection of the county line with NW South Road; then
</P>
<P>(5) Proceed northeast along NW South Road to its intersection with SW South Road; then
</P>
<P>(6) Proceed northeasterly along SW South Road to its intersection with the 200-foot elevation contour; then
</P>
<P>(7) Proceed easterly along the 200-foot elevation contour for approximately 1.9 miles to its intersection with East Main Street/SW Gaston Road in the village of Gaston; then
</P>
<P>(8) Proceed south, then east along SW Gaston Road for approximately 0.9 mile, crossing onto the Laurelwood map, to the road's intersection with the 240-foot contour line just south of an unnamed road known locally as SW Dixon Mill Road; then
</P>
<P>(9) Proceed north along the meandering 240-foot elevation contour for approximately 5 miles to its intersection with SW Sandstrom Road; then
</P>
<P>(10) Proceed west along SW Sandstrom Road for approximately 0.15 mile to its third crossing of the 200-foot elevation contour; then
</P>
<P>(11) Proceed northwesterly and then northeasterly along the meandering 200-foot contour line for approximately 2.9 miles to its intersection with an unnamed road known locally as SW Fern Hill Road, north of an unnamed road known locally as SW Blooming Fern Hill Road; then
</P>
<P>(12) Proceed north along SW Fern Hill Road for approximately 1.2 miles, crossing onto the Forest Grove map, to the road's intersection with Oregon Highway 47; then
</P>
<P>(13) Proceed northerly along Oregon Highway 47 for approximately 7.6 miles to its intersection with Oregon Highway 6/NW Wilson River Highway; then
</P>
<P>(14) Proceed east along Oregon Highway 6/NW Wilson River Highway for approximately 2.5 miles to its intersection with Sunset Highway; then
</P>
<P>(15) Proceed southeast along Sunset Highway for approximately 2.3 miles to its intersection with the railroad tracks; then
</P>
<P>(16) Proceed east along the railroad tracks, crossing onto the Hillsboro map, to the intersection of the railroad tracks and an unnamed road known locally as NW Dick Road; then
</P>
<P>(17) Proceed south along NW Dick Road for approximately 0.3 mile to its intersection with NW Phillips Road; then
</P>
<P>(18) Proceed east along NW Phillips Road for approximately 1.2 miles, crossing onto the Linnton map, to the road's intersection with an unnamed road known locally as NW Old Cornelius Pass Road; then
</P>
<P>(19) Proceed northeast along NW Old Cornelius Pass Road to its intersection with NW Skyline Boulevard Road; then
</P>
<P>(20) Proceed north and west along NW Skyline Boulevard for approximately 10.5 miles, crossing over the northeast corner of the Hillsboro map and onto the Dixie Mountain map and then returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-160, 85 FR 34099, June 3, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 9.269" NODE="27:1.0.1.1.7.3.45.249" TYPE="SECTION">
<HEAD>§ 9.269   Laurelwood District.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Laurelwood District”. For purposes of part 4 of this chapter, “Laurelwood District” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The six United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Laurelwood District viticultural area are titled:
</P>
<P>(1) Laurelwood, OR, 2014;
</P>
<P>(2) Scholls, Oreg., 1961; photorevised 1985;
</P>
<P>(3) Newberg, OR, 2014;
</P>
<P>(4) Beaverton, Oreg., 1961; photorevised 1984;
</P>
<P>(5) Sherwood, Oreg., 1961; photorevised 1985; and
</P>
<P>(6) Dundee, Oreg., 1956; revised 1993.
</P>
<P>(c) <I>Boundary.</I> The Laurelwood District viticultural area is located in Washington and Yamhill Counties, in Oregon. The boundary of the Laurelwood District viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Laurelwood map at the intersection of Winters Road and Blooming Fern Hill Road in section 17, T1S/R3W. From the beginning point, proceed west then northwest along Blooming Fern Hill Road for approximately 0.4 mile to its intersection with the 200-foot elevation contour; then
</P>
<P>(2) Proceed north then northeasterly along the 200-foot elevation contour for 1.5 miles to its intersection with SW La Follette Road; then
</P>
<P>(3) Proceed south along SW La Follette Road for 0.25 mile to its intersection with the 240-foot elevation contour, north of Blooming Fern Hill Road; then
</P>
<P>(4) Proceed easterly then southerly along the 240-foot elevation contour, crossing onto the Scholls map and back onto the Laurelwood map, for a total of 17 miles to the intersection of the elevation contour with SW Laurel Road; then
</P>
<P>(5) Proceed east along SW Laurel Road for 0.15 mile to its intersection with the 200-foot elevation contour; then
</P>
<P>(6) Proceed easterly along the 200-foot elevation contour, crossing over the Scholls map and onto the Newberg map, then crossing Heaton Creek and back onto the Scholls map for a total of 17.5 miles to the intersection of the elevation contour with Mountain Home Road east of Heaton Creek; then
</P>
<P>(7) Proceed easterly then southerly along the 200-foot elevation contour, crossing over the Beaverton and Sherwood maps and back onto the Scholls map for a total of 8.9 miles to the intersection of the elevation contour with the middle tributary of an unnamed stream along the western boundary of section 24, T2S/R2W; then
</P>
<P>(8) Proceed southeast along the 200-foot elevation contour, crossing over the northeast corner of the Newberg map and onto the Sherwood map, to the intersection of the elevation contour with Edy Road in section 25, T2S/R2W; then
</P>
<P>(9) Proceed southwest along the 200-foot elevation contour, crossing onto the Newberg map and back onto the Sherwood map, to the intersection of the elevation contour with Elwert Road along the eastern boundary of section 25, T2S/R2W; then
</P>
<P>(10) Proceed south along Elwert Road for 0.85 mile to its intersection with an unnamed highway known locally as Oregon Highway 99W, along the eastern boundary of section 36, T2S/R2W; then
</P>
<P>(11) Proceed southwesterly along Oregon Highway 99W for 0.45 mile to its intersection with the 250-foot elevation contour immediately south of an unnamed tributary of Cedar Creek in section 36, T2S/R2W; then
</P>
<P>(12) Proceed southerly along the 250-foot elevation contour for 1 mile to its intersection with Middleton Road in section 1, T2S/R2W; then
</P>
<P>(13) Proceed southwesterly along Middleton Road, which becomes Rein Road, for 0.5 mile to the intersection of the road with the 200-foot elevation contour immediately south of Cedar Creek; then
</P>
<P>(14) Proceed easterly along the 200-foot elevation contour for 1.6 miles to its intersection with an unnamed light-duty east-west road known locally as Brookman Road in the village of Middleton, section 6, T3S/R1W; then
</P>
<P>(15) Proceed east on Brookman Road for 0.4 mile to its intersection with the shared Washington-Clackamas County line at the western corner of section 5, T3S/R1W; then
</P>
<P>(16) Proceed south along the Washington-Clackamas County line for 1 mile to its intersection with Parrett Mountain Road along the eastern boundary of section 7, T3S/R1W; then
</P>
<P>(17) Proceed southwesterly along Parrett Mountain Road, crossing onto the Newberg map, for a total of 2.6 miles, to the intersection with an unnamed local road known locally as NE Old Parrett Mountain Road; then
</P>
<P>(18) Proceed west along NE Old Parrett Mountain Road for 1.7 mile to its intersection with NE Schaad Road; then
</P>
<P>(19) Proceed west along NE Schaad Road for 0.5 mile to its intersection with an unnamed local road known locally as NE Corral Creek Road; then
</P>
<P>(20) Proceed north along NE Corral Creek Road for 0.9 mile to its westernmost intersection with an unnamed local road known locally as NE Veritas Lane, south of Oregon Highway 99W; then
</P>
<P>(21) Proceed north westerly in a straight line for approximately 0.05 mile to the intersection of Oregon Highway 99W and the 250-foot elevation contour; then
</P>
<P>(22) Proceed northwesterly along the 250-foot elevation contour for 1 mile to its intersection with the second, westernmost intermittent stream that is an unnamed tributary of Spring Brook; then
</P>
<P>(23) Proceed northerly along the unnamed stream, crossing the single-gauge railroad track, for 0.5 mile to the intersection of the stream with the 430-foot elevation contour; then
</P>
<P>(24) Proceed west along the 430-foot elevation contour for 0.25 mile, crossing an unnamed road known locally as Owls Lane, to the intersection of the elevation contour with NE Kincaid Road; then
</P>
<P>(25) Proceed northwesterly along NE Kincaid Road for 0.25 mile to its intersection with NE Springbrook Road; then
</P>
<P>(26) Proceed northwesterly along NE Springbrook Road for 0.22 mile to its intersection with an unnamed road known locally as Bell Road; then
</P>
<P>(27) Proceed east along Bell Road for 0.5 mile, making a sharp northwesterly turn, then continuing along the road for 0.2 mile to its intersection with Mountain Top Road; then
</P>
<P>(28) Proceed northwesterly along Mountain Top Road for 1.9 miles to its intersection with SW Hillsboro Highway, also known as Highway 219; then
</P>
<P>(29) Proceed north along SW Hillsboro Highway for 0.1 mile to its intersection with Mountain Top Road at the Washington-Yamhill County line; then
</P>
<P>(30) Proceed northwest along Mountain Top Road for 3.1 miles, crossing onto the Dundee map, to the intersection of the road with Bald Peak Road in section 26, T2S/R3W; then
</P>
<P>(31) Proceed northwest, then northeast, then north along Bald Peak Road, crossing onto the Laurelwood map, for a total of 4.8 miles, to the intersection of the road with SW Laurelwood Road; then
</P>
<P>(32) Proceed southwest, then northwest, along SW Laurelwood Road for 0.8 mile to its intersection with the 700-foot elevation contour; then
</P>
<P>(33) Proceed northeast, then northwest, then north along the 700-foot elevation contour for 5 miles, passing west of Iowa Hill and Spring Hill, to the intersection of the elevation contour and SW Winters Road; then
</P>
<P>(34) Proceed north on SW Winters Road for 2 miles, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-160, 85 FR 34099, June 3, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 9.270" NODE="27:1.0.1.1.7.3.45.250" TYPE="SECTION">
<HEAD>§ 9.270   Alisos Canyon.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Alisos Canyon”. For purposes of part 4 of this chapter, “Alisos Canyon” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Alisos Canyon viticultural area are titled:
</P>
<P>(1) Foxen Canyon, CA, 1995; and
</P>
<P>(2) Zaca Creek, Calif., 1959.
</P>
<P>(c) <I>Boundary.</I> The Alisos Canyon viticultural area is located in Santa Barbara County, California. The boundary of the Alisos Canyon viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Foxen Canyon map at an unnamed hilltop with a marked elevation of 1,137 feet, located west of the Cañada de los Coches in the La Laguna Grant. From the beginning point, proceed east in a straight line for 3.71 miles to the intersection of two unnamed, unimproved roads north of Rancho San Juan; then
</P>
<P>(2) Proceed east-southeast in a straight line for approximately 1.2 miles to an unnamed hilltop with a marked elevation of 1,424 feet in the La Laguna Grant; then
</P>
<P>(3) Proceed southwest in a straight line for approximately 1.7 miles, crossing onto the Zaca Creek map, to a point designated “Oil,” adjacent to the north fork of San Antonio Creek and the intersection of three unnamed light-duty roads in the Cañada del Comasa, La Laguna Grant; then
</P>
<P>(4) Proceed west-southwest in a straight line for approximately 1.56 miles to the intersection of the north fork of San Antonio Creek and the 800-foot elevation contour in the Cañada del Comasa, La Laguna Grant; then
</P>
<P>(5) Proceed west in a straight line 1.95 miles to an unnamed rectangular structure northeast of the terminus of an unnamed, unimproved road north of U.S. Highway 101 and BM 684 in the La Laguna Grant; then
</P>
<P>(6) Proceed northwesterly in a straight line 0.32 mile to the intersection of Alisos Canyon Road and an unnamed, unimproved road east of the Cañada de los Coches in the La Laguna Grant; then
</P>
<P>(7) Proceed north-northwest in a straight line for 1.68 miles, crossing onto the Foxen Canyon map, to an unnamed hilltop with a marked elevation of 997 feet in the La Laguna Grant; then
</P>
<P>(8) Proceed northeast in a straight line for 0.5 mile to return to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB 1611, 85 FR 52273, Aug. 25, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 9.271" NODE="27:1.0.1.1.7.3.45.251" TYPE="SECTION">
<HEAD>§ 9.271   Royal Slope.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Royal Slope”. For purposes of part 4 of this chapter, “Royal Slope” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The one United States Geological Survey (USGS) 1:100,000 scale topographic map used to determine the boundary of the Royal Slope viticultural area is “Priest Rapids, WA,” 2015.
</P>
<P>(c) <I>Boundary.</I> The Royal Slope viticultural area is located in Grant and Adams Counties in Washington. The boundary of the Royal Slope viticultural area is as described below:
</P>
<P>(1) The point of the beginning is on the Priest Rapids map at the intersection of the 250 meter elevation contour and the northern boundary of Section 8, T17N/R23E. From the beginning point, proceed east for approximately 7 miles along the northern boundaries of Sections 8, 9, 10, 11, and 12, T17N/R23E, and Sections 7 and 8, T17N/R24E to the northeast corner of Section 8, T17N/R24E; then
</P>
<P>(2) Proceed south for approximately 1 mile along the eastern boundary of Section 8 to the southeast corner of Section 8, T17N/R24 E; then
</P>
<P>(3) Proceed east for approximately 4 miles along the southern boundaries of Sections 9, 10, 11, and 12, T17N/R24E, to the southeastern corner of Section 12, T17N/R24E; then
</P>
<P>(4) Proceed north for approximately 1.8 miles along the eastern boundaries of Sections 12 and 1, T17N/R24E, to the intersection of the eastern boundary of Section 1 and the southern boundary of the Desert Unit of the Columbia Basin State Wildlife Area; then
</P>
<P>(5) Proceed easterly for approximately 20 miles along the boundary of the Desert Unit of the Columbia Basin State Wildlife Area to the intersection of the wildlife area boundary with O'Sullivan Dam Road/State Highway 262; then
</P>
<P>(6) Proceed east for approximately 1.5 miles along O'Sullivan Dam Road/State Highway 262 to the intersection of the road with an unnamed road known locally as H Road SE; then
</P>
<P>(7) Proceed southeasterly for approximately 1.6 miles along H Road SE to the intersection of the road with the southern boundary of Section 16, T17N/R28E; then
</P>
<P>(8) Proceed east for approximately 0.4 mile along the southern boundary of Section 16 to the intersection of the southeastern corner of Section 16, T17N/R28E, and the western boundary of the Columbia National Wildlife Refuge; then
</P>
<P>(9) Proceed southerly, then southwesterly, for approximately 8 miles along the western boundary of the Columbia National Wildlife Refuge and the concurrent western boundary of the Goose Lakes Unit of the Columbia Basin State Wildlife Area to the intersection of the wildlife refuge boundary with the eastern boundary of Section 14, T16N/R27E; then
</P>
<P>(10) Proceed south along the eastern boundaries of Sections 14, 23, 26, and 35, T16N/R27E, to the intersection of the eastern boundary of Section 35 with State Highway 26; then
</P>
<P>(11) Proceed northwesterly for approximately 3 miles along State Highway 26 to the intersection of the highway with the 250-meter elevation contour in the southwest corner of Section 21, T16/R27E; then
</P>
<P>(12) Proceed westerly for approximately 28 miles along the 250-meter elevation contour to the intersection of the elevation contour with the eastern boundary of Section 26, T16N/R23E; then
</P>
<P>(13) Proceed north for approximately 1,100 feet along the eastern boundary of Section 26 to the northeast corner of Section 26, T16N/R23E; then
</P>
<P>(14) Proceed west for 1 mile along the northern boundary of Section 26, T16N/R23E, to the intersection with the eastern boundary of Section 22, T16N/R23E; then
</P>
<P>(15) Proceed north for 1 mile along the eastern boundary of Section 22 to the northern boundary of Section 22, T16N/R23E; then
</P>
<P>(16) Proceed west for approximately 1.05 miles along the northern boundary of Section 22, T16N/R23E, to the intersection of the section boundary with the 250-meter elevation contour; then
</P>
<P>(17) Proceed northerly for approximately 10 miles along the 250-meter elevation contour to return to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-162, 85 FR 54493, Sept. 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 9.272" NODE="27:1.0.1.1.7.3.45.252" TYPE="SECTION">
<HEAD>§ 9.272   Candy Mountain.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Candy Mountain”. For purposes of part 4 of this chapter, “Candy Mountain” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Candy Mountain viticultural area are titled:
</P>
<P>(1) Badger Mountain, Washington, 2013;
</P>
<P>(2) Benton City, Washington, 2013; and
</P>
<P>(3) Richland, Washington, 2014.
</P>
<P>(c) <I>Boundary.</I> The Candy Mountain viticultural area is located in Benton County in Washington. The boundary of the Candy Mountain viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Badger Mountain map at the southernmost point of an unnamed road known locally as Arena Road. From the beginning point, proceed northwest in a straight line for approximately 1.85 miles, crossing onto the Benton City map, to the intersection with East Kennedy Road NE; then
</P>
<P>(2) Proceed westerly along East Kennedy Road NE for approximately 2,500 feet to the intersection with an intermittent creek approximately 0.8 mile south of Lost Lake; then
</P>
<P>(3) Proceed southeasterly along the easternmost fork of the intermittent creek to the intersection with Interstate 82; then
</P>
<P>(4) Proceed southeast along Interstate 82 for 2.25 miles, crossing over the Richland map and onto the Badger Mountain map, and continuing along the ramp onto Interstate 182 to a point due south of the intersection of Dallas Road and an unnamed road known locally as East 260 Private Road NE; then
</P>
<P>(5) Proceed north in a straight line for 0.5 mile, crossing onto the Richland map, to the intersection of Dallas Road and the 670-foot elevation contour; then
</P>
<P>(6) Proceed west along the 670-foot elevation contour for 0.4 mile to the intersection with Arena Road; then
</P>
<P>(7) Proceed southerly along Arena Road for approximately 0.45 miles, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-163, 85 FR 60361, Sept. 25, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 9.273" NODE="27:1.0.1.1.7.3.45.253" TYPE="SECTION">
<HEAD>§ 9.273   Tehachapi Mountains.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Tehachapi Mountains”. For purposes of part 4 of this chapter, “Tehachapi Mountains” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The eight United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Tehachapi Mountains viticultural area are titled:
</P>
<P>(1) Bear Mountain, CA, 2015;
</P>
<P>(2) Keene, CA, 2015;
</P>
<P>(3) Cummings Mountain, CA, 2015;
</P>
<P>(4) Tehachapi North, CA, 2015;
</P>
<P>(5) Tehachapi NE, CA, 2015;
</P>
<P>(6) Monolith, CA, 2015;
</P>
<P>(7) Tehachapi South, CA, 2015; and
</P>
<P>(8) Tejon Ranch, CA, 2015.
</P>
<P>(c) <I>Boundary.</I> The Tehachapi Mountains viticultural area is located in Kern County, California. The boundary of the Tehachapi Mountains viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Bear Mountain map at the intersection of the 4,800-foot elevation contour and an unnamed road known locally as Skyline Drive. From the beginning point, proceed easterly along the 4,800-foot elevation contour, crossing onto the Keene map, to the intersection of the 4,800-foot elevation contour and Horizon Court; then
</P>
<P>(2) Proceed south along Horizon Court to its intersection with the 4,600-foot elevation contour; then
</P>
<P>(3) Proceed east, then north along the meandering 4,600-foot elevation contour to its intersection with Shenandoah Place; then
</P>
<P>(4) Proceed southeast in a straight line to the 4,400-foot elevation contour south of an unnamed road known locally as Big Sky Court; then
</P>
<P>(5) Proceed east, then north along the meandering 4,400-foot elevation contour to its intersection with Bear Valley Road; then
</P>
<P>(6) Proceed east in a straight line to the 4,600-foot elevation contour; then
</P>
<P>(7) Proceed southeasterly along the 4,600-foot elevation contour, crossing onto the Cummings Mountain map and continuing southeasterly, then northerly along the 4,600-foot elevation contour, crossing back onto the Keene map, and continuing northerly along the 4,600-foot elevation contour to a point due west of the intersection of Marcel Drive and an unnamed road known locally as Woodford-Tehachapi Road; then
</P>
<P>(8) Proceed east in a straight line to the intersection of Woodford-Tehachapi Road and Marcel Drive; then
</P>
<P>(9) Proceed east in a straight line, crossing onto the Tehachapi North map and crossing Tehachapi Creek, to the 4,400-foot elevation contour northeast of the community of Cable, California; then
</P>
<P>(10) Proceed easterly along the 4,400-foot elevation contour, crossing onto the Tehachapi NE map, and continuing southeasterly along the 4,400-foot elevation contour to a point due west of the terminus of Zephyr Court; then
</P>
<P>(11) Proceed east in a straight line to the terminus of Zephyr Court; then
</P>
<P>(12) Proceed east in a straight line to Sand Canyon Road; then
</P>
<P>(13) Proceed south along Sand Canyon Road, crossing onto the Monolith map, to its intersection with East Tehachapi Boulevard; then
</P>
<P>(14) Proceed southwesterly in a straight line, crossing the railroad tracks and State Route 58, to the 4,200-foot elevation contour; then
</P>
<P>(15) Proceed westerly along the 4,200-foot elevation contour to its intersection with an unnamed intermittent creek; then
</P>
<P>(16) Proceed southwest in a straight line to the 4,400-foot elevation contour; then
</P>
<P>(17) Proceed west along the 4,400-foot elevation contour, crossing onto the Tehachapi South map, to its intersection with Tehachapi-Willow Springs Road; then
</P>
<P>(18) Proceed south along Tehachapi-Willow Springs Road to its intersection with the 4,520-foot elevation contour; then
</P>
<P>(19) Proceed west in a straight line to the intersection of the 4,840-foot elevation contour and Snowshoe Lane; then
</P>
<P>(20) Proceed north in a straight line to the 4,800-foot elevation contour; then
</P>
<P>(21) Proceed westerly along the 4,800-foot elevation contour, crossing onto the Cummings Mountain map and over two unnamed intermittent streams, and continuing to the intersection of the 4,800-foot elevation contour and a third unnamed intermittent stream; then
</P>
<P>(22) Proceed south in a straight line to the 5,200-foot elevation contour; then
</P>
<P>(23) Proceed southerly along the 5,200-foot elevation contour to a point northeast of the southern terminus of Arosa Road; then
</P>
<P>(24) Proceed east in a straight line, crossing onto the Tehachapi South map and over an unnamed road known locally as Water Canyon Road, to the 5,400-foot elevation contour; then
</P>
<P>(25) Proceed southeasterly, then south, then southwesterly along the 5,400-foot elevation contour, crossing onto the Cummings Mountain map and continuing to the intersection of the 5,400-foot elevation contour with an unnamed road known locally as Matterhorn Drive; then
</P>
<P>(26) Proceed west in a straight line, crossing Mountain Climber Way, to the 4,600-foot elevation contour; then
</P>
<P>(27) Proceed westerly along the 4,600-foot elevation contour to its intersection with High Gun Drive; then
</P>
<P>(28) Proceed south in a straight line to the second intersection of the line with the 5,000-foot elevation contour; then
</P>
<P>(29) Proceed west in a straight line, crossing onto the Tejon Ranch map, to the line's intersection with an unnamed 4-wheel drive road; then
</P>
<P>(30) Proceed northwesterly along the 4-wheel drive road to its intersection with the southern terminus of an unnamed road known locally as Carlisle Drive; then
</P>
<P>(31) Proceed southwesterly in a straight line to an unmarked 4,680-foot summit; then
</P>
<P>(32) Proceed north in a straight line to the 3,640-foot elevation contour; then
</P>
<P>(33) Proceed west in a straight line to the 3,600-foot elevation contour; then
</P>
<P>(34) Proceed west, then northwesterly along the 3,600-foot elevation contour to its intersection with an unnamed intermittent stream northwest of Jack Springs Road; then
</P>
<P>(35) Proceed northeast in a straight line, crossing onto the Bear Mountain map, and continuing to the intersection of the 4,800-foot elevation contour and an unnamed intermittent creek west of Rockspring Court; then
</P>
<P>(36) Proceed north along the 4,800-foot elevation to a point due west of the intersection of the 4,800-foot elevation point and an unnamed road known locally as Skyline Drive; then
</P>
<P>(37) Proceed east in a straight line to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-164, 85 FR 73619, Nov. 19, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 9.274" NODE="27:1.0.1.1.7.3.45.254" TYPE="SECTION">
<HEAD>§ 9.274   Palos Verdes Peninsula.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Palos Verdes Peninsula”. For purposes of part 4 of this chapter, “Palos Verdes Peninsula” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Palos Verdes Peninsula viticultural area are titled:
</P>
<P>(1) Redondo Beach, CA, 1996;
</P>
<P>(2) Torrance, Calif., 1964 (photorevised 1981); and
</P>
<P>(3) San Pedro Calif., 1964 (photorevised 1981).
</P>
<P>(c) <I>Boundary.</I> The Palos Verdes Peninsula viticultural area is located in the southwestern coastal region of Los Angeles County, and contains the cities of Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, and Rancho Palos Verdes, California. The boundary of the Palos Verdes Peninsula viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Redondo Beach map at the intersection of the Pacific Ocean and the Torrance corporate boundary at Malaga Cove, R14W/T4S; then
</P>
<P>(2) From the beginning point, proceed east, then generally southeast, along the Torrance corporate boundary, crossing onto the Torrance map, to the corporate boundary's intersection with the Lomita corporate boundary, R14W/T4S; then
</P>
<P>(3) Proceed generally southeast along the Lomita corporate boundary to its intersection with Western Avenue, R14W/T4S; then
</P>
<P>(4) Proceed south along Western Avenue, crossing onto the San Pedro map, to the road's intersection with the Los Angeles city boundary, R14W/T5S; then
</P>
<P>(5) Proceed west, then generally south, then southwest along the Los Angeles city boundary to its intersection with the Pacific Ocean at Palos Verdes Peninsula Park, R14W/T5S; then
</P>
<P>(6) Proceed clockwise along the Pacific coastline to return to the beginning point.</P>
<CITA TYPE="N">[T.D. TTB-166, 86 FR 32191, June 17, 2021]


</CITA>
</DIV8>


<DIV8 N="§ 9.275" NODE="27:1.0.1.1.7.3.45.255" TYPE="SECTION">
<HEAD>§ 9.275   White Bluffs.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “White Bluffs”. For purposes of part 4 of this chapter, “White Bluffs” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 10 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the White Bluffs viticultural area are titled:
</P>
<P>(1) Hanford, NE, Washington, 1986;
</P>
<P>(2) Mesa West, Washington, 1986;
</P>
<P>(3) Wooded Island, Washington, 1992;
</P>
<P>(4) Matthews Corner, Washington, 1992;
</P>
<P>(5) Basin City, Washington, 1986;
</P>
<P>(6) Eltopia, Washington, 1992;
</P>
<P>(7) Eagle Lakes, Washington, 1986;
</P>
<P>(8) Savage Island, Washington, 1986;
</P>
<P>(9) Richland, Washington, 1992; and
</P>
<P>(10) Columbia Point, Washington, 1992.
</P>
<P>(c) <I>Boundary.</I> The White Bluffs viticultural area is located in Franklin County in Washington. The boundary of the White Bluffs viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Richland map at the intersection of Columbia River Road and an unnamed secondary highway known locally as Sagemoor Road. From the beginning point, proceed north along Columbia River Road, crossing onto the Wooded Island map, to the Potholes Canal; then
</P>
<P>(2) Proceed west along the Potholes Canal for 150 feet to its intersection with the shoreline of the Columbia River; then
</P>
<P>(3) Proceed north along the Columbia River shoreline, crossing onto the Savage Island map, to the intersection of the shoreline with the Wahluke Slope Habitat Management boundary on Ringold Flat; then
</P>
<P>(4) Proceed east, then generally northwesterly, along the Wahluke Slope Habitat Management boundary to its intersection with the 950-foot elevation contour along the western boundary of section 16, T13N/R29E; then
</P>
<P>(5) Proceed easterly, then generally northeasterly, along the 950-foot elevation contour, passing over the Hanford NE map and onto the Eagle Lakes map, to the intersection of the elevation contour with an unimproved road in the southeast corner of section 32, T14N/T29E; then
</P>
<P>(6) Proceed east along the unimproved road for 100 feet to its intersection with an unnamed light-duty improved road known locally as Albany Road; then
</P>
<P>(7) Proceed south along Albany Road, crossing onto the Basin City map, to the road's intersection with an unnamed improved light-duty road known locally as Basin Hill Road along the southern boundary of section 21, T13N/R29E; then
</P>
<P>(8) Proceed south in a straight line for 2 miles to an improved light-duty road known locally as W. Klamath Road; then
</P>
<P>(9) Proceed east along W. Klamath Road, crossing onto the Mesa West map, to the road's intersection with another improved light-duty road known locally as Drummond Road; then
</P>
<P>(10) Proceed north along Drummond Road for 0.75 mile to its intersection with a railroad; then
</P>
<P>(11) Proceed easterly along the railroad to its intersection with an improved light-duty road known locally as Langford Road in the northeastern corner of section 4, T12N/R30E; then
</P>
<P>(12) Proceed south along Langford Road for 0.5 mile to its intersection with the 800-foot elevation contour; then
</P>
<P>(13) Proceed southwesterly along the 800-foot elevation contour, crossing onto the Eltopia map, to the contour's intersection with Eltopia West Road; then
</P>
<P>(14) Proceed east along Eltopia West Road to its intersection with the 700-foot elevation contour; then
</P>
<P>(15) Proceed southerly, then northerly along the 700-foot elevation contour, circling Jackass Mountain, to the contour's intersection with Dogwood Road; then
</P>
<P>(16) Proceed west along Dogwood Road for 1.1 mile, crossing onto the Matthews Corner map, to the road's intersection with the 750-foot elevation contour; then
</P>
<P>(17) Proceed southwesterly along the 750-foot elevation contour to its intersection with Taylor Flats Road; then
</P>
<P>(18) Proceed south along Taylor Flats Road, crossing onto the Columbia Point map, to the road's intersection with Birch Road; then
</P>
<P>(19) Proceed west along Birch Road for 1 mile to its intersection with Alder Road; then
</P>
<P>(20) Proceed south along Alder Road for 0.7 mile to its intersection with the 550-foot elevation contour; then
</P>
<P>(21) Proceed westerly along the 550-foot elevation contour to its intersection with Sagemoor Road; then
</P>
<P>(22) Proceed westerly along Sagemoor Road for 0.7 mile, crossing onto the Richland map and returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-167, 86 FR 32188, June 17, 2021]


</CITA>
</DIV8>


<DIV8 N="§ 9.276" NODE="27:1.0.1.1.7.3.45.256" TYPE="SECTION">
<HEAD>§ 9.276   The Burn of Columbia Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “The Burn of Columbia Valley”. For purposes of part 4 of this chapter, “The Burn of Columbia Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of The Burn of Columbia Valley viticultural area are titled:
</P>
<P>(1) Sundale NW, OR-WA, 2017;
</P>
<P>(2) Goodnoe Hills, WA, 2017;
</P>
<P>(3) Dot, WA, 2017; and
</P>
<P>(4) Sundale, WA-OR, 2017.
</P>
<P>(c) <I>Boundary.</I> The Burn of Columbia Valley viticultural area is located in Klickitat County in Washington. The boundary of The Burn of Columbia Valley viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Sundale NW map, at the intersection of the Columbia River and the east shore of Paterson Slough. From the beginning point, proceed northerly along the east shore of Paterson Slough to its junction with Rock Creek, and continuing northeasterly along Rock Creek to its intersection with the boundary of the Yakima Nation Trust Land; then
</P>
<P>(2) Proceed south, then east, then generally northeasterly along the boundary of the Yakima Nation Trust Land, crossing onto the Goodnoe Hills map, to the intersection of the Trust Land boundary with Kelley Road; then
</P>
<P>(3) Proceed north in a straight line to the intersection with the main channel of Chapman Creek; then
</P>
<P>(4) Proceed southeasterly (downstream) along Chapman Creek, crossing over the Dot map and onto the Sundale map, to the intersection of Chapman Creek with its southernmost tributary; then
</P>
<P>(5) Proceed due east in a straight line to the creek running through Old Lady Canyon; then
</P>
<P>(6) Proceed southerly along the creek to its intersection with the northern shoreline of the Columbia River; then
</P>
<P>(7) Proceed westerly along the northern shoreline of the Columbia River, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-168, 86 FR 32194, June 17, 2021]


</CITA>
</DIV8>


<DIV8 N="§ 9.277" NODE="27:1.0.1.1.7.3.45.257" TYPE="SECTION">
<HEAD>§ 9.277   Goose Gap.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Goose Gap”. For purposes of part 4 of this chapter, “Goose Gap” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 4 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Goose Gap viticultural area are titled:
</P>
<P>(1) Benton City, WA, 2017;
</P>
<P>(2) Richland, WA, 2017;
</P>
<P>(3) Badger Mountain, WA, 2017; and
</P>
<P>(4) Webber Canyon, WA, 2017.
</P>
<P>(c) <I>Boundary.</I> The Goose Gap viticultural area is located in Benton County, Washington. The boundary of the Goose Gap viticultural area is as described in paragraphs (c)(1) through (12) of this section:
</P>
<P>(1) The beginning point is on the Benton City map at the intersection of Sections 10, 11, 15, and 14, T9N/R27E. From the beginning point, proceed southwesterly in a straight line for approximately 250 feet to the 700-foot elevation contour in Section 15, T9N/R27E; then
</P>
<P>(2) Proceed southwesterly along the 700-ft elevation contour to its westernmost point in Section 15, T9N/R27E; then
</P>
<P>(3) Proceed southwesterly in a straight line to intersection of the 700-foot elevation contour and an unnamed intermittent stream in Section 16, T9N/R27E; then
</P>
<P>(4) Proceed southwesterly along the unnamed intermittent stream to its intersection with the 600-foot elevation contour in Section 20, T9N/R27E; then
</P>
<P>(5) Proceed south, then southwesterly along the 600-foot elevation contour, crossing onto the Webber Canyon map, for a total of approximately 3 miles to the intersection of the 600-foot elevation contour and the western boundary of Section 27, T9N/R27E; then
</P>
<P>(6) Proceed south along the western boundary of Section 27 to its intersection with the railroad tracks; then
</P>
<P>(7) Proceed southeasterly along the railroad tracks, crossing onto the Badger Mountain map, and continuing along the railroad tracks for a total of approximately 3 miles to the intersection of the railroad tracks with Dallas Road in Section 36, T9N/R27E; then
</P>
<P>(8) Proceed east, then north along Dallas Road for approximately 2 miles to its intersection with Interstate 182 in Section 20, T9N/R28E; then
</P>
<P>(9) Proceed west along Interstate 182 and onto the ramp to Interstate 82, and continue northwesterly along Interstate 82, crossing over the southwestern corner of the Richland map and onto the Benton City map, to the intersection of Interstate 82 and an intermittent stream in Section 13, T9N/R27E; then
</P>
<P>(10) Proceed northwesterly along the intermittent stream to its intersection with E. Kennedy Road NE in Section 13, T9N/R27E; then
</P>
<P>(11) Proceed north in a straight line to the northern boundary of Section 13, T9N/R27E; then
</P>
<P>(12) Proceed westerly along the northern boundaries of Sections 13 and 14, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-170 86 FR 34954, July 1, 2021]


</CITA>
</DIV8>


<DIV8 N="§ 9.278" NODE="27:1.0.1.1.7.3.45.258" TYPE="SECTION">
<HEAD>§ 9.278   Ulupalakua AVA.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Ulupalakua”. For purposes of part 4 of this chapter, “Ulupalakua” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Ulupalakua viticultural area is titled “Makena, Hawaii, 1983.”
</P>
<P>(c) <I>Boundary.</I> The Ulupalakua viticultural area is located on the island of Maui, in Hawaii. The boundary of the Ulupalakua viticultural area is as described in paragraphs (c)(1) through (6) of this section:
</P>
<P>(1) The beginning point is on the Makena, Hawaii, map at the intersection of an unnamed, light-duty road known locally as State Highway 37 and the northernmost unnamed, unimproved road in the Palauea land division (a land division is known as an “ahupua'a” in Hawaii). From the beginning point, proceed south along State Highway 37 to the next unnamed, unimproved road in the Palauea land division; then
</P>
<P>(2) Proceed west in a straight line for approximately 2,700 feet to the 1,560-foot elevation contour; then
</P>
<P>(3) Proceed north along the 1,560-foot elevation contour to the northern boundary of the Palauea land division; then
</P>
<P>(4) Proceed east along the northern boundary of the Palauea land division to the 1,800-foot elevation contour; then
</P>
<P>(5) Proceed south along the 1,800-foot elevation contour for approximately 400 feet to the point where the 1,800-foot elevation contour intersects with an imaginary line drawn from the terminus of the northernmost unnamed, unimproved road in the Palauea land division; then
</P>
<P>(6) Proceed east in a straight line for approximately 800 feet, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-171, 86 FR 34957, July 1, 2021]


</CITA>
</DIV8>


<DIV8 N="§ 9.279" NODE="27:1.0.1.1.7.3.45.259" TYPE="SECTION">
<HEAD>§ 9.279   Virginia Peninsula AVA.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Virginia Peninsula”. For purposes of part 4 of this chapter, “Virginia Peninsula” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 5 United States Geological Survey (USGS) 1:100,000 scale topographic maps used to determine the boundary of the Virginia Peninsula viticultural area are titled:
</P>
<P>(1) Norfolk, Virginia-North Carolina; 1985;
</P>
<P>(2) Petersburg, Virginia, 1984;
</P>
<P>(3) Richmond, Virginia, 1984;
</P>
<P>(4) Tappahannock, Virginia-Maryland; 1984; and
</P>
<P>(5) Williamsburg, Virginia, 1984.
</P>
<P>(c) <I>Boundary.</I> The Virginia Peninsula viticultural area is located in James City, York, New Kent, and Charles City Counties, Virginia, as well as the independent Virginia cities of Poquoson, Hampton, Newport News, and Williamsburg. The boundary of the Virginia Peninsula viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Norfolk, Virginia-North Carolina map at the intersection of the Newport News City boundary and the James River Bridge. From the beginning point, proceed northwesterly along the Newport News City boundary to the point in the James River where the city boundary becomes concurrent with the James City County boundary; then
</P>
<P>(2) Proceed northwesterly along the James City County boundary to the point where it becomes concurrent with the Charles City County boundary; then
</P>
<P>(3) Proceed along the Charles City County boundary, crossing onto the Petersburg, Virginia, map and continuing along the Charles City County boundary to the point where it intersects the Henrico County boundary at Turkey Island Creek; then
</P>
<P>(4) Proceed north-northeasterly along the concurrent Henrico County-Charles City County boundary to its intersection with the Chickahominy River, which is concurrent with the New Kent County boundary; then
</P>
<P>(5) Proceed northwesterly along the Chickahominy River-New Kent County boundary, crossing onto the Richmond, Virginia, map to its intersection with the Hanover County boundary; then
</P>
<P>(6) Proceed northeasterly along the Hanover County-New Kent County boundary to its intersection with the King William County boundary at the Pamunkey River; then
</P>
<P>(7) Proceed southeasterly along the King William County-New Kent County boundary, crossing onto the Tappahannock, Virginia-Maryland map, to the intersection of the concurrent county boundary with the York River; then
</P>
<P>(8) Proceed southeasterly along the York River, crossing onto the Williamsburg, Virginia map, to the intersection of the river with the Chesapeake Bay north of Tue Point; then
</P>
<P>(9) Proceed southeast in a straight line to the shoreline of Marsh Point; then
</P>
<P>(10) Proceed southeasterly, then southwesterly along the shoreline to the Hampton Roads Bridge-Tunnel; then
</P>
<P>(11) Proceed southwest in a straight line, crossing onto the Norfolk, Virginia-North Carolina map, to the northeastern terminus of the Hampton City boundary; then
</P>
<P>(12) Proceed southwesterly along the Hampton City boundary to the point where it intersects with the Newport News City boundary; then
</P>
<P>(13) Proceed southwesterly, then northwesterly along the Newport News City boundary, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-173, 86 FR 47382, Aug. 25, 2021]


</CITA>
</DIV8>


<DIV8 N="§ 9.280" NODE="27:1.0.1.1.7.3.45.260" TYPE="SECTION">
<HEAD>§ 9.280   Verde Valley AVA.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Verde Valley”. For purposes of part 4 of this chapter, “Verde Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 9 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Verde Valley viticultural area are titled:
</P>
<P>(1) Camp Verde, Ariz., 1969;
</P>
<P>(2) Clarkdale, Ariz., 1973;
</P>
<P>(3) Cornville, Ariz., 1968;
</P>
<P>(4) Cottonwood, Ariz., 1973;
</P>
<P>(5) Lake Montezuma, Ariz., 1969;
</P>
<P>(6) Middle Verde, Ariz., 1969;
</P>
<P>(7) Munds Draw, Ariz., 1973;
</P>
<P>(8) Page Springs, Ariz., 1969; and
</P>
<P>(9) Sedona, Ariz., 1969.
</P>
<P>(c) <I>Boundary.</I> The Verde Valley viticultural area is located in Yavapai County, Arizona. The boundary of the Verde Valley viticultural area is as described as follows:
</P>
<P>(1) The beginning point of the boundary is at the intersection of the 3,800-foot elevation contour and the northern boundary of Section 32, T17N/R3E, on the Clarkdale Quadrangle. From the beginning point, proceed east along the northern boundary of Section 32 until its intersection with the Verde River; then
</P>
<P>(2) Proceed north along the Verde River to its intersection with the western boundary of Section 21, T17N/R3E; then
</P>
<P>(3) Proceed north along the western boundaries of Sections 21 and 16 to the intersection with the 3,800-foot elevation contour; then
</P>
<P>(4) Proceed southerly then easterly along the 3,800-foot elevation contour, crossing onto the Page Springs Quadrangle, to its intersection with Bill Gray Road in Section 18, T16N/R4E; then
</P>
<P>(5) Proceed north along Bill Gray Road to its intersection with an unnamed, unimproved road known locally as Forest 761B Road in Section 32, T17N/R4E; then
</P>
<P>(6) Proceed east, then northeast, along Forest 761B Road to its intersection with Red Canyon Road in Section 26, T17N/R4E; then
</P>
<P>(7) Proceed south along Red Canyon Road to its intersection with U.S. Highway 89 Alt. in Section 35, T17N/R4E; then
</P>
<P>(8) Proceed east over U.S. Highway 89 Alt. in a straight line to and unnamed, unimproved road known locally as Angel Valley Road, and proceed southeasterly along Angel Valley Road as it becomes a light-duty road, crossing over Oak Creek, and continuing along the southernmost segment of Angel Valley Road to its terminus at a structure on Deer Pass Ranch in Section 12, T16N/R4E; then
</P>
<P>(9) Proceed south in a straight line to the 3,800-foot elevation contour in Section 12, T16/NR4E; then
</P>
<P>(10) Proceed south-southeasterly along the 3,800-foot elevation contour, crossing over the southwestern corner of the Sedona Quadrangle and onto the Lake Montezuma Quadrangle, to the intersection of the contour line with an unnamed creek in Section 6, T15N/R5E; then
</P>
<P>(11) Proceed southwesterly along the unnamed creek until its intersection with the 3,600-foot elevation contour in Section 1, T15N/R4E; then
</P>
<P>(12) Proceed southerly along the 3,600-foor elevation contour, crossing briefly onto the Cornville Quadrangle and then back onto the Lake Montezuma Quadrangle, to the intersection of the elevation contour with an unnamed secondary highway known locally as Cornville Road in Section 7, T15N/R5E; then
</P>
<P>(13) Proceed southeast along Cornville Road to its intersection with the 3,600-foot elevation contour in Section 20, T15N/R5 E; then
</P>
<P>(14) Proceed easterly, then southerly, along the elevation contour to its intersection with the boundary of the Montezuma Castle National Monument in Section 36, T15N/R5E; then
</P>
<P>(15) Proceed west, southeast, southwest, and then east along the boundary of the Montezuma Castle National Monument to its intersection with range line separating R5E and R6E; then
</P>
<P>(16) Proceed south along the R5E/R6E range line, crossing onto the Camp Verde Quadrangle, to the intersection of the range line and the southeastern corner of Section 12, T14N/R5E; then
</P>
<P>(17) Proceed west along the southern boundaries of Sections 12, 11, 10, and 9 to the intersection of the southern boundary of Section 9 and the Montezuma Castle National Monument; then
</P>
<P>(18) Proceed along the boundary of the Montezuma Castle National Monument in a counterclockwise direction to the intersection of the monument boundary and the 3,300-foot elevation contour in Section 16, T14N/R5E; then
</P>
<P>(19) Proceed southerly, then southeasterly, along the 3,300-foot elevation contour to its intersection with the eastern boundary of Section 18, T13N/R6E; then
</P>
<P>(20) Proceed south along the eastern boundary of Section 18 to its intersection with the southern boundary of Section 18; then
</P>
<P>(21) Proceed west along the southern boundaries of Sections 19, 13, 14, 15, 16, 17, and 18, T13N/R53, and Section 13, T13N/R4E, to the intersection with the 3,800-foot elevation contour in Section 13, T13N/R4E; then
</P>
<P>(22) Proceed northwesterly along the 3,800-foot elevation contour, crossing over the Middle Verde and Cornville Quadrangles and onto the Cottonwood Quadrangle, to the intersection of the elevation contour with an unnamed creek in Del Monte Gulch in Section 5, T15N/R3E; then
</P>
<P>(23) Proceed westerly along the unnamed creek to its intersection with the 5,000-foot elevation contour in Section 26, T16N/R2E; then
</P>
<P>(24) Proceed northerly along the 5,000-foot elevation contour, crossing over the Clarkdale Quadrangle and onto the Munds Draw Quadrangle, to the intersection of the elevation contour with a pipeline in Section 4, T16N/R2E; then
</P>
<P>(25) Proceed southeasterly along the pipeline, crossing onto the Clarkdale Quadrangle, and continuing northeasterly along the pipeline to its intersection with the 3,800-foot elevation contour in Section 32, T17N/R3E; then
</P>
<P>(26) Proceed northerly along the 3,800-foot contour, returning to the beginning point.</P>
<CITA TYPE="N">[T.D. TTB-174, 86 FR 62477, Nov. 10, 2021]


</CITA>
</DIV8>


<DIV8 N="§ 9.281" NODE="27:1.0.1.1.7.3.45.261" TYPE="SECTION">
<HEAD>§ 9.281   Lower Long Tom.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Lower Long Tom”. For purposes of part 4 of this chapter, “Lower Long Tom” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Lower Long Tom viticultural area are titled:
</P>
<P>(1) Cheshire, Oregon, 1984;
</P>
<P>(2) Horton, Oregon, 1984;
</P>
<P>(3) Glenbrook, Oregon, 1984; and
</P>
<P>(4) Monroe, Oregon, 1991.
</P>
<P>(c) <I>Boundary.</I> The Lower Long Tom viticultural area is located in Benton and Lane Counties, in Oregon. The boundary of the Lower Long Tom viticultural area is as described as follows:
</P>
<P>(1) The beginning point is on the Cheshire map at the intersection of Franklin Road and the 360-foot elevation contour in Section 43, T16S/R5W. From the beginning point, proceed west on Franklin Road to its intersection with Territorial Road (known locally as Territorial Highway); then
</P>
<P>(2) Proceed southwesterly along Territorial Highway to its intersection with an unnamed, unimproved road north of Butler Road in Section 44, T16S/R5W; then
</P>
<P>(3) Proceed west in a straight line to the western boundary of Section 29, T16S/R5W; then
</P>
<P>(4) Proceed north along the western boundary of Section 29 to the southern boundary of Section 57, T16S/R5W; then
</P>
<P>(5) Proceed northwest in a straight line to the right angle in the western boundary of Section 57, T16S/R5W; then
</P>
<P>(6) Proceed west in a straight line, crossing through Sections 58 and 38, to the intersection of Sections 23, 24, 25, and 26, T16S/R6W; then
</P>
<P>(7) Proceed north along the western boundary of Section 24 to the first intersection with the 800-foot elevation contour; then
</P>
<P>(8) Proceed northerly, then northwesterly along the 800-foot elevation contour, crossing onto the Horton map, to the intersection of the 800-foot elevation contour and an unnamed, unimproved road with a marked 782-foot elevation point in Section 10, T16S/R6W; then
</P>
<P>(9) Proceed west in a straight line to the 1,000-foot elevation contour; then
</P>
<P>(10) Proceed northerly along the 1,000-foot elevation contour, crossing onto the Glenbrook map, to the elevation contour's third intersection with the Lane-Benton County line in Section 10, T15S/R6W; then
</P>
<P>(11) Proceed east along the Lane-Benton County line, crossing onto the Monroe map, to the R6W/R5W range line; then
</P>
<P>(12) Proceed north along the R6W/R5W range line to its intersection with Cherry Creek Road; then
</P>
<P>(13) Proceed northeasterly along Cherry Creek Road to its intersection with Shafer Creek along the T14S/T15S township line; then
</P>
<P>(14) Proceed northeasterly along Shafer Creek to its intersection with the 300-foot elevation contour; then
</P>
<P>(15) Proceed easterly along the 300-foot elevation contour, crossing Territorial Highway, to the intersection of the elevation contour with the marked old railroad grade in Section 33/T14S/R5W; then
</P>
<P>(16) Proceed south along the old railroad grade to its intersection with the southern boundary of Section 9, T15S/R5W; then
</P>
<P>(17) Proceed west along the southern boundary of Section 9 to its intersection with Territorial Highway; then
</P>
<P>(18) Proceed south along Territorial Highway to its intersection with the 360-foot elevation contour in Section 16; T15S/R5W; then
</P>
<P>(19) Proceed southwesterly along the 360-foot elevation contour, crossing Ferguson Creek, and continuing generally southeasterly along the elevation contour, crossing onto the Cheshire map and crossing over Owens Creek and Jones Creek, to the point where the elevation contour crosses Bear Creek and turns north in Section 52; T16S/R5W; then
</P>
<P>(20) Continue northeasterly along the 360-foot elevation contour to the point where it turns south in the town of Cheshire; then
</P>
<P>(21) Continue south along the 360-foot elevation contour and return to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-175, 86 FR 62481, Nov. 10, 2021]




</CITA>
</DIV8>


<DIV8 N="§ 9.282" NODE="27:1.0.1.1.7.3.45.262" TYPE="SECTION">
<HEAD>§ 9.282   San Luis Obispo Coast.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Luis Obispo Coast”. “SLO Coast” may also be used as the name of the viticultural area described in this section. For purposes of part 4 of this chapter, “San Luis Obispo Coast” and “SLO Coast” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 24 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the San Luis Obispo Coast viticultural area are titled:
</P>
<P>(1) Burro Mountain, 1995;
</P>
<P>(2) Piedras Blancas, 1959; photoinspected 1976;
</P>
<P>(3) San Simeon, 1958; photoinspected 1976;
</P>
<P>(4) Pebblestone Shut-In, 1959; photoinspected 1976;
</P>
<P>(5) Lime Mountain, 1948; photo revised 1979;
</P>
<P>(6) Cypress Mountain, 1979;
</P>
<P>(7) York Mountain, 1948; photorevised 1979;
</P>
<P>(8) Morro Bay North, 1995;
</P>
<P>(9) Atascadero, 1995;
</P>
<P>(10) San Luis Obispo, 1968; photorevised 1978;
</P>
<P>(11) Morro Bay South, 1965; photorevised 1978;
</P>
<P>(12) Lopez Mountain, 1995;
</P>
<P>(13) Arroyo Grande NE, 1985;
</P>
<P>(14) Tar Spring Ridge, 1995;
</P>
<P>(15) Nipomo, 1965;
</P>
<P>(16) Huasna Peak, 1995;
</P>
<P>(17) Twitchell Dam, 1959; photorevised 1982;
</P>
<P>(18) Santa Maria, 1959; photorevised 1982;
</P>
<P>(19) Oceano, 1965; revised 1994;
</P>
<P>(20) Pismo Beach, 1998;
</P>
<P>(21) Port San Luis, 1965; photorevised 1979;
</P>
<P>(22) Cayucus, 1965; revised 1994;
</P>
<P>(23) Cambria, 1959; photorevised 1979; and
</P>
<P>(24) Pico Creek, 1959; photorevised 1979.
</P>
<P>(c) <I>Boundary.</I> The San Luis Obispo Coast viticultural area is located in San Luis Obispo County in California. The boundary of the San Luis Obispo Coast viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Burro Mountain map at the intersection of the northern boundary of the Piedra Blanca Grant boundary and the Pacific Ocean. From the beginning point, proceed southeast along the grant boundary to its intersection with the western boundary of Section 15, T25S/R6E; then
</P>
<P>(2) Proceed northeast in a straight line to a marked 1,462-foot peak in Section 11, T25S/R6E; then
</P>
<P>(3) Proceed southeast in a straight line, crossing onto the Piedras Blancas map, to a marked 2,810-foot peak in Section 19, T25S/R7E; then
</P>
<P>(4) Proceed southeast in a straight line, crossing onto the San Simeon map, to the 2,397-foot peak of Garrity Peak in the Piedra Blanca Land Grant; then
</P>
<P>(5) Proceed east in a straight line to a marked 2,729-foot peak in Section 32, T25S/R8E; then
</P>
<P>(6) Proceed southeast in a straight line, crossing onto the Pebblestone Shut-In map, to the 3,432-foot peak of Rocky Butte in Section 24, T26S/R8E; then
</P>
<P>(7) Proceed southeast in a straight line to the 2,849-foot peak of Vulture Rock in Section 29, T26S/R9E; then
</P>
<P>(8) Proceed southeast in a straight line, crossing over the Lime Mountain map and onto the Cypress Mountain map to the 2,933-foot peak of Cypress Mountain in Section 12, T27S/R9E; then
</P>
<P>(9) Proceed southeast in a straight line, crossing onto the York Mountain map, to the intersection of Dover Canyon Road and a jeep trail in Dover Canyon in Section 14, T27S/R10E; then
</P>
<P>(10) Proceed southwesterly, then southeasterly along the jeep trail to the point where the jeep trail becomes an unnamed light-duty road, and continuing southeasterly along the road to its intersection Santa Rita Creek in Section 25, T27S/R10E; then
</P>
<P>(11) Proceed easterly along Santa Rita Creek to the point where the creek splits into a northern and a southern fork; then
</P>
<P>(12) Proceed east in a straight line to Cayucos Templeton Road, then proceed south along Cayucos Templeton Road, crossing onto the Morro Bay North map and continuing along the road as it becomes Santa Rita Road, to the intersection of the road with the northeast boundary of Section 20, T28S/R11E; then
</P>
<P>(13) Proceed southeast along the northeast boundary of Section 20 to its intersection with the western boundary of the Los Padres National Forest; then
</P>
<P>(14) Proceed south, then southeasterly along the western boundary of the Los Padres National Forest, crossing over the Atascadero map and onto the San Luis Obispo map, to the intersection of the forest boundary with the boundary of the Camp San Luis Obispo National Guard Reservation at the northeastern corner of Section 32, T29S/R12E; then
</P>
<P>(15) Proceed south, then generally southwesterly along the boundary of Camp San Luis Obispo National Guard Reservation, crossing onto the Morro Bay South map and then back onto the San Luis Obispo map, and then continuing generally easterly along the military reservation boundary to the intersection of the boundary with a marked 1,321-foot peak along the northern boundary of the Potrero de San Luis Obispo Land Grant; then
</P>
<P>(16) Proceed southeast in a straight line, crossing onto the Lopez Mountain map, to the southeastern corner of Section 18, T30S/R13E; then
</P>
<P>(17) Proceed southeasterly in a straight line to the southeast corner of Section 29; then
</P>
<P>(18) Proceed southeasterly in a straight line to a marked 2,094-foot peak in Section 2, T31S/R13E; then
</P>
<P>(19) Proceed southeasterly in a straight line, crossing onto the Arroyo Grande NE map, to the intersection of the 1,800-foot elevation contour and the western boundary of the Los Padres National Forest, along the eastern boundary of Section 12, T31S/R13E; then
</P>
<P>(20) Proceed south along the boundary of the Los Padres National Forest to the southeastern corner of Section 13, T31S/R13E; then
</P>
<P>(21) Proceed southeast in a straight line to a marked 1,884-foot peak in Section 19, T31S/R14E; then
</P>
<P>(22) Proceed southeast in a straight line to northwestern-most corner of the boundary of the Lopez Lake Recreation Area in Section 19, T31S/R14E; then
</P>
<P>(23) Proceed south, then generally east along the boundary of the Lopez Lake Recreation Area, crossing onto the Tar Spring Ridge map, to the intersection of the boundary with an unnamed light-duty road known locally as Lopez Drive west of the Lopez Dam spillway in Section 32, T31S/R14E; then
</P>
<P>(24) Proceed east along Lopez Drive to its intersection with an unnamed light-duty road known as Hi Mountain Road in Section 34, T31S/R14E; then
</P>
<P>(25) Proceed east along Hi Mountain Drive to its intersection with an unnamed light-duty road known locally as Upper Lopez Canyon Road in the Arroyo Grande Land Grant; then
</P>
<P>(26) Proceed north along Upper Lopez Canyon Road to its intersection with an unnamed, unimproved road that runs south to Ranchita Ranch; then
</P>
<P>(27) Proceed northeast in a straight line to a marked 1,183-foot peak in Section 19, T31S/R15E; then
</P>
<P>(28) Proceed southeast in a straight line to a marked 1,022-foot peak in Section 29, T31S/R15E; then
</P>
<P>(29) Proceed southwest in a straight line to a marked 1,310-foot peak in Section 30, T31S/R15E; then
</P>
<P>(30) Proceed southeast in a straight line to a marked 1,261-foot peak in Section 32, T31S/R15E; then
</P>
<P>(31) Proceed southeast in a straight line to a marked 1,436-foot peak in Section 4, T32S/R15E; then
</P>
<P>(32) Proceed southwest in a straight line to a marked 1,308-foot peak in the Huasna Land Grant; then
</P>
<P>(33) Proceed westerly in a straight line to a marked 1,070-foot peak in Section 1, T32S/R14E; then
</P>
<P>(34) Proceed southeast in a straight line to a marked 1,251-foot peak in the Huasna Land Grant; then
</P>
<P>(35) Proceed southwest in a straight line to a marked 1,458-foot peak in the Santa Manuela Land Grant; then
</P>
<P>(36) Proceed southeast in a straight line to a marked 1,377-foot peak in the Huasna Land Grant; then
</P>
<P>(37) Proceed southwest in a straight line, crossing onto the Nipomo map, to a marked 1,593-foot peak in the Santa Manuela Land Grant; then
</P>
<P>(38) Proceed southwest in a straight line to the jeep trail immediately north of a marked 1,549-foot peak in Section 35, T32S/R14E; then
</P>
<P>(39) Proceed northwesterly along the jeep trail to its intersection with an unnamed, unimproved road in the Santa Manuela Land Grant; then
</P>
<P>(40) Proceed south along the unimproved road to its intersection with Upper Los Berros Road No. 2 in Section 33, T32S/R14E; then
</P>
<P>(41) Proceed southeast along Upper Los Berros Road No. 2, crossing onto the Huasna Peak map, to the intersection of the road and State Highway 166; then
</P>
<P>(42) Proceed south, then westerly along State Highway 166, crossing over the Twitchell Dam, Santa Maria, and Nipomo maps, then back onto the Santa Maria map, to the intersection of State Highway 166 with U.S. Highway 101 in the Nipomo Land Grant; then
</P>
<P>(43) Proceed south along U.S. Highway 101 to its intersection with the north bank of the Santa Maria River; then
</P>
<P>(44) Proceed west along the north bank of the Santa Maria River to its intersection with the 200-foot elevation contour; then
</P>
<P>(45) Proceed generally west along the 200-foot elevation contour, crossing over the Nipomo map and onto the Oceano map, to a point north of where the north-south trending 100-foot elevation contour makes a sharp westerly turn in the Guadalupe Land Grant; then
</P>
<P>(46) Proceed due south in a straight line to the 100-foot elevation contour; then
</P>
<P>(47) Proceed westerly along the 100-foot elevation contour to its intersection with State Highway 1 in the Guadalupe Land Grant; then
</P>
<P>(48) Proceed northwesterly in a straight line to the eastern boundary of the Pismo Dunes State Vehicular Recreation Area at Lettuce Lake in the Bolsa de Chamisal Land Grant; then
</P>
<P>(49) Proceed northerly along the eastern boundary of the Pismo Dunes State Vehicular Recreation Area to the point where the boundary makes a sharp westerly turn just west of Black Lake in the Bolsa de Chamisal Land Grant; then
</P>
<P>(50) Northerly along the Indefinite Boundary of the Pismo Dunes National Preserve to corner just west of Black Lake in the Bolsa de Chamisal Land Grant; then
</P>
<P>(51) Proceed east in a straight line to an unnamed four wheel drive road east of Black Lake in the Bolsa de Chamisal Land Grant; then
</P>
<P>(52) Proceed north along the western fork of the four wheel drive road as it meanders to the east of White Lake, Big Twin Lake, and Pipeline Lake, to the point where the road intersects an unnamed creek at the southeastern end of Cienega Valley in the Bolsa de Chamisal Land Grant; then
</P>
<P>(53) Proceed northwesterly along the creek to its intersection with an unnamed dirt road known locally as Delta Lane south of the Oceano Airport; then
</P>
<P>(54) Proceed northerly along Delta Lane to its intersection with an unnamed light-duty road known locally as Ocean Street; then
</P>
<P>(55) Proceed east in a straight line to State Highway 1; then
</P>
<P>(56) Proceed northerly on State Highway 1, crossing onto the Pismo Beach map, to the highway's intersection with a light-duty road known locally as Harloe Avenue; then
</P>
<P>(57) Proceed west along Harloe Avenue to its intersection with the boundary of Pismo State Beach; then
</P>
<P>(58) Proceed northwesterly along the boundary of Pismo State Beach to its intersection with the Pacific Ocean coastline; then
</P>
<P>(59) Proceed northerly along the Pacific Ocean coastline, crossing over the Pismo Beach, Port San Luis, Morro Bay South, Morro Bay North, Cayucos, Cambria, Pico Creek, San Simeon, and Piedras Blancas maps and onto the Burro Mountain map, returning to the beginning point.


</P>
<CITA TYPE="N">[T.D. TTB-177, 87 FR 13163, Mar. 9, 2022]




</CITA>
</DIV8>


<DIV8 N="§ 9.283" NODE="27:1.0.1.1.7.3.45.263" TYPE="SECTION">
<HEAD>§ 9.283   West Sonoma Coast.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “West Sonoma Coast”. For purposes of part 4 of this chapter, “West Sonoma Coast” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 14 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the West Sonoma Coast viticultural area are titled:
</P>
<P>(1) McGuire Ridge, California, 1991 (provisional edition);
</P>
<P>(2) Stewarts Point, California, 1978;
</P>
<P>(3) Annapolis, California, 1977;
</P>
<P>(4) Tombs Creek, California, 1978;
</P>
<P>(5) Fort Ross, California, 1998;
</P>
<P>(6) Cazadero, California, 1998;
</P>
<P>(7) Duncans Mills, California, 1979;
</P>
<P>(8) Camp Meeker, California, 1995;
</P>
<P>(9) Valley Ford, California, 1954; photorevised 1971;
</P>
<P>(10) Two Rock, California, 1954; photorevised 1971;
</P>
<P>(11) Bodega Head, California, 1972;
</P>
<P>(12) Arched Rock, California, 1977;
</P>
<P>(13) Plantation, California, 1977; and
</P>
<P>(14) Gualala, California, 1998.
</P>
<P>(c) <I>Boundary.</I> The West Sonoma Coast viticultural area is located in Sonoma County, California. The boundary of the West Sonoma Coast viticultural area is as described as follows:
</P>
<P>(1) The beginning point is on the McGuire Ridge map at the intersection of the Sonoma County/Mendocino County boundary and the northwest corner of section 29, T11N/R14W. From the beginning point, proceed southeast in a straight line for 0.4 mile to an unnamed hilltop with a marked elevation of 820 feet in section 29, T11N/R14W; then
</P>
<P>(2) Proceed southeast in a straight line for 1.4 miles to the intersection of the eastern boundary of section 32 and the 800-foot elevation contour, T11N/R14W; then
</P>
<P>(3) Proceed southeast along the 800-foot elevation contour for 3.1 miles, crossing onto the Stewarts Point map, to its intersection with the northern boundary of section 3, T10N/R14W; then
</P>
<P>(4) Proceed east along the northern boundary of section 3 and then along the northern boundary of section 2 for a total of 0.8 mile to the intersection of the northern boundary of section 2 and the 600-foot elevation contour, T10N, R14W; then
</P>
<P>(5) Proceed generally southeast along the 600-foot elevation contour for 3.3 miles, crossing onto the Annapolis map, to its intersection with the northern boundary of section 12, T10N/R14W; then
</P>
<P>(6) Proceed east along the northern boundary of section 12, T10N/R14W, for 0.1 mile to its intersection with the 600-foot elevation contour; then
</P>
<P>(7) Proceed north then generally east along the meandering 600-foot elevation contour for 4.8 miles to its sixth intersection with the northern boundary of section 7, T10N/R13W; then
</P>
<P>(8) Continue northeasterly along the 600-ft elevation contour for an additional 3 miles to its intersection with Springs Creek in section 5, T10N/R13W; then
</P>
<P>(9) Proceed southeasterly along Springs Creek for 1 mile to its intersection with the northern boundary of section 9, T10N/R13W; then
</P>
<P>(10) Proceed east along the northern boundary of section 9 for 0.42 mile to its intersection with an unnamed, intermittent tributary of Grasshopper Creek; then
</P>
<P>(11) Proceed southwest along the unnamed, intermittent tributary of Grasshopper Creek for 0.63 mile to its intersection with the main stem of Grasshopper Creek in section 9, T10N/R13W; then
</P>
<P>(12) Proceed generally west along the main stem of Grasshopper Creek to its intersection with the eastern boundary of section 7, T10N/R13W; then
</P>
<P>(13) Proceed south along the eastern boundary of section 7 for 0.17 mile; then
</P>
<P>(14) Proceed in a straight line southeast for 1.6 miles to the intersection of the eastern boundary of section 17, T10N/R13W, and the 800-foot elevation contour; then
</P>
<P>(15) Proceed southeast along the 800-foot elevation contour for 2.6 miles to its intersection with an unnamed, unimproved road near the 862-foot benchmark in section 21, T10N/R13W; then
</P>
<P>(16) Proceed southeast in a straight line for 0.2 mile to the intersection of the 600-foot elevation contour and an intermittent stream in section 28, T10N/R13W; then
</P>
<P>(17) Proceed south along the 600-foot elevation contour for 1.7 miles to its intersection with the eastern boundary of section 33, T10N/R13W; then
</P>
<P>(18) Proceed southeast in a straight line for 0.5 mile to the intersection of an unnamed light-duty road known locally as Skaggs Springs Road and an unnamed, unimproved road near the Mendosoma Fire Station in section 34, T10N/R13W; then
</P>
<P>(19) Proceed southeast along the unnamed, unimproved road for total of 5.9 miles as it follows Skyline Ridge and crosses onto the Tombs Creek map, back onto the Annapolis map, then back on to the Tombs Creek map, to the second intersection of the road with the 1,200-foot elevation contour in section 13, T9N/R13W; then
</P>
<P>(20) Proceed southeast along the 1,200-foot elevation contour for 0.6 mile to the intersection with Allen Creek in section 18, T9N/R12W; then
</P>
<P>(21) Proceed north along Allen Creek for 0.2 mile to the intersection with the 920-foot elevation contour in section 18, T9N/R12W; then
</P>
<P>(22) Proceed east and then southeast along the meandering 920-foot elevation contour, crossing onto the Fort Ross map, then onto the Tombs Creek map, and then back onto the Fort Ross map, to the intersection of the elevation contour with Jim Creek in section 21, T9N/R12W; then
</P>
<P>(23) Proceed southeast along Jim Creek for 0.7 mile to the intersection of the creek with the northern boundary of section 27, T9N, R12W; then
</P>
<P>(24) Proceed east along the northern boundary of section 27 for 0.5 mile to the northeast corner of section 27; then
</P>
<P>(25) Proceed south along the eastern boundaries of sections 27, 34, 3, 10, 15, and 22 for 5.1 miles to the intersection of the eastern boundary of section 22 and Fort Ross Road, T9N/R12W; then
</P>
<P>(26) Proceed east along Fort Ross Road for approximately 262 feet to the intersection of the road with the middle branch of Russian Gulch Creek in section 23, T8N/R12W; then
</P>
<P>(27) Proceed south along the middle branch of Russian Gulch Creek for 1.2 miles to the intersection with the 920-foot elevation contour in section 26, T8N/R12W; then
</P>
<P>(28) Proceed southeast in a straight line for 2 miles, crossing onto the Cazadero map, to the summit of Pole Mountain in section 30, T8N/R11W; then
</P>
<P>(29) Proceed southeast in a straight line for 4.7 miles, crossing onto the Duncans Mills map, to the confluence of Austin Creek and the Russian River, T7N/R11W; then
</P>
<P>(30) Proceed generally east (upstream) along the Russian River for 3.1 miles to the intersection of the Russian River and the Bohemian Highway in section 7, T7N/R10W; then
</P>
<P>(31) Proceed southeast along the Bohemian Highway for a total of 10.1 miles, crossing onto the Camp Meeker map and through the towns of Camp Meeker and Occidental, then crossing onto the Valley Ford map and through the town of Freestone, to the intersection of the Bohemian Highway and an unnamed medium-duty road known locally as Bodega Road near benchmark (BM) 214 in section 12, T6N/R10W; then
</P>
<P>(32) Proceed northeast along Bodega Road for 0.9 mile, crossing onto the Camp Meeker map, to the intersection of the road with an unnamed light-duty road known locally as Barnett Valley Road north of the marked 486-foot elevation point in the Cañada de Jonive land grant, T6N/R10W; then
</P>
<P>(33) Proceed south then east along Barnett Valley Road for 2.2 miles, crossing onto the Valley Ford map and then onto the Two Rock map, to the intersection of Bennett Valley Road with Burnside Road in section 17, T6N/R9W; then
</P>
<P>(34) Proceed southeast along Burnside Road for 3.2 miles to its intersection with the 400-foot elevation contour just north of an unnamed light duty road known locally as Bloomfield Road in the Cañada de Pogolimi land grant, T5N/R9W; then
</P>
<P>(35) Proceed west along the 400-foot elevation contour for 6.7 miles, crossing onto the Valley Ford map, to the intersection of the elevation contour with an unimproved road, Cañada de Pogolimi land grant, T6N/R9W; then
</P>
<P>(36) Proceed northwest then southwest along the unnamed, unimproved road for 0.9 mile to its terminus, Cañada de Pogolimi land grant, T6N/R9W; then
</P>
<P>(37) Proceed northwest in a straight line for 0.1 mile to the marked 448-foot summit of an unnamed hilltop, Cañada de Pogolimi land grant, T6N/R10W; then
</P>
<P>(38) Proceed northwest in a straight line for 0.6 mile to the 61-foot benchmark along an unnamed secondary highway known locally as Freestone Valley Ford Road, Cañada de Pogolimi land grant, T6N/R10W; then
</P>
<P>(39) Proceed west-northwest in a straight line for 0.8 mile to VABM 724 in the Estero Americano land grant, T6N/R10W; then
</P>
<P>(40) Proceed west in a straight line for 1.0 mile to the intersection of Salmon Creek and an intermittent stream, Estero Americano land grant, T6N/R10W; then
</P>
<P>(41) Proceed west (downstream) along Salmon Creek for 9.6 miles, crossing onto the Bodega Head map, to the mouth of the creek at the Pacific Ocean; then
</P>
<P>(42) Proceed north along the Pacific coastline for 51.4 miles, crossing over the Duncan Mills, Arched Rock, Fort Ross, Plantation, and Stewarts Point maps and onto the Gualala map to the intersection of the coastline with the Sonoma County/Mendocino County line; then
</P>
<P>(43) Proceed east along the Sonoma County/Mendocino County line for 5.6 miles, crossing onto the McGuire Ridge map, and returning to the beginning point, T11N, R14W.
</P>
<CITA TYPE="N">[T.D. TTB-179, 87 FR 31180, May 23, 2022]






</CITA>
</DIV8>


<DIV8 N="§ 9.284" NODE="27:1.0.1.1.7.3.45.264" TYPE="SECTION">
<HEAD>§ 9.284   Mount Pisgah, Polk County, Oregon.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Mount Pisgah, Polk County, Oregon”. The word “Mount” may be abbreviated as “Mt.” in the name of this AVA. For purposes of part 4 of this chapter, “Mount Pisgah, Polk County, Oregon” and “Mt. Pisgah, Polk County, Oregon” are terms of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Mount Pisgah, Polk County, Oregon viticultural area are titled:
</P>
<P>(1) Dallas, OR, 2014; and
</P>
<P>(2) Airlie North, OR, 2014.
</P>
<P>(c) <I>Boundary.</I> The Mount Pisgah, Polk County, Oregon viticultural area is located in Polk County in Oregon. The boundary of the Mount Pisgah, Polk County, Oregon viticultural area is as described below:
</P>
<P>(1) The beginning point is on the Dallas map at the point where the 320-foot elevation contour intersects Mistletoe Road south of the unnamed road known locally as SE Lewis Street. From the beginning point, proceed south along Mistletoe Road for approximately 2 miles to the road's second intersection with the 740-foot elevation contour; then
</P>
<P>(2) Proceed due west approximately 0.5 miles to the 400-foot elevation contour; then
</P>
<P>(3) Proceed south along the 400-foot elevation contour, crossing onto the Airlie North map, to the contour's intersection with Cooper Hollow Road near Fisher Reservoir; then
</P>
<P>(4) Proceed southeasterly along Cooper Hollow Road to its intersection with McCaleb Road; then
</P>
<P>(5) Proceed east, then northeast, then east along McCaleb Road for approximately 1.6 miles to its intersection with Mistletoe Road and the 260-foot elevation contour; then
</P>
<P>(6) Proceed easterly along the 260-foot elevation contour until it intersects again with Mistletoe Road; then
</P>
<P>(7) Proceed east along Mistletoe Road for 0.3 mile to its intersection with Matney Road; then
</P>
<P>(8) Proceed north along Matney Road for 0.6 mile to its intersection with the 260-foot elevation contour at a 90 degree turn in the road; then
</P>
<P>(9) Proceed northwesterly along the 260-foot elevation contour to its intersection with Bursell Road; then
</P>
<P>(10) Proceed east along Bursell Road for 0.2 mile to its intersection with the 260-foot elevation contour; then
</P>
<P>(11) Proceed north along the 260-foot elevation contour, crossing onto the Dallas map, to the contour's intersection with Whiteaker Road; then
</P>
<P>(12) Proceed southeasterly along Whiteaker Road for 1.0 mile to its intersection with the 260-foot elevation contour at a 90 degree turn in the road; then
</P>
<P>(13) Proceed north, then west along the 260-foot elevation contour to its intersection with Ballard Road; then
</P>
<P>(14) Proceed south along Ballard Road to its intersection with the 300-foot elevation contour; then
</P>
<P>(15) Proceed northwesterly along the 300-foot elevation contour, to its intersection with Cherry Knoll Road; then
</P>
<P>(16) Proceed south along Cherry Knoll Road to its intersection with the 320-foot elevation contour; then
</P>
<P>(17) Proceed northwesterly along the 320-foot elevation contour, returning to the beginning point.


</P>
<CITA TYPE="N">[T.D. TTB-180, 87 FR 33642, June 3, 2022]




</CITA>
</DIV8>


<DIV8 N="§ 9.285" NODE="27:1.0.1.1.7.3.45.265" TYPE="SECTION">
<HEAD>§ 9.285   Paulsell Valley AVA.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Paulsell Valley”. For purposes of part 4 of this chapter, “Paulsell Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the viticultural area are titled:
</P>
<P>(1) Knights Ferry, California, 2015;
</P>
<P>(2) Keystone, California, 2015;
</P>
<P>(3) Cooperstown, California, 2015; and
</P>
<P>(4) Paulsell, California, 2015.
</P>
<P>(c) <I>Boundary.</I> The Paulsell Valley viticultural area is located in Stanislaus County, California. The boundary of the Paulsell Valley viticultural area is as described in the following paragraphs:
</P>
<P>(1) The beginning point is on the Knights Ferry map at the intersection of Willms Road, Kennedy Road/Sonora Road, and State Highway 108/State Highway 120. From the beginning point, proceed southeasterly along Willms Road for 7.2 miles, crossing over the Keystone map and onto the Cooperstown map, to the intersection of Willms Road and Warnerville Road at the Warnerville Cemetery; then
</P>
<P>(2) Proceed west, then south along Warnerville Road for a total of 0.5 mile to its intersection with Crabtree Road at the railroad tracks west of the town of Warnerville; then
</P>
<P>(3) Proceed in a southerly direction along Crabtree Road for 6.7 miles to its intersection with the canal known locally as the Modesto Main Canal; then
</P>
<P>(4) Proceed westerly along the canal, crossing onto the Paulsell map, and continuing along the canal for a total of 1.6 miles to the Modesto Reservoir; then
</P>
<P>(5) Proceed along the eastern shore, then northern shore, of the Modesto Reservoir for 12.9 miles to the fifth intersection of the shore with an unnamed, intermittent creek at the northernmost point of the reservoir; then
</P>
<P>(6) Proceed southwesterly in a straight line to the northern terminus of Reservoir Road; then
</P>
<P>(7) Proceed south-southwest along Reservoir Road for 2.2 miles to its intersection with the 200-foot elevation contour; then
</P>
<P>(8) Proceed northwest in a straight line for 1.2 miles to the intersection of Hazeldean Road and Tim Bell Road; then
</P>
<P>(9) Proceed north along Tim Bell Road for 3.1 miles to its intersection with Claribel Road south of the town of Paulsell; then
</P>
<P>(10) Proceed west along Claribel Road for 2.4 miles, crossing Cashman Creek, to the intersection of the road with the 260-foot elevation contour; then
</P>
<P>(11) Proceed north in a straight line for 2 miles to the intersection of Warnerville Road and the 300-foot elevation contour east of Cashman Creek; then
</P>
<P>(12) Proceed northeast in a straight line, crossing onto the Knights Ferry map and continuing for a total of 1.1 miles to the intersection of Fogarty Road and a railroad track; then
</P>
<P>(13) Proceed east in a straight line for 0.9 mile to Paulsell Lateral; then
</P>
<P>(14) Proceed northerly along Paulsell Lateral for 2.4 miles to its intersection with Cashman Creek; then
</P>
<P>(15) Proceed northwest in a straight line for 1.3 miles to State Highway 108/State Highway 120; then
</P>
<P>(16) Proceed northeast in a straight line for 2.4 miles to the third intersection of State Highway 108/State Highway 120 with the 300-foot elevation contour; then
</P>
<P>(17) Proceed southeast along State Highway 108/State Highway 120 for 1 mile to its intersection with the 260-foot elevation contour; then
</P>
<P>(18) Proceed northeasterly along the 260-elevation contour for 1.4 miles to its intersection with Sonora Road southeast of Knights Ferry; then
</P>
<P>(19) Proceed southeast along Sonora Road for 0.1 mile to its intersection with Kennedy Road; then
</P>
<P>(20) Proceed northeast, then east, then south along Kennedy Road/Sonora Road for 0.4 mile, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-181, 87 FR 33648, June 3, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 9.286" NODE="27:1.0.1.1.7.3.45.266" TYPE="SECTION">
<HEAD>§ 9.286   Upper Lake Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Upper Lake Valley”. For purposes of part 4 of this chapter, “Upper Lake Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Upper Lake Valley viticultural area are titled:
</P>
<P>(1) Lakeport, 1958; photorevised 1978; minor revision 1994;
</P>
<P>(2) Upper Lake, 1996;
</P>
<P>(3) Bartlett Mountain, 1996; and
</P>
<P>(4) Lucerne, 1996.
</P>
<P>(c) <I>Boundary.</I> The Upper Lake Valley viticultural area is located in Lake County, California. The boundary of the Upper Lake Valley viticultural area is as described as follows:
</P>
<P>(1) The beginning point is on the Lakeport map at the intersection of Lyons Creek and the western shore of Clear Lake in Section 31, T15N/R9W. From the beginning point, proceed south in a straight line to an unnamed light-duty road known locally as Lafferty Road; then
</P>
<P>(2) Proceed west along Lafferty Road to its intersection with an unnamed secondary highway known locally as Lakeshore Boulevard; then
</P>
<P>(3) Proceed north on Lakeshore Boulevard to its intersection with an unnamed light-duty road known locally as Whalen Way; then
</P>
<P>(4) Proceed west on Whalen Way to its intersection with State Highway 29; then
</P>
<P>(5) Proceed north on State Highway 29, crossing onto the Upper Lake map, to the intersection of the highway and the southern boundary of Section 13, T15N, R10W; then
</P>
<P>(6) Proceed west along the southern boundary of Sections 13 and 14 to the intersection of the southern boundary of Section 14 with the 1,600-foot elevation contour; then
</P>
<P>(7) Proceed in a generally northwesterly direction along the meandering 1,600-foot elevation contour to its intersection with an unnamed, unimproved road in Section 17, T15N/R10W; then
</P>
<P>(8) Proceed north in a straight line, crossing Scotts Creek, to the 1,600-foot elevation contour in Section 8, T15N/R10W; then
</P>
<P>(9) Proceed northeasterly, then southeasterly along the 1,600-foot elevation contour to its intersection with an unnamed 4-wheel drive road in Section 9, T15N/R10W; then
</P>
<P>(10) Proceed northwest in a straight line to the marked 2,325-foot elevation point on Hell's Peak; then
</P>
<P>(11) Proceed southeast in a straight line to the intersection of the 1,600-foot elevation contour and the southern boundary of Section 30 along the Mendocino National Forest boundary, T16N/R9W; then
</P>
<P>(12) Proceed southeast along the meandering 1,600-foot elevation contour to its third intersection with the Mendocino National Forest boundary, along the eastern boundary of Section 31, T16N/R9W; then
</P>
<P>(13) Proceed south, then west along the Mendocino National Forest boundary to its intersection with the 1,600-foot elevation contour along the northern boundary of Section 5, T15N/R9W; then
</P>
<P>(14) Proceed southeasterly along the meandering 1,600-foot elevation contour, crossing onto the Bartlett Mountain map, to the intersection of the 1,600-foot elevation contour and the Mendocino National Forest boundary along the eastern boundary of Section 9, T15N/9RW; then
</P>
<P>(15) Proceed south, then east along the Mendocino National Forest boundary to its intersection with the 1,600-foot elevation contour along the northern boundary of Section 15, T15N/R9W; then
</P>
<P>(16) Proceed south, then northwest along the meandering 1,600-foot elevation contour, crossing onto the Upper Lake map, and continuing southeasterly along the 1,600-foot elevation contour crossing back and forth between the Bartlett Mountain map and the Upper Lake map, to the intersection of the 1,600-foot elevation contour and an unimproved 4-wheel drive road in Section 21, T15N/R9W; then
</P>
<P>(17) Continue southeast along the 1,600-foot elevation contour, crossing onto the Lucerne map, to the intersection of the 1,600-foot elevation contour and an unimproved 4-wheel drive road in Section 36, T15N/R9W; then
</P>
<P>(18) Proceed south in a straight line to the shoreline of Clear Lake; then
</P>
<P>(19) Proceed northeasterly along the shoreline of Clear Lake, crossing onto the Lakeport map, and continuing southwesterly along the shoreline, crossing Rodman Slough, to return to the beginning point.


</P>
<CITA TYPE="N">[T.D. TTB-182, 87 FR 33645, June 3, 2022]






</CITA>
</DIV8>


<DIV8 N="§ 9.287" NODE="27:1.0.1.1.7.3.45.267" TYPE="SECTION">
<HEAD>§ 9.287   Rocky Reach.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Rocky Reach”. For purposes of part 4 of this chapter, “Rocky Reach” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 8 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the viticultural area are titled:
</P>
<P>(1) Ardenvoir, WA, 2003;
</P>
<P>(2) Chelan, WA, 2004;
</P>
<P>(3) Entiat, WA, 2003;
</P>
<P>(4) Orondo, WA, 2003;
</P>
<P>(5) Rocky Reach Dam, WA, 2003;
</P>
<P>(6) Waterville, WA, 2014;
</P>
<P>(7) Wenatchee, WA, 2003; and
</P>
<P>(8) Winesap, WA, 2004.
</P>
<P>(c) <I>Boundary.</I> The Rocky Reach viticultural area is located in Chelan and Douglas Counties in Washington. The boundary of the Rocky Reach viticultural area is as described in paragraphs (c)(1) through (13) of this section:
</P>
<P>(1) The beginning point is on the Wenatchee map at the intersection of the 1,200-foot elevation contour and the western boundary of section 15, T23N/R20E. From the beginning point, proceed northeast along the 1,200-foot elevation contour, crossing over the Rocky Reach Dam map and onto the northwest corner of the Orondo map; then
</P>
<P>(2) Continue northeasterly, then southwesterly along the 1,200-foot elevation contour, crossing back onto the Rocky Reach Dam map and continuing southwesterly along the 1,200-foot elevation contour to its intersection with the unnamed creek flowing from Spencer Lake; then
</P>
<P>(3) Proceed northeasterly along the 1,200-foot elevation contour, crossing over the unnamed creek and continuing across the southeastern corner of the Ardenvoir map and onto the Entiat map; then
</P>
<P>(4) Continue northeasterly then westerly along the 1,200-foot elevation contour, crossing back onto the Ardenvoir map, and continuing along the elevation contour to its intersection with the R20E/R21E boundary, which is concurrent with the western boundary of section 18, T25N/R21E; then
</P>
<P>(5) Proceed north along the R20E/R21E boundary, crossing over the Entiat River and the Entiat Ditch, to the intersection of the range boundary and the 1,200-foot elevation contour; then
</P>
<P>(6) Proceed easterly along the 1,200-foot elevation contour, crossing onto the Winesap map, and continuing northeasterly along the 1,200-foot elevation contour to its intersection with the boundary between sections 11 and 12, T26N/R21E; then
</P>
<P>(7) Proceed north along the boundary between sections 11 and 12 for approximately 300 feet to its intersection with the 1,400-foot elevation contour; then
</P>
<P>(8) Proceed northeast, then south, then easterly along the 1,400-foot elevation contour, crossing Knapp Coulee and onto the Chelan map, and continuing east along the 1,400-foot elevation contour to its intersection with the northern boundary of section 1, T26N/R22E; then
</P>
<P>(9) Proceed south-southeasterly in a straight line, crossing the Columbia River, to the intersection of the 1,600-foot elevation contour and the R22E/R23E boundary; then
</P>
<P>(10) Proceed generally westerly along the 1,600-foot elevation contour, crossing over the southeastern corner of the Winesap map and onto the Entiat map, and continuing southwesterly along the 1,600-foot elevation contour to its intersection with an unnamed stream in section 35, T26N/R21E; then
</P>
<P>(11) Proceed westerly (downstream) along the unnamed stream for 0.45 mile to its intersection with the 1,200-foot elevation contour; then
</P>
<P>(12) Proceed southerly along the 1,200-foot elevation contour, crossing over the Orondo map and onto the Wenatchee map to the intersection of the elevation contour with the southern boundary of section 14, T23N/R20E; then
</P>
<P>(13) Proceed west-northwest in a straight line for 1.47 miles, crossing the Columbia River, to the beginning point.


</P>
<CITA TYPE="N">[T.D. TTB-183, 87 FR 33637, June 3, 2022]




</CITA>
</DIV8>


<DIV8 N="§ 9.288" NODE="27:1.0.1.1.7.3.45.268" TYPE="SECTION">
<HEAD>§ 9.288   Gabilan Mountains.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Gabilan Mountains.” For purposes of part 4 of this chapter, “Gabilan Mountains” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 10 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Gabilan Mountains viticultural area are titled:
</P>
<P>(1) Hollister, CA, 2015;
</P>
<P>(2) Mount Harlan, CA, 2015;
</P>
<P>(3) Paicines, CA, 2015;
</P>
<P>(4) Bickmore Canyon, CA, 2015;
</P>
<P>(5) North Chalone Peak, CA, 2015;
</P>
<P>(6) Soledad, CA, 2015;
</P>
<P>(7) Mount Johnson, CA, 2015;
</P>
<P>(8) Gonzales, CA, 2015;
</P>
<P>(9) Natividad, CA, 2015; and
</P>
<P>(10) San Juan Bautista, CA, 2015.
</P>
<P>(c) <I>Boundary.</I> The Gabilan Mountains viticultural area is located in Monterey and San Benito Counties in California. The boundary of the Gabilan Mountains viticultural area is as described as follows:
</P>
<P>(1) The beginning point is on the Hollister map at the intersection of the 1,520-foot elevation contour and an unnamed local road known locally as San Juan Canyon Road, southeast of the southernmost intersection of San Juan Canyon Road and Hillside Road. From the beginning point, proceed south, then southeasterly along the meandering 1,520-foot elevation contour to its intersection with a west-east flowing tributary of Bird Creek in Azalea Canyon; then
</P>
<P>(2) Proceed southeast in a straight line, crossing Azalea Canyon and the main channel of Bird Creek, to the intersection of the 1,520-foot elevation contour and a southeast-northwest flowing tributary of Bird Creek; then
</P>
<P>(3) Proceed generally southeasterly along the 1,520-foot elevation contour to its intersection with the eastern fork of an unnamed stream; then
</P>
<P>(4) Proceed southeast in a straight line, crossing onto the Mount Harlan map, to the intersection of the 1,600-ft elevation contour and the northernmost unnamed creek; then
</P>
<P>(5) Proceed generally south, then north along the 1,600-foot elevation contour to its intersection with a north-south trending tributary of Pescadero Creek; then
</P>
<P>(6) Proceed south in a straight line, crossing Pescadero Creek, to the 1,520-foot elevation contour; then
</P>
<P>(7) Proceed easterly along the meandering 1,520-foot elevation contour, crossing onto the Paicines map, and continuing along the 1,520-foot elevation contour as it meanders back and forth between the Mount Harlan map and the Paicines map, crossing Thompson Creek and continuing along the 1,520-foot elevation contour to its intersection with the eastern fork of an unnamed intermittent stream on the Paicines map north of Three Troughs Canyon; then
</P>
<P>(8) Proceed southeast in a straight line to a fork in a tributary of Stone Creek east of Three Troughs Canyon; then
</P>
<P>(9) Proceed east-southeast in a straight line, crossing onto the Bickmore Canyon map, to the intersection of an unnamed tributary of the San Benito River and the 1,520-foot elevation contour; then
</P>
<P>(10) Proceed southeasterly along the 1,520-foot elevation contour to a point north of the confluence of Willow Creek and the South Fork of Willow Creek; then
</P>
<P>(11) Proceed south in a straight line to the confluence of Willow Creek and the South Fork of Willow Creek; then
</P>
<P>(12) Proceed east in a straight line to State Route 25; then
</P>
<P>(13) Proceed southeasterly along State Route 25 to its intersection with the boundary of Pinnacles National Park; then
</P>
<P>(14) Proceed south, then east, then generally south along the boundary of Pinnacles National Park, crossing onto the North Chalone Peak map, to the intersection of the National Park boundary and the 1,520-foot elevation contour northeast of Mann Canyon; then
</P>
<P>(15) Proceed westerly along the 1,520-foot elevation contour to its intersection with CA-146; then
</P>
<P>(16) Proceed southwest in a straight line, crossing onto the Soledad map, to the fork in an unnamed intermittent creek running parallel to Fabry Road; then
</P>
<P>(17) Proceed northwest in a straight line, crossing over Stonewall Creek, the unnamed intermittent creek and its tributaries in Bryant Canyon, and a second unnamed intermittent creek, to the intersection of the 1,480-foot elevation contour and the northern terminus of a third unnamed intermittent stream; then
</P>
<P>(18) Proceed north in a straight line to the 1,520-foot elevation contour; then
</P>
<P>(19) Proceed southwest, then generally northwest along the meandering 1,520-foot elevation contour, crossing over the Mount Johnson map and back and forth between the Gonzales map and the Mount Johnson map to the intersection of the 1,520-foot elevation contour and an unnamed tributary of Chular Creek southeast of Espinosa Canyon on the Gonzales map; then
</P>
<P>(20) Proceed northwest in a straight line, crossing Chular Creek and Espinosa Canyon, to the 1,520-foot elevation contour; then
</P>
<P>(21) Proceed generally northwesterly, then northeasterly along the 1,520-foot elevation contour, crossing over the Mount Harlan, Natividad, San Juan Bautista, and Hollister maps, returning to the beginning point on the Hollister map.


</P>
<CITA TYPE="N">[T.D. TTB-184, 87 FR 49989, Aug. 15, 2022]




</CITA>
</DIV8>


<DIV8 N="§ 9.289" NODE="27:1.0.1.1.7.3.45.269" TYPE="SECTION">
<HEAD>§ 9.289   Long Valley-Lake County.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Long Valley-Lake County”. For purposes of part 4 of this chapter, “Long Valley-Lake County” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The three United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Long Valley-Lake County viticultural area are titled:
</P>
<P>(1) Clearlake Oaks, California, 1996;
</P>
<P>(2) Benmore Canyon, California, 1996; and
</P>
<P>(3) Lower Lake, California, 1993.
</P>
<P>(c) <I>Boundary.</I> The Long Valley-Lake County viticultural area is located in Lake County, California. The boundary of the Long Valley-Lake County viticultural area is as described as follows:
</P>
<P>(1) The beginning point is on the Benmore Canyon map at the intersection of State Highway 20 and the 1,600-foot elevation contour, just north of Sweet Hollow Creek, in section 35, T14N/R7W.
</P>
<P>(2) From the beginning point, proceed northerly along the meandering 1,600-foot elevation contour for approximately 4.1 miles to its intersection with the northern fork of an unnamed creek in Salt Canyon known locally as Salt Creek in section 23, T14N/R7W; then
</P>
<P>(3) Proceed westerly (upstream) along Salt Creek approximately 760 feet to its intersection with the 1,720-foot elevation contour in section 23, T14N/R7W; then
</P>
<P>(4) Proceed northeasterly, then westerly along the meandering 1,720- foot elevation contour for approximately 11.3 miles, crossing onto the Clearlake Oaks map, to the intersection of the elevation contour with the Mendocino National Forest boundary along the western boundary of section 12, T15N/R8W; then
</P>
<P>(5) Proceed north along the Mendocino National Forest boundary approximately 896 feet to its intersection with the unnamed creek in Sulphur Canyon; then
</P>
<P>(6) Proceed northeast (downstream) along the unnamed creek approximately 770 feet to its intersection with the 1,400-foot elevation contour in section 12, T14N/R8W; then
</P>
<P>(7) Proceed northeasterly, then northwesterly along the meandering 1,400-foot elevation contour to its intersection with the Mendocino National Forest boundary along the western boundary of section 36, T15N/R8W; then
</P>
<P>(8) Proceed north along the western boundary of section 36 to its intersection with the northern boundary of section 36; then
</P>
<P>(9) Proceed east along the northern boundary of section 36 to its intersection with the 1,400-foot elevation contour; then
</P>
<P>(10) Proceed southeasterly along the 1,400-foot elevation contour, crossing onto the Benmore Canyon map and continuing easterly along the 1,400-foot elevation contour to its intersection with the southern boundary of section 11, T14N/R7W; then
</P>
<P>(11) Proceed north in a straight line to the northern boundary of section 11; then
</P>
<P>(12) Proceed east along the northern boundary of section 11, crossing Wolf Creek, to the intersection of the section boundary with the 1,320-foot elevation contour; then
</P>
<P>(13) Proceed south in a straight line to the 1,400-foot elevation contour in section 11; then
</P>
<P>(14) Proceed southeasterly along the 1,400-foot elevation contour to the western boundary of section 12, T14N/R7W; then
</P>
<P>(15) Proceed southeast in a straight line, crossing the North Fork of Cache Creek, to the 1,400-foot elevation contour in section 12 west of the summit of Chalk Mountain; then
</P>
<P>(16) Proceed southeasterly, then southerly along the meandering 1,400- foot elevation contour to its third intersection with the eastern boundary of section 13; then
</P>
<P>(17) Proceed west in a straight line to an unnamed, unimproved 4-wheel drive road in section 13; then
</P>
<P>(18) Proceed south in a straight line, crossing over a second unnamed, unimproved 4-wheel drive road in section 13, to the 1,240-foot elevation contour in section 24, T14N/R7W; then
</P>
<P>(19) Proceed east in a straight line to the 1,400-foot elevation contour in section 24; then
</P>
<P>(20) Proceed southeasterly, then northeasterly along the meandering 1,400-foot elevation contour to its intersection with an unnamed creek in section 19, T14N/R6W; then
</P>
<P>(21) Proceed southwesterly (downstream) along the unnamed creek to its intersection with the 1,200-foot contour in section 19; then
</P>
<P>(22) Proceed south in a straight line to the northern boundary of section 30, T14N/R6W; then
</P>
<P>(23) Proceed southeast, then east along the northern boundary of section 30 to its intersection with the 1,400-foot elevation contour; then
</P>
<P>(24) Proceed south in a straight line to the unnamed creek in Benmore Canyon in section 30; then
</P>
<P>(25) Proceed southeast in a straight line to the 1,400-foot elevation contour in section 30; then
</P>
<P>(26) Proceed southeasterly along the 1,400-foot elevation contour to its intersection with the eastern boundary of section 31, T14N/R6W; then
</P>
<P>(27) Proceed generally south along the eastern boundary of section 31 and continuing along the eastern boundary of section 6, T13N/R6W, crossing onto the Lower Lake map, to the intersection of the boundary line and State Highway 20 north of Phipps Creek; then
</P>
<P>(28) Proceed west in a straight line to the 1,200-foot elevation contour; then
</P>
<P>(29) Proceed northerly along the 1,200-foot elevation contour, crossing onto the Benmore Canyon map, and continuing along the 1,200-foot elevation contour to its intersection with an unnamed trail in section 31, T14N/R6W; then
</P>
<P>(30) Proceed north in a straight line to State Highway 20; then
</P>
<P>(31) Proceed west along State Highway 20, returning to the beginning point.


</P>
<CITA TYPE="N">[T.D. TTB-188, 88 FR 42881, July 5, 2023]






</CITA>
</DIV8>


<DIV8 N="§ 9.290" NODE="27:1.0.1.1.7.3.45.270" TYPE="SECTION">
<HEAD>§ 9.290   Winters Highlands.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Winters Highlands.” For purposes of part 4 of this chapter, “Winters Highlands” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The four United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Winters Highlands viticultural area are:
</P>
<P>(1) Winters, CA, 2018;
</P>
<P>(2) Allendale, CA, 2018;
</P>
<P>(3) Mount Vaca, CA, 2018; and
</P>
<P>(4) Monticello Dam, CA, 2018.
</P>
<P>(c) <I>Boundary.</I> The Winters Highlands viticultural area is located in portions of Solano and Yolo Counties, California. The boundary of the Winters Highlands viticultural area is as follows:
</P>
<P>(1) The boundary begins on the Winters map at the intersection of Putah Creek Road and Wintu Way. From the beginning point, proceed southeasterly along Wintu Way, crossing onto the Allendale map, to the terminus of Wintu Way; then
</P>
<P>(2) Proceed south-southwest in a straight line for 1.05 miles to the eastern terminus of Morse Lane; then
</P>
<P>(3) Proceed westerly along Morse Lane to its intersection with Olive School Lane; then
</P>
<P>(4) Proceed north-northwest in a straight line for 2.52 miles, crossing over the northeastern corner of the Mount Vaca map and onto the Monticello Dam map, to the line's intersection with Highway 128, approximately 2.78 miles west of the intersection of Highway 128 and County Road 89; then
</P>
<P>(5) Proceed north in a straight line to the intersection of the line with the Chickahominy Slough; then
</P>
<P>(6) Proceed east-southeast along the Chickahominy Slough, crossing onto the Winters map, to its intersection with the 170-foot elevation contour; then
</P>
<P>(7) Proceed south-southeasterly along the 170-foot elevation contour to its intersection with the Winters Canal; then
</P>
<P>(8) Proceed south along the Winters Canal to its intersection with the terminus of an unnamed local road; then
</P>
<P>(9) Proceed due west in a straight line to the 200-foot elevation contour; then
</P>
<P>(10) Proceed south in a straight line to the northern terminus of County Road 88; then
</P>
<P>(11) Proceed south along County Road 88 to its southern terminus and continue south in a straight line to Valley Oak Drive; then
</P>
<P>(12) Proceed southerly along Valley Oak Drive to its intersection with Highway 128; then
</P>
<P>(13) Proceed southeasterly in a straight line for 1.04 miles, returning to the beginning point.


</P>
<CITA TYPE="N">[T.D. TTB-189, 88 FR 59448, Aug. 29, 2023]
</CITA>
</DIV8>


<DIV8 N="§ 9.291" NODE="27:1.0.1.1.7.3.45.271" TYPE="SECTION">
<HEAD>§ 9.291   Contra Costa.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Contra Costa”. For purposes of part 4 of this chapter, “Contra Costa” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 15 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Contra Costa viticultural area are titled:
</P>
<P>(1) Antioch North, California, 2018;
</P>
<P>(2) Antioch South, California, 2018;
</P>
<P>(3) Benicia, California, 2018;
</P>
<P>(4) Bouldin Island, California, 2018;
</P>
<P>(5) Briones Valley, California, 2018;
</P>
<P>(6) Byron Hot Springs, California, 2018;
</P>
<P>(7) Clayton, California, 2018;
</P>
<P>(8) Clifton Court Forebay, California, 2018;
</P>
<P>(9) Jersey Island, California, 2018;
</P>
<P>(10) Honker Bay, California, 2018;
</P>
<P>(11) Tassajara, California, 2018;
</P>
<P>(12) Vine Hill, California, 2018;
</P>
<P>(13) Walnut Creek, California, 1995;
</P>
<P>(14) Walnut Creek, California, 2018; and
</P>
<P>(15) Woodward Island, California, 2018.
</P>
<P>(c) <I>Boundary.</I> The Contra Costa viticultural area is located in Contra Costa County, California. The boundary of the Contra Costa viticultural area is as described as follows:
</P>
<P>(1) The beginning point is on the Bouldin Island map at the northernmost point of Holland Tract Road. From the beginning point, proceed south 1.9 miles along Holland Tract Road, crossing onto the Woodward Island map, to the intersection of the road with the 10-foot elevation contour; then
</P>
<P>(2) Proceed south-southeast in a straight line 4.1 miles to the intersection of Orwood Road and the Mokelumne Aqueduct; then
</P>
<P>(3) Proceed south-southwest in a straight line 5.5 miles, crossing onto the Clifton Court Forebay map, to the stream gauging station on Italian Slough, just west of the Widdows Island and the shared Contra Costa-San Joaquin County line; then
</P>
<P>(4) Proceed due west in a straight line to the western shore of Italian Slough, then proceed southwesterly along the western shore Italian Slough to its confluence with Brushy Creek; then
</P>
<P>(5) Proceed westerly along Brushy Creek, crossing onto the Byron Hot Springs map and continuing southwesterly along the creek to its intersection with Vasco Road; then
</P>
<P>(6) Proceed northwest in a straight line 4.3 miles to the intersection of Kellogg Creek and Walnut Boulevard; then
</P>
<P>(7) Proceed west-southwest in a straight line 2.9 miles, crossing onto the Tassajara map, to the intersection of Marsh Creek and Miwok Trail; then
</P>
<P>(8) Proceed northwesterly along Marsh Creek 2.4 miles, crossing onto the Antioch South map, to the creek's intersection with Deer Valley Road; then
</P>
<P>(9) Proceed northerly along Deer Valley Road 3.1 miles to its intersection with Chadbourne Road; then
</P>
<P>(10) Proceed northwest in a straight line 0.6 mile to the southwestern terminus of Tour Way; then
</P>
<P>(11) Proceed northwest in a straight line 3 miles to the intersection of Oil Canyon Trail, Stewartville Trail, and Chadbourne Road; then
</P>
<P>(12) Proceed northeasterly along Stewartville Trail 1.9 miles to its intersection with the Contra Loma Trail; then
</P>
<P>(13) Proceed northwest in a straight line 2.5 miles to the intersection of Somersville Road and Donlan Boulevard; then
</P>
<P>(14) Proceed west-southwest in a straight line 2.5 miles, crossing onto the Clayton map, to the intersection of Nortonville Road and Kirker Pass Road; then
</P>
<P>(15) Proceed southwesterly along Kirker Pass Road 5 miles to its intersection with Alberta Way; then
</P>
<P>(16) Proceed southwest in a straight line 1.5 miles to the intersection of Buckeye Trail, Blue Oak Trail, and Lime Ridge Trail; then
</P>
<P>(17) Proceed south-southeast in a straight line 2.6 miles to the intersection of Arroyo Cerro Del and the 400-foot elevation contour just east of North Gate Road; then
</P>
<P>(18) Proceed northwest in a straight line 2.5 miles, crossing onto the Walnut Creek map (2018 edition), to the intersection of Brodia Way and La Casa Via; then
</P>
<P>(19) Proceed west-northwest in a straight line, crossing onto the Walnut Creek (1995 edition) map, and continue 3.1 miles on the 1995 edition map to the marked 781-foot peak south of the shared Lafayette-Walnut Creek corporate boundary line and north of an unnamed light-duty road known locally as Peaceful Lane; then
</P>
<P>(20) Proceed northwest in a straight line 1.7 miles to the 833-foot peak marked “Hump 2”; then
</P>
<P>(21) Proceed north-northwest 0.5 mile to the water tank (known locally as the Withers Reservoir) at the end of an unnamed light-duty road known locally as Kim Road, in the Cañada del Hambre y Las Bolsas Land Grant; then
</P>
<P>(22) Proceed northwest in a straight line 3 miles, crossing onto the Briones Valley map, to the intersection of Alhambra Creek Road and Alhambra Valley Road; then
</P>
<P>(23) Proceed northwest in a straight line 4.1 miles, crossing onto the Benicia map, to the intersection of Highway 4 and Cummings Skyway; then
</P>
<P>(24) Proceed north-northwest in a straight line 1.8 miles to the intersection of Carquinez Scenic Drive and an unnamed road known locally as Canyon Lake Drive; then
</P>
<P>(25) Proceed northeasterly in a straight line 0.6 mile to the marked post office in Port Costa; then
</P>
<P>(26) Proceed southeast in a straight line 0.9 mile to the first unnamed road that crosses the railroad tracks and intersects with the shoreline at Little Bull Valley; then
</P>
<P>(27) Proceed easterly along the shoreline approximately 38.3 miles, crossing over the Vine Hill, Honker Bay, and Antioch North maps and onto the Jersey Island map to Bethel Island Road; then
</P>
<P>(28) Proceed southeast in a straight line 0.7 mile to the intersection of Wells Road and Sandmound Boulevard; then
</P>
<P>(29) Proceed northeast in a straight line 2.7 miles, crossing onto the Bouldin Island map and returning to the beginning point.


</P>
<CITA TYPE="N">[T.D. TTB-191, 89 FR 18801, Mar. 15, 2024]






</CITA>
</DIV8>


<DIV8 N="§ 9.292" NODE="27:1.0.1.1.7.3.45.272" TYPE="SECTION">
<HEAD>§ 9.292   Comptche.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Comptche”. For purposes of part 4 of this chapter, “Comptche” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The one United States Geological Survey (USGS) 1:24,000 scale topographic map used to determine the boundary of the viticultural area is titled Comptche, California (provisional edition 1991).
</P>
<P>(c) <I>Boundary.</I> The Comptche viticultural area is located in Mendocino County, California. The boundary of the Comptche viticultural area is as described as follows:
</P>
<P>(1) The beginning point is on the Comptche map at the intersection of a north-south tributary of the Albion River and an unnamed improved road known locally as Comptche Ukiah Road, section 12, T16N/R16W. From the beginning point, proceed northwest in a straight line, crossing an unnamed, unimproved road known locally as Surprise Valley Road, to the 400-foot elevation contour, section 12, T16N/R16W; then
</P>
<P>(2) Proceed north, then easterly along the 400-foot elevation contour to its intersection with an unnamed, unimproved road southeast of the marked 517-foot peak in section 1, T16N/R16W; then
</P>
<P>(3) Proceed southeasterly along the unnamed, unimproved road to its intersection with an unnamed, unimproved road known locally as Surprise Valley Road, section 1, T16N/R16W; then
</P>
<P>(4) Proceed northeasterly along Surprise Valley Road to its intersection with an unnamed, unimproved road known locally as North Fork Road, section 1, T16N/R16 W; then
</P>
<P>(5) Proceed northwesterly along North Fork Road to its intersection with an unnamed, unimproved road known locally as Docker Hill Road in section 36, T17N/R16W; then
</P>
<P>(6) Proceed north along Docker Hill Road to its intersection with the 400-foot elevation contour, section 36, T17N/R16W; then
</P>
<P>(7) Proceed easterly along the 400-foot elevation contour to its intersection with the North Fork of the Albion River in section 37, T17N/R15W; then
</P>
<P>(8) Continue in a generally southerly direction along the 400-foot elevation contour to its intersection with an unnamed intermittent creek in section 6, T16N/R15W; then
</P>
<P>(9) Proceed south in a straight line to the 400-foot elevation contour, section 6, T16N/R15W; then
</P>
<P>(10) Proceed southeasterly, then north, then southeasterly along the meandering 400-foot elevation contour to its intersection with the Albion River in section 8, T16N/R15W; then
</P>
<P>(11) Proceed westerly along the Albion River to its intersection with a north-south tributary in section 12, T16N/R16W; then
</P>
<P>(12) Proceed northeasterly along the tributary, returning to the beginning point.
</P>
<P>(d) <I>Exclusion.</I> The Comptche viticultural area as described in this section is not included within the North Coast viticultural area as described in § 9.30.
</P>
<CITA TYPE="N">[TTB-2023-0003; T.D. TTB-192, 89 FR 24380, Apr. 8, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 9.293" NODE="27:1.0.1.1.7.3.45.273" TYPE="SECTION">
<HEAD>§ 9.293   Yucaipa Valley AVA.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Yucaipa Valley”. For purposes of part 4 of this chapter, “Yucaipa Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 4 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Yucaipa Valley viticultural area are:
</P>
<P>(1) Yucaipa, CA, 1996;
</P>
<P>(2) Forest Falls, CA, 1996;
</P>
<P>(3) Beaumont, CA, 1996; and
</P>
<P>(4) El Casco, CA, 1967; photorevised 1979.
</P>
<P>(c) <I>Boundary.</I> The Yucaipa Valley viticultural area is located in San Bernardino County, California. The boundary of the Yucaipa Valley viticultural area is as described as follows:
</P>
<P>(1) The boundary begins on the Yucaipa map at the intersection of Highway 38/Mill Creek Road and the western boundary of section 13, T1S/R2W. From the beginning point, proceed northeast along Highway 38/Mill Creek Road to the 2,924-foot benchmark in section 13; then
</P>
<P>(2) Proceed east in a straight line to the 3,800-foot elevation contour in section 18, T1S/R1W; then
</P>
<P>(3) Proceed east-southeasterly along the 3,800-foot elevation contour, crossing onto the Forest Falls map, and continuing along the 3,800-foot elevation contour to its intersection with Wilson Creek along the eastern boundary of section 21, T1S/R1W; then
</P>
<P>(4) Proceed northerly along Wilson Creek to its intersection with the 4,400-foot elevation contour in section 22, T1S/R1W; then
</P>
<P>(5) Proceed south-southeasterly along the 4,400-foot elevation contour to its intersection with Birch Creek in section 26, T1S/RR1W; then
</P>
<P>(6) Proceed northeasterly along Birch Creek to its intersection with the 5,200-foot elevation contour in section 23, T1S/R1W; then
</P>
<P>(7) Proceed south-southeasterly along the 5,200-foot elevation contour to its intersection with the eastern branch of Little San Gorgonio Creek along the San Bernardino National Forest boundary in section 31, T1S/R1E; then
</P>
<P>(8) Proceed southwesterly along the eastern branch of Little San Gorgonio Creek to its confluence with the main channel of Little San Gorgonio Creek near the gaging station in section 1, R1W/T2S; then
</P>
<P>(9) Proceed southwesterly along the main channel of Little San Gorgonio Creek, crossing onto the Beaumont map, and continuing along the creek to its intersection with Orchard Avenue in section 22, T2S/R1W; then
</P>
<P>(10) Proceed west along Orchard Street to the point where the road makes a sharp turn south and becomes locally known as Taylor Street along the western boundary of section 28, T2S/R1W; then
</P>
<P>(11) Proceed south along Taylor Street to its intersection with Vineland Avenue in section 28, T2S/R1W; then
</P>
<P>(12) Proceed west along Vineland Avenue to its intersection with an unnamed road known locally as Union Street along the western edge of the Beaumont map in section 29, T2S/R1W; then
</P>
<P>(13) Proceed south along Union Street to its intersection with Woodland Avenue in section 29, T2S/R1W; then
</P>
<P>(14) Proceed west along Woodland Avenue, crossing onto the El Casco map, where the road becomes known as Cherry Valley Boulevard, and continue west along Cherry Valley Boulevard to its intersection with Interstate 10 in the Tract Between San Jacinto and San Gorgonio, T2S/R2W; then
</P>
<P>(15) Proceed southeasterly along Interstate 10 to its intersection with the first unnamed, intermittent stream in section 32, T2S/R1W; then
</P>
<P>(16) Proceed west in a straight line to the western boundary of section 31, T2S/R1W; then
</P>
<P>(17) Proceed north along the western boundary of section 31 to the southernmost transmission line at the northwest corner of section 31, T2S/R1W; then
</P>
<P>(18) Proceed northwesterly along the transmission line to its intersection with San Timoteo Canyon Road in the Tract Between San Jacinto and San Gorgonio, T2S/R2W; then
</P>
<P>(19) Proceed northwesterly along San Timoteo Canyon Road to its intersection with the western boundary of the Tract Between San Jacinto and San Gorgonio, T2S/R2W; then
</P>
<P>(20) Proceed north, then northeasterly along the boundary of the tract to its intersection with the southwestern corner of section 22, T2S/R2W; then
</P>
<P>(21) Proceed north along the western boundary of section 22 to its intersection with the southeastern corner of section 16, T2S/R2W; then
</P>
<P>(22) Proceed west along the southern boundaries of sections 16 and 17 to the southwestern corner of section 17, T2S/R2W; then
</P>
<P>(23) Proceed north along the western boundary of section 17, crossing onto the Yucaipa map and continuing along the western boundary of section 17 to its intersection with the Riverside-San Bernardino County line along the northern boundary of section 17, T2S/R2W; then
</P>
<P>(24) Proceed east along the Riverside-San Bernardino County line to its intersection with the eastern boundary of section 17, T2S/R2W; then
</P>
<P>(25) Proceed north in a straight line to the boundary of the San Bernardino Land Grant, T2S/R2W; then
</P>
<P>(26) Proceed west along the land grant boundary to its intersection with the eastern boundary of section 8, T2S/R2W; then
</P>
<P>(27) Proceed north along the eastern boundaries of sections 8 and 5 to the intersection of the northeast corner of section 5 and an unnamed road known locally as Highview Drive, T2S/R2W; then
</P>
<P>(28) Proceed northwest in a straight line to its intersection with Interstate 10 west of an unnamed light-duty road known locally as Knoll Road in the San Bernardino Land Grant, T2S/R2W; then
</P>
<P>(29) Proceed northeast in a straight line to the northeast corner of section 32, T1S/R2W; then
</P>
<P>(30) Proceed east along the northern boundaries of sections 33, 34, and 35 to the southwestern corner of section 25, T1S/R2W; then
</P>
<P>(31) Proceed north along the western boundaries of sections 25, 24, and 13 to the intersection of the western boundary of section 13 and Highway 38/Mill Creek Road, T1S/R2W, which is the beginning point.


</P>
<CITA TYPE="N">[T.D. TTB-193, 89 FR 31635, Apr. 25, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 9.294" NODE="27:1.0.1.1.7.3.45.274" TYPE="SECTION">
<HEAD>§ 9.294   Upper Cumberland.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Upper Cumberland”. For purposes of part 4 of this chapter, “Upper Cumberland” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 8 United States Geological Survey (USGS) 1:100,000 scale topographic maps used to determine the boundary of the Upper Cumberland viticultural area are:
</P>
<P>(1) Bowling Green, 1985;
</P>
<P>(2) Tompkinsville, 1985; photoinspected 1992;
</P>
<P>(3) Corbin, 1981;
</P>
<P>(4) Nashville, 1984;
</P>
<P>(5) Cookeville, 1982;
</P>
<P>(6) Oak Ridge, 1979;
</P>
<P>(7) McMinnville, 1981; and
</P>
<P>(8) Watts Bar Lake, 1981.
</P>
<P>(c) <I>Boundary.</I> The Upper Cumberland viticultural area is located in Cumberland, Fentress, Macon, Overton, Putnam, Smith, Warren, and White Counties, in Tennessee. The boundary of the viticultural area is described as follows:
</P>
<P>(1) The beginning point is on the Bowling Green map at the intersection of the shared Macon-Sumner County line and the shared Kentucky-Tennessee State line. From the beginning point, proceed south along the shared Macon-Sumner County line, crossing onto the Nashville map and continuing along the shared Macon-Sumner County line to its intersection with the Trousdale County line; then
</P>
<P>(2) Proceed east, then southeast, then east along the shared Trousdale-Macon County line, crossing onto the Cookeville map and continuing east along the shared Trousdale-Macon County line to its intersection with the Smith County line; then
</P>
<P>(3) Proceed southwesterly along the shared Smith-Trousdale County line, crossing back onto the Nashville map and continuing southwesterly, then westerly along the shared Smith-Trousdale County line to its intersection with the Wilson County line; then
</P>
<P>(4) Proceed southeasterly along the shared Wilson-Smith County line to its intersection with the DeKalb County line; then
</P>
<P>(5) Proceed east along the shared Smith-DeKalb County line, crossing onto the Cookeville map and continuing east along the Smith-DeKalb County line to its intersection with the Putnam County line; then
</P>
<P>(6) Proceed southeast along the shared DeKalb-Putnam County line to its intersection with the White County line; then
</P>
<P>(7) Proceed southeast along the shared DeKalb-White County line, crossing onto the McMinnville map and continuing south along the DeKalb-White County line to its intersection with the Warren County line; then
</P>
<P>(8) Proceed west along the shared DeKalb-Warren County line to its intersection with the Cannon County line; then
</P>
<P>(9) Proceed southwesterly along the shared Warren-Cannon County line to its intersection with the Coffee County line; then
</P>
<P>(10) Proceed southeast along the shared Warren-Coffee County line to its intersection with the Grundy County line; then
</P>
<P>(11) Proceed east along the shared Warren-Grundy County line to its intersection with the Sequatchie County line; then
</P>
<P>(12) Proceed east along the shared Warren-Sequatchie County line to its intersection with the Van Buren County line; then
</P>
<P>(13) Proceed northwest, then north along the shared Warren-Van Buren County line to its intersection with the White County line; then
</P>
<P>(14) Proceed east, then southerly along the shared White-Van Buren County line to its intersection with the shared Cumberland-Bledsoe County line; then
</P>
<P>(15) Proceed east along the shared Bledsoe-Cumberland County line to its intersection with U.S. Highway 127/State Road 29; then
</P>
<P>(16) Proceed northeast in a straight line for a total of 21.81 miles, crossing over the Watts Bar Lake map and onto the Oak Ridge map to the intersection of the straight line with the shared Cumberland-Morgan County line east of Hebbertsburg; then
</P>
<P>(17) Proceed northwesterly, then westerly, then northwesterly along the shared Cumberland-Morgan County line to its intersection with the Fentress County line; then
</P>
<P>(18) Proceed north, then northeast along the shared Fentress-Morgan County line to its intersection with the Scott County line; then
</P>
<P>(19) Proceed northeast, then northwest along the shared Scott-Fentress County line, crossing onto the Corbin map and continuing along the shared Scott-Fentress County line to its intersection with the Pickett County line; then
</P>
<P>(20) Proceed west, then northwesterly along the shared Fentress-Pickett County line, crossing over the Tompkinsville map and onto the Cookeville map and continuing along the shared Fentress-Pickett County line to its intersection with the Overton County line; then
</P>
<P>(21) Proceed west, then northwesterly along the shared Pickett-Overton County line, crossing onto the Tompkinsville map and continuing along the shares Pickett-Overton County line to its intersection with the Clay County line; then
</P>
<P>(22) Proceed southwesterly along the shared Overton-Clay County line, crossing onto the Cookeville map and continuing south along the shared Overton-Clay County line to its intersection with the Jackson County line; then
</P>
<P>(23) Proceed southerly along the shared Overton-Jackson County line to its intersection with the Putnam County line; then
</P>
<P>(24) Proceed westerly along the shared Putnam-Jackson County line to its intersection with the Smith County line; then
</P>
<P>(25) Proceed westerly, then northerly along the shared Smith-Jackson County line to its intersection with the Macon County line; then
</P>
<P>(26) Proceed north along the shared Macon-Jackson County line, crossing onto the Tompkinsville map and continuing along the shared Macon-Jackson County line to its intersection with the Clay County line; then
</P>
<P>(27) Proceed north along the shared Macon-Clay County line to its intersection with the shared Tennessee-Kentucky State line; then
</P>
<P>(28) Proceed west along the Tennessee-Kentucky State line, crossing onto the Bowling Green map and returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-194, 89 FR 42366, May 15, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 9.295" NODE="27:1.0.1.1.7.3.45.275" TYPE="SECTION">
<HEAD>§ 9.295   San Luis Rey AVA.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “San Luis Rey”. For purposes of part 4 of this chapter, “San Luis Rey” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The eight United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the viticultural area are as follows:
</P>
<P>(1) Oceanside, CA, 2018;
</P>
<P>(2) San Luis Rey, CA, 2018;
</P>
<P>(3) San Marcos, CA, 2018;
</P>
<P>(4) Valley Center, CA, 2018;
</P>
<P>(5) Bonsall, CA, 2018;
</P>
<P>(6) Temecula, CA, 2018;
</P>
<P>(7) Fallbrook, CA, 2018; and
</P>
<P>(8) Morro Hill, CA, 2018.
</P>
<P>(c) <I>Boundary.</I> The San Luis Rey viticultural area is located in San Diego County, California. The boundary of the San Luis Rey viticultural area is described as follows:
</P>
<P>(1) The beginning point is on the Oceanside map at the intersection of Interstate 5 and the Marine Corps Base (MCB) Camp Pendleton boundary. From the beginning point, proceed northeast for a total of 11.21 miles along the MCB Camp Pendleton boundary, crossing over the San Luis Rey map and onto the Morro Hill map, and continuing along the MCB Camp Pendleton boundary to its intersection with the Naval Weapons Station (NWS) Seal Beach Fallbrook California boundary; then
</P>
<P>(2) Proceed east along the NWS Seal Beach Fallbrook California boundary for a total of 6.85 miles, crossing onto the Bonsall map and continuing north, then west along the boundary, and crossing back onto the Morro Hill map and continuing northerly along the boundary, crossing onto the Fallbrook map, and continuing along the boundary as it becomes concurrent with the MCB Camp Pendleton boundary, and continuing along the boundary to its intersection with De Luz Road; then
</P>
<P>(3) Proceed east along De Luz Road for 0.38 mile to its intersection with Sandia Creek Drive; then
</P>
<P>(4) Proceed northerly along Sandia Creek Drive for a total of 3.98 miles, crossing onto the Temecula map and continuing along Sandia Creek Drive to its intersection with an unnamed road known locally as Rock Mountain Road; then
</P>
<P>(5) Proceed east along Rock Mountain Road for 0.21 mile to its intersection with the San Diego County line; then
</P>
<P>(6) Proceed south then east along the San Diego County line for 6.72 miles to its intersection with an unnamed road known locally as Old Highway 395; then
</P>
<P>(7) Proceed south along Old Highway 395 for a total of 14.9 miles, crossing onto the Bonsall map and continuing south along Old Highway 395 to its intersection with an unnamed road known locally as Old Castle Road; then
</P>
<P>(8) Proceed east on Old Castle Road for a total of 0.59 mile, crossing onto the San Marcos map and continuing east along Old Castle Road to its intersection with Gordon Hill Road; then
</P>
<P>(9) Proceed southeasterly along Gordon Hill Road for 0.92 mile to its intersection with the 800-foot elevation contour; then
</P>
<P>(10) Proceed east along the 800-foot elevation contour for a total of 2.5 miles, crossing onto the Valley Center map and continuing east along the 800-foot elevation contour to its intersection with Canyon Country Lane; then
</P>
<P>(11) Proceed northwest and then south along Canyon Country Lane for 0.83 mile to its intersection with the 1,240-foot elevation contour; then
</P>
<P>(12) Proceed east along the 1,240-foot elevation contour for 2.90 miles to its intersection with Cougar Pass Road; then
</P>
<P>(13) Proceed west then south along Cougar Pass Road for 0.4 mile to its intersection with Meadow Glen Way East; then
</P>
<P>(14) Proceed south along Meadow Glen Way East for 0.46 mile to its intersection with Hidden Meadows Road; then
</P>
<P>(15) Proceed southwest along Hidden Meadows Road for 0.73 mile to its intersection with Mountain Meadow Road; then
</P>
<P>(16) Proceed southwest along Mountain Meadow Road for a total of 1.44 miles, crossing onto the San Marcos map and continuing along Mountain Meadow Road to the point where Mountain Meadow Road becomes known as Deer Springs Road just west of Interstate 15; then
</P>
<P>(17) Proceed southwest along Deer Springs Road for 2.42 miles to its intersection with an unnamed road known locally as North Twin Oaks Valley Road; then
</P>
<P>(18) Proceed south along North Twin Oaks Valley Road for 3.01 miles to its intersection with an unnamed road known locally as West Mission Road; then
</P>
<P>(19) Proceed northwest along West Mission Road (which becomes South Santa Fe Avenue) for a total of 3.9 miles to its intersection with Robelini Drive; then
</P>
<P>(20) Proceed southwest along Robelini Drive (which becomes Sycamore Avenue) for a total of 0.55 mile to its intersection with State Highway 78; then
</P>
<P>(21) Proceed northwest, then westerly along State Highway 78 for a total of 9.09 miles, crossing onto the San Luis Rey map and continuing westerly along State Highway 78 to its intersection with Interstate 5; then
</P>
<P>(22) Proceed northwest along Interstate 5 for a total of 3.14 miles, crossing onto the Oceanside map and returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-195, 89 FR 70489, Aug. 30, 2024]






</CITA>
</DIV8>


<DIV8 N="§ 9.296" NODE="27:1.0.1.1.7.3.45.276" TYPE="SECTION">
<HEAD>§ 9.296   Crystal Springs of Napa Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Crystal Springs of Napa Valley”. For purposes of part 4 of this chapter, “Crystal Springs of Napa Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The two United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the viticultural area are titled:
</P>
<P>(1) St. Helena, CA, 1960, revised 1993; and
</P>
<P>(2) Calistoga, CA, 1997.
</P>
<P>(c) <I>Boundary.</I> The Crystal Springs of Napa Valley viticultural area is located in Napa County, California. Within the boundary description that follows, the viticultural area encompasses all areas at or below 1,400 feet in elevation. The boundary of the Crystal Springs of Napa Valley viticultural area is as described as follows:
</P>
<P>(1) The beginning point is on the St. Helena map at the intersection of Howell Mountain Road and White Cottage Road. From the beginning point, proceed southeasterly along Howell Mountain Road to its intersection with the St. Helena city limits in section 29, T8N/R5W; then
</P>
<P>(2) Proceed west then south along the St. Helena city limits to its intersection with the 400-foot elevation contour along the western edge of section 29, T8N/R5W; then
</P>
<P>(3) Proceed northwesterly along the 400-foot elevation contour to its intersection with the western edge of the St. Helena map, denoted by the north-south longitude line labeled as longitude 122 degrees, 30 minutes; then
</P>
<P>(4) Proceed due north along the longitude line approximately 0.5 mile to its intersection with the 880-foot elevation contour in section 2, T8N/R6W; then
</P>
<P>(5) Proceed northwesterly along the meandering 880-foot elevation contour, crossing onto the Calistoga map, and continuing along the elevation contour (with a brief return to the St. Helena map) to its intersection with Biter Creek in the section 34, T9N/R6W, on the Calistoga map; then
</P>
<P>(6) Proceed northerly (upstream) along Biter Creek to its intersection with the 1,400-foot elevation contour; then
</P>
<P>(7) Proceed southeasterly along the meandering 1,400-foot elevation contour, crossing onto the St. Helena map, to the intersection of the elevation contour with White Cottage Road; then
</P>
<P>(8) Proceed easterly along White Cottage Road for approximately 130 feet, returning to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-196, 89 FR 83434, Oct. 16, 2024]








</CITA>
</DIV8>


<DIV8 N="§ 9.297" NODE="27:1.0.1.1.7.3.45.277" TYPE="SECTION">
<HEAD>§ 9.297   Beverly, Washington.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Beverly, Washington”. For purposes of part 4 of this chapter, “Beverly, Washington” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The one United States Geological Survey (USGS) 1:24,000 scale topographic map used to determine the boundary of the viticultural area is titled Beverly, Washington (2017).
</P>
<P>(c) <I>Boundary.</I> The Beverly, Washington viticultural area is located in Grant County, Washington. The boundary of the Beverly, Washington viticultural area is described as follows:
</P>
<P>(1) The beginning point is on the Beverly, Washington map at the intersection of State Highway 243 and southern boundary of section 34 just north of the town of Schwana. From the beginning point, proceed northwest along Highway 243 to its intersection with an unnamed local road on the north side of Wanapum Village, near the center of section 21; then
</P>
<P>(2) Proceed east in a straight line for 2,450 feet to the 600-foot elevation contour; then
</P>
<P>(3) Proceed southeasterly along the 600-foot elevation contour for approximately 1,500 feet to its intersection with an unnamed local road in section 22; then
</P>
<P>(4) Proceed northeasterly along the unnamed local road for approximately 3,000 feet to its intersection with another unnamed local road; then
</P>
<P>(5) Proceed north-northeast in a straight line for approximately 500 feet to the intersection of Beverly Burke Road and an unnamed local road; then
</P>
<P>(6) Proceed northeasterly along Beverly Burke Road to the point where it becomes concurrent with the northern boundary of section 22, and continue east along Beverly Burke Road to its intersection with the eastern boundary of section 22; then
</P>
<P>(7) Proceed south along the eastern boundary of section 22 for one mile to its intersection with the northern boundary of section 26; then
</P>
<P>(8) Proceed east along the northern boundary of section 26 for one mile to its intersection with the eastern boundary of section 26; then
</P>
<P>(9) Proceed south along the eastern boundary of section 26 to its intersection with the 540-foot elevation contour; then
</P>
<P>(10) Proceed southwesterly along the 540-foot elevation contour to its intersection with the southern boundary of section 26; then
</P>
<P>(11) Proceed west along the southern boundary of section 26 to its intersection with the eastern boundary of section 34; then
</P>
<P>(12) Proceed south along the eastern boundary of section 34 for 1 mile to its intersection with the southern boundary of section 34; then
</P>
<P>(13) Proceed west along the southern boundary of section 34 for 0.5 mile to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-198, 89 FR 85854, Oct. 29, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 9.298" NODE="27:1.0.1.1.7.3.45.278" TYPE="SECTION">
<HEAD>§ 9.298   Tryon Foothills.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Tryon Foothills”. For purposes of part 4 of this chapter, “Tryon Foothills” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 10 United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Tryon Foothills viticultural area are:
</P>
<P>(1) Lake Lure, NC, 1982; photoinspected 1987;
</P>
<P>(2) Shingle Hollow, NC, 1982;
</P>
<P>(3) Pea Ridge, NC, 1982;
</P>
<P>(4) Rutherfordton South, NC, 1966;
</P>
<P>(5) Fingerville East, SC-NC, 1993 (provisional edition);
</P>
<P>(6) Fingerville West, SC-NC, 1983 (provisional edition);
</P>
<P>(7) Landrum, SC-NC, 2020;
</P>
<P>(8) Saluda, NC-SC, 2019;
</P>
<P>(9) Cliffield Mountain, NC, 1997; and
</P>
<P>(10) Mill Spring, NC, 1982; photorevised 1990.
</P>
<P>(c) <I>Boundary.</I> The Tryon Foothills viticultural area is located in Polk County, North Carolina. The boundary of the viticultural area is described as follows:
</P>
<P>(1) The beginning point is on the Lake Lure map at the intersection of the 1,200-foot elevation contour and the shared Polk-Rutherford County line just west of State Highway 9 and north of an unnamed road known locally as Owl Hollow Road. From the beginning point, proceed clockwise along the shared Polk-Rutherford County line and across the Shingle Hollow, Pea Ridge, and Rutherford South maps and onto the Fingerville East map, to the intersection of the shared Polk-Rutherford County line and the shared North Carolina-South Carolina State line; then
</P>
<P>(2) Proceed west along the shared North Carolina-South Carolina State line across the Fingerville East, Fingerville West, and Landrum maps and onto the Saluda map to the intersection of the North Carolina-South Carolina State line with the 1,200-foot elevation contour north of Dug Hill Road; then
</P>
<P>(3) Proceed generally northerly along the meandering 1,200-foot elevation contour, crossing back and forth onto the Landrum and Saluda maps and onto the Mill Spring map, and continuing along the 1,200-foot elevation contour as it crosses onto the Cliffield Mountain map and then back onto the Mill Spring map and finally onto the Lake Lure map, returning to the beginning point at the intersection of the 1,200-foot elevation contour and the shared Polk-Rutherford County line just west of State Highway 9.
</P>
<CITA TYPE="N">[90 FR 46473, Sept. 29, 2025]


</CITA>
</DIV8>


<DIV8 N="§ 9.299" NODE="27:1.0.1.1.7.3.45.279" TYPE="SECTION">
<HEAD>§ 9.299   Nashoba Valley.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Nashoba Valley”. For purposes of part 4 of this chapter, “Nashoba Valley” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 2 United States Geological Survey (USGS) 1:100,000 scale topographic maps used to determine the boundary of the Nashoba Valley viticultural area are:
</P>
<P>(1) Hudson, MA, 2021; and
</P>
<P>(2) Clinton, MA, 2021.
</P>
<P>(c) <I>Boundary.</I> The Nashoba Valley viticultural area is located in Worcester County, Massachusetts. The boundary of the viticultural area is described as follows:
</P>
<P>(1) The beginning point is on the Hudson map at the intersection of Route 62 (also known as Central Street) and I-495 in Hudson, Massachusetts. From the beginning point, proceed southwest, then westerly on Route 62 for a total of 4.5 miles, crossing onto the Clinton map, to the point where it intersects and becomes concurrent with Route 70 (also known as Boylston Street); then
</P>
<P>(2) Proceed north on Route 70/Route 62 for 2.09 miles to its intersection with Route 110/Main Street in Clinton, Massachusetts; then
</P>
<P>(3) Proceed south on Route 110/Main Street as it becomes known as West Boylston Road, and continue along West Boylston Road for a total of 1 mile to its intersection with South Meadow Road; then
</P>
<P>(4) Proceed north along South Meadow Road for 0.95 mile to its intersection with Moffett Street in Lancaster, Massachusetts; then
</P>
<P>(5) Proceed northwest along Moffett Street to its intersection with an unnamed road known locally as Chace Hill Road; then
</P>
<P>(6) Proceed northeast along Chace Hill Road to its intersection with Sterling Street (also known as Route 62); then
</P>
<P>(7) Proceed northwesterly along Sterling Street/Route 62 to its intersection with an unnamed road known locally as Chocksett Road; then
</P>
<P>(8) Proceed northwesterly along Chocksett Road to its intersection with Pratts Junction Road; then
</P>
<P>(9) Proceed northwesterly along Pratts Junction Road to its intersection with I-190; then
</P>
<P>(10) Proceed northerly along I-190 for 2.35 miles to its intersection with Route 117 in Leominster, Massachusetts; then
</P>
<P>(11) Proceed southeasterly along Route 117 for 7.8 miles, crossing onto the Hudson map, to its intersection with I-495; then
</P>
<P>(12) Proceed southerly along I-495 to the beginning point.</P>
<CITA TYPE="N">[T.D. TTB-204, 91 FR 13969, Mar. 24, 2026]




</CITA>
</DIV8>


<DIV8 N="§ 9.300" NODE="27:1.0.1.1.7.3.45.280" TYPE="SECTION">
<HEAD>§ 9.300   Nine Lakes of East Tennessee AVA.</HEAD>
<P>(a) <I>Name.</I> The name of the viticultural area described in this section is “Nine Lakes of East Tennessee”. For purposes of part 4 of this chapter, “Nine Lakes of East Tennessee” is a term of viticultural significance.
</P>
<P>(b) <I>Approved maps.</I> The 6 United States Geological Survey (USGS) 1:100,000 scale topographic maps used to determine the boundary of the Nine Lakes of East Tennessee viticultural area are:
</P>
<P>(1) Middlesboro, KY-Tenn.-VA, 1977;
</P>
<P>(2) Morristown, Tennessee, 1981;
</P>
<P>(3) Knoxville, Tenn.-N.C., 1983;
</P>
<P>(4) Oak Ridge, Tennessee, 1979;
</P>
<P>(5) Watts Bar Lake, Tennessee, 1981; and
</P>
<P>(6) Cleveland, Tennessee-N.C., 1981.
</P>
<P>(c) <I>Boundary.</I> The Nine Lakes of East Tennessee viticultural area is located in Anderson, Blount, Campbell, Claiborne, Cocke, Grainger, Hamblen, Jefferson, Knox, Loudon, Monroe, Roane, Sevier, and Union Counties, Tennessee. The boundary of the viticultural area is described as follows:
</P>
<P>(1) The beginning point is on the Middlesboro map at the intersection of the shared Hancock-Claiborne County line and the shared Virginia-Tennessee State line. From the beginning point, proceed west along the Virginia-Tennessee State line for 10.13 miles to the boundary of the Cumberland Gap National Historical Park; then
</P>
<P>(2) Proceed southwest, then northwest along the park boundary for approximately 4.78 miles to its intersection with the 500-meter elevation contour on Powell Mountain; then
</P>
<P>(3) Proceed southwest, then northeast, then southwest along the meandering 500-meter elevation contour for approximately 11.18 miles, crossing onto the Morristown map, and continuing along the 500-meter elevation contour for approximately 10.38 miles, crossing onto the Oak Ridge map, and continuing along the 500-meter elevation contour for 8.7 miles to the point where it turns sharply northeast just east of Highway 25W and north of Lafollette; then
</P>
<P>(4) Proceed west in a straight line for approximately 0.49 mile, crossing over Highway 25W, to the 500-meter elevation contour; then
</P>
<P>(5) Proceed southwest, then northeast along the 500-meter elevation contour for approximately 7.46 miles to its intersection with and unnamed tributary of Bruce Creek; then
</P>
<P>(6) Proceed west in a straight line to Interstate 75; then
</P>
<P>(7) Proceed south in a straight line for approximately 6.34 miles to the intersection of the Campbell and Anderson County lines; then
</P>
<P>(8) Proceed south along the shared Campbell-Anderson County line for approximately 6.28 miles, crossing over Stony Fork, to the intersection with an unnamed trail running southwest-to-northeast along Windrock Mountain; then
</P>
<P>(9) Proceed southwest in a straight line for 9.26 miles to the intersection with the shared Anderson-Morgan County line; then
</P>
<P>(10) Proceed southeast along the Anderson-Morgan County line for approximately 5.59 miles to its intersection with the Roane County line; then
</P>
<P>(11) Proceed southwest along the shared Roane-Morgan County line for approximately 5.65 miles, crossing onto the Watts Bar Lake map, and continuing along the Roane-Morgan County line to its intersection with the Cumberland County line; then
</P>
<P>(12) Proceed southwest in a straight line for approximately 8.82 miles to the intersection of the Roane and Rhea County lines and State Road 29; then
</P>
<P>(13) Proceed southerly along the shared Roane-Rhea County line for approximately 5.47 miles to its intersection with the Meigs County line; then
</P>
<P>(14) Proceed south-southeast along the Roane-Meigs County line to its intersection with the McMinn County line; then
</P>
<P>(15) Proceed east along the shared Roane-McMinn County line for 1.8 miles to the intersection with the Loudon County line; then
</P>
<P>(16) Proceed south, then easterly along the shared Loudon-McMinn County line to its intersection with the Monroe County line; then
</P>
<P>(17) Proceed south, then southeast along the shared McMinn-Monroe County line for approximately 10.56 miles, crossing onto the Cleveland, Tennessee-North Carolina map, and continuing along the shared McMinn-Monroe County line for approximately 13.67 miles to the intersection with an unnamed highway known locally as State Road 39/Mecca Highway; then
</P>
<P>(18) Proceed southeast along State Road 39 for approximately 3.04 miles to its intersection with the Cherokee National Forest boundary, which is concurrent with Conasauga Creek; then
</P>
<P>(19) Proceed southeasterly, then northerly along the Cherokee National Forest boundary for approximately 23.67 miles, crossing onto the Watts Bar Lake map, and continue northeasterly, then easterly along the forest boundary for approximately 15.35 miles as it meanders east through Tellico Lake and becomes concurrent with the Blount-Monroe County line and crosses onto the Knoxville, Tennessee-North Carolina map, to the forest boundary's intersection with Abrams Creek; then
</P>
<P>(20) Proceed north in a straight line for approximately 1,500 feet to the Great Smoky Mountains National Park boundary; then
</P>
<P>(21) Proceed northeast, then southeast, then northeast along the park boundary line for a total of approximately 51.47 miles to its intersection with the shared Cocke-Sevier County line near Rocky Grove; then
</P>
<P>(22) Proceed northeast in a straight line for 6.15 miles to the intersection of the Cherokee National Forest boundary with Highway 321/State Road 32 and Rabbit Branch near Allen Grove; then
</P>
<P>(23) Proceed east along the forest boundary for 1.99 miles to its intersection with Interstate 40; then
</P>
<P>(24) Proceed north along Interstate 40 for 2.98 miles to its intersection with Highway 321; then
</P>
<P>(25) Proceed northeast along the forest boundary for 3.12 miles to its intersection with State Road 73 at Edwina; then
</P>
<P>(26) Proceed northeast in a straight line for 9.2 miles, crossing onto the Morristown map, and continuing northeast in a straight line for 4.16 miles to the shared Greene-Cocke County line; then
</P>
<P>(27) Proceed northwest along the Greene-Cocke County line to its intersection with the Hamblen County line; then
</P>
<P>(28) Proceed northeast along the Hamblen-Greene County line to its intersection with the Hawkins County line; then
</P>
<P>(29) Proceed northwest, then southwest along the Hawkins-Hamblen County line to its intersection with the Grainger County line; then
</P>
<P>(30) Proceed northwesterly along the Hawkins-Grainger County line to its intersection with the Hancock County line; then
</P>
<P>(31) Proceed west along the Grainger-Hancock County line to its intersection with the Claiborne County line; then
</P>
<P>(32) Proceed north along the Hancock-Claiborne County line for approximately 8.14 miles, crossing onto the Middlesboro map, and continuing northwest along the Hancock-Claiborne County line for approximately 8.51 miles to return to the beginning point.
</P>
<CITA TYPE="N">[T.D. TTB-204, 91 FR 13973, Mar. 24, 2026]




</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="10" NODE="27:1.0.1.1.8" TYPE="PART">
<HEAD>PART 10—COMMERCIAL BRIBERY
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>15 U.S.C. 49-50; 27 U.S.C. 202 and 205; 44 U.S.C. 3504(h).
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-74, 45 FR 63257, Sept. 30, 1980, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:1.0.1.1.8.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 10.1" NODE="27:1.0.1.1.8.1.45.1" TYPE="SECTION">
<HEAD>§ 10.1   General.</HEAD>
<P>The regulations in this part, issued pursuant to section 105 of the Federal Alcohol Administration Act (27 U.S.C. 205), specify practices which may result in violations of section 105(c) of the Act and criteria for determining whether a practice is a violation of section 105(c) of the Act. This part does not attempt to enumerate all of the practices prohibited by section 105(c) of the Act. Nothing in this part shall operate to exempt any person from the requirements of any State law or regulation.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20426, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 10.2" NODE="27:1.0.1.1.8.1.45.2" TYPE="SECTION">
<HEAD>§ 10.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States, the District of Columbia, and Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 10.3" NODE="27:1.0.1.1.8.1.45.3" TYPE="SECTION">
<HEAD>§ 10.3   Application.</HEAD>
<P>(a) <I>General.</I> The regulations in this part apply to transactions between industry members and employees, officers, or representatives of trade buyers.
</P>
<P>(b) <I>Transactions involving State agencies.</I> The regulations in this part apply only to transactions between industry members and employees of State agencies operating as retailers, wholesalers, or both. The regulations do not apply to State agencies with regard to their dealings with employees, officers, or representatives of trade buyers.


</P>
</DIV8>


<DIV8 N="§ 10.4" NODE="27:1.0.1.1.8.1.45.4" TYPE="SECTION">
<HEAD>§ 10.4   Jurisdictional limits.</HEAD>
<P>(a) <I>General.</I> The regulations in this part apply where:
</P>
<P>(1) The industry member induces a trade buyer to purchase distilled spirits, wine, or malt beverages from such industry member to the exclusion, in whole or in part, of products sold or offered for sale by other persons in interstate or foreign commerce; and
</P>
<P>(2) If: (i) The inducement is made in the course of interstate or foreign commerce; or
</P>
<P>(ii) The industry member engages in the practice of using an inducement to such an extent as substantially to restrain or prevent transactions in interstate or foreign commerce in any such products; or
</P>
<P>(iii) The direct effect of the inducement is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such products to such retailer in interstate or foreign commerce.
</P>
<P>(b) <I>Malt beverages.</I> In the case of malt beverages, this part applies to transactions between an employee, officer, or representative of a trade buyer in any State and a brewer, importer, or wholesaler of malt beverages inside or outside such State only to the extent that the law of such State imposes requirements similar to the requirements of section 5(c) of the Federal Alcohol Administration Act (27 U.S.C. 205(c)), with respect to similar transactions between an employee, officer, or representative of a trade buyer in such State and a brewer, importer, or wholesaler of malt beverages in such State.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63257, Sept. 30, 1980, as amended by T.D. ATF-364, 60 FR 20426, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 10.5" NODE="27:1.0.1.1.8.1.45.5" TYPE="SECTION">
<HEAD>§ 10.5   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.10, Delegation of the Administrator's Authorities in 27 CFR Part 10, Commercial Bribery. You may obtain a copy of this order on the TTB website (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16923, Apr. 4, 2006, as amended by T.D. TTB-196,89 FR 87936, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 10.6" NODE="27:1.0.1.1.8.1.45.6" TYPE="SECTION">
<HEAD>§ 10.6   Administrative provisions.</HEAD>
<P>(a) <I>General.</I> The Act makes applicable the provisions including penalties of sections 49 and 50 of Title 15, United States Code, to the jurisdiction, powers and duties of the Administrator under this Act, and to any person (whether or not a corporation) subject to the provisions of law administered by the Administrator under this Act. The Act also provides that the Administrator is authorized to require, in such manner and such form as he or she shall prescribe, such reports as are necessary to carry out the powers and duties under this chapter.
</P>
<P>(b) <I>Examination and subpoena.</I> Any appropriate TTB officer shall at all reasonable times have access to, for the purpose of examination, and the right to copy any documentary evidence of any person, partnership, or corporation being investigated or proceeded against. An appropriate TTB officer shall also have the power to require by subpoena the attendance and testimony of witnesses and the production of all such documentary evidence relating to any matter under investigation, upon a satisfactory showing the requested evidence may reasonably be expected to yield information relevant to any matter being investigated under the Act.
</P>
<P>(c) <I>Reports required by the appropriate TTB officer</I>—(1) <I>General.</I> The appropriate TTB officer may, as part of a trade practice investigation of an industry member, require such industry member to submit a written report containing information on sponsorships, advertisements, promotions, and other activities pertaining to its business subject to the Act conducted by, or on behalf of, or benefiting the industry member.
</P>
<P>(2) <I>Preparation.</I> The report will be prepared by the industry member in letter form, executed under the penalties of perjury, and will contain the information specified by the appropriate TTB officer. The period covered by the report will not exceed three years.
</P>
<P>(3) <I>Filing.</I> The report will be filed in accordance with the instructions of the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0392)
</APPRO>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20426, Apr. 26, 1995. Redesignated and amended by T.D. ATF-428, 65 FR 52020, Aug. 28, 2000]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.8.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 10.11" NODE="27:1.0.1.1.8.2.45.1" TYPE="SECTION">
<HEAD>§ 10.11   Meaning of terms.</HEAD>
<P>As used in this part, unless the context otherwise requires, terms have the meanings given in this section. Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the meaning assigned to it by that Act.
</P>
<P><I>Act.</I> The Federal Alcohol Administration Act.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.10, Delegation of the Administrator's Authorities in 27 CFR Part 10, Commercial Bribery.
</P>
<P><I>Industry member.</I> Any person engaged in business as a distiller, brewer, recitifier, blender, or other producer, or as an importer or wholesaler of distilled spirits, wine or malt beverages, or as a bottler, or warehouseman and bottler, of distilled spirits; industry member does not include an agency of a State or political subdivision thereof, or an officer or employee of such agency.
</P>
<P><I>Officer.</I> All corporate executives, including presidents, vice presidents, treasurers, and chief executive officers.
</P>
<P><I>Product.</I> Distilled spirits, wine or malt beverages, as defined in the Federal Alcohol Administration Act.
</P>
<P><I>Trade buyer.</I> Any person who is a wholesaler or retailer of distilled spirits, wine, or malt beverages.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63257, Sept. 30, 1980, as amended by T.D. ATF-364, 60 FR 20426, Apr. 26, 1995; T.D. ATF-428, 65 FR 52020, Aug. 28, 2000; T.D. TTB-44, 71 FR 16924, Apr. 4, 2006]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.8.3" TYPE="SUBPART">
<HEAD>Subpart C—Commercial Bribery</HEAD>


<DIV8 N="§ 10.21" NODE="27:1.0.1.1.8.3.45.1" TYPE="SECTION">
<HEAD>§ 10.21   Commercial bribery.</HEAD>
<P>It is unlawful for an industry member, directly or indirectly or through an affiliate, to induce a trade buyer to purchase the industry member's products, to the complete or partial exclusion of products sold or offered for sale by other persons in interstate or foreign commerce, by offering or giving a bonus, premium, compensation, or other thing of value to any officer, employee, or representative of the trade buyer. The bonus, premium, compensation, or other thing of value need not be offered or given for the purpose of directly inducing a trade buyer to purchase from the seller, but rather is applicable if an industry member induces officers, employees or representatives of the trade buyer to promote sales of the industry member's products and thereby indirectly induces the trade buyer to purchase from the industry member.


</P>
</DIV8>


<DIV8 N="§ 10.22" NODE="27:1.0.1.1.8.3.45.2" TYPE="SECTION">
<HEAD>§ 10.22   Employee associations.</HEAD>
<P>Gifts, donations, and other payments such as for advertising in publications, by an industry member, to trade buyer employee associations are considered the same as bonuses, premiums, compensation, or other things of value given directly to the employees, since the benefits resulting from the gifts or payments flow to the individual members of the association.


</P>
</DIV8>


<DIV8 N="§ 10.23" NODE="27:1.0.1.1.8.3.45.3" TYPE="SECTION">
<HEAD>§ 10.23   Gifts or payments to wholesalers.</HEAD>
<P>Although industry members are not prohibited from offering or giving money or other things of value to a wholesale entity (<I>i.e.</I>, the corporation, partnership, or individual who owns the business), the wholesaler will be considered as acting as a mere conduit between its officers, employees, or representatives and the industry member, if:
</P>
<P>(a) There is an agreement or understanding, implied or explicit, that the money or thing of value will be passed on to the officers, employees, or representatives, or
</P>
<P>(b) It is obvious by the very nature of the item given (such as a free trip) that a pass through to the officers, employees, or representatives is clearly contemplated, or
</P>
<P>(c) The records of the recipient wholesaler do not accurately reflect such money or item as an asset or the wholesale entity, thus being subject to all ensuing tax consequences as distinguished from the receipt of the money or item as a personal asset of an officer, employee, or representative.


</P>
</DIV8>


<DIV8 N="§ 10.24" NODE="27:1.0.1.1.8.3.45.4" TYPE="SECTION">
<HEAD>§ 10.24   Sales promotion contests.</HEAD>
<P>Sales contests sponsored by an industry member which offer prizes directly or indirectly to trade buyer officers, employees or representatives are inducements within the meaning of the Act.


</P>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.8.4" TYPE="SUBPART">
<HEAD>Subpart D—Exclusion</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-364, 60 FR 20427, Apr. 26, 1995, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 10.51" NODE="27:1.0.1.1.8.4.45.1" TYPE="SECTION">
<HEAD>§ 10.51   Exclusion, in general.</HEAD>
<P>(a) Exclusion, in whole or in part occurs:
</P>
<P>(1) When a practice by an industry member, whether direct, indirect, or through an affiliate, places (or has the potential to place) trade buyer independence at risk by means of a tie or link between the industry member and trade buyer or by any other means of industry member control over the trade buyer, and
</P>
<P>(2) Such practice results in the trade buyer purchasing less than it would have of a competitor's product.
</P>
<P>(b) Section 10.52 lists practices that create a tie or link that places trade buyer independence at risk. Section 10.53 is reserved and will list practices not resulting in exclusion. Section 10.54 lists the criteria used for determining whether other practices can put trade buyer independence at risk.


</P>
</DIV8>


<DIV8 N="§ 10.52" NODE="27:1.0.1.1.8.4.45.2" TYPE="SECTION">
<HEAD>§ 10.52   Practice which puts trade buyer independence at risk.</HEAD>
<P>The practice specified in this section is deemed to place trade buyer independence at risk within the description of exclusion in § 10.51: Industry member payments of money to the employee(s) of a trade buyer without the knowledge or consent of the trade buyer-employer in return for the employee agreeing to order distilled spirits, wine, or malt beverages from the industry member. The practice enumerated here is an example and does not constitute a complete list of those situations which result in such control.


</P>
</DIV8>


<DIV8 N="§ 10.53" NODE="27:1.0.1.1.8.4.45.3" TYPE="SECTION">
<HEAD>§ 10.53   Practices not resulting in exclusion. [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 10.54" NODE="27:1.0.1.1.8.4.45.4" TYPE="SECTION">
<HEAD>§ 10.54   Criteria for determining trade buyer independence.</HEAD>
<P>The criteria specified in this section are indications that a particular practice between an industry member and an officer, employee, or representative of a trade buyer, other than those in § 10.52, places trade buyer independence at risk. A practice need not meet all of the criteria specified in this section in order to place trade buyer independence at risk.
</P>
<P>(a) The practice restricts or hampers the free economic choice of a trade buyer to decide which products to purchase or the quantity in which to purchase them for sale to retailers and consumers.
</P>
<P>(b) The industry member obligates the trade buyer to participate in the promotion to obtain the industry member's product.
</P>
<P>(c) The trade buyer has a continuing obligation to purchase or otherwise promote the industry member's product.
</P>
<P>(d) The trade buyer has a commitment not to terminate its relationship with the industry member with respect to purchase of the industry member's products.
</P>
<P>(e) The practice involves the industry member in the day-to-day operations of the trade buyer. For example, the industry member controls the trade buyer's decisions on which brand of products to purchase, the pricing of products, or the manner in which the products will be displayed on the trade buyer's premises.
</P>
<P>(f) The practice is discriminatory in that it is not offered to all trade buyers in the local market on the same terms without business reasons present to justify the difference in treatment.


</P>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="11" NODE="27:1.0.1.1.9" TYPE="PART">
<HEAD>PART 11—CONSIGNMENT SALES
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>15 U.S.C. 49-50; 27 U.S.C. 202 and 205.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-74, 45 FR 63258, Sept. 23, 1980, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:1.0.1.1.9.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 11.1" NODE="27:1.0.1.1.9.1.47.1" TYPE="SECTION">
<HEAD>§ 11.1   General.</HEAD>
<P>The regulations in this part, issued pursuant to section 105 of the Federal Alcohol Administration Act (27 U.S.C. 205), specify arrangements which are consignment sales under section 105(d) of the Act and contain guidelines concerning return of distilled spirits, wine and malt beverages from a trade buyer. This part does not attempt to enumerate all of the practices prohibited by section 105(d) of the Act. Nothing in this part shall operate to exempt any person from the requirements of any State law or regulation.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20427, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 11.2" NODE="27:1.0.1.1.9.1.47.2" TYPE="SECTION">
<HEAD>§ 11.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States, the District of Columbia, and Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 11.3" NODE="27:1.0.1.1.9.1.47.3" TYPE="SECTION">
<HEAD>§ 11.3   Application.</HEAD>
<P>(a) <I>General.</I> The regulations in this part apply to transactions between industry members and trade buyers.
</P>
<P>(b) <I>Transactions involving State agencies.</I> The regulations in this part apply to transactions involving State agencies operating as retailers or wholesalers.


</P>
</DIV8>


<DIV8 N="§ 11.4" NODE="27:1.0.1.1.9.1.47.4" TYPE="SECTION">
<HEAD>§ 11.4   Jurisdictional limits.</HEAD>
<P>(a) <I>General.</I> The regulations in this part apply where:
</P>
<P>(1) The industry member sells, offers for sale, or contracts to sell to a trade buyer engaged in the sale of distilled spirits, wines, or malt beverages, or for any such trade buyer to purchase, offer to purchase, or contract to purchase, any such products on consignment or under conditional sale or with the privilege of return or on any basis other than a bona fide sale, or where any part of such transaction involves, directly or indirectly, the acquisition by such person from the trade buyer or the agreement to acquire from the trade buyer other distilled spirits, wine, or malt beverages; and,
</P>
<P>(2) If: (i) The sale, purchase, offer or contract is made in the course of interstate or foreign commerce; or
</P>
<P>(ii) The industry member engages in using the practice to such an extent as substantially to restrain or prevent transactions in interstate or foreign commerce in any such products; or
</P>
<P>(iii) The direct effect of the sale, purchase, offer or contract is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such products to such trade buyer in interstate or foreign commerce.
</P>
<P>(b) <I>Malt beverages.</I> In the case of malt beverages, this part applies to transactions between a retailer in any State and a brewer, importer, or wholesaler of malt beverages inside or outside such State only to the extent that the law of such State imposes requirements similar to the requirements of section 5(d) of the Federal Alcohol Administration Act (27 U.S.C. 205(d)), with respect to similar transactions between a retailer in such State and a brewer, importer, or wholesaler of malt beverages in such State.


</P>
</DIV8>


<DIV8 N="§ 11.5" NODE="27:1.0.1.1.9.1.47.5" TYPE="SECTION">
<HEAD>§ 11.5   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.11, Delegation of the Administrator's Authorities in 27 CFR Part 11, Consignment Sales. You may obtain a copy of this order on the TTB website (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16924, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 11.6" NODE="27:1.0.1.1.9.1.47.6" TYPE="SECTION">
<HEAD>§ 11.6   Administrative provisions.</HEAD>
<P>(a) <I>General.</I> The Act makes applicable the provisions including penalties of sections 49 and 50 of Title 15, United States Code, to the jurisdiction, powers and duties of the Administrator under this Act, and to any person (whether or not a corporation) subject to the provisions of law administered by the Administrator under this Act.
</P>
<P>(b) <I>Examination and subpoena.</I> Any appropriate TTB officer shall at all reasonable times have access to, for the purpose of examination, and the right to copy any documentary evidence of any person, partnership, or corporation being investigated or proceeded against. An appropriate TTB officer shall also have the power to require by subpoena the attendance and testimony of witnesses and the production of all such documentary evidence relating to any matter under investigation, upon a satisfactory showing the requested evidence may reasonably be expected to yield information relevant to any matter being investigated under the Act.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20427, Apr. 26, 1995. Redesignated and amended by T.D. ATF-428, 65 FR 52021, Aug. 28, 2000]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.9.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 11.11" NODE="27:1.0.1.1.9.2.47.1" TYPE="SECTION">
<HEAD>§ 11.11   Meaning of terms.</HEAD>
<P>As used in this part, unless the context otherwise requires, terms have the meanings given in this section. Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the meaning assigned to it by that Act.
</P>
<P><I>Act.</I> The Federal Alcohol Administration Act.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.11, Delegation of the Administrator's Authorities in 27 CFR Part 11, Consignment Sales.
</P>
<P><I>Exchange.</I> The transfer of distilled spirits, wine, or malt beverages from a trade buyer to an industry member with other products taken as a replacement.
</P>
<P><I>Industry member.</I> Any person engaged in business as a distiller, brewer, rectifier, blender, or other producer, or as an importer or wholesaler of distilled spirits, wine or malt beverages, or as a bottler or warehouseman and bottler, of distilled spirits.
</P>
<P><I>Product.</I> Distilled spirits, wine or malt beverages, as defined in the Federal Alcohol Administration Act.
</P>
<P><I>Retailer.</I> Any person engaged in the sale of distilled spirits, wine or malt beverages to consumers. A wholesaler who makes incidental retail sales representing less than five percent of the wholesaler's total sales volume for the preceding two-month period shall not be considered a retailer with respect to such incidental sales.
</P>
<P><I>Return.</I> The transfer of distilled spirits, wine, or malt beverages from a trade buyer to the industry member from whom purchased, for cash or credit.
</P>
<P><I>Trade buyer.</I> Any person who is a wholesaler or retailer of distilled spirits, wine or malt beverages.
</P>
<CITA TYPE="N">[T.D. ATF-74, 45 FR 63258, Sept. 23, 1980, as amended by T.D. ATF-364, 60 FR 20427, Apr. 26, 1995; T.D. ATF-428, 65 FR 52021, Aug. 28, 2000; T.D. TTB-44, 71 FR 16924, Apr. 4, 2006]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.9.3" TYPE="SUBPART">
<HEAD>Subpart C—Unlawful Sales Arrangements</HEAD>


<DIV8 N="§ 11.21" NODE="27:1.0.1.1.9.3.47.1" TYPE="SECTION">
<HEAD>§ 11.21   General.</HEAD>
<P>It is unlawful for an industry member to sell, offer for sale, or contract to sell to any trade buyer, or for any such trade buyer to purchase, offer to purchase, or contract to purchase any products (a) on consignment; or (b) under conditional sale; or (c) with the privilege of return; or (d) on any basis other than a bona fide sale; or (e) if any part of the sale involves, directly or indirectly, the acquisition by such person of other products from the trade buyer or the agreement to acquire other products from the trade buyer. Transactions involving the bona fide return of products for ordinary and usual commercial reasons arising after the product has been sold are not prohibited.


</P>
</DIV8>


<DIV8 N="§ 11.22" NODE="27:1.0.1.1.9.3.47.2" TYPE="SECTION">
<HEAD>§ 11.22   Consignment sales.</HEAD>
<P>Consignment sales are arrangements wherein the trade buyer is under no obligation to pay for distilled spirits, wine, or malt beverages until they are sold by the trade buyer.


</P>
</DIV8>


<DIV8 N="§ 11.23" NODE="27:1.0.1.1.9.3.47.3" TYPE="SECTION">
<HEAD>§ 11.23   Sales conditioned on the acquisition of other products.</HEAD>
<P>(a) <I>General.</I> A sale in which any part of the sale involves, directly or indirectly, the acquisition by the industry member from the trade buyer, or the agreement, as a condition to present or future sales, to accept other products from the trade buyer is prohibited.
</P>
<P>(b) <I>Exchange.</I> The exchange of one product for another is prohibited as a sales transaction conditioned on the acquisition of other products. However, the exchange of a product for equal quantities (case for case) of the same type and brand of product, in containers of another size is not considered an acquisition of “other” products and is not prohibited if there was no direct or implied privilege of return extended when the product was originally sold. Industry members may make price adjustments on products eligible for exchange under this paragraph.


</P>
</DIV8>


<DIV8 N="§ 11.24" NODE="27:1.0.1.1.9.3.47.4" TYPE="SECTION">
<HEAD>§ 11.24   Other than a bona fide sale.</HEAD>
<P>“Other than a bona fide sale” includes, but is not limited to, sales in connection with which the industry member purchases or rents the display, shelf, storage or warehouse space to be occupied by such products at premises owned or controlled by the retailer.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20427, Apr. 26, 1995]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.9.4" TYPE="SUBPART">
<HEAD>Subpart D—Rules for the Return of Distilled Spirits, Wine, and Malt Beverages</HEAD>


<DIV8 N="§ 11.31" NODE="27:1.0.1.1.9.4.47.1" TYPE="SECTION">
<HEAD>§ 11.31   General.</HEAD>
<P>(a) Section 5(d) of the Act provides, in part, that it is unlawful to sell, offer to sell, or contract to sell products with the privilege of return for any reason, other than those considered to be “ordinary and usual commercial reasons” arising after the product has been sold. Sections 11.32 through 11.39 specify what are considered “ordinary and usual commercial reasons” for the return of products, and outline the conditions and limitations for such returns.
</P>
<P>(b) An industry member is under no obligation to accept the return of products for the reasons listed in §§ 11.32 through 11.39.


</P>
</DIV8>


<DIV7 N="47" NODE="27:1.0.1.1.9.4.47" TYPE="SUBJGRP">
<HEAD>Exchanges and Returns for Ordinary and Usual Commercial Reasons</HEAD>


<DIV8 N="§ 11.32" NODE="27:1.0.1.1.9.4.47.2" TYPE="SECTION">
<HEAD>§ 11.32   Defective products.</HEAD>
<P>Products which are unmarketable because of product deterioration, leaking containers, damaged labels or missing or mutilated tamper evident closures may be exchanged for an equal quantity of identical products or may be returned for cash or credit against outstanding indebtedness.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20427, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 11.33" NODE="27:1.0.1.1.9.4.47.3" TYPE="SECTION">
<HEAD>§ 11.33   Error in products delivered.</HEAD>
<P>Any discrepancy between products ordered and products delivered may be corrected, within a reasonable period after delivery, by exchange of the products delivered for those which were ordered, or by a return for cash or credit against outstanding indebtedness.


</P>
</DIV8>


<DIV8 N="§ 11.34" NODE="27:1.0.1.1.9.4.47.4" TYPE="SECTION">
<HEAD>§ 11.34   Products which may no longer be lawfully sold.</HEAD>
<P>Products which may no longer be lawfully sold may be returned for cash or credit against outstanding indebtedness. This would include situations where, due to a change in regulation or administrative procedure over which the trade buyer or an affiliate of the trade buyer has no control, a particular size or brand is no longer permitted to be sold.
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20428, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 11.35" NODE="27:1.0.1.1.9.4.47.5" TYPE="SECTION">
<HEAD>§ 11.35   Termination of business.</HEAD>
<P>Products on hand at the time a trade buyer terminates operations may be returned for cash or credit against outstanding indebtedness. This does not include a temporary seasonal shutdown (see § 11.39).
</P>
<CITA TYPE="N">[T.D. ATF-364, 60 FR 20428, Apr. 26, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 11.36" NODE="27:1.0.1.1.9.4.47.6" TYPE="SECTION">
<HEAD>§ 11.36   Termination of franchise.</HEAD>
<P>When an industry member has sold products for cash or credit to one of its wholesalers and the distributorship arrangement is subsequently terminated, stocks of the product on hand may be returned for cash or credit against outstanding indebtedness.


</P>
</DIV8>


<DIV8 N="§ 11.37" NODE="27:1.0.1.1.9.4.47.7" TYPE="SECTION">
<HEAD>§ 11.37   Change in product.</HEAD>
<P>A trade buyer's inventory of a product which has been changed in formula, proof, label or container (subject to § 11.46) may be exchanged for equal quantities of the new version of that product.


</P>
</DIV8>


<DIV8 N="§ 11.38" NODE="27:1.0.1.1.9.4.47.8" TYPE="SECTION">
<HEAD>§ 11.38   Discontinued products.</HEAD>
<P>When a producer or importer discontinues the production or importation of a product, a trade buyer's inventory of that product may be returned for cash or credit against outstanding indebtedness.


</P>
</DIV8>


<DIV8 N="§ 11.39" NODE="27:1.0.1.1.9.4.47.9" TYPE="SECTION">
<HEAD>§ 11.39   Seasonal dealers.</HEAD>
<P>Industry members may accept the return of products from retail dealers who are only open a portion of the year, if the products are likely to spoil during the off season. These returns will be for cash or for credit against outstanding indebtedness.


</P>
</DIV8>

</DIV7>


<DIV7 N="48" NODE="27:1.0.1.1.9.4.48" TYPE="SUBJGRP">
<HEAD>Exchanges and Returns for Reasons Not Considered Ordinary and Usual</HEAD>


<DIV8 N="§ 11.45" NODE="27:1.0.1.1.9.4.48.10" TYPE="SECTION">
<HEAD>§ 11.45   Overstocked and slow-moving products.</HEAD>
<P>The return or exchange of a product because it is overstocked or slow-moving does not constitute a return for “ordinary and usual commercial reasons.”


</P>
</DIV8>


<DIV8 N="§ 11.46" NODE="27:1.0.1.1.9.4.48.11" TYPE="SECTION">
<HEAD>§ 11.46   Seasonal products.</HEAD>
<P>The return or exchange of products for which there is only a limited or seasonal demand, such as holiday decanters and certain distinctive bottles, does not constitute a return for “ordinary and usual commercial reasons.”


</P>
</DIV8>

</DIV7>

</DIV6>

</DIV5>


<DIV5 N="12" NODE="27:1.0.1.1.10" TYPE="PART">
<HEAD>PART 12—FOREIGN NONGENERIC NAMES OF GEOGRAPHIC SIGNIFICANCE USED IN THE DESIGNATION OF WINES
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>27 U.S.C. 205.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-296, 55 FR 17967, Apr. 30, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:1.0.1.1.10.1" TYPE="SUBPART">
<HEAD>Subpart A—General Provisions</HEAD>


<DIV8 N="§ 12.1" NODE="27:1.0.1.1.10.1.49.1" TYPE="SECTION">
<HEAD>§ 12.1   Scope.</HEAD>
<P>The regulations in this part relate to foreign names of geographic significance used in the designation of wines which are recognized as nongeneric under 27 CFR 4.24, and include those nongeneric names which the Administrator has found to be distinctive designations of wine, as defined in § 4.24(c)(1) of this chapter.


</P>
</DIV8>


<DIV8 N="§ 12.2" NODE="27:1.0.1.1.10.1.49.2" TYPE="SECTION">
<HEAD>§ 12.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States, the District of Columbia, and Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 12.3" NODE="27:1.0.1.1.10.1.49.3" TYPE="SECTION">
<HEAD>§ 12.3   Procedure for recognition of foreign distinctive designations.</HEAD>
<P>(a) <I>Procedure.</I> Under the provisions of 27 CFR 70.701(c), the Administrator may approve petitions requesting TTB recognition of names of geographic significance which are the distinctive designations of specific wines under § 4.24(c) of this chapter.
</P>
<P>(b) <I>Format.</I> A petition shall be in the form of a letterhead application requesting that TTB recognize the distinctive wine designation listed in their petition. The petition should present evidence to support a finding that the geographic designation is known to the U.S. consumer and trade as the designation of a specific wine of a particular place or region, distinguishable from all other wines. All background material and supporting data submitted will be made part of the application and will be considered in the review process.
</P>
<CITA TYPE="N">[T.D. ATF-296, 55 FR 17967, Apr. 30, 1990, as amended by T.D. ATF-463, 66 FR 42733, Aug. 15, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.10.2" TYPE="SUBPART">
<HEAD>Subpart B [Reserved]</HEAD>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.10.3" TYPE="SUBPART">
<HEAD>Subpart C—Foreign Nongeneric Names of Geographic Significance</HEAD>


<DIV8 N="§ 12.21" NODE="27:1.0.1.1.10.3.49.1" TYPE="SECTION">
<HEAD>§ 12.21   List of examples of names by country.</HEAD>
<P>The names listed in this section are examples of foreign nongeneric names of geographic significance under § 4.24(c) (1) and (2) of this chapter.
</P>
<P>(a) <I>Argentina:</I> Alto Colorado, Valles Calchaquies.
</P>
<P>(b) <I>Australia:</I> Adelaide, Barossa Valley, Clare Valley, Cowra, Forbes, Geelong, Goulburn Valley, Granite Belt, Great Western, Hunter Valley, McLaren Vale, Mudgee, Murray River Valley, New South Wales, North Richmond, Queensland, South Australia, Swan Valley, Tasmania, Victoria, Western Australia, Yarra Valley.
</P>
<P>(c) <I>Austria:</I> Bisamberg-Kreuzenstein, Burgenland, Carnuntum, Frauenweingarten, Kapellenweg, Kirchberger Wagram, Matzner Hugel, Niederosterreich, Nussberg, Pinkatal, Schatzberg, Sekt, Wachau, Weststeiermark, Wien.
</P>
<P>(d) <I>Federal Republic of Germany:</I> Ahr, Bacharach, Bad Durkheim, Baden, Badisches Frankenland, Badstube, Bayerischer Bodensee, Bernkastel, Bingen, Breisgau, Deidesheimer Hofstuck, Dhroner Hofberger, Erdener Treppchen, Graach, Graben, Hessische Bergstrasse, Himmelreich, Hochheimer Holle, Johannisberg, Klosterberg, Kocher-Jagst-Tauber, Kreuznach, Kurfurstlay, Loreley, Maindreieck, Mainviereck, Markgraflerland, Mittelrhein, Moseltor, Nahe, Nierstein, Obermosel, Oppenheimer Krotenbrunnen, Ortenau, Remstal-Stuttgart, Rhein-Burgengau, Rheinfalz, Rheingau, Rheinhessen, Schloss Bockelheim, Sekt, Siebengebirge, Starkenburg, Steigerwald, Sudliche Weinstrasse, Trier, Umstadt, Urziger Wurzgarten, Walporzheim/Ahrtal, Wiltinger Scharzberg, Winkeler Jesuitengarten, Wonnegau, Wurttemberg, Zell/Mosel.
</P>
<P>(e) <I>France:</I> Ajaccio, Arbois, Auxey-Duresses, Bandol, Bearn, Bellet, Bergerac, Blagny, Blaye, Bonnezeaux, Bourg, Buzet, Cadillac, Cahors, Canon-Fronsac, Cassis, Cerons, Charlemagne, Chateau Chalon, Chateau-Grillet, Chinon, Chorey-les-Beaunes, Clos de Tart, Clos des Lambrays, Clos Saint-Denis, Collioure, Condrieu, Cornas, Coteaux de l'Aubance, Coteaux du Languedoc, Coteaux du Loir, Coteaux du Lyonnais, Coteaux du Tricastin, Cotes de Duras, Cotes de Provence, Cotes du Jura, Cotes du Roussillon, Cotes du Ventoux, Crepy, Dezize-les-Maranges, Faugeres, Fitou, Fixin, Gaillac, Gigondas, Givry, Gros Plant, Irouleguy, Jasnieres, Jurancon, Ladoix, L'Etoile, Limoux, Lirac, Loupiac, Madiran, Mazis-Chambertin, Menetou Salon, Minervois, Monbazillac, Montagny, Monthelie, Montlouis, Montravel, Moulis, Muscat de Beaumes de Venise, Muscat de Frontignan, Neac, Pacherenc du Vic Bilh, Palette, Pecharmant, Pernand-Vergelesses, Picpoul-de-Pinet, Pineau des Charentes, Pouilly-Loche, Quarts-de-Chaume, Quincy, Regnie, Reuilly, Rosette, Rully, Saint-Aubin, Saint-Chinian, Saint-Georges-d'Orques, Saint-Joseph, Saint-Nicolas-de-Bourgueil, Saint-Peray, Saint-Romain, Saint-Veran, Sainte-Croix-du-Mont, Saussignac, Sauvignon de Saint-Bris, Savennieres, Seyssel, Vin de Lavilledieu, Vin de pays de l'Aude, Vin de Savoie, Vin du Bugey, Vin du Haut-Poitou.
</P>
<P>(f) <I>Greece:</I> Aghialos, Amynteon, Archanes, Daphnes, Goumenissa, Kantza, Mantinea, Mavrodaphni Cefalonia, Mavrodaphni Patras, Moschatos Lemnos, Moschatos Rhodes, Naoussa, Nemea, Paros, Peza, Plagies Melitona, Rapsani, Retsina Attica, Retsina Megaron, Samos, Santorini, Sitia, Sitsa.
</P>
<P>(g) <I>Italy:</I> Abruzzo, Acqui, Affile, Aleatico di Gradoli, Alto Mincio, Avellino, Barbera del Monferrato, Basilicata, Bianco di Custoza, Bianco Pisano di S. Torpe, Boca, Campidano di Terralba, Castelli di Jesi, Chieri, Cinque Terre, Ciro, Colli Albani, Colli del Trasimeno, Diano d'Alba, Est! Est! Est! di Montefiascone, Etna, Fara, Faro, Franciacorta, Gabiano, Gavi, Ghemme, Ischia, Lambrusco Reggiano, Lamezia, Langhe Monregalesi, Lessona, Lipari, Melissa, Metauro, Molise, Olevano Romano, Oristano, Ovada, Parrina, Piceno, Piemonte, Piglio, Pollino, Puglia, Romagna, Rosso Barletta, Savuto, Sicilia, Sorbara, Sulcis, Taurasi, Torgiano, Trani, Valtellina Sassella, Velletri, Veneto, Vermentino di Gallura, Vesuvio, Vulture, Zagarolo.
</P>
<P>(h) <I>New Zealand:</I> Blenheim, Canterbury, Central Otago, Gisborne, Hawkes Bay, Henderson, Marlborough, Nelson, Northland, Richmond, Rodney, South Auckland, Te Kauwhata, Wanganui, Wellington.
</P>
<P>(i) <I>Portugal:</I> Algarve, Alijo, Bairrada, Baixo Corgo, Basto, Beiras, Belem, Braga, Bucelas, Camara de Lobos, Campanario, Cantahede, Carcavelos, Cartaxo, Chamusca, Colares, Douro, Estremadura, Favaios, Lafoes, Lagoa, Lagos, Lamego, Lousada, Meda, Mesao Frio, Moncao, Moscatel de Setubal, Murca, Nelas, Penafiel, Pico, Portimao, Preces, Ribatejo-Oeste, Sabrosa, Santa Luzia, Sao Joao, Sao Martinho, Sao Pedro, Tavira, Torres Vedras, Tras-os-Montes, Viana do Castelo, Vila Real, Vinho Verde.
</P>
<P>(j) <I>Romania:</I> Alba Iulia, Arges, Bistrita-Nasaud, Bujoru, Cotesti, Cotnari, Dealu Mare, Dealurile, Dragasani, Drobeta Turnuseverin, Istria, Ivesti, Jidvei, Medias, Mehedinti, Minis, Moldovei, Murfatlar, Nicoresti, Odobesti, Oltina, Panciu, Recas, Sarica Niculitel, Sebes, Segarcea, Tecuci-Galati, Teremia, Tirnave.
</P>
<P>(k) <I>Spain:</I> Alella, Alicante, Almansa, Ampurdan-Costa Brava, Campo de Borja, Carinena, Cava, Condado de Huelva, Jumilla, La Mancha, Manzanilla-Sanlucar de Barrameda, Mentrida, Montilla-Moriles, Navarra, Penedes, Priorato, Ribeiro, Ribera del Duero, Rueda, Tarragona, Utiel-Requena, Valdeorras, Valencia, Yecla.
</P>
<P>(l) <I>Switzerland:</I> Agarn, Aire-la-Ville, Argovie, Auvernier, Avully, Berne, Bernex, Bonvillars, Bratsch, Chalais, Chamoson, Cressier, Cully, Dardagny, Dezaley, Epesses, Erlenbach, Friburg, Fully, Geneve, Grisons, Gy, Herrliberg, Hornussen, La Cote, Lavaux, Lens, Limmattal, Lucerne, Lutry, Meilen, Montreux, Neuchatel, Niedergesteln, Riex, Rivaz, Schaffhouse, Schlossgut Herdern, Schwyz, Suisse, Swiss, Tessin, Thurgovie, Valais, Varen/Varone, Vaud, Veyrier, Villette, Zeneggen, Zurcher Unterland, Zurich.
</P>
<P>(m) <I>Yugoslavia:</I> Blatina Mostar, Bolski Plavac, Borje, Brodska Grasevina, Crnogorski Vranac, Dingac, Erdutski Burgundac Bijeli, Faros, Grk Lumbarda, Ilocka Frankovka, Kutjevacka Grasevina, Merlot Bujstine, Plesivicki Rizling Rajnski, Porecki Merlot, Postup, Primostenski Babic, Smedereveski Sovinjon, Vinaracki Merlo, Viska Vugava, Vrsacki Rizling, Zlata Radgonska Penina.


</P>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.10.4" TYPE="SUBPART">
<HEAD>Subpart D—Foreign Nongeneric Names Which Are Distinctive Designations of Specific Grape Wines</HEAD>


<DIV8 N="§ 12.31" NODE="27:1.0.1.1.10.4.49.1" TYPE="SECTION">
<HEAD>§ 12.31   List of approved names by country.</HEAD>
<P>The names listed in this section are foreign nongeneric names of geographic significance which are also recognized by the Administrator as distinctive designations of specific grape wines, in accordance with § 4.24(c)(1) and (3) of this chapter.
</P>
<P>(a) <I>Federal Republic of Germany:</I> Bernkasteler Doctor (Doktor), Deidesheimer, Dexheimer Doktor, Erbacher Marcobrunn, Forster, Forster Jesuitengarten, Graacher Himmelreich, Liebfraumilch, Liebfrauenmilch, Mosel, Mosel-Saar-Ruwer, Ockfener Bockstein, Piesporter Goldtropfchen, Piesporter Michelsberg, Piesporter Treppchen, Rudesheimer, Scharzhofberger, Schloss Johannisberger, Schloss Vollrads, Wehlener Sonnenuhr, Zeller Schwarze Katz.
</P>
<P>(b) <I>France:</I> Aloxe-Corton, Alsace or Vin d'Alsace, Anjou, Barsac, Batard-Montrachet, Beaujolais, Beaujolais Villages, Beaune, Bonnes Mares, Bordeaux, Bordeaux Blanc, Bordeaux Rouge, Bourgogne, Brouilly, Chambertin, Chambolle-Musigny, Charmes-Chambertin, Chassagne-Montrachet, Chateau Lafite, Chateau Margaux, Chateau Yquem, Chateauneuf-du-Pape, Chenas, Chevalier-Montrachet, Chiroubles, Clos de la Roche, Clos de Vougeot, Corton, Corton-Charlemagne, Cote de Beaune, Cote de Beaune-Villages, Cote de Brouilly, Cote de Nuits, Cote de Nuits-Villages, Cote Rotie, Coteaux du Layon, Cotes du Rhone, Echezeaux, Entre-Deux-Mers, Fleurie, Gevrey-Chambertin, Grands Echezeaux, Graves, Haut Medoc, Hermitage, La Tache, Loire, Macon, Margaux, Medoc, Mercurey, Meursault, Montrachet, Morgon, Moulin-a-Vent, Muscadet, Musigny, Nuits or Nuits-Saint-Georges, Pauillac, Pomerol, Pommard, Pouilly-Fuisse, Pouilly Fume, Puligny-Montrachet, Rhone, Richebourg, Romanee-Conti, Romanee Saint-Vivant, Rose d'Anjou, Saint-Amour, Saint-Emilion, Saint-Estephe, Saint-Julien, Sancerre, Santenay, Saumur, Savigny or Savigny-les-Beaunes, Tavel, Touraine, Volnay, Vosne-Romanee, Vouvray.
</P>
<P>(c) <I>Italy:</I> Asti Spumante, Barbaresco, Barbera d'Alba, Barbera d'Asti, Bardolino, Barolo, Brunello di Montalcino, Dolcetto d'Alba, Frascati, Gattinara, Lacryma Christi, Nebbiolo d'Alba, Orvieto, Soave, Valpolicella, Vino Nobile de Montepulciano.
</P>
<P>(d) <I>Portugal:</I> Dao, Oporto, Porto, or Vinho do Porto.
</P>
<P>(e) <I>Spain:</I> Lagrima, Rioja.


</P>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="13" NODE="27:1.0.1.1.11" TYPE="PART">
<HEAD>PART 13—LABELING PROCEEDINGS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>27 U.S.C. 205(e), 26 U.S.C. 5301 and 7805.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 13 appear by T.D. ATF-449, 66 FR 19085, Apr. 13, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.11.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope and Construction of Regulations</HEAD>


<DIV8 N="§ 13.1" NODE="27:1.0.1.1.11.1.49.1" TYPE="SECTION">
<HEAD>§ 13.1   Scope of part.</HEAD>
<P>The regulations in this part govern the procedure and practice in connection with the issuance, denial, and revocation of certificates of label approval, certificates of exemption from label approval, and distinctive liquor bottle approvals under 27 U.S.C. 205(e) and 26 U.S.C. 5301. The regulations in this part also provide for appeal procedures when applications for label approval, exemptions from label approval, or distinctive liquor bottle approvals are denied, when such applications are approved with qualifications, or when these applications are approved and then subsequently revoked. The appeal process in this part does not apply to organic claims on alcohol beverage labels. See § 13.101.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-483, 67 FR 62858, Oct. 8, 2002 ]


</CITA>
</DIV8>


<DIV8 N="§ 13.2" NODE="27:1.0.1.1.11.1.49.2" TYPE="SECTION">
<HEAD>§ 13.2   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.13, Delegation of the Administrator's Authorities in 27 CFR Part 13, Labeling Proceedings. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202. 
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16924, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 13.3" NODE="27:1.0.1.1.11.1.49.3" TYPE="SECTION">
<HEAD>§ 13.3   Related regulations.</HEAD>
<P>The following regulations also relate to this part: 
</P>
<EXTRACT>
<FP-1>7 CFR Part 205—National Organic Program 
</FP-1>
<FP-1>27 CFR Part 1—Basic Permit Requirements Under the Federal Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits 
</FP-1>
<FP-1>27 CFR Part 4—Labeling and Advertising of Wine 
</FP-1>
<FP-1>27 CFR Part 5—Labeling and Advertising of Distilled Spirits 
</FP-1>
<FP-1>27 CFR Part 7—Labeling and Advertising of Malt Beverages 
</FP-1>
<FP-1>27 CFR Part 9—American Viticultural Areas 
</FP-1>
<FP-1>27 CFR Part 12—Foreign Nongeneric Names of Geographic Significance Used in the Designation of Wines 
</FP-1>
<FP-1>27 CFR Part 16—Alcoholic Beverage Health Warning Statement 
</FP-1>
<FP-1>27 CFR Part 19—Distilled Spirits Plants 
</FP-1>
<FP-1>27 CFR Part 24—Wine 
</FP-1>
<FP-1>27 CFR Part 25—Beer 
</FP-1>
<FP-1>27 CFR Part 26—Liquors and Articles from Puerto Rico and the Virgin Islands 
</FP-1>
<FP-1>27 CFR Part 27—Importation of Distilled Spirits, Wines, and Beer 
</FP-1>
<FP-1>27 CFR 28—Exportation of Alcohol
</FP-1>
<FP-1>27 CFR Part 71—Rules of Practice in Permit Proceedings</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-483, 67 FR 62858, Oct. 8, 2002, as amended by T.D. TTB-8, 69 FR 3829, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.11.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 13.11" NODE="27:1.0.1.1.11.2.49.1" TYPE="SECTION">
<HEAD>§ 13.11   Meaning of terms.</HEAD>
<P>Where used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this subpart. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “include” and “including” do not exclude things not enumerated that are in the same general class.
</P>
<P><I>Act.</I> The Federal Alcohol Administration Act.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Applicant.</I> The permittee or brewer whose name, address, and basic permit number, or plant registry number, appears on an unapproved Form 5100.31, application for a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.13, Delegation of the Administrator's Authorities in 27 CFR Part 13, Labeling Proceedings.
</P>
<P><I>Brewer.</I> Any person who brews beer (except a person who produces only beer exempt from tax under 26 U.S.C. 5053(e)) and any person who produces beer for sale.
</P>
<P><I>Certificate holder.</I> The permittee or brewer whose name, address, and basic permit number, or plant registry number, appears on an approved Form 5100.31, certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval.
</P>
<P><I>Certificate of exemption from label approval.</I> A certificate issued on Form 5100.31 which authorizes the bottling of wine or distilled spirits, under the condition that the product will under no circumstances be sold, offered for sale, shipped, delivered for shipment, or otherwise introduced by the applicant, directly or indirectly, into interstate or foreign commerce.
</P>
<P><I>Certificate of label approval.</I> A certificate issued on Form 5100.31 that authorizes the bottling or packing of wine, distilled spirits, or malt beverages, or the removal of bottled wine, distilled spirits, or malt beverages from customs custody for introduction into commerce, as long as the product bears labels identical to the labels affixed to the face of the certificate, or labels with changes authorized by the certificate.
</P>
<P><I>Distilled spirits.</I> Ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whisky, rum, brandy, gin, and other distilled spirits, including all dilutions and mixtures thereof for nonindustrial use. The term “distilled spirits” does not include mixtures containing wine, bottled at 48 degrees of proof or less, if the mixture contains more than 50 percent wine on a proof gallon basis.
</P>
<P><I>Distinctive liquor bottle.</I> A liquor bottle of distinctive shape or design.
</P>
<P><I>Distinctive liquor bottle approval.</I> Approval issued on Form 5100.31 that authorizes the bottling of distilled spirits, or the removal of bottled distilled spirits from customs custody for introduction into commerce, as long as the bottle is identical to the photograph affixed to the face of the form.
</P>
<P><I>Interstate or foreign commerce.</I> Commerce between any State and any place outside that State, or commerce within any Territory or the District of Columbia, or between points within the same State but through any place outside that State.
</P>
<P><I>Liquor bottle:</I> A bottle made of glass or earthenware, or of other suitable material approved by the Food and Drug Administration, which has been designed or is intended for use as a container for distilled spirits for sale for beverage purposes, and which has been determined by the appropriate TTB officer to protect the revenue adequately.
</P>
<P><I>Malt beverage.</I> A beverage made by the alcoholic fermentation of an infusion or decoction, or combination of both, in potable brewing water, of malted barley with hops, or their parts, or their products, and with or without other malted cereals, and with or without the addition of unmalted or prepared cereals, other carbohydrates, or products prepared therefrom, and with or without the addition of carbon dioxide, and with or without other wholesome products suitable for human food consumption.
</P>
<P><I>Permittee.</I> Any person holding a basic permit under the Federal Alcohol Administration Act.
</P>
<P><I>Person.</I> Any individual, partnership, joint stock company, business trust, association, corporation, or other form of business enterprise, including a receiver, trustee, or liquidating agent and including an officer or employee of any agency of a State or political subdivision thereof.
</P>
<P><I>TTB.</I> The Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>United States.</I> The several States and Territories and the District of Columbia; the term “State” includes a Territory and the District of Columbia; and the term “Territory” means the Commonwealth of Puerto Rico.
</P>
<P><I>Use of other terms.</I> Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the same meaning assigned to it by the Act.
</P>
<P><I>Wine.</I> (1) Wine as defined in section 610 and section 617 of the Revenue Act of 1918 (26 U.S.C. 5381-5392), only if for nonindustrial use and containing not less than 7 percent and not more than 24 percent of alcohol by volume; and
</P>
<P>(2) Other alcoholic beverages not so defined, but made in the manner of wine, including sparkling and carbonated wine, wine made from condensed grape must, wine made from other agricultural products than the juice of sound, ripe grapes, imitation wine, compounds sold as wine, vermouth, cider, perry, and sake, only if for nonindustrial use and containing not less than 7 percent and not more than 24 percent of alcohol by volume.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 FR 19085, Apr. 13, 2001; T.D. TTB-44, 71 FR 16924, Apr. 4, 2006; T.D. TTB-91, 76 FR 5477, Feb. 1, 2011; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.11.3" TYPE="SUBPART">
<HEAD>Subpart C—Applications</HEAD>


<DIV8 N="§ 13.20" NODE="27:1.0.1.1.11.3.49.1" TYPE="SECTION">
<HEAD>§ 13.20   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form must be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, the information called for in each form is that which is required by this part. The form will be filed in accordance with the instructions on the form. 
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-449, 66 FR 19085, Apr. 13, 2001, as amended by T.D. TTB-44, 71 FR 16924, Apr. 4, 2006; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 13.21" NODE="27:1.0.1.1.11.3.49.2" TYPE="SECTION">
<HEAD>§ 13.21   Application for certificate.</HEAD>
<P>(a) <I>Form of application.</I> An applicant for a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval, must send or deliver signed duplicate copies of TTB Form 5100.31, “Application For And Certification/Exemption Of Label/Bottle Approval” according to the instructions for that form. If the application complies with applicable laws and regulations, a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval will be issued. If the approval is qualified in any manner, such qualifications will be set forth in the appropriate space on the form.
</P>
<P>(b) <I>Time period for action on application.</I> Within 90 days of receipt of an application, the appropriate TTB officer must notify the applicant whether the application has been approved or denied. The appropriate TTB officer may extend this period of time once, by an additional 90 days, if he or she finds that unusual circumstances require additional time to consider the issues presented by an application. If the appropriate TTB officer extends the period, he or she must notify the applicant by letter, along with a brief explanation of the issues presented by the label. If the applicant receives no decision from the appropriate TTB officer within the time periods set forth in this paragraph, the applicant may file an appeal as provided in § 13.25. 
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 FR 19085, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 13.22" NODE="27:1.0.1.1.11.3.49.3" TYPE="SECTION">
<HEAD>§ 13.22   Withdrawal of applications.</HEAD>
<P>A person who has filed an application for a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval, may withdraw such application at any time before TTB takes action on the application.


</P>
</DIV8>


<DIV8 N="§ 13.23" NODE="27:1.0.1.1.11.3.49.4" TYPE="SECTION">
<HEAD>§ 13.23   Notice of denial.</HEAD>
<P>Whenever an application for a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval is denied, the appropriate TTB officer must issue to the applicant a notice of denial on a certificate of label approval rejection document briefly setting forth the reasons why the label or bottle is not in compliance with the applicable laws or regulations. The applicant may then submit a new application for approval after making the necessary corrections.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 FR 19085, Apr. 13, 2001; T.D. TTB-91, 76 FR 5477, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 13.25" NODE="27:1.0.1.1.11.3.49.5" TYPE="SECTION">
<HEAD>§ 13.25   Appeal of qualification or denial.</HEAD>
<P>(a) <I>Form of appeal.</I> If an applicant for a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval wishes to appeal the qualified approval or denial of an application, the applicant may file a written appeal with the appropriate TTB officer within 45 days after the date of the notice of qualification or denial. The appeal should explain why the applicant believes that the label or bottle is in compliance with applicable laws and regulations. If no appeal is filed within 45 days after the date of the notice of qualification or denial, the notice will be the final decision of TTB.
</P>
<P>(b) <I>Informal resolution.</I> Applicants may choose to pursue informal resolution of disagreements regarding correction sheets or qualifications by requesting an informal conference with the appropriate TTB officer. However, formal administrative appeals must comply with the provisions of paragraph (a) of this section.


</P>
</DIV8>


<DIV8 N="§ 13.26" NODE="27:1.0.1.1.11.3.49.6" TYPE="SECTION">
<HEAD>§ 13.26   Decision after appeal of qualification or denial.</HEAD>
<P>(a) <I>Decision.</I> After considering any written arguments or evidence presented by the applicant, the appropriate TTB officer must issue a written decision to the applicant. If the decision is that the qualified approval or denial should stand, a copy of the application, marked “appeal denied,” must be returned to the applicant with an explanation of the decision and the specific laws or regulations relied upon in qualifying or denying the application. If the decision is that the certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle application should be approved without qualification, the applicant should resubmit TTB Form 5100.31 and the certificate will be issued.
</P>
<P>(b) <I>Time limits for decision.</I> Within 90 days of receipt of an appeal, the appropriate TTB officer must notify the appellant whether the appeal has been granted or denied. If an applicant requests an informal conference as part of an appeal, as authorized in § 13.71, the 90-day period will begin 10 days after the date of the conference to allow for consideration of any written arguments, facts or evidence submitted after the conference. The appropriate TTB officer may extend this period of time once by an additional 90 days if he or she finds that unusual circumstances require additional time to consider the issues presented by an appeal. If the appropriate TTB officer extends the period, he or she must notify the applicant by letter, briefly explaining the issues presented by the label. If the appellant receives no decision from the appropriate TTB officer within the time periods set forth in this paragraph, the appellant may appeal as provided in § 13.27.
</P>
<P>(c) <I>Judicial review.</I> Prior to applying to the Federal courts for review, an applicant must first exhaust his or her administrative remedies, including the appeal rights set forth in this section and § 13.27.


</P>
</DIV8>


<DIV8 N="§ 13.27" NODE="27:1.0.1.1.11.3.49.7" TYPE="SECTION">
<HEAD>§ 13.27   Second appeal of qualification or denial.</HEAD>
<P>(a) <I>Form of appeal.</I> The decision after appeal of qualification or denial may be appealed in writing to the appropriate TTB officer within 45 days after the date of that decision. If the appropriate TTB officer concludes that the qualified approval or denial was correct, a copy of the application, marked “appeal denied,” must be returned to the applicant, with an explanation of the decision and the specific laws or regulations relied upon in qualifying or denying the application. If the appropriate TTB officer concludes that the certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle application should be approved without qualification, the applicant may resubmit TTB Form 5100.31 and the certificate will be issued. 
</P>
<P>(b) <I>Time limits for decision after second appeal.</I> Within 90 days of receipt of the second appeal, the appropriate TTB officer must notify the appellant whether the appeal has been granted or denied. If an applicant requests an informal conference as part of an appeal, as authorized in § 13.71, the 90-day period will begin 10 days after the date of the conference to allow for consideration of any written arguments, facts or evidence submitted after the conference. The appropriate TTB officer may extend this period of time once, by an additional 90 days, if he or she finds that unusual circumstances require additional time to consider the unique issues presented by an appeal. If the appropriate TTB officer extends the time period, he or she must notify the applicant by letter, briefly explaining the issues presented by the label. The decision made on the second appeal shall be the final decision of TTB. 
</P>
<P>(c) <I>Judicial review.</I> An appeal to the appropriate TTB officer is required prior to application to the Federal courts for review of any denial or qualification of an application.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999; T.D. ATF-406a, 64 FR 10949, Mar. 8, 1999, as amended by T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.11.4" TYPE="SUBPART">
<HEAD>Subpart D—Revocations of Specific Certificates</HEAD>


<DIV8 N="§ 13.41" NODE="27:1.0.1.1.11.4.49.1" TYPE="SECTION">
<HEAD>§ 13.41   Authority to revoke certificates.</HEAD>
<P>Certificates of label approval, certificates of exemption from label approval, and distinctive liquor bottle approvals, previously approved on TTB Form 5100.31, may be revoked by the appropriate TTB officer upon a finding that the label or bottle at issue is not in compliance with the applicable laws or regulations.


</P>
</DIV8>


<DIV8 N="§ 13.42" NODE="27:1.0.1.1.11.4.49.2" TYPE="SECTION">
<HEAD>§ 13.42   Notice of proposed revocation.</HEAD>
<P>Except as provided in § 13.51, when the appropriate TTB officer determines that a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval has been issued for a label or bottle that is not in compliance with the laws or regulations, he or she must issue to the certificate holder a notice of proposed revocation. The notice must set forth the basis for the proposed revocation and must provide the certificate holder with 45 days from the date of receipt of the notice to present written arguments or evidence why the revocation should not occur.


</P>
</DIV8>


<DIV8 N="§ 13.43" NODE="27:1.0.1.1.11.4.49.3" TYPE="SECTION">
<HEAD>§ 13.43   Decision after notice of proposed revocation.</HEAD>
<P>(a) <I>Decision.</I> After considering any written arguments or evidence presented by the certificate holder, the appropriate TTB officer must issue a decision. If the decision is to revoke the certificate, a letter must be sent to the holder explaining the revocation of the certificate, and the specific laws or regulations relied upon in determining that the label or bottle was not in conformance with law or regulations. If the decision is to withdraw the proposed revocation, a letter of explanation must be sent.
</P>
<P>(b) <I>Time limits for decision.</I> Within 90 days of receipt of written arguments or evidence from the certificate holder, the appropriate TTB officer shall notify the appellant of his or her decision. If a certificate holder requests an informal conference as part of an appeal, as authorized in § 13.71, the 90-day period will begin 10 days after the date of the conference to allow for consideration of any written arguments, facts or evidence submitted after the conference. The appropriate TTB officer may extend this period of time once by an additional 90 days if he or she finds that unusual circumstances require additional time to consider the issues presented by a proposed revocation. If the appropriate TTB officer extends the time period, he or she must notify the applicant by letter, along with a brief explanation of the issues under consideration.


</P>
</DIV8>


<DIV8 N="§ 13.44" NODE="27:1.0.1.1.11.4.49.4" TYPE="SECTION">
<HEAD>§ 13.44   Appeal of revocation.</HEAD>
<P>(a) <I>Filing of appeal.</I> A certificate holder who wishes to appeal the decision to revoke a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval, may file a written appeal setting forth why the holder believes that the decision was erroneous. The appeal must be filed with the appropriate TTB officer within 45 days after the date of receipt of the decision to revoke a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval. 
</P>
<P>(b) <I>Judicial review.</I> An appeal to the appropriate TTB officer is required prior to application to the Federal courts for review of any revocation of a certificate. 
</P>
<CITA TYPE="N">[T.D. ATF-449, 66 FR 19086, Apr.13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 13.45" NODE="27:1.0.1.1.11.4.49.5" TYPE="SECTION">
<HEAD>§ 13.45   Final decision after appeal.</HEAD>
<P>(a) <I>Issuance of decision.</I> After considering any written arguments or evidence presented by the certificate holder or the holder's representative, the appropriate TTB officer must issue a final decision. If the decision is to revoke the certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval, a letter must be issued explaining the basis for the revocation, and the specific laws or regulations relied upon in determining that the label or bottle was not in conformance with law or regulations. If the decision is to withdraw the proposed revocation, a letter explaining the decision must be sent.
</P>
<P>(b) <I>Time limits for decision.</I> Within 90 days of receipt of an appeal, the appropriate TTB officer must notify the holder whether the appeal has been granted or denied. If a certificate holder requests an informal conference as part of an appeal, as authorized in § 13.71, the 90-day period will begin 10 days after the date of the conference to allow for consideration of any written arguments, facts or evidence submitted after the conference. The appropriate TTB officer may extend this period of time once by an additional 90 days if he or she finds that unusual circumstances require additional time to consider the issues presented by an appeal. If the appropriate TTB officer extends the period, he or she must notify the holder by letter, briefly explaining the issues presented by the label. The final decision after appeal will be the final decision of TTB. 
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.11.5" TYPE="SUBPART">
<HEAD>Subpart E—Revocation by Operation of Law or Regulation</HEAD>


<DIV8 N="§ 13.51" NODE="27:1.0.1.1.11.5.49.1" TYPE="SECTION">
<HEAD>§ 13.51   Revocation by operation of law or regulation.</HEAD>
<P>TTB will not individually notify all holders of certificates of label approval, certificates of exemption from label approval, or distinctive liquor bottle approvals that their approvals have been revoked if the revocation occurs by operation of either TTB-administered law or regulation or applicable law or regulation of other agencies. If changes in labeling or other requirements are made as a result of amendments or revisions to the law or regulations, the certificate holder must voluntarily surrender all certificates that are no longer in compliance. The holder must submit applications for new certificates in compliance with the new requirements, unless TTB determines that new applications are not necessary. If a new application is unnecessary, it is the responsibility of the certificate holder to ensure that labels are in compliance with their requirements of the new regulations or law.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-483, 67 FR 62858, Oct. 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 13.52" NODE="27:1.0.1.1.11.5.49.2" TYPE="SECTION">
<HEAD>§ 13.52   Notice of revocation.</HEAD>
<P>If TTB determines that a certificate holder is still using a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval that is no longer in compliance due to amendments or revisions in the law or regulations, the appropriate TTB officer will notify the certificate holder in writing that the subject certificate has been revoked by operation of law or regulations, with a brief description of the grounds for such revocation.


</P>
</DIV8>


<DIV8 N="§ 13.53" NODE="27:1.0.1.1.11.5.49.3" TYPE="SECTION">
<HEAD>§ 13.53   Appeal of notice of revocation.</HEAD>
<P>Within 45 days after the date of receipt of a notice of revocation by operation of law or regulations, the certificate holder may file a written appeal with the appropriate TTB officer. The appeal should set forth the reasons why the certificate holder believes that the regulation or law at issue does not require the revocation of the certificate.


</P>
</DIV8>


<DIV8 N="§ 13.54" NODE="27:1.0.1.1.11.5.49.4" TYPE="SECTION">
<HEAD>§ 13.54   Decision after appeal.</HEAD>
<P>(a) <I>Issuance of decision.</I> After considering all written arguments and evidence submitted by the certificate holder, the appropriate TTB officer must issue a final decision regarding the revocation by operation of law or regulation of the certificate. If the decision is that the law or regulation at issue requires the revocation of the certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval, a letter must be issued explaining the basis for the revocation, and citing the specific laws or regulations which required the revocation of the certificate. If the decision is that the law or regulation at issue does not require the revocation of such certificate, a letter explaining the decision must be sent to the certificate holder. The decision after appeal will be the final decision of the TTB.
</P>
<P>(b) <I>Time limits for decision.</I> Within 90 days of receipt of an appeal, the appropriate TTB officer must notify the holder whether the appeal has been granted or denied. If a certificate holder requests an informal conference as part of an appeal, as authorized in § 13.71, the 90-day period will begin 10 days after the date of the conference to allow for consideration of any written arguments, facts or evidence submitted after the conference. The appropriate TTB officer may extend this period of time once by an additional 90 days if he or she finds that unusual circumstances require additional time to consider the issues presented by an appeal. If the appropriate TTB officer extends the period, he or she must notify the holder by letter, briefly explaining the issues presented by the label. The decision of the appropriate TTB officer shall be the final decision of the TTB.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.11.6" TYPE="SUBPART">
<HEAD>Subpart F—Miscellaneous</HEAD>


<DIV8 N="§ 13.61" NODE="27:1.0.1.1.11.6.49.1" TYPE="SECTION">
<HEAD>§ 13.61   Publicity of information.</HEAD>
<P>(a) <I>Pending and denied applications</I>—(1) <I>General.</I> Pending and denied applications for certificates of label approval, certificates of exemption from label approval, or distinctive liquor bottle approvals are treated as proprietary information, unless the applicant or certificate holder provides written authorization to release such information.
</P>
<P>(2) <I>Labels that make organic claims.</I> TTB will disclose applications for approval of labels that make organic claims to the appropriate office of the United States Department of Agriculture to assure such labels comply with National Organic Program rules. 
</P>
<P>(b) <I>Approved applications.</I> The appropriate TTB officer shall cause to be maintained in the TTB public reading room for public inspection, a copy of each approved application for certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval. These documents may be viewed during business hours at 1310 G Street NW., Washington, DC, or by viewing the Public COLA Registry on the TTB Web site at (<I>https://www.ttb.gov</I>).
</P>
<P>(c) <I>Revoked certificates.</I> If an approved certificate is subsequently revoked, the record of the approved application will remain on file for public inspection, but the index will be annotated to show it was revoked.
</P>
<P>(d) <I>Further disclosure of information on denied or revoked certificates.</I> If an applicant whose application is pending or has been denied, or a holder of a revoked certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval, issues public statements concerning TTB action in connection with such application or certificate, then TTB may issue a statement to clarify its position or correct any misstatements of fact, including a disclosure of information contained on the application or certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-483, 67 FR 62859, Oct. 8, 2002; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 13.62" NODE="27:1.0.1.1.11.6.49.2" TYPE="SECTION">
<HEAD>§ 13.62   Third-party comment on certificates.</HEAD>
<P>When a third party (such as foreign government, another Federal agency, a State agency, an industry association, a competitor of a certificate holder, a consumer or consumer group, or any other interested person) wishes to comment on an approved certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval, such comments should be submitted in writing to the appropriate TTB officer who will review the subject of the comment. If the comment raises an issue that is outside the scope of TTB's statutory or regulatory authority, or the appropriate TTB officer determines that the certificate is in compliance with applicable law and regulations, the commenter will be informed that no further action will be taken. If the appropriate TTB officer determines that the commenter has raised a valid issue that TTB has authority to address, he or she will initiate appropriate action. The appropriate TTB officer may, in his or her discretion, notify the commenter as to the action being taken by TTB with respect to the certificate. 
</P>
<CITA TYPE="N">[T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 13.71" NODE="27:1.0.1.1.11.6.49.3" TYPE="SECTION">
<HEAD>§ 13.71   Informal conferences.</HEAD>
<P>(a) <I>General.</I> As part of a timely filed written appeal of a notice of denial, a notice of proposed revocation, or a decision to revoke a certificate, an applicant or certificate holder may file a written request for an informal conference with the appropriate TTB officer deciding the appeal. 
</P>
<P>(b) <I>Informal conference procedures.</I> The appropriate TTB officer and the applicant or certificate holder will agree upon a date for an informal conference. The informal conference is for purposes of discussion only, and no transcript shall be made. If the applicant or certificate holder wishes to rely upon arguments, facts, or evidence presented at the informal conference, he or she has 10 days after the date of the conference to incorporate such arguments, facts, or evidence in a written submission to the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 13.72" NODE="27:1.0.1.1.11.6.49.4" TYPE="SECTION">
<HEAD>§ 13.72   Effective dates of revocations.</HEAD>
<P>(a) <I>Effective dates</I>—(1) <I>Revocation of specific certificates.</I> A written decision to revoke a certificate becomes effective 60 days after the date of the decision.
</P>
<P>(2) <I>Revocation by operation of law or regulation.</I> If a certificate is revoked by operation of law or regulation, the revocation becomes effective on the effective date of the change in law or regulation with which the certificate does not comply, or if a separate label compliance date is given, on that date.
</P>
<P>(b) <I>Use of certificate during period of appeal.</I> If a certificate holder files a timely appeal after receipt of a decision to revoke a certificate pursuant to § 13.44, the holder may continue to use the certificate at issue until the effective date of a final decision issued by the appropriate TTB officer. However, the effective date of a notice of revocation by operation of law or regulations, issued pursuant to § 13.52, is not stayed pending the appeal.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 13.73" NODE="27:1.0.1.1.11.6.49.5" TYPE="SECTION">
<HEAD>§ 13.73   Effect of revocation.</HEAD>
<P>On and after the effective date of a revocation of a certificate of label approval, certificate or exemption from label approval, or distinctive liquor bottle approval, the label or distinctive liquor bottle in question may not be used to bottle or pack distilled spirits, wine or malt beverages, to remove such products from the place where they were bottled or packed, or to remove such products from customs custody for consumption.


</P>
</DIV8>


<DIV8 N="§ 13.74" NODE="27:1.0.1.1.11.6.49.6" TYPE="SECTION">
<HEAD>§ 13.74   Surrender of certificates.</HEAD>
<P>On the effective date of a final decision that has been issued to revoke a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval, the certificate holder must surrender the original of the certificate to TTB for manual cancellation. Regardless of whether the original certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval has been manually canceled or not, the certificate is null and void after the effective date of the revocation. It is a violation of this section for any certificate holder to present a certificate of label approval, certificate of exemption from label approval, or distinctive liquor bottle approval to an official of the United States Government as a valid certificate after the effective date of the revocation of the certificate if the certificate holder has been previously notified that such certificate has been revoked by TTB.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 13.75" NODE="27:1.0.1.1.11.6.49.7" TYPE="SECTION">
<HEAD>§ 13.75   Evidence of receipt by TTB.</HEAD>
<P>If there is a time limit on TTB action that runs from TTB's receipt of a document, the date of receipt may be established by a certified mail receipt or equivalent written acknowledgment secured by a commercial delivery service or by a written acknowledgment of personal delivery. In the absence of proof of receipt, the date the document is logged in by TTB will be considered the date of receipt.


</P>
</DIV8>


<DIV8 N="§ 13.76" NODE="27:1.0.1.1.11.6.49.8" TYPE="SECTION">
<HEAD>§ 13.76   Service on applicant or certificate holder.</HEAD>
<P>(a) <I>Method of service.</I> TTB must serve notices of denial on an applicant by first class mail, or by personal delivery. TTB must serve notices of proposed revocation and notices of revocation on a certificate holder by certified mail, return receipt requested, by a commercial delivery service that will provide an equivalent written acknowledgment from the recipient, or by personal delivery.
</P>
<P>(b) <I>Date of receipt.</I> If there is a time limit on a certificate holder's action that runs from the holder's receipt of a document, the date of receipt may be established by a certified mail receipt, an equivalent written acknowledgment secured by a commercial delivery service, or by a written acknowledgment of personal delivery.
</P>
<P>(c) <I>Person to be served.</I> When service is by mail or other commercial delivery service, a copy of the document must be sent to the applicant or certificate holder at the address stated in the application or at the last known address. If authorized by the applicant or certificate holder, the copy of the document may be mailed to a designated representative. If service is by personal delivery, a copy of the document must be delivered to the certificate holder or to a designated representative. In the case of a corporation, partnership, or association, personal delivery may be made to an officer, manager, or general agent thereof, or to the attorney of record.


</P>
</DIV8>


<DIV8 N="§ 13.81" NODE="27:1.0.1.1.11.6.49.9" TYPE="SECTION">
<HEAD>§ 13.81   Representation before TTB.</HEAD>
<P>An applicant or certificate holder may be represented by an attorney, certified public accountant, or other person recognized to practice before TTB as provided in 31 CFR part 8 (Practice Before the Bureau of Alcohol, Tobacco and Firearms). The applicable requirements of 26 CFR 601.521 through 601.527 (conference and practice requirements for alcohol, tobacco, and firearms activities) shall apply.


</P>
</DIV8>


<DIV8 N="§ 13.91" NODE="27:1.0.1.1.11.6.49.10" TYPE="SECTION">
<HEAD>§ 13.91   Computation of time.</HEAD>
<P>In computing any period of time prescribed or allowed by this part, the day of the act, event or default after which the designated period of time is to run, is not counted. The last day of the period to be computed is counted, unless it is a Saturday, Sunday, or legal holiday, in which case the period runs until the next day that is not a Saturday, Sunday, or legal holiday. Papers or documents that are required or permitted to be filed under this part must be received at the appropriate office within the filing time limits, if any.


</P>
</DIV8>


<DIV8 N="§ 13.92" NODE="27:1.0.1.1.11.6.49.11" TYPE="SECTION">
<HEAD>§ 13.92   Extensions.</HEAD>
<P>An applicant or certificate holder may apply to the appropriate TTB officer deciding the appeal for an extension of any time limit prescribed in this part. The time limit may be extended if TTB agrees the request is reasonable.
</P>
<CITA TYPE="N">[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.11.7" TYPE="SUBPART">
<HEAD>Subpart G—Appeals Concerning Other Agencies' Rules</HEAD>


<DIV8 N="§ 13.101" NODE="27:1.0.1.1.11.7.49.1" TYPE="SECTION">
<HEAD>§ 13.101   Appeals concerning use of the term “organic.”</HEAD>
<P>To appeal a determination that an organic claim on a label does not comply with the National Organic Program rules in 7 CFR part 205, contact the Program Manager, National Organic Program (NOP), Agricultural Marketing Service, United States Department of Agriculture. See the NOP appeal process in 7 CFR 205.680.
</P>
<CITA TYPE="N">[T.D. ATF-483, 67 FR 62859, Oct. 8, 2002]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="16" NODE="27:1.0.1.1.12" TYPE="PART">
<HEAD>PART 16—ALCOHOLIC BEVERAGE HEALTH WARNING STATEMENT
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>27 U.S.C. 205, 215, 218; 28 U.S.C. 2461 note.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-294, 55 FR 5421, Feb. 14, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:1.0.1.1.12.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 16.1" NODE="27:1.0.1.1.12.1.49.1" TYPE="SECTION">
<HEAD>§ 16.1   General.</HEAD>
<P>The regulations in this part relate to a health warning statement on labels of containers of alcoholic beverages.


</P>
</DIV8>


<DIV8 N="§ 16.2" NODE="27:1.0.1.1.12.1.49.2" TYPE="SECTION">
<HEAD>§ 16.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States, the District of Columbia, and the territories and possessions of the United States.


</P>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.12.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 16.10" NODE="27:1.0.1.1.12.2.49.1" TYPE="SECTION">
<HEAD>§ 16.10   Meaning of terms.</HEAD>
<P>As used in this part, unless the context otherwise requires, terms shall have the meaning ascribed in this section.
</P>
<P><I>Act.</I> The Alcoholic Beverage Labeling Act of 1988.
</P>
<P><I>Alcoholic beverage.</I> Includes any beverage in liquid form which contains not less than one-half of one percent (.5%) of alcohol by volume and is intended for human consumption.
</P>
<P><I>Bottle.</I> To fill a container with an alcoholic beverage and to seal such container.
</P>
<P><I>Bottler.</I> A person who bottles an alcoholic beverage.
</P>
<P><I>Brand label.</I> The label carrying, in the usual distinctive design, the brand name of the alcoholic beverage.
</P>
<P><I>Container.</I> The innermost sealed container, irrespective of the material from which made, in which an alcoholic beverage is placed by the bottler and in which such beverage is offered for sale to members of the general public.
</P>
<P><I>Health.</I> Includes, but is not limited to, the prevention of accidents.
</P>
<P><I>Person.</I> Any individual, partnership, joint-stock company, business trust, association, corporation, or any other business or legal entity, including a receiver, trustee, or liquidating agent, and also includes any State, any State agency, or any officer or employee thereof.
</P>
<P><I>Sale and distribution.</I> Includes sampling or any other distribution not for sale.
</P>
<P><I>State.</I> Includes any political subdivision of any State, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, Wake Island, the Midway Islands, Kingman Reef, or Johnston Island.
</P>
<P><I>State law.</I> Includes State statutes, regulations and principles and rules having the force of law. 
</P>
<P><I>TTB.</I> The Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>United States.</I> The several States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, Wake Island, the Midway Islands, Kingman Reef, and Johnston Island.
</P>
<P><I>Use of other terms.</I> Any other term defined in the Alcoholic Beverage Labeling Act and used in this part shall have the same meaning as assigned to it by the Act.
</P>
<CITA TYPE="N">[T.D. ATF-294, 55 FR 5421, Feb. 14, 1990, as amended by T.D. ATF-425, 65 FR 11892, Mar. 7, 2000; T.D. TTB-44, 71 FR 16925, Apr. 4, 2006]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.12.3" TYPE="SUBPART">
<HEAD>Subpart C—Health Warning Statement Requirements for Alcoholic Beverages</HEAD>


<DIV8 N="§ 16.20" NODE="27:1.0.1.1.12.3.49.1" TYPE="SECTION">
<HEAD>§ 16.20   General.</HEAD>
<P>(a) <I>Domestic products.</I> On and after November 18, 1989, no person shall bottle for sale or distribution in the United States any alcoholic beverage unless the container of such beverage bears the health warning statement required by § 16.21. It is the responsibility of the bottler to provide, upon request, sufficient evidence to establish that the alcoholic beverage was bottled prior to November 18, 1989.
</P>
<P>(b) <I>Imported products.</I> On and after November 18, 1989, no person shall import for sale or distribution in the United States any alcoholic beverage unless the container of such beverage bears the health warning statement required by § 16.21. This requirement does not apply to alcoholic beverages that were bottled in the foreign country prior to November 18, 1989. It is the responsibility of the importer to provide, upon request, sufficient evidence to establish that the alcoholic beverage was bottled prior to such date.


</P>
</DIV8>


<DIV8 N="§ 16.21" NODE="27:1.0.1.1.12.3.49.2" TYPE="SECTION">
<HEAD>§ 16.21   Mandatory label information.</HEAD>
<P>There shall be stated on the brand label or separate front label, or on a back or side label, separate and apart from all other information, the following statement:
</P>
<EXTRACT>
<P>GOVERNMENT WARNING: (1) According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth defects.
</P>
<P>(2) Consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems.</P></EXTRACT>
<SECAUTH TYPE="N">(Authority: Sec. 8001, Pub. L. 100-690, 102 Stat. 4181, 27 U.S.C. 215)


</SECAUTH>
</DIV8>


<DIV8 N="§ 16.22" NODE="27:1.0.1.1.12.3.49.3" TYPE="SECTION">
<HEAD>§ 16.22   General requirements.</HEAD>
<P>(a) <I>Legibility.</I> (1) All labels shall be so designed that the statement required by § 16.21 is readily legible under ordinary conditions, and such statement shall be on a contrasting background.
</P>
<P>(2) The first two words of the statement required by § 16.21, i.e., “GOVERNMENT WARNING,” shall appear in capital letters and in bold type. The remainder of the warning statement may not appear in bold type.
</P>
<P>(3) The letters and/or words of the statement required by § 16.21 shall not be compressed in such a manner that the warning statement is not readily legible.
</P>
<P>(4) The warning statement required by § 16.21 shall appear in a maximum number of characters (<I>i.e.</I>, letters, numbers, marks) per inch, as follows:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Minimum required type size for warning statement
</TH><TH class="gpotbl_colhed" scope="col">Maximum number of characters per inch
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1 millimeter</TD><TD align="right" class="gpotbl_cell">40
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">2 millimeters</TD><TD align="right" class="gpotbl_cell">25
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">3 millimeters</TD><TD align="right" class="gpotbl_cell">12</TD></TR></TABLE></DIV></DIV>
<P>(b) <I>Size of type.</I> (1) Containers of 237 milliliters (8 fl. oz.) or less. The mandatory statement required by § 16.21 shall be in script, type, or printing not smaller than 1 millimeter.
</P>
<P>(2) Containers of more than 237 milliliters (8 fl. oz.) up to 3 liters (101 fl. oz.). The mandatory statement required by § 16.21 shall be in script, type, or printing not smaller than 2 millimeters.
</P>
<P>(3) Containers of more than 3 liters (101 fl. oz.). The mandatory statement required by § 16.21 shall be in script, type, or printing not smaller than 3 millimeters.
</P>
<P>(c) <I>Labels firmly affixed.</I> Labels bearing the statement required by § 16.21 which are not an integral part of the container shall be affixed to containers of alcoholic beverages in such manner that they cannot be removed without thorough application of water or other solvents.
</P>
<CITA TYPE="N">[T.D. ATF-294, 55 FR 5421, Feb. 14, 1990, as amended by T.D. 372, 61 FR 20723, May 8, 1996; T.D. TTB-91, 76 FR 5477, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.12.4" TYPE="SUBPART">
<HEAD>Subpart D—General Provisions</HEAD>


<DIV8 N="§ 16.30" NODE="27:1.0.1.1.12.4.49.1" TYPE="SECTION">
<HEAD>§ 16.30   Certificates of label approval.</HEAD>
<P>Certificates of label/bottle approval or certificates of exemption from label approval on TTB Form 5100.31, issued pursuant to parts 4, 5, and 7 of this chapter for imported and domestically bottled wine, distilled spirits, and malt beverages, shall not be approved with respect to such beverage bottled on and after November 18, 1989, unless the label for the container of such beverage bears the health warning statement required.
</P>
<CITA TYPE="N">[T.D. ATF-294, 55 FR 5421, Feb. 14, 1990, as amended by T.D. ATF-425, 65 FR 11892, Mar. 7, 2000]


</CITA>
</DIV8>


<DIV8 N="§ 16.31" NODE="27:1.0.1.1.12.4.49.2" TYPE="SECTION">
<HEAD>§ 16.31   Exports.</HEAD>
<P>The regulations in this part shall not apply with respect to alcoholic beverages that are produced, imported, bottled, or labeled for export from the United States, or for delivery to a vessel or aircraft, as supplies, for consumption beyond the jurisdiction of the internal revenue laws of the United States: <I>Provided,</I> That this exemption shall not apply with respect to alcoholic beverages that are produced, imported, bottled, or labeled for sale, distribution, or shipment to members or units of the Armed Forces of the United States, including those located outside the United States.


</P>
</DIV8>


<DIV8 N="§ 16.32" NODE="27:1.0.1.1.12.4.49.3" TYPE="SECTION">
<HEAD>§ 16.32   Preemption.</HEAD>
<P>No statement relating to alcoholic beverages and health, other than the statement required by § 16.21, shall be required under State law to be placed on any container of an alcoholic beverage, or on any box, carton, or other package, irrespective of the material from which made, that contains such a container.


</P>
</DIV8>


<DIV8 N="§ 16.33" NODE="27:1.0.1.1.12.4.49.4" TYPE="SECTION">
<HEAD>§ 16.33   Civil penalties; adjustments.</HEAD>
<P>(a) <I>General.</I> The Act provides that any person who violates the provisions of this part shall be subject to a civil penalty of not more than $10,000. However, pursuant to the provisions of the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, this civil penalty is subject to periodic cost-of-living adjustment. Accordingly, any person who violates the provisions of this part shall be subject to a civil penalty of not more than the amount listed at <I>https://www.ttb.gov/laws-regulations-and-public-guidance/labeling-act-penalty</I>  Each day shall constitute a separate offense.
</P>
<P>(b) <I>Notice of cost-of-living adjustment.</I> TTB will provide notice in the <E T="04">Federal Register</E> and at the Web site referenced in paragraph (a) of this section of cost-of-living adjustments to the civil penalty for violations of this part.
</P>
<P>(c) <I>Applicability of increases in penalty.</I> Any increase in the penalty described in paragraph (a) of this section shall apply only to penalties, including those whose associated violation predated such an increase, which are assessed after the date the increase takes effect. An increase will take effect on the date a notice is published in the <E T="04">Federal Register</E> announcing the increase. The effective date of the increase also will be listed at the Web site in paragraph (a) of this section.
</P>
<CITA TYPE="N">[T.D.TTB-138, 81 FR 43065, July 1, 2016, as amended by T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="17" NODE="27:1.0.1.1.13" TYPE="PART">
<HEAD>PART 17—DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN MANUFACTURING NONBEVERAGE PRODUCTS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5010, 5111-5114, 5123, 5206, 5273, 6065, 6091, 6109, 7213, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-379, 61 FR 31412, June 20, 1996, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 17 appear by T.D. ATF-436, 66 FR 5470, 5471, Jan. 19, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.13.1" TYPE="SUBPART">
<HEAD>Subpart A—General Provisions</HEAD>


<DIV8 N="§ 17.1" NODE="27:1.0.1.1.13.1.52.1" TYPE="SECTION">
<HEAD>§ 17.1   Scope of regulations.</HEAD>
<P>The regulations in this part apply to the manufacture of medicines, medicinal preparations, food products, flavors, flavoring extracts, and perfume that are unfit for beverage use and are made with taxpaid distilled spirits. The regulations cover the following topics: obtaining drawback of internal revenue tax on distilled spirits used in the manufacture of nonbeverage products; and bonds, claims, formulas and samples, losses, and records to be kept pertaining to the manufacture of nonbeverage products.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37401, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 17.2" NODE="27:1.0.1.1.13.1.52.2" TYPE="SECTION">
<HEAD>§ 17.2   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms, including bonds and records, required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 66 FR 5470, Jan. 19, 2001; T.D. TTB-44, 71 FR 16925, Apr. 4, 2006; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 17.3" NODE="27:1.0.1.1.13.1.52.3" TYPE="SECTION">
<HEAD>§ 17.3   Alternate methods or procedures.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may approve the use of an alternate method or procedure in lieu of a method or procedure prescribed in this part if he or she finds that—
</P>
<P>(1) Good cause has been shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the method or procedure prescribed by this part, and affords equivalent security to the revenue; and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law, and will not result in any increase in cost to the Government or hinder the effective administration of this part.
</P>
<P>(b) <I>Application.</I> A letter of application to employ an alternate method or procedure must be submitted to the appropriate TTB officer. The application shall specifically describe the proposed alternate method or procedure, and shall set forth the reasons therefor.
</P>
<P>(c) <I>Approval.</I> No alternate method or procedure shall be employed until the application has been approved by the appropriate TTB officer. The appropriate TTB officer shall not approve any alternate method relating to the giving of any bond or to the assessment, payment, or collection of any tax. The manufacturer shall, during the period of authorization, comply with the terms of the approved application and with any conditions thereto stated by the appropriate TTB officer in the approval. Authorization for any alternate method or procedure may be withdrawn by written notice from the Administrator whenever in his or her judgment the revenue is jeopardized, the effective administration of this part is hindered, or good cause for the authorization no longer exists. The manufacturer shall retain, in the records required by § 17.170, any authorization given by the appropriate TTB officer under this section.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 66 FR 5470, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 17.4" NODE="27:1.0.1.1.13.1.52.4" TYPE="SECTION">
<HEAD>§ 17.4   OMB control numbers assigned under the Paperwork Reduction Act.</HEAD>
<P>(a) <I>Purpose.</I> This section collects and displays the control numbers assigned to the information collection requirements of this part by the Office of Management and Budget under the Paperwork Reduction Act of 1995.
</P>
<P>(b) <I>OMB control number 1513-0013.</I> OMB control number 1513-0013 is assigned to the following section in this part: § 17.106.
</P>
<P>(c) <I>OMB control number 1513-0014.</I> OMB control number 1513-0014 is assigned to the following sections in this part: §§ 17.6 and 17.105.
</P>
<P>(d) <I>OMB control number 1513-0021.</I> OMB control number 1513-0021 is assigned to the following sections in this part: §§ 17.121, 17.126, 17.127, 17.132, and 17.136.
</P>
<P>(e) <I>OMB control number 1513-0030.</I> OMB control number 1513-0030 is assigned to the following sections in this part: §§ 17.142, 17.145, and 17.146.
</P>
<P>(f) <I>OMB control number 1513-0036.</I> OMB control number 1513-0036 is assigned to the following section in this part: § 17.6.
</P>
<P>(g) <I>OMB control number 1513-0072.</I> OMB control number 1513-0072 is assigned to the following sections in this part: §§ 17.3, 17.111, 17.112, 17.122, 17.123, 17.124, 17.125, 17.143, 17.168(a), 17.183, and 17.187.
</P>
<P>(h) <I>OMB control number 1513-0073.</I> OMB control number 1513-0073 is assigned to the following sections in this part: §§ 17.161, 17.162, 17.163, 17.164, 17.165, 17.166, 17.167, 17.168(b), 17.169, 17.170, 17.182, and 17.186.
</P>
<P>(i) <I>OMB control number 1513-0088.</I> OMB control number 1513-0088 is assigned to the following section in this part: § 17.23.
</P>
<P>(j) <I>OMB control number 1513-0098.</I> OMB control number 1513-0098 is assigned to the following sections in this part: §§ 17.147 and 17.182.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37401, July 28, 2009; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 17.5" NODE="27:1.0.1.1.13.1.52.5" TYPE="SECTION">
<HEAD>§ 17.5   Products manufactured in Puerto Rico or the Virgin Islands.</HEAD>
<P>For additional provisions regarding drawback on distilled spirits contained in medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume which are unfit for beverage purposes and which are brought into the United States from Puerto Rico or the U.S. Virgin Islands, see part 26, subparts I and Ob, of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-436, 66 FR 5470, 5471, Jan. 19, 2001, as amended by T.D. ATF-459, 66 FR 38549, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 17.6" NODE="27:1.0.1.1.13.1.52.6" TYPE="SECTION">
<HEAD>§ 17.6   Signature authority.</HEAD>
<P>No claim, bond, tax return, or other required document executed by a person as an agent or representative is acceptable unless a power of attorney or other proper notification of signature authority has been filed with the TTB office where the required document must be filed. The appropriate TTB officer with whom the claim or other required document is filed may, when he or she considers it necessary, require additional evidence of the authority of the agent or representative to execute the document. Except as otherwise provided by this part, powers of attorney shall be filed on TTB Form 1534 (5000.8), Power of Attorney. Notification of signature authority of partners, officers, or employees may be given by filing a copy of corporate or partnership documents, minutes of a meeting of the board of directors, etc. For corporate officers or employees, TTB Form 5100.1, Signing Authority for Corporate Officials, may be used. For additional provisions regarding powers of attorney, see § 17.105 and 26 CFR part 601, subpart E.


</P>
</DIV8>


<DIV8 N="§ 17.7" NODE="27:1.0.1.1.13.1.52.7" TYPE="SECTION">
<HEAD>§ 17.7   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.17, Delegation of the Administrator's Authorities in 27 CFR Part 17, Drawback on Taxpaid Distilled Spirits Used in Manufacturing Nonbeverage Products. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-436, 66 FR 5470, Jan. 19, 2001, as amended by T.D. TTB-44, 71 FR 16926, Apr. 4, 2006; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.13.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 17.11" NODE="27:1.0.1.1.13.2.52.1" TYPE="SECTION">
<HEAD>§ 17.11   Meaning of terms.</HEAD>
<P>As used in this part, unless the context otherwise requires, terms have the meanings given in this section. Words in the plural form include the singular, and vice versa, and words indicating the masculine gender include the feminine. The terms “includes” and “including” do not exclude things not listed which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.17, Delegation of the Administrator's Authorities in 27 CFR Part 17, Drawback on Taxpaid Distilled Spirits Used in Manufacturing Nonbeverage Products.
</P>
<P><I>Approved,</I> or <I>approved for drawback.</I> When used with reference to products and their formulas, this term means that drawback may be claimed on eligible spirits used in such products in accordance with this part.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Distilled spirits,</I> or <I>spirits.</I> That substance known as ethyl alcohol, ethanol, spirits, or spirits of wine in any form (including all dilutions and mixtures thereof, from whatever source or by whatever process produced).
</P>
<P><I>Effective tax rate.</I> The net tax rate, after reduction for any credit allowable under 26 U.S.C. 5010 for wine and flavor content, at which the tax imposed on distilled spirits by 26 U.S.C. 5001 or 7652 is paid or determined. For distilled spirits with no wine or flavors content, the effective tax rate equals the rate of tax imposed by 26 U.S.C. 5001 or 7652.
</P>
<P><I>Eligible,</I> or <I>eligible for drawback.</I> When used with reference to spirits, this term designates taxpaid spirits which have not yet been used in nonbeverage products.
</P>
<P><I>Filed.</I> Subject to the provisions of §§ 70.305 and 70.306 of this chapter, a claim for drawback or other document or payment submitted under this part is generally considered to have been “filed” when it is received by the office of the proper Government official; but if an item is mailed timely with postage prepaid, then the United States postmark date is treated as the date of filing.
</P>
<P><I>Food products.</I> Includes food adjuncts, such as preservatives, emulsifying agents, and food colorings, which are manufactured and used, or sold for use, in food.
</P>
<P><I>Intermediate products.</I> Products to which all three of the following conditions apply: they are made with taxpaid distilled spirits, they have been disapproved for drawback, and they are made by the manufacturer exclusively for its own use in the manufacture of nonbeverage products approved for drawback. However, ingredients treated as unfinished nonbeverage products under § 17.127 are not considered to be intermediate products.
</P>
<P><I>Medicines.</I> Includes laboratory stains and reagents for use in medical diagnostic procedures.
</P>
<P><I>Month.</I> A calendar month.
</P>
<P><I>Nonbeverage products.</I> Medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which are manufactured using taxpaid distilled spirits, and which are unfit for use for beverage purposes.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company, or corporation.
</P>
<P><I>Proof gallon.</I> A gallon of liquid at 60 degrees Fahrenheit, which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit (referred to water at 60 degrees Fahrenheit as unity), or the alcoholic equivalent thereof.
</P>
<P><I>Quarter.</I> A 3-month period beginning January 1, April 1, July 1, or October 1.
</P>
<P><I>Recovered spirits.</I> Taxpaid spirits that have been salvaged, after use in the manufacture of a product or ingredient, so that the spirits are reusable.
</P>
<P><I>Subject to drawback.</I> This term is used with reference to spirits. Eligible spirits become “subject to drawback” when they are used in the manufacture of a nonbeverage product. When spirits have become “subject to drawback,” they may be included in the manufacturer's claim for drawback of tax covering the period in which they were first used.
</P>
<P><I>Tax year.</I> The period from July l of one calendar year through June 30 of the following year.
</P>
<P><I>Taxpaid.</I> When used with respect to distilled spirits, this term shall mean that all taxes imposed on such spirits by 26 U.S.C. 5001 or 7652 have been determined or paid as provided by law.
</P>
<P><I>This chapter.</I> Chapter I of title 27 of the Code of Federal Regulations.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 66 FR 5470, Jan. 19, 2001; T.D. TTB-44, 71 FR 16926, Apr. 4, 2006; T.D. TTB-79, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.13.3" TYPE="SUBPART">
<HEAD>Subpart C—Registration</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-79, 74 FR 37402, July 28, 2009, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 17.21" NODE="27:1.0.1.1.13.3.52.1" TYPE="SECTION">
<HEAD>§ 17.21   Registration.</HEAD>
<P>Every person claiming drawback under this part must register annually as a nonbeverage domestic drawback claimant. Registration will be accomplished when the claimant submits the first drawback claim for each year along with the supporting data required under subpart G of this part. No registration is required for any year in which the claimant does not file a claim for drawback.


</P>
</DIV8>


<DIV8 N="§ 17.22" NODE="27:1.0.1.1.13.3.52.2" TYPE="SECTION">
<HEAD>§ 17.22   Employer identification number.</HEAD>
<P>Every person who claims drawback under this part must enter on each claim for drawback filed on TTB Form 5620.8, Claim—Alcohol, Tobacco, and Firearms Taxes, the employer identification number (EIN) assigned by the Internal Revenue Service.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6109, 6723)


</SECAUTH>
</DIV8>


<DIV8 N="§ 17.23" NODE="27:1.0.1.1.13.3.52.3" TYPE="SECTION">
<HEAD>§ 17.23   Application for employer identification number.</HEAD>
<P>(a) <I>Use Form SS-4.</I> A claimant must obtain an employer identification number (EIN) by filing an application with the Internal Revenue Service (IRS) on IRS Form SS-4. Form SS-4 is available from the local IRS Service Center, from the IRS District Director, the IRS Web site at <I>https://www.irs.gov</I> or from the TTB National Revenue Center. The claimant must file this form with IRS in accordance with the instructions on the form.
</P>
<P>(b) <I>One EIN only.</I> Each claimant must obtain and use only one EIN, regardless of the number of places of business for which a claim is filed under this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6109)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37402, July 28, 2009, as amended by T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.13.4" TYPE="SUBPART">
<HEAD>Subpart D [Reserved]</HEAD>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.13.5" TYPE="SUBPART">
<HEAD>Subpart E—Bonds and Consents of Sureties</HEAD>


<DIV8 N="§ 17.101" NODE="27:1.0.1.1.13.5.52.1" TYPE="SECTION">
<HEAD>§ 17.101   Bonds in general.</HEAD>
<P>(a) <I>Requirement.</I> A bond must be filed by each person claiming drawback on a monthly basis. Persons who claim drawback on a quarterly basis are not required to file bonds. The bond requirement of this part may be satisfied either by a bond obtained from an authorized surety company or by deposit of collateral security.
</P>
<P>(b) <I>Bond form.</I> The bond must be prepared and executed on TTB Form 5154.3, Bond for Drawback Under 26 U.S.C. 5111, in accordance with the provisions of this part and the instructions printed on the form.
</P>
<P>(c) <I>Bonds executed before July 1, 2008.</I> On and after July 1, 2008, a reference to 26 U.S.C. 5131-5134 in a bond executed on TTB Form 5154.3, Bond for Drawback Under 26 U.S.C. 5131, shall be understood to refer to the sections redesignated as 26 U.S.C. 5111-5114 by section 11125 of Public Law 109-59.
</P>
<P>(d) <I>Approval.</I> The appropriate TTB officer is authorized to approve all bonds and consents of surety required by this part.
</P>
<CITA TYPE="N">[T.D. TTB, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 17.102" NODE="27:1.0.1.1.13.5.52.2" TYPE="SECTION">
<HEAD>§ 17.102   Amount of bond.</HEAD>
<P>The bond shall be a continuing one, in an amount sufficient to cover the total drawback to be claimed on spirits used during any quarter. However, the amount of any bond shall not exceed $200,000 nor be less than $1,000.


</P>
</DIV8>


<DIV8 N="§ 17.103" NODE="27:1.0.1.1.13.5.52.3" TYPE="SECTION">
<HEAD>§ 17.103   Bonds obtained from surety companies.</HEAD>
<P>(a) The bond may be obtained from any surety company authorized by the Secretary of the Treasury to be a surety on Federal bonds. Surety companies so authorized are listed in the current revision of Department of the Treasury Circular 570 (Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies), and subject to such amendatory circulars as may be issued from time to time. Bonds obtained from surety companies are also governed by the provisions of 31 U.S.C. 9304, and 31 CFR part 223.
</P>
<P>(b) A bond executed by two or more surety companies shall be the joint and several liability of the principal and the sureties; however, each surety company may limit its liability, in terms upon the face of the bond, to a definite, specified amount. This amount shall not exceed the limitations prescribed for each surety company by the Secretary, as stated in Department of the Treasury Circular 570. If the sureties limit their liability in this way, the total of the limited liabilities shall equal the required amount of the bond.
</P>
<P>(c) Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).


</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 17.104" NODE="27:1.0.1.1.13.5.52.4" TYPE="SECTION">
<HEAD>§ 17.104   Deposit of collateral.</HEAD>
<P>Except as otherwise provided by law or regulations, bonds or notes of the United States, or other obligations which are unconditionally guaranteed as to both interest and principal by the United States, may be pledged and deposited by principals as collateral security in lieu of bonds obtained from surety companies. Deposit of collateral security is governed by the provisions of 31 U.S.C. 9303, and 31 CFR part 225.
</P>
<SECAUTH TYPE="N">(Sec. 1, Pub. L. 97-258, 96 Stat. 1046 (31 U.S.C. 9301, 9303))


</SECAUTH>
</DIV8>


<DIV8 N="§ 17.105" NODE="27:1.0.1.1.13.5.52.5" TYPE="SECTION">
<HEAD>§ 17.105   Filing of powers of attorney.</HEAD>
<P>(a) <I>Surety companies.</I> The surety company shall prepare and submit with each bond, and with each consent to changes in the terms of a bond, a power of attorney in accordance with § 17.6, authorizing the agent or officer who executed the bond or consent to act in this capacity on behalf of the surety. The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If other than a manually signed original is submitted, it shall be accompanied by certification of its validity.
</P>
<P>(b) <I>Principal.</I> The principal shall execute and file a power of attorney, in accordance with § 17.6, for every person authorized to execute bonds on behalf of the principal.
</P>
<SECAUTH TYPE="N">(Sec. 1, Pub. L. 97-258, 96 Stat. 1047 (31 U.S.C. 9304, 9306))




</SECAUTH>
</DIV8>


<DIV8 N="§ 17.106" NODE="27:1.0.1.1.13.5.52.6" TYPE="SECTION">
<HEAD>§ 17.106   Consents of surety.</HEAD>
<P>The principal and surety shall execute on form TTB F 5000.18, Change in Bond (Consent of Surety), any consents of surety to changes in the terms of bonds. Form TTB F 5000.18 shall be executed with the same formality and proof of authority as is required for the execution of bonds.
</P>
<CITA TYPE="N">[T.D. TTB-196 89 FR 87937, Nov. 6, 2024]








</CITA>
</DIV8>


<DIV8 N="§ 17.107" NODE="27:1.0.1.1.13.5.52.7" TYPE="SECTION">
<HEAD>§ 17.107   Strengthening bonds.</HEAD>
<P>Whenever the amount of a bond on file and in effect becomes insufficient, the principal may give a strengthening bond in a sufficient amount, provided the surety is the same as on the bond already on file and in effect; otherwise a superseding bond covering the entire liability shall be filed. Strengthening bonds, filed to increase the bond liability of the surety, shall not be construed in any sense to be substitute bonds, and the appropriate TTB officer shall not approve a strengthening bond containing any notation which may be interpreted as a release of any former bond or as limiting the amount of either bond to less than its full amount.


</P>
</DIV8>


<DIV8 N="§ 17.108" NODE="27:1.0.1.1.13.5.52.8" TYPE="SECTION">
<HEAD>§ 17.108   Superseding bonds.</HEAD>
<P>(a) The principal on any bond filed pursuant to this part may at any time replace it with a superseding bond.
</P>
<P>(b) Executors, administrators, assignees, receivers, trustees, or other persons acting in a fiduciary capacity continuing or liquidating the business of the principal, shall execute and file a superseding bond or obtain the consent of the surety or sureties on the existing bond or bonds.
</P>
<P>(c) When, in the opinion of the appropriate TTB officer, the interests of the Government demand it, or in any case where the security of the bond becomes impaired in whole or in part for any reason whatever, the principal shall file a superseding bond. A superseding bond shall be filed immediately in case of the insolvency of the surety. If a bond is found to be not acceptable or for any reason becomes invalid or of no effect, the principal shall immediately file a satisfactory superseding bond.
</P>
<P>(d) A bond filed under this section to supersede an existing bond shall be marked by the obligors at the time of execution, “Superseding Bond.” When such a bond is approved, the superseded bond shall be released as to transactions occurring wholly subsequent to the effective date of the superseding bond, and notice of termination of the superseded bond shall be issued, as provided in § 17.111.


</P>
</DIV8>


<DIV7 N="52" NODE="27:1.0.1.1.13.5.52" TYPE="SUBJGRP">
<HEAD>Termination of Bonds</HEAD>


<DIV8 N="§ 17.111" NODE="27:1.0.1.1.13.5.52.9" TYPE="SECTION">
<HEAD>§ 17.111   General.</HEAD>
<P>(a) Bonds on TTB Form 5154.3 shall be terminated by the appropriate TTB officer, as to liability on drawback allowed after a specified future date, in the following circumstances:
</P>
<P>(1) Pursuant to a notice by the surety as provided in § 17.112.
</P>
<P>(2) Following approval of a superseding bond, as provided in § 17.108.
</P>
<P>(3) Following notification by the principal of an intent to discontinue the filing of claims on a monthly basis.
</P>
<P>(b) However, the bond shall not be terminated until all outstanding liability under it has been discharged. Upon termination, the appropriate TTB officer shall mark the bond “canceled,” followed by the date of cancellation, and shall issue a notice of termination of bond. A copy of this notice shall be given to the principal and to each surety.


</P>
</DIV8>


<DIV8 N="§ 17.112" NODE="27:1.0.1.1.13.5.52.10" TYPE="SECTION">
<HEAD>§ 17.112   Notice by surety of termination of bond.</HEAD>
<P>A surety on any bond required by this part may at any time, in writing, notify the principal and the appropriate TTB officer in whose office the bond is on file that the surety desires, after a date named, to be relieved of liability under the bond. Unless the notice is withdrawn, in writing, before the date named in it, the notice shall take effect on that date. The date shall not be less than 60 days after the date on which both the notice and proof of service on the principal have been received by the appropriate TTB officer. The surety shall deliver one copy of the notice to the principal and the original to the appropriate TTB officer. The surety shall also file with the appropriate TTB officer an acknowledgment or other proof of service on the principal.


</P>
</DIV8>


<DIV8 N="§ 17.113" NODE="27:1.0.1.1.13.5.52.11" TYPE="SECTION">
<HEAD>§ 17.113   Extent of release of surety from liability under bond.</HEAD>
<P>The rights of the principal as supported by the bond shall cease as of the date when termination of the bond takes effect, and the surety shall be relieved from liability for drawback allowed on and after that date. Liability for drawback previously allowed shall continue until the claims for such drawback have been properly verified by the appropriate TTB officer according to law and this part.


</P>
</DIV8>


<DIV8 N="§ 17.114" NODE="27:1.0.1.1.13.5.52.12" TYPE="SECTION">
<HEAD>§ 17.114   Release of collateral.</HEAD>
<P>The release of collateral security pledged and deposited to satisfy the bond requirement of this part is governed by the provisions of 31 CFR part 225. When the appropriate TTB officer determines that there is no outstanding liability under the bond, and is satisfied that the interests of the Government will not be jeopardized, the security shall be released and returned to the principal.
</P>
<SECAUTH TYPE="N">(Sec. 1, Pub. L. 97-258, 96 Stat. 1046 (31 U.S.C. 9301, 9303))


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.13.6" TYPE="SUBPART">
<HEAD>Subpart F—Formulas and Samples</HEAD>


<DIV8 N="§ 17.121" NODE="27:1.0.1.1.13.6.53.1" TYPE="SECTION">
<HEAD>§ 17.121   Product formulas.</HEAD>
<P>(a) <I>General.</I> Except as provided in §§ 17.132 and 17.182, manufacturers shall file quantitative formulas for all preparations for which they intend to file drawback claims. Such formulas shall state the quantity of each ingredient, and shall separately state the quantity of spirits to be recovered or to be consumed as an essential part of the manufacturing process.
</P>
<P>(b) <I>Filing.</I> Formulas shall be filed on TTB Form 5154.1, Formula and Process for Nonbeverage Products. Filing shall be accomplished no later than 6 months after the end of the quarter in which taxpaid distilled spirits were first used to manufacture the product for purposes of drawback. If a product's formula is disapproved, no drawback shall be allowed on spirits used to manufacture that product, unless it is later used as an intermediate product, as provided in § 17.137.
</P>
<P>(c) <I>Numbering.</I> The formulas shall be serially numbered by the manufacturer, commencing with number 1 and continuing thereafter in numerical sequence. However, a new formula for use at several plants shall be given the highest number next in sequence at any of those plants. The numbers that were skipped at the other plants shall not be used subsequently.
</P>
<P>(d) <I>Distribution and retention of approved formulas.</I> One copy of each approved Form 5154.1 shall be returned to the manufacturer. The formulas returned to manufacturers shall be kept in serial order at the place of manufacture, as provided in § 17.170, and shall be made available to appropriate TTB officers for examination in the investigation of drawback claims.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 66 FR 5471, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 17.122" NODE="27:1.0.1.1.13.6.53.2" TYPE="SECTION">
<HEAD>§ 17.122   Amended or revised formulas.</HEAD>
<P>Except as provided in this section, amended or revised formulas are considered to be new formulas and shall be numbered accordingly. Minor changes may be made to a current formula on TTB Form 5154.1 with retention of the original formula number, if approval is obtained from the appropriate TTB officer. In order to obtain approval to make a minor formula change, the person holding the Form 5154.1 shall submit a letter of application to the appropriate TTB officer, indicating the formula change and requesting that the proposed change be considered a minor change. Each such application shall clearly identify the original formula by number, date of approval, and name of product. The application shall indicate whether the product is, has been, or will be used in alcoholic beverages, and shall specify whether the proposed change is intended as a substitution or merely as an alternative for the original formula. No changes may be made to current formulas without specific TTB approval in each case.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 66 FR 5471, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 17.123" NODE="27:1.0.1.1.13.6.53.3" TYPE="SECTION">
<HEAD>§ 17.123   Statement of process.</HEAD>
<P>Any person claiming drawback under the regulations in this part may be required, at any time, to file a statement of process, in addition to that required by TTB Form 5154.1, as well as any other data necessary for consideration of the claim for drawback. When pertinent to consideration of the claim, submission of copies of the commercial labels used on the finished products may also be required.


</P>
</DIV8>


<DIV8 N="§ 17.124" NODE="27:1.0.1.1.13.6.53.4" TYPE="SECTION">
<HEAD>§ 17.124   Samples.</HEAD>
<P>Any person claiming drawback or submitting a formula for approval under the regulations in this part may be required, at any time, to submit a sample of each nonbeverage or intermediate product for analysis. If the product is manufactured with a mixture of oil or other ingredients, the composition of which is unknown to the claimant, a 1-ounce sample of the mixture shall be submitted with the sample of finished product when so required.


</P>
</DIV8>


<DIV8 N="§ 17.125" NODE="27:1.0.1.1.13.6.53.5" TYPE="SECTION">
<HEAD>§ 17.125   Adoption of formulas and processes.</HEAD>
<P>(a) <I>Adoption of predecessor's formulas.</I> If there is a change in the proprietorship of a nonbeverage plant and the successor desires to use the predecessor's formulas at the same location, the successor may, in lieu of submitting new formulas in its own name, adopt any or all of the formulas of the predecessor by filing a notice of adoption with the appropriate TTB officer. The notice shall be filed with the first claim relating to any of the adopted formulas. The notice shall list, by name and serial number, all formulas to be adopted, and shall state that the products will be manufactured in accordance with the adopted formulas and processes. The notice shall be accompanied by a certified copy of the articles of incorporation or other document(s) necessary to prove the transfer of ownership. The manufacturer shall retain a copy of the notice with the related formulas.
</P>
<P>(b) <I>Adoption of manufacturer's own formulas from a different location.</I> A manufacturer's own formulas may be adopted for use at another of the manufacturer's plants. Further, a wholly owned subsidiary may adopt the formulas of the parent company, and vice versa. A letterhead notice must be filed with the appropriate TTB officer and be accompanied by two photocopies of each formula to be adopted. The notice shall list the numbers of all formulas to be adopted and shall indicate the plant where each was originally approved and the plant(s) where each is to be adopted. Some evidence of the relationship between the plants involved in the adoption shall be attached to the notice. The notice shall be referenced in Part IV of the supporting data (TTB Form 5154.2) filed with the first claim relating to the adopted formula(s).
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 66 FR 5471, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 17.126" NODE="27:1.0.1.1.13.6.53.6" TYPE="SECTION">
<HEAD>§ 17.126   Formulas for intermediate products.</HEAD>
<P>(a) The manufacturer shall submit a formula on TTB Form 5154.1 for each self-manufactured ingredient made with taxpaid spirits and intended for the manufacturer's own use in nonbeverage products, unless the formula for any such ingredient is fully expressed as part of the approved formula for each nonbeverage product in which that ingredient is used, or unless the formula for the ingredient is contained in one of the pharmaceutical publications listed in § 17.132.
</P>
<P>(b) Upon receipt of Form 5154.1 covering a self-manufactured ingredient made with taxpaid spirits, the formula shall be examined under § 17.131. If the formula is approved for drawback, the ingredient shall be treated as a finished nonbeverage product for purposes of this part, rather than as an intermediate product, notwithstanding its use by the manufacturer. (For example, see § 17.152(d).) If the formula is disapproved for drawback, the ingredient may be treated as an intermediate product in accordance with this part. Requirements pertaining to intermediate products are found in § 17.185(b).
</P>
<P>(c) If there is a change in the composition of an intermediate product, the manufacturer shall submit an amended or revised formula, as provided in § 17.122.


</P>
</DIV8>


<DIV8 N="§ 17.127" NODE="27:1.0.1.1.13.6.53.7" TYPE="SECTION">
<HEAD>§ 17.127   Self-manufactured ingredients treated optionally as unfinished nonbeverage products.</HEAD>
<P>A self-manufactured ingredient made with taxpaid spirits, which otherwise would be treated as an intermediate product, may instead be treated as an unfinished nonbeverage product, if the ingredient's formula is fully expressed as a part of the approved formula for the nonbeverage product in which the ingredient will be used. A manufacturer desiring to change the treatment of an ingredient from “intermediate product” to “unfinished nonbeverage product” (or vice versa) may do so by resubmitting the applicable formula(s) on TTB Form 5154.1. Requirements pertaining to unfinished nonbeverage products are found in § 17.185(c).


</P>
</DIV8>


<DIV7 N="53" NODE="27:1.0.1.1.13.6.53" TYPE="SUBJGRP">
<HEAD>Approval of Formulas</HEAD>


<DIV8 N="§ 17.131" NODE="27:1.0.1.1.13.6.53.8" TYPE="SECTION">
<HEAD>§ 17.131   Formulas on TTB Form 5154.1.</HEAD>
<P>Upon receipt, formulas on TTB Form 5154.1 shall be examined and, if found to be medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume which are unfit for beverage purposes and which otherwise meet the requirements of law and this part, they shall be approved for drawback. If the formulas do not meet the requirements of the law and regulations for drawback products, they shall be disapproved.


</P>
</DIV8>


<DIV8 N="§ 17.132" NODE="27:1.0.1.1.13.6.53.9" TYPE="SECTION">
<HEAD>§ 17.132   U.S.P., N.F., and H.P.U.S. preparations.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided by paragraph (b) of this section or by TTB ruling, formulas for compounds in which alcohol is a prescribed quantitative ingredient, which are stated in the current revisions or editions of the United States Pharmacopoeia (U.S.P.), the National Formulary (N.F.), or the Homeopathic Pharmacopoeia of the United States (H.P.U.S.), shall be considered as approved formulas and may be used as formulas for drawback products without the filing of TTB Form 5154.1.
</P>
<P>(b) <I>Exceptions.</I> Alcohol (including dehydrated alcohol and dehydrated alcohol injection), U.S.P.; alcohol and dextrose injection, U.S.P.; and tincture of ginger, H.P.U.S., have been found to be fit for beverage use and are disapproved for drawback. All attenuations of other H.P.U.S. products diluted beyond one part in 10,000 (“4 × ”) are also disapproved for drawback, unless the manufacturer receives approval for a formula submitted on Form 5154.1 in accordance with this subpart. The formula for such attenuations shall be submitted with a sample of the product and a statement explaining why it should be classified as unfit for beverage use.


</P>
</DIV8>


<DIV8 N="§ 17.133" NODE="27:1.0.1.1.13.6.53.10" TYPE="SECTION">
<HEAD>§ 17.133   Food product formulas.</HEAD>
<P>Formulas for nonbeverage food products on TTB Form 5154.1 may be approved if they are unfit for beverage purposes. Approval does not authorize manufacture or sale contrary to State law. Examples of food products that have been found to be unfit for beverage purposes are stated below:
</P>
<P>(a) <I>Sauces or syrups.</I> Sauces, or syrups consisting of sugar solutions and distilled spirits, in which the alcohol content is not more than 12 percent by volume and the sugar content is not less than 60 grams per 100 cubic centimeters.
</P>
<P>(b) <I>Brandied fruits.</I> Brandied fruits consisting of solidly packaged fruits, either whole or segmented, and distilled spirits products not exceeding the quantity and alcohol content necessary for flavoring and preserving. Generally, brandied fruits will be considered to have met these standards if the container is well filled, the alcohol in the liquid portion does not exceed 23 percent by volume, and the liquid portion does not exceed 45 percent of the volume of the container.
</P>
<P>(c) <I>Candies.</I> Candies with alcoholic fillings, if the fillings meet the standards prescribed for sauces and syrups by paragraph (a) of this section.
</P>
<P>(d) <I>Other food products.</I> Food products such as mincemeat, plum pudding, and fruit cake, where only sufficient distilled spirits are used for flavoring and preserving; and ice cream and ices where only sufficient spirits are used for flavoring purposes. Also food adjuncts, such as preservatives, emulsifying agents, and food colorings, that are unfit for beverage purposes and are manufactured and used, or sold for use, in food.


</P>
</DIV8>


<DIV8 N="§ 17.134" NODE="27:1.0.1.1.13.6.53.11" TYPE="SECTION">
<HEAD>§ 17.134   Determination of unfitness for beverage purposes.</HEAD>
<P>The appropriate TTB officer has responsibility for determining whether products are fit or unfit for beverage purposes within the meaning of 26 U.S.C. 5111. This determination may be based either on the content and description of the ingredients as shown on TTB Form 5154.1, or on organoleptic examination. In such examination, samples of products may be diluted with water to an alcoholic concentration of 15% and tasted. Sale or use for beverage purposes is indicative of fitness for beverage use.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 17.135" NODE="27:1.0.1.1.13.6.53.12" TYPE="SECTION">
<HEAD>§ 17.135   Use of specially denatured alcohol (S.D.A.).</HEAD>
<P>(a) <I>Use of S.D.A. in nonbeverage or intermediate products</I>—(1) <I>General.</I> Except as provided in paragraph (b) of this section, the use of specially denatured alcohol (S.D.A.) and taxpaid spirits in the same product by a nonbeverage manufacturer is prohibited where drawback of tax is claimed.
</P>
<P>(2) <I>Alternative formulations.</I> No formula for a product on TTB Form 5154.1 shall be approved for drawback under this subpart if the manufacturer also has on file an approved TTB Form 1479-A or Form 5150.19, Formula for Article Made With Specially Denatured Alcohol or Rum, pertaining to the same product.
</P>
<P>(b) <I>Use of S.D.A. in ingredients</I>—(1) <I>Purchased ingredients.</I> Generally, purchased ingredients containing S.D.A. may be used in nonbeverage or intermediate products. However, such ingredients shall not be used in medicinal preparations or flavoring extracts intended for internal human use, where any of the S.D.A. remains in the finished product.
</P>
<P>(2) <I>Self-manufactured ingredients.</I> Self-manufactured ingredients may be made with S.D.A. and used in nonbeverage or intermediate products, provided—
</P>
<P>(i) No taxpaid spirits are used in manufacturing such ingredients; and
</P>
<P>(ii) All S.D.A. is recovered or dissipated from such ingredients prior to their use in nonbeverage or intermediate products. (Recovery of S.D.A. shall be in accordance with subpart K of part 20 of this chapter; recovered S.D.A., with or without its original denaturants, shall not be reused in nonbeverage or intermediate products.)
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1372, as amended (26 U.S.C. 5273))


</SECAUTH>
</DIV8>


<DIV8 N="§ 17.136" NODE="27:1.0.1.1.13.6.53.13" TYPE="SECTION">
<HEAD>§ 17.136   Compliance with Food and Drug Administration requirements.</HEAD>
<P>A product is not a medicine, medicinal preparation, food product, flavor, flavoring extract, or perfume for nonbeverage drawback if its formula would violate a ban or restriction of the U.S. Food and Drug Administration (FDA) pertaining to such products. If FDA bans or restricts the use of any ingredient in such a way that further manufacture of a product in accordance with its formula would violate the ban or restriction, then the manufacturer shall change the formula and resubmit it on TTB Form 5154.1 . This section does not preclude approval for products manufactured solely for export or for uses other than internal human consumption (e.g. tobacco flavors or animal feed flavors) in accordance with laws and regulations administered by FDA. Under § 17.123, manufacturers may be required to demonstrate compliance with FDA requirements applicable to this section.


</P>
</DIV8>


<DIV8 N="§ 17.137" NODE="27:1.0.1.1.13.6.53.14" TYPE="SECTION">
<HEAD>§ 17.137   Formulas disapproved for drawback.</HEAD>
<P>A formula may be disapproved for drawback either because it does not prescribe appropriate ingredients in sufficient quantities to make the product unfit for beverage use, or because the product is neither a medicine, a medicinal preparation, a food product, a flavor, a flavoring extract, nor a perfume. The formula for a disapproved product may be used as an intermediate product formula under § 17.126. No drawback will be allowed on distilled spirits used in a disapproved product, unless that product is later used in the manufacture of an approved nonbeverage product. In the case of a product that is disapproved because it is fit for beverage use, any further use or disposition of such a product, other than as an intermediate product in accordance with this part, subjects the manufacturer to the qualification requirements of parts 1 and 19 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-91, 76 FR 5477, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.13.7" TYPE="SUBPART">
<HEAD>Subpart G—Claims for Drawback</HEAD>


<DIV8 N="§ 17.141" NODE="27:1.0.1.1.13.7.54.1" TYPE="SECTION">
<HEAD>§ 17.141   Drawback.</HEAD>
<P>Upon the filing of a claim as provided in this subpart, drawback shall be allowed to any person who meets the requirements of this part. Drawback shall be paid at the rate specified by 26 U.S.C. 5114 on each proof gallon of distilled spirits on which the tax has been paid or determined and which have been used in the manufacture of nonbeverage products. The drawback rate is $1.00 less than the effective tax rate. Drawback shall be allowed only to the extent that the claimant can establish, by evidence satisfactory to the appropriate TTB officer, the actual quantity of taxpaid or tax-determined distilled spirits used in the manufacture of the product, and the effective tax rate applicable to those spirits.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37402, July 28, 2009; T.D. TTB-91, 76 FR 5477, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 17.142" NODE="27:1.0.1.1.13.7.54.2" TYPE="SECTION">
<HEAD>§ 17.142   Claims.</HEAD>
<P>(a) <I>General.</I> The manufacturer must file claim for drawback with the appropriate TTB officer who has the authority to approve or disapprove claims. A separate claim shall be filed for each place of business. Each claim shall pertain only to distilled spirits used in the manufacture or production of nonbeverage products during any one quarter of the tax year. Unless the manufacturer is eligible to file monthly claims (see §§ 17.143 and 17.144), only one claim per quarter may be filed for each place of business. Claims shall be filed on TTB Form 2635 (5620.8), Claim—Alcohol and Tobacco Taxes.
</P>
<P>(b) <I>Manufacturers who are also proprietors of distilled spirits plants.</I> If a manufacturer of nonbeverage products is owned and operated by the same business entity that owns and operates a distilled spirits plant, the manufacturer's claim for drawback may be filed for credit on Form 2635 (5620.8). After the claim is approved, the distilled spirits plant may use the claim as an adjustment decreasing the taxes due in Schedule B of TTB Form 5000.24, Excise Tax Return. Adjustments resulting from an approved drawback claim are not subject to interest. This procedure may be utilized only if the manufacturer of nonbeverage products and the distilled spirits plant have the same employer identification number.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 66 FR 5471, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 17.143" NODE="27:1.0.1.1.13.7.54.3" TYPE="SECTION">
<HEAD>§ 17.143   Notice for monthly claims.</HEAD>
<P>If the manufacturer has notified the appropriate TTB officer, in writing, of an intention to file claims on a monthly basis instead of a quarterly basis, and has filed a bond in compliance with the provisions of this part, claims may be filed monthly instead of quarterly. The election to file monthly claims shall not preclude a manufacturer from filing a single claim covering an entire quarter, or a single claim covering just two months of a quarter, or two claims (one of them covering one month and the other covering two months). An election for the filing of monthly claims may be withdrawn by the manufacturer by filing a notice to that effect, in writing, with the appropriate TTB officer.


</P>
</DIV8>


<DIV8 N="§ 17.144" NODE="27:1.0.1.1.13.7.54.4" TYPE="SECTION">
<HEAD>§ 17.144   Bond for monthly claims.</HEAD>
<P>Each person intending to file claims for drawback on a monthly basis shall file an executed bond on TTB Form 5154.3, conforming to the provisions of subpart E of this part. A monthly drawback claim shall not be allowed until bond coverage in a sufficient amount has been approved by the appropriate TTB officer. When the limit of liability under a bond given in less than the maximum amount has been reached, further drawback on monthly claims may be suspended until a strengthening or superseding bond in a sufficient amount is furnished.


</P>
</DIV8>


<DIV8 N="§ 17.145" NODE="27:1.0.1.1.13.7.54.5" TYPE="SECTION">
<HEAD>§ 17.145   Date of filing claim.</HEAD>
<P>Quarterly claims for drawback shall be filed within six months after the quarter in which the distilled spirits covered by the claim were used in the manufacture of nonbeverage products. Monthly claims for drawback may be filed at any time after the end of the month in which the distilled spirits covered by the claim were used in the manufacture of nonbeverage products, but shall be filed not later than the close of the sixth month succeeding the quarter in which the spirits were used.


</P>
</DIV8>


<DIV8 N="§ 17.146" NODE="27:1.0.1.1.13.7.54.6" TYPE="SECTION">
<HEAD>§ 17.146   Information to be shown by the claim.</HEAD>
<P>The claim shall show the following:
</P>
<P>(a) [Reserved]
</P>
<P>(b) That the distilled spirits on which drawback is claimed were fully taxpaid or tax-determined at the effective tax rate applicable to the distilled spirits.
</P>
<P>(c) That the distilled spirits on which the drawback is claimed were used in the manufacture of nonbeverage products.
</P>
<P>(d) Whether the nonbeverage products were manufactured in compliance with quantitative formulas approved under subpart F of this part. (If not, attach explanation.)
</P>
<P>(e) That the data submitted in support of the claim are correct.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 17.147" NODE="27:1.0.1.1.13.7.54.7" TYPE="SECTION">
<HEAD>§ 17.147   Supporting data.</HEAD>
<P>(a) Each claim for drawback shall be accompanied by supporting data presented according to the format shown on TTB Form 5154.2, Supporting Data for Nonbeverage Drawback Claims (or according to any other suitable format which provides the same information). Modifications of Form 5154.2 may be used without prior authorization, if the modified format clearly shows all of the required information that is pertinent to the manufacturing operation. Under § 17.123, the appropriate TTB officer may require additional supporting data when needed to determine the correctness of drawback claims.
</P>
<P>(b) Separate data shall be shown for eligible distilled spirits taxpaid at different effective tax rates. This requirement applies to all eligible spirits, including eligible recovered alcohol and eligible spirits contained in intermediate products.
</P>
<P>(c) Separate data shall be shown for imported rum, spirits from Puerto Rico containing at least 92% rum, and spirits from the U.S. Virgin Islands containing at least 92% rum. The total number of proof gallons of each such category used subject to drawback during the claim period shall also be shown, with separate totals for each effective tax rate. These amounts shall include eligible spirits and rum from intermediate products or recovered alcohol.
</P>
<P>(d) Any gain in eligible distilled spirits reported in the supporting data shall be reflected by an equivalent deduction from the amount of drawback claimed. Gains shall not be offset by known losses.


</P>
</DIV8>


<DIV8 N="§ 17.148" NODE="27:1.0.1.1.13.7.54.8" TYPE="SECTION">
<HEAD>§ 17.148   Allowance of claims.</HEAD>
<P>(a) <I>General.</I> Except in the case of fraudulent noncompliance, no claim for drawback shall be denied for a failure to comply with either 26 U.S.C. 5111-5114 or the requirements of this part, if the claimant establishes that spirits on which the tax has been paid or determined were in fact used in the manufacture of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which were unfit for beverage purposes.
</P>
<P>(b) <I>Penalty.</I> Noncompliance with the requirements of 26 U.S.C. 5111-5114 or of this part subjects the claimant to a civil penalty of $1,000 for each separate product, reflected in a claim for drawback, to which the noncompliance relates, or the amount claimed for that product, whichever is less, unless the claimant establishes that the noncompliance was due to reasonable cause. Late filing of a claim subjects the claimant to a civil penalty of $1,000 or the amount of the claim, whichever is less, unless the claimant establishes that the lateness was due to reasonable cause.
</P>
<P>(c) <I>Reasonable cause.</I> Reasonable cause exists where a claimant establishes it exercised ordinary business care and prudence, and still was unable to comply with the statutory and regulatory requirements. Ignorance of law or regulations, in and of itself, is not reasonable cause. Each case is individually evaluated.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5114(c))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>


<DIV7 N="54" NODE="27:1.0.1.1.13.7.54" TYPE="SUBJGRP">
<HEAD>Spirits Subject to Drawback</HEAD>


<DIV8 N="§ 17.151" NODE="27:1.0.1.1.13.7.54.9" TYPE="SECTION">
<HEAD>§ 17.151   Use of distilled spirits.</HEAD>
<P>Distilled spirits are considered to have been used in the manufacture of a product under this part if the spirits are consumed in the manufacture, are incorporated into the product, or are determined by TTB to have been otherwise utilized as an essential part of the manufacturing process. However, spirits lost by causes such as spillage, leakage, breakage or theft, and spirits used for purposes such as rinsing or cleaning a system, are not considered to have been used in the manufacture of a product.


</P>
</DIV8>


<DIV8 N="§ 17.152" NODE="27:1.0.1.1.13.7.54.10" TYPE="SECTION">
<HEAD>§ 17.152   Time of use of spirits.</HEAD>
<P>(a) <I>General.</I> Distilled spirits shall be considered used in the manufacture of a product as soon as that product contains all the ingredients called for by its formula.
</P>
<P>(b) <I>Spirits used in an ion exchange column.</I> Distilled spirits used in recharging an ion exchange column, the operation of which is essential to the production of a product, shall be considered to be used when the spirits are entered into the manufacturing system in accordance with the product's formula.
</P>
<P>(c) <I>Products requiring additional processing or treatment.</I> Further manipulation of a product, such as aging or filtering, subsequent to the mixing together of all of its ingredients, shall not postpone the time when spirits are considered used, as determined under paragraph (a) of this section. This is true even if at the time of use there has not yet been a final determination of alcoholic content by assay. If, however, it is later found necessary to add more distilled spirits to standardize the product, such added spirits shall be considered as used in the period during which they were added.
</P>
<P>(d) <I>Nonbeverage products used to manufacture other products.</I> Nonbeverage products may be used to manufacture other nonbeverage (or intermediate) products. However, such subsequent usage of a nonbeverage product shall not affect the time when the distilled spirits contained therein are considered used. When distilled spirits are used in the manufacture of a nonbeverage product, the time of use shall be the point at which that product first contains all of its prescribed ingredients, and such use shall not be determined by the time of any subsequent usage of that product in another product.


</P>
</DIV8>


<DIV8 N="§ 17.153" NODE="27:1.0.1.1.13.7.54.11" TYPE="SECTION">
<HEAD>§ 17.153   Recovered spirits.</HEAD>
<P>(a) <I>Recovery from intermediate products.</I> Eligible spirits recovered in the manufacture of intermediate products are not subject to drawback until such recovered spirits are used in the manufacture of a nonbeverage product. (However, see § 17.127 with respect to optional treatment of ingredients as unfinished nonbeverage products, rather than as intermediate products.) Spirits recovered in the manufacture of intermediate products shall be reused only in the manufacture of intermediate or nonbeverage products.
</P>
<P>(b) <I>Recovery from nonbeverage products.</I> Distilled spirits recovered in the manufacture of a nonbeverage product are considered as having been used in the manufacture of that product. If the spirits were eligible when so used, they became subject to drawback at that time. Upon recovery, such spirits may be reused in the manufacture of nonbeverage products, but shall not be reused for any other purpose. When reused, such recovered spirits are not again eligible for drawback and shall not be used in the manufacture of intermediate products.
</P>
<P>(c) <I>Cross references.</I> For additional provisions respecting the recovery of distilled spirits and related recordkeeping requirements, see §§ 17.168 and 17.183.


</P>
</DIV8>


<DIV8 N="§ 17.154" NODE="27:1.0.1.1.13.7.54.12" TYPE="SECTION">
<HEAD>§ 17.154   Spirits contained in intermediate products.</HEAD>
<P>Spirits contained in an intermediate product are not subject to drawback until that intermediate product is used in the manufacture of a nonbeverage product.


</P>
</DIV8>


<DIV8 N="§ 17.155" NODE="27:1.0.1.1.13.7.54.13" TYPE="SECTION">
<HEAD>§ 17.155   Spirits consumed in manufacturing intermediate products.</HEAD>
<P>Spirits consumed in the manufacture of an intermediate product—which are not contained in the intermediate product at the time of its use in nonbeverage products—are not subject to drawback. Such spirits are not considered to have been used in the manufacture of nonbeverage products. However, see § 17.127 with respect to optional treatment of ingredients as unfinished nonbeverage products, rather than as intermediate products.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.13.8" TYPE="SUBPART">
<HEAD>Subpart H—Records</HEAD>


<DIV8 N="§ 17.161" NODE="27:1.0.1.1.13.8.55.1" TYPE="SECTION">
<HEAD>§ 17.161   General.</HEAD>
<P>Each person claiming drawback on taxpaid distilled spirits used in the manufacture of nonbeverage products shall maintain records showing the information required in this subpart. No particular form is prescribed for these records, but the data required to be shown shall be clearly recorded and organized to enable appropriate TTB officers to trace each operation or transaction, monitor compliance with law and regulations, and verify the accuracy of each claim. Ordinary business records, including invoices and cost accounting records, are acceptable if they show the required information or are annotated to show any such information that is lacking. The records shall be kept complete and current at all times and shall be retained by the manufacturer at the place where the taxpaid distilled spirits are used in the manufacture or production of nonbeverage products, for the period prescribed in § 17.170.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 17.162" NODE="27:1.0.1.1.13.8.55.2" TYPE="SECTION">
<HEAD>§ 17.162   Receipt of distilled spirits.</HEAD>
<P>(a) <I>Distilled spirits received in tank cars, tank trucks, barrels, or drums.</I> For distilled spirits received in tank cars, tank trucks, barrels, or drums, the manufacturer shall record, with respect to each shipment received—
</P>
<P>(1) The date of receipt;
</P>
<P>(2) The name and address of the person from whom received;
</P>
<P>(3) The serial number or other identification mark (if any) of each tank car, tank truck, barrel, or drum;
</P>
<P>(4) The name of the producer or warehouseman who paid or determined the tax;
</P>
<P>(5) The effective tax rate (if other than the rate prescribed by 26 U.S.C. 5001); and
</P>
<P>(6) The kind, quantity, and proof (or alcohol percentage by volume) of the spirits.
</P>
<P>(b) <I>Distilled spirits received in bottles.</I> For distilled spirits received in bottles, the manufacturer shall record—
</P>
<P>(1) The date of receipt;
</P>
<P>(2) The name and address of the seller;
</P>
<P>(3) The serial number of each case, if the bottles are received in cases;
</P>
<P>(4) The name of the bottler;
</P>
<P>(5) The effective tax rate (if other than the rate prescribed by 26 U.S.C. 5001); and
</P>
<P>(6) The kind, quantity, and proof (or alcohol percentage by volume) of the spirits.
</P>
<P>(c) <I>Distilled spirits received by pipeline.</I> For distilled spirits received by pipeline, the manufacturer shall record—
</P>
<P>(1) The date of receipt;
</P>
<P>(2) The name of the producer or warehouseman who paid or determined the tax;
</P>
<P>(3) The effective tax rate (if other than the rate prescribed by 26 U.S.C. 5001); and
</P>
<P>(4) The kind, quantity, and proof (or alcohol percentage by volume) of the spirits.
</P>
<P>(d) <I>Determination of quantity.</I> At the time of receipt, each manufacturer shall determine (preferably by weight) and record the exact number of proof gallons of distilled spirits received. The amount received in bottles may be determined by the required statements on the labels. The amount received in sealed drums with no evidence of leakage may be determined from the record of shipment, which is required by § 19.626 of this chapter to accompany spirits received from a distilled spirits plant. If spirits are received in a tank car or tank truck, and the result of the manufacturer's gauge of the spirits is within 0.2 percent of the number of proof gallons reported on the record of shipment required by § 19.626, then the number of proof gallons reported on that record may be recorded as the quantity received. Nevertheless, the receiving gauge shall be noted on the record of receipt. If, for any shipment, the amount recorded in the manufacturer's records as the quantity received is greater than the amount shown as taxpaid on the record required by § 19.626, a deduction equivalent to the excess shall be made from the amount of drawback claimed in the manufacturer's claim covering that period. If no claim is filed for that period, then the deduction shall be made in the manufacturer's next claim. Losses in transit that exceed the 0.2 percent limitation provided in this paragraph shall be determined and noted on the record of receipt. Such losses shall not be recorded as distilled spirits received.
</P>
<P>(e) <I>Receipt of imported rum, or spirits from Puerto Rico or the Virgin Islands.</I> If spirits are received which contain at least 92% rum, and which originate from Puerto Rico or the U.S. Virgin Islands, the record of receipt shall indicate the place of origin. If rum is received, the record shall indicate whether it is from Puerto Rico, from the U.S. Virgin Islands, imported from other countries, or domestic.
</P>
<P>(f) <I>Shipments from distilled spirits plants.</I> If spirits are received directly from the distilled spirits plant that paid or determined the tax, the manufacturer shall retain the record of shipment required by § 19.626 of this chapter. To the extent that the information on that record duplicates the requirements of this section, retention of that record shall satisfy those requirements. If there are differences between the information on the record of shipment and the information required to be recorded by this section, the requirements of this section may be met by appropriate annotations on the record of shipment.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-92, 76 FR 9090, Feb. 16, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 17.163" NODE="27:1.0.1.1.13.8.55.3" TYPE="SECTION">
<HEAD>§ 17.163   Evidence of taxpayment of distilled spirits.</HEAD>
<P>(a) <I>Shipments from distilled spirits plants.</I> For each shipment of taxpaid spirits from the bonded premises of a distilled spirits plant, the manufacturer shall obtain the record of shipment prepared by the supplier under § 19.626 of this chapter. This record shall be retained with the commercial invoice (if the latter is a separate document) as evidence of taxpayment of the spirits. The record shall show the effective tax rate(s) (if other than the rate prescribed by 26 U.S.C. 5001) applicable to the shipment.
</P>
<P>(b) <I>Purchases from wholesale and retail liquor dealers.</I> Manufacturers shall obtain commercial invoices or other documentation pertaining to purchases of distilled spirits from wholesale and retail liquor dealers (including such dealership operations when conducted in conjunction with a distilled spirits plant). For spirits other than alcohol, grain spirits, neutral spirits, distilled gin, or straight whisky (as defined in the standards of identity prescribed by § 5.22 of this chapter), the manufacturer of nonbeverage products shall obtain evidence, from the producer or bottler of the spirits, as to the effective tax rate paid thereon.
</P>
<P>(c) <I>Imported spirits.</I> For imported spirits that were taxpaid through U.S. Customs and Border Protection (CBP), evidence of such taxpayment (such as CBP Forms 7501 and 7505, receipted to indicate payment of tax, and the certificate of effective tax rate computation, if applicable) shall be secured from the importer and retained by the manufacturer.
</P>
<P>(d) <I>Evidence of effective tax rate.</I> If the evidence of effective tax rate, required by this section for distilled spirits products that may contain wine or flavors, is not obtained, drawback shall only be allowed based on the lowest effective tax rate possible for the kind of distilled spirits product used.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-92, 76 FR 9090, Feb. 16, 2011; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 17.164" NODE="27:1.0.1.1.13.8.55.4" TYPE="SECTION">
<HEAD>§ 17.164   Production record.</HEAD>
<P>(a) <I>General.</I> Each manufacturer shall keep a production record for each batch of intermediate product and for each batch of nonbeverage product. The production record shall be an original record made at the time of production by a person (or persons) having actual knowledge thereof. If any product is produced by a continuous process rather than by batches, the production record shall pertain to the total quantity of that product produced during each claim period.
</P>
<P>(b) <I>Information to be shown.</I> The record shall show the name and formula number of the product, the actual quantities of all ingredients used in the manufacture of the batch (including the proof or alcohol percentage by volume of all spirits), the date when eligible spirits were considered used (see § 17.152), the effective tax rate applicable to those spirits (if other than the rate prescribed by 26 U.S.C. 5001), and the quantity of product produced. The alcohol content of the product shall be shown if a test of alcohol content was made (see paragraph (e) of this section). Usage of eligible and ineligible spirits shall be shown separately. If spirits from Puerto Rico or the U.S. Virgin Islands, containing at least 92% rum, were used, the record shall indicate their place of origin. If rum was used, the record shall indicate whether it was from Puerto Rico, from the U.S. Virgin Islands, imported from other countries, or domestic. If spirits were recovered, the production record shall so indicate, and the record required by § 17.168 shall be kept. If drawback is claimed on spirits consumed as an essential part of the manufacture of a nonbeverage product, which were not contained in that product at its completion, then the production record shall show the quantity of spirits so consumed in the manufacture of each batch.
</P>
<P>(c) <I>Specificity of information.</I> The production record shall refer to ingredients by the same names as are used for them in the product's formula. This includes formulas submitted to TTB and formulas contained in the publications listed in § 17.132. Other names for the ingredients may be added in the production record, if necessary for the manufacturer's operations. Usage of ingredients (including spirits) may be shown in units of weight or volume.
</P>
<P>(d) <I>Determining quantity of distilled spirits used.</I> Each manufacturer shall accurately determine, by weight or volume, and record in the production records the quantity of all distilled spirits used. When the quantity used is determined by volume, adjustments shall be made if the temperature of the spirits is above or below 60 degrees Fahrenheit. A table for correction of volume of spirituous liquors to 60 degrees Fahrenheit, Table 7 of the “Gauging Manual,” is available. See subpart E of part 30 of this chapter and § 30.67. Losses after receipt due to leakage, spillage, evaporation, or other causes not essential to the manufacturing process shall be accurately recorded in the manufacturer's permanent records at the time such losses are determined.
</P>
<P>(e) <I>Tests of alcohol content.</I> At representative intervals, the manufacturer shall verify the alcohol content of nonbeverage products. The results of such tests shall be recorded.


</P>
</DIV8>


<DIV8 N="§ 17.165" NODE="27:1.0.1.1.13.8.55.5" TYPE="SECTION">
<HEAD>§ 17.165   Receipt of raw ingredients.</HEAD>
<P>For raw ingredients destined to be used in nonbeverage or intermediate products, the manufacturer shall record, for each shipment received—
</P>
<P>(a) The date of receipt;
</P>
<P>(b) The quantity received; and
</P>
<P>(c) The identity of the supplier.


</P>
</DIV8>


<DIV8 N="§ 17.166" NODE="27:1.0.1.1.13.8.55.6" TYPE="SECTION">
<HEAD>§ 17.166   Disposition of nonbeverage products.</HEAD>
<P>(a) <I>Shipments.</I> For each shipment of nonbeverage products, the manufacturer shall record—
</P>
<P>(1) The formula number of the product;
</P>
<P>(2) The date of shipment;
</P>
<P>(3) The quantity shipped; and
</P>
<P>(4) The identity of the consignee.
</P>
<P>(b) <I>Other disposition.</I> For other dispositions of nonbeverage products, the manufacturer shall record—
</P>
<P>(1) The type of disposition;
</P>
<P>(2) The date of disposition; and
</P>
<P>(3) The quantity of each product so disposed of.
</P>
<P>(c) <I>Exception.</I> The manufacturer need not keep the records required by paragraphs (a) and (b) of this section for any nonbeverage product which either contains less than 3 percent of distilled spirits by volume, or is sold by the producer directly to the consumer in retail quantities. However, when needed for protection of the revenue, the appropriate TTB officer may at any time require the keeping of these records upon giving at least five days' notice to the manufacturer.


</P>
</DIV8>


<DIV8 N="§ 17.167" NODE="27:1.0.1.1.13.8.55.7" TYPE="SECTION">
<HEAD>§ 17.167   Inventories.</HEAD>
<P>(a) <I>Distilled spirits.</I> The “on hand” figures reported in Part II of TTB Form 5154.2 shall be verified by physical inventories taken as of the end of each quarter in which nonbeverage products were manufactured for purposes of drawback. Spirits taxpaid at different effective tax rates shall be inventoried separately. The inventory record shall show the date inventory was taken, the person(s) by whom it was taken, subtotals for each product inventoried, and any gains or losses disclosed; and shall be retained with the manufacturer's records. The manufacturer shall explain in Part IV of the supporting data (Form 5154.2) any discrepancy between the amounts on hand as disclosed by physical inventory and the amounts indicated by the manufacturer's records. Any gain in eligible spirits disclosed by inventory requires an equivalent deduction from the claim with which the inventory is reported. Gains shall not be offset by known losses. If no claim is filed for a quarter (nor for any monthly period therein), then no physical inventory is required for that quarter.
</P>
<P>(b) <I>Raw ingredients and nonbeverage products.</I> When necessary for ensuring compliance with regulations and protection of the revenue, the appropriate TTB officer may require a manufacturer to take physical inventories of finished nonbeverage products, and/or raw ingredients intended for use in the manufacture of nonbeverage or intermediate products. The results of such inventories shall be recorded in the manufacturer's records. Any discrepancy between the amounts on hand as disclosed by physical inventory and such amounts as indicated by the manufacturer's records shall also be recorded with an explanation of its cause.


</P>
</DIV8>


<DIV8 N="§ 17.168" NODE="27:1.0.1.1.13.8.55.8" TYPE="SECTION">
<HEAD>§ 17.168   Recovered spirits.</HEAD>
<P>(a) Each manufacturer intending to recover distilled spirits under the provisions of this part shall first notify the appropriate TTB officer. Any apparatus used to separate alcohol is subject to the registration requirements of 26 U.S.C. 5179 and subpart C of part 29 of this chapter. Recovery operations may only be conducted on the premises where the recovered spirits were used in the manufacture or production of nonbeverage or intermediate products.
</P>
<P>(b) The manufacturer shall keep a record of the distilled spirits recovered and the subsequent use to which such spirits are put. The record shall show—
</P>
<P>(1) The date of recovery;
</P>
<P>(2) The commodity or process from which the spirits were recovered;
</P>
<P>(3) The amount in proof gallons, or by weight and proof (or alcohol percentage by volume) of distilled spirits recovered;
</P>
<P>(4) The amount in proof gallons, or by weight and proof (or alcohol percentage by volume) of recovered distilled spirits reused;
</P>
<P>(5) The commodity in which the recovered distilled spirits were reused; and
</P>
<P>(6) The date of reuse.
</P>
<P>(c) Whenever recovered spirits are destroyed (see § 17.183), the record shall further show—
</P>
<P>(1) The reason for the destruction;
</P>
<P>(2) The date, time, location, and manner of destruction;
</P>
<P>(3) The number of proof gallons destroyed; and
</P>
<P>(4) The name of the individual who accomplished or supervised the destruction.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-462, 66 FR 42736, Aug. 15, 2001; T.D. TTB-79, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 17.169" NODE="27:1.0.1.1.13.8.55.9" TYPE="SECTION">
<HEAD>§ 17.169   Transfer of intermediate products.</HEAD>
<P>When intermediate products are transferred as permitted by § 17.185(b), supporting records of such transfers shall be kept at the shipping and receiving plants, showing the date and quantity of each product transferred.


</P>
</DIV8>


<DIV8 N="§ 17.170" NODE="27:1.0.1.1.13.8.55.10" TYPE="SECTION">
<HEAD>§ 17.170   Retention of records.</HEAD>
<P>Each manufacturer shall retain for a period of not less than 3 years all records required by this part, a copy of all claims and supporting data filed in support thereof, all commercial invoices or other documents evidencing taxpayment or tax-determination of domestic spirits, all documents evidencing taxpayment of imported spirits, and all bills of lading received which pertain to shipments of spirits. In addition, a copy of each formula submitted on TTB Form 5154.1 shall be retained at each factory where the formula is used, for not less than 3 years from the date of filing of the last claim for drawback under the formula. A copy of an approval to use an alternate method or procedure shall be retained as long as the manufacturer employs the method or procedure, and for 3 years thereafter. Further, the appropriate TTB officer may require these records, forms, and documents to be retained for an additional period of not more than 3 years in any case where he or she deems such retention to be necessary or advisable for protection of the revenue.


</P>
</DIV8>


<DIV8 N="§ 17.171" NODE="27:1.0.1.1.13.8.55.11" TYPE="SECTION">
<HEAD>§ 17.171   Inspection of records.</HEAD>
<P>All of the records, forms, and documents required to be retained by § 17.170 shall be kept at the premises where distilled spirits are used in the manufacture or production of nonbeverage products and shall be readily available during the manufacturer's regular business hours for examination and copying by the appropriate TTB officers. At the same time, any other books, papers, records or memoranda in the possession of the manufacturer, which have a bearing upon the matters required to be alleged in a claim for drawback, shall be available for inspection by appropriate TTB officers.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5113, 5123)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.13.9" TYPE="SUBPART">
<HEAD>Subpart I—Miscellaneous Provisions</HEAD>


<DIV8 N="§ 17.181" NODE="27:1.0.1.1.13.9.55.1" TYPE="SECTION">
<HEAD>§ 17.181   Exportation of medicinal preparations and flavoring extracts.</HEAD>
<P>Medicinal preparations and flavoring extracts, approved for drawback under the provisions of this part, may be exported subject to 19 U.S.C. 1313(d), which authorizes export drawback equal to the entire amount of internal revenue tax found to have been paid on the domestic alcohol used in the manufacture of such products. (Note: Export drawback is not allowed for imported alcohol under this provision of customs law.) Claims for such export drawback shall be filed in accordance with the applicable regulations of U.S. Customs and Border Protection. Such claims may cover either the full rate of tax which has been paid on the alcohol, if no nonbeverage drawback has been claimed thereon, or else the remainder of the tax if nonbeverage drawback under 26 U.S.C. 5114 has been or will be claimed.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37402, July 28, 2009; T.D. TTB-196 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 17.182" NODE="27:1.0.1.1.13.9.55.2" TYPE="SECTION">
<HEAD>§ 17.182   Drawback claims by druggists.</HEAD>
<P>Drawback of tax under 26 U.S.C. 5114 is allowable on taxpaid distilled spirits used by druggists in compounding prescriptions. The prescriptions so compounded shall be shown in the supporting data by listing the first and last serial numbers thereof. The amount of taxpaid spirits used in each prescription need not be shown, but such prescriptions shall be made available for examination by appropriate TTB officers. If refills have been made of prescriptions received in a previous claim period, their serial numbers shall be recorded separately. Druggists claiming drawback as authorized by this section are subject to all the applicable requirements of this part, except those requiring the filing of quantitative formulas.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-79, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 17.183" NODE="27:1.0.1.1.13.9.55.3" TYPE="SECTION">
<HEAD>§ 17.183   Disposition of recovered alcohol and material from which alcohol can be recovered.</HEAD>
<P>(a) <I>Recovered alcohol.</I> Manufacturers of nonbeverage products shall not sell or transfer recovered spirits to any other premises without TTB authorization under § 17.3. If recovered spirits are stored pending reuse, storage facilities shall be adequate to protect the revenue. If recovered spirits are destroyed, the record required by § 17.168(c) must be kept. Spirits recovered from intermediate products may be destroyed without notice to TTB. Spirits recovered from nonbeverage products may be destroyed pursuant to a notice filed with the appropriate TTB officer at least 12 days prior to the date of destruction. The notice shall state the reason for the destruction, the intended date of destruction, and the approximate quantity involved. The appropriate TTB officer may impose specific conditions, including requiring that the destruction be witnessed by an appropriate TTB officer. Unless the manufacturer is otherwise advised by the appropriate TTB officer before the date specified in the notice, the destruction may proceed as planned.
</P>
<P>(b) <I>By-product material (general).</I> By-product material from which alcohol can be recovered shall not be sold or transferred unless the alcohol has been removed or an approved substance has been added to prevent recovery of residual alcohol. Material from which alcohol can be recovered may also be destroyed on the manufacturer's premises by a suitable method. Except as provided in paragraph (c) of this section, prior written approval shall be obtained from the appropriate TTB officer as to the adequacy, under this section, of any substance proposed to be added to prevent recovery of alcohol, or of any proposed method of destruction.
</P>
<P>(c) <I>Spent vanilla beans.</I> Specific approval from the appropriate TTB officer is not required when spent vanilla beans containing residual alcohol are destroyed on the manufacturer's premises by burning, or when they are removed from those premises after treatment with sufficient kerosene, mineral spirits, rubber hydrocarbon solvent, or gasoline to prevent recovery of residual alcohol.


</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 17.184" NODE="27:1.0.1.1.13.9.55.4" TYPE="SECTION">
<HEAD>§ 17.184   Distilled spirits container marks.</HEAD>
<P>All marks required by part 19 of this chapter shall remain on containers of taxpaid distilled spirits until the contents are emptied. Whenever such a container is emptied, such marks shall be completely obliterated.
</P>
<SECAUTH TYPE="N">(Sec. 454, Pub. L. 98-369, 98 Stat. 820 (26 U.S.C. 5206(d)))


</SECAUTH>
</DIV8>


<DIV8 N="§ 17.185" NODE="27:1.0.1.1.13.9.55.5" TYPE="SECTION">
<HEAD>§ 17.185   Requirements for intermediate products and unfinished nonbeverage products.</HEAD>
<P>(a) <I>General.</I> Self-manufactured ingredients made with taxpaid spirits may be accounted for either as intermediate products or as unfinished nonbeverage products. The manufacturer may choose either method of accounting for such self-manufactured ingredients (see § 17.127). However, the method selected determines the requirements that will apply to those ingredients, as prescribed in paragraphs (b) and (c) of this section.
</P>
<P>(b) <I>Intermediate products.</I> Intermediate products shall be used exclusively in the manufacture of nonbeverage products. Intermediate products may be accumulated and stored indefinitely and may be used in any nonbeverage product whose formula calls for such use. Intermediate products shall be manufactured by the same entity that manufactures the finished nonbeverage products. Intermediate products shall not be sold or transferred between separate and distinct entities. However, they may be transferred to another branch or plant of the same manufacturer, for use there in the manufacture of approved nonbeverage products. (See § 17.169 for recordkeeping requirement.) For the purposes of this section, the phrase “separate and distinct entities” includes parent and subsidiary corporations, regardless of any corporate (or other) relationship, and even if the stock of both the manufacturing firm and the receiving firm is owned by the same persons.
</P>
<P>(c) <I>Unfinished nonbeverage products.</I> An unfinished nonbeverage product shall only be used in the particular nonbeverage product for which it was manufactured, and shall be entirely so used within the time limit stated in the approved TTB Form 5154.1. Spirits dissipated or recovered in the manufacture of unfinished nonbeverage products shall be regarded as having been dissipated or recovered in the manufacture of nonbeverage products. Spirits contained in such unfinished products shall be accounted for in the supporting data under § 17.147 and inventoried under § 17.167 as “in process” in nonbeverage products. Production of unfinished nonbeverage products shall be recorded as an integral part of the production records for the related nonbeverage products. Unfinished nonbeverage products shall not be transferred to other premises.


</P>
</DIV8>


<DIV8 N="§ 17.186" NODE="27:1.0.1.1.13.9.55.6" TYPE="SECTION">
<HEAD>§ 17.186   Transfer of distilled spirits to other containers.</HEAD>
<P>A manufacturer may transfer taxpaid distilled spirits from the original package to other containers at any time for the purpose of facilitating the manufacture of products unfit for beverage use. Containers into which distilled spirits have been transferred under this section shall bear a label identifying their contents as taxpaid distilled spirits, and shall be marked with the serial number of the original package from which the spirits were withdrawn.


</P>
</DIV8>


<DIV8 N="§ 17.187" NODE="27:1.0.1.1.13.9.55.7" TYPE="SECTION">
<HEAD>§ 17.187   Discontinuance of business.</HEAD>
<P>The manufacturer shall notify TTB when business is to be discontinued. Upon discontinuance of business, a manufacturer's entire stock of taxpaid distilled spirits on hand may be sold in a single sale without the necessity of qualifying as a wholesaler under part 1 of this chapter or registering and keeping records as a liquor dealer under part 31 of this chapter.The spirits likewise may be returned to the person from whom purchased, or they may be destroyed or given away.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-25, 70 FR 19882, Apr. 15, 2005; T.D. TTB-79, 74 FR 37402, July 28, 2009]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="18" NODE="27:1.0.1.1.14" TYPE="PART">
<HEAD>PART 18—PRODUCTION OF VOLATILE FRUIT-FLAVOR CONCENTRATE
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5001, 5171-5173, 5178, 5179, 5203, 5351, 5354, 5356, 5511, 5552, 6065, 6109, 7805.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-104, 47 FR 23921, June 2, 1982, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 18 appear by T.D. ATF-436, 66 FR 5471, 5472, Jan. 19, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.14.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 18.1" NODE="27:1.0.1.1.14.1.58.1" TYPE="SECTION">
<HEAD>§ 18.1   Scope.</HEAD>
<P>The regulations in this part relate to the qualification and operation (including activities incident thereto) of plants for the manufacture of volatile fruit-flavor concentrate (essence). The regulations in this part apply to the several States of the United States and the District of Columbia.


</P>
</DIV8>


<DIV8 N="§ 18.2" NODE="27:1.0.1.1.14.1.58.2" TYPE="SECTION">
<HEAD>§ 18.2   Applicability of law.</HEAD>
<P>Except as specified in 26 U.S.C. 5511, the provisions of 26 U.S.C. Chapter 51 are not applicable to the manufacture, by any process which includes evaporations from the mash or juice of any fruit, of any volatile fruit-flavor concentrate if:
</P>
<P>(a) The concentrate, and the mash or juice from which it is produced, contains no more alcohol than is reasonably unavoidable in the manufacture of the concentrate; and
</P>
<P>(b) The concentrate is rendered unfit for use as a beverage before removal from the place of manufacture, or (in the case of concentrate which does not exceed 24 percent alcohol by volume) the concentrate is transferred to a bonded wine cellar for use in the production of natural wine; and
</P>
<P>(c) The manufacturer of concentrate complies with all requirements for the protection of the revenue with respect to the production, removal, sale, transportation, and use of concentrate, and of the mash or juice from which it is produced, as may be prescribed by this part.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1392, as amended (26 U.S.C. 5511))


</SECAUTH>
</DIV8>


<DIV8 N="§ 18.3" NODE="27:1.0.1.1.14.1.58.3" TYPE="SECTION">
<HEAD>§ 18.3   Unlawful operations.</HEAD>
<P>(a) A manufacturer of concentrate who violates any of the conditions stated in § 18.2 is subject to the taxes and penalties otherwise applicable under 26 U.S.C. Chapter 51 in respect to such operations.
</P>
<P>(b) Any person who sells, transports, or uses any concentrate or the mash or juice from which it is produced in violation of law or regulations is subject to all the provisions of 26 U.S.C. Chapter 51 pertaining to distilled spirits and wines, including those requiring the payment of the tax thereon.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.14.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 18.11" NODE="27:1.0.1.1.14.2.58.1" TYPE="SECTION">
<HEAD>§ 18.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.18, Delegation of the Administrator's Authorities in 27 CFR Part 18, Production of Volatile Fruit-Flavor Concentrate.
</P>
<P><I>Bonded wine cellar.</I> Premises established under 27 CFR part 24 for the production, blending, cellar treatment, storage, bottling, or packaging of untaxpaid wine, and includes premises designated as “bonded winery.”
</P>
<P><I>Concentrate.</I> Any volatile fruit-flavor concentrate (essence) produced by any process which includes evaporations from any fruit mash or juice.
</P>
<P><I>Concentrate plant.</I> An establishment qualified under this part for the production of concentrate.
</P>
<P><I>Distilled spirits plant.</I> An establishment qualified under 27 CFR part 19, excluding alcohol fuel plants, for producing, warehousing, or processing distilled spirits (including denatured distilled spirits). 
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the application, report, form, or other document or, where no form of declaration is prescribed, with the declaration: “I declare under the penalties of perjury that this __________ (insert type of document, such as application or report), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct and complete.”
</P>
<P><I>Fold.</I> The ratio of the volume of the fruit mash or juice to the volume of the concentrate produced from the fruit mash or juice. For example, one gallon of concentrate of 100-fold would be the product from 100 gallons of fruit mash or juice.
</P>
<P><I>Fruit.</I> All products commonly known and classified as fruit, berries, or grapes.
</P>
<P><I>Fruit mash.</I> Any unfermented mixture of juice, pulp, skins, and seeds prepared from fruit, berries, or grapes.
</P>
<P><I>High-proof concentrate.</I> For the purposes of this part, “high-proof concentrate” means a concentrate (essence), as defined in this section, that has an alcohol content of more than 24 percent by volume and is unfit for beverage use (nonpotable) because of its natural constituents, i.e. without the addition of other substances.
</P>
<P><I>Juice.</I> The unfermented juice (concentrated or unconcentrated) of fruit, berries, or grapes, exclusive of pulp, skins, or seeds.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company, or corporation.
</P>
<P><I>Processing material.</I> The fruit mash or juice from which concentrate is produced.
</P>
<P><I>Proprietor.</I> A person qualified under this part to operate a concentrate plant.
</P>
<P><I>Registry number.</I> The number assigned to a concentrate plant or a bonded wine cellar for an approved application as required by Parts 18 and 24, respectively.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-299, 55 FR 24989, June 19, 1990; T.D. ATF-436, 66 FR 5471, Jan. 19, 2001; T.D. ATF-455, 66 FR 29482, May 31, 2001; T.D. TTB-44, 71 FR 16927, Apr. 4, 2006]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.14.3" TYPE="SUBPART">
<HEAD>Subpart C—Administrative and Miscellaneous Provisions</HEAD>


<DIV8 N="§ 18.12" NODE="27:1.0.1.1.14.3.58.1" TYPE="SECTION">
<HEAD>§ 18.12   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.18, Delegation of the Administrator's Authorities in 27 CFR Part 18, Production of a Volatile Fruit-Flavor Concentrate. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16927, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.13" NODE="27:1.0.1.1.14.3.58.2" TYPE="SECTION">
<HEAD>§ 18.13   Alternate methods or procedures.</HEAD>
<P>(a) <I>General.</I> The proprietor, on specific approval by the appropriate TTB officer, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. The appropriate TTB officer may approve an alternate method or procedure, subject to stated conditions, when that officer finds that:
</P>
<P>(1) Good cause has been shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by the specifically prescribed method or procedure, and affords equivalent security to the revenue; and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law, and will not result in an increase in cost to the Government or hinder the effective administration of this part.
</P>
<P>(b) <I>Application.</I> A proprietor who desires to employ an alternate method or procedure shall submit a written application to the appropriate TTB officer. The application will specifically describe the proposed alternate method or procedure and set forth the reasons therefor. Alternate methods or procedures may not be employed until the application has been approved by the appropriate TTB officer. Authorization for any alternate method or procedure may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered by the continuation of the authorization.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. ATF-436, 66 FR 5471, Jan. 19, 2001; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.14" NODE="27:1.0.1.1.14.3.58.3" TYPE="SECTION">
<HEAD>§ 18.14   Emergency variations from requirements.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may approve emergency variations from requirements specified in this part, where the appropriate TTB officer finds that an emergency exists, the proposed variations are necessary, and the proposed variations:
</P>
<P>(1) Will afford the security and protection to the revenue intended by the prescribed specifications;
</P>
<P>(2) Will not hinder the effective administration of this part; and
</P>
<P>(3) Will not be contrary to any provision of law.
</P>
<FP>Variations from requirements granted under this section are conditioned on compliance with the procedures, conditions, and limitations stated in the approval of the application. Failure to comply in good faith with such procedures, conditions and limitations will automatically terminate the authority for such variations and the proprietor thereupon shall fully comply with the prescribed requirements of regulations from which the variations were authorized. Authority for any variation may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered by the continuation of such variation.
</FP>
<P>(b) <I>Application.</I> A proprietor who desires to employ emergency variations shall submit a written application to the appropriate TTB officer. The application will describe the proposed variations and set forth the reasons therefor. Variations will not be employed until the application has been approved, except when an emergency requires immediate action to correct a situation that is threatening to life or property. Such corrective action may then be taken concurrent with the filing of the application and notification of the appropriate TTB officer via telephone.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.15" NODE="27:1.0.1.1.14.3.58.4" TYPE="SECTION">
<HEAD>§ 18.15   Right of entry and examination.</HEAD>
<P>Appropriate TTB officers may at all times, as well by night as by day, enter any concentrate plant to make examination of the materials, equipment, and facilities thereon; and make such gauges and inventories as they deem necessary. Whenever appropriate TTB officers, having demanded admittance and declared their name and office, are not admitted into such premises by the proprietor or other person having charge thereof, they may at all times use such force as is necessary for them to gain entry to such premises.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1357, as amended, 1392, as amended (26 U.S.C. 5203, 5511))


</SECAUTH>
</DIV8>


<DIV8 N="§ 18.16" NODE="27:1.0.1.1.14.3.58.5" TYPE="SECTION">
<HEAD>§ 18.16   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form will be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form will be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-249, 52 FR 5960, Feb. 27, 1987; T.D. 372, 61 FR 20723, May 8, 1996; T.D. ATF-436, 66 FR 5472, Jan. 19, 2001; T.D. TTB-44, 71 FR 16927, Apr. 4, 2006; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV7 N="58" NODE="27:1.0.1.1.14.3.58" TYPE="SUBJGRP">
<HEAD>Document Requirements</HEAD>


<DIV8 N="§ 18.17" NODE="27:1.0.1.1.14.3.58.6" TYPE="SECTION">
<HEAD>§ 18.17   Retention of documents.</HEAD>
<P>The proprietor shall maintain a file of all approved applications and other documents, on or convenient to the concentrate plant premises, available for inspection by appropriate TTB officers.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.18" NODE="27:1.0.1.1.14.3.58.7" TYPE="SECTION">
<HEAD>§ 18.18   Execution under penalties of perjury.</HEAD>
<P>When a form or other document called for under this part is required to be executed under penalties of perjury, it will be so executed, as defined in § 18.11, and signed by an authorized person.
</P>
<SECAUTH TYPE="N">(Act of August 16, 1954, Pub. L. 591, Chapter 736, 68A Stat. 749 (26 U.S.C. 6065))


</SECAUTH>
</DIV8>


<DIV8 N="§ 18.19" NODE="27:1.0.1.1.14.3.58.8" TYPE="SECTION">
<HEAD>§ 18.19   Security.</HEAD>
<P>The concentrate plant and equipment will be so constructed, arranged, equipped, and protected as to afford adequate protection to the revenue and facilitate inspection by appropriate TTB officers.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.14.4" TYPE="SUBPART">
<HEAD>Subpart D—Qualification</HEAD>


<DIV8 N="§ 18.21" NODE="27:1.0.1.1.14.4.59.1" TYPE="SECTION">
<HEAD>§ 18.21   General.</HEAD>
<P>A person who desires to engage in the business of manufacturing concentrate shall submit an application for registration on form TTB F 5520.3 and receive approval as provided in this part. All written statements, affidavits, and other documents submitted in support of the application or incorporated by reference are deemed a part thereof.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov, 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.22" NODE="27:1.0.1.1.14.4.59.2" TYPE="SECTION">
<HEAD>§ 18.22   Restrictions as to location and use.</HEAD>
<P>(a) <I>Restrictions.</I> A concentrate plant may not be established in any dwelling house or on board any vessel or boat, or on any premises where any other business is conducted. The premises of a concentrate plant may be used only for the business stated in the approved application for registration.
</P>
<P>(b) <I>Exceptions.</I> The appropriate TTB officer may authorize (1) the establishment of a concentrate plant on premise where other business is conducted, or (2) the use of the premises of a concentrate plant for other business. A person or proprietor desiring such authorization shall submit a written application to the appropriate TTB officer. The application will describe the other business by type and the premises to be used. If the premises of a concentrate plant are to be used for other business, the relationship (if any) to the concentrate plant will be described in the application. A concentrate plant may not be established on premises where other business is conducted or used to conduct other business until the application is approved. The appropriate TTB officer may decline to approve the application or withdraw the authorization if the revenue is jeopardized or the effective administration of this part is hindered.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.23" NODE="27:1.0.1.1.14.4.59.3" TYPE="SECTION">
<HEAD>§ 18.23   Registry of stills.</HEAD>
<P>The provisions of subpart C of part 29 of this chapter are applicable to stills or distilling apparatus located on concentrate plant premises used for the production of concentrate. As provided under § 29.55, the listing of a still in the application, and approval of the application, constitutes registration of the still.
</P>
<SECAUTH TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-207, 50 FR 23681, June 5, 1985, as amended by T.D. ATF-462, 66 FR 42736, Aug. 15, 2001; T.D. TTB-196, 89 FR 87938, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV7 N="59" NODE="27:1.0.1.1.14.4.59" TYPE="SUBJGRP">
<HEAD>Application</HEAD>


<DIV8 N="§ 18.24" NODE="27:1.0.1.1.14.4.59.4" TYPE="SECTION">
<HEAD>§ 18.24   Data for application.</HEAD>
<P>Applications on form TTB F 5520.3 will include the following:
</P>
<P>(a) Serial number;
</P>
<P>(b) Name and principal business address of the applicant, and the location of the plant if different from the business address;
</P>
<P>(c) Purpose for which filed;
</P>
<P>(d) Information regarding proprietorship, supported by the organizational documents listed in § 18.25; and
</P>
<P>(e) Description of each still and a statement of its maximum capacity.
</P>
<FP>Where any of the information required by this section is on file with the appropriate TTB officer, that information, if accurate and complete, may be incorporated by reference by the applicant and made a part of the application.
</FP>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.25" NODE="27:1.0.1.1.14.4.59.5" TYPE="SECTION">
<HEAD>§ 18.25   Organizational documents.</HEAD>
<P>The supporting information required by paragraph (d) of § 18.24 includes, as applicable:
</P>
<P>(a) Extracts from the articles of incorporation or from the minutes of meetings of the board of directors, authorizing the incumbents of certain offices, or other persons, to sign for the corporation;
</P>
<P>(b) Names and addresses of the officers and directors (Do not list officers and directors who have no responsibility in connection with the operation of the concentrate plant.);
</P>
<P>(c) Names and addresses of the 10 persons having the largest ownership or other interest in the corporation or other entity, and the nature and amount of the stockholding or other interest of each, whether the interest appears in the name of the interested party or in the name of another for that party; and
</P>
<P>(d) In the case of an individual owner or a partnership, the name and address of every person interested in the concentrate plant, whether the interest appears in the name of the interested party or in the name of another for that party.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)


</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. TTB-196, 89 FR 87937, 87938, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 18.26" NODE="27:1.0.1.1.14.4.59.6" TYPE="SECTION">
<HEAD>§ 18.26   Powers of attorney.</HEAD>
<P>The proprietor shall execute and file a power of attorney on form TTB F 5000.8 for every person authorized to sign or to act on behalf of the proprietor. (Not required for persons whose authority is furnished in the application.)
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0014)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.27" NODE="27:1.0.1.1.14.4.59.7" TYPE="SECTION">
<HEAD>§ 18.27   Additional requirements.</HEAD>
<P>(a) The appropriate TTB officer, to protect the revenue, may require:
</P>
<P>(1) Additional information in support of an application for registration;
</P>
<P>(2) Marks on major equipment to show serial number, capacity, and use;
</P>
<P>(3) Installation of meters, tanks, pipes, or other apparatus; and
</P>
<P>(4) Installation of security devices.
</P>
<P>(b) Any proprietor refusing or neglecting to comply with any requirement of this section shall not be permitted to operate.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1353, as amended, 1395, as amended (26 U.S.C. 5172, 5178, 5552))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="60" NODE="27:1.0.1.1.14.4.60" TYPE="SUBJGRP">
<HEAD>Changes After Original Establishment</HEAD>


<DIV8 N="§ 18.31" NODE="27:1.0.1.1.14.4.60.8" TYPE="SECTION">
<HEAD>§ 18.31   General requirements.</HEAD>
<P>Where there is a change with respect to the information shown in the application, the proprietor shall submit, within 30 days of the change (except as otherwise provided in this part), an amended application on form TTB F 5520.3.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1392, as amended (26 U.S.C. 5511))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.32" NODE="27:1.0.1.1.14.4.60.9" TYPE="SECTION">
<HEAD>§ 18.32   Change in name.</HEAD>
<P>The proprietor shall submit an amended application to cover any change in the individual, firm, or corporate name.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.33" NODE="27:1.0.1.1.14.4.60.10" TYPE="SECTION">
<HEAD>§ 18.33   Change in location.</HEAD>
<P>The proprietor shall submit an amended application to cover a change in the location of a concentrate plant. Operation of the concentrate plant may not be commenced at the new location prior to approval of the amended application.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.34" NODE="27:1.0.1.1.14.4.60.11" TYPE="SECTION">
<HEAD>§ 18.34   Continuing partnerships.</HEAD>
<P>If, under the laws of the particular State, the partnership is not immediately terminated on death or insolvency of a partner, but continues until the winding up of the partnership affairs is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, the surviving partner may continue to operate the plant under the prior qualification of the partnership. If the surviving partner acquires the business on completion of the settlement of the partnership, such partner shall qualify in their own name from the date of acquisition, as provided in § 18.35. The rule set forth in this section also applies where there is more than one surviving partner.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-91, 76 FR 5477, Feb. 1, 2011; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.35" NODE="27:1.0.1.1.14.4.60.12" TYPE="SECTION">
<HEAD>§ 18.35   Change in proprietorship.</HEAD>
<P>(a) <I>General.</I> If there is a change in the proprietorship of a concentrate plant, the outgoing proprietor shall comply with the requirements of § 18.38, and the successor shall, before commencing operations, file application and receive approval in the same manner as a person qualifying as the proprietor of a new concentrate plant. Processing material, concentrate and other materials may be transferred from an outgoing proprietor to a successor.
</P>
<P>(b) <I>Fiduciary.</I> A successor to the proprietorship of a concentrate plant who is an administrator, executor, receiver, trustee, assignee, or other fiduciary shall comply with the provisions of paragraph (a) of this section. If the fiduciary was appointed by a court, the effective dates of the qualifying documents filed by the fiduciary shall be the effective date of the court order, or the date specified therein for the fiduciary to assume control. If the fiduciary was not appointed by a court, the date the fiduciary assumes control shall coincide with the effective date of the qualifying documents filed by the fiduciary.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.36" NODE="27:1.0.1.1.14.4.60.13" TYPE="SECTION">
<HEAD>§ 18.36   Change in officers and directors.</HEAD>
<P>The proprietor shall submit an amended application to cover changes in the list of officers and directors furnished under the provisions of § 18.25.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.37" NODE="27:1.0.1.1.14.4.60.14" TYPE="SECTION">
<HEAD>§ 18.37   Change in stockholders.</HEAD>
<P>The proprietor shall submit changes in the list of stockholders furnished under the provisions of § 18.25 annually on May 1. When the sale or transfer of capital stock results in a change of control or management of the business, the proprietor shall comply with the provisions of § 18.35.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6. 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.38" NODE="27:1.0.1.1.14.4.60.15" TYPE="SECTION">
<HEAD>§ 18.38   Permanent discontinuance.</HEAD>
<P>A proprietor who permanently discontinues the business of a concentrate manufacturer shall, after completion of operations, file an application on form TTB F 5520.3 to cover such discontinuance, giving the date of the discontinuance.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.39" NODE="27:1.0.1.1.14.4.60.16" TYPE="SECTION">
<HEAD>§ 18.39   Qualification to alternate a volatile fruit-flavor concentrate plant and a distilled spirits plant.</HEAD>
<P>A proprietor of a volatile fruit-flavor concentrate plant operating a contiguous distilled spirits plant may alternate the use of such premises between the two functions through extension and curtailment by filing with the appropriate TTB officer the following information: 



 </P>
<P>(a) Forms TTB F 5520.3 and TTB F 5110.41 to cover the proposed alternation of premises;
</P>
<P>(b) A special diagram, in duplicate, delineating the premises as they will exist, both during extension and curtailment and clearly depicting all buildings, floors, rooms, areas, equipment and pipe lines (identified individually by letter or number) which are to be subject to alternation, in their relative operating sequence; and 
</P>
<P>(c) A bond (TTB F 5110.56) or a consent of surety (TTB F 5000.18) to cover the proposed alternation of premises if the proprietor is required to hold a bond under § 19.151 of this chapter to cover the distilled spirits plant premises subject to alternation.


</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0006, 1513-0013, 1513-0048, and 1513-0125)
</APPRO>
<CITA TYPE="N">[T.D. ATF-455, 66 FR 29482, May 31, 2001, as amended by T.D. TTB-146, 82 FR 1119, Jan. 4, 2017; T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.40" NODE="27:1.0.1.1.14.4.60.17" TYPE="SECTION">
<HEAD>§ 18.40   Qualification to alternate volatile fruit-flavor concentrate plant and bonded wine cellar.</HEAD>
<P>A proprietor of a volatile fruit-flavor concentrate plant operating a contiguous bonded wine cellar may alternate the use of each premise by extension and curtailment by filing with the appropriate TTB officer the following information: 
</P>
<P>(a) Forms TTB F 5520.3 and TTB F 5120.25 to cover the proposed alternation of premises;
</P>
<P>(b) A special diagram, in duplicate, delineating the premises as they will exist, both during extension and curtailment and clearly depicting all buildings, floors, rooms, areas, equipment and pipe lines (identified individually by letter or number) which are to be subject to alternation, in their relative operating sequence; and 
</P>
<P>(c) A bond (TTB F 5120.36) or a consent of surety (TTB F 5000.18) to cover the proposed alternation of premises if the proprietor is required to hold a bond under § 24.146 of this chapter to cover the bonded wine cellar premises subject to alternation.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0006, 1513-0009, and 1513-0013)


</APPRO>
<CITA TYPE="N">[T.D. ATF-455, 66 FR 29482, May 31, 2001, as amended by T.D. TTB-146, 82 FR 1119, Jan. 4, 2017; T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.41" NODE="27:1.0.1.1.14.4.60.18" TYPE="SECTION">
<HEAD>§ 18.41   Separation of premises.</HEAD>
<P>The appropriate TTB officer may specify additional means of separating the volatile fruit-flavor concentrate plant from a distilled spirits plant or bonded wine cellar premises.
</P>
<CITA TYPE="N">[T.D. ATF-455, 66 FR 29482, May 31, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 18.42" NODE="27:1.0.1.1.14.4.60.19" TYPE="SECTION">
<HEAD>§ 18.42   Record of alternation.</HEAD>
<P>After approval of the qualifying documents for the alternation of premises, the proprietor must execute a record each time that the premises are alternated. The record will contain the following information: 
</P>
<P>(a) Identification assigned by TTB, including the plant or registry number, of the volatile fruit-flavor concentrate plant and the distilled spirits plant or bonded wine cellar; 
</P>
<P>(b) Effective date and time of proposed change; and 
</P>
<P>(c) Description of the alternation that identifies the diagrams depicting the premises before and after the alternation. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-455, 66 FR 29482, May 31, 2001, as amended by T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.43" NODE="27:1.0.1.1.14.4.60.20" TYPE="SECTION">
<HEAD>§ 18.43   Conditions of alternation.</HEAD>
<P>(a) <I>Curtailment of volatile fruit-flavor concentrate plant.</I> The proprietor must remove all concentrate, fruit mash, and juice from the volatile fruit-flavor concentrate plant alternated to a distilled spirits plant or to a bonded wine cellar premises, unless such concentrate, fruit mash, or juice is being simultaneously transferred to the distilled spirits plant or bonded wine cellar premises. 
</P>
<P>(b) <I>Extension of volatile fruit-flavor concentrate premises and curtailment of distilled spirits plant.</I> The proprietor must remove all spirits, denatured spirits, articles and wine, except for concentrate, fruit mash, or juice that is being simultaneously transferred to the volatile fruit-flavor concentrate plant. 
</P>
<P>(c) <I>Extension of volatile fruit-flavor concentrate premises and curtailment of bonded wine cellar premises.</I> The proprietor must remove all wine and spirits from the alternated bonded wine cellar premises, except for concentrate, fruit mash, or juice that is being simultaneously transferred to the volatile fruit-flavor concentrate plant.
</P>
<CITA TYPE="N">[T.D. ATF-455, 66 FR 29482, May 31, 2001]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.14.5" TYPE="SUBPART">
<HEAD>Subpart E—Operations</HEAD>


<DIV8 N="§ 18.51" NODE="27:1.0.1.1.14.5.61.1" TYPE="SECTION">
<HEAD>§ 18.51   Processing material.</HEAD>
<P>(a) <I>General.</I> A proprietor may produce processing material or receive processing material produced elsewhere. Fermented processing material may not be used in the manufacture of concentrate. Processing material may be used if it contains no more alcohol than is reasonably unavoidable, and must be used when produced, or as soon thereafter as practicable.
</P>
<P>(b) <I>Record of processing material.</I> A proprietor shall maintain a record, by kind and quantity, of processing material used.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0022)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov.6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.52" NODE="27:1.0.1.1.14.5.61.2" TYPE="SECTION">
<HEAD>§ 18.52   Production of high-proof concentrate.</HEAD>
<P>(a) <I>General.</I> High-proof concentrate may be produced in a concentrate plant. Concentrate having an alcohol content of more than 24 percent by volume that is fit for beverage use may not be produced in a concentrate plant.
</P>
<P>(b) <I>Determination.</I> A proprietor shall determine whether a particular concentrate is a high-proof concentrate. However, a proprietor may at any time submit a written request to the appropriate TTB officer for a determination of whether a concentrate is unfit for beverage use. Each request for a determination will include information as to kind, percent alcohol by volume, and fold of the concentrate. The request will be accompanied by a representative 8-ounce sample of the concentrate.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0006)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.53" NODE="27:1.0.1.1.14.5.61.3" TYPE="SECTION">
<HEAD>§ 18.53   Use of concentrate.</HEAD>
<P>Concentrate may be used in the manufacture of any product made in the conduct of another business authorized to be conducted on concentrate plant premises under the provisions of § 18.22, if such product contains less than one-half of one percent of alcohol by volume.


</P>
</DIV8>


<DIV8 N="§ 18.54" NODE="27:1.0.1.1.14.5.61.4" TYPE="SECTION">
<HEAD>§ 18.54   Transfer of concentrate.</HEAD>
<P>(a) <I>Concentrate unfit for beverage use.</I> Concentrate (including high-proof concentrate and concentrate treated as provided in paragraph (c) of this section) unfit for beverage use may be transferred for any purpose authorized by law.
</P>
<P>(b) <I>Concentrate fit for beverage use.</I> Concentrate fit for beverage use may be transferred only to a bonded wine cellar. If such concentrate is rendered unfit for beverage use, it may be transferred as provided in paragraph (a) of this section.
</P>
<P>(c) <I>Rendering concentrate unfit for beverage use.</I> Concentrate may be rendered unfit for beverage use by reducing the alcohol content to not more than 15 percent alcohol by volume (if the reduction does not result in a concentrate of less than 100-fold), and adding to each gallon thereof, in a quantity sufficient to render the concentrate unfit for beverage use, the following:
</P>
<P>(1) Sucrose; or
</P>
<P>(2) Concentrated fruit juice, of at least 70 Brix, made from the same kind of fruit as the concentrate; or
</P>
<P>(3) Malic, citric, or tartaric acid.
</P>
<P>(d) <I>Record of transfer.</I> The proprietor shall record transfers of concentrate (including high-proof concentrate) on a record of transfer as required in §§ 18.62 or 18.63.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0022)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196 , 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.55" NODE="27:1.0.1.1.14.5.61.5" TYPE="SECTION">
<HEAD>§ 18.55   Label.</HEAD>
<P>Each container of concentrate will have affixed thereto, before transfer, a label identifying the product and showing (a) the name of the proprietor; (b) the registry number of the plant; (c) the address of the plant; (d) the number of wine gallons; and (e) the percent of alcohol by volume.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0022)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.56" NODE="27:1.0.1.1.14.5.61.6" TYPE="SECTION">
<HEAD>§ 18.56   Receipt of concentrate.</HEAD>
<P>(a) <I>General.</I> The proprietor of a concentrate plant may accept the return of concentrate that the proprietor shipped. In addition, concentrate that is unfit for beverage use may be received from another concentrate plant for further processing in accordance with this part. 
</P>
<P>(b) <I>Record of concentrate received.</I> When concentrate is received, the proprietor must record the receipt, including the name of the consignor and a notation regarding any loss in transit or other discrepancy. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0022) 
</APPRO>
<CITA TYPE="N">[T.D. ATF-455, 66 FR 29482, May 31, 2001, as amended by T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.14.6" TYPE="SUBPART">
<HEAD>Subpart F—Records and Reports</HEAD>


<DIV8 N="§ 18.61" NODE="27:1.0.1.1.14.6.61.1" TYPE="SECTION">
<HEAD>§ 18.61   Records and reports.</HEAD>
<P>(a) <I>General.</I> Each proprietor shall keep records and reports as required by this part. These records and reports will be maintained on or convenient to the concentrate plant and will be available for inspection by appropriate TTB officers during business hours. Records and reports will be retained by the proprietor for three years from the date they were prepared, or three years from the date of the last entry, whichever is later.
</P>
<P>(b) <I>Records.</I> (1) Each proprietor shall keep such records relating to or connected with the production, transfer, or return of concentrate and the juice or mash from which it is produced, as will:
</P>
<P>(i) Enable any appropriate TTB officer to verify operations and to ascertain whether there has been compliance with law and regulations; and
</P>
<P>(ii) Enable the proprietor to prepare Form 1695 (5520.2).
</P>
<P>(2) A proprietor need not prepare a specific record to meet the record requirements of this part. Any book, paper, invoice, bill of lading, or similar document that the proprietor prepares or receives for other purposes may be used, if all required information is shown.




</P>
<P>(c) <I>Reports.</I> Each proprietor shall prepare and submit reports (including applications) as required by this part.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0022)
</APPRO>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.62" NODE="27:1.0.1.1.14.6.61.2" TYPE="SECTION">
<HEAD>§ 18.62   Record of transfer.</HEAD>
<P>When concentrate, juice, or fruit mash is transferred from the concentrate plant premises, the proprietor shall prepare, in duplicate, a record of transfer. The record of transfer may consist of a commercial invoice, bill of lading, or any other similar document. The proprietor shall forward the original of the record of transfer to the consignee and retain the copy as a record. Each record of transfer shall show the following information:
</P>
<P>(a) Name, registry number, and address of the concentrate plant;
</P>
<P>(b) Name and address of the consignee;
</P>
<P>(c) Kind (by fruit from which produced) and description of product, e.g. grape concentrate, concentrated grape juice, unconcentrated grape juice, grape mash;
</P>
<P>(d) Quantity (in wine gallons); and
</P>
<P>(e) For concentrate, percent of alcohol by volume.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0022)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1392, as amended (26 U.S.C. 5511))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.63" NODE="27:1.0.1.1.14.6.61.3" TYPE="SECTION">
<HEAD>§ 18.63   Record of transfer to a bonded wine cellar.</HEAD>
<P>A proprietor transferring concentrate, juice, or fruit mash to a bonded wine cellar shall prepare a record of transfer as required by § 18.62 and enter the following additional information:
</P>
<P>(a) Registry number of the bonded wine cellar;
</P>
<P>(b) For each product manufactured from grapes or berries, variety of grape or berry;
</P>
<P>(c) For concentrate, fold;
</P>
<P>(d) For juice and fruit mash, whether volatile fruit flavor has been removed and, if so, whether the identical volatile fruit flavor has been restored; and
</P>
<P>(e) For concentrated juice, total solids content before and after concentration.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0022)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1392, as amended (26 U.S.C. 5511))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. ATF-381, 61 FR 37003, July 16, 1996; T.D. TTB-196, 89 FR 87937, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 18.64" NODE="27:1.0.1.1.14.6.61.4" TYPE="SECTION">
<HEAD>§ 18.64   Photographic copies of records.</HEAD>
<P>Proprietors may record, copy, or reproduce records required by this part by any process which accurately reproduces or forms a durable medium for reproducing the original of records. Whenever records are reproduced under this section, the reproduced records will be preserved in conveniently accessible files, and provisions will be made for examining, viewing, and using the reproduced record the same as if it were the original record. The reproduced record will be treated and considered for all purposes as though it were the original record. All provisions of law and regulation applicable to the original record are applicable to the reproduced record.


</P>
</DIV8>


<DIV8 N="§ 18.65" NODE="27:1.0.1.1.14.6.61.5" TYPE="SECTION">
<HEAD>§ 18.65   Annual report.</HEAD>
<P>An annual report, on form TTB F 5520.2, of concentrate plant operations shall be prepared by each proprietor and forwarded in accordance with the instructions for the form. When a proprietor permanently discontinues the business of manufacturing concentrate, the proprietor shall submit the annual report in accordance with the instructions for the form.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0022).


</APPRO>
<CITA TYPE="N">[T.D. ATF-436, 66 FR 5472, Jan. 19, 2001, as amended by  T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="19" NODE="27:1.0.1.1.15" TYPE="PART">
<HEAD>PART 19—DISTILLED SPIRITS PLANTS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114, 5121-5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 19.0" NODE="27:1.0.1.1.15.0.159.1" TYPE="SECTION">
<HEAD>§ 19.0   Scope.</HEAD>
<P>This part concerns the operation of distilled spirits plants in the United States. Topics covered in this part include: Permits and registration procedures; bond requirements; payment of taxes; filing of claims; production, storage, and processing operations; and maintenance of records.


</P>
</DIV8>


<DIV6 N="A" NODE="27:1.0.1.1.15.1" TYPE="SUBPART">
<HEAD>Subpart A—General Provisions</HEAD>


<DIV8 N="§ 19.1" NODE="27:1.0.1.1.15.1.159.1" TYPE="SECTION">
<HEAD>§ 19.1   Definitions.</HEAD>
<P>As used in this part, the following terms shall have the meanings indicated unless either the context in which they are used requires a different meaning, or a different definition is prescribed for a particular subpart, section, or portion of this part:
</P>
<P><I>Accurate mass flow meter.</I> A mass flow meter for making volume determinations of bulk distilled spirits. A mass flow meter used for tax determination of bulk spirits must be certified by the manufacturer of the meter or other qualified person as accurate within a tolerance of plus or minus 0.1 percent. A mass flow meter used for all other required volume determinations of bulk spirits must be certified by the manufacturer of the meter or other qualified person as accurate within a tolerance of plus or minus 0.5 percent.
</P>
<P><I>Administrator.</I> The Administrator of the Alcohol and Tobacco Tax and Trade Bureau, the Department of the Treasury, Washington, D.C., or a delegate or designee of the Administrator.
</P>
<P><I>Alcoholic flavoring materials.</I> Any nonbeverage product on which drawback has been or will be claimed under 26 U.S.C. 5111-5114, and any flavor imported free of tax which is unfit for beverage purposes. This term includes eligible flavors but does not include flavorings or flavoring extracts manufactured on the bonded premises of a distilled spirits plant as an intermediate product.
</P>
<P><I>Application for registration.</I> The application for registration of a distilled spirits plant that is required by 26 U.S.C. 5171(c).
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.19, Delegation of the Administrator's Authorities in 27 CFR Part 19, Distilled Spirits Plants.
</P>
<P><I>Article.</I> A product containing denatured spirits, which was manufactured under this part or part 20 of this chapter.
</P>
<P><I>Bank.</I> Any commercial bank.
</P>
<P><I>Banking day.</I> Any day that a bank is open to the public to carry on substantially all of its banking functions.
</P>
<P><I>Basic permit.</I> The document that authorizes a person to engage in a designated business or activity under the Federal Alcohol Administration Act.
</P>
<P><I>Bond.</I> A bond is a formal guarantee for payment of monies due to TTB, including taxes imposed by 26 U.S.C. chapter 51, and any related fines, penalties or interest that the proprietor of a distilled spirits plant may incur, up to an amount specified by the bond (the bond “penal sum”).
</P>
<P><I>Bonded premises.</I> The premises of a distilled spirits plant, or part thereof, as described in the application for registration, on which the conduct of distilled spirits operations defined in 26 U.S.C. 5002 is authorized. This term includes premises described in the preceding sentence even if the proprietor, as authorized under the exemption set forth in § 19.151(d), has not provided a bond for the premises.
</P>
<P><I>Bottler.</I> A proprietor of a distilled spirits plant qualified under this part as a processor that bottles distilled spirits.
</P>
<P><I>Bulk container.</I> Any container approved by TTB having a capacity in excess of one wine gallon.
</P>
<P><I>Bulk conveyance.</I> A tank car, tank truck, tank ship, tank barge, or a compartment of any such conveyance, or any other container approved by the Administrator for the conveyance of comparable quantities of spirits, including denatured spirits and wines.
</P>
<P><I>Bulk distilled spirits.</I> Distilled spirits in a container having a capacity in excess of one wine gallon.
</P>
<P><I>Business day.</I> Any day, other than a Saturday, a Sunday, or a legal holiday (which includes any holiday in the District of Columbia and any statewide holiday in the particular State in which the claim, report, or return, as the case may be, is required to be filed, or the act is required to be performed).
</P>
<P><I>Calendar quarter and quarterly.</I> These terms refer to the 3-month periods ending on March 31, June 30, September 30, or December 31.
</P>
<P><I>Carrier.</I> Any person, company, corporation, or organization, including a proprietor, owner, consignor, consignee, or bailee, who transports distilled spirits, denatured spirits, or wine in any manner for itself or others.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Commercial bank.</I> A bank, whether or not a member of the Federal Reserve system, which has access to the Federal Reserve Communications System or Fedwire (a communications network that allows Federal Reserve system member banks to effect a transfer of funds for their customers (or other commercial banks) to the Treasury Account at the Federal Reserve Bank of New York).
</P>
<P><I>Container.</I> A receptacle, vessel, or form of bottle, can, package, tank or pipeline (where specifically included) used or capable of being used to contain, store, transfer, convey, remove, or withdraw spirits and denatured spirits.
</P>
<P><I>Denaturant or denaturing material.</I> Any material authorized by part 21 of this chapter for addition to spirits in the production of denatured spirits.
</P>
<P><I>Denatured spirits.</I> Spirits to which denaturants have been added as provided in part 21 of this chapter.
</P>
<P><I>Director of the service center.</I> A director of an Internal Revenue Service Center.
</P>
<P><I>Distilled spirits operations.</I> Any authorized distilling, warehousing, or processing operation conducted on the bonded premises of a plant qualified under this part.
</P>
<P><I>Distilled spirits plant.</I> An establishment which is qualified under this part to conduct distilled spirits operations.
</P>
<P><I>Distiller.</I> Any person who:
</P>
<P>(1) Produces distilled spirits from any source or substance;
</P>
<P>(2) Brews or makes mash, wort, or wash fit for distillation or for the production of distilled spirits (other than making or using of mash, wort, or wash in the authorized production of wine or beer, or in the production of vinegar by fermentation);
</P>
<P>(3) By any process separates alcoholic spirits from any fermented substance; or
</P>
<P>(4) Making or keeping mash, wort, or wash, has a still in his possession or use.
</P>
<P><I>Distilling material.</I> Any fermented or other alcoholic substance capable of, or intended for use in, the original distillation or other original processing of spirits.
</P>
<P><I>District director.</I> A district director of the Internal Revenue Service.
</P>
<P><I>Effective tax rate.</I> The net tax rate, after reduction for any credit allowable under 26 U.S.C. 5010 for wine and flavor content, at which the tax imposed on distilled spirits by 26 U.S.C. 5001 or 7652 is paid or determined.
</P>
<P><I>Electronic fund transfer or EFT.</I> Any transfer of funds effected by the proprietor's commercial bank, either directly or through a correspondent banking relationship, via the Federal Reserve Communications System or Fedwire to the Treasury Account at the Federal Reserve Bank of New York.
</P>
<P><I>Eligible flavor.</I> A flavor which:
</P>
<P>(1) Is of a type that is eligible for drawback of tax under 26 U.S.C. 5114;
</P>
<P>(2) Was not manufactured on the premises of a distilled spirits plant; and
</P>
<P>(3) Was not subjected to distillation on distilled spirits plant premises such that the flavor does not remain in the finished product.
</P>
<P><I>Eligible wine.</I> Wine on which tax would be imposed by paragraph (1), (2), or (3) of 26 U.S.C. 5041(b) but for its removal to distilled spirits plant premises and which has not been subject to distillation at a distilled spirits plant after receipt in bond.
</P>
<P><I>Export or exportation.</I> A separation of goods from the mass of goods belonging to the United States with the intention of uniting them with goods belonging to a foreign country or any possession of the United States, including the Commonwealth of Puerto Rico, the U.S. Virgin Islands, American Samoa, and Guam.
</P>
<P><I>Fermenting material.</I> Any material that will be subject to a process of fermentation in order to produce distilling material.
</P>
<P><I>Fiduciary.</I> A guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.
</P>
<P><I>Fiscal year.</I> The period October 1st of one calendar year through September 30th of the following calendar year.
</P>
<P><I>From bond.</I> When used with reference to withdrawals of distilled spirits, this phrase includes withdrawals from the premises of a distilled spirits plant even if the proprietor, as authorized under the exemption set forth in § 19.151(d), has not provided a bond for the premises.
</P>
<P><I>Gallon or wine gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>General premises.</I> Any business office, service facility, or other part of the premises described in the notice of registration other than bonded premises.
</P>
<P><I>In bond.</I> When used to describe spirits, denatured spirits, articles, or wine, this term refers to spirits, denatured spirits, articles, or wine held under bond to secure the payment of the taxes imposed by 26 U.S.C. chapter 51, and on which those taxes have not been determined. Spirits, denatured spirits, articles, or wine are considered to be held under bond if they are held by a proprietor who is liable for the tax, even if the proprietor is not required to provide a bond under this chapter. The term also refers to such spirits, denatured spirits, articles, or wine on the bonded premises of a distilled spirits plant, and such spirits, denatured spirits, or wines that are in transit between bonded premises (including, in the case of wine, bonded wine cellar premises). In addition, the term refers to spirits in transit from customs custody to bonded premises, and spirits withdrawn without payment of tax under 26 U.S.C. 5214, and with respect to which relief from liability has not occurred under 26 U.S.C. 5005(e)(2). 
</P>
<P><I>Industrial use.</I> When used with reference to spirits, the meaning given to the term in § 19.472.
</P>
<P><I>Intermediate product.</I> Any product manufactured according to an approved formula under part 5 of this chapter, intended not for sale as such but for use in the manufacture of a distilled spirits product.
</P>
<P><I>IRC.</I> The Internal Revenue Code of 1986, as amended.
</P>
<P><I>Kind.</I> Except as provided in § 19.487, when used with reference to spirits, this term means class and type as prescribed in part 5 of this chapter. When used with reference to wines, this term means the class and type of wine as prescribed in part 4 of this chapter.
</P>
<P><I>Letterhead application.</I> A letter on a company's letterhead or other piece of paper that clearly shows the company name from a company representative with signature authority. A letterhead application is subject to TTB approval prior to any change requested in the letter.
</P>
<P><I>Letterhead notice.</I> A letter on a company's letterhead or other piece of paper that clearly shows the company name from a company representative with signature authority. A letterhead notice does not require approval by TTB prior to the change.
</P>
<P><I>Liquor bottle.</I> A bottle made of glass or earthenware, or of other suitable material approved by the Food and Drug Administration, which has been designed or is intended for use as a container for distilled spirits for sale for beverage purposes and which has been determined by the Administrator to adequately protect the revenue.
</P>
<P><I>Liter.</I> A metric unit of capacity equal to 1,000 cubic centimeters or 1,000 milliliters (ml) of alcoholic beverage, and equivalent to 33.814 fluid ounces.
</P>
<P><I>Lot identification number.</I> The package identification number described in § 19.485.
</P>
<P><I>Mash, wort, wash.</I> Any fermented material capable of, or intended for, use as a distilling material.
</P>
<P><I>National Revenue Center:</I> TTB's National Revenue Center, in Cincinnati, Ohio.
</P>
<P><I>Nonindustrial use.</I> When used with reference to spirits, the meaning given to the term in § 19.472.
</P>
<P><I>Operating permit.</I> The document issued pursuant to 26 U.S.C. 5171(d), that authorizes a person to engage in the business or operation described in the document.
</P>
<P><I>Package.</I> A cask or barrel or similar wooden container, or a drum or similar metal container.
</P>
<P><I>Package identification number.</I> The lot identification number described in § 19.490.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company, corporation, limited liability company, limited liability partnership, or other entity recognized by law as a person.
</P>
<P><I>Plant or distilled spirits plant.</I> An establishment qualified under this part for distilling, warehousing, processing, or any combination thereof.
</P>
<P><I>Plant number.</I> The number assigned to a distilled spirits plant by TTB.
</P>
<P><I>Processor.</I> Except as otherwise provided in 26 U.S.C. 5002(a)(6), any person qualified under this part who manufactures, mixes, bottles, or otherwise processes distilled spirits or denatured spirits or who manufactures any article.
</P>
<P><I>Proof.</I> The ethyl alcohol content of a liquid at 60 degrees Fahrenheit, stated as twice the percentage of ethyl alcohol by volume.
</P>
<P><I>Proof gallon.</I> A gallon of liquid at 60 degrees Fahrenheit which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as unity, or the alcoholic equivalent thereof.
</P>
<P><I>Proof of distillation.</I> The composite proof of the spirits when the production gauge is made, or, if the spirits are reduced in proof prior to the production gauge, the proof of the spirits prior to that reduction, unless the spirits are subsequently redistilled at a higher proof than the proof prior to reduction.
</P>
<P><I>Proprietor.</I> The person qualified under this part to operate a distilled spirits plant.
</P>
<P><I>Reconditioning.</I> The dumping of distilled spirits products in bond after their bottling or packaging, for filtration, clarification, stabilization, reformulation, or other purposes, other than destruction, denaturation, redistillation, or rebottling.
</P>
<P><I>Recovered article.</I> An article containing specially denatured spirits salvaged without all of its original ingredients, or an article containing completely denatured alcohol salvaged without all of the denaturants for completely denatured alcohol, as provided in part 20 of this chapter.
</P>
<P><I>Season.</I> The period from January 1st through June 30th (spring season) or the period from July 1st through December 31st (fall season).
</P>
<P><I>Secretary of the Treasury</I> or <I>Secretary.</I> The Secretary of the Treasury or a delegate of the Secretary.
</P>
<P><I>Service center.</I> An Internal Revenue Service Center in any of the Internal Revenue regions.
</P>
<P><I>Spirits or distilled spirits.</I> The substance known as ethyl alcohol, ethanol, or spirits of wine in any form (including all dilutions and mixtures thereof, from whatever source or by whatever process produced) but not denatured spirits unless specifically stated. The term does not include mixtures of distilled spirits and wine, bottled at 48° proof or less, if the mixture contains more than 50 percent wine on a proof gallon basis.
</P>
<P><I>Spirits residues.</I> Residues, containing distilled spirits, of a manufacturing process related to the production of an article under part 20 of this chapter.
</P>
<P><I>Tax-determined or determined.</I> When used with reference to any distilled spirits to be withdrawn from bond on determination of tax, that the taxable quantity of spirits has been established.
</P>
<P><I>Taxpaid.</I> When used with reference to distilled spirits, all applicable taxes imposed by law on those spirits have been determined or paid as provided by law.
</P>
<P><I>This chapter.</I> Title 27 of the Code of Federal Regulations, Chapter I, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury (27 CFR chapter I).
</P>
<P><I>To bond.</I> When used with reference to returns of distilled spirits, this phrase includes returns to the premises of a distilled spirits plant even if the proprietor, as authorized under the exemption set forth in § 19.151(d), has not provided a bond for the premises.
</P>
<P><I>Transfer in bond.</I> The removal of spirits, denatured spirits and wines from one bonded premises to another bonded premises.
</P>
<P><I>Treasury Account.</I> The General Account of the Department of the Treasury at the Federal Reserve Bank of New York.
</P>
<P><I>TTB.</I> The Alcohol and Tobacco Tax and Trade Bureau of the Department of the Treasury.
</P>
<P><I>TTB officer.</I> An officer or employee of TTB authorized to perform any function relating to the administration or enforcement of the provisions of this part.
</P>
<P><I>Unfinished spirits.</I> Spirits in the production system prior to production gauge.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>Warehouseman.</I> A proprietor of a distilled spirits plant qualified under this part to store bulk distilled spirits.
</P>
<P><I>We.</I> TTB and TTB officers.
</P>
<P><I>Wine gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>Wine spirits.</I> Spirits authorized for use in wine production by 26 U.S.C. 5373.
</P>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-92a, 76 FR 19908, Apr. 11, 2011; T.D. TTB-146, 82 FR 1119, Jan. 4, 2017; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.2" NODE="27:1.0.1.1.15.1.159.2" TYPE="SECTION">
<HEAD>§ 19.2   Territorial extent of these regulations.</HEAD>
<P>This part applies to all States of the United States and the District of Columbia.


</P>
</DIV8>


<DIV8 N="§ 19.3" NODE="27:1.0.1.1.15.1.159.3" TYPE="SECTION">
<HEAD>§ 19.3   Related regulations.</HEAD>
<P>Other regulations relating to distilled spirits and distilled spirits plants are listed below:
</P>
<EXTRACT>
<FP-2>27 CFR Part 1—Basic Permit Requirements Under the Federal Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits.
</FP-2>
<FP-2>27 CFR Part 4—Labeling and Advertising of Wine.
</FP-2>
<FP-2>27 CFR Part 5—Labeling and Advertising of Distilled Spirits.
</FP-2>
<FP-2>27 CFR Part 16—Alcoholic Beverage Health Warning Statement.
</FP-2>
<FP-2>27 CFR Part 17—Drawback on Taxpaid Distilled Spirits Used in Manufacturing Nonbeverage Products.
</FP-2>
<FP-2>27 CFR Part 20—Distribution and Use of Denatured Alcohol and Rum.
</FP-2>
<FP-2>27 CFR Part 21—Formulas for Denatured Alcohol and Rum.
</FP-2>
<FP-2>27 CFR Part 22—Distribution and Use of Tax-Free Alcohol.
</FP-2>
<FP-2>27 CFR Part 24—Wine.
</FP-2>
<FP-2>27 CFR Part 25—Beer.
</FP-2>
<FP-2>27 CFR Part 26—Liquors and Articles from Puerto Rico and the Virgin Islands.
</FP-2>
<FP-2>27 CFR Part 27—Importation of Distilled Spirits, Wines, and Beer.
</FP-2>
<FP-2>27 CFR Part 28—Exportation of Alcohol.
</FP-2>
<FP-2>27 CFR Part 29—Stills and Miscellaneous Regulations.
</FP-2>
<FP-2>27 CFR Part 30—Gauging Manual.
</FP-2>
<FP-2>27 CFR Part 31—Alcohol Beverage Dealers.
</FP-2>
<FP-2>27 CFR Part 71—Rules of Practice in Permit Proceedings.
</FP-2>
<FP-2>31 CFR Part 225—Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties.</FP-2></EXTRACT>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 19.4" NODE="27:1.0.1.1.15.1.159.4" TYPE="SECTION">
<HEAD>§ 19.4   Recovery and reuse of denatured spirits in manufacturing processes.</HEAD>
<P>Certain activities involving distilled spirits are not covered by this part. Instead, manufacturers who engage in any of the activities listed below are required to comply with the regulations in part 20 of this chapter relating to the use and recovery of spirits or denatured spirits. Those activities are:
</P>
<P>(a) Use of denatured spirits, or articles or substances containing denatured spirits, in a process wherein any part or all of the spirits, including denatured spirits, are recovered;
</P>
<P>(b) Use of denatured spirits in the production of chemicals which do not contain spirits but which are used on the permit premises in the manufacture of other chemicals resulting in spirits as a byproduct; or
</P>
<P>(c) Use of chemicals or substances which do not contain spirits or denatured spirits (but which were manufactured with specially denatured spirits) in a process resulting in spirits as a byproduct.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5273)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.5" NODE="27:1.0.1.1.15.1.159.5" TYPE="SECTION">
<HEAD>§ 19.5   Manufacturing products unfit for beverage use.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (b) of this section, apothecaries, pharmacists, or manufacturers who manufacture or compound any of the following products using tax paid or tax determined distilled spirits are not required to register and qualify as a distilled spirits plant (processor):
</P>
<P>(1) Medicines, medicinal preparations, food products, flavors, flavoring extracts, and perfume, conforming to the standards for approval of nonbeverage drawback products found in §§ 17.131 through 17.137 of this chapter, whether or not drawback is actually claimed on those products. Except as provided in paragraph (c) of this section, a formula does not need to be submitted if drawback is not desired;
</P>
<P>(2) Patented and proprietary medicines that are unfit for use for beverage purposes;
</P>
<P>(3) Toilet, medicinal, and antiseptic preparations and solutions that are unfit for use for beverage purposes;
</P>
<P>(4) Laboratory reagents, stains, and dyes that are unfit for use for beverage purposes; and
</P>
<P>(5) Flavoring extracts, syrups, and concentrates that are unfit for use for beverage purposes.
</P>
<P>(b) <I>Exception for beverage products.</I> Products identified in part 17 of this chapter as being fit for beverage use are alcoholic beverages. Bitters, patent medicines, and similar alcoholic preparations that are fit for beverage purposes, although held out as having certain medicinal properties, are also alcoholic beverages. These products are subject to the provisions of this part and must be manufactured on the bonded premises of a distilled spirits plant.
</P>
<P>(c) <I>Submission of formulas and samples.</I> When requested by the appropriate TTB officer or when the manufacturer wishes to ascertain whether a product is unfit for beverage use, the manufacturer will submit the formula and a sample of the product to the appropriate TTB officer for examination. TTB will determine whether the product is unfit for beverage use and whether manufacture of the product is exempt from qualification requirements.
</P>
<P>(d) <I>Change of formula.</I> If TTB finds that a product manufactured under paragraph (a) of this section is being used for beverage purposes, or for mixing with beverage spirits other than by a processor, TTB will notify the manufacturer to stop manufacturing the product until the formula is changed to make the product unfit for beverage use and the change is approved by the appropriate TTB officer. However, the provisions of this paragraph will not prohibit products which are unfit for beverage use from use in small quantities for flavoring drinks at the time of serving for immediate consumption.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5002, 5171)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.15.2" TYPE="SUBPART">
<HEAD>Subpart B—Administrative and Miscellaneous Provisions</HEAD>


<DIV8 N="§ 19.11" NODE="27:1.0.1.1.15.2.159.1" TYPE="SECTION">
<HEAD>§ 19.11   Right of entry and examination.</HEAD>
<P>A TTB officer may enter any distilled spirits plant, any other premises where distilled spirits operations are carried on, or any structure or place used in connection with distilled spirits operations, at any time of day or night. A TTB officer may examine materials, equipment, and facilities, and make any gauges and inventories. Whenever a TTB officer states his or her name and office and demands admittance but is not admitted into the premises or place, the TTB officer is authorized to use all necessary force to gain entry.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5203)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.12" NODE="27:1.0.1.1.15.2.159.2" TYPE="SECTION">
<HEAD>§ 19.12   Furnishing facilities and assistance.</HEAD>
<P>The proprietor is required to provide TTB officers with the necessary facilities and assistance in order to gauge spirits in any container, or to examine any apparatus, equipment, containers, or materials, at the distilled spirits plant. Also, when requested by a TTB officer, the proprietor must:
</P>
<P>(a) Open any doors and open for examination any containers on the plant premises; and
</P>
<P>(b) Provide the exact locations (including the number of containers at each location) of all packages and similar portable approved containers within a given lot and the locations (that is, buildings, rooms, or areas) where spirits in cases are stored.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5202, 5203)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.13" NODE="27:1.0.1.1.15.2.159.3" TYPE="SECTION">
<HEAD>§ 19.13   Assignment of officers and supervision of operations.</HEAD>
<P>(a) <I>General.</I> TTB may assign TTB officers to a distilled spirits plant and utilize controls, such as Government locks and seals, if TTB decides that those measures are necessary to effectively supervise the operations. If TTB decides that such supervision is necessary:
</P>
<P>(1) The proprietor must obtain approval of the plant's hours of operations from the appropriate TTB officer;
</P>
<P>(2) TTB may require the proprietor to submit a schedule of operations to a TTB officer; and
</P>
<P>(3) TTB may require the proprietor to delay any distilled spirits operation until the proprietor can conduct it in the presence of a TTB officer.
</P>
<P>(b) <I>Notification of supervision.</I> If TTB determines that supervision of plant operations is necessary, TTB will notify the proprietor of the extent to which TTB intends to supervise those operations. If TTB determines later that TTB supervision is no longer necessary, the appropriate TTB officer will notify the proprietor of that fact.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5202, 5553)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.14" NODE="27:1.0.1.1.15.2.159.4" TYPE="SECTION">
<HEAD>§ 19.14   Delegation of the Administrator's authorities to the appropriate TTB officer.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.19, Delegation of the Administrator's Authorities in 27 CFR Part 19, Distilled Spirits Plants. Interested persons may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.


</P>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]






</CITA>
</DIV8>


<DIV8 N="§ 19.15" NODE="27:1.0.1.1.15.2.159.5" TYPE="SECTION">
<HEAD>§ 19.15   Forms prescribed.</HEAD>
<P>(a) TTB prescribes and makes available all forms required by this part. Persons completing forms must furnish all of the information required by each form, as indicated by the headings and instructions on the form or as required by these regulations. Each form must be filed in accordance with this part and the instructions for the form.
</P>
<P>(b) Persons may obtain TTB forms by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the TTB National Revenue Center, 550 Main Street, Suite 8002, Cincinnati, Ohio 45202.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by  T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 19.16" NODE="27:1.0.1.1.15.2.159.6" TYPE="SECTION">
<HEAD>§ 19.16   Modified forms.</HEAD>
<P>If a proprietor wishes to modify a form prescribed by these regulations, the proprietor must submit an application for approval of an alternate method or procedure (see §§ 19.26 and 19.27) to the appropriate TTB officer. The proprietor may not use a modified form until TTB approves the application. The application to modify a form must be accompanied by:
</P>
<P>(a) A copy of each proposed form with typical entries; and
</P>
<P>(b) A statement explaining the need to use a modified form.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.17" NODE="27:1.0.1.1.15.2.159.7" TYPE="SECTION">
<HEAD>§ 19.17   Detention of containers.</HEAD>
<P>(a) <I>General.</I> A TTB officer may detain any container containing, or supposed to contain, spirits when the appropriate TTB officer believes that the required tax on those spirits has not been paid or determined or that the removal of the container is in violation of law or the provisions of this part. The appropriate TTB officer will hold the container at a safe place until it is determined whether the detained property is subject to forfeiture.
</P>
<P>(b) <I>Limitation.</I> A detention under paragraph (a) of this section may not exceed 72 hours without process of law or intervention of the appropriate TTB officer. However, the detained container may be kept on the premises beyond the 72-hour period without process of law or intervention if the person possessing the container immediately before its detention executes a waiver of this 72-hour limitation on detention of the container.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5311)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.18" NODE="27:1.0.1.1.15.2.159.8" TYPE="SECTION">
<HEAD>§ 19.18   Samples for the United States.</HEAD>
<P>TTB officers are authorized to take samples of spirits, denatured spirits, articles, wines, or other materials from a distilled spirits plant for analysis, testing, or to determine whether the product complies with the law and regulations. When TTB removes a sample from a plant, TTB will give the proprietor a receipt for the sample.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5203, 5214, 5362)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.19" NODE="27:1.0.1.1.15.2.159.9" TYPE="SECTION">
<HEAD>§ 19.19   Discontinuance of storage facilities.</HEAD>
<P>If TTB determines that a proprietor's bonded storage facility for spirits is unsafe or unfit for use, or causes excessive waste or loss of spirits, TTB can require that the proprietor discontinue using the facility. Further, TTB can require the transfer of the spirits stored in the facility to another storage facility. The transfer will take place at such time and under such supervision as TTB may require, and will be at the expense of the owner or warehouseman of the spirits. If the owner or warehouseman fails to transfer the spirits within the prescribed time or to pay the expense of the transfer, as ascertained and determined by the appropriate TTB officer, the spirits may be seized and sold. TTB will first apply the proceeds of such sale to the payment of the taxes due on the spirits and then to the cost and expense of the sale and removal, and the remaining balance, if any, will be paid over to the owner or warehouseman.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5236)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.20" NODE="27:1.0.1.1.15.2.159.10" TYPE="SECTION">
<HEAD>§ 19.20   Installation of meters, tanks, and other apparatus.</HEAD>
<P>The appropriate TTB officer may require the proprietor to install meters, tanks, pipes, or any other apparatus at the proprietor's plant if that officer decides that the equipment is necessary for the protection of the revenue. If the proprietor refuses or fails to install any such apparatus when instructed to do so, the proprietor will not be permitted to conduct business as a distilled spirits plant.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5552)


</SECAUTH>
</DIV8>


<DIV7 N="159" NODE="27:1.0.1.1.15.2.159" TYPE="SUBJGRP">
<HEAD>Alternate Methods or Procedures and Experimental Operations</HEAD>


<DIV8 N="§ 19.26" NODE="27:1.0.1.1.15.2.159.11" TYPE="SECTION">
<HEAD>§ 19.26   Alternate methods or procedures.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may approve the use of an alternate method or procedure that varies from the regulatory requirements in this part if the proprietor shows good cause for its use and the alternate method or procedure:
</P>
<P>(1) Is not contrary to law;
</P>
<P>(2) Will not have the effect of waiving an existing regulatory requirement;
</P>
<P>(3) Is consistent with the purpose and effect of the method or procedure prescribed in this part;
</P>
<P>(4) Provides equal security to the revenue; and
</P>
<P>(5) Will not cause an increase in cost to the Government and will not hinder TTB's administration of this part.
</P>
<P>(b) <I>Exceptions.</I> TTB will not authorize the use of an alternate method or procedure relating to the giving of any bond, or to the assessment, payment, or collection of tax.
</P>
<P>(c) <I>Prior approvals.</I> Alternate methods or procedures in effect prior to April 18, 2011, which are not contrary to the regulations in this part, are preserved until renewed unless revoked by operation of law due to the enactment of law that is contrary to the alternate method or procedure.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5552, 5556)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.27" NODE="27:1.0.1.1.15.2.159.12" TYPE="SECTION">
<HEAD>§ 19.27   Application for and use of alternate method or procedure.</HEAD>
<P>(a) <I>Application.</I> If a proprietor wishes to use an alternate method or procedure as described in § 19.26, the proprietor must submit a written letterhead application to the appropriate TTB officer for approval. The application must identify the method or procedure specified in the regulation, must describe the proposed alternate method or procedure in detail, and must explain why the alternate method or procedure is needed.
</P>
<P>(b) <I>Approval and use.</I> The proprietor may not use an alternate method or procedure until the appropriate TTB officer has in writing approved the proprietor's application. During the period that the proprietor is authorized to use the alternate method or procedure, the proprietor must comply with any conditions imposed on its use by TTB. TTB may withdraw the approval to use the alternate method or procedure if TTB finds that the revenue is jeopardized, that the alternate method or procedure hinders effective administration of the laws or regulations, that the proprietor has violated any of the conditions imposed by TTB, or that the circumstances that gave rise to the need for the alternate method or procedure no longer exist.
</P>
<P>(c) <I>Retention.</I> The proprietor must retain each alternate method or procedure approval as part of the proprietor's records and must make the approval available for examination by TTB officers upon request.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5552, 5556)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.28" NODE="27:1.0.1.1.15.2.159.13" TYPE="SECTION">
<HEAD>§ 19.28   Emergency variations from requirements.</HEAD>
<P>(a) <I>Application.</I> A proprietor may request emergency approval of the use of a method or procedure relating to construction, equipment, and methods of operation that represents a variance from the requirements of this part. When a proprietor wishes to use an emergency method or procedure, the proprietor must submit a written letterhead application to the appropriate TTB officer for approval; the proprietor may send the application via regular mail, email, or facsimile transmission. The application must describe the proposed emergency method or procedure and the emergency situation it will address. For purposes of this section, an emergency is considered to exist only if it results from a weather or other natural event or from an accident or other event not involving an intentional act on the part of the proprietor.
</P>
<P>(b) <I>Approval.</I> The appropriate TTB officer may approve in writing the use of an emergency method or procedure if the proprietor demonstrates that an emergency exists and the proposed method or procedure:
</P>
<P>(1) Is not contrary to law;
</P>
<P>(2) Is necessary to address the emergency situation;
</P>
<P>(3) Will afford the same security and protection to the revenue as intended by the regulations; and
</P>
<P>(4) Will not hinder the effective administration of this subpart.
</P>
<P>(c) <I>Terms of emergency method or procedure approval and use.</I> (1) The proprietor may not use an emergency method or procedure until the application has been approved by TTB except when the emergency method or procedure requires immediate implementation to correct a situation that threatens life or property. In a situation involving a threat to life or property, the proprietor may implement the corrective action while concurrently notifying the appropriate TTB officer by telephone of the action and filing the required written application. Use of the emergency method or procedure must conform to any conditions specified in the approval.
</P>
<P>(2) The proprietor must retain the emergency method or procedure approval as part of the proprietor's records and must make the approval available for examination by TTB officers upon request.
</P>
<P>(3) The emergency method or procedure will automatically terminate when the situation that created the emergency no longer exists. TTB may withdraw the approval to use the emergency method or procedure if TTB finds that the revenue is jeopardized, that the emergency method or procedure hinders effective administration of the laws or regulations, or that the proprietor has failed to follow any of the conditions specified in the approval. When use of the emergency method or procedure terminates, the proprietor must revert to full compliance with all applicable regulations.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178, 5556)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.29" NODE="27:1.0.1.1.15.2.159.14" TYPE="SECTION">
<HEAD>§ 19.29   Exemptions for national defense and disasters.</HEAD>
<P>Whenever TTB finds it is necessary to meet the requirements of national defense or necessary or desirable by reason of disaster, TTB may temporarily exempt the proprietor from any provisions of the internal revenue laws and the provisions of this part relating to distilled spirits, except those requiring the payment of tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5561, 5562)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.31" NODE="27:1.0.1.1.15.2.159.15" TYPE="SECTION">
<HEAD>§ 19.31   Pilot operations.</HEAD>
<P>Except for the filing of any bond or the payment of any tax provided for in 26 U.S.C. chapter 51, TTB may waive any regulatory provision in this part for temporary pilot or experimental operations for the purpose of facilitating the development and testing of improved methods of governmental supervision (necessary for the protection of the revenue) over plants. For this purpose, the appropriate TTB officer may, with the approval of the proprietor thereof, designate any plant for such operations. Any waiver granted under this section must be in writing and signed by the appropriate TTB officer. The waiver will identify the provisions of law and/or regulations waived and the period of time during which the waiver will be effective. The appropriate TTB officer may terminate the waiver if he or she determines that the waiver jeopardizes the revenue.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5554)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.32" NODE="27:1.0.1.1.15.2.159.16" TYPE="SECTION">
<HEAD>§ 19.32   Experimental distilled spirits plants.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may authorize the establishment and operation of experimental plants for specific and limited periods of time solely for experimentation in, or development of:
</P>
<P>(1) Sources of materials from which spirits may be produced;
</P>
<P>(2) Processes by which spirits may be produced or refined; or
</P>
<P>(3) Industrial uses of spirits.
</P>
<P>(b) <I>Waiver.</I> The appropriate TTB officer may waive any provision of 26 U.S.C. chapter 51 (other than 26 U.S.C. 5312) and of this part (other than § 19.33) to the extent necessary to effectuate the purposes of 26 U.S.C. 5312(b) as outlined in paragraph (a) of this section. However, TTB will not waive the payment of any tax on spirits removed from an experimental plant.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5312)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.33" NODE="27:1.0.1.1.15.2.159.17" TYPE="SECTION">
<HEAD>§ 19.33   Application to establish experimental plants.</HEAD>
<P>(a) <I>Application requirements.</I> Any person who wishes to establish an experimental plant for the purposes specified in § 19.32 must submit a written application to the appropriate TTB officer and obtain approval of the proposed experimental plant. The application must:
</P>
<P>(1) State the nature, extent, and purpose of the operations to be conducted;
</P>
<P>(2) Describe the operations and equipment;
</P>
<P>(3) Describe the location of the plant (including the proximity to other premises or operations subject to the provisions of 26 U.S.C. chapter 51); and
</P>
<P>(4) Describe the security measures to be provided.
</P>
<P>(b) <I>Bond.</I> The applicant must file a bond with the application in such form and penal sum as required by the appropriate TTB officer.
</P>
<P>(c) <I>Approval of application.</I> Before approving the application, the appropriate TTB officer may require that the applicant submit additional information if necessary. TTB will not approve the application and permit operations until the plant conforms to the specifications stated in the application and the applicant complies with provisions of 26 U.S.C. chapter 51 and with any provisions in this part that are not specifically waived.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5312)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.34" NODE="27:1.0.1.1.15.2.159.18" TYPE="SECTION">
<HEAD>§ 19.34   Experimental or research operations by scientific institutions and colleges of learning.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may authorize any scientific university, college of learning, or institution of scientific research to produce, receive, blend, treat, test, and store spirits, without payment of tax, for experimental or research use but not for consumption (other than in organoleptic tests) or sale, in quantities as may be reasonably necessary for those purposes.
</P>
<P>(b) <I>Waiver.</I> For purposes of this section, the appropriate TTB officer may waive any provision of 26 U.S.C. chapter 51 (other than 26 U.S.C. 5312) or this part (other than this section and § 19.35) to the extent necessary to effect the purposes of 26 U.S.C. 5312(a). However, TTB will not waive the payment of any tax on distilled spirits removed from any university, college, or institution.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5312)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.35" NODE="27:1.0.1.1.15.2.159.19" TYPE="SECTION">
<HEAD>§ 19.35   Application by scientific institutions and colleges of learning for experimental or research operations.</HEAD>
<P>(a) <I>Application requirements.</I> A university, college, or scientific institution that wants to conduct any of the experimental or research operations mentioned in § 19.34, must submit a written application to the appropriate TTB officer and obtain approval for the proposed operations. The application may be submitted on letterhead. The application must:
</P>
<P>(1) State the nature, extent, and purpose of the operations to be conducted;
</P>
<P>(2) Describe the operations and equipment;
</P>
<P>(3) Describe the location where the operations will be conducted (including identification of the building or buildings, or the portions thereof to be used); and
</P>
<P>(4) Describe the security measures to be provided.
</P>
<P>(b) <I>Bond.</I> The applicant must file a bond with the application in such form and amount as required by the appropriate TTB officer.
</P>
<P>(c) <I>Approval of application.</I> Before approving the application, the appropriate TTB officer may require that the applicant submit additional information. The applicant may not commence operations until authorized by the appropriate TTB officer.
</P>
<P>(d) <I>Records and reports.</I> Any university, college, or institution authorized to conduct experimental or research operations must maintain records of the quantities of spirits produced, received, and used each day and must make these records available for inspection by TTB officers. Universities, colleges, or institutions authorized to conduct experimental or research operations are not required to submit reports of operations to TTB unless specifically required by the appropriate TTB officer.
</P>
<P>(e) <I>Discontinuance of operations.</I> When operations authorized under this section are discontinued, the university, college, or institution must destroy all remaining spirits and notify the appropriate TTB officer that operations are discontinued.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5312)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.36" NODE="27:1.0.1.1.15.2.159.20" TYPE="SECTION">
<HEAD>§ 19.36   Spirits produced in industrial processes.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in paragraph (b) of this section, any person who produces distilled spirits in an industrial process, including spirits produced as a byproduct in connection with chemical or other processes, is considered to be a distiller and therefore is required to qualify such operations as a distilled spirits plant and is subject to the registration requirements under the provisions of 26 U.S.C. chapter 51 and this part.
</P>
<P>(b) <I>Waiver.</I> TTB may waive application of any provision of 26 U.S.C. chapter 51, or of this part, involving the production of nonpotable chemical mixtures containing spirits, including any provision relating to qualification (except the dealer registration requirement) if the mixture is produced:
</P>
<P>(1) For transfer to the bonded premises of a distilled spirits plant for completion of distilling; or
</P>
<P>(2) As a byproduct which would require expensive and complex equipment for the recovery of spirits, and the mixture:
</P>
<P>(i) Would be destroyed on the premises where produced; or
</P>
<P>(ii) Would contain a minimum quantity of spirits, taking into account the procedure employed, would not be subjected to further operations solely for the purification or recovery of spirits, and would be found by TTB to be as nonpotable and as difficult to recover as completely denatured alcohol.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.37" NODE="27:1.0.1.1.15.2.159.21" TYPE="SECTION">
<HEAD>§ 19.37   Application for industrial processes waiver.</HEAD>
<P>(a) <I>Application for waiver.</I> If the producer of a nonpotable chemical mixture containing spirits, as described in § 19.36, wishes to obtain a waiver from the provisions of 26 U.S.C. chapter 51, or of this part, the producer must submit a written waiver application to the appropriate TTB officer. The application must include the following information, as applicable:
</P>
<P>(1) The name and address of the producer;
</P>
<P>(2) Chemical composition and source of the nonpotable mixture;
</P>
<P>(3) Approximate percentages of chemicals and spirits in the mixture;
</P>
<P>(4) Method of operation proposed;
</P>
<P>(5) Bonded premises where the mixture will be distilled; and
</P>
<P>(6) Any other pertinent information required by the appropriate TTB officer.
</P>
<P>(b) <I>Approval of waiver.</I> The appropriate TTB officer may approve the waiver if it will not jeopardize the revenue and will not hinder supervision of the operations. Approval of the application may be subject to such terms and conditions, and to the furnishing of any bond, that the appropriate TTB officer determines is necessary.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.38" NODE="27:1.0.1.1.15.2.159.22" TYPE="SECTION">
<HEAD>§ 19.38   Approval of required documents.</HEAD>
<P>Except as otherwise provided in this part, the appropriate TTB officer is authorized to approve all documents, bonds, and consents of surety required by this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172, 5173, and 5551)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="160" NODE="27:1.0.1.1.15.2.160" TYPE="SUBJGRP">
<HEAD>“Penalties of Perjury” Declaration</HEAD>


<DIV8 N="§ 19.45" NODE="27:1.0.1.1.15.2.160.23" TYPE="SECTION">
<HEAD>§ 19.45   Execution under penalties of perjury.</HEAD>
<P>(a) <I>Declaration.</I> When TTB requires under this part that a document be executed under penalties of perjury, the document must contain the following declaration:
</P>
<EXTRACT>
<P>I declare under the penalties of perjury that this [insert type of document, such as report, or claim], including supporting documents, has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete.</P></EXTRACT>
<P>(b) <I>Signing.</I> The declaration in paragraph (a) of this section must bear the signature and title of the proprietor or a duly authorized representative.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6065)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.15.3" TYPE="SUBPART">
<HEAD>Subpart C—Restrictions on Production, Location, and Use of Plants</HEAD>


<DIV8 N="§ 19.51" NODE="27:1.0.1.1.15.3.161.1" TYPE="SECTION">
<HEAD>§ 19.51   Home production of distilled spirits prohibited.</HEAD>
<P>A person may not produce distilled spirits at home for personal use. Except as otherwise provided by law, distilled spirits may only be produced by a distilled spirits plant registered with TTB under the provisions of 26 U.S.C. 5171. All distilled spirits produced in the United States are subject to the tax imposed by 26 U.S.C. 5001.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5001, 5601, and 5602)


</SECAUTH>
</DIV8>


<DIV7 N="161" NODE="27:1.0.1.1.15.3.161" TYPE="SUBJGRP">
<HEAD>Rules for Location and Use of a DSP</HEAD>


<DIV8 N="§ 19.52" NODE="27:1.0.1.1.15.3.161.2" TYPE="SECTION">
<HEAD>§ 19.52   Restrictions on location of plants.</HEAD>
<P>A person who intends to establish a distilled spirits plant may not locate it in any of the following places:
</P>
<P>(a) In any residence, shed, yard, or enclosure connected to a residence;
</P>
<P>(b) On any vessel or boat;
</P>
<P>(c) Where beer or wine is produced;
</P>
<P>(d) Where liquors are sold at retail; or
</P>
<P>(e) Where any other business is conducted except as provided in § 19.54.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.53" NODE="27:1.0.1.1.15.3.161.3" TYPE="SECTION">
<HEAD>§ 19.53   Continuity of plant premises.</HEAD>
<P>As a general rule, the premises of a distilled spirits plant must be continuous except for separations by public waterways, roads, or carrier rights-of-way. However, the appropriate TTB officer may approve the registration of the plant where there are separations of the plant premises and all parts of the plant are in the same general location if:
</P>
<P>(a) There is no jeopardy to revenue caused by the separation of premises; and
</P>
<P>(b) The separation of premises does not create administrative problems for TTB.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.54" NODE="27:1.0.1.1.15.3.161.4" TYPE="SECTION">
<HEAD>§ 19.54   Use of distilled spirits plant premises.</HEAD>
<P>(a) <I>General.</I> A person may not conduct any business or operation on the premises of a distilled spirits plant unless the business or operation is authorized by the notice of registration on file with TTB or authorized under § 19.55.
</P>
<P>(b) <I>Bonded premises.</I> The proprietor must use the bonded premises of a distilled spirits plant exclusively for distilled spirits operations. The proprietor must store packaged spirits, cases of spirits, or portable containers of spirits in a room or building on bonded premises. TTB may approve another method of storage as an alternate method or procedure. However, the proprietor must apply for, and receive approval for another method of storage from the appropriate TTB officer in accordance with § 19.27 before using that method.
</P>
<P>(c) <I>General premises.</I> General premises are any portion of the distilled spirits plant described in the notice of registration other than bonded premises. A person may not use the general premises of a distilled spirits plant for any operation required under the provisions of this part to be conducted on bonded premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.55" NODE="27:1.0.1.1.15.3.161.5" TYPE="SECTION">
<HEAD>§ 19.55   Other businesses.</HEAD>
<P>(a) The appropriate TTB officer may authorize the conduct of a business other than that of a distiller, warehouseman, or processor on the premises of a distilled spirits plant if:
</P>
<P>(1) The business is not prohibited by 26 U.S.C. 5601(a)(6);
</P>
<P>(2) The business will not jeopardize the revenue;
</P>
<P>(3) The business will not hinder TTB's effective administration of this part; and
</P>
<P>(4) The business will not be contrary to law.
</P>
<P>(b) A person who wishes to conduct another business at a distilled spirits plant must apply for such authorization in accordance with § 19.73(b) or § 19.120(b) and receive approval from the appropriate TTB officer before operating the other business. The approval will specify whether the other business may be conducted on the bonded premises or on the general premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.56" NODE="27:1.0.1.1.15.3.161.6" TYPE="SECTION">
<HEAD>§ 19.56   Bonded warehouses not on premises qualified for production of spirits.</HEAD>
<P>(a) <I>Criteria for establishment.</I> As a general rule, if a person intends to establish a bonded warehouse, other than one established on the bonded premises of a distilled spirits plant qualified for the production of spirits or contiguous to such premises, the proposed warehouse must have a minimum capacity of 250,000 wine gallons of bulk spirits and the need for such a warehouse must be clearly shown. TTB may consider an application to establish a bonded warehouse with less capacity provided a need is clearly shown.
</P>
<P>(b) <I>Application.</I> The applicant must submit a separate written request along with the application for registration explaining the need for the bonded warehouse. TTB may approve the application for registration if:
</P>
<P>(1) The proposed location for the warehouse will not jeopardize the revenue; and
</P>
<P>(2) The applicant provides evidence showing sufficient need for establishing such a warehouse.
</P>
<P>(c) <I>Special conditions.</I> Based on the application and request, TTB may limit the type of operations that may be conducted at the bonded warehouse. The proprietor of a warehouse approved for a limited type of operation may not expand or change the operation to include any other type of operation without application to and approval of the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171 and 5178)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="162" NODE="27:1.0.1.1.15.3.162" TYPE="SUBJGRP">
<HEAD>Conveyance of Spirits or Wines on Plant Premises</HEAD>


<DIV8 N="§ 19.58" NODE="27:1.0.1.1.15.3.162.7" TYPE="SECTION">
<HEAD>§ 19.58   Taxpaid spirits or wines on bonded premises.</HEAD>
<P>The proprietor may move tax paid or tax determined spirits or wines across bonded premises. However, tax paid or tax determined spirits or wines may not be stored or allowed to remain on the bonded premises. The proprietor must keep tax paid or tax determined spirits or wines separate from spirits or wines on which tax has not been paid or determined. Spirits returned to bonded premises under the provisions of 26 U.S.C. 5215 may remain on bonded premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201 and 5612)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.59" NODE="27:1.0.1.1.15.3.162.8" TYPE="SECTION">
<HEAD>§ 19.59   Conveyance of untaxpaid spirits or wines within a distilled spirits plant.</HEAD>
<P>(a) The proprietor may move untaxpaid spirits or wines:
</P>
<P>(1) Between different portions of the bonded premises at the same distilled spirits plant or across any other premises of that plant;
</P>
<P>(2) Over any public thoroughfare by uninterrupted transportation; or
</P>
<P>(3) Over a private roadway by uninterrupted transportation. The owner or lessee of the private roadway must agree in writing to allow TTB officers access to the roadway to perform their duties.
</P>
<P>(b) The conveyance of untaxpaid spirits or wines under paragraph (a) of this section is subject to the following conditions. The proprietor:
</P>
<P>(1) May not store or allow the untaxpaid spirits or wines to remain on any premises other than the bonded premises;
</P>
<P>(2) Must keep the untaxpaid spirits or wines separate from spirits on which the tax has been paid or determined;
</P>
<P>(3) Must submit to the appropriate TTB officer a description of the means, route of the conveyance, and the areas of the distilled spirits plant, public thoroughfare or roadways across which spirits or wines will be conveyed, and a copy of any agreement with the owner or lessee of a private roadway. The appropriate TTB officer must approve the proposed means and route of conveyance and any agreement; and
</P>
<P>(4) Must provide a consent of surety on the operations or unit bond (TTB Form 5000.18) extending the terms of the bond to cover the conveyance of the spirits or wines.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201 and 5601)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.60" NODE="27:1.0.1.1.15.3.162.9" TYPE="SECTION">
<HEAD>§ 19.60   Spirits in customs custody.</HEAD>
<P>A proprietor may move distilled spirits that are in customs custody across distilled spirits plant premises if the proprietor:
</P>
<P>(a) Submits to the appropriate TTB officer a description of the means and route of the conveyance and the areas of the distilled spirits plant across which spirits will be conveyed and receives approval from the appropriate TTB officer for the method of movement;
</P>
<P>(b) Does not store or allow the spirits to remain on the premises of the distilled spirits plant;
</P>
<P>(c) Moves the spirits expeditiously, and keeps the spirits separate and apart from other spirits on the premises; and
</P>
<P>(d) Provides a consent of surety on the operations or unit bond (TTB Form 5000.18) extending the terms of the bond to cover the conveyance of the spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.15.4" TYPE="SUBPART">
<HEAD>Subpart D—Registration of a Distilled Spirits Plant and Obtaining a Permit</HEAD>


<DIV8 N="§ 19.71" NODE="27:1.0.1.1.15.4.163.1" TYPE="SECTION">
<HEAD>§ 19.71   Registration and permits in general.</HEAD>
<P>Except as otherwise provided in this part, a person may only conduct operations as a distiller, warehouseman, or processor of distilled spirits on the bonded premises of a distilled spirits plant. In order to establish a distilled spirits plant, a person must register the plant with TTB and obtain an operating permit and/or a basic permit. This subpart covers the requirements for registering a plant and obtaining an operating permit under the IRC. Part 1 of this chapter covers the requirements for obtaining a basic permit under the Federal Alcohol Administration Act.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171)


</SECAUTH>
</DIV8>


<DIV7 N="163" NODE="27:1.0.1.1.15.4.163" TYPE="SUBJGRP">
<HEAD>Requirements for Registering a Plant</HEAD>


<DIV8 N="§ 19.72" NODE="27:1.0.1.1.15.4.163.2" TYPE="SECTION">
<HEAD>§ 19.72   General requirements for registration.</HEAD>
<P>(a) <I>Establishment.</I> A person who wishes to establish a distilled spirits plant must intend to conduct operations as a distiller, as a warehouseman, or both. A person cannot establish a distilled spirits plant solely for the processing of spirits.
</P>
<P>(b) <I>Registration.</I> Before beginning operations as a distilled spirits plant, a person must submit an application for registration and receive approval from TTB. The following rules apply to an application for registration:
</P>
<P>(1) The applicant must apply for registration on form TTB F 5110.41, Registration of Distilled Spirits Plant, and submit the application to the appropriate TTB officer;
</P>
<P>(2) TTB will consider all written statements, affidavits, and other documents supporting the application as part of the application;
</P>
<P>(3) If the appropriate TTB officer determines that the original application for registration cannot be approved because it contains incomplete or incorrect information, TTB may require that the applicant file an additional TTB F 5110.41, or submit other documentation to complete or correct the original application; and
</P>
<P>(4) The applicant must file any additional forms or submit any other documentation within 60 days of the appropriate TTB officer's request.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.73" NODE="27:1.0.1.1.15.4.163.3" TYPE="SECTION">
<HEAD>§ 19.73   Information required in application for registration.</HEAD>
<P>(a) <I>General.</I> The application for registration on form TTB F 5110.41, Registration of Distilled Spirits Plant, must include the following information:
</P>
<P>(1) The serial number;
</P>
<P>(2) The name, principal business address, and location of the distilled spirits plant if different from the applicant's business address;
</P>
<P>(3) The operations that will be conducted;
</P>
<P>(4) The purpose for filing the application;
</P>
<P>(5) A statement describing the type of business organization and the persons involved in the business in accordance with § 19.93. However, if any of this information is already on file with the appropriate TTB officer, the applicant may advise TTB that the information on file is part of the application for registration;
</P>
<P>(6) A list of any operating permits, basic permits, operations bonds, withdrawal bonds, and/or unit bonds, including the amount of any bond(s) and the name of the surety on the bond;
</P>
<P>(7) In the case of a corporation, a list of the offices and officers authorized by the articles of incorporation or the board of directors to sign or act on behalf of the corporation;
</P>
<P>(8) A description of the plant in accordance with § 19.74;
</P>
<P>(9) A list of major equipment in accordance with § 19.75;
</P>
<P>(10) A statement of the maximum number of proof gallons that will be produced in the distillery during a period of 15 days, stored on the bonded premises, and in transit to the bonded premises. This statement is not required if the operations or unit bond is in the maximum amount;
</P>
<P>(11) A statement that accounting records will be maintained in accordance with generally accepted accounting principles;
</P>
<P>(12) A statement of plant security measures in accordance with § 19.76;
</P>
<P>(13) The following information if the applicant intends to operate as a distiller:
</P>
<P>(i) Total proof gallons of spirits that can be produced daily;
</P>
<P>(ii) A statement of production procedures in accordance with § 19.77; and
</P>
<P>(iii) A statement as to whether spirits will be redistilled;
</P>
<P>(14) The following information if the applicant intends to operate as a warehouseman:
</P>
<P>(i) A description of the storage system; and
</P>
<P>(ii) Total amount of bulk wine gallons that can be stored; 
</P>
<P>(15) The following information if the applicant intends to operate as a processor:
</P>
<P>(i) A statement whether spirits will or will not be bottled, denatured, redistilled, and whether articles will be manufactured; and
</P>
<P>(ii) A description of the storage system for spirits bottled and cased or otherwise packaged and placed in approved containers for removal from bonded premises; and
</P>
<P>(16) A statement whether the applicant is required to furnish a bond under § 19.151.
</P>
<P>(b) <I>Other business.</I> If the applicant intends to conduct any other business on the distilled spirits plant premises as authorized under § 19.55, the following information must be submitted with the application:
</P>
<P>(1) A description of the business;
</P>
<P>(2) A list of buildings and equipment that will be used; and
</P>
<P>(3) A statement of the relationship of the business to the distilled spirits operations at the plant.
</P>
<P>(c) <I>Additional information.</I> The applicant must furnish any additional information needed by TTB to determine if the application for registration should be approved.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172, 6001)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1119, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.74" NODE="27:1.0.1.1.15.4.163.4" TYPE="SECTION">
<HEAD>§ 19.74   Description of the plant.</HEAD>
<P>As required by § 19.73(a)(8), the application for registration must include a description of the distilled spirits plant. This information must:
</P>
<P>(a) Describe each tract of land covered by distilled spirits plant;
</P>
<P>(b) Clearly distinguish between the bonded premises and any general premises;
</P>
<P>(c) Provide directions and distances in enough detail to enable the appropriate TTB officer to readily determine the boundaries of the plant;
</P>
<P>(d) Describe each building and outside tank that will be used for production, storage, and processing of spirits and for denaturing spirits, articles, or wines. The description must include the location, size, construction, and arrangement with reference to each by a designated number or letter; and
</P>
<P>(e) Specify when only a room or floor of a building will be used for plant operations and provide the location and description of the building, floor, and room.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.75" NODE="27:1.0.1.1.15.4.163.5" TYPE="SECTION">
<HEAD>§ 19.75   Major equipment.</HEAD>
<P>As required by § 19.73(a)(9), the application for registration must include a list of the major plant equipment. If the equipment is set up and used for the production, storage, or processing of distilled spirits, wine, denatured spirits, or articles, the list must provide the following information:
</P>
<P>(a) The serial number and capacity of each tank in the plant. The list does not need to include any bulk containers having a capacity of less than 101 wine gallons on the plant premises if those containers do not meet the criteria of a tank under § 19.182 (perks, small totes, etc.);
</P>
<P>(b) The serial number, kind, capacity, and intended use of each still in the plant. The capacity is the estimated maximum proof gallons of spirits capable of being produced every 24 hours, or for column stills a statement of the diameter of the base and number of plates; and
</P>
<P>(c) The serial number of each condenser.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5179)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.76" NODE="27:1.0.1.1.15.4.163.6" TYPE="SECTION">
<HEAD>§ 19.76   Statement of plant security.</HEAD>
<P>As required by § 19.73(a)(12), the application for registration must include a statement of plant security. This statement must include the following information:
</P>
<P>(a) A general description of plant security, including methods used to secure buildings or plant operations located within a portion of a building and outdoor tanks;
</P>
<P>(b) A statement regarding the use of guard personnel;
</P>
<P>(c) A statement regarding the use of any electronic or mechanical alarm system;
</P>
<P>(d) A statement certifying that locks used will meet the requirements of § 19.192(f); and
</P>
<P>(e) A list of persons, by their position and title, who have the responsibility for the custody and access to keys for the locks.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.77" NODE="27:1.0.1.1.15.4.163.7" TYPE="SECTION">
<HEAD>§ 19.77   Statement of production procedure.</HEAD>
<P>(a) As required by § 19.73(a)(13)(ii), the application for registration must include a statement of the step-by-step production procedure used to produce spirits from an original source. The statement must begin with the treating, mashing, or fermenting of the raw materials or substances and continue through each step of the distilling, purifying, and refining procedure to the production gauge. The statement must include the kind and approximate quantity of each material or substance used in producing, purifying, or refining each type of spirits that will be produced.
</P>
<P>(b) If the applicant intends to redistill spirits in the production account, the applicant must submit and receive approval for such redistillation on form TTB F 5110.38, Formula for Distilled Spirits under the Federal Alcohol Administration Act.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5201, 5222, 5223, 5555)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.78" NODE="27:1.0.1.1.15.4.163.8" TYPE="SECTION">
<HEAD>§ 19.78   Power of attorney.</HEAD>
<P>An applicant or proprietor of a distilled spirits plant must execute and submit to the appropriate TTB officer form TTB F 5000.8, Power of Attorney, for each person authorized to sign or to act on behalf of the applicant or proprietor unless the authority has been granted in the application for registration.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.79" NODE="27:1.0.1.1.15.4.163.9" TYPE="SECTION">
<HEAD>§ 19.79   Registry of stills.</HEAD>
<P>Section 29.55 of this chapter requires that every person having possession, custody, or control of a still or distilling apparatus must register the still or distilling apparatus. When a person lists a still or distilling apparatus with the application for registration as required by § 19.75(b) and receives approval of the registration, that person has fulfilled the requirement to register the still or distilling apparatus. See § 29.55 of this chapter for additional provisions regarding stills and distilling apparatus.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5179)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.80" NODE="27:1.0.1.1.15.4.163.10" TYPE="SECTION">
<HEAD>§ 19.80   Approved notice of registration.</HEAD>
<P>A person may not operate a distilled spirits plant unless a notice of registration has been approved by TTB authorizing the businesses and operations to be conducted at such plant. When approved by the appropriate TTB officer, the application for registration constitutes the notice of registration of the distilled spirits plant. A distilled spirits plant will not be registered or reregistered under this subpart until the applicant has complied with all requirements of law and regulations relating to the qualification of the business or operations in which the applicant intends to engage. In any instance where a person is required to have a bond or permit and the bond or permit becomes invalid, then the notice of registration also becomes invalid. Another application for registration must be filed and a new notice of registration approved by TTB before the business or operation at such plant may be resumed. Reregistration of a plant is not required when a new bond or a strengthening bond is filed in accordance with § 19.167 or § 19.168.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.81" NODE="27:1.0.1.1.15.4.163.11" TYPE="SECTION">
<HEAD>§ 19.81   Maintenance of registration file.</HEAD>
<P>The proprietor must maintain the registration documents on the plant premises in a loose-leaf file that is current, complete, and readily available for inspection by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="164" NODE="27:1.0.1.1.15.4.164" TYPE="SUBJGRP">
<HEAD>Requirements for an Operating Permit Under the IRC</HEAD>


<DIV8 N="§ 19.91" NODE="27:1.0.1.1.15.4.164.12" TYPE="SECTION">
<HEAD>§ 19.91   Operating permit.</HEAD>
<P>(a) Except as provided in paragraph (b) of this section, a person must obtain an operating permit under the IRC in order to:
</P>
<P>(1) Distill for industrial use;
</P>
<P>(2) Warehouse spirits for industrial use;
</P>
<P>(3) Denature spirits;
</P>
<P>(4) Warehouse spirits (without bottling) for nonindustrial use;
</P>
<P>(5) Bottle or package spirits for industrial use;
</P>
<P>(6) Manufacture articles; or
</P>
<P>(7) Engage in any other distilling, warehousing, or processing operation not required to be covered by a basic permit under the Federal Alcohol Administration Act (49 Stat. 978; 27 U.S.C. 203, 204).
</P>
<P>(b) <I>Exception.</I> The requirement to obtain an operating permit does not apply to an agency of a State, or political subdivision of a State, or an officer or employee of, and acting for, such an agency.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.92" NODE="27:1.0.1.1.15.4.164.13" TYPE="SECTION">
<HEAD>§ 19.92   Information required in application for operating permit.</HEAD>
<P>(a) In order to obtain an operating permit, a person must complete an application on form TTB F 5110.25, Application for Operating Permit Under 26 U.S.C. 5171(d). TTB will consider all written statements, affidavits and other documents submitted in support of the application as part of the application.
</P>
<P>(b) The application on TTB F 5110.25 must include the following information:
</P>
<P>(1) The name and principal address of the business;
</P>
<P>(2) The address of the plant if different from the business address;
</P>
<P>(3) A description of the operation(s) to be conducted;
</P>
<P>(4) A statement of the business organization and the persons involved in the business as required under § 19.93; and
</P>
<P>(5) A list of trade names as required under § 19.94.
</P>
<P>(c) A TTB officer may request that any person listed under § 19.93(a)(1)(ii), (a)(3)(iii), (b)(1), or (b)(2) submit to TTB a statement as to whether that person has ever:
</P>
<P>(1) Been convicted of a felony or misdemeanor under Federal or State law, other than a misdemeanor conviction for a traffic violation;
</P>
<P>(2) Been arrested or charged with any violation of State or Federal law, other than an arrest or charge for a misdemeanor traffic violation; or
</P>
<P>(3) Applied for, held, or been connected with a permit issued under Federal law to manufacture, distribute, sell or use spirits or products containing spirits, or held any financial interest in any business covered by any such permit, and if so, give the permit number, classification, period of operation and details regarding any denial, suspension, revocation or other termination.
</P>
<P>(d) If any of the information required in paragraphs (b)(4) or (c)(3) of this section is on file with the appropriate TTB officer, the applicant may, by incorporation by reference, state that the information is made a part of the application for an operating permit.
</P>
<P>(e) The applicant must provide any additional information that the appropriate TTB officer may request in order to determine whether the application should be approved.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.93" NODE="27:1.0.1.1.15.4.164.14" TYPE="SECTION">
<HEAD>§ 19.93   Applicant organization documents.</HEAD>
<P>(a) <I>Supporting information.</I> Sections 19.73(a)(5) and 19.92(a)(4) require that the application for registration and the application for an operating permit include information about the business organization of the applicant. The applicant must provide the following information as applicable:
</P>
<P>(1) If the applicant is a corporation—
</P>
<P>(i) The corporate charter or other documentation that provides proof of corporate existence or incorporation;
</P>
<P>(ii) Names and addresses of directors and officers;
</P>
<P>(iii) Certified minutes, or extracts of board of directors meetings, that authorize specific individuals to sign for the corporation; and
</P>
<P>(iv) A statement showing the number of shares of each class of stock or other evidence of ownership, authorized and outstanding, and the voting rights of the respective owners or holders.
</P>
<P>(2) If the applicant is a partnership, a copy of the articles of partnership or association, or certificate of partnership or association if required to be filed by any State, county, or municipality.
</P>
<P>(3) If the applicant is a limited liability company or limited liability partnership—
</P>
<P>(i) A copy of the articles of organization;
</P>
<P>(ii) A copy of the operating agreement; and
</P>
<P>(iii) The names and addresses of all members and managers.
</P>
<P>(b) <I>Statement of interest</I>—(1) <I>Sole proprietorships and general partnerships.</I> In the case of an individual owner or a general partnership, the applicant must provide the name and address of each person having an interest in the business and a statement indicating whether the interest appears in the name of the interested person or in the name of another person.
</P>
<P>(2) <I>Limited liability entities.</I> In the case of a corporation, limited liability partnership, limited liability company, or other legal entity in which some or all of the owners have limited personal liability for the activities of the entity, the applicant must provide the following information about persons having an interest in the business:
</P>
<P>(i) The names and addresses of the 10 persons that have the largest ownership or other interest in each of the classes of ownership of the applicant and the nature and amount of ownership or other interest of each person.
</P>
<P>(ii) The name of the person in whose name the interest appears. If the corporation is wholly owned or controlled by another corporation, the appropriate TTB officer may request the same information regarding ownership for the parent corporation.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.94" NODE="27:1.0.1.1.15.4.164.15" TYPE="SECTION">
<HEAD>§ 19.94   Trade names.</HEAD>
<P>(a) <I>Operating permits.</I> The applicant must include a list of any trade names used in the operation of the plant with form TTB F 5110.25, Application for Operating Permit Under 26 U.S.C. 5171(d). The applicant must show the operations for which the trade name will be used and identify the offices where the trade name is registered. The applicant must also submit copies of any certificate or other document filed or issued for each trade name.
</P>
<P>(b) <I>Basic permits.</I> If the applicant is required to have a basic permit under the Federal Alcohol Administration Act (49 Stat. 978; 27 U.S.C. 203, 204) for distilling, warehousing, or processing operations, then the applicant must follow the regulations under that Act for the approval and use of trade names.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.95" NODE="27:1.0.1.1.15.4.164.16" TYPE="SECTION">
<HEAD>§ 19.95   Issuance of operating permits.</HEAD>
<P>TTB will issue only one operating permit for a distilled spirits plant. The permit will designate the operations that are authorized at the plant. The proprietor must post the permit at the distilled spirits plant and have it available for inspection by appropriate TTB officers.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.96" NODE="27:1.0.1.1.15.4.164.17" TYPE="SECTION">
<HEAD>§ 19.96   Denial of permit.</HEAD>
<P>TTB will conduct proceedings for the denial of an application for an operating permit in accordance with the procedures set forth in part 71 of this chapter if the appropriate TTB officer has reason to believe that:
</P>
<P>(a) The applicant (including, in the case of a corporation, any officer, director, or principal stockholder, and, in the case of a partnership, a partner) is, by reason of business experience, financial standing, or trade connections, not likely to maintain operations in compliance with 26 U.S.C. chapter 51, or the regulations issued thereunder;
</P>
<P>(b) The applicant failed to disclose any material information required, or has made a false statement as to any material fact in connection with the application; or
</P>
<P>(c) The premises where the applicant proposes to conduct the operations are not adequate to protect the revenue.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.97" NODE="27:1.0.1.1.15.4.164.18" TYPE="SECTION">
<HEAD>§ 19.97   Correction of permit.</HEAD>
<P>If requested by the appropriate TTB officer, a proprietor must immediately return for correction any operating permit that contains an error.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.98" NODE="27:1.0.1.1.15.4.164.19" TYPE="SECTION">
<HEAD>§ 19.98   Duration of permit.</HEAD>
<P>The proprietor may conduct the operations authorized by the operating permit on a continuing basis unless:
</P>
<P>(a) The proprietor voluntarily surrenders the permit;
</P>
<P>(b) TTB suspends or revokes the permit pursuant to § 19.99; or
</P>
<P>(c) The permit is automatically terminated under its own terms or in accordance with § 19.127.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.99" NODE="27:1.0.1.1.15.4.164.20" TYPE="SECTION">
<HEAD>§ 19.99   Suspension or revocation of permit.</HEAD>
<P>TTB will conduct proceedings to revoke or suspend an operating permit in accordance with the procedures set forth in part 71 of this chapter if the appropriate TTB officer has a reason to believe that the proprietor or any person associated with the operating permit:
</P>
<P>(a) Has not complied in good faith with the provisions of 26 U.S.C. chapter 51 or the regulations issued thereunder;
</P>
<P>(b) Has violated the conditions of the permit;
</P>
<P>(c) Has made a false statement as to any material fact in the application for the permit;
</P>
<P>(d) Has failed to disclose any required material information;
</P>
<P>(e) Has violated or conspired to violate any law of the United States relating to intoxicating liquor;
</P>
<P>(f) Has been convicted of any offense under title 26 U.S.C. punishable as a felony or of any conspiracy to commit such an offense; or
</P>
<P>(g) Has not engaged in any of the operations authorized by the permit for a period of more than 2 years.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5271)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.15.5" TYPE="SUBPART">
<HEAD>Subpart E—Changes to Registrations and Permits</HEAD>


<DIV8 N="§ 19.111" NODE="27:1.0.1.1.15.5.165.1" TYPE="SECTION">
<HEAD>§ 19.111   Scope.</HEAD>
<P>This subpart explains the requirements for amending a distilled spirits plant registration and, if applicable, an operating permit. For information regarding amendments to a basic permit issued under the Federal Alcohol Administration Act, see part 1 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171)


</SECAUTH>
</DIV8>


<DIV7 N="165" NODE="27:1.0.1.1.15.5.165" TYPE="SUBJGRP">
<HEAD>Rules for Amending a Registration</HEAD>


<DIV8 N="§ 19.112" NODE="27:1.0.1.1.15.5.165.2" TYPE="SECTION">
<HEAD>§ 19.112   General rules for amending a registration.</HEAD>
<P>If there is a change in any of the information in the proprietor's current, approved notice of registration, the proprietor must amend the registration within 30 days of the change unless another time period is specified in this subpart. To amend a registration the proprietor must submit in writing to the appropriate TTB officer any information necessary to make the registration file current and accurate.
</P>
<P>(a) <I>TTB F 5110.41.</I> Except when a letterhead application or letterhead notice procedure is allowed under this subpart, the proprietor must submit an amended form TTB F 5110.41, Registration of Distilled Spirits Plant, for changes that affect the registration. If the changes affect only parts or pages of the registration the proprietor only needs to submit the necessary pages or information that will make the registration file current.
</P>
<P>(b) <I>Letterhead applications.</I> For certain changes specified in this subpart the proprietor may submit a letterhead application for a change instead of an amended TTB F 5110.41. The letterhead application must identify the distilled spirits plant to which the change applies and clearly identify the change. Any change is subject to TTB approval. The appropriate TTB officer may, at any time, require that the proprietor submit an amended application on TTB F 5110.41 if administrative difficulties occur as a result of the letterhead application.
</P>
<P>(c) <I>Letterhead notices.</I> For certain changes specified in this subpart only a letterhead notice is required. The letterhead notice must identify the distilled spirits plant to which the change applies and clearly identify the change. A letterhead notice does not require approval by TTB. The appropriate TTB officer may, at any time, require that the proprietor submit an amended application on TTB F 5110.41 if administrative difficulties occur as a result of the letterhead notice.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.113" NODE="27:1.0.1.1.15.5.165.3" TYPE="SECTION">
<HEAD>§ 19.113   Change in name of proprietor.</HEAD>
<P>If the name of the of the proprietor changes, the proprietor may not conduct operations under the new name before TTB approves the amended registration. The proprietor must file either an amended form TTB F 5110.41, Registration of Distilled Spirits Plant, or a letterhead application to reflect the change. However, the proprietor does not have to file a new bond or consent of surety.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.114" NODE="27:1.0.1.1.15.5.165.4" TYPE="SECTION">
<HEAD>§ 19.114   Changes in stockholders or persons with interest.</HEAD>
<P>The proprietor must notify TTB of any changes in the list of stockholders or persons with interest that was filed with TTB as required by § 19.93. If the change results in a change of control, the proprietor must file form TTB F 5110.41, Registration of Distilled Spirits Plant, within 30 days of the change. If the change does not cause a change of control, the proprietor:
</P>
<P>(a) May file a letterhead notice to amend the registration;
</P>
<P>(b) May file the amended notice on May 1 of each year rather than within 30 days of the change, or on any other date that the appropriate TTB Officer may approve; and
</P>
<P>(c) Must incorporate all changes submitted by letterhead notice in the next TTB F 5110.41 filed.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.115" NODE="27:1.0.1.1.15.5.165.5" TYPE="SECTION">
<HEAD>§ 19.115   Change in officers, directors, members, or managers</HEAD>
<P>(a) <I>General.</I> If there is a change in the list of officers, directors, members or managers that the proprietor filed as required by § 19.93 the following rules apply:
</P>
<P>(1) The proprietor must file an amended form TTB F 5110.41, Registration of Distilled Spirits Plant, or a letterhead notice to reflect the change;
</P>
<P>(2) The proprietor must provide the name and address of each new officer, director, member or manager; and
</P>
<P>(3) The proprietor must incorporate all changes submitted by letterhead notice in the next TTB F 5110.41 filed.
</P>
<P>(b) <I>Waiver.</I> The appropriate TTB officer may waive the requirement to amend the registration if the change only relates to corporate officers listed on the original or current registration who are no longer connected with the operations covered by the registration.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.116" NODE="27:1.0.1.1.15.5.165.6" TYPE="SECTION">
<HEAD>§ 19.116   Change in proprietorship.</HEAD>
<P>(a) <I>General.</I> If there is a change in proprietorship at a distilled spirits plant, the following requirements apply to the outgoing proprietor and to the incoming (successor) proprietor.
</P>
<P>(1) <I>Outgoing proprietor.</I> An outgoing proprietor must comply with the requirements of § 19.147. An outgoing proprietor may transfer spirits to its successor in accordance with § 19.141.
</P>
<P>(2) <I>Incoming proprietor.</I> A successor to the proprietorship of a plant that holds a registration:
</P>
<P>(i) Must file form TTB F 5110.41, Registration of Distilled Spirits Plant, and receive from TTB an approved notice of registration of the plant;
</P>
<P>(ii) Must file the required bonds, subject to the exemption provided in § 19.151(d); and
</P>
<P>(iii) May adopt the approved formulas of its predecessor in accordance with §§ 5.194 and 20.63 of this chapter.
</P>
<P>(b) <I>Fiduciary.</I> If the successor to the proprietorship of a plant is an administrator, executor, receiver, trustee, assignee or other fiduciary, the successor must comply with the provisions of paragraph (a)(2) of this section. The following rules also apply in this case:
</P>
<P>(1) The fiduciary may furnish a consent of surety to extend the terms of the predecessor's bond instead of filing a new bond;
</P>
<P>(2) The fiduciary may incorporate by reference in the application for registration on TTB F 5110.41 any information contained in the predecessor's application for registration that is still current;
</P>
<P>(3) The successor must furnish a certified copy of the order of the court or other pertinent document showing the successor's qualification as fiduciary; and
</P>
<P>(4) The effective date of the qualifying documents that the fiduciary files will be the date of the court order, the date specified in the order whereby the fiduciary assumes control, or if there is no court order, the date that the fiduciary assumed control.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1119, Jan. 4, 2017; T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.117" NODE="27:1.0.1.1.15.5.165.7" TYPE="SECTION">
<HEAD>§ 19.117   Partnerships.</HEAD>
<P>(a) If there is a death or insolvency of a partner in the business registered under this part, the surviving partner or partners may continue to operate under the notice of registration if:
</P>
<P>(1) The partnership is not terminated under the laws of the particular State but continues until the winding up of the partnership affairs is complete;
</P>
<P>(2) The surviving partner or partners have exclusive right to the control and possession of the partnership assets for purposes of liquidation and settlement; and
</P>
<P>(3) A consent of surety is filed where the surety and the surviving partner or partners agree to remain liable on the operations or unit bond.
</P>
<P>(b) If the surviving partner or partners acquire the business upon settlement of the partnership, the surviving partner or partners must file as an incoming proprietor and receive an approved notice of registration of the plant in accordance with § 19.116(a).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.118" NODE="27:1.0.1.1.15.5.165.8" TYPE="SECTION">
<HEAD>§ 19.118   Change in location.</HEAD>
<P>(a) If the location of the plant changes, the proprietor must:
</P>
<P>(1) File form TTB F 5110.41, Registration of Distilled Spirits Plant, to amend the registration;
</P>
<P>(2) File a new bond or a consent of surety on form TTB F 5000.18, subject to the exemption provided in § 19.151(d); and
</P>
<P>(3) Not begin operations at the new location prior to approval of the amended registration.
</P>
<P>(b) If there is a temporary change of delivery address within a plant with no change in plant location, the proprietor may file a letterhead notice to temporarily amend the registration.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5173, 5271)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1119, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.119" NODE="27:1.0.1.1.15.5.165.9" TYPE="SECTION">
<HEAD>§ 19.119   Change in premises.</HEAD>
<P>If the proprietor intends to extend or curtail any part of the plant premises, except under alternate operations that are covered by §§ 19.142 and 19.143, the proprietor must file form TTB F 5110.41, Registration of Distilled Spirits Plant, to amend the registration. The proprietor must not extend or curtail any premises or equipment before the amended registration is approved.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.120" NODE="27:1.0.1.1.15.5.165.10" TYPE="SECTION">
<HEAD>§ 19.120   Change in operations.</HEAD>
<P>(a) If the proprietor wishes to conduct additional operations involving spirits, other than those approved on the current registration, the proprietor must:
</P>
<P>(1) File form TTB F 5110.41, Registration of Distilled Spirits Plant, to amend the registration; and
</P>
<P>(2) Not engage in the additional operations prior to approval of the amended registration.
</P>
<P>(b) If the proprietor wishes to engage in another business that is authorized under § 19.55 the proprietor must:
</P>
<P>(1) File TTB F 5110.41 to amend the registration;
</P>
<P>(2) Include the information required under § 19.73(b); and
</P>
<P>(3) Not engage in the other business until approval of the amended registration is received.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.121" NODE="27:1.0.1.1.15.5.165.11" TYPE="SECTION">
<HEAD>§ 19.121   Change in production procedure.</HEAD>
<P>If the proprietor plans to produce a new product or make a change to the production procedure that will affect the designation of the product or substantially affect the character of the product, the proprietor must:
</P>
<P>(a) File form TTB F 5110.41, Registration of Distilled Spirits Plant, to amend the registration;
</P>
<P>(b) Provide a new statement of production procedure as described in § 19.77; and
</P>
<P>(c) Receive approval of the amended registration before implementing the change in the production procedure.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.122" NODE="27:1.0.1.1.15.5.165.12" TYPE="SECTION">
<HEAD>§ 19.122   Change in construction or use of buildings and equipment.</HEAD>
<P>(a) The proprietor must submit a letterhead notice before making any material change in the construction or use of buildings or equipment at the plant other than changes covered by § 19.119, § 19.142 or § 19.143. The proprietor must:
</P>
<P>(1) Describe the proposed change in detail;
</P>
<P>(2) Keep a copy of the letterhead notice on file with the current notice of registration; and
</P>
<P>(3) Incorporate the change in the next amendment to the registration submitted on form TTB F 5110.41, Registration of Distilled Spirits Plant, unless the appropriate TTB officer requires immediate submission of an amended TTB F 5110.41.
</P>
<P>(b) The proprietor may make emergency changes in construction or use of buildings and equipment without prior letterhead notice. However, the proprietor must promptly report any emergency change to the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.123" NODE="27:1.0.1.1.15.5.165.13" TYPE="SECTION">
<HEAD>§ 19.123   Statement of plant security.</HEAD>
<P>If the proprietor makes changes to the personnel listed, or procedures contained in, the statement of plant security filed under § 19.76, the proprietor must:
</P>
<P>(a) File a form TTB F 5110.41, Registration of Distilled Spirits Plant, or a letterhead application to amend the registration, in the case of any change in the description of plant security, employment of guard personnel, use of electronic or mechanical alarm system, or certification of required locks required under § 19.76(a) through (d);
</P>
<P>(b) File a letterhead notice for any change in personnel who have custody and access to keys for the required locks as provided under § 19.76(e); and
</P>
<P>(c) Incorporate any changes filed by letterhead notice in the next amendment to the registration on TTB F 5110.41 submitted, unless the appropriate TTB officer requires an immediate submission of TTB F 5110.41.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="166" NODE="27:1.0.1.1.15.5.166" TYPE="SUBJGRP">
<HEAD>Rules for Amending an Operating Permit</HEAD>


<DIV8 N="§ 19.126" NODE="27:1.0.1.1.15.5.166.14" TYPE="SECTION">
<HEAD>§ 19.126   General rules for amending an operating permit.</HEAD>
<P>(a) <I>When and how to amend.</I> If there is a change in any of the information that the proprietor provided as part of the current approved application for an operating permit, the proprietor must amend the operating permit by submitting written documentation in accordance with this section to the appropriate TTB officer in writing within 30 days of the change unless another time period is specified in this subpart.
</P>
<P>(1) <I>TTB F 5110.25.</I> Except when a letterhead application or letterhead notice procedure is allowed under this subpart, the proprietor must amend the operating permit by submitting an amended form TTB F 5110.25, Application for Operating Permit Under 26 U.S.C. 5171(d). If the changes only affect parts or pages of the application for an operating permit the proprietor only needs to submit the necessary pages or information that will make the permit file current.
</P>
<P>(2) <I>Letterhead applications.</I> For certain changes specified in this subpart, the proprietor may submit a letterhead application instead of an amended TTB F 5110.25. The letterhead application must identify the distilled spirits plant for which the application applies. The letterhead application change is subject to TTB approval. The appropriate TTB officer may, at any time, require that the proprietor submit an amended application on TTB F 5110.25 if administrative difficulties occur as a result of the letterhead application.
</P>
<P>(3) <I>Letterhead notices.</I> For certain changes noted in this subpart only a letterhead notice is required. A letterhead notice does not require approval by TTB. The appropriate TTB officer may, at any time, require that the proprietor submit amended application on TTB F 5110.25 if administrative difficulties occur as a result of the letterhead notice.
</P>
<P>(b) <I>FAA Act permits.</I> If there are changes that affect a basic permit issued under the Federal Alcohol Administration Act, the proprietor must amend the basic permit in accordance with the procedures set forth in part 1 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.127" NODE="27:1.0.1.1.15.5.166.15" TYPE="SECTION">
<HEAD>§ 19.127   Automatic termination of permits.</HEAD>
<P>(a) <I>Operating permits.</I> An operating permit is not transferable. The proprietor's operating permit will automatically terminate in the following circumstances:
</P>
<P>(1) If the operations that are authorized by the permit are leased, sold or transferred;
</P>
<P>(2) If the company is dissolved on a certain date by an event specified in the laws of the State where the company operates; or
</P>
<P>(3) In the case of a corporation, if actual or legal control of the corporation changes, directly or indirectly, whether by reason of change in stock ownership or control, by operation of law, or in any other manner, the permit will terminate 30 days after the change in control. However, if an application for a new permit covering the operations is made within this 30 day period, then the operating permit may remain in effect until TTB takes final action upon the new application. TTB's final action on the new application will automatically terminate the outstanding permit.
</P>
<P>(b) <I>Basic permits.</I> For provisions related to the automatic termination of an FAA Act basic permit, see part 1 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.128" NODE="27:1.0.1.1.15.5.166.16" TYPE="SECTION">
<HEAD>§ 19.128   Change in name of proprietor.</HEAD>
<P>If the name of the proprietor changes, the proprietor must file a letterhead application to amend the operating permit. The proprietor may not conduct operations under the new name before TTB approves the amended operating permit. However, the proprietor does not have to file a new bond or consent of surety.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.129" NODE="27:1.0.1.1.15.5.166.17" TYPE="SECTION">
<HEAD>§ 19.129   Change in trade name.</HEAD>
<P>If the proprietor intends to change or add a trade name that will be used in the operation of the plant, the proprietor must file a letterhead application to amend the operating permit. The proprietor may not conduct operations under the new trade name before TTB approves the amended operating permit. However, the proprietor will not be required to file a new bond or consent of surety.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.130" NODE="27:1.0.1.1.15.5.166.18" TYPE="SECTION">
<HEAD>§ 19.130   Changes in stockholders or persons with interest.</HEAD>
<P>The proprietor must notify TTB of any changes in the list of stockholders or persons with interest that was filed with TTB as required by § 19.93(b). If the change results in a change of control, the proprietor must file form TTB F 5110.25, Application for Operating Permit Under 26 U.S.C. 5171(d), within 30 days of the change. If the change does not cause a change in control the proprietor:
</P>
<P>(a) May file a letterhead notice to amend the operating permit;
</P>
<P>(b) May file the amended notice the May 1st following the change in control year rather than within 30 days of the change, or on any other date that the appropriate TTB officer may approve; and
</P>
<P>(c) Must incorporate all changes submitted by letterhead notice in the next TTB F 5110.25 filed.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5271)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 19.131" NODE="27:1.0.1.1.15.5.166.19" TYPE="SECTION">
<HEAD>§ 19.131   Changes in officers, directors, members, or managers.</HEAD>
<P>(a) <I>General.</I> If there is a change in the list of officers, directors, members or managers that the proprietor filed as required by § 19.93, the proprietor must:
</P>
<P>(1) File form TTB F 5110.25 Application for Operating Permit Under 26 U.S.C. 5171(d) or a letterhead notice to amend the operating permit;
</P>
<P>(2) Provide the name and address for each new officer, director, member or manager; and
</P>
<P>(3) Incorporate all changes submitted by letterhead notice in the next TTB F 5110.25 filed.
</P>
<P>(b) <I>Waiver.</I> The appropriate TTB officer may waive the requirement to amend the operating permit if the changes relate to corporate officers listed on the original or current permit who are no longer connected with the operations covered by the permit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.132" NODE="27:1.0.1.1.15.5.166.20" TYPE="SECTION">
<HEAD>§ 19.132   Change in proprietorship.</HEAD>
<P>(a) <I>General.</I> If there is a change in proprietorship at a distilled spirits plant that holds an operating permit, the following requirements apply to the outgoing proprietor and to the incoming (successor) proprietor.
</P>
<P>(1) <I>Outgoing proprietor.</I> An outgoing proprietor must comply with the requirements of § 19.147. An outgoing proprietor may transfer spirits to its successor an accordance with § 19.141.
</P>
<P>(2) <I>Successor proprietor.</I> A successor to the proprietorship of a plant that holds an operating permit:
</P>
<P>(i) Must file form TTB F 5110.25 Application for Operating Permit Under 26 U.S.C. 5171(d) and obtain an operating permit;
</P>
<P>(ii) Must file the required bonds, subject to the exemption provided in § 19.151(d); and
</P>
<P>(iii) May adopt the approved formulas of its predecessor in accordance with §§ 5.194 and 20.63 of this chapter.
</P>
<P>(b) <I>Fiduciary.</I> If the successor to the proprietorship of a plant is an administrator, executor, receiver, trustee, assignee, or other fiduciary, the successor must comply with the provisions of paragraph (a)(2) of this section. The following rules also apply in this case:
</P>
<P>(1) The fiduciary may furnish a consent of surety to extend the terms of the predecessor's bond instead of filing a new bond;
</P>
<P>(2) On TTB F 5110.25, Application for Operating Permit Under 26 U.S.C. 5171(d), the fiduciary may incorporate by reference any information contained in the predecessor's application that is still current;
</P>
<P>(3) The successor must furnish a certified copy of the order of the court or other pertinent document showing the successor's qualification as fiduciary; and
</P>
<P>(4) The effective date of the qualifying documents that the fiduciary files will be the date of the court order, the date specified in the order whereby the fiduciary assumes control, or if there is no court order, the date that the fiduciary assumed control.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1120, Jan. 4, 2017; T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.133" NODE="27:1.0.1.1.15.5.166.21" TYPE="SECTION">
<HEAD>§ 19.133   Partnerships.</HEAD>
<P>(a) If there is a death or insolvency of a partner in a company that holds an operating permit under this part, the surviving partner or partners may continue to operate under the operating permit if:
</P>
<P>(1) The partnership is not terminated under the laws of the particular State but continues until the winding up of the partnership affairs is complete;
</P>
<P>(2) The surviving partner or partners have exclusive right to the control and possession of the partnership assets for purposes of liquidation and settlement; and
</P>
<P>(3) A consent of surety is filed where the surety and the surviving partner or partners agree to remain liable on the operations or unit bond.
</P>
<P>(b) If the surviving partner or partners acquire the business upon settlement of the partnership, the surviving partner or partners must file as an incoming proprietor and receive approval of the operating permit as required under § 19.132(a)(2).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.134" NODE="27:1.0.1.1.15.5.166.22" TYPE="SECTION">
<HEAD>§ 19.134   Change in location.</HEAD>
<P>If the location of the plant changes, the proprietor must:
</P>
<P>(a) File form TTB F 5110.25, Application for Operating Permit Under 26 U.S.C. 5171(d), to amend the operating permit;
</P>
<P>(b) File a new bond or a consent of surety on form TTB F 5000.18, subject to the exemption provided in § 19.151(d); and
</P>
<P>(c) Not begin operations at the new location prior to approval of the amended operating permit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5271, 5173)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1120, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.135" NODE="27:1.0.1.1.15.5.166.23" TYPE="SECTION">
<HEAD>§ 19.135   Change in operations.</HEAD>
<P>If the proprietor wishes to conduct additional operations involving spirits, other than those already approved on the current operating permit, the proprietor must:
</P>
<P>(a) File form TTB F 5110.25 Application for Operating Permit Under 26 U.S.C. 5171(d) to amend the permit; and
</P>
<P>(b) Not engage in the additional operation prior to approval of the amended permit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5172, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.136" NODE="27:1.0.1.1.15.5.166.24" TYPE="SECTION">
<HEAD>§ 19.136   Change in bond status.</HEAD>
<P>A proprietor must file TTB F 5110.41, Registration of Distilled Spirits Plant, to amend the registration relating to the proprietor's bond status if either of the following occurs:
</P>
<P>(a) A proprietor who has not furnished any bond becomes required to furnish a bond as provided under § 19.168(b); or
</P>
<P>(b) A proprietor who has furnished a bond becomes exempt from bond requirements under § 19.151(d) and chooses to terminate all bond coverage as provided under § 19.170(e).
</P>
<CITA TYPE="N">[T.D. TTB-146 82 FR 1120, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="167" NODE="27:1.0.1.1.15.5.167" TYPE="SUBJGRP">
<HEAD>Alternation of Plant Proprietors</HEAD>


<DIV8 N="§ 19.141" NODE="27:1.0.1.1.15.5.167.25" TYPE="SECTION">
<HEAD>§ 19.141   Procedures for alternation of proprietors.</HEAD>
<P>(a) <I>General.</I> A proprietor may alternate use of a distilled spirits plant or part of the plant with one or more other proprietors. In order to do so, each proprietor must separately file and receive approval of the necessary registration, applications and bonds that are required by subparts D and E of this part. Each proprietor must also conduct operations and keep records in accordance with the regulations in this part. Where operations by alternating proprietors will be limited to parts of the plant, each proprietor must include the following in the notice of registration:
</P>
<P>(1) A description of the areas, rooms or buildings, or combination of rooms or buildings that will alternate between proprietors;
</P>
<P>(2) The method that the proprietor will use to separate the alternated premises from any premises that will not be alternated; and
</P>
<P>(3) Diagrams of the parts of the plant that will be alternated.
</P>
<P>(b) <I>Letterhead notice.</I> After a proprietor receives approval to alternate use of the premises with another proprietor, the alternating proprietors must separately file letterhead notices each time they intend to alternate use of the premises. The proprietors may file a single notice if the notice is signed by each proprietor or an authorized representative of each proprietor. The proprietors must submit the letterhead notice to the appropriate TTB officer prior to the first day that alternation is to take place. Proprietors must include the following with the notice:
</P>
<P>(1) The plant number and the name of the proprietor filing the notice;
</P>
<P>(2) Identification of the outgoing proprietor and incoming proprietor (by name and plant number);
</P>
<P>(3) The effective date and hour of the alternation;
</P>
<P>(4) Identification of any applicable diagrams provided with the registration of each proprietor filed under paragraph (a) of this section, showing the portions of the premises involved in the alternation;
</P>
<P>(5) The purpose of the alternation;
</P>
<P>(6) If distilling materials, unfinished or finished spirits, denatured spirits, or wine will be transferred to the incoming proprietor, a statement to that effect; and
</P>
<P>(7) If denatured spirits or articles will be retained in the processing account in locked tanks during the period of alternate proprietorship, a statement to that effect.
</P>
<P>(c) <I>Alternation of production operations.</I> In the case of an outgoing proprietor who intends to alternate production operations with another proprietor, the outgoing proprietor must:
</P>
<P>(1) Completely process all distilling materials and unfinished spirits in any bonded areas, rooms, or buildings that will alternate unless the outgoing proprietor transfers them to the incoming proprietor; and
</P>
<P>(2) Mark and remove all finished spirits in the name in which they were produced before a production gauge is made by the incoming proprietor.
</P>
<P>(d) <I>Alternation of storage operations.</I> In the case of an outgoing proprietor who intends to alternate storage operations with another proprietor, the outgoing proprietor must:
</P>
<P>(1) Transfer in bond any spirits or wines in any bonded areas, rooms, or buildings that will be alternated; and
</P>
<P>(2) Except where no bond is required under § 19.151(d), execute a form TTB F 5000.18, Change of Bond (Consent of Surety), to continue in effect the operations or unit bond whenever operations of the areas, rooms, or buildings will be resumed by the outgoing proprietor following suspension of operations by the other proprietor.
</P>
<P>(e) <I>Alternation of processing operations.</I> In the case of an outgoing proprietor who intends to alternate processing operations with another proprietor, the outgoing proprietor:
</P>
<P>(1) Before the effective date and time of the alternation, must process to completion and remove from the affected area all spirits, denatured spirits, wines, or articles located in any rooms, areas, or buildings that will alternate, or must transfer these spirits, wines, and articles in bond to the incoming proprietor;
</P>
<P>(2) Except where no bond is required under § 19.151(d), must execute a TTB F 5000.18, Change of Bond (Consent of Surety), to continue in effect the operations or unit bond whenever operations of the areas, rooms, or buildings will be resumed by the outgoing proprietor following suspension of operations by the other proprietor; and
</P>
<P>(3) May retain denatured spirits and articles in tanks locked with approved locks if the outgoing proprietor maintains custody and control of the locks and keys for the tanks. In this case, the outgoing proprietor must obtain a consent of surety on TTB F 5000.18 to continue liability on the operations or unit bond for the tax on the denatured spirits or articles that retained in the locked tanks.
</P>
<P>(f) <I>Records.</I> Each alternating proprietor must maintain its own records and submit its own reports. Records kept by an outgoing proprietor for spirits, wines, and alcoholic flavoring materials may be used by the incoming proprietor. All transfers of distilling materials, unfinished spirits, spirits, denatured spirits, and wines must be reflected in the records of each proprietor.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5271)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1120, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="168" NODE="27:1.0.1.1.15.5.168" TYPE="SUBJGRP">
<HEAD>Conduct of Alternate Operations at a Plant</HEAD>


<DIV8 N="§ 19.142" NODE="27:1.0.1.1.15.5.168.26" TYPE="SECTION">
<HEAD>§ 19.142   Alternate use of premises and equipment for customs purposes.</HEAD>
<P>(a) <I>General.</I> The proprietor may extend or curtail the distilled spirits plant premises or a part of those premises for temporary use by U.S. Customs and Border Protection officers for customs purposes. If the proprietor wishes to alternate the use of the premises for customs purposes, that use must be approved by the port director of customs and must be conducted in accordance with applicable customs laws and regulations.
</P>
<P>(b) <I>Qualification.</I> Before alternating the plant premises for customs purposes, the proprietor must file and receive approval of the necessary registration, application and bonds as required by this part. The proprietor's application for registration must include the following:
</P>
<P>(1) A description of the areas, rooms or buildings, or combination of rooms or buildings that will be alternated;
</P>
<P>(2) A diagram of the parts of the plant that the proprietor will use for the alternation; and
</P>
<P>(3) The method that the proprietor will use to separate the alternated premises from any premises not subject to alternation.
</P>
<P>(c) <I>Letterhead notice.</I> After the proprietor receives approval to alternate premises for customs purposes, the proprietor must file a letterhead notice with the appropriate TTB officer each time the premises will be alternated. The notice must include the following information:
</P>
<P>(1) The name and plant number of the proprietor filing the notice;
</P>
<P>(2) The date and hour the alternation will take place;
</P>
<P>(3) Identification of any applicable diagrams provided with the registration filed under paragraph (b) of this section, showing the portions of the premises involved in the alternation;
</P>
<P>(4) The purpose of the alternation;
</P>
<P>(5) If the alternation is for gauging or processing distilled spirits, a statement to that effect; and
</P>
<P>(6) An indication of the class of temporary customs warehouse, if applicable.
</P>
<P>(d) <I>Proprietor responsibilities.</I> Prior to the start of alternation for customs purposes, the proprietor must remove all spirits from the premises or equipment that will be involved in the alternation. However, upon release by customs, spirits in the process of being transferred to bonded premises under 26 U.S.C. 5232 may remain on the premises to be reincluded in the bonded premises.
</P>
<P>(e) <I>Exceptions.</I> The qualification requirements in paragraph (b) of this section and the notice requirements in paragraph (c) of this section will not apply where the proprietor solely intends to gauge bulk distilled spirits for transfer from customs custody to bonded premises.
</P>
<P>(f) <I>Conveyance of spirits in customs custody.</I> If the proprietor intends to convey spirits in customs custody across the distilled spirits plant premises the proprietor must comply with § 19.60.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5178)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1120, Jan. 4, 2017; T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.143" NODE="27:1.0.1.1.15.5.168.27" TYPE="SECTION">
<HEAD>§ 19.143   Alternation for other purposes.</HEAD>
<P>(a) <I>General.</I> The proprietor may temporarily extend or curtail the distilled spirits plant premises to allow for several other types of alternate uses. Premises may be alternately curtailed or extended to allow bonded premises to be used temporarily as general premises, or to allow general premises to be used as bonded premises. A curtailment or extension of distilled spirits plant premises may also allow for the use of the premises as:
</P>
<P>(1) An adjacent bonded wine cellar;
</P>
<P>(2) An adjacent taxpaid wine bottling house;
</P>
<P>(3) An adjacent brewery; or
</P>
<P>(4) Facilities for the manufacturer of eligible flavors.
</P>
<P>(b) <I>Qualifying documents.</I> Before alternating the premises for a purpose listed in paragraph (a) of this section, the proprietor must file and receive approval of the necessary registration, application forms and attachments that relate to the proposed alternate use. Depending on the type of alternation involved, the proprietor must file one or more of the following qualification documents:
</P>
<P>(1) <I>Registration.</I> For all alternate uses of the distilled spirits plant described in paragraph (a) of this section the proprietor must file a form TTB F 5110.41, Registration of a Distilled Spirits Plant, to cover the proposed alternation of premises.
</P>
<P>(2) <I>Diagram.</I> For all alternate uses, the proprietor must provide a special diagram, in duplicate, delineating the premises as they will exist, both during extension and curtailment and clearly depicting all buildings, floors, rooms, areas, equipment that are to be subject to alternation, in their relative operating sequence.
</P>
<P>(3) <I>Bond.</I> For all alternate uses, the proprietor must provide evidence of an existing bond, consent of surety, or a new bond to cover the proposed alternation of premises. This requirement does not apply if no bond is required under this chapter to cover the proposed alternation.
</P>
<P>(4) <I>Bonded wine cellar or taxpaid wine bottling house.</I> If the proprietor intends to alternate the premises or part of the premises as a bonded wine cellar or taxpaid wine bottling house the proprietor must also file form TTB F 5120.25, Application to Establish and Operate Wine Premises.
</P>
<P>(5) <I>Brewery.</I> If the proprietor intends to alternate the premises or part of the premises for a brewery operation the proprietor must file form TTB F 5130.10, Brewer's Notice.
</P>
<P>(c) <I>Separation of premises.</I> The proprietor must separate the distilled spirits plant premises from the alternate use premises in accordance with the approved plan of alternation described in the qualifying documents.
</P>
<P>(d) <I>Segregation of products.</I> When the proprietor alternates premises, the proprietor must segregate products as follows:
</P>
<P>(1) <I>Wine operations.</I> (i) Prior to alternation from distilled spirits plant premises to wine premises, the proprietor must remove all distilled spirits, denatured spirits, articles, and wine from the distilled spirits plant premises that will be alternated. However, the proprietor may keep spirits on the premises if they are being withdrawn for use in wine production under § 19.419, or for use in the production of nonbeverage wine or wine products under § 19.421. Further, the proprietor may keep wine on the premises if it is to be transferred in bond under § 19.402(b)(2).
</P>
<P>(ii) Prior to alternation from wine premises to distilled spirits plant premises, the proprietor must remove all wine and spirits from the wine premises that will be alternated. However, the proprietor may keep wine on the premises if it is being transferred in bond under § 19.402(b)(1). Further, the proprietor may keep spirits on the premises if they are being returned from bonded wine cellar premises to distilled spirits plant bonded premises under § 19.454.
</P>
<P>(2) <I>Brewery.</I> Prior to alternation from distilled spirits plant premises to operation of a brewery the proprietor must remove all spirits, denatured spirits, articles and wine from the premises to be alternated to brewery premises. Prior to alternation of brewery premises to distilled spirits plant premises, the proprietor must remove all beer from the premises except beer that is being received for production of distilled spirits as provided in § 19.296.
</P>
<P>(3) <I>General premises.</I> Prior to alternation between bonded and general premises, the proprietor must remove all spirits, denatured spirits, articles and wine from the premises to be alternated. However, the proprietor may keep bonded spirits on portions of bonded premises to be alternated to general premises if the spirits are taxpaid concurrently with the alternation. Also, the proprietor may keep taxpaid spirits on general premises that will be alternated to bonded premises if the spirits are to be immediately dumped and returned to bond under the provisions of subpart Q of this part.
</P>
<P>(4) <I>Manufacture of nonbeverage products.</I> Prior to alternation of the distilled spirits plant premises for use in the manufacture of eligible flavors, the proprietor must remove all spirits, denatured spirits, articles and wine from the premises to be alternated. However, the proprietor may keep spirits on portions of the premises to be curtailed if the proprietor pays the tax concurrent with the alternation. Further, the proprietor may keep taxpaid spirits that have not been used in the manufacture of a nonbeverage product on parts of the premises to be included in the extension of the bonded premises if the spirits are to be immediately dumped and returned to bond under the provisions of subpart Q of this part.
</P>
<P>(e) <I>Records.</I> The proprietor must prepare the record of alternating premises prescribed by § 19.627 each time that the proprietor alternates premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5178)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1120, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.144" NODE="27:1.0.1.1.15.5.168.28" TYPE="SECTION">
<HEAD>§ 19.144   Alternation of distilled spirits plant and volatile fruit-flavor concentrate plant premises.</HEAD>
<P>The proprietor may temporarily extend or curtail the distilled spirits plant premises for alternate use with the premises of a contiguous volatile fruit-flavor concentrate plant. If a proprietor wishes to use all or a portion of the premises alternately as a volatile fruit-flavor concentrate plant or vice versa, the proprietor must comply with the requirements of §§ 18.39 and 18.41 through 18.43 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5178)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="169" NODE="27:1.0.1.1.15.5.169" TYPE="SUBJGRP">
<HEAD>Discontinuance of Operations</HEAD>


<DIV8 N="§ 19.147" NODE="27:1.0.1.1.15.5.169.29" TYPE="SECTION">
<HEAD>§ 19.147   Notice of discontinuance of operations.</HEAD>
<P>If the proprietor plans to permanently discontinue one or more of the operations listed on the notice of registration filed under subpart D of this part, the proprietor must notify the appropriate TTB officer by filing form TTB F 5110.41, Registration of Distilled Spirits Plant, to show discontinuance of operations. The proprietor must submit the following with TTB F 5110.41:
</P>
<P>(a) The permit covering each discontinued operation;
</P>
<P>(b) A written request for cancellation of the permit(s);
</P>
<P>(c) A written statement indicating whether or not—
</P>
<P>(1) The proprietor has lawfully disposed of all spirits, denatured spirits, articles, wines, liquor bottles, and other pertinent items;
</P>
<P>(2) There are any spirits, denatured spirits, wines, or liquor bottles in transit to the premises; and
</P>
<P>(3) The proprietor has secured and returned to the appropriate TTB officer for cancellation all approved applications for transfer of spirits and denatured spirits to the premises; and
</P>
<P>(d) A final monthly operations report, as provided for under § 19.632, for each discontinued operation, with each report marked “Final Report.”
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5271)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.15.6" TYPE="SUBPART">
<HEAD>Subpart F—Bonds and Consents of Surety</HEAD>


<DIV7 N="170" NODE="27:1.0.1.1.15.6.170" TYPE="SUBJGRP">
<HEAD>Bonding Requirements for a DSP</HEAD>


<DIV8 N="§ 19.151" NODE="27:1.0.1.1.15.6.170.1" TYPE="SECTION">
<HEAD>§ 19.151   General.</HEAD>
<P>(a) <I>Bond required.</I> Except as provided in paragraph (d) of this section, any person who plans to establish and operate a distilled spirits plant must provide TTB with one or more bonds on form TTB F 5110.56, Distilled Spirits Bond. TTB will not approve a registration or allow a person to operate a distilled spirits plant until the applicant has provided the necessary bonds. If a proprietor fails to pay any liability covered by a bond, TTB may seek payment from the proprietor, from the surety (see § 19.153) or from both the proprietor and the surety. The types and penal sums of bonds required will depend upon the type and size of the operations that the proprietor will conduct.
</P>
<P>(b) <I>Bond terms and conditions.</I> The terms and conditions of a distilled spirits bond require that the proprietor comply with all provisions of law and regulations relating to activities covered by the bond, and to pay all taxes imposed by 26 U.S.C. chapter 51, including taxes on unexplained shortages of bottled distilled spirits. The bond will further specify that the proprietor will pay all penalties incurred, or fines imposed, for violations of law and regulations relating to activities covered by the bond. The specific terms of the required bond(s) are stated on TTB F 5110.56.
</P>
<P>(c) <I>Corporations and controlled subsidiaries.</I> For purposes of this subpart, the term “corporation” includes a Limited Liability Company (LLC) or Limited Liability Partnership (LLP) in any jurisdiction where the law authorizes such a business organization to operate. Whenever used in this subpart, the term “controlled subsidiary” means a corporation (or LLC or LLP) in which more than 50 percent of the voting power is controlled by a parent corporation.
</P>
<P>(d) <I>Bonds covering distilled spirits for nonindustrial use and industrial use</I>—(1) <I>Nonindustrial use.</I> A proprietor who pays tax on a deferred basis under § 19.235 is not required to provide a bond or bonds to cover operations and withdrawals of distilled spirits for nonindustrial use during any portion of a calendar year for which the proprietor is eligible to use an annual or quarterly return period under § 19.235(b) or (c). For purposes of the preceding sentence, a proprietor is considered to be paying tax on a deferred basis even if the proprietor does not pay tax during every return period as long as the proprietor intends to pay tax in a future period. See §§ 19.73 and 19.136 for rules governing applying for this bond exemption. See § 19.168(b) for rules governing when an existing proprietor who has not provided a bond under this paragraph must obtain bond coverage.
</P>
<P>(2) <I>Industrial use.</I> A proprietor is required to provide one or more bonds to cover operations and withdrawals of distilled spirits for industrial use even if the proprietor pays tax on a deferred basis under § 19.235 and is eligible to use an annual or quarterly return period under § 19.235(b) or (c). In the case of a proprietor whose operations involve distilled spirits for both nonindustrial and industrial use, distilled spirits are considered to be for industrial use for purposes of this paragraph unless the proprietor designates the spirits as being solely for nonindustrial use either upon taking the production gauge (see § 19.304) or upon receiving the spirits and, in either case, does not thereafter mix the spirits with any spirits for industrial use.
</P>
<P>(3) <I>Nonindustrial use and industrial use defined.</I> See § 19.472 for the provisions defining the nonindustrial and industrial uses of distilled spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173, 5551)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1120, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.152" NODE="27:1.0.1.1.15.6.170.2" TYPE="SECTION">
<HEAD>§ 19.152   Types of bonds.</HEAD>
<P>(a) <I>Basic Bonds.</I> There are two basic types of bonds: the operations bond, and the withdrawal bond.
</P>
<P>(1) <I>Operations bond.</I> An operations bond covers the tax liability for a variety of operations at a distilled spirits plant, along with any penalties incurred and fines imposed for violation of the law and regulations relating to activities covered by the bond.
</P>
<P>(2) <I>Withdrawal bond.</I> A withdrawal bond covers the tax liability for tax determined distilled spirits withdrawn from the bonded premises on a tax deferred basis.
</P>
<P>(b) <I>Other bonds.</I> In addition to the basic operations and withdrawal bonds, several variations of these bonds are available:
</P>
<P>(1) An adjacent wine cellar bond covers operations at a distilled spirits plant and an adjacent bonded wine cellar;
</P>
<P>(2) An area bond covers operations at two or more distilled spirits plant and any adjacent bonded wine cellars; and
</P>
<P>(3) A unit bond covers both operations and withdrawals at one or more distilled spirits plants and operations at any adjacent bonded wine cellars.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.153" NODE="27:1.0.1.1.15.6.170.3" TYPE="SECTION">
<HEAD>§ 19.153   Bond guaranteed by a corporate surety.</HEAD>
<P>(a) <I>Corporate surety.</I> A company that issues bonds is called a “corporate surety.” Proprietors must obtain the surety bonds required by this subpart from a corporate surety approved by the Secretary of the Treasury.


</P>
<P>(b) <I>How to find an approved surety.</I> The Department of the Treasury publishes a list of approved corporate surety companies in Treasury Department Circular 570, Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies. Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).


</P>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1120, Jan. 4, 2017; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.154" NODE="27:1.0.1.1.15.6.170.4" TYPE="SECTION">
<HEAD>§ 19.154   Bond guaranteed by deposit of securities or cash (including cash equivalents).</HEAD>
<P>(a) <I>Bond guaranteed by deposit of securities</I>—(1) <I>General.</I> As an alternative to the corporate surety bond under § 19.153, a person can file a bond that guarantees payment of the liability by pledging one or more acceptable negotiable securities. These securities must have a par value (face amount) equal to or greater than the penal sums of the required bonds. The pledged securities are held in the Federal Reserve Bank in a safekeeping account with TTB as the pledgee. Should the proprietor fail to pay one or more of the guaranteed liabilities, TTB can take action to sell the deposited securities to satisfy the debt. Pledged securities will be released if there are no outstanding liabilities when the bond is terminated. (See § 19.170.)
</P>
<P>(2) <I>Acceptable securities.</I> Only public debt obligations of the United States, the principal and interest of which are unconditionally guaranteed by the United States Government, are acceptable for the purpose described in paragraph (a)(1) of this section. The Department of the Treasury and certain other United States Government agencies issue debt instruments that are acceptable as collateral, such as Treasury notes and Treasury bills. Savings bonds, certificates of deposit and letters of credit are not acceptable. A list of securities acceptable as collateral in lieu of surety bonds is available from the Bureau of the Fiscal Service. Current information and guidance from the Bureau of the Fiscal Service Web site may be found at <I>https://www.fiscal.treasury.gov.</I>
</P>
<P>(b) <I>Bond guaranteed by deposit of cash or cash equivalent.</I> As an alternative to the corporate surety bond under § 19.153, a person can file a bond that guarantees payment of the liability by submitting cash or its equivalent (including a money order, cashier's check, or personal check). Cash or its equivalent must be no less than the penal sums of the required bond. Cash equivalents must be payable to the Alcohol and Tobacco Tax and Trade Bureau. A bond described in this paragraph will be released if there are no outstanding liabilities when the bond is terminated. (See § 19.170.)
</P>
<SECAUTH TYPE="N">(31 U.S.C. 9301, 9303; 31 CFR part 380)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1120, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.155" NODE="27:1.0.1.1.15.6.170.5" TYPE="SECTION">
<HEAD>§ 19.155   Change of surety bond terms—consent of surety.</HEAD>
<P>In order to change the terms of an approved bond, both the principal and the surety company that guaranteed the bond must agree to the change. TTB must also approve the change. All changes to the terms of a bond must be executed on form TTB F 5000.18, Change of Bond (Consent of Surety) by both the principal and the surety with the same formality and proof of authority as required for the original bond. The completed, executed TTB F 5000.18 must be submitted to the National Revenue Center.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.156" NODE="27:1.0.1.1.15.6.170.6" TYPE="SECTION">
<HEAD>§ 19.156   Power of attorney for surety.</HEAD>
<P>(a) <I>Requirement for power of attorney.</I> Every bond and every consent of surety filed with TTB in which an agent or officer executed the bond or consent on behalf of the surety must be supported by a power of attorney authorizing the agent or officer to execute the bond or consent of surety. The power of attorney assures TTB that the person who signed the bond on behalf of the surety has the legal authority to obligate the surety.
</P>
<P>(b) <I>Form of power of attorney and endorsement.</I> A power of attorney will be prepared on the surety's own form, and must be executed under the surety's corporate seal. If the power of attorney submitted is other than a manually signed original, it must be accompanied by a certification from the surety that the power of attorney is valid.
</P>
<P>(c) <I>Additional documentation.</I> The appropriate TTB officer authorized to approve and accept the bond may require additional evidence of the authenticity of signatures and the authority of persons signing on behalf of the surety to execute the bond or consent.
</P>
<SECAUTH TYPE="N">(31 U.S.C. 9304, 9306)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.157" NODE="27:1.0.1.1.15.6.170.7" TYPE="SECTION">
<HEAD>§ 19.157   Disapproval of bonds and consents of surety.</HEAD>
<P>(a) <I>Grounds for disapproval.</I> The appropriate TTB officer may disapprove any bond or consent of surety required by this part if the principal or any person having ownership, control or responsibility for actively managing the business of the surety has been previously convicted, in a court of competent jurisdiction of:
</P>
<P>(1) Any fraudulent noncompliance with any provision of any law of the United States relating to internal revenue or customs taxation of spirits, wines, or beer, or if the offense was compromised by payment of penalties or otherwise, or
</P>
<P>(2) Any felony under a law of any State or the District of Columbia, or the United States, prohibiting the manufacture, sale, importation, or transportation of spirits, wine, beer, or other intoxicating liquor.
</P>
<P>(b) <I>Appeal.</I> If the appropriate TTB officer disapproves a bond or consent of surety, the person giving the bond may appeal the disapproval to the Administrator, who will hear the appeal. The decision of the Administrator will be final.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5551)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="171" NODE="27:1.0.1.1.15.6.171" TYPE="SUBJGRP">
<HEAD>Requirements for Operations and Withdrawal Bonds</HEAD>


<DIV8 N="§ 19.161" NODE="27:1.0.1.1.15.6.171.8" TYPE="SECTION">
<HEAD>§ 19.161   Operations bond.</HEAD>
<P>(a) <I>General. </I>Except as provided in § 19.151(d), any person who intends to establish a distilled spirits plant must furnish an operations bond (or a unit bond, see § 19.165) covering distilled spirits operations at such plant on TTB F 5110.56 with the original application to register the distilled spirits plant.
</P>
<P>(b) <I>Approval of bond.</I> The appropriate TTB officer may require a statement, executed under the penalty of perjury, as to whether the principal, or any person owning, controlling, or managing the business of the applicant has been convicted of, or has compromised any offense listed in § 19.157(a)(1), or has been convicted of any offense listed in § 19.157(a)(2). If the above statement contains an affirmative answer, the applicant must provide an additional detailed statement describing the circumstances surrounding each conviction or compromise. The appropriate TTB officer will decide whether to approve or disapprove the bond.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173, 5551)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.162" NODE="27:1.0.1.1.15.6.171.9" TYPE="SECTION">
<HEAD>§ 19.162   Operations bond for distilled spirits plant and adjacent bonded wine cellar.</HEAD>
<P>(a) <I>One bond satisfying two requirements.</I> A proprietor who operates a bonded wine cellar that is adjacent to the proprietor's distilled spirits plant may file a single operations bond to cover the operations of the distilled spirits plant and the bonded wine cellar. A proprietor who files this type of bond satisfies the requirement in 26 U.S.C. 5173 for an operations bond covering the distilled spirits plant and the requirement in 26 U.S.C. 5354 for a bond covering wine and spirits possessed at, and in transit to, the bonded wine cellar. (The proprietor may still have to obtain a supplemental bond for the wine cellar to cover liabilities resulting from deferred payment of tax. See the second sentence of 26 U.S.C. 5354.)
</P>
<P>(b) <I>One bond combining terms and coverage of separate bonds.</I> An operations bond filed under paragraph (a) of this section must contain the same terms and conditions that would be in separate bonds for the distilled spirits plant and for the bonded wine cellar. The proprietor may not allocate or divide the penal sum between the distilled spirits plant and the bonded wine cellar. The total amount of the bond must be available to satisfy any liability incurred under the terms of the bond at either facility.
</P>
<P>(c) <I>Persons qualified for a single bond.</I> A proprietor may choose to file a single operations bond for a distilled spirits plant and adjacent bonded wine cellar only if:
</P>
<P>(1) Such distilled spirits plant is qualified under subpart D of this part for the production of distilled spirits; and
</P>
<P>(2) Such wine cellar and distilled spirits plant are operated by the same person (or in the case of a corporation, by such corporation and its controlled subsidiaries).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173, 5351, 5354)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.163" NODE="27:1.0.1.1.15.6.171.10" TYPE="SECTION">
<HEAD>§ 19.163   Area operations bond.</HEAD>
<P>(a) <I>Area operations bond covering multiple locations.</I> A person who operates more than one distilled spirits plant within the geographical area serviced by the National Revenue Center may submit to TTB an area operations bond covering the operations of any two or more such plants and any bonded wine cellars that are adjacent to such plants and which otherwise could be covered by an operations bond. Area operations bonds filed under this section will be in lieu of the operations bond requirements for single distilled spirits plants under §§ 19.161 and 19.166 and must contain the same terms and conditions as those contained in separate bonds filed for single distilled spirits plants. Any person who files an area operations bond may not allocate or divide the penal sum of the area operations bond between the separate locations and the total penal sum of the bond must be available to satisfy liability incurred at any of the covered locations.
</P>
<P>(b) <I>Area operations bonds filed by corporations.</I> An area operations bond may only cover distilled spirits plants and adjacent bonded wine cellars that are operated by the same person. For purposes of this section, a corporation and its controlled subsidiaries are considered to be one person. Further, a controlled subsidiary is a corporation in which more than 50 percent of the voting power is controlled by the parent corporation. Consequently, an area operations bond may cover distilled spirits plants and adjacent bonded wine cellars operated by a parent corporation and one or more of its controlled subsidiaries. The name of each corporation that operates a covered facility must appear on the bond as a principal, whether the operating corporation is the parent or a subsidiary. The bond must bear an authorized signature for each operating corporation appearing on the bond.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.164" NODE="27:1.0.1.1.15.6.171.11" TYPE="SECTION">
<HEAD>§ 19.164   Withdrawal bond.</HEAD>
<P>(a) <I>Requirement for a withdrawal bond.</I> Except as provided in § 19.151(d), a person must provide TTB with a withdrawal bond for a distilled spirits plant if the person intends to withdraw spirits from the distilled spirits plant upon determination of the taxes due on the spirits but before payment of the tax. The withdrawal bond must guarantee payment of any taxes due on distilled spirits withdrawn from bonded premises up to the amount of the bond. Such bond will be in addition to the operations bond, and if the distilled spirits are withdrawn under the withdrawal bond, the operations bond will no longer cover liability for payment of the tax on the spirits withdrawn. For purposes of this section, a person includes a corporation, together with all of its controlled subsidiaries, and a controlled subsidiary has the same meaning as in § 19.163(b).
</P>
<P>(b) <I>One bond covering multiple plants.</I> A person who operates more than one distilled spirits plant within the geographical area serviced by the National Revenue Center may submit to TTB a single withdrawal bond that covers withdrawals from all such distilled spirits plants within that geographic area.
</P>
<P>(c) <I>Penal sum of bonds</I>—(1) <I>Penal sum of a bond covering a single plant.</I> A person who files a withdrawal bond for a single plant must compute the penal sum of such bond in accordance with § 19.166. If the penal sum of such bond is less than the maximum amount, withdrawals from the plant may not exceed the penal sum.
</P>
<P>(2) <I>Penal sum of bond covering multiple plants.</I> A person who files one withdrawal bond to cover two or more distilled spirits plants must compute the required penal sum for each plant individually in accordance with § 19.166. The penal sum of the withdrawal bond must be equal to, or greater than, the total of the minimum amounts required for the individual plants. The bond must show the amount of coverage allocated to each individual plant as well as the total penal sum for all plants. If the portion of the penal sum allocated to a particular plant is less than the maximum amount prescribed in § 19.166 for a single plant, withdrawals from that plant must not exceed the amount of the penal sum allocated to that plant. The allocation of the penal sum notwithstanding, the entire penal sum of the bond must be available to satisfy all liability for tax on withdrawals from any and all of the covered plants.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.165" NODE="27:1.0.1.1.15.6.171.12" TYPE="SECTION">
<HEAD>§ 19.165   Unit bonds.</HEAD>
<P>(a) <I>Unit bond covering operations and withdrawals.</I> If a person is otherwise required to file bonds for both operations at one or more distilled spirits plants and withdrawals from one or more distilled spirits plants, the person may instead submit a single unit bond that provides all of the guarantees that would otherwise be provided by separate operations and withdrawal bonds. The unit bond may also provide coverage for operations at adjacent bonded wine cellars. For purposes of this section, a person includes a corporation, together with all of its controlled subsidiaries, and a controlled subsidiary has the same meaning as in § 19.163(b).
</P>
<P>(b) <I>Required penal sum</I>—(1) <I>General.</I> A person must determine the penal sum for the unit bond by separately calculating in accordance with § 19.166, and then totaling, the amounts needed to cover operations and withdrawals at each individual plant covered by the bond. The penal sum for the unit bond must not be less than the sum of the minimum penal sums that would be required if each of the plants had its own bond.
</P>
<P>(2) <I>Allocation between operations and withdrawals.</I> A unit bond must show separately the amount of coverage provided for operations (including operations at each adjacent bonded wine cellar if applicable) and for withdrawals at each distilled spirits plant covered by the bond.
</P>
<P>(3) <I>Tax liability must not exceed allocated penal sum.</I> If the amount of the penal sum allocated to operations at, or withdrawals from, a particular plant is less than the maximum amount prescribed in § 19.166 for a single plant, the tax liability for operations at, or withdrawals from, that plant must not exceed that allocated amount.
</P>
<P>(4) <I>Total penal sum available for each plant.</I> Even when the penal sum of a unit bond is allocated among multiple plants, the bond must provide that the total penal amount of the bond will be available to satisfy any liability incurred under the terms and conditions of the bond at any plant covered by the bond.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.166" NODE="27:1.0.1.1.15.6.171.13" TYPE="SECTION">
<HEAD>§ 19.166   Required penal sums.</HEAD>
<P>A person must determine the penal sums for the various bonds required by this subpart according to the following table:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">(a) Operations bond for a single plant operating as a:
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Required penal sum represents:
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">The penal sum must be:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Not less than—
</TH><TH class="gpotbl_colhed" scope="col">and need not be more than—
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Distiller</TD><TD align="left" class="gpotbl_cell">The amount of tax on spirits produced during a 15-day period</TD><TD align="right" class="gpotbl_cell">$5,000</TD><TD align="right" class="gpotbl_cell">$100,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Warehouseman, in general</TD><TD align="left" class="gpotbl_cell">The amount of tax on spirits and wines deposited in, stored on, and in transit to, the bonded premises</TD><TD align="right" class="gpotbl_cell">5,000</TD><TD align="right" class="gpotbl_cell">200,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(3) Warehouseman limited to storage of spirits in packages to a total of not over 50,000 proof gallons</TD><TD align="left" class="gpotbl_cell">The amount of tax on spirits and wines deposited in, stored on, and in transit to, the bonded premises</TD><TD align="right" class="gpotbl_cell">5,000</TD><TD align="right" class="gpotbl_cell">50,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(4) Distiller and warehouseman</TD><TD align="left" class="gpotbl_cell">The amount of tax on spirits produced during a period of 15 days, plus the tax on spirits and wines deposited in, stored on, and in transit to the bonded premises</TD><TD align="right" class="gpotbl_cell">10,000</TD><TD align="right" class="gpotbl_cell">200,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(5) Distiller and processor</TD><TD align="left" class="gpotbl_cell">The amount of tax on spirits produced during a 15-day period, plus the amount of tax on spirits, denatured spirits, articles and wines deposited in, or stored on, and in transit to the bonded premises</TD><TD align="right" class="gpotbl_cell">10,000</TD><TD align="right" class="gpotbl_cell">200,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(6) Warehouseman and processor in general</TD><TD align="left" class="gpotbl_cell">The amount of tax on spirits, denatured spirits, articles, and wines deposited in, stored on, and in transit to, the bonded premises</TD><TD align="right" class="gpotbl_cell">10,000</TD><TD align="right" class="gpotbl_cell">250,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(7) Warehouseman and processor, limited to storage of spirits or denatured spirits in packages to a total of not over 50,000 proof gallons, and processing of spirits or denatured spirits so stored</TD><TD align="left" class="gpotbl_cell">The amount of tax on spirits, denatured spirits, articles, and wines deposited in, stored on, and in transit to, the bonded premises</TD><TD align="right" class="gpotbl_cell">10,000</TD><TD align="right" class="gpotbl_cell">50,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(8) Distiller, warehouseman and processor</TD><TD align="left" class="gpotbl_cell">The amount of tax on spirits produced during a 15-day period, plus the amount of tax on spirits, denatured spirits, articles and wines deposited in, stored on, and in transit to, the bonded premises</TD><TD align="right" class="gpotbl_cell">15,000</TD><TD align="right" class="gpotbl_cell">250,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(9) Distiller with adjacent bonded wine cellar</TD><TD align="left" class="gpotbl_cell">The amount required for a distiller (see paragraph (a)(1). above) plus the amount of tax on wines and wine spirits possessed on, and in transit to, the adjacent wine cellar</TD><TD align="right" class="gpotbl_cell">6,000</TD><TD align="right" class="gpotbl_cell">150,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(10) Distiller and warehouseman with adjacent bonded wine cellar</TD><TD align="left" class="gpotbl_cell">The amount required for a distiller &amp; warehouseman (see paragraph (a)(4). above) plus the amount of tax on wines and wine spirits possessed on, and in transit to, the adjacent wine cellar</TD><TD align="right" class="gpotbl_cell">11,000</TD><TD align="right" class="gpotbl_cell">250,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(11) Distiller and processor with adjacent bonded wine cellar</TD><TD align="left" class="gpotbl_cell">The amount required for a distiller &amp; processor (see paragraph (a)(5). above) plus the amount of tax on wines and wine spirits possessed on, and in transit to, the adjacent wine cellar</TD><TD align="right" class="gpotbl_cell">11,000</TD><TD align="right" class="gpotbl_cell">250,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(12) Distiller, warehouseman and processor with adjacent bonded wine cellar</TD><TD align="left" class="gpotbl_cell">The amount required for a distiller-warehouseman-processor (see paragraph (a)(8). above) plus the amount of tax on wines and wine spirits possessed on, and in transit to, the adjacent wine cellar</TD><TD align="right" class="gpotbl_cell">16,000</TD><TD align="right" class="gpotbl_cell">300,000</TD></TR></TABLE></DIV></DIV>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">(b) Area operations bond for two or more plants whose combined required penal sums under paragraph (a) of this section:
</TH><TH class="gpotbl_colhed" scope="col">Required penal sum is:
</TH><TH class="gpotbl_colhed" scope="col">But need not be more than:
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Do not exceed $300,000</TD><TD align="left" class="gpotbl_cell">100%</TD><TD align="right" class="gpotbl_cell">$300,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Exceed $300,000 but do not exceed $600,000</TD><TD align="left" class="gpotbl_cell">$300,000 plus 70% of the amount over $300,000</TD><TD align="right" class="gpotbl_cell">510,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(3) Exceed $600,000 but do not exceed $1,000,000</TD><TD align="left" class="gpotbl_cell">$510,000 plus 50% of the amount over $600,000</TD><TD align="right" class="gpotbl_cell">710,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(4) Exceed $1,000,000 but do not exceed $2,000,000</TD><TD align="left" class="gpotbl_cell">$710,000 plus 35% of the amount over $1,000,000</TD><TD align="right" class="gpotbl_cell">1,060,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(5) Exceeds $2,000,000</TD><TD align="left" class="gpotbl_cell">$1,060,000 plus 25% of the amount over $2,000,000</TD><TD align="right" class="gpotbl_cell"/></TR></TABLE></DIV></DIV>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">(c) Withdrawal bond for:
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Required penal sum represents:
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">The penal sum must be:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Not less than—
</TH><TH class="gpotbl_colhed" scope="col">and need not be more than—
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) One distilled spirits plant</TD><TD align="left" class="gpotbl_cell">The amount of tax which, at any one time, is chargeable against such bond, but has not yet been paid</TD><TD align="left" class="gpotbl_cell">$1,000</TD><TD align="left" class="gpotbl_cell">$1,000,000.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Two or more distilled spirits plants</TD><TD align="left" class="gpotbl_cell">Sum of the penal sums for each plant calculated in paragraph (c)(1) of this section</TD><TD align="left" class="gpotbl_cell">($1,000) × (number of plants)</TD><TD align="left" class="gpotbl_cell">(Number of plants) × $1,000,000.</TD></TR></TABLE></DIV></DIV>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">(d) Unit bond for:
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Required penal sum represents:
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">The penal sum must be:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Not less than—
</TH><TH class="gpotbl_colhed" scope="col">and need not be more than—
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Operations at one distilled spirits plant (including any adjacent bonded wine cellar), and withdrawals from the bonded premises of the same plant</TD><TD align="left" class="gpotbl_cell">An amount equal to the sum of the required penal sums of an operations bond and a withdrawal bond for the plant, if such bonds were obtained separately. (See paragraphs (a) and (c)(1) in this section.)</TD><TD align="left" class="gpotbl_cell">$6,000</TD><TD align="left" class="gpotbl_cell">$1,300,000.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Operations at two or more distilled spirits plants (including any adjacent bonded wine cellars), and withdrawals from the bonded premises of the same plants</TD><TD align="left" class="gpotbl_cell">An amount equal to the sum of the penal sums of an area operations bond and withdrawal bonds needed for all of the covered plants, if such bonds were obtained separately. (Total penal sums of paragraphs (b) and (c)(2) in this section.)</TD><TD align="left" class="gpotbl_cell">Sum of the minimum penal sums for operations and withdrawal bonds required for each plant covered by the bond</TD><TD align="left" class="gpotbl_cell">Sum of the maximum penal sums for area operations bonds and withdrawal bonds required for the plants covered by the unit bond.</TD></TR></TABLE></DIV></DIV>
<SECAUTH TYPE="N">(26 U.S.C. 5173)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.167" NODE="27:1.0.1.1.15.6.171.14" TYPE="SECTION">
<HEAD>§ 19.167   Increase of bond coverage.</HEAD>
<P>(a) <I>When required.</I> If the penal sum of a bond is less than the maximum amount specified by § 19.166, and liabilities increase to the point where they exceed the bond coverage, the proprietor must increase the amount of the bond to cover the increased liability. The proprietor must increase the bond coverage either by replacing the existing bond with a new, larger bond that covers the entire liability, or by supplementing the existing bond with a separate strengthening bond in accordance with paragraph (b) of this section.
</P>
<P>(b) <I>Strengthening bonds.</I> A strengthening bond is a second bond with the same surety as on the original bond which covers the increased liability. A strengthening bond must show both its execution date and its effective date. TTB will not accept a strengthening bond if it contains any term or condition that is a release, or could be interpreted as a release, from liability under any former bond, or that limits the liability of any bond to less than its full penal sum.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.168" NODE="27:1.0.1.1.15.6.171.15" TYPE="SECTION">
<HEAD>§ 19.168   Superseding bonds and new bonds for existing proprietors.</HEAD>
<P>(a) <I>Superseding bonds.</I> A new bond that replaces another bond is called a superseding bond. The proprietor must replace an existing bond with a superseding bond in any of the following circumstances:
</P>
<P>(1) <I>Surety company no longer acceptable.</I> The proprietor must file a superseding bond if the surety on the proprietor's current bond becomes insolvent or if the surety is removed from the list of approved sureties in Treasury Department Circular 570 (see § 19.153). TTB may also require the filing of a superseding bond if any other contingency affecting the validity or efficiency of the bond arises.
</P>
<P>(2) <I>Change of control.</I> An executor, administrator, assignee, receiver, trustee, or other person acting in a fiduciary capacity, continuing or liquidating the business of the principal on a bond, must either provide TTB with a superseding bond, or obtain consent from the surety on each existing bond when assuming control of the business.
</P>
<P>(3) <I>Termination of bond by surety.</I> If the surety applies to terminate a bond under § 19.171, and the proprietor wishes to continue the activity covered by the bond, the proprietor must file a superseding bond that becomes effective on or before the termination date of the existing bond. The superseding bond must show both its execution date and its effective date.
</P>
<P>(b) <I>New bonds for existing proprietors</I>—(1) <I>General.</I> Subject to paragraph (b)(2) of this section, if an existing proprietor has not furnished a bond or bonds covering operations and withdrawals of distilled spirits for nonindustrial use because the proprietor was exempt from bond requirements under § 19.151(d), the proprietor must furnish a bond or bonds as provided in this subpart beginning in any portion of a calendar year following the first date on which the aggregate amount of tax due from the proprietor during the calendar year exceeds $50,000. When furnishing the bond or bonds, the proprietor must also file an amendment to TTB F 5110.41, Registration of Distilled Spirits Plant, as provided in § 19.136 to change the proprietor's bond status.
</P>
<P>(2) <I>Grace period for bonds covering operations.</I> An existing proprietor who must furnish an operations bond as provided in paragraph (b)(1) of this section will be treated as having furnished the required bond if the proprietor submits the bond on TTB F 5110.56 no later than 30 days following the first date on which the aggregate amount of tax due from the proprietor during the relevant calendar year exceeds $50,000. The proprietor will be treated as having furnished the required operations bond for purposes of this paragraph until TTB approves or disapproves the bond.
</P>
<P>(3) <I>Bonds covering withdrawals.</I> Paragraph (b)(2) of this section does not apply to withdrawal bonds. If an existing proprietor must furnish a withdrawal bond as provided in paragraph (b)(1) of this section, the proprietor may not withdraw distilled spirits from the bonded premises on a tax deferred basis until TTB approves the withdrawal bond.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173, 5175, 5176, 5551)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.169" NODE="27:1.0.1.1.15.6.171.16" TYPE="SECTION">
<HEAD>§ 19.169   Effect of failure to furnish a superseding bond or a new bond.</HEAD>
<P>(a) <I>Operations bond.</I> Except as provided in § 19.151(d), a person may not operate a distilled spirits plant without an operations bond. A person who does not submit an acceptable superseding operations bond when required to do so under § 19.168(a) must immediately discontinue the activities to which the lapsed bond coverage relates upon lapse of the existing bond coverage. If a proprietor must furnish an operations bond under § 19.168(b)(1) and does not submit an operations bond within the time prescribed in § 19.168(b)(2), the proprietor must immediately discontinue the activities required to be covered by the operations bond.
</P>
<P>(b) <I>Withdrawal bond.</I> Except as provided in § 19.151(d), a person may not defer payment of taxes on spirits withdrawn from a distilled spirits plant upon determination of tax without a withdrawal bond. If a person is required to submit a new or superseding withdrawal bond under § 19.168, the person must submit the bond in accordance with that section. A person who does not submit and receive approval of an acceptable withdrawal bond when required to do so under § 19.168 may not withdraw distilled spirits from the bonded premises on a deferred basis. Upon lapse of the existing bond coverage, or upon the date a new bond is required under § 19.168(b), the person must pay the tax at the time of withdrawal, except in the case of distilled spirits withdrawn free of tax or withdrawn without payment of tax under 26 U.S.C. 5214 or withdrawn exempt from tax under 26 U.S.C. 7510.
</P>
<P>(c) <I>Unit bond.</I> A person who does not provide an acceptable superseding unit bond when required to do so under § 19.168 must immediately discontinue the business or distilled spirits operations to which the lapsed bond coverage relates. Upon lapse of the existing bond coverage the person must also pay the tax at the time of withdrawal, except in the case of distilled spirits withdrawn free of tax or withdrawn without payment of tax under 26 U.S.C. 5214 or withdrawn exempt from tax under 26 U.S.C. 7510.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173, 5175, 5176)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.170" NODE="27:1.0.1.1.15.6.171.17" TYPE="SECTION">
<HEAD>§ 19.170   Termination of bonds.</HEAD>
<P>Liability under operations bonds, withdrawal bonds, and unit bonds may be terminated for future withdrawals, future production, or future deposits as set forth below:
</P>
<P>(a) <I>On application by the surety.</I> A surety may terminate a bond by filing a notice as provided in § 19.171;
</P>
<P>(b) <I>By replacement of the bond.</I> A principal may terminate an existing bond by replacing it with a superseding bond approved by TTB;
</P>
<P>(c) <I>By discontinuing withdrawals.</I> A principal may terminate a withdrawal bond by notifying TTB that the principal has stopped making withdrawals covered by the bond, if the bond was filed solely as a withdrawal bond; 
</P>
<P>(d) <I>By discontinuing the business.</I> A principal may terminate a bond by notifying TTB that the principal has discontinued business; and
</P>
<P>(e) <I>On application by an existing proprietor who becomes exempt from bond requirements.</I> If a proprietor has held a bond or bonds covering operations or withdrawals of distilled spirits for nonindustrial use and becomes exempt from those bond requirements as provided under § 19.151(d), the proprietor may apply to TTB to terminate the bond or bonds covering such operations or withdrawals. To apply, the proprietor must file an amendment to TTB F 5110.41, Registration of Distilled Spirits Plant, as provided in § 19.136. The proprietor must accurately state in the submission that the proprietor:
</P>
<P>(1) Will withdraw distilled spirits for deferred payment of tax as provided in § 19.235;
</P>
<P>(2) Reasonably expects to be liable for not more than $50,000 in taxes with respect to distilled spirits imposed by 26 U.S.C. 5001 and 7652 for the current calendar year (see definition of “Reasonably expects” in § 19.235(e)); and
</P>
<P>(3) Was liable for not more than $50,000 in such taxes in the preceding calendar year.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.171" NODE="27:1.0.1.1.15.6.171.18" TYPE="SECTION">
<HEAD>§ 19.171   Surety notice of relief from bond liability.</HEAD>
<P>(a) <I>Notice to principal.</I> A surety on a bond may, at any time, notify the principal in writing that the surety desires to be relieved of liability under the bond.
</P>
<P>(b) <I>Notice to TTB.</I> A surety on a bond may, at any time, notify the appropriate TTB officer in writing that the surety desires to be relieved of liability under the bond. The notice must specify the date after which the surety desires to be relieved of liability. In the case of a withdrawal bond, the date specified in the notice must be at least ten days after the notice is received by the appropriate TTB officer. In the case of an operations bond or unit bond, the date specified in the notice must be at least 90 days after the notice is received by the appropriate TTB officer. When a surety files a termination notice with TTB, the surety must include either an acknowledgement from the principal that the principal is aware that the surety is terminating the bond or proof that the surety has served the principal with notice of its intent to terminate the bond.
</P>
<P>(c) <I>Effect of notice.</I> The bond coverage will end as of close of business on the date specified in the notice, provided the surety timely filed a proper and complete termination notice, and the surety does not withdraw its termination notice in writing prior to the termination date. The surety will be released from future liability under the bond to the extent set forth in § 19.172.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173, 5175, 5176)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.172" NODE="27:1.0.1.1.15.6.171.19" TYPE="SECTION">
<HEAD>§ 19.172   Relief of surety from bond liability.</HEAD>
<P>A surety that has provided proper notice under § 19.171 will be relieved from liability under the bond in question as set forth below:
</P>
<P>(a) <I>Operations or unit bond.</I> When a superseding bond is submitted, the surety will be relieved of future liability related to production and deposits that take place after the effective date of the superseding bond. However, the surety remains liable for the tax on all distilled spirits or wines produced, or for other liabilities incurred, during the term of the bond. Further, if a superseding bond is not submitted, the surety will remain liable under the bond for all spirits or wines that are on hand or in transit to the bonded premises or bonded wine cellar on the date specified in the notice. The liability of the surety will continue until all such spirits or wines have been lawfully disposed of, or until a new bond has been submitted by the principal covering the spirits or wine.
</P>
<P>(b) <I>Withdrawal or unit bonds.</I> The surety will be relieved from liability for withdrawals made after the date specified in the notice, or upon the effective date of a new bond if one is given.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173, 5176)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.173" NODE="27:1.0.1.1.15.6.171.20" TYPE="SECTION">
<HEAD>§ 19.173   Release of pledged securities.</HEAD>
<P>Securities that are pledged and deposited with TTB under § 19.154 will only be released by TTB in accordance with the provisions of 31 CFR Part 225, Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties. The appropriate TTB officer will not release pledged securities prior to termination of the liability under the bond for which they were pledged. When the appropriate TTB officer is satisfied that the pledged securities may be released, the official will set a date or dates on which a part or all of the securities may be released. At any time prior to the release of the securities, the appropriate TTB officer may extend the date of release for any additional length of time deemed necessary.
</P>
<SECAUTH TYPE="N">(31 U.S.C. 9301, 9303)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.15.7" TYPE="SUBPART">
<HEAD>Subpart G—Construction, Equipment, and Security Requirements</HEAD>


<DIV8 N="§ 19.181" NODE="27:1.0.1.1.15.7.172.1" TYPE="SECTION">
<HEAD>§ 19.181   General.</HEAD>
<P>The proprietor of a distilled spirits plant must apply certain construction, equipment, and security standards at the plant. These standards are intended to ensure the protection of untaxed spirits at the plant and to ensure proper measurement and accountability for products on bonded premises. This subpart prescribes those standards.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178)


</SECAUTH>
</DIV8>


<DIV7 N="172" NODE="27:1.0.1.1.15.7.172" TYPE="SUBJGRP">
<HEAD>Tank Requirements</HEAD>


<DIV8 N="§ 19.182" NODE="27:1.0.1.1.15.7.172.2" TYPE="SECTION">
<HEAD>§ 19.182   Tanks—general requirements.</HEAD>
<P>The proprietor of a distilled spirits plant must ensure that all tanks on the premises used to hold spirits, denatured spirits, or wines are:
</P>
<P>(a) Used for the purpose listed on the application and plant registration;
</P>
<P>(b) Equipped with accurate means for measuring their contents. If the means for measurement is not a permanent fixture on the tank, the proprietor must equip the tank with a fixed device for measuring the contents. However, tanks having a capacity of less than 101 gallons are not required to have permanent gauge devices;
</P>
<P>(c) Accurately calibrated if used for any of the gauges described in this part. Further, if tanks or their gauging devices are moved in any manner subsequent to original calibration, the tanks shall not be used until recalibrated;
</P>
<P>(d) Accessible through walkways, landings, and stairs that permit access to all parts of the tank;
</P>
<P>(e) Equipped or situated so that they may be locked or secured; and
</P>
<P>(f) Constructed to prevent access to the spirits or wines through vents, flame arresters or other safety devices.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5006, 5204, 5505)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.183" NODE="27:1.0.1.1.15.7.172.3" TYPE="SECTION">
<HEAD>§ 19.183   Scale tanks.</HEAD>
<P>(a) Except as otherwise provided in paragraph (b) of this section, if the proprietor uses a tank to determine the distilled spirits tax imposed by 26 U.S.C. 5001, the tank must be mounted on scales and the contents of the tank must be determined by weight. The scale tank also must be equipped with a suitable device so that the volume of the contents can be quickly and accurately determined.
</P>
<P>(b) The requirement to mount tanks on scales does not apply to tanks having a capacity of 55 gallons or less. Such tanks may be moved onto an accurately calibrated scale when a tax determination gauge needs to be made.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5006, 5204, 5505)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.184" NODE="27:1.0.1.1.15.7.172.4" TYPE="SECTION">
<HEAD>§ 19.184   Scale tank minimum graduations.</HEAD>
<P>(a) The beams or dials on scale tanks used for tax determination must have minimum graduations not greater than the following:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Quantity to be weighed
</TH><TH class="gpotbl_colhed" scope="col">Minimum graduation
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Not exceeding 2,000 pounds</TD><TD align="left" class="gpotbl_cell">
<fr>1/2</fr> pound
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Between 2,000 and 6,000 pounds</TD><TD align="left" class="gpotbl_cell">1 pound
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Between 6,000 and 20,000 pounds</TD><TD align="left" class="gpotbl_cell">2 pounds
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Between 20,000 and 50,000 pounds</TD><TD align="left" class="gpotbl_cell">5 pounds
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Over 50,000 pounds</TD><TD align="left" class="gpotbl_cell">10 pounds</TD></TR></TABLE></DIV></DIV>
<P>(b) For scales having a capacity greater than 2,000 pounds, the minimum quantity which may be entered onto the weighing tank scale for gauging for tax determination will be the greater of:
</P>
<P>(1) 1,000 times the minimum graduation of the scale, or
</P>
<P>(2) 5 percent of the total capacity of the weighing tank scale.
</P>
<P>(c) The weighing of lesser quantities for determination of tax may be authorized by the appropriate TTB officer where the beam of the scale is calibrated in 
<FR>1/2</FR> pound or 1 pound graduations and it is found by actual test that the scales are accurate at each graduation.
</P>
<P>(d) Lots of spirits weighing 1,000 pounds or less shall be weighed on scales having 
<FR>1/2</FR> pound graduations.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5006, 5204, 5505)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.185" NODE="27:1.0.1.1.15.7.172.5" TYPE="SECTION">
<HEAD>§ 19.185   Testing scale tanks for accuracy.</HEAD>
<P>(a) A proprietor who uses a scale tank for tax determination must ensure the accuracy of the scale through periodic testing. Testing of the scale must be conducted at least every 6 months and whenever the scale is adjusted or repaired.
</P>
<P>(b) A proprietor also must test, at least once a month, the gallonage represented to be in a scale tank against the gallonage indicated by volumetric determination of the contents of the tank. However, if the scale is not used during a month, it is only necessary to verify against the volumetric determination when the scale is next used. The proprietor must make the volumetric determination in accordance part 30 of this chapter. If the variation exceeds 0.5 percent of the quantity shown in the tank, the proprietor must take appropriate action to verify the accuracy of the scale.
</P>
<P>(c) If the appropriate TTB officer determines that a scale may be inaccurate, the proprietor must test the accuracy of the scale.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5006, 5204, 5505)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="173" NODE="27:1.0.1.1.15.7.173" TYPE="SUBJGRP">
<HEAD>Package Scale and Pipeline Requirements</HEAD>


<DIV8 N="§ 19.186" NODE="27:1.0.1.1.15.7.173.6" TYPE="SECTION">
<HEAD>§ 19.186   Package scales.</HEAD>
<P>Proprietors must ensure that scales used to weigh packages are tested at least every 6 months and whenever they are adjusted or repaired. However, if a scale is not used during a 6-month period, it is only necessary to test the scale prior to its next use. Scales used to weigh packages that hold 10 wine gallons or less must indicate weight in ounces or hundredths of a pound.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.187" NODE="27:1.0.1.1.15.7.173.7" TYPE="SECTION">
<HEAD>§ 19.187   Pipelines.</HEAD>
<P>All pipelines, including flexible hoses, that are used to transfer spirits, denatured spirits, articles, and wines must be constructed, arranged, and secured so as to ensure protection of the revenue and permit ready examination. The appropriate TTB officer may approve pipelines that cannot be readily examined if they pose no jeopardy to the revenue.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="174" NODE="27:1.0.1.1.15.7.174" TYPE="SUBJGRP">
<HEAD>Measuring and Proofing Equipment Requirements</HEAD>


<DIV8 N="§ 19.188" NODE="27:1.0.1.1.15.7.174.8" TYPE="SECTION">
<HEAD>§ 19.188   Measuring devices and proofing instruments.</HEAD>
<P>(a) <I>General.</I> A proprietor of a distilled spirits plant must have accurate instruments and equipment at the plant for determining the proof and volume of spirits.
</P>
<P>(b) <I>Instruments.</I> The hydrometers and thermometers that a proprietor uses to gauge spirits must show subdivisions or graduations of proof and temperature as specified in part 30 of this chapter. Proprietors must frequently test their hydrometers and thermometers to ensure their accuracy. If an instrument appears to be in error, the proprietor may not use the instrument until it is tested and certified as accurate by the manufacturer or another qualified person.
</P>
<P>(c) <I>Meters.</I> A proprietor may use an accurate mass flow meter to measure the volume of bulk spirits. A mass flow meter used for tax determination of bulk spirits must be certified by the manufacturer or other qualified person as accurate within a tolerance of plus or minus 0.1 percent. A mass flow meter used for all other required gauges of bulk spirits must be certified by the manufacturer or other qualified person as accurate within a tolerance of plus or minus 0.5 percent. The proprietor must make corrections for the temperature of the spirits being measured in conjunction with the volumetric measurement of spirits by mass flow meter. The proprietor must also test mass flow meters at least every 6 months to ensure that they are accurate within the required tolerances.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="175" NODE="27:1.0.1.1.15.7.175" TYPE="SUBJGRP">
<HEAD>Other Plant Requirements</HEAD>


<DIV8 N="§ 19.189" NODE="27:1.0.1.1.15.7.175.9" TYPE="SECTION">
<HEAD>§ 19.189   Identification of structures, areas, apparatus, and equipment.</HEAD>
<P>(a) <I>Buildings.</I> The proprietor must mark each building at a distilled spirits plant where spirits, denatured spirits, articles, wine, or distilling or fermenting materials are kept with a distinguishing number or letter.
</P>
<P>(b) <I>Tanks.</I> The proprietor must mark each tank or receptacle for spirits, denatured spirits, or wine to show a unique serial number and capacity.
</P>
<P>(c) <I>Stills.</I> The proprietor must number and mark to show the use of each still, fermenter, cooker, and yeast tank.
</P>
<P>(d) <I>Other major equipment.</I> The proprietor must identify the use of all other major equipment used for processing or containing spirits, denatured spirits, wine, distilling or fermenting material, and all other tanks, unless the intended purpose is readily apparent.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.190" NODE="27:1.0.1.1.15.7.175.10" TYPE="SECTION">
<HEAD>§ 19.190   Office facilities for TTB use.</HEAD>
<P>(a) When required by the appropriate TTB officer, the proprietor must provide a secure cabinet equipped for locking for use by TTB.
</P>
<P>(b) If one or more TTB officers are assigned to a distilled spirits plant to supervise operations on a continuing basis, the proprietor must provide a suitable office at the plant for the exclusive use of the TTB officers in performing their duties. The appropriate TTB officer will determine if the office facilities are suitable.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.191" NODE="27:1.0.1.1.15.7.175.11" TYPE="SECTION">
<HEAD>§ 19.191   Signs.</HEAD>
<P>The proprietor must place and keep a conspicuous sign on the outside of the place of business showing the name of the proprietor and the business, or businesses, in which engaged.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5180)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.192" NODE="27:1.0.1.1.15.7.175.12" TYPE="SECTION">
<HEAD>§ 19.192   Security.</HEAD>
<P>(a) <I>General.</I> The proprietor of a distilled spirits plant must provide adequate security measures at the plant in order to protect the revenue.
</P>
<P>(b) <I>Buildings.</I> The buildings, rooms, and partitions must be constructed of substantial materials. Doors, windows, or any other openings to the building must be secured or fastened during times when distilled spirits plant operations are not being conducted.
</P>
<P>(c) <I>Outdoor tanks.</I> Outdoor tanks containing spirits, denatured spirits, or wine must be individually locked or locked within an enclosure when they are not in use.
</P>
<P>(d) <I>Indoor tanks.</I> Indoor tanks containing spirits, denatured spirits, or wines, or the rooms or buildings in which such tanks are housed, must be equipped so that they may be secured.
</P>
<P>(e) <I>Approved locks.</I> Locks meeting the specifications prescribed in paragraph (f) of this section must be used to secure:
</P>
<P>(1) Outdoor tanks used to store spirits, or an enclosure around such tanks;
</P>
<P>(2) Indoor tanks used to store spirits, or the door from which access may be gained from the outside to the rooms or buildings in which such tanks are housed; and
</P>
<P>(3) Any doors from which access may be gained from the outside to rooms or buildings containing spirits stored in portable bulk containers.
</P>
<P>(f) <I>Specifications for locks.</I> Locks meeting the specifications in this section or other locks that have been approved for use by the appropriate TTB officer are approved locks for the purpose of 26 U.S.C. 5682.
</P>
<P>(1) <I>General.</I> The following are the specifications for approved locks:
</P>
<P>(i) A corresponding serial number on the lock and on the key, except for master key locking systems;
</P>
<P>(ii) A case hardened shackle at least one-fourth inch in diameter, with heel and toe locking;
</P>
<P>(iii) A body width of at least 2 inches;
</P>
<P>(iv) A captured key feature (the key may not be removed while the shackle is unlocked);
</P>
<P>(v) A tumbler with at least 5 pins; and
</P>
<P>(vi) A lock and key containing no bitting data.
</P>
<P>(2) <I>Other approved locks.</I> If the proprietor wishes to use locks of an unusual design, which do not meet the specifications in paragraph (f)(1) of this section, the proprietor must submit an example or prototype of the lock to the appropriate TTB officer, with a request that the lock be approved for use. The appropriate TTB officer will evaluate the lock and determine whether the lock should be approved for use.
</P>
<P>(3) <I>Master key systems.</I> Master key locking systems using approved locks may be used at the option of the proprietor.
</P>
<P>(g) <I>Additional security.</I> Whenever the appropriate TTB officer finds that construction, arrangement, equipment, or protection is inadequate, additional security (such as fences, flood lights, alarm systems, and guard services) must be provided or changes in construction, arrangement, or equipment must be made to the extent necessary to protect the revenue.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178, 5202)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.193" NODE="27:1.0.1.1.15.7.175.13" TYPE="SECTION">
<HEAD>§ 19.193   Breaking Government locks.</HEAD>
<P>TTB may assign TTB officers to a distilled spirits plant and utilize controls, such as Government locks, if TTB determines that such measures are necessary to effectively supervise operations at the plant. The proprietor may not remove such Government locks without the authorization of the appropriate TTB officer, except when a person or property is in imminent danger from a disaster or other emergency. If the proprietor must remove Government locks under such circumstances, the proprietor must ensure that security measures are taken to prevent illegal removal of spirits. In addition, the proprietor must notify the appropriate TTB officer as soon as possible of the action taken and within 5 days of removing the locks submit a written report describing the emergency and the action taken.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5202)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.15.8" TYPE="SUBPART">
<HEAD>Subpart H—Dealer Registration and Recordkeeping</HEAD>


<DIV8 N="§ 19.201" NODE="27:1.0.1.1.15.8.176.1" TYPE="SECTION">
<HEAD>§ 19.201   Definitions.</HEAD>
<P>For purposes of this subpart, the following terms have the meanings indicated:
</P>
<P><I>Dealer.</I> A person that sells, or offers for sale, any alcohol product (distilled spirits, wines, and/or beer) fit for beverage use.
</P>
<P><I>Retail dealer in liquors.</I> A dealer that sells, or offers for sale, distilled spirits, wines, or beer to any person other than a dealer.
</P>
<P><I>Wholesale dealer in liquors.</I> A dealer that sells, or offers for sale, distilled spirits, wines, or beer to another dealer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.202" NODE="27:1.0.1.1.15.8.176.2" TYPE="SECTION">
<HEAD>§ 19.202   Dealer registration.</HEAD>
<P>Every proprietor that sells or offers for sale any alcoholic product (distilled spirits, wines, or beer) fit for beverage use must register as a dealer under part 31 of this chapter. However, the proprietor's application for registration of a distilled spirits plant filed under subpart D of this part, and approval of that application by the appropriate TTB officer, will constitute the proprietor's registration as a dealer at the distilled spirits plant. Every proprietor registered as a dealer under this subpart will be classified as a wholesale dealer in liquors (see § 31.32 of this chapter) and as such may also operate as a retail dealer in liquors without additional registration. Registration covers all sales from the same location, including sales of wine, beer, or other proprietors' spirits. A proprietor who conducts business as a dealer at a location other than the distilled spirits plant must register and keep records in accordance with part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.203" NODE="27:1.0.1.1.15.8.176.3" TYPE="SECTION">
<HEAD>§ 19.203   Amending the dealer registration.</HEAD>
<P>Every proprietor registered as a dealer under this subpart must maintain a current and accurate distilled spirits plant registration. Whenever there is a change to any of the information provided in the proprietor's approved notice of registration, the proprietor must amend the registration within the time period specified in subpart E of this part. An amendment of the proprietor's distilled spirits plant registration will also serve as an amendment of the proprietor's dealer registration under this subpart. The proprietor's dealer registration will also terminate when distilled spirits plant operations under the notice of registration terminate.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.204" NODE="27:1.0.1.1.15.8.176.4" TYPE="SECTION">
<HEAD>§ 19.204   Dealer records.</HEAD>
<P>Every dealer is required to maintain records of transactions. Distilled spirits transactions that appear in the records required by subpart V of this part will meet the proprietor's recordkeeping requirements as a dealer. For other transactions not covered in the distilled spirits plant records, such as retail sales of wine or beer in a restaurant at the distilled spirits plant, or operations as a wholesale dealer in wine or beer, the proprietor must keep the records specified for dealers in part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5124)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.15.9" TYPE="SUBPART">
<HEAD>Subpart I—Distilled Spirits Taxes</HEAD>


<DIV8 N="§ 19.221" NODE="27:1.0.1.1.15.9.176.1" TYPE="SECTION">
<HEAD>§ 19.221   Scope.</HEAD>
<P>This subpart covers the taxation of distilled spirits and the procedures for payment of taxes by proprietors of distilled spirits plants. Issues covered in this subpart include tax rates, liability for tax, tax determination, return periods, filing of tax returns, forms of payment, electronic fund transfers, and credits under 26 U.S.C. 5010.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5001)


</SECAUTH>
</DIV8>


<DIV7 N="176" NODE="27:1.0.1.1.15.9.176" TYPE="SUBJGRP">
<HEAD>Basic Provisions of Tax Law Affecting Spirits</HEAD>


<DIV8 N="§ 19.222" NODE="27:1.0.1.1.15.9.176.2" TYPE="SECTION">
<HEAD>§ 19.222   Basic tax law provisions.</HEAD>
<P>(a) <I>Distilled spirits tax.</I> 26 U.S.C. 5001 and 7652 impose a tax on all distilled spirits produced in, or imported into or brought into, the United States at the rate prescribed in section 5001 on each proof gallon and a proportionate tax at a like rate on all fractional parts of a proof gallon. For the current rate of tax see 26 U.S.C. 5001.
</P>
<P>(b) <I>Products containing distilled spirits.</I> All products of distillation, by whatever name known, which contain distilled spirits, on which the tax imposed by law has not been paid, and any alcoholic ingredient added to such products, are considered and taxed as distilled spirits.
</P>
<P>(c) <I>Wines with high alcohol content.</I> Wines containing more than 24 percent of alcohol by volume are taxed as distilled spirits.
</P>
<P>(d) <I>Attachment of the tax.</I> Under 26 U.S.C. 5001(b), the tax attaches to distilled spirits as soon as the substance comes into existence as such, whether it be subsequently separated as pure or impure spirits, or be immediately, or at any subsequent time, transferred into any other substance, either in the process of original production, or by any subsequent process.
</P>
<P>(e) <I>Alcohol tax is a lien on spirits.</I> Under 26 U.S.C. 5004, the tax becomes a first lien on the distilled spirits from the time the spirits come into existence as such. The conditions under which the first lien terminates are described in 26 U.S.C. 5004.
</P>
<P>(f) <I>Tax credit for eligible wines and eligible flavors.</I> Under 26 U.S.C. 5010, a credit against the tax imposed on distilled spirits by 26 U.S.C. 5001 or 7652 on each proof gallon of alcohol derived from eligible wine, or from eligible flavors which do not exceed 2.5 percent of the finished product on a proof gallon basis is allowed at the time the tax is payable as if it constituted a reduction in the rate of tax.
</P>
<P>(g) <I>Effective tax rates.</I> Where credit against the tax is desired, the proprietor liable for the tax must establish an effective tax rate in accordance with § 19.246. The effective tax rate established will be applied to each withdrawal or other taxable disposition of the distilled spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5001, 5004, 5010, 7652)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.223" NODE="27:1.0.1.1.15.9.176.3" TYPE="SECTION">
<HEAD>§ 19.223   Persons liable for tax.</HEAD>
<P>(a) <I>Distilling.</I> Under 26 U.S.C. 5005, the distiller of spirits is liable for the tax and each proprietor or possessor of, and person in any manner interested in the use of, any still, distilling apparatus, or distillery, shall be jointly and severally liable for the tax on distilled spirits produced. However, a person, not an officer or director of a corporate proprietor, owning or having the right of control of not more than 10 percent of any class of stock of that proprietor, is not liable by reason of the stock ownership or control. Persons transferring spirits in bond are relieved of tax liability if:
</P>
<P>(1) The proprietors of transferring and receiving distilled spirits plant premises are independent of each other and neither has a proprietary interest, directly or indirectly, in the business of the other, and
</P>
<P>(2) No person liable for the tax on transferred spirits retains any interest in the spirits.
</P>
<P>(b) <I>Storage on bonded premises.</I> Under 26 U.S.C. 5005(c) each person operating bonded premises will be liable for the tax on all spirits while the spirits are stored on the premises, and on all spirits that are in transit to the premises from the time of removal from the transferor's bonded premises, pursuant to an approved application. Liability for the tax continues until the spirits are transferred or withdrawn from bonded premises as authorized by law, or until the liability for tax is relieved under the provisions of 26 U.S.C. 5008(a). Claims for relief from liability for spirits lost are covered in subpart J of this part. Voluntary destruction of spirits in bond is covered in subpart Q of this part.
</P>
<P>(c) <I>Withdrawals without payment of tax.</I> Under 26 U.S.C. 5005(e), any person who withdraws spirits from the bonded premises of a plant without payment of tax, as provided in 26 U.S.C. 5214, will be liable for the tax on the spirits from the time of withdrawal. The person will be relieved of any liability at the time the spirits are exported, deposited in a foreign trade zone, used in production of wine, deposited in a customs bonded warehouse, laden as supplies upon or used in the maintenance or repair of certain vessels or aircraft, or used for certain research, development or testing, as provided by law.
</P>
<P>(d) <I>Withdrawals free of tax.</I> Persons liable for tax under paragraph (a) of this section, are relieved of the liability on spirits withdrawn from bonded premises free of tax under this part, at the time the spirits are withdrawn.
</P>
<P>(e) <I>Withdrawn from customs custody without payment of tax.</I> Under 26 U.S.C. 5232(a) when imported distilled spirits in bulk containers are withdrawn from customs custody and transferred to the bonded premises of a distilled spirits plant without payment of the tax imposed on imported distilled spirits by 26 U.S.C. 5001, the person operating the bonded premises of the distilled spirits plant to which spirits are transferred will become liable for the tax on the spirits upon their release from customs custody, and the importer will thereupon be relieved of liability for the tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5005, 5066, 5232)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="177" NODE="27:1.0.1.1.15.9.177" TYPE="SUBJGRP">
<HEAD>Requirements for Gauging and Tax Determination</HEAD>


<DIV8 N="§ 19.225" NODE="27:1.0.1.1.15.9.177.4" TYPE="SECTION">
<HEAD>§ 19.225   Requirement to gauge and tax determine spirits.</HEAD>
<P>Before withdrawing distilled spirits from bond, the proprietor must gauge the spirits and determine the tax that is due on the spirits. This requirement applies to all spirits on which the tax will be either prepaid or deferred.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5006, 5204, 5213)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.226" NODE="27:1.0.1.1.15.9.177.5" TYPE="SECTION">
<HEAD>§ 19.226   Gauges for tax determination.</HEAD>
<P>There are several acceptable methods that a proprietor may use when gauging spirits for tax determination.
</P>
<P>(a) <I>Cases.</I> If spirits are withdrawn from the bonded premises in cases, the proprietor must gauge the spirits based on the contents of the cases. The proprietor will determine the number of proof gallons of spirits in cases as provided in part 30 of this chapter. The proprietor must convert metric units of measure to U.S. units according to § 19.579.
</P>
<P>(b) <I>Packages.</I> If spirits are withdrawn from the bonded premises in packages on the basis of an individual package gauge, each package must be gauged unless the tax is to be determined on the production or filling gauge. When gauging the packages, the proprietor must prepare a package gauge record as specified in § 19.619 and attach it to the record of tax determination that is required by § 19.611.
</P>
<P>(c) <I>Tanks.</I> The proprietor must use weight, or an accurate mass flow meter and proof as prescribed in §§ 19.284 and 19.285, to gauge bulk spirits in tanks that are to be withdrawn on determination of tax. The proprietor must record the elements of the gauge on the record of tax determination. As an alternative, the proprietor may record gauge elements on a separate gauge record, and attach the gauge record to the record of tax determination.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204, 5213)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.227" NODE="27:1.0.1.1.15.9.177.6" TYPE="SECTION">
<HEAD>§ 19.227   Determination of the tax.</HEAD>
<P>After gauging, the proprietor must determine the tax on the spirits to be removed from the bonded premises. The proprietor must use the tax rate prescribed in 26 U.S.C. 5001 to calculate the tax, unless the product is eligible for a reduced effective tax rate as provided in 26 U.S.C. 5010. If the product is eligible for a reduced effective tax rate, the proprietor may use that rate to determine the tax. The proprietor must record the results of each tax determination in a record of tax determination as required by § 19.611.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5213)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="178" NODE="27:1.0.1.1.15.9.178" TYPE="SUBJGRP">
<HEAD>Rules for Deferred Payment and Prepayment of Taxes</HEAD>


<DIV8 N="§ 19.229" NODE="27:1.0.1.1.15.9.178.7" TYPE="SECTION">
<HEAD>§ 19.229   Deferred payment and prepayment of taxes.</HEAD>
<P>There are two basic methods of paying the tax on distilled spirits withdrawn from bonded premises: Deferred payment and prepayment.
</P>
<P>(a) <I>Deferred payment.</I> Under the deferred payment system, the proprietor may withdraw spirits from bond after tax determination but before payment of tax. The excise tax paid is based on the amount of spirits removed from bond during each return period. In order to pay taxes under the deferral system, the proprietor must file a withdrawal bond or unit bond unless the proprietor is exempt from furnishing such bond under § 19.151(d). For detailed information regarding return periods and filing requirements under the deferred system, see §§ 19.234, 19.235 and 19.236.
</P>
<P>(b) <I>Prepayment.</I> Under the prepayment system, the proprietor must pay the distilled spirits tax after tax determination but before withdrawal of the spirits from bonded premises. See § 19.230 for conditions that require prepayment of taxes.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5061)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1121, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.230" NODE="27:1.0.1.1.15.9.178.8" TYPE="SECTION">
<HEAD>§ 19.230   Conditions requiring prepayment of taxes.</HEAD>
<P>Under certain conditions, the proprietor must prepay the distilled spirits tax required, using TTB F 5000.24, Excise Tax Return, before removing spirits from the bonded premises. Those conditions are:
</P>
<P>(a) When the proprietor has not given TTB a withdrawal bond or a unit bond and the proprietor is not exempt from furnishing such bond under § 19.151(d);
</P>
<P>(b) When the proprietor has posted a withdrawal or a unit bond, but has defaulted on any payment of tax under this section, and the tax payment remains in default. The proprietor must continue to prepay the tax until the appropriate TTB officer decides that allowing the proprietor to make deferred tax payments again will not jeopardize the revenue;
</P>
<P>(c) When the proprietor receives a notice from the appropriate TTB officer that the tax must be prepaid. Such notice may be issued to the proprietor if—
</P>
<P>(1) The proprietor fails to maintain records required by this part to substantiate the correctness of its tax returns; or
</P>
<P>(2) The proprietor fails to comply with any other provision of this part; or
</P>
<P>(d) When the proprietor's withdrawal bond, or the withdrawal coverage under its unit bond, is for less than the maximum penal sum. This condition does not apply to a proprietor who is exempt from furnishing a bond under § 19.151(d). The proprietor must prepay the tax to the extent that a withdrawal would cause the outstanding tax liability to exceed the limits of coverage under the bond. 

 See also § 19.231 if the bond is for less than the maximum penal sum.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5213, 5555)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1122, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.231" NODE="27:1.0.1.1.15.9.178.9" TYPE="SECTION">
<HEAD>§ 19.231   Accounting for bond coverage.</HEAD>
<P>In cases where a proprietor must furnish a withdrawal bond or a unit bond to cover the tax on spirits withdrawn on determination of tax, and such bond is in less than the maximum penal sum, the proprietor must maintain an account for the bond to ensure that outstanding tax liabilities do not exceed the penal sum of the bond. The account must charge the bond for the amount of liability incurred on each withdrawal on determination of tax and, credit the bond for each payment of tax made with a return and for authorized credits taken on a return. If the balance of the bond account reaches zero, the proprietor may no longer defer tax payments for taxable withdrawals. Where the bond is for less than the maximum penal sum and has been allocated among two or more plants, the proprietor must maintain an account at each plant for that part of the penal sum allocated to each plant.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1122, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="179" NODE="27:1.0.1.1.15.9.179" TYPE="SUBJGRP">
<HEAD>Requirements for Filing Tax Returns</HEAD>


<DIV8 N="§ 19.233" NODE="27:1.0.1.1.15.9.179.10" TYPE="SECTION">
<HEAD>§ 19.233   Filing prepayment returns.</HEAD>
<P>When the proprietor is required to prepay the tax prior to withdrawal of spirits from the bonded premises, the proprietor must prepay the tax with a return on form TTB F 5000.24, Excise Tax Return, and include the remittance with the return. The proprietor may prepay tax for one or more withdrawals with a single prepayment return on TTB F 5000.24. The proprietor will note the serial number of the TTB F 5000.24, and the date and time of the prepayment on the individual record of tax determination. The proprietor may not remove spirits from the bonded premises until the tax has been paid.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5061)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.234" NODE="27:1.0.1.1.15.9.179.11" TYPE="SECTION">
<HEAD>§ 19.234   Filing deferred payment returns.</HEAD>
<P>A proprietor must pay the tax on spirits withdrawn from bond for deferred payment of tax by filing a return on form TTB F 5000.24, Excise Tax Return. The proprietor must execute and file TTB F 5000.24 for each return period, even when no tax is due for a particular return period. The proprietor of each bonded premises must pay the full amount of distilled spirits tax determined for all spirits released for withdrawal from the bonded premises on determination of tax during the period covered by the return (except spirits on which tax has been prepaid).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5061)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.235" NODE="27:1.0.1.1.15.9.179.12" TYPE="SECTION">
<HEAD>§ 19.235   Deferred payment return periods—annual, quarterly, and semimonthly.</HEAD>
<P>(a) <I>Three types of return periods.</I> The IRC provides for three different return periods for those taxpayers who pay their taxes on a deferred basis: Annual, quarterly, and semimonthly. Taxpayers who meet certain criteria are eligible to use annual or quarterly return periods and pay their taxes on an annual or quarterly basis as provided in paragraphs (b) and (c) of this section, respectively. Other taxpayers must use semimonthly return periods and pay their taxes on a semimonthly basis as provided in paragraph (e) of this section.
</P>
<P>(b) <I>Annual return period.</I> Subject to paragraph (d) of this section, a taxpayer who reasonably expects to be liable for not more than $1,000 in taxes with respect to distilled spirits imposed by 26 U.S.C. 5001 and 7652 for the current calendar year, and that was liable for not more than $1,000 in such taxes in the preceding calendar year, may choose to use an annual return period. However, the taxpayer may not use the annual return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $1,000, and any tax which has not been paid on that date will be due on the 14th day after the last day of the quarterly or semimonthly period in which that date occurs. A taxpayer may choose to use either quarterly or semimonthly return periods as authorized under paragraph (c) or (e) of this section.
</P>
<P>(c) <I>Quarterly return period.</I> Except as provided in paragraph (b) of this section and subject to paragraph (d) of this section, a taxpayer who reasonably expects to be liable for not more than $50,000 in taxes with respect to distilled spirits imposed by 26 U.S.C. 5001 and 7652 for the current calendar year, and that was liable for not more than $50,000 in such taxes in the preceding calendar year, may choose to use a quarterly return period. However, the taxpayer may not use the quarterly return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $50,000, and any tax which has not been paid on that date will be due on the 14th day after the last day of the semimonthly period in which that date occurs.
</P>
<P>(d) <I>Additional rules for annual and quarterly return periods.</I> The following additional rules apply to the annual and quarterly return period procedures under paragraphs (b) and (c) of this section:
</P>
<P>(1) A taxpayer with multiple locations must combine the distilled spirits tax liability for all locations to determine eligibility for the return procedures;
</P>
<P>(2) A taxpayer who has both domestic operations and import transactions must combine the distilled spirits tax liability on the domestic operations and the imports to determine eligibility for the return procedures;
</P>
<P>(3) The controlled group rules of 26 U.S.C. 5061(e), which concern treatment of controlled groups as one taxpayer, do not apply for purposes of determining eligibility for the return procedures. However, a taxpayer who is eligible for the return procedures, and that is a member of a controlled group that owes $5 million or more in distilled spirits excise taxes per year, is required to pay taxes by electronic fund transfer (EFT). Quarterly payments via EFT must be transmitted in accordance with section 5061(e);
</P>
<P>(4) A new taxpayer is eligible to use the return procedures the first year of business simply if the taxpayer reasonably expects to be liable for not more than $1,000, in the case of the annual return procedure, or $50,000, in the case of the quarterly return procedure, in distilled spirits taxes during that calendar year; and
</P>
<P>(5) If a taxpayer becomes ineligible to use a return procedure described in paragraph (b) or (c) of this section because the taxpayer's liability exceeds $1,000 or $50,000, respectively, during a taxable year, that taxpayer may resume using that return procedure only after a full calendar year has passed during which the taxpayer's liability did not exceed $1,000 or $50,000 as the case may be. A taxpayer may not use an annual or quarterly return procedure during any calendar year in which the taxpayer reasonably expects to be liable for more than $1,000, in the case of the annual return procedure, or $50,000, in the case of the quarterly return procedure, in distilled spirits taxes.
</P>
<P>(e) <I>Semimonthly return period.</I> Except in the case of a taxpayer who qualifies for, and chooses to use, annual or quarterly return periods as provided in paragraphs (b) or (c) of this section, all other taxpayers must use semimonthly return periods for deferred payment of tax. The semimonthly return periods will run from the 1st day through the 15th day of each month, and from the 16th day through the last day of each month, except as otherwise provided in § 19.237.
</P>
<P>(f) <I>Definitions.</I> For purposes of this section, the following terms have the meanings indicated:
</P>
<P><I>Reasonably expects.</I> When used with reference to a taxpayer, <I>reasonably expects</I> means that there is no existing or anticipated circumstances known to the taxpayer (such as an increase in production capacity) that would cause the taxpayer's tax liability to exceed the prescribed limit.
</P>
<P><I>Taxpayer.</I> A <I>taxpayer</I> is an individual, corporation, partnership, or other entity that is assigned a single Employer Identification Number (EIN) as defined in 26 CFR 301.7701-12.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5061)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1122, Jan. 4, 2017, as amended by T.D TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.236" NODE="27:1.0.1.1.15.9.179.13" TYPE="SECTION">
<HEAD>§ 19.236   Due dates for returns.</HEAD>
<P>(a) <I>Semimonthly returns.</I> Except when payment is pursuant to an annual or quarterly return as provided in paragraph (b) or (c) of this section, where the proprietor of bonded premises has withdrawn spirits from such premises on determination and before payment of tax, the proprietor must file a semimonthly tax return covering such spirits on form TTB F 5000.24, Excise Tax Return, and remittance, as required by § 19.238, § 19.239 or § 19.240, not later than the 14th day after the last day of the return period, except for returns filed for September as provided in § 19.237. If the due date falls on a Saturday, Sunday, or legal holiday, the return and payment are due on the immediately preceding day that is not a Saturday, Sunday, or legal holiday, except as provided in § 19.237(c).
</P>
<P>(b) <I>Quarterly returns.</I> Where the proprietor of bonded premises has withdrawn spirits from such premises on determination and before payment of tax, and the proprietor uses quarterly return periods as provided in § 19.235(c), the proprietor must file a quarterly return covering such spirits on TTB F 5000.24, and remittance, as required by § 19.238, § 19.239, or § 19.240, not later than the 14th day after the last day of the quarterly return period. If the due date falls on a Saturday, Sunday, or legal holiday, the return and remittance will be due on the immediately preceding day which is not a Saturday, Sunday, or legal holiday.
</P>
<P>(c) <I>Annual returns.</I> Where the proprietor of bonded premises has withdrawn spirits from such premises on determination and before payment of tax, and the proprietor uses annual return periods as provided in § 19.235(b), the proprietor must file an annual return covering such spirits on TTB F 5000.24, and remittance, as required by § 19.238, § 19.239, or § 19.240, not later than the 14th day after the last day of the annual return period. If the due date falls on a Saturday, Sunday, or legal holiday, the return and remittance will be due on the immediately preceding day which is not a Saturday, Sunday, or legal holiday.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5061)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1122, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.237" NODE="27:1.0.1.1.15.9.179.14" TYPE="SECTION">
<HEAD>§ 19.237   Special rule for semimonthly filers for the month of September.</HEAD>
<P>(a) <I>Returns required for September.</I> If the proprietor is required to file semimonthly returns as provided in § 19.235(c), there are three return periods during the month of September. The first semimonthly return period is from the 1st day through the 15th day of the month and the return with remittance is due by the 29th of September. The second semimonthly return period for the month of September is divided into two payment periods. The exact dates of these periods depend upon whether the proprietor remits tax payments by EFT.
</P>
<P>(1) <I>Taxpayments by EFT.</I> If the proprietor remits tax payments by EFT, the two payment periods for the second half of September are from the 16th through the 26th, and from the 27th through the 30th. The return on form TTB F 5000.24 and remittance for the period September 16-26 is due on or before September 29. The return on TTB F 5000.24 and remittance for the period September 27-30 is due no later than October 14.
</P>
<P>(2) <I>Taxpayment other than by EFT.</I> If the proprietor is not required to pay the distilled spirits tax by EFT, the two payment periods for the second half of September are from the 16th through the 25th and from the 26th through the 30th. The return on TTB F 5000.24 and remittance for the period September 16-25 is due on or before September 28. The return on TTB F5000.24 and remittance for the period September 26-30 is due no later than October 14.
</P>
<P>(b) <I>Amount of payment: Safe harbor rule.</I>— (1) <I>EFT Taxpayers.</I> The proprietor satisfies the requirements of paragraph (a)(1) of this section if by September 29 the amount paid is at least eleven-fifteenths (73.3 percent) of the tax liability incurred in the semimonthly return period for September 1-15, and the proprietor also pays any underpayment of tax resulting from the use of the safe harbor rule on or before October 14.
</P>
<P>(2) <I>Other than EFT taxpayers.</I> The proprietor satisfies the requirements of paragraph (a)(2) of this section if the amount paid by September 28 is at least two-thirds (66.7 percent) of the tax liability incurred in the semimonthly return period for September 1-15, and the proprietor also pays any underpayment of tax resulting from the use of the safe harbor rule on or before October 14.
</P>
<P>(c) <I>Weekends and holidays.</I> If the required tax payment due date for the return period September 16-25 (non-EFT taxpayers) or September 16-26 (EFT taxpayers), falls on a Saturday or legal holiday, the proprietor's return and remittance are due on the immediately preceding day. If the required tax payment due date falls on a Sunday, the proprietor's return and payment are due on the immediately following day.
</P>
<P>(d)
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>Payment of tax for the month of September:
</PSPACE><P>(1) <I>Facts.</I> X, a proprietor required to pay taxes by electronic fund transfer, incurred tax liability in the amount of $30,000 for the first semimonthly period of September. For the period September 16-26, X incurred tax liability in the amount of $45,000, and for the period September 27-30, X incurred tax liability in the amount of $2,000.
</P><P>(2) <I>Payment requirement.</I> X's payment of tax in the amount of $30,000 for the first semimonthly period of September is due no later than September 29. X's payment of tax for the period September 16-26 is also due no later than September 29. X may use the safe harbor rule to determine the amount of payment due for the period of September 16-26. Under the safe harbor rule, X's payment of tax must equal $22,000.00, eleven-fifteenths of the tax liability incurred during the first semimonthly period of September. Additionally, X's payment of tax in the amount of $2,000 for the period September 27-30 must be paid no later than October 14. X must also pay the underpayment of tax, $23,000.00, for the period September 16-26, no later than October 14.</P></EXAMPLE>
<SECAUTH TYPE="N">(26 U.S.C. 5061)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.238" NODE="27:1.0.1.1.15.9.179.15" TYPE="SECTION">
<HEAD>§ 19.238   Payment by mail or courier.</HEAD>
<P>(a) <I>Payment by mail.</I> The proprietor must file each return on form TTBF 5000.24 in accordance with the instructions printed on the form. If the proprietor submits the return by U.S. mail, the official postmark of the U.S. Postal Service stamped on the cover in which the return is mailed will be considered to be the date of delivery of the return and also the remittance, if included. If the postmark on the cover is illegible, the proprietor will bear the burden of proving when the postmark was made. If the proprietor sends the return with or without remittance by registered mail or certified mail, the date of registry, or the date of the postmark on the sender's postal receipt for certified mail, will be treated as the date of delivery of the return and also of the remittance, if included.
</P>
<P>(b) <I>Payment by courier or other private delivery service.</I> A proprietor may send a return, with or without remittance, by courier or other private delivery service. If the proprietor sends the return with or without remittance with a courier or private delivery service that is available to the general public and that is at least as timely and reliable as the U.S. mail, and the delivery service has tracking and tracing procedures for its deliveries, TTB will consider the date of tender to the delivery service as recorded in the tracking and tracing record for the parcel as the date of delivery. If the proprietor sends the return, with or without remittance, by courier or other private delivery service that does not meet the above requirements, the actual date of delivery to TTB will be treated as the date of delivery of the return and also of the remittance, if included.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6302)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.239" NODE="27:1.0.1.1.15.9.179.16" TYPE="SECTION">
<HEAD>§ 19.239   Form of payment.</HEAD>
<P>(a) <I>General.</I> The proprietor must pay the tax due on spirits when filing a return on form TTB F 5000.24, Excise Tax Return. The remittance for the tax must accompany the return and may be in any form that is authorized by § 70.61 of this chapter and acceptable to the appropriate TTB officer. Exception: This does not apply to payments that must be made by EFT. For EFT payments see § 19.240.
</P>
<P>(b) <I>Consequences of default.</I> If a check or money order tendered in payment of taxes is not paid on presentment, or if the taxpayer is otherwise in default in payment, then any remittance made during the period of default must be either in cash or by an acceptable certified instrument. The proprietor must continue to pay in cash or by certified instrument as long as the proprietor remains in default, and until the appropriate TTB officer finds that accepting a check will not jeopardize the revenue.
</P>
<P>(c) <I>Certified instruments.</I> Acceptable certified instruments include certified checks, cashier's checks or treasurer's checks drawn on any bank or trust company incorporated under the laws of the United States, or under the laws of any State, Territory or possession of the United States, or a money order, as provided in § 70.61 of this chapter.
</P>
<P>(d) <I>Payment of taxes.</I> The proprietor must make checks or money orders payable to “Alcohol and Tobacco Tax and Trade Bureau”.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5061, 6311)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.240" NODE="27:1.0.1.1.15.9.179.17" TYPE="SECTION">
<HEAD>§ 19.240   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) <I>General.</I> —(1) <I>Criteria requiring EFT payment.</I> Under certain conditions, a proprietor may not make payments by cash, check, or money order. Instead, the proprietor must use the services of a commercial bank to pay tax on distilled spirits tax by EFT. Payments must be made by EFT in the current calendar year if the proprietor, as a taxpayer, was liable for $5 million or more in taxes on distilled spirits during the prior calendar year. For the purpose of determining whether the proprietor is subject to this requirement, the proprietor must use the total amount of tax liability on distilled spirits incurred under this part and parts 26 and 27 of this chapter (gross tax liability). Gross tax liability includes the distilled spirits tax on all taxable withdrawals of spirits and taxable importations of spirits, as well as tax on spirits brought into the United States from Puerto Rico and the Virgin Islands during the calendar year. This figure includes taxes incurred at any and all premises at which the proprietor conducts regulated activities. The proprietor may not net out or adjust for any drawback, credits or refunds of tax that are allowed. Overpayments made in excess of actual tax liability will not be included in the gross tax liability figure.
</P>
<P>(2) <I>Controlled group.</I> If the taxpayer is a member of a controlled group, the controlled group is treated as a single taxpayer when calculating liability of $5 million or more in distilled spirits taxes during the prior calendar year. A controlled group is a related group of taxpayers and is defined in subpart D of part 70 of this chapter.
</P>
<P>(3) <I>Separate return and payment for each DSP.</I> When the proprietor makes payments by EFT, the proprietor must file a separate return on form TTB F 5000.24 and make a separate EFT payment for each DSP from which spirits are withdrawn upon determination of tax.
</P>
<P>(b) <I>Requirements</I>—(1) <I>Notice to TTB.</I> If the proprietor's gross distilled spirits tax liability is $5 million or more in one calendar year, the proprietor must notify the appropriate TTB officer of this fact not later than January 10 of the following year. The proprietor must use the total amount of tax liability incurred under this part and parts 26 and 27 of this chapter to determine whether it must make this notification. Exception: this notice requirement does not apply if the proprietor already pays tax on distilled spirits by EFT. The notice shall be an agreement to make payments by EFT.
</P>
<P>(2) <I>Separate EFT for each return.</I> For each return filed in accordance with this part, the proprietor will direct the bank to make an EFT to the Treasury Account for the amount of the tax reported due on the return. The proprietor must give instructions to the bank early enough for the EFT to be made to the Treasury Account by no later than close of business on the last day for filing the return as prescribed in §§ 19.236 or 19.237, as appropriate.
</P>
<P>(3) <I>Discontinuing EFT payments.</I> If the proprietor pays tax by EFT and has a gross tax liability of less than $5 million in distilled spirits taxes during a calendar year, combining tax liabilities incurred under this part and parts 26 and 27 of this chapter, payment by EFT will be optional in the following year. The proprietor may continue to remit tax payment by EFT as provided in this section, or the proprietor may remit taxpayment using any acceptable method as set forth in § 19.239. If the proprietor decides to stop paying tax by EFT, the proprietor must give the appropriate TTB officer written notice of that decision. The proprietor must attach a written notice to the first return on form TTB F 5000.24 filed using a method of payment other than EFT. Such notice must state that tax is not due by EFT because the proprietor's tax liability during the preceding calendar year was less than $5 million. The proprietor must further state that future tax payments will be filed with the returns on TTB F 5000.24.
</P>
<P>(c) <I>Remittance</I>—(1) <I>Identifying EFT payments.</I> When the proprietor completes the return on TTB F 5000.24, the proprietor must indicate on the form that the tax was paid by EFT. The proprietor must file the completed TTB F 5000.24 with TTB as directed by the instructions on the form.
</P>
<P>(2) <I>Credit for payment.</I> TTB will credit the proprietor as having made a tax payment when the Treasury Account receives the EFT. TTB considers the EFT to be received by the Treasury Account when the EFT is paid to a Federal Reserve Bank.
</P>
<P>(3) <I>Record of payment.</I> When a proprietor directs a bank to make an EFT as required by paragraph (b)(2) of this section, any transfer data record furnished to the proprietor as part of normal banking procedures will serve as the record of payment. The proprietor will retain this document as part of the required records.
</P>
<P>(d) <I>Failure to make a tax payment by EFT.</I> The proprietor will be subject to a penalty imposed by 26 U.S.C. 5684, 6651, or 6656 for failure to make a required EFT tax payment before close of business on the last day for filing.
</P>
<P>(e) <I>Procedure.</I> Upon receipt of a notice filed pursuant to paragraph (b)(1) of this section, the appropriate TTB officer will provide the proprietor with a copy of the TTB Procedure entitled “Payment of Tax by Electronic Fund Transfer”. This publication outlines the procedure that the proprietor must follow when preparing returns and payments by EFT as required by this part. The proprietor must follow instructions provided by U.S. Customs and Border Protection (CBP) for submitting the EFT payments that must be made to CBP.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5061, 6302)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="180" NODE="27:1.0.1.1.15.9.180" TYPE="SUBJGRP">
<HEAD>Requirements for Employer Identification Numbers</HEAD>


<DIV8 N="§ 19.242" NODE="27:1.0.1.1.15.9.180.18" TYPE="SECTION">
<HEAD>§ 19.242   Employer identification number.</HEAD>
<P>The proprietor must enter the employer identification number (EIN) assigned to it by the Internal Revenue Service on each form TTB F 5000.24, Excise Tax Return, filed with TTB. Failure to enter the assigned EIN on TTB F 5000.24, may result in a $50.00 penalty for each occurrence as specified in § 70.113 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6109, 6723)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.243" NODE="27:1.0.1.1.15.9.180.19" TYPE="SECTION">
<HEAD>§ 19.243   Application for employer identification number.</HEAD>
<P>(a) <I>Use Form SS-4.</I> The proprietor must obtain an employer identification number (EIN) by filing an application with the Internal Revenue Service (IRS) on Form SS-4. Form SS-4 is available from Internal Revenue Service Centers, from IRS District Directors, the IRS Web site at <I>https://www.irs.gov,</I> or from TTB's National Revenue Center. The proprietor may file this form with IRS by mail, telephone, or fax by following the instructions on the form.
</P>
<P>(b) <I>Time limit.</I> If the proprietor has not already received, or applied for, an EIN at the time that the first return on form TTB F 5000.24, Excise Tax Return, is filed, the proprietor must file such application for an EIN not later than seven days from the date of filing the TTB F 5000.24.
</P>
<P>(c) <I>One EIN only.</I> Each proprietor must obtain and use only one EIN, regardless of the number of places of business for which the proprietor is required to file a tax return under this subpart.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6109)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="181" NODE="27:1.0.1.1.15.9.181" TYPE="SUBJGRP">
<HEAD>Effective Tax Rates</HEAD>


<DIV8 N="§ 19.245" NODE="27:1.0.1.1.15.9.181.20" TYPE="SECTION">
<HEAD>§ 19.245   Tax credits under 26 U.S.C. 5010.</HEAD>
<P>(a) <I>The distilled spirits tax.</I> Sections 5001 and 7652 of the IRC impose a tax on all distilled spirits produced in, or imported into, or brought into the United States at the rate prescribed in section 5001 of the IRC.
</P>
<P>(b) <I>Tax credits.</I> Section 5010 of the IRC provides a credit for the wine and flavors content in distilled spirits products. These credits effectively reduce the rate of excise tax paid on distilled spirits products that contain eligible wines and eligible flavors. As a result, the alcohol derived from eligible wine is taxed at the rates specified for wine in 26 U.S.C. 5041, and the alcohol derived from eligible flavors is not taxed to the extent that it does not exceed 2.5 percent of the alcohol in the product. This results in an effective tax rate on the distilled spirits product that is lower than the rate prescribed in 26 U.S.C. 5001.
</P>
<P>(c) <I>Eligible wine and eligible flavor.</I> The credit for the wine and flavor content of a distilled spirits product is allowable only if the wine or flavor contained in the product is an “eligible wine” or an “eligible flavor”. To determine whether a wine or flavor is eligible, refer to the definitions in § 19.1 and 26 U.S.C. 5010.
</P>
<P>(d) <I>Application of effective tax rates.</I> Section 19.246 describes how the proprietor should compute the effective tax rate for each distilled spirits product containing eligible wine or eligible flavor. Sections 19.247 through 19.250 set forth several different methods that the proprietor may use in applying the effective tax rates to taxable removals of products from the proprietor's bonded premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5010)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.246" NODE="27:1.0.1.1.15.9.181.21" TYPE="SECTION">
<HEAD>§ 19.246   Computing the effective tax rate for a product.</HEAD>
<P>(a) <I>How to compute effective tax rates.</I> In order to determine the effective tax rate for a distilled spirits product containing eligible wine or eligible flavor, the proprietor must first determine the total excise taxes due on the product from all sources including distilled spirits, eligible wine, and alcohol from eligible flavors in excess of 2.5 percent of the total proof gallons in the product. Then, the proprietor must determine the total number of proof gallons of alcohol in the product regardless of the source. By dividing the total tax (numerator) by the total number of proof gallons (denominator) the proprietor will arrive at the effective tax rate for the product in dollars per proof gallon. The proprietor will compute the effective tax rate according to the following formula:
</P>
<P>(1) <I>Numerator.</I> The numerator will be the sum of:
</P>
<P>(i) The proof gallons of all distilled spirits used in the product (exclusive of distilled spirits derived from eligible flavors), multiplied by the tax rate prescribed by 26 U.S.C. 5001;
</P>
<P>(ii) The wine gallons of each eligible wine used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5041(b)(1), (2), or (3), that would be imposed on the wine but for its removal to bonded premises. Three different tax classes of wine are eligible for the tax credit. The proprietor will have to repeat this step for each different tax class of eligible wine used; and
</P>
<P>(iii) The proof gallons of all distilled spirits derived from eligible flavors used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5001, but only to the extent that such distilled spirits exceed 2.5 percent of the denominator prescribed in paragraph (a)(2) of this section.
</P>
<P>(2) <I>Denominator.</I> The denominator will be the sum of:
</P>
<P>(i) The proof gallons of all distilled spirits used in the product, including distilled spirits derived from eligible flavors; and
</P>
<P>(ii) The wine gallons of each eligible wine used in the product, multiplied by twice the percentage of alcohol by volume of each, divided by 100.
</P>
<P>(b) <I>Rounding numbers</I>—(1) <I>Proof gallons.</I> When determining the effective tax rate, the proprietor must express quantities of distilled spirits, eligible wine, and eligible flavors to the nearest tenth of a proof gallon.
</P>
<P>(2) <I>Tax rates.</I> The proprietor may round the effective tax rate to as many decimal places as the proprietor deems appropriate, provided that the rate is expressed no less exactly than the rate rounded to the nearest whole cent. The proprietor must be consistent and round the effective tax rates for all products to the same number of decimal places. When rounding, if the number to the right of the last decimal place to be kept is less than five, it will be dropped, if it is five or over, a unit will be added.
</P>
<P>(c) <I>Example.</I> The 
<FTREF/> following is an example of the use of the formula.
</P>
<FTNT>
<P>
<SU>1</SU> Proof gallons by which distilled spirits derived from eligible flavors exceed 2.5% of the total proof gallons in the batch (100.9 − (2.5% × 3,371.8) = 16.6).</P></FTNT>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Batch Record
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">Distilled spirits</TD><TD align="left" class="gpotbl_cell">2249.1 proof gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible wine (14% alcohol by volume)</TD><TD align="left" class="gpotbl_cell">2265.0 wine gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible wine (19% alcohol by volume)</TD><TD align="left" class="gpotbl_cell">1020.0 wine gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible flavors</TD><TD align="left" class="gpotbl_cell">100.9 proof gallons.</TD></TR></TABLE></DIV></DIV>
<img src="/graphics/er16fe11.000.gif"/>
<SECAUTH TYPE="N">(26 U.S.C. 5010)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.247" NODE="27:1.0.1.1.15.9.181.22" TYPE="SECTION">
<HEAD>§ 19.247   Use of effective (actual) tax rates.</HEAD>
<P>(a) <I>Select method of applying tax rate.</I> The proprietor may choose to apply an effective tax rate to taxable removals of distilled spirits products in accordance with § 19.248, § 19.249, or § 19.250. Any proprietor who does not elect one of these options must establish an effective tax rate for each batch of distilled spirits product on which a claim for tax credit for alcohol derived from eligible wine or eligible flavor will be made. The proprietor must compute the effective tax rates for these products in accordance with the instructions in § 19.246.
</P>
<P>(b) <I>Record tax rates used.</I> The proprietor must record the effective tax rate used on the dump or batch records for the products as required by § 19.598. The proprietor must record the serial numbers of cases of product removed at each rate on the record of tax determination or other related record. The proprietor must keep these records available for inspection by TTB officers.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5010, 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.248" NODE="27:1.0.1.1.15.9.181.23" TYPE="SECTION">
<HEAD>§ 19.248   Standard effective tax rate.</HEAD>
<P>(a) <I>Establishing a standard effective tax rate for a product.</I> The proprietor may establish a permanent standard effective tax rate for any eligible distilled spirits product, rather than calculate a separate effective tax rate for each batch of product made. If the proprietor elects to use this option, the proprietor must determine the permanent standard effective tax rate based on the least quantity and the lowest alcohol content of eligible wine or eligible flavors used to manufacture the product. Thus, the permanent standard effective tax rate is the highest tax rate that would apply to the product because it is based on a batch with the least amount of alcohol from eligible wine and flavors that qualify for the credit under 26 U.S.C. 5010. By using this method the proprietor forgoes the possible use of a lower tax rate in exchange for the convenience of using a permanent standard effective tax rate that does not have to be recomputed for each batch of product made. The proprietor must keep a permanent record of the standard effective tax rates established for each product, in accordance with § 19.615.
</P>
<P>(b) <I>Batches subject to a higher tax rate.</I> Whenever the proprietor manufactures a batch of the product with a lesser quantity or lower alcohol content of eligible wine or eligible flavor, this will result in a higher tax rate on the product since the product will have less alcohol qualifying for the credit under 26 U.S.C. 5010 and a higher percentage of alcohol taxable at the rate published in 26 U.S.C. 5001. In such instances, the proprietor must keep the cased goods segregated from other completed cases of the same product subject to the permanent standard effective tax rate for that product. The proprietor must determine the tax rate for the nonstandard batch in accordance with § 19.247.
</P>
<P>(c) <I>TTB review of standard tax rates.</I> If the appropriate TTB officer finds that the use of this procedure jeopardizes the revenue, or causes administrative difficulty, the proprietor upon notification from TTB must discontinue use of this procedure.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5010, 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.249" NODE="27:1.0.1.1.15.9.181.24" TYPE="SECTION">
<HEAD>§ 19.249   Average effective tax rate.</HEAD>
<P>(a) <I>Establishing an average tax rate.</I> The proprietor may establish an average effective tax rate for any eligible distilled spirits product based on the total proof gallons in all batches of the same composition which have been produced during the preceding 6-month period and which have been or will be bottled or packaged, in whole or in part, for domestic consumption. At the beginning of each month, the proprietor must recompute the average effective tax rate so as to include only the immediately preceding 6-month period. The proprietor must show the average tax rate established for a product in the record of average effective tax rates as prescribed in § 19.613.
</P>
<P>(b) <I>TTB review of average effective tax rates.</I> If the appropriate TTB officer finds that the use of this procedure jeopardizes the revenue, or causes administrative difficulty, the proprietor upon notification from TTB must discontinue use of this procedure.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5010, 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.250" NODE="27:1.0.1.1.15.9.181.25" TYPE="SECTION">
<HEAD>§ 19.250   Inventory reserve account.</HEAD>
<P>(a) The proprietor may establish an inventory reserve account for any eligible distilled spirits product by maintaining an inventory reserve record as prescribed by § 19.614. The effective tax rate applied to each removal or other disposition will be the effective tax rate recorded on the inventory reserve record from which the removal or other disposition is depleted. With an inventory reserve account, the proprietor will tax pay removals on a first-in first-out basis regardless of which lot of product is actually removed.
</P>
<P>(b) If the appropriate TTB officer finds that the use of this procedure jeopardizes the revenue, or causes administrative difficulty, the proprietor upon notification from TTB must discontinue use of this procedure.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5010, 5207)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="182" NODE="27:1.0.1.1.15.9.182" TYPE="SUBJGRP">
<HEAD>Assessment of Taxes by TTB</HEAD>


<DIV8 N="§ 19.253" NODE="27:1.0.1.1.15.9.182.26" TYPE="SECTION">
<HEAD>§ 19.253   Assessment of tax on spirits not accounted for or reported.</HEAD>
<P>The proprietor is required by law to properly account for and report all spirits that it produces. TTB will assess the proprietor for the tax on the difference between the quantity reported and the quantity actually produced.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5006)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.254" NODE="27:1.0.1.1.15.9.182.27" TYPE="SECTION">
<HEAD>§ 19.254   Assessment of tax for losses or unauthorized removals.</HEAD>
<P>(a) <I>Lost or destroyed in bond.</I> TTB will assess the proprietor for the tax on spirits, denatured spirits, or wines in bond that are lost or destroyed if:
</P>
<P>(1) The proprietor is liable for the tax on spirits, denatured spirits, or wines in bond, and the proprietor fails to file a claim for remission of the tax on spirits, denatured spirits, or wines that are lost or destroyed in bond as provided in § 19.263(a), or
</P>
<P>(2) The proprietor files a claim for such loss or destruction but the claim is denied. Exception: The provisions of this section do not apply to spirits, denatured spirits, or wines on which the tax is not collectible due to the provisions of 26 U.S.C. 5008(a) or (d), or 26 U.S.C. 5370, as applicable.
</P>
<P>(b) <I>Unauthorized removal from bond.</I> (1) TTB will assess the proprietor for the tax on any spirits, denatured spirits, or wines in bond that are removed from bonded premises other than as authorized by law.
</P>
<P>(2) TTB will assess the proprietor for tax on spirits or denatured spirits lost from casks or other packages as described in 26 U.S.C. 5006(b) if the proprietor does not pay the tax upon demand by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5006, 5008, 5370)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="183" NODE="27:1.0.1.1.15.9.183" TYPE="SUBJGRP">
<HEAD>Additional Tax Provisions</HEAD>


<DIV8 N="§ 19.256" NODE="27:1.0.1.1.15.9.183.28" TYPE="SECTION">
<HEAD>§ 19.256   Tax on wine.</HEAD>
<P>(a) <I>Imposition of tax.</I> All wine (including imitation, substandard, or artificial wine, and compounds sold as wine) produced in or imported into or brought into the United States is subject to tax pursuant to 26 U.S.C. 5041 or 7652. The proprietor may be liable for wine taxes under 26 U.S.C. 5362(b)(3) for wine that is transferred in bond to the proprietor's distilled spirits plant. The proprietor may not remove wine from the bonded premises of a distilled spirits plant for consumption or sale as wine. (<I>See</I> 26 U.S.C. 5362.)
</P>
<P>(b) <I>Liability for tax.</I> Except as otherwise provided by law, the proprietor is liable for the tax on wine transferred in bond to the proprietor's distilled spirits plant from a bonded wine cellar or from another distilled spirits plant until the proprietor uses the wine in the manufacture of a distilled spirits product or properly disposes of the wine as provided elsewhere in this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5041, 5362, 7652)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.257" NODE="27:1.0.1.1.15.9.183.29" TYPE="SECTION">
<HEAD>§ 19.257   Imported spirits.</HEAD>
<P>The proprietor will incur a tax liability greater than the internal revenue tax imposed by 26 U.S.C. 5001(a)(1), if spirits originally imported for nonbeverage purposes are transferred from customs custody to TTB bonded premises pursuant to 26 U.S.C. 5232, and the proprietor subsequently decides to withdraw the spirits for beverage purposes. If the spirits would have been subject to a higher duty had they been imported for beverage purpose, the proprietor must pay a tax equal to the difference between the higher duty and the duty actually paid. Proprietors will refer to this additional tax as “additional tax—less duty” and pay it at the same time and in the same manner as the distilled spirits excise tax. Proprietors must compute the amount of “additional tax—less duty” owed by applying this rate to the total quantity of proof gallons withdrawn. The proprietor must make a separate entry on the tax return labeled “additional tax—less duty” and show the amount of tax due.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5001)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.258" NODE="27:1.0.1.1.15.9.183.30" TYPE="SECTION">
<HEAD>§ 19.258   Additional tax on nonbeverage spirits.</HEAD>
<P>The additional tax imposed by 26 U.S.C. 5001(a)(8), on imported spirits withdrawn from customs custody without payment of tax and later withdrawn from bonded premises for beverage purposes, and the related provisions of § 19.257, are not applicable to Puerto Rican or Virgin Islands spirits brought into the United States and transferred to bonded premises under the provisions of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.15.10" TYPE="SUBPART">
<HEAD>Subpart J—Claims</HEAD>


<DIV8 N="§ 19.261" NODE="27:1.0.1.1.15.10.184.1" TYPE="SECTION">
<HEAD>§ 19.261   Scope.</HEAD>
<P>This subpart covers the various types of claims that a proprietor may file and includes provisions regarding the following:
</P>
<P>(a) General requirements for filing claims;
</P>
<P>(b) Specific requirements for filing certain types of claims; and
</P>
<P>(c) Remission, abatement, credit and refund of tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5215, 6065)


</SECAUTH>
</DIV8>


<DIV7 N="184" NODE="27:1.0.1.1.15.10.184" TYPE="SUBJGRP">
<HEAD>Requirements for Filing Claims</HEAD>


<DIV8 N="§ 19.262" NODE="27:1.0.1.1.15.10.184.2" TYPE="SECTION">
<HEAD>§ 19.262   General requirements for filing claims.</HEAD>
<P>(a) A proprietor must file all claims for abatement, remission, credit, or refund under this part on form TTB F 5620.8, Claim—Alcohol and Tobacco Tax and Trade Bureau Taxes. The claim must:
</P>
<P>(1) Be filed with TTB's National Revenue Center;
</P>
<P>(2) Show the name, address, and capacity of the claimant;
</P>
<P>(3) Be signed by the claimant or by the claimant's duly authorized agent under penalties of perjury as provided in § 19.45; and
</P>
<P>(4) Include any supporting documents required by this part. The supporting documents will be considered a part of the claim.
</P>
<P>(b) The appropriate TTB officer may require that the claimant submit additional evidence or documentation to further support the legitimacy or accuracy of the claim.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5215, 6065)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.263" NODE="27:1.0.1.1.15.10.184.3" TYPE="SECTION">
<HEAD>§ 19.263   Claims on spirits, denatured spirits, articles, or wines lost or destroyed in bond—specific requirements.</HEAD>
<P>(a) <I>Claims for remission.</I> A claim for remission of tax liability relating to the destruction or loss of spirits, denatured spirits, articles, or wines in bond must include the following information:
</P>
<P>(1) <I>Identity of containers.</I> Identification of the containers, by serial number if they were numbered, and location of the containers from which the spirits, denatured spirits, articles, or wines were lost, or in which they were removed for destruction;
</P>
<P>(2) <I>Quantity of spirits.</I> The quantity of spirits, denatured spirits, articles, or wines lost or destroyed from each container, and the total quantity of spirits or wines covered by the claim;
</P>
<P>(3) <I>Amount of claim.</I> The total amount of tax for which the claim is filed;
</P>
<P>(4) <I>Identity of distilled spirits plant.</I> The name, number, and address of the distilled spirits plant from which withdrawn without payment of tax or removed for transfer in bond, if the claim involves spirits so withdrawn or removed or if the claim involves wines transferred in bond, and the date and purpose of such withdrawal or removal. In the case of imported spirits lost or destroyed while being transferred from customs custody to bonded premises as provided in § 19.409, the name of the customs bonded warehouse, if any, and port of entry will be included instead of the plant name, number, and address;
</P>
<P>(5) <I>Date and cause.</I> The date of the loss or destruction: If the date is not known, enter the date the loss or destruction was discovered. Include the cause of the loss together with relevant facts and details;
</P>
<P>(6) <I>Carrier.</I> The name of the carrier if the loss occurred while the spirits were in transit;
</P>
<P>(7) <I>Consignee.</I> The name and address of the consignee, in the case of spirits withdrawn without payment of tax which are lost before being used for research, development, or testing;
</P>
<P>(8) <I>Theft.</I> If lost by theft, the facts establishing that the loss did not occur as the result of any negligence, connivance, collusion, or fraud on the part of the proprietor of the plant, owner, consignor, consignee, bailee, or carrier, or the employees or agents of any of them; and
</P>
<P>(9) <I>Insurance.</I> In the case of a loss by theft, whether the claimant is indemnified or recompensed for the spirits or wines lost and if so, the amount and nature of indemnity or recompense and the actual value of the spirits or wines, less the tax.
</P>
<P>(b) <I>Claims for abatement, credit or refund.</I> If a proprietor files a claim for abatement of an assessment, or for credit or refund of tax that has been paid or determined, for spirits, denatured spirits, articles, or wines lost or destroyed in bond, the claim must include all of the applicable information described in paragraph (a) of this section as well as the following:
</P>
<P>(1) The date of assessment or payment of the tax for which abatement, credit or refund is claimed. If the tax has not been assessed or paid, give the date of the tax determination; and
</P>
<P>(2) The name, plant number and address of the plant where the tax was determined, assessed or paid. If the tax was assessed against, or paid by, someone other than the proprietor, then give the name, address and capacity of the person who was assessed or paid the tax.
</P>
<P>(c) <I>Supporting documents</I>—(1) <I>General.</I> If possible, the proprietor should support the information and details on all claims filed under this section with affidavits by persons having personal knowledge of the circumstances of the loss or destruction.
</P>
<P>(2) <I>Losses in transit.</I> For claims on spirits, denatured spirits, articles, or wines lost while being transferred by a carrier, the claim must be supported by a copy of the bill of lading.
</P>
<P>(3) <I>Spirits withdrawn without payment of tax.</I> If the lost spirits were withdrawn without payment of tax for research, development, or testing, the claim must be supported by a copy of the proprietor's sample record prescribed in subpart V of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5370)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1123, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.264" NODE="27:1.0.1.1.15.10.184.4" TYPE="SECTION">
<HEAD>§ 19.264   Claims on spirits returned to bonded premises—specific requirements.</HEAD>
<P>(a) <I>General.</I> Section 5215(a) of the IRC allows for the return of tax paid or tax determined spirits to the bonded premises of a distilled spirits plant under certain conditions. In addition, section 5008(c) of the IRC allows a proprietor to file a claim for credit or refund of tax on the spirits returned to bonded premises under section 5215(a). For information on allowable returns see subpart Q of this part.
</P>
<P>(b) <I>Claims for credit or refund.</I> A claim for credit or refund of tax on spirits returned to bonded premises under section 5215(a) must include the following information:
</P>
<P>(1) Quantity of spirits so returned;
</P>
<P>(2) Amount of tax for which the claim is filed;
</P>
<P>(3) Name, address, and plant number of the plant to which the spirits were returned and the date of the return;
</P>
<P>(4) The purpose for which the spirits were returned; and
</P>
<P>(5) The serial number of the gauge record for the returned spirits.
</P>
<P>(c) <I>Puerto Rican and Virgin Islands spirits and imported rum.</I> If the alcoholic content of the spirits contain at least 92 percent Puerto Rican or Virgin Islands rum, or if the spirits contain rum imported from any area other than Puerto Rico and the Virgin Islands, the claim must show:
</P>
<P>(1) Proof gallons of the finished product derived from Puerto Rican or Virgin Islands spirits, or derived from rum imported from any other area; and
</P>
<P>(2) The amount of tax imposed by 26 U.S.C. 7652 or 26 U.S.C. 5001, determined at the time of withdrawal from bond, on the Puerto Rican or Virgin Islands spirits, or on the rum imported from any other area, contained in the product.
</P>
<P>(d) <I>Products subject to 26 U.S.C. 5010 tax credits.</I> A claim for credit or refund of tax on spirits containing eligible wine or eligible flavors must include the date and serial number of the record of tax determination and the effective tax rate at which the tax was paid or determined. If this information is not provided, the amount of tax claimed will be based on the lowest effective tax rate applied to the product.
</P>
<P>(e) <I>Limits on claims.</I> Claims for credit or refund of tax must be filed by the proprietor of the plant to which the spirits were returned. The claim must be filed within six months of the date of the return. No interest is allowed on any claims for refund or credit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5215)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.265" NODE="27:1.0.1.1.15.10.184.5" TYPE="SECTION">
<HEAD>§ 19.265   Claims relating to spirits lost after tax determination.</HEAD>
<P>Claims for abatement, credit, or refund of tax under this part, relating to losses of spirits occurring on bonded premises after tax determination but prior to physical removal from such premises, will be prepared and filed in accordance with the regulations in § 19.263(b) and (c).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="185" NODE="27:1.0.1.1.15.10.185" TYPE="SUBJGRP">
<HEAD>Rules Regarding Credits, Abatement, Remission, or Refund</HEAD>


<DIV8 N="§ 19.266" NODE="27:1.0.1.1.15.10.185.6" TYPE="SECTION">
<HEAD>§ 19.266   Claims for credit of tax.</HEAD>
<P>A proprietor may file a claim for credit of tax, as provided in this part, after the tax has been determined, whether or not the tax has been paid. However, a proprietor may not anticipate allowance of a credit or make an adjusting entry in a tax return pending action on the claim.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5215)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.267" NODE="27:1.0.1.1.15.10.185.7" TYPE="SECTION">
<HEAD>§ 19.267   Adjustments for credited tax.</HEAD>
<P>When a proprietor receives a notice of allowance of credit from TTB, including notification of credit for tax on spirits exported with benefit of drawback as provided in part 28 of this chapter, the proprietor will make an adjusting entry and an explanatory statement on its next excise tax return. The proprietor will identify the notification of allowance of credit that authorizes the adjusting entry in the explanatory statement. If the allowable tax credit is greater than the tax due on the excise tax return, the proprietor will apply the balance of the tax credit to one or more following tax returns until the tax credit is exhausted.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5062)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.268" NODE="27:1.0.1.1.15.10.185.8" TYPE="SECTION">
<HEAD>§ 19.268   Allowance of remission, abatement, credit, or refund of tax.</HEAD>
<P>The appropriate TTB officer is authorized to allow claims for remission, abatement, credit, and refund of tax, filed under the provisions of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="186" NODE="27:1.0.1.1.15.10.186" TYPE="SUBJGRP">
<HEAD>Rules for Puerto Rican and Virgin Islands Spirits</HEAD>


<DIV8 N="§ 19.269" NODE="27:1.0.1.1.15.10.186.9" TYPE="SECTION">
<HEAD>§ 19.269   Puerto Rican and Virgin Islands spirits.</HEAD>
<P>(a) The provisions of 26 U.S.C. 5008, authorizing abatement, remission, credit, or refund for loss or destruction of distilled spirits, also apply to spirits brought into the United States from Puerto Rico or the Virgin Islands with respect to the following:
</P>
<P>(1) Spirits lost while in bond;
</P>
<P>(2) Voluntary destruction of spirits in bond;
</P>
<P>(3) Spirits returned to bonded premises after withdrawal without payment of tax; and
</P>
<P>(4) Spirits returned to bonded premises after withdrawal upon tax determination.
</P>
<P>(b) In addition to the information required by § 19.263, claims relating to spirits lost in bond must show the name of the producer and the serial number and date of the formula under which produced, if any.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5215)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1123, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.15.11" TYPE="SUBPART">
<HEAD>Subpart K—Gauging</HEAD>


<DIV8 N="§ 19.281" NODE="27:1.0.1.1.15.11.187.1" TYPE="SECTION">
<HEAD>§ 19.281   Scope.</HEAD>
<P>This subpart covers gauging, which is the determination of the quantity and the proof of distilled spirits. Topics covered in this subpart include: The general requirements for gauging; when gauges are required at distilled spirits plants; and special rules that apply to the gauges performed at distilled spirits plants. For additional requirements and procedures governing gauging, see part 30 of this chapter, Gauging Manual.


</P>
</DIV8>


<DIV8 N="§ 19.282" NODE="27:1.0.1.1.15.11.187.2" TYPE="SECTION">
<HEAD>§ 19.282   General requirements for gauging and measuring equipment.</HEAD>
<P>A proprietor is required to perform periodic gauges of the spirits, wines, and alcoholic flavorings at the plant. A proprietor must have accurate and readily usable gauging and measuring equipment as required by this part and part 30 of this chapter. At any time, TTB may require that the proprietor's gauges be performed in the presence of, and be verified by, a TTB officer. In addition, TTB may disapprove the use of any equipment, or the proprietor's means of gauging, if TTB finds that it is not sufficiently accurate or suitable for the gauges and measurements to be made.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5006, 5204)


</SECAUTH>
</DIV8>


<DIV7 N="187" NODE="27:1.0.1.1.15.11.187" TYPE="SUBJGRP">
<HEAD>Required Gauges</HEAD>


<DIV8 N="§ 19.283" NODE="27:1.0.1.1.15.11.187.3" TYPE="SECTION">
<HEAD>§ 19.283   When gauges are required.</HEAD>
<P>The proprietor must gauge spirits, wine, and alcoholic flavoring materials when required to do so by the appropriate TTB officer or when the spirits, wine, or flavoring materials are:
</P>
<P>(a) Produced and entered for deposit;
</P>
<P>(b) Filled into packages from storage tanks;
</P>
<P>(c) Transferred or received in bond;
</P>
<P>(d) Transferred between operational accounts;
</P>
<P>(e) Mixed in the manufacture of a distilled spirits product;
</P>
<P>(f) Mingled under § 19.329;
</P>
<P>(g) Reduced in proof before bottling;
</P>
<P>(h) Voluntarily destroyed;
</P>
<P>(i) Removed or withdrawn from bond;
</P>
<P>(j) Tax determined;
</P>
<P>(k) Returned to bond; or
</P>
<P>(l) Denatured.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204, 5559)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="188" NODE="27:1.0.1.1.15.11.188" TYPE="SUBJGRP">
<HEAD>Rules for Gauging</HEAD>


<DIV8 N="§ 19.284" NODE="27:1.0.1.1.15.11.188.4" TYPE="SECTION">
<HEAD>§ 19.284   Quantity determination of bulk spirits.</HEAD>
<P>(a) <I>Gauge of spirits in packages.</I> When determining the quantity of bulk spirits in packages, the proprietor must determine the quantity by weight as provided in part 30 of this chapter.
</P>
<P>(b) <I>Bulk gauge for tax determination.</I> When determining the quantity of bulk spirits for determination of tax or when performing a production gauge that will be used for tax determination, the proprietor must determine the quantity by weight as provided in part 30 of this chapter or by an accurate mass flow meter. For tax determination purposes, an accurate mass flow meter is a mass flow meter that has been certified by the manufacturer or other qualified person as accurate within a tolerance of plus or minus 0.1 percent.
</P>
<P>(c) <I>Volumetric determination.</I> Except as provided in paragraphs (a) and (b) of this section, in all other instances when the proprietor is required to gauge bulk spirits in bond, the proprietor may determine the quantity by either weight or volume. When the proprietor determines the quantity by volume, the proprietor must measure the spirits by using:
</P>
<P>(1) A tank or bulk conveyance for which a calibration chart is provided, with the calibration charts certified as accurate by persons qualified to calibrate tanks or bulk conveyances; or
</P>
<P>(2) An accurate mass flow meter. For purposes of this paragraph, an accurate mass flow meter is a mass flow meter that has been certified by the manufacturer or other qualified person as accurate within a tolerance of plus or minus 0.5 percent; or
</P>
<P>(3) Another device or method approved by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5559)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.285" NODE="27:1.0.1.1.15.11.188.5" TYPE="SECTION">
<HEAD>§ 19.285   Proof determination of distilled spirits.</HEAD>
<P>(a) <I>Proof.</I> Except as provided in paragraph (b) of this section, when the proprietor is required to gauge distilled spirits, the proprietor must determine the proof in accordance with the procedures prescribed in part 30 of this chapter, Gauging Manual.
</P>
<P>(b) <I>Use of Initial proof.</I> After a proprietor has determined the proof of distilled spirits in accordance with the procedures in part 30 of this chapter, a proprietor may use the initial determination of proof when required to make a later gauge at the same plant. However, a proprietor must determine the proof again when:
</P>
<P>(1) A bottling tank gauge is required by § 19.353;
</P>
<P>(2) A gauge for tax determination is required by § 19.226; or
</P>
<P>(3) In any case where the proof may have changed.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5559)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.286" NODE="27:1.0.1.1.15.11.188.6" TYPE="SECTION">
<HEAD>§ 19.286   Gauging of spirits in bottles.</HEAD>
<P>When gauging spirits in bottles, the proprietor may determine the proof and quantity from case markings and label information if the bottles are full and there is no evidence that tampering has occurred.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204, 5559)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.287" NODE="27:1.0.1.1.15.11.188.7" TYPE="SECTION">
<HEAD>§ 19.287   Gauging of alcoholic flavoring materials.</HEAD>
<P>Generally, alcoholic flavoring material must be gauged when dumped. However, when received from a manufacturer in a closed, nonporous container such material may be gauged by using the proof shown on the container label or a related statement of proof from the manufacturer. When the proof is determined from a label or manufacturer's statement, the proprietor will test a sufficient number of samples to verify the accuracy of the proof so determined. TTB may require that alcoholic flavoring materials be gauged by the methods provided in part 30 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204, 5559)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.288" NODE="27:1.0.1.1.15.11.188.8" TYPE="SECTION">
<HEAD>§ 19.288   Determination of tare.</HEAD>
<P>When packages are to be individually gauged for withdrawal from bonded premises, the actual tare must be determined in accordance with part 30 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.289" NODE="27:1.0.1.1.15.11.188.9" TYPE="SECTION">
<HEAD>§ 19.289   Production gauge.</HEAD>
<P>(a) <I>General requirements for production gauges.</I> A proprietor must gauge all spirits by determining the quantity and proof as soon as reasonably possible after production is completed. Except as otherwise provided in this section, a proprietor may determine the quantity by volume or by weight, by an accurate mass flow meter, or when approved by the appropriate TTB officer, by other devices or methods that accurately determine the quantities. If caramel is added to brandy or rum, the proof of the spirits must be determined after the addition. Spirits in each receiving tank will be gauged before any reduction in proof and both before and after each removal of spirits. The gauges must be recorded in the records required by § 19.585.
</P>
<P>(b) <I>Tax to be determined on production gauge.</I> If the tax is to be determined based on the production gauge, all transaction records must be marked “Withdrawal on Production Gauge.” A proprietor may determine the tax based on the production gauge if the spirits are:
</P>
<P>(1) Weighed into bulk conveyances or metered using an accurate mass flow meter;
</P>
<P>(2) Uniformly filled by weight or an accurate mass flow meter into metal packages; or
</P>
<P>(3) Filled by weight or an accurate mass flow meter into packages for immediate withdrawal from bonded premises with the details recorded on a package gauge record in accordance with § 19.619.
</P>
<P>(c) <I>Tax not to be determined on production gauge.</I> If spirits are drawn from the production system into barrels, drums, or similar portable containers of the same rated capacity and the containers are filled to capacity, and the tax is not to be determined on the basis of the production gauge, the gauge may be made by:
</P>
<P>(1) Weighing in a tank, converting the weight into proof gallons, and determining the average content of each container;
</P>
<P>(2) Measuring volumetrically, in a calibrated tank, converting the wine gallons determined into proof gallons, and determining the average content of each container;
</P>
<P>(3) Converting the rated capacity into proof gallons to determine the average content of each container. Rated capacity will be determined from specifications of the manufacturer. The proprietor will determine the rated capacity of used cooperage; or
</P>
<P>(4) Determining by an accurate mass flow meter or a device or method approved under paragraph (a) of this section, the total quantity filled into containers, and determining the average content of each container.
</P>
<P>(d) <I>Records of production gauge.</I> For the production gauge, fractional proof gallons will be rounded to the nearest one-tenth and the average content and the number of packages filled will be used in computing the quantity produced. The actual proof gallons in each remnant container must be shown. As provided in § 19.618, a separate gauge record will be prepared for each lot of packages filled (see § 19.485) and for each removal by pipeline or bulk conveyance for deposit in bond on the same plant premises. The gauge record will show “Deposit in storage” or “Deposit in processing.” If spirits are to be transferred in bond or withdrawn from bond, the production gauge will be made on the form or record required by this part (accompanied by a package gauge record, if required).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204, 5211)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.15.12" TYPE="SUBPART">
<HEAD>Subpart L—Production of Distilled Spirits</HEAD>


<DIV8 N="§ 19.291" NODE="27:1.0.1.1.15.12.189.1" TYPE="SECTION">
<HEAD>§ 19.291   General.</HEAD>
<P>The regulations in this subpart cover production operations. A proprietor authorized to produce distilled spirits must conduct production operations in accordance with the provisions of this subpart. Subpart V of this part sets forth recordkeeping requirements that apply to production operations.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV7 N="189" NODE="27:1.0.1.1.15.12.189" TYPE="SUBJGRP">
<HEAD>Notification to TTB When Beginning or Suspending Production Operations</HEAD>


<DIV8 N="§ 19.292" NODE="27:1.0.1.1.15.12.189.2" TYPE="SECTION">
<HEAD>§ 19.292   Notice of operations.</HEAD>
<P>A proprietor authorized to produce distilled spirits may not commence, suspend, or resume production operations at the plant without first providing written notice to TTB.
</P>
<P>(a) <I>Beginning operations.</I> A proprietor must file a letterhead notice with the appropriate TTB officer before beginning or resuming production operations. A proprietor must not begin or resume operations before the time specified in the notice.
</P>
<P>(b) <I>Suspending operations.</I> If a proprietor intends to suspend production operations for a period of 90 days or more, the proprietor must file a letterhead notice with the appropriate TTB officer specifying the date on which operations will be suspended.
</P>
<P>(c) <I>Discontinuing reports.</I> A proprietor is not required to prepare or file reports of production operations under subpart V of this part for periods during which production operations are suspended.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5221)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="190" NODE="27:1.0.1.1.15.12.190" TYPE="SUBJGRP">
<HEAD>Rules for Receipt, Use, and Disposal of Materials</HEAD>


<DIV8 N="§ 19.293" NODE="27:1.0.1.1.15.12.190.3" TYPE="SECTION">
<HEAD>§ 19.293   Receipt of materials.</HEAD>
<P>When a proprietor receives certain materials on bonded premises, the proprietor must determine the quantity received and record those quantities in the records prescribed by subpart V of this part. This requirement applies to:
</P>
<P>(a) Fermenting materials;
</P>
<P>(b) Distilling materials (including nonpotable chemical mixtures containing spirits); and
</P>
<P>(c) Spirits, denatured spirits, articles, and spirits residue for redistillation.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5222, 5223)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.294" NODE="27:1.0.1.1.15.12.190.4" TYPE="SECTION">
<HEAD>§ 19.294   Removal of fermenting material.</HEAD>
<P>Material received for use as fermenting material may be removed from or used on bonded premises for other purposes. The proprietor must keep a record of use or removal as provided in subpart V of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.295" NODE="27:1.0.1.1.15.12.190.5" TYPE="SECTION">
<HEAD>§ 19.295   Removal or destruction of distilling material.</HEAD>
<P>(a) <I>Distilling material.</I> Generally, a proprietor may not remove distilling material from bonded premises before it is distilled. However, a proprietor may remove mash, wort, wash, or other distilling material:
</P>
<P>(1) To plant premises, other than bonded premises, for use in any business authorized under § 19.55;
</P>
<P>(2) To other premises for use in processes not involving the production of spirits, alcohol beverages, or vinegar by the vaporizing process; or
</P>
<P>(3) For destruction.
</P>
<P>(b) <I>Residues.</I> A proprietor may remove the residue of distilling material not introduced into the production system from the premises if the liquid is extracted from the material before removal and the liquid is not received at any distilled spirits plant or bonded wine cellar. A proprietor may return residue of beer used as distilling material to the producing brewery. A proprietor may destroy distilling material produced and wine and beer received for use as distilling material.
</P>
<P>(c) <I>Records.</I> A proprietor must keep a record of removal or destruction as provided in subpart V of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5222, 5370)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.296" NODE="27:1.0.1.1.15.12.190.6" TYPE="SECTION">
<HEAD>§ 19.296   Fermented materials.</HEAD>
<P>Fermented materials that a proprietor intends to use in the production of spirits must be:
</P>
<P>(a) Produced on the bonded premises where used;
</P>
<P>(b) Received from a bonded wine cellar in the case of wine;
</P>
<P>(c) Beer received from a brewery without payment of tax, or beer that was removed from a brewery upon determination of tax; or
</P>
<P>(d) Apple cider exempt from tax under 26 U.S.C. 5042(a)(1).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5222, 5223)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.297" NODE="27:1.0.1.1.15.12.190.7" TYPE="SECTION">
<HEAD>§ 19.297   Use of materials in production of spirits.</HEAD>
<P>A proprietor may produce spirits from any suitable material in accordance with the proprietor's statements of production procedure in the notice of registration. Materials from which alcohol will not be produced may be used in production only if the use of the materials is described in the approved statements of production procedure. The distillation of nonpotable chemical mixtures as described in § 19.36 will be deemed to be the original and continuous distillation of the spirits in such mixtures and to constitute the production of spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5178)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="191" NODE="27:1.0.1.1.15.12.191" TYPE="SUBJGRP">
<HEAD>Rules for Production of Spirits</HEAD>


<DIV8 N="§ 19.301" NODE="27:1.0.1.1.15.12.191.8" TYPE="SECTION">
<HEAD>§ 19.301   Distillation.</HEAD>
<P>The distillation of spirits must be done in a continuous system. Distilling operations are continuous when the spirits are moved through the various steps of production as quickly as plant operation will permit. The proprietor may move the product through as many distilling or other production operations as desired, provided the operations are continuous. The collection of unfinished spirits for the purpose of redistillation is not considered to be a break in the continuity of the distilling procedure. However, the quantity and proof of any unfinished spirits must be determined and recorded before any mingling with other materials or before any further operations involving the unfinished spirits outside the continuous system. Before the production gauge, spirits may be held only as long as reasonably necessary to complete the production procedure.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178, 5211, 5222)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.302" NODE="27:1.0.1.1.15.12.191.9" TYPE="SECTION">
<HEAD>§ 19.302   Treatment during production.</HEAD>
<P>During production, the proprietor may purify or refine the spirits by using any material that will not remain in the finished product. Juniper berries and other natural aromatics or their extracted oils may be used in the distillation of gin. Spirits may be percolated through or treated with oak chips that have not been treated with any chemical. The proprietor must destroy or so treat any materials used in treatment of spirits, and which do not remain in the spirits, so as to preclude the extraction of potable spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.303" NODE="27:1.0.1.1.15.12.191.10" TYPE="SECTION">
<HEAD>§ 19.303   Addition of caramel to rum or brandy and addition of oak chips to spirits.</HEAD>
<P>A proprietor may add caramel that has no material sweetening properties to rum or brandy in packages or tanks prior to production gauge. A proprietor may add oak chips that have not been treated with any chemical to packages of spirits prior to or after the production gauge. The proprietor must note the use of oak chips on all transaction records.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.304" NODE="27:1.0.1.1.15.12.191.11" TYPE="SECTION">
<HEAD>§ 19.304   Production gauge.</HEAD>
<P>A proprietor must gauge all spirits by determining the quantity and proof as soon as reasonably possible after production is completed. Additional requirements regarding production gauges are found in subpart K of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204, 5211)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.305" NODE="27:1.0.1.1.15.12.191.12" TYPE="SECTION">
<HEAD>§ 19.305   Identification of spirits.</HEAD>
<P>Upon completion of the production gauge, the proprietor must identify containers of spirits as provided in subpart S of this part. When the proprietor intends to enter spirits into storage on bonded premises for later packaging in wooden packages, the proprietor may identify the spirits with the designation to which they would be entitled if drawn into wooden packages, followed by the word “Designate,” for example, “Bourbon Whisky Designate.”
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5206)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1123, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 19.306" NODE="27:1.0.1.1.15.12.191.13" TYPE="SECTION">
<HEAD>§ 19.306   Entry.</HEAD>
<P>(a) Following completion of the production gauge, a proprietor must make the appropriate entry for:
</P>
<P>(1) Deposit of the spirits on bonded premises for storage or processing;
</P>
<P>(2) Withdrawal of the spirits on determination of tax;
</P>
<P>(3) Withdrawal of the spirits free of tax;
</P>
<P>(4) Withdrawal of the spirits without payment of tax; or
</P>
<P>(5) Transfer of the spirits for redistillation.
</P>
<P>(b) A proprietor may use the production gauge as the entry gauge when spirits are:
</P>
<P>(1) Deposited for storage or processing at the same distilled spirits plant; or
</P>
<P>(2) Entered for redistillation at the same distilled spirits plant.
</P>
<P>(c) When spirits are entered for deposit at another distilled spirits plant or are entered for withdrawal or redistillation, the provisions subpart P of this part will apply.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5211)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.307" NODE="27:1.0.1.1.15.12.191.14" TYPE="SECTION">
<HEAD>§ 19.307   Distillates containing extraneous substances.</HEAD>
<P>(a) <I>Use in production.</I> Distillates that contain substantial quantities of fusel oil, aldehydes, or other extraneous substances may be removed from the distilling system before the production gauge and promptly added to fermenting or distilling material at the distillery where produced.
</P>
<P>(b) <I>Use at adjacent bonded wine cellar.</I> Distillates that contain aldehydes may be removed, without payment of tax, to an adjacent bonded wine cellar for use in fermentation of wine to be used as distilling material at the distilled spirits plant from which the distillates were removed. The removal of distillates to an adjacent bonded wine cellar must be done as provided in § 19.419. The receipt and use of those distillates must conform to the requirements of part 24 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5222, 5373)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="192" NODE="27:1.0.1.1.15.12.192" TYPE="SUBJGRP">
<HEAD>Rules for Chemical Byproducts</HEAD>


<DIV8 N="§ 19.308" NODE="27:1.0.1.1.15.12.192.15" TYPE="SECTION">
<HEAD>§ 19.308   Spirits content of chemicals produced.</HEAD>
<P>All chemicals and chemical byproducts produced must be substantially free of spirits before being removed from bonded premises. The spirits content of chemicals to be removed from bonded premises must not exceed 10 percent by volume unless the appropriate TTB officer approves higher limits. A proprietor must test chemicals for spirits content and maintain a record of such tests as required by § 19.584.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.309" NODE="27:1.0.1.1.15.12.192.16" TYPE="SECTION">
<HEAD>§ 19.309   Disposition of chemicals.</HEAD>
<P>Chemicals that meet the requirements in § 19.308 may be removed from bonded premises by pipeline or in containers marked to show the contents. The proprietor must determine the quantities of chemicals removed from bonded premises and keep records of removals as required by § 19.586. A TTB officer may take samples of chemicals.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5222)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.310" NODE="27:1.0.1.1.15.12.192.17" TYPE="SECTION">
<HEAD>§ 19.310   Wash water.</HEAD>
<P>Water used in washing chemicals to remove spirits may be run into a wash tank or a distilling material tank, or may be destroyed or disposed of on the premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="193" NODE="27:1.0.1.1.15.12.193" TYPE="SUBJGRP">
<HEAD>Production Inventories</HEAD>


<DIV8 N="§ 19.312" NODE="27:1.0.1.1.15.12.193.18" TYPE="SECTION">
<HEAD>§ 19.312   Physical inventories.</HEAD>
<P>A proprietor must take a physical inventory of the spirits and denatured spirits in tanks and other containers in the production account at the close of each calendar quarter. A proprietor must record the results of the inventory as provided in subpart V of this part and must show separately spirits and denatured spirits received for redistillation. TTB may require additional inventories be taken at any time.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="194" NODE="27:1.0.1.1.15.12.194" TYPE="SUBJGRP">
<HEAD>Rules for Redistillation</HEAD>


<DIV8 N="§ 19.314" NODE="27:1.0.1.1.15.12.194.19" TYPE="SECTION">
<HEAD>§ 19.314   General.</HEAD>
<P>Distillers or processors may redistill spirits, denatured spirits, articles, and spirits residues. Some redistillation requires an approved formula on form TTB F 5100.51, Formula and Process for Domestic and Imported Alcohol Beverages, as specified in §§ 5.192 and 5.193 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5223)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6. 2024]




</CITA>
</DIV8>


<DIV8 N="§ 19.315" NODE="27:1.0.1.1.15.12.194.20" TYPE="SECTION">
<HEAD>§ 19.315   Receipts for redistillation.</HEAD>
<P>(a) A proprietor may receive and redistill spirits or denatured spirits that:
</P>
<P>(1) Have not been removed from bond;
</P>
<P>(2) Have been withdrawn from bond on payment or determination of tax and returned to bond under subpart Q of this part;
</P>
<P>(3) Have been withdrawn from bond free of tax or without payment of tax and returned to bond under subpart T of this part; or
</P>
<P>(4) Have been abandoned to the United States and sold to the proprietor without the payment of tax.
</P>
<P>(b) A proprietor may also receive and redistill:
</P>
<P>(1) Recovered denatured spirits and recovered articles returned under § 19.454, and
</P>
<P>(2) Articles and spirits residues received under § 19.454.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5215, 5223, 5243)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.316" NODE="27:1.0.1.1.15.12.194.21" TYPE="SECTION">
<HEAD>§ 19.316   Redistillation.</HEAD>
<P>(a) TTB has established standards of identity for the various classes and types of distilled spirits. Those standards are found in part 5 of this chapter. If a proprietor intends to redistill spirits, the proprietor must ensure that the redistillation process does not cause the distillate to be become ineligible for designation in the class or type of spirits that the proprietor intends to produce. Therefore, spirits must not be redistilled at a proof lower than that allowed for the class and type at which the spirits were originally produced, unless the redistilled spirits are to be:
</P>
<P>(1) Used in wine production;
</P>
<P>(2) Used in the manufacture of gin or vodka; or
</P>
<P>(3) Designated as alcohol.
</P>
<P>(b) In order to preserve the class and type of spirits during the redistillation process, different kinds of spirits must be redistilled separately, or with distilling material of the same kind or type as that from which the spirits were originally produced. However, this restriction does not apply when:
</P>
<P>(1) Brandy is redistilled into “spirits-fruit” or “neutral spirits-fruit”. In this case the resulting distillate must not be used for producing wine;
</P>
<P>(2) Whiskey is redistilled into “spirits-grain” or “neutral spirits-grain”;
</P>
<P>(3) Spirits originally distilled from different kinds of material are redistilled into “spirits-mixed” or “neutral spirits-mixed”; or
</P>
<P>(4) The spirits are redistilled into alcohol.
</P>
<P>(c) All spirits redistilled after the production gauge will be treated the same as if the spirits had been originally produced by the redistiller. Spirits recovered by redistillation of denatured spirits, articles, or spirits residues may not be withdrawn from bonded premises except for industrial use or after denaturation. Otherwise, all provisions of this part and 26 U.S.C. chapter 51 applicable to the original production of spirits will be applicable to the redistillation of spirits. Nothing in this section affects any provision of this chapter relating to the labeling of distilled spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5215, 5223)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.15.13" TYPE="SUBPART">
<HEAD>Subpart M—Storage of Distilled Spirits</HEAD>


<DIV8 N="§ 19.321" NODE="27:1.0.1.1.15.13.195.1" TYPE="SECTION">
<HEAD>§ 19.321   General.</HEAD>
<P>This subpart covers storage operations at distilled spirits plants. A proprietor qualified as a warehouseman and authorized to store bulk distilled spirits and wines must conduct storage operations in accordance with the provisions of this subpart. Subpart V of this part sets forth recordkeeping requirements that apply to storage operations.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV7 N="195" NODE="27:1.0.1.1.15.13.195" TYPE="SUBJGRP">
<HEAD>Receipt and Storage of Spirits and Wines</HEAD>


<DIV8 N="§ 19.322" NODE="27:1.0.1.1.15.13.195.2" TYPE="SECTION">
<HEAD>§ 19.322   Receipt and storage of bulk spirits and wines.</HEAD>
<P>(a) <I>Deposit of spirits into storage account.</I> A proprietor may receive bulk spirits into the storage account:
</P>
<P>(1) From the production facilities of the same plant;
</P>
<P>(2) By transfer in bond from another plant;
</P>
<P>(3) From customs custody without payment of tax; or
</P>
<P>(4) By return to bulk storage.
</P>
<P>(b) <I>Deposit of wine into storage account.</I> A proprietor may receive bulk wine into the storage account:
</P>
<P>(1) By transfer in bond from a bonded wine cellar; or
</P>
<P>(2) By transfer in bond from another distilled spirits plant.
</P>
<P>(c) <I>Storage.</I> A proprietor may store spirits or wines in packages, tanks or portable bulk containers in the storage account on the bonded premises. If stored in portable containers, the containers must be kept so that they can be readily inspected or inventoried by TTB officers.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5202, 5211, 5212, 5231, 5232, 5601)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="196" NODE="27:1.0.1.1.15.13.196" TYPE="SUBJGRP">
<HEAD>Rules for Filling and Changing Packages</HEAD>


<DIV8 N="§ 19.324" NODE="27:1.0.1.1.15.13.196.3" TYPE="SECTION">
<HEAD>§ 19.324   Filling of packages from tanks.</HEAD>
<P>A proprietor may fill spirits or wines into packages from storage tanks on bonded premises. The spirits or wines in the tank must be gauged before the filling of packages begins and again when the filling is finished if the tank is not empty. The results of the gauges must be recorded in the records required by § 19.618.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.325" NODE="27:1.0.1.1.15.13.196.4" TYPE="SECTION">
<HEAD>§ 19.325   Change of packages.</HEAD>
<P>A proprietor may transfer spirits or wines in storage from one package to another. Each new package must contain spirits from only one package except in the case of spirits of 190° or more proof. Packages of spirits must be marked as provided in subpart S of this part. Each package of wine must bear the same marks as the package from which the wine was transferred.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="197" NODE="27:1.0.1.1.15.13.197" TYPE="SUBJGRP">
<HEAD>Rules for Mingling or Blending Spirits</HEAD>


<DIV8 N="§ 19.326" NODE="27:1.0.1.1.15.13.197.5" TYPE="SECTION">
<HEAD>§ 19.326   Mingling or blending of spirits for further storage.</HEAD>
<P>A proprietor may mingle or blend spirits in the storage account according to the following rules:
</P>
<P>(a) Spirits distilled at 190° or more of proof, whether or not later reduced, may be mingled in storage.
</P>
<P>(b) Domestic spirits distilled at less than 190° of proof may be mingled for withdrawal or further storage if the spirits:
</P>
<P>(1) Are of the same kind; and
</P>
<P>(2) Were produced in the same State.
</P>
<P>(c) Imported spirits distilled at less than 190° of proof may be mingled for withdrawal or further storage if the spirits:
</P>
<P>(1) Are of the same kind;
</P>
<P>(2) Were produced in the same foreign country; and
</P>
<P>(3) Were treated, blended, or compounded in the same foreign country and the U.S. import duty was paid at the same rate.
</P>
<P>(d) Imported spirits distilled at less than 190° of proof that are recognized as distinctive products under part 5 of this chapter may be mingled for withdrawal or further storage if the spirits:
</P>
<P>(1) Are of the same kind;
</P>
<P>(2) Were produced by the same proprietor in the same foreign country; and
</P>
<P>(3) Were treated, blended, or compounded by the same proprietor in the same foreign country and the U.S. import duty was paid at the same rate.
</P>
<P>(e) Fruit brandies distilled from the same kind of fruit at not more than 170° of proof may, for the sole purpose of perfecting such brandies according to commercial standards, be blended with each other, or with any blend of such fruit brandies in storage. Rums may, for the sole purpose of perfecting them according to commercial standards, be blended with each other, or with any blend of rums.
</P>
<P>(f) Packaging after mingling or blending must be done under the provisions of § 19.324. The mingled or blended spirits may be returned to the packages from which they were dumped, or as many of the packages as needed.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5214)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.327" NODE="27:1.0.1.1.15.13.197.6" TYPE="SECTION">
<HEAD>§ 19.327   Packages dumped for mingling.</HEAD>
<P>A proprietor must examine each package of spirits to be dumped for mingling. If any package bears evidence of loss due to theft or unauthorized voluntary destruction, the proprietor must notify the appropriate TTB officer before dumping the package. Mingled spirits must be recorded on the tank record required by §§ 19.592 and 19.593, as appropriate.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.328" NODE="27:1.0.1.1.15.13.197.7" TYPE="SECTION">
<HEAD>§ 19.328   Determining age of mingled spirits.</HEAD>
<P>When spirits are mingled, the age of the spirits for the entire lot will be the age of the youngest spirits contained in the lot.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.329" NODE="27:1.0.1.1.15.13.197.8" TYPE="SECTION">
<HEAD>§ 19.329   Mingled spirits or wines held in tanks.</HEAD>
<P>When wines or spirits of less than 190° of proof are mingled in a tank, the proprietor must gauge the spirits or wines in the tank and record the mingling gauge on the tank record prescribed in § 19.592.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="198" NODE="27:1.0.1.1.15.13.198" TYPE="SUBJGRP">
<HEAD>Use of Oak Chips and Caramel</HEAD>


<DIV8 N="§ 19.331" NODE="27:1.0.1.1.15.13.198.9" TYPE="SECTION">
<HEAD>§ 19.331   Use of oak chips in spirits and caramel in brandy and rum.</HEAD>
<P>A proprietor may add oak chips that have not been treated with any chemical to packages of spirits. The proprietor must note the use of oak chips on all transaction records. A proprietor may add caramel that has no material sweetening properties to rum or brandy stored in packages or tanks.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="199" NODE="27:1.0.1.1.15.13.199" TYPE="SUBJGRP">
<HEAD>Storage Inventories</HEAD>


<DIV8 N="§ 19.333" NODE="27:1.0.1.1.15.13.199.10" TYPE="SECTION">
<HEAD>§ 19.333   Physical inventories.</HEAD>
<P>A proprietor must take a physical inventory of all spirits and wines held in the storage account in tanks and other containers (except packages) at the close of each calendar quarter. A proprietor must record the results of the inventory as provided in subpart V of this part. TTB may require additional inventories at any time.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.15.14" TYPE="SUBPART">
<HEAD>Subpart N—Processing of Distilled Spirits</HEAD>


<DIV8 N="§ 19.341" NODE="27:1.0.1.1.15.14.200.1" TYPE="SECTION">
<HEAD>§ 19.341   General.</HEAD>
<P>This subpart covers processing operations at distilled spirits plants. A proprietor authorized to perform processing operations must conduct processing operations in accordance with the provisions of this subpart. Subpart V of this part sets forth recordkeeping requirements that apply to processing operations. Also, the provisions of subpart O of this part apply if a proprietor denatures spirits or manufactures articles on bonded premises as part of processing operations under this subpart.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV7 N="200" NODE="27:1.0.1.1.15.14.200" TYPE="SUBJGRP">
<HEAD>Rules for Receipt and Use of Spirits, Wines, and Alcoholic Flavoring Materials</HEAD>


<DIV8 N="§ 19.342" NODE="27:1.0.1.1.15.14.200.2" TYPE="SECTION">
<HEAD>§ 19.342   Receipt of spirits, wines, and alcoholic flavoring materials for processing.</HEAD>
<P>(a) <I>Receipt of bulk spirits.</I> A proprietor may receive bulk spirits into the processing account:
</P>
<P>(1) From the production or storage account at the same plant;
</P>
<P>(2) By transfer in bond from another distilled spirits plant; or
</P>
<P>(3) By withdrawal from customs custody under 26 U.S.C. 5232.
</P>
<P>(b) <I>Receipt of wines.</I> A proprietor may receive wines into the processing account:
</P>
<P>(1) From the storage account at the same plant; or
</P>
<P>(2) By transfer in bond from a bonded wine cellar or another distilled spirits plant.
</P>
<P>(c) <I>Receipt of spirits returned to bond.</I> A proprietor may receive spirits into the processing account that are returned to bond under the provisions of 26 U.S.C. 5215.
</P>
<P>(d) <I>Receipt of alcoholic flavoring materials.</I> A proprietor may receive alcoholic flavoring materials into the processing account.
</P>
<P>(e) <I>Dumping of spirits, wines, and alcoholic flavoring materials.</I> As provided in §§ 19.343 and 19.598, the proprietor must prepare a dump/batch record when spirits, wines, and alcoholic flavoring materials are dumped for use in the processing account. Spirits, wines, and alcoholic flavoring materials that are dumped into the processing account are subject to the following rules:
</P>
<P>(1) Spirits and wines received in bulk containers or conveyances may be retained in the containers or conveyances in which received until used, but must be recorded as dumped upon receipt;
</P>
<P>(2) Spirits and wines received by pipeline must be deposited in tanks and recorded as dumped on receipt; and
</P>
<P>(3) Alcoholic flavoring materials may be retained in the containers in which received or may be transferred to another container if the proprietor marks or otherwise indicates thereon, the full identification of the original container, the date of receipt, and the quantity deposited. Alcoholic flavoring materials and nonalcoholic ingredients will be considered dumped when mixed with spirits or wines.
</P>
<P>(f) <I>Gauging.</I> A proprietor must determine the proof gallon content of spirits, wines, and alcoholic flavoring materials at the time of dumping. Additional information regarding the gauging of spirits, wines, and alcoholic flavoring materials is found in subpart K of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.343" NODE="27:1.0.1.1.15.14.200.3" TYPE="SECTION">
<HEAD>§ 19.343   Use of spirits, wines, and alcoholic flavoring materials.</HEAD>
<P>A proprietor must prepare a dump/batch record in accordance with § 19.598 for spirits, wines, alcoholic flavoring materials, and nonalcoholic ingredients used in the manufacture of a distilled spirits product according to the following rules.
</P>
<P>(a) <I>Dump record.</I> A proprietor must prepare a dump record when spirits, wines, or alcoholic flavoring materials are dumped for use in the manufacture of a distilled spirits product, and when spirits are dumped for redistillation in the processing account.
</P>
<P>(b) <I>Batch record.</I> A proprietor must prepare a batch record to report:
</P>
<P>(1) The dumping of spirits that are to be used immediately and in their entirety in preparing a batch of a product manufactured under an approved formula;
</P>
<P>(2) The use of spirits or wines previously dumped, reported on dump records and retained in tanks or receptacles; or
</P>
<P>(3) The use of any combination of ingredients under paragraph (b)(1) or paragraph (b)(2) of this section in preparing a batch of product manufactured under an approved formula.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.344" NODE="27:1.0.1.1.15.14.200.4" TYPE="SECTION">
<HEAD>§ 19.344   Manufacture of nonbeverage products, intermediate products, or eligible flavors.</HEAD>
<P>(a) Distilled spirits and wine may be used for the manufacture of flavors or flavoring extracts of a nonbeverage nature as intermediate products to be used exclusively in the manufacture of other distilled spirits products on bonded premises.
</P>
<P>(b) Nonbeverage products on which drawback will be claimed, as provided in 26 U.S.C. 5111-5114, may not be manufactured on bonded premises. Premises used for the manufacture of nonbeverage products on which drawback will be claimed must be separated from bonded premises.
</P>
<P>(c) For purposes of computing an effective tax rate, flavors manufactured on either the bonded or general premises of a distilled spirits plant are not eligible flavors. See § 19.1 for the definition of the term “eligible flavor” and further restrictions that apply to the manufacture of an eligible flavor.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="201" NODE="27:1.0.1.1.15.14.201" TYPE="SUBJGRP">
<HEAD>Obscuration Determination</HEAD>


<DIV8 N="§ 19.346" NODE="27:1.0.1.1.15.14.201.5" TYPE="SECTION">
<HEAD>§ 19.346   Determining obscuration.</HEAD>
<P>A proprietor may determine, as provided in § 30.32 of this chapter, the proof obscuration of spirits to be bottled on the basis of a representative sample taken from a storage tank before the transfer of the spirits to the processing account or from a tank after the spirits have been dumped for processing, whether or not combined with other alcoholic ingredients. The obscuration will be determined after the sample has been reduced to within one degree of bottling proof. Only water may be added to a lot of spirits to be bottled for which the determination of proof obscuration is made from a sample under this section. The proof obscuration for spirits gauged under this section must be frequently verified by testing samples taken from bottling tanks before bottling.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="202" NODE="27:1.0.1.1.15.14.202" TYPE="SUBJGRP">
<HEAD>Filing Formulas with TTB</HEAD>


<DIV8 N="§ 19.348" NODE="27:1.0.1.1.15.14.202.6" TYPE="SECTION">
<HEAD>§ 19.348   Formula requirements.</HEAD>
<P>A proprietor must obtain approval of a formula on form TTB F 5100.51 as provided in §§ 5.192 and 5.193 of this chapter before a proprietor may:
</P>
<P>(a) Blend, mix, purify, refine, compound, or treat spirits in any manner which results in a change of character, composition, class, or type of the spirits, including redistillation as provided in § 19.314; or
</P>
<P>(b) Produce gin or vodka by other than original and continuous distillation.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5555)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. 196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="203" NODE="27:1.0.1.1.15.14.203" TYPE="SUBJGRP">
<HEAD>Rules for Bottling, Packaging, and Removal of Products</HEAD>


<DIV8 N="§ 19.351" NODE="27:1.0.1.1.15.14.203.7" TYPE="SECTION">
<HEAD>§ 19.351   Removals from processing.</HEAD>
<P>(a) <I>Method of removal.</I> A proprietor may remove spirits or wines from the processing account in any approved bulk container, by pipeline, or in bulk conveyances in compliance with the provisions of this part. Spirits may be bottled and cased for removal.
</P>
<P>(b) <I>Authorized removals from processing.</I> A proprietor may remove from processing:
</P>
<P>(1) Spirits, upon tax determination or withdrawal under 26 U.S.C. 5214 or 26 U.S.C. 7510;
</P>
<P>(2) Spirits, to the production account at the same plant for redistillation;
</P>
<P>(3) Bulk spirits, by transfer in bond to production or processing account at another distilled spirits plant for redistillation or further processing;
</P>
<P>(4) Spirits or wines, for authorized voluntary destruction; or
</P>
<P>(5) Wines, by transfer in bond to a bonded wine cellar or to another distilled spirits plant. However, wine may not be removed from the bonded premises of a distilled spirits plant for consumption or sale as wine.
</P>
<P>(c) <I>Exception.</I> Except as provided in paragraph (b)(2) and (3) of this section, spirits may not be transferred from the processing account to the storage account.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5001, 5006, 5008, 5201, 5206, 5212, 5214, 5223, 5362)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.352" NODE="27:1.0.1.1.15.14.203.8" TYPE="SECTION">
<HEAD>§ 19.352   Bottling tanks.</HEAD>
<P>Generally, a proprietor must bottle all spirits from tanks that are listed in the notice of registration and have been certified as accurate. However, if a proprietor files a letterhead application and shows the need to do so, the appropriate TTB officer may authorize bottling from original packages, tank trucks, totes or special containers where it is not practical to use a bottling tank. In addition, a proprietor may bottle liqueurs directly from a tank truck or tote without applying for permission to TTB if the liqueurs are gauged prior to unloading and piped directly to the bottling line.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.353" NODE="27:1.0.1.1.15.14.203.9" TYPE="SECTION">
<HEAD>§ 19.353   Bottling tank gauge.</HEAD>
<P>When a distilled spirits product is to be bottled or packaged, the proprietor must gauge the product after any filtering, reduction, or other treatment, and before bottling or packaging begins. The gauge must be made at labeling or package marking proof, subject to variations in accordance with the tolerances set forth in § 19.356(c); however, the actual measurement of the gauge must be entered on the bottling and packaging record required in § 19.599.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-158, 86 FR 18726, Apr. 2, 2020; 85 FR 20424, Apr. 13, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 19.354" NODE="27:1.0.1.1.15.14.203.10" TYPE="SECTION">
<HEAD>§ 19.354   Bottling or packaging records.</HEAD>
<P>A proprietor must prepare a record for each batch of spirits bottled or packaged as provided in § 19.599. A proprietor must keep a separate daily summary record of spirits bottled or packaged as provided in § 19.601.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.355" NODE="27:1.0.1.1.15.14.203.11" TYPE="SECTION">
<HEAD>§ 19.355   Labels describing the spirits.</HEAD>
<P>(a) Labels affixed to containers must accurately describe the spirits in the tanks from which the containers are filled. The proprietor's records must enable TTB officers to readily determine which label was used on any filled container.
</P>
<P>(b) Additional information regarding labeling requirements is found in subpart T of this part and part 5 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.356" NODE="27:1.0.1.1.15.14.203.12" TYPE="SECTION">
<HEAD>§ 19.356   Alcohol content and fill.</HEAD>
<P>(a) <I>General.</I> At representative intervals during bottling operations, a proprietor must examine and test bottled spirits to determine whether the alcohol content and quantity (fill) of those spirits agree with what is stated on the label or the bottle. A proprietor's test procedures must be adequate to ensure accuracy of labels on the bottled product. Proprietors must record the results of all tests of alcohol content and quantity (fill) in the record required by § 19.600.
</P>
<P>(b) <I>Variations in fill.</I> Quantity (fill) must be kept as close to 100 percent fill as the equipment and bottles in use will permit. There must be approximately the same number of overfills and underfills for each lot bottled. In no case will the quantity contained in a bottle vary from the quantity stated on the label or bottle by more than plus or minus:
</P>
<P>(1) 1.5 percent for bottles 1.0 liter and above;
</P>
<P>(2) 2.0 percent for bottles 999 mL through 376 mL;
</P>
<P>(3) 3.0 percent for bottles 375 mL through 101 mL; or
</P>
<P>(4) 4.5 percent for bottles 100 mL and below.
</P>
<P>(c) <I>Variations in alcohol content.</I> Variations in alcohol content may not exceed 0.3 percent alcohol by volume above or below the alcohol content stated on the label.
</P>
<P>(d) <I>Example.</I> Under paragraph (c) of this section, a product labeled as containing 40 percent alcohol by volume would be acceptable if the test for alcohol content found that it contained no less than 39.7 percent alcohol by volume and no more than 40.3 percent alcohol by volume.


</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5301)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-158, 85 FR 18726, Apr. 2, 2020; 85 FR 20424, Apr. 13, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 19.357" NODE="27:1.0.1.1.15.14.203.13" TYPE="SECTION">
<HEAD>§ 19.357   Completion of bottling.</HEAD>
<P>When the contents of a bottling tank are not completely bottled at the close of the day, the proprietor must make entries on the bottling and packaging record covering the total quantity bottled that day from the tank. Entries must be made not later than the morning of the following business day unless the proprietor maintains auxiliary or supplemental records as provided in § 19.580.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.358" NODE="27:1.0.1.1.15.14.203.14" TYPE="SECTION">
<HEAD>§ 19.358   Cases.</HEAD>
<P>(a) On completion of bottling, a proprietor must place filled bottles with properly affixed closures in cases. A proprietor may only fill cases with the same kind, size, and proof of spirits. Normally, the cases must be sealed; however, cases may be temporarily retained on bonded premises without being sealed pending the affixing to bottles of any required labels, State stamps, or seals. Unsealed cases must be marked in accordance with subpart S of this part, and segregated from other cases until sealed. All cases must be sealed and marked as provided in subpart S of this part before removal from the bonded premises.
</P>
<P>(b) Filled bottles may remain on the bottling line at the end of the workday if the identical product will be bottled on the next bottling shift and if adequate security measures are in place to prevent theft.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.359" NODE="27:1.0.1.1.15.14.203.15" TYPE="SECTION">
<HEAD>§ 19.359   Remnants.</HEAD>
<P>When at the end of a bottling run fewer bottles remain than the number necessary to fill a case, the remaining bottles may be placed in a case marked as a remnant case or kept uncased on the bonded premises until spirits of the same kind are again bottled. The remnant bottles may later be used to complete the filling of a case, or may be used for another lawful purpose such as replacing accidental breakage occurring on bonded premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.360" NODE="27:1.0.1.1.15.14.203.16" TYPE="SECTION">
<HEAD>§ 19.360   Filling packages.</HEAD>
<P>A proprietor may draw spirits into packages from a tank meeting the requirements of §§ 19.182 through 19.184. A proprietor must gauge the packages, report the details of the gauge on a package gauge record as provided in § 19.619, and attach a copy of the package gauge record to each copy of the bottling and packaging record covering the product. The packages must be marked as provided in subpart S of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.361" NODE="27:1.0.1.1.15.14.203.17" TYPE="SECTION">
<HEAD>§ 19.361   Removals by bulk conveyances or pipelines.</HEAD>
<P>(a) When a proprietor removes spirits from the processing account in bulk conveyances or by pipeline, the proprietor must record the removal on the bottling and packaging record.
</P>
<P>(b) Transfers and withdrawals of bulk spirits from the processing account must be performed in accordance with the provisions of subpart P of this part.
</P>
<P>(c) The consignor of the transfer must forward to the consignee a statement of composition or a copy of any formula under which the spirits were processed for determining the proper use of the spirits, or for the labeling of the finished product.
</P>
<P>(d) Bulk conveyances must be marked as provided in subpart S this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.362" NODE="27:1.0.1.1.15.14.203.18" TYPE="SECTION">
<HEAD>§ 19.362   Rebottling.</HEAD>
<P>When spirits are dumped for rebottling, the proprietor must prepare an appropriately modified bottling and packaging record. If the spirits were originally bottled by another proprietor, the rebottling proprietor must obtain a statement from the original bottler consenting to the rebottling.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.363" NODE="27:1.0.1.1.15.14.203.19" TYPE="SECTION">
<HEAD>§ 19.363   Reclosing and relabeling.</HEAD>
<P>(a) A proprietor may reclose or relabel distilled spirits before removal from, or after return to, bonded premises. The reclosing or relabeling of spirits returned to bonded premises must be done immediately, and the spirits promptly removed.
</P>
<P>(b) If the spirits were originally bottled by another proprietor, the relabeling proprietor must have on file a statement from the original bottler consenting to the relabeling.
</P>
<P>(c) When spirits are relabeled, the proprietor must have a certificate of label approval or certificate of exemption from label approval issued under part 5 of this chapter for the labels used on relabeled spirits.
</P>
<P>(d) A proprietor must prepare a separate record under § 19.604 for the relabeling or reclosing of spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5215)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.364" NODE="27:1.0.1.1.15.14.203.20" TYPE="SECTION">
<HEAD>§ 19.364   Bottled-in-bond spirits.</HEAD>
<P>If a proprietor labels spirits as bottled-in-bond for domestic consumption the labels must meet the requirements in part 5 of this chapter and the bottles must bear a closure or other device as required by subpart T of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.365" NODE="27:1.0.1.1.15.14.203.21" TYPE="SECTION">
<HEAD>§ 19.365   Spirits not originally intended for export.</HEAD>
<P>Spirits produced in the United States and originally intended for domestic use may be exported with benefit of drawback or without payment of tax if the containers are marked as required by part 28 of this chapter. A proprietor may relabel the spirits to show any of the information required by § 19.519. If a proprietor intends to file a claim for drawback on spirits prepared for export under this section, the proprietor must follow the provisions of § 28.195b of this chapter. If a proprietor intends to withdraw spirits without payment of tax for export, the proprietor must follow the procedures in subpart E of part 28 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5062, 5214)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.366" NODE="27:1.0.1.1.15.14.203.22" TYPE="SECTION">
<HEAD>§ 19.366   Alcohol.</HEAD>
<P>(a) <I>Containers.</I> A proprietor may put alcohol for industrial use in bottles, packages, or other containers, subject to the provisions of subpart S of this part. A proprietor must follow the provisions of subpart T of this part when bottling alcohol for nonindustrial domestic use.
</P>
<P>(b) <I>Closures.</I> Closures or other devices must be affixed to containers of alcohol as provided in subpart T of this part.
</P>
<P>(c) <I>Bottle labels.</I> All bottles of alcohol for industrial use must have a label that is securely affixed to the bottle showing the word “Alcohol” and the name and plant number of the bottler. The proprietor may place additional information on the label if it is not inconsistent with the required information.
</P>
<P>(d) <I>Case marks.</I> Each case of bottled alcohol must bear the marks required by subpart S of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5206, 5235, 5301)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="204" NODE="27:1.0.1.1.15.14.204" TYPE="SUBJGRP">
<HEAD>Requirements for Processing Inventories</HEAD>


<DIV8 N="§ 19.371" NODE="27:1.0.1.1.15.14.204.23" TYPE="SECTION">
<HEAD>§ 19.371   Inventories of wines and bulk spirits in processing.</HEAD>
<P>A proprietor must take a physical inventory of all wines and bulk spirits (except packages) held in the processing account at the close of each calendar quarter. The results of the inventory must be recorded as provided in subpart V of this part. TTB may require additional inventories at any time.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.372" NODE="27:1.0.1.1.15.14.204.24" TYPE="SECTION">
<HEAD>§ 19.372   Physical inventories of bottled and packaged spirits.</HEAD>
<P>(a) <I>Physical inventories.</I> Generally, a proprietor must take physical inventories of bottled and packaged spirits in the processing account for the return periods ending June 30 and December 31, and at any other time that the appropriate TTB officer requires. Physical inventories may be taken within a period of a few days before or after June 30 or December 31 if:
</P>
<P>(1) The period does not include more than one complete weekend; and
</P>
<P>(2) Necessary adjustments are made to the inventory record to reflect the actual quantities on hand June 30 or December 31.
</P>
<P>(b) <I>Alternate dates.</I> On approval of an application filed with the appropriate TTB officer, required physical inventories may be taken on dates other than June 30 and December 31 if the dates established for taking such inventories:
</P>
<P>(1) Coincide with the end of a return period, and
</P>
<P>(2) Are approximately 6 months apart.
</P>
<P>(c) <I>Waiver of physical inventory.</I> A proprietor may file an application to take only one physical inventory per year. The appropriate TTB officer may approve the application if she or he finds that only one physical inventory per year will be sufficient to protect the revenue. However, the requirement for the waived inventory may be reimposed if it becomes necessary for protection of the revenue.
</P>
<P>(d) <I>Notification of physical inventory.</I> A proprietor must notify the appropriate TTB officer at least 5 business days in advance of the date and time of a physical inventory of bottled or packaged spirits. TTB officers may be assigned to verify or supervise physical inventories taken under the provisions of this section.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="O" NODE="27:1.0.1.1.15.15" TYPE="SUBPART">
<HEAD>Subpart O—Denaturing Operations and Manufacture of Articles</HEAD>


<DIV8 N="§ 19.381" NODE="27:1.0.1.1.15.15.205.1" TYPE="SECTION">
<HEAD>§ 19.381   General.</HEAD>
<P>This subpart covers the denaturation of spirits and the manufacture of articles by proprietors of distilled spirits plants. Denatured spirits are distilled spirits that have been rendered unsuitable for beverage use by the addition of specific amounts of approved denaturing materials. For purposes of this subpart, articles are products that contain denatured spirits and that are made in accordance with this subpart or part 20 of this chapter. Proprietors who are qualified under this part as processors may make denatured spirits and articles in accordance with the provisions of this subpart. Additional requirements regarding the distribution, use, and standards for denatured spirits are set forth in parts 20 and 21 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178, 5241)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.382" NODE="27:1.0.1.1.15.15.205.2" TYPE="SECTION">
<HEAD>§ 19.382   Formulas.</HEAD>
<P>(a) <I>Approved formulas.</I> A proprietor must denature spirits according to an approved formula listed in part 21 of this chapter.
</P>
<P>(b) <I>Alternate formulas and denaturants.</I> If a proprietor wishes to denature spirits by using an alternative formula or a different denaturant, the proprietor must apply to TTB for authorization. A proprietor must receive written approval from the appropriate TTB officer before denaturing spirits using an alternative formula or a different denaturant. See also §§ 21.5 and 21.91 of this chapter for additional requirements that apply in these circumstances.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5241)


</SECAUTH>
</DIV8>


<DIV7 N="205" NODE="27:1.0.1.1.15.15.205" TYPE="SUBJGRP">
<HEAD>Rules for Denaturing Spirits and Testing Denaturants</HEAD>


<DIV8 N="§ 19.383" NODE="27:1.0.1.1.15.15.205.3" TYPE="SECTION">
<HEAD>§ 19.383   Gauging for denaturation.</HEAD>
<P>(a) <I>General.</I> A proprietor must gauge spirits before denaturation and after denaturation and must record each gauge in the record of denaturation required by § 19.606(b). However, a proprietor is not required to gauge either spirits that are dumped from previously gauged containers or spirits that are transferred directly to mixing tanks from gauge tanks where they were gauged. Measurements of spirits and denaturants may be made by volume, weight, accurate mass flow meter, or by any other device that has been approved by the appropriate TTB officer.
</P>
<P>(b) <I>Denaturation and article manufacture in a single process.</I> When a proprietor both denatures spirits and manufactures articles in a single, unified process, the proprietor may, in place of the procedure specified in paragraph (a) of this section, gauge the spirits before and after denaturation in the following manner:
</P>
<P>(1) Gauge the spirits to be denatured by volume, weight, accurate mass flow meter, or other device or method approved by the appropriate TTB officer;
</P>
<P>(2) Gauge the denaturants to be used by volume, weight, accurate mass flow meter, or other device approved by the appropriate TTB officer; and
</P>
<P>(3) Compute the number of wine gallons of denatured spirits produced, and enter this figure in the record required by § 19.606(b). In calculating the amount of denatured spirits produced, the proprietor must not include in the calculation the amount of additional chemicals or denaturants used for article manufacture.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204, 5241)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.384" NODE="27:1.0.1.1.15.15.205.4" TYPE="SECTION">
<HEAD>§ 19.384   Adding denaturants to spirits.</HEAD>
<P>(a) When making denatured spirits, a proprietor must mix the denaturants and spirits only in packages, tanks or bulk conveyances and only on bonded premises. A proprietor must thoroughly mix the denaturants with the spirits to ensure that all of the spirits are effectively denatured.
</P>
<P>(b) If a proprietor wishes to use another method of mixing denaturants and spirits not prescribed in this subpart, the proprietor must submit to the appropriate TTB officer a written application for approval of the alternative method in accordance with § 19.27. TTB may require that the proprietor submit additional information, including a flow diagram or other graphic representation of the alternative method, in support of the application.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5242)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.385" NODE="27:1.0.1.1.15.15.205.5" TYPE="SECTION">
<HEAD>§ 19.385   Making alcohol or water solutions of denaturants.</HEAD>
<P>If a proprietor uses a denaturant that is difficult to dissolve in spirits at normal working temperatures, that is highly volatile, or that becomes solid at normal working temperature, the proprietor may liquefy or dissolve the denaturant in a small amount of spirits or water prior to its use in the production of denatured spirits. However, the proof of the denatured spirits produced must not fall below the proof required by the approved formula. In addition, if alcohol is used as a solvent, the proprietor must include this additional alcohol in calculating the total quantity of spirits denatured in the batch.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5242)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.386" NODE="27:1.0.1.1.15.15.205.6" TYPE="SECTION">
<HEAD>§ 19.386   Adjusting pH of denatured spirits.</HEAD>
<P>A proprietor may add trace amounts of acidic or caustic chemical compounds to adjust or neutralize the pH of denatured spirits. However, a proprietor may not adjust the pH with any substance that will counteract or reduce the effect of the denaturants. A proprietor who adjusts the pH of denatured spirits must keep a record of the adjustment with reference to the formula number of the treated denatured spirits. The record must include the kinds and quantities of chemical compounds used for each batch of denatured spirits treated.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5241, 5242)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.387" NODE="27:1.0.1.1.15.15.205.7" TYPE="SECTION">
<HEAD>§ 19.387   Ensuring the quality of denaturants.</HEAD>
<P>(a) <I>General.</I> Proprietors must ensure that the materials they receive for use in denaturing conform to the specifications prescribed in part 21 of this chapter. In addition, the appropriate TTB officer may require that a proprietor test the quality of denaturants at any time.
</P>
<P>(b) <I>Testing.</I> A proprietor must comply with the following when testing a lot of denaturants:
</P>
<P>(1) Sampling denaturants. Proprietors must use good commercial practice when taking samples of denaturants for quality assurance testing. Samples of denaturants must be representative of the lot being sampled.
</P>
<P>(2) <I>Third party testing.</I> A proprietor may employ an outside laboratory or other appropriate third party to test samples of denaturants. In the case of a third party test, the proprietor must obtain a copy of the analysis or statement of findings signed by the chemist who performed the test. On request, the proprietor must provide to the appropriate TTB officer samples of denaturants for quality control testing in a Government laboratory.
</P>
<P>(c) <I>Substandard denaturants.</I> If TTB or a proprietor finds that a material does not conform to the specifications for a denaturant prescribed in part 21 of this chapter, the proprietor must immediately terminate use of the substandard material as a denaturant. However, the proprietor may continue to use the material as a denaturant after treating or reprocessing the substandard material to correct the deficiency and bring the material into conformity with the applicable specifications.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5242)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="206" NODE="27:1.0.1.1.15.15.206" TYPE="SUBJGRP">
<HEAD>Rules for Storing Denatured Spirits and Filling Containers</HEAD>


<DIV8 N="§ 19.388" NODE="27:1.0.1.1.15.15.206.8" TYPE="SECTION">
<HEAD>§ 19.388   Storing denatured spirits.</HEAD>
<P>(a) <I>Bonded storage.</I> A proprietor must store on bonded premises all denatured spirits produced, received in bond, or received by return to bond.
</P>
<P>(b) <I>Storage methods.</I> A proprietor may store denatured spirits on bonded premises in any appropriate tank, package or container authorized for filling with denatured spirits. The proprietor must store containers of denatured spirits in a manner that allows for easy inspection and inventory of the denatured spirits by TTB officers. A proprietor must store portable containers of denatured spirits within a building or structure that protects the spirits from unauthorized access. A proprietor may apply to the appropriate TTB officer for authorization to store containers of denatured spirits in an alternative manner in accordance with § 19.27.
</P>
<P>(c) <I>Tank Records.</I> A proprietor must maintain a record for tanks in which denatured spirits are stored in accordance with § 19.606.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.389" NODE="27:1.0.1.1.15.15.206.9" TYPE="SECTION">
<HEAD>§ 19.389   Filling containers from tanks.</HEAD>
<P>(a) <I>Filling portable containers.</I> A proprietor may fill portable containers with denatured spirits from tanks on the bonded premises.
</P>
<P>(b) <I>Accounting for denatured spirits in filling operations.</I> In performing filling operations under paragraph (a) of this section, a proprietor must:
</P>
<P>(1) Gauge the denatured spirits remaining in the tanks at the end of each filling operation;
</P>
<P>(2) Maintain a record of each gauge and document the quantity of denatured spirits drawn from the tank during each filling operation; and
</P>
<P>(3) Make a record of any spirits lost during the filling operation.
</P>
<P>(c) <I>Gauging requirements.</I> The provisions of § 19.289(a) and (c) apply to the filling and gauging of portable containers. In addition, a proprietor may withdraw denatured spirits from the bonded premises in portable containers based on the filling gauge.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.390" NODE="27:1.0.1.1.15.15.206.10" TYPE="SECTION">
<HEAD>§ 19.390   Container marking requirements.</HEAD>
<P>A proprietor must mark packages and portable containers containing denatured spirits in accordance with the requirements of subpart S of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="207" NODE="27:1.0.1.1.15.15.207" TYPE="SUBJGRP">
<HEAD>Rules for Mixing and Converting Denatured Spirits</HEAD>


<DIV8 N="§ 19.391" NODE="27:1.0.1.1.15.15.207.11" TYPE="SECTION">
<HEAD>§ 19.391   Mixing denatured spirits.</HEAD>
<P>(a) <I>Spirits of the same formula.</I> If a proprietor has two or more different batches of denatured spirits produced under the same formula, the proprietor may mix them on bonded premises.
</P>
<P>(b) <I>Spirits of different formulas.</I> A proprietor may mix denatured spirits produced under different formulas on bonded premises for immediate redistillation at the same plant or at another plant subject to the provisions of §§ 19.314, 19.315, and 19.316.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5241, 5242)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.392" NODE="27:1.0.1.1.15.15.207.12" TYPE="SECTION">
<HEAD>§ 19.392   Converting denatured alcohol to a different formula.</HEAD>
<P>(a) <I>General.</I> A proprietor may convert specially denatured alcohol (SDA) from one formula of SDA to another formula of SDA if the resultant mixture contains only alcohol and the denaturants listed for an approved SDA formula and in the correct concentrations, as set forth in part 21 of this chapter. Such converted SDA may be used only as authorized in part 21 of this chapter.
</P>
<P>(b) <I>Converting SDA to SDA Formula No. 1</I>—(1) <I>All SDA other than SDA Formulas No. 3-A and No. 30.</I> A proprietor may convert any SDA, other than SDA produced under Formulas No. 3-A and No. 30, into SDA Formula No. 1 by adding methyl alcohol and any one of the other alternative denaturants listed in § 21.32 of this chapter in accordance with the formulation prescribed in that section.
</P>
<P>(2) <I>SDA Formulas No. 3-A and No. 30.</I> SDA Formulas No. 3-A and No. 30 specify more methyl alcohol than is specified for SDA Formula No. 1. Therefore, in order to convert SDA produced under Formulas No. 3-A or No. 30 into SDA under Formula No. 1, a proprietor must first add a sufficient amount of ethyl alcohol to the SDA in question to bring the methyl alcohol content to the proportion prescribed for SDA Formula No. 1. After adjusting the proportion of methyl alcohol, the proprietor must add the specified amount of any one of the other alternative denaturants listed in § 21.32 of this chapter.
</P>
<P>(c) <I>Converting SDA to SDA Formula No. 29.</I> A proprietor may convert any SDA into SDA Formula No. 29 by adding the amount of acetaldehyde or ethyl acetate specified in § 21.56 of this chapter. However, due to the presence of other denaturants from the original formula, SDA under Formula No. 29 that has been converted from another SDA formula may be used only as authorized in § 21.56(b) but not in the manufacture of vinegar, drugs or medicinal chemicals, and the conditions governing use provided in § 21.56(c) will apply.
</P>
<P>(d) <I>Other conversions of SDA.</I> If a proprietor wishes to make an SDA formula conversion other than one authorized in paragraph (a), (b), or (c) of this section, the proprietor must obtain approval from the appropriate TTB officer prior to the conversion.
</P>
<P>(e) <I>Conversions to completely denatured alcohol.</I> A proprietor may convert any SDA from a formula that does not contain methyl alcohol or wood alcohol to any one of the completely denatured alcohol (CDA) formulas prescribed in subpart C of part 21 of this chapter, by adding the denaturants specified for CDA.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5242)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="208" NODE="27:1.0.1.1.15.15.208" TYPE="SUBJGRP">
<HEAD>Rules for Restoration and Redenaturation, Inventories, and Manufacture of Articles; Records Required</HEAD>


<DIV8 N="§ 19.393" NODE="27:1.0.1.1.15.15.208.13" TYPE="SECTION">
<HEAD>§ 19.393   Restoration and redenaturation of recovered denatured spirits and recovered articles.</HEAD>
<P>(a) <I>Recovered denatured spirits and articles.</I> A proprietor may receive recovered denatured spirits and recovered articles on bonded premises for restoration (including redistillation, if necessary), or redenaturation, or both, as provided in subpart Q of this part. However, the proprietor may not withdraw the spirits from bonded premises except for industrial use or after redenaturation.
</P>
<P>(b) <I>Spirits or articles retaining some denaturants.</I> If recovered denatured spirits or recovered articles are to be redenatured and do not require the full amount of denaturants for redenaturation, the proprietor must make an entry to that effect in the record of denaturation required by § 19.606(b).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5242)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.394" NODE="27:1.0.1.1.15.15.208.14" TYPE="SECTION">
<HEAD>§ 19.394   Inventory of denatured spirits.</HEAD>
<P>A proprietor must take a physical inventory of all denatured spirits in the processing account at the close of each calendar quarter. The proprietor must record the results of that inventory as provided in subpart V of this part. TTB may require additional inventories at any time.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.395" NODE="27:1.0.1.1.15.15.208.15" TYPE="SECTION">
<HEAD>§ 19.395   Manufacture of articles.</HEAD>
<P>A proprietor must manufacture, label, mark and dispose of articles in accordance with part 20 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5273)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.396" NODE="27:1.0.1.1.15.15.208.16" TYPE="SECTION">
<HEAD>§ 19.396   Required records.</HEAD>
<P>(a) <I>Records of denaturing operations.</I> A proprietor who denatures spirits must maintain daily records of denaturing operations in accordance with § 19.606.
</P>
<P>(b) <I>Records of manufacture of articles.</I> A proprietor who manufactures articles must maintain daily records in accordance with § 19.607.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5241)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="P" NODE="27:1.0.1.1.15.16" TYPE="SUBPART">
<HEAD>Subpart P—Transfers, Receipts, and Withdrawals</HEAD>


<DIV8 N="§ 19.401" NODE="27:1.0.1.1.15.16.209.1" TYPE="SECTION">
<HEAD>§ 19.401   Authorized transactions.</HEAD>
<P>(a) <I>General.</I> A proprietor of a distilled spirits plant may transfer spirits and wines in bond to other distilled spirits plants, receive spirits and wines in bond from other distilled spirits plants, receive spirits from customs custody, and withdraw spirits from the distilled spirits plant without payment of tax or free of tax under certain conditions. This subpart sets forth the rules that a proprietor must follow when so transferring, receiving, or withdrawing spirits and wines and also includes related rules for taking samples and securing conveyances.
</P>
<P>(b) <I>Other transfers and withdrawals.</I> For withdrawals of spirits from bonded premises on determination or payment of tax, see subpart I of this part. For rules regarding withdrawals for exportation and transfers to foreign trade zones or to customs bonded warehouses, see part 28 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5212, 5213, 5214, 5232, 5362, 5373)


</SECAUTH>
</DIV8>


<DIV7 N="209" NODE="27:1.0.1.1.15.16.209" TYPE="SUBJGRP">
<HEAD>Transfers Between Bonded Premises</HEAD>


<DIV8 N="§ 19.402" NODE="27:1.0.1.1.15.16.209.2" TYPE="SECTION">
<HEAD>§ 19.402   Authorized transfers in bond.</HEAD>
<P>The IRC allows a proprietor to transfer and receive spirits, wines, and industrial alcohol as provided in paragraphs (a) through (c) of this section.
</P>
<P>(a) <I>Spirits.</I> Bulk spirits or denatured spirits may be transferred in bond between the bonded premises of plants qualified under 26 U.S.C. 5171 or 26 U.S.C. 5181 in accordance with §§ 19.403 and 19.733. However, spirits or denatured spirits produced from petroleum, natural gas, or coal may not be transferred to alcohol fuel plants.
</P>
<P>(b) <I>Wine.</I> Wines may be transferred:
</P>
<P>(1) From a bonded wine cellar to the bonded premises of a distilled spirits plant;
</P>
<P>(2) From the bonded premises of a distilled spirits plant to a bonded wine cellar; and
</P>
<P>(3) Between the bonded premises of distilled spirits plants.
</P>
<P>(c) <I>Alcohol for industrial purposes.</I> Alcohol bottled for industrial purposes in accordance with § 19.366 and subpart S of this part, may be transferred between the bonded premises of distilled spirits plants in the same manner as provided in §§ 19.403 through 19.407 for bulk distilled spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5212, 5362)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.403" NODE="27:1.0.1.1.15.16.209.3" TYPE="SECTION">
<HEAD>§ 19.403   Application to receive spirits in bond.</HEAD>
<P>(a) When the proprietor of a distilled spirits plant qualified under 26 U.S.C. 5171 or of an alcohol fuel plant qualified under 26 U.S.C. 5181 wishes to have spirits or denatured spirits transferred in bond to their plant from another distilled spirits plant, the proprietor must complete an application on form TTB F 5100.16, Application for Transfer of Spirits and/or Denatured Spirits in Bond, in triplicate, and forward it to the appropriate TTB officer for approval. A proprietor is not required to submit an application on TTB F 5100.16 for transfers from customs custody under 26 U.S.C. 5232.
</P>
<P>(b) Except to the extent the proprietor is not required to provide a bond under § 19.151(d), TTB will not approve the application submitted under paragraph (a) of this section unless the proprietor's operations bond or unit bond either is in the maximum penal sum amount or is sufficient to cover the tax on the spirits or denatured spirits to be transferred in addition to all other liabilities chargeable against the bond. If TTB approves the application, TTB will return two signed copies of the approved application to the proprietor.
</P>
<P>(c) Upon receipt of an approved application from TTB, the proprietor must retain one of the signed copies for their files and forward the other signed copy to the consignor that will ship the spirits or denatured spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5005, 5112)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1123, Jan. 4, 2017; T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.404" NODE="27:1.0.1.1.15.16.209.4" TYPE="SECTION">
<HEAD>§ 19.404   Termination of application.</HEAD>
<P>A proprietor may at any time terminate an approved application on form TTB F 5100.16 by retrieving the consignor's copy and returning it together with their own approved copy to the appropriate TTB officer for cancellation.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5005)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 19.405" NODE="27:1.0.1.1.15.16.209.5" TYPE="SECTION">
<HEAD>§ 19.405   Consignor for in-bond shipments.</HEAD>
<P>(a) <I>General.</I> A proprietor who ships spirits, denatured spirits, or wines by transfer in bond is the “consignor” of the shipment for purposes of this part. The following rules apply to these transfers:
</P>
<P>(1) A consignor who is a proprietor of a distilled spirits plant must prepare a transfer record in accordance with § 19.620 to cover the transfer in bond of—
</P>
<P>(i) Spirits or denatured spirits to another distilled spirits plant pursuant to an approved application on form TTB F 5100.16, Application for Transfer of Spirits and/or Denatured Spirits in Bond;
</P>
<P>(ii) Wine to the bonded premises of a distilled spirits plant or a bonded wine cellar; or
</P>
<P>(iii) Spirits or denatured spirits to an alcohol fuel plant pursuant to an approved application on TTB F 5100.16, Application for Transfer of Spirits and/or Denatured Spirits in Bond; and
</P>
<P>(2) A consignor who is a proprietor of an alcohol fuel plant must prepare a transfer record in accordance with § 19.620 to cover the transfer in bond of spirits to the bonded premises of a distilled spirits plant pursuant to an approved application on TTB F 5100.16.
</P>
<P>(b) <I>Disposition of the transfer record.</I> On completion of lading or transfer by pipeline, the consignor must retain one copy of the transfer record and one copy of any accompanying document and must forward the original transfer record and any accompanying document to the consignee. If the shipment is made by truck, the original transfer record and accompanying documents must accompany the shipment.
</P>
<P>(c) <I>Multiple shipments.</I> As a general rule, a consignor must prepare a transfer record for each conveyance. However, a consignor may prepare a single transfer record that covers all packages of spirits shipped by truck on the same day to the same plant. In such a case, the consignor must prepare a shipment and delivery order for each shipment showing the number of packages, their serial numbers or other package identification, the name of the producer, warehouseman, or processor, and the serial numbers of any seals or other security devices applied to the truck. The shipping and delivery order must be properly authenticated by the consignor and must constitute a complete record of the spirits transferred in each truck each day. The consignor must retain a copy of each shipping and delivery order. After lading the last truck for the day, the consignor must retain one copy of the single transfer record and one copy of any accompanying document and forward the original single transfer record and accompanying document to the consignee.
</P>
<P>(d) <I>Packages.</I> When a consignor transfers spirits in packages, the consignor must weigh each package except in the following circumstances:
</P>
<P>(1) When transferring the spirits in a secured conveyance;
</P>
<P>(2) When the consignor has securely sealed the individual packages; or
</P>
<P>(3) When the appropriate TTB officer waives this requirement upon a finding that there will be no jeopardy to the revenue.
</P>
<P>(e) <I>Temporary serial numbers.</I> When packages are weighed at the time of shipment, the consignor must assign temporary serial numbers to the packages and show for each package its gross shipment weight on a package gauge record prepared in accordance with § 19.619. A copy of the package gauge record must accompany each original or copy of the transfer record.
</P>
<P>(f) <I>Bulk conveyances and pipelines.</I> When a consignor transfers spirits, denatured spirits, or wines in bulk conveyances or by pipelines, the consignor must gauge the spirits, denatured spirits, or wines and record the quantity determined on the transfer record required under § 19.620 or § 24.309 of this chapter. The consignor must secure bulk conveyances of spirits or denatured spirits pursuant to § 19.441 of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5212, 5362)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.406" NODE="27:1.0.1.1.15.16.209.6" TYPE="SECTION">
<HEAD>§ 19.406   Reconsignment of in-bond shipments.</HEAD>
<P>A consignor may reconsign an in-bond shipment of spirits, denatured spirits, or wines prior to, or upon, arrival of the shipment at the premises of the consignee for any good faith reason. The consignor may reconsign the shipment to himself or to another consignee who is qualified to receive the shipment and has an adequate bond. In either case, an Application for Transfer of Spirits and/or Denatured Spirits in Bond on form TTB F 5100.16 must have been previously approved for the new consignee, except that an approved TTB F 5100.16 is not required for the transfer of wine. The bond of the new consignee will cover the shipment while in transit after reconsignment. When a consignor reconsigns a shipment, the consignor must prepare a new transfer record prominently marked with the word “Reconsignment”. The consignor must also notify the original consignee that the transfer has been cancelled.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5212, 5362)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.407" NODE="27:1.0.1.1.15.16.209.7" TYPE="SECTION">
<HEAD>§ 19.407   Consignee premises.</HEAD>
<P>(a) <I>General.</I> A proprietor who receives spirits, denatured spirits, or wines by transfer in bond is the “consignee” of the shipment for purposes of this part. Upon arrival of an in-bond shipment at the consignee's premises or at the destination point specified in the carrier's transportation documents, the consignee must:
</P>
<P>(1) Examine each conveyance to determine whether the securing devices, if any, are intact upon arrival. If the securing devices are not intact, the consignee must immediately notify the appropriate TTB officer before removal of any spirits from the conveyance;
</P>
<P>(2) Determine, record, and report any losses as required by subpart R of this part;
</P>
<P>(3) Acknowledge receipt of the shipment on the transfer record as required by § 19.621 or § 24.309 of this chapter and retain the original of the transfer record and any accompanying documents for their files. Retained copies of transfer records will become deposit records for purposes of this part; and
</P>
<P>(4) Identify separately any spirits that were produced at an alcohol fuel plant. Those spirits may not be withdrawn, used, sold or otherwise disposed of for other than fuel use.
</P>
<P>(b) <I>Packages.</I> When a consignee receives spirits in packages, the consignee must weigh each package. The consignee must record the receiving weight of each package on the accompanying package gauge record or on a list according to temporary package serial numbers prepared by the consignor. A copy of the package gauge record or list must remain with the original transfer record. However, the consignee is not required to weigh each package when:
</P>
<P>(1) The transfer is made in a secured conveyance and the securing devices are intact on arrival;
</P>
<P>(2) The individual packages were sealed by the consignor and are intact on arrival; or
</P>
<P>(3) The requirement for weighing the packages at the consignor's premises has been waived under § 19.405(d)(3).
</P>
<P>(c) <I>Bulk conveyances and pipelines.</I> When a consignee receives spirits, denatured spirits, or wines by bulk conveyance or by pipeline, the consignee must:
</P>
<P>(1) Make a gauge and record the results on the transfer record in accordance with § 19.621 or § 24.309 of this chapter. However, the appropriate TTB officer may waive the gauging requirement for receipts by pipeline upon a finding that there will be no jeopardy to the revenue; and
</P>
<P>(2) Ensure that each conveyance is empty and has been thoroughly drained.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204, 5213, 5362)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="210" NODE="27:1.0.1.1.15.16.210" TYPE="SUBJGRP">
<HEAD>Receipt of Spirits from Customs Custody</HEAD>


<DIV8 N="§ 19.409" NODE="27:1.0.1.1.15.16.210.8" TYPE="SECTION">
<HEAD>§ 19.409   General.</HEAD>
<P>A proprietor may withdraw from customs custody spirits imported or brought into the United States in bulk containers for transfer of those spirits without payment of tax to the bonded premises of the proprietor's distilled spirits plant. The proprietor may receive these spirits either in bulk containers or by pipeline. Spirits received on bonded premises under this section may be:
</P>
<P>(a) Withdrawn for any purpose authorized by chapter 51 of the IRC in the same manner as domestic spirits; or
</P>
<P>(b) Redistilled or denatured only at 185° or more of proof. For the requirements regarding transfers of bulk spirits from customs custody to the bonded premises of a distilled spirits plant, see subpart L of part 27 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5232)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.410" NODE="27:1.0.1.1.15.16.210.9" TYPE="SECTION">
<HEAD>§ 19.410   Age and fill date.</HEAD>
<P>For purposes of this part, the age and fill date for spirits imported or brought into the United States will be:
</P>
<P>(a) The claimed age, as shown on the documentation required under part 5 of this chapter; and
</P>
<P>(b) The date that packages of spirits are released from customs custody or are filled on the bonded premises of a distilled spirits plant.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.411" NODE="27:1.0.1.1.15.16.210.10" TYPE="SECTION">
<HEAD>§ 19.411   Recording gauge.</HEAD>
<P>(a) <I>Receipts into storage.</I> When a proprietor receives into the storage account packages of spirits from customs custody, the proprietor must use the last official gauge to compute and record the average content of the packages received in the storage records required under § 19.590. That gauge also will constitute the basis for entries on the package summary records required under § 19.591. If the last official gauge indicates a substantial variation in the contents of the packages, the proprietor must group the packages into lots according to their approximate contents and assign a separate lot identification to each group of packages, based on the date the packages were received on bonded premises.
</P>
<P>(b) <I>Receipts into processing.</I> When a proprietor receives into the processing account packages of spirits from customs custody the proprietor must determine the proof gallons of spirits received in each package. The determination may be made by using the last official gauge.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5232)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.412" NODE="27:1.0.1.1.15.16.210.11" TYPE="SECTION">
<HEAD>§ 19.412   Importation of denatured spirits.</HEAD>
<P>For provisions relating to the importation of denatured spirits, see § 27.222 of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59455, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="211" NODE="27:1.0.1.1.15.16.211" TYPE="SUBJGRP">
<HEAD>Marking Requirements for Imported Spirits</HEAD>


<DIV8 N="§ 19.414" NODE="27:1.0.1.1.15.16.211.12" TYPE="SECTION">
<HEAD>§ 19.414   Marks on containers of imported spirits.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (c) of this section, when a proprietor receives imported bulk containers of spirits on bonded premises under § 19.409 or fills packages from imported bulk containers on the proprietor's bonded premises, each container or filled package must be marked with:
</P>
<P>(1) The name of the importer;
</P>
<P>(2) The country of origin of the spirits;
</P>
<P>(3) The kind of spirits;
</P>
<P>(4) In the case of filled packages, the package identification number as required under § 19.485 or the package serial number as required under § 19.490. Package identification numbers and package serial numbers must be preceded by the symbol “IMP”;
</P>
<P>(5) If the package is filled on bonded premises, the date of fill;
</P>
<P>(6) The proof; and
</P>
<P>(7) The proof gallons of spirits in the package.
</P>
<P>(b) <I>Responsibility for marks.</I> Except as otherwise provided in paragraph (c) of this section, the proprietor who receives packages of imported spirits under § 19.409 is responsible for ensuring that the required marks are placed on the packages and for preparing the required deposit records.
</P>
<P>(c) <I>Exception.</I> A proprietor is not required to place or ensure the placement of prescribed marks on packages when the spirits will be removed from the packages within 30 days after receipt at the distilled spirits plant. However, the proprietor must still assign package identification numbers or package serial numbers for use on deposit records and other transaction forms, records, or reports.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.415" NODE="27:1.0.1.1.15.16.211.13" TYPE="SECTION">
<HEAD>§ 19.415   Marks on containers of Puerto Rican and Virgin Islands spirits.</HEAD>
<P>(a) <I>Packages from Puerto Rico.</I> When a proprietor receives packages of Puerto Rican spirits on bonded premises under the provisions of this subpart, the markings required under § 26.40 of this chapter will be acceptable in place of the markings required under § 19.414. However, the proprietor still must mark each package to show the date of fill as required under § 19.410, and must include on each package the words “Puerto Rican” or the abbreviation “P.R.”.
</P>
<P>(b) <I>Packages from the Virgin Islands.</I> When a proprietor receives packages of Virgin Islands spirits on bonded premises under the provisions of this subpart, the markings required under § 26.206 of this chapter will be acceptable in place of the markings required under § 19.414. However, the proprietor still must mark each package to show the date of fill as required under § 19.410, and must include on each package the words “Virgin Islands” or the abbreviation “V.I.”.
</P>
<P>(c) <I>Portable bulk containers.</I> Portable bulk containers of Puerto Rican or Virgin Islands spirits that are filled on bonded premises must be marked in accordance with § 19.484. In addition, those containers must be marked with the serial number of any approved formula under which they were produced and with the words “Puerto Rican” or the abbreviation “P.R.” or “Virgin Islands” or the “V.I.”, as applicable.
</P>
<P>(d) <I>Cases of bottled alcohol.</I> Alcohol from Puerto Rico or the Virgin Islands that is bottled and cased on bonded premises must be marked as required by § 19.496. In addition, the words “Puerto Rican” or “Virgin Islands” or the abbreviation “P.R.” or “V.I.”, respectively, must precede the word “alcohol” designation on the cases.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206, 5235)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1123, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="212" NODE="27:1.0.1.1.15.16.212" TYPE="SUBJGRP">
<HEAD>Spirits Withdrawn Without Payment of Tax</HEAD>


<DIV8 N="§ 19.418" NODE="27:1.0.1.1.15.16.212.14" TYPE="SECTION">
<HEAD>§ 19.418   Authorized withdrawals without payment of tax.</HEAD>
<P>(a) A proprietor may withdraw spirits from bonded premises without payment of tax for:
</P>
<P>(1) Export, as authorized under 26 U.S.C. 5214(a)(4);
</P>
<P>(2) Transfer to customs manufacturing bonded warehouses, as authorized under 19 U.S.C. 1311;
</P>
<P>(3) Transfer to foreign trade zones, as authorized under 19 U.S.C. 81c;
</P>
<P>(4) Supplies for certain vessels and aircraft, as authorized under 19 U.S.C. 1309;
</P>
<P>(5) Transfer to customs bonded warehouses, as authorized under 26 U.S.C. 5066 or 5214(a)(9);
</P>
<P>(6) Use in wine production, as authorized under 26 U.S.C. 5373;
</P>
<P>(7) Transfer to any university, college of learning, or institution of scientific research for experimental or research use as authorized under 26 U.S.C. 5312(a);
</P>
<P>(8) Research, development or testing, as authorized under 26 U.S.C. 5214(a)(10); or,
</P>
<P>(9) Use on bonded wine cellar premises in the production of wine and wine products which will be rendered unfit for beverage use, as authorized under 26 U.S.C. 5362(d).
</P>
<P>(b) If a proprietor withdraws spirits for any of the purposes listed under paragraphs (a)(1) through (a)(5) of this section, the proprietor must do so in accordance with the provisions of part 28 of this chapter.
</P>
<SECAUTH TYPE="N">(19 U.S.C. 1311);
</SECAUTH>
<SECAUTH TYPE="N">(26 U.S.C. 5066, 5214, 5312, 5373)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.419" NODE="27:1.0.1.1.15.16.212.15" TYPE="SECTION">
<HEAD>§ 19.419   Withdrawals of spirits for use in wine production.</HEAD>
<P>A proprietor may withdraw wine spirits without payment of tax for transfer in bond to a bonded wine cellar for use in wine production. The proprietor, as consignor, must prepare a transfer record in accordance with § 19.620. In addition, the proprietor must prepare a package gauge record in accordance with § 19.619 and must attach it to the transfer record, unless the wine spirits are already in packages and are being withdrawn on the production or filling gauge.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5214, 5373)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.420" NODE="27:1.0.1.1.15.16.212.16" TYPE="SECTION">
<HEAD>§ 19.420   Withdrawals of spirits without payment of tax for experimental or research use.</HEAD>
<P>A scientific university, college of learning, or institution of scientific research qualified under § 19.35 may withdraw spirits from bonded premises without payment of tax for experimental or research use. In order to withdraw a specific quantity of spirits for experimental or research use, the qualified institution must file a letterhead application with, and receive written approval from, the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5312)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.421" NODE="27:1.0.1.1.15.16.212.17" TYPE="SECTION">
<HEAD>§ 19.421   Withdrawals of spirits for use in production of nonbeverage wine and nonbeverage wine products.</HEAD>
<P>A proprietor may withdraw spirits without payment of tax for transfer to a bonded wine cellar for use in the production of nonbeverage wine and nonbeverage wine products in accordance with part 24 of this chapter. The proprietor, as consignor, must prepare a transfer record in accordance with § 19.620. In addition, the proprietor must prepare a package gauge record in accordance with § 19.619 and must attach it to the transfer record, unless the wine spirits are already in packages and are being withdrawn on the production or filling gauge.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5214)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="213" NODE="27:1.0.1.1.15.16.213" TYPE="SUBJGRP">
<HEAD>Spirits Withdrawn Free of Tax</HEAD>


<DIV8 N="§ 19.424" NODE="27:1.0.1.1.15.16.213.18" TYPE="SECTION">
<HEAD>§ 19.424   Authorized withdrawals free of tax.</HEAD>
<P>A proprietor may withdraw spirits from bonded premises free of tax as provided in this chapter:
</P>
<P>(a) Upon receipt of a signed photocopy of a permit to withdraw and use alcohol free of tax issued on form TTB F 5150.9 under part 22 of this chapter;
</P>
<P>(b) Upon receipt of a signed photocopy of a permit to procure spirits free of tax for use of the United States or any governmental agency, any State, any political division of a State, or the District of Columbia for nonbeverage purposes as provided in 26 U.S.C. 5214(a)(2) issued on form TTB F 5150.33 under part 22 of this chapter;
</P>
<P>(c) Upon receipt of a valid permit issued under this part to procure spirits by and for the use of the United States under the provisions of 26 U.S.C. 7510 for purposes other than those specified in paragraph (b) of this section;
</P>
<P>(d) If the spirits are specially denatured—
</P>
<P>(1) Upon receipt of a signed photocopy of a permit to procure specially denatured spirits issued on TTB F 5150.9 under part 20 of this chapter; or
</P>
<P>(2) For export;
</P>
<P>(e) If the spirits are completely denatured, for any lawful purpose; or
</P>
<P>(f) If the spirits are contained in an article.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5214, 7510)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.425" NODE="27:1.0.1.1.15.16.213.19" TYPE="SECTION">
<HEAD>§ 19.425   Withdrawal of spirits free of tax.</HEAD>
<P>When a proprietor ships tax-free spirits to a permit holder as provided under § 19.424, the proprietor must:
</P>
<P>(a) Ship the spirits to the consignee designated in the permit;
</P>
<P>(b) Ship the spirits in approved containers;
</P>
<P>(c) Gauge each container, unless the spirits are in cases or are withdrawn based on the production or filling gauge;
</P>
<P>(d) Prepare a package gauge record in accordance with § 19.619, and attach it to the record of shipment if the spirits are in packages that are to be gauged;
</P>
<P>(e) Prepare a record of shipment (shipping invoice, bill of lading, or other document serving the same purpose) for each shipment and forward the original to the consignee as provided in § 19.625; and
</P>
<P>(f) Secure all bulk conveyances as provided in § 19.441.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5214)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.426" NODE="27:1.0.1.1.15.16.213.20" TYPE="SECTION">
<HEAD>§ 19.426   Withdrawal of spirits by the United States.</HEAD>
<P>(a) <I>Withdrawal for nonbeverage use</I>—(1) <I>Permit required.</I> Agencies of the United States Government that wish to obtain either specially denatured spirits or spirits free of tax for nonbeverage purposes must apply for and receive a permit on form TTB F 5150.33 or must have a previously issued permit on ATF Form 1444. TTB issues permits to Government agencies for:
</P>
<P>(i) Withdrawal and use of specially denatured spirits under part 20 of this chapter;
</P>
<P>(ii) Withdrawal and use of alcohol free of tax for nonbeverage purposes under part 22 of this chapter; and
</P>
<P>(iii) Importation and use of alcohol free of tax for nonbeverage purposes under part 27 of this chapter.
</P>
<P>(2) <I>Orders and shipments.</I> In order to obtain spirits under this section, the United States Government agency must forward a copy of a signed permit to the distilled spirits plant for the initial purchase. Later orders with the same plant may refer to that permit number. In the case of a Government agency holding a single permit for use by its subagencies, the copy of the signed permit must contain an attachment listing all subagencies authorized to obtain spirits under that permit. For each shipment that a proprietor makes to a Government agency under this section, the proprietor must prepare a record of shipment and forward the original to the Government agency as provided in § 19.625.
</P>
<P>(b) <I>Withdrawal for beverage use.</I> Agencies of the United States Government that wish to obtain distilled spirits free of tax for beverage purposes under 26 U.S.C. 7510 must provide a proper purchase order signed by the head of the agency or an authorized designee. Each case of spirits withdrawn must bear a plain mark “For Use of the United States” in addition to the marks required by subpart S of this part. For each withdrawal under this paragraph, the proprietor must prepare a record containing the information required by § 19.611 for a record of tax determination and must mark this record “Free of Tax for Use of the United States.”
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7510); 
</SECAUTH>
<SECAUTH TYPE="N">(26 U.S.C. 5271, 5313)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.427" NODE="27:1.0.1.1.15.16.213.21" TYPE="SECTION">
<HEAD>§ 19.427   Removal of denatured spirits and articles.</HEAD>
<P>(a) <I>Specially denatured spirits.</I> (1) Specially denatured spirits withdrawn by a proprietor free of tax under § 19.424(d) must be shipped in the type of containers authorized under subpart S to the consignee designated on the permit. Bulk conveyances used to transport specially denatured spirits must be secured as required by § 19.441, and the proprietor must prepare a record of shipment in accordance with § 19.625. If a proprietor withdraws specially denatured spirits for export or for transfer to a foreign trade zone for export or for storage pending export, the provisions of part 28 of this chapter will apply to the withdrawal.
</P>
<P>(2) A proprietor may transfer specially denatured spirits to qualified users located in a foreign trade zone for use in the manufacture of articles under part 20 of this chapter.
</P>
<P>(b) <I>Completely denatured alcohol.</I> No permit, application, or notice is required for the removal of completely denatured alcohol from bonded premises.
</P>
<P>(c) <I>Samples of denatured spirits.</I> (1) A proprietor may take samples of denatured spirits free of tax that are necessary for the conduct of business. A proprietor may furnish samples of specially denatured spirits:
</P>
<P>(i) To dealers in, and users of, specially denatured spirits in advance of sales; or
</P>
<P>(ii) To applicants or prospective applicants for permits to use specially denatured spirits for experimental purposes or for use in preparing samples of a finished product for submission to TTB.
</P>
<P>(2) A proprietor must maintain records to ensure that samples of specially denatured spirits furnished to each nonpermittee do not exceed 5 gallons per calendar year. However, a proprietor may furnish samples in excess of 5 gallons to a nonpermittee if the consignee has provided the proprietor with a letterhead application approved under § 20.252 of this chapter. The proprietor must retain the approved letterhead application on file as a part of the record of transaction. For each shipment of a sample over the 5 gallon limit, the proprietor must prepare a record of shipment and forward the original to the consignee as provided in § 19.625. Each such sample must bear a label showing the word “Sample”, the words “Specially Denatured Alcohol” or “Specially Denatured Rum” as applicable, the formula number, and the proprietor's name, address, and plant number. The proprietor must maintain records of samples of less than 5 gallons as provided in § 19.616.
</P>
<P>(d) <I>Articles.</I> A proprietor may remove articles from bonded premises in accordance with part 20 of this chapter.
</P>
<SECAUTH TYPE="N">(19 U.S.C. 81c); 
</SECAUTH>
<SECAUTH TYPE="N">(26 U.S.C. 5214, 5271)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-140, 81 FR 59455, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 19.428" NODE="27:1.0.1.1.15.16.213.22" TYPE="SECTION">
<HEAD>§ 19.428   Reconsignment.</HEAD>
<P>(a) A consignor may reconsign a shipment of spirits or specially denatured spirits withdrawn free of tax under § 19.424. The shipment may be reconsigned while in transit or upon arrival at the consignee's premises for any bona fide reason. The consignor may reconsign the shipment:
</P>
<P>(1) To himself;
</P>
<P>(2) To a proprietor for return to bonded premises under § 19.454; or
</P>
<P>(3) To another consignee holding a valid permit issued under part 20 or 22 of this chapter.
</P>
<P>(b) In the case of reconsignment to a proprietor for return to bonded premises under § 19.454, the distilled spirits plant proprietor who will return the spirits to bond must file a consent of surety on form TTB F 5000.18 to extend the terms of the operations or unit bond to cover the return of the spirits.
</P>
<P>(c) When a consignor reconsigns a shipment, the consignor must cancel the initial record of shipment and prepare a new record of shipment marked “Reconsignment”. The consignor must annotate the copies of the canceled record of shipment and the new record of shipment to cross-reference each other.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="214" NODE="27:1.0.1.1.15.16.214" TYPE="SUBJGRP">
<HEAD>Spirits Withdrawn on Production Gauge</HEAD>


<DIV8 N="§ 19.431" NODE="27:1.0.1.1.15.16.214.23" TYPE="SECTION">
<HEAD>§ 19.431   Withdrawal of spirits on production gauge.</HEAD>
<P>A proprietor may withdraw spirits from bonded premises for any lawful purpose based on the production gauge when it is made in accordance with § 19.289(b). Spirits may be withdrawn without payment of tax for export based on the production gauge when it is made under § 19.289(c). When spirits that are to be withdrawn on determination of tax on the original gauge are transferred in bond, all copies of the transfer record required by § 19.620 must be marked “Withdrawal on Original Gauge”.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="215" NODE="27:1.0.1.1.15.16.215" TYPE="SUBJGRP">
<HEAD>Rules for Taking Samples of Spirits</HEAD>


<DIV8 N="§ 19.434" NODE="27:1.0.1.1.15.16.215.24" TYPE="SECTION">
<HEAD>§ 19.434   Spirits withdrawn from bonded premises.</HEAD>
<P>(a) <I>Laboratory samples.</I> A proprietor may withdraw spirits without payment of tax, or may withdraw wine spirits or brandy free of tax, to the proprietor's laboratory, to the laboratory of an affiliated or subsidiary corporation, or, if approved by the appropriate TTB officer, to a recognized commercial laboratory. The samples must be used only for testing or analysis to determine the quality or character of the finished product and must be withdrawn in the minimum amounts necessary for the purpose.
</P>
<P>(b) <I>Customer samples.</I> If a bona fide purchase agreement exists that is contingent upon quality approval, a proprietor may furnish to a prospective customer a sample of spirits not exceeding 1 liter for quality testing. A proprietor may furnish a sample not to exceed 1 liter to a prospective customer for quality testing in anticipation of a purchase agreement if the customer is authorized to receive bulk spirits for industrial use.
</P>
<P>(c) <I>Research or development.</I> A proprietor may withdraw spirits without payment of tax for research or development testing, for testing of processes, systems, or materials, or for the testing of equipment relating to distilled spirits or distilled spirits plant operations. The amount withdrawn must be limited to the amount reasonably necessary to conduct the test. If the test is to be conducted by someone other than the proprietor, the proprietor must obtain a written statement, executed by the consignee, agreeing to maintain records of the receipt, use, and disposition of all spirits received for purposes of the test. The statement must specify that records of operations will be available during regular business hours for inspection by TTB officers.
</P>
<P>(d) <I>Conditions.</I> The following conditions apply to the withdrawal and testing of samples under this section:
</P>
<P>(1) The spirits may not be used for consumer testing or other market analysis;
</P>
<P>(2) The proprietor must maintain the records specified in § 19.616; and
</P>
<P>(3) Remnants or residues of spirits not used during testing must be destroyed or returned to the bonded premises of the proprietor.
</P>
<P>(e) <I>Liability for tax.</I> The proprietor must pay the tax on any samples of spirits withdrawn, used, or disposed of in a manner not authorized by this section.
</P>
<P>(f) <I>Losses.</I> When spirits are lost before use for a purpose authorized under this section, the proprietor must pay the tax or must file a claim for remission of tax liability in accordance with § 19.263.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5214, 5173)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.435" NODE="27:1.0.1.1.15.16.215.25" TYPE="SECTION">
<HEAD>§ 19.435   Samples used on bonded premises.</HEAD>
<P>A proprietor may take samples of spirits for research, development, testing, or laboratory analysis conducted in a laboratory located on the bonded premises. The purposes, conditions, and limitations specified for samples under § 19.434 will also apply to samples used under this section.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.436" NODE="27:1.0.1.1.15.16.215.26" TYPE="SECTION">
<HEAD>§ 19.436   Taxpayment of samples.</HEAD>
<P>When a proprietor is required to pay tax on samples under § 19.434(f), the proprietor may include the tax on the next semimonthly or quarterly tax return, as appropriate, if qualified to defer payment of tax. If a proprietor is not qualified to defer payment of tax, the proprietor must prepay the tax on form TTB F 5000.24. See subpart I of this part for rules regarding the payment of taxes.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5005, 5061)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.437" NODE="27:1.0.1.1.15.16.215.27" TYPE="SECTION">
<HEAD>§ 19.437   Labels.</HEAD>
<P>(a) On each container of spirits withdrawn under § 19.434, the proprietor must affix a label showing the following information:
</P>
<P>(1) The proprietor's name and plant number;
</P>
<P>(2) The date withdrawn;
</P>
<P>(3) The purpose for which withdrawn;
</P>
<P>(4) The kind of spirits;
</P>
<P>(5) The size and the proof of the sample, if known; and
</P>
<P>(6) The name and address of the consignee, if the spirits are removed other than to the proprietor's adjacent or contiguous premises.
</P>
<P>(b) The labeling prescribed under paragraph (a) of this section is not required when the sample container bears a label approved under part 5 of this chapter and subpart S of this part and the sample is removed from bonded premises to the general premises of the same distilled spirits plant or to any laboratory owned and operated by the proprietor of that distilled spirits plant.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206, 5214, 5373)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="216" NODE="27:1.0.1.1.15.16.216" TYPE="SUBJGRP">
<HEAD>Securing Conveyances</HEAD>


<DIV8 N="§ 19.441" NODE="27:1.0.1.1.15.16.216.28" TYPE="SECTION">
<HEAD>§ 19.441   Securing of conveyances.</HEAD>
<P>(a) <I>Construction for securing.</I> When the securing of a conveyance is required by this part, the conveyance must be constructed so that all openings, including valves, may be closed and secured.
</P>
<P>(b) <I>Approval of securing devices.</I> Seals, locks or other devices on conveyances used to transport taxpaid spirits, denatured spirits transferred in bond, or denatured spirits withdrawn free of tax do not require approval by TTB. On the other hand, all seals, locks, or devices used on conveyances in which spirits are transferred in bond, withdrawn free of tax, or withdrawn without payment of tax, require approval by the appropriate TTB officer before use. However, cap seals at least three-fourths of an inch in diameter, ball-strap-type (railroad) seals with a strap at least five-sixteenths of an inch wide, and locking security cable with at least a 
<FR>1/16</FR>-inch cable may be used on conveyances without approval by TTB. Such seals must:
</P>
<P>(1) Be made of durable materials;
</P>
<P>(2) Bear the plant registration number or the name, or readily recognizable abbreviation of the name, of the proprietor;
</P>
<P>(3) Bear a serial number, including letter prefixes or suffixes, which will not be repeated within the following 6-month period;
</P>
<P>(4) Be durably and legibly marked; and
</P>
<P>(5) Be constructed to show evidence of tampering.
</P>
<P>(c) <I>Furnishing and affixing securing devices.</I> The proprietor must furnish and affix any seals, locks or other devices used on conveyances. However, TTB may require any conveyance in which spirits are transferred in bond, withdrawn free of tax, or withdrawn without payment of tax, to be secured by a device furnished by TTB and affixed by a TTB officer. The securing of a conveyance will be done:
</P>
<P>(1) As soon as the conveyance is loaded for shipment; and
</P>
<P>(2) In such a manner that access to the contents of the conveyance cannot be gained without leaving evidence of tampering.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206, 5682)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="Q" NODE="27:1.0.1.1.15.17" TYPE="SUBPART">
<HEAD>Subpart Q—Return of Spirits to Bonded Premises and Voluntary Destruction</HEAD>


<DIV8 N="§ 19.451" NODE="27:1.0.1.1.15.17.217.1" TYPE="SECTION">
<HEAD>§ 19.451   Scope.</HEAD>
<P>The IRC allows a proprietor of a distilled spirits plant to return distilled spirits, denatured spirits, and articles to the bonded premises of that plant under certain conditions. This subpart covers the types of returns allowed, sets forth the procedures that the proprietor must follow when returning these products to bonded premises, and prescribes rules for voluntary destruction on or off bonded premises.


</P>
</DIV8>


<DIV7 N="217" NODE="27:1.0.1.1.15.17.217" TYPE="SUBJGRP">
<HEAD>Conditions for Return of Spirits to Bond</HEAD>


<DIV8 N="§ 19.452" NODE="27:1.0.1.1.15.17.217.2" TYPE="SECTION">
<HEAD>§ 19.452   Return of taxpaid spirits to bonded premises for destruction, denaturation, redistillation, reconditioning, or rebottling.</HEAD>
<P>(a) <I>Allowable returns.</I> A proprietor may return spirits to bonded premises if the spirits were taxpaid or tax determined by the proprietor, by another distilled spirits plant proprietor, or by an importer upon importation through U.S. Customs and Border Protection. However, consistent with section 5215(a) of the IRC the proprietor may return such spirits to bond only for one of the following reasons:
</P>
<P>(1) Destruction, in accordance with § 19.459;
</P>
<P>(2) Denaturation, in accordance with subpart O of this part;
</P>
<P>(3) Redistillation, in accordance with subpart L of this part;
</P>
<P>(4) Reconditioning; or
</P>
<P>(5) Rebottling.
</P>
<P>(b) <I>Dump and gauge of returned spirits.</I> The proprietor must immediately dump spirits returned to bonded premises under this section unless the spirits are returned in the sealed metal drums in which they were withdrawn. The proprietor must gauge spirits returned under this section upon their receipt. The proprietor may gauge spirits in bottles based upon the case markings and label information in accordance with § 19.286.
</P>
<P>(c) <I>Claims for credit or refund of tax.</I> A proprietor may file a claim under § 19.264 for credit or refund of tax on spirits returned to bonded premises under this section. In addition to the information specified in § 19.264, a proprietor filing a claim for credit or refund of tax must have on file at the plant where spirits are returned to bond the following documentation for each lot of spirits returned:
</P>
<P>(1) Documentation that establishes the amount of tax for which the claim for credit or refund is filed. If the spirits contain eligible wine or eligible flavors, the proprietor must have on file a copy of the record of tax determination as prescribed by § 19.611, or other documentation that establishes the rate of tax that was paid on the product. In lieu of establishing the actual effective tax rate of the product, the proprietor may claim a credit or refund based on the lowest effective tax rate applied to the product; and
</P>
<P>(2) Credit memoranda or comparable financial records evidencing the return of each lot of spirits.
</P>
<P>(d) <I>Applicability of Chapter 51 of the IRC.</I> All provisions of chapter 51 of the IRC and of this part that apply to spirits under TTB bond also apply to spirits when returned to bond under this section.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5010, 5201, 5207, 5215)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.453" NODE="27:1.0.1.1.15.17.217.3" TYPE="SECTION">
<HEAD>§ 19.453   Return of bottled spirits for relabeling or reclosing.</HEAD>
<P>A proprietor may return bottled distilled spirits to their bonded premises for relabeling or reclosing. When bottled spirits are returned for relabeling or reclosing, the proprietor may not claim credit or refund of tax on the returned spirits, and no tax will be due on their subsequent removal. The proprietor must relabel or reclose the bottles immediately and must promptly remove the spirits from bonded premises. The provisions of § 19.363 apply to relabeling and reclosing performed under this section.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5215)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 19.454" NODE="27:1.0.1.1.15.17.217.4" TYPE="SECTION">
<HEAD>§ 19.454   Other authorized returns to bonded premises.</HEAD>
<P>In addition to the returns to bonded premises specified in §§ 19.452 and 19.453, there are other permissible returns of distilled spirits products to a proprietor's bonded premises. These other products, the purposes for which they may be returned, and the conditions for their return are listed in the table below. All of these products must be gauged upon receipt.
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Type of product
</TH><TH class="gpotbl_colhed" scope="col">Purpose of return
</TH><TH class="gpotbl_colhed" scope="col">Conditions
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell">(1) For redistillation</TD><TD align="left" class="gpotbl_cell">To any DSP authorized to produce or process.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(a) Denatured spirits withdrawn free of tax under part 20 of this chapter</TD><TD align="left" class="gpotbl_cell">(2) For subsequent lawful withdrawal</TD><TD align="left" class="gpotbl_cell">To any DSP. The DSP proprietor must file a consent of surety, form TTB F 5000.18, to extend the terms of the operations or unit bond to cover the return of spirits.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(b) Recovered denatured spirits</TD><TD align="left" class="gpotbl_cell">(1) For restoration or redenaturation</TD><TD align="left" class="gpotbl_cell">(i) To any DSP authorized to denature.
<br/>(ii) If SDA needs to be redistilled, the DSP must be authorized to produce or process spirits.
<br/>(iii) Returns must be in accordance with part 20 of this chapter.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(c) Recovered articles</TD><TD align="left" class="gpotbl_cell">(1) For restoration or redenaturation</TD><TD align="left" class="gpotbl_cell">(i) To any DSP authorized to denature.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"></TD><TD align="left" class="gpotbl_cell">(ii) If recovered articles need to be redistilled, the DSP must be authorized to produce or process spirits.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"></TD><TD align="left" class="gpotbl_cell">(iii) Returns must be in accordance with part 20 of this chapter.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(d) Articles manufactured under part 20 of this chapter and spirits residues from manufacturing processes</TD><TD align="left" class="gpotbl_cell">(1) For recovery by redistillation</TD><TD align="left" class="gpotbl_cell">To a DSP authorized to produce or process spirits.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell">(1) For redistillation</TD><TD align="left" class="gpotbl_cell">To any DSP authorized to produce or process.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(e) Specially denatured spirits withdrawn free of tax for export under part 28 of this chapter</TD><TD align="left" class="gpotbl_cell">(2) For subsequent lawful withdrawal</TD><TD align="left" class="gpotbl_cell">To any DSP. The DSP proprietor must file a consent of surety, TTB F 5000.18, to extend the terms of the operations or unit bond to cover the return of spirits.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(f) Tax-free spirits withdrawn under part 22 of this chapter</TD><TD align="left" class="gpotbl_cell">(1) For redistillation</TD><TD align="left" class="gpotbl_cell">(i) To any DSP authorized to produce or process.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell">(2) For subsequent lawful withdrawal</TD><TD align="left" class="gpotbl_cell">(ii) To any DSP. The DSP proprietor must file a consent of surety, TTB F 5000.18, to extend the terms of the operations or unit bond to cover the return of spirits.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell">(1) For redistillation</TD><TD align="left" class="gpotbl_cell">(i) To any DSP authorized to produce or process.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(g) Recovered tax-free spirits withdrawn under part 22 of this chapter</TD><TD align="left" class="gpotbl_cell">(2) For restoration (not including redistillation)</TD><TD align="left" class="gpotbl_cell">(ii) To any DSP. The DSP proprietor must file a consent of surety, TTB F 5000.18, to extend the terms of the operations or unit bond to cover the return of spirits.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(h) Spirits withdrawn without payment of tax under part 28 of this chapter for export, for transfer to a customs bonded storage, manipulation, or manufacturing warehouse, for deposit in an FTZ, or for use on vessels or aircraft, and not so exported, transferred, deposited, or used</TD><TD align="left" class="gpotbl_cell">(1) For redistillation</TD><TD align="left" class="gpotbl_cell">(i) For (1)—To any to DSP authorized to produce or process spirits.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell">(2) For later lawful removal</TD><TD align="left" class="gpotbl_cell">(ii) For (2)—To the bonded premises from which withdrawn for later lawful removal.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"></TD><TD align="left" class="gpotbl_cell">(iii) For (1) and (2)—Returns must be made in accordance with the provisions of part 28 of this chapter.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(i) Wine spirits withdrawn without payment of tax for use in wine production</TD><TD align="left" class="gpotbl_cell">(1) Any lawful purpose</TD><TD align="left" class="gpotbl_cell">(i) To any DSP.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"></TD><TD align="left" class="gpotbl_cell">(ii) The proprietor must obtain approval as provided in § 19.403.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"></TD><TD align="left" class="gpotbl_cell">(iii) Removal of wine spirits from a winery must be in accordance with part 24 of this chapter.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(j) Spirits withdrawn without payment of tax for research, development, or testing</TD><TD align="left" class="gpotbl_cell">(1) For destruction, or return to containers, or return to the distilling system</TD><TD align="left" class="gpotbl_cell">(i) To the DSP from which the spirits were withdrawn.</TD></TR></TABLE></DIV></DIV>
<SECAUTH TYPE="N">(19 U.S.C. 81(c), 26 U.S.C. 5001, 5062, 5066, 5214, 5215, 5223, 5273, 5373)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-92a, 76 FR 19908, Apr. 11, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 19.455" NODE="27:1.0.1.1.15.17.217.5" TYPE="SECTION">
<HEAD>§ 19.455   Return of spirits withdrawn for export with benefit of drawback.</HEAD>
<P>(a) Subject to the provisions of §§ 28.197 through 28.199 of this chapter, whole or partial shipments of spirits withdrawn for export with benefit of drawback may be returned to:
</P>
<P>(1) The bonded premises of the distilled spirits plant, pursuant to § 19.452; or
</P>
<P>(2) To a wholesale liquor dealer or taxpaid storeroom.
</P>
<P>(b) Claims for export drawback filed by proprietors on form TTB F 5110.30 which include the returned spirits shall be reduced by the amount of tax paid or determined on the returned spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5215)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.457" NODE="27:1.0.1.1.15.17.217.6" TYPE="SECTION">
<HEAD>§ 19.457   Receipt of spirits abandoned to the United States.</HEAD>
<P>Spirits abandoned to the United States may be sold, without payment of the tax, to a proprietor of a distilled spirits plant for denaturation or for redistillation and denaturation, provided that the plant is authorized to denature or redistill and denature spirits. The proprietor must gauge the spirits upon receipt and must keep the spirits apart from all other spirits or denatured spirits until denatured.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5243)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="218" NODE="27:1.0.1.1.15.17.218" TYPE="SUBJGRP">
<HEAD>Rules for Voluntary Destruction</HEAD>


<DIV8 N="§ 19.459" NODE="27:1.0.1.1.15.17.218.7" TYPE="SECTION">
<HEAD>§ 19.459   Voluntary destruction.</HEAD>
<P>(a) <I>General.</I> A proprietor may voluntarily destroy spirits, denatured spirits, articles, or wines on bonded premises as provided in this section. There is no tax liability on spirits, denatured spirits, articles, or wines destroyed in accordance with this section.
</P>
<P>(b) <I>Wine notice.</I> A proprietor may destroy wine held on bonded premises only after the proprietor has filed a notice of intent to destroy with the appropriate TTB officer stating the kind and quantity of wine to be destroyed and the date and manner in which the wine is to be destroyed. The wine may be destroyed after the filing of the notice.
</P>
<P>(c) <I>Gauging.</I> A proprietor must gauge all spirits, denatured spirits, articles, or wines to be destroyed. The proprietor may establish the gauge of spirits in bottles on the basis of legible case markings and label information in accordance with § 19.286. The proprietor must individually count bottles in partial cases.
</P>
<P>(d) <I>Destruction off bonded premises.</I> If a proprietor intends to remove spirits, denatured spirits, articles, or wines from bonded premises in order to destroy them at a location off bonded premises, the proprietor must file a consent of surety to cover the removal. When the destruction takes place off plant premises, the proprietor must comply with applicable Federal, State, and local environmental laws and regulations.
</P>
<P>(e) <I>Record of destruction.</I> The proprietor must record the destruction of spirits, denatured spirits, articles, or wines as provided in § 19.617.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5370)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="R" NODE="27:1.0.1.1.15.18" TYPE="SUBPART">
<HEAD>Subpart R—Losses and Shortages</HEAD>


<DIV8 N="§ 19.461" NODE="27:1.0.1.1.15.18.219.1" TYPE="SECTION">
<HEAD>§ 19.461   Losses and shortages in general.</HEAD>
<P>(a) <I>Allowable losses and shortages.</I> Except as otherwise provided in paragraph (b) of this section, TTB will not collect tax on spirits, denatured spirits, or wines that are lost, destroyed, or otherwise unaccounted for while in bond, and if the tax has already been paid, TTB will refund the tax.
</P>
<P>(b) <I>Exceptions.</I> TTB will collect the tax in the case of:
</P>
<P>(1) Theft, unless the appropriate TTB officer finds that the theft occurred without connivance, collusion, fraud or negligence on the part of the proprietor, owner, consignor, consignee, bailee, or carrier, or any employee or agent of any of them;
</P>
<P>(2) Voluntary destruction carried out other than as provided in subpart Q of this part;
</P>
<P>(3) An unexplained shortage of bottled spirits.
</P>
<P>(c) <I>Burden of proof.</I> When it appears that a theft occurred, the burden of proof will be on the proprietor or other person liable for the tax to establish to the satisfaction of the appropriate TTB officer that the theft did not result from connivance, collusion, fraud, or negligence on the part of the proprietor, owner, consignor, consignee, bailee, or carrier, or any employee or agent of any of them.
</P>
<P>(d) <I>Claims.</I> Claims for losses and shortages allowable under this section must be filed in accordance with the provisions of subpart J of this part.
</P>
<P>(e) <I>Limitations.</I> TTB will abate, remit, credit, or refund taxes on spirits, denatured spirits, or wines lost by theft only to the extent that the claimant is not indemnified against, or recompensed for, the taxes paid or owed.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5370)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.462" NODE="27:1.0.1.1.15.18.219.2" TYPE="SECTION">
<HEAD>§ 19.462   Determination of losses in bond.</HEAD>
<P>(a) <I>Times for determining losses.</I> A proprietor must determine at any of the following times whether a loss of spirits, denatured spirits, or wines has occurred:
</P>
<P>(1) Each time a tank or bulk conveyance is emptied;
</P>
<P>(2) Upon discovery of an accident or an unusual variation in a gauge; and
</P>
<P>(3) When required to take a physical inventory.
</P>
<P>(b) <I>Losses from theft, tampering, or unauthorized voluntary destruction.</I> Whenever any spirits, denatured spirits, or wines are lost or destroyed in bond, whether by theft, tampering, or unauthorized voluntary destruction, the proprietor may elect voluntarily to pay the tax on the quantity lost. If the proprietor does not elect to pay the tax, the proprietor must promptly report the loss or destruction to the appropriate TTB officer. TTB may require that the proprietor file any claim for relief from the tax in accordance with § 19.263.
</P>
<P>(c) <I>Missing packages.</I> When a proprietor cannot locate or otherwise account for any packages of spirits, denatured spirits, or wine recorded as deposited on bonded premises, the proprietor must promptly report that fact to the appropriate TTB officer. In such case the proprietor must either pay the tax on the lost spirits, denatured spirits, or wines or file a claim for relief from the tax in accordance with § 19.263.
</P>
<P>(d) <I>Excessive in-transit losses.</I> A proprietor must promptly report excessive in-transit losses to the appropriate TTB officer. As a general rule, when spirits, denatured spirits, or wines are received in bond in bulk conveyances TTB will consider as excessive a loss that exceeds 1 percent of the quantity consigned. However, in the case of transcontinental transfers of wine in bond, TTB will consider as excessive only a loss in excess of 2 percent of the quantity of wine consigned.
</P>
<P>(e) <I>Excessive storage losses.</I> A proprietor must pay the tax on excessive storage account losses of spirits unless the proprietor files a claim for remission in accordance with § 19.263 and TTB allows the claim under § 19.268. TTB will consider a storage account loss as excessive when the quantity of spirits lost during a calendar quarter from all storage tanks and stored bulk conveyances exceeds 1.5 percent of the total quantity contained in the tanks and stored bulk conveyances during the calendar quarter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008, 5370)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.463" NODE="27:1.0.1.1.15.18.219.3" TYPE="SECTION">
<HEAD>§ 19.463   Loss of spirits from packages.</HEAD>
<P>(a) <I>Tampering or theft.</I> The appropriate TTB officer may require that a proprietor pay the tax on any loss caused by tampering or theft of spirits from packages in storage unless the proprietor establishes to the satisfaction of the appropriate TTB officer that the loss was not due to connivance, collusion, fraud or negligence on the part of the proprietor. As a general rule, the tax will be assessed on the quantity of spirits that represents the difference between the quantity originally entered in the package and the quantity remaining after discovery of the tampering or theft. However, if the proprietor can show that the package had already sustained normal storage losses before the tampering or theft occurred, the proprietor may exclude the amount of the normal storage losses from the quantity to be taxpaid.
</P>
<P>(b) <I>Alternative method of tax assessment.</I> If tampering or theft has occurred at a proprietor's plant and the proprietor has failed to use effective controls to prevent it, the appropriate TTB officer may use an alternative to the general method of tax assessment specified in paragraph (a) of this section. In this case, the appropriate TTB officer may assess on each package showing evidence of tampering or theft an amount equal to the tax on 5 proof gallons of spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5006)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.464" NODE="27:1.0.1.1.15.18.219.4" TYPE="SECTION">
<HEAD>§ 19.464   Losses after tax determination.</HEAD>
<P>If a proprietor sustains a loss of spirits after tax determination but prior to completion of physical removal of the spirits from bonded premises, the proprietor may file a claim in accordance with subpart J of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.465" NODE="27:1.0.1.1.15.18.219.5" TYPE="SECTION">
<HEAD>§ 19.465   Shortages of bottled spirits.</HEAD>
<P>(a) <I>Determination of shortage.</I> The determination of whether an unexplained shortage of bottled distilled spirits exists must be made by comparing the spirits recorded as being on hand to either the results of the physical inventory required by § 19.372 or the results of any other complete physical inventory taken by the proprietor. When the recorded quantity is greater than the quantity determined by physical inventory, the difference is an unexplained shortage. The proprietor must adjust its records to reflect the results of the physical inventory.
</P>
<P>(b) <I>Payment of tax on shortage.</I> A proprietor must pay the tax on any unexplained shortage of bottled distilled spirits:
</P>
<P>(1) Immediately on a prepayment return on form TTB F 5000.24, Excise Tax Return; or
</P>
<P>(2) On a deferred payment return on TTB F 5000.24 for the period during which the shortage was determined.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5008)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="S" NODE="27:1.0.1.1.15.19" TYPE="SUBPART">
<HEAD>Subpart S—Containers and Marks</HEAD>


<DIV8 N="§ 19.471" NODE="27:1.0.1.1.15.19.219.1" TYPE="SECTION">
<HEAD>§ 19.471   General.</HEAD>
<P>The proprietor of a distilled spirits plant must comply with the container and marking requirements that apply to both industrial and nonindustrial spirits. This subpart covers those requirements. For the requirements that apply to articles made with denatured spirits, see part 20 of this chapter. For the requirements that apply to wine, see part 24 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.472" NODE="27:1.0.1.1.15.19.219.2" TYPE="SECTION">
<HEAD>§ 19.472   Need to determine use of spirits—industrial or nonindustrial.</HEAD>
<P>Many of the container and marking requirements set forth in this subpart are based on the intended use of the spirits, that is, whether they are for “industrial” or “nonindustrial” use. For purposes of this subpart, the terms “industrial” use and “nonindustrial” use refer to the uses specified in paragraphs (a) and (b) of this section.
</P>
<P>(a) <I>Industrial use.</I> The word “industrial” when used with reference to the use of spirits has the same meaning as in §§ 1.60 and 1.62 of this chapter. Those uses are as follows:
</P>
<P>(1) Free of tax by, and for the use of, the United States or any governmental agency thereof, any State, any political subdivision of a State, or the District of Columbia, for nonbeverage purposes;
</P>
<P>(2) Free of tax for nonbeverage purposes and not for resale or use in the manufacture of any product for sale—
</P>
<P>(i) For the use of any educational organization described in 26 U.S.C. 170(b)(1)(A)(ii) which is exempt from income tax under 26 U.S.C. 501(a), or for the use of any scientific university or college of learning;
</P>
<P>(ii) For any laboratory for use exclusively in scientific research;
</P>
<P>(iii) For use at any hospital, blood bank, or sanitarium (including use in making analysis or test at such hospital, blood bank, or sanitarium), or at any pathological laboratory exclusively engaged in making analyses, or tests, for hospitals or sanitariums; or
</P>
<P>(iv) For the use of any clinic operated for charity and not for profit (including use in compounding of bona fide medicines for treatment outside of such clinics of patients thereof);
</P>
<P>(3) Free of tax, after denaturation of such spirits in the manner prescribed by law for—
</P>
<P>(i) Use in the manufacture of ether, chloroform, or other definite chemical substance where such distilled spirits are changed into some other chemical substance and do not appear in the finished product; or
</P>
<P>(ii) Any other use in the arts and industries (except for uses prohibited by 26 U.S.C. 5273 (b) or (d)) and for fuel, light, and power; and
</P>
<P>(4) The use of distilled spirits for experimental purposes and in the manufacture of—
</P>
<P>(i) Medicinal, pharmaceutical, or antiseptic products, including prescriptions compounded by retail druggists;
</P>
<P>(ii) Toilet preparations;
</P>
<P>(iii) Flavoring extracts, syrups, or food products; or
</P>
<P>(iv) Scientific, chemical, mechanical, or industrial products, provided such products are unfit for beverage use.
</P>
<P>(b) <I>Nonindustrial use.</I> The word “nonindustrial” when used with reference to the use of spirits refers to any use not listed as an “industrial” use in paragraph (a) of this section. Nonindustrial uses include the following:
</P>
<P>(1) For beverage purposes;
</P>
<P>(2) In the manufacture, rectification, or blending of alcoholic beverages; or in the preparation of food or drink by a hotel, restaurant, tavern, or similar establishment; or as a medicine; and
</P>
<P>(3) Distilled spirits in containers with a capacity of 1 wine gallon or less, other than anhydrous alcohol and alcohol that may be withdrawn from bond free of tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206, 5301)


</SECAUTH>
</DIV8>


<DIV7 N="219" NODE="27:1.0.1.1.15.19.219" TYPE="SUBJGRP">
<HEAD>Requirements for Containers</HEAD>


<DIV8 N="§ 19.473" NODE="27:1.0.1.1.15.19.219.3" TYPE="SECTION">
<HEAD>§ 19.473   Authorized containers.</HEAD>
<P>(a) <I>General.</I> A proprietor may only use containers that are authorized under this part for containing, storing, transferring, conveying, removing, or withdrawing spirits or denatured spirits.
</P>
<P>(b) <I>Approval of other containers.</I> The appropriate TTB officer may approve the use of another type of container for a particular purpose in place of a type of container specifically authorized in this part for that purpose if the use of that container:
</P>
<P>(1) Will provide protection to the revenue equal to or greater than that provided by the authorized container; and
</P>
<P>(2) Will not hinder the effective administration of this part.
</P>
<P>(c) <I>Approval of other container materials.</I> The appropriate TTB officer may approve the use of a container made of a material other than one prescribed in this subpart if the prescribed material is unsuitable for the intended purpose. If the appropriate TTB officer approves another material for a container, the approval may also specify how the container must be constructed, protected, marked, and used.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5002, 5206, 5212, 5213, 5214, 5301.)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.474" NODE="27:1.0.1.1.15.19.219.4" TYPE="SECTION">
<HEAD>§ 19.474   Spirits for nonindustrial use.</HEAD>
<P>(a) <I>Containers.</I> A proprietor may fill spirits for nonindustrial use into packages or into other containers that are filled during processing operations, if consistent with the provisions of part 5 of this chapter.
</P>
<P>(b) <I>Bottles and labels.</I> The provisions of subpart T of this part and part 5 of this chapter govern the liquor bottles and labels that a proprietor must use in bottling spirits for nonindustrial domestic use.
</P>
<P>(c) <I>Cases.</I> If spirits for nonindustrial use are in containers with a capacity of one gallon or less the proprietor must place the containers in cases constructed to afford reasonable protection against breakage.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206, 5212, 5301)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.475" NODE="27:1.0.1.1.15.19.219.5" TYPE="SECTION">
<HEAD>§ 19.475   Spirits for industrial use.</HEAD>
<P>(a) <I>Containers.</I> A proprietor may fill denatured spirits or other spirits for industrial use into suitable containers. The proprietor must ensure that all containers for spirits that will be used in food products comply with applicable U.S. Food and Drug Administration health and safety laws and regulations.
</P>
<P>(b) <I>Encased containers.</I> A proprietor may encase unlabeled containers of denatured spirits and other spirits for industrial use in wood, fiberboard or similar material if:
</P>
<P>(1) The cases are constructed so that the surface, including the opening of the container, is not exposed;
</P>
<P>(2) Required marks are applied to an exterior surface of the case;
</P>
<P>(3) The case is constructed so that the portion containing marks will remain attached to the inner container until all the contents have been removed; and
</P>
<P>(4) A statement reading, “Do not remove inner container until emptied” or a statement of similar meaning appears on the portion of the case bearing the marks.
</P>
<P>(c) <I>Cases.</I> With the exception of encased containers covered in paragraph (b) of this section, if the containers for denatured spirits and spirits for industrial use have a capacity of not more than 1 gallon, the proprietor must place the containers in cases that provide reasonable protection against breakage.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206, 5301)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.476" NODE="27:1.0.1.1.15.19.219.6" TYPE="SECTION">
<HEAD>§ 19.476   Packages.</HEAD>
<P>A proprietor may use packages on bonded premises for original entry of spirits, and for packaging from tanks, storing, transferring in bond, and withdrawing spirits and denatured spirits from bonded premises. Packages must be constructed so as to be capable of secure closure.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.477" NODE="27:1.0.1.1.15.19.219.7" TYPE="SECTION">
<HEAD>§ 19.477   Use of bulk conveyances.</HEAD>
<P>If a bulk conveyance meets the construction requirements of § 19.478 or is approved under § 19.473(b), a proprietor may use the bulk conveyance on bonded premises for the original entry of spirits, and for filling from tanks, storing, transferring in bond, and withdrawing taxpaid spirits and denatured spirits. A proprietor may use such a bulk conveyance to withdraw spirits free of tax, in accordance with the provisions of this part, for use of the United States or to a specified consignee if so authorized by the appropriate TTB officer under § 19.473(b). A proprietor may also use such a bulk conveyance to withdraw spirits without payment of tax, in accordance with the provisions in this part, for any one of the following purposes:
</P>
<P>(a) Export, as authorized under 26 U.S.C. 5214(a)(4);
</P>
<P>(b) Transfer to customs manufacturing bonded warehouses, as authorized under 19 U.S.C. 1311;
</P>
<P>(c) Transfer to foreign trade zones, as authorized under 19 U.S.C. 81c;
</P>
<P>(d) Transfer to customs bonded warehouses, as authorized under 26 U.S.C. 5066 or 5214(a)(9); or
</P>
<P>(e) Use in wine production, as authorized under 26 U.S.C. 5373.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.478" NODE="27:1.0.1.1.15.19.219.8" TYPE="SECTION">
<HEAD>§ 19.478   Construction requirements for bulk conveyances.</HEAD>
<P>(a) <I>Construction.</I> The following standards apply to bulk conveyances authorized by this part:
</P>
<P>(1) If the conveyance consists of two or more compartments, each compartment must be constructed or arranged so that the emptying of any compartment does not provide access to the contents of any other compartment;
</P>
<P>(2) The conveyance (or in the case of compartmented conveyances, each compartment) must be arranged so that it can be completely drained;
</P>
<P>(3) Each tank car or tank truck must have permanently and legibly marked thereon its number, its capacity in wine gallons, and the name or symbol of its owner;
</P>
<P>(4) If the conveyance consists of two or more compartments, each compartment must be identified by a number and the capacity in wine gallons of each shall be marked thereon;
</P>
<P>(5) The conveyance must have a route board or other suitable device for carrying required marks or brands; and
</P>
<P>(6) Calibrated charts, showing the capacity of each compartment in wine gallons for each inch of depth, must be available for use in measuring the contents of each tank truck, tank ship, or barge.
</P>
<P>(b) <I>Proprietor's responsibility.</I> Before filling any bulk conveyance, a proprietor must examine it to verify that it meets the requirements of this section or of an approval under § 19.473(b) and that it is otherwise suitable for receiving the spirits or denatured spirits. A proprietor must refrain from using, or discontinue use of, any conveyance found by it or by the appropriate TTB officer not to meet the applicable requirements.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206, 5212, 5213, 5214)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.479" NODE="27:1.0.1.1.15.19.219.9" TYPE="SECTION">
<HEAD>§ 19.479   Restrictions on dispositions of bulk spirits.</HEAD>
<P>(a) <I>Bulk spirits for nonindustrial use.</I> A proprietor may sell or dispose of spirits for nonindustrial use in containers holding more than one wine gallon only to the persons and for the purposes specified in § 1.80 of this chapter.
</P>
<P>(b) <I>Bulk spirits for industrial use.</I> If a proprietor withdraws spirits (other than alcohol or neutral spirits) from bond in containers holding more than one wine gallon for industrial use, the proprietor must ship or deliver the spirits directly to the user of the spirits as provided in § 1.95 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="220" NODE="27:1.0.1.1.15.19.220" TYPE="SUBJGRP">
<HEAD>Marking Requirements for Spirits</HEAD>


<DIV8 N="§ 19.482" NODE="27:1.0.1.1.15.19.220.10" TYPE="SECTION">
<HEAD>§ 19.482   General.</HEAD>
<P>A proprietor must mark, identify, and label all containers of spirits or denatured spirits as provided in this part. For information regarding liquor bottle label requirements, see subpart T of this part and part 5 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5204, 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.483" NODE="27:1.0.1.1.15.19.220.11" TYPE="SECTION">
<HEAD>§ 19.483   Specifications for marks.</HEAD>
<P>(a) <I>Basic requirements.</I> A proprietor must place the marks prescribed by this subpart on cases, encased containers, and packages of spirits and denatured spirits so that they are:
</P>
<P>(1) Of adequate size to be easily read;
</P>
<P>(2) Of a color in distinct contrast to the color of the background;
</P>
<P>(3) Legible; and
</P>
<P>(4) Durably affixed.
</P>
<P>(b) <I>Use of labels.</I> A proprietor may use labels as the means for applying prescribed marks if the labels meet the requirements of paragraph (a) of this section.
</P>
<P>(c) <I>Location.</I> A proprietor must place the prescribed marks on one side of the case or encased container, or on the head of the package.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.484" NODE="27:1.0.1.1.15.19.220.12" TYPE="SECTION">
<HEAD>§ 19.484   Marks on packages filled in production or storage.</HEAD>
<P>(a) <I>Packages filled in production or storage.</I> Except as otherwise provided in this part, a proprietor must mark packages of spirits filled in production or storage with:
</P>
<P>(1) The name of the producer, or the producer's trade name, in accordance with paragraph (b) of this section;
</P>
<P>(2) The distilled spirits plant number of the producer, such as “DSP-KY-708”;
</P>
<P>(3) The kind of spirits or, in the case of distillates removed under § 19.307, the kind of distillate such as “Grape Distillate” or “Peach Distillate”;
</P>
<P>(4) The package identification number;
</P>
<P>(5) “BSA” or “OC” when spirits are treated with caramel (burnt sugar) or oak chips, as the case may be;
</P>
<P>(6) The rated capacity of the package in gallons shown as “RC-G”; and
</P>
<P>(7) The name or trade name and the plant number of the packaging proprietor in place of the name or trade name and plant number of the producer if packages of spirits of 190° or more of proof are filled by a proprietor other than the producer.
</P>
<P>(b) <I>Real or trade names.</I> The producer's or other proprietor's real name, or the authorized trade name used in accordance with § 19.94 at the time of production, may be placed on any package filled at the time of the production gauge, or at the time of the original packaging of the spirits in wood when, as provided in § 19.305, the spirits were not filled into wooden packages at the time of production gauge. When spirits have been mingled in accordance with § 19.326, the proprietor may use only a producer name associated with any portion of the mingled spirits on packages filled with such mingled spirits.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.485" NODE="27:1.0.1.1.15.19.220.13" TYPE="SECTION">
<HEAD>§ 19.485   Package identification numbers in production and storage.</HEAD>
<P>(a) <I>General.</I> A proprietor must mark with a lot identification number each package of spirits filled during production or storage operations. The lot identification number must show when the package was filled and must consist of, in order, the following:
</P>
<P>(1) The last two digits of the calendar year;
</P>
<P>(2) An alphabetical designation for the month from “A” through “L”, representing, in order, January through December;
</P>
<P>(3) Two digits corresponding to the day of the month; and
</P>
<P>(4) When more than one lot is filled into packages during the same day, for successive lots after the first lot, a letter suffix sequence starting with “A” representing the second lot, with “B” representing the third lot, and so forth. For example: the first three lots filled into packages on January 2, 2002, would be identified as “02A02”, “02A02A”, and “02A02B”.
</P>
<P>(b) <I>Packages constituting a lot.</I> Packages of spirits, including any remnant package, received from customs custody or filled during any one day will receive the same lot identification number, subject to the following conditions:
</P>
<P>(1) They are of the same type and either are of the same rated capacity or are uniformly filled with the same quantity by weight or other measurement method prescribed in § 19.289;
</P>
<P>(2) They are filled with spirits of the same kind and same proof;
</P>
<P>(3) If they are filled with mingled spirits, the mingling was conducted in accordance with § 19.326; and
</P>
<P>(4) In the case of spirits imported or brought into the United States, they are filled with imported spirits, Puerto Rican spirits or Virgin Island spirits, as applicable.
</P>
<P>(c) <I>Serial numbers.</I> At the time of filling, receipt on bonded premises, or withdrawal from bond, the appropriate TTB officer may require serial numbers on packages of spirits within the same lot in conjunction with the lot identification number. The proprietor must assign temporary serial numbers to packages for control purposes when they are transferred in bond in an unsecured conveyance or gauged after tampering within the storage account.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.486" NODE="27:1.0.1.1.15.19.220.14" TYPE="SECTION">
<HEAD>§ 19.486   Change of packages in storage.</HEAD>
<P>When a proprietor transfers spirits from one package to another as permitted in § 19.325, the proprietor must give the new package the same package identification number and marks as the original package. The proprietor must also prepare and sign a label to be affixed to the head of each new package. The label must be in the following form:
</P>
<EXTRACT>
<P>The spirits in this ____________ [kind of cooperage: barrel or drum], package identification No. ________, were transferred from a ____________ [kind of cooperage: barrel or drum], on ______________ [Date], ______________ [Proprietor]</P></EXTRACT>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.487" NODE="27:1.0.1.1.15.19.220.15" TYPE="SECTION">
<HEAD>§ 19.487   Kind of spirits.</HEAD>
<P>(a) <I>Designation.</I> The designations of kind of spirits required for packages filled on bonded premises must be consistent with the classes and types of spirits set forth in part 5 of this chapter subject to the following exceptions or conditions:
</P>
<P>(1) A proprietor may designate as “Alcohol” spirits distilled at more than 160 proof, which lack the taste, aroma, and other characteristics generally attributed to whisky, brandy, rum, or gin, and which are substantially neutral in character. When alcohol so designated is withdrawn on determination of tax, the designation must consist of the word “Alcohol” preceded or followed by a word or phrase that describes the material from which the alcohol was produced;
</P>
<P>(2) The designation for vodka, neutral spirits, or gin must include a word or phrase that describes the material from which the spirits were produced;
</P>
<P>(3) A proprietor may designate as “Spirits”, preceded or followed by a word or phrase that describes the material from which the spirits were produced, those distilled spirits that are distilled at less than 190 proof which lack the taste, aroma, and other characteristics generally attributed to whisky, brandy, rum, or gin. However, the proprietor may not designate such spirits as “Spirits grain” or “Grain spirits”;
</P>
<P>(4) A proprietor must designate spirits distilled from fruit at or above 190 proof, if intended for use in wine production, as “Neutral Spirits—Fruit”, preceded or followed by the name of the fruit from which the spirits were produced;
</P>
<P>(5) A proprietor may designate as “Whisky” spirits distilled at not more than 160 proof from a fermented mash of not less than 51 percent rye, corn, wheat, malted barley, or malted rye grain, packaged in reused cooperage, provided that the designation is further qualified with the words “Distilled from rye mash” (or bourbon, wheat, malt, or rye malt mash, as the case may be). However, spirits designated as “Whisky” must, if distilled from a fermented mash of not less than 80 percent corn, carry the designation “Corn Whisky.”
</P>
<P>(b) <I>Change of designation.</I> After written application to, and approval of, the appropriate TTB officer, a proprietor may at any time before their withdrawal from bonded premises, change the original designation for spirits to a new designation properly describing the spirits in accordance with the provisions of this section.
</P>
<P>(c) <I>Other designations.</I> If a proprietor proposes to produce spirits for which a designation has not been prescribed in this section or in part 5 of this chapter, the proprietor must first make written application to the appropriate TTB officer for a designation for such spirits, and the proprietor must then designate the spirits accordingly.
</P>
<P>(d) <I>Spirits for nonindustrial use.</I> A proprietor may not treat the provisions of this section as constituting authorization to apply designations to spirits withdrawn for nonindustrial use if those designations do not conform to the requirements of part 5 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.488" NODE="27:1.0.1.1.15.19.220.16" TYPE="SECTION">
<HEAD>§ 19.488   Marks on packages filled in processing.</HEAD>
<P>(a) <I>Packages filled in processing.</I> Except as otherwise provided in this part, a proprietor must mark packages of spirits filled in processing with:
</P>
<P>(1) The name of the processor, or the processor's trade name;
</P>
<P>(2) The distilled spirits plant number of the processor, such as “DSP-KY-708”;
</P>
<P>(3) The kind of spirits in accordance with § 19.487 or, in the case of an intermediate product, the product name shown on form TTB F 5110.38, Formula for Distilled Spirits Under the Federal Alcohol Administration Act;
</P>
<P>(4) The serial number or lot identification number, in accordance with § 19.490, and the date of filling;
</P>
<P>(5) The proof of the spirits; and
</P>
<P>(6) The serial number of the formula if it was manufactured under an approved formula.
</P>
<P>(b) <I>Real or trade names.</I> The proprietor's real name or any trade name used in accordance with § 19.94 may be placed on any package filled with spirits during processing operations.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.489" NODE="27:1.0.1.1.15.19.220.17" TYPE="SECTION">
<HEAD>§ 19.489   Marks on cases filled in processing.</HEAD>
<P>(a) <I>Mandatory marks.</I> Except for cases marked in accordance with § 19.496, a proprietor must mark in accordance with § 19.483 the following information on each case of spirits filled in processing:
</P>
<P>(1) Serial number in accordance with § 19.490;
</P>
<P>(2) Kind of spirits in accordance with the classes and types of spirits set forth in part 5 of this chapter;
</P>
<P>(3) The distilled spirits plant number where bottled;
</P>
<P>(4) Date filled;
</P>
<P>(5) Proof; and
</P>
<P>(6) Liters or proof gallons.
</P>
<P>(b) <I>Export marks.</I> In addition to the marks referred to in paragraph (a) of this section, the proprietor must include the marks required by part 28 of this chapter on cases removed for export, for transfer to any customs bonded warehouses, for transfer to foreign trade zones, or for use as supplies on certain vessels and aircraft.
</P>
<P>(c) <I>Other marks.</I> A proprietor may include other marks on cases filled in processing in addition to the marks prescribed under this section. Any additional marks must not interfere with, or detract from, the marks prescribed in this section. The proprietor may include other marks such as:
</P>
<P>(1) The name or trade name, and the location if desired, of the bottler, displayed with the word “Bottler”;
</P>
<P>(2) For products distilled or processed by the proprietor, the proprietor's name or trade name, and the location of the distilled spirits plant, if desired, displayed with the words “Distiller” or “Processor”, as applicable;
</P>
<P>(3) For products imported and bottled by the proprietor, the words “Imported and Bottled By”, followed by the proprietor's name or trade name and location of the distilled spirits plant if desired;
</P>
<P>(4) For products bottled for a dealer, the words “Bottled For”, followed by the name of that dealer;
</P>
<P>(5) Any material required by Federal or State law and regulations; and
</P>
<P>(6) Labels or data describing the contents for commercial identification or accounting purposes or indicating payment of State or local taxes.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5066, 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.490" NODE="27:1.0.1.1.15.19.220.18" TYPE="SECTION">
<HEAD>§ 19.490   Numbering of packages and cases filled in processing.</HEAD>
<P>(a) <I>Packages of spirits and denatured spirits filled during processing operations.</I> When a proprietor fills packages of spirits and denatured spirits during processing, the proprietor must identify the packages consecutively beginning with “1” and continuing the series until the number “1,000,000” is reached, except that any series of such numbers already in use may be continued to that limit. When the identification in any series reaches “1,000,000”, the proprietor may begin a new series with “1” but must add an alphabetical prefix or suffix to the new series number. For example, the first identifier in the second series of 1,000,000 packages filled might be “1A” or “A1”.
</P>
<P>(b) <I>Cases containing bottles or other containers of spirits and denatured spirits.</I> When a proprietor fills cases containing bottles or other containers of spirits and denatured spirits during processing, the proprietor must identify the cases consecutively beginning with “1” and continuing the series until the number “1,000,000” is reached, except that any series of such numbers already in use may be continued to that limit. When the identification in any series reaches “1,000,000”, the proprietor may begin a new series with “1”. This series of identifiers for cases containing bottles or other containers must be distinct from the series of serial numbers required for packages under paragraph (a) of this section.
</P>
<P>(c) <I>Additional identification.</I> A proprietor may establish separate series of identifiers, distinguished from each other by the use of alphabetical prefixes or suffixes, to identify the size of bottles, the brand names, or other information, on written notice to the appropriate TTB officer. The proprietor must identify remnant cases by placing the identifier of the last full case followed by the letter “R” on the remnant case. When there is a change in the name, or trade name of the proprietor, all series in use may be continued. However, if there is a change in proprietorship, a new series must be commenced.
</P>
<P>(d) <I>Alternative marking for spirits for industrial use.</I> A proprietor may mark packages and cases of spirits for industrial use, including denatured spirits, filled in processing with the lot identification numbers specified in § 19.485 instead of using the identifiers specified in paragraphs (a), (b) and (c) of this section.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.491" NODE="27:1.0.1.1.15.19.220.19" TYPE="SECTION">
<HEAD>§ 19.491   Marks on containers of specially denatured spirits.</HEAD>
<P>(a) <I>General.</I> A proprietor must mark or label each package, case, or encased container of specially denatured spirits filled on bonded premises to show:
</P>
<P>(1) The quantity in gallons;
</P>
<P>(2) The serial number or lot identification number;
</P>
<P>(3) The plant number of the proprietor;
</P>
<P>(4) The designation or abbreviation of the specially denatured spirits by kind (alcohol or rum);
</P>
<P>(5) The applicable formula number; and
</P>
<P>(6) The proof of the spirits, if they were denatured at other than 190 proof.
</P>
<P>(b) <I>Bottles.</I> A proprietor must mark or label each bottle to show the information prescribed in paragraphs (a)(1), (3), (4), (5), and (6) of this section.
</P>
<P>(c) <I>Alternate formulations.</I> When spirits are denatured under a formula authorizing a choice of types and quantities of denaturants, the proprietor must mark the container or case to show the actual types and quantities of denaturants used.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.492" NODE="27:1.0.1.1.15.19.220.20" TYPE="SECTION">
<HEAD>§ 19.492   Marks on containers of completely denatured alcohol.</HEAD>
<P>Except in the case of completely denatured alcohol transported by pipelines and bulk conveyances, a proprietor must mark each container of completely denatured alcohol on the head of the package or on the side of the can or carton with:
</P>
<P>(a) The name of the proprietor who filled the containers;
</P>
<P>(b) The plant number where the container was filled;
</P>
<P>(c) The container's contents in wine gallons;
</P>
<P>(d) The apparent proof;
</P>
<P>(e) The words “Completely Denatured Alcohol”; and
</P>
<P>(f) The applicable formula number.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.493" NODE="27:1.0.1.1.15.19.220.21" TYPE="SECTION">
<HEAD>§ 19.493   Caution label for completely denatured alcohol.</HEAD>
<P>A proprietor must place a label containing the words “Completely Denatured Alcohol” and the statement “Caution—contains poisonous ingredients” on each container of completely denatured alcohol containing five gallons or less that is sold or offered for sale. The label must be written in plain, legible letters. The proprietor may print the name and address of the denaturer on such label, but may not include any other nonessential matter on the label without approval from the appropriate TTB officer. The word “pure” may not appear on the label or the container.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.494" NODE="27:1.0.1.1.15.19.220.22" TYPE="SECTION">
<HEAD>§ 19.494   Additional marks on portable containers.</HEAD>
<P>(a) In addition to the other marks prescribed in this part, a proprietor must mark portable containers of spirits or denatured spirits (other than bottles enclosed in cases) that will be withdrawn from the bonded premises as follows:
</P>
<P>(1) Without payment of tax, for export, for transfer to customs manufacturing bonded warehouses, for transfer to foreign trade zones, or as supplies for certain vessels and aircraft, in accordance with the provisions in part 28 of this chapter; or
</P>
<P>(2) If tax-free, with the word “Tax-Free.”
</P>
<P>(b) A proprietor may show other optional information such as brand or trade name; a caution notice, or other information required by Federal, State, or local law or regulations; wine or proof gallons; and plant control data. However, any such mark must not conceal, obscure, interfere with, or conflict with the markings required by this subpart.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.495" NODE="27:1.0.1.1.15.19.220.23" TYPE="SECTION">
<HEAD>§ 19.495   Marks on bulk conveyances.</HEAD>
<P>(a) A proprietor must securely attach a label identifying each conveyance or compartment to the route board, or to another equivalent device, for each bulk conveyance used to transport spirits or denatured spirits setting forth the following information:
</P>
<P>(1) The name, plant number, and location of the consignor;
</P>
<P>(2) The name, distilled spirits plant number, permit number, or registry number (as applicable), and the location of the consignee;
</P>
<P>(3) The date of shipment;
</P>
<P>(4) The quantity (proof gallons for spirits, wine gallons for denatured spirits); and
</P>
<P>(5) The formula number for denatured spirits.
</P>
<P>(b) If the conveyance is accompanied by documentation containing the information specified in paragraph (a) of this section, the proprietor is not required to label each conveyance or compartment.
</P>
<P>(c) Export shipments must conform to the requirements of part 28 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.496" NODE="27:1.0.1.1.15.19.220.24" TYPE="SECTION">
<HEAD>§ 19.496   Cases of industrial alcohol.</HEAD>
<P>(a) <I>Mandatory marks.</I> A proprietor must mark each case and each encased container of alcohol bottled for industrial use under the provisions of subpart N of this part to show the following information:
</P>
<P>(1) The designation “Alcohol”;
</P>
<P>(2) The serial number or lot identification number;
</P>
<P>(3) The distilled spirits plant number of the proprietor;
</P>
<P>(4) The proof;
</P>
<P>(5) The proof gallons;
</P>
<P>(6) The designation “Tax-Free”; and
</P>
<P>(7) Any information required by part 28 of this chapter, for cases that are withdrawn for export, transferred to customs bonded warehouses, transferred to foreign trade zones, or are for use on vessels and aircraft.
</P>
<P>(b) <I>Other marks.</I> A proprietor may mark cases of industrial alcohol with other marks, provided that they do not interfere with, or detract from, mandatory case marks in the manner permitted under § 19.489.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206, 5235)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.497" NODE="27:1.0.1.1.15.19.220.25" TYPE="SECTION">
<HEAD>§ 19.497   Obliteration of marks.</HEAD>
<P>Except as otherwise provided in § 19.487(b), the marks required to be placed on any container or case under this part must not be destroyed or altered before the container or case is emptied.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.498" NODE="27:1.0.1.1.15.19.220.26" TYPE="SECTION">
<HEAD>§ 19.498   Relabeling and reclosing off bonded premises.</HEAD>
<P>The proprietor of a distilled spirits plant may relabel, affix brand labels, or reclose bottled taxpaid spirits on wholesale liquor dealer premises or at a taxpaid storeroom on, contiguous to, adjacent to, or in the immediate vicinity of the proprietor's distilled spirits plant, provided that the wholesale liquor dealer premises or taxpaid storeroom is operated in connection with the distilled spirits plant. If products relabeled under this section were originally bottled by another proprietor, the relabeling proprietor must have on file a statement from the original bottler consenting to the relabeling.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.499" NODE="27:1.0.1.1.15.19.220.27" TYPE="SECTION">
<HEAD>§ 19.499   Authorized abbreviations to identify marks.</HEAD>
<P>In addition to the other abbreviations and symbols authorized under this part for use in marking containers, a proprietor may use the following abbreviations to identify the following marks:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Mark
</TH><TH class="gpotbl_colhed" scope="col">Abbre-
<br/>viation
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Completely Denatured Alcohol</TD><TD align="left" class="gpotbl_cell">CDA
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Gallon or Wine Gallon</TD><TD align="left" class="gpotbl_cell">WG
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Gross Weight</TD><TD align="left" class="gpotbl_cell">G
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Proof</TD><TD align="left" class="gpotbl_cell">P
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Specially Denatured Alcohol</TD><TD align="left" class="gpotbl_cell">SDA
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Specially Denatured Rum</TD><TD align="left" class="gpotbl_cell">SDR
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Tare</TD><TD align="left" class="gpotbl_cell">T
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Tax Determined</TD><TD align="left" class="gpotbl_cell">TD
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Wine Spirits Addition</TD><TD align="left" class="gpotbl_cell">WSA</TD></TR></TABLE></DIV></DIV>
<SECAUTH TYPE="N">(26 U.S.C. 5206)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="T" NODE="27:1.0.1.1.15.20" TYPE="SUBPART">
<HEAD>Subpart T—Liquor Bottle, Label, and Closure Requirements</HEAD>


<DIV7 N="221" NODE="27:1.0.1.1.15.20.221" TYPE="SUBJGRP">
<HEAD>Authorized Liquor Bottles</HEAD>


<DIV8 N="§ 19.511" NODE="27:1.0.1.1.15.20.221.1" TYPE="SECTION">
<HEAD>§ 19.511   Bottles authorized.</HEAD>
<P>Each liquor bottle for nonindustrial distilled spirits for domestic use must conform to a bottle size specified in the standards of fill set forth in subpart K of part 5 of this chapter. This rule applies to liquor bottles intended for distribution in both interstate and intrastate commerce.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5301)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 19.512" NODE="27:1.0.1.1.15.20.221.2" TYPE="SECTION">
<HEAD>§ 19.512   Bottles not constituting approved containers.</HEAD>
<P>A proprietor may not use any liquor bottle that the appropriate TTB officer finds is misleading within the meaning of § 5.202 of this chapter. Misleading liquor bottles do not constitute approved containers for the purposes of this part, and a proprietor may not use them for packaging distilled spirits for domestic purposes.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5301)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 19.513" NODE="27:1.0.1.1.15.20.221.3" TYPE="SECTION">
<HEAD>§ 19.513   Distinctive liquor bottles.</HEAD>
<P>(a) <I>Application.</I> A proprietor must submit form TTB F 5100.31, Application for and Certification/Exemption of Label/Bottle Approval, to the appropriate TTB officer in order to obtain approval to use domestic liquor bottles of distinctive shapes or designs. The proprietor must certify as to the total capacity of a representative sample bottle before closure (expressed in milliliters) on each copy of the form. In addition, the proprietor must affix a readily legible photograph (showing both front and back of the bottle) to the front of each copy of TTB F 5100.31 along with the label(s) to be used on the bottle. The proprietor must submit to TTB an actual bottle or accurate model only when specifically requested to do so.
</P>
<P>(b) <I>Approval.</I> The appropriate TTB officer will approve a distinctive liquor bottle on a properly completed TTB F 5100.31 if the bottle is found to:
</P>
<P>(1) Meet the requirements of part 5 of this chapter;
</P>
<P>(2) Be distinctive;
</P>
<P>(3) Be suitable for its intended purpose;
</P>
<P>(4) Not jeopardize the revenue; and
</P>
<P>(5) Be not misleading to the consumer.
</P>
<P>(c) <I>Retention.</I> A proprietor must keep on file at their premises a copy of the complete approved TTB F 5100.31 for the distinctive liquor bottle.
</P>
<P>(d) <I>Cross reference.</I> For procedures regarding issuance, denial and revocation of distinctive liquor bottle approvals, as well as appeal procedures, see part 13 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5301)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]






</CITA>
</DIV8>

</DIV7>


<DIV7 N="222" NODE="27:1.0.1.1.15.20.222" TYPE="SUBJGRP">
<HEAD>Labeling Requirements</HEAD>


<DIV8 N="§ 19.516" NODE="27:1.0.1.1.15.20.222.4" TYPE="SECTION">
<HEAD>§ 19.516   Certificate of label approval or exemption.</HEAD>
<P>A proprietor must obtain a certificate of label approval or an exemption from label approval under part 5 of this chapter on form TTB F 5100.31 for any label that the proprietor will use on bottles of spirits for domestic use. Upon request by the appropriate TTB officer, the proprietor must provide evidence of label approval, or of exemption from label approval, for a label used on a bottle of spirits for domestic use. For procedures regarding the issuance, denial and revocation of certificates of label approval and certificates of exemption from label approval, as well as appeal procedures, see part 13 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.517" NODE="27:1.0.1.1.15.20.222.5" TYPE="SECTION">
<HEAD>§ 19.517   Statements required on labels under an exemption from label approval.</HEAD>
<P>If a proprietor bottles spirits for domestic use under a certificate of exemption from label approval on form TTB F 5100.31, the following information must appear on the label used on the bottle, in the manner indicated:
</P>
<P>(a) <I>Brand name.</I> The brand name on the label must conform to the requirements of § 5.64 of this chapter;
</P>
<P>(b) <I>Kind.</I> The class and type of the spirits identified on the label must conform to the requirements of subpart I of part 5 of this chapter;
</P>
<P>(c) <I>Alcohol content.</I> The alcohol content on the label must conform to the requirements of § 5.65 of this chapter;
</P>
<P>(d) <I>State of distillation.</I> In the case of whisky, the state of distillation statement on the label must conform to the requirements of § 5.66(f) of this chapter;
</P>
<P>(e) <I>Net contents.</I> The label must show the net contents, unless the statement of net contents is permanently marked on the side, front, or back of the bottle;
</P>
<P>(f) <I>Name and address of bottler.</I> The name and address of the bottler must conform to the requirements of § 19.518;
</P>
<P>(g) <I>Age of whisky containing no neutral spirits.</I> In the case of whisky containing no neutral spirits, statements of age and percentage by volume on the label must conform to the requirements of § 5.74 of this chapter;
</P>
<P>(h) <I>Age of whisky containing neutral spirits.</I> In the case of whisky containing neutral spirits, the label must state the age of the whisky or whiskies and the respective percentage by volume of whisky or whiskies and neutral spirits in accordance with § 5.74 of this chapter;
</P>
<P>(i) <I>Age of brandy.</I> In the case of brandy aged for a period of less than two years, the label must state the age.
</P>
<P>(j) <I>Presence of neutral spirits or coloring, flavoring, or blending material.</I> The label must indicate the presence of neutral spirits or coloring, flavoring, or blending material in accordance with §§ 5.71-5.73 of this chapter; and
</P>
<P>(k) <I>Country of origin.</I> Labels of imported spirits must state the country of origin in substantially the following form: “Product of ____________,” with the blank filled in with the name of the country of origin.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 19.518" NODE="27:1.0.1.1.15.20.222.6" TYPE="SECTION">
<HEAD>§ 19.518   Name and address of bottler.</HEAD>
<P>In setting forth the name and address of the bottler required by § 19.517(f), the label must contain the words “Bottled by”, “Packed by”, or “Filled by” followed immediately by the name (or trade name) of the bottler and the place where the bottling takes place. If the bottler is the proprietor of more than one distilled spirits plant engaged in bottling operations, the label may include the addresses of all such plants immediately following the name (or trade name) of the bottler. The following additional rules apply to name and address labeling under this section:
</P>
<P>(a) Where distilled spirits are bottled by or for the distiller of the spirits, the label may state, in lieu of the words “Bottled by”, “Packed by”, or “Filled by”, followed by the bottler's name (or trade name) and address or addresses, the words “Distilled by”, followed immediately by the name (or trade name) under which the particular spirits were distilled, or by any trade name shown on the distiller's permit covering the premises where the particular spirits were distilled, and the address (or addresses) of the distiller;
</P>
<P>(b) Where “straight whiskies” of the same type produced in the same State by two or more different distillers are combined (either at time of bottling or at a warehouseman's bonded premises for further storage) and are subsequently bottled and labeled as “straight whisky”, that “straight whisky” must be labeled as provided in the introductory paragraph of this section. However, where that combined “straight whisky” is bottled by or for the distillers of the whiskies, the label may contain, in lieu of the wording specified in that introductory paragraph, the words “Distilled by”, followed immediately by the name (or trade name) of each distiller that distilled a portion of the “straight whisky”, the address of each of the distilled spirits plants where a portion of the “straight whisky” was distilled, and the percentage of “straight whisky” distilled by each distiller (with a tolerance of plus or minus 2 percent). In addition, where “straight whisky” is made up of a mixture of “straight whiskies” of the same type distilled at two or more distilled spirits plants of the same proprietor located within the same State, and where that “straight whisky” is bottled by or for that proprietor, the label for the “straight whisky” may contain, in lieu of the wording specified in the introductory paragraph of this section, the words “Distilled by” followed by the name (or trade name) of the proprietor and the address of each of the distilled spirits plants that distilled a portion of the “straight whisky”;
</P>
<P>(c) Where distilled spirits are bottled by or for the proprietor of a distilled spirits plant, the label may state, in lieu of the words “Bottled by”, “Packed by”, or “Filled by” followed by the bottler's name (or trade name) and address, the words “Blended by”, “Made by”, “Prepared by”, “Manufactured by”, or “Produced by” (whichever is appropriate to the process involved), followed by the name (or trade name) and the address (or addresses) of the distilled spirits plant proprietor;
</P>
<P>(d) In the case of labels of distilled spirits bottled for a retailer or other person who is not the proprietor of the distilled spirits plant where the distilled spirits were distilled, the label may also state the name and address of that retailer or other person, preceded immediately by the words “Bottled for”, “Distributed by”, or other similar statement; and
</P>
<P>(e) The label may state the address of the proprietor's principal place of business in lieu of the place where the bottling, distilling or processing operation occurred, provided that the address where the bottling, distilling, or other operation occurred is indicated by printing, coding, or other markings, on the label or on the bottle. The coding system employed must permit TTB to determine where the operation stated on the label occurred. Prior to using such a label or bottle coding system, the proprietor must send a notice to the appropriate TTB officer explaining the coding system.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.519" NODE="27:1.0.1.1.15.20.222.7" TYPE="SECTION">
<HEAD>§ 19.519   Labels for export spirits.</HEAD>
<P>(a) <I>Required information.</I> If a proprietor bottles spirits for export, the bottles must have a securely affixed label showing:
</P>
<P>(1) The kind (class and type) of spirits;
</P>
<P>(2) The percentage of alcohol by volume (ABV) of the spirits;
</P>
<P>(3) The net contents, unless the markings on the bottle indicate such contents; and
</P>
<P>(4) The name (or trade name) of the bottler.
</P>
<P>(b) <I>Additional information.</I> The bottler may place additional information on the export label if it is not inconsistent with the information required under paragraph (a) of this section.
</P>
<P>(c) <I>Language.</I> The export label information may appear in the language of the country to which the spirits are to be exported provided that the proprietor maintains on file an English translation of that information. The export label may state the net contents and percentage of alcohol by volume in the units of measurement of the foreign country, provided that the proprietor maintains a record of the equivalent units as required for labels of spirits bottled for domestic consumption.
</P>
<P>(d) <I>Waiver.</I> The appropriate TTB officer may waive the requirement to show any information required by this section, other than the kind of spirits, upon a showing that the country to which the spirits are to be exported prohibits the showing of such information. In regard to kind (class and type) of spirits, the appropriate TTB officer may waive the designation required by § 5.63(a)(2) of this chapter, only to the extent that the label need not bear the word “diluted” for distilled spirits bottled below the minimum bottling proof, and provided that this is in accordance with the rules of the country to which the product is to be exported.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5301)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.520" NODE="27:1.0.1.1.15.20.222.8" TYPE="SECTION">
<HEAD>§ 19.520   Spirits for shipment to Puerto Rico.</HEAD>
<P>Spirits removed for shipment to Puerto Rico with benefit of drawback or without payment of tax in accordance with part 28 of this chapter are subject to the provisions of part 5 of this chapter in regard to labeling and standards of fill for bottles.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="223" NODE="27:1.0.1.1.15.20.223" TYPE="SUBJGRP">
<HEAD>Closure Requirements</HEAD>


<DIV8 N="§ 19.523" NODE="27:1.0.1.1.15.20.223.9" TYPE="SECTION">
<HEAD>§ 19.523   Affixing closures.</HEAD>
<P>Each bottle or other container of spirits having a capacity of one gallon (3.785 liters) or less must have a closure or other device securely affixed to the container prior to withdrawal from bond or customs custody. The closure or other device must be constructed in such a manner as to require breaking in order to gain access to the contents of the container.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5301)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.525" NODE="27:1.0.1.1.15.20.223.10" TYPE="SECTION">
<HEAD>§ 19.525   Reclosing.</HEAD>
<P>A proprietor may reclose bottles of distilled spirits filled on bonded premises as provided in subpart N of this part. A proprietor may also reclose bottles of distilled spirits to which closures or other devices have been affixed as provided in § 19.498.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5215)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="U" NODE="27:1.0.1.1.15.21" TYPE="SUBPART">
<HEAD>Subpart U [Reserved]</HEAD>

</DIV6>


<DIV6 N="V" NODE="27:1.0.1.1.15.22" TYPE="SUBPART">
<HEAD>Subpart V—Records and Reports</HEAD>


<DIV7 N="224" NODE="27:1.0.1.1.15.22.224" TYPE="SUBJGRP">
<HEAD>General Rules for Records</HEAD>


<DIV8 N="§ 19.571" NODE="27:1.0.1.1.15.22.224.1" TYPE="SECTION">
<HEAD>§ 19.571   Records in general.</HEAD>
<P>Each proprietor of a distilled spirits plant must maintain records that accurately reflect the operations and transactions occurring at the plant. This subpart specifies the types of records that a proprietor must maintain. In general, a proprietor is responsible for recording activities and transactions related to the three primary operational accounts at a plant: production, storage, and processing. A proprietor's records must show receipts in each account, movement from one account to another, transfers in bond, and withdrawals of spirits, denatured spirits, articles, or wines. The types of records that a proprietor must keep include:
</P>
<P>(a) All individual transaction forms, records, and summaries that are specifically required by this part;
</P>
<P>(b) All supplemental, auxiliary, and source data that a proprietor uses to compile required forms, records, and summaries, and to prepare reports, returns and claims; and
</P>
<P>(c) Copies of notices, reports, returns, and approved applications and other documents relating to operations and transactions.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.572" NODE="27:1.0.1.1.15.22.224.2" TYPE="SECTION">
<HEAD>§ 19.572   Format of records.</HEAD>
<P>As a general rule, the provisions of this subpart do not require proprietors to keep their records in any particular format or medium. For example, a proprietor may keep required records on paper, on microfilm or microfiche, or on a computer or other electronic medium, so long as the records are readily retrievable in hardcopy format for review by TTB officers as necessary. The required records may consist of documents created in the ordinary course of business, rather than documents created expressly to meet the requirements of this part, provided that those documents:
</P>
<P>(a) Contain all of the relevant information required under this part;
</P>
<P>(b) Are consistent with the general standards of clarity and accuracy; and
</P>
<P>(c) Can be readily understood by TTB personnel.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.573" NODE="27:1.0.1.1.15.22.224.3" TYPE="SECTION">
<HEAD>§ 19.573   Location of required records.</HEAD>
<P>A proprietor may keep the records required by this part at the distilled spirits plant where operations or transactions occur or at a central recordkeeping location maintained by the proprietor. If a proprietor keeps the required records at any location other than the distilled spirits plant where operations or transactions occur, the proprietor must provide a letterhead notice to the Director, National Revenue Center, of the location where the records are kept.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.574" NODE="27:1.0.1.1.15.22.224.4" TYPE="SECTION">
<HEAD>§ 19.574   Availability of records.</HEAD>
<P>The records required by this part must be available for inspection by the appropriate TTB officer during normal business hours. If a proprietor keeps the records at a location other than the distilled spirits plant where operations or transactions occur, the proprietor upon request must make them available at the distilled spirits plant premises undergoing a TTB audit or inspection. The records must be produced within two days of the request except that data accumulated on cards, tapes, discs, or other accepted record media must be retrievable within five business days. Applicable data processing programs must be made available for examination if requested by any authorized TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.575" NODE="27:1.0.1.1.15.22.224.5" TYPE="SECTION">
<HEAD>§ 19.575   Retention of records.</HEAD>
<P>A proprietor must retain any records required by this part for a period of not less than three years from the date of the record or the date of the last entry required to be made, whichever is later. However, the appropriate TTB officer may require a proprietor to keep records for an additional period not exceeding three years in any case where such retention is deemed appropriate for the protection of the revenue.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.576" NODE="27:1.0.1.1.15.22.224.6" TYPE="SECTION">
<HEAD>§ 19.576   Preservation of records.</HEAD>
<P>A proprietor must maintain required records in a manner that will ensure their readability and availability for inspection. Whenever the condition of any record will render it unsuitable for its intended or continued use, the proprietor must create an accurate and legible reproduction of the original record. TTB will treat the reproduced record as an original record, and all of the provisions of law that would apply to the original record also will apply to the reproduced record.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207, 5555)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.577" NODE="27:1.0.1.1.15.22.224.7" TYPE="SECTION">
<HEAD>§ 19.577   Documents that are not records.</HEAD>
<P>The term “records” as used in this subpart does not include qualifying documents required under subpart D of this part, or bonds required under subpart F of this part. Approved active formulas, plant registrations and similar records are permanent in nature and must be maintained in a permanent file.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.578" NODE="27:1.0.1.1.15.22.224.8" TYPE="SECTION">
<HEAD>§ 19.578   Financial records and books of account.</HEAD>
<P>See § 70.22 of this chapter for information regarding TTB examination of financial records and books of account.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7602)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.580" NODE="27:1.0.1.1.15.22.224.9" TYPE="SECTION">
<HEAD>§ 19.580   Time for making entries in records.</HEAD>
<P>(a) <I>Daily record entries.</I> A proprietor must make entries required by this part in records on a daily basis for each transaction or operation and not later than the close of the next business day after the transaction or operation occurred. However, if a proprietor prepares supplemental or auxiliary records when an operation or transaction occurs and those records contain all of the required information, the proprietor may make entries into the daily records not later than the close of business on the third business day following the day on which the transaction or operation occurred.
</P>
<P>(b) <I>Tax records.</I> A proprietor must enter the tax determination and the taxable removal of distilled spirits in the proprietor's records on the day on which tax determination and taxable removal occurs.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.581" NODE="27:1.0.1.1.15.22.224.10" TYPE="SECTION">
<HEAD>§ 19.581   Details of daily records.</HEAD>
<P>The daily records required by this part must include the following information:
</P>
<P>(a) The date of each operation or transaction;
</P>
<P>(b) For spirits, the kind and the quantity in proof gallons;
</P>
<P>(c) For denatured spirits, the formula number and the quantity in wine gallons;
</P>
<P>(d) For distilling materials produced on the premises, the kind and the quantity in wine gallons. For chemical byproducts containing spirits, articles, spirits residues, and distilling material received on the premises, the kind, the percent of alcohol by volume, and the quantity in wine gallons;
</P>
<P>(e) For wines, the kind, the quantity in wine gallons and the percent of alcohol by volume;
</P>
<P>(f) For alcoholic flavoring materials, the kind, formula number (if any), and the quantity in proof gallons;
</P>
<P>(g) For containers (other than those bearing lot identification numbers) or cases, the type, serial number, and the number of containers (including identifying marks on bulk conveyances), or cases. However, a proprietor may withdraw spirits in cases without recording the serial numbers of the cases, unless the appropriate TTB officer requires such recording. A proprietor must record package identification numbers, number of packages, and proof gallons per package on deposit records in the storage account reflecting production gauges or filling of packages from tanks; however, the proprietor need show only the lot identification, number of packages, and proof gallons per package for transactions in packages of spirits unless package identification numbers are specifically required by this part;
</P>
<P>(h) For materials intended for use in the production of spirits, the kind and the quantity, with liquids recorded in gallons and other nonliquid materials recorded by weight;
</P>
<P>(i) For each receipt or removal of material, spirits, denatured spirits, articles, spirits residues, and wine, the name and address of the consignee or consignor, and, if any, the plant number or industrial use permit number of such person;
</P>
<P>(j) The serial number of any tank used;
</P>
<P>(k) On the transaction record, the rate of duty paid on imported spirits;
</P>
<P>(l) Identification of imported spirits, spirits from Puerto Rico, and spirits from the Virgin Islands, or a showing that a distilled spirits product contains such spirits; and
</P>
<P>(m) Identification of spirits that are to be used exclusively for fuel use.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.582" NODE="27:1.0.1.1.15.22.224.11" TYPE="SECTION">
<HEAD>§ 19.582   Conversion from metric to U.S. units.</HEAD>
<P>When liters are converted to wine gallons, the proprietor must multiply the quantity in liters by 0.264172 to determine the equivalent quantity in wine gallons. If cases contain the same quantity of spirits of the same proof in metric bottles, the proprietor must convert the cases to U.S. units by multiplying the liters in one case by the number of cases to be converted, as follows:
</P>
<P>(a) If the conversion from liters to U.S. units is made before multiplying by the number of cases, the quantity in U.S. units must be rounded to the sixth decimal; or
</P>
<P>(b) If the conversion is made after multiplying by the number of cases, the quantity in U.S. units must be rounded to the nearest hundredth. Once converted to wine gallons, the proprietor must determine the proof gallons of spirits in cases as provided in § 30.52 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="225" NODE="27:1.0.1.1.15.22.225" TYPE="SUBJGRP">
<HEAD>Production Records</HEAD>


<DIV8 N="§ 19.584" NODE="27:1.0.1.1.15.22.225.12" TYPE="SECTION">
<HEAD>§ 19.584   Materials for the production of distilled spirits.</HEAD>
<P>A proprietor must maintain daily records of materials produced or received for, or used in, the production of distilled spirits. This includes records covering:
</P>
<P>(a) Receipt and use of fermenting material or other nonalcoholic materials for the production of distilled spirits;
</P>
<P>(b) Receipt and use of spirits, denatured spirits, articles, and spirits residues for redistillation;
</P>
<P>(c) Distilling materials produced, received for production, and used in the production of distilled spirits;
</P>
<P>(d) Receipt of beer from brewery premises without payment of tax, and receipt of beer removed from brewery premises upon determination of tax as authorized by 26 U.S.C. 5222(b);
</P>
<P>(e) Distilling material destroyed in, or removed from the premises before distillation, including residue of beer returned to the producing brewery;
</P>
<P>(f) The quantity of fusel oils or other chemicals removed from the production system, including the disposition thereof, with the name of the consignee, if any, together with the results of alcohol content tests performed on those fusel oils or chemicals; and
</P>
<P>(g) The kind and quantity of distillates removed from the production system pursuant to § 19.307.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.585" NODE="27:1.0.1.1.15.22.225.13" TYPE="SECTION">
<HEAD>§ 19.585   Production and withdrawal records.</HEAD>
<P>(a) <I>Production of spirits.</I> The following rules apply to the maintenance of production records:
</P>
<P>(1) A proprietor must maintain daily production account records of the kind and quantity of distilled spirits produced. The records must show the gauge of spirits in each receiving tank and the production gauge (in proof gallons) of spirits removed from each tank. If packages are filled according to the production gauge for immediate withdrawal from bond, the proprietor must record the details of the individual packages filled;
</P>
<P>(2) A proprietor must maintain daily records of spirits lost or destroyed prior to the production gauge; and
</P>
<P>(3) A proprietor must maintain production account records in a manner that will ensure the tracing of spirits through the distilling system to the mash or other material from which the spirits were produced and that will clearly establish the identity of the spirits.
</P>
<P>(b) <I>Withdrawals from production.</I> A proprietor must maintain daily records of the distilled spirits withdrawn from the production account. This includes withdrawals for:
</P>
<P>(1) Taxpayment;
</P>
<P>(2) Use of the United States;
</P>
<P>(3) Hospital, scientific or educational use;
</P>
<P>(4) Export;
</P>
<P>(5) Transfer to a foreign trade zone;
</P>
<P>(6) Transfer to customs bonded manufacturing warehouse;
</P>
<P>(7) Use as supplies on vessels and aircraft;
</P>
<P>(8) Use in wine production;
</P>
<P>(9) Transfer in bond to other bonded premises;
</P>
<P>(10) Transfer to storage operations;
</P>
<P>(11) Transfer to processing operations; and
</P>
<P>(12) Research, development, or testing.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.586" NODE="27:1.0.1.1.15.22.225.14" TYPE="SECTION">
<HEAD>§ 19.586   Byproduct spirits production records.</HEAD>
<P>Each proprietor who manufactures substances other than spirits in a process that produces spirits as a byproduct must maintain daily production records of:
</P>
<P>(a) The kind and quantity of materials received and used in production;
</P>
<P>(b) The kind and quantity of spirits produced and disposed of; and
</P>
<P>(c) The kind and quantity of other substances produced.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="226" NODE="27:1.0.1.1.15.22.226" TYPE="SUBJGRP">
<HEAD>Storage Records</HEAD>


<DIV8 N="§ 19.590" NODE="27:1.0.1.1.15.22.226.15" TYPE="SECTION">
<HEAD>§ 19.590   Storage operations.</HEAD>
<P>(a) <I>Receipts.</I> A proprietor must maintain daily records of the kind and quantity of distilled spirits or wines received in the storage account. The proprietor must use copies of gauge records, transfer records, and tank records of wines or spirits to record spirits or wines received into storage. Receipts into storage include:
</P>
<P>(1) Receipts of spirits or wines for deposit into storage;
</P>
<P>(2) Receipts by transfer in bond;
</P>
<P>(3) Receipts of spirits from customs custody; and
</P>
<P>(4) Receipts of spirits returned to bond.
</P>
<P>(b) <I>Storage activities.</I> A proprietor must maintain daily records of the activities and operations within the storage account at the plant, including records regarding:
</P>
<P>(1) The mingling of spirits;
</P>
<P>(2) Spirits in tanks;
</P>
<P>(3) Spirits or wines filled into packages from tanks and retained for storage;
</P>
<P>(4) Spirits of less than 190° of proof or wines transferred from one tank to another;
</P>
<P>(5) The transfer of spirits or wine from one package to another; and
</P>
<P>(6) The addition of oak chips to spirits and the addition of caramel to brandy or rum.
</P>
<P>(c) <I>Withdrawals from storage.</I> A proprietor must maintain daily records of the kind and quantity of distilled spirits or wines withdrawn from the storage account, including records regarding:
</P>
<P>(1) Taxpayment;
</P>
<P>(2) Use by the United States;
</P>
<P>(3) Hospital, scientific or educational use;
</P>
<P>(4) Export;
</P>
<P>(5) Transfer to a foreign trade zone;
</P>
<P>(6) Transfer to a customs bonded manufacturing warehouse;
</P>
<P>(7) Use as supplies on vessels and aircraft;
</P>
<P>(8) Transfer to a bonded winery;
</P>
<P>(9) Transfer to a customs bonded warehouse;
</P>
<P>(10) Use for research, development, or testing;
</P>
<P>(11) Transfer to processing operations;
</P>
<P>(12) Transfer to production operations;
</P>
<P>(13) Transfer in bond to other bonded premises;
</P>
<P>(14) Destruction; and
</P>
<P>(15) Loss.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.591" NODE="27:1.0.1.1.15.22.226.16" TYPE="SECTION">
<HEAD>§ 19.591   Package summary records.</HEAD>
<P>(a) <I>General.</I> A proprietor must keep current summary records for each kind of spirits or wine in packages that show the spirits or wine deposited in, withdrawn from, and remaining in, the storage account. A proprietor must keep separate records for domestic spirits, imported spirits, Virgin Islands spirits, Puerto Rican spirits, and wine. A proprietor may keep package records for spirits according to the season or the year in which the packages were filled with spirits.
</P>
<P>(b) <I>Arrangement of records.</I> The proprietor must prepare and arrange separately package summary records:
</P>
<P>(1) For domestic spirits, alphabetically by State and by the plant number and name of the producer or warehouseman;
</P>
<P>(2) For imported spirits, alphabetically by the country of origin and by the name of the producer;
</P>
<P>(3) For Puerto Rican or Virgin Islands spirits, by the name of the producer in Puerto Rico or the Virgin Islands; and
</P>
<P>(4) For wine, by the kind and the tax rate imposed by 26 U.S.C. 5041.
</P>
<P>(c) <I>Details of records.</I> Package summary records must show the following details:
</P>
<P>(1) The date on which each of the summarized transactions occurred;
</P>
<P>(2) For spirits, the number of packages and the proof gallons covered by the summary record;
</P>
<P>(3) For wine, the number of packages and the wine gallons covered by the summary record;
</P>
<P>(4) Any gains or shortages disclosed by inventory or when an account is closed; and
</P>
<P>(5) The gallon balances on summary records for spirits and wines remaining in the account at the end of each month.
</P>
<P>(d) <I>Consolidation.</I> A proprietor must consolidate package summary records at the end of each month, or for lesser periods when required by the appropriate TTB officer, to show, for all types of containers and kinds of spirits, the total proof gallons received in, withdrawn from, and remaining in the storage account.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.592" NODE="27:1.0.1.1.15.22.226.17" TYPE="SECTION">
<HEAD>§ 19.592   Tank record of wine and spirits of less than 190° of proof.</HEAD>
<P>A proprietor must keep a record for each tank (including each bulk conveyance) containing wine or spirits of less than 190° of proof. The record must show deposits into, withdrawals from, and the balance remaining in, each tank in the storage account. A proprietor must prepare a new record each time wine or spirits are deposited into an empty tank and must make entries each day that transactions occur. Tank records must show the following details:
</P>
<P>(a) The identification of the tank;
</P>
<P>(b) The tank record serial number, beginning with “1” for each record initiated on or after January 1 of each calendar year;
</P>
<P>(c) The date of each transaction;
</P>
<P>(d) For spirits, the kind of spirits and, as applicable,—
</P>
<P>(1) For domestic spirits, the plant number and name of the producer, or, for blended rums or brandies, the plant number and name of the warehouseman;
</P>
<P>(2) For imported spirits, the country of origin and the name and plant number of the warehouseman;
</P>
<P>(3) For Puerto Rican or Virgin Island spirits, the name of the producer;
</P>
<P>(4) The number and average proof gallon content of packages of spirits dumped in the tank, or a notation indicating the deposit of spirits in the tank by pipeline; and
</P>
<P>(5) If subject to age labeling requirements under part 5 of this chapter, the age of the youngest spirits in years, months and days, each time that spirits are deposited;
</P>
<P>(e) For wine, the kind and the tax rate imposed by 26 U.S.C. 5041;
</P>
<P>(f) The wine gallons of wine, or proof gallons of spirits, deposited into the tank;
</P>
<P>(g) The wine gallons of wine, or proof gallons of spirits, withdrawn from the tank;
</P>
<P>(h) Any related transaction form or record and its serial number for deposits and withdrawals;
</P>
<P>(i) The wine gallons of wine, or proof gallons of spirits, remaining in the tank, recorded at the end of each month; and
</P>
<P>(j) Any gain or loss disclosed by inventory or on emptying of the tank.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.593" NODE="27:1.0.1.1.15.22.226.18" TYPE="SECTION">
<HEAD>§ 19.593   Tank summary record for spirits of 190° or more of proof.</HEAD>
<P>(a) <I>General.</I> A proprietor must keep a tank summary record for spirits of 190° or more of proof held in storage tanks. The record must show the proof gallons deposited into, withdrawn from, and remaining in the tanks in the storage account. The proprietor must prepare a separate tank summary record for each kind of spirits of 190° or more of proof. The proprietor must make an entry for each day on which a transaction occurs, and the entry must summarize the individual transactions shown on the deposit records.
</P>
<P>(b) <I>Arrangement of records.</I> The proprietor must prepare and arrange the tank summary records as follows:
</P>
<P>(1) For domestic spirits, by the name of the producer or warehouseman;
</P>
<P>(2) For imported spirits, by the name of the warehouseman who received the spirits from customs custody; and
</P>
<P>(3) For spirits from Puerto Rico or the Virgin Islands, by the name of the producer in Puerto Rico or the Virgin Islands.
</P>
<P>(c) <I>Details of records.</I> Tank summary records must show the following details:
</P>
<P>(1) The kind of spirits;
</P>
<P>(2) The date of the transactions summarized;
</P>
<P>(3) The proof gallons deposited;
</P>
<P>(4) The proof gallons withdrawn;
</P>
<P>(5) The proof gallons remaining in tanks; and
</P>
<P>(6) Any gain or loss disclosed by inventory or on emptying of the tanks covered by the tank summary record.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="227" NODE="27:1.0.1.1.15.22.227" TYPE="SUBJGRP">
<HEAD>Processing Records</HEAD>


<DIV8 N="§ 19.596" NODE="27:1.0.1.1.15.22.227.19" TYPE="SECTION">
<HEAD>§ 19.596   Processing records in general.</HEAD>
<P>A proprietor who processes spirits must maintain daily records of transactions and operations in the processing account relating to:
</P>
<P>(a) The manufacture of distilled spirits products;
</P>
<P>(b) Finished products;
</P>
<P>(c) The denaturation of spirits; and
</P>
<P>(d) The manufacture of articles.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.597" NODE="27:1.0.1.1.15.22.227.20" TYPE="SECTION">
<HEAD>§ 19.597   Manufacturing records.</HEAD>
<P>(a) <I>Receipts.</I> A proprietor must maintain daily records of the spirits, wines, and alcoholic flavoring materials received into the processing account for the manufacture of distilled spirits products. Total receipts must be summarized showing the amount of:
</P>
<P>(1) Spirits received from storage or production at the same plant;
</P>
<P>(2) Spirits received from other plants by transfer in bond;
</P>
<P>(3) Spirits received from customs custody;
</P>
<P>(4) Spirits received by return to bond;
</P>
<P>(5) Wines received from the storage at the same plant;
</P>
<P>(6) Wines received by transfer in bond; and
</P>
<P>(7) Alcoholic flavoring materials received.
</P>
<P>(b) <I>Additional receipt information.</I> The records described in paragraph (a) of this section must also show the name and plant number of the producer or processor (or the warehouseman in the case of blended beverage rums or brandies or spirits of 190° of more of proof received from storage) for domestic spirits, the name of the importer and the country of origin for imported spirits, and the name and address of the producer for wines and alcoholic flavoring materials.
</P>
<P>(c) <I>Usage.</I> A proprietor must maintain daily records of the spirits, wines, and alcoholic flavoring materials and other ingredients used in the manufacture of distilled spirits products as provided in § 19.598.
</P>
<P>(d) <I>Bottling or packaging.</I> A proprietor must maintain daily records of the bottling or packaging of each batch of spirits as provided in § 19.599.
</P>
<P>(e) <I>Other dispositions.</I> A proprietor must maintain daily records of all other dispositions of spirits, wines and alcoholic flavoring materials, including, but not limited to, records regarding the following:
</P>
<P>(1) Spirits, wines, and alcoholic flavoring materials removed from the distilled spirits plant premises;
</P>
<P>(2) Transfers in bond;
</P>
<P>(3) Spirits transferred to the production account for redistillation;
</P>
<P>(4) Redistillation of spirits, including the production of gin or vodka by other than original and continuous distillation;
</P>
<P>(5) Voluntary destruction of spirits or wines; and
</P>
<P>(6) Losses of spirits, wines and alcoholic flavoring materials.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.598" NODE="27:1.0.1.1.15.22.227.21" TYPE="SECTION">
<HEAD>§ 19.598   Dump/batch records.</HEAD>
<P>A proprietor who processes, mixes, or blends spirits in the processing account must maintain “dump/batch” records setting forth detailed information regarding the processing of the spirits. The dump/batch records must contain each of the following items of information that applies to the processing in question:
</P>
<P>(a) Serial number of the record or batch number;
</P>
<P>(b) Name and distilled spirits plant number of the producer;
</P>
<P>(c) Kind and age of the spirits used, together with a notation, if applicable, that the spirits—
</P>
<P>(1) Were treated with oak chips;
</P>
<P>(2) Contain added caramel;
</P>
<P>(3) Were imported; or
</P>
<P>(4) Are from Puerto Rico or the Virgin Islands;
</P>
<P>(d) Serial number of the tank or container to which ingredients are added for use;
</P>
<P>(e) Serial or identification number of the tank or container from which spirits are removed;
</P>
<P>(f) Quantity by ingredient of other alcoholic ingredients used, showing wine in wine gallons, the percentage of alcohol by volume and proof, and alcoholic flavoring materials in proof gallons;
</P>
<P>(g) Serial number of the source transaction record (for example, the record for spirits previously dumped);
</P>
<P>(h) Date of each transaction;
</P>
<P>(i) Quantity, by ingredient (other than water), of nonalcoholic ingredients used;
</P>
<P>(j) Formula number;
</P>
<P>(k) Quantity of ingredients used in the batch that have been previously dumped, reported on dump records, and held in tanks or containers;
</P>
<P>(l) Total quantity in proof gallons of all alcoholic ingredients used;
</P>
<P>(m) Identification of each record to which spirits are transferred;
</P>
<P>(n) Quantity of each lot transferred;
</P>
<P>(o) Date of each transfer;
</P>
<P>(p) Total quantity in proof gallons of the product transferred;
</P>
<P>(q) Batch gain or loss; and
</P>
<P>(r) For each batch to be tax determined in accordance with § 19.247, the effective tax rate.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.599" NODE="27:1.0.1.1.15.22.227.22" TYPE="SECTION">
<HEAD>§ 19.599   Bottling and packaging records.</HEAD>
<P>A proprietor who bottles or packages spirits must prepare a “bottling and packaging” record for each lot of spirits bottled or packaged. The bottling and packaging record must contain the following information:
</P>
<P>(a) Bottling tank number;
</P>
<P>(b) Serial number of the record (which must commence with “1” at the start of each calendar or fiscal year, or be a unique identifying number that is not repeated);
</P>
<P>(c) Formula number (if any) under which the batch was produced;
</P>
<P>(d) Serial number of the dump/batch record from which the spirits were received;
</P>
<P>(e) Kind of distilled spirits product (including age, if claimed);
</P>
<P>(f) Details of the tank gauge (including proof, wine gallons, proof gallons, and, if applicable, obscuration);
</P>
<P>(g) The date the bottles or packages were filled;
</P>
<P>(h) The size of the bottles or packages filled, the number of bottles per case, and the number of cases or packages filled;
</P>
<P>(i) Serial numbers by brand name of the cases or other containers filled;
</P>
<P>(j) Proof of the spirits bottled or packaged (if different from the proof recorded under paragraph (f) of this section);
</P>
<P>(k) Total quantity bottled, packaged, or otherwise disposed of in bulk;
</P>
<P>(l) Losses or gains of the distilled spirits product; and
</P>
<P>(m) If labeled as bottled in bond, a statement to that effect.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-92a, 76 FR 19908, Apr. 11, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 19.600" NODE="27:1.0.1.1.15.22.227.23" TYPE="SECTION">
<HEAD>§ 19.600   Alcohol content and fill test record.</HEAD>
<P>A proprietor must maintain a record of the results of all tests of alcohol content and quantity (fill) conducted. The record must include information that will enable TTB officers to determine whether the proprietor is complying with the requirements of § 19.356. The record of alcohol content and fill tests must contain, at a minimum, the following information:
</P>
<P>(a) Date and time of the test;
</P>
<P>(b) Bottling tank number;
</P>
<P>(c) Serial number of the bottling record;
</P>
<P>(d) Bottling line designation;
</P>
<P>(e) Size of bottles filled;
</P>
<P>(f) Number of bottles tested;
</P>
<P>(g) Labeled alcohol content;
</P>
<P>(h) Alcohol content found by the test;
</P>
<P>(i) Percentage of variation from 100 percent fill; and
</P>
<P>(j) Corrective action taken, if any.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207, 5555)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.601" NODE="27:1.0.1.1.15.22.227.24" TYPE="SECTION">
<HEAD>§ 19.601   Finished products records.</HEAD>
<P>(a) <I>Bottling and packaging.</I> A proprietor must maintain daily transaction records and a daily summary record of the quantity of finished products bottled or packaged within the processing account at the distilled spirits plant. These records must show:
</P>
<P>(1) The beginning and ending quantity of bottled or packaged spirits on hand;
</P>
<P>(2) The quantity of spirits bottled or packaged; and
</P>
<P>(3) Inventory overages.
</P>
<P>(b) <I>Disposition of finished products.</I> A proprietor must also maintain daily records of the disposition of finished products from the processing account at the distilled spirits plant. These disposition records must show any spirits:
</P>
<P>(1) Transferred in bond (packages);
</P>
<P>(2) Withdrawn tax determined;
</P>
<P>(3) Withdrawn free of tax for U.S., hospital, scientific, or educational use;
</P>
<P>(4) Withdrawn without payment of tax for addition to wine;
</P>
<P>(5) Withdrawn for exportation, for vessels and aircraft supplies and for transfer to a customs bonded warehouse;
</P>
<P>(6) Transferred to the production account for redistillation;
</P>
<P>(7) Withdrawn for research, development or testing (including government samples);
</P>
<P>(8) Voluntarily destroyed;
</P>
<P>(9) Dumped for further processing;
</P>
<P>(10) Recorded losses or shortages of finished product; and
</P>
<P>(11) Disposed of as samples of the finished product.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-119, 79 FR 17033, Mar. 27, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 19.602" NODE="27:1.0.1.1.15.22.227.25" TYPE="SECTION">
<HEAD>§ 19.602   Redistillation records.</HEAD>
<P>If a proprietor redistills spirits in the processing account (as in the production of gin or vodka by redistillation), the proprietor must prepare a record of the redistillation. The record must show the kind and quantity of the spirits entered into the distilling system and the kind and quantity of the spirits removed from the distilling system upon completion of the process.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.603" NODE="27:1.0.1.1.15.22.227.26" TYPE="SECTION">
<HEAD>§ 19.603   Liquor bottle records.</HEAD>
<P>A proprietor must maintain records of the receipt, use, and disposition of liquor bottles.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.604" NODE="27:1.0.1.1.15.22.227.27" TYPE="SECTION">
<HEAD>§ 19.604   Rebottling, relabeling, and reclosing records.</HEAD>
<P>(a) If a proprietor dumps spirits for rebottling, the proprietor must prepare in accordance with § 19.599 a bottling and packaging record that covers the rebottling operation.
</P>
<P>(b) If a proprietor relabels or recloses bottled products in accordance with § 19.363, the proprietor must maintain records of the operation that reflect the following:
</P>
<P>(1) The identity of the spirits relabeled or reclosed;
</P>
<P>(2) The date of the transaction;
</P>
<P>(3) The serial numbers of any cases involved; and
</P>
<P>(4) The total number of bottles.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="228" NODE="27:1.0.1.1.15.22.228" TYPE="SUBJGRP">
<HEAD>Denaturation and Article Manufacture Records</HEAD>


<DIV8 N="§ 19.606" NODE="27:1.0.1.1.15.22.228.28" TYPE="SECTION">
<HEAD>§ 19.606   Denaturation records.</HEAD>
<P>(a) <I>General.</I> A processor that is authorized to denature spirits must maintain daily records of denaturation showing the following information:
</P>
<P>(1) Spirits that are received for, and used in, denaturation;
</P>
<P>(2) Spirits, denatured spirits, recovered denatured spirits, spirits residues, and articles that are redistilled in the processing account for denaturation;
</P>
<P>(3) Kind and quantity of denaturants received and used in denaturation of spirits or otherwise disposed of;
</P>
<P>(4) Conversion of denatured alcohol formulas in accordance with § 19.392;
</P>
<P>(5) Denatured spirits produced, received, stored in tanks, filled into containers, removed, or otherwise disposed of;
</P>
<P>(6) Recovered denatured spirits or recovered articles received, restored, or redenatured;
</P>
<P>(7) Packages of denatured spirits filled, with a separate record for each formula number and filed in numerical order according to the serial number or lot identification number of the packages;
</P>
<P>(8) Losses of denatured spirits; and
</P>
<P>(9) Disposition of denatured spirits.
</P>
<P>(b) <I>Record of denaturation.</I> Each time that a proprietor denatures spirits, the proprietor must prepare a record that shows the formula number, the tank in which denaturation takes place, the proof gallons of the spirits before denaturation, the quantity of each denaturant used (in gallons, or in pounds or ounces), and the wine gallons of denatured spirits produced.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.607" NODE="27:1.0.1.1.15.22.228.29" TYPE="SECTION">
<HEAD>§ 19.607   Article manufacture records.</HEAD>
<P>Each processor qualified to manufacture articles must maintain daily manufacturing and disposition records, arranged by the name and authorized Use Code of the article, in the manner provided in part 20 of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59455, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="229" NODE="27:1.0.1.1.15.22.229" TYPE="SUBJGRP">
<HEAD>Tax Records</HEAD>


<DIV8 N="§ 19.611" NODE="27:1.0.1.1.15.22.229.30" TYPE="SECTION">
<HEAD>§ 19.611   Records of tax determination in general.</HEAD>
<P>(a) <I>Taxable withdrawals.</I> Except as otherwise provided in this part, a proprietor must gauge and determine the tax on spirits when they are withdrawn from bond. When spirits are withdrawn from bond, the proprietor must also prepare a record of the tax determination in accordance with paragraph (b) of this section.
</P>
<P>(b) <I>Form of record.</I> A serially numbered invoice or shipping document, signed or initialed by an agent or employee of the proprietor, will constitute the record of tax determination. Although neither the proof gallons nor the effective tax rate must be shown on the record of tax determination, each invoice or shipping document must contain information sufficient to enable TTB officers to determine the total proof gallons and, if applicable, each effective tax rate and the proof gallons removed at each effective tax rate. For purposes of this part, the total proof gallons calculated from each invoice or shipping document constitutes a single withdrawal.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.612" NODE="27:1.0.1.1.15.22.229.31" TYPE="SECTION">
<HEAD>§ 19.612   Summary records of tax determinations.</HEAD>
<P>Each proprietor that withdraws distilled spirits on determination of tax, but before payment of tax, must maintain a daily summary record of tax determinations. The summary record must show for each day on which tax determinations occur:
</P>
<P>(a) The serial numbers of the records of tax determination, the total proof gallons rounded to the nearest tenth proof gallon on which tax was determined at each effective tax rate, and the total tax; or
</P>
<P>(b) The serial numbers of the records of tax determination, the total tax for each record of tax determination, and the total tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.613" NODE="27:1.0.1.1.15.22.229.32" TYPE="SECTION">
<HEAD>§ 19.613   Average effective tax rate records.</HEAD>
<P>(a) <I>Daily record.</I> For each distilled spirits product to be tax determined using an average effective tax rate in accordance with § 19.249, the proprietor must prepare a daily summary record showing:
</P>
<P>(1) The serial number of the batch record of each batch of the product that will be bottled or packaged, in whole or in part, for domestic consumption;
</P>
<P>(2) The proof gallons in each such batch derived from distilled spirits, eligible wine, and eligible flavors; and
</P>
<P>(3) The tax liability of each such batch determined as follows—
</P>
<P>(i) Proof gallons of all distilled spirits (exclusive of distilled spirits derived from eligible flavors), multiplied by the tax rate prescribed in 26 U.S.C. 5001;
</P>
<P>(ii) Wine gallons of each eligible wine, multiplied by the tax rate which would be imposed on the wine under 26 U.S.C. 5041(b)(1), (2), or (3) but for its removal to bonded premises; and
</P>
<P>(iii) Proof gallons of all distilled spirits derived from eligible flavors, to the extent that those distilled spirits exceed 2.5 percent of the proof gallons in the product, multiplied by the tax rate prescribed in 26 U.S.C. 5001.
</P>
<P>(b) <I>Monthly records.</I> At the end of each month during which the product is manufactured, the proprietor must:
</P>
<P>(1) Determine the total proof gallons and total tax liability for each summary record prescribed by paragraph (a) of this section;
</P>
<P>(2) Add the sums derived under paragraph (b)(1) of this section to the like sums determined for each of the preceding 5 months; and
</P>
<P>(3) Divide the total tax liabilities by the total proof gallons.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.614" NODE="27:1.0.1.1.15.22.229.33" TYPE="SECTION">
<HEAD>§ 19.614   Inventory reserve records.</HEAD>
<P>(a) <I>General.</I> For each eligible distilled spirits product to be tax determined in accordance with § 19.250, the proprietor must establish an inventory reserve account, in accordance with this section.
</P>
<P>(b) <I>Deposit records.</I> For each batch of the bottled or packaged product, the proprietor must enter into the inventory reserve account a deposit record, which may be combined with the bottling and packaging record required by § 19.599, showing:
</P>
<P>(1) The name of the product;
</P>
<P>(2) The bottling and packaging record serial number;
</P>
<P>(3) The date the bottling or packaging was completed;
</P>
<P>(4) The total proof gallons bottled and packaged; and
</P>
<P>(5) The effective tax rate of the product computed in accordance with § 19.246.
</P>
<P>(c) <I>Depletions.</I> The inventory reserve account for each product must be depleted in the same order in which the deposit records were entered into the account. The proprietor must record a depletion for each disposition (for example, a taxable removal, an exportation, or an inventory shortage or breakage) by entering on the deposit record:
</P>
<P>(1) The transaction date;
</P>
<P>(2) The transaction record serial number;
</P>
<P>(3) The proof gallons disposed of; and
</P>
<P>(4) The proof gallons remaining. If any depletion exceeds the quantity of product remaining on the deposit record, the proprietor must deplete the remaining quantity, close the deposit record, and then deplete the remainder of the transaction from the next deposit record.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.615" NODE="27:1.0.1.1.15.22.229.34" TYPE="SECTION">
<HEAD>§ 19.615   Standard effective tax rate records.</HEAD>
<P>For each product to be tax determined using a standard effective tax rate in accordance with § 19.248, a proprietor must prepare a record of the standard effective tax rate computation showing, for one proof gallon of the finished product, the following information:
</P>
<P>(a) The name of the product;
</P>
<P>(b) The least quantity of each eligible flavor that will be used in the product, in proof gallons, or 0.025 proof gallon, whichever is less;
</P>
<P>(c) The least quantity of each eligible wine that will be used in the product, in proof gallons;
</P>
<P>(d) The greatest effective tax rate applicable to the product, calculated in accordance with § 19.246 with the values indicated in paragraphs (a) and (b) of this section; and
</P>
<P>(e) The date on which the use of the standard effective tax rate commenced.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="230" NODE="27:1.0.1.1.15.22.230" TYPE="SUBJGRP">
<HEAD>Other Required Records</HEAD>


<DIV8 N="§ 19.616" NODE="27:1.0.1.1.15.22.230.35" TYPE="SECTION">
<HEAD>§ 19.616   Records of samples.</HEAD>
<P>(a) <I>Required records.</I> A proprietor must maintain records of all samples taken under §§ 19.434 and 19.435. The sample record must show the:
</P>
<P>(1) The date that the samples were taken;
</P>
<P>(2) The account from which taken;
</P>
<P>(3) The purpose for which taken;
</P>
<P>(4) The size and number of samples taken;
</P>
<P>(5) The kind of spirits;
</P>
<P>(6) The disposition of each sample (for example, destroyed, returned to containers or the distilling system, retained for library purposes); and
</P>
<P>(7) The name and address of the recipient of the sample if a sample is to be analyzed or tested elsewhere than at the distilled spirits plant where taken.
</P>
<P>(b) <I>Sample schedule.</I> When a proprietor takes samples pursuant to an established schedule, the proprietor may maintain the schedule as the required record if it contains the information required by paragraphs (a)(2) through (a)(7).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.617" NODE="27:1.0.1.1.15.22.230.36" TYPE="SECTION">
<HEAD>§ 19.617   Destruction records.</HEAD>
<P>Each time that a proprietor voluntarily destroys spirits, denatured spirits, articles, or wines, the proprietor must prepare a record of the destruction that sets forth:
</P>
<P>(a) The identification of the spirits, denatured spirits, articles, or wines, including kind, quantity, elements of gauge, name and permit number of the producer, warehouseman or processor, and identity and type of container;
</P>
<P>(b) The date, time, place and manner of the destruction;
</P>
<P>(c) A statement that the spirits had, or had not, previously been withdrawn and returned to bond; and
</P>
<P>(d) The name and title of any representative of the proprietor who accomplished or supervised the destruction.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.618" NODE="27:1.0.1.1.15.22.230.37" TYPE="SECTION">
<HEAD>§ 19.618   Gauge record.</HEAD>
<P>When a gauge record is required by this part, the proprietor must prepare the gauge record in a manner that shows:
</P>
<P>(a) The serial number of the gauge record, which must either:
</P>
<P>(1) Commence with “1” at the start of each calendar or fiscal year, or
</P>
<P>(2) Be a unique identifying number that is not repeated.
</P>
<P>(b) From the following, the applicable circumstances requiring the gauge—
</P>
<P>(1) Production gauge and entry for deposit in the storage or processing account at the distilled spirits plant where the spirits were produced;
</P>
<P>(2) Packaging of spirits or wine filled from a tank in the storage account at the same distilled spirits plant;
</P>
<P>(3) Transfer from the processing or storage account to the production account for redistillation;
</P>
<P>(4) Repackaging of spirits of 190° or more of proof; or
</P>
<P>(5) Gauge on return to bond in production or processing operations of spirits, denatured spirits, recovered spirits, recovered denatured spirits, articles, recovered articles, or spirits residues;
</P>
<P>(c) The date of the gauge;
</P>
<P>(d) Any related form or record (identification, serial number and date);
</P>
<P>(e) The kind of spirits or formula number for denatured spirits;
</P>
<P>(f) The proof of distillation (not required for denatured spirits, spirits for redistillation, or spirits of 190° or more of proof);
</P>
<P>(g) When containers are to be filled, the type and number of containers;
</P>
<P>(h) The age of the spirits;
</P>
<P>(i) The name and distilled spirits plant number of the producer or warehouseman; and
</P>
<P>(j) The following gauge data—
</P>
<P>(1) Package identification, tank number, volumetric or weight gauge details, proof, and wine gallons;
</P>
<P>(2) Cooperage identification (“C” for charred, “REC” for recharred, “P” for plain, “PAR” for paraffined, “G” for glued, or “R” for reused, and “PS” if a barrel has been steamed or water soaked before filling);
</P>
<P>(3) Entry proof for whiskey;
</P>
<P>(4) Proof gallons per filled package; and
</P>
<P>(5) Total proof gallons of spirits or wine gallons of denatured spirits, recovered denatured spirits, articles, spirits residues, or wine.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.619" NODE="27:1.0.1.1.15.22.230.38" TYPE="SECTION">
<HEAD>§ 19.619   Package gauge record.</HEAD>
<P>When this part or part 28 of this chapter requires a proprietor to gauge packages of spirits, the proprietor must prepare a package gauge record in a manner that shows:
</P>
<P>(a) The date the record is prepared;
</P>
<P>(b) The identity of the related transaction form or record, and its serial number;
</P>
<P>(c) The name and distilled spirits plant number of the producer or processor. For blended rums or brandies the proprietor must enter the name and plant number of the blending warehouseman. For spirits of 190° or more of proof, the proprietor must enter the name and plant number of the producer or warehouseman, as appropriate and, where the packages have already been marked, the name and distilled spirits plant number marked thereon. For imported spirits, the proprietor must enter the name of the warehouseman who received the spirits from customs custody and the name of the importer. For Virgin Islands or Puerto Rican spirits, the proprietor must enter the name of the producer in the Virgin Islands or Puerto Rico;
</P>
<P>(d) The proof of distillation for spirits not over 190° of proof; and
</P>
<P>(e) For each package—
</P>
<P>(1) The serial or identification number;
</P>
<P>(2) The designation for wooden barrels (“C” for charred, “REC” for recharred, “P” for plain, “PAR” for paraffined, “G” for glued, “R” for reused, and “PS” if a barrel has been steamed or water soaked before filling);
</P>
<P>(3) The kind of spirits;
</P>
<P>(4) The gross weight determined at the time of the original gauge or regauge or at the time of shipment;
</P>
<P>(5) The present tare on regauge;
</P>
<P>(6) The net weight for filling gauge or regauge;
</P>
<P>(7) The proof;
</P>
<P>(8) The proof gallons for regauge;
</P>
<P>(9) The original proof gallons; and
</P>
<P>(10) The receiving weights, when a material difference appears on receipt after transfer in bond of weighed packages.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.620" NODE="27:1.0.1.1.15.22.230.39" TYPE="SECTION">
<HEAD>§ 19.620   Transfer record—consignor's responsibility.</HEAD>
<P>When this part requires a consignor proprietor to prepare a transfer record covering spirits, denatured spirits, or wines shipped in bond from its distilled spirits plant, the transfer record must include:
</P>
<P>(a) The serial number of the transfer record, which must either:
</P>
<P>(1) Commence with “1” at the start of each calendar or fiscal year, or
</P>
<P>(2) Be a unique identifying number that is not repeated.
</P>
<P>(b) The serial number and date of form TTB F 5100.16 (not required for wine spirits withdrawn without payment of tax for use in wine production);
</P>
<P>(c) The name and distilled spirits plant number of the consignor proprietor;
</P>
<P>(d) The name and distilled spirits plant number or bonded wine cellar number of the consignee;
</P>
<P>(e) The account from which the spirits or wines were removed for transfer (that is, the production, storage, or processing account);
</P>
<P>(f) A description of the spirits, denatured spirits, or wine, including—
</P>
<P>(1) The name and plant number of the producer, warehouseman, or processor (not required for denatured spirits or wine). For imported spirits transferred in bond between distilled spirits plants, the transfer record must show the name and plant number of the warehouseman or processor who received the spirits from customs custody. For Virgin Islands or Puerto Rican spirits, the transfer record must show the name of the producer in the Virgin Islands or Puerto Rico. For spirits of different producers or warehousemen that have been mixed in the processing account, the transfer record must show the name of the processor;
</P>
<P>(2) The kind of spirits or wines. For denatured spirits, the transfer record must show the kind and formula number. For alcohol, the transfer record must show the material from which it was produced. For bulk spirits and for alcohol in packages, the transfer record must show the kind and proof. For other spirits and wines, the transfer record must show the kind designation as specified in part 4 or part 5 of this chapter, as appropriate;
</P>
<P>(3) The age (in years, months, and days) and year of production;
</P>
<P>(4) The number of packages or cases with their lot identification numbers or serial numbers and dates of fill;
</P>
<P>(5) The type of container (if the spirits, denatured spirits or wines are to be transferred by pipeline, the transfer record must show “P/L”);
</P>
<P>(6) The proof gallons for distilled spirits, or wine gallons for denatured spirits or wine; and
</P>
<P>(7) For distilled spirits products that contain eligible wine or eligible flavors, the transfer record must show the elements necessary to compute the effective tax rate as follows—
</P>
<P>(i) Proof gallons of distilled spirits (exclusive of distilled spirits derived from eligible flavors);
</P>
<P>(ii) Wine gallons of each eligible wine and the percentage of alcohol by volume of each; and
</P>
<P>(iii) Proof gallons of distilled spirits derived from eligible flavors;
</P>
<P>(g) A notation to indicate when spirits are being transferred in bond from a production facility to another distilled spirits plant;
</P>
<P>(h) The identification of the conveyance;
</P>
<P>(i) The identity of the seals, locks, or other devices affixed to the conveyance or package (permanent seals affixed to a conveyance that remain intact need not be recorded on the transfer record when a permanent record is maintained);
</P>
<P>(j) The date of transfer; and
</P>
<P>(k) The signature and title of the consignor, with a penalty-of-perjury statement as prescribed in § 19.45.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.621" NODE="27:1.0.1.1.15.22.230.40" TYPE="SECTION">
<HEAD>§ 19.621   Transfer record—consignee's responsibility.</HEAD>
<P>(a) When a proprietor receives wine by transfer in bond from a bonded wine cellar as the consignee, that proprietor must complete the transfer record covering the transfer in accordance with § 24.284 of this chapter.
</P>
<P>(b) When a proprietor receives spirits from an alcohol fuel plant or from customs custody, or receives spirits, denatured spirits, and wines from the bonded premises of another distilled spirits plant as the consignee, that proprietor must record the results of the receipt by including the following on the related transfer record:
</P>
<P>(1) The date of receipt;
</P>
<P>(2) A notation that the securing devices on the conveyance were, or were not, intact on arrival (not applicable to denatured spirits or spirits transferred in unsecured conveyances);
</P>
<P>(3) The gauge of spirits, denatured spirits, or wine showing the tank number, proof (percent of alcohol by volume for wine) and specifications of the weight or volumetric determination of quantity, wine gallons or proof gallons received, and any losses or gains;
</P>
<P>(4) A notation of any excessive in-transit loss, missing packages, tampering, or apparent theft;
</P>
<P>(5) The account into which the spirits, denatured spirits, or wines were deposited (that is, production, storage or processing); and
</P>
<P>(6) The signature and title of the consignee proprietor, with a penalty-of-perjury statement as prescribed in § 19.45.
</P>
<P>(c) When spirits are transferred from customs custody as provided in subpart P of this part, the transfer record must contain the information specified in § 27.138 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.622" NODE="27:1.0.1.1.15.22.230.41" TYPE="SECTION">
<HEAD>§ 19.622   Daily records of wholesale liquor dealer and taxpaid storeroom operations.</HEAD>
<P>(a) <I>General.</I> If a proprietor in connection with plant operations conducts wholesale liquor dealer operations, or operates a taxpaid storeroom on, or in the immediate vicinity of, general plant premises, or operates taxpaid storage premises at another location from which distilled spirits are not sold at wholesale, that proprietor must maintain daily records covering the receipt and disposition of all distilled spirits and wines and all reclosing and relabeling operations at those premises. The proprietor must keep separate records for each of those premises.
</P>
<P>(b) <I>Receipt and disposition records.</I> The records covering receipt and disposition of distilled spirits and wines required under paragraph (a) of this section must show:
</P>
<P>(1) The date of the transaction (or date of discovery in the case of casualty or theft);
</P>
<P>(2) The name and address of each consignor or consignee, as the case may be;
</P>
<P>(3) The brand name;
</P>
<P>(4) The kind of spirits;
</P>
<P>(5) The actual quantity of distilled spirits involved (proof and proof gallons if in packages, wine gallons or liters and proof if in bottles);
</P>
<P>(6) The package identification or serial numbers of the packages involved;
</P>
<P>(7) The name of the producer; and
</P>
<P>(8) The country of origin in the case of imported spirits.
</P>
<P>(c) <I>Case dispositions.</I> In addition to the records required under paragraph (b) of this section, the appropriate TTB officer may, upon notice, require the proprietor to record the case serial numbers for dispositions.
</P>
<P>(d) <I>Reclosing or relabeling.</I> The records of reclosing and relabeling required under paragraph (a) of this section must include:
</P>
<P>(1) The date of the transaction;
</P>
<P>(2) The serial numbers of the cases involved;
</P>
<P>(3) The total number of bottles; and
</P>
<P>(4) The name of the bottler.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5114, 5555)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.623" NODE="27:1.0.1.1.15.22.230.42" TYPE="SECTION">
<HEAD>§ 19.623   Records of inventories.</HEAD>
<P>(a) <I>General.</I> When conducting an inventory required by this part, the proprietor must prepare a record of the inventory taken. The record must include the following:
</P>
<P>(1) The date of the inventory;
</P>
<P>(2) The identity of the container(s);
</P>
<P>(3) The kind and quantity of spirits, denatured spirits, and wines;
</P>
<P>(4) Any losses (whether by theft, voluntary destruction or otherwise), gains or shortages; and
</P>
<P>(5) The proprietor's signature, or the signature of the person taking the inventory, with the penalties of perjury statement as prescribed in § 19.45.
</P>
<P>(b) <I>Overages, gains, or losses.</I> A proprietor must record in the daily records of operations, tank records, dump/batch records, bottling and packaging records, or denaturation records, as appropriate, any overages, gains, or losses disclosed by an inventory.
</P>
<P>(c) <I>Retention.</I> A proprietor must retain inventory records and make them available for inspection by TTB officers.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.624" NODE="27:1.0.1.1.15.22.230.43" TYPE="SECTION">
<HEAD>§ 19.624   Removal of Puerto Rican and Virgin Islands spirits and rum imported from all other areas.</HEAD>
<P>(a) <I>General.</I> A proprietor must maintain separate accounts, in proof gallons, of Puerto Rican spirits having an alcoholic content of at least 92 percent rum, of Virgin Islands spirits having an alcoholic content of at least 92 percent rum, and of rum imported from all other areas removed from the processing account on determination of tax. A proprietor may determine the quantities of spirits in these categories that are contained in products mixed in processing with other alcoholic ingredients by using one of the methods referred to in paragraph (b), (c), or (d) of this section. The proprietor must report these quantities on the monthly report of operations referred to in § 19.632.
</P>
<P>(b) <I>Standard method.</I> For purposes of maintaining the separate accounts referred to in paragraph (a) of this section, a proprietor may determine the quantities of spirits in those specified categories based on the least amount of those spirits that may be used in each product as stated in the approved form TTB F 5110.38, Formula for Distilled Spirits Under the Federal Alcohol Administration Act.
</P>
<P>(c) <I>Averaging method.</I> For purposes of the separate accounts referred to in paragraph (a) of this section, a proprietor may determine the quantities of spirits in those specified categories by computing the average quantity of those spirits contained in all batches of the same product formulation manufactured during the preceding six-month period. The average must be adjusted at the end of each month in order to include only the preceding six-month period.
</P>
<P>(d) <I>Alternative method.</I> If a proprietor wishes to use a method for determining the quantities of spirits as an alternative for a method prescribed in paragraphs (b) or (c) of this section, the proprietor must file an application with the appropriate TTB officer. The written application must specifically describe the proposed alternative method and must explain the reasons for using the alternative method.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5555, 7652)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.625" NODE="27:1.0.1.1.15.22.230.44" TYPE="SECTION">
<HEAD>§ 19.625   Shipping records for spirits and specially denatured spirits withdrawn free of tax.</HEAD>
<P>(a) <I>General.</I> A proprietor must prepare a shipping record when:
</P>
<P>(1) Spirits are withdrawn free of tax in accordance with §§ 19.424(a) through (c);
</P>
<P>(2) Specially denatured spirits are withdrawn free of tax in accordance with §§ 19.424(d) and 19.427; and
</P>
<P>(3) Samples of specially denatured spirits in excess of five gallons are withdrawn in accordance with § 19.427(c);
</P>
<P>(b) <I>Form of record.</I> The shipping record referred to in paragraph (a) of this section may be any commercial document, such as an invoice or bill of lading, so long as it reflects the following information:
</P>
<P>(1) The name and address of the consignor;
</P>
<P>(2) A serial number;
</P>
<P>(3) The date of shipment;
</P>
<P>(4) The name, address, and permit number of the consignee;
</P>
<P>(5) The kind of the spirits;
</P>
<P>(6) The proof of the spirits;
</P>
<P>(7) The formula number(s), for specially denatured spirits;
</P>
<P>(8) The number and size of the shipping containers;
</P>
<P>(9) The package identification numbers or serial numbers of the shipping containers; and
</P>
<P>(10) The total wine gallons (specially denatured spirits) or the total proof gallons (tax-free alcohol).
</P>
<P>(c) <I>Disposition of the shipping record.</I> The proprietor must forward a copy of the shipping record to the company that receives the spirits and must retain a copy for its files.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.626" NODE="27:1.0.1.1.15.22.230.45" TYPE="SECTION">
<HEAD>§ 19.626   Records of distilled spirits shipped to manufacturers of nonbeverage products.</HEAD>
<P>(a) <I>General.</I> When a proprietor ships distilled spirits to a manufacturer of nonbeverage products, the proprietor must prepare a record of the shipment, forward the original to the consignee, and retain a copy.
</P>
<P>(b) <I>Form of record.</I> The record of shipment referred to in paragraph (a) of this section may consist of either the record of tax determination required by § 19.611 or any other document that contains the necessary information specified in paragraph (c) of this section.
</P>
<P>(c) <I>Required information.</I> The record of shipment required under this section must contain the following information:
</P>
<P>(1) The name, address, and registry number of the proprietor;
</P>
<P>(2) The date of shipment;
</P>
<P>(3) The name and address of the consignee;
</P>
<P>(4) The kind, proof, and quantity of distilled spirits in each container;
</P>
<P>(5) The number of shipping containers of each size;
</P>
<P>(6) The package identification numbers or serial numbers of the containers;
</P>
<P>(7) The serial number of the applicable record of tax determination; and
</P>
<P>(8) For distilled spirits containing eligible wine or eligible flavors, the effective tax rate.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.627" NODE="27:1.0.1.1.15.22.230.46" TYPE="SECTION">
<HEAD>§ 19.627   Alternating premises record.</HEAD>
<P>When distilled spirits plant bonded premises are alternated to or from bonded or taxpaid wine, brewery, manufacturer of nonbeverage products, or general premises, under an approved alternation plan described in the plant registration, the proprietor must record in a logbook, or must maintain in commercial records retrievable and available for TTB inspection upon request, the following information:
</P>
<P>(a) The date and hour of the alternation;
</P>
<P>(b) The kind of premises being curtailed, including the plant identification number, if applicable;
</P>
<P>(c) The kind of premises being extended, including the plant identification number, if applicable;
</P>
<P>(d) The identity of the special diagrams in the registration documents depicting the premises before and after the alternation; and
</P>
<P>(e) The purpose of the alternation.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5555)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="231" NODE="27:1.0.1.1.15.22.231" TYPE="SUBJGRP">
<HEAD>Filing Forms and Reports</HEAD>


<DIV8 N="§ 19.631" NODE="27:1.0.1.1.15.22.231.47" TYPE="SECTION">
<HEAD>§ 19.631   Submission of transaction forms.</HEAD>
<P>When required to submit a transaction form to the appropriate TTB officer under this part, the proprietor must submit the form no later than the close of business of the third business day following the day on which the transaction took place.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.632" NODE="27:1.0.1.1.15.22.231.48" TYPE="SECTION">
<HEAD>§ 19.632   Submission of monthly reports.</HEAD>
<P>(a) Each proprietor must submit monthly reports of its distilled spirits plant operations to TTB in accordance with paragraph (b) of this section. The proprietor must submit the original reports to TTB and must retain a copy for its records. The required monthly report forms are as follows:
</P>
<P>(1) Monthly Report of Production Operations, form TTB F 5110.40, except that no report is required when production operations are suspended as provided in § 19.292;
</P>
<P>(2) Monthly Report of Storage Operations, form TTB F 5110.11;
</P>
<P>(3) Monthly Report of Processing Operations, form TTB F 5110.28; and
</P>
<P>(4) Monthly Report of Processing (Denaturing) Operations, form TTB F 5110.43.
</P>
<P>(b) Each proprietor must submit the monthly reports specified in paragraph (a) of this section to the Director, National Revenue Center, not later than the 15th day of the month following the close of the reporting period. A proprietor may submit monthly reports in either paper format or electronically via TTB Pay.gov.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.634" NODE="27:1.0.1.1.15.22.231.49" TYPE="SECTION">
<HEAD>§ 19.634   Computer-generated reports and transaction forms.</HEAD>
<P>TTB will accept computer-generated reports of operations and transaction forms made using a computer printer on plain white paper without preapproval from TTB if they conform to the following standards:
</P>
<P>(a) The computer-generated report or form must approximate the physical layout of the corresponding TTB report or form, although the typeface may vary;
</P>
<P>(b) The text of the computer-generated report or form including each line entry, must exactly match the official TTB report or form; and
</P>
<P>(c) Each penalty of perjury statement specified for the TTB report or form must be reproduced in its entirety.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="W" NODE="27:1.0.1.1.15.23" TYPE="SUBPART">
<HEAD>Subpart W—Production of Vinegar by the Vaporizing Process</HEAD>


<DIV7 N="232" NODE="27:1.0.1.1.15.23.232" TYPE="SUBJGRP">
<HEAD>Vinegar Plants in General</HEAD>


<DIV8 N="§ 19.641" NODE="27:1.0.1.1.15.23.232.1" TYPE="SECTION">
<HEAD>§ 19.641   Application.</HEAD>
<P>(a) <I>In general.</I> This subpart covers the production of vinegar by the vaporizing process. It prescribes rules regarding the qualification, location, construction, and operation of vinegar plants and the maintenance of records of operations at vinegar plants.
</P>
<P>(b) <I>Application of other regulations.</I> As a general rule, the provisions of subparts A through V and subpart X of this part do not apply to vinegar plants using the vaporizing process. However, the following sections do apply to vinegar plants using the vaporizing process: § 19.1 (definitions); § 19.11 (right of entry and examination); § 19.12 (furnishing facilities and assistance); § 19.52 (restriction on locations of plants); § 19.55 (other businesses); § 19.79 (registry of stills); § 19.573 (location of required records); § 19.574 (availability of records); § 19.575 (retention of records); and § 19.576 (preservation of records).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5501-5505)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="233" NODE="27:1.0.1.1.15.23.233" TYPE="SUBJGRP">
<HEAD>Qualification, Construction, and Equipment Requirements for Vinegar Plants</HEAD>


<DIV8 N="§ 19.643" NODE="27:1.0.1.1.15.23.233.2" TYPE="SECTION">
<HEAD>§ 19.643   Qualification requirements.</HEAD>
<P>Before beginning the business of manufacturing vinegar by the vaporizing process, a person must make written application to the appropriate TTB officer and receive approval of the application from TTB. The application must include:
</P>
<P>(a) The applicant's name and principal business address (including the plant address if different from the applicant's principal business address);
</P>
<P>(b) A description of the plant premises;
</P>
<P>(c) A description of the operations to be conducted; and
</P>
<P>(d) A description of each still, including the name and address of the owner, the kind of still and its capacity, and the purpose for which the still was set up.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5502)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.644" NODE="27:1.0.1.1.15.23.233.3" TYPE="SECTION">
<HEAD>§ 19.644   Changes after original qualification.</HEAD>
<P>If there is any change in the information that was provided in an approved application, the proprietor of the vinegar plant must immediately notify the appropriate TTB officer in writing of the change. The notice must identify the change and the effective date of the change.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5502)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.645" NODE="27:1.0.1.1.15.23.233.4" TYPE="SECTION">
<HEAD>§ 19.645   Notice of permanent discontinuance of business.</HEAD>
<P>If the proprietor of a vinegar plant decides to permanently discontinue operations, the proprietor must so notify the appropriate TTB officer in writing. The proprietor must include in the notice a statement regarding the status of each still.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5502)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.646" NODE="27:1.0.1.1.15.23.233.5" TYPE="SECTION">
<HEAD>§ 19.646   Construction and equipment requirements.</HEAD>
<P>The proprietor of a vinegar plant must construct and equip the plant to ensure that:
</P>
<P>(a) The distilled spirits vapors that are separated by the vaporizing process from the mash are condensed only by introducing them into the water or other liquid used in making the vinegar; and
</P>
<P>(b) The distilled spirits produced are accurately accounted for and are secure from unlawful removal from the premises or from unauthorized use.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5502)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="234" NODE="27:1.0.1.1.15.23.234" TYPE="SUBJGRP">
<HEAD>Rules for Operating Vinegar Plants</HEAD>


<DIV8 N="§ 19.647" NODE="27:1.0.1.1.15.23.234.6" TYPE="SECTION">
<HEAD>§ 19.647   Authorized operations.</HEAD>
<P>After approval of an application by TTB, a plant qualified for the production of vinegar may only:
</P>
<P>(a) Produce vinegar by the vaporizing process; and
</P>
<P>(b) Produce distilled spirits of 30° of proof or less for use in the manufacture of vinegar on the vinegar plant premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5501)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.648" NODE="27:1.0.1.1.15.23.234.7" TYPE="SECTION">
<HEAD>§ 19.648   Conduct of operations.</HEAD>
<P>A vinegar manufacturer qualified under this subpart may:
</P>
<P>(a) Separate by a vaporizing process the distilled spirits from a mash; and
</P>
<P>(b) Condense the distilled spirits vapors by introducing them into the water or other liquid to make the vinegar.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5504)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.649" NODE="27:1.0.1.1.15.23.234.8" TYPE="SECTION">
<HEAD>§ 19.649   Restrictions on alcohol content.</HEAD>
<P>No person may remove from the vinegar plant premises vinegar or other fluid or any other material containing more than 2 percent alcohol by volume.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5504)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="235" NODE="27:1.0.1.1.15.23.235" TYPE="SUBJGRP">
<HEAD>Required Records for Vinegar Plants</HEAD>


<DIV8 N="§ 19.650" NODE="27:1.0.1.1.15.23.235.9" TYPE="SECTION">
<HEAD>§ 19.650   Daily records.</HEAD>
<P>Each manufacturer of vinegar by the vaporizing process must keep accurate and complete daily records of production operations. It is not necessary to create records to satisfy this requirement if the records kept by the manufacturer in the ordinary course of business contain all required information. The required information consists of the following:
</P>
<P>(a) The kind and quantity of fermenting or distilling materials received on the premises;
</P>
<P>(b) The kind and quantity of materials fermented or mashed;
</P>
<P>(c) The proof gallons of distilled spirits produced;
</P>
<P>(d) The proof gallons of distilled spirits used in the manufacture of vinegar;
</P>
<P>(e) The wine gallons of vinegar produced; and
</P>
<P>(f) The wine gallons of vinegar removed from the premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5504)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="236" NODE="27:1.0.1.1.15.23.236" TYPE="SUBJGRP">
<HEAD>Liability for Distilled Spirits Tax</HEAD>


<DIV8 N="§ 19.651" NODE="27:1.0.1.1.15.23.236.10" TYPE="SECTION">
<HEAD>§ 19.651   Liability for distilled spirits tax.</HEAD>
<P>The distilled spirits excise tax imposed by 26 U.S.C. 5001 must be paid on any distilled spirits produced in, or removed from, the premises of a vinegar plant in violation of law or regulations.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5505)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="X" NODE="27:1.0.1.1.15.24" TYPE="SUBPART">
<HEAD>Subpart X—Distilled Spirits for Fuel Use</HEAD>


<DIV8 N="§ 19.661" NODE="27:1.0.1.1.15.24.237.1" TYPE="SECTION">
<HEAD>§ 19.661   Scope.</HEAD>
<P>This subpart covers the establishment and operation of alcohol fuel plants.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV7 N="237" NODE="27:1.0.1.1.15.24.237" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 19.662" NODE="27:1.0.1.1.15.24.237.2" TYPE="SECTION">
<HEAD>§ 19.662   Definitions.</HEAD>
<P>As used in this subpart, the following terms have the meanings indicated.
</P>
<P><I>Alcohol fuel plant.</I> A special type of distilled spirits plant authorized under 26 U.S.C. 5181 and established under this subpart solely for producing, processing, and storing, and using or distributing distilled spirits to be used exclusively for fuel use.
</P>
<P><I>Bonded premises.</I> The premises of an alcohol fuel plant where distilled spirits are produced, processed, and stored, and used or distributed as described in the application for alcohol fuel producer permit. The term includes the premises of small alcohol fuel plants exempt from bonding requirements under § 19.673(e).
</P>
<P><I>Fuel alcohol.</I> Distilled spirits that have been made unfit for beverage use at an alcohol fuel plant as provided in this subpart.
</P>
<P><I>Large plant.</I> An alcohol fuel plant that produces (including receives) more than 500,000 proof gallons of spirits per calendar year.
</P>
<P><I>Make unfit for beverage use.</I> Add materials to distilled spirits that will preclude their beverage use without impairing their quality for fuel use as prescribed and authorized by the provisions of this subpart.
</P>
<P><I>Medium plant.</I> An alcohol fuel plant that produces (including receives) more than 10,000 but not more than 500,000 proof gallons of spirits per calendar year.
</P>
<P><I>Permit.</I> The document issued pursuant to 26 U.S.C. 5181 and this subpart authorizing the person named to engage in business as an alcohol fuel plant.
</P>
<P><I>Plant.</I> An alcohol fuel plant.
</P>
<P><I>Proprietor.</I> The person qualified under this subpart to operate an alcohol fuel plant.
</P>
<P><I>Small plant.</I> An alcohol fuel plant that produces (including receives) not more than 10,000 proof gallons of spirits per calendar year.
</P>
<P><I>Spirits or distilled spirits.</I> The substance known as ethyl alcohol, ethanol, or spirits of wine in any form (including all dilutions and mixtures thereof, from whatever source or by whatever process produced), but not fuel alcohol unless specifically stated. The term does not include spirits produced from petroleum, natural gas, or coal.
</P>
<P><I>Transfer in bond.</I> The transfer of spirits between alcohol fuel plants or between a distilled spirits plant qualified under 26 U.S.C. 5171 and an alcohol fuel plant.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.663" NODE="27:1.0.1.1.15.24.237.3" TYPE="SECTION">
<HEAD>§ 19.663   Application of other provisions.</HEAD>
<P>The provisions of 26 U.S.C. chapter 51 and the regulations in subparts A through W of this part do not apply to alcohol fuel plants except for the following:
</P>
<P>(a) 26 U.S.C. 5181;
</P>
<P>(b) The definitions contained in § 19.1, unless the same term is defined in this subpart;
</P>
<P>(c) Any provision incorporated by reference in this subpart;
</P>
<P>(d) Any provision requiring the payment of tax; and
</P>
<P>(e) Any provision applicable to distilled spirits that deals with penalty, seizure, or forfeiture.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.665" NODE="27:1.0.1.1.15.24.237.4" TYPE="SECTION">
<HEAD>§ 19.665   Alternate methods or procedures.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may approve the use of an alternate method or procedure that varies from the regulatory requirements in this subpart or from any regulatory requirements in subparts A through W of this part that have been incorporated by reference in this subpart. The appropriate TTB officer may approve the use of an alternate method or procedure only if the proprietor shows good cause for its use and the alternate method or procedure:
</P>
<P>(1) Is not contrary to law;
</P>
<P>(2) Will not have the effect of merely waiving an existing regulatory requirement;
</P>
<P>(3) Is consistent with the purpose and effect of the method or procedure prescribed in this subpart;
</P>
<P>(4) Provides equal security to the revenue; and
</P>
<P>(5) Will not cause an increase in cost to the Government and will not hinder TTB's administration of this subpart.
</P>
<P>(b) <I>Exceptions.</I> TTB will not authorize the use of an alternate method or procedure relating to the giving of any bond, or to the assessment, payment, or collection of tax.
</P>
<P>(c) <I>Prior approvals.</I> Alternate methods or procedures in effect prior to April 18, 2011, which are not contrary to the regulations in this part, are preserved until renewed unless revoked by operation of law due to the enactment of law that is contrary to the alternate method or procedure.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.666" NODE="27:1.0.1.1.15.24.237.5" TYPE="SECTION">
<HEAD>§ 19.666   Application for and use of an alternate method or procedure.</HEAD>
<P>(a) <I>Application.</I> If a proprietor wishes to use an alternate method or procedure as described in § 19.665, the proprietor must submit a written letterhead application to the appropriate TTB officer for approval. The application must identify the method or procedure specified in the regulation, must describe the proposed alternate method or procedure in detail, and must explain why the alternate method or procedure is needed.
</P>
<P>(b) <I>Approval and use.</I> The proprietor may not use an alternate method or procedure until the appropriate TTB officer has in writing approved the proprietor's letterhead application. During the period that the proprietor is authorized to use the alternate method or procedure, the proprietor must comply with any conditions imposed on its use by TTB. TTB may withdraw the approval to use the alternate method or procedure if TTB finds that the revenue is jeopardized, that the alternate method or procedure hinders effective administration of the laws or regulations, that the proprietor has violated any of the conditions imposed by TTB, or that the circumstances that gave rise to the need for the alternate method or procedure no longer exist.
</P>
<P>(c) <I>Retention.</I> The proprietor must retain each alternate method or procedure approval as part of the proprietor's records and must make the approval available for examination by TTB officers upon request.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.667" NODE="27:1.0.1.1.15.24.237.6" TYPE="SECTION">
<HEAD>§ 19.667   Emergency variations from requirements.</HEAD>
<P>(a) <I>Application.</I> A proprietor may request emergency approval of the use of a method or procedure relating to construction, equipment, and methods of operation that represents a variance from the requirements of this subpart or from any regulatory requirement in subparts A through W of this part that have been incorporated by reference in this subpart. When a proprietor wishes to use an emergency method or procedure, the proprietor must submit a written letterhead application to the appropriate TTB officer for approval; the proprietor may send the application via regular mail, email, or facsimile transmission. The application must describe the proposed emergency method or procedure and the emergency situation it will address. For purposes of this section, an emergency is considered to exist only if it results from a weather or other natural event or from an accident or other event not involving an intentional act on the part of the proprietor.
</P>
<P>(b) <I>Approval.</I> The appropriate TTB officer may approve in writing the use of an emergency method or procedure if the proprietor demonstrates that an emergency exists and the proposed method or procedure:
</P>
<P>(1) Is not contrary to law;
</P>
<P>(2) Is necessary to address the emergency situation;
</P>
<P>(3) Will afford the same security and protection to the revenue as intended by the regulations; and
</P>
<P>(4) Will not hinder the effective administration of this subpart.
</P>
<P>(c) <I>Terms of emergency method or procedure approval and use.</I> (1) The proprietor may not use an emergency method or procedure until the application has been approved by TTB except when the emergency method or procedure requires immediate implementation to correct a situation that threatens life or property. In a situation involving a threat to life or property, the proprietor may implement the corrective action, immediately notify the appropriate TTB officer by telephone of the action and then file the required written application as soon as possible. Use of the emergency method or procedure must conform to any conditions specified in the approval.
</P>
<P>(2) The proprietor must retain the emergency method or procedure approval as part of the proprietor's records and must make the approval available for examination by TTB officers upon request.
</P>
<P>(3) The emergency method or procedure will automatically terminate when the situation that created the emergency no longer exists. TTB may withdraw the approval to use the emergency method or procedure if TTB finds that the revenue is jeopardized, that the emergency method or procedure hinders effective administration of the laws or regulations, or that the proprietor has failed to follow any of the conditions specified in the approval. When use of the emergency method or procedure terminates, the proprietor must revert to full compliance with all applicable regulations.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="238" NODE="27:1.0.1.1.15.24.238" TYPE="SUBJGRP">
<HEAD>Liability for Taxes</HEAD>


<DIV8 N="§ 19.669" NODE="27:1.0.1.1.15.24.238.7" TYPE="SECTION">
<HEAD>§ 19.669   Distilled spirits taxes.</HEAD>
<P>(a) Proprietors may withdraw distilled spirits free of tax from an alcohol fuel plant if the spirits are withdrawn exclusively for fuel use in accordance with this subpart. However, TTB will require payment of the tax if the spirits are diverted to beverage use or to another use not authorized by this subpart.
</P>
<P>(b) The following provisions of this part apply to distilled spirits for fuel use:
</P>
<P>(1) Imposition of tax liability (§§ 19.222, 19.223, and 19.225);
</P>
<P>(2) Assessment of tax (§§ 19.253 and 19.254); and
</P>
<P>(3) Claims for tax (§§ 19.262 and 19.263).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5001, 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.670" NODE="27:1.0.1.1.15.24.238.8" TYPE="SECTION">
<HEAD>§ 19.670   Dealer registration and recordkeeping.</HEAD>
<P>An alcohol fuel plant that sells spirits that have not been rendered unfit for beverage use is subject to the requirements of subpart H of this part, except that the reference in § 19.202 to “subpart D” should be taken to refer to subpart X.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="239" NODE="27:1.0.1.1.15.24.239" TYPE="SUBJGRP">
<HEAD>Obtaining a Permit</HEAD>


<DIV8 N="§ 19.672" NODE="27:1.0.1.1.15.24.239.9" TYPE="SECTION">
<HEAD>§ 19.672   Types of plants.</HEAD>
<P>There are three types of alcohol fuel plants: Small plants, medium plants, and large plants. All alcohol fuel plants are classified according to the amount of spirits that they will produce and receive during each calendar year. When applying for a permit, an applicant should apply for the type of permit that fits the applicant's needs based on the type of alcohol fuel plant the applicant intends to operate.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.673" NODE="27:1.0.1.1.15.24.239.10" TYPE="SECTION">
<HEAD>§ 19.673   Small plant permit applications.</HEAD>
<P>(a) <I>General.</I> Any person wishing to establish a small plant must file form TTB F 5110.74, Application and Permit for an Alcohol Fuel Producer Under 26 U.S.C. 5181, with the appropriate TTB officer. Except as otherwise provided in § 19.674(d), a person may not commence operations before issuance of the permit.
</P>
<P>(b) <I>Application information.</I> The applicant for a small plant permit must include the following information with the application:
</P>
<P>(1) Name and mailing address of the applicant, and the location of the plant if not the same as the mailing address;
</P>
<P>(2) A diagram of the plant premises;
</P>
<P>(3) A statement regarding ownership of the premises. If the premises are not owned by the applicant, the owner's consent for access by TTB officers must be furnished;
</P>
<P>(4) A description of the stills on the premises and a statement of the maximum capacity of each;
</P>
<P>(5) A description of the materials from which spirits will be produced; and
</P>
<P>(6) A description of the security measures to be used to protect the premises, buildings, and equipment where spirits are produced, processed, and stored.
</P>
<P>(c) <I>Information already on file.</I> If any of the information required by this section is already on file with TTB and the information is accurate and complete, the applicant may advise the appropriate TTB officer that the information on file is incorporated by reference and made part of the application, unless the applicant will not conduct bona fide production operations.
</P>
<P>(d) <I>Additional information.</I> When required by the appropriate TTB officer, the applicant must furnish, as part of the application for a permit under this section, any additional information required by TTB to determine whether the application should be approved.
</P>
<P>(e) <I>Bonds.</I> The applicant is not required to provide a bond in order to establish a small plant, unless the applicant will not conduct bona fide production operations. Plants for the receipt of spirits without production must furnish a bond in accordance with § 19.699 with a penal sum as prescribed in § 19.700. The appropriate TTB officer must approve the bond before issuance of the permit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.674" NODE="27:1.0.1.1.15.24.239.11" TYPE="SECTION">
<HEAD>§ 19.674   TTB action on small plant applications.</HEAD>
<P>(a) <I>Notice of receipt.</I> Within 15 days of receipt of an application for a small plant permit, the appropriate TTB officer will send a written notice of receipt to the applicant. The notice will include a statement as to whether the application meets the requirements of § 19.673. If the application does not meet the requirements of § 19.673, the appropriate TTB officer will return the application to the applicant, and a new 15-day period will commence upon receipt of an amended or corrected application.
</P>
<P>(b) <I>Action on application.</I> Within 45 days from the date that the appropriate TTB officer sent the applicant a notice of receipt of a completed application for a small plant permit, the appropriate TTB officer will either issue the permit or give notice in writing to the applicant stating in detail the reason that a permit will not be issued. Denial of an application will not prejudice any later application for a permit by the same applicant.
</P>
<P>(c) <I>Failure to give notice.</I> If the notice of receipt required by paragraph (a) is not sent, and the applicant has a receipt indicating that the appropriate TTB officer received the application, the 45-day period provided for in paragraphs (b) and (d) of this section will commence on the fifteenth day after the date the appropriate TTB officer received the application.
</P>
<P>(d) <I>Presumption of approval.</I> If, within 45 days from the date of the notice to the applicant of receipt of a completed application for a small plant permit, the appropriate TTB officer has not notified the applicant of issuance of the permit or denial of the application, the application will be deemed approved and the applicant may proceed as if a permit had been issued.
</P>
<P>(e) <I>Limitation.</I> The provisions of paragraphs (a) and (c) of this section apply only to the first application submitted for any one small plant in any calendar quarter and to an amended or corrected first application.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.675" NODE="27:1.0.1.1.15.24.239.12" TYPE="SECTION">
<HEAD>§ 19.675   Medium plant permit applications.</HEAD>
<P>(a) <I>General.</I> Any person wishing to establish a medium plant must file form TTB F 5110.74, Application and Permit for an Alcohol Fuel Producer Under 26 U.S.C. 5181, with the appropriate TTB officer.
</P>
<P>(b) <I>Application information.</I> The applicant for a medium plant permit must include the following information with the application:
</P>
<P>(1) Name and mailing address of the applicant, and the location of the plant if not the same as the mailing address;
</P>
<P>(2) A diagram of the plant premises;
</P>
<P>(3) A statement regarding ownership of the premises. If the premises are not owned by the applicant, the owner's consent for access by TTB officers must be furnished;
</P>
<P>(4) A description of the stills on the premises and a statement of the maximum capacity of each;
</P>
<P>(5) A description of the materials from which spirits will be produced;
</P>
<P>(6) A description of the security measures to be used to protect the premises, buildings, and equipment where spirits are produced, processed, and stored;
</P>
<P>(7) A statement of the maximum total proof gallons of spirits that will be produced and received during a calendar year;
</P>
<P>(8) Information identifying the principal persons involved in the business. This identifying information must include each person's name, address, title, social security number, date of birth, and place of birth;
</P>
<P>(9) A statement indicating whether or not the applicant or any other principal person involved in the business has been convicted of a felony or misdemeanor under Federal or State law. The statement may exclude convictions for misdemeanor traffic violations; and
</P>
<P>(10) A statement of the amount and source of funds invested in the business.
</P>
<P>(c) <I>Bond.</I> The applicant for a medium plant permit must provide a bond in accordance with § 19.699 with a sufficient penal sum as prescribed in § 19.700. The applicant must submit the bond on form TTB F 5110.56, Distilled Spirits Bond, and the appropriate TTB officer must approve the bond before issuance of the permit.
</P>
<P>(d) <I>Information already on file.</I> If any of the information required by this section is already on file with TTB and the information is accurate and complete, the applicant may advise the appropriate TTB officer that the information on file is incorporated by reference and made part of the application.
</P>
<P>(e) <I>Additional information.</I> When required by the appropriate TTB officer, the applicant must furnish, as part of the application for a permit under this section, any additional information required by TTB to determine whether the application should be approved.
</P>
<P>(f) <I>Approval of permit.</I> The applicant may not commence operations before approval of the application and issuance of the medium plant permit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.676" NODE="27:1.0.1.1.15.24.239.13" TYPE="SECTION">
<HEAD>§ 19.676   Large plant permit applications.</HEAD>
<P>(a) <I>General.</I> Any person wishing to establish a large plant must file form TTB F 5110.74, Application and Permit for an Alcohol Fuel Producer Under 26 U.S.C. 5181, with the appropriate TTB officer.
</P>
<P>(b) <I>Application information.</I> The applicant for a large plant permit must include the following information with the application:
</P>
<P>(1) Name and mailing address of the applicant, and the location of the plant if not the same as the mailing address;
</P>
<P>(2) A diagram of the plant premises;
</P>
<P>(3) A statement regarding ownership of the premises. If the premises are not owned by the applicant, the owner's consent for access by TTB officers must be furnished;
</P>
<P>(4) A description of the stills on the premises and a statement of the maximum capacity of each;
</P>
<P>(5) A description of the materials from which spirits will be produced;
</P>
<P>(6) A description of the security measures to be used to protect the premises, buildings, and equipment where spirits are produced, processed, and stored;
</P>
<P>(7) A statement of the maximum total proof gallons of spirits that will be produced and received during a calendar year;
</P>
<P>(8) Information identifying the principal persons involved in the business. This identifying information must include each person's name, address, title, social security number, date of birth, and place of birth;
</P>
<P>(9) A statement indicating whether or not the applicant or any of the principal persons involved in the business has been convicted of a felony or misdemeanor under Federal or State law. The statement may exclude convictions for misdemeanor traffic violations;
</P>
<P>(10) A statement of the amount and source of funds invested in the business; and
</P>
<P>(11) A statement identifying the type of business organization and the persons having an ownership interest in the business. The applicant must support this statement by providing the information specified in § 19.677.
</P>
<P>(c) <I>Bond.</I> The applicant for a large plant permit must provide a bond in accordance with § 19.699 with a sufficient penal sum as prescribed in § 19.700. The applicant must submit the bond on form TTB F 5110.56, Distilled Spirits Bond, and the appropriate TTB officer must approve the bond before issuance of the permit.
</P>
<P>(d) <I>Power of attorney.</I> The applicant for a large plant permit, or the proprietor of the plant if different from the applicant, must execute and file with the appropriate TTB officer form TTB F 5000.8, Power of Attorney, for each person authorized to sign or act on behalf of the proprietor unless that authority has been furnished elsewhere in the application.
</P>
<P>(e) <I>Information already on file.</I> If any of the information required by this section is already on file with TTB and the information is accurate and complete, the applicant may advise the appropriate TTB officer that the information on file is incorporated by reference and made part of the application.
</P>
<P>(f) <I>Additional information.</I> When required by the appropriate TTB officer, the applicant must furnish as part of the application for a permit under this section, any additional information required by TTB to determine whether the application should be approved.
</P>
<P>(g) <I>Approval of permit.</I> The applicant may not commence operations before approval of the application and issuance of the large plant permit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.677" NODE="27:1.0.1.1.15.24.239.14" TYPE="SECTION">
<HEAD>§ 19.677   Large plant applications—organizational documents.</HEAD>
<P>In addition to the information required by § 19.676, any person who wants to establish a large plant must provide with the application the documents and other information specified in paragraphs (a) through (d) of this section, as applicable, and must make those and related documents available for inspection by TTB as provided in paragraph (e) of this section.
</P>
<P>(a) <I>Corporate documents.</I> If the applicant is a corporation, the applicant must provide the following:
</P>
<P>(1) The corporate charter or a certificate of corporate existence or incorporation;
</P>
<P>(2) A list of officers and directors with their names and addresses, other than officers and directors who will have no responsibilities in connection with the operation of the alcohol fuel plant;
</P>
<P>(3) Certified minutes or extracts of board of directors meetings, showing those individuals authorized to sign for the corporation;
</P>
<P>(4) A statement showing the number of shares of each class of stock or other basis of ownership, authorized and outstanding, and the voting rights of the respective owners or holders; and
</P>
<P>(5) A list of the offices or positions, the incumbents of which are authorized by the articles of incorporation or the board of directors to act on behalf of the proprietor or to sign the proprietor's name.
</P>
<P>(b) <I>Partnership documents.</I> If the applicant is a partnership, the applicant must provide a copy of the articles of partnership or association, or certificate of partnership or association if required to be filed by any State, county, or municipality.
</P>
<P>(c) <I>Limited liability company/limited liability partnership documents.</I> If the applicant is a limited liability company or limited liability partnership or other entity recognized by law as a person, the applicant must provide a copy of the articles of organization, the operating agreement and the names and addresses of all members and managers.
</P>
<P>(d) <I>Statement of interest.</I> (1) The application must include the names and addresses of the 10 persons that have the largest stock ownership, by stock class, or other interest in the corporation, limited liability company/limited liability partnership, or other legal entity, and the nature and amount of the stock or other interest of each, whether the interest is recorded in the name of the interested party or in the name of another for the interested party. If a corporation is wholly owned or controlled by another corporation, the appropriate TTB officer may request that the applicant furnish the same information for persons of the parent corporation.
</P>
<P>(2) In the case of an individual owner or a partnership, the application must include the name and address of each person interested in the large plant, whether the interest is recorded in the name of the interested party or in the name of another for the interested party.
</P>
<P>(e) <I>Availability of documents.</I> An applicant must make available to any appropriate TTB officer upon request all originals of documents submitted under this section and any additional related organizational documents such as articles of incorporation, bylaws, operating agreements and State certifications.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.678" NODE="27:1.0.1.1.15.24.239.15" TYPE="SECTION">
<HEAD>§ 19.678   Criteria for issuance of permit.</HEAD>
<P>As a general rule, the appropriate TTB officer will issue an alcohol fuel plant permit to any person who completes the required application for a permit and, when required, furnishes a bond. However, the appropriate TTB officer may begin proceedings to deny an application for a permit, in accordance with part 71 of this chapter, if the appropriate TTB officer determines that—
</P>
<P>(a) The applicant (including, in the case of a corporation, any officer, director, or principal stockholder, and, in the case of a partnership, a partner) is, by reason of business experience, financial standing, or trade connections, not likely to maintain operations in compliance with 26 U.S.C. chapter 51, or the regulations issued thereunder;
</P>
<P>(b) The applicant failed to disclose any material information required with the application, or has made any false statement as to any material fact in connection with the application; or
</P>
<P>(c) The premises where the applicant proposes to conduct the operations are not adequate to protect the revenue.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.679" NODE="27:1.0.1.1.15.24.239.16" TYPE="SECTION">
<HEAD>§ 19.679   Duration of permit.</HEAD>
<P>The proprietor of an alcohol fuel plant may conduct the operations authorized by the permit on a continuing basis unless:
</P>
<P>(a) The proprietor voluntarily surrenders the permit;
</P>
<P>(b) TTB suspends or revokes the permit pursuant to § 19.697; or
</P>
<P>(c) The permit is automatically terminated under its own terms or in accordance with § 19.684.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.680" NODE="27:1.0.1.1.15.24.239.17" TYPE="SECTION">
<HEAD>§ 19.680   Registration of stills.</HEAD>
<P>The description of stills provided with the application for an alcohol fuel plant permit under this subpart will fulfill the requirement to register a still under § 29.55 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5179, 5181)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="240" NODE="27:1.0.1.1.15.24.240" TYPE="SUBJGRP">
<HEAD>Changes to Permit Information</HEAD>


<DIV8 N="§ 19.683" NODE="27:1.0.1.1.15.24.240.18" TYPE="SECTION">
<HEAD>§ 19.683   Changes affecting permit applications.</HEAD>
<P>(a) <I>General.</I> If there is a change relating to any of the information contained in, or considered a part of, the application on form TTB F 5110.74, Application and Permit for an Alcohol Fuel Producer Under 26 U.S.C. 5181, the proprietor must amend the information previously submitted within 30 days of the change unless another time period is specified in this subpart.
</P>
<P>(b) <I>Amended TTB F 5110.74.</I> Except when a letterhead application or letterhead notice procedure is followed under this subpart, the proprietor must submit an amended application to the appropriate TTB officer on TTB F 5110.74 within 30 days of a change referred to in paragraph (a) of this section if the change affects the terms and conditions of the permit.
</P>
<P>(c) <I>Letterhead applications.</I> For the changes specified in §§ 19.685(c), 19.686, and 19.690 of this subpart, the proprietor may submit a letterhead application to the appropriate TTB officer for a change instead of filing an amended TTB F 5110.74. A letterhead application must be on letterhead signed by an authorized representative of the permit holder. The letterhead application must identify the alcohol fuel plant to which the application applies. The letterhead application change is subject to TTB approval. The appropriate TTB officer may, at any time, require that the proprietor submit an amended application on TTB F 5110.74 if administrative difficulties occur as a result of the letterhead application.
</P>
<P>(d) <I>Letterhead Notices.</I> For the changes specified in §§ 19.687, 19.695, and 19.691 of this subpart only a letterhead notice to the appropriate TTB officer is required. A letterhead notice must be on letterhead signed by an authorized representative of the permit holder. A letterhead notice does not require approval action by TTB. The appropriate TTB officer may, at any time, require that the proprietor submit an amended application on TTB F 5110.74 if administrative difficulties occur as a result of the letterhead notice.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5271, 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.684" NODE="27:1.0.1.1.15.24.240.19" TYPE="SECTION">
<HEAD>§ 19.684   Automatic termination of permits.</HEAD>
<P>(a) <I>Permits not transferable.</I> An alcohol fuel plant permit is not transferable and, except as otherwise provided in paragraph (b) of this section, will automatically terminate if:
</P>
<P>(1) The operations that are authorized by the permit are leased, sold, or transferred to another person; or
</P>
<P>(2) The permit holder is dissolved on a date certain or upon an event specified by the laws of the State where the permit holder operates.
</P>
<P>(b) <I>Corporations.</I> In the case of a corporation holding a permit under this subpart, if actual or legal control of that corporation changes, directly or indirectly, whether by reason of change in stock ownership or control (in the permittee corporation or in any other corporation), by operation of law, or in any other manner, the permit may remain in effect until the expiration of 30 days after the change, whereupon the permit will automatically terminate. However, if operations are to be continued after the change in control, and an application for a new permit is filed within 30 days of the change, the outstanding permit may remain in effect until final action is taken on the new application. When final action is taken on the application, the outstanding permit will automatically terminate.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.685" NODE="27:1.0.1.1.15.24.240.20" TYPE="SECTION">
<HEAD>§ 19.685   Change in type of alcohol fuel plant.</HEAD>
<P>(a) <I>Small plants.</I> If the proprietor of a small plant intends to increase production (including receipts) to more than 10,000 proof gallons of spirits per calendar year, the proprietor must first obtain an amended permit by filing an application for a medium plant or a large plant, as appropriate, under §§ 19.675 or 19.676. If any of the required information is already on file with TTB, that information may be incorporated by reference in the new application. The proprietor must also provide a new or strengthening bond in accordance with §§ 19.699 and 19.700.
</P>
<P>(b) <I>Medium plants.</I> If the proprietor of a medium plant intends to increase production (including receipts) to more than 500,000 proof gallons of spirits per calendar year, the proprietor must first obtain an amended permit by filing an application for a large plant under § 19.676. If any of the required information is already on file with TTB, that information may be incorporated by reference in the new application. If the penal sum of the proprietor's current bond is below the amount specified for the new production level, the proprietor must obtain a new or strengthening bond in accordance with § 19.700.
</P>
<P>(c) <I>Curtailment of activities.</I> A proprietor of a medium or large plant who curtails operations to a level whereby the proprietor is eligible to requalify as a small or medium plant may so qualify by submitting a letterhead application to the appropriate TTB officer for approval. If the appropriate TTB officer approves the application, the proprietor automatically will be relieved of those regulatory requirements that apply only to the superseded qualification. In addition, in the case of a change to small plant status, the proprietor may be allowed to terminate the bond in accordance with the procedure set forth in § 19.170 of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.686" NODE="27:1.0.1.1.15.24.240.21" TYPE="SECTION">
<HEAD>§ 19.686   Change in name of proprietor.</HEAD>
<P>When there is a change in the name of the individual, firm, corporation, or other entity holding the permit, the proprietor must file an application to amend the permit on form TTB F 5110.74, Application and Permit for an Alcohol Fuel Producer Under 26 U.S.C. 5181, or file a letterhead application to amend the permit within 30 days of the change. The proprietor is not required to file a new bond or consent of surety in this case.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5271, 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.687" NODE="27:1.0.1.1.15.24.240.22" TYPE="SECTION">
<HEAD>§ 19.687   Changes in officers, directors, members, managers, or principal persons.</HEAD>
<P>If there is a change in the list of officers, directors, members, managers, or other principal persons furnished under the provisions of § 19.675, § 19.676, or § 19.677, the proprietor must submit a letterhead notice to the appropriate TTB officer within 30 days of the change. The letterhead notice must identify each change and must include the following identifying information for each new officer, director, member, manager, or other principal person: name, address, title, social security number, date of birth, and place of birth.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.688" NODE="27:1.0.1.1.15.24.240.23" TYPE="SECTION">
<HEAD>§ 19.688   Change in proprietorship.</HEAD>
<P>(a) <I>General.</I> If there is a change in proprietorship at an alcohol fuel plant, the following requirements apply to the outgoing proprietor and to the new, incoming proprietor:
</P>
<P>(1) The outgoing proprietor must comply with the notice requirements of § 19.695; and
</P>
<P>(2) The incoming successor proprietors must—
</P>
<P>(i) File and obtain a permit on form TTB F 5110.74, Application and Permit for an Alcohol Fuel Producer Under 26 U.S.C. 5181; and
</P>
<P>(ii) File the required bond, if any.
</P>
<P>(b) <I>Fiduciary responsibilities.</I> A successor to the proprietorship of an alcohol fuel plant who is an administrator, executor, receiver, trustee, assignee, or other fiduciary must comply with paragraph (a)(2) of this section. In addition, the following rules apply to a successor who is a fiduciary:
</P>
<P>(1) The successor may furnish a consent of surety to extend the terms of the outgoing proprietor's bond instead of filing a new bond;
</P>
<P>(2) The successor may incorporate by reference in the application on TTB F 5110.74 any information that is still valid and that was contained in the application filed by the outgoing proprietor;
</P>
<P>(3) The successor must furnish a certified copy of the order of the court or other pertinent document appointing the successor as a fiduciary; and
</P>
<P>(4) The effective dates of the qualifying documents filed will be the date of the court order, the date specified in the court order for assuming control or the date control is assumed if the fiduciary was not appointed by a court.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.689" NODE="27:1.0.1.1.15.24.240.24" TYPE="SECTION">
<HEAD>§ 19.689   Continuing partnerships.</HEAD>
<P>(a) If there is a death or insolvency of a partner in the business that holds a permit under this subpart, the surviving partner or partners may continue to operate under the permit if:
</P>
<P>(1) The partnership is not immediately terminated under the laws of the particular State but continues until the winding up of the partnership affairs is complete;
</P>
<P>(2) The surviving partner or partners have the exclusive right to control and possession of the partnership assets for purpose of liquidation and settlement; and
</P>
<P>(3) In the case of a plant required to file a bond, a consent of surety is filed under which the surety and the surviving partner or partners agree to remain liable on the bond.
</P>
<P>(b) If the surviving partner or partners acquire the business upon settlement of the partnership, the surviving partner or partners must file an application in their own name and receive a permit in accordance with § 19.688(a).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.690" NODE="27:1.0.1.1.15.24.240.25" TYPE="SECTION">
<HEAD>§ 19.690   Change in location.</HEAD>
<P>If there is a change in the location of the alcohol fuel plant or of the area included within the plant premises, the proprietor must:
</P>
<P>(a) File an application to amend the permit on form TTB F 5110.74, Application and Permit for an Alcohol Fuel Producer Under 26 U.S.C. 5181, or a letterhead application to amend the permit;
</P>
<P>(b) File a new bond on form TTB F 5110.56 or a consent of surety on form TTB F 5000.18 if a bond is required; and
</P>
<P>(c) Not begin operations at the new location prior to approval of the amended application and issuance of the amended permit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.691" NODE="27:1.0.1.1.15.24.240.26" TYPE="SECTION">
<HEAD>§ 19.691   Change in address without change in location or area.</HEAD>
<P>If there is a change in the address of an alcohol fuel plant that does not involve a change in the location or area of the plant itself, the proprietor must submit a letterhead notice to the appropriate TTB officer within 30 days of the change.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5172, 5181)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="241" NODE="27:1.0.1.1.15.24.241" TYPE="SUBJGRP">
<HEAD>Alternating Proprietorship</HEAD>


<DIV8 N="§ 19.692" NODE="27:1.0.1.1.15.24.241.27" TYPE="SECTION">
<HEAD>§ 19.692   Qualifying for alternating proprietorship.</HEAD>
<P>(a) <I>General.</I> A proprietor may alternate use of an alcohol fuel plant or part of an alcohol fuel plant with one or more proprietors qualified under this subpart. In order to do so, each proprietor must file and receive approval of the applications and bonds required by this subpart. Each proprietor must also conduct operations and keep records in accordance with this subpart. Where operations by alternating proprietors will be limited to part of an alcohol fuel plant, that part must be suitable for qualification as a separate alcohol fuel plant.
</P>
<P>(b) <I>Qualifying documents.</I> Each person desiring to operate an alcohol fuel plant as an alternating proprietor must file the following with the appropriate TTB officer:
</P>
<P>(1) An application on form TTB F 5110.74, Application and Permit for an Alcohol Fuel Producer Under 26 U.S.C. 5181, to cover the proposed alternation;
</P>
<P>(2) A diagram of the premises, in duplicate, showing the arrangement for the alternation of the premises. Where operations by alternating proprietors are limited to parts of an alcohol fuel plant, a diagram designating the parts that are to be alternated must be submitted. A diagram must be submitted for each arrangement under which the premises will be operated. The diagram must be in sufficient detail to establish the boundaries of the alcohol fuel plant or any part of it that will be involved in the alternation;
</P>
<P>(3) Evidence of an existing operations bond (if any), consent of surety, or new operations bond to cover the proposed alternation of premises; and
</P>
<P>(4) Any additional information required by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5181, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.693" NODE="27:1.0.1.1.15.24.241.28" TYPE="SECTION">
<HEAD>§ 19.693   Operating requirements for alternating proprietorships.</HEAD>
<P>(a) <I>Alternation journal.</I> Once the applications submitted under § 19.692 have been approved by the appropriate TTB officer, the alcohol fuel plant, or parts of the alcohol fuel plant, may be alternated. The outgoing and incoming proprietor must make entries in an alternation journal when the alcohol fuel plant, or parts of it, are alternated. The outgoing and incoming proprietor must enter the following information in the alternation journal:
</P>
<P>(1) Name or trade name of the proprietor;
</P>
<P>(2) Alcohol fuel plant permit number;
</P>
<P>(3) Date and time of alternation;
</P>
<P>(4) Quantity of spirits transferred in proof gallons.
</P>
<P>(b) <I>Commencement of operations.</I> Except for spirits transferred to the incoming proprietor, the outgoing proprietor must remove all spirits from areas, rooms, or buildings to be alternated, prior to the effective date and time shown in the alternation journal. Fuel alcohol may be transferred to the incoming proprietor or may be retained by the outgoing proprietor in areas, rooms, or buildings to be alternated when the areas, rooms, or buildings are secured with locks, the keys to which are in the custody of the outgoing proprietor. Whenever operation of the areas, rooms, or buildings is to be resumed by a proprietor following suspension of operations by an alternating proprietor, the outgoing proprietor (except the proprietor of a small plant not required to file a bond) must furnish a consent of surety on form TTB F 5000.18 to continue in effect the operations bond covering their operations. The proprietor must do this prior to alternating the premises.
</P>
<P>(c) <I>Records.</I> Each alternating proprietor must maintain separate records and submit separate reports in accordance with § 19.720. Entries in each proprietor's records must be in accordance with §§ 19.714 through 19.718 of this subpart. The following requirements also apply:
</P>
<P>(1) Each alternating proprietor must show all transfers of spirits in the records;
</P>
<P>(2) The outgoing proprietor must show in its production and disposition records the quantity of spirits and fuel alcohol transferred to the incoming proprietor;
</P>
<P>(3) The incoming proprietor must show in their receipt record the quantity of spirits received by transfer;
</P>
<P>(4) Each proprietor must include spirits transferred in the determinations of alcohol fuel plant size and bond amounts; and
</P>
<P>(5) The provisions of § 19.685 regarding change of alcohol fuel plant type apply to each proprietor.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5171, 5181, 5271)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="242" NODE="27:1.0.1.1.15.24.242" TYPE="SUBJGRP">
<HEAD>Discontinuance of Business and Permit Suspension or Revocation</HEAD>


<DIV8 N="§ 19.695" NODE="27:1.0.1.1.15.24.242.29" TYPE="SECTION">
<HEAD>§ 19.695   Notice of permanent discontinuance.</HEAD>
<P>When a proprietor permanently discontinues operations as an alcohol fuel plant, the proprietor must file a letterhead notice with the appropriate TTB officer along with the following:
</P>
<P>(a) The original copy of the alcohol fuel plant permit and the proprietor's request that the permit be cancelled;
</P>
<P>(b) A written statement disclosing whether or not all spirits, including fuel alcohol, have been lawfully disposed of, and whether or not there are any spirits in transit to the premises; and
</P>
<P>(c) A report on form TTB 5110.75, Alcohol Fuel Plant Report, covering the discontinued operations, with the report marked “Final Report”.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5271)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.697" NODE="27:1.0.1.1.15.24.242.30" TYPE="SECTION">
<HEAD>§ 19.697   Permit suspension or revocation.</HEAD>
<P>TTB will conduct proceedings to revoke or suspend an alcohol fuel plant permit in accordance with the procedures set forth in part 71 of this chapter if the appropriate TTB officer has a reason to believe that a person holding a permit:
</P>
<P>(a) Has not complied in good faith with the provisions of 26 U.S.C. chapter 51 or the regulations issued thereunder;
</P>
<P>(b) Has violated the conditions of the permit;
</P>
<P>(c) Has made a false statement as to any material fact in the application for the permit;
</P>
<P>(d) Has failed to disclose any material information required to be furnished under this part;
</P>
<P>(e) Has violated or conspired to violate any law of the United States relating to intoxicating liquor;
</P>
<P>(f) Has been convicted of any offense under title 26 U.S.C. punishable as a felony or of any conspiracy to commit such offense; or
</P>
<P>(g) Has not engaged in any of the operations authorized by the permit for a period of more than 2 years.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5271)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="243" NODE="27:1.0.1.1.15.24.243" TYPE="SUBJGRP">
<HEAD>Bonds</HEAD>


<DIV8 N="§ 19.699" NODE="27:1.0.1.1.15.24.243.31" TYPE="SECTION">
<HEAD>§ 19.699   General bond requirements.</HEAD>
<P>(a) <I>Operations bond.</I> Any person who plans to establish a large plant, a medium plant, or a small plant without production operations must provide an operations bond on form TTB F 5110.56, Distilled Spirits Bond, in duplicate, with the original permit application. If a proprietor fails to pay any liability covered by the bond, TTB may seek payment from the proprietor, from the surety on the bond, or from both the proprietor and the surety. Additional provisions applicable to bonds for alcohol fuel plants are found in subpart F of this part in §§ 19.155 through 19.157 and §§ 19.167 through 19.173.


</P>
<P>(b) <I>Corporate surety.</I> A company that issues bonds is called a “corporate surety.” Proprietors must obtain the surety bonds required by this subpart from a corporate surety approved by the Secretary of the Treasury. The Department of the Treasury publishes a list of approved corporate surety companies in Treasury Department Circular 570, Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies. Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).






</P>
<P>(c) <I>Alternative to a corporate surety.</I> A proprietor may also guarantee payment under a bond without using a corporate surety, by filing a bond that guarantees payment of the liability by pledging and depositing one or more acceptable negotiable securities having a par value (face amount) equal to or greater than the penal sums of the required bonds. Should the proprietor fail to pay one or more of the guaranteed liabilities, TTB may take action to sell the deposited securities to satisfy the debt. Pledged securities will be released to the proprietor if there are no outstanding liabilities when the bond is terminated; the provisions of § 19.173 apply to the release of pledged securities under this subpart. A list of securities acceptable as collateral in lieu of surety bonds is available from the Bureau of the Fiscal Service. Current information and guidance from the Bureau of the Fiscal Service Web site may be found at <I>https://www.fiscal.treasury.gov</I>. 




</P>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-146, 82 FR 1123, Jan. 4, 2017; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.700" NODE="27:1.0.1.1.15.24.243.32" TYPE="SECTION">
<HEAD>§ 19.700   Amount of bond.</HEAD>
<P>A proprietor must determine the penal sum of the bond based on the total quantity of distilled spirits that will be produced and received during a calendar year. The method for computing required bond amounts is as follows:
</P>
<P>(a) <I>Small plants without production operations.</I> A proprietor that operates a small plant that receives not more than 10,000 proof gallons of spirits per year and does not conduct bona fide production operations must provide a bond with a penal sum of $1,000.
</P>
<P>(b) <I>Medium plants.</I> A proprietor that operates a medium plant that produces and receives more than 10,000 but not more than 20,000 proof gallons of spirits per year must provide a bond with a penal sum of at least $2,000.00. The proprietor must increase the penal sum of the bond by $1,000 for each additional 10,000 gallons, or fraction of 10,000 gallons, (over 20,000 gallons) that will be produced or received. The maximum bond for a medium plant is $50,000.00, representing the penal sum applicable to 500,000 proof gallons. The following table provides examples of required minimum bond amounts:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Annual Production and Receipts in Proof Gallons
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">More than
</TH><TH class="gpotbl_colhed" scope="col">But not
<br/>over
</TH><TH class="gpotbl_colhed" scope="col">Amount of
<br/>bond
</TH></TR><TR><TD align="center" class="gpotbl_cell" scope="row">10,000</TD><TD align="center" class="gpotbl_cell">20,000</TD><TD align="center" class="gpotbl_cell">$2,000
</TD></TR><TR><TD align="center" class="gpotbl_cell" scope="row">20,000</TD><TD align="center" class="gpotbl_cell">30,000</TD><TD align="center" class="gpotbl_cell">3,000
</TD></TR><TR><TD align="center" class="gpotbl_cell" scope="row">90,000</TD><TD align="center" class="gpotbl_cell">100,000</TD><TD align="center" class="gpotbl_cell">10,000
</TD></TR><TR><TD align="center" class="gpotbl_cell" scope="row">190,000</TD><TD align="center" class="gpotbl_cell">200,000</TD><TD align="center" class="gpotbl_cell">20,000
</TD></TR><TR><TD align="center" class="gpotbl_cell" scope="row">490,000</TD><TD align="center" class="gpotbl_cell">500,000</TD><TD align="center" class="gpotbl_cell">50,000</TD></TR></TABLE></DIV></DIV>
<P>(c) <I>Large plants.</I> A proprietor that operates a large plant that produces and receives more than 500,000 but not more than 510,000 proof gallons of spirits per year must provide a bond with a penal sum of at least $52,000.00. The proprietor must increase the penal sum of the bond by $2,000 for each additional 10,000 gallons, or fraction of 10,000 gallons (over 510,000 gallons) that will be produced and received. The maximum bond for a large plant is $200,000.00. The following table provides examples of required minimum bond amounts:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Annual Production and Receipts in Proof Gallons
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">More than
</TH><TH class="gpotbl_colhed" scope="col">But not
<br/>over
</TH><TH class="gpotbl_colhed" scope="col">Amount of
<br/>bond
</TH></TR><TR><TD align="center" class="gpotbl_cell" scope="row">500,000</TD><TD align="center" class="gpotbl_cell">510,000</TD><TD align="center" class="gpotbl_cell">$52,000
</TD></TR><TR><TD align="center" class="gpotbl_cell" scope="row">510,000</TD><TD align="center" class="gpotbl_cell">520,000</TD><TD align="center" class="gpotbl_cell">54,000
</TD></TR><TR><TD align="center" class="gpotbl_cell" scope="row">740,000</TD><TD align="center" class="gpotbl_cell">750,000</TD><TD align="center" class="gpotbl_cell">100,000
</TD></TR><TR><TD align="center" class="gpotbl_cell" scope="row">990,000</TD><TD align="center" class="gpotbl_cell">1,000,000</TD><TD align="center" class="gpotbl_cell">150,000
</TD></TR><TR><TD align="center" class="gpotbl_cell" scope="row">1,240,000</TD><TD align="center" class="gpotbl_cell">—</TD><TD align="center" class="gpotbl_cell">200,000</TD></TR></TABLE></DIV></DIV>
<P>(d) <I>New or strengthening bonds.</I> A proprietor must obtain a new bond or a strengthening bond in accordance with § 19.167 if the level of production and receipts at the alcohol fuel plant increases so that the current bond no longer is in the amount of at least the required minimum penal sum.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5173, 5181)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="244" NODE="27:1.0.1.1.15.24.244" TYPE="SUBJGRP">
<HEAD>Requirements for Construction, Equipment, and Security</HEAD>


<DIV8 N="§ 19.703" NODE="27:1.0.1.1.15.24.244.33" TYPE="SECTION">
<HEAD>§ 19.703   Construction and equipment.</HEAD>
<P>A proprietor must construct and arrange the buildings and enclosures where distilled spirits will be produced, processed, or stored so as to ensure adequate security and deter the diversion of spirits. Distilling equipment must be constructed to prevent unauthorized removal of spirits, from the point where distilled spirits come into existence until production is complete and the quantity of spirits has been determined. A proprietor also must equip tanks and other vessels so that they may be locked and must provide a method for determining the quantity of spirits in each vessel.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.704" NODE="27:1.0.1.1.15.24.244.34" TYPE="SECTION">
<HEAD>§ 19.704   Security.</HEAD>
<P>(a) <I>General.</I> The proprietor of an alcohol fuel plant must provide adequate security measures at the alcohol fuel plant in order to protect against the unauthorized removal of spirits.
</P>
<P>(b) <I>Storage.</I> The proprietor must store spirits in a building or a storage tank, or within an enclosure, that will be kept locked when operations are not being conducted.
</P>
<P>(c) <I>Additional security.</I> The appropriate TTB officer may require additional security measures for the premises if the alcohol fuel plant's security is found to be inadequate. The additional measures required may depend upon past security problems experienced at the alcohol fuel plant, the volume of alcohol produced, the risk to tax revenue, and any safety requirements. Additional security measures may include, but are not limited to:
</P>
<P>(1) A fence around the alcohol fuel plant;
</P>
<P>(2) Flood lights;
</P>
<P>(3) A security or alarm system;
</P>
<P>(4) A guard service; or
</P>
<P>(5) Locked or barred windows.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5178, 5202)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="245" NODE="27:1.0.1.1.15.24.245" TYPE="SUBJGRP">
<HEAD>TTB Rights and Authorities</HEAD>


<DIV8 N="§ 19.706" NODE="27:1.0.1.1.15.24.245.35" TYPE="SECTION">
<HEAD>§ 19.706   Supervision of operations.</HEAD>
<P>TTB may assign appropriate TTB officers to supervise operations at an alcohol fuel plant at any time. Appropriate TTB officers may exercise certain rights and authorities at an alcohol fuel plant. Those rights and authorities are set forth in the following provisions of this part: § 19.11 (right of entry and examination, § 19.12 (furnishing facilities and assistance), § 19.13 (assignment of officers and supervision of operations), § 19.17 (detention of containers), § 19.18 (samples for the United States), and § 19.282 (general requirements for gauging and measuring equipment).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5202, 5203, 5204, 5207, 5213, 5555)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="246" NODE="27:1.0.1.1.15.24.246" TYPE="SUBJGRP">
<HEAD>Accounting for Spirits</HEAD>


<DIV8 N="§ 19.709" NODE="27:1.0.1.1.15.24.246.36" TYPE="SECTION">
<HEAD>§ 19.709   Gauging.</HEAD>
<P>(a) <I>Gauging equipment and methods.</I> A proprietor of an alcohol fuel plant must perform periodic gauges of the distilled spirits and fuel alcohol at the alcohol fuel plant. The procedures for the gauging of spirits set forth in part 30 of this chapter also apply under this subpart. In addition, the following rules for the gauging of distilled spirits and fuel alcohol under this subpart also apply:
</P>
<P>(1) The proprietor must determine the proof of spirits by using a glass cylinder, hydrometer and thermometer;
</P>
<P>(2) The proprietor must ensure that hydrometers, thermometers, and other equipment used to determine proof, volume, or weight are accurate;
</P>
<P>(3) The proprietor may determine the quantity of spirits or fuel alcohol either by volume or weight;
</P>
<P>(4) To determine quantity by volume, the proprietor may use a tank or receptacle with a calibrated sight glass installed, a calibrated dipstick, conversion charts, an accurate mass flow meter, or other devices approved by the appropriate TTB officer;
</P>
<P>(5) Unless the proprietor chooses to do so, the proprietor is not required to determine the proof of fuel alcohol manufactured, on hand, or removed; and
</P>
<P>(6) The proprietor may account for fuel alcohol in wine gallons;
</P>
<P>(b) <I>Verification by TTB.</I> TTB officers may at any time verify the accuracy of the gauging equipment used.
</P>
<P>(c) <I>When gauges are required.</I> A proprietor must gauge spirits and record the results in the records required by § 19.718, at the following times:
</P>
<P>(1) Upon completing the production of distilled spirits;
</P>
<P>(2) On the receipt of spirits at the plant;
</P>
<P>(3) Prior to the addition of materials to render the spirits unfit for beverage use;
</P>
<P>(4) Before withdrawal from plant premises or other disposition of spirits (including fuel alcohol); and
</P>
<P>(5) When spirits are inventoried.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201, 5204)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.710" NODE="27:1.0.1.1.15.24.246.37" TYPE="SECTION">
<HEAD>§ 19.710   Inventory of spirits.</HEAD>
<P>A proprietor of an alcohol fuel plant must take a physical inventory of all spirits and fuel alcohol on the bonded premises at the end of each calendar year. The proprietor must record the results of this physical inventory in the records required by § 19.718.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5201)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="247" NODE="27:1.0.1.1.15.24.247" TYPE="SUBJGRP">
<HEAD>Recordkeeping</HEAD>


<DIV8 N="§ 19.714" NODE="27:1.0.1.1.15.24.247.38" TYPE="SECTION">
<HEAD>§ 19.714   General requirements for records.</HEAD>
<P>A proprietor of an alcohol fuel plant must maintain records that accurately reflect the operations and transactions at the alcohol fuel plant. The records must contain sufficient information to allow appropriate TTB officers to determine the quantities of spirits produced, received, stored, or processed and to verify that all spirits have been used or otherwise lawfully disposed of.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.715" NODE="27:1.0.1.1.15.24.247.39" TYPE="SECTION">
<HEAD>§ 19.715   Format of records.</HEAD>
<P>(a) Proprietors of alcohol fuel plants are not required under this subpart to keep their records in any particular format or media. A proprietor may keep required records on paper, microfilm or microfiche, diskette, or other electronic medium. However, the records that a proprietor maintains must be readily retrievable in, or convertible to, hardcopy format for review by TTB officers as necessary.
</P>
<P>(b) Required records may consist of commercial documents maintained in the ordinary course of business, rather than records prepared expressly to meet the requirements of this subpart, if those documents:
</P>
<P>(1) Contain all of the information required by this subpart;
</P>
<P>(2) Reflect general standards of clarity and accuracy; and
</P>
<P>(3) Can be readily understood by TTB personnel.
</P>
<P>(c) Where the format or arrangement of a record is such that the information is not readily understandable, the appropriate TTB officer may require the proprietor to present the information in a format or arrangement that will facilitate the review of the information.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.716" NODE="27:1.0.1.1.15.24.247.40" TYPE="SECTION">
<HEAD>§ 19.716   Maintenance and retention of records.</HEAD>
<P>(a) A proprietor of an alcohol fuel plant may keep the records required by this subpart at the alcohol fuel plant where operations or transactions occur, or at a central recordkeeping location maintained by the proprietor. If the proprietor keeps the required records at any location other than the alcohol fuel plant where operations or transactions occur, the proprietor must submit a letterhead notice to the appropriate TTB officer indicating the location where the records are kept. The proprietor must make those records available at the alcohol fuel plant premises to which they relate during normal business hours for the purpose of a TTB audit or inspection. The proprietor must produce those records at that location within two days of notice by the appropriate TTB officer.
</P>
<P>(b) A proprietor of an alcohol fuel plant must maintain any records required by this subpart for a period of not less than three years from the date of creation of the record or the date of the last entry required to be made in the record, whichever is later.
</P>
<P>(c) A proprietor of an alcohol fuel plant may be required to reproduce records in order to maintain their readability and availability for inspection. Whenever any record might become unreadable or otherwise unsuitable for its intended or continued use, the proprietor is responsible for reproducing the record by a process that accurately and legibly reproduces the original record.
</P>
<P>(d) For records kept on electronic media, the provisions of § 19.574 apply.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.717" NODE="27:1.0.1.1.15.24.247.41" TYPE="SECTION">
<HEAD>§ 19.717   Time for making entries in records.</HEAD>
<P>A proprietor of an alcohol fuel plant must record entries required by this subpart in the proprietor's records on a daily basis, as the transaction or operation occurs, but not later than the close of the next business day after the occurrence of the transaction or operation. However, if a proprietor prepares supplemental or auxiliary records when an operation or transaction occurs and those records contain all of the information required under this subpart, the proprietor may make entries in the required records not later than the close of business on the third business day following the day on which the transaction or operation occurred.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.718" NODE="27:1.0.1.1.15.24.247.42" TYPE="SECTION">
<HEAD>§ 19.718   Required records.</HEAD>
<P>A proprietor of an alcohol fuel plant must maintain records that accurately reflect the operations and transactions occurring at the plant. These records must include production, receipt, manufacture, and disposition records.
</P>
<P>(a) <I>Production, receipt, and manufacture records.</I> The proprietor must maintain records of all production, receipts, and manufacture at the alcohol fuel plant. This includes records of:
</P>
<P>(1) The quantity and proof of spirits produced;
</P>
<P>(2) The kind and quantity of materials used to produce spirits, if the proprietor is a medium plant or large plant;
</P>
<P>(3) The proof gallons of spirits on hand;
</P>
<P>(4) The proof gallons of spirits received. The proprietor may use a copy of the consignor's invoice or other document received with the shipment if the proprietor records the date of receipt and quantity received;
</P>
<P>(5) The quantities and types of materials added to each lot of spirits to render the spirits unfit for beverage use; and
</P>
<P>(6) The quantity of fuel alcohol manufactured. Fuel alcohol may be recorded in wine gallons.
</P>
<P>(b) <I>Disposition records.</I> The proprietor must maintain records of all dispositions of spirits and fuel alcohol removed from the alcohol fuel plant. Records for dispositions of fuel alcohol and spirits must be maintained separately. Required records include:
</P>
<P>(1) The amount of fuel alcohol removed. The commercial record or other document required by § 19.729 will constitute the required record;
</P>
<P>(2) The amount of spirits transferred. For all spirits transferred to another qualified distilled spirits plant or alcohol fuel plant the proprietor must maintain the commercial invoice or other documentation required by §§ 19.405 and 19.734;
</P>
<P>(3) Record of other dispositions. If the proprietor has other dispositions of spirits or fuel alcohol such as losses, destruction, or redistillation, the proprietor must keep a record of those dispositions. The record must include the quantity of spirits (in proof gallons) or fuel alcohol (in wine gallons), the date of disposition, and the purpose for which used or the nature of any other disposition;
</P>
<P>(4) Testing records. If the proprietor conducts testing and analysis of samples of spirits or fuel alcohol in accordance with § 19.749, the proprietor must keep a record of the date of the testing and the amount of spirits (in proof gallons) or fuel alcohol (in wine gallons) tested.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.719" NODE="27:1.0.1.1.15.24.247.43" TYPE="SECTION">
<HEAD>§ 19.719   Spirits made unfit for beverage use in the production process.</HEAD>
<P>If an alcohol fuel plant makes spirits unfit for beverage use before the spirits are removed from the production process, for example by the in-line addition of materials or by the addition of materials to receptacles where spirits are first deposited, the proprietor must determine the quantity and proof of the spirits produced for purposes of the production records by:
</P>
<P>(a) Determining the proof of each lot of spirits by procuring a representative sample of each lot, prior to the addition of any materials for rendering the spirits unfit for beverage use, and then proofing the spirits; and
</P>
<P>(b) Determining the quantity (proof gallons) of spirits produced by subtracting the quantity of materials added to render the spirits unfit for beverage use from the quantity of fuel alcohol (in gallons) produced and multiplying the resulting figure by the proof of the spirits divided by 100.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5207)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="248" NODE="27:1.0.1.1.15.24.248" TYPE="SUBJGRP">
<HEAD>Reports</HEAD>


<DIV8 N="§ 19.720" NODE="27:1.0.1.1.15.24.248.44" TYPE="SECTION">
<HEAD>§ 19.720   Reports.</HEAD>
<P>Each proprietor of an alcohol fuel plant must submit to the appropriate TTB officer an annual report of operations on form TTB F 5110.75, Alcohol Fuel Plant Report, for each calendar year. The proprietor must submit this report by January 30 following the end of the calendar year.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="249" NODE="27:1.0.1.1.15.24.249" TYPE="SUBJGRP">
<HEAD>Redistillation</HEAD>


<DIV8 N="§ 19.722" NODE="27:1.0.1.1.15.24.249.45" TYPE="SECTION">
<HEAD>§ 19.722   General rules for redistillation of spirits or fuel alcohol.</HEAD>
<P>The proprietor of an alcohol fuel plant may receive and redistill spirits. The proprietor may also receive fuel alcohol for redistillation and recovery of the spirits contained in the fuel alcohol. The following general rules apply to redistillation activities at an alcohol fuel plant:
</P>
<P>(a) The proprietor must separately identify in the required records any spirits and fuel alcohol received for redistillation;
</P>
<P>(b) The proprietor must keep all spirits and fuel alcohol received for redistillation physically separate from each other and from other spirits and fuel alcohol until they are redistilled;
</P>
<P>(c) Spirits recovered by redistillation will be treated the same as spirits that have not been redistilled; and
</P>
<P>(d) All provisions of this subpart and 26 U.S.C. chapter 51, including provisions regarding liability for tax applicable to spirits when originally produced, apply to spirits recovered by distillation.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.723" NODE="27:1.0.1.1.15.24.249.46" TYPE="SECTION">
<HEAD>§ 19.723   Effect of redistillation on plant size and bond amount.</HEAD>
<P>The redistillation of spirits at an alcohol fuel plant may affect the alcohol fuel plant size category and the resulting bond penal sum amount. The following rules apply in this regard:
</P>
<P>(a) Spirits originally produced by the alcohol fuel plant and subsequently recovered by redistillation are not includable in the determination of plant size and bond amount; and
</P>
<P>(b) Spirits originally produced elsewhere and subsequently recovered by redistillation at the alcohol fuel plant are includable in the determination of plant size and bond amount.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.724" NODE="27:1.0.1.1.15.24.249.47" TYPE="SECTION">
<HEAD>§ 19.724   Records of redistillation.</HEAD>
<P>(a) Except as otherwise provided in paragraph (b) of this section, a proprietor must record in a separate record the following information for spirits and fuel alcohol received at the alcohol fuel plant for redistillation:
</P>
<P>(1) Date of receipt;
</P>
<P>(2) Identification as spirits or fuel alcohol;
</P>
<P>(3) Quantity received;
</P>
<P>(4) From whom received;
</P>
<P>(5) Reason for redistillation;
</P>
<P>(6) Date redistilled; and
</P>
<P>(7) The quantity of spirits recovered by redistillation.
</P>
<P>(b) A proprietor may use a document required by § 19.729 or § 19.734 or any other commercial record covering spirits or fuel alcohol received in lieu of the record required by paragraph (a) of this section, provided that it contains all of the information required by paragraph (a) of this section, including any such information added to it by the proprietor.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5223)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="250" NODE="27:1.0.1.1.15.24.250" TYPE="SUBJGRP">
<HEAD>Rules for Use, Withdrawal, and Transfer of Spirits</HEAD>


<DIV8 N="§ 19.726" NODE="27:1.0.1.1.15.24.250.48" TYPE="SECTION">
<HEAD>§ 19.726   Prohibited uses, transfers, and withdrawals.</HEAD>
<P>No person may withdraw, use, sell or otherwise dispose of distilled spirits, including fuel alcohol, produced under this subpart for any purpose other than for fuel use. The law imposes criminal penalties on any person who withdraws, uses, sells, or otherwise disposes of distilled spirits, including fuel alcohol, produced under this subpart for other than fuel use.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5601)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.727" NODE="27:1.0.1.1.15.24.250.49" TYPE="SECTION">
<HEAD>§ 19.727   Use on premises.</HEAD>
<P>A proprietor may use spirits as a fuel on the premises of the alcohol fuel plant where they were produced without having to make them unfit for beverage use. A proprietor using spirits in this way must keep the applicable records concerning such use as provided in § 19.718(b)(3).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.728" NODE="27:1.0.1.1.15.24.250.50" TYPE="SECTION">
<HEAD>§ 19.728   Withdrawal of spirits.</HEAD>
<P>Before withdrawal of spirits from the premises of an alcohol fuel plant, the proprietor must render the spirits unfit for beverage use as provided in this subpart. Spirits rendered unfit for beverage use may be withdrawn free of tax from the alcohol fuel plant premises if they will be used exclusively for fuel.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5214)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.729" NODE="27:1.0.1.1.15.24.250.51" TYPE="SECTION">
<HEAD>§ 19.729   Withdrawal of fuel alcohol.</HEAD>
<P>(a) For each shipment or other removal of fuel alcohol from the alcohol fuel plant premises, the consignor proprietor must prepare a commercial invoice, sales slip, or similar document that shows:
</P>
<P>(1) The date of the withdrawal;
</P>
<P>(2) The quantity of fuel alcohol removed;
</P>
<P>(3) A description of the shipment that includes the number and size of containers, tank trucks, etc.; and
</P>
<P>(4) The name and address of the consignee.
</P>
<P>(b) The consignor proprietor must retain in its records a copy of the document described in paragraph (a) of this section.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="251" NODE="27:1.0.1.1.15.24.251" TYPE="SUBJGRP">
<HEAD>Transfer of Spirits Between Alcohol Fuel Plants</HEAD>


<DIV8 N="§ 19.733" NODE="27:1.0.1.1.15.24.251.52" TYPE="SECTION">
<HEAD>§ 19.733   Authorized transfers between alcohol fuel plants.</HEAD>
<P>A proprietor may remove spirits from the bonded premises of an alcohol fuel plant, including the premises of a small plant, for transfer in bond to another alcohol fuel plant. A proprietor of an alcohol fuel plant may also receive spirits from another alcohol fuel plant. The following conditions apply to such transfers:
</P>
<P>(a) The transfer of spirits must be pursuant to an approved application on form TTB F 5100.16, Application for Transfer of Spirits and/or Denatured Spirits in Bond in accordance with § 19.403;
</P>
<P>(b) Bulk conveyances in which spirits are transferred must be secured with locks, seals, or other devices in accordance with § 19.441;
</P>
<P>(c) It is not necessary to render the spirits unfit for beverage use prior to the transfer;
</P>
<P>(d) The transferred spirits may not be withdrawn, used, sold, or disposed of for other than fuel use; and
</P>
<P>(e) Each proprietor must adhere to the requirements for transfers between alcohol fuel plants prescribed in §§ 19.734 through 19.736, as applicable.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5212)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.734" NODE="27:1.0.1.1.15.24.251.53" TYPE="SECTION">
<HEAD>§ 19.734   Consignor for in-bond shipments.</HEAD>
<P>A proprietor that ships distilled spirits in bond to another alcohol fuel plant is the “consignor” of the shipment. When shipping spirits in bond, the consignor must:
</P>
<P>(a) Ship the spirits pursuant to an approved application on form TTB F 5100.16, Application for Transfer of Spirits and/or Denatured Spirits in Bond;
</P>
<P>(b) Prepare a duplicate commercial invoice or shipping document for each shipment of spirits that includes the following:
</P>
<P>(1) The quantity of the spirits transferred;
</P>
<P>(2) The proof of the spirits transferred;
</P>
<P>(3) A description of the shipment that includes the number and size of drums, barrels, tank trucks, etc.;
</P>
<P>(4) The consignor's name, address, and permit number and the name, address, and permit number of the proprietor of the alcohol fuel plant that will receive the spirits; and
</P>
<P>(5) The serial numbers of seals, locks, or other devices used to secure the shipment; and
</P>
<P>(c) Forward the original invoice or shipping document with the shipment to the proprietor of the receiving alcohol fuel plant and retain a copy in the alcohol fuel plant's records.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5212)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.735" NODE="27:1.0.1.1.15.24.251.54" TYPE="SECTION">
<HEAD>§ 19.735   Reconsignment while in transit.</HEAD>
<P>A consignor may reconsign an in-bond shipment of spirits while the shipment is in transit or upon arrival at the premises of the consignee for any bona fide reason such as when the spirits transferred in bond are found to be unsuitable for the intended purpose or the spirits were shipped in error. The consignor may reconsign the shipment to itself or to another consignee that is qualified to receive the spirits. In either case, an Application for Transfer of Spirits and/or Denatured Spirits in Bond on form TTB F 5100.16 must have been previously approved for the new consignee and must be on file at the alcohol fuel plant. The bond of the new consignee of the spirits will cover the spirits while they are in transit after reconsignment. When reconsigning a shipment, the consignor must notify the original consignee that the transfer has been cancelled and must make a notation on the original invoice or shipping document that the shipment was reconsigned. The consignor must also prepare a new invoice or shipping document for the new consignee and must mark the new invoice or shipping document “reconsignment.”
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5212)


</SECAUTH>
</DIV8>


<DIV8 N="§ 19.736" NODE="27:1.0.1.1.15.24.251.55" TYPE="SECTION">
<HEAD>§ 19.736   Consignee for in-bond shipments.</HEAD>
<P>(a) <I>General.</I> A proprietor that receives spirits in bond from another alcohol fuel plant is the “consignee” of the shipment. When receiving spirits in bond, the consignee must:
</P>
<P>(1) Examine each conveyance and notify the appropriate TTB officer immediately if any of the locks, seals, or other devices that secure each conveyance do not arrive at the premises intact;
</P>
<P>(2) Determine the quantity of spirits received and record the quantity and date of receipt on the invoice or shipping document sent with the shipment; and
</P>
<P>(3) Retain the invoice or shipping document as part of the records required by § 19.718.
</P>
<P>(b) <I>Portable containers.</I> A consignee who receives spirits in barrels, drums, or other portable containers that are not secured by seals or other devices must verify the contents of each container. The consignee must record the quantity received in each container on a list and must attach the list to the invoice or shipping document received with the shipment.
</P>
<P>(c) <I>Bulk conveyances or pipelines.</I> A consignee who receives spirits in bulk conveyances or by pipeline must gauge the spirits received and record the quantity determined on the invoice or shipping document received with the shipment. The appropriate TTB officer may waive the requirement for gauging spirits received by pipeline if requested in writing by the consignee and if there is no jeopardy to the revenue.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5204, 5212)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="252" NODE="27:1.0.1.1.15.24.252" TYPE="SUBJGRP">
<HEAD>Transfer of Spirits to and from Distilled Spirits Plants</HEAD>


<DIV8 N="§ 19.739" NODE="27:1.0.1.1.15.24.252.56" TYPE="SECTION">
<HEAD>§ 19.739   Authorized transfers to or from distilled spirits plants.</HEAD>
<P>Except for spirits produced from petroleum, natural gas, or coal, a proprietor of an alcohol fuel plant may receive spirits in bond from a distilled spirits plant qualified under subpart D of this part. A proprietor of an alcohol fuel plant may also transfer spirits in bond from the alcohol fuel plant to a distilled spirits plant qualified under subpart D of this part. The following conditions apply to such transfers:
</P>
<P>(a) Bulk conveyances in which spirits are transferred must be secured with locks, seals, or other devices in accordance with § 19.441;
</P>
<P>(b) It is not necessary to render the spirits unfit for beverage use prior to the transfer;
</P>
<P>(c) The transferred spirits may not be withdrawn, used, sold, or disposed of for other than fuel use;
</P>
<P>(d) An alcohol fuel plant proprietor transferring spirits filled into portable containers to the bonded premises of a distilled spirits plant must mark the containers as required by § 19.752(b);
</P>
<P>(e) The procedures in §§ 19.403 through 19.406 and § 19.620 apply to the transfer of spirits from an alcohol fuel plant to a distilled spirits plant; and
</P>
<P>(f) The procedures in §§ 19.403, 19.404, 19.405, and 19.407 apply to the transfer of spirits from a distilled spirits plant to an alcohol fuel plant.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5212)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="253" NODE="27:1.0.1.1.15.24.253" TYPE="SUBJGRP">
<HEAD>Receipt of Spirits from Customs Custody</HEAD>


<DIV8 N="§ 19.742" NODE="27:1.0.1.1.15.24.253.57" TYPE="SECTION">
<HEAD>§ 19.742   Authorized transfers from customs custody.</HEAD>
<P>A proprietor of an alcohol fuel plant may withdraw from customs custody spirits imported or brought into the United States in bulk containers and may transfer those spirits without payment of tax to the proprietor's alcohol fuel plant subject to the following conditions:
</P>
<P>(a) The transfer of the spirits may only be to an alcohol fuel plant that is required to file, and has filed, a bond;
</P>
<P>(b) The spirits must not have been produced from petroleum, natural gas, or coal;
</P>
<P>(c) The alcohol fuel plant must further manufacture or process the spirits after receipt;
</P>
<P>(d) The proprietor of the alcohol fuel plant may only redistill or denature the spirits if the imported spirits are 185° or more of proof and will be withdrawn for fuel use; and
</P>
<P>(e) The proprietor of the alcohol fuel plant must follow the procedures for receiving spirits prescribed in § 19.736 and subpart L of part 27 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5232)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="254" NODE="27:1.0.1.1.15.24.254" TYPE="SUBJGRP">
<HEAD>Materials for Making Spirits Unfit for Beverage Use</HEAD>


<DIV8 N="§ 19.746" NODE="27:1.0.1.1.15.24.254.58" TYPE="SECTION">
<HEAD>§ 19.746   Authorized materials.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer determines what materials make spirits unfit for beverage use but do not impair the quality of the spirits for fuel use. Spirits treated with materials authorized under this section will be considered rendered unfit for beverage use and eligible for withdrawal as fuel alcohol.
</P>
<P>(b) <I>Authorized materials.</I> Subject to the specifications in paragraph (c) of this section, proprietors are authorized to render spirits unfit for beverage use by adding to each 100 gallons of spirits any of following materials in the quantities specified:
</P>
<P>(1) Two gallons or more of—
</P>
<P>(i) Gasoline or automotive gasoline (for use in engines that require unleaded gasoline, the Environmental Protection Agency and manufacturers specifications may require that unleaded gasoline be used to render spirits unfit for beverage use);
</P>
<P>(ii) Natural gasoline;
</P>
<P>(iii) Kerosene;
</P>
<P>(iv) Deodorized kerosene;
</P>
<P>(v) Rubber hydrocarbon solvent;
</P>
<P>(vi) Methyl isobutyl ketone;
</P>
<P>(vii) Mixed isomers of nitropropane;
</P>
<P>(viii) Heptane;
</P>
<P>(ix) Ethyl tertiary butyl ether (ETBE);
</P>
<P>(x) Raffinate;
</P>
<P>(xi) Naphtha;
</P>
<P>(xii) Straight run gasoline;
</P>
<P>(xiii) Alkylate;
</P>
<P>(xiv) High octane denaturant blend;
</P>
<P>(xv) Methyl tertiary butyl ether; or
</P>
<P>(xvi) Any combination of the materials listed in paragraphs (b)(1)(i) through (xv) of this section;
</P>
<P>(2) Five gallons or more of Toluene; or
</P>
<P>(3) One-eighth (
<FR>1/8</FR>) of an ounce of denatonium benzoate N.F. and 2 gallons of isopropyl alcohol.
</P>
<P>(c) <I>Specifications.</I> Specifications for the materials listed in paragraph (b) are found in part 21, subpart E, of this chapter.
</P>
<P>(d) <I>Published list.</I> The appropriate TTB officer periodically publishes a list of materials that may be used to make spirits unfit for beverage use in addition to those listed in paragraph (b) of this section. The list can be found at <I>https://www.ttb.gov.</I> The list will specify the material name and quantity required to render spirits unfit for beverage use.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59455, Aug. 30, 2016, as amended by T.D. TTB-196, 89 FR 87939, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 19.747" NODE="27:1.0.1.1.15.24.254.59" TYPE="SECTION">
<HEAD>§ 19.747   Other materials.</HEAD>
<P>If a proprietor wishes to use a material to render spirits unfit for beverage use that is not authorized under § 19.746 or that is not on the published list of materials, the proprietor may submit an application for approval to the appropriate TTB officer. The application must include the name of the material and the quantity of material that the proprietor proposes to add to each 100 gallons of spirits. The appropriate TTB officer may require the proprietor to submit an 8-ounce sample of such material. The proprietor may not use any proposed material until the appropriate TTB officer approves its use. Any material that impairs the quality of the spirits for fuel use will not be approved. The proprietor must retain as part of the records available for inspection by appropriate TTB officers any application approved by the appropriate TTB officer under this section.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="255" NODE="27:1.0.1.1.15.24.255" TYPE="SUBJGRP">
<HEAD>Rules for Taking Samples</HEAD>


<DIV8 N="§ 19.749" NODE="27:1.0.1.1.15.24.255.60" TYPE="SECTION">
<HEAD>§ 19.749   Samples.</HEAD>
<P>The following rules apply to the testing and analysis of samples of spirits and fuel alcohol for purposes of this subpart:
</P>
<P>(a) A proprietor may take samples of spirits and fuel alcohol for on-site testing and analysis at the proprietor's alcohol fuel plant;
</P>
<P>(b) A proprietor may not remove samples of spirits from the premises of the alcohol fuel plant for testing and analysis;
</P>
<P>(c) A proprietor may remove samples of fuel alcohol from the premises of the alcohol fuel plant for testing and analysis at a qualified laboratory;
</P>
<P>(d) A proprietor of an alcohol fuel plant must account for all samples in the record required by § 19.718(b)(4); and
</P>
<P>(e) A proprietor of an alcohol fuel plant must indicate on each container that the spirits or fuel alcohol inside is a sample.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="256" NODE="27:1.0.1.1.15.24.256" TYPE="SUBJGRP">
<HEAD>Marking Requirements</HEAD>


<DIV8 N="§ 19.752" NODE="27:1.0.1.1.15.24.256.61" TYPE="SECTION">
<HEAD>§ 19.752   Marks.</HEAD>
<P>(a) <I>Fuel alcohol.</I> A proprietor of an alcohol fuel plant must place a conspicuous and permanent warning mark or label on each container of 55 gallons or less of fuel alcohol that the proprietor will withdraw from the plant premises. The proprietor must place the mark or label on the head or side of the container and must use plain, legible letters. The proprietor may place other marks or labels on the container if the other marks or labels do not obscure the required warning. The required warning is as follows:
</P>
<EXTRACT>
<HD1>WARNING
</HD1>
<HD1>FUEL ALCOHOL
</HD1>
<HD1>MAY BE HARMFUL OR
</HD1>
<HD1>FATAL IF SWALLOWED</HD1></EXTRACT>
<P>(b) <I>Spirits.</I> If a proprietor intends to transfer barrels, drums, or similar portable containers of spirits to a distilled spirits plant qualified under subpart D of this part, the proprietor must mark or label each container. The proprietor must place the mark or label on the head or side of the container and must use plain, legible letters. The proprietor may place other marks or labels on the container if the other marks or labels do not obscure the required marks or labels. The required mark or label each container must contain the following information:
</P>
<P>(1) Quantity in wine gallons;
</P>
<P>(2) Proof of the spirits;
</P>
<P>(3) Name, address, and permit number of the alcohol fuel plant;
</P>
<P>(4) The words “Spirits—For Alcohol Fuel Use Only”; and
</P>
<P>(5) The serial number of the container. Serial numbers must be assigned as follows—
</P>
<P>(i) Consecutively commencing with “1”;
</P>
<P>(ii) When the numbering system of any series reaches “1,000,000” the proprietor may begin the series again by adding an alphabetical prefix or suffix to the series; and
</P>
<P>(iii) When there is a change in proprietorship or a change in the individual, firm, corporate name, or trade name, the series in use at the time of the change may be continued.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5181, 5206)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="Y" NODE="27:1.0.1.1.15.25" TYPE="SUBPART">
<HEAD>Subpart Y—Paperwork Reduction Act</HEAD>


<DIV8 N="§ 19.761" NODE="27:1.0.1.1.15.25.257.1" TYPE="SECTION">
<HEAD>§ 19.761   OMB control numbers assigned under the Paperwork Reduction Act.</HEAD>
<P>(a) <I>Purpose.</I> This subpart displays the control numbers assigned to information collection requirements in this part by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995, Public Law 104-13.
</P>
<P>(b) <I>Display.</I> The following display identifies each section in this part that contains an information collection requirement and the OMB control number that is assigned to that information collection requirement.
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 1 to Paragraph (<E T="01">b</E>)
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Section
<br/>where
<br/>contained
</TH><TH class="gpotbl_colhed" scope="col">Current OMB
<br/>control
<br/>No.
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.11</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.13</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.26</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.27</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.28</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.33</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.35</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.37</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.54</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.55</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0081
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.56</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.59</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.60</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.71</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.72</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.73</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.74</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.75</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.76</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.77</TD><TD align="right" class="gpotbl_cell">1513-0046
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.78</TD><TD align="right" class="gpotbl_cell">1513-0014
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.79</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.91</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.92</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.93</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.94</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.95</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.97</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.112</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.113</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.113</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.114</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.115</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.116</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.117</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.118</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.119</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.120</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.121</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.122</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.123</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.126</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.127</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.128</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.129</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.130</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.131</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.132</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.133</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.134</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.135</TD><TD align="right" class="gpotbl_cell">1513-0040
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.141</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0044
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.142</TD><TD align="right" class="gpotbl_cell">1513-0044
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.143</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0044
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.154</TD><TD align="right" class="gpotbl_cell">1513-0044
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.155</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.156</TD><TD align="right" class="gpotbl_cell">1513-0014
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.168</TD><TD align="right" class="gpotbl_cell">1513-0013
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.170</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.171</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.172</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.187</TD><TD align="right" class="gpotbl_cell">1513-0080
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.189</TD><TD align="right" class="gpotbl_cell">1513-0080
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.191</TD><TD align="right" class="gpotbl_cell">1513-0080
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.192</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.198</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.201</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0113
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.202</TD><TD align="right" class="gpotbl_cell">1513-0113
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.203</TD><TD align="right" class="gpotbl_cell">1513-0113
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.222</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.225</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.226</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.226</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.227</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.230</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.231</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.233</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.234</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.235</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.236</TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.237</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.238</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.239</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.240</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.242</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.243</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.246</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.247</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.248</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.249</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.253</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.256</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.257</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.261</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.262</TD><TD align="right" class="gpotbl_cell">1513-0030
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.263</TD><TD align="right" class="gpotbl_cell">1513-0030
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.264</TD><TD align="right" class="gpotbl_cell">1513-0030
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.265</TD><TD align="right" class="gpotbl_cell">1513-0030
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.266</TD><TD align="right" class="gpotbl_cell">1513-0030
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.267</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.268</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.269</TD><TD align="right" class="gpotbl_cell">1513-0030
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.281</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.283</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.284</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.286</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.287</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.288</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.289</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.292</TD><TD align="right" class="gpotbl_cell">1513-0044
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.293</TD><TD align="right" class="gpotbl_cell">1513-0047
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.294</TD><TD align="right" class="gpotbl_cell">1513-0047
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.295</TD><TD align="right" class="gpotbl_cell">1513-0047
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.303</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.305</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.306</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.307</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.308</TD><TD align="right" class="gpotbl_cell">1513-0047
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.309</TD><TD align="right" class="gpotbl_cell">1513-0047
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.312</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.322</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.324</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.327</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.329</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.331</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.333</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.343</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.352</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.353</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.354</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.357</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.360</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.362</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.363</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.371</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.372</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.381</TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.383</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.384</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.386</TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.387</TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.388</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.389</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.392</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.393</TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.394</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.402</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.403</TD><TD align="right" class="gpotbl_cell">1513-0038
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.404</TD><TD align="right" class="gpotbl_cell">1513-0038
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.405</TD><TD align="right" class="gpotbl_cell">1513-0038
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.406</TD><TD align="right" class="gpotbl_cell">1513-0038
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.407</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.411</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.414</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.419</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.420</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.425</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.427</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.431</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.434</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.435</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.436</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.441</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.452</TD><TD align="right" class="gpotbl_cell">1513-0030
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.454</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.455</TD><TD align="right" class="gpotbl_cell">1513-0042
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.457</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.459</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.461</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.462</TD><TD align="right" class="gpotbl_cell">1513-0030
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.464</TD><TD align="right" class="gpotbl_cell">1513-0030
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.465</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0083
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.478</TD><TD align="right" class="gpotbl_cell">1513-0080
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.487</TD><TD align="right" class="gpotbl_cell">1513-0048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.513</TD><TD align="right" class="gpotbl_cell">1513-0020
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.571</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.572</TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.573</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.574</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.575</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.576</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.577</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.580</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.581</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.584</TD><TD align="right" class="gpotbl_cell">1513-0047
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.585</TD><TD align="right" class="gpotbl_cell">1513-0047
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.586</TD><TD align="right" class="gpotbl_cell">1513-0047
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.590</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.591</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.592</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.593</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.596</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.597</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.598</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.599</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.600</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.601</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.602</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.603</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.604</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.606</TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.607</TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.611</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.612</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.613</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.614</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.615</TD><TD align="right" class="gpotbl_cell">1513-0045
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.616</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.617</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.618</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.619</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.620</TD><TD align="right" class="gpotbl_cell">1513-0038
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.621</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.623</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.624</TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.626</TD><TD align="right" class="gpotbl_cell">1513-0056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.627</TD><TD align="right" class="gpotbl_cell">1513-0044
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.632</TD><TD align="right" class="gpotbl_cell">1513-0039
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0041
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0047
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0049
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.641</TD><TD align="right" class="gpotbl_cell">1513-0081
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.643</TD><TD align="right" class="gpotbl_cell">1513-0081
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.644</TD><TD align="right" class="gpotbl_cell">1513-0081
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.645</TD><TD align="right" class="gpotbl_cell">1513-0081
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.650</TD><TD align="right" class="gpotbl_cell">1513-0081
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.665</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.666</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.667</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.669</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.670</TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0113
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.673</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.675</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.676</TD><TD align="right" class="gpotbl_cell">1513-0014
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.677</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.680</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.683</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.684</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.685</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.686</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.687</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.688</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.689</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.690</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.692</TD><TD align="right" class="gpotbl_cell">1513-0051
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.695</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.709</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.710</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.714</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.715</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.716</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.717</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.718</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0088
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.719</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.720</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.724</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.727</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.729</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.733</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.734</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.735</TD><TD align="right" class="gpotbl_cell">1513-0038
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.736</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.739</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.746</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.747</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.749</TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell">1513-0052
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19.752</TD><TD align="right" class="gpotbl_cell">1513-0052</TD></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="20" NODE="27:1.0.1.1.16" TYPE="PART">
<HEAD>PART 20—DISTRIBUTION AND USE OF DENATURED ALCOHOL AND RUM
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5001, 5206, 5214, 5271-5275, 5311, 5552, 5555, 5607, 6065, 6109, 7805.


</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 20 appear by T.D. ATF-235, 66 FR 5473, Jan. 19, 2001, and T.D. ATF-463 and T.D. ATF-462, 66 FR 42733, 42736, Aug. 15, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.16.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 20.1" NODE="27:1.0.1.1.16.1.273.1" TYPE="SECTION">
<HEAD>§ 20.1   General.</HEAD>
<P>The regulations in this part relate to denatured distilled spirits and cover the procurement, use, disposition, and recovery of denatured alcohol, specially denatured rum, and articles containing denatured spirits.


</P>
</DIV8>


<DIV8 N="§ 20.2" NODE="27:1.0.1.1.16.1.273.2" TYPE="SECTION">
<HEAD>§ 20.2   Territorial extent.</HEAD>
<P>(a) This part applies to the several States of the United States, the District of Columbia and to denatured spirits and articles coming into the United States from Puerto Rico or the Virgin Islands.
</P>
<P>(b) For the purposes of this part, operations in a foreign-trade zone located in any State of the United States or the District of Columbia are regulated in the same manner as operations in any other part of such State or the District of Columbia.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended (19 U.S.C. 81c))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-274, 53 FR 25156, July 5, 1988, as amended by T.D. TTB-91, 76 FR 5477, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 20.3" NODE="27:1.0.1.1.16.1.273.3" TYPE="SECTION">
<HEAD>§ 20.3   Related regulations.</HEAD>
<P>Regulations related to this part are listed below:
</P>
<EXTRACT>
<FP-1>16 CFR Chapter I—Federal Trade Commission.
</FP-1>
<FP-1>16 CFR Chapter II—Consumer Product Safety Commission.
</FP-1>
<FP-1>21 CFR Chapter I—Food and Drug Administration, Department of Health and Human Services.
</FP-1>
<FP-1>27 CFR Part 19—Distilled Spirits Plants.
</FP-1>
<FP-1>27 CFR Part 21—Formulas for Denatured Alcohol and Rum.
</FP-1>
<FP-1>27 CFR Part 26—Liquors and Articles from Puerto Rico and the Virgin Islands.
</FP-1>
<FP-1>27 CFR Part 27—Importation of Distilled Spirits, Wines and Beer.
</FP-1>
<FP-1>27 CFR Part 29—Stills and Miscellaneous Regulations. 
</FP-1>
<FP-1>27 CFR Part 71—Rules of Practice in Permit Proceedings.</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-207, 50 FR 23682, June 5, 1985; T.D. ATF-459, 66 FR 38549, July 25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. ATF-923, 67 FR 17938, Apr. 12, 2002]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.16.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 20.11" NODE="27:1.0.1.1.16.2.273.1" TYPE="SECTION">
<HEAD>§ 20.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, the following terms have the meanings given in this section. Words in the plural form include the singular, and vice versa, and words importing the masculine gender include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Alcohol.</I> Those spirits known as ethyl alcohol, ethanol, or spirits of wine, from whatever source or by whatever process produced; the term does not include such spirits as whisky, brandy, rum, gin, or vodka.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by the current version of TTB Order 1135.20, Delegation of the Administrator's Authorities in 27 CFR part 20, Distribution and Use of Denatured Alcohol and Rum.
</P>
<P><I>Article.</I> Any substance or preparation in the manufacture of which denatured spirits are used, including the product obtained by further manufacture or by combination with other materials, if the article subjected to further manufacture or combination contained denatured spirits.
</P>
<P><I>Bulk conveyance.</I> Any tank car, tank truck, tank ship, or tank barge, or a compartment of any such conveyance, or any other container approved by the appropriate TTB officer for the conveyance of comparable quantities of denatured spirits or articles.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Completely denatured alcohol.</I> Those spirits known as alcohol, as defined in this section, denatured under the completely denatured alcohol formulas prescribed in subpart C of part 21 of this chapter.
</P>
<P><I>Dealer.</I> A person required to hold a permit to deal in specially denatured spirits for resale to persons authorized to purchase or receive specially denatured spirits in accordance with this part. The term does not include a person who only buys and sells specially denatured spirits which that person never physically receives or intends to receive.
</P>
<P><I>Denaturant.</I> Any one of the materials authorized under part 21 of this chapter for addition to spirits in the production of denatured spirits.
</P>
<P><I>Denatured spirits.</I> Alcohol or rum to which denaturants have been added as provided in part 21 of this chapter.
</P>
<P><I>Denaturer.</I> The proprietor of a distilled spirits plant who denatures alcohol or rum under part 19 of this chapter.
</P>
<P><I>Distributor.</I> Any person who sells completely denatured alcohol, other than a proprietor of a distilled spirits plant who sells such alcohol at the plant premises, and any person who sells articles containing completely or specially denatured alcohol or specially denatured rum, other than the manufacturer, except where otherwise specifically restricted in this part.
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the claim, form, or other document or, where no form of declaration is prescribed, with the declaration—
</P>
<EXTRACT>
<P>I declare under the penalties of perjury that this ________ (insert type of document, such as statement, report, certificate, application, claim, or other document), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete.</P></EXTRACT>
<P><I>Fiduciary.</I> A guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.
</P>
<P><I>Fit for beverage use, or fit for beverage purposes.</I> Suitable for consumption as an alcoholic beverage by a normal person, or susceptible of being made suitable for such consumption merely by dilution with water to an alcoholic strength of 15 percent by volume. The determination is based solely on the composition of the product and without regard to extraneous factors such as price, labeling, or advertising.
</P>
<P><I>Gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>Internal human use.</I> Use inside the human body, but not including use only in the mouth where the substance being used is not intended to be swallowed.
</P>
<P><I>Liter or litre.</I> A metric unit of capacity equal to 1,000 cubic centimeters of alcohol, and equivalent to 33.814 fluid ounces. A liter is divided into 1,000 milliliters. The symbol for milliliter or milliliters is “mL”.
</P>
<P><I>Manufacturer or user.</I> A person who holds a permit to use specially denatured alcohol or specially denatured rum or to recover completely or specially denatured alcohol, specially denatured rum, or articles.
</P>
<P><I>Permit.</I> The document issued under 26 U.S.C. 5271(a), authorizing a person to withdraw and deal in or use specially denatured alcohol or specially denatured rum or to recover denatured alcohol, specially denatured rum, or articles under specified conditions.
</P>
<P><I>Permittee.</I> Any person holding a permit, Form 5150.9, issued under this part to withdraw and deal in or use (including recover) denatured spirits.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company, or corporation.
</P>
<P><I>Proof.</I> The ethyl alcohol content of a liquid at 60 °Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
</P>
<P><I>Proof gallon.</I> A gallon at 60 °Fahrenheit which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 °Fahrenheit referred to water at 60 °Fahrenheit as unity, or the alcoholic equivalent thereof.
</P>
<P><I>Proprietary solvents.</I> Solvents which are manufactured with specially denatured alcohol under the proprietary solvent general-use formula in this part.
</P>
<P><I>Recover.</I> To salvage, after use, specially denatured spirits, completely denatured alcohol without all of its original denaturants, or any article containing denatured spirits, if (1) the original article was made with specially denatured spirits and the salvaged article does not contain all of the original ingredients of the article, or (2) the original article was made with completely denatured alcohol and the salvaged article does not contain all of the original denaturants of the completely denatured alcohol.
</P>
<P><I>Recovered article.</I> An article containing specially denatured spirits salvaged without all of its original ingredients, or an article containing completely denatured alcohol salvaged without all of the original denaturants of the completely denatured alcohol.
</P>
<P><I>Recovered denatured alcohol.</I> Denatured alcohol (except completely denatured alcohol containing all of its original denaturants) which has been recovered.
</P>
<P><I>Recovered denatured rum.</I> Denatured rum which has been recovered.
</P>
<P><I>Restoration.</I> Restoring to the original state (except that the restored material may or may not contain denaturants to the same extent as the original material) of recovered denatured alcohol, recovered specially denatured rum, or recovered articles containing denatured alcohol or specially denatured rum. Restoration includes bringing the alcohol content of the recovered product to 190° of proof or more or to not less than the original proof if less than 190°. Restoration also includes the removal of foreign materials by any suitable means.
</P>
<P><I>Rum.</I> Any spirits produced from sugar cane products and distilled at less than 190° proof in such manner that the spirits possess the taste, aroma, and characteristics generally attributed to rum.
</P>
<P><I>Secretary of the Treasury</I> or <I>Secretary.</I> The Secretary of the Treasury or a delegate of the Secretary.


</P>
<P><I>Special industrial solvents.</I> Solvents which are manufactured with specially denatured alcohol under special industrial solvent general-use formula in this part.
</P>
<P><I>Specially denatured alcohol or S.D.A.</I> Those spirits known as alcohol, as defined in this section, denatured under the specially denatured alcohol formulas prescribed in part 21 of this chapter.
</P>
<P><I>Specially denatured rum or S.D.R.</I> Those spirits known as rum, as defined in this section, denatured under the specially denatured rum formula prescribed in part 21 of this chapter.
</P>
<P><I>Specially Denatured Spirits or S.D.S.</I> Specially denatured alcohol and/or specially denatured rum.
</P>
<P><I>Spirits or distilled spirits.</I> Alcohol or rum as defined in this part.
</P>
<P><I>Tank truck.</I> A tank-equipped semi-trailer, trailer, or truck, conforming to the requirements of this part.
</P>
<P><I>This chapter.</I> Chapter I, Title 27, Code of Federal Regulations.
</P>
<P><I>TTB.</I> The Alcohol and Tobacco Tax and Trade Bureau, U.S. Department of the Treasury.
</P>
<P><I>Unfit for beverage use, or unfit for beverage purposes.</I> Not conforming to the definition of “Fit for beverage use, or fit for beverage purposes” in this section.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985, as amended by ATF-332, 57 FR 40849, Sept. 8, 1992; T.D. ATF-435, 66 FR 5473, Jan. 19, 2001; T.D. TTB-44, 71 FR 16934, Apr. 4, 2006; T.D.TTB-140, 81 FR 59455, Aug. 30, 2016; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.16.3" TYPE="SUBPART">
<HEAD>Subpart C—Administrative Provisions</HEAD>


<DIV7 N="273" NODE="27:1.0.1.1.16.3.273" TYPE="SUBJGRP">
<HEAD>Authorities</HEAD>


<DIV8 N="§ 20.20" NODE="27:1.0.1.1.16.3.273.1" TYPE="SECTION">
<HEAD>§ 20.20   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in the current version of TTB Order 1135.20, Delegation of the Administrator's Authorities in 27 CFR Part 20, Distribution and Use of Denatured Alcohol and Rum. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16934, Apr. 4, 2006 ,as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 20.21" NODE="27:1.0.1.1.16.3.273.2" TYPE="SECTION">
<HEAD>§ 20.21   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part, including applications, notices, claims, reports, and records. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-435, 66 FR 5474, Jan. 19, 2001; T.D. ATF-476, 67 FR 17938, Apr. 12, 2002; T.D. TTB-44, 71 FR 16934, Apr. 4, 2006; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 20.22" NODE="27:1.0.1.1.16.3.273.3" TYPE="SECTION">
<HEAD>§ 20.22   Alternate methods or procedures; and emergency variations from requirements.</HEAD>
<P>(a) <I>Alternate methods or procedures</I>—(1) <I>Application.</I> A permittee, after receiving approval from the appropriate TTB officer, may use an alternate method or procedure (including alternate construction or equipment) in lieu of a method or procedure prescribed by this part. A permittee wishing to use an alternate method or procedure may apply to the appropriate TTB officer. The permittee shall describe the proposed alternate method or procedure and shall set forth the reasons for its use.
</P>
<P>(2) <I>Approval by appropriate TTB officer.</I> The appropriate TTB officer may approve the use of an alternate method or procedure if:
</P>
<P>(i) The applicant shows good cause for its use;
</P>
<P>(ii) It is consistent with the purpose and effect of the procedure prescribed by this part, and provides equal security to the revenue;
</P>
<P>(iii) It is not contrary to law; and
</P>
<P>(iv) It will not cause an increase in cost to the Government and will not hinder the effective administration of this part.
</P>
<P>(3) <I>Conditions of approval.</I> A permittee may not employ an alternate method or procedure until the appropriate TTB officer has approved its use. The permittee shall, during the terms of the authorization of an alternate method or procedure, comply with terms of the approved application.
</P>
<P>(b) <I>Emergency variations from requirements</I>—(1) <I>Application.</I> When an emergency exists, a permittee may apply to the appropriate TTB officer for a variation from the requirements of this part relating to construction, equipment, and methods of operation. The permittee shall describe the proposed variation and set forth the reasons for using it.
</P>
<P>(2) <I>Approval by appropriate TTB officer.</I> The appropriate TTB officer may approve an emergency variation from requirements if:
</P>
<P>(i) An emergency exists;
</P>
<P>(ii) The variation from the requirements is necessary;
</P>
<P>(iii) It will afford the same security and protection to the revenue as intended by the specific regulations;
</P>
<P>(iv) It will not hinder the effective administration of this part; and
</P>
<P>(v) It is not contrary to law.
</P>
<P>(3) <I>Conditions of approval.</I> A permittee may not employ an emergency variation from the requirements until the appropriate TTB officer has approved its use. Approval of variations from requirements are conditioned upon compliance with the conditions and limitations set forth in the approval.
</P>
<P>(4) <I>Automatic termination of approval.</I> If the permittee fails to comply in good faith with the procedures, conditions or limitations set forth in the approval, authority for the variation from requirements is automatically terminated and the permittee is required to comply with prescribed requirements of regulations from which those variations were authorized.
</P>
<P>(c) <I>Withdrawal of approval.</I> The appropriate TTB officer may withdraw approval for an alternate method or procedure, may withdraw approval for an emergency variation from requirements, approved under paragraph (a) or (b) of this section, if the appropriate TTB officer finds that the revenue is jeopardized or the effective administration of this part is hindered by the approval.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<SECAUTH TYPE="N">(Act of August 16, 1954, Ch. 736, 68A Stat. 917 (26 U.S.C. 7805); sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-235, 66 FR 5474, Jan. 19, 2001; T.D. ATF-476, 67 FR 17938, Apr. 12, 2002; T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.23" NODE="27:1.0.1.1.16.3.273.4" TYPE="SECTION">
<HEAD>§ 20.23   Approval of formulas and statements of process.</HEAD>
<P>The appropriate TTB officer is authorized to approve all formulas for articles and statements of process relating to recovery operations or other activities required to be submitted on Form 5150.19.


</P>
</DIV8>


<DIV8 N="§ 20.24" NODE="27:1.0.1.1.16.3.273.5" TYPE="SECTION">
<HEAD>§ 20.24   Allowance of claims.</HEAD>
<P>The appropriate TTB officer is authorized to allow claims for losses of specially denatured alcohol or specially denatured rum.


</P>
</DIV8>


<DIV8 N="§ 20.25" NODE="27:1.0.1.1.16.3.273.6" TYPE="SECTION">
<HEAD>§ 20.25   Permits.</HEAD>
<P>The appropriate TTB officer must issue permits for the United States or a Governmental agency as provided in § 20.241 and industrial alcohol user permits, Form 5150.9, required under this part.
</P>
<CITA TYPE="N">[T.D. ATF-435, 66 FR 5474, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 20.27" NODE="27:1.0.1.1.16.3.273.7" TYPE="SECTION">
<HEAD>§ 20.27   Right of entry and examination.</HEAD>
<P>An appropriate TTB officer may enter, during business hours or at any time operations are being conducted, any premises on which operations governed by this part are conducted to inspect the records and reports required by this part to be kept on those premises. An appropriate TTB officer may also inspect and take samples of distilled spirits, denatured alcohol, specially denatured rum or articles (including any substance for use in the manufacture of denatured alcohol, specially denatured rum or articles) to which those records or reports relate.


</P>
</DIV8>


<DIV8 N="§ 20.28" NODE="27:1.0.1.1.16.3.273.8" TYPE="SECTION">
<HEAD>§ 20.28   Detention of containers.</HEAD>
<P>(a) <I>Summary detention.</I> An appropriate TTB officer may detain any container containing, or supposed to contain, spirits (including denatured spirits and articles), when the appropriate TTB officer believes those spirits, denatured spirits, or articles were produced, withdrawn, sold, transported, or used in violation of law or this part. The appropriate TTB officer shall hold the container at a safe place until it is determined if the detained property is liable by law to forfeiture.
</P>
<P>(b) <I>Limitations.</I> Summary detention may not exceed 72 hours without process of law or intervention of the appropriate TTB officer. The person possessing the container immediately before its detention may prepare a waiver of the 72 hours limitation to have the container kept on his or her premises during detention.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, Stat. 1375, as amended (26 U.S.C. 5311))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="274" NODE="27:1.0.1.1.16.3.274" TYPE="SUBJGRP">
<HEAD>Liability for Tax</HEAD>


<DIV8 N="§ 20.31" NODE="27:1.0.1.1.16.3.274.9" TYPE="SECTION">
<HEAD>§ 20.31   Applicable laws and regulations; persons liable for tax.</HEAD>
<P>(a) All laws and regulations regarding alcohol or rum that is not denatured, including those requiring payment of the distilled spirits tax, apply to completely denatured alcohol, specially denatured alcohol, specially denatured rum, or articles produced, withdrawn, sold, transported, or used in violation of laws or regulations pertaining to those substances.
</P>
<P>(b) Any person who produces, withdraws, sells, transports, or uses completely denatured alcohol, specially denatured alcohol, specially denatured rum, or articles in violation of laws or regulations shall be required to pay the distilled spirits tax on those substances.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="275" NODE="27:1.0.1.1.16.3.275" TYPE="SUBJGRP">
<HEAD>Marks and Brands</HEAD>


<DIV8 N="§ 20.33" NODE="27:1.0.1.1.16.3.275.10" TYPE="SECTION">
<HEAD>§ 20.33   Time of destruction of marks and brands.</HEAD>
<P>(a) Any person who empties a package containing denatured alcohol, specially denatured rum, or articles made from denatured alcohol or specially denatured rum shall immediately destroy or obliterate the marks, brands, and labels required by this chapter to be placed on packages containing those materials.
</P>
<P>(b) A person may not destroy or obliterate the marks, brands or labels until the package or drum has been emptied.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5206))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="276" NODE="27:1.0.1.1.16.3.276" TYPE="SUBJGRP">
<HEAD>Document Requirements</HEAD>


<DIV8 N="§ 20.36" NODE="27:1.0.1.1.16.3.276.11" TYPE="SECTION">
<HEAD>§ 20.36   Execution under penalties of perjury.</HEAD>
<P>(a) When any form or document prescribed by this part is required to be executed under penalties of perjury, the dealer or user or other authorized person shall:
</P>
<P>(1) Insert the declaration “I declare under the penalties of perjury that I have examined this ________ (insert the type of document such as claim, application, statement, report, certificate), including all supporting documents, and to the best of my knowledge and belief, it is true, correct, and complete”; and
</P>
<P>(2) Sign the document.
</P>
<P>(b) When the required document already bears a perjury declaration, the dealer or user or other authorized person shall sign the document.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6065)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-332, 57 FR 40849, Sept. 8, 1992]


</CITA>
</DIV8>


<DIV8 N="§ 20.37" NODE="27:1.0.1.1.16.3.276.12" TYPE="SECTION">
<HEAD>§ 20.37   Filing of qualifying documents.</HEAD>
<P>All documents returned to a permittee or other person as evidence of compliance with requirements of this part, or as authorization, shall except as otherwise provided, be kept readily available for inspection by an appropriate TTB officer during business hours.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="Ca" NODE="27:1.0.1.1.16.4" TYPE="SUBPART">
<HEAD>Subpart Ca [Reserved]</HEAD>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.16.5" TYPE="SUBPART">
<HEAD>Subpart D—Qualification of Dealers and Users</HEAD>


<DIV7 N="277" NODE="27:1.0.1.1.16.5.277" TYPE="SUBJGRP">
<HEAD>Application for Permit, Form 5150.22</HEAD>


<DIV8 N="§ 20.41" NODE="27:1.0.1.1.16.5.277.1" TYPE="SECTION">
<HEAD>§ 20.41   Application for industrial alcohol user permit.</HEAD>
<P>(a) <I>Dealers.</I> A person who desires to withdraw and deal in specially denatured spirits shall, before commencing business, file an application on Form 5150.22 for, and obtain a permit, Form 5150.9.
</P>
<P>(b) <I>Users.</I> A person who desires to withdraw and use or recover specially denatured spirits shall, before commencing business, file an application on Form 5150.22 for, and obtain a permit, Form 5150.9. The provisions of this paragraph also apply to persons desiring to recover denatured spirits from articles.
</P>
<P>(c) <I>Filing.</I> All applications and necessary supporting documents, as required by this subpart, shall be filed with the appropriate TTB officer. All data, written statements, certifications, affidavits, and other documents submitted in support of the application are considered a part of the application.
</P>
<P>(1) Applications filed as provided in this section, shall be accompanied by evidence establishing the authority of the officer or other person to execute the application.
</P>
<P>(2) A State, political subdivision thereof, or the District of Columbia, may specify in the application that it desires a single permit authorizing the withdrawal and use of specially denatured spirits in a number of institutions under it control. In this instance, the application, Form 5150.22, or an attachment, shall clearly show the method of distributing and accounting for the specially denatured spirits to be withdrawn.
</P>
<P>(d) <I>Exceptions.</I> (1) The proprietor of a distilled spirits plant qualified under part 19 of this chapter is not required to qualify under this part for activities conducted at that plant's bonded premises.
</P>
<P>(2) A permittee who was previously qualified on the effective date of this regulation shall not be required to requalify under this part.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985; T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.42" NODE="27:1.0.1.1.16.5.277.2" TYPE="SECTION">
<HEAD>§ 20.42   Data for application, Form 5150.22.</HEAD>
<P>(a) Unless waived under § 20.43, each application on Form 5150.22 shall include as applicable, the following information:
</P>
<P>(1) Serial number and purpose for which filed.
</P>
<P>(2) Name and principal business address.
</P>
<P>(3) Based on the bona fide requirements of the applicant, the estimated quantity of all formulations of specially denatured spirits, in gallons, which will be procured during a 12-month period.
</P>
<P>(4) Location, or locations where specially denatured spirits will be sold or used if different from the business address.
</P>
<P>(5) Statement that specially denatured spirits will be stored in accordance with the requirements of this part.
</P>
<P>(6) For user applications, statement as to the intended use (e.g., cosmetics, external medicines, solvents, fuels, mouthwashes, laboratory uses, inks, etc.) to be made of the specially denatured spirits, and whether recovery, restoration, and redenaturation processes will be used.
</P>
<P>(7) Statement as to the type of business organization and of the persons interested in the business, supported by the items of information listed in § 20.45.
</P>
<P>(8) Listing of the principal equipment to be used in recovery processes, including processing tanks, storage tanks, and equipment for recovery, restoration, and redenaturation of denatured spirits (including the serial number, kind, capacity, names and addresses of manufacturer and owner of distilling apparatus along with intended use).
</P>
<P>(9) List of trade names under which the applicant will conduct operations, and the offices where these names are registered.
</P>
<P>(10) Listing of the titles of offices, the incumbents of which are responsible for the specially denatured spirits activities of the business and are authorized by the articles of incorporation, the bylaws, or the board of directors to act and sign on behalf of the applicant.
</P>
<P>(11) Other information and statements as the appropriate TTB officer may require to establish that the applicant is entitled to the permit. In the case of a corporation or other legal entity, the appropriate TTB officer may require information which establishes that the officers, directors and principal stockholders whose names are required to be furnished under § 20.45 (a)(2) and (c) have not violated or conspired to violate any law of the United States relating to intoxicating liquor or have been convicted of any offense under Title 26, U.S.C., punishable as a felony or of any conspiracy to commit such offense.
</P>
<P>(b) If any of the information required by paragraphs (a)(4) through (a)(10) and any information which may be required under paragraph (a)(11) of this section is on file with any appropriate TTB officer, the applicant may incorporate this information by reference by stating that the information is made a part of the application.


</P>
</DIV8>


<DIV8 N="§ 20.43" NODE="27:1.0.1.1.16.5.277.3" TYPE="SECTION">
<HEAD>§ 20.43   Exceptions to application requirements.</HEAD>
<P>(a) The appropriate TTB officer may waive detailed application and supporting data requirements, other than the requirements of paragraphs (a)(1) through (a)(6) and (a)(9) of § 20.42, and paragraph (a)(8) of that section as it relates to recovery, restoration and redistillation, in the case of—
</P>
<P>(1) All applications, Form 5150.22, filed by States or political subdivisions thereof or the District of Columbia, and
</P>
<P>(2) Applications, Form 5150.22, filed by applicants, where the appropriate TTB officer has determined that the waiver of such requirements does not pose any jeopardy to the revenue or a hindrance of the effective administration of this part. 
</P>
<P>(b) The waiver provided for in this section will terminate for a permittee, other than States or political subdivisions thereof or the District of Columbia, when the appropriate TTB officer determines that the conditions justifying the waiver no longer exist. In this case, the permittee will furnish the information in respect to the previously waived items, as provided in § 20.56(a)(2).
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 FR 17938, Apr. 12, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 20.44" NODE="27:1.0.1.1.16.5.277.4" TYPE="SECTION">
<HEAD>§ 20.44   Disapproval of application.</HEAD>
<P>The appropriate TTB officer may, in accordance with part 71 of this chapter, disapprove an application for a permit to withdraw and deal or use denatured spirits, if on examination of the application (or inquiry), the appropriate TTB officer has reason to believe that:
</P>
<P>(a) The applicant is not authorized by law and regulations to withdraw and deal in or use specially denatured spirits;
</P>
<P>(b) The applicant (including, in the case of a corporation, any officer, director, or principal stockholder, or, in the case of a partnership, a partner) is, by reason of their business experience, financial standing, or trade connections, not likely to maintain operations in compliance with 26 U.S.C. Chapter 51, or regulations issued under this part;
</P>
<P>(c) The applicant has failed to disclose any material information required, or has made any false statement as to any material fact, in connection with the application; or
</P>
<P>(d) The premises at which the applicant proposes to conduct the business are not adequate to protect the revenue.


</P>
</DIV8>


<DIV8 N="§ 20.45" NODE="27:1.0.1.1.16.5.277.5" TYPE="SECTION">
<HEAD>§ 20.45   Organizational documents.</HEAD>
<P>The supporting information required by § 20.42(a)(7) includes, as applicable:
</P>
<P>(a) <I>Corporate documents.</I> (1) Certified true copy of the certificate of incorporation, or certified true copy of certificate authorizing the corporation to operate in the State where the premises are located (if other than that in which incorporated);
</P>
<P>(2) Certified list of names and addresses of officers and directors, along with a statement designating which corporate offices, if applicable, are directly responsible for the specially denatured spirits portion of the business; and
</P>
<P>(3) Statement showing the number of shares of each class of stock or other evidence of ownership, authorized and outstanding, the par value, and the voting rights of the respective owners or holders.
</P>
<P>(b) <I>Articles of partnership.</I> True copy of the articles of partnership or association, if any, or certificate of partnership or association where required to be filed by any State, county, or municipality.
</P>
<P>(c) <I>Statement of interest.</I> (1) Names and addresses of persons owning 10% or more of each of the classes of stock in the corporation, or legal entity, and the nature and amount of the stockholding or other interest of each, whether such interest appears in the name of the interested party or in the name of another for him or her. If a corporation is wholly owned or controlled by another corporation, persons owning 10% or more of each of the classes of stock of the parent corporation are considered to be the persons interested in the business of the subsidiary, and the names and addresses of such persons must be submitted to the appropriate TTB officer if specifically requested.
</P>
<P>(2) In the case of an individual owner or partnership, name and address of every person interested in the business, whether such interest appears in the name of the interested party or in the name of another for the interested person.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-435, 66 FR 5474, Jan. 19, 2001]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="278" NODE="27:1.0.1.1.16.5.278" TYPE="SUBJGRP">
<HEAD>Industrial Alcohol User Permit, Form 5150.9</HEAD>


<DIV8 N="§ 20.48" NODE="27:1.0.1.1.16.5.278.6" TYPE="SECTION">
<HEAD>§ 20.48   Conditions of permits.</HEAD>
<P>(a) Permits to withdraw and deal in or use specially denatured spirits will designate the acts which are permitted, and include any limitations imposed on the performance of these acts. All of the provisions of this part relating to the use, recovery, restoration or redistillation of denatured spirits or articles are considered to be included in the provisions and conditions of the permit, the same as if set out in the permit.
</P>
<P>(b) An applicant need not have formulas and statements of processes, approved by the appropriate TTB officer, prior to the issuance of a permit by the appropriate TTB officer.
</P>
<P>(c) A permittee shall not use specially denatured spirits in the manufacture or production of any article unless the appropriate TTB officer has approved the formula on Form 5150.19 or the article is covered by an approved general-use formula.


</P>
</DIV8>


<DIV8 N="§ 20.49" NODE="27:1.0.1.1.16.5.278.7" TYPE="SECTION">
<HEAD>§ 20.49   Duration of permits.</HEAD>
<P>Permits to withdraw and deal in or use specially denatured spirits are continuing unless automatically terminated by the terms thereof, suspended or revoked as provided in § 20.51, or voluntarily surrendered. The provisions of § 20.57 are considered part of the terms and conditions of all permits.


</P>
</DIV8>


<DIV8 N="§ 20.50" NODE="27:1.0.1.1.16.5.278.8" TYPE="SECTION">
<HEAD>§ 20.50   Correction of permits.</HEAD>
<P>If an error on a permit is discovered, the permittee shall immediately return the permit to the appropriate TTB officer for correction.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 20.51" NODE="27:1.0.1.1.16.5.278.9" TYPE="SECTION">
<HEAD>§ 20.51   Suspension or revocation of permits.</HEAD>
<P>The appropriate TTB officer may institute proceedings under part 71 of this chapter to suspend or revoke a permit whenever the appropriate TTB officer has reason to believe that the permittee:
</P>
<P>(a) Has not in good faith complied with the provisions of 26 U.S.C. Chapter 51, or regulations issued under that chapter;
</P>
<P>(b) Has violated the conditions of that permit;
</P>
<P>(c) Has made any false statements as to any material fact in the application for the permit;
</P>
<P>(d) Has failed to disclose any material information required to be furnished;
</P>
<P>(e) Has violated or conspired to violate any law of the United States relating to intoxicating liquor or has been convicted of an offense under Title 26, U.S.C., punishable as a felony or of any conspiracy to commit such offense;
</P>
<P>(f) Is, by reason of its operations, no longer warranted in procuring and dealing in or using specially denatured spirits authorized by the permit; or
</P>
<P>(g) Has not engaged in any of the operations authorized by the permit for a period of more than 2 years.


</P>
</DIV8>


<DIV8 N="§ 20.52" NODE="27:1.0.1.1.16.5.278.10" TYPE="SECTION">
<HEAD>§ 20.52   Rules of practice in permit proceedings.</HEAD>
<P>The regulations of part 71 of this chapter apply to the procedure and practice in connection with the disapproval of any application for a permit and in connection with suspension or revocation of a permit.


</P>
</DIV8>


<DIV8 N="§ 20.53" NODE="27:1.0.1.1.16.5.278.11" TYPE="SECTION">
<HEAD>§ 20.53   Powers of attorney.</HEAD>
<P>An applicant or permittee shall execute and file a Form 1534, in accordance with the instructions on the form, for each person authorized to sign or to act on behalf of the applicant or permittee. Form 1534 is not required for a person whose authority is furnished in accordance with § 20.42(a)(10).


</P>
</DIV8>


<DIV8 N="§ 20.54" NODE="27:1.0.1.1.16.5.278.12" TYPE="SECTION">
<HEAD>§ 20.54   Photocopying of permits.</HEAD>
<P>A permittee may make photocopies of its permit exclusively for the purpose of furnishing proof of authorization to withdraw specially denatured spirits from a distilled spirits plant and other persons authorized under this part to deal in specially denatured spirits.


</P>
</DIV8>


<DIV8 N="§ 20.55" NODE="27:1.0.1.1.16.5.278.13" TYPE="SECTION">
<HEAD>§ 20.55   Posting of permits.</HEAD>
<P>Permits issued under this part shall be kept posted and available for inspection on the permit premises.


</P>
</DIV8>

</DIV7>


<DIV7 N="279" NODE="27:1.0.1.1.16.5.279" TYPE="SUBJGRP">
<HEAD>Changes After Original Qualification</HEAD>


<DIV8 N="§ 20.56" NODE="27:1.0.1.1.16.5.279.14" TYPE="SECTION">
<HEAD>§ 20.56   Changes affecting applications and permits.</HEAD>
<P>(a) <I>General</I>—(1) <I>Changes affecting application.</I> When there is a change relating to any of the information contained in, or considered a part of the application on Form 5150.22 for a permit, the permittee shall, within 30 days (except as otherwise provided in this subpart) file a written notice with the appropriate TTB officer to amend the application. However, a change in the information required by § 20.42(a)(6) caused by approval of a new formula or statement of process shall not require filing a new application unless the approval is the permittee's first statement of process covering recovery operations.
</P>
<P>(2) <I>Changes affecting waivers.</I> When any waiver under § 20.43 is terminated by a change to the application, the permittee shall include the current information as to the item previously waived with the written notice required in paragraph (a)(1) of this section.
</P>
<P>(3) <I>Changes affecting permit.</I> When the terms of a permit are affected by a change, the written notice required by paragraph (a)(1) of this section (except as otherwise provided in this subpart) will serve as an application to amend the permit.
</P>
<P>(4) <I>Form of notice.</I> A written notice to amend an application on Form 5150.22 shall—
</P>
<P>(i) Identify the permittee;
</P>
<P>(ii) Contain the permit identification number;
</P>
<P>(iii) Explain the nature of the change and contain any required supporting documents;
</P>
<P>(iv) Identify the serial number of the applicable application, Form 5150.22; and
</P>
<P>(v) Be consecutively numbered and signed by the permittee or any person authorized to sign on behalf of the permittee.
</P>
<P>(b) <I>Amended application.</I> The appropriate TTB officer may require a permittee to file an amended application on Form 5150.22 when the number of changes to the previous application are determined to be excessive, or when a permittee has not timely filed the written notice prescribed in paragraph (a)(1) of this section. If items on the amended application remain unchanged, they will be marked “No change since Form 5150.22, Serial No. __________.”
</P>
<P>(c) <I>Changes in officers, directors and stockholders</I>—(1) <I>Officers.</I> In the case of a change in the officers listed under the provisions of § 20.45(a)(2), the notice required by paragraph (a)(1) of this section shall only apply (unless otherwise required, in writing, by the appropriate TTB officer) to those offices, the incumbents of which are responsible for the operations covered by this part.
</P>
<P>(2) <I>Directors.</I> In the case of a change in the directors listed under the provisions of § 20.45(a)(2), the notice required by paragraph (a)(1) of this section shall reflect the changes.
</P>
<P>(3) <I>Stockholders.</I> In lieu of reporting all changes, within 30 days, to the list of stockholders furnished under the provisions of § 20.45(c)(1), a permittee may, upon filing written notice to the appropriate TTB officer and establishing a reporting date, file an annual notice of changes. The notice of changes in stockholders does not apply if the sale or transfer of capital stock results in a change in ownership or control which is required to be reported under § 20.57.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.57" NODE="27:1.0.1.1.16.5.279.15" TYPE="SECTION">
<HEAD>§ 20.57   Automatic termination of permits.</HEAD>
<P>(a) <I>Permit not transferable.</I> Permits issued under this part are not transferable. In the event of the lease, sale, or other transfer of such a permit. or of the operations authorized by the permit, the permit shall, except as provided for in this section, automatically terminate.
</P>
<P>(b) <I>Corporations.</I> (1) If actual or legal control of any corporation holding a permit issued under this part changes, directly or indirectly, whether by reason of a change in stock ownership or control (in the permittee corporation or any other corporation), by operation of law, or in any other manner, the permittee shall, within 10 days of the change, give written notice to the appropriate TTB officer. Within 30 days of the change, the permittee shall file an application for a new permit, Form 5150.22 with supporting documents. If an application for a new permit is not filed on Form 5150.22 within 30 days of the change, the outstanding permit will automatically terminate.
</P>
<P>(2) If an application for a new permit is filed on Form 5150.22 within the 30-day period prescribed in paragraph (b)(1) of this section, the outstanding permit may remain in effect until final action is taken on the application. When final action is taken, the outstanding permit will automatically terminate and shall be forwarded to the appropriate TTB officer.
</P>
<P>(c) <I>Proprietorships.</I> In the event of a change in proprietorship of a business of a permittee (as for instance, by reasons of incorporation, the withdrawal or taking in of additional partners, or succession by any person who is not a fiduciary), the successor shall file written notice and make application on Form 5150.22 for a new permit, under the same conditions provided for in paragraph (b) of this section. The successor may adopt the formulas and statements of process of the predecessor.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985; T.D. TTB-140 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.58" NODE="27:1.0.1.1.16.5.279.16" TYPE="SECTION">
<HEAD>§ 20.58   Adoption of documents by a fiduciary.</HEAD>
<P>If the business covered by a permit issued under this part, is to be operated by a fiduciary, the fiduciary may, in lieu of qualifying as a new proprietor, file a written notice, and any necessary supporting documents, to amend the predecessor's permit. The fiduciary may adopt the formulas and statements of process of the predecessor. The effective date of the qualifying documents filed by a fiduciary shall coincide with the effective date of the court order or the date specified therein for the fiduciary to assume control. If the fiduciary was not appointed by the court, the date the fiduciary assumed control shall coincide with the effective date of the filing of the qualifying documents.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 FR 17939, Apr. 12, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 20.59" NODE="27:1.0.1.1.16.5.279.17" TYPE="SECTION">
<HEAD>§ 20.59   Continuing partnerships.</HEAD>
<P>(a) <I>General.</I> If, under the laws of a particular State, a partnership is not terminated on death or insolvency of a partner, but continues until final settlement of the partnership affairs is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, the surviving partner may continue to withdraw and use specially denatured spirits under the prior qualifications of the partnership.
</P>
<P>(b) <I>Requalification.</I> If a surviving partner acquires the business on completion of the settlement of the partnership, that partner shall qualify as a new proprietor, from the date of acquisition, under the same conditions and limitations prescribed in § 20.57(c).
</P>
<P>(c) <I>More than one partner.</I> The rule set forth in this section also applies if there is more than one surviving partner.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985; T.D. ATF-476, 67 FR 17939, Apr. 12, 2002; T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.60" NODE="27:1.0.1.1.16.5.279.18" TYPE="SECTION">
<HEAD>§ 20.60   Change in name of permittee.</HEAD>
<P>When the only change is a change in the individual, firm, or corporation name, a permittee may not conduct operations under the new name until a written notice, accompanied by necessary supporting documents, to amend the application and permit has been filed and an amended permit issued by the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985; T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.61" NODE="27:1.0.1.1.16.5.279.19" TYPE="SECTION">
<HEAD>§ 20.61   Change in trade name.</HEAD>
<P>If there is to be a change in, or addition of, a trade name, the permittee may not conduct operations under the new trade name until a written notice has been filed and an amended permit has been issued by the appropriate TTB officer. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 FR 17939, Apr. 12, 2002; T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.62" NODE="27:1.0.1.1.16.5.279.20" TYPE="SECTION">
<HEAD>§ 20.62   Change in location.</HEAD>
<P>When there is to be a change in location, a permittee may not conduct operations at the new location until a written notice, accompanied by necessary supporting information to amend the application and permit has been filed and an amended permit issued by the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 8, 1985, as amended by T.D. ATF-435, 66 FR 5474, Jan. 19, 2001; T.D. ATF-476, 67 FR 17939, Apr. 12, 2002; T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.63" NODE="27:1.0.1.1.16.5.279.21" TYPE="SECTION">
<HEAD>§ 20.63   Adoption of formulas and statements of process.</HEAD>
<P>(a) Adoption of formulas and statements of process is permitted:
</P>
<P>(1) When a successor (proprietorship or fiduciary) adopts a predecessor's formulas and statements of process as provided in §§ 20.57(c) and 20.58; and
</P>
<P>(2) When a permittee adopts for use at one plant, the formulas previously approved by TTB for use at another plant, or when a permittee adopts a formula previously approved by TTB for a parent or subsidiary, provided that in the case of a parent-subsidiary relationship the subsidiary is wholly-owned by the parent.
</P>
<P>(b) The adoption will be accomplished by the submission of a certificate of adoption. The certificate of adoption shall be submitted to the appropriate TTB officer and shall contain:
</P>
<P>(1) A list of all approved formulas or statements of process in which S.D.S. is used or recovered;
</P>
<P>(2) The formulas of S.D.S. used or recovered;
</P>
<P>(3) The dates of approval of the relevant Forms 1479-A or TTB Forms 5150.19:
</P>
<P>(4) The applicable code number(s) for the article or process;
</P>
<P>(5) The name of the permittee adopting the formulas, followed by the phrase, for each formula, “Formula of ______ (Name and permit number of permittee who received formula approval) is hereby adopted;” and
</P>
<P>(6) In the case of a permittee adopting the formulas of another entity, evidence of its relationship to that entity.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.64" NODE="27:1.0.1.1.16.5.279.22" TYPE="SECTION">
<HEAD>§ 20.64   Return of permits.</HEAD>
<P>Following the issuance of a new or amended permit, the permittee shall (a) obtain and destroy all photocopies of the previous permit from its suppliers, and (b) return the original of the previous permit to the appropriate TTB officer.


</P>
</DIV8>

</DIV7>


<DIV7 N="280" NODE="27:1.0.1.1.16.5.280" TYPE="SUBJGRP">
<HEAD>Registry of Stills</HEAD>


<DIV8 N="§ 20.66" NODE="27:1.0.1.1.16.5.280.23" TYPE="SECTION">
<HEAD>§ 20.66   Registry of stills.</HEAD>
<P>The provisions of subpart C of part 29 of this chapter are applicable to stills or distilling apparatus located on the premises of a permittee used for distilling. As provided under § 29.55, the listing of a still in the permit application (Form 5150.22), and approval of the application, constitutes registration of the still.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended (26 U.S.C. 5179))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-207, 50 FR 23682, June 5, 1985]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="281" NODE="27:1.0.1.1.16.5.281" TYPE="SUBJGRP">
<HEAD>Permanent Discontinuance of Business</HEAD>


<DIV8 N="§ 20.68" NODE="27:1.0.1.1.16.5.281.24" TYPE="SECTION">
<HEAD>§ 20.68   Notice of permanent discontinuance.</HEAD>
<P>(a) <I>Notice.</I> When a permittee permanently discontinues business, a written notice shall be filed with the appropriate TTB officer to cover the discontinuance. The notice will be accompanied by the permit, and contain—
</P>
<P>(1) A request to cancel the permit,
</P>
<P>(2) A statement of the disposition made of all specially denatured spirits, as required in § 20.234, and
</P>
<P>(3) The date of discontinuance.
</P>
<P>(b) <I>Final Reports.</I> The written notice required by this paragraph will also be accompanied by a report on Form 5150.18 covering the discontinuance and marked “Final Report.”
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 FR 17939, Apr. 12, 2002; T.D. TTB-140 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.16.6" TYPE="SUBPART">
<HEAD>Subpart E [Reserved]</HEAD>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.16.7" TYPE="SUBPART">
<HEAD>Subpart F—Formulas and Statements of Process</HEAD>


<DIV8 N="§ 20.91" NODE="27:1.0.1.1.16.7.282.1" TYPE="SECTION">
<HEAD>§ 20.91   Formula.</HEAD>
<P>(a) Each article made with specially denatured spirits shall be made in accordance with (1) an approved formula, Form 5150.19, or (2) an approved general-use formula prescribed in this subpart, approved by the appropriate TTB officer as an alternate method, or published as a TTB ruling on the TTB Web site at <I>https://www.ttb.gov.</I>The manufacturer shall file Form 5150.19, along with the sample(s) required by § 20.92, and obtain an approved formula before manufacturing the article.
</P>
<P>(b) An article made in accordance with a formula on Form 1479-A approved under previous regulations in part 211 of this chapter will be considered to comply with the requirements of this subpart.
</P>
<P>(c) Any person who has approved formulas or statements of process, Form 1479-A or Form 5150.19, which have been discontinued or have become obsolete, may submit these formulas or statements of process to the appropriate TTB officer for cancellation.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.92" NODE="27:1.0.1.1.16.7.282.2" TYPE="SECTION">
<HEAD>§ 20.92   Samples.</HEAD>
<P>(a) For each formula submitted in accordance with § 20.91 covering a toilet preparation made with S.D.A. Formula No. 39-C and containing an essential oil, the manufacturer shall submit a 0.5-ounce sample of the essential oil used in the article. The appropriate TTB officer may also require the manufacturer to submit a sample of any ingredient which is not adequately described in the formula.
</P>
<P>(b) For each formula submitted in accordance with § 20.91, the appropriate TTB officer may require the manufacturer to submit a 4-ounce sample of the finished article.
</P>
<P>(c) The appropriate TTB officer may, at any time, require submission of samples of:
</P>
<P>(1) Any ingredient used in the manufacture of an article, or;
</P>
<P>(2) Any article.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-435, 66 FR 5474, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 20.93" NODE="27:1.0.1.1.16.7.282.3" TYPE="SECTION">
<HEAD>§ 20.93   Changes to formulas.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (b) of this section, any change of ingredients or quantities of ingredients listed in an approved formula shall constitute a different article for which a different approved formula is required by § 20.91.
</P>
<P>(b) <I>Exceptions.</I> A different approved formula is not required for the following—
</P>
<P>(1) A change from an ingredient identified in the formula by a brand name to the same quantity of a chemically identical ingredient acquired under a different brand name, or
</P>
<P>(2) A change of an ingredient which is a coloring material.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.94" NODE="27:1.0.1.1.16.7.282.4" TYPE="SECTION">
<HEAD>§ 20.94   Statement of process.</HEAD>
<P>(a) Manufacturers shall submit a statement of process on Form 5150.19, in accordance with paragraph (b) of this section, covering the following activities:
</P>
<P>(1) If specially denatured spirits are used for laboratory or mechanical purposes, other than use of S.D.A. Formula No. 3-A, 3-C, or 30 for laboratory or mechanical purposes not in the development of a product;
</P>
<P>(2) If specially denatured spirits are used in a manufacturing process in which none of the specially denatured spirits remains in the finished product;
</P>
<P>(3) If specially denatured spirits, completely denatured alcohol, or articles are used in a manufacturing process and are to be recovered; or
</P>
<P>(4) If recovered denatured spirits are to be redenatured.
</P>
<P>(b) The manufacturer shall submit a separate Form 5150.19 for each activity described in paragraph (a) of this section describing the process completely.
</P>
<P>(1) If specially denatured spirits are used for laboratory or mechanical purposes, other than use of S.D.A. Formula No. 3-A, 3-C, or 30 for laboratory or mechanical purposes not in the development of a product, the Form 5150.19 shall identify the formula number of specially denatured spirits, a description of the laboratory or mechanical use, and the approximate annual quantity to be used.
</P>
<P>(2) If the Form 5150.19 is submitted covering activities described in paragraphs (a)(2), (a)(3), or (a)(4) of this section, the Form 5150.19 shall also contain the following information:
</P>
<P>(i) Flow diagrams shall be submitted with the Form 5150.19 clearly depicting the equipment in its relative operating sequence, with essential connecting pipelines and valves. All major equipment shall be identified as to its use. The direction of flow through the pipelines shall be indicated in the flow diagram. The flow diagram, shall be accompanied by a written description of the flow of materials through the system.
</P>
<P>(ii) The statement of process shall describe the chemical composition of the recovered spirits. The statement of process shall be accompanied by a statement of the intended use of the recovered spirits.


</P>
</DIV8>


<DIV8 N="§ 20.95" NODE="27:1.0.1.1.16.7.282.5" TYPE="SECTION">
<HEAD>§ 20.95   Developmental samples of articles.</HEAD>
<P>(a) <I>Samples for submission to TTB.</I> Prior to receiving formula approval on TTB Form 5150.19, a user may use S.D.S. in the manufacture of samples of articles for submission in accordance with § 20.92. However, the user may only use the limited quantity of S.D.S. that is necessary to produce the samples.
</P>
<P>(b) <I>Samples for shipment to prospective customers.</I> Prior to submitting a formula and statement of process on TTB Form 5150.19, a user may use S.D.S. to prepare developmental samples of articles for shipment to prospective customers. Only one sample of each formulation of the article under development may be sent to each customer. Each sample shall be no larger than necessary for the customer to determine whether the product meets its requirements. The user shall maintain records showing:
</P>
<P>(1) The types of product samples prepared;
</P>
<P>(2) The size of the samples sent, on a one-time basis, to each prospective customer; and
</P>
<P>(3) The names and addresses of the prospective customers.
</P>
<P>(c) <I>Formula requirement.</I> Before the user begins to make a quantity greater than specified in this section, formula approval on TTB Form 5150.19 is required.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59456, Aug. 30,2016]


</CITA>
</DIV8>


<DIV7 N="282" NODE="27:1.0.1.1.16.7.282" TYPE="SUBJGRP">
<HEAD>Approval Policies</HEAD>


<DIV8 N="§ 20.100" NODE="27:1.0.1.1.16.7.282.6" TYPE="SECTION">
<HEAD>§ 20.100   General.</HEAD>
<P>(a) In addition to the limitations in this part, and if necessary to protect the revenue or public safety, the appropriate TTB officer, when approving Form 5150.19 may:
</P>
<P>(1) Specify on the Form 5150.19 the size of containers in which any article may be sold;
</P>
<P>(2) Specify the maximum quantity that may be sold to any person at one time; or
</P>
<P>(3) Restrict the sale of an article to a specific class of vendee and for a specific use.
</P>
<P>(b) Approval by the appropriate TTB officer of formulas, samples, or statements of process means only that they meet the standards of the Alcohol and Tobacco Tax and Trade Bureau. The approval does not require the issuance of a permit under subpart D of this part to withdraw and use specially denatured spirits in those formulas, articles, or statements of process.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-435, 66 FR 5474, Jan. 19, 2001; T.D. TTB-140 81 FR 59457, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.101" NODE="27:1.0.1.1.16.7.282.7" TYPE="SECTION">
<HEAD>§ 20.101   Drafting formulas.</HEAD>
<P>(a) In preparing Form 5150.19, the manufacturer shall, for each ingredient containing ethyl alcohol, identify—
</P>
<P>(1) The percent alcohol by volume of the ingredient, if known, and
</P>
<P>(2) The supplier's name and serial number or approval date of the supplier's approved formula covering the manufacture of the ingredient.
</P>
<P>(b) In preparing Form 5150.19, manufacturers may—
</P>
<P>(1) Identify ingredients by generic names rather than brand names, and
</P>
<P>(2) Identify quantities of ingredients used in ranges rather than in finite quantities.
</P>
<P>(c) If ranges of ingredients are used, as authorized by paragraph (b)(2) of this section—
</P>
<P>(1) The lower range shall not be zero for any ingredient, and
</P>
<P>(2) The range for usage of specially denatured spirits shall not exceed ±5%.


</P>
</DIV8>


<DIV8 N="§ 20.102" NODE="27:1.0.1.1.16.7.282.8" TYPE="SECTION">
<HEAD>§ 20.102   Bay rum, alcoholado, or alcoholado-type toilet waters.</HEAD>
<P>Unless manufactured exclusively for export under a formula approved by TTB and endorsed “For Export Only,” bay rum, alcoholado, or alcoholado-type toilet waters made with S.D.S. shall contain in each gallon of finished product:
</P>
<P>(a) 71 milligrams of denatonium benzoate (also known as benzyldiethyl (2:6-xylylcarbamoyl methyl) ammonium benzoate) in addition to any of this material used as a denaturant in the specially denatured alcohol;
</P>
<P>(b) 2 grams of tartar emetic; or
</P>
<P>(c) 0.5 avoirdupois ounce of sucrose octaacetate.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59457, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.103" NODE="27:1.0.1.1.16.7.282.9" TYPE="SECTION">
<HEAD>§ 20.103   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 20.104" NODE="27:1.0.1.1.16.7.282.10" TYPE="SECTION">
<HEAD>§ 20.104   Residual alcohol in spirit vinegar.</HEAD>
<P>Commercial strength (40 grain) vinegar made from specially denatured alcohol may contain trace amounts of residual alcohol, not to exceed 0.5 percent of alcohol by volume, in the finished product.


</P>
</DIV8>

</DIV7>


<DIV7 N="283" NODE="27:1.0.1.1.16.7.283" TYPE="SUBJGRP">
<HEAD>General-Use Formulas</HEAD>


<DIV8 N="§ 20.111" NODE="27:1.0.1.1.16.7.283.11" TYPE="SECTION">
<HEAD>§ 20.111   General.</HEAD>
<P>(a) Formula approval obtained on TTB Form 5150.19 is not required for an article made in accordance with any approved general-use formula that is specified in §§ 20.112 through 20.124, that is approved by the appropriate TTB officer as an alternate method, or that is published as a TTB Ruling on the TTB Web site at <I>https://www.ttb.gov.</I> However, a statement of process on TTB Form 5150.19 is still required in any of the circumstances described in § 20.94.
</P>
<P>(b) Any interested party may petition TTB for approval of a new general-use formula by submitting a letter describing the proposed general-use formula to the appropriate TTB officer.
</P>
<P>(c) The manufacturer shall ensure that each finished article made pursuant to a general-use formula is unfit for beverage use and is incapable of being reclaimed or diverted to beverage use or internal human use.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59457, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.112" NODE="27:1.0.1.1.16.7.283.12" TYPE="SECTION">
<HEAD>§ 20.112   Special industrial solvents general-use formula.</HEAD>
<P>(a) A special industrial solvent is any article made with any other ingredients combined with the ingredients in the minimum ratios prescribed in this section. A special industrial solvent shall be made with S.D.A. Formula No. 1, 3A, or 3C containing, for every 100 parts (by volume) of S.D.A.:
</P>
<P>(1) No less than 1 part (by volume) of one or any combination of the following: methyl isobutyl ketone, methyl <I>n</I>-butyl ketone, nitropropane (mixed isomers), propylene glycol monomethyl ether, or ethylene glycol monoethyl ether, and
</P>
<P>(2) No less than 5 parts (by volume) of one or any combination of the following: ethyl acetate (equivalent to 85% ester content, as defined in § 21.107 of this chapter), isopropyl alcohol, or methyl alcohol.
</P>
<P>(b) Special industrial solvents are intended for use as ingredients or solvents in manufacturing processes and shall not be distributed through retail channels for sale as consumer commodities for personal or household use. When a special industrial solvent is used in the manufacture of an article for sale, sufficient ingredients shall be added to definitely change the composition and character of the special industrial solvent. A special industrial solvent shall not be reprocessed into another solvent intended for sale if the other solvent would contain more than 50% alcohol by volume.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59457, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.113" NODE="27:1.0.1.1.16.7.283.13" TYPE="SECTION">
<HEAD>§ 20.113   Proprietary solvents general-use formula.</HEAD>
<P>A proprietary solvent made pursuant to this formula shall be made with alcohol denatured in accordance with S.D.A. Formula No. 1, 3-A, or 3-C and shall contain, for every 100 parts (by volume) of S.D.A.:
</P>
<P>(a) No less than 1 part (by volume) of one or any combination of the following: Gasoline, unleaded gasoline, heptane, or rubber hydrocarbon solvent, and
</P>
<P>(b) No less than 3 parts (by volume) of one or any combination of the following: Ethyl acetate (equivalent to 85 percent ester content, as defined in § 21.107 of this chapter), methyl isobutyl ketone, methyl n-butyl ketone, tert-butyl alcohol, sec-butyl alcohol, nitropropane (mixed isomers), ethylene glycol monoethyl ether, or toluene.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59457, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.114" NODE="27:1.0.1.1.16.7.283.14" TYPE="SECTION">
<HEAD>§ 20.114   Tobacco flavor general-use formula.</HEAD>
<P>This tobacco flavor general-use formula authorizes the production of any finished article made with alcohol denatured in accordance with S.D.A. Formula No. 4 or S.D.R. Formula No. 4 which—
</P>
<P>(a) Contains flavors sufficient to ensure that the article is unfit for beverage or internal human use,
</P>
<P>(b) May contain other ingredients, and
</P>
<P>(c) Is packaged, labeled, and sold or used as a tobacco flavor only.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59457, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.115" NODE="27:1.0.1.1.16.7.283.15" TYPE="SECTION">
<HEAD>§ 20.115   Ink general-use formula.</HEAD>
<P>This ink general-use formula authorizes the production of any finished article made with alcohol denatured in accordance with S.D.A. Formula No. 1, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A, or 40-B, which—
</P>
<P>(a) Contains pigments, dyes, or dyestuffs, which, alone or in combination with solvents or other ingredients, are sufficient to ensure that the article is unfit for beverage use,
</P>
<P>(b) May contain other ingredients, and
</P>
<P>(c) Is packaged, labeled and sold or used as an ink.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59457, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.116" NODE="27:1.0.1.1.16.7.283.16" TYPE="SECTION">
<HEAD>§ 20.116   Low alcohol general-use formula.</HEAD>
<P>This low alcohol general-use formula authorizes the production of any finished article containing not more than 5 percent alcohol by weight or volume. Articles containing no alcohol, or whose manufacture involves the recovery of S.D.S., shall be covered by a statement of process on TTB Form 5150.19 submitted under § 20.94.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59457, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.117" NODE="27:1.0.1.1.16.7.283.17" TYPE="SECTION">
<HEAD>§ 20.117   Reagent alcohol general-use formula.</HEAD>
<P>(a) <I>General.</I> Reagent alcohol must be made in accordance with paragraph (b) of this section and labeled in accordance with paragraph (c) of this section. Reagent alcohol is—
</P>
<P>(1) Treated as an article if distributed and used in accordance with paragraph (d) of this section; or
</P>
<P>(2) Treated as S.D.A. if distributed and used in accordance with paragraph (e) of this section.
</P>
<P>(b) <I>Formula.</I> Reagent alcohol shall be made with 95 parts (by volume) of S.D.A. 3-A, and 5 parts (by volume) of isopropyl alcohol. Water may be added at the time of manufacture. Reagent alcohol shall not contain any ingredient other than those specified in this paragraph.
</P>
<P>(c) <I>Labeling.</I> Each container of reagent alcohol, regardless of size, shall have affixed to it a label containing the following words that are as conspicuous as any other words on the container labels: “Reagent Alcohol: Specially Denatured Alcohol Formula 3-A, 95 parts by vol.; and Isopropyl Alcohol, 5 parts by vol.” If water is added at the time of manufacture, the label shall specify the composition of the product as diluted.
</P>
<P>(d) <I>Distribution and use of reagent alcohol as an article.</I> Reagent alcohol is treated as an article if distributed exclusively for the purpose of scientific use. Only the following distributions of reagent alcohol are permitted under this paragraph:
</P>
<P>(1) <I>For scientific use.</I> (i) <I>In smaller containers.</I> The manufacturer or repackager of the reagent alcohol, or an S.D.S. dealer, may distribute reagent alcohol in containers not exceeding four liters to laboratories or other persons who require reagent alcohol for scientific use.
</P>
<P>(ii) <I>In bulk containers.</I> The manufacturer of the reagent alcohol, or an S.D.S. dealer, may distribute reagent alcohol in containers larger than four liters to a laboratory or other person requiring reagent alcohol for scientific use if that laboratory or person is qualified to receive bulk shipments of reagent alcohol on October 31, 2016 or has received, from the appropriate TTB officer, approval of a letterhead application containing the following information:
</P>
<P>(A) The applicant's name, address, and permit number, if any;
</P>
<P>(B) An explanation of the applicant's need for bulk quantities of reagent alcohol;
</P>
<P>(C) A description of the security measures that will be taken to segregate reagent alcohol from denatured spirits or other alcohol that may be on the same premises; and
</P>
<P>(D) A statement that the applicant will allow any appropriate TTB officer to inspect the applicant's premises.
</P>
<P>(2) <I>For repackaging.</I> The manufacturer of the reagent alcohol, or an S.D.S. dealer, may distribute reagent alcohol in containers larger than 4 liters to the persons specified in this paragraph. Those persons must repackage the reagent alcohol in containers not exceeding 4 liters, label the smaller packages in accordance with paragraph (c) of this section, and redistribute them in accordance with paragraph (d)(1)(i) of this section. The persons to whom reagent alcohol may be distributed in bulk for repackaging under this paragraph are:
</P>
<P>(i) A proprietor of a bona fide laboratory supply house; and
</P>
<P>(ii) Any other person who was qualified to receive bulk shipments of reagent alcohol on October 31, 2016, or who has received, from the appropriate TTB officer, approval of a letterhead application containing all of the information required by paragraph (d)(1)(ii)(A) through (D), in addition to the following:
</P>
<P>(A) A statement that the applicant will comply with the labeling, packaging, and distribution requirements of paragraphs (c) and (d)(1) of this section; and
</P>
<P>(B) A statement that the applicant will comply with the requirements of § 20.133.
</P>
<P>(3) <I>For redistribution.</I> The manufacturer of the reagent alcohol, or an S.D.S. dealer, may distribute reagent alcohol in containers of any size to an S.D.S. dealer for redistribution in accordance with this section. An S.D.S. dealer distributing or redistributing reagent alcohol may repackage it in containers of any size permitted under this section that is necessary for the conduct of business.
</P>
<P>(e) <I>Distribution and use of reagent alcohol in manufacturing.</I> Reagent alcohol is treated as S.D.A. if distributed for the purpose of manufacturing. The following requirements apply to reagent alcohol treated as S.D.A.:
</P>
<P>(1) The manufacturer of the reagent alcohol, or an S.D.S. dealer, may distribute reagent alcohol in containers of any size to the persons specified in this paragraph for use in manufacturing.
</P>
<P>(2) A person may receive reagent alcohol for use in manufacturing if the person:
</P>
<P>(i) Holds a permit as an S.D.A. user;
</P>
<P>(ii) Has received formula approval on TTB Form 5150.19 to use reagent alcohol in manufacturing; and
</P>
<P>(iii) Treats the reagent alcohol as S.D.A., not an article.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59457, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.118" NODE="27:1.0.1.1.16.7.283.18" TYPE="SECTION">
<HEAD>§ 20.118   Rubbing alcohol general-use formula.</HEAD>
<P>(a) Rubbing alcohol is an article made with S.D.A. Formula No. 23-H (1) containing 70% ethyl alcohol by volume (2) made in accordance with one of the two formulas prescribed in paragraph (b) of this section, and (3) labeled in accordance with § 20.134(e) of this part.
</P>
<P>(b) Either of the following two formulas is approved for manufacturing rubbing alcohol:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="center" class="gpotbl_cell" colspan="2" scope="row">Formula A
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">S.D.A. formula no. 23-H</TD><TD align="left" class="gpotbl_cell">103.3 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sucrose octa-acetate</TD><TD align="left" class="gpotbl_cell">0.5 av.oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Water</TD><TD align="left" class="gpotbl_cell">q.s. 1 gallon.
</TD></TR><TR><TD align="center" class="gpotbl_cell" colspan="2" scope="row">(If desired, odorous, medicinal and/or colorative ingredients may be added.)
</TD></TR><TR><TD align="center" class="gpotbl_cell" colspan="2" scope="row">Formula B
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">S.D.A. formula no. 23-H</TD><TD align="left" class="gpotbl_cell">103.3 fl. oz.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Benzyldiethyl (2: 6-xylylcarbamoyl methyl) ammonium benzoate (denatonium benzoate) </TD><TD align="left" class="gpotbl_cell">0.88 grains.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Water</TD><TD align="left" class="gpotbl_cell">q.s. 1 gallon.
</TD></TR><TR><TD align="center" class="gpotbl_cell" colspan="2" scope="row">(If desired, odorous, medicinal and/or colorative ingredients may be added.)</TD></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59458, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.119" NODE="27:1.0.1.1.16.7.283.19" TYPE="SECTION">
<HEAD>§ 20.119   Toilet preparations containing not less than 10% essential oils general-use formula.</HEAD>
<P>This general-use formula describes an article containing not less than 10% essential oils by volume made with a formulation of S.D.A. authorized for that article on the following list:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Article
</TH><TH class="gpotbl_colhed" scope="col">Product code No.
</TH><TH class="gpotbl_colhed" scope="col">Formula authorized
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Bath preparations</TD><TD align="right" class="gpotbl_cell">142</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-B, 3-C, 23-A, 30, 36, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Colognes</TD><TD align="right" class="gpotbl_cell">122</TD><TD align="left" class="gpotbl_cell">38-B, 39, 39-A, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Deodorants (body)</TD><TD align="right" class="gpotbl_cell">114</TD><TD align="left" class="gpotbl_cell">23-A, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Hair and scalp preparations</TD><TD align="right" class="gpotbl_cell">111</TD><TD align="left" class="gpotbl_cell">3-B, 23-A, 23-F, 23-H, 37, 38-B, 39, 39-A, 39-B, 39-C, 39-D, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Lotions and creams (body, face, and hand)</TD><TD align="right" class="gpotbl_cell">113</TD><TD align="left" class="gpotbl_cell">23-A, 23-H, 31-A, 37, 38-B, 39, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Perfume materials (processing)</TD><TD align="right" class="gpotbl_cell">121</TD><TD align="left" class="gpotbl_cell">38-B, 39, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Perfumes and perfume tinctures</TD><TD align="right" class="gpotbl_cell">121</TD><TD align="left" class="gpotbl_cell">38-B, 39, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Shampoos</TD><TD align="right" class="gpotbl_cell">141</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-B, 3-C, 23-A, 27-B, 31-A, 36, 38-B, 39-A, 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Soaps, toilet</TD><TD align="right" class="gpotbl_cell">142</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30, 36, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Toilet waters</TD><TD align="right" class="gpotbl_cell">122</TD><TD align="left" class="gpotbl_cell">38-B, 39, 39-A, 39-B, 39-C, 40, 40-A, 40-B, 40-C.</TD></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985; T.D. TTB-140, 81 FR 59458, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.120" NODE="27:1.0.1.1.16.7.283.20" TYPE="SECTION">
<HEAD>§ 20.120   Multi-purpose general-use formula.</HEAD>
<P>TTB authorizes this general-use formula for the manufacture of any article that:
</P>
<P>(a) Is made with alcohol denatured in accordance with S.D.A. Formula No. 1, 3-A, 13-A, 19, 23-A, 23-H, 30, 32, 35-A, 36, 37, 38-D, 40, 40-A, and/or 40-B, but no other specially denatured spirits formula;
</P>
<P>(b) Conforms to one of the Use Codes specified in part 21 of this chapter authorized for the S.D.A. formulation(s) being used to make the article, other than Use Code 900, as described in part 21 of this chapter; and
</P>
<P>(c) Contains sufficient additional ingredients, other than the denaturants prescribed for the applicable S.D.A. formula(s) —
</P>
<P>(1) To definitely change the composition and character of the S.D.A. used to make the article, and
</P>
<P>(2) To ensure that the finished article is unfit for beverage or other internal human use, and, unless approved under § 20.193(b), is incapable of being reclaimed or diverted to beverage use or internal human use; and
</P>
<P>(d) Does not conform to any other general-use formula provided in subpart F of this part.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59458, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.121" NODE="27:1.0.1.1.16.7.283.21" TYPE="SECTION">
<HEAD>§ 20.121   Vinegar general-use formula.</HEAD>
<P>The vinegar general-use formula is a formula for making vinegar with alcohol denatured in accordance with S.D.A. Formula No. 18 in a process whereby all of the ethyl alcohol, except residual alcohol within the limit specified in § 20.104, loses its identity by being converted to vinegar.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59458, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.122" NODE="27:1.0.1.1.16.7.283.22" TYPE="SECTION">
<HEAD>§ 20.122   S.D.A. 39-C general-use formula.</HEAD>
<P>S.D.A. 39-C general-use formula is a formula for articles made with alcohol denatured in accordance with S.D.A. Formula No. 39-C. Articles made pursuant to this general-use formula shall contain, in each gallon of finished product, not less than 2 fl. oz. of perfume material (essential oils as defined in § 21.11, isolates, aromatic chemicals, etc.). Unless approved with the endorsement “for export only,” all articles made with alcohol denatured in accordance with S.D.A. Formula No. 39-C must be made in accordance with this formula.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59458, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.123" NODE="27:1.0.1.1.16.7.283.23" TYPE="SECTION">
<HEAD>§ 20.123   Pressurized container general-use formula.</HEAD>
<P>This general-use formula describes an article, made with alcohol denatured in accordance with S.D.A. Formula No. 40-C, that will be packaged in pressurized containers in which the liquid contents are in intimate contact with the propellant and from which the contents are not easily removable in liquid form.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59458, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.124" NODE="27:1.0.1.1.16.7.283.24" TYPE="SECTION">
<HEAD>§ 20.124   Duplicating fluid and ink solvent general-use formula.</HEAD>
<P>(a) Duplicating fluids and ink solvents under this general-use formula shall be made with alcohol denatured in accordance with S.D.A. Formula No. 1, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A, or 40-B, and
</P>
<P>(1) Shall contain, for every 100 parts (by volume) of denatured alcohol:
</P>
<P>(i) No less than 1 part (by volume) of <I>n</I>-propyl acetate, and no less than 10 parts (by volume) of one or any combination of isopropyl alcohol or methyl alcohol; or
</P>
<P>(ii) No less than 5 parts (by volume) of n-propyl acetate; and
</P>
<P>(2) May contain additional ingredients.
</P>
<P>(b) Duplicating fluids and ink solvents are intended for use in the printing industry, shall not be sold for general solvent use, and shall not be distributed through retail channels for sale as consumer commodities for personal or household use.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59458, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.16.8" TYPE="SUBPART">
<HEAD>Subpart G—Requirements Relating to Articles</HEAD>


<DIV8 N="§ 20.131" NODE="27:1.0.1.1.16.8.284.1" TYPE="SECTION">
<HEAD>§ 20.131   Scope of subpart.</HEAD>
<P>This subpart prescribes requirements relating to articles which may affect persons who are not required to obtain a permit under this part. These requirements, described in general terms in § 20.132, are imposed by law. Criminal penalties imposed for violating these requirements are described in § 20.137. In this subpart, the term “article” means any substance or preparation in the manufacture of which denatured spirits are used, including the product obtained by further manufacture or by combination with other materials, if the article subjected to further manufacture or combination contained denatured spirits.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59458, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.132" NODE="27:1.0.1.1.16.8.284.2" TYPE="SECTION">
<HEAD>§ 20.132   General requirements.</HEAD>
<P>(a) <I>Internal medicinal preparations and flavoring extracts</I>—(1) <I>Manufacture.</I> No person shall use denatured spirits in the manufacture of medicinal preparations or flavoring extracts for internal human use where any of the spirits remain in the finished product.
</P>
<P>(2) <I>Sale.</I> No person shall sell or offer for sale for internal human use any medicinal preparations or flavoring extracts manufactured from denatured distilled spirits where any of the spirits remain in the finished product.
</P>
<P>(3) <I>Labeling and advertising.</I> Labeling and advertising of articles shall not imply that the article is intended for or suitable for internal human use.
</P>
<P>(b) <I>Beverage use.</I> No person shall sell or offer for sale any article containing denatured spirits for beverage purposes. Labeling and advertising of articles shall not imply that the article is intended for or suitable for use as a beverage.
</P>
<P>(c) <I>Trafficking in articles.</I> The appropriate TTB officer may impose the requirements of § 20.133 on any person who reprocesses, rebottles, or repackages articles, deals in articles, or receives articles in containers exceeding one gallon.
</P>
<P>(d) <I>Analytical tolerance.</I> In the case of an article manufactured in accordance with a formula that specifies exact amounts of ingredients, including denatured spirits, TTB will apply an analytical tolerance of ±5% and use standard rounding rules in determining whether the article complies with the formula.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59458, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.133" NODE="27:1.0.1.1.16.8.284.3" TYPE="SECTION">
<HEAD>§ 20.133   Registration of persons trafficking in articles.</HEAD>
<P>(a) Upon written notice from the appropriate TTB officer, any person who reprocesses, rebottles, or repackages articles, deals in articles, or receives articles in containers exceeding one gallon may be required to submit any of the following:
</P>
<P>(1) Nature of activities to be conducted;
</P>
<P>(2) Name and address of supplier;
</P>
<P>(3) Size and type of containers in which articles will be received and, if applicable, rebottled or repackaged;
</P>
<P>(4) Maximum quantity of each article to be obtained during any calendar month;
</P>
<P>(5) Description of the reprocessing operation;
</P>
<P>(6) Samples of the reprocessed article;
</P>
<P>(7) Labels and advertising materials; and,
</P>
<P>(8) Names and addresses of recipients of articles and quantities received;
</P>
<P>(b) A person who reprocesses articles shall ensure that each article containing 0.5 percent or more alcohol by weight or volume is unfit for beverage or internal human use and is incapable of being reclaimed or diverted to beverage use or internal human use.
</P>
<P>(c) The appropriate TTB officer will prohibit any of the activities described in paragraph (a) of this section if the activity jeopardizes the revenue or increases the burden of administering this part.


</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59459, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.134" NODE="27:1.0.1.1.16.8.284.4" TYPE="SECTION">
<HEAD>§ 20.134   Labeling.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in paragraph (b) or (c) of this section, the immediate container of each article shall, before removal from the manufacturer's premises, bear the following information either directly on the container or on a label securely attached to it:
</P>
<P>(1) The name, trade name or brand name of the article; and
</P>
<P>(2) The name and address (city and State) of the manufacturer or distributor of the article.
</P>
<P>(b) <I>Articles for external human use.</I> Except as provided in paragraph (c) of this section, an article intended for external human use shall, before removal from the manufacturer's premises, have a label affixed to its immediate container identifying the name, trade name or brand name of the article. If the volume of the article in the container exceeds 8-fluid ounces, the label shall also show the information required by paragraph (b) (1) or (2) of this section.
</P>
<P>(1) If the article was packaged or bottled by the person who manufactured it, the label shall identify—
</P>
<P>(i) The manufacturer's name and the address (city and State) of the actual place or places where article was manufactured, or
</P>
<P>(ii) The name and principal office address (city and State) of the manufacturer, and the permit number or numbers of the place or places of manufacture. However, in lieu of such permit number or numbers, the place or places where the manufacturing operation occurred may be indicated by a coding system. Prior to using a coding system, the manufacturer shall send a notice explaining the coding system to the appropriate TTB officer, or
</P>
<P>(iii) The manufacturer's permit number and the name and address (city and State), of the person for whom the article was packaged and bottled.
</P>
<P>(2) If the article was packaged or bottled by a person other than the manufacturer of the article, the label shall identify—
</P>
<P>(i) The name and address (city and State) of the person by whom or for whom the article was packaged or bottled, and
</P>
<P>(ii) The permit number of the manufacturer or distributor.
</P>
<P>(3) If a permit number is required to be shown on the label, it may be shown utilizing a State code number, in accordance with § 20.135.
</P>
<P>(c) <I>Shipment of unlabeled articles.</I> A manufacturer may, subject to the approval of the appropriate TTB officer and compliance with § 20.133, remove an unlabeled article from the manufacturer's premises, if the outer containers of the article are labeled with the name, trade name or brand name of the article and the names and addresses (city and State) of the manufacturer and the consignee.
</P>
<P>(d) <I>Use of the words “denatured alcohol.”</I> If the words “denatured alcohol” appear on the label of an article, the label shall also have a name, trade name or brand name which appears as conspicuously as the words “denatured alcohol.”
</P>
<P>(e) <I>Use of the words “rubbing alcohol.”</I> If the words “rubbing alcohol” appear on the label of an article, (1) the article shall be made in accordance with § 20.118 of this part, and (2) the label (i) shall have the words “rubbing alcohol” in letters of the same color and size, (ii) shall identify the name and address (city and State) of the manufacturer or bottler, (iii) shall state the alcohol content as 70% by volume with no reference to the proof strength, and (iv) shall have the warning “For external use only. If taken internally, will cause serious gastric disturbances.” An alcohol rub made from any other material, such as isopropyl alcohol, shall not be labeled “Rubbing Alcohol” unless the label informs the consumer that the preparation was not made with specially denatured alcohol.
</P>
<P>(f) <I>Distributor labeling.</I> Distributors of an article may place minimal identifying information (name, address and a phrase such as “distributed by”) on the label of that article (or on an additional label) without qualifying in any manner under this part; provided:
</P>
<P>(1) The article is produced, packaged and labeled as provided in this part; and
</P>
<P>(2) The distributor does not produce, repackage or reprocess the article.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T..D ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by ATF-332, 57 FR 40849, Sept. 8, 1992; T.D. TTB-140, 81 FR 59459, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.135" NODE="27:1.0.1.1.16.8.284.5" TYPE="SECTION">
<HEAD>§ 20.135   State code numbers.</HEAD>
<P>In showing the permit number on labels as provided in § 20.134(b)(2)(ii), the permittee who distributes the article may substitute the appropriate number shown below for the State abbreviation. For example, permit number SDA-CONN-1234 may be shown on the labels as SDA-07-1234. The code numbers for the respective State are as follows:
</P>
<EXTRACT>
<SCOL2>
<LI>01—Alabama</LI>
<LI>02—Alaska</LI>
<LI>03—Arizona</LI>
<LI>04—Arkansas</LI>
<LI>05—California</LI>
<LI>06—Colorado</LI>
<LI>07—Connecticut</LI>
<LI>08—Delaware</LI>
<LI>09—DC</LI>
<LI>10—Florida</LI>
<LI>11—Georgia</LI>
<LI>12—Hawaii</LI>
<LI>13—Idaho</LI>
<LI>14—Illinois</LI>
<LI>15—Indiana</LI>
<LI>16—Iowa</LI>
<LI>17—Kansas</LI>
<LI>18—Kentucky</LI>
<LI>19—Louisiana</LI>
<LI>20—Maine</LI>
<LI>21—Maryland</LI>
<LI>22—Massachusetts</LI>
<LI>23—Michigan</LI>
<LI>24—Minnesota</LI>
<LI>25—Mississippi</LI>
<LI>26—Missouri</LI>
<LI>27—Montana</LI>
<LI>28—Nebraska</LI>
<LI>29—Nevada</LI>
<LI>30—New Hampshire</LI>
<LI>31—New Jersey</LI>
<LI>32—New Mexico</LI>
<LI>33—New York</LI>
<LI>34—North Carolina</LI>
<LI>35—North Dakota</LI>
<LI>36—Ohio</LI>
<LI>37—Oklahoma</LI>
<LI>38—Oregon</LI>
<LI>39—Pennsylvania</LI>
<LI>40—Rhode Island</LI>
<LI>41—South Carolina</LI>
<LI>42—South Dakota</LI>
<LI>43—Tennessee</LI>
<LI>44—Texas</LI>
<LI>45—Utah</LI>
<LI>46—Vermont</LI>
<LI>47—Virginia</LI>
<LI>48—Washington</LI>
<LI>49—West Virginia</LI>
<LI>50—Wisconsin</LI>
<LI>51—Wyoming</LI></SCOL2></EXTRACT>
</DIV8>


<DIV8 N="§ 20.136" NODE="27:1.0.1.1.16.8.284.6" TYPE="SECTION">
<HEAD>§ 20.136   Labeling regulations of other agencies.</HEAD>
<P>Other Federal agencies have promulgated regulations that may affect the labeling of denatured spirits or articles. Manufacturers are responsible for properly labeling denatured spirits and articles in compliance with all applicable regulations of those other Federal agencies, which may include:
</P>
<P>(a) The Consumer Product Safety Commission, which has promulgated regulations to administer the Federal Hazardous Substances Act, which include regulations in 16 CFR chapter II that require warning labels for products containing certain specified substances like methyl alcohol, which is a denaturant in formulations of S.D.A. Formula Nos. 3-A and 30, and is a hazardous substance at levels of 4 percent or more by weight;
</P>
<P>(b) The Federal Trade Commission, which has promulgated regulations in 16 CFR chapter I to administer the Fair Packaging and Labeling Act, which affect the packaging and labeling of “consumer commodities” (which generally means products intended for retail sale to an individual for personal or household use);
</P>
<P>(c) The Food and Drug Administration, which has promulgated regulations in 21 CFR chapter I to administer the Fair Packaging and Labeling Act (as it applies to drugs, medical devices, or cosmetics) and the Federal Food, Drug and Cosmetic Act; and
</P>
<P>(d) The Occupational Safety and Health Administration, which administers the Occupational Safety and Health Act of 1970 and has promulgated regulations in 29 CFR chapter XVII concerning the communication of hazards.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59459, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.137" NODE="27:1.0.1.1.16.8.284.7" TYPE="SECTION">
<HEAD>§ 20.137   Penalties.</HEAD>
<P>Violation of the requirements prescribed in § 20.132 is punishable by a fine of not more than $10,000 and/or imprisonment for not more than 5 years for each offense. In addition, persons who manufacture (including reprocess), sell, or transport articles in violation of this part are liable for payment of a tax on the articles at the rate imposed by law on distilled spirits.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1402 (26 U.S.C. 5001, 5607))


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.16.9" TYPE="SUBPART">
<HEAD>Subpart H—Sale and Use of Completely Denatured Alcohol</HEAD>


<DIV8 N="§ 20.141" NODE="27:1.0.1.1.16.9.284.1" TYPE="SECTION">
<HEAD>§ 20.141   General.</HEAD>
<P>(a) Each formulation of completely denatured alcohol may be sold and used for any purpose, subject to the limitations in the formula prescribed in part 21 of this chapter. For example, formulations of C.D.A. Formula No. 18 or 19 may be used:
</P>
<P>(1) In the manufacture of definite chemical substances where the alcohol is changed into some other chemical substance and does not appear in the finished product;
</P>
<P>(2) In the arts and industries, including but not limited to the manufacture of cleaning fluids, detergents, proprietary antifreeze solutions, thinners, lacquers, and brake fluids; and
</P>
<P>(3) For fuel, light, and power.
</P>
<P>(b) Completely denatured alcohol may not be used in the manufacture of preparations or products for internal human use or consumption where any of the alcohol or the denaturants used in that alcohol remain in the finished product.
</P>
<P>(c) Persons distributing and using (but not recovering for reuse) completely denatured alcohol are not required to obtain a permit or file a bond under this part.
</P>
<P>(d) Any person recovering completely denatured alcohol for reuse shall obtain a permit under subpart D of this part if the recovered alcohol does not contain all of the original denaturants of the completely denatured alcohol.
</P>
<P>(e) Containers of products manufactured with completely denatured alcohol (such as proprietary antifreeze solutions, solvents, thinners, and lacquers) may not be branded as completely denatured alcohol. These products may not be advertised, shipped, sold, or offered for sale as completely denatured alcohol.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59459, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.142" NODE="27:1.0.1.1.16.9.284.2" TYPE="SECTION">
<HEAD>§ 20.142   Records of bulk conveyances.</HEAD>
<P>If completely denatured alcohol is to be shipped in a bulk conveyance, the shipment shall be accompanied by a record which identifies each car, truck, or compartment, the name and location (city or town and State) of both the consignor and consignee, the quantity in gallons, and the formula number of the completely denatured alcohol.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.143" NODE="27:1.0.1.1.16.9.284.3" TYPE="SECTION">
<HEAD>§ 20.143   Receipt.</HEAD>
<P>Unless completely denatured alcohol received in bulk conveyances or by pipeline is to be used immediately, it shall be deposited in storage tanks, stored in the tank cars or tank trucks in which received, or drawn into packages which shall be marked or labeled as required by this subpart.


</P>
</DIV8>


<DIV8 N="§ 20.144" NODE="27:1.0.1.1.16.9.284.4" TYPE="SECTION">
<HEAD>§ 20.144   Packages of completely denatured alcohol.</HEAD>
<P>Packages containing more than 5 gallons of completely denatured alcohol shall be of metal or other equally suitable material approved by the appropriate TTB officer. The openings of these packages shall be sealed with appropriate seals furnished by the person filling the packages.


</P>
</DIV8>


<DIV8 N="§ 20.145" NODE="27:1.0.1.1.16.9.284.5" TYPE="SECTION">
<HEAD>§ 20.145   Encased containers.</HEAD>
<P>Completely denatured alcohol may be packaged by distributors in unlabeled containers which are completely encased in wood, fiberboard, or similar material so that the surface (including the opening) of the actual container is not exposed. When completely denatured spirits are packaged in unlabeled containers, the distributor shall apply the required marks or label to an exposed surface of the case. The case shall be so constructed that the portion containing the marks will be securely attached to the encased container until all of the contents have been removed. A statement reading “Do Not Remove Inner Container Until Emptied,” or words of similar meaning, shall be placed on the portion of the case bearing the marks.


</P>
</DIV8>


<DIV8 N="§ 20.146" NODE="27:1.0.1.1.16.9.284.6" TYPE="SECTION">
<HEAD>§ 20.146   Labels on bulk containers.</HEAD>
<P>(a) Completely denatured alcohol in bulk containers with a capacity exceeding 1 gallon shall be labeled on the head or side of the container or on the side of the casing, with the following:
</P>
<P>(1) The name and address of the person filling the containers;
</P>
<P>(2) The contents in gallons:
</P>
<P>(3) The words “Completely Denatured Alcohol”; and
</P>
<P>(4) The formula number.
</P>
<P>(b) Packages of 5 gallons or less shall bear labels required by § 20.147, in lieu of the labels required by this section.
</P>
<P>(c) The letters and figures used for marking packages shall be large enough to be easily read and, when printed, labeled, or stenciled, shall be in permanent ink and shall contrast distinctly with the background to which applied.
</P>
<P>(d) Packages may also be marked with the brand name and a statement to the type of merchandise contained in the package if these markings do not obscure or detract from the required markings. The person filling the packages shall maintain the record required by § 20.261.


</P>
</DIV8>


<DIV8 N="§ 20.147" NODE="27:1.0.1.1.16.9.284.7" TYPE="SECTION">
<HEAD>§ 20.147   Labels on consumer-size containers.</HEAD>
<P>(a) Each consumer-size container with a capacity of 5 gallons or less of completely denatured alcohol sold or offered for sale by a distributor shall bear a label showing, in plain, legible letters, the following:
</P>
<P>(1) The words “Completely Denatured Alcohol”;
</P>
<P>(2) The statement “Caution—contains poisonous ingredients”; and
</P>
<P>(3) The name and address of the distributor filling the packages, unless shown elsewhere on the package.
</P>
<P>(b) No other information (except that required by State or Federal law) may be shown on the label without the appropriate TTB officer's approval. The word “pure”, qualifying denatured alcohol may not appear on the label or the container.
</P>
<P>(c) The requirements of paragraphs (a) and (b) of this section apply to any person who sells completely denatured alcohol at wholesale or retail.


</P>
</DIV8>


<DIV8 N="§ 20.148" NODE="27:1.0.1.1.16.9.284.8" TYPE="SECTION">
<HEAD>§ 20.148   Manufacture of articles with completely denatured alcohol.</HEAD>
<P>Articles may be made with completely denatured alcohol for sale under brand names. If ingredients are added in sufficient quantities to materially change the composition and character of the completely denatured alcohol, the article is not classified as completely denatured alcohol and may not be marked, branded, or sold as completely denatured alcohol.


</P>
</DIV8>


<DIV8 N="§ 20.149" NODE="27:1.0.1.1.16.9.284.9" TYPE="SECTION">
<HEAD>§ 20.149   Records.</HEAD>
<P>Records of transactions in completely denatured alcohol and articles made with completely denatured alcohol shall be maintained as prescribed in § 20.261.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.16.10" TYPE="SUBPART">
<HEAD>Subpart I—Operations by Dealers and Users of Specially Denatured Spirits</HEAD>


<DIV7 N="284" NODE="27:1.0.1.1.16.10.284" TYPE="SUBJGRP">
<HEAD>Obtaining Specially Denatured Spirits</HEAD>


<DIV8 N="§ 20.161" NODE="27:1.0.1.1.16.10.284.1" TYPE="SECTION">
<HEAD>§ 20.161   Withdrawals under permit.</HEAD>
<P>(a) <I>General.</I> The permit, Form 5150.9, issued under subpart D of this part, authorizes a person to withdraw specially denatured spirits from the bonded premises of a distilled spirits plant or a dealer. 
</P>
<P>(b) <I>Photocopying of permit, Form 5150.9.</I> (1) As provided in § 20.54, a permittee may make photocopies of its permit, or amended permit, for the exclusive purpose of furnishing proof of authorization to withdraw specially denatured spirits.
</P>
<P>(2) A permittee need only furnish the photocopy of its permit, or amended permit, to a distilled spirits plant or dealer for the “initial order” from that distilled spirits plant or dealer.
</P>
<P>(3) When a permittee makes photocopies of its permit, Form 5150.9, each copy must be signed, dated, and contain the word “COPY” across the face.
</P>
<P>(4) A permittee is responsible for obtaining and, as applicable, destroying all photocopies of its permit from distilled spirits plants and dealers when: (i) An amended or corrected permit is issued which supersedes the copy on file, (ii) the permit is canceled by reason of requalification as a new permittee, (iii) the permit is revoked or suspended, or (iv) upon permanent discontinuance of dealing in or using specially denatured spirits.
</P>
<P>(c) <I>Withdrawals.</I> (1) When a permittee places an initial order for specially denatured spirits the permittee will forward a signed copy of its permit, for retention by the distilled spirits plant or dealer, along with the purchase request.
</P>
<P>(2) When the permittee places a subsequent order for specially denatured spirits, the purchase request, in addition to any other information, will contain the permit identification number along with a statement that the permittee possesses a valid permit to withdraw specially denatured spirits, a copy of which is on file with the supplier.
</P>
<P>(3) Shipments will not be made by a proprietor of a distilled spirits plant or dealer until it is in possession of a signed copy of a valid permit, Form 5150.9, unless the appropriate TTB officer authorizes the shipment.
</P>
<SECAUTH TYPE="N">(19 U.S.C. 81c; Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended, 1395, as amended (26 U.S.C. 5271, 5555))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985, as amended by T.D. ATF-274, 53 FR 25156, July 5, 1988; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 20.162" NODE="27:1.0.1.1.16.10.284.2" TYPE="SECTION">
<HEAD>§ 20.162   Regulation of withdrawals.</HEAD>
<P>(a) Each permittee shall regulate its withdrawals of specially denatured spirits to ensure that (1) the quantity on hand and unaccounted for does not exceed the capacity of the storage facilities, and (2) the cumulative quantity withdrawn or received in any calendar year does not exceed the quantity authorized by the permit, Form 5150.9. Recovered alcohol will be taken into account in determining the total quantity of alcohol on hand.
</P>
<P>(b) For the purpose of this section, specially denatured spirits and recovered alcohol will be considered as unaccounted for if lost under circumstances where a claim for allowance is required by this part and the claim has not been allowed, or if used or disposed of in any manner not provided for in this part.


</P>
</DIV8>


<DIV8 N="§ 20.163" NODE="27:1.0.1.1.16.10.284.3" TYPE="SECTION">
<HEAD>§ 20.163   Receipt and storage of specially denatured spirits.</HEAD>
<P>(a) <I>Receipt of bulk conveyances or by pipeline.</I> A permittee who receives specially denatured spirits in bulk conveyances or by pipeline shall: (1) Deposit the specially denatured spirits into storage tanks as provided by § 20.165; (2) draw the specially denatured spirits into packages marked and labeled as required by paragraph (b) of this section; (3) store the specially denatured spirits in the tank truck or tank car in which received if the conveyance is effectively immobilized within an enclosure secured to prevent unauthorized access; or (4) use the specially denatured spirits immediately in accordance with an approved formula or statement of process.
</P>
<P>(b) <I>Marks on portable containers.</I> (1) A user who receives specially denatured spirits in bulk conveyances or by pipeline and who transfers the spirits to drums shall plainly label them to show (i) the words “Specially Denatured Alcohol” or “Specially Denatured Rum”, and (ii) the formula number.
</P>
<P>(2) A dealer who fills packages of specially denatured spirits shall label them in accordance with § 20.178.
</P>
<P>(c) <I>Receipt of portable containers.</I> A permittee who receives specially denatured spirits in portable containers such as drums or barrels shall transfer the specially denatured spirits to storage tanks or deposit the specially denatured spirits in a storeroom as provided in § 20.165, or use the spirits in accordance with an approved formula or statement of process. A user may not transfer the spirits to other portable containers for storage except in the following circumstances:
</P>
<P>(1) Contents of damaged packages may be transferred to new packages to prevent loss or waste; or
</P>
<P>(2) Contents of portable containers may be transferred to “safety” containers to comply with city or State fire code regulations, or on filing notice with the appropriate TTB officer to comply with the safety practices of the user. The user shall label the new containers with the information marked on the original containers and shall also identify the new containers as “repackaged.”
</P>
<P>(d) <I>Record of receipt.</I> Records of receipt will consist of the consignor's invoice or bill of lading which identifies the quantities, formula number(s), and serial numbers of containers of specially denatured spirits, and which has been annotated by the consignee with the date of receipt of the shipment.
</P>
<P>(e) <I>Losses.</I> On receipt of specially denatured spirits, the user shall determine and account for any losses in transit in accordance with subpart J of this part.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59459, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="285" NODE="27:1.0.1.1.16.10.285" TYPE="SUBJGRP">
<HEAD>Premises and Equipment</HEAD>


<DIV8 N="§ 20.164" NODE="27:1.0.1.1.16.10.285.4" TYPE="SECTION">
<HEAD>§ 20.164   Premises.</HEAD>
<P>(a) A permittee shall have premises suitable for the business being conducted and adequate for protecting the revenue.
</P>
<P>(b) Storage facilities shall be provided on the premises for specially denatured spirits received or recovered. Except as provided in paragraph (c) of this section, storage facilities shall consist of storerooms, compartments, or stationary storage tanks (not necessarily in a room or building).
</P>
<P>(c) A permittee receiving and storing specially denatured spirits in tank cars or tank trucks, as provided in § 20.163, need not provide stationary storage tanks.
</P>
<P>(d) If specially denatured spirits are received at or removed from a permittee's premises in bulk conveyances, suitable facilities for those operations shall be provided.
</P>
<P>(e) The appropriate TTB officer may require the storage facilities or distilling equipment to be secured with Government locks or seals, or both.


</P>
</DIV8>


<DIV8 N="§ 20.165" NODE="27:1.0.1.1.16.10.285.5" TYPE="SECTION">
<HEAD>§ 20.165   Storage facilities.</HEAD>
<P>(a) Storerooms shall be constructed and secured to prevent unauthorized access and the entrance doors shall be equipped for locking.
</P>
<P>(b) Each stationary tank used for the storage of specially denatured spirits shall be equipped for locking to control access to the denatured spirits. An accurate means of measuring its contents shall be provided for each tank.
</P>
<P>(c) Storerooms and storage tanks shall be kept locked when unattended. A storage cabinet or locker kept inside a room which is locked when unattended is considered to be adequately secured.


</P>
</DIV8>


<DIV8 N="§ 20.166" NODE="27:1.0.1.1.16.10.285.6" TYPE="SECTION">
<HEAD>§ 20.166   Stills and other equipment.</HEAD>
<P>If recovered denatured spirits or articles are to be restored on the permittee's premises, all equipment to be used in the restoration process shall be located on the permit premises. Distilling apparatus or other equipment, including pipelines, for restoration or for recovery, shall be constructed and secured in such a manner as to prevent unauthorized access to the denatured spirits and so arranged as to be readily inspected by appropriate TTB officers.


</P>
</DIV8>


<DIV8 N="§ 20.167" NODE="27:1.0.1.1.16.10.285.7" TYPE="SECTION">
<HEAD>§ 20.167   Recovered and restored denatured spirits tanks.</HEAD>
<P>Suitable storage tanks shall be provided for recovered and restored denatured spirits. Each storage tank for recovered and restored denatured spirits shall be—
</P>
<P>(a) Durably marked to show its capacity and use,
</P>
<P>(b) Equipped for locking to control access to the contents, and
</P>
<P>(c) Provided with an accurate means of measuring its contents.


</P>
</DIV8>

</DIV7>


<DIV7 N="286" NODE="27:1.0.1.1.16.10.286" TYPE="SUBJGRP">
<HEAD>Inventory and Records</HEAD>


<DIV8 N="§ 20.170" NODE="27:1.0.1.1.16.10.286.8" TYPE="SECTION">
<HEAD>§ 20.170   Physical inventory.</HEAD>
<P>Once in each calendar year and when requested by an appropriate TTB officer, each permittee shall perform and record a physical inventory of each formulation of new and recovered specially denatured spirits.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, 59459, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.171" NODE="27:1.0.1.1.16.10.286.9" TYPE="SECTION">
<HEAD>§ 20.171   Record of shipment.</HEAD>
<P>(a) <I>Dealer.</I> When a dealer transfers new or recovered specially denatured spirits to a distilled spirits plant or permittee in the normal course of business or in accordance with § 20.216 or § 20.231 of this part, the dealer shall prepare a record of shipment in accordance with paragraph (c) of this section. Dealers shall consistently use the same record series for the record of shipment. A dealer's record of shipment shall show a serial number or other unique number.
</P>
<P>(b) <I>User.</I> When a user transfers new or recovered specially denatured spirits to a distilled spirits plant or permittee in accordance with § 20.216, 20.231, or 20.235 of this part, the user shall prepare a record of shipment in accordance with paragraph (c) of this section.
</P>
<P>(c) <I>Record.</I> The record of shipment shall consist of an invoice, bill of lading or similar document which shows the following information:
</P>
<P>(1) Date of shipment;
</P>
<P>(2) Consignor's name and address;
</P>
<P>(3) Consignee's name, address, and permit number or distilled spirits plant registry number;
</P>
<P>(4) For each formula of specially denatured spirits—
</P>
<P>(i) The formula number,
</P>
<P>(ii) The number and sizes of containers, and
</P>
<P>(iii) The total quantity; and,
</P>
<P>(5) If the specially denatured spirits are recovered, the word “recovered” shall appear on the record.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.172" NODE="27:1.0.1.1.16.10.286.10" TYPE="SECTION">
<HEAD>§ 20.172   Records.</HEAD>
<P>In addition to the records required by this subpart, permittees shall maintain records required in subpart P of this part.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="287" NODE="27:1.0.1.1.16.10.287" TYPE="SUBJGRP">
<HEAD>Operations by Dealers</HEAD>


<DIV8 N="§ 20.175" NODE="27:1.0.1.1.16.10.287.11" TYPE="SECTION">
<HEAD>§ 20.175   Shipment for account of another dealer.</HEAD>
<P>(a) A dealer may order specially denatured spirits shipped directly from a denaturer or another dealer to a customer (dealer or user).
</P>
<P>(b) The dealer who ordered the shipment of specially denatured spirits shall forward a copy of his or her permit, Form 5150.9, and the consignee's permit, Form 5150.9, to the person actually shipping the specially denatured spirits.
</P>
<P>(c) The dealer who ordered the shipment shall be liable for the tax while the specially denatured spirits are in transit and the person actually shipping the specially denatured spirits shall not be liable except as provided in 26 U.S.C. 5001(a)(4) and (5).
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 FR 17939, Apr. 12, 2002; 67 FR 20868, Apr. 26, 2002; T.D. TTB-140, 81 FR 59459, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.176" NODE="27:1.0.1.1.16.10.287.12" TYPE="SECTION">
<HEAD>§ 20.176   Packaging by a dealer.</HEAD>
<P>A dealer may package specially denatured spirits in containers of any size necessary for the conduct of business. After filling packages, the dealer shall accurately determine the contents of each package. After filling drums, the dealer shall seal all the drum openings with the dealer's own seals. Packages of specially denatured spirits shall be marked or labeled in accordance with § 20.178.


</P>
</DIV8>


<DIV8 N="§ 20.177" NODE="27:1.0.1.1.16.10.287.13" TYPE="SECTION">
<HEAD>§ 20.177   Encased containers.</HEAD>
<P>(a) A dealer may package specially denatured spirits in unlabeled containers which are completely encased in wood, fiberboard, or similar material. The total surface (including the opening) of the actual container of the spirits must be enclosed.
</P>
<P>(b) When specially denatured spirits are packaged in unlabeled containers, the dealer shall apply the required marks to an exposed surface of the case. The case shall be constructed so that the portion bearing the marks will remain securely attached to the encased container until all the spirits have been removed. A statement reading “Do not remove inner container until emptied,” or of similar meaning, shall be placed on the portion of the case bearing the marks.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 FR 17939, Apr. 12, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 20.178" NODE="27:1.0.1.1.16.10.287.14" TYPE="SECTION">
<HEAD>§ 20.178   Marks and brands on containers of specially denatured spirits.</HEAD>
<P>(a) <I>Required marks.</I> Each dealer who fills packages of specially denatured spirits shall mark or label each package with the following information:
</P>
<P>(1) Quantity, in gallons, or in liters and gallons;
</P>
<P>(2) Package identification number or serial number (see § 20.179);
</P>
<P>(3) Name and permit number of the dealer;
</P>
<P>(4) The words “Specially Denatured Alcohol” or “Specially Denatured Rum,” or an appropriate abbreviation;
</P>
<P>(5) Formula number;
</P>
<P>(6) Proof, if the spirits were denatured at other than 190° proof;
</P>
<P>(7) Denaturants used, if alcohol was denatured under an approved formula authorizing a choice of denaturants; and
</P>
<P>(8) Quantity of denaturants used, if the approved formula authorizes a choice of quantities of denaturants.
</P>
<P>(b) <I>Location of marks.</I> The dealer shall place the required marks on the head of the package or on the side of the case.
</P>
<P>(c) <I>Other marks.</I> Other marks authorized by this paragraph may not interfere with or detract from the marks required by this subpart. The dealer may place marks other than the required marks on the Government head or Government side of the package if the other marks—
</P>
<P>(1) Are authorized by the appropriate TTB officer, or
</P>
<P>(2) Consist of a brand name, or consist of caution notices, or consist of other material required by Federal or State law or regulations.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))


</SECAUTH>
</DIV8>


<DIV8 N="§ 20.179" NODE="27:1.0.1.1.16.10.287.15" TYPE="SECTION">
<HEAD>§ 20.179   Package identification number or serial number.</HEAD>
<P>(a) <I>Requirement.</I> A dealer who fills packages with specially denatured spirits shall mark each package with a package identification number, in accordance with paragraph (b) of this section, or a serial number, in accordance with paragraph (c) of this section.
</P>
<P>(b) <I>Package identification number.</I> A package identification number shall apply to all of the packages filled at the same time on which all of the marks required by § 20.178 (a)(1) and (a)(3) through (a)(8) are identical. All of the packages in one lot shall be the same type, have the same rated capacity, and be uniformly filled with the same quantity. A package identification number shall be derived from the date on which the package is filled, and shall consist of the following elements, in the order shown—
</P>
<P>(1) The last two digits of the calendar year;
</P>
<P>(2) An alphabetical designation from “A” through “L,” representing January through December, in that order;
</P>
<P>(3) The digits corresponding to the day of the month; and
</P>
<P>(4) A letter suffix when more than one identical lot is filled into packages during the same day. For successive lots after the first lot, a letter suffix shall be added in alphabetical order, with “A” representing the second lot of the day, “B” representing the third lot of the day, etc. (e.g., the first three lots filled into packages on November 19, 1983, would be identified as “83K19,” “83K19A,” and “83K19B”).
</P>
<P>(c) <I>Serial number.</I> A consecutive serial number shall be marked on each package, beginning with the number “1” and continuing in regular sequence. The dealer shall use a separate but similar number series for packages containing specially denatured rum. When any numbering series reaches “1,000,000”, the dealer may recommence the series by providing an alphabetical prefix or suffix for each number in the new series.
</P>
<P>(d) <I>Continuation of numbering series.</I> If a change in proprietorship, name, or trade name occurs, the numbering system in use at the time of the change may be continued. If serial numbers are used at the time of a change, the numbering series in use at the time of the change may be continued.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))


</SECAUTH>
</DIV8>


<DIV8 N="§ 20.180" NODE="27:1.0.1.1.16.10.287.16" TYPE="SECTION">
<HEAD>§ 20.180   Record of packages filled.</HEAD>
<P>(a) <I>Requirement to keep record.</I> A dealer shall keep a record when filling packages with specially denatured spirits. The dealer shall keep a separate record of packages for each formula of specially denatured alcohol and specially denatured rum.
</P>
<P>(b) <I>Information to be shown.</I> The dealer shall show the following information on the record of packages filled—
</P>
<P>(1) Date packages filled;
</P>
<P>(2) Package identification number and number of packages in each identical lot filled, or the serial numbers;
</P>
<P>(3) Kinds of packages;
</P>
<P>(4) Wine gallons or liters;
</P>
<P>(5) Kind of specially denatured spirits and formula number; and
</P>
<P>(6) Proof, if the spirits were denatured at other than 190° proof.
</P>
<P>(c) <I>Filing.</I> The dealer shall retain the record at the premises and shall file it according to the serial numbers or package identification numbers of the packages.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.181" NODE="27:1.0.1.1.16.10.287.17" TYPE="SECTION">
<HEAD>§ 20.181   Limitations on shipments.</HEAD>
<P>(a) <I>Shipments made under permit.</I> A dealer may ship specially denatured spirits to users and other dealers under the consignee's permit, Form 5150.9. The dealer may not ship specially denatured spirits before receiving the consignee's permit, Form 5150.9, unless the shipment has been authorized by the appropriate TTB officer.
</P>
<P>(b) <I>Shipments of samples.</I> A dealer may ship samples of specially denatured spirits to the persons authorized to receive them, and in the quantities permitted by subpart O of this part.


</P>
</DIV8>


<DIV8 N="§ 20.182" NODE="27:1.0.1.1.16.10.287.18" TYPE="SECTION">
<HEAD>§ 20.182   Bulk shipments.</HEAD>
<P>(a) <I>Use.</I> Dealers may ship specially denatured spirits in bulk conveyances. The dealer shall seal the bulk conveyances at the time of filling with railroad or other appropriate serially numbered seals dissimilar in marking from cap seals used by the Alcohol and Tobacco Tax and Trade Bureau. Specially denatured alcohol or specially denatured rum from only one consignor may be placed in any one compartment of a bulk conveyance. Not less than the entire contents of any one compartment may be delivered to any one consignee at any one premises.
</P>
<P>(b) <I>Construction of bulk conveyances.</I> Bulk conveyances shall be constructed to conform to the following requirements:
</P>
<P>(1) All openings (including valves) shall be constructed so that they may be sealed to prevent unauthorized access to the contents of the conveyance. Outlets, valves or other openings to or from tank cars may be constructed in such a manner that they may be closed and securely fastened on the inside.
</P>
<P>(2) If the conveyance has two or more compartments, the outlets of each shall be so equipped that delivery of any compartment will not afford access to the contents of any other compartment.
</P>
<P>(3) Each compartment shall be arranged so that it can be completely drained.
</P>
<P>(4) Each tank car or tank truck shall be permanently and legibly marked with its number, capacity in gallons or liters, and the name or symbol of its owner. If the tank car or truck consists of two or more compartments, each compartment shall be identified and the capacity of each shall be marked thereon.
</P>
<P>(5) Permanent facilities must be provided on tank trucks to permit ready examination of manholes or other openings.
</P>
<P>(6) Calibrated charts, prepared or certified by recognized authorities or engineers, showing the capacity of each compartment in gallons or liters for each inch of depth, must accompany each tank truck, tank ship, or tank barge.


</P>
</DIV8>


<DIV8 N="§ 20.183" NODE="27:1.0.1.1.16.10.287.19" TYPE="SECTION">
<HEAD>§ 20.183   Exportation of S.D.S.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in paragraph (b) of this section, a dealer may export S.D.S. that conform to a formula specified in part 21 of this chapter to any country that allows the importation of such spirits. The exporting dealer shall:
</P>
<P>(1) For each export shipment, prepare TTB Form 5100.11 in accordance with its instructions as a notice and submit it to the appropriate TTB officer;
</P>
<P>(2) Mark each shipping container and case with the words “For Export”;
</P>
<P>(3) Export the S.D.S. directly; and
</P>
<P>(4) Retain appropriate documentation, such as invoices and bills of lading, as evidence that the denatured spirits were, in fact, exported.
</P>
<P>(b) <I>Exception.</I> A dealer may not export under paragraph (a) of this section any spirits that conform to Formula No. 3-C, 29, or 38-B.
</P>
<CITA TYPE="N">[T.D. TTB-140 81 FR 59459, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="288" NODE="27:1.0.1.1.16.10.288" TYPE="SUBJGRP">
<HEAD>Operations by Users</HEAD>


<DIV8 N="§ 20.189" NODE="27:1.0.1.1.16.10.288.20" TYPE="SECTION">
<HEAD>§ 20.189   Use of specially denatured spirits.</HEAD>
<P>(a) Specially denatured spirits shall not be used for any purpose not authorized in this section.
</P>
<P>(b) Specially denatured spirits shall be used (1) in the manufacture of articles in accordance with the formula requirements of subpart F of this part, (2) for other purposes in accordance with approved statements of process (§ 20.94), or (3) in the case of S.D.A. Formula No. 3-A, 3-C, or 30, for mechanical or laboratory purposes not involving the development of a product.
</P>
<P>(c) Unless otherwise authorized by the appropriate TTB officer, each formulation of S.D.S. may be used only for the purposes authorized for that formulation under part 21 of this chapter.
</P>
<P>(d) By the use of essential oils and/or chemicals in the manufacture of each article containing 0.5 percent or more alcohol by weight or volume, the manufacturer shall ensure that:
</P>
<P>(1) Each finished article is unfit for beverage use; and
</P>
<P>(2) Unless approved “for export only” under § 20.193(b), each finished article is incapable of being reclaimed or diverted to beverage use or internal human use.
</P>
<P>(e) Each finished article shall conform to the sample, if any, and formula for that article approved in accordance with subpart F of this part.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. TTB-140, 81 FR 59459, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.190" NODE="27:1.0.1.1.16.10.288.21" TYPE="SECTION">
<HEAD>§ 20.190   Diversion of articles for internal human use or beverage use.</HEAD>
<P>An appropriate TTB officer who has reason to believe that the spirits in any article are being reclaimed or diverted to beverage or internal human use may direct the permittee to modify an approved formula to prevent the reclamation or diversion. The appropriate TTB officer may require the permittee to discontinue the use of the formula until it has been modified and again approved.
</P>
<CITA TYPE="N">[T.D. ATF-435, 66 FR 5475, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 20.191" NODE="27:1.0.1.1.16.10.288.22" TYPE="SECTION">
<HEAD>§ 20.191   Bulk articles.</HEAD>
<P>Users who convey articles in containers exceeding one gallon may provide the recipient with a photocopy of subpart G of this part to ensure compliance with requirements relating to articles. 
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987; T.D. TTB-140, 81 FR 59460, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.192" NODE="27:1.0.1.1.16.10.288.23" TYPE="SECTION">
<HEAD>§ 20.192   Manufacturing record.</HEAD>
<P>For each manufacturing process in which specially denatured spirits are used, the user shall record:
</P>
<P>(a) Quantity and formula number of new or recovered specially denatured spirits used;
</P>
<P>(b) Names and quantities of ingredients used; and
</P>
<P>(c) Name, trade name or brand name and alcoholic content of each article or intermediate product manufactured, as applicable.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.193" NODE="27:1.0.1.1.16.10.288.24" TYPE="SECTION">
<HEAD>§ 20.193   Articles for export.</HEAD>
<P>(a) Articles approved without qualification, including articles made in accordance with one of the general-use formulas in §§ 20.111 through 20.124, may be exported without restriction.
</P>
<P>(b) For each article for which the approved formula is endorsed “For Export Only” the manufacturer shall:
</P>
<P>(1) Label the immediate container to clearly show that the article is for export (for example, with the words “For export only”, “Not for sale in the United States”, or “Manufactured for sale in ______”);
</P>
<P>(2) Mark the shipping containers and cases with the words “For Export”;
</P>
<P>(3) Export the article directly; and
</P>
<P>(4) Retain appropriate documentation, such as invoices and bills of lading, as evidence that the article was, in fact, exported.
</P>
<P>(c) All articles for export shall comply with the applicable requirements of the countries to which they are sent.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59460, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.16.11" TYPE="SUBPART">
<HEAD>Subpart J—Losses</HEAD>


<DIV8 N="§ 20.201" NODE="27:1.0.1.1.16.11.289.1" TYPE="SECTION">
<HEAD>§ 20.201   Liability and responsibility of carrier.</HEAD>
<P>(a) A person or carrier transporting specially denatured spirits to a consignee or returning it to the consignor is responsible for the safe delivery and is accountable for any specially denatured spirits not delivered.
</P>
<P>(b) A person or carrier transporting specially denatured spirits in violation of any law or regulation pertaining thereto, is subject to all provisions of law relating to alcohol and the payment of tax thereon, and shall be required to pay the tax.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))


</SECAUTH>
</DIV8>


<DIV8 N="§ 20.202" NODE="27:1.0.1.1.16.11.289.2" TYPE="SECTION">
<HEAD>§ 20.202   Losses in transit.</HEAD>
<P>(a) <I>Reporting losses.</I> Upon discovering any loss of specially denatured spirits while in transit, the carrier shall immediately inform the consignee, in writing, of the facts and circumstances relating to the loss. In the case of theft, the carrier shall also immediately notify the consignee's appropriate TTB officer of the facts and circumstances relating to the loss.
</P>
<P>(b) <I>Recording losses.</I> At the time the shipment or report of loss is received, the consignee shall determine the quantity of specially denatured spirits lost. The consignee shall note the quantity lost on the receiving document and attach all relevant information to the record of receipt, prescribed in § 20.163. For the purpose of maintaining the records prescribed in subpart P of this part, receipts of specially denatured spirits will only include the quantity actually received.
</P>
<P>(c) <I>Claims.</I> A claim for allowances of losses of specially denatured spirits will, as prescribed in § 20.205, be filed:
</P>
<P>(1) If the quantity lost in transit exceeds one percent of the total quantity shipped and is more than 10 gallons, the consignee shall file a claim for allowance of the entire quantity lost; or
</P>
<P>(2) If the loss was due to theft or other unlawful removal, the consignee shall file a claim for allowance of the entire quantity lost, regardless of the quantity or percentage involved.
</P>
<APPRO TYPE="N">(Reporting approved by the Office of Management and Budget under control number 1513-0061; recordkeeping approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.203" NODE="27:1.0.1.1.16.11.289.3" TYPE="SECTION">
<HEAD>§ 20.203   Losses on premises.</HEAD>
<P>(a) <I>Recording of losses.</I> A permittee shall determine and record, in the records prescribed by subpart P of this part, the quantity of specially denatured spirits or recovered alcohol lost on premises:
</P>
<P>(1) When an inventory is taken,
</P>
<P>(2) At the time a container is emptied, or
</P>
<P>(3) Immediately upon the discovery of any loss due to casualty, theft or other unusual causes.
</P>
<P>(b) <I>Claims.</I> A claim for allowance of specially denatured spirits will be filed as prescribed in § 20.205, in the following circumstances:
</P>
<P>(1) If the quantity lost during the annual accounting period (§ 20.263(c)) exceeds one percent of the quantity to be accounted for during that period, and is more than 50 gallons; or,
</P>
<P>(2) If the loss was due to theft or unlawful use or removal, the permittee shall file a claim for allowance of losses regardless of the quantity involved.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.204" NODE="27:1.0.1.1.16.11.289.4" TYPE="SECTION">
<HEAD>§ 20.204   Incomplete shipments.</HEAD>
<P>(a) Subject to the provisions of this part (and part 19 of this chapter for shipments made by a distilled spirits plant), when containers of specially denatured spirits have sustained losses in transit other than by theft, and the shipment will not be delivered to the consignee, the carrier may return the shipment to the shipper.
</P>
<P>(b) When specially denatured spirits are returned to the shipper in accordance with this section, the carrier shall inform the shipper, in writing, of the facts and circumstances relating to the loss. In the case of theft, the carrier shall also immediately notify the shipper's appropriate TTB officer of the facts and circumstances relating to the loss.
</P>
<P>(c) Subject to the limitations for loss prescribed in § 20.202, the shipper (dealer or distilled spirits plant proprietor) shall file a claim for allowance of the entire quantity lost, in the manner provided in that section. The claim shall include the applicable data required by § 20.205.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59460, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.205" NODE="27:1.0.1.1.16.11.289.5" TYPE="SECTION">
<HEAD>§ 20.205   Claims.</HEAD>
<P>Claims for allowance of losses of specially denatured spirits or recovered alcohol will be filed, on Form 2635 (5620.8), within 30 days from the date the loss is ascertained, and will contain the following information:
</P>
<P>(a) Name, address, and permit number of claimant;
</P>
<P>(b) Identification and location of the container(s) from which the specially denatured spirits or recovered alcohol was lost, and the quantity lost from each container;
</P>
<P>(c) Total quantity of specially denatured spirits or recovered alcohol covered by the claim and the aggregate quantity involved;
</P>
<P>(d) Date of loss or discovery, the cause or nature of loss, and all relevant facts, including facts establishing whether the loss occurred as a result of negligence, connivance, collusion, or fraud on the part of any person, employee or agent participating in or responsible for the loss;
</P>
<P>(e) Name of carrier where a loss in transit is involved. The carrier's statement regarding the loss, prescribed by § 20.202 or § 20.204, will accompany the claim; and,
</P>
<P>(f) Any additional evidence which the appropriate TTB officer may require to be submitted in support of the claim.


</P>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.16.12" TYPE="SUBPART">
<HEAD>Subpart K—Recovery of Denatured Alcohol, Specially Denatured Rum, or Articles</HEAD>


<DIV8 N="§ 20.211" NODE="27:1.0.1.1.16.12.289.1" TYPE="SECTION">
<HEAD>§ 20.211   General.</HEAD>
<P>(a) Upon filing the appropriate qualifying documents under the applicable provisions of subparts D and F of this part and receiving approval, a manufacturer using denatured alcohol, specially denatured rum, or articles in an approved process may recover the denatured alcohol, specially denatured rum, or articles. However, a person who recovers (1) completely denatured alcohol with all its original ingredients, (2) an article made with specially denatured spirits with all its original ingredients (or practically so, to the extent that the presence of the original denaturants and other ingredients in the recovered article make it as nonpotable as the original article), or (3) an article made with completely denatured alcohol with all the denaturants of the completely denatured alcohol, shall not be required to obtain a permit under this part.
</P>
<P>(b) For a determination as to whether obtaining a permit under this part is necessary, each person who intends to conduct the recovery operations outlined in paragraph (a) of this section shall forward Form 5150.19 with a sample of the recovered article, to the appropriate TTB officer, in accordance with subpart F of this part.
</P>
<P>(c) Restoration and redenaturation may be done by a permittee or by the proprietor of a distilled spirits plant.


</P>
</DIV8>


<DIV8 N="§ 20.212" NODE="27:1.0.1.1.16.12.289.2" TYPE="SECTION">
<HEAD>§ 20.212   Deposit in receiving tanks.</HEAD>
<P>All recovered denatured alcohol, specially denatured rum, or articles shall be accumulated (after recovery or restoration is completed) in a receiving tank equipped for locking. If the recovered product is to be shipped under § 20.214, it may be accumulated in appropriately marked packages. All denatured alcohol or specially denatured rum recovered shall be measured and a record of the measurement shall be made before being redenatured or reused. Recovered denatured alcohol or specially denatured rum and new denatured alcohol or specially denatured rum shall be kept in separate storage containers properly marked for identification.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062 )
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.213" NODE="27:1.0.1.1.16.12.289.3" TYPE="SECTION">
<HEAD>§ 20.213   Reuse of recovered spirits.</HEAD>
<P>(a) If the denatured alcohol or specially denatured rum is recovered in its original denatured state, or practically so, or contains substantial quantities of the original denaturants and other ingredients which make it unfit for beverage or other internal human medicinal use, it may be reused in any approved process without further redenaturation. In these cases, the appropriate TTB officer will require samples of the recovered product to be taken from time to time to determine if the product requires redenaturation.
</P>
<P>(b) If the denatured alcohol or specially denatured rum is not recovered in its original denatured state, or practically so, it shall be redenatured at the premises of the manufacturer or a denaturer before being used. The appropriate TTB officer may require supervision of the redenaturation of the recovered spirits by an appropriate TTB officer.


</P>
</DIV8>


<DIV8 N="§ 20.214" NODE="27:1.0.1.1.16.12.289.4" TYPE="SECTION">
<HEAD>§ 20.214   Shipment for restoration or redenaturation.</HEAD>
<P>Recovered denatured alcohol, recovered specially denatured rum, or recovered articles requiring restoration or redenaturation (or both, unless the restoration or redenaturation is to be done on the manufacturer's premises) shall be shipped to a distilled spirits plant or to a permittee. Packages shall be numbered with a package identification number or serial number in accordance with § 20.179 (b) or (c). Packages shall be labeled with the name, address, and permit number of the manufacturer, the quantity (in gallons) of spirits contained in the package, and the applicable words “Recovered denatured alcohol formula No. ____” or “Recovered specially denatured rum formula No. ____.” If the restoration or redenaturation is performed by a user or dealer permittee (not a distilled spirits plant), the permittee shall return the same materials to the same manufacturer and shall not intermingle them with materials received from other sources.


</P>
</DIV8>


<DIV8 N="§ 20.215" NODE="27:1.0.1.1.16.12.289.5" TYPE="SECTION">
<HEAD>§ 20.215   Shipment of articles and spirits residues for redistillation.</HEAD>
<P>(a) The proprietor of a distilled spirits plant authorized to produce distilled spirits may receive for redistillation (1) articles manufactured under this part which contain denatured spirits, and (2) spirits residues of manufacturing processes related to the manufacture of these articles.
</P>
<P>(b) Any person shipping these articles or spirits residues to a distilled spirits plant for redistillation shall—
</P>
<P>(1) Identify each package or articles or spirits residues as to contents, and
</P>
<P>(2) Mark and serially number each package as provided in § 20.214.


</P>
</DIV8>


<DIV8 N="§ 20.216" NODE="27:1.0.1.1.16.12.289.6" TYPE="SECTION">
<HEAD>§ 20.216   Record of shipment.</HEAD>
<P>A consignor shipping recovered denatured alcohol, recovered specially denatured rum, or recovered articles to a distilled spirits plant or a permittee shall prepare and forward a record of shipment to the consignee, in accordance with § 20.171.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.16.13" TYPE="SUBPART">
<HEAD>Subpart L—Destruction</HEAD>


<DIV8 N="§ 20.221" NODE="27:1.0.1.1.16.13.289.1" TYPE="SECTION">
<HEAD>§ 20.221   General.</HEAD>
<P>A permittee may terminate liability for payment of tax, prescribed by law, when specially denatured spirits or recovered alcohol are destroyed in accordance with this subpart.


</P>
</DIV8>


<DIV8 N="§ 20.222" NODE="27:1.0.1.1.16.13.289.2" TYPE="SECTION">
<HEAD>§ 20.222   Destruction.</HEAD>
<P>(a) <I>Record of destruction.</I> A permittee who destroys specially denatured spirits or recovered alcohol, or who transfers such material to another entity for destruction, shall prepare a record of destruction, which shall be maintained by the permittee with the records required by subpart P of this part. The record shall identify—
</P>
<P>(1) The reason for destruction,
</P>
<P>(2) The date, time, location and manner of destruction,
</P>
<P>(3) The quantity involved and, if applicable, identification of containers, and
</P>
<P>(4) The name of the individual who accomplished or supervised the destruction.
</P>
<P>(b) <I>Destruction by nonpermittees.</I> In general, the destruction of specially denatured spirits and recovered alcohol shall be performed by a permittee or a distilled spirits plant. However, a nonpermittee may destroy recovered alcoholic material if the material has been determined by the appropriate TTB officer to be equivalent to an article. If the material is not so determined, destruction may only occur on the premises of the manufacturer who recovered the material, a distilled spirits plant, or a dealer permittee.


</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59460, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.16.14" TYPE="SUBPART">
<HEAD>Subpart M—Return, Reconsignment and Disposition of Specially Denatured Spirits</HEAD>


<DIV8 N="§ 20.231" NODE="27:1.0.1.1.16.14.289.1" TYPE="SECTION">
<HEAD>§ 20.231   Return.</HEAD>
<P>A permittee may, following the receipt of specially denatured spirits and for any legitimate reason, return the specially denatured spirits to any distilled spirits plant or dealer if the consignee consents to the shipment. The consignor shall prepare a record of shipment in accordance with § 20.171.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.232" NODE="27:1.0.1.1.16.14.289.2" TYPE="SECTION">
<HEAD>§ 20.232   Reconsignment in transit.</HEAD>
<P>(a) <I>Reconsignment.</I> Specially denatured spirits may be reconsigned to another permittee or returned to the consignor if, prior to or on arrival at the premises of the consignee, the alcohol is determined to be unsuitable for the intended purpose, was shipped in error, or, for any bona fide reason, is not accepted by the consignee or carrier.
</P>
<P>(b) <I>Records of reconsignment.</I> In the case of reconsignment, the consignor shall cancel the initial record of shipment and prepare a new record of shipment, if the shipment is to another permittee. The new record of shipment will be annotated “Reconsignment.”
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 FR 17939, Apr. 12, 2002; T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.233" NODE="27:1.0.1.1.16.14.289.3" TYPE="SECTION">
<HEAD>§ 20.233   Disposition after revocation of permit.</HEAD>
<P>When any permit issued on Form 5150.9 is revoked, all specially denatured spirits in transit and all specially denatured spirits on the former permit premises, may be lawfully possessed by the former permittee for the exclusive purpose of disposing of the specially denatured spirits, for a period of 60 days following the date of revocation. Any specially denatured spirits or recovered alcohol not disposed of within the specific 60-day period, is subject to seizure and forfeiture.


</P>
</DIV8>


<DIV8 N="§ 20.234" NODE="27:1.0.1.1.16.14.289.4" TYPE="SECTION">
<HEAD>§ 20.234   Disposition on permanent discontinuance of use.</HEAD>
<P>(a) <I>Specially denatured spirits.</I> Specially denatured spirits on hand at the time of discontinuance of use, may be disposed of by 
</P>
<P>(1) Returning the specially denatured spirits to a distilled spirits plant or dealer, as provided in § 20.231, 
</P>
<P>(2) Destruction, as provided in § 20.222, or 
</P>
<P>(3) Shipped to another user, as provided in § 20.235.
</P>
<P>(b) <I>Recovered denatured alcohol, recovered specially denatured rum, or recovered articles.</I> Upon permanent discontinuance of use, a permittee may dispose of recovered denatured alcohol, recovered specially denatured rum, or recovered articles by
</P>
<P>(1) Shipment to a distilled spirits plant, as provided in § 20.215 for articles and spirits residues, 
</P>
<P>(2) Destruction, as provided in § 20.222, or 
</P>
<P>(3) Upon the filing of an application with the appropriate TTB officer, any other approved method.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.235" NODE="27:1.0.1.1.16.14.289.5" TYPE="SECTION">
<HEAD>§ 20.235   Disposition to another user.</HEAD>
<P>(a) A user may dispose of specially denatured spirits to another permittee or Government agency.
</P>
<P>(b) The user shall prepare a record of shipment in accordance with § 20.171. The packages to be shipped shall bear the name and permit number of the user and the marks and labels required under § 20.178. The user's copy of the record of shipment shall include an explanation of the reason for the disposition.
</P>
<P>(c) The appropriate TTB officer may require a user to apply for and obtain a dealer's permit, if shipments under this section are excessive.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by ATF-332, 57 FR 40849, Sept. 8, 1992; T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.16.15" TYPE="SUBPART">
<HEAD>Subpart N—Use of Specially Denatured Spirits by the United States or Government Agency</HEAD>


<DIV8 N="§ 20.241" NODE="27:1.0.1.1.16.15.289.1" TYPE="SECTION">
<HEAD>§ 20.241   General.</HEAD>
<P>The United States or any of its Government agencies may withdraw specially denatured spirits from a distilled spirits plant or dealer under this part, as authorized by 26 U.S.C. 5214(a)(2) and 5271. Before any specially denatured spirits may be withdrawn, a permit to procure the spirits shall be obtained as provided in § 20.25. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5214, 5271, 5272, 5276)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-285, 54 FR 12610, Mar. 28, 1989; T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. ATF-476, 67 FR 17939, Apr. 12, 2002; T.D. TTB-79, 74 FR 37403, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 20.242" NODE="27:1.0.1.1.16.15.289.2" TYPE="SECTION">
<HEAD>§ 20.242   Application and permit, Form 5150.33.</HEAD>
<P>(a) All permits previously issued to the United States or any of its Government agencies on Form 1444 shall remain valid and will be regulated by the same provisions of this subpart as it refers to permits on Form 5150.33.
</P>
<P>(b) A Government agency shall apply for a permit to obtain specially denatured spirits on Form 5150.33. Upon approval, Form 5150.33 will be returned to the Government agency, and will serve as authority to procure specially denatured spirits.
</P>
<P>(c) A Government agency may specify on its application for a permit to procure specially denatured spirits, Form 5150.33, that it desires a single permit authorizing all sub-agencies under its control to procure specially denatured spirits; or each Government location (agency, department, bureau, etc.) desiring to procure specially denatured spirits may individually submit an application for a permit on Form 5150.33.
</P>
<P>(d) An application for a permit shall be signed by the head of the agency or sub-agency or the incumbent of an office which is authorized by the head of the agency or sub-agency, to sign. Evidence of authorization to sign for the head of the agency or sub-agency shall be furnished with the application.
</P>
<P>(e) Specially denatured spirits obtained by Government agencies may not be used for non-Government purposes.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))


</SECAUTH>
</DIV8>


<DIV8 N="§ 20.243" NODE="27:1.0.1.1.16.15.289.3" TYPE="SECTION">
<HEAD>§ 20.243   Procurement of specially denatured spirits.</HEAD>
<P>Government agencies shall retain the original permit, Form 5150.33, on file. When placing an initial order with a vendor, the agency shall forward a photocopy of its permit with the purchase order for specially denatured spirits. In the case of an agency holding a single permit for use of other sub-agencies, the photocopy of the permit will contain an attachment listing all other locations authorized to procure specially denatured spirits. Any subsequent purchases from the same vendor need only contain the permit number on the purchase order.


</P>
</DIV8>


<DIV8 N="§ 20.244" NODE="27:1.0.1.1.16.15.289.4" TYPE="SECTION">
<HEAD>§ 20.244   Receipt of shipment.</HEAD>
<P>On receipt of a shipment of specially denatured spirits, a representative of the Government agency shall inspect the shipment for any loss or deficiency. In the case of loss or deficiency, the agency shall annotate the receiving document and forward a copy to the appropriate TTB officer from which the shipment was consigned.


</P>
</DIV8>


<DIV8 N="§ 20.245" NODE="27:1.0.1.1.16.15.289.5" TYPE="SECTION">
<HEAD>§ 20.245   Discontinuance of use.</HEAD>
<P>When a Government agency, holding a permit issued under this subpart, no longer intends to procure and use specially denatured spirits, the permit shall be returned to the appropriate TTB officer for cancellation. All photocopies of the permit furnished to vendors shall be returned to the agency for destruction.


</P>
</DIV8>


<DIV8 N="§ 20.246" NODE="27:1.0.1.1.16.15.289.6" TYPE="SECTION">
<HEAD>§ 20.246   Disposition of specially denatured spirits on discontinuance of use.</HEAD>
<P>At the time of discontinuance of use of specially denatured spirits, a Government agency may dispose of any excess specially denatured spirits (a) to another Government agency holding a permit, (b) by returning the specially denatured spirits to a vendor, or (c) in any manner authorized by the appropriate TTB officer. Specially denatured spirits may not be disposed of to the general public.


</P>
</DIV8>

</DIV6>


<DIV6 N="O" NODE="27:1.0.1.1.16.16" TYPE="SUBPART">
<HEAD>Subpart O—Samples of Specially Denatured Spirits</HEAD>


<DIV8 N="§ 20.251" NODE="27:1.0.1.1.16.16.289.1" TYPE="SECTION">
<HEAD>§ 20.251   General.</HEAD>
<P>(a) Applicants and prospective applicants for permits to use specially denatured spirits may obtain samples of specially denatured spirits for experimental purposes or for preparing samples of finished articles as required by § 20.92. Samples of specially denatured spirits may only be obtained from distilled spirits plants or dealers.
</P>
<P>(b) Samples not larger than five gallons per calendar year may be obtained without a permit. Dealers shall maintain records to ensure that samples of specially denatured spirits dispensed to nonpermittee do not exceed five gallons per calendar year.
</P>
<P>(c) Samples larger than five gallons per calendar year may be obtained without a permit as described in § 20.252.
</P>
<P>(d) Samples of specially denatured spirits shall not be used to manufacture articles for commercial sale.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985, as amended by T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.252" NODE="27:1.0.1.1.16.16.289.2" TYPE="SECTION">
<HEAD>§ 20.252   Samples larger than five gallons.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may waive the requirement to obtain a permit under subpart D of this part if a nonpermittee can demonstrate that more than five gallons is necessary to determine if an Industrial Use Permit is desired.
</P>
<P>(b) <I>Application.</I> A nonpermittee who wishes to obtain more than five gallons of specially denatured spirits to determine if an Industrial Use Permit is desired, shall file a letterhead application with the appropriate TTB officer in which the nonpermittee's premises are located. The letter shall describe why the requested quantity is necessary.
</P>
<P>(c) <I>Approval.</I> If the letterhead application is approved, the nonpermittee shall submit it to the proprietor of a distilled spirits plant or a dealer with the order for the sample of specially denatured spirits.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.253" NODE="27:1.0.1.1.16.16.289.3" TYPE="SECTION">
<HEAD>§ 20.253   Labels for samples.</HEAD>
<P>When a sample of specially denatured spirits is withdrawn from a dealer's premises, that dealer shall attach a label to the sample which shows the following information:
</P>
<P>(a) The word “Sample”;
</P>
<P>(b) The dealer's name, address, and permit number;
</P>
<P>(c) The words “Specially Denatured Alcohol” or “Specially Denatured Rum”;
</P>
<P>(d) The quantity; and
</P>
<P>(e) The formula number.


</P>
</DIV8>

</DIV6>


<DIV6 N="P" NODE="27:1.0.1.1.16.17" TYPE="SUBPART">
<HEAD>Subpart P—Records and Reports</HEAD>


<DIV8 N="§ 20.261" NODE="27:1.0.1.1.16.17.289.1" TYPE="SECTION">
<HEAD>§ 20.261   Records of completely denatured alcohol.</HEAD>
<P>When requested by the appropriate TTB officer, any person who receives, packages, stores, disposes of, or uses completely denatured alcohol shall keep records of all transactions in completely denatured alcohol which will enable appropriate TTB officers to verify and trace receipt, packaging, storage, usage, and disposal of the spirits, and to determine whether there has been compliance with law and regulations. However, on sales in quantities of less than 5 gallons, only the total quantity disposed of daily need be recorded.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062 )
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.262" NODE="27:1.0.1.1.16.17.289.2" TYPE="SECTION">
<HEAD>§ 20.262   Dealer's records of specially denatured spirits.</HEAD>
<P>(a) Each dealer shall maintain separate records of each formulation of new specially denatured spirits—
</P>
<P>(1) Received, as required by § 20.163,
</P>
<P>(2) Packaged, as required by § 20.180,
</P>
<P>(3) Destroyed, as required by § 20.222,
</P>
<P>(4) Lost, as required by §§ 20.202-20.204, and
</P>
<P>(5) Transferred to another permittee or a distilled spirits plant, as required by §§ 20.171, 20.216, and 20.231.
</P>
<P>(b) Each dealer shall maintain separate records of each formulation of recovered specially denatured spirits for each of the transactions listed in paragraphs (a)(1) through (a)(5) of this section.
</P>
<P>(c) Once in each calendar year, and when requested by an appropriate TTB officer, each dealer shall perform and record a balanced accounting of each formulation of new and recovered specially denatured spirits using the records required by § 20.170 and this section.
</P>
<P>(d) When requested, the dealer shall submit the accounting required by paragraph (c) of this section to the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, 59460, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.263" NODE="27:1.0.1.1.16.17.289.3" TYPE="SECTION">
<HEAD>§ 20.263   User's records of specially denatured spirits.</HEAD>
<P>(a) Each user shall maintain separate records of each formulation of new specially denatured spirits—
</P>
<P>(1) Received, as required by § 20.163,
</P>
<P>(2) Recovered, as required by § 20.212,
</P>
<P>(3) Used, as required by § 20.192,
</P>
<P>(4) Destroyed, as required by § 20.222,
</P>
<P>(5) Lost, as required by §§ 20.202-20.203, and
</P>
<P>(6) Transferred to another permittee or a distilled spirits plant, as required by §§ 20.216, 20.231, and 20.235.
</P>
<P>(b) Each user shall maintain separate records of each formulation of recovered specially denatured spirits for each of the transactions listed in paragraphs (a)(1) through (a)(6) of this section.
</P>
<P>(c) Once in each calendar year, and when requested by an appropriate TTB officer, each user shall perform and record a balanced accounting of each formulation of new and recovered specially denatured spirits using the records required by § 20.170 and this section.
</P>
<P>(d) When requested, the user shall submit the accounting required by paragraph (c) of this section to the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, 59460, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.264" NODE="27:1.0.1.1.16.17.289.4" TYPE="SECTION">
<HEAD>§ 20.264   User's records and report of products and processes.</HEAD>
<P>(a) <I>Records.</I> (1) Each user shall maintain separate accountings of—
</P>
<P>(i) The number of gallons of each formulation of new S.D.S. used for each product or process, recorded by the code number prescribed by § 21.141 of this chapter; and
</P>
<P>(ii) The number of gallons of each formulation of recovered S.D.S. used for each product or process, recorded by the code number prescribed by § 21.141 of this chapter.
</P>
<P>(2) Each user who recovers specially denatured spirits shall maintain separate accountings of the number of gallons of each formulation of specially denatured spirits recovered from each product or process, recorded by the code number prescribed by § 21.141 of this chapter.
</P>
<P>(3) Product or process code numbers are shown on approved formula and statement of process forms. For an article made in accordance with a general-use formula, the user will refer to § 21.141 of this chapter and record the applicable product or process code number.
</P>
<P>(4) Each user who manufactures articles for export subject to § 20.193(b) shall retain the documentation required by § 20.193(b)(4).
</P>
<P>(b) <I>Report.</I> Each user shall submit an annual report, Form 5150.18, for the period from July 1 through June 30, summarized from the records required by this section. The report shall be filed no later than July 15 following the end of the accounting period.


</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0062)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59460, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.265" NODE="27:1.0.1.1.16.17.289.5" TYPE="SECTION">
<HEAD>§ 20.265   Retention of invoices.</HEAD>
<P>(a) Any person required to keep records under this part shall retain copies of invoices which will enable appropriate TTB officers to readily obtain the details regarding:
</P>
<P>(1) Purchases of all essential oils, chemicals, and other materials used in manufacturing articles, including the name and address of the vendor, and the quantity;
</P>
<P>(2) Purchases of articles containing specially denatured spirits for reprocessing, or purchases of those articles for bottling, repackaging, and/or resale, including the name and address of the vendor and the quantity; and
</P>
<P>(3) Dispositions of all articles manufactured or received, including in each case the name and address of the person to whom sold or otherwise disposed of.
</P>
<P>(b) The appropriate TTB officer may, on application filed by the permittee, waive the requirements for retaining invoices if the quantity sold to any person during a calendar month does not exceed 25 gallons, and if a waiver will not hinder the effective administration of this part and will not pose a jeopardy to the revenue.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0061)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 20.266" NODE="27:1.0.1.1.16.17.289.6" TYPE="SECTION">
<HEAD>§ 20.266   Time for making entries in records.</HEAD>
<P>Any person who conducts an operation which is required to be recorded under this part, shall enter that operation in the records on the same day on which the operation occurred. However, the daily posting of records may be deferred to conform to the permittee's normal accounting cycle if (a) supporting or supplemental records are prepared at the time of the operation, and these supporting or supplemental records are to be used to post the daily record, and (b) the deferral of posting does not pose a jeopardy to the revenue.


</P>
</DIV8>


<DIV8 N="§ 20.267" NODE="27:1.0.1.1.16.17.289.7" TYPE="SECTION">
<HEAD>§ 20.267   Filing and retaining records.</HEAD>
<P>Any person who is required to maintain records of operations under this part shall file and retain records and copies of reports in the following manner:
</P>
<P>(a) Keep on file for a period of not less than 3 years after the date of the report covering the operation, in such a way as to allow inspection by TTB officers, all those records of operations, all supporting or supplemental records, and copies of all reports as required by this part. However, the appropriate TTB officer may require that the records and copies of reports be kept for an additional period, not to exceed 3 years.
</P>
<P>(b) File all records and copies of reports at the premises where the operations are conducted.
</P>
<P>(c) Make the files of records and copies of reports available to TTB officers during regular business hours for examination.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-435, 66 FR 5475, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 20.268" NODE="27:1.0.1.1.16.17.289.8" TYPE="SECTION">
<HEAD>§ 20.268   Photographic copies of records.</HEAD>
<P>(a) <I>General.</I> Permittees may record, copy, or reproduce required records. Any process may be used which accurately reproduces the original record, and which forms a durable medium for reproducing and preserving the original record.
</P>
<P>(b) <I>Copies of records treated as original records.</I> Whenever records are reproduced under this section, the reproduced records will be preserved in conveniently accessible files, and provisions will be made for examining, viewing, and using the reproduced records the same as if they were the original record, and they will be treated and considered for all purposes as though they were the original record. All provisions of law and regulations applicable to the original are applicable to the reproduced record. As used in this section, “original record” means the record required by this part to be maintained or preserved by the permittee, even though it may be an executed duplicate or other copy of the document.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5555))


</SECAUTH>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="21" NODE="27:1.0.1.1.17" TYPE="PART">
<HEAD>PART 21—FORMULAS FOR DENATURED ALCOHOL AND RUM
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>5 U.S.C. 552(a); 26 U.S.C. 5242, 7805.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-133, 48 FR 24673, June 2, 1983, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Notes:</HED><PSPACE>Nomenclature changes to part 21 appear by T.D. ATF-435, 66 FR 5475, Jan. 19, 2001.
</PSPACE><P>Nomenclature changes to part 21 appear by 81 T.D. TTB-140, 81 FR Aug. 30, 2016.</P></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.17.1" TYPE="SUBPART">
<HEAD>Subpart A—General Provisions</HEAD>


<DIV8 N="§ 21.1" NODE="27:1.0.1.1.17.1.289.1" TYPE="SECTION">
<HEAD>§ 21.1   Scope of regulations.</HEAD>
<P>The regulations in this part relate to the formulation of completely denatured alcohol, specially denatured alcohol, and specially denatured rum; to the specifications for denaturants; and to the uses of denatured spirits.


</P>
</DIV8>


<DIV8 N="§ 21.2" NODE="27:1.0.1.1.17.1.289.2" TYPE="SECTION">
<HEAD>§ 21.2   Forms prescribed.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. TTB-44, 71 FR 16934, Apr. 4, 2006; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 21.3" NODE="27:1.0.1.1.17.1.289.3" TYPE="SECTION">
<HEAD>§ 21.3   Stocks of discontinued formulas.</HEAD>
<P>Denaturers, or specially denatured spirits dealers or users, having on hand stocks of denaturants or formulas of specially denatured spirits no longer authorized by this part may—
</P>
<P>(a) Continue to supply or use those stocks in accordance with existing permits until the stocks are exhausted;
</P>
<P>(b) Use up those stocks in any manufacturing process approved by the appropriate TTB officer, pursuant to an application filed with such officer on TTB Form 5150.19, Formula for Articles made with Specially Denatured Alcohol and Rum;
</P>
<P>(c) On approval of an application, filed with the appropriate TTB officer and approved by such officer, destroy those stocks under whatever supervision the appropriate TTB officer requires; or
</P>
<P>(d) Otherwise dispose of those stocks in a manner satisfactory to the appropriate TTB officer, pursuant to approval of an application.
</P>
<CITA TYPE="N">[T.D. ATF-133, 487 FR 24673, June 2, 1983, as amended by T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 21.4" NODE="27:1.0.1.1.17.1.289.4" TYPE="SECTION">
<HEAD>§ 21.4   Related regulations.</HEAD>
<P>The procedural and substantive requirements relative to the production of denatured alcohol and specially denatured rum are prescribed in part 19 of this chapter, and those relative to the distribution and use of denatured alcohol and specially denatured rum are prescribed in part 20 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 FR 9183 Mar. 6, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 21.5" NODE="27:1.0.1.1.17.1.289.5" TYPE="SECTION">
<HEAD>§ 21.5   Denatured spirits for export.</HEAD>
<P>Spirits may be denatured in accordance with formulas prescribed by the government of a foreign country to which the denatured spirits will be exported. However, the denaturer must first apply for and obtain written permission from the appropriate TTB officer. The application shall be submitted to the appropriate TTB officer and shall contain the following information:
</P>
<P>(a) A complete list of ingredients for the spirits to be denatured.
</P>
<P>(b) The exact amount of each ingredient to be used in denaturing the spirits.
</P>
<P>(c) A copy (accompanied by an English translation as necessary) of the law or regulations of the foreign country to which the denatured spirits will be exported, specifying the denatured spirits formulation prescribed by that country.


</P>
</DIV8>


<DIV8 N="§ 21.6" NODE="27:1.0.1.1.17.1.289.6" TYPE="SECTION">
<HEAD>§ 21.6   Incorporations by reference.</HEAD>
<P>(a) “The United States Pharmacopoeia (Twentieth Revision, Official from July, 1980) and the National Formulary (Fifteenth Edition, Official from July 1, 1980)” published together as “The USP and NF Compendia,” are incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register. The publication is available from the United States Pharmacopoeia Convention, Inc., 12601 Twinbrook Parkway, Rockville, Maryland 20852, or may be inspected at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: <I>https://www.archives.gov/federal-register/cfr/ibr-locations.html.</I>
</P>
<P>(b) Material from Parts 23, 25, and 29 of the 1980 Annual Book of ASTM Standards is incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register. These publications are available from the American Society for Testing and Materials, 1916 Race Street, Philadelphia, Pennsylvania 19103, or may be inspected at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: <I>https://www.archives.gov/federal-register/cfr/ibr-locations.html.</I>
</P>
<P>(c) Material from the “Official Methods of Analysis of the Association of Official Analytical Chemists (13th Edition 1980)” (AOAC) is incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register. This publication is available from the Association of Official Analytical Chemists, 11 North 19th Street, Suite 210, Arlington, Virginia 22209, or may be inspected at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: <I>https://www.archives.gov/federal-register/cfr/ibr-locations.html.</I>
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended at 69 FR 18803, Apr. 9, 2004; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]
</CITA>
<SECAUTH TYPE="N">(Pub. L. 89-554, 80 Stat. 383 as amended (5 U.S.C. 552(a)))


</SECAUTH>
</DIV8>


<DIV8 N="§ 21.7" NODE="27:1.0.1.1.17.1.289.7" TYPE="SECTION">
<HEAD>§ 21.7   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in the current version of TTB Order 1135.21, Delegation of the Administrator's Authorities in 27 CFR Part 21, Formulas for Denatured Alcohol and Rum. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16936, Apr. 4, 2006; T.D. TTB-140, 81 FR 59460, Aug. 30, 2016; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.17.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 21.11" NODE="27:1.0.1.1.17.2.289.1" TYPE="SECTION">
<HEAD>§ 21.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, unless the context otherwise requires, terms have the meanings given in this section. Words in the plural form include the singular, and vice versa, and words indicating the masculine gender include the feminine. The terms “includes” and “including” do not exclude things not mentioned which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Alcohol.</I> The spirits known as ethyl alcohol, ethanol, or spirits of wine, from whatever source or by whatever process produced. The term does not include such spirits as whisky, brandy, rum, gin, or vodka.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by the current version of TTB Order 1135.21, Delegation of the Administrator's Authorities in 27 CFR Part 21, Formulas For Denatured Alcohol and Rum.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>C.D.A.</I> Completely denatured alcohol.
</P>
<P><I>Completely denatured alcohol.</I> The spirits known as alcohol, as defined in this section, denatured pursuant to completely denatured alcohol formulas prescribed in subpart C of this part.
</P>
<P><I>Denaturant.</I> A material authorized by this part to be added to spirits in order to make those spirits unfit for beverage or internal human medicinal use.
</P>
<P><I>Denatured spirits.</I> Alcohol or rum to which denaturants have been added as provided in this part.
</P>
<P><I>Essential oil.</I> Any of the volatile odoriferous natural oils found in plants, which impart to such plants odor, and often other characteristic properties; also, imitations of such natural oils, as well as aromatic substances, and synthetic oils, which possess the denaturing characteristics of such natural oils.
</P>
<P><I>Gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>Manufacturer or user.</I> A person who holds a permit, issued under part 20 of this chapter, to withdraw and use specially denatured alcohol or specially denatured rum, or to recover completely or specially denatured alcohol, or specially denatured rum, or articles manufactured with denatured spirits, or a distilled spirits plant proprietor qualified under part 19 of this chapter as a processor.
</P>
<P><I>N.F.</I> The National Formulary. The lastest edition is intended unless otherwise specified. The designations “U.S.P.” and “N.F.” are considered interchangeable when preparations are transferred from one publication to the other. (For incorporation by reference, see § 21.6(a).)
</P>
<P><I>Proof.</I> The ethyl alcohol content of a liquid at 60 degrees Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
</P>
<P><I>Rum.</I> Any spirits produced from sugar cane products and distilled at less than 190 proof in such manner that the spirits possess the taste, aroma, and characteristics generally attributed to rum.
</P>
<P><I>S.D.A.</I> Specially denatured alcohol.
</P>
<P><I>Specially denatured alcohol.</I> Those spirits known as alcohol, as defined in this section, denatured pursuant to the specially denatured alcohol formulas authorized under subpart D of this part.
</P>
<P><I>Specially denatured rum.</I> Those spirits known as rum, as defined in this section, denatured pursuant to the specially denatured rum formula authorized under subpart D of this part.
</P>
<P><I>Spirits or distilled spirits.</I> Alcohol or rum as defined in this part.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>U.S.P.</I> The United States Pharmacopoeia. The latest edition is intended unless otherwise specified. The designations “U.S.P.” and “N.F.” are considered interchangeable when preparations are transferred from one publication to the other. (For incorporation by reference, see § 21.6(a).)
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. TTB-44, 71 FR 16936, Apr. 4, 2006; T.D.TTB-140 81 FR 59460, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.17.3" TYPE="SUBPART">
<HEAD>Subpart C—Completely Denatured Alcohol Formulas</HEAD>


<DIV8 N="§ 21.21" NODE="27:1.0.1.1.17.3.289.1" TYPE="SECTION">
<HEAD>§ 21.21   General.</HEAD>
<P>(a) Alcohol shall be completely denatured only in accordance with formulas prescribed in this subpart (or in accordance with § 21.5).
</P>
<P>(b) Denaturers may be authorized to add a small quantity of an odorant, rust inhibitor, or dye to completely denatured alcohol. Any such addition shall be made only on approval by the appropriate TTB officer. Request for such approval shall be submitted to the appropriate TTB officer.
</P>
<P>(c) Odorants or perfume materials may be added to denaturants authorized for completely denatured alcohol in amounts not greater than 1 part to 250, by weight. However, such addition shall not decrease the denaturing value nor change the chemical or physical constants beyond the limits of the specifications for these denaturants as prescribed in subpart E, except as to odor. Proprietors of distilled spirits plants using denaturants to which such odorants or perfume materials have been added shall inform the appropriate TTB officer, in writing, of the names and properties of the odorants or perfume materials so used.
</P>
<P>(d) TTB will apply an analytical tolerance of ±5 percent and use standard rounding rules in determining whether completely denatured alcohol complies with the formula prescribed in this subpart (or in accordance with § 21.5).
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59460, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.22" NODE="27:1.0.1.1.17.3.289.2" TYPE="SECTION">
<HEAD>§ 21.22   Formula No. 18.</HEAD>
<P>To every 100 gallons of ethyl alcohol of not less than 160 proof add:
</P>
<EXTRACT>
<FP-1>2.50 gallons of either methyl isobutyl ketone, mixed isomers of nitropropane, or methyl <I>n-</I> butyl ketone;
</FP-1>
<FP-1>0.125 gallon of pyronate or a similar compound;
</FP-1>
<FP-1>0.50 gallon acetaldol (beta-hydroxybutyraldehyde); and
</FP-1>
<FP-1>1.00 gallon of either kerosene, deodorized kerosene, gasoline, unleaded gasoline, rubber hydrocarbon solvent, or heptane.</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.23" NODE="27:1.0.1.1.17.3.289.3" TYPE="SECTION">
<HEAD>§ 21.23   Formula No. 19.</HEAD>
<P>To every 100 gallons of ethyl alcohol of not less than 160 proof add:
</P>
<EXTRACT>
<FP-1>4.0 gallons of either methyl isobutyl ketone, mixed isomers of nitropropane, or methyl <I>n-</I> butyl ketone; and
</FP-1>
<FP-1>1.0 gallon of either kerosene, deodorized kerosene, gasoline, unleaded gasoline, rubber hydrocarbon solvent, or heptane.</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.24" NODE="27:1.0.1.1.17.3.289.4" TYPE="SECTION">
<HEAD>§ 21.24   Formula No. 20.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of ethyl alcohol of not less than 195 proof add:


</P>
<EXTRACT>
<FP-1>A total of 2.0 gallons of either unleaded gasoline, rubber hydrocarbon solvent, kerosene, deodorized kerosene, alkylate, ethyl tertiary butyl ether, high octane denaturant blend, methyl tertiary butyl ether, naphtha, natural gasoline, raffinate, or any combination of these; or
</FP-1>
<P>A total of 5.0 gallons of toluene.</P></EXTRACT>
<P>(b) <I>Authorized use.</I> Restricted to fuel use, comparable to specially denatured alcohol “Use Code No.” 611, 612, 613, 620, and 630.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59460, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.25" NODE="27:1.0.1.1.17.3.289.5" TYPE="SECTION">
<HEAD>§ 21.25   Formula No. 35.</HEAD>
<P><I>Formula.</I> To every 100 gallons of alcohol of not less than 185 proof add:
</P>
<P>29.75 gallons of ethyl acetate having an ester content of 100 percent by weight or the equivalent thereof not to exceed 35 gallons of ethyl acetate with an ester content of not less than 85 percent by weight.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.26" NODE="27:1.0.1.1.17.3.289.6" TYPE="SECTION">
<HEAD>§ 21.26   Formula No. 12-A.</HEAD>
<P><I>Formula.</I> To every 100 gallons of alcohol of not less than 185 proof add:
</P>
<P>Five gallons of toluene or 5 gallons of heptane.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59461, Aug. 31, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.17.4" TYPE="SUBPART">
<HEAD>Subpart D—Specially Denatured Spirits Formulas and Authorized Uses</HEAD>


<DIV8 N="§ 21.31" NODE="27:1.0.1.1.17.4.289.1" TYPE="SECTION">
<HEAD>§ 21.31   General.</HEAD>
<P>(a) <I>Formulas for specially denatured spirits.</I> Alcohol and rum shall be specially denatured only in accordance with formulas prescribed in this subpart (or in accordance with § 21.5).
</P>
<P>(b) <I>Proof of spirits for denaturation.</I> Alcohol of not less than 185 proof shall be used in the manufacture of all formulas of specially denatured alcohol, unless otherwise specifically stated or unless otherwise authorized by the appropriate TTB officer. Rum for denaturation shall be of not less than 150 proof and may be denatured only in accordance with Formula No. 4.
</P>
<P>(c) <I>Use of Denatured Spirits.</I> Users and manufacturers holding approved Forms 5150.19 (formerly 1479-A) covering use in processes or manufacture of products no longer authorized for a particular formula may continue that use. Pursuant to written application and subject to the provisions of 26 U.S.C. Chapter 51, part 20 of this chapter, and this part, the appropriate TTB officer, may authorize the use of any formula of specially denatured alcohol or specially denatured rum for uses not specifically authorized in this part. The code number before each item under “authorized uses” shall be used in reporting the use of specially denatured alcohol or specially denatured rum.
</P>
<P>(d) <I>Analytical tolerance.</I> TTB will apply an analytical tolerance of ±5% and use standard rounding rules in determining whether specially denatured spirits complies with the formula prescribed in this subpart (or in accordance with § 21.5).
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.32" NODE="27:1.0.1.1.17.4.289.2" TYPE="SECTION">
<HEAD>§ 21.32   Formula No. 1.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Four gallons of methyl alcohol and either 
<FR>1/8</FR> avoirdupois ounce of denatonium benzoate, N.F.; 1 gallon of methyl isobutyl ketone; 1 gallon of mixed isomers of nitropropane; or 1 gallon of methyl <I>n-</I> butyl ketone.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>011. Cellulose coatings.
</FP-1>
<FP-1>012. Synthetic resin coatings.
</FP-1>
<FP-1>013. Shellac coatings.
</FP-1>
<FP-1>014. Other natural resin coatings.
</FP-1>
<FP-1>016. Other coatings.
</FP-1>
<FP-1>021. Cellulose plastics.
</FP-1>
<FP-1>022. Non-cellulose plastics, including resins.
</FP-1>
<FP-1>031. Photographic film and emulsions.
</FP-1>
<FP-1>032. Transparent sheeting.
</FP-1>
<FP-1>033. Explosives.
</FP-1>
<FP-1>034. Cellulose intermediates and industrial collodions.
</FP-1>
<FP-1>035. Soldering flux.
</FP-1>
<FP-1>036. Adhesives and binders.
</FP-1>
<FP-1>041. Proprietary solvents.
</FP-1>
<FP-1>042. Solvents and thinners (other than proprietary solvents or special industrial solvents).
</FP-1>
<FP-1>043. Solvents, special (restricted sale).
</FP-1>
<FP-1>051. Polishes.
</FP-1>
<FP-1>052. Inks (not including meat branding inks).
</FP-1>
<FP-1>053. Stains (wood, etc.).
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soap and bath preparations.
</FP-1>
<FP-1>311. Cellulose compounds (dehydration).
</FP-1>
<FP-1>312. Sodium hydrosulfite (dehydration).
</FP-1>
<FP-1>315. Other dehydration products.
</FP-1>
<FP-1>320. Petroleum products.
</FP-1>
<FP-1>331. Processing pectin.
</FP-1>
<FP-1>332. Processing other food products.
</FP-1>
<FP-1>341. Processing crude drugs.
</FP-1>
<FP-1>342. Processing glandular products, vitamins, hormones, and yeasts.
</FP-1>
<FP-1>343. Processing antibiotics and vaccines.
</FP-1>
<FP-1>344. Processing medicinal chemicals (including alkaloids).
</FP-1>
<FP-1>345. Processing blood and blood products.
</FP-1>
<FP-1>349. Miscellaneous drug processing (including manufacture of pills).
</FP-1>
<FP-1>351. Processing dyes and intermediates.
</FP-1>
<FP-1>352. Processing perfume materials and fixatives.
</FP-1>
<FP-1>353. Processing photographic chemicals.
</FP-1>
<FP-1>354. Processing rosin.
</FP-1>
<FP-1>355. Processing rubber (latex).
</FP-1>
<FP-1>358. Processing other chemicals.
</FP-1>
<FP-1>359. Processing miscellaneous products.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>420. Embalming fluids and related products.
</FP-1>
<FP-1>430. Sterilizing and preserving solutions.
</FP-1>
<FP-1>440. Industrial detergents and soaps.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>481. Photoengraving and rotogravure dyes and solutions.
</FP-1>
<FP-1>482. Other dye solutions.
</FP-1>
<FP-1>485. Miscellaneous solutions (including duplicating fluids).</FP-1></EXTRACT>
<P>(2) As a raw material:
</P>
<EXTRACT>
<FP-1>521. Ethyl acetate.
</FP-1>
<FP-1>522. Ethyl chloride.
</FP-1>
<FP-1>523. Other ethyl esters.
</FP-1>
<FP-1>530. Ethylamines.
</FP-1>
<FP-1>540. Dyes and intermediates.
</FP-1>
<FP-1>551. Acetaldehyde.
</FP-1>
<FP-1>552. Other aldehydes.
</FP-1>
<FP-1>561. Ethyl ether.
</FP-1>
<FP-1>562. Other ethers.
</FP-1>
<FP-1>571. Ethylene dibromide.
</FP-1>
<FP-1>572. Ethylene gas.
</FP-1>
<FP-1>573. Xanthates.
</FP-1>
<FP-1>574. Fulminate of mercury and other detonators.
</FP-1>
<FP-1>575. Drugs and medicinal chemicals.
</FP-1>
<FP-1>579. Other chemicals.</FP-1></EXTRACT>
<P>(3) As a fuel:
</P>
<EXTRACT>
<FP-1>611. Automobile and supplementary fuels.
</FP-1>
<FP-1>612. Airplane and supplementary fuels.
</FP-1>
<FP-1>613. Rocket and jet fuels.
</FP-1>
<FP-1>620. Proprietary heating fuels.
</FP-1>
<FP-1>630. Other fuel uses.</FP-1></EXTRACT>
<P>(4) As a fluid:
</P>
<EXTRACT>
<FP-1>710. Scientific instruments.
</FP-1>
<FP-1>720. Brake fluids.
</FP-1>
<FP-1>730. Cutting oil.
</FP-1>
<FP-1>740. Refrigerating uses.
</FP-1>
<FP-1>750. Other fluid uses.
</FP-1>
<FP-1>760. Proprietary anti-freeze.</FP-1></EXTRACT>
<P>(5) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).
</FP-1>
<FP-1>900. Specialized uses (unclassified).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.33" NODE="27:1.0.1.1.17.4.289.3" TYPE="SECTION">
<HEAD>§ 21.33   Formula No. 2-B.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>One-half gallon of rubber hydrocarbon solvent, 
<FR>1/2</FR> gallon of toluene, 
<FR>1/2</FR> gallon of heptane, 
<FR>1/2</FR> gallon of hexane (mixed isomers), or 
<FR>1/2</FR> gallon of <I>n</I>-hexane.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>021. Cellulose plastics.
</FP-1>
<FP-1>022. Non-cellulose plastics, including resins.
</FP-1>
<FP-1>031. Photographic film and emulsions.
</FP-1>
<FP-1>032. Transparent sheeting.
</FP-1>
<FP-1>033. Explosives.
</FP-1>
<FP-1>311. Cellulose compounds (dehydration).
</FP-1>
<FP-1>312. Sodium hydrosulfite (dehydration).
</FP-1>
<FP-1>315. Other dehydration products.
</FP-1>
<FP-1>320. Petroleum products.
</FP-1>
<FP-1>331. Processing pectin.
</FP-1>
<FP-1>332. Processing other food products.
</FP-1>
<FP-1>341. Processing crude drugs.
</FP-1>
<FP-1>342. Processing glandular products, vitamins, hormones, and yeasts.
</FP-1>
<FP-1>343. Processing antibiotics and vaccines.
</FP-1>
<FP-1>344. Processing medicinal chemicals (including alkaloids).
</FP-1>
<FP-1>349. Miscellaneous drug processing (including manufacture of pills).
</FP-1>
<FP-1>351. Processing dyes and intermediates.
</FP-1>
<FP-1>352. Processing perfume materials and fixatives.
</FP-1>
<FP-1>353. Processing photographic chemicals.
</FP-1>
<FP-1>358. Processing other chemicals.
</FP-1>
<FP-1>359. Processing miscellaneous products.</FP-1></EXTRACT>
<P>(2) As a raw material:
</P>
<EXTRACT>
<FP-1>521. Ethyl acetate.
</FP-1>
<FP-1>522. Ethyl chloride.
</FP-1>
<FP-1>523. Other ethyl esters.
</FP-1>
<FP-1>524. Sodium ethylate, anhydrous.
</FP-1>
<FP-1>530. Ethylamines.
</FP-1>
<FP-1>540. Dyes and intermediates.
</FP-1>
<FP-1>551. Acetaldehyde.
</FP-1>
<FP-1>552. Other aldehydes.
</FP-1>
<FP-1>561. Ethyl ether.
</FP-1>
<FP-1>562. Other ethers.
</FP-1>
<FP-1>571. Ethylene dibromide.
</FP-1>
<FP-1>572. Ethylene gas.
</FP-1>
<FP-1>573. Xanthates.
</FP-1>
<FP-1>575. Drugs and medicinal chemicals.
</FP-1>
<FP-1>576. Organo-silicone products.
</FP-1>
<FP-1>579. Other chemicals.</FP-1></EXTRACT>
<P>(3) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<P>(c) <I>Conditions governing use.</I> This formula shall be used in a closed and continuous system unless otherwise authorized by the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001; T.D. TTB-140 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.34" NODE="27:1.0.1.1.17.4.289.4" TYPE="SECTION">
<HEAD>§ 21.34   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.35" NODE="27:1.0.1.1.17.4.289.5" TYPE="SECTION">
<HEAD>§ 21.35   Formula No. 3-A.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Five gallons of cyclohexane or methyl alcohol.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>011. Cellulose coatings.
</FP-1>
<FP-1>012. Synthetic resin coatings.
</FP-1>
<FP-1>016. Other coatings.
</FP-1>
<FP-1>021. Cellulose plastics.
</FP-1>
<FP-1>022. Non-cellulose plastics, including resins.
</FP-1>
<FP-1>031. Photographic film and emulsions.
</FP-1>
<FP-1>032. Transparent sheeting.
</FP-1>
<FP-1>033. Explosives.
</FP-1>
<FP-1>034. Cellulose intermediates and industrial collodions.
</FP-1>
<FP-1>035. Soldering flux.
</FP-1>
<FP-1>036. Adhesives and binders.
</FP-1>
<FP-1>041. Proprietary solvents.
</FP-1>
<FP-1>043. Solvents, special (restricted sale).
</FP-1>
<FP-1>051. Polishes.
</FP-1>
<FP-1>052. Inks (including meat branding inks).
</FP-1>
<FP-1>053. Stains (wood, etc.).
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soap and bath preparations.
</FP-1>
<FP-1>311. Cellulose compounds (dehydration).
</FP-1>
<FP-1>312. Sodium hydrosulfite (dehydration).
</FP-1>
<FP-1>315. Other dehydration products.
</FP-1>
<FP-1>320. Petroleum products.
</FP-1>
<FP-1>331. Processing pectin.
</FP-1>
<FP-1>332. Processing other food products.
</FP-1>
<FP-1>341. Processing crude drugs.
</FP-1>
<FP-1>342. Processing glandular products, vitamins, hormones, and yeasts.
</FP-1>
<FP-1>343. Processing antibiotics and vaccines.
</FP-1>
<FP-1>344. Processing medicinal chemicals (including alkaloids).
</FP-1>
<FP-1>345. Processing blood and blood products.
</FP-1>
<FP-1>349. Miscellaneous drug processing (including manufacture of pills).
</FP-1>
<FP-1>351. Processing dyes and intermediates.
</FP-1>
<FP-1>352. Processing perfume materials and fixatives.
</FP-1>
<FP-1>353. Processing photographic chemicals.
</FP-1>
<FP-1>354. Processing rosin.
</FP-1>
<FP-1>355. Processing rubber (latex).
</FP-1>
<FP-1>358. Processing other chemicals.
</FP-1>
<FP-1>359. Processing miscellaneous products.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>420. Embalming fluids and related products.
</FP-1>
<FP-1>430. Sterilizing and preserving solutions.
</FP-1>
<FP-1>440. Industrial detergents and soaps.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.
</FP-1>
<FP-1>481. Photoengraving and rotogravure dyes and solutions.
</FP-1>
<FP-1>482. Other dye solutions.
</FP-1>
<FP-1>485. Miscellaneous solutions (including duplicating fluids).</FP-1></EXTRACT>
<P>(2) As a raw material:
</P>
<EXTRACT>
<FP-1>530. Ethylamines.
</FP-1>
<FP-1>540. Dyes and intermediates.
</FP-1>
<FP-1>575. Drugs and medicinal chemicals.
</FP-1>
<FP-1>576. Organo-silicone products.
</FP-1>
<FP-1>579. Other chemicals.
</FP-1>
<FP-1>590. Synthetic resins.</FP-1></EXTRACT>
<P>(3) As a fuel:
</P>
<EXTRACT>
<FP-1>611. Automobile and supplementary fuels.
</FP-1>
<FP-1>612. Airplane and supplementary fuels.
</FP-1>
<FP-1>613. Rocket and jet fuels.
</FP-1>
<FP-1>620. Proprietary heating fuels.
</FP-1>
<FP-1>630. Other fuel uses.</FP-1></EXTRACT>
<P>(4) As a fluid:
</P>
<EXTRACT>
<FP-1>710. Scientific instruments.
</FP-1>
<FP-1>720. Brake fluids.
</FP-1>
<FP-1>730. Cutting oils.
</FP-1>
<FP-1>740. Refrigerating uses.
</FP-1>
<FP-1>750. Other fluid uses.</FP-1></EXTRACT>
<P>(5) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>810. General laboratory and experimental use (own use only).
</FP-1>
<FP-1>811. Laboratory reagents for sale.
</FP-1>
<FP-1>812. Product development and pilot plant uses (own use only).
</FP-1>
<FP-1>900. Specialized uses (unclassified).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.36" NODE="27:1.0.1.1.17.4.289.6" TYPE="SECTION">
<HEAD>§ 21.36   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.37" NODE="27:1.0.1.1.17.4.289.7" TYPE="SECTION">
<HEAD>§ 21.37   Formula No. 3-C.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Five gallons of isopropyl alcohol.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>011. Cellulose coatings.
</FP-1>
<FP-1>012. Synthetic resin coatings.
</FP-1>
<FP-1>016. Other coatings.
</FP-1>
<FP-1>021. Cellulose plastics.
</FP-1>
<FP-1>022. Non-cellulose plastics, including resins.
</FP-1>
<FP-1>031. Photographic film and emulsions.
</FP-1>
<FP-1>032. Transparent sheeting.
</FP-1>
<FP-1>033. Explosives.
</FP-1>
<FP-1>034. Cellulose intermediates and industrial collodions.
</FP-1>
<FP-1>035. Soldering flux.
</FP-1>
<FP-1>036. Adhesives and binders.
</FP-1>
<FP-1>043. Solvents, special (restricted sale).
</FP-1>
<FP-1>051. Polishes.
</FP-1>
<FP-1>052. Inks (including meat branding inks).
</FP-1>
<FP-1>053. Stains (wood, etc.).
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soaps and bath preparations.
</FP-1>
<FP-1>311. Cellulose compounds (dehydration).
</FP-1>
<FP-1>312. Sodium hydrosulfite (dehydration).
</FP-1>
<FP-1>315. Other dehydration products.
</FP-1>
<FP-1>320. Petroleum products.
</FP-1>
<FP-1>331. Processing pectin.
</FP-1>
<FP-1>332. Processing other food products.
</FP-1>
<FP-1>341. Processing crude drugs.
</FP-1>
<FP-1>342. Processing glandular products, vitamins, hormones, and yeasts.
</FP-1>
<FP-1>343. Processing antibiotics and vaccines.
</FP-1>
<FP-1>344. Processing medicinal chemicals (including alkaloids).
</FP-1>
<FP-1>345. Processing blood and blood products.
</FP-1>
<FP-1>349. Miscellaneous drug processing (including manufacture of pills).
</FP-1>
<FP-1>351. Processing dyes and intermediates.
</FP-1>
<FP-1>352. Processing perfume materials and fixatives.
</FP-1>
<FP-1>353. Processing photographic chemicals.
</FP-1>
<FP-1>354. Processing rosin.
</FP-1>
<FP-1>355. Processing rubber (latex).
</FP-1>
<FP-1>358. Processing other chemicals.
</FP-1>
<FP-1>359. Processing miscellaneous products.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>420. Embalming fluids and related products.
</FP-1>
<FP-1>430. Sterilizing and preserving solutions.
</FP-1>
<FP-1>440. Industrial detergents and soaps.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.
</FP-1>
<FP-1>481. Photoengraving and rotogravure dyes and solutions.
</FP-1>
<FP-1>482. Other dye solutions.
</FP-1>
<FP-1>485. Miscellaneous solutions (including duplicating fluids).</FP-1></EXTRACT>
<P>(2) As a raw material:
</P>
<EXTRACT>
<FP-1>530. Ethylamines.
</FP-1>
<FP-1>540. Dyes and intermediates.
</FP-1>
<FP-1>575. Drugs and medicinal chemicals.
</FP-1>
<FP-1>576. Organo-silicone products.
</FP-1>
<FP-1>579. Other chemicals.
</FP-1>
<FP-1>590. Synthetic resins.</FP-1></EXTRACT>
<P>(3) As a fuel:
</P>
<EXTRACT>
<FP-1>611. Automobile and supplementary fuels.
</FP-1>
<FP-1>612. Airplane and supplementary fuels.
</FP-1>
<FP-1>613. Rocket and jet fuels.
</FP-1>
<FP-1>620. Proprietary heating fuels.
</FP-1>
<FP-1>630. Other fuel uses.</FP-1></EXTRACT>
<P>(4) As a fluid:
</P>
<EXTRACT>
<FP-1>710. Scientific instruments.
</FP-1>
<FP-1>720. Brake fluids.
</FP-1>
<FP-1>730. Cutting oils.
</FP-1>
<FP-1>740. Refrigerating uses.
</FP-1>
<FP-1>750. Other fluid uses.</FP-1></EXTRACT>
<P>(5) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>810. General laboratory and experimental use (own use only).
</FP-1>
<FP-1>811. Laboratory reagents for sale.
</FP-1>
<FP-1>812. Product development and pilot plant uses (own use only).
</FP-1>
<FP-1>900. Specialized uses (unclassified).</FP-1></EXTRACT>
<P>(c) <I>Conditions governing use.</I> This formula shall not be used in manufacturing Reagent alcohol general-use formula under § 20.117 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 FR 9183, Mar. 6, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 21.38" NODE="27:1.0.1.1.17.4.289.8" TYPE="SECTION">
<HEAD>§ 21.38   Formula No. 4.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol, or to every 100 gallons of rum of not less than 150 proof, add:
</P>
<EXTRACT>
<FP-1>One gallon of the following solution: Five gallons of an aqueous solution containing 40 percent nicotine; 3.6 avoirdupois ounces of methylene blue, U.S.P.; and water sufficient to make 100 gallons.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>460. Tobacco sprays and flavors.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§§ 21.39-21.40" NODE="27:1.0.1.1.17.4.289.9" TYPE="SECTION">
<HEAD>§§ 21.39-21.40   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.41" NODE="27:1.0.1.1.17.4.289.10" TYPE="SECTION">
<HEAD>§ 21.41   Formula No. 13-A.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Ten gallons of ethyl ether.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>015. Candy glazes.
</FP-1>
<FP-1>021. Cellulose plastics.
</FP-1>
<FP-1>022. Non-cellulose plastics, including resins.
</FP-1>
<FP-1>031. Photographic film and emulsions.
</FP-1>
<FP-1>032. Transparent sheeting.
</FP-1>
<FP-1>034. Cellulose intermediates and industrial collodions.
</FP-1>
<FP-1>052. Inks (not including meat branding inks).
</FP-1>
<FP-1>241. Collodion, U.S.P.
</FP-1>
<FP-1>331. Processing pectin.
</FP-1>
<FP-1>332. Processing other food products.
</FP-1>
<FP-1>342. Processing glandular products, vitamins, hormones, and yeasts.
</FP-1>
<FP-1>343. Processing antibiotics and vaccines.
</FP-1>
<FP-1>344. Processing medicinal chemicals (including alkaloids).
</FP-1>
<FP-1>345. Processing blood and blood products.
</FP-1>
<FP-1>349. Miscellaneous drug processing (including manufacture of pills).
</FP-1>
<FP-1>352. Processing perfume materials and fixatives.
</FP-1>
<FP-1>353. Processing photographic chemicals.
</FP-1>
<FP-1>358. Processing other chemicals.
</FP-1>
<FP-1>359. Processing miscellaneous products.
</FP-1>
<FP-1>430. Sterilizing and preserving solutions.
</FP-1>
<FP-1>481. Photoengraving and rotogravure solutions and dyes.
</FP-1>
<FP-1>485. Miscellaneous solutions.</FP-1></EXTRACT>
<P>(2) As a raw material:
</P>
<EXTRACT>
<FP-1>523. Miscellaneous ethyl esters.
</FP-1>
<FP-1>561. Ethyl ether. 
</FP-1>
<FP-1>562. Other ethers.
</FP-1>
<FP-1>575. Drugs and medicinal chemicals.
</FP-1>
<FP-1>579. Other chemicals.</FP-1></EXTRACT>
<P>(3) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.42" NODE="27:1.0.1.1.17.4.289.11" TYPE="SECTION">
<HEAD>§ 21.42   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.43" NODE="27:1.0.1.1.17.4.289.12" TYPE="SECTION">
<HEAD>§ 21.43   Formula No. 18.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol of not less than 160 proof add:
</P>
<EXTRACT>
<FP-1>One hundred gallons of vinegar of not less than 90-grain strength or 150 gallons of vinegar of not less than 60-grain strength.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a raw material:
</P>
<EXTRACT>
<FP-1>511. Vinegar.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.44" NODE="27:1.0.1.1.17.4.289.13" TYPE="SECTION">
<HEAD>§ 21.44   Formula No. 19.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>One hundred gallons of ethyl ether.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>031. Photographic film and emulsions.
</FP-1>
<FP-1>034. Cellulose intermediates and industrial collodions.
</FP-1>
<FP-1>241. Collodion, U.S.P.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§§ 21.45-21.46" NODE="27:1.0.1.1.17.4.289.14" TYPE="SECTION">
<HEAD>§§ 21.45-21.46   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.47" NODE="27:1.0.1.1.17.4.289.15" TYPE="SECTION">
<HEAD>§ 21.47   Formula No. 23-A.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Eight gallons of acetone, U.S.P.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>011. Cellulose coatings.
</FP-1>
<FP-1>012. Synthetic resin coatings.
</FP-1>
<FP-1>013. Shellac coatings.
</FP-1>
<FP-1>014. Other natural resin coatings.
</FP-1>
<FP-1>015. Candy glazes.
</FP-1>
<FP-1>016. Other coatings.
</FP-1>
<FP-1>032. Transparent sheeting.
</FP-1>
<FP-1>034. Cellulose intermediates and industrial collodions.
</FP-1>
<FP-1>035. Soldering flux.
</FP-1>
<FP-1>036. Adhesives and binders.
</FP-1>
<FP-1>042. Solvents and thinners (other than proprietary solvents or special industrial solvents).
</FP-1>
<FP-1>052. Inks (including meat branding inks).
</FP-1>
<FP-1>053. Stains (wood, etc.).
</FP-1>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>112. Bay rum.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>114. Body deodorants and deodorant creams.
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soaps and bath preparations.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>244. Antiseptic solutions, U.S.P. or N.F.
</FP-1>
<FP-1>249. Miscellaneous external pharmaceuticals, U.S.P. or N.F.
</FP-1>
<FP-1>331. Processing pectin.
</FP-1>
<FP-1>332. Processing other food products.
</FP-1>
<FP-1>341. Processing crude drugs.
</FP-1>
<FP-1>342. Processing glandular products, vitamins, hormones, and yeasts.
</FP-1>
<FP-1>343. Processing antibiotics and vaccines.
</FP-1>
<FP-1>344. Processing medicinal chemicals (including alkaloids).
</FP-1>
<FP-1>345. Processing blood and blood products.
</FP-1>
<FP-1>349. Miscellaneous drug processing (including manufacture of pills).
</FP-1>
<FP-1>358. Processing other chemicals.
</FP-1>
<FP-1>359. Processing miscellaneous products.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>420. Embalming fluids and related products.
</FP-1>
<FP-1>430. Sterilizing and preserving solutions.
</FP-1>
<FP-1>440. Industrial detergents and soaps.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>482. Miscellaneous dye solutions.
</FP-1>
<FP-1>485. Miscellaneous solutions.</FP-1></EXTRACT>
<P>(2) As a fluid:
</P>
<EXTRACT>
<FP-1>740. Refrigerating uses.
</FP-1>
<FP-1>750. Miscellaneous fluid uses.</FP-1></EXTRACT>
<P>(3) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.48" NODE="27:1.0.1.1.17.4.289.16" TYPE="SECTION">
<HEAD>§ 21.48   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.49" NODE="27:1.0.1.1.17.4.289.17" TYPE="SECTION">
<HEAD>§ 21.49   Formula No. 23-H.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Eight gallons of acetone, U.S.P., and 1.5 gallons of methyl isobutyl ketone.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>220. Rubbing alcohols.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.50" NODE="27:1.0.1.1.17.4.289.18" TYPE="SECTION">
<HEAD>§ 21.50   Formula No. 25.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Twenty pounds of iodine, U.S.P., and 15 pounds of either potassium iodide, U.S.P., or sodium iodide, U.S.P.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>230. Tinctures of iodine.
</FP-1>
<FP-1>249. Miscellaneous external pharmaceuticals, U.S.P. or N.F.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.51" NODE="27:1.0.1.1.17.4.289.19" TYPE="SECTION">
<HEAD>§ 21.51   Formula No. 25-A.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>A solution composed of 20 pounds of iodine, U.S.P.; 15 pounds of either potassium iodide, U.S.P., or sodium iodide, U.S.P.; and 15 pounds of water.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>230. Tinctures of iodine.
</FP-1>
<FP-1>249. Miscellaneous external pharmaceuticals, U.S.P. or N.F.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§§ 21.52-21.54" NODE="27:1.0.1.1.17.4.289.20" TYPE="SECTION">
<HEAD>§§ 21.52-21.54   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.55" NODE="27:1.0.1.1.17.4.289.21" TYPE="SECTION">
<HEAD>§ 21.55   Formula No. 28-A.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>One gallon or any combination totaling 1 gallon of either gasoline, unleaded gasoline, heptane, or rubber hydrocarbon solvent.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a fuel:
</P>
<EXTRACT>
<FP-1>611. Automobile and supplementary fuels.
</FP-1>
<FP-1>612. Airplane and supplementary fuels.
</FP-1>
<FP-1>613. Rocket and jet fuels.
</FP-1>
<FP-1>620. Proprietary heating fuels.
</FP-1>
<FP-1>630. Other fuel uses.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.56" NODE="27:1.0.1.1.17.4.289.22" TYPE="SECTION">
<HEAD>§ 21.56   Formula No. 29.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>One gallon of 100 percent acetaldehyde or 5 gallons of an alcohol solution of acetaldehyde containing not less than 20 percent acetaldehyde, or 1 gallon of ethyl acetate having an ester content of 100 percent, or, where approved by the appropriate TTB officer, as to material and quantity, not less than 6.8 pounds if solid, or 1 gallon if liquid, of any chemical. When material other than acetaldehyde or ethyl acetate is proposed to be used, the user shall submit an application for such use to the appropriate TTB officer. The application shall include specifications, assay methods, and an 8-ounce sample of the substitute material for analysis.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a raw material:
</P>
<EXTRACT>
<FP-1>511. Vinegar.
</FP-1>
<FP-1>512. Acetic acid.
</FP-1>
<FP-1>521. Ethyl acetate.
</FP-1>
<FP-1>522. Ethyl chloride.
</FP-1>
<FP-1>523. Other ethyl esters.
</FP-1>
<FP-1>530. Ethylamines.
</FP-1>
<FP-1>540. Dyes and intermediates.
</FP-1>
<FP-1>551. Acetaldehyde.
</FP-1>
<FP-1>552. Other aldehydes.
</FP-1>
<FP-1>561. Ethyl ether.
</FP-1>
<FP-1>562. Other ethers.
</FP-1>
<FP-1>571. Ethylene dibromide.
</FP-1>
<FP-1>572. Ethylene gas.
</FP-1>
<FP-1>573. Xanthates.
</FP-1>
<FP-1>575. Drugs and medicinal chemicals.
</FP-1>
<FP-1>579. Other chemicals.
</FP-1>
<FP-1>580. Synthetic rubber.
</FP-1>
<FP-1>590. Synthetic resins.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<P>(c) <I>Conditions governing use.</I> This formula is restricted to processes in which the alcohol loses its identity by being converted into other chemicals.


</P>
</DIV8>


<DIV8 N="§ 21.57" NODE="27:1.0.1.1.17.4.289.23" TYPE="SECTION">
<HEAD>§ 21.57   Formula No. 30.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Ten gallons of methyl alcohol.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>011. Cellulose coatings.
</FP-1>
<FP-1>012. Synthetic resin coatings.
</FP-1>
<FP-1>021. Cellulose plastics.
</FP-1>
<FP-1>022. Non-cellulose plastics, including resins.
</FP-1>
<FP-1>031. Photographic film and emulsions.
</FP-1>
<FP-1>035. Soldering flux.
</FP-1>
<FP-1>036. Adhesives and binders.
</FP-1>
<FP-1>042. Solvents and thinners (other than proprietary solvents or special industrial solvents).
</FP-1>
<FP-1>051. Polishes.
</FP-1>
<FP-1>052. Inks (not including meat branding inks).
</FP-1>
<FP-1>053. Stains.
</FP-1>
<FP-1>142. Soap and bath preparations.
</FP-1>
<FP-1>331. Processing pectin.
</FP-1>
<FP-1>332. Processing other food products.
</FP-1>
<FP-1>341. Processing crude drugs.
</FP-1>
<FP-1>342. Processing glandular products, vitamins, hormones, and yeasts.
</FP-1>
<FP-1>343. Processing antibiotics and vaccines.
</FP-1>
<FP-1>344. Processing medicinal chemicals (including alkaloids).
</FP-1>
<FP-1>345. Processing blood and blood products.
</FP-1>
<FP-1>349. Miscellaneous drug processing (including manufacture of pills).
</FP-1>
<FP-1>352. Processing perfume materials and fixatives.
</FP-1>
<FP-1>353. Processing photographic chemicals.
</FP-1>
<FP-1>358. Processing other chemicals.
</FP-1>
<FP-1>359. Processing miscellaneous products.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>430. Sterilizing and preserving solutions.
</FP-1>
<FP-1>440. Industrial detergents and soaps.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>481. Photoengraving and rotogravure solutions and dyes.
</FP-1>
<FP-1>482. Other dye solutions.
</FP-1>
<FP-1>485. Miscellaneous solutions (including duplicating fluids).</FP-1></EXTRACT>
<P>(2) As a raw material:
</P>
<EXTRACT>
<FP-1>575. Drugs and medicinal chemicals.
</FP-1>
<FP-1>576. Organo-silicone products.
</FP-1>
<FP-1>579. Other chemicals.
</FP-1>
<FP-1>590. Synthetic resins.</FP-1></EXTRACT>
<P>(3) As a fluid in:
</P>
<EXTRACT>
<FP-1>740. Refrigerating uses.
</FP-1>
<FP-1>750. Other fluid uses:</FP-1></EXTRACT>
<P>(4) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>810. General laboratory and experimental use (own use only).
</FP-1>
<FP-1>811. Laboratory reagents for sale.
</FP-1>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.58" NODE="27:1.0.1.1.17.4.289.24" TYPE="SECTION">
<HEAD>§ 21.58   Formula No. 31-A.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>One hundred pounds of glycerin (glycerol), U.S.P., and 20 pounds of hard soap, N.F. XI.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>113. Lotions and creams (hands, face, and body).
</FP-1>
<FP-1>131. Tooth paste and tooth powder.
</FP-1>
<FP-1>141. Shampoos.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.59" NODE="27:1.0.1.1.17.4.289.25" TYPE="SECTION">
<HEAD>§ 21.59   Formula No. 32.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Five gallons of ethyl ether.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>031. Photographic film and emulsions.
</FP-1>
<FP-1>034. Cellulose intermediates and industrial collodions.
</FP-1>
<FP-1>052. Inks (not including meat branding inks).
</FP-1>
<FP-1>241. Collodion, U.S.P.
</FP-1>
<FP-1>311. Ethyl cellulose compounds (dehydration).
</FP-1>
<FP-1>332. Processing miscellaneous food products.
</FP-1>
<FP-1>342. Processing glandular products, vitamins, hormones, and yeasts.
</FP-1>
<FP-1>343. Processing antibiotics and vaccines.
</FP-1>
<FP-1>344. Processing medicinal chemicals (including alkaloids).
</FP-1>
<FP-1>430. Sterilizing and preserving solutions.
</FP-1>
<FP-1>481. Photoengraving and rotogravure solutions and dyes.
</FP-1>
<FP-1>485. Miscellaneous solutions.</FP-1></EXTRACT>
<P>(2) As a raw material:
</P>
<EXTRACT>
<FP-1>522. Ethyl chloride.
</FP-1>
<FP-1>523. Other ethyl esters.
</FP-1>
<FP-1>561. Ethyl ether.
</FP-1>
<FP-1>562. Other ethers.
</FP-1>
<FP-1>571. Ethylene dibromide.
</FP-1>
<FP-1>572. Ethylene gas.
</FP-1>
<FP-1>575. Drugs and medicinal chemicals.
</FP-1>
<FP-1>579. Other chemicals.
</FP-1>
<FP-1>580. Synthetic rubber.</FP-1></EXTRACT>
<P>(3) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§§ 21.60-21.61" NODE="27:1.0.1.1.17.4.289.26" TYPE="SECTION">
<HEAD>§§ 21.60-21.61   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.62" NODE="27:1.0.1.1.17.4.289.27" TYPE="SECTION">
<HEAD>§ 21.62   Formula No. 35-A.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>4.25 gallons of ethyl acetate having an ester content of 100 percent by weight or the equivalent thereof not to exceed 5 gallons of ethyl acetate with an ester content of not less than 85 percent by weight.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>015. Candy glazes.
</FP-1>
<FP-1>052. Inks.
</FP-1>
<FP-1>331. Processing pectin.
</FP-1>
<FP-1>332. Processing other food products.
</FP-1>
<FP-1>342. Processing glandular products, vitamins, hormones, and yeasts.
</FP-1>
<FP-1>343. Processing antibiotics and vaccines.
</FP-1>
<FP-1>344. Processing medicinal chemicals (including alkaloids).
</FP-1>
<FP-1>349. Miscellaneous drug processing (including manufacture of pills).
</FP-1>
<FP-1>358. Processing miscellaneous chemicals.
</FP-1>
<FP-1>359. Processing miscellaneous products.</FP-1></EXTRACT>
<FP-1>485. Miscellaneous solutions.
</FP-1>
<P>(2) As a raw material:
</P>
<EXTRACT>
<FP-1>511. Vinegar.
</FP-1>
<FP-1>512. Acetic acid.
</FP-1>
<FP-1>521. Ethyl acetate.
</FP-1>
<FP-1>523. Other ethyl esters.
</FP-1>
<FP-1>590. Synthetic resins.
</FP-1>
<FP-1>910. Animal feed supplements.</FP-1></EXTRACT>
<P>(3) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.63" NODE="27:1.0.1.1.17.4.289.28" TYPE="SECTION">
<HEAD>§ 21.63   Formula No. 36.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Three gallons of ammonia, aqueous, 27 to 30 percent by weight; 3 gallons of strong ammonia solution, N.F.: 17.5 pounds of caustic soda, liquid grade, containing 50 percent sodium hydroxide by weight; 8.75 pounds of potassium hydroxide, on an anhydrous basis or 12.0 pounds of caustic soda, liquid grade, containing 73 percent sodium hydroxide by weight.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soap and bath preparations.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).</FP-1></EXTRACT>
<P>(2) As a raw material:
</P>
<EXTRACT>
<FP-1>530. Ethylamines.
</FP-1>
<FP-1>540. Dyes and intermediates.
</FP-1>
<FP-1>579. Other chemicals.</FP-1></EXTRACT>
<P>(3) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.64" NODE="27:1.0.1.1.17.4.289.29" TYPE="SECTION">
<HEAD>§ 21.64   Formula No. 37.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Forty-five fluid ounces of eucalyptol, N.F. XII, 30 avoirdupois ounces of thymol, N.F., and 20 avoirdupois ounces of menthol, U.S.P.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>112. Bay rum.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>131. Dentifrices.
</FP-1>
<FP-1>132. Mouth washes.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>244. Antispetic solutions, U.S.P. or N.F.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>430. Sterilizing and preserving solutions.
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.65" NODE="27:1.0.1.1.17.4.289.30" TYPE="SECTION">
<HEAD>§ 21.65   Formula No. 38-B.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-2>Ten pounds of any one, or a total of 10 pounds of two or more, of the oils and substances listed below:
</FP-2>
<FP-1>Alpha terpineol
</FP-1>
<FP-1>Anethole, N.F.
</FP-1>
<FP-1>Anise oil, N.F.
</FP-1>
<FP-1>Bay oil (myrcia oil), N.F. XI.
</FP-1>
<FP-1>Benzaldehyde, N.F.
</FP-1>
<FP-1>Bergamot oil, N.F. XI.
</FP-1>
<FP-1>Bitter almond oil, N.F. X.
</FP-1>
<FP-1>Camphor, U.S.P.
</FP-1>
<FP-1>Cedar leaf oil, U.S.P. XIII.
</FP-1>
<FP-1>Chlorothymol, N.F. XII.
</FP-1>
<FP-1>Cinnamic aldehyde, N.F. IX.
</FP-1>
<FP-1>Cinnamon oil, N.F.
</FP-1>
<FP-1>Citronella oil, natural.
</FP-1>
<FP-1>Clove oil, N.F.
</FP-1>
<FP-1>Coal tar, U.S.P.
</FP-1>
<FP-1>Cornmint oil.
</FP-1>
<FP-1>Distilled lime oil.
</FP-1>
<FP-1>Eucalyptol, N.F. XII.
</FP-1>
<FP-1>Eucalyptus oil, N.F.
</FP-1>
<FP-1>Eugenol, U.S.P.
</FP-1>
<FP-1>Guaiacol, N.F. X.
</FP-1>
<FP-1>L(-)-Carvone.
</FP-1>
<FP-1>Lavender oil, N.F.
</FP-1>
<FP-1>Lemon oil.
</FP-1>
<FP-1>Menthol, U.S.P.
</FP-1>
<FP-1>Methyl salicylate, N.F.
</FP-1>
<FP-1>Mustard oil, volatile (allyl isothiocyanate), U.S.P. XII.
</FP-1>
<FP-1>Peppermint oil, N.F.
</FP-1>
<FP-1>Peppermint oil, terpeneless. 
</FP-1>
<FP-1>Phenol, U.S.P.
</FP-1>
<FP-1>Phenyl salicylate (salol), N.F. XI.
</FP-1>
<FP-1>Pine oil, N.F. XII.
</FP-1>
<FP-1>Pine needle oil, dwarf, N.F.
</FP-1>
<FP-1>Rosemary oil, N.F. XII.
</FP-1>
<FP-1>Safrole.
</FP-1>
<FP-1>Sassafras oil, N.F. XI.
</FP-1>
<FP-1>Spearmint oil, N.F.
</FP-1>
<FP-1>Spearmint oil, terpeneless.
</FP-1>
<FP-1>Spike lavender oil, natural.
</FP-1>
<FP-1>Storax, U.S.P.
</FP-1>
<FP-1>Thyme oil, N.F. XII.
</FP-1>
<FP-1>Thymol, N.F.
</FP-1>
<FP-1>Tolu balsam, U.S.P.
</FP-1>
<FP-1>Turpentine oil, N.F. XI.</FP-1></EXTRACT>
<P>If it is shown that none of the above single denaturants or combinations can be used in the manufacture of a particular product, the user may submit an application to the appropriate TTB officer, requesting permission to use another essential oil or substance having denaturing properties satisfactory to the appropriate TTB officer. In such a case the user shall furnish the appropriate TTB officer, with specifications, assay methods, the name and address of the manufacturer, and an 8-ounce sample of the denaturant for analysis.
</P>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>112. Bay rum.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>114. Deodorants (body).
</FP-1>
<FP-1>121. Perfumes and perfume tinctures.
</FP-1>
<FP-1>122. Toilet waters and colognes.
</FP-1>
<FP-1>131. Dentifrices.
</FP-1>
<FP-1>132. Mouth washes.
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soap and bath preparations.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>243. Liniments, U.S.P. or N.F.
</FP-1>
<FP-1>244. Antiseptic solutions, U.S.P. or N.F.
</FP-1>
<FP-1>249. Miscellaneous external pharmaceuticals, U.S.P. or N.F.
</FP-1>
<FP-1>349. Miscellaneous drug processing (including manufacture of pills).
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>430.  Sterilizing and preserving solutions.
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001; T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.66" NODE="27:1.0.1.1.17.4.289.31" TYPE="SECTION">
<HEAD>§ 21.66   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.67" NODE="27:1.0.1.1.17.4.289.32" TYPE="SECTION">
<HEAD>§ 21.67   Formula No. 38-D.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Two and one-half pounds of menthol, U.S.P., and 2.5 gallons of formaldehyde solution, U.S.P.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>131. Dentifrices.
</FP-1>
<FP-1>132. Mouth washes.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.68" NODE="27:1.0.1.1.17.4.289.33" TYPE="SECTION">
<HEAD>§ 21.68   Formula No. 38-F.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<P>(1) Six pounds of either boric acid, N.F., Polysorbate 80, N.F., or Poloxamer 407, N.F.; 1
<SU>1</SU>/<E T="52">3</E> pounds of thymol, N.F.; 1
<SU>1</SU>/<E T="52">3</E> pounds of chlorothymol, N.F. XII; and 1
<SU>1</SU>/<E T="52">3</E> pounds of menthol, U.S.P.; or
</P>
<P>(2) A total of at least 3 pounds of any two or more denaturing materials listed under Formula No. 38-B, plus sufficient boric acid, N.F., Polysorbate 80, N.F., or Poloxamer 407, N.F. to total 10 pounds of denaturant; or
</P>
<P>(3) Seven pounds of zinc chloride, U.S.P., 2.6 fluid ounces of hydrochloric acid, N.F., and a total of 3 pounds of any two or more of the denaturing materials listed under Formula No. 38-B.
</P>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>132. Mouth washes.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>244. Antiseptic solutions, U.S.P. or N.F.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§§ 21.69-21.70" NODE="27:1.0.1.1.17.4.289.34" TYPE="SECTION">
<HEAD>§§ 21.69-21.70   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.71" NODE="27:1.0.1.1.17.4.289.35" TYPE="SECTION">
<HEAD>§ 21.71   Formula No. 39-B.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Two and one-half gallons of diethyl phthalate and 
<FR>1/8</FR> gallon of <I>tert-</I>butyl alcohol.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>112. Bay rum.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>114. Deodorants (body).
</FP-1>
<FP-1>121. Perfumes and perfume tinctures.
</FP-1>
<FP-1>122. Toilet waters and colognes.
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soap and bath preparations.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.72" NODE="27:1.0.1.1.17.4.289.36" TYPE="SECTION">
<HEAD>§ 21.72   Formula No. 39-C.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>One gallon of diethyl phthalate.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>114. Deodorants (body).
</FP-1>
<FP-1>121. Perfumes and perfume tinctures.
</FP-1>
<FP-1>122. Toilet waters and colognes.
</FP-1>
<FP-1>142. Soaps and bath preparations.
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.73" NODE="27:1.0.1.1.17.4.289.37" TYPE="SECTION">
<HEAD>§ 21.73   Formula No. 39-D.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>One gallon of bay oil (myrcia oil), N.F. XI, and either 50 avoirdupois ounces of quinine sulfate, U.S.P., 50 avoirdupois ounces of sodium salicylate, U.S.P.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>112. Bay rum.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.74" NODE="27:1.0.1.1.17.4.289.38" TYPE="SECTION">
<HEAD>§ 21.74   Formula No. 40.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add 
<FR>1/8</FR> gallon of <I>tert</I>-butyl alcohol, and:
</P>
<EXTRACT>
<FP-1>One and one-half avoirdupois ounces of either (1) brucine alkaloid, (2) brucine sulfate, N.F. IX, (3) quassin, or (4) any combination of two or of three of those denaturants.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>112. Bay rum.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>114. Deodorants (body).
</FP-1>
<FP-1>121. Perfumes and perfume tinctures.
</FP-1>
<FP-1>122. Toilet waters and colognes.
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soaps and bath preparations.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.75" NODE="27:1.0.1.1.17.4.289.39" TYPE="SECTION">
<HEAD>§ 21.75   Formula No. 40-A.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>One pound of sucrose octaacetate and 
<FR>1/8</FR> gallon of <I>tert</I>-butyl alcohol.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>112. Bay rum.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>114. Deodorants (body).
</FP-1>
<FP-1>121. Perfumes and perfume tinctures.
</FP-1>
<FP-1>122. Toilet waters and colognes.
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soaps and bath preparations.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.76" NODE="27:1.0.1.1.17.4.289.40" TYPE="SECTION">
<HEAD>§ 21.76   Formula No. 40-B.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>One-sixteenth avoirdupois ounce of denatonium benzoate, N.F., and 
<FR>1/8</FR> gallon of <I>tert</I>-butyl alcohol.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>052. Inks.
</FP-1>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>112. Bay rum.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>114. Deodorants (body).
</FP-1>
<FP-1>121. Perfumes and perfume tinctures.
</FP-1>
<FP-1>122. Toilet waters and colognes.
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soaps and bath preparations.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.</FP-1></EXTRACT>
<FP-1>485. Miscellaneous solutions.
</FP-1>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001; T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.77" NODE="27:1.0.1.1.17.4.289.41" TYPE="SECTION">
<HEAD>§ 21.77   Formula No. 40-C.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Three gallons of <I>tert</I>-butyl alcohol.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>111. Hair and scalp preparations.
</FP-1>
<FP-1>112. Bay rum.
</FP-1>
<FP-1>113. Lotions and creams (hand, face, and body).
</FP-1>
<FP-1>114. Deodorants (body).
</FP-1>
<FP-1>121. Perfumes and perfume tinctures.
</FP-1>
<FP-1>122. Toilet waters and colognes.
</FP-1>
<FP-1>141. Shampoos.
</FP-1>
<FP-1>142. Soaps and bath preparations.
</FP-1>
<FP-1>210. External pharmaceuticals, not U.S.P. or N.F.
</FP-1>
<FP-1>410. Disinfectants, insecticides, fungicides, and other biocides.
</FP-1>
<FP-1>450. Cleaning solutions (including household detergents).
</FP-1>
<FP-1>470. Theater sprays, incense, and room deodorants.
</FP-1>
<FP-1>485. Miscellaneous solutions.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses.
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
<P>(c) <I>Conditions governing use.</I> This formula shall be used only in the manufacture of products which will be packaged in pressurized containers in which the liquid contents are in intimate contact with the propellant and from which the contents are not easily removable in liquid form.


</P>
</DIV8>


<DIV8 N="§ 21.78" NODE="27:1.0.1.1.17.4.289.42" TYPE="SECTION">
<HEAD>§ 21.78   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.79" NODE="27:1.0.1.1.17.4.289.43" TYPE="SECTION">
<HEAD>§ 21.79   Formula No. 44.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Ten gallons of <I>n</I>-butyl alcohol</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>430. Sterilizing and preserving solutions.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812. Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.80" NODE="27:1.0.1.1.17.4.289.44" TYPE="SECTION">
<HEAD>§ 21.80   Formula No. 45.</HEAD>
<P>(a) <I>Formula.</I> To every 100 gallons of alcohol add:
</P>
<EXTRACT>
<FP-1>Three hundred pounds of refined white or orange shellac.</FP-1></EXTRACT>
<P>(b) <I>Authorized uses.</I> (1) As a solvent:
</P>
<EXTRACT>
<FP-1>015. Candy glazes.</FP-1></EXTRACT>
<P>(2) Miscellaneous uses:
</P>
<EXTRACT>
<FP-1>812 Product development and pilot plant uses (own use only).</FP-1></EXTRACT>
</DIV8>


<DIV8 N="§ 21.81" NODE="27:1.0.1.1.17.4.289.45" TYPE="SECTION">
<HEAD>§ 21.81   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.17.5" TYPE="SUBPART">
<HEAD>Subpart E—Specifications for Denaturants</HEAD>


<DIV8 N="§ 21.91" NODE="27:1.0.1.1.17.5.289.1" TYPE="SECTION">
<HEAD>§ 21.91   General.</HEAD>
<P>Denaturants prescribed in this part shall comply with the specifications set forth in this subpart. However, in order to meet requirements of national defense or for other valid reasons, the appropriate TTB officer may, pursuant to written application filed by the denaturer, authorize variations from such specifications or authorize the use of substitute denaturants if such variation or substitution will not jeopardize the revenue. Each such application shall identify the applicant by name, address, and permit number; state the number of each formula of specially denatured alcohol involved; explain why the use of the substitute denaturant, or the variation from specifications, as the case may be, is necessary; and include, as applicable, either the identity of the approved denaturant for which substitution is desired and the identity of the substitute denaturant (including the name of the manufacturer) or the identity of the prescribed specifications and the proposed variation from those specifications. The application shall be accompanied by an 8-ounce sample of the proposed denaturing material for analysis. The authorization of a substitute denaturant may be published in a TTB Ruling.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001; T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.92" NODE="27:1.0.1.1.17.5.289.2" TYPE="SECTION">
<HEAD>§ 21.92   Denaturants listed as U.S.P. or N.F.</HEAD>
<P>Denaturing materials and products listed in this part as “U.S.P.” or “N.F.” shall meet the specifications set forth in the current United States Pharmacopoeia or National Formulary, or the latest volume of these publications in which the denaturants appeared as official preparations.


</P>
</DIV8>


<DIV8 N="§ 21.93" NODE="27:1.0.1.1.17.5.289.3" TYPE="SECTION">
<HEAD>§ 21.93   Acetaldehyde.</HEAD>
<P>(a) <I>Aldehyde content (as acetaldehyde).</I> Not less than 95.0 percent by weight.
</P>
<P>(b) <I>Color.</I> Colorless.
</P>
<P>(c) <I>Odor.</I> Characteristic pungent, fruity odor.
</P>
<P>(d) <I>Specific gravity at 15.56 °/15.56 °C.</I> Not less than 0.7800.


</P>
</DIV8>


<DIV8 N="§ 21.94" NODE="27:1.0.1.1.17.5.289.4" TYPE="SECTION">
<HEAD>§ 21.94   Acetaldol.</HEAD>
<P>(a) <I>Purity.</I> Not less than 90 percent by weight acetaldol as determined by the following method:
</P>
<EXTRACT>
<P>Dissolve 15 grams of the acetaldol in distilled water and dilute to 1 liter in a volumetric flask. Transfer 5 mL of this solution to a 250 mL glass-stoppered flask containing 25 mL distilled water. Add 25 mL of a freshly prepared 1 percent sodium bisulfite solution. Prepare a blank omitting the acetaldol solution. Place the flasks in a dark place away from excessive heat or cold and allow to stand six hours. Remove flasks and titrate free bisulfite with 0.1 N iodine solution using starch indicator.
</P>
<FP-1>Percent acetaldol by weight = (mL blank − mL test) × 200 × 0.44 / weight of sample
</FP-1>
<P>Titrations in excess of 100 percent may be obtained if the sample contains appreciable amounts of acetaldehyde.</P></EXTRACT>
<P>(b) <I>Specific gravity at 20 °C.</I> 1.098 to 1.105.


</P>
</DIV8>


<DIV8 N="§ 21.94-T" NODE="27:1.0.1.1.17.5.289.5" TYPE="SECTION">
<HEAD>§ 21.94-T   Alkylate.</HEAD>
<P>(a) <I>API gravity at 60 °F.</I> 70.4.
</P>
<P>(b) <I>Reid vapor pressure (PSI).</I> 5.60 maximum.
</P>
<P>(c) <I>Distillation ( °F):</I>
</P>
<P>(i) <I>I.B.P.</I> 109.0.
</P>
<P>(ii) <I>10 percent.</I> 186.6.
</P>
<P>(iii) <I>50 percent.</I> 221.1.
</P>
<P>(iv) <I>90 percent.</I> 271.8.
</P>
<P>(v) <I>End point distillation.</I> 375.7.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59461, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.95" NODE="27:1.0.1.1.17.5.289.6" TYPE="SECTION">
<HEAD>§ 21.95   Alpha terpineol.</HEAD>
<P>(a) Boiling point at 752mm 218.8-219.4 °C.
</P>
<P>(b) Density at 15° 0.9386.
</P>
<P>(c) Refractive index at 20° 1.4831.
</P>
<CITA TYPE="N">[T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.96" NODE="27:1.0.1.1.17.5.289.7" TYPE="SECTION">
<HEAD>§ 21.96   Ammonia, aqueous.</HEAD>
<P>(a) <I>Alkalinity.</I> Strongly alkaline to litmus.
</P>
<P>(b) <I>Ammonia content.</I> 27 to 30 percent by weight. Accurately weigh a glass-stoppered flask containing 25 mL of water, add about 2 mL of the sample, stopper, and weigh again. Add methyl red indicator, and titrate with 1 N sulfuric acid. Each mL of 1 N sulfuric acid is equivalent to 17.03 mg of NH<E T="52">3</E>
</P>
<P>(c) <I>Color.</I> Colorless liquid.
</P>
<P>(d) <I>Non-volatile residue.</I> 2 mg maximum. Dilute a portion of the sample with 1
<FR>1/2</FR> times its volume of distilled water. Evaporate 10 mL of this product to dryness in a tared platinum or porcelain dish. Dry residue at 105 °C. for 1 hour, cool and weigh.
</P>
<P>(e) <I>Odor.</I> Characteristic (exceedingly pungent).
</P>
<P>(f) <I>Specific gravity at 20 °/4 °C.</I> 0.8920 to 0.9010.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§§ 21.97-21.98" NODE="27:1.0.1.1.17.5.289.8" TYPE="SECTION">
<HEAD>§§ 21.97-21.98   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.99" NODE="27:1.0.1.1.17.5.289.9" TYPE="SECTION">
<HEAD>§ 21.99   Brucine alkaloid.</HEAD>
<P>(a) <I>Identification test.</I> Add a few drops of concentrated nitric acid to about 10 mg of brucine alkaloid. A vivid red color is produced. Dilute the red solution with a few drops of water and add a few drops of freshly made dilute stannous chloride solution. A reddish purple (violet) color is produced.
</P>
<P>(b) <I>Melting point.</I> 178 °±1 °C. Dry the alkaloid in an oven for one hour at 100 °C., increase the temperature to 110° and dry to a constant weight before taking melting point.
</P>
<NOTE>
<HED>Note.</HED>
<P>Brucine alkaloid tetrahydrate melts at 105 °C. while the anhydrous form melts at 178 °C.</P></NOTE>
<P>(c) <I>Strychnine test.</I> Brucine alkaloid shall be free of strychnine when tested by the method listed under Brucine Sulfate, N.F. IX.
</P>
<NOTE>
<HED>Note.</HED>
<P>If the brucine contains as much as 0.05 percent strychnine, a clear distinctive violet color, characteristic of strychnine, will be obtained.</P></NOTE>
<P>(d) <I>Sulfate test.</I> No white precipitate is formed that is not dissolved by hydrochloric acid when several drops of a 1 N barium chloride solution are added to 10 mL of a solution of the alkaloid.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.100" NODE="27:1.0.1.1.17.5.289.10" TYPE="SECTION">
<HEAD>§ 21.100   <E T="7462">n</E>-Butyl alcohol.</HEAD>
<P>(a) <I>Acidity (as acetic acid).</I> 0.03 percent by weight maximum.
</P>
<P>(b) <I>Color.</I> Colorless.
</P>
<P>(c) <I>Dryness at 20 °C.</I> Miscible without turbidity with 10 volumes of 60° Bé1. gasoline.
</P>
<P>(d) <I>Odor.</I> Characteristic odor.
</P>
<P>(e) <I>Specific gravity at 20 °/20 °C.</I> 0.810 to 0.815.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.101" NODE="27:1.0.1.1.17.5.289.11" TYPE="SECTION">
<HEAD>§ 21.101   tert-Butyl alcohol.</HEAD>
<P>(a) <I>Acidity (as acetic acid).</I> 0.003 percent by weight maximum.
</P>
<P>(b) <I>Color.</I> Colorless.
</P>
<P>(c) <I>Distillation range.</I> When 100 mL of tertiary butyl alcohol are distilled, none should distill below 78 °C. and none above 85 °C. More than 95 percent should distill between 81 °−83 °C.
</P>
<P>(d) <I>Dryness at 20 °C.</I> Miscible without turbidity with 19 volumes of 60° Bé1. gasoline.
</P>
<P>(e) <I>Freezing point (first needle).</I> Above 20 °C.
</P>
<P>(f) <I>Identification test.</I> Place five drops of a solution containing approximately 0.1 percent tertiary butyl alcohol in ethyl alcohol in a test tube. Add 2 mL of Denige's reagent (dissolve 5 grams of red mercuric oxide in 20 mL of concentrated sulfuric acid; add this solution to 80 mL of distilled water, and filter when cool). Heat the mixture just to the boiling point and remove from the flame. A yellow precipitate forms within a few seconds.
</P>
<P>(g) <I>Nonvolatile matter.</I> Less than 0.005 percent by weight.
</P>
<P>(h) <I>Odor.</I> Characteristic odor.
</P>
<P>(i) <I>Residual odor after evaporation.</I> None.
</P>
<P>(j) <I>Specific gravity at 25 °/25 °C.</I> 0.780 to 0.786.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.102" NODE="27:1.0.1.1.17.5.289.12" TYPE="SECTION">
<HEAD>§ 21.102   Caustic soda, liquid.</HEAD>
<P>(a) The liquid caustic soda may consist of either 50 percent or 73 percent by weight sodium hydroxide in aqueous solution. The amount of caustic soda used shall be such that each 100 gallons of alcohol will contain not less than 8.76 pounds of sodium hyroxide, anhydrous basis.
</P>
<P>(b) <I>Color.</I> A 2 percent solution of the sodium hydroxide in water shall be water-white.
</P>
<P>(c) <I>Assay.</I> The sodium hydroxide content of the caustic soda solution shall be determined by the following procedure:
</P>
<EXTRACT>
<P>Accurately weigh 2 grams of liquid caustic soda into a 100 mL volumetric flask, dissolve, and dilute to the mark with distilled water at room temperature. Transfer a 25 mL aliquot of the solution to a titration flask, add 10 mL of 1 percent barium chloride solution, 0.2 mL of 1 percent phenolphthalein indicator, and 50 mL of distilled water. Titrate with 0.25 N hydrochloric acid to the disappearance of the pink color. Not less than 25 mL of the hydrochloric acid shall be required to neutralize the sample of diluted 50 percent caustic soda, and not less than 36.5 mL of the hydrochloric acid shall be required to neutralize the sample of diluted 73 percent caustic soda.
</P>
<P>One mL of 0.25 N hydrochloric acid equals 0.01 gram of sodium hydroxide (anhydrous).</P></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§§ 21.103-21.104" NODE="27:1.0.1.1.17.5.289.13" TYPE="SECTION">
<HEAD>§§ 21.103-21.104   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.105" NODE="27:1.0.1.1.17.5.289.14" TYPE="SECTION">
<HEAD>§ 21.105   Citronella oil, natural.</HEAD>
<P>(a) <I>Java type:</I>
</P>
<P>(1) <I>Alcohol content (as Geraniol).</I> Not less than 85 percent by weight.
</P>
<P>(2) <I>Aldehyde content (as Citronellal).</I> Not less than 30 percent by weight.
</P>
<P>(3) <I>Refractive index at 20 °C.</I> 1.4660 to 1.4745.
</P>
<P>(4) <I>Specific gravity at 25 °/25 °C.</I> 0.875 to 0.893.
</P>
<P>(5) <I>Odor.</I> Characteristic odor.
</P>
<P>(b) <I>Ceylon type:</I>
</P>
<P>(1) <I>Alcohol content (as Geraniol).</I> Not less than 55 percent by weight.
</P>
<P>(2) <I>Aldehyde content (as Citronellal).</I> Not less than 7 percent by weight.
</P>
<P>(3) <I>Refractive index at 20 °C.</I> 1.4790 to 1.4850.
</P>
<P>(4) <I>Specific gravity at 25 °/25 °C.</I> 0.891 to 0.904.
</P>
<P>(5) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.105-T1" NODE="27:1.0.1.1.17.5.289.15" TYPE="SECTION">
<HEAD>§ 21.105-T1   Cornmint oil (Mentha arvensis and Mentha canadensis).</HEAD>
<P>(a) <I>Specific gravity at 25 °C.</I> 0.895 to 0.905.
</P>
<P>(b) <I>Refractive index at 20 °C.</I> 1.4580 to 1.4590.
</P>
<P>(c) <I>Optical rotation at 20 °C.</I> −18° to −36°.
</P>
<P>(d) <I>Alcohol content (as menthol).</I> 65 percent minimum.
</P>
<P>(e) <I>Ketone content (as menthone).</I> 5 percent minimum.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.105-T2" NODE="27:1.0.1.1.17.5.289.16" TYPE="SECTION">
<HEAD>§ 21.105-T2   Cyclohexane.</HEAD>
<P>(a) <I>Specific gravity at 20 °C.</I> 0.75 to 0.80.
</P>
<P>(b) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.106" NODE="27:1.0.1.1.17.5.289.17" TYPE="SECTION">
<HEAD>§ 21.106   Diethyl phthalate.</HEAD>
<P>(a) <I>Refractive index at 25 °C.</I> 1.497 to 1.502.
</P>
<P>(b) <I>Color.</I> Colorless.
</P>
<P>(c) <I>Odor.</I> Practically odorless.
</P>
<P>(d) <I>Solubility.</I> Soluble in 20 parts of 60 percent alcohol.
</P>
<P>(e) <I>Specific gravity at 25 °/25 °C.</I> 1.115 to 1.118.
</P>
<P>(f) <I>Ester content (as diethyl phthalate).</I> Not less than 99 percent by weight.
</P>
<NOTE>
<HED>Note.</HED>
<P>The sample taken for ester determination should be approximately 0.8 gram. The number of mL of 0.5 N potassium hydroxide used in saponification multiplied by 0.05555 indicates the number of grams of ester in the sample taken for assay.</P></NOTE>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.106-T" NODE="27:1.0.1.1.17.5.289.18" TYPE="SECTION">
<HEAD>§ 21.106-T   Distilled lime oil (Citrus aurantifolia).</HEAD>
<P>(a) <I>Specific gravity at 25 °C.</I> 0.850 to 0.870.
</P>
<P>(b) <I>Refractive index at 20 °C.</I> 1.4740 to 1.4780.
</P>
<P>(c) <I>Optical rotation at 20 °C.</I> +30° to +50°.
</P>
<P>(d) <I>Aldehyde content (as citral).</I> 0.5 to 3.0 percent.
</P>
<P>(e) <I>Terpene content (as limonene).</I> 45 percent minimum.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.107" NODE="27:1.0.1.1.17.5.289.19" TYPE="SECTION">
<HEAD>§ 21.107   Ethyl acetate.</HEAD>
<P>(a) <I>85 percent ester:</I>
</P>
<P>(1) <I>Acidity (as acetic acid).</I> Not more than 0.015 percent by weight.
</P>
<P>(2) <I>Color.</I> Colorless.
</P>
<P>(3) <I>Odor.</I> Characteristic odor.
</P>
<P>(4) <I>Ester content.</I> Not less than 85 percent by weight.
</P>
<P>(5) <I>Specific gravity at 20 °/20 °C.</I> Not less than 0.882.
</P>
<P>(6) <I>Distillation range.</I> (For applicable ASTM method, see 1980 Annual Book of ASTM Standards, Part 29, page 70, Standard No. D 302-58 (1975); for incorporation by reference, see § 21.6(b).) When 100 mL of ethyl acetate are distilled by this method, none shall distill below 70 °C., not more than 10 mL shall distill below 72 °C., and none above 80 °C.
</P>
<P>(b) <I>100 percent ester:</I>
</P>
<P>(1) <I>Acidity (as acetic acid).</I> Not more than 0.010 percent by weight.
</P>
<P>(2) <I>Color.</I> Colorless.
</P>
<P>(3) <I>Odor.</I> Characteristic odor.
</P>
<P>(4) <I>Ester content.</I> Not less than 99 percent by weight.
</P>
<P>(5) <I>Specific gravity at 20 °/20 °C.</I> Not less than 0.899.
</P>
<P>(6) <I>Distillation range.</I> (For applicable ASTM method, see 1980 Annual Book of ASTM Standards, Part 29, page 433, Standard No. D 3127-77; for incorporation by reference, see § 21.6(b).) When 100 mL of ethyl acetate are distilled by this method, not more than 2 mL shall distill below 75 °C., and none above 80 °C. (760 mm).
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.108" NODE="27:1.0.1.1.17.5.289.20" TYPE="SECTION">
<HEAD>§ 21.108   Ethyl ether.</HEAD>
<P>(a) <I>Odor.</I> Characteristic odor.
</P>
<P>(b) <I>Specific gravity at 15.56 °/15.56 °C.</I> Not more than 0.728.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.108-T" NODE="27:1.0.1.1.17.5.289.21" TYPE="SECTION">
<HEAD>§ 21.108-T   Ethyl tertiary butyl ether.</HEAD>
<P>(a) <I>Purity.</I> ≥95.0 percent.
</P>
<P>(b) <I>Color.</I> Colorless to light yellow.
</P>
<P>(c) <I>Odor.</I> Terpene-like.
</P>
<P>(d) <I>Specific gravity at 20 °C.</I> 0.70 to 0.80.
</P>
<P>(e) <I>Boiling point ( °C).</I> 73.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.109" NODE="27:1.0.1.1.17.5.289.22" TYPE="SECTION">
<HEAD>§ 21.109   Gasoline.</HEAD>
<P>(a) <I>Distillation range.</I> When 100 mL of gasoline are distilled, none shall distill below 90 °F. Not more than 5 mL shall be collected below 140 °F., and not less than 50 mL shall distill below 230 °F.
</P>
<P>(b) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.110" NODE="27:1.0.1.1.17.5.289.23" TYPE="SECTION">
<HEAD>§ 21.110   Gasoline, unleaded.</HEAD>
<P>Conforms to specifications as established by the American Society for Testing and Materials (ASTM) in the 1980 Annual Book of ASTM Standards, Part 23, page 229, Standard No. D 439-79. Any of the “seasonal and geographical” volatility classes for unleaded gasoline are considered suitable as a denaturant. (For incorporation by reference, see § 21.6(b).)
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.111" NODE="27:1.0.1.1.17.5.289.24" TYPE="SECTION">
<HEAD>§ 21.111   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.112" NODE="27:1.0.1.1.17.5.289.25" TYPE="SECTION">
<HEAD>§ 21.112   Heptane.</HEAD>
<P>(a) <I>Distillation range.</I> No distillate should come over below 200 °F. and none above 211 °F.
</P>
<P>(b) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.112-T1" NODE="27:1.0.1.1.17.5.289.26" TYPE="SECTION">
<HEAD>§ 21.112-T1   Hexane (mixed isomers).</HEAD>
<P>(a) <I>General.</I> Minimum 55 percent <I>n</I>-hexane.
</P>
<P>(b) <I>Distillation range.</I> No distillate should come over below 150 °F and none above 160 °F.
</P>
<P>(c) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.112-T2" NODE="27:1.0.1.1.17.5.289.27" TYPE="SECTION">
<HEAD>§ 21.112-T2   <I>n</I>-Hexane.</HEAD>
<P>(a) <I>General.</I> Minimum 97 percent purity.
</P>
<P>(b) <I>Distillation range.</I> No distillate should come over below 150 °F and none above 160 °F.
</P>
<P>(c) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.112-T3" NODE="27:1.0.1.1.17.5.289.28" TYPE="SECTION">
<HEAD>§ 21.112-T3   High octane denaturant blend.</HEAD>
<P>(a) <I>API Gravity at 60 °F.</I> 40 to 65.
</P>
<P>(b) <I>Reid Vapor Pressure (PSI).</I> 6 to 15.
</P>
<P>(c) <I>Isopropyl alcohol.</I> 24 to 40 percent volume.
</P>
<P>(d) <I>Methyl alcohol.</I> 1.6 to 9.6 percent volume.
</P>
<P>(e) <I>Diisopropyl ether (DIPE).</I> 4 to 12 percent volume.
</P>
<P>(f) <I>tert-Butyl alcohol.</I> 4 to 12 percent volume.
</P>
<P>(g) <I>Iso-pentane.</I> 4 to 9 percent volume.
</P>
<P>(h) <I>Pentane.</I> 4 to 9 percent volume.
</P>
<P>(i) <I>Pentene.</I> 0 to 2.4 percent volume.
</P>
<P>(j) <I>Hexane.</I> 2 to 6 percent volume.
</P>
<P>(k) <I>Heptane.</I> 1 to 3 percent volume.
</P>
<P>(l) <I>Sulfur (ppm).</I> 0 to 120.
</P>
<P>(m) <I>Benzene (% vol.).</I> 0 to 1.1.
</P>
<P>(n) <I>Distillation ( °F):</I>
</P>
<P>(i) <I>10 percent.</I> 80 to 168.
</P>
<P>(ii) <I>50 percent.</I> 250.
</P>
<P>(iii) <I>End point distillation.</I> 437.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.113" NODE="27:1.0.1.1.17.5.289.29" TYPE="SECTION">
<HEAD>§ 21.113   Isopropyl alcohol.</HEAD>
<P><I>Specific gravity at 15.56 °/15.56 °C.</I> 0.810 maximum.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.114" NODE="27:1.0.1.1.17.5.289.30" TYPE="SECTION">
<HEAD>§ 21.114   Kerosene.</HEAD>
<P>(a) <I>Distillation range.</I> (For applicable ASTM method, see 1980 Annual Book of ASTM Standards, Part 25, page 395, Standard No. D 3699-78 for burner fuel; see Part 23, page 849, Standard Nos. D 1655-80a for aviation turbine fuels and D 86-78 for distillation of petroleum products; for incorporation by reference, see § 21.6(b).) No distillate should come over below 340 °F. and none above 570 °F.
</P>
<P>(b) <I>Flash point.</I> 115 °F. minimum.
</P>
<P>(c) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.115" NODE="27:1.0.1.1.17.5.289.31" TYPE="SECTION">
<HEAD>§ 21.115   Kerosene (deodorized).</HEAD>
<P>(a) <I>Distillation range.</I> No distillate should come over below 340 °F. and none above 570 °F.
</P>
<P>(b) <I>Flash point.</I> 155 °F. minimum.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.115-T1" NODE="27:1.0.1.1.17.5.289.32" TYPE="SECTION">
<HEAD>§ 21.115-T1   Lemon oil (Citrus limonium).</HEAD>
<P>(a) <I>Specific gravity at 25 °C.</I> 0.850 to 0.860.
</P>
<P>(b) <I>Refractive index at 20 °C.</I> 1.4570 to 1.4580.
</P>
<P>(c) <I>Optical rotation at 20 °C.</I> +55° to +65°.
</P>
<P>(d) <I>Terpene content (as limonene).</I> 65 percent minimum.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.115-T2" NODE="27:1.0.1.1.17.5.289.33" TYPE="SECTION">
<HEAD>§ 21.115-T2   L(-)-Carvone.</HEAD>
<P>(a) <I>Specific gravity at 25 °C.</I> 0.955 to 0.965.
</P>
<P>(b) <I>Refractive index at 20 °C.</I> 1.495 to 1.500.
</P>
<P>(c) <I>Angular rotation.</I> -57° to -62°.
</P>
<P>(d) <I>Assay.</I> Not less than 97.0 percent.
</P>
<CITA TYPE="N">[T.D, TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.116" NODE="27:1.0.1.1.17.5.289.34" TYPE="SECTION">
<HEAD>§ 21.116   Methyl alcohol.</HEAD>
<P><I>Specific gravity at 15.56 °/15.56 °C.</I> 0.810 maximum.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.117" NODE="27:1.0.1.1.17.5.289.35" TYPE="SECTION">
<HEAD>§ 21.117   Methyl isobutyl ketone.</HEAD>
<P>(a) <I>Acidity (as acetic acid).</I> 0.02 percent by weight, maximum.
</P>
<P>(b) <I>Color.</I> Colorless.
</P>
<P>(c) <I>Distillation range.</I> (For applicable ASTM method, see 1980 Annual Book of ASTM Standards, Part 29, page 147, Standard No. D 1153-77; for incorporation by reference, see § 21.6(b).) No distillate should come over below 111 °C. and none above 117 °C.
</P>
<P>(d) <I>Odor.</I> Characteristic odor.
</P>
<P>(e) <I>Specific gravity at 20 °/20 °C.</I> 0.799 to 0.804.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.118" NODE="27:1.0.1.1.17.5.289.36" TYPE="SECTION">
<HEAD>§ 21.118   Methyl <E T="7462">n</E>-butyl ketone.</HEAD>
<P>(a) <I>Acidity (as acetic acid).</I> 0.02 percent by weight, maximum.
</P>
<P>(b) <I>Color.</I> Colorless.
</P>
<P>(c) <I>Odor.</I> Characteristic odor.
</P>
<P>(d) <I>Refractive index at 20 °C.</I> 1.396 to 1.404.
</P>
<P>(e) <I>Specific gravity at 20 °/20 °C.</I> 0.800 to 0.835.
</P>
<P>(f) <I>Distillation range.</I> No distillate should come over below 123 °C. and none above 129 °C.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.118-T1" NODE="27:1.0.1.1.17.5.289.37" TYPE="SECTION">
<HEAD>§ 21.118-T1   Methyl tertiary butyl ether.</HEAD>
<P>(a) <I>Purity.</I> ≥ 97.0 percent.
</P>
<P>(b) <I>Color.</I> Clear, colorless.
</P>
<P>(c) <I>Odor.</I> Turpentine-like.
</P>
<P>(d) <I>Specific Gravity at 20 °C.</I> 0.70 to 0.80.
</P>
<P>(e) <I>Boiling Point ( °C).</I> 55.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.118-T2" NODE="27:1.0.1.1.17.5.289.38" TYPE="SECTION">
<HEAD>§ 21.118-T2   Naphtha.</HEAD>
<P>(a) <I>API Gravity at 60 °F.</I> 30 to 85.
</P>
<P>(b) <I>Reid Vapor Pressure (PSI).</I> 8 maximum.
</P>
<P>(c) <I>Specific Gravity at 20 °C.</I> 0.70 to 0.80.
</P>
<P>(d) <I>Distillation ( °F):</I>
</P>
<P>(i) <I>I.B.P.</I> 85 maximum.
</P>
<P>(ii) <I>10 percent.</I> 130 maximum.
</P>
<P>(iii) <I>50 percent.</I> 250 maximum.
</P>
<P>(iv) <I>90 percent.</I> 340 maximum.
</P>
<P>(e) <I>End point distillation.</I> 380 maximum.
</P>
<P>(f) <I>Copper corrosion.</I> One (1).
</P>
<P>(g) <I>Sabolt color.</I> 28 minimum.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.118-T3" NODE="27:1.0.1.1.17.5.289.39" TYPE="SECTION">
<HEAD>§ 21.118-T3   Natural gasoline.</HEAD>
<P>Natural gasoline is a mixture of various alkanes including butane, pentane, and hexane hydrocarbons extracted from natural gas. It has a distillation range wherein no more than 10 percent by volume of the sample may distill below 97 °F; at least 50 percent by volume shall distill at or below 156 °F; and at least 90 percent by volume shall distill at or below 209 °F.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.119" NODE="27:1.0.1.1.17.5.289.40" TYPE="SECTION">
<HEAD>§ 21.119   Nicotine solution.</HEAD>
<P>(a) <I>Composition.</I> Five gallons of an aqueous solution containing 40 percent nicotine; 3.6 avoirdupois ounces of methylene blue, U.S.P.; water sufficient to make 100 gallons.
</P>
<P>(b) <I>Color.</I> One mL of the nicotine solution (previously agitated in the presence of air) is measured into 100 mL of water and thoroughly mixed. Fifty mL of this colored solution is compared, using Nessler tubes, with 50 mL of a standard color solution containing 5 grams of CuSO<E T="52">4</E>·5H<E T="52">2</E> O, C.P. in 100 mL of water. The color intensity of the solution tested should be equal to or greater than that of the standard solution.
</P>
<P>(c) <I>Nicotine content.</I> The above solution must contain not less than 1.88 percent of nicotine determined by the following process: 20 mL of the solution are measured into a 500 mL Kjeldahl flask provided with a suitable bulb tube, 50 mL of 0.1 N NaOH added and the mixture distilled in a current of steam until the distillate is no longer alkaline (about 500 mL). The distillate is then titrated with 0.1 N H<E T="52">2</E>SO<E T="52">4</E> using rosolic acid or methyl red as indicator. Not less than 23.2 mL should be required for neutralization.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.120" NODE="27:1.0.1.1.17.5.289.41" TYPE="SECTION">
<HEAD>§ 21.120   Nitropropane, mixed isomers of.</HEAD>
<P>(a) <I>Nitropropane content.</I> A minimum of 94 percent by weight.
</P>
<P>(b) <I>Total nitroparaffin content.</I> A minimum of 99 percent by weight.
</P>
<P>(c) <I>Distillation range.</I> 119° to 113 °C.
</P>
<P>(d) <I>Specific gravity at 20°/20 °C.</I> 0.992 to 1.003.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.121" NODE="27:1.0.1.1.17.5.289.42" TYPE="SECTION">
<HEAD>§ 21.121   Peppermint oil, Terpeneless.</HEAD>
<P>(a) <I>Specific gravity at 25 °C.</I> 0.890 to 0.910.
</P>
<P>(b) <I>Refractive index at 20 °C.</I> 1.455 to 1.465.
</P>
<P>(c) <I>Esters as menthyl acetate.</I> 5 percent minimum.
</P>
<P>(d) <I>Menthol (free and esters).</I> 5 percent minimum.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.122" NODE="27:1.0.1.1.17.5.289.43" TYPE="SECTION">
<HEAD>§ 21.122   Potassium Hydroxide.</HEAD>
<P>(a) <I>Color.</I> White or yellow.
</P>
<P>(b) <I>Specific gravity at 20 °C.</I> 1.95 to 2.10.
</P>
<P>(c) <I>Melting point.</I> 360 °C.
</P>
<P>(d) <I>Boiling point.</I> 1320 °C.
</P>
<P>(e) <I>pH (0.1M solution).</I> 13.5.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.123" NODE="27:1.0.1.1.17.5.289.44" TYPE="SECTION">
<HEAD>§ 21.123   Pyronate.</HEAD>
<P>Pyronate is a product of the destructive distillation of hardwood meeting the following requirements:
</P>
<P>(a) <I>Acidity (as acetic acid).</I> Not more than 0.1 percent by weight, determined as follows:
</P>
<P>Add 5.0 mL sample to 100 mL distilled water in an Erlenmeyer flask and titrate with 0.1 N NaOH to a bromthymol blue endpoint.
</P>
<P>(b) <I>Color.</I> The color shall be no darker than the color produced by 2.0 grams of potassium dichromate in 1 liter of water. The comparision shall be made in 4-ounce oil sample bottles viewed crosswise.
</P>
<P>(c) <I>Distillation range.</I> When 100 mL are distilled not more than 5 mL shall distill below 70 °C., not less than 50 mL below 160 °C., and not less than 90 mL below 205 °C.
</P>
<NOTE>
<HED>Note.</HED>
<P>Any material submitted as pyronate must agree in color, odor, taste and denaturing value with a standard sample furnished by the Alcohol and Tobacco Tax and Trade Bureau to chemists authorized to examine samples of denaturants.</P></NOTE>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.124" NODE="27:1.0.1.1.17.5.289.45" TYPE="SECTION">
<HEAD>§ 21.124   Quassin.</HEAD>
<P>(a) Quassin is the bitter principle of quassia wood (occurring as a mixture of two isomeric forms). It shall be a good commercial grade of purified amorphous quassin, standardized as to bitterness.
</P>
<P>(b) <I>Bitterness.</I> An aqueous solution of quassin shall be distinctly bitter at a 1 to 250,000 dilution. To test: Dissolve 0.1 gram of quassin in 100 mL of 95 percent alcohol, then dilute 4 mL of the solution to 1,000 mL with distilled water, mix well and taste.
</P>
<P>(c) <I>Identification test.</I> Dissolve about 0.5 gram of quassin in 10 mL of 95 percent alcohol and filter. To 5 mL of the filtrate, add 5 mL of concentrated hydrochloric acid and 1 mg of phloroglucinol and mix well. A red color develops.
</P>
<P>(d) <I>Optical assay.</I> When 1 gram of quassin (in solution in a small amount of 95 percent alcohol) is dissolved in 10,000 mL of water, the absorbance of the solution in a 1 cm cell at a wavelength of 258 millimicrons shall not be less than 0.400.
</P>
<P>(e) <I>Solubility.</I> When 0.5 gram of quassin is added to 25 mL of 190 proof alcohol, it shall dissolve completely.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.124-T" NODE="27:1.0.1.1.17.5.289.46" TYPE="SECTION">
<HEAD>§ 21.124-T   Raffinate.</HEAD>
<P>(a) <I>API Gravity at 60 °F.</I> 30 to 85.
</P>
<P>(b) <I>Reid Vapor Pressure (PSI).</I> 5 to 11.
</P>
<P>(c) <I>Octane (R+M/2).</I> 66 to 70.
</P>
<P>(d) <I>Distillation ( °F):</I>
</P>
<P>(i) <I>10 percent.</I> 120 to 150.
</P>
<P>(ii) <I>50 percent.</I> 144 to 180.
</P>
<P>(iii) <I>90 percent.</I> 168 to 200.
</P>
<P>(iv) <I>End point distillation.</I> 216 to 285.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.125" NODE="27:1.0.1.1.17.5.289.47" TYPE="SECTION">
<HEAD>§ 21.125   Rubber hydrocarbon solvent.</HEAD>
<P>(a) Rubber hydrocarbon solvent is a petroleum derivative.
</P>
<P>(b) <I>Distillation range.</I> When 10 percent of the sample has been distilled into a graduated receiver, the thermometer shall not read more than 170 °F. nor less than 90 °F. When 90 percent has been recovered in the receiver the thermometer shall not read more than 250 °F.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001; T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.126" NODE="27:1.0.1.1.17.5.289.48" TYPE="SECTION">
<HEAD>§ 21.126   Safrole.</HEAD>
<P>(a) <I>Congealing point.</I> 10.0° to 11.2 °C.
</P>
<P>(b) <I>Refractive index at 20 °C.</I> 1.5363 to 1.5385.
</P>
<P>(c) <I>Specific gravity at 15 °/15 °C.</I> 1.100 to 1.107.
</P>
<P>(d) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.127" NODE="27:1.0.1.1.17.5.289.49" TYPE="SECTION">
<HEAD>§ 21.127   Shellac (refined).</HEAD>
<P>(a) <I>Arsenic content.</I> Not more than 1.4 parts per million as determined by the Gutzeit Method (AOAC method 25.020; for incorporation by reference, see § 21.6(c)).
</P>
<P>(b) <I>Color.</I> White or orange.
</P>
<P>(c) <I>Rosin content.</I> None when tested by the following method: Add 20 mL of absolute alcohol or glacial acetic acid (m. p. 13° to 15 °C.) to 2 grams of the shellac and thoroughly dissolve. Add 100 mL of petroleum ether and mix thoroughly. Add approximately 2 liters of water and separate a portion of the ether layer (at least 50 mL) and filter if cloudy. Evaporate the petroleum ether and test as follows: Solution A—5 mL of phenol dissolved in 10 mL of carbon tetrachloride. Solution B—1 mL of bromine dissolved in 4 mL of carbon tetrachloride. To the residue obtained above add 2 mL of Solution A and transfer the mixture to a porcelain spot plate, filling one cavity. Immediately fill an adjacent cavity with solution B. Cover the plate with a watch glass and observe any color formation in Solution A. A decided purple or deep indigo blue color is an indication of the presence of rosin.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.128" NODE="27:1.0.1.1.17.5.289.50" TYPE="SECTION">
<HEAD>§ 21.128   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 21.129" NODE="27:1.0.1.1.17.5.289.51" TYPE="SECTION">
<HEAD>§ 21.129   Spearmint oil, terpeneless.</HEAD>
<P>(a) <I>Carvone content.</I> Not less than 85 percent by weight.
</P>
<P>(b) <I>Refractive index at 20 °C.</I> 1.4930 to 1.4980.
</P>
<P>(c) <I>Specific gravity at 25 °/25 °C.</I> 0.949 to 0.956.
</P>
<P>(d) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.130" NODE="27:1.0.1.1.17.5.289.52" TYPE="SECTION">
<HEAD>§ 21.130   Spike lavender oil, natural.</HEAD>
<P>(a) <I>Alcohol content (as borneol).</I> Not less than 30 percent by weight.
</P>
<P>(b) <I>Esters (as bornyl acetate).</I> Not less than 1.5 percent by weight.
</P>
<P>(c) <I>Refractive index at 20 °C.</I> 1.4630 to 1.4680.
</P>
<P>(d) <I>Specific gravity at 25 °/25 °C.</I> 0.893 to 0.909.
</P>
<P>(e) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.130-T" NODE="27:1.0.1.1.17.5.289.53" TYPE="SECTION">
<HEAD>§ 21.130-T   Straight run gasoline.</HEAD>
<P>(a) <I>General.</I> Straight run gasoline is a mixture consisting predominantly (greater than 60 percent by volume) of C<E T="52">4,</E> C<E T="52">5</E>, C<E T="52">6</E>, C<E T="52">7</E> and/or C<E T="52">8</E> hydrocarbons, and is either:
</P>
<P>(1) A petroleum distillate coming straight from an atmospheric distillation unit without being cracked or reformed, or
</P>
<P>(2) A condensate coming directly from an oil/gas recovery operation.
</P>
<P>(b) <I>API gravity.</I> 72° minimum, 85° maximum.
</P>
<P>(c) <I>Reid vapor pressure (PSI).</I> 15 maximum.
</P>
<P>(d) <I>Sulfur.</I> 120 ppm maximum.
</P>
<P>(e) <I>Benzene.</I> 1.1 percent by volume maximum.
</P>
<P>(f) <I>Distillation ( °F):</I>
</P>
<P>(1) <I>10 percent.</I> 97 minimum, 158 maximum.
</P>
<P>(2) <I>50 percent.</I> 250 maximum.
</P>
<P>(3) <I>Final boiling point.</I> 437 maximum.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59462, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.131" NODE="27:1.0.1.1.17.5.289.54" TYPE="SECTION">
<HEAD>§ 21.131   Sucrose octaacetate.</HEAD>
<P>(a) Sucrose octaacetate is an organic acetylation product occurring as a white or cream-colored powder having an intensely bitter taste.
</P>
<P>(b) <I>Free acid (as acetic acid).</I> Maximum percentage 0.15 by weight when determined by the following procedure: Dissolve 1.0 gram of sample in 50 mL of neutralized ethyl alcohol (or S.D.A. No. 3-A, No. 3-C, or No. 30) and titrate with 0.1 N sodium hydroxide using phenolphthalein indicator.
</P>
<EXTRACT>
<FP-1>Percent acid as acetic acid = mL NaOH used × 0.6 / weight of sample</FP-1></EXTRACT>
<P>(c) <I>Insoluble matter.</I> 0.30 percent by weight maximum.
</P>
<P>(d) <I>Melting point.</I> Not less than 78.0 °C.
</P>
<P>(e) <I>Purity.</I> Sucrose octaacetate 98 percent minimum by weight when determined by the following procedure: Transfer a weighed 1.50 grams sample to a 500 mL Erlenmeyer flask containing 100 mL of neutral ethyl alcohol (or S.D.A. No. 3-A, No. 3-C, or No. 30) and exactly 50.0 mL of 0.5 N sodium hydroxide. Reflux for 1 hour on a steam bath, cool and titrate the excess sodium hydroxide with 0.5 N sulfuric acid using phenolphthalein indicator.
</P>
<EXTRACT>
<FP-1>Percent sucrose octaacetate = (mL NaOH − mL H<E T="52">2</E>SO<E T="52">4</E>) × 4.2412 / weight of sample</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 21.132" NODE="27:1.0.1.1.17.5.289.55" TYPE="SECTION">
<HEAD>§ 21.132   Toluene.</HEAD>
<P>(a) <I>Specific Gravity at 15.56°/15.56 °C.</I> 0.80 to 0.90.
</P>
<P>(b) <I>Boiling point ( °C).</I> 110.6.
</P>
<P>(c) <I>Distillation range ( °C).</I> Not more than 1 percent by volume should distill below 109, and not less than 99 percent by volume below 112.
</P>
<P>(d) <I>Odor.</I> Characteristic odor.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59463, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 21.133" NODE="27:1.0.1.1.17.5.289.56" TYPE="SECTION">
<HEAD>§ 21.133   Vinegar.</HEAD>
<P>(a) <I>Vinegar, 90-grain:</I>
</P>
<P><I>Acidity (as acetic acid).</I> 9.0 percent by weight, minimum.
</P>
<P>(b) <I>Vinegar, 60-grain:</I>
</P>
<P><I>Acidity (as acetic acid).</I> 6.0 percent by weight, minimum.
</P>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.17.6" TYPE="SUBPART">
<HEAD>Subpart F—Uses of Specially Denatured Alcohol and Specially Denatured Rum</HEAD>


<DIV8 N="§ 21.141" NODE="27:1.0.1.1.17.6.289.1" TYPE="SECTION">
<HEAD>§ 21.141   List of products and processes using specially denatured alcohol and rum, and formulas authorized therefor.</HEAD>
<P>This section lists, alphabetically by product or process, formulas of specially denatured alcohol authorized for use in those products or processes, and lists the code numbers assigned thereto. Specially denatured rum, as well as specially denatured alcohol, may be used in tobacco sprays and flavors, Code No. 460, under Formula No. 4.
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Uses of Specially Denatured Alcohol 
<sup>1</sup>
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Product or process
</TH><TH class="gpotbl_colhed" scope="col">Code No.
</TH><TH class="gpotbl_colhed" scope="col">Formulas authorized
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Acetaldehyde</TD><TD align="right" class="gpotbl_cell">551</TD><TD align="left" class="gpotbl_cell">1, 2-B, 29.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Acetic acid</TD><TD align="right" class="gpotbl_cell">512</TD><TD align="left" class="gpotbl_cell">29, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Adhesives and binders</TD><TD align="right" class="gpotbl_cell">036</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Aldehydes, miscellaneous</TD><TD align="right" class="gpotbl_cell">552</TD><TD align="left" class="gpotbl_cell">1, 2-B, 29.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Alkaloids (processing)</TD><TD align="right" class="gpotbl_cell">344</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Animal feed supplements</TD><TD align="right" class="gpotbl_cell">910</TD><TD align="left" class="gpotbl_cell">35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Antibiotics (processing)</TD><TD align="right" class="gpotbl_cell">343</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Antifreeze, proprietary</TD><TD align="right" class="gpotbl_cell">760</TD><TD align="left" class="gpotbl_cell">1.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Antiseptic solutions, U.S.P. or N.F</TD><TD align="right" class="gpotbl_cell">244</TD><TD align="left" class="gpotbl_cell">23-A, 37, 38-B, 38-F.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Bath preparations</TD><TD align="right" class="gpotbl_cell">142</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30, 36, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Bay rum</TD><TD align="right" class="gpotbl_cell">112</TD><TD align="left" class="gpotbl_cell">23-A, 37, 38-B, 39-B, 39-D, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Biocides, miscellaneous</TD><TD align="right" class="gpotbl_cell">410</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 23-H, 30, 37, 38-B, 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Blood and blood products (processing)</TD><TD align="right" class="gpotbl_cell">345</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 13-A, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Brake fluids</TD><TD align="right" class="gpotbl_cell">720</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Candy glazes</TD><TD align="right" class="gpotbl_cell">015</TD><TD align="left" class="gpotbl_cell">13-A, 23-A, 35-A, 45.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cellulose coatings</TD><TD align="right" class="gpotbl_cell">011</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cellulose compounds (dehydration)</TD><TD align="right" class="gpotbl_cell">311</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cellulose intermediates</TD><TD align="right" class="gpotbl_cell">034</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 13-A, 19, 23-A, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Chemicals (miscellaneous)</TD><TD align="right" class="gpotbl_cell">579</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 29, 30, 32, 36.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cleaning solutions</TD><TD align="right" class="gpotbl_cell">450</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 23-H, 30, 36, 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Coatings, miscellaneous</TD><TD align="right" class="gpotbl_cell">016</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Collodions, industrial</TD><TD align="right" class="gpotbl_cell">034</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 13-A, 19, 23-A, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Collodion, U.S.P.</TD><TD align="right" class="gpotbl_cell">241</TD><TD align="left" class="gpotbl_cell">13-A, 19, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Colognes</TD><TD align="right" class="gpotbl_cell">122</TD><TD align="left" class="gpotbl_cell">38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Crude drugs (processing)</TD><TD align="right" class="gpotbl_cell">341</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cutting oils</TD><TD align="right" class="gpotbl_cell">730</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Dehydration products, miscellaneous</TD><TD align="right" class="gpotbl_cell">315</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Dentifrices</TD><TD align="right" class="gpotbl_cell">131</TD><TD align="left" class="gpotbl_cell">31-A, 37, 38-B, 38-D.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Deodorants (body)</TD><TD align="right" class="gpotbl_cell">114</TD><TD align="left" class="gpotbl_cell">23-A, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Detergents, household</TD><TD align="right" class="gpotbl_cell">450</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 23-H, 30, 36, 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Detergents, industrial</TD><TD align="right" class="gpotbl_cell">440</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Detonators</TD><TD align="right" class="gpotbl_cell">574</TD><TD align="left" class="gpotbl_cell">1.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Disinfectants</TD><TD align="right" class="gpotbl_cell">410</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 23-H, 30, 37, 38-B, 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Drugs and medicinal chemicals</TD><TD align="right" class="gpotbl_cell">575</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 29, 30, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Drugs, miscellaneous (processing)</TD><TD align="right" class="gpotbl_cell">349</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 35-A, 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Duplicating fluids</TD><TD align="right" class="gpotbl_cell">485</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Dyes and intermediates</TD><TD align="right" class="gpotbl_cell">540</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 29, 36.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Dyes and intermediates (processing)</TD><TD align="right" class="gpotbl_cell">351</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Dye solutions, miscellaneous</TD><TD align="right" class="gpotbl_cell">482</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Embalming fluids, etc</TD><TD align="right" class="gpotbl_cell">420</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Esters, ethyl (miscellaneous)</TD><TD align="right" class="gpotbl_cell">523</TD><TD align="left" class="gpotbl_cell">1, 2-B, 13-A, 29, 32, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ether, ethyl</TD><TD align="right" class="gpotbl_cell">561</TD><TD align="left" class="gpotbl_cell">1, 2-B, 13-A, 29, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethers, miscellaneous</TD><TD align="right" class="gpotbl_cell">562</TD><TD align="left" class="gpotbl_cell">1, 2-B, 13-A, 29, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethyl acetate</TD><TD align="right" class="gpotbl_cell">521</TD><TD align="left" class="gpotbl_cell">1, 2-B, 29, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethylamines</TD><TD align="right" class="gpotbl_cell">530</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 29, 36.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethyl chloride</TD><TD align="right" class="gpotbl_cell">522</TD><TD align="left" class="gpotbl_cell">1, 2-B, 29, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethylene dibromide</TD><TD align="right" class="gpotbl_cell">571</TD><TD align="left" class="gpotbl_cell">1, 2-B, 29, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethylene gas</TD><TD align="right" class="gpotbl_cell">572</TD><TD align="left" class="gpotbl_cell">1, 2-B, 29, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Explosives</TD><TD align="right" class="gpotbl_cell">033</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">External pharmaceuticals, not U.S.P. or N.F</TD><TD align="right" class="gpotbl_cell">210</TD><TD align="left" class="gpotbl_cell">23-A, 23-H, 36, 37, 38-B, 38-F, 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">External pharmaceuticals, miscellaneous, U.S.P. or N.F</TD><TD align="right" class="gpotbl_cell">249</TD><TD align="left" class="gpotbl_cell">23-A, 25, 25-A, 38-B, 40-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fluid uses, miscellaneous</TD><TD align="right" class="gpotbl_cell">750</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Food products, miscellaneous (processing)</TD><TD align="right" class="gpotbl_cell">332</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fuel uses, miscellaneous</TD><TD align="right" class="gpotbl_cell">630</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 28-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fuels, airplane and supplementary</TD><TD align="right" class="gpotbl_cell">612</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 28-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fuels, automobile and supplementary</TD><TD align="right" class="gpotbl_cell">611</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 28-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fuels, proprietary heating</TD><TD align="right" class="gpotbl_cell">620</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 28-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fuels, rocket and jet</TD><TD align="right" class="gpotbl_cell">613</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 28-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fungicides</TD><TD align="right" class="gpotbl_cell">410</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 23-H, 30, 37, 38-B, 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Glandular products (processing)</TD><TD align="right" class="gpotbl_cell">342</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Hair and scalp preparations</TD><TD align="right" class="gpotbl_cell">111</TD><TD align="left" class="gpotbl_cell"> 23-A, 23-H, 37, 38-B, 39-B, 39-C, 39-D, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Hormones (processing)</TD><TD align="right" class="gpotbl_cell">342</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Incense</TD><TD align="right" class="gpotbl_cell">470</TD><TD align="left" class="gpotbl_cell">3-A, 3-C, 37, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Inks</TD><TD align="right" class="gpotbl_cell">052</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A, 40-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Insecticides</TD><TD align="right" class="gpotbl_cell">410</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 23-H, 30, 37, 38-B, 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Iodine solutions (including U.S.P. and N.F. tinctures)</TD><TD align="right" class="gpotbl_cell">230</TD><TD align="left" class="gpotbl_cell">25, 25-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Laboratory reagents (for sale)</TD><TD align="right" class="gpotbl_cell">811</TD><TD align="left" class="gpotbl_cell">3-A, 3-C, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Laboratory uses, general (own use only)</TD><TD align="right" class="gpotbl_cell">810</TD><TD align="left" class="gpotbl_cell">3-A, 3-C, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Lacquer thinners</TD><TD align="right" class="gpotbl_cell">042</TD><TD align="left" class="gpotbl_cell">1, 23-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Liniments, U.S.P. or N.F</TD><TD align="right" class="gpotbl_cell">243</TD><TD align="left" class="gpotbl_cell">38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Lotions and creams (body, face, and hand)</TD><TD align="right" class="gpotbl_cell">113</TD><TD align="left" class="gpotbl_cell">23-A, 23-H, 31-A, 37, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Medicinal chemicals (processing)</TD><TD align="right" class="gpotbl_cell">344</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Miscellaneous chemicals (processing)</TD><TD align="right" class="gpotbl_cell">358</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Miscellaneous products (processing)</TD><TD align="right" class="gpotbl_cell">359</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Mouth washes</TD><TD align="right" class="gpotbl_cell">132</TD><TD align="left" class="gpotbl_cell">37, 38-B, 38-D, 38-F.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Organo-silicone products</TD><TD align="right" class="gpotbl_cell">576</TD><TD align="left" class="gpotbl_cell">2-B, 3-A, 3-C, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Pectin (processing)</TD><TD align="right" class="gpotbl_cell">331</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Perfume materials (processing)</TD><TD align="right" class="gpotbl_cell">352</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Perfumes and perfume tinctures</TD><TD align="right" class="gpotbl_cell">121</TD><TD align="left" class="gpotbl_cell">38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Petroleum products</TD><TD align="right" class="gpotbl_cell">320</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Photoengraving dyes and solutions</TD><TD align="right" class="gpotbl_cell">481</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 13-A, 30, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Photographic chemicals (processing)</TD><TD align="right" class="gpotbl_cell">353</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Photographic film and emulsions</TD><TD align="right" class="gpotbl_cell">031</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 19, 30, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Pill and tablet manufacture</TD><TD align="right" class="gpotbl_cell">349</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 35-A, 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Plastics, cellulose</TD><TD align="right" class="gpotbl_cell">021</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Plastics, non-cellulose (including resins)</TD><TD align="right" class="gpotbl_cell">022</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Polishes</TD><TD align="right" class="gpotbl_cell">051</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Preserving solutions</TD><TD align="right" class="gpotbl_cell">430</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 13-A, 23-A, 30, 32, 37, 38-B, 44.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Product development and pilot plant (own use only)</TD><TD align="right" class="gpotbl_cell">812</TD><TD align="left" class="gpotbl_cell">All formulas.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Proprietary solvents</TD><TD align="right" class="gpotbl_cell">041</TD><TD align="left" class="gpotbl_cell">1, 3-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Refrigerating uses</TD><TD align="right" class="gpotbl_cell">740</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Resin coatings, natural</TD><TD align="right" class="gpotbl_cell">014</TD><TD align="left" class="gpotbl_cell">1, 23-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Resin coatings, synthetic</TD><TD align="right" class="gpotbl_cell">012</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Resins, synthetic</TD><TD align="right" class="gpotbl_cell">590</TD><TD align="left" class="gpotbl_cell">3-A, 3-C, 29, 30, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Room deodorants</TD><TD align="right" class="gpotbl_cell">470</TD><TD align="left" class="gpotbl_cell">3-A, 3-C, 37, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Rosin (processing)</TD><TD align="right" class="gpotbl_cell">354</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Rotogravure dyes and solutions</TD><TD align="right" class="gpotbl_cell">481</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 13-A, 30, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Rubber (latex) (processing)</TD><TD align="right" class="gpotbl_cell">355</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Rubber, synthetic</TD><TD align="right" class="gpotbl_cell">580</TD><TD align="left" class="gpotbl_cell">29, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Rubbing alcohol</TD><TD align="right" class="gpotbl_cell">220</TD><TD align="left" class="gpotbl_cell">23-H.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Scientific instruments</TD><TD align="right" class="gpotbl_cell">710</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Shampoos</TD><TD align="right" class="gpotbl_cell">141</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 31-A, 36, 38-B, 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Shellac coatings</TD><TD align="right" class="gpotbl_cell">013</TD><TD align="left" class="gpotbl_cell">1, 23-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Soaps, industrial</TD><TD align="right" class="gpotbl_cell">440</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Soaps, toilet</TD><TD align="right" class="gpotbl_cell">142</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30, 36, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sodium ethylate, anhydrous (restricted)</TD><TD align="right" class="gpotbl_cell">524</TD><TD align="left" class="gpotbl_cell">2-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sodium hydrosulfite (dehydration)</TD><TD align="right" class="gpotbl_cell">312</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Soldering flux</TD><TD align="right" class="gpotbl_cell">035</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Solutions, miscellaneous</TD><TD align="right" class="gpotbl_cell">485</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Solvents and thinners (other than proprietary solvents or special industrial solvents)</TD><TD align="right" class="gpotbl_cell">042</TD><TD align="left" class="gpotbl_cell">1, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Solvents, special (restricted sale)</TD><TD align="right" class="gpotbl_cell">043</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Stains (wood)</TD><TD align="right" class="gpotbl_cell">053</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 23-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sterilizing solutions</TD><TD align="right" class="gpotbl_cell">430</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C, 13-A, 23-A, 30, 32, 37, 38-B, 44.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Theater sprays</TD><TD align="right" class="gpotbl_cell">470</TD><TD align="left" class="gpotbl_cell">3-A, 3-C, 37, 38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Tobacco sprays and flavors</TD><TD align="right" class="gpotbl_cell">460</TD><TD align="left" class="gpotbl_cell">4.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Toilet waters</TD><TD align="right" class="gpotbl_cell">122</TD><TD align="left" class="gpotbl_cell">38-B, 39-B, 39-C, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Transparent sheetings</TD><TD align="right" class="gpotbl_cell">032</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Unclassified uses 
<sup>2</sup></TD><TD align="right" class="gpotbl_cell">900</TD><TD align="left" class="gpotbl_cell">1, 3-A, 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Vaccine (processing)</TD><TD align="right" class="gpotbl_cell">343</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Vinegar</TD><TD align="right" class="gpotbl_cell">511</TD><TD align="left" class="gpotbl_cell">18, 29, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Vitamins (processing)</TD><TD align="right" class="gpotbl_cell">342</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Xanthates</TD><TD align="right" class="gpotbl_cell">573</TD><TD align="left" class="gpotbl_cell">1, 2-B, 29.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Yeast (processing)</TD><TD align="right" class="gpotbl_cell">342</TD><TD align="left" class="gpotbl_cell">1, 2-B, 3-A, 3-C, 13-A, 23-A, 30, 32, 35-A.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">
<sup>1</sup> Other products or processes may be authorized under § 21.31(c).
</P><P class="gpotbl_note">
<sup>2</sup> Persons desiring other formulas for this use should indicate the fact in the space provided for this purpose on TTB Form 5150.19.</P></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. ATF-442, 66 FR 11854, Mar. 1, 2001; T.D. TTB-140, 81 FR 59463, Aug. 30, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.17.7" TYPE="SUBPART">
<HEAD>Subpart G—Denaturants Authorized for Denatured Spirits</HEAD>


<DIV8 N="§ 21.151" NODE="27:1.0.1.1.17.7.289.1" TYPE="SECTION">
<HEAD>§ 21.151   List of denaturants authorized for denatured spirits.</HEAD>
<P>Following is an alphabetical listing of denaturants authorized for use in denatured spirits:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Denaturants Authorized for Completely Denatured Alcohol (C.D.A), Specially Denatured Alcohol (S.D.A.), and Specially Denatured Rum (S.D.R.)
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">Acetaldehyde</TD><TD align="left" class="gpotbl_cell">S.D.A. 29.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Acetone, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 23-A, 23-H.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Acetaldol</TD><TD align="left" class="gpotbl_cell">C.D.A. 18.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Alkylate</TD><TD align="left" class="gpotbl_cell">C.D.A. 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Almond oil, bitter, N.F.X</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Alpha Terpineol</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ammonia, aqueous</TD><TD align="left" class="gpotbl_cell">S.D.A. 36.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ammonia solution, strong, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 36.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Anethole, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Anise oil, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Bay oil (myrcia oil), N.F.XI</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B, 39-D.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Benzaldehyde, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Bergamot oil, N.F.XI</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Boric acid, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-F.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Brucine alkaloid</TD><TD align="left" class="gpotbl_cell">S.D.A. 40.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Brucine sulfate, N.F.IX</TD><TD align="left" class="gpotbl_cell">S.D.A. 40.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"><E T="03">n</E>-Butyl alcohol</TD><TD align="left" class="gpotbl_cell">S.D.A. 44.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"><E T="03">tert</E>-Butyl alcohol</TD><TD align="left" class="gpotbl_cell">S.D.A. 39-B, 40, 40-A, 40-B, 40-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Camphor, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Caustic soda, liquid</TD><TD align="left" class="gpotbl_cell">S.D.A. 36.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cedar leaf oil, U.S.P.XIII</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Chlorothymol, N.F.XII</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B, 38-F.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cinnamic aldehyde (cinnamaldehyde), N.F.IX</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cinnamon oil, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Citronella oil, natural</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Clove oil, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Coal tar, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cornmint oil</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cyclohexane</TD><TD align="left" class="gpotbl_cell">S.D.A. 3-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Denatonium benzoate, N.F.</TD><TD align="left" class="gpotbl_cell">S.D.A. 1, 40-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Diethyl phthalate</TD><TD align="left" class="gpotbl_cell">S.D.A. 39-B, 39-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Distilled lime oil</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethyl acetate</TD><TD align="left" class="gpotbl_cell">C.D.A. 35; S.D.A. 29, 35-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethyl ether</TD><TD align="left" class="gpotbl_cell">S.D.A. 13-A, 19, 32.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethyl tertiary butyl ether</TD><TD align="left" class="gpotbl_cell">C.D.A. 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eucalyptol, N.F.XII</TD><TD align="left" class="gpotbl_cell">S.D.A. 37, 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eucalyptus oil, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eugenol, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Formaldehyde solution, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-D.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Gasoline</TD><TD align="left" class="gpotbl_cell">C.D.A. 18, 19; S.D.A. 28-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Gasoline, unleaded</TD><TD align="left" class="gpotbl_cell">C.D.A. 18, 19, 20; S.D.A 28-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Glycerin (Glycerol), U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 31-A.


</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Guaiacol, N.F.X</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Heptane</TD><TD align="left" class="gpotbl_cell">C.D.A. 18, 19; S.D.A. 2-B, 28-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Hexane</TD><TD align="left" class="gpotbl_cell">S.D.A. 2-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"><E T="03">n</E>-Hexane</TD><TD align="left" class="gpotbl_cell">S.D.A. 2-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">High octane denaturant blend</TD><TD align="left" class="gpotbl_cell">C.D.A. 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Hydrochloric acid, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-F.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Iodine, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 25, 25-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Isopropyl alcohol</TD><TD align="left" class="gpotbl_cell">S.D.A. 3-C.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Kerosene</TD><TD align="left" class="gpotbl_cell">C.D.A. 18, 19, 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Kerosene (deodorized)</TD><TD align="left" class="gpotbl_cell">C.D.A. 18, 19, 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">L(-)-Carvone</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Lavender oil, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Lemon oil</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Menthol, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 37, 38-B, 38-D, 38-F.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Methyl alcohol</TD><TD align="left" class="gpotbl_cell">S.D.A. 1, 3-A, 30.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Methylene blue, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 4; S.D.R. 4.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Methyl isobutyl ketone</TD><TD align="left" class="gpotbl_cell">C.D.A. 18, 19; S.D.A. 1, 23-H.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Methyl <E T="03">n</E>-butyl ketone</TD><TD align="left" class="gpotbl_cell">C.D.A. 18, 19; S.D.A. 1.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Methyl salicylate, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Methyl tertiary butyl ether</TD><TD align="left" class="gpotbl_cell">C.D.A. 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Mustard oil, volatile (allyl isothiocyanate), U.S.P.XII</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Naphtha</TD><TD align="left" class="gpotbl_cell">C.D.A. 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Natural gasoline</TD><TD align="left" class="gpotbl_cell">C.D.A. 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Nicotine solution</TD><TD align="left" class="gpotbl_cell">S.D.A. 4; S.D.R. 4.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Nitropropane, mixed isomers of</TD><TD align="left" class="gpotbl_cell">C.D.A. 18, 19; S.D.A. 1.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Peppermint oil, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Peppermint oil, terpeneless</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Phenol, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Phenyl salicylate (salol), N.F.XI</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Pine needle oil, dwarf, N.F.</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Pine oil, N.F.</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Poloxamer 407, N.F.</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-F.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Polysorbate 80, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-F.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Potassium hydroxide</TD><TD align="left" class="gpotbl_cell">S.D.A. 36.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Potassium iodide, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 25, 25-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Pyronate</TD><TD align="left" class="gpotbl_cell">C.D.A. 18.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Quassin</TD><TD align="left" class="gpotbl_cell">S.D.A. 40.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Quinine bisulfate, N.F.XI</TD><TD align="left" class="gpotbl_cell">S.D.A. 39-D.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Quinine sulfate, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 39-D.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Raffinate</TD><TD align="left" class="gpotbl_cell">C.D.A. 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Rosemary oil, N.F. XII</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Rubber hydrocarbon solvent</TD><TD align="left" class="gpotbl_cell">C.D.A. 18, 19, 20; S.D.A. 2-B, 28-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Safrole</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sassafras oil, N.F.XI</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Shellac (refined)</TD><TD align="left" class="gpotbl_cell">S.D.A. 45.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Soap, hard, N.F.XI</TD><TD align="left" class="gpotbl_cell">S.D.A. 31-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sodium iodide, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 25, 25-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sodium salicylate, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 39-D.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Spearmint oil, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Spearmint oil, terpeneless</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Spike lavender oil, natural</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Storax, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Straight run gasoline</TD><TD align="left" class="gpotbl_cell">C.D.A. 20.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sucrose octaacetate</TD><TD align="left" class="gpotbl_cell">S.D.A. 40-A.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Thyme oil, N.F.XII</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Thymol, N.F</TD><TD align="left" class="gpotbl_cell">S.D.A. 37, 38-B, 38-F.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Tolu balsam, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Toluene</TD><TD align="left" class="gpotbl_cell">C.D.A. 12-A; S.D.A. 2-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Turpentine oil, N.F.XI</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-B.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Vinegar</TD><TD align="left" class="gpotbl_cell">S.D.A. 18.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Zinc chloride, U.S.P</TD><TD align="left" class="gpotbl_cell">S.D.A. 38-F.</TD></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 FR 12854, Mar. 1, 2001; T.D. TTB-140, 81 FR 59463, Aug. 30, 2016; T.D. TTB-196, 89 FR 87940, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.17.8" TYPE="SUBPART">
<HEAD>Subpart H—Weights and Specific Gravities of Specially Denatured Alcohol</HEAD>


<DIV8 N="§ 21.161" NODE="27:1.0.1.1.17.8.289.1" TYPE="SECTION">
<HEAD>§ 21.161   Weights and specific gravities of specially denatured alcohol.</HEAD>
<P>The weight of one gallon of each formula of specially denatured alcohol at 15.56 °C. (60 °F.) is as listed in this section. The specific gravity of each formula of specially denatured alcohol at 15.56 °C./15.56 °C. (60 °F./60 °F.) in air is as listed in this section. (Weight of 1 gallon of water at 15.56 °C. (60 °F.) is 8.32823 pounds in air.)
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Weights and Specific Gravities of Specially Denatured Alcohol 
<sup>1</sup>
</P><P class="gpotbl_description">[Slight deviations from this table may occur due to variations in specific gravities of authorized denaturants. Values for 190 proof determined experimentally in air. Other values calculated from these gravities.]
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">S.D.A. Formula No.
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Finished formula (gals)
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">190 proof
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">192 proof
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">200 proof
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Wt./gal. in air (lbs)
</TH><TH class="gpotbl_colhed" scope="col">Sp. gr. in air
</TH><TH class="gpotbl_colhed" scope="col">Wt./gal. in air (lbs)
</TH><TH class="gpotbl_colhed" scope="col">Sp. gr. in air
</TH><TH class="gpotbl_colhed" scope="col">Wt./gal. in air (lbs)
</TH><TH class="gpotbl_colhed" scope="col">Sp. gr. in air
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1</TD><TD align="right" class="gpotbl_cell">104.0</TD><TD align="right" class="gpotbl_cell">6.788</TD><TD align="right" class="gpotbl_cell">0.8151</TD><TD align="right" class="gpotbl_cell">6.756</TD><TD align="right" class="gpotbl_cell">0.8112</TD><TD align="right" class="gpotbl_cell">6.611</TD><TD align="right" class="gpotbl_cell">0.7938
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">2-B</TD><TD align="right" class="gpotbl_cell">100.5</TD><TD align="right" class="gpotbl_cell">6.795</TD><TD align="right" class="gpotbl_cell">.8159</TD><TD align="right" class="gpotbl_cell">6.762</TD><TD align="right" class="gpotbl_cell">.8119</TD><TD align="right" class="gpotbl_cell">6.612</TD><TD align="right" class="gpotbl_cell">.7939
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">3-A</TD><TD align="right" class="gpotbl_cell">105.0</TD><TD align="right" class="gpotbl_cell">6.787</TD><TD align="right" class="gpotbl_cell">.8149</TD><TD align="right" class="gpotbl_cell">6.755</TD><TD align="right" class="gpotbl_cell">.8111</TD><TD align="right" class="gpotbl_cell">6.611</TD><TD align="right" class="gpotbl_cell">.7938
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">3-C</TD><TD align="right" class="gpotbl_cell">105.0</TD><TD align="right" class="gpotbl_cell">6.784</TD><TD align="right" class="gpotbl_cell">.8146</TD><TD align="right" class="gpotbl_cell">6.752</TD><TD align="right" class="gpotbl_cell">.8107</TD><TD align="right" class="gpotbl_cell">6.608</TD><TD align="right" class="gpotbl_cell">.7935
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">4</TD><TD align="right" class="gpotbl_cell">100.8</TD><TD align="right" class="gpotbl_cell">6.823</TD><TD align="right" class="gpotbl_cell">.8193</TD><TD align="right" class="gpotbl_cell">6.791</TD><TD align="right" class="gpotbl_cell">.8154</TD><TD align="right" class="gpotbl_cell">6.640</TD><TD align="right" class="gpotbl_cell">.7973
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">13-A</TD><TD align="right" class="gpotbl_cell">109.7</TD><TD align="right" class="gpotbl_cell">6.740</TD><TD align="right" class="gpotbl_cell">.8093</TD><TD align="right" class="gpotbl_cell">6.710</TD><TD align="right" class="gpotbl_cell">.8057</TD><TD align="right" class="gpotbl_cell">6.572</TD><TD align="right" class="gpotbl_cell">.7891
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">18</TD><TD align="right" class="gpotbl_cell">195.4</TD><TD align="right" class="gpotbl_cell">7.802</TD><TD align="right" class="gpotbl_cell">.9368</TD><TD align="right" class="gpotbl_cell">7.785</TD><TD align="right" class="gpotbl_cell">.9348</TD><TD align="right" class="gpotbl_cell">7.708</TD><TD align="right" class="gpotbl_cell">.9255
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">19</TD><TD align="right" class="gpotbl_cell">197.9</TD><TD align="right" class="gpotbl_cell">6.468</TD><TD align="right" class="gpotbl_cell">.7766</TD><TD align="right" class="gpotbl_cell">6.452</TD><TD align="right" class="gpotbl_cell">.7747</TD><TD align="right" class="gpotbl_cell">6.375</TD><TD align="right" class="gpotbl_cell">.7655
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">23-A</TD><TD align="right" class="gpotbl_cell">107.9</TD><TD align="right" class="gpotbl_cell">6.788</TD><TD align="right" class="gpotbl_cell">.8151</TD><TD align="right" class="gpotbl_cell">6.758</TD><TD align="right" class="gpotbl_cell">.8115</TD><TD align="right" class="gpotbl_cell">6.619</TD><TD align="right" class="gpotbl_cell">.7948
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">23-H</TD><TD align="right" class="gpotbl_cell">109.45</TD><TD align="right" class="gpotbl_cell">6.785</TD><TD align="right" class="gpotbl_cell">.8147</TD><TD align="right" class="gpotbl_cell">6.755</TD><TD align="right" class="gpotbl_cell">.8111</TD><TD align="right" class="gpotbl_cell">6.617</TD><TD align="right" class="gpotbl_cell">.7945
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">25</TD><TD align="right" class="gpotbl_cell">100.9</TD><TD align="right" class="gpotbl_cell">7.080</TD><TD align="right" class="gpotbl_cell">.8501</TD><TD align="right" class="gpotbl_cell">7.047</TD><TD align="right" class="gpotbl_cell">.8462</TD><TD align="right" class="gpotbl_cell">6.897</TD><TD align="right" class="gpotbl_cell">.8282
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">25 
<sup>2</sup></TD><TD align="right" class="gpotbl_cell">100.9</TD><TD align="right" class="gpotbl_cell">7.083</TD><TD align="right" class="gpotbl_cell">.8505</TD><TD align="right" class="gpotbl_cell">7.050</TD><TD align="right" class="gpotbl_cell">.8465</TD><TD align="right" class="gpotbl_cell">6.900</TD><TD align="right" class="gpotbl_cell">.8285
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">25-A</TD><TD align="right" class="gpotbl_cell">102.5</TD><TD align="right" class="gpotbl_cell">7.119</TD><TD align="right" class="gpotbl_cell">.8548</TD><TD align="right" class="gpotbl_cell">7.087</TD><TD align="right" class="gpotbl_cell">.8510</TD><TD align="right" class="gpotbl_cell">6.939</TD><TD align="right" class="gpotbl_cell">.8332
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">25-A 
<sup>2</sup></TD><TD align="right" class="gpotbl_cell">102.5</TD><TD align="right" class="gpotbl_cell">7.117</TD><TD align="right" class="gpotbl_cell">.8546</TD><TD align="right" class="gpotbl_cell">7.085</TD><TD align="right" class="gpotbl_cell">.8507</TD><TD align="right" class="gpotbl_cell">6.938</TD><TD align="right" class="gpotbl_cell">.8331
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">28-A</TD><TD align="right" class="gpotbl_cell">101.0</TD><TD align="right" class="gpotbl_cell">6.786</TD><TD align="right" class="gpotbl_cell">.8148</TD><TD align="right" class="gpotbl_cell">6.753</TD><TD align="right" class="gpotbl_cell">.8109</TD><TD align="right" class="gpotbl_cell">6.603</TD><TD align="right" class="gpotbl_cell">.7929
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">29</TD><TD align="right" class="gpotbl_cell">100.76</TD><TD align="right" class="gpotbl_cell">6.808</TD><TD align="right" class="gpotbl_cell">.8175</TD><TD align="right" class="gpotbl_cell">6.775</TD><TD align="right" class="gpotbl_cell">.8135</TD><TD align="right" class="gpotbl_cell">6.624</TD><TD align="right" class="gpotbl_cell">.7954
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">30</TD><TD align="right" class="gpotbl_cell">110.0</TD><TD align="right" class="gpotbl_cell">6.785</TD><TD align="right" class="gpotbl_cell">.8147</TD><TD align="right" class="gpotbl_cell">6.755</TD><TD align="right" class="gpotbl_cell">.8111</TD><TD align="right" class="gpotbl_cell">6.617</TD><TD align="right" class="gpotbl_cell">.7945
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">31-A</TD><TD align="right" class="gpotbl_cell">111.5</TD><TD align="right" class="gpotbl_cell">7.167</TD><TD align="right" class="gpotbl_cell">.8606</TD><TD align="right" class="gpotbl_cell">7.138</TD><TD align="right" class="gpotbl_cell">.8571</TD><TD align="right" class="gpotbl_cell">7.002</TD><TD align="right" class="gpotbl_cell">.8408
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">32</TD><TD align="right" class="gpotbl_cell">104.8</TD><TD align="right" class="gpotbl_cell">6.769</TD><TD align="right" class="gpotbl_cell">.8128</TD><TD align="right" class="gpotbl_cell">6.737</TD><TD align="right" class="gpotbl_cell">.8089</TD><TD align="right" class="gpotbl_cell">6.593</TD><TD align="right" class="gpotbl_cell">.7916
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">35-A 
<sup>3</sup></TD><TD align="right" class="gpotbl_cell">105.0</TD><TD align="right" class="gpotbl_cell">6.817</TD><TD align="right" class="gpotbl_cell">.8185</TD><TD align="right" class="gpotbl_cell">6.785</TD><TD align="right" class="gpotbl_cell">.8147</TD><TD align="right" class="gpotbl_cell">6.641</TD><TD align="right" class="gpotbl_cell">.7974
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">35-A 
<sup>4</sup></TD><TD align="right" class="gpotbl_cell">104.25</TD><TD align="right" class="gpotbl_cell">6.826</TD><TD align="right" class="gpotbl_cell">.8196</TD><TD align="right" class="gpotbl_cell">6.794</TD><TD align="right" class="gpotbl_cell">.8158</TD><TD align="right" class="gpotbl_cell">6.649</TD><TD align="right" class="gpotbl_cell">.7984
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">36</TD><TD align="right" class="gpotbl_cell">102.7</TD><TD align="right" class="gpotbl_cell">6.837</TD><TD align="right" class="gpotbl_cell">.8209</TD><TD align="right" class="gpotbl_cell">6.804</TD><TD align="right" class="gpotbl_cell">.8170</TD><TD align="right" class="gpotbl_cell">6.657</TD><TD align="right" class="gpotbl_cell">.7993
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">37</TD><TD align="right" class="gpotbl_cell">100.9</TD><TD align="right" class="gpotbl_cell">6.794</TD><TD align="right" class="gpotbl_cell">.8158</TD><TD align="right" class="gpotbl_cell">6.762</TD><TD align="right" class="gpotbl_cell">.8119</TD><TD align="right" class="gpotbl_cell">6.612</TD><TD align="right" class="gpotbl_cell">.7939
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">38-B</TD><TD align="right" class="gpotbl_cell">101.3</TD><TD align="right" class="gpotbl_cell">6.804</TD><TD align="right" class="gpotbl_cell">.8170</TD><TD align="right" class="gpotbl_cell">6.772</TD><TD align="right" class="gpotbl_cell">.8131</TD><TD align="right" class="gpotbl_cell">6.622</TD><TD align="right" class="gpotbl_cell">.7951
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">38-D</TD><TD align="right" class="gpotbl_cell">102.7</TD><TD align="right" class="gpotbl_cell">6.863</TD><TD align="right" class="gpotbl_cell">.8241</TD><TD align="right" class="gpotbl_cell">6.830</TD><TD align="right" class="gpotbl_cell">.8201</TD><TD align="right" class="gpotbl_cell">6.682</TD><TD align="right" class="gpotbl_cell">.8023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">38-F</TD><TD align="right" class="gpotbl_cell">100.9</TD><TD align="right" class="gpotbl_cell">6.828</TD><TD align="right" class="gpotbl_cell">.8199</TD><TD align="right" class="gpotbl_cell">6.796</TD><TD align="right" class="gpotbl_cell">.8160</TD><TD align="right" class="gpotbl_cell">6.646</TD><TD align="right" class="gpotbl_cell">.7980
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">39-B</TD><TD align="right" class="gpotbl_cell">102.7</TD><TD align="right" class="gpotbl_cell">6.857</TD><TD align="right" class="gpotbl_cell">.8233</TD><TD align="right" class="gpotbl_cell">6.825</TD><TD align="right" class="gpotbl_cell">.8195</TD><TD align="right" class="gpotbl_cell">6.677</TD><TD align="right" class="gpotbl_cell">.8017
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">39-C</TD><TD align="right" class="gpotbl_cell">101.0</TD><TD align="right" class="gpotbl_cell">6.819</TD><TD align="right" class="gpotbl_cell">.8188</TD><TD align="right" class="gpotbl_cell">6.792</TD><TD align="right" class="gpotbl_cell">.8155</TD><TD align="right" class="gpotbl_cell">6.642</TD><TD align="right" class="gpotbl_cell">.7975
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">39-D</TD><TD align="right" class="gpotbl_cell">101.3</TD><TD align="right" class="gpotbl_cell">6.819</TD><TD align="right" class="gpotbl_cell">.8188</TD><TD align="right" class="gpotbl_cell">6.787</TD><TD align="right" class="gpotbl_cell">.8149</TD><TD align="right" class="gpotbl_cell">6.637</TD><TD align="right" class="gpotbl_cell">.7969
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">40</TD><TD align="right" class="gpotbl_cell">100.1</TD><TD align="right" class="gpotbl_cell">6.795</TD><TD align="right" class="gpotbl_cell">.8159</TD><TD align="right" class="gpotbl_cell">6.762</TD><TD align="right" class="gpotbl_cell">.8119</TD><TD align="right" class="gpotbl_cell">6.611</TD><TD align="right" class="gpotbl_cell">.7938
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">40-A</TD><TD align="right" class="gpotbl_cell">100.2</TD><TD align="right" class="gpotbl_cell">6.798</TD><TD align="right" class="gpotbl_cell">.8163</TD><TD align="right" class="gpotbl_cell">6.765</TD><TD align="right" class="gpotbl_cell">.8123</TD><TD align="right" class="gpotbl_cell">6.613</TD><TD align="right" class="gpotbl_cell">.7941
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">40-B</TD><TD align="right" class="gpotbl_cell">100.1</TD><TD align="right" class="gpotbl_cell">6.794</TD><TD align="right" class="gpotbl_cell">.8158</TD><TD align="right" class="gpotbl_cell">6.761</TD><TD align="right" class="gpotbl_cell">.8118</TD><TD align="right" class="gpotbl_cell">6.610</TD><TD align="right" class="gpotbl_cell">.7937
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">40-C</TD><TD align="right" class="gpotbl_cell">103.0</TD><TD align="right" class="gpotbl_cell">6.788</TD><TD align="right" class="gpotbl_cell">.8151</TD><TD align="right" class="gpotbl_cell">6.756</TD><TD align="right" class="gpotbl_cell">.8112</TD><TD align="right" class="gpotbl_cell">6.609</TD><TD align="right" class="gpotbl_cell">.7936
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">44</TD><TD align="right" class="gpotbl_cell">110.0</TD><TD align="right" class="gpotbl_cell">6.790</TD><TD align="right" class="gpotbl_cell">.8153</TD><TD align="right" class="gpotbl_cell">6.760</TD><TD align="right" class="gpotbl_cell">.8117</TD><TD align="right" class="gpotbl_cell">6.622</TD><TD align="right" class="gpotbl_cell">.7951
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">45</TD><TD align="right" class="gpotbl_cell">129.8</TD><TD align="right" class="gpotbl_cell">7.545</TD><TD align="right" class="gpotbl_cell">.9060</TD><TD align="right" class="gpotbl_cell">7.520</TD><TD align="right" class="gpotbl_cell">.9030</TD><TD align="right" class="gpotbl_cell">7.403</TD><TD align="right" class="gpotbl_cell">.8889
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">
<sup>1</sup> Where alternate denaturants are permitted, the above weights are based on the first denaturant or combination listed in the formula.
</P><P class="gpotbl_note">
<sup>2</sup> With sodium iodide.
</P><P class="gpotbl_note">
<sup>3</sup> Calculated on the basis of 85 percent ethyl acetate.
</P><P class="gpotbl_note">
<sup>4</sup> Calculated on the basis of 100 percent ethyl acetate.</P></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. TTB-140, 81 FR 59463, Aug. 30, 2016] 


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="22" NODE="27:1.0.1.1.18" TYPE="PART">
<HEAD>PART 22—DISTRIBUTION AND USE OF TAX-FREE ALCOHOL
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5001, 5121, 5123, 5206, 5214, 5271-5275, 5311, 5552, 5555, 6056, 6061, 6065, 6109, 6151, 6806, 7805; 31 U.S.C. 9304, 9306.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 22 appear by T.D. ATF-435, 66 FR 5476, Jan. 19, 2001 and T.D. ATF-463 and T.D. ATF-462, 66 FR 42733, 42736, Aug. 15, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.18.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 22.1" NODE="27:1.0.1.1.18.1.298.1" TYPE="SECTION">
<HEAD>§ 22.1   General.</HEAD>
<P>The regulations in this part relate to tax-free alcohol and cover the procurement, storage, use, and recovery of tax-free alcohol.


</P>
</DIV8>


<DIV8 N="§ 22.2" NODE="27:1.0.1.1.18.1.298.2" TYPE="SECTION">
<HEAD>§ 22.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States and the District of Columbia.


</P>
</DIV8>


<DIV8 N="§ 22.3" NODE="27:1.0.1.1.18.1.298.3" TYPE="SECTION">
<HEAD>§ 22.3   Related regulations.</HEAD>
<P>Regulations related to this part are listed below:
</P>
<EXTRACT>
<FP-1>27 CFR Part 19—Distilled Spirits Plants.
</FP-1>
<FP-1>27 CFR Part 26—Liquors and Articles from Puerto Rico and the Virgin Islands.
</FP-1>
<FP-1>27 CFR Part 27—Importation of Distilled Spirits, Wines and Beer.
</FP-1>
<FP-1>27 CFR Part 29—Stills and Miscellaneous Regulations. 
</FP-1>
<FP-1>27 CFR Part 30—Gauging Manual.
</FP-1>
<FP-1>27 CFR Part 71—Rules of Practice in Permit Proceedings.


</FP-1>
<FP-1>31 CFR Part 225—Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties.
</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-207, 50 FR 23682, June 5, 1985; T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.18.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 22.11" NODE="27:1.0.1.1.18.2.298.1" TYPE="SECTION">
<HEAD>§ 22.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, the following terms have the meanings given in this section. Words in the plural form include the singular, and vice versa, and words importing the masculine gender include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Alcohol.</I> Spirits having a proof of 190° or more when withdrawn from bond, including all subsequent dilutions and mixtures thereof, from whatever source or by whatever process produced.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.22, Delegation of the Administrator's Authorities in 27 CFR Part 22, Distribution and Use of Tax-Free Alcohol.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Clinic.</I> When used in this part the term includes veterinary clinics.
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the claim, form, or other document or, where no form of declaration is prescribed, with the declaration “I declare under the penalties of perjury that this __________ (insert type of document, such as statement, report, certificate, application, claim, or other document), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete.”
</P>
<P><I>Fiduciary.</I> A guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.
</P>
<P><I>Gallon or wine gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>Hospital.</I> When used in this part the term includes veterinary hospitals.
</P>
<P><I>Initial order.</I> The first order of tax-free alcohol placed by a permittee or Governmental agency with a distilled spirits plant or vendor, and, the first order placed following the issuance of an amended or corrected permit.
</P>
<P><I>Liter or litre.</I> A metric unit of capacity equal to 1,000 cubic centimeters of alcohol, and equivalent to 33.814 fluid ounces. A liter is divided into 1,000 milliliters (mL). The symbol for milliliter or milliliters is “ mL”.
</P>
<P><I>Permit.</I> The document issued under 26 U.S.C. 5271(a), authorizing a person to withdraw tax-free alcohol from the premises of a distilled spirits plant and use such alcohol under specified conditions.
</P>
<P><I>Permittee.</I> Any person holding a permit, on Form 5150.9, issued under this part to withdraw and use tax-free alcohol.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company, or corporation.
</P>
<P><I>Proof.</I> The ethyl alcohol content of a liquid at 60 °Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
</P>
<P><I>Proof gallon.</I> A gallon at 60 °Fahrenheit which contains 50 percent of volume of ethyl alcohol having a specific gravity of 0.7939 at 60 °Fahrenheit referred to water at 60 °Fahrenheit as unity, or the alcoholic equivalent thereof.
</P>
<P><I>Restoration.</I> Restoring to the original state of recovered tax-free alcohol, including redistillation of the recovered alcohol to 190° or more of proof and the removal of foreign materials by redistillation, filtration, or other suitable means.
</P>
<P><I>Secretary of the Treasury</I> or <I>Secretary.</I> The Secretary of the Treasury or a delegate of the Secretary.


</P>
<P><I>Spirits or distilled spirits.</I> The substance known as ethyl alcohol, ethanol, or spirits of wine, having a proof of 190° or more when withdrawn from bond, including all subsequent dilutions and mixtures thereof, from whatever source or by whatever process produced.
</P>
<P><I>This chapter.</I> Title 27, Code of Federal Regulations, Chapter I (27 CFR Chapter I).
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. TTB-44, 71 FR 16937, Apr. 4, 2006; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.18.3" TYPE="SUBPART">
<HEAD>Subpart C—Administrative Provisions</HEAD>


<DIV7 N="298" NODE="27:1.0.1.1.18.3.298" TYPE="SUBJGRP">
<HEAD>Authorities</HEAD>


<DIV8 N="§ 22.20" NODE="27:1.0.1.1.18.3.298.1" TYPE="SECTION">
<HEAD>§ 22.20   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.22, Delegation of the Administrator's Authorities in 27 CFR Part 22, Distribution and Use of Tax-Free Alcohol. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16937, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 22.21" NODE="27:1.0.1.1.18.3.298.2" TYPE="SECTION">
<HEAD>§ 22.21   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part, including applications, notices, claims, reports, and records. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-435, 66 FR 5476, Jan. 19, 2001; T.D. ATF-443, 66 FR 13015, Mar. 2, 2001; T.D. TTB-44, 71 FR 16937, Apr. 4, 2006; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 22.22" NODE="27:1.0.1.1.18.3.298.3" TYPE="SECTION">
<HEAD>§ 22.22   Alternate methods or procedures; and emergency variations from requirements.</HEAD>
<P>(a) <I>Alternate methods or procedures</I>—(1) <I>Application.</I> A permittee, after receiving approval from the appropriate TTB officer, may use an alternate method or procedure (including alternate construction or equipment) in lieu of a method or procedure prescribed by this part. A permittee wishing to use an alternate method or procedure may apply to the appropriate TTB officer. The permittee shall describe the proposed alternate method or procedure and shall set forth the reasons for its use.
</P>
<P>(2) <I>Approval by appropriate TTB officer.</I> The appropriate TTB officer may approve the use of an alternate method or procedure if:
</P>
<P>(i) The applicant shows good cause for its use;
</P>
<P>(ii) It is consistent with the purpose and effect of the procedure prescribed by this part, and provides equal security to the revenue;
</P>
<P>(iii) It is not contrary to law; and
</P>
<P>(iv) It will not cause an increase in cost to the Government and will not hinder the effective administration of this part.
</P>
<P>(3) <I>Exceptions.</I> The appropriate TTB officer will not authorize an alternate method or procedure relating to the giving of a bond.
</P>
<P>(4) <I>Conditions of approval.</I> A permittee may not employ an alternate method or procedure until the appropriate TTB officer has approved its use. The permittee shall, during the terms of the authorization of an alternate method or procedure, comply with the terms of the approved application.
</P>
<P>(b) <I>Emergency variations from requirements</I>—(1) <I>Application.</I> When an emergency exists, a permittee may apply to the appropriate TTB officer for a variation from the requirements of this part relating to construction, equipment, and methods of operation. The permittee shall describe the proposed variation and set forth the reasons for using it.
</P>
<P>(2) <I>Approval by appropriate TTB officer.</I> The appropriate TTB officer may approve an emergency variation from requirements if:
</P>
<P>(i) An emergency exists;
</P>
<P>(ii) The variation from the requirements is necessary;
</P>
<P>(iii) It will afford the same security and protection to the revenue as intended by the specific regulations;
</P>
<P>(iv) It will not hinder the effective administration of this part; and
</P>
<P>(v) It is not contrary to law.
</P>
<P>(3) <I>Conditions of approval.</I> A permittee may not employ an emergency variation from the requirements until the appropriate TTB officer has approved its use. Approval of variations from requirements are conditioned upon compliance with the conditions and limitations set forth in the approval.
</P>
<P>(4) <I>Automatic termination of approval.</I> If the permittee fails to comply in good faith with the procedures, conditions or limitations set forth in the approval, authority for the variation from requirements is automatically terminated and the permittee is required to comply with prescribed requirements of regulations from which those variations were authorized.
</P>
<P>(c) <I>Withdrawal of approval.</I> The appropriate TTB officer may withdraw approval for an alternate method or procedure or an emergency variation from requirements, approved under paragraph (a) or (b) of this section, if the appropriate TTB officer finds that the revenue is jeopardized or the effective administration of this part is hindered by the approval.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0335)
</APPRO>
<SECAUTH TYPE="N">(Act of August 16, 1954, Chapter 736, 68A Stat. 917 (26 U.S.C. 7805); sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-435, 66 FR 5476, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 22.23" NODE="27:1.0.1.1.18.3.298.4" TYPE="SECTION">
<HEAD>§ 22.23   Allowance of claims.</HEAD>
<P>The appropriate TTB officer is authorized to allow claims for losses of tax-free alcohol.


</P>
</DIV8>


<DIV8 N="§ 22.24" NODE="27:1.0.1.1.18.3.298.5" TYPE="SECTION">
<HEAD>§ 22.24   Permits.</HEAD>
<P>(a) The appropriate TTB officer shall issue permits on Form 5150.33 covering the withdrawal of tax-free alcohol by the United States or a Governmental agency as provided in § 22.172.
</P>
<P>(b) The appropriate TTB officer shall issue the permit to withdraw and use tax-free alcohol, Form 5150.9 required under this part.


</P>
</DIV8>


<DIV8 N="§ 22.25" NODE="27:1.0.1.1.18.3.298.6" TYPE="SECTION">
<HEAD>§ 22.25   Right of entry and examination.</HEAD>
<P>An appropriate TTB officer may enter, during business hours or at any time operations are being conducted, any premises on which operations governed by this part are conducted to inspect the records required by this part to be kept on those premises. An appropriate TTB officer may also inspect and take samples of tax-free alcohol to which those records relate.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985. Redesignated by T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 22.26" NODE="27:1.0.1.1.18.3.298.7" TYPE="SECTION">
<HEAD>§ 22.26   Detention of containers.</HEAD>
<P>(a) <I>Summary detention.</I> An appropriate TTB officer may detain any container containing, or supposed to contain, alcohol when the appropriate TTB officer believes the alcohol was withdrawn, sold, transported, or used in violation of law of this part. The appropriate TTB officer shall hold the container at a safe place until it is determined if the detained property is liable by law to forfeiture.
</P>
<P>(b) <I>Limitations.</I> Summary detention may not exceed 72 hours without process of law or intervention of the appropriate TTB officer. The person possessing the container immediately before its detention may prepare a waiver of the 72 hours limitation to have the container kept on its premises during detention.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5311))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985. Redesignated by T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="299" NODE="27:1.0.1.1.18.3.299" TYPE="SUBJGRP">
<HEAD>Liability for Tax</HEAD>


<DIV8 N="§ 22.31" NODE="27:1.0.1.1.18.3.299.8" TYPE="SECTION">
<HEAD>§ 22.31   Persons liable for tax.</HEAD>
<P>All tax-free alcohol removed, sold, transported, or used in violation of law or regulations in this part, is subject to all provisions of law relating to taxable alcohol, including the requirement for payment of tax on the alcohol. The person removing, selling, transporting, or using tax-free alcohol in violation of law or regulations pertaining to tax-free alcohol shall be required to pay the distilled spirits tax on the alcohol.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="300" NODE="27:1.0.1.1.18.3.300" TYPE="SUBJGRP">
<HEAD>Destruction of Marks and Brands</HEAD>


<DIV8 N="§ 22.33" NODE="27:1.0.1.1.18.3.300.9" TYPE="SECTION">
<HEAD>§ 22.33   Time of destruction of marks and brands.</HEAD>
<P>(a) Any person who empties a package containing tax-free alcohol shall immediately destroy or obliterate the marks, brand, and labels required by this chapter to be placed on packages of tax-free alcohol.
</P>
<P>(b) A person may not destroy or obliterate the marks, brands or labels until the package or drum has been emptied.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5206))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="301" NODE="27:1.0.1.1.18.3.301" TYPE="SUBJGRP">
<HEAD>Document Requirements</HEAD>


<DIV8 N="§ 22.35" NODE="27:1.0.1.1.18.3.301.10" TYPE="SECTION">
<HEAD>§ 22.35   Execution under penalties of perjury.</HEAD>
<P>(a) When any form or document prescribed by this part is required to be executed under penalties of perjury, the permittee or other authorized person shall:
</P>
<P>(1) Insert the declaration “I declare under the penalties of perjury that I have examined this __________(insert the type of document such as claim, application, statement, report, certificate), including all supporting documents, and to the best of my knowledge and belief, it is true, correct, and complete”; and
</P>
<P>(2) Sign the document.
</P>
<P>(b) When the required document already bears a perjury declaration, the permittee or other authorized person shall sign the document.
</P>
<SECAUTH TYPE="N">(Act of August 16, 1954, 68A Stat. 745 (26 U.S.C. 6056))


</SECAUTH>
</DIV8>


<DIV8 N="§ 22.36" NODE="27:1.0.1.1.18.3.301.11" TYPE="SECTION">
<HEAD>§ 22.36   Filing of qualifying documents.</HEAD>
<P>All documents returned to a permittee or other person as evidence of compliance with requirements of this part, or as authorization, shall except as otherwise provided, be kept readily available for inspection by an appropriate TTB officer during business hours.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="Ca" NODE="27:1.0.1.1.18.4" TYPE="SUBPART">
<HEAD>Subpart Ca [Reserved]</HEAD>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.18.5" TYPE="SUBPART">
<HEAD>Subpart D—Qualification</HEAD>


<DIV7 N="302" NODE="27:1.0.1.1.18.5.302" TYPE="SUBJGRP">
<HEAD>Application for Permit, Form 5150.22</HEAD>


<DIV8 N="§ 22.41" NODE="27:1.0.1.1.18.5.302.1" TYPE="SECTION">
<HEAD>§ 22.41   Application for industrial alcohol user permit.</HEAD>
<P>(a) <I>Users.</I> Each person desiring to withdraw and use tax-free alcohol shall, before commencing business, file an application on Form 5150.22 for, and obtain a permit, Form 5150.9, except permittees who were previously qualified to withdraw and use tax-free alcohol on the effective date of this regulation.
</P>
<P>(b) <I>Filing.</I> All applications and necessary supporting documents, as required by this subpart, shall be filed with the appropriate TTB officer. All data, written statements, affidavits, and other documents submitted in support of the application are considered a part of the application.
</P>
<P>(1) Applications filed as provided in this section, shall be accompanied by evidence establishing the authority of the officer or other person to execute the application.
</P>
<P>(2) A State, political subdivision thereof, or the District of Columbia, may specify in the application that it desires a single permit authorizing the withdrawal and use of tax-free alcohol in a number of institutions under its control. In this instance, the application, Form 5150.22, or an attachment, shall clearly show the method of distributing and accounting for the tax-free alcohol to be withdrawn.


</P>
</DIV8>


<DIV8 N="§ 22.42" NODE="27:1.0.1.1.18.5.302.2" TYPE="SECTION">
<HEAD>§ 22.42   Data for application, Form 5150.22.</HEAD>
<P>(a) Unless waived under § 22.43, each application on Form 5150.22 shall include as applicable, the following information:
</P>
<P>(1) Serial number and purpose for which filed.
</P>
<P>(2) Name and principal business address.
</P>
<P>(3) Based on the bona fide requirements of the applicant, the estimated quantity of tax-free alcohol in proof gallons, which will be procured during a 12-month period (one calendar year).
</P>
<P>(4) Location, or locations where tax-free alcohol is to be used, if different from the business address.
</P>
<P>(5) Statement showing the specific manner in which, or purposes for which, tax-free alcohol will be withdrawn and used.
</P>
<P>(6) Statement that tax-free alcohol will be stored in accordance with the requirements of this part.
</P>
<P>(7) Statement as to the type of business organization and of the persons interested in the business, supported by the items of information listed in § 22.45.
</P>
<P>(8) Listing of the principal equipment for the recovery and restoration of alcohol (including the serial number, kind, capacity, name and address of manufacturer, and name and address of owner if different from applicant).
</P>
<P>(9) List of any trade name(s) under which the applicant will conduct operations, and the offices where these names are registered.
</P>
<P>(10) Listing of the titles of offices, the incumbents of which are responsible for the tax-free alcohol activities of the business and are authorized by the articles of incorporation, the bylaws, or the board of directors to act and sign on behalf of the applicant.
</P>
<P>(11) Other information and statements as the appropriate TTB officer may require to establish that the applicant is entitled to the permit. In the case of a corporation or other legal entity the appropriate TTB officer may require information which establishes that the officers, directors and principal stockholders whose names are required to be furnished under § 22.45 (a)(2) and (c) have not violated or conspired to violate any law of the United States relating to intoxicating liquor or have been convicted of any offense under Title 26, U.S.C., punishable as a felony or of any conspiracy to commit such offense.
</P>
<P>(b) If any of the information required by paragraphs (a)(4) through (a)(10) of this section is on file with any appropriate TTB officer, the applicant may incorporate this information by reference by stating that the information is made a part of the application.


</P>
</DIV8>


<DIV8 N="§ 22.43" NODE="27:1.0.1.1.18.5.302.3" TYPE="SECTION">
<HEAD>§ 22.43   Exceptions to application requirements.</HEAD>
<P>(a) The appropriate TTB officer may waive detailed application and supporting data requirements, other than the requirements of paragraphs (a)(1) through (a)(6) of § 22.42, and of paragraph (a)(8) of that section as it relates to recovery, in the case of—
</P>
<P>(1) All applications, Form 5150.22 filed by States or political subdivisions thereof or the District of Columbia, and
</P>
<P>(2) Applications, Form 5150.22, filed by applicants, where the appropriate TTB officer has determined that the waiver of such requirements does not pose any jeopardy to the revenue or a hindrance of the effective administration of this part. 
</P>
<P>(b) The waiver provided for in this section will terminate for a permittee, other than States or political subdivisions thereof or the District of Columbia, when the permittee files an application to amend the permit and the appropriate TTB officer determines that the conditions justifying the waiver no longer exist. In this case, the permittee will furnish the information in respect to the previously waived items, as provided in § 22.57(a)(2).
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 22.44" NODE="27:1.0.1.1.18.5.302.4" TYPE="SECTION">
<HEAD>§ 22.44   Disapproval of application.</HEAD>
<P>The appropriate TTB officer may, in accordance with part 71 of this chapter, disapprove an application for a permit to withdraw and use tax-free alcohol, if on examination of the application (or inquiry), the appropriate TTB officer has reason to believe that:
</P>
<P>(a) The applicant is not authorized by law and regulations to withdraw and use alcohol free of tax;
</P>
<P>(b) The applicant (including, in the case of a corporation, any officer, director, or principal stockholder, and, in the case of a partnership, a partner) is, by reason of their business experience, financial standing, or trade connections, not likely to maintain operations in compliance with 26 U.S.C. Chapter 51, or regulations issued under this part;
</P>
<P>(c) The applicant has failed to disclose any material information required, or has made any false statement as to any material fact, in connection with their application; or
</P>
<P>(d) The premises at which the applicant proposes to conduct the business are not adequate to protect the revenue.


</P>
</DIV8>


<DIV8 N="§ 22.45" NODE="27:1.0.1.1.18.5.302.5" TYPE="SECTION">
<HEAD>§ 22.45   Organizational documents.</HEAD>
<P>The supporting information required by § 22.42(a)(7) includes, as applicable:
</P>
<P>(a) <I>Corporate documents.</I> (1) Certified true copy of the certificate of incorporation, or certified true copy of certificate authorizing the corporation to operate in the State where the premises are located (if other than that in which incorporated).
</P>
<P>(2) Certified list of names and addresses of officers and directors, along with a statement designating which corporate officers, if applicable, are directly responsible for the tax-free alcohol activities of the business.
</P>
<P>(3) Statement showing the number of shares of each class of stock or other evidence of ownership, authorized and outstanding, the par value thereof, and the voting rights of the respective owners or holders.
</P>
<P>(b) <I>Articles of partnership.</I> True copy of the articles of partnership or association, if any, or certificate of partnership or association where required to be filed by any State, county, or municipality.
</P>
<P>(c) <I>Statement of interest.</I> (1) Names and addresses of persons owning 10% or more of each of the classes of stock in the corporation, or legal entity, and the nature and amount of the stockholding or other interest of each, whether such interest appears in the name of the interested party or in the name of another for him or her. If a corporation is wholly owned or controlled by another corporation, persons owning 10% or more of each of the classes of stock of the parent corporation are considered to be the persons interested in the business of the subsidiary, and the names and addresses of such persons must be submitted to the appropriate TTB officer if specifically requested.
</P>
<P>(2) In the case of an individual owner or partnership, name and address of every person interested in the business, whether such interest appears in the name of the interested party or in the name of another for the interested person.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-435, 66 FR 5476, Jan. 19, 2001]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="303" NODE="27:1.0.1.1.18.5.303" TYPE="SUBJGRP">
<HEAD>Industrial Alcohol User Permit, Form 5150.9</HEAD>


<DIV8 N="§ 22.48" NODE="27:1.0.1.1.18.5.303.6" TYPE="SECTION">
<HEAD>§ 22.48   Conditions of permits.</HEAD>
<P>Permits to withdraw and use tax-free alcohol will designate the acts which are permitted, and include any limitations imposed on the performance of these acts. All of the provisions of this part relating to the use or recovery of tax-free alcohol are considered to be included in the provisions and conditions of the permit, the same as if set out in the permit.


</P>
</DIV8>


<DIV8 N="§ 22.49" NODE="27:1.0.1.1.18.5.303.7" TYPE="SECTION">
<HEAD>§ 22.49   Duration of permits.</HEAD>
<P>Permits to withdraw and use tax-free alcohol are continuing unless automatically terminated by the terms thereof, suspended or revoked as provided in § 22.51, or voluntarily surrendered. The provisions of § 22.58 are considered part of the terms and conditions of all permits.


</P>
</DIV8>


<DIV8 N="§ 22.50" NODE="27:1.0.1.1.18.5.303.8" TYPE="SECTION">
<HEAD>§ 22.50   Correction of permits.</HEAD>
<P>If an error on a permit is discovered, the permittee shall immediately return the permit to the appropriate TTB officer for correction.


</P>
</DIV8>


<DIV8 N="§ 22.51" NODE="27:1.0.1.1.18.5.303.9" TYPE="SECTION">
<HEAD>§ 22.51   Suspension or revocation of permits.</HEAD>
<P>The appropriate TTB officer may institute proceedings under part 71 of this chapter to suspend or revoke a permit whenever there is reason to believe that the permittee—
</P>
<P>(a) Has not in good faith complied with the provisions of 26 U.S.C. Chapter 51, or regulations issued under that chapter;
</P>
<P>(b) Has violated the conditions of that permit;
</P>
<P>(c) Has made any false statements as to any material fact in the application for the permit;
</P>
<P>(d) Has failed to disclose any material information required to be furnished;
</P>
<P>(e) Has violated or conspired to violate any law of the United States relating to intoxicating liquor or has been convicted of an offense under Title 26, U.S.C., punishable as a felony or of any conspiracy to commit such offense;
</P>
<P>(f) Is, by reason of its operations, no longer warranted in procuring and using tax-free alcohol authorized by the permit; or
</P>
<P>(g) Has not engaged in any of the operations authorized by the permit for a period exceeding two years.


</P>
</DIV8>


<DIV8 N="§ 22.52" NODE="27:1.0.1.1.18.5.303.10" TYPE="SECTION">
<HEAD>§ 22.52   Rules of practice in permit proceedings.</HEAD>
<P>The regulations of part 71 of this chapter apply to the procedure and practice in connection with the disapproval of any application for a permit and in connection with suspension or revocation of a permit.


</P>
</DIV8>


<DIV8 N="§ 22.53" NODE="27:1.0.1.1.18.5.303.11" TYPE="SECTION">
<HEAD>§ 22.53   Powers of attorney.</HEAD>
<P>An applicant or permittee shall execute and file a Form 1534, in accordance with the instructions on the form, for each person authorized to sign or to act in its behalf. Form 1534 is not required for persons whose authority is furnished in accordance with § 22.42(a)(10).


</P>
</DIV8>


<DIV8 N="§ 22.54" NODE="27:1.0.1.1.18.5.303.12" TYPE="SECTION">
<HEAD>§ 22.54   Photocopying of permits.</HEAD>
<P>A permittee may make photocopies of its permit exclusively for the purpose of furnishing proof of authorization to withdraw tax-free alcohol from a distilled spirits plant.


</P>
</DIV8>


<DIV8 N="§ 22.55" NODE="27:1.0.1.1.18.5.303.13" TYPE="SECTION">
<HEAD>§ 22.55   Posting of permits.</HEAD>
<P>Permits issued under this part will be kept posted and available for inspection on the permit premises.


</P>
</DIV8>

</DIV7>


<DIV7 N="304" NODE="27:1.0.1.1.18.5.304" TYPE="SUBJGRP">
<HEAD>Changes After Original Qualification</HEAD>


<DIV8 N="§ 22.57" NODE="27:1.0.1.1.18.5.304.14" TYPE="SECTION">
<HEAD>§ 22.57   Changes affecting applications and permits.</HEAD>
<P>(a) <I>General</I>—(1) <I>Changes affecting application.</I> When there is a change relating to any of the information contained in, or considered a part of the application on Form 5150.22 for a permit, the permittee shall, within 30 days (except as otherwise provided in this subpart) file a written notice with the appropriate TTB officer to amend the application.
</P>
<P>(2) <I>Changes affecting waivers.</I> When any waiver under § 22.43 is terminated by a change to the application, the permittee shall include the current information as to the item previously waived with the written notice required in paragraph (a)(1) of this section.
</P>
<P>(3) <I>Changes affecting permit.</I> When the terms of a permit are affected by a change, the written notice required by paragraph (a)(1) of this section (except as otherwise provided in this subpart) will serve as an application to amend the permit.
</P>
<P>(4) <I>Form of notice.</I> All written notices to amend an application on Form 5150.22 will—
</P>
<P>(i) Identify the permittee;
</P>
<P>(ii) Contain the permit identification number;
</P>
<P>(iii) Explain the nature of the change and contain any required supporting documents;
</P>
<P>(iv) Identify the serial number of the applicable application, Form 5150.22; and
</P>
<P>(v) Be consecutively numbered and signed by the permittee or any person authorized to sign on behalf of the permittee.
</P>
<P>(b) <I>Amended application.</I> The appropriate TTB officer may require a permittee to file an amended application on Form 5150.22 when the number of changes to the previous application are determined to be excessive, or when a permittee has not timely filed the written notice prescribed in paragraph (a)(1) of this section. If items on the amended application remain unchanged, they will be marked “No change since Form 5150.22, Serial No. __________.”
</P>
<P>(c) <I>Changes in officers, directors and stockholders</I>—(1) <I>Officers.</I> In the case of a change in the officers listed under the provisions of § 22.45(a)(2), the notice required by paragraph (a)(1) of this section shall only apply (unless otherwise required, in writing, by the appropriate TTB officer) to those offices, the incumbents of which are responsible for the operations covered by the permit.
</P>
<P>(2) <I>Directors.</I> In the case of a change in the directors listed under the provisions of § 22.45(a)(2), the notice required by paragraph (a)(1) of this section shall reflect the changes.
</P>
<P>(3) <I>Stockholders.</I> In lieu of reporting all changes, within 30 days, to the list of stockholders furnished under the provisions of § 22.45(c)(1), a permittee may, upon filing written notice to the appropriate TTB officer and establishing a reporting date, file an annual notice of changes. The notice of changes in stockholders does not apply if the sale or transfer of capital stock results in a change in ownership or control which is required to be reported under § 22.58.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0335)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 22.58" NODE="27:1.0.1.1.18.5.304.15" TYPE="SECTION">
<HEAD>§ 22.58   Automatic termination of permits.</HEAD>
<P>(a) <I>Permit not transferable.</I> Permits issued under this part are not transferable. In the event of the lease, sale, or other transfer of such a permit, or of the operations authorized by the permit, the permit shall, except as provided for in this section, automatically terminate.
</P>
<P>(b) <I>Corporations.</I> (1) If actual or legal control of any corporation holding a permit issued under this part changes, directly or indirectly, whether by reason of a change in stock ownership or control (in the permittee corporation or any other corporation), by operation of law, or in any other manner, the permittee shall within 10 days of the change, give written notice to the appropriate TTB officer. The written notice shall be accompanied by (or within 30 days of the change) an application and supporting documents on Form 5150.22 for a new permit. If an application on Form 5150.22 for a new permit is not filed within 30 days of the change, the outstanding permit will automatically terminate.
</P>
<P>(2) If an application on Form 5150.22 for a new permit is filed within the 30-day period prescribed in paragraph (b)(1) of this section, the outstanding permit will remain in effect until final action is taken on the application. When final action is taken, the outstanding permit will automatically terminate and the permittee shall forward it to the appropriate TTB officer for cancellation.
</P>
<P>(c) <I>Proprietorships.</I> In the event of a change in proprietorship of a business of a permittee (as for instance, by reason of incorporation, the withdrawal or taking in of additional partners, or succession by any person who is not a fiduciary), the successor shall file written notice and make application on Form 5150.22 for a new permit under the same conditions provided for in paragraph (b) of this section.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0335)


</APPRO>
</DIV8>


<DIV8 N="§ 22.59" NODE="27:1.0.1.1.18.5.304.16" TYPE="SECTION">
<HEAD>§ 22.59   Adoption of documents by a fiduciary.</HEAD>
<P>If the business covered by a permit issued under this part, is to be operated by a fiduciary, the fiduciary may, in lieu of qualifying as a new proprietor, file a written notice, and any necessary supporting documents, to amend the predecessor's permit. The effective date of the qualifying documents filed by a fiduciary shall coincide with the effective date of the court order or the date specified therein for the fiduciary to assume control. If the fiduciary was not appointed by the court, the date the fiduciary assumed control shall coincide with the effective date of the filing of the qualifying documents.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 22.60" NODE="27:1.0.1.1.18.5.304.17" TYPE="SECTION">
<HEAD>§ 22.60   Continuing partnerships.</HEAD>
<P>(a) <I>Continuing partnerships.</I> If, under the laws of a particular State, a partnership is not terminated on death or insolvency of a partner, but continues until final settlement of the partnership affairs is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, the surviving partner may continue to withdraw and use tax-free alcohol under the prior qualifications of the partnership.
</P>
<P>(b) <I>Requalification.</I> If a surviving partner acquires the business on completion of the settlement of the partnership, that partner shall qualify as a new proprietor, from the date of acquisition, under the same conditions and limitations prescribed in § 22.58(b).
</P>
<P>(c) <I>More than one partner.</I> The rule set forth in this section also applies if there is more than one surviving partner.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 22.61" NODE="27:1.0.1.1.18.5.304.18" TYPE="SECTION">
<HEAD>§ 22.61   Change in name of permittee.</HEAD>
<P>When the only change is a change in the individual, firm, or corporation name, a permittee may not conduct operations under the new name until a written notice, accompanied by necessary supporting documents, to amend the application and permit has been filed and an amended permit has been issued by the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0335)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 22.62" NODE="27:1.0.1.1.18.5.304.19" TYPE="SECTION">
<HEAD>§ 22.62   Change in trade name.</HEAD>
<P>Where there is to be a change in, or addition of, a trade name, the permittee may not conduct operations under the new trade name until a written notice has been filed and an amended permit has been issued by the appropriate TTB officer. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0335)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 22.63" NODE="27:1.0.1.1.18.5.304.20" TYPE="SECTION">
<HEAD>§ 22.63   Change in location.</HEAD>
<P>When there is to be a change in location, a permittee may not conduct operations at the new location until a written notice, accompanied by necessary supporting information, to amend the application and permit has been filed and an amended permit has been issued by the appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0335)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-435, 66 FR 5476, Jan. 19, 2001; T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 22.64" NODE="27:1.0.1.1.18.5.304.21" TYPE="SECTION">
<HEAD>§ 22.64   Return of permits.</HEAD>
<P>Following the termination, surrender or revocation of a permit, or the issuance of a new or amended permit, caused by a change, the permittee shall 
</P>
<P>(a) Obtain and destroy all photocopies of the previous permit from its suppliers, and 
</P>
<P>(b) Return the original of the permit or obsolete permit to the appropriate TTB officer for cancellation.


</P>
</DIV8>

</DIV7>


<DIV7 N="305" NODE="27:1.0.1.1.18.5.305" TYPE="SUBJGRP">
<HEAD>Registry of Stills</HEAD>


<DIV8 N="§ 22.66" NODE="27:1.0.1.1.18.5.305.22" TYPE="SECTION">
<HEAD>§ 22.66   Registry of stills.</HEAD>
<P>The provisions of subpart C of part 29 of this chapter are applicable to stills on the premises of a permittee used for distilling. As provided in § 29.55, the listing of a still in the permit application (Form 5150.22), and approval of the application, constitutes registration of the still.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended (26 U.S.C. 5179))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-207, 50 FR 23682, June 5, 1985]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="306" NODE="27:1.0.1.1.18.5.306" TYPE="SUBJGRP">
<HEAD>Permanent Discontinuance of Use of Tax-Free Alcohol</HEAD>


<DIV8 N="§ 22.68" NODE="27:1.0.1.1.18.5.306.23" TYPE="SECTION">
<HEAD>§ 22.68   Notice of permanent discontinuance.</HEAD>
<P>A permittee who permanently discontinues the use of tax-free alcohol shall file a written notice with the appropriate TTB officer to cover the discontinuance. The notice will be accompanied by the permit, and contain—
</P>
<P>(1) A request to cancel the permit,
</P>
<P>(2) A statement of the disposition made, as provided in § 22.154, of all tax-free and recovered alcohol, and
</P>
<P>(3) The date of discontinuance.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0335)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.18.6" TYPE="SUBPART">
<HEAD>Subpart E [Reserved]</HEAD>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.18.7" TYPE="SUBPART">
<HEAD>Subpart F—Premises and Equipment</HEAD>


<DIV8 N="§ 22.91" NODE="27:1.0.1.1.18.7.307.1" TYPE="SECTION">
<HEAD>§ 22.91   Premises.</HEAD>
<P>All persons qualified to withdraw and use tax-free alcohol shall have premises suitable for the business being conducted and adequate for the protection of the revenue. Storage facilities shall be provided on the premises for tax-free alcohol received or recovered. The storage facilities may consist of a combination of storerooms, compartments, or stationary storage tanks.


</P>
</DIV8>


<DIV8 N="§ 22.92" NODE="27:1.0.1.1.18.7.307.2" TYPE="SECTION">
<HEAD>§ 22.92   Storage facilities.</HEAD>
<P>(a) Storerooms or compartments shall be so constructed and secured as to prevent unauthorized access and will be equipped for locking. These storage facilities shall be of sufficient capacity to hold the maximum quantity of tax-free alcohol which will be on hand at one time.
</P>
<P>(b) Each stationary storage tank used to hold tax-free alcohol shall be equipped for locking in such a manner as to control access to the spirits. All stationary storage tanks shall be equipped with an accurate means of measuring the spirits.
</P>
<P>(c) Storerooms and storage tanks shall be kept locked when unattended. A storage cabinet or locker kept inside a room which is locked when unattended is considered to be adequately secured.


</P>
</DIV8>


<DIV8 N="§ 22.93" NODE="27:1.0.1.1.18.7.307.3" TYPE="SECTION">
<HEAD>§ 22.93   Equipment for recovery and restoration of tax-free alcohol.</HEAD>
<P>(a) <I>Location.</I> All equipment used to recover and restore tax-free alcohol for reuse shall be located on the permit premises.
</P>
<P>(b) <I>Construction.</I> (1) Distilling apparatus, pipelines and other equipment used for recovery and restoration of tax-free alcohol shall be constructed and secured in such a manner as to prevent unauthorized access and so arranged as to be readily inspected.
</P>
<P>(2) Storage tanks shall be provided for the collection of recovered tax-free alcohol. Each storage tank shall—
</P>
<P>(i) Be durably marked as to use and capacity;
</P>
<P>(ii) Be equipped with, or for, an accurate means of measuring the spirits; and
</P>
<P>(iii) Be equipped for locking to control unauthorized access to the spirits.


</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.18.8" TYPE="SUBPART">
<HEAD>Subpart G—Use of Tax-Free Alcohol</HEAD>


<DIV8 N="§ 22.101" NODE="27:1.0.1.1.18.8.307.1" TYPE="SECTION">
<HEAD>§ 22.101   Authorized uses.</HEAD>
<P>Alcohol may be withdrawn free of tax from the bonded premises of a distilled spirits plant for the use of any State or political subdivision of a State, or the District of Columbia, for nonbeverage purposes. Alcohol may also be withdrawn by persons eligible to use tax-free alcohol, for nonbeverage purposes and not for resale or use in the manufacture of any product for sale. Tax-free alcohol shall be withdrawn and used only as provided by law and this part, as follows:
</P>
<P>(a) For the use of any educational organization described in 26 U.S.C. 170(b)(1)(A) which is exempt from income tax under 26 U.S.C. 501(a), or for the use of any scientific university or college of learning;
</P>
<P>(b) For any laboratory for use exclusively in scientific research;
</P>
<P>(c) For use at any hospital, blood bank, or sanitarium (including use in making any analysis or test at a hospital, blood bank, or sanitarium), or at any pathological laboratory exclusively engage in making analyses, or test, for hospitals or sanitariums; or
</P>
<P>(d) For the use of any clinic operated for charity and not for profit (including use in the compounding of bona fide medicines for treatment of patients outside of the clinic).
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, (26 U.S.C. 5214))


</SECAUTH>
</DIV8>


<DIV8 N="§ 22.102" NODE="27:1.0.1.1.18.8.307.2" TYPE="SECTION">
<HEAD>§ 22.102   Prohibited uses.</HEAD>
<P>(a) <I>Usage.</I> Under no circumstances may tax-free alcohol withdrawn under this part be used for beverage purposes, food products, or in any preparation used in preparing beverage or food products.
</P>
<P>(b) <I>Selling.</I> Persons qualified under this part are prohibited from selling tax-free alcohol, using tax-free alcohol in the manufacture of any product for sale, or selling any products resulting from the use of tax-free alcohol. A separate charge may be made by a hospital, sanitarium or clinic for medicines compounded with tax-free alcohol and dispensed to patients for use on the premises, as provided in §§ 22.105 and 22.106. Hospitals may not furnish tax-free alcohol for use of physicians in their private practice.
</P>
<P>(c) <I>Removal from premises.</I> Persons qualified under this part may not remove tax-free alcohol or products resulting from the use of tax-free alcohol from the permit premises unless specifically authorized by the terms of their permit, or permission is obtained from the appropriate TTB officer, except that:
</P>
<P>(1) Products made through the use of tax-free alcohol which contain no alcohol may be removed to other premises for the sole purpose of further research; or
</P>
<P>(2) Under the provisions of §§ 22.105 and 22.106, clinics operated for charity and not for profit may compound bona fide medicines with tax-free alcohol, and dispense the medicine from the premises for use by its patients outside of the clinic, if the furnishing of the medicine is not conditioned upon payment.
</P>
<P>(d) <I>Liability for tax.</I> Permittees who use tax-free alcohol in any manner prohibited by this section become liable for the tax on the alcohol. Any permittee who sells tax-free alcohol becomes subject to the provisions of part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1343, as amended, 1362, as amended (26 U.S.C. 5001, 5121, 5214))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. TTB-79, 74 FR 37404, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 22.103" NODE="27:1.0.1.1.18.8.307.3" TYPE="SECTION">
<HEAD>§ 22.103   States and the District of Columbia.</HEAD>
<P>Except as otherwise provided in this section, tax-free alcohol withdrawn by a State or political subdivision of a State, or the District of Columbia shall be used solely for mechanical and scientific purposes, and except on approval of the appropriate TTB officer, the use of tax-free alcohol or the use of any resulting product will be confined to the premises under the control of the State or political subdivision of a State, or the District of Columbia. Tax-free alcohol withdrawn for use in hospitals, clinics, and other establishments specified in §§ 22.104 through 22.108, operated by a State, political subdivision of a State, or the District of Columbia, shall be used in the manner prescribed for those establishments.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))


</SECAUTH>
</DIV8>


<DIV8 N="§ 22.104" NODE="27:1.0.1.1.18.8.307.4" TYPE="SECTION">
<HEAD>§ 22.104   Educational organizations, colleges of learning, and scientific universities.</HEAD>
<P>(a) <I>Educational organizations.</I> Educational organizations authorized to withdraw and use tax-free alcohol under § 22.101 are those organizations which normally maintain a regular faculty and curriculum and which normally have a regularly enrolled body of students in attendance at the place where their educational activities are regularly carried on and which are exempt from Federal income tax under 26 U.S.C. 501(a).
</P>
<P>(b) <I>Colleges of learning.</I> Colleges of learning, for the purposes of this subpart, have a recognized curriculum and confer degrees after specified periods of attendance at classes or research work.
</P>
<P>(c) <I>Scientific universities.</I> Scientific universities include any university incorporated or organized under any Federal or State law which provides training in the sciences.
</P>
<P>(d) <I>Uses.</I> Tax-free alcohol withdrawn by educational organizations, scientific universities, and colleges of learning shall be used only for scientific, medicinal, and mechanical purposes. Use of tax-free alcohol and resulting products are limited by the provisions of § 22.102.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))


</SECAUTH>
</DIV8>


<DIV8 N="§ 22.105" NODE="27:1.0.1.1.18.8.307.5" TYPE="SECTION">
<HEAD>§ 22.105   Hospitals, blood banks, and sanitariums.</HEAD>
<P>(a) Tax-free alcohol withdrawn for use by hospitals, blood banks, and sanitariums shall be used exclusively for medicinal, mechanical (analysis or test) and scientific purposes and in the treatment of patients. The use of tax-free alcohol and of products resulting from the use of tax-free alcohol shall be confined to the permit premises, except as provided in this section and § 22.102. Medicines compounded with tax-free alcohol on the premises of a hospital or sanitarium, for use of patients on the premises, may not be sold, but a separate charge may be made for the medicine.
</P>
<P>(b) A hospital, operating a clinic on premises, may withdraw tax-free alcohol for use in the clinic, if the clinic is operated for charity and not for profit. Medicines compounded with tax-free alcohol may be dispensed to patients at a clinic for use outside of the clinic, if the furnishing of the medicine is not conditioned upon payment.
</P>
<P>(c) A hospital or sanitarium, operating a pathological or other laboratory on premises, may withdraw tax-free alcohol for authorized use in the laboratory.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))


</SECAUTH>
</DIV8>


<DIV8 N="§ 22.106" NODE="27:1.0.1.1.18.8.307.6" TYPE="SECTION">
<HEAD>§ 22.106   Clinics.</HEAD>
<P>Tax-free alcohol withdrawn by clinics operated for charity and not for profit shall be used only for medicinal, scientific, and mechanical purposes and in the treatment of patients. Medicine compounded with tax-free alcohol may be dispensed to patients for use off the premises, if the furnishing of the medicine is not conditioned upon payment. A separate charge may be made for medicine compounded on the clinic premises with tax-free alcohol for use of patients on the premises. Except as provided in this section and in § 22.102, the use of tax-free alcohol shall be confined strictly to the premises of the clinic.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))


</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 22.107" NODE="27:1.0.1.1.18.8.307.7" TYPE="SECTION">
<HEAD>§ 22.107   Pathological laboratories.</HEAD>
<P>(a) Pathological laboratories, not operated by a hospital or sanitarium, may withdraw and use tax-free alcohol if exclusively engaged in making analyses or tests for hospitals or sanitariums. If a pathological laboratory does not exclusively conduct analyses or tests for hospitals or sanitariums, it does not qualify for the permit issued under this part.
</P>
<P>(b) A pathological laboratory which uses tax-free alcohol for any other purpose, except as provided in this section, shall become liable for the tax on the alcohol.
</P>
<P>(c) Except as provided in § 22.102, the use of tax-free alcohol and of products resulting from the use of tax-free alcohol shall be confined strictly to the permit premises.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1362, as amended (26 U.S.C. 5001, 5214))


</SECAUTH>
</DIV8>


<DIV8 N="§ 22.108" NODE="27:1.0.1.1.18.8.307.8" TYPE="SECTION">
<HEAD>§ 22.108   Other laboratories.</HEAD>
<P>Laboratories, other than pathological laboratories specified in § 22.107, may withdraw and use tax-free alcohol exclusively in scientific research. The use of tax-free alcohol or of products resulting from the use of tax-free alcohol shall be confined strictly to the laboratory premises, except as provided in § 22.102.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.18.9" TYPE="SUBPART">
<HEAD>Subpart H—Withdrawal and Receipt of Tax-Free Alcohol</HEAD>


<DIV8 N="§ 22.111" NODE="27:1.0.1.1.18.9.307.1" TYPE="SECTION">
<HEAD>§ 22.111   Withdrawals under permit.</HEAD>
<P>(a) <I>General.</I> The permit, Form 5150.9, issued under subpart D of this part, authorizes a person to withdraw tax-free alcohol from the bonded premises of a distilled spirits plant or, under the provisions of 26 U.S.C. 5688(a)(2)(B), receive alcohol from the General Services Administration.
</P>
<P>(b) <I>Photocopying of permit, Form 5150.9.</I> (1) As provided in § 22.54, a permittee may make photocopies of its permit, or amended permit, for the exclusive purpose of furnishing proof of authorization to withdraw tax-free alcohol.
</P>
<P>(2) A permittee need only furnish the photocopy of its permit, or amended permit, to a distilled spirits plant for the “initial order” from that distilled spirits plant.
</P>
<P>(3) When a permittee makes photocopies of its permit, Form 5150.9, each copy shall be signed, dated, and contain the word “COPY” across the face.
</P>
<P>(4) A permittee is responsible for obtaining and, as applicable, destroying all photocopies of its permit from distilled spirits plants when (i) an amended or corrected permit is issued which supersedes the copy on file, (ii) the permit is canceled by reason of requalification as a new permittee, (iii) the permit is revoked or suspended, or (iv) upon permanent discontinuance of use of tax-free alcohol.
</P>
<P>(c) <I>Withdrawals under permit.</I> (1) When a permittee places an initial order for tax-free alcohol it shall forward a signed copy of the permit, for retention by the distilled spirits plant, along with the purchase request.
</P>
<P>(2) When the permittee places a subsequent order for tax-free alcohol, the purchase request, in addition to any other information, shall contain the permit identification number along with a statement that the permittee possesses a valid permit to withdraw tax-free alcohol, a copy of which is on file.
</P>
<P>(3) Shipments shall not be made by a proprietor of a distilled spirits plant until it is in possession of a signed copy of a valid permit, Form 5150.9, unless the appropriate TTB officer authorizes the shipment.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5555))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 22.112" NODE="27:1.0.1.1.18.9.307.2" TYPE="SECTION">
<HEAD>§ 22.112   Regulation of withdrawals.</HEAD>
<P>(a) Each permittee shall regulate its withdrawals of tax-free alcohol to ensure that (1) the quantity on hand and unaccounted for does not exceed the capacity of the storage facilities, and (2) the cumulative quantity withdrawn or received in any calendar year does not exceed the quantity authorized by the permit, Form 5150.9. Recovered alcohol and alcohol received from the General Services Administration shall be taken into account in determining the total quantity of alcohol on hand.
</P>
<P>(b) For the purpose of this section, tax-free alcohol and recovered alcohol shall be considered as unaccounted for if lost under circumstances where a claim for allowance is required by this part and the claim has not been allowed, or if used or disposed of in any manner not provided for in this part.


</P>
</DIV8>


<DIV8 N="§ 22.113" NODE="27:1.0.1.1.18.9.307.3" TYPE="SECTION">
<HEAD>§ 22.113   Receipt of tax-free alcohol.</HEAD>
<P>(a) When tax-free alcohol is received, it shall be placed in the storage facilities prescribed by § 22.91 and kept there under lock until withdrawn for use. Unless required by city or State fire code regulations or authorized by the appropriate TTB officer or the terms of the permit, the permittee may not remove tax-free alcohol from the original packages or containers in which received until the alcohol is withdrawn for use. If the tax-free alcohol is transferred to “safety” containers in accordance with fire code regulations, the containers to which they are transferred shall be appropriately marked to identify the package from which transferred, the quantity transferred, the date of transfer, and the name and address of the vendor.
</P>
<P>(b) When tax-free alcohol is received, the permittee shall ascertain and account for any losses in transit in accordance with subpart I of this part. The permittee shall note any loss or deficiency in the shipment on the record of receipt.
</P>
<P>(c) Records of receipt shall consist of the consignors invoice or bill. Records of receipt may be filed in accordance with the permittee's own filing system as long as it does not cause inconvenience to appropriate TTB officers desiring to examine the records. The filing system shall systematically and accurately account for the receipt of all tax-free alcohol.


</P>
</DIV8>


<DIV8 N="§ 22.114" NODE="27:1.0.1.1.18.9.307.4" TYPE="SECTION">
<HEAD>§ 22.114   Alcohol received from the General Services Administration.</HEAD>
<P>Any nonprofit charitable institution holding a permit on Form 5150.9, and receiving alcohol from the General Services Administration under the provisions of 26 U.S.C. 5688(a)(2)(B), shall include any quantity of alcohol received in computing the quantity of tax-free alcohol that may be procured under its permit during the calendar year. The alcohol, on receipt, shall be placed in the storage facilities prescribed in § 22.91 and kept there under lock until withdrawn for use.


</P>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.18.10" TYPE="SUBPART">
<HEAD>Subpart I—Losses</HEAD>


<DIV8 N="§ 22.121" NODE="27:1.0.1.1.18.10.307.1" TYPE="SECTION">
<HEAD>§ 22.121   Liability and responsibility of carriers.</HEAD>
<P>(a) A person or carrier transporting tax-free alcohol to a consignee or returning the alcohol to the consignor is responsible for the safe delivery and is accountable for any tax-free alcohol not delivered.
</P>
<P>(b) A person or carrier transporting tax-free alcohol in violation of any law or regulation pertaining thereto, is subject to all provisions of law relating to alcohol subject to and the payment of tax thereon, and shall be required to pay the tax.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C 5001))


</SECAUTH>
</DIV8>


<DIV8 N="§ 22.122" NODE="27:1.0.1.1.18.10.307.2" TYPE="SECTION">
<HEAD>§ 22.122   Losses in transit.</HEAD>
<P>(a) <I>Reporting losses.</I> Upon discovering any loss of tax-free alcohol while in transit, the carrier shall immediately inform the consignee, in writing, of the facts and circumstances relating to the loss. In the case of theft, the carrier shall also immediately notify the consignee's appropriate TTB officer of the facts and circumstances relating to the loss.
</P>
<P>(b) <I>Recording losses.</I> At the time the shipment or report of loss is received, the consignee shall determine the quantity of tax-free alcohol lost. The consignee shall note the quantity lost on the receiving document and attach all relevant information to the record of receipt, prescribed in § 22.113. For the purpose of maintaining the records prescribed in subpart M of this part, receipts of tax-free alcohol shall only include the quantity actually received.
</P>
<P>(c) <I>Claims.</I> A claim for allowances of losses of tax-free alcohol shall, as prescribed in § 22.125, be filed:
</P>
<P>(1) If the quantity lost in transit exceeds 1 percent of the total quantity shipped and is more than 5 proof gallons, the consignee shall file a claim for allowance of the entire quantity lost; or
</P>
<P>(2) If the loss was due to theft or other unlawful removal, the consignee shall file a claim for allowances of the entire quantity lost, regardless of the quantity or percentage involved.
</P>
<APPRO TYPE="N">(Reporting approved by the Office of Management and Budget under control number 1512-0335; recordkeeping approved by the Office of Management and Budget under control number 1512-0334)


</APPRO>
</DIV8>


<DIV8 N="§ 22.123" NODE="27:1.0.1.1.18.10.307.3" TYPE="SECTION">
<HEAD>§ 22.123   Losses on premises.</HEAD>
<P>(a) <I>Recording of losses.</I> A permittee shall determine and record, in the records prescribed by subpart M of this part, the quantity of tax-free or recovered alcohol lost on premises—
</P>
<P>(1) At the end of each semi-annual period when the inventory required by § 22.162 is taken, or
</P>
<P>(2) Immediately upon the discovery of any loss due to casualty, theft or other unusual causes.
</P>
<P>(b) <I>Claims.</I> A claim for allowances of losses of tax-free alcohol shall be filed as prescribed in § 22.125, in the following circumstances—
</P>
<P>(1) if the quantity lost during any semi-annual inventory period exceeds 1 percent of the quantity to be accounted for during that period, and is more than 10 proof gallons, or
</P>
<P>(2) if the loss was due to theft or unlawful use or removal, the permittee shall file a claim for allowances of losses regardless of the quantity involved.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0334)


</APPRO>
</DIV8>


<DIV8 N="§ 22.124" NODE="27:1.0.1.1.18.10.307.4" TYPE="SECTION">
<HEAD>§ 22.124   Incomplete shipments.</HEAD>
<P>(a) Subject to the provisions of this part and part 19 of this chapter, when containers of tax-free alcohol have sustained losses in transit other than by theft, and the shipment will not be delivered to the consignee, the carrier may return the shipment to the distilled spirits plant.
</P>
<P>(b) When tax-free alcohol is returned to the distilled spirits plant, in accordance with this section, the carrier shall inform the proprietor, in writing, of the facts and circumstances relating to the loss. In the case of theft, the carrier shall also immediately notify the shipper's appropriate TTB officer of the facts and circumstances relating to the loss.
</P>
<P>(c) Subject to the limitations for loss prescribed in § 22.122, the proprietor of the distilled spirits plant shall file a claim for allowance of the entire quantity lost, in the same manner provided in that section. The claim shall include the applicable date required by § 22.125.


</P>
</DIV8>


<DIV8 N="§ 22.125" NODE="27:1.0.1.1.18.10.307.5" TYPE="SECTION">
<HEAD>§ 22.125   Claims.</HEAD>
<P>(a) Claims for allowances of losses of tax-free or recovered alcohol shall be filed, on Form 2635 (5620.8), within 30 days from the date the loss is ascertained, and shall contain the following information:
</P>
<P>(1) Name, address, and permit number of claimant;
</P>
<P>(2) Identification and location of the container(s) from which the tax-free or recovered alcohol was lost, and the quantity lost from each container;
</P>
<P>(3) Total quantity of tax-free or recovered alcohol covered by the claim and the aggregate quantity involved;
</P>
<P>(4) Date of loss or discovery, the cause or nature of loss, and all relevant facts, including facts establishing whether the loss occurred as a result of negligence, connivance, collusion, or fraud on the part of any person, employee or agent participating in or responsible for the loss; and
</P>
<P>(5) Name of carrier where a loss in transit is involved.
</P>
<P>(b) The carriers statement regarding a loss in transit, prescribed by § 22.122 or 22.124, shall accompany the claim.
</P>
<P>(c) The appropriate TTB officer may require additional evidence to be submitted in support of the claim.


</P>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.18.11" TYPE="SUBPART">
<HEAD>Subpart J—Recovery of Tax-Free Alcohol</HEAD>


<DIV8 N="§ 22.131" NODE="27:1.0.1.1.18.11.307.1" TYPE="SECTION">
<HEAD>§ 22.131   General.</HEAD>
<P>Any person or permittee conducting recovery operations of tax-free alcohol shall be qualified by the terms of their permit to do so, under the provision of subpart D of this part. Restoration of recovered tax-free alcohol may only be accomplished on the permit premises or by the proprietor of a distilled spirits plant.


</P>
</DIV8>


<DIV8 N="§ 22.132" NODE="27:1.0.1.1.18.11.307.2" TYPE="SECTION">
<HEAD>§ 22.132   Deposit in storage tanks.</HEAD>
<P>(a) Recovered alcohol shall be accumulated and kept in separate storage tanks conforming to § 22.93. Recovered alcohol shall be measured before being redistilled or reused.
</P>
<P>(b) Recovered alcohol may be removed from storage tanks for packaging and shipment to a distilled spirits plant for redistillation.


</P>
</DIV8>


<DIV8 N="§ 22.133" NODE="27:1.0.1.1.18.11.307.3" TYPE="SECTION">
<HEAD>§ 22.133   Shipment for redistillation.</HEAD>
<P>(a) Unless a permittee intends to redistill recovered alcohol to its original state, the recovered alcohol shall be shipped in containers to a distilled spirits plant for restoration.
</P>
<P>(b) Containers shall be labeled with—
</P>
<P>(1) The name, address, and permit number of permittee,
</P>
<P>(2) The quantity of recovered alcohol in gallons,
</P>
<P>(3) The words “Recovered tax-free alcohol”, and
</P>
<P>(4) A package identification number or serial number in accordance with paragraph (c)(1) or (c)(2) of this section.
</P>
<P>(c)(1) A package identification number shall apply to all of the packages filled at the same time. All of the packages in one lot shall be the same type, have the same rated capacity, and be uniformly filled with the same quantity. A package identification number shall be derived from the date on which the package is filled, and shall consist of the following elements, in the order shown—
</P>
<P>(i) The last two digits of the calendar year;
</P>
<P>(ii) An alphabetical designation from “A” through “L”, representing January through December, in that order;
</P>
<P>(iii) The digits corresponding to the day of the month; and
</P>
<P>(iv) A letter suffix when more than one identical lot is filled into packages during the same day. For successive lots after the first lot, a letter suffix shall be added in alphabetical order, with “A” representing the second lot of the day, “B” representing the third lot of the day, etc. (e.g., the first three lots filled into packages on November 19, 1983, would be identified as “83K19,” “83K19A,” and “83K19B.”
</P>
<P>(2) A consecutive serial number shall be marked on each package, beginning with the number “1” and continuing in regular sequence. When any numbering series reaches “1,000,000,” the user may recommence the series by providing an alphabetical prefix or suffix for each number in the new series.


</P>
</DIV8>


<DIV8 N="§ 22.134" NODE="27:1.0.1.1.18.11.307.4" TYPE="SECTION">
<HEAD>§ 22.134   Records of shipment.</HEAD>
<P>A consignor shipping recovered alcohol or tax-free alcohol to a distilled spirits plant shall prepare and forward a record of shipment to the consignee. The record of shipment may consist of a shipping invoice, bill, or bill of lading, or another document intended for the same purpose. The record of shipment shall accurately identify and account for the tax-free or recovered alcohol being shipped. A permittee shall file one copy of the record of shipment with the records required by § 22.161.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0334)


</APPRO>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.18.12" TYPE="SUBPART">
<HEAD>Subpart K—Destruction</HEAD>


<DIV8 N="§ 22.141" NODE="27:1.0.1.1.18.12.307.1" TYPE="SECTION">
<HEAD>§ 22.141   General.</HEAD>
<P>A permittee may terminate liability for payment of tax, prescribed by law, when tax-free or recovered alcohol is destroyed in accordance with this subpart.


</P>
</DIV8>


<DIV8 N="§ 22.142" NODE="27:1.0.1.1.18.12.307.2" TYPE="SECTION">
<HEAD>§ 22.142   Destruction.</HEAD>
<P>(a) A permittee may destroy tax-free or recovered alcohol upon 
</P>
<P>(1) The filing of a notice of intention to destroy with the appropriate TTB officer at least 7 days prior to the proposed date of destruction, or 
</P>
<P>(2) Furnishing the notice to an appropriate TTB officer at the premises who may supervise the destruction or transmit the notice to the appropriate TTB officer.
</P>
<P>(b) The notice of intention to destroy shall contain—
</P>
<P>(1) The reason for destruction,
</P>
<P>(2) The date, time, location and manner of destruction, and
</P>
<P>(3) The quantity involved and, if applicable, the package identification numbers of containers.
</P>
<P>(c) If, by the date and time specified in the notice, an appropriate TTB officer has not supervised the destruction, or the appropriate TTB officer has not advised the permittee to the contrary, the spirits may be destroyed in the manner stated in the notice.
</P>
<P>(d) Following the destruction, if unsupervised by a TTB officer, the permittee shall annotate a copy of the notice with the name of the individual who accomplished or supervised the destruction. This notice shall serve as a record of destruction and shall be maintained with the records required by § 22.161.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0335)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.18.13" TYPE="SUBPART">
<HEAD>Subpart L—Return, Reconsignment and Disposition of Tax-Free or Recovered Alcohol</HEAD>


<DIV8 N="§ 22.151" NODE="27:1.0.1.1.18.13.307.1" TYPE="SECTION">
<HEAD>§ 22.151   Return.</HEAD>
<P>A permittee may, following the receipt of tax-free alcohol and for any legitimate reason, return the spirits to any distilled spirits plant if the consignee consents to the shipment. The consignor shall prepare a record of shipment in the same manner prescribed in § 22.134 for shipment of recovered alcohol.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0334)


</APPRO>
</DIV8>


<DIV8 N="§ 22.152" NODE="27:1.0.1.1.18.13.307.2" TYPE="SECTION">
<HEAD>§ 22.152   Reconsignment in transit.</HEAD>
<P>(a) <I>Reconsignment.</I> Tax-free alcohol may be reconsigned to another permittee or returned to the consignor if, prior to, or on arrival at the premises of the consignee, the alcohol is determined to be unsuitable for the intended purpose, was shipped in error, or, for any bona fide reason, is not accepted by the consignee or carrier.
</P>
<P>(b) <I>Records of reconsignment.</I> In the case of reconsignment, the consignor shall cancel the initial record of shipment and prepare a new record of shipment, if the shipment is to another permittee. The new record of shipment shall be annotated “Reconsignment.”
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0334)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 22.153" NODE="27:1.0.1.1.18.13.307.3" TYPE="SECTION">
<HEAD>§ 22.153   Disposition after revocation of permit.</HEAD>
<P>When any permit issued on Form 5150.9 is revoked, all tax-free alcohol in transit and all alcohol on the former permit premises, may be lawfully possessed by the former permittee for the exclusive purpose of disposing of the alcohol, for a period of 60 days following the date of revocation. Any tax-free or recovered alcohol not disposed of within the specified 60-day period, is subject to seizure and forfeiture.


</P>
</DIV8>


<DIV8 N="§ 22.154" NODE="27:1.0.1.1.18.13.307.4" TYPE="SECTION">
<HEAD>§ 22.154   Disposition on permanent discontinuance of use.</HEAD>
<P>(a) <I>Tax-free alcohol.</I> Tax-free alcohol on hand at the time of discontinuance of use, may be disposed of by 
</P>
<P>(1) Returning the spirits to a distilled spirits plant, as provided in § 22.151,
</P>
<P>(2) Destruction, as provided in § 22.142, or 
</P>
<P>(3) Shipping to another permittee, in accordance with § 22.155.
</P>
<P>(b) <I>Recovered tax-free alcohol.</I> Upon permanent discontinuance of use, a permittee may dispose of recovered tax-free alcohol by 
</P>
<P>(1) Shipment to a distilled spirits plant, as provided in § 22.133, 
</P>
<P>(2) Destruction, as provided in § 22.142, or 
</P>
<P>(3) Upon the filing of an application with the appropriate TTB officer, any other approved method.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0335)


</APPRO>
</DIV8>


<DIV8 N="§ 22.155" NODE="27:1.0.1.1.18.13.307.5" TYPE="SECTION">
<HEAD>§ 22.155   Emergency disposition to another permittee.</HEAD>
<P>(a) In the case of an emergency, a permittee may, upon the filing of a notice with the appropriate TTB officer, dispose of tax-free alcohol to another permittee, when the quantity involved does not exceed 10 proof gallons. In the case of a medical emergency or disaster, the appropriate TTB officer is authorized to verbally approve, with the required notice to follow, disposals of tax-free alcohol to another permittee or Government agency in excess of 10 proof gallons. The tax-free alcohol disposed of shall be in original unopened containers. The consignor shall prepare a record of shipment in the same manner prescribed in § 22.134.
</P>
<P>(b) The notice required by this section shall (1) explain the nature of the emergency, (2) identify the consignee by name, address and permit number, and (3) list the quantity of alcohol and package identification number of the container(s) involved.
</P>
<P>(c) The consignor permittee may not receive remuneration for tax-free alcohol given to another permittee in case of an emergency, as authorized by this section.
</P>
<APPRO TYPE="N">(Notice approved by the Office of Management and Budget under control number 1512-0335; recordkeeping approved by the Office of Management and Budget under control number 1512-0334)


</APPRO>
</DIV8>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.18.14" TYPE="SUBPART">
<HEAD>Subpart M—Records of Transactions</HEAD>


<DIV8 N="§ 22.161" NODE="27:1.0.1.1.18.14.307.1" TYPE="SECTION">
<HEAD>§ 22.161   Records.</HEAD>
<P>(a) <I>General.</I> All persons qualified under this part shall keep accurate records of all receipts, shipments, usage, destructions and claims pertaining to the withdrawal and use of tax-free alcohol. These records shall be in sufficient detail to enable the permittee to reconcile any losses or gains for the semi-annual inventory, and to enable appropriate TTB officers to verify all transactions and to ascertain whether there has been compliance with law and regulations. All records required by this section shall identify tax-free alcohol by proof, date of transaction, and quantity involved, and shall include alcohol received from the General Services Administration and the recovery of alcohol and its disposition. Records shall be kept current at all times.
</P>
<P>(b) <I>Records of receipt and shipment.</I> Records of receipt and shipment shall consist of the consignor's or consignee's (as the case may be) invoice, bill or bill of lading, or another document used for the intended purpose. Records of receipt shall record only the quantity of tax-free alcohol actually received. Losses in transit shall not be considered as received, but may be the subject of a claim for allowances of losses, as prescribed in subpart I of this part.
</P>
<P>(c) <I>Records of usage.</I> For the purpose of this subpart, tax-free or recovered alcohol shall be considered as “used” when permanently removed from a permittee's supply storeroom, compartment, or tank for any authorized use. Records of usage shall identify the tax-free alcohol by quantity, proof, and purpose of removal (office, department or location to which dispensed). This record shall list separately, the usage of tax-free alcohol from recovered alcohol or alcohol received from the General Services Administration.
</P>
<P>(d) <I>Records of destruction.</I> Records of destruction shall consist of a copy of the notice of intention to destroy, prescribed in § 22.141, signed by an appropriate TTB officer or employee witnessing the destruction.
</P>
<P>(e) <I>Claims.</I> Claims for allowance of losses of tax-free alcohol, required to be filed under subpart I of this part, shall consist of Forms 2635 (5620.8) and supporting data.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0334)


</APPRO>
</DIV8>


<DIV8 N="§ 22.162" NODE="27:1.0.1.1.18.14.307.2" TYPE="SECTION">
<HEAD>§ 22.162   Inventories.</HEAD>
<P>Each permittee shall take a physical inventory of the tax-free and recovered alcohol in its possession semi-annually for the periods ending June 30 and December 31 of each year; or other inventory periods which are approximately 6 months apart, upon filing written notice with the appropriate TTB officer establishing other inventory periods. These inventories may be recorded separately or as an entry in the record of usage with any necessary adjustments (losses or gains). If an inventory results in a loss in excess of the quantities prescribed by subpart I of this part, the permittee shall file a claim for allowance of loss.
</P>
<APPRO TYPE="N">(Notice approved by the Office of Management and Budget under control number 1512-0335; recordkeeping approved by the Office of Management and Budget under control number 1512-0334)


</APPRO>
</DIV8>


<DIV8 N="§ 22.163" NODE="27:1.0.1.1.18.14.307.3" TYPE="SECTION">
<HEAD>§ 22.163   Time for making entries.</HEAD>
<P>Any person who conducts an operation which is required to be recorded under this part, shall enter that operation in the records on the same day the operation occurred. However, the daily posting of records may be deferred to conform to the permittee's normal accounting cycle if (a) supporting or supplemental records are prepared at the time of the operation, and these supporting or supplemental records are to be used to post the daily record, and (b) the deferral of posting does not pose a jeopardy to the revenue.


</P>
</DIV8>


<DIV8 N="§ 22.164" NODE="27:1.0.1.1.18.14.307.4" TYPE="SECTION">
<HEAD>§ 22.164   Filing and retention of records.</HEAD>
<P>Each person required to maintain records of operations and transactions under this part shall:
</P>
<P>(a) Keep on file all records and copies of claims for a period of not less than 3 years following the date of transaction or, at the discretion of the appropriate TTB officer, an additional 3-year period; and
</P>
<P>(b) Maintain all records at the permit premises, except that the records may be kept at a central location by a State or political subdivision of a State, or the District of Columbia which distributes tax-free alcohol to multiple dependent agencies, institutions, or departments.


</P>
</DIV8>


<DIV8 N="§ 22.165" NODE="27:1.0.1.1.18.14.307.5" TYPE="SECTION">
<HEAD>§ 22.165   Photographic copies of records.</HEAD>
<P>(a) <I>General.</I> Permittees may record, copy, or reproduce required records. Any process may be used which accurately reproduces the original record, and which forms a durable medium for reproducing and preserving the original record.
</P>
<P>(b) <I>Copies of records treated as original records.</I> Whenever records are reproduced under this section, the reproduced records shall be preserved in conveniently accessible files, and provisions shall be made for examining, viewing, and using the reproduced records the same as if they were the original record, and they shall be treated and considered for all purposes as though they were the original record. All provisions of law and regulations applicable to the original are applicable to the reproduced record. As used in this section, “original record” means the record required by this part to be maintained or preserved by the permittee, even though it may be an executed duplicate or other copy of the document.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5555))


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.18.15" TYPE="SUBPART">
<HEAD>Subpart N—Use of Tax-Free Spirits by the United States or Government Agency</HEAD>


<DIV8 N="§ 22.171" NODE="27:1.0.1.1.18.15.307.1" TYPE="SECTION">
<HEAD>§ 22.171   General.</HEAD>
<P>(a) The United States or any of its Government agencies may withdraw tax-free spirits for nonbeverage purposes from a distilled spirits plant under this part, as authorized by 26 U.S.C. 5214(a)(2). Before any tax-free spirits may be withdrawn, a permit to procure the spirits shall be obtained from the appropriate TTB officer. 
</P>
<P>(b) The provisions of subpart M of 27 CFR part 27 cover the withdrawal of imported spirits, free of tax, for use of the United States or any of its Government agencies.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5214, 5271, 5272, 5276)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-285, 54 FR 12610, Mar. 28, 1989; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-79, 74 FR 37404, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 22.172" NODE="27:1.0.1.1.18.15.307.2" TYPE="SECTION">
<HEAD>§ 22.172   Application and permit, Form 5150.33.</HEAD>
<P>(a) All permits previously issued to the United States or any of its Government agencies on Form 1444 shall remain valid and shall be regulated by the same provisions of this subpart as it refers to permits on Forms 5150.33.
</P>
<P>(b) A Government agency shall apply for a permit to obtain tax-free spirits on Form 5150.33. Upon approval, Form 5150.33 will be returned to the Government agency, and shall serve as authority to procure spirits free of tax.
</P>
<P>(c) A Government agency may specify on its application for a permit to procure tax-free spirits, Form 5150.33, that it desires a single permit authorizing all sub-agencies under its control to procure tax-free spirits; or each Government location (agency, department, bureau, and etc.) desiring to procure tax-free spirits for nonbeverage purposes may individually submit an application for a permit on Form 5150.33.
</P>
<P>(d) An application for a permit shall be signed by the head of the agency or sub-agency, or the incumbent of an office which is authorized by the head of the agency or sub-agency, to sign. Evidence of authorization to sign for the head of the agency or sub-agency shall be furnished with the application.
</P>
<P>(e) Tax-free spirits obtained by Government agencies may not be used for non-Government purposes.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 22.173" NODE="27:1.0.1.1.18.15.307.3" TYPE="SECTION">
<HEAD>§ 22.173   Procurement of tax-free spirits.</HEAD>
<P>Each Government agency shall retain the original of its permit, Form 5150.33, on file. When placing an initial order with a vendor, the agency shall forward a photocopy of its permit with the purchase order for tax-free spirits. In the case of an agency holding a single permit for use of other sub-agencies, the photocopy of the permit shall contain an attachment listing all other locations authorized to procure tax-free spirits. Any subsequent purchases from the same vendor need only contain the permit number on the purchase order.


</P>
</DIV8>


<DIV8 N="§ 22.174" NODE="27:1.0.1.1.18.15.307.4" TYPE="SECTION">
<HEAD>§ 22.174   Receipt of shipment.</HEAD>
<P>On receipt of a shipment of tax-free spirits, a representative of the Government agency shall inspect the shipment for any loss or deficiency. In the case of loss or deficiency, the agency shall annotate the receiving document and forward a copy to the appropriate TTB officer.


</P>
</DIV8>


<DIV8 N="§ 22.175" NODE="27:1.0.1.1.18.15.307.5" TYPE="SECTION">
<HEAD>§ 22.175   Discontinuance of use.</HEAD>
<P>When a Government agency, holding a permit issued under this subpart, no longer intends to procure and use tax-free spirits, the permit shall be returned to the appropriate TTB officer for cancellation. All photocopies of the permit furnished to vendors shall be returned to the agency for destruction.


</P>
</DIV8>


<DIV8 N="§ 22.176" NODE="27:1.0.1.1.18.15.307.6" TYPE="SECTION">
<HEAD>§ 22.176   Disposition of excess spirits.</HEAD>
<P>At the time of discontinuance of use of tax-free spirits, a Government agency may dispose of any excess tax-free spirits (a) by transferring the spirits to another Government agency holding a permit, (b) by returning the spirits to a vendor, or (c) in any manner authorized by the appropriate TTB officer. Tax-free spirits may not be disposed of to the general public.


</P>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="24" NODE="27:1.0.1.1.19" TYPE="PART">
<HEAD>PART 24—WINE
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 5044, 5061, 5062, 5121, 5122-5124, 5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364-5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-299, 55 FR 24989, June 19, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:1.0.1.1.19.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 24.1" NODE="27:1.0.1.1.19.1.330.1" TYPE="SECTION">
<HEAD>§ 24.1   General.</HEAD>
<P>The regulations in this part relate to the establishment and operation (including incidental activities) of wine premises and to the treatment and classification of wine.


</P>
</DIV8>


<DIV8 N="§ 24.2" NODE="27:1.0.1.1.19.1.330.2" TYPE="SECTION">
<HEAD>§ 24.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States and the District of Columbia. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1337, as amended (26 U.S.C. 5065))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.4" NODE="27:1.0.1.1.19.1.330.3" TYPE="SECTION">
<HEAD>§ 24.4   Related regulations.</HEAD>
<P>Regulations related to this part are listed below:
</P>
<EXTRACT>
<FP-1>26 CFR Part 301—Procedure and Administration.
</FP-1>
<FP-1>27 CFR Part 1—Basic Permit Requirements Under the Federal Alcohol Administration Act.
</FP-1>
<FP-1>27 CFR Part 2—Nonindustrial Use of Distilled Spirits and Wine.
</FP-1>
<FP-1>27 CFR Part 4—Labeling and Advertising of Wine.
</FP-1>
<FP-1>27 CFR Part 9—American Viticultural Areas.
</FP-1>
<FP-1>27 CFR Part 16—Alcoholic Beverage Health Warning Statement 
</FP-1>
<FP-1>27 CFR Part 18—Production of Volatile Fruit-Flavor Concentrates.
</FP-1>
<FP-1>27 CFR Part 19—Distilled Spirits Plants.
</FP-1>
<FP-1>27 CFR Part 26—Liquors and Articles from Puerto Rico and the Virgin Islands.
</FP-1>
<FP-1>27 CFR Part 27—Importation of Distilled Spirits, Wines and Beer.
</FP-1>
<FP-1>27 CFR Part 28—Exportation of Alcohol.
</FP-1>
<FP-1>27 CFR Part 29—Stills and Miscellaneous Regulations. 
</FP-1>
<FP-1>27 CFR Part 30—Gauging Manual.
</FP-1>
<FP-1>27 CFR Part 31—Alcohol Beverage Dealers.
</FP-1>
<FP-1>27 CFR Part 71—Rules of Practice in Permit Proceedings.
</FP-1>
<FP-1>31 CFR Part 225—Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties.</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. ATF-463, 66 FR 42734, Aug. 15, 2001; T.D. ATF-462, 66 FR 42736, Aug. 15, 2001; T.D. ATF-470, 66 FR 58944, Nov. 26, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004; T.D. TTB-25, 70 FR 19882, Apr. 15, 2005; T.D. TTB-146, 82 FR 1123, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.19.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 24.10" NODE="27:1.0.1.1.19.2.330.1" TYPE="SECTION">
<HEAD>§ 24.10   Meaning of terms.</HEAD>
<P>When used in this part and in the forms prescribed under this part, terms will have the meanings ascribed in this section. Words in the plural form also include the singular, and <I>vice versa,</I> and words indicating the masculine gender also include the feminine. The terms “includes” and “including” do not exclude items not enumerated which are in the same general class. The definitions in this section do not supersede or affect the requirements of part 4 of this chapter, relative to the labeling of wine under the provisions of the Federal Alcohol Administration Act (49 Stat. 981; 27 U.S.C. 205).
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Affiliated persons or firms.</I> When used in connection with “own production”, one or more bonded wine premises proprietors associated as members of the same farm cooperative, or any one or more bonded wine premises proprietors affiliated within the meaning of section 117(a)(5) of the Federal Alcohol Administration Act, as amended (49 Stat. 989; 27 U.S.C. 211).
</P>
<P><I>Agricultural wine.</I> Wine made from suitable agricultural products other than the juice of grapes, berries, or other fruits.
</P>
<P><I>Allied products.</I> Commercial fruit products and by-products (including volatile fruit-flavor concentrate) not taxable as wine.
</P>
<P><I>Amelioration.</I> The addition to juice or natural wine before, during, or after fermentation, of either water or pure dry sugar, or a combination of water and sugar to adjust the acid level.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.24, Delegation of the Administrator's Authorities in 27 CFR Part 24, Wine.
</P>
<P><I>Artificially carbonated hard cider.</I> Hard cider artificially injected with carbon dioxide and containing more than 0.392 but not more than 0.64 gram of carbon dioxide per 100 milliliters.
</P>
<P><I>Artificially carbonated wine.</I> Wine (other than hard cider) artificially injected with carbon dioxide and containing more than 0.392 gram of carbon dioxide per 100 milliliters.
</P>
<P><I>Bonded wine cellar.</I> Premises established under the provisions of this part. For the purposes of this part a wine premises designated a bonded winery is also a bonded wine cellar. This term includes premises described in the preceding sentence even if the proprietor, as authorized under the exemption set forth in § 24.146(d), has not provided a bond for the premises.
</P>
<P><I>Bonded wine premises.</I> Premises established under the provisions of this part on which operations in untaxpaid wine are authorized to be conducted. This term includes premises described in the preceding sentence even if the proprietor, as authorized under the exemption set forth in § 24.146(d), has not provided a bond for the premises.
</P>
<P><I>Bonded wine warehouse.</I> Bonded warehouse facilities established under the provisions of this part on wine premises by a warehouse company or other person for the storage of wine and allied products for credit purposes. This term includes facilities described in the preceding sentence even if the warehouse company or other person, as authorized under the exemption set forth in § 24.146(d), has not provided a bond for the facility.
</P>
<P><I>Bonded winery.</I> Premises established under the provisions of this part on which wine production operations are conducted and other authorized operations may be conducted. This term includes premises described in the preceding sentence even if the proprietor, as authorized under the exemption set forth in § 24.146(d), has not provided a bond for the premises.
</P>
<P><I>Bottle.</I> A container four liters or less in capacity, regardless of the material from which it is made, used to store wine or to remove wine from the wine premises.
</P>
<P><I>Bottler.</I> A proprietor of wine premises established under the provisions of this part who fills wine into a bottle.
</P>
<P><I>Brix.</I> The quantity of dissolved solids expressed as grams of sucrose in 100 grams of solution at 68 degrees F. (20 degrees C.) (Percent by weight of sugar).
</P>
<P><I>Bulk container.</I> Any container larger than 60 liters.
</P>
<P><I>Business day.</I> Any day, other than Saturday, Sunday, or a legal holiday. (The term “legal holiday” includes all holidays in the District of Columbia and statewide holidays in a particular State in which a claim, report, or return, as the case may be, is required to be filed, or the act is required to be performed.)
</P>
<P><I>Calendar quarter and quarterly.</I> These terms refer to the three-month periods ending on March 31, June 30, September 30, or December 31.
</P>
<P><I>Calendar year.</I> The period which begins January 1 and ends on the following December 31.
</P>
<P><I>Case.</I> Two or more bottles, or one or more containers larger than four liters, enclosed in a box or fastened together by some other method.
</P>
<P><I>Chaptalization (Brix adjustment).</I> The addition of sugar or concentrated juice of the same kind of fruit to juice before or during fermentation to develop alcohol by fermentation.
</P>
<P><I>Cider.</I> See definitions for hard cider and tax exempt cider. For the labeling of wine that may be designated as “cider” under the Federal Alcohol Administration Act, see § 4.21(e)(5) of this chapter.
</P>
<P><I>Concentrate plant.</I> An establishment qualified under part 18 of this chapter for the production of volatile fruit-flavor concentrate.
</P>
<P><I>Container.</I> A receptacle, regardless of the material from which it is made, used to store wine or to remove wine from wine premises. (Also see the definition of bulk container for containers larger than 60 liters).
</P>
<P><I>Director of the service center.</I> A director of an internal revenue service center.
</P>
<P><I>Distilled spirits plant.</I> An establishment qualified under part 19 of this chapter (excluding alcohol fuel plants) for producing, warehousing, or processing of distilled spirits (including denatured spirits), or manufacturing of articles.
</P>
<P><I>Distilling material.</I> Any fermented or other alcoholic substance capable of, or intended for use in, the original distillation or other original processing of spirits.
</P>
<P><I>District director.</I> A district director of internal revenue.
</P>
<P><I>Effervescent wine.</I> A wine containing more than 0.392 gram of carbon dioxide per 100 milliliters, including artificially carbonated hard cider, artificially carbonated wine, sparkling hard cider, and sparkling wine.
</P>
<P><I>Electronic fund transfer (EFT).</I> Any transfer of funds effected by a proprietor's financial institution, either directly or through a correspondent banking relationship, via the Federal Reserve Communications System (FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank.
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the return, claim, form, or other document or, where no form of declaration is prescribed, with the declaration: “I declare under the penalties of perjury that this __________ (insert type of document such as statement, report, certificate, application, claim, or other document), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete.”
</P>
<P><I>Export or exportation.</I> A severance of goods from the mass of things belonging to the United States with the intention of uniting them to the mass of things belonging to some foreign country and will include shipments to any possession of the United States. For the purposes of this part, shipments to the Commonwealth of Puerto Rico and to the territories of the Virgin Islands, American Samoa, and Guam will also be treated as exportations.
</P>
<P><I>Fiduciary.</I> A guardian, trustee, executor, receiver, administrator, conservator, or any person acting in any fiduciary capacity for any person.
</P>
<P><I>Financial institution.</I> A bank or other financial institution, whether or not a member of the Federal Reserve System, which has access to the Federal Reserve Communications System (FRCS) or Fedwire. The “FRCS” or “Fedwire” is a communications network that allows Federal Reserve System member financial institutions to effect a transfer of funds for their customers (or other financial institutions) to the Treasury account at the Federal Reserve Bank.
</P>
<P><I>Fold.</I> The ratio of the volume of the fruit must or juice to the volume of the volatile fruit-flavor concentrate produced from the fruit must or juice; for example, one gallon of volatile fruit-flavor concentrate of 100-fold would be the product from 100 gallons of fruit must or juice.
</P>
<P><I>Foreign wine.</I> Wine produced outside the United States.
</P>
<P><I>Formula wine.</I> Special natural wine, agricultural wine, and other than standard wine (except for distilling material and vinegar stock) produced on bonded wine premises under an approved formula.
</P>
<P><I>From bond.</I> When used with reference to withdrawals of wine, this phrase includes withdrawals from the premises established under the provisions of this part on which operations in untaxpaid wine are authorized to be conducted, even if the proprietor, as authorized under the exemption set forth in § 24.146(d), has not provided a bond for the premises.
</P>
<P><I>Fruit wine.</I> Wine made from the juice of sound, ripe fruit (other than grapes). Fruit wine also includes wine made from berries or wine made from a combination of grapes and other fruit (including berries).
</P>
<P><I>Gallon or wine gallon.</I> A United States gallon of liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>Grams per liter.</I> For the purposes of this part, the unit of measure equivalent to the “parts per thousand” unit of measure prescribed in the Internal Revenue Code of 1986, as amended.
</P>
<P><I>Grape wine.</I> Wine made from the juice of sound, ripe grapes.
</P>
<P><I>Hard cider.</I> A wine that meets the eligibility requirements set forth in § 24.331 for the hard cider tax rate set forth in § 24.270. See the definitions for artificially carbonated hard cider, sparkling hard cider, and still hard cider.
</P>
<P><I>Heavy bodied blending wine.</I> Wine made from fruit without added sugar, with or without added wine spirits, and conforming to the definition of natural wine in all respects except as to maximum total solids content.
</P>
<P><I>High-proof concentrate.</I> A volatile fruit-flavor concentrate (essence) that has an alcohol content of more than 24 percent by volume and is unfit for beverage use (nonpotable) because of its natural constituents, i.e., without the addition of other substances.
</P>
<P><I>In bond.</I> When used with respect to wine or spirits, “in bond” refers to wine or spirits possessed under bond to secure the payment of the taxes imposed by 26 U.S.C. Chapter 51, and on which such taxes have not been determined. Wine or spirits are considered to be possessed under bond if they are possessed by a proprietor who is liable for the tax, even if the proprietor is not required to provide a bond under this chapter. The term includes any wine or spirits on the bonded wine premises or a distilled spirits plant, or in transit between bonded premises (including in the case of wine, bonded wine premises).

Additionally, the term refers to wine withdrawn without payment of tax under 26 U.S.C. 5362 and to spirits withdrawn without payment of tax under 26 U.S.C. 5214 (a)(5) or (a)(13) with respect to which relief from liability has not yet occurred.
</P>
<P><I>Invert sugar syrup.</I> A substantially colorless solution of invert sugar which has been prepared by recognized methods of inversion from pure dry sugar and contains not less than 60 percent sugar by weight (60 degrees Brix).
</P>
<P><I>Juice.</I> The unfermented juice (concentrated or unconcentrated) of grapes, other fruit (including berries) and authorized agricultural products exclusive of pulp, skins, or seeds.
</P>
<P><I>Kind.</I> Kind means the class and type of wine prescribed in this part and in 27 CFR part 4.
</P>
<P><I>Lees.</I> The settlings of wine.
</P>
<P><I>Liquid sugar.</I> A substantially colorless refined sugar and water solution containing not less than the equivalent of 60 percent pure dry sugar by weight (60 degrees Brix).
</P>
<P><I>Liter.</I> A metric unit of capacity equal to 1,000 cubic centimeters at 20 degrees C. or 33.814 United States fluid ounces at 68 degrees F. of alcoholic beverage.
</P>
<P><I>Lot.</I> Wine of the same type. When used with reference to a “lot of wine bottled”, lot means the same type of wine bottled or packed on the same date into containers.
</P>
<P><I>Must.</I> Unfermented juice or any mixture of juice, pulp, skins, and seeds prepared from grapes or other fruit (including berries).
</P>
<P><I>Natural wine.</I> The product of the juice or must of sound, ripe grapes or other sound, ripe fruit (including berries) made with any cellar treatment authorized by subparts F and L of this part and containing not more than 21 percent by weight (21 degrees Brix dealcoholized wine) of total solids.
</P>
<P><I>Nonbeverage wine.</I> Wine, or wine products made from wine, rendered unfit for beverage use in accordance with § 24.215.
</P>
<P><I>Own production.</I> When used with reference to wine in a bonded winery, the term means wine produced by fermentation in the same bonded winery, whether or not produced by a predecessor in interest at the bonded winery. The term includes wine produced by fermentation in bonded wineries owned or controlled by the same or affiliated persons or firms when located within the same State.
</P>
<P><I>Packer.</I> A proprietor of wine premises established under the provisions of this part who fills wine into a container larger than four liters.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company, or corporation. When used in connection with penalties, seizures, and forfeitures, the term includes an officer or employee of a corporation or a member or employee of a partnership, who as an officer, employee or member, is under a duty to perform the act in respect of which the violation occurs.
</P>
<P><I>Proof.</I> The ethyl alcohol content of a liquid at 60 degrees Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
</P>
<P><I>Proof gallon.</I> A United States gallon of liquid at 60 degrees Fahrenheit which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as unity, or the alcoholic equivalent thereof.
</P>
<P><I>Proprietor.</I> The person qualified under this part to operate a wine premises, and includes the term “winemaker” when the context so requires.
</P>
<P><I>Pure dry sugar.</I> Refined sugar 95 percent or more by weight dry, having a dextrose equivalent of not less than 95 percent on a dry basis, and produced from cane, beets, or fruit, or from grain or other sources of starch.
</P>
<P><I>Reconditioning.</I> The conduct of operations, after original bottling or packing, to restore wine to a merchantable condition. The term includes relabeling or recasing operations.
</P>
<P><I>Same kind of fruit.</I> In the case of grapes, all of the species and varieties of grapes. In the case of fruits other than grapes, this term includes all of the several species and varieties of any given kind; except that this will not preclude a more precise identification of the composition of the product for the purpose of its designation.
</P>
<P><I>Secretary of the Treasury</I> or <I>Secretary.</I> The Secretary of the Treasury or a delegate of the Secretary.


</P>
<P><I>Sparkling hard cider.</I> Hard cider containing more than 0.392 but not more than 0.64 gram of carbon dioxide per 100 milliliters of wine, resulting solely from the secondary fermentation of the wine within a closed container.
</P>
<P><I>Sparkling wine or champagne.</I> Wine (other than hard cider) containing more than 0.392 gram of carbon dioxide per 100 milliliters of wine resulting solely from the secondary fermentation of the wine within a closed container.
</P>
<P><I>Special natural wine.</I> A product produced from a base of natural wine (including heavy bodied blending wine) to which natural flavorings are added, and made pursuant to an approved formula in accordance with subpart H of this part.
</P>
<P><I>Specially sweetened natural wine.</I> A product made with a base of natural wine and having a total solids content in excess of 17 percent by weight (17 degrees Brix dealcoholized wine) and an alcohol content of not more than 14 percent by volume.
</P>
<P><I>Spirits.</I> That substance known as ethyl alcohol, ethanol, or spirits of wine in any form (including all dilutions or mixtures thereof, from whatever source or by whatever process produced), but not denatured spirits unless specifically stated.
</P>
<P><I>Standard wine.</I> Natural wine, specially sweetened natural wine, special natural wine, and standard agricultural wine, produced in accordance with subparts F, H, and I of this part.
</P>
<P><I>Still hard cider.</I> A hard cider containing not more than 0.392 gram of carbon dioxide per 100 milliliters.
</P>
<P><I>Still wine.</I> Wine (other than hard cider) containing not more than 0.392 gram of carbon dioxide per 100 milliliters.
</P>
<P><I>Sugar.</I> Pure dry sugar, liquid sugar, and invert sugar syrup.
</P>
<P><I>Sweetening.</I> The addition of juice, concentrated juice or sugar to wine after the completion of fermentation and before taxpayment.
</P>
<P><I>Tax exempt cider.</I> Cider produced in accordance with § 24.76
</P>
<P><I>Tax year.</I> The period from July 1 of one calendar year through June 30 of the following year.
</P>
<P><I>Taxpaid wine.</I> Wine on which the tax imposed by law has been determined, regardless of whether the tax has actually been paid or the payment of tax has been deferred.
</P>
<P><I>Taxpaid wine bottling house.</I> Premises established under the provisions of this part primarily for bottling or packing taxpaid wine.
</P>
<P><I>Taxpaid wine premises.</I> Premises established under the provisions of this part on which taxpaid wine operations other than bottling are authorized to be conducted.
</P>
<P><I>This chapter.</I> Title 27, Code of Federal Regulations, chapter I (27 CFR chapter I).
</P>
<P><I>To bond.</I> When used with reference to returns of wine, this phrase includes returns to premises established under the provisions of this part on which operations in untaxpaid wine are authorized to be conducted, even if the proprietor, as authorized under the exemption set forth in § 24.146(d), has not provided a bond for the premises.
</P>
<P><I>Total solids.</I> The degrees Brix of unfermented juice or dealcoholized wine.
</P>
<P><I>Treasury Account.</I> The Department of Treasury's General Account at the Federal Reserve Bank of New York.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>United States wine.</I> Wine produced on bonded wine premises in the United States.
</P>
<P><I>Vinegar.</I> A wine or wine product not for beverage use produced in accordance with the provisions of this part and having not less than 4.0 grams (4.0 percent) of volatile acidity (calculated as acetic acid and exclusive of sulfur dioxide) per 100 milliliters of wine.
</P>
<P><I>Volatile fruit-flavor concentrate.</I> Any concentrate produced by any process which includes evaporations from any fruit mash or juice.
</P>
<P><I>Wine.</I> When used without qualification, the term includes every kind (class and type) of product produced on bonded wine premises from grapes, other fruit (including berries), or other suitable agricultural products and containing not more than 24 percent of alcohol by volume. The term includes all imitation, other than standard, or artificial wine and compounds sold as wine. A wine product containing less than one-half of one percent alcohol by volume is not taxable as wine when removed from the bonded wine premises.
</P>
<P><I>Wine premises.</I> Premises established under the provisions of this part on which wine operations or other operations are authorized to be conducted.
</P>
<P><I>Wine spirits.</I> Brandy or wine spirits authorized under 26 U.S.C. 5373 and § 24.225 for use in wine production.


</P>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-398, 63 FR 44783, Aug. 21, 1998; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-41, 71 FR 5602, Feb. 2, 2006; T.D. TTB-44, 71 FR 16938, Apr. 4, 2006; T.D. TTB-89, 76 FR 3509, Jan. 20, 2011; T.D. TTB-94, 76 FR 52862, Aug. 24, 2011; T.D. TTB-130, 80 FR 55248, Sept. 15, 2015; T.D. TTB-146, 82 FR 1123, Jan. 4, 2017; T.D. TTB-147, 82 FR 7662, Jan. 23, 2017; T.D. TTB-185, 87 FR 51896, Aug. 24, 2022; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.19.3" TYPE="SUBPART">
<HEAD>Subpart C—Administrative and Miscellaneous Provisions</HEAD>


<DIV7 N="330" NODE="27:1.0.1.1.19.3.330" TYPE="SUBJGRP">
<HEAD>Authorities</HEAD>


<DIV8 N="§ 24.19" NODE="27:1.0.1.1.19.3.330.1" TYPE="SECTION">
<HEAD>§ 24.19   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.24, Delegation of the Administrator's Authorities in 27 CFR Part 24, Wine. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16938, Apr. 4, 2006, as amended by T.D. TB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 24.20" NODE="27:1.0.1.1.19.3.330.2" TYPE="SECTION">
<HEAD>§ 24.20   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form will be furnished as indicated by the headings on the form and the instructions on or pertaining to the form and as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-44, 71 FR 16938, Apr. 4, 2006; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 24.21" NODE="27:1.0.1.1.19.3.330.3" TYPE="SECTION">
<HEAD>§ 24.21   Modified forms.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may approve the use of a modified form in lieu of the prescribed form required by this part, when in the judgment of the appropriate TTB officer:
</P>
<P>(1) Good cause has been shown for the use of the modified form and
</P>
<P>(2) The use of the modified form will not result in a net increase in cost to the Government or hinder the effective administration of this part.
</P>
<FP>Except to adapt tax returns for use with data processing equipment, no proposal for modification of a prescribed form relating to qualification, to the giving of any bond, or to the assessment, payment, or collection of tax will be approved under this section.
</FP>
<P>(b) <I>Application.</I> The proprietor who desires to modify a prescribed form shall submit a written application to the appropriate TTB officer. The application will state the reasons a modified form is necessary and be accompanied by a copy of the proposed form with typical entries.
</P>
<P>(c) <I>Conditions.</I> A modified form may not be used until the application has been approved by the appropriate TTB officer. Authorization for the use of a modified form is conditioned on compliance with the procedures, conditions, and limitations specified in the approval of the application. The use of a modified form does not relieve the proprietor from any requirement of this part. Authority for use of a modified form may be withdrawn whenever in the judgment of the appropriate TTB officer the effective administration of this part is hindered by the continuation of the authority. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5367, 5555))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0292)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.22" NODE="27:1.0.1.1.19.3.330.4" TYPE="SECTION">
<HEAD>§ 24.22   Alternate method or procedure.</HEAD>
<P>(a) <I>General.</I> The proprietor, on specific approval of the appropriate TTB officer as provided in this section, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. As used in this section, an alternate method or procedure also includes alternate construction or equipment. No alternate method or procedure relating to the giving of any bond or to the assessment, payment, or collection of tax, will be authorized under this section. The appropriate TTB officer may approve an alternate method or procedure, subject to stated conditions, when in the judgment of the appropriate TTB officer:
</P>
<P>(1) Good cause has been shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue; and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law, will not result in an increase in cost to the Government, and will not hinder the effective administration of this part.
</P>
<P>(b) <I>Application.</I> The proprietor who desires to employ an alternate method or procedure shall submit a written application to the appropriate TTB officer. The application will specifically describe the proposed alternate method or procedure, and will set forth the reasons therefor. Alternate methods or procedures will not be employed until the application is approved by the appropriate TTB officer.
</P>
<P>(c) <I>Conditions.</I> The proprietor shall, during the period of authorization for an alternate method or procedure, comply with the terms of the approved application. Authorization for any alternate method or procedure may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered by the continuation of the authorization. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5556))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0292)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.25" NODE="27:1.0.1.1.19.3.330.5" TYPE="SECTION">
<HEAD>§ 24.25   Emergency variations from requirements.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may approve construction, equipment, and methods of operation other than as specified in this part, when in the judgment of such officer an emergency exists, the proposed variations from the specified requirements are necessary, and the proposed variations:
</P>
<P>(1) Will afford the security and protection to the revenue intended by the prescribed specifications;
</P>
<P>(2) Will not hinder the effective administration of this part; and
</P>
<P>(3) Will not be contrary to any provisions of law.
</P>
<P>(b) <I>Application.</I> The proprietor must submit a written application to the appropriate TTB officer within 24 hours of any temporary approval granted under paragraph (c) of this section, which describes the proposed variation, and sets forth the reasons therefor.
</P>
<P>(c) <I>Temporary approval.</I> The proprietor who desires to employ an emergency variation from requirements must contact the appropriate TTB officer and request temporary approval until the written application, required by paragraph (b) of this section, is acted upon. The appropriate TTB officer will be a subordinate of the TTB officer designated in paragraph (a) of this section. Where the emergency threatens life or property, the proprietor may take immediate action to correct the situation without prior notification; however, the proprietor must promptly contact the appropriate TTB officer and file with that officer a report concerning the emergency and the action taken to correct the situation.
</P>
<P>(d) <I>Conditions.</I> The proprietor must, during the period of variation from requirements granted under this section, comply with the terms of the approved application. A failure to comply in good faith with any procedures, conditions, and limitations will automatically terminate the authority for a variation. Upon termination of the variation, the proprietor must fully comply with requirements of regulations for which the variation was authorized. Authority for any variation may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered by the continuation of the variation.
</P>
<CITA TYPE="N">[T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.26" NODE="27:1.0.1.1.19.3.330.6" TYPE="SECTION">
<HEAD>§ 24.26   Authority to approve.</HEAD>
<P>The appropriate TTB officer is authorized to approve, except as otherwise provided in this part, all applications, bonds, consents of surety, qualifying documents, claims, and any other documents required by or filed under this part, whether for original establishment, for changes subsequent to establishment, for discontinuance of business, for remission, abatement, credit, or refund of tax, or for any other purpose. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0292)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.27" NODE="27:1.0.1.1.19.3.330.7" TYPE="SECTION">
<HEAD>§ 24.27   Segregation of operations.</HEAD>
<P>The appropriate TTB officer may require the proprietor to segregate operations within any wine premises established under this part, by partitions or otherwise, to the extent deemed necessary to prevent jeopardy to the revenue, to prevent confusion between operations, to prevent substitution with respect to the several methods of producing effervescent wine, and to prevent the commingling of standard wine with other than standard wine. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5365))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.28" NODE="27:1.0.1.1.19.3.330.8" TYPE="SECTION">
<HEAD>§ 24.28   Installation of meters, tanks, and other apparatus.</HEAD>
<P>The appropriate TTB officer may require the proprietor to install meters, tanks, pipes, or any other apparatus for the purpose of protecting the revenue. Any proprietor refusing or neglecting to install a required apparatus will not be permitted to conduct business. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.29" NODE="27:1.0.1.1.19.3.330.9" TYPE="SECTION">
<HEAD>§ 24.29   Claims.</HEAD>
<P>The appropriate TTB officer may require the proprietor or other person liable for the tax on wine or spirits to file a claim and to submit evidence of loss in any case where wine or spirits are lost or destroyed.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended (26 U.S.C. 5008, 5043, 5370))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.30" NODE="27:1.0.1.1.19.3.330.10" TYPE="SECTION">
<HEAD>§ 24.30   Supervision.</HEAD>
<P>The appropriate TTB officer may require that operations on wine premises be supervised by any number of appropriate TTB officers necessary for the protection of the revenue or for the enforcement of 26 U.S.C. chapter 51 and applicable regulations. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5366, 5553))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.31" NODE="27:1.0.1.1.19.3.330.11" TYPE="SECTION">
<HEAD>§ 24.31   Submission of forms and reports.</HEAD>
<P>The appropriate TTB officer may require the proprietor to submit to an appropriate TTB officer copies of prescribed transaction forms, records, reports, or source records used to prepare records, reports or tax returns.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1396, as amended (26 U.S.C. 5555))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.32" NODE="27:1.0.1.1.19.3.330.12" TYPE="SECTION">
<HEAD>§ 24.32   Records.</HEAD>
<P>The appropriate TTB officer may require the proprietor to maintain any record required by this part in a prescribed format or arrangement or otherwise change the method of recordkeeping in any case where the required information is not clearly or accurately reflected.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5367, 5555))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.35" NODE="27:1.0.1.1.19.3.330.13" TYPE="SECTION">
<HEAD>§ 24.35   Right of entry and examination.</HEAD>
<P>Under 26 U.S.C. 7601, 7602, and 7606, appropriate TTB officers have authority to inspect during normal business hours the records, stocks, and wine premises (including any portion designated as a bonded wine warehouse) of the proprietor to determine compliance with all provisions of the internal revenue laws and regulations. In addition, for the purposes prescribed in 27 CFR 70.22, appropriate TTB officers may examine financial records, books of account, and any other books, papers, records, and data relevant to an inquiry. Any denial or interference with any inspection by the proprietor, or by agents or employees of the proprietor, is a violation of 26 U.S.C. 7342 and may be subject to an appropriate penalty. (August 16, 1954, Ch. 736, 68A Stat. 872, as amended, 901, as amended, 903, as amended (26 U.S.C. 5560, 7342, 7601, 7602, 7606))
</P>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.36" NODE="27:1.0.1.1.19.3.330.14" TYPE="SECTION">
<HEAD>§ 24.36   Instruments and measuring devices.</HEAD>
<P>All instruments and measuring devices required by this part to be furnished by the proprietor for the purpose of testing and measuring wine, spirits, volatile fruit-flavor concentrate, and materials will be maintained by the proprietor in accurate and readily usable condition. The appropriate TTB officer may disapprove the use of any equipment or means of measurement found to be unsuitable for the intended purpose, inaccurate, or not in accordance with regulations. In this case, the proprietor shall promptly provide suitable and accurate equipment or measuring devices. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1381, as amended (26 U.S.C. 5357, 5366, 5368, 5552))
</P>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.37" NODE="27:1.0.1.1.19.3.330.15" TYPE="SECTION">
<HEAD>§ 24.37   Samples for the United States.</HEAD>
<P>Appropriate TTB officers are authorized to take samples of wine, spirits, volatile fruit-flavor concentrate, or any other material which may be added to wine products, for analysis, testing, etc., free of tax to determine compliance with the provisions of law and regulation.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1382, as amended, 1392, as amended, 1396, as amended (26 U.S.C. 5362, 5373, 5511, 7510))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="331" NODE="27:1.0.1.1.19.3.331" TYPE="SUBJGRP">
<HEAD>Facilities and Assistance</HEAD>


<DIV8 N="§ 24.40" NODE="27:1.0.1.1.19.3.331.16" TYPE="SECTION">
<HEAD>§ 24.40   Gauging and measuring.</HEAD>
<P>Appropriate TTB officers may require the proprietor to furnish the necessary facilities and assistance to gauge or measure wine or spirits in any container or to examine any apparatus, equipment, container, or material on wine premises. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1381, as amended, 1395, as amended, 1396, as amended (26 U.S.C. 5357, 5366, 5368, 5555))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.41" NODE="27:1.0.1.1.19.3.331.17" TYPE="SECTION">
<HEAD>§ 24.41   Office facilities.</HEAD>
<P>The appropriate TTB officer may require the proprietor to furnish temporarily a suitable work area, desk and equipment necessary for the use of appropriate TTB officers in performing Government duties whether or not such office space is located at the specific premises where regulated operations occur or at corporate business offices where no regulated activity occurs. Such office facilities will be subject to approval by the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="332" NODE="27:1.0.1.1.19.3.332" TYPE="SUBJGRP">
<HEAD>Employer Identification Number</HEAD>


<DIV8 N="§ 24.45" NODE="27:1.0.1.1.19.3.332.18" TYPE="SECTION">
<HEAD>§ 24.45   Use on returns.</HEAD>
<P>The employer identification number (as defined at 26 CFR 301.7701-12) of the taxpayer who has been assigned such a number will be shown on each return filed pursuant to the provisions of this part, including amended returns. Failure of the taxpayer to include the employer identification number on any return filed pursuant to the provisions of this part may result in the assertion and collection of the penalty prescribed in 27 CFR 70.113 of this chapter. (Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109, 6676))
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-301, 55 FR 47605, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 24.46" NODE="27:1.0.1.1.19.3.332.19" TYPE="SECTION">
<HEAD>§ 24.46   Application.</HEAD>
<P>(a) An employer identification number will be assigned pursuant to application on Internal Revenue Service (IRS) Form SS-4 filed by the taxpayer. IRS Form SS-4 may be obtained from the director of the service center or from any district director.
</P>
<P>(b) An application on IRS Form SS-4 will be made by the taxpayer who, prior to filing the first return, has neither secured nor made application for an employer identification number. An application on IRS Form SS-4 will be filed on or before the seventh day after the date on which the first return is filed.
</P>
<P>(c) Each taxpayer shall make application for and be assigned only one employer identification number, regardless of the number of places of business for which the taxpayer is required to file a tax return under the provisions of this part. (Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109))
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)


</APPRO>
</DIV8>


<DIV8 N="§ 24.47" NODE="27:1.0.1.1.19.3.332.20" TYPE="SECTION">
<HEAD>§ 24.47   Execution of IRS Form SS-4.</HEAD>
<P>(a) <I>Preparation.</I> The application on IRS Form SS-4, together with any supplementary statement, will be prepared in accordance with the form instructions and applicable regulations. The application will be filed with the director of the internal revenue service center as instructed on the Form SS-4.
</P>
<P>(b) <I>Signature.</I> The application will be signed by:
</P>
<P>(1) The individual, if the taxpayer is an individual; or,
</P>
<P>(2) The president, vice president, other principal officer, or other person authorized to sign, if the taxpayer is a corporation; or,
</P>
<P>(3) A responsible and duly authorized member or officer having knowledge of its affairs, if the taxpayer is a partnership or other unincorporated organization; or,
</P>
<P>(4) The fiduciary, if the taxpayer is a trust or estate. (Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109))
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)


</APPRO>
</DIV8>

</DIV7>


<DIV7 N="333" NODE="27:1.0.1.1.19.3.333" TYPE="SUBJGRP">
<HEAD>Dealer Registration and Recordkeeping</HEAD>


<DIV8 N="§ 24.50" NODE="27:1.0.1.1.19.3.333.21" TYPE="SECTION">
<HEAD>§ 24.50   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 24.51" NODE="27:1.0.1.1.19.3.333.22" TYPE="SECTION">
<HEAD>§ 24.51   Definitions.</HEAD>
<P>For purposes of §§ 24.52 through 24.54 of this part, the following terms have the meanings indicated:
</P>
<P><I>Dealer.</I> A person who sells, or offers for sale, any alcohol product (distilled spirits, wines, and/or beer) fit for beverage use.
</P>
<P><I>Retail dealer in liquors.</I> A dealer who sells, or offers for sale, distilled spirits, wines, or beer to any person other than a dealer.
</P>
<P><I>Wholesale dealer in liquors.</I> A dealer who sells, or offers for sale, distilled spirits, wines, or beer to another dealer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37404, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 24.52" NODE="27:1.0.1.1.19.3.333.23" TYPE="SECTION">
<HEAD>§ 24.52   Dealer registration.</HEAD>
<P>Every proprietor who sells or offers for sale any alcohol product (distilled spirits, wines, or beer) fit for beverage use must register as a dealer in accordance with part 31 of this chapter. However, the proprietor's application to establish and operate a bonded wine premises or taxpaid wine bottling house filed under subpart D of this part, and approval of that application by the appropriate TTB officer, will constitute the proprietor's registration as a dealer at the approved bonded or taxpaid wine premises. Every proprietor registered as a dealer under this section will be classified as a wholesale dealer in liquors (see § 31.32 of this chapter) and as such may also operate as a retail dealer in liquors without additional registration. Registration covers all sales from the same location, including sales of spirits, beer, or other proprietors' wine. As provided in § 31.52 of this chapter, the proprietor is subject to no additional registration for making sales of wine or beer at the customer's place of business. Otherwise, a proprietor who conducts business as a dealer at a location other than the bonded wine premises or taxpaid wine bottling house must register and keep records in accordance with part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37404, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 24.53" NODE="27:1.0.1.1.19.3.333.24" TYPE="SECTION">
<HEAD>§ 24.53   Amending the dealer registration.</HEAD>
<P>Every proprietor registered as a dealer under § 24.52 must maintain a current and accurate application file under subpart D of this part. Whenever there is a change to any of the information provided in the proprietor's approved application, the proprietor must amend the application within the time period specified in subpart D of this part. An amendment of the proprietor's wine premises approved application will also amend the proprietor's dealer registration under § 24.52. The proprietor's dealer registration will also terminate when wine operations authorized under this part terminate.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37404, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 24.54" NODE="27:1.0.1.1.19.3.333.25" TYPE="SECTION">
<HEAD>§ 24.54   Dealer records.</HEAD>
<P>Every dealer is required to maintain records of transactions. Wine transactions that appear in the records required by subpart O of this part will meet the proprietor's recordkeeping requirements as a dealer. For other transactions not covered in the wine premises records, such as retail sales of distilled spirits or beer in a restaurant at the wine premises, or operations as a wholesale dealer in distilled spirits or beer, the proprietor must keep the records specified for dealers in part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5123)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37404, July 28, 2009]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="334" NODE="27:1.0.1.1.19.3.334" TYPE="SUBJGRP">
<HEAD>Assessments</HEAD>


<DIV8 N="§ 24.60" NODE="27:1.0.1.1.19.3.334.26" TYPE="SECTION">
<HEAD>§ 24.60   General.</HEAD>
<P>Where the appropriate TTB officer determines by examination of records, inventories, or otherwise that the proprietor has incurred liability for the tax on wine, distilled spirits, or special (occupational) tax, and the proprietor does not pay the tax upon notification of the liability, the tax will be assessed. 
</P>
<SECAUTH TYPE="N">(August 16, 1954, Ch. 736, 68A Stat. 767, as amended (26 U.S.C. 6201))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.61" NODE="27:1.0.1.1.19.3.334.27" TYPE="SECTION">
<HEAD>§ 24.61   Assessment of tax.</HEAD>
<P>When wine or spirits in bond are lost or destroyed (except wine or spirits on which the tax is not collectible by reason of the provisions of 26 U.S.C. 5008 or 26 U.S.C. 5370, as applicable) and the proprietor or other person liable for the tax on the wine or spirits fails to file a claim when required pursuant to § 24.29 or when the claim is denied, the tax will be assessed. In any case where wine is produced, imported, or received otherwise than as authorized by law, or where wine or spirits are removed, possessed, or knowingly used in violation of applicable law, or volatile fruit-flavor concentrate is sold, transported, or used in violation of law, the tax will be assessed. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1323, as amended, 1332, as amended, 1335, as amended, 1381, as amended, 1387, as amended, 1392, as amended (26 U.S.C. 5001, 5008, 5043, 5061, 5370, 5391, 5512))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)


</APPRO>
</DIV8>


<DIV8 N="§ 24.62" NODE="27:1.0.1.1.19.3.334.28" TYPE="SECTION">
<HEAD>§ 24.62   Notice.</HEAD>
<P>If an investigation or an examination of records discloses that liability for the tax on wine or distilled spirits, or special (occupational) tax has been incurred by the proprietor, the appropriate TTB officer will notify the proprietor by letter of the basis and the amount of the proposed assessment in order to afford the proprietor an opportunity to submit a protest, with supporting evidence, within 45 days, or to request a conference with regard to the tax liability. However, if collection of the tax liability may be jeopardized by a delay, the appropriate TTB officer may take immediate jeopardy assessment action pursuant to 26 U.S.C. 6862.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended (26 U.S.C. 5008, 5370, 6862))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0088)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="335" NODE="27:1.0.1.1.19.3.335" TYPE="SUBJGRP">
<HEAD>Claims</HEAD>


<DIV8 N="§ 24.65" NODE="27:1.0.1.1.19.3.335.29" TYPE="SECTION">
<HEAD>§ 24.65   Claims for wine or spirits lost or destroyed in bond.</HEAD>
<P>(a) <I>Claim for remission of tax on spirits.</I> All claims for remission of tax required by this part, relating to the loss or destruction of spirits in bond, will be filed with the appropriate TTB officer within 30 days of discovery of the loss. A claim filed under this paragraph will set forth the following information:
</P>
<P>(1) The name, registry number, and location of the distilled spirits plant which produced the spirits;
</P>
<P>(2) The serial numbers of the containers from which the spirits were lost, the quantity lost from each, and the total quantity of spirits covered by the claim;
</P>
<P>(3) The total amount of tax for which claim is filed;
</P>
<P>(4) The date of the loss or destruction (or, if not known, the date of discovery);
</P>
<P>(5) The nature and cause (if known) of the loss will be stated specifically and in sufficient detail to disclose all material facts and circumstances surrounding the loss;
</P>
<P>(6) If lost in transit, the name of the carrier and the points between which shipped; and
</P>
<P>(7) If lost by theft, evidence establishing that the loss did not occur as the result of negligence, connivance, collusion, or fraud on the part of the proprietor, owner, consignor, consignee, bailee or carrier, or the agents or employees of any of them.
</P>
<P>(b) <I>Claim for allowance of loss on wine.</I> A claim for allowance of loss required by this part, relating to the loss or destruction of wine in bond, will be filed with the appropriate TTB officer. A claim for allowance of loss for wine lost in transit, by fire or other casualty, or any other extraordinary or unusual losses, including a loss by theft, will be filed immediately. Any other claim for allowance of loss will be attached to and submitted with the TTB F 5120.17, Report of Bonded Wine Premises Operations, for the reporting period in which the inventory required by § 24.313 is taken or, in the case of discontinuance of the premises or change in proprietorship, to the final report filed. A claim filed under this paragraph will set forth the information required by paragraphs (a)(5) to (a)(7) of this section and, in addition, will set forth the following information:
</P>
<P>(1) The original volume of wine which sustained the loss, the tax class, the quantity of wine lost, and the percentage of wine lost;
</P>
<P>(2) Where the claim covers losses sustained at bonded wine premises during the tax year, the claimant shall state:
</P>
<P>(i) The quantities of wine on hand at the beginning of the tax year, received in bond during the tax year, and produced during the tax year;
</P>
<P>(ii) Where the percentage of loss is calculated separately by tax class, the volume of wine by tax class; and
</P>
<P>(iii) If effervescent wine is produced, the volume of wine produced by fermentation in bottles, by artificial carbonation, and by bulk processing; and
</P>
<P>(3) Claims covering losses of wine during transit in bond will show the volume lost from each container, the serial number, if any, and the volume shipped.
</P>
<P>(c) <I>Claim for abatement, credit or refund.</I> A claim for an abatement of an assessment under § 24.61, or credit or refund of tax which has been paid or determined, will be filed with the appropriate TTB officer in accordance with the provisions of this paragraph and the provisions of 27 CFR part 70, subpart F. A claim filed under this paragraph with respect to spirits, wine, or volatile fruit-flavor concentrate, will set forth the applicable information required by paragraphs (a) and (b) of this section. In addition, any claim filed under this paragraph will set forth the following information:
</P>
<P>(1) The date of the assessment for which abatement is claimed; and
</P>
<P>(2) The name, registry number, and address of the premises where the tax was assessed (or name, address, and title of any other person who was assessed the tax, if the tax was not assessed against the proprietor).
</P>
<P>(d) <I>Indemnification or recompense.</I> A claim filed under paragraph (a) or (b) of this section will specify whether the claimant has been or will be indemnified or recompensed for the spirits or wine lost and, if so, the amount and nature of indemnity or recompense and the actual value of the spirits or wine, less the tax.
</P>
<P>(e) <I>Supporting documents.</I> A claim filed under paragraph (a), (b), or (c) of this section will be supported by affidavits of persons having personal knowledge of the loss or destruction. In addition, if filed for tax on wine or spirits lost in transit, the claim will be supported by a copy of the carrier's bill of lading.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 5008, 5370, 5373))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1991, as amended by T.D. ATF-338, 58 FR 19063, Apr. 12, 1993; T.D. ATF-376, 61 FR 31030, June 19, 1996; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.66" NODE="27:1.0.1.1.19.3.335.30" TYPE="SECTION">
<HEAD>§ 24.66   Claims on wine returned to bond.</HEAD>
<P>(a) <I>General.</I> A claim for credit or refund, or relief from liability, of tax on wine returned to bonded wine premises will be filed with the appropriate TTB officer within six months after the date of the return of the wine to bond. A single claim may not be filed under this section for a quantity on which credit or refund of tax would be in an amount less than $25. This limitation does not apply with respect to any returned wine on which the six month period for filing a claim will expire.
</P>
<P>(b) <I>Filing.</I> A claim filed under this section will set forth the following information:
</P>
<P>(1) The kind, volume, and tax class of the wine;
</P>
<P>(2) As to each tax class, the amount of tax previously paid or determined; and
</P>
<P>(3) The date the wine was returned to bond.
</P>
<P>(c) <I>Indemnification or recompense.</I> A claim filed under this section will specify whether the claimant has been or will be indemnified or recompensed for the wine returned to bond and if so, the amount and nature of indemnity or recompense and the actual value of the wine, less the tax. 
</P>
<SECAUTH TYPE="N">(Sec. 201., Pub. L. 85-859, 72 Stat. 1332, as amended, 1380, as amended (26 U.S.C. 5044, 5361, 5371))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0030)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-130, 80 FR 55248, Sept. 15, 2015]


</CITA>
</DIV8>


<DIV8 N="§ 24.67" NODE="27:1.0.1.1.19.3.335.31" TYPE="SECTION">
<HEAD>§ 24.67   Other claims.</HEAD>
<P>The requirements with respect to a claim for:
</P>
<P>(a) Remission of tax on wine withdrawn without payment of tax under the provisions of § 24.292, and lost in transit to the port of export, vessel or aircraft, foreign-trade zone, customs bonded warehouse, or manufacturing bonded warehouse, as applicable, are contained in 27 CFR part 28.
</P>
<P>(b) Refund or credit of any tax imposed on wine or other liquors by 26 U.S.C. chapter 51, part I, subchapter A, on the grounds that an amount of tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that the amount was excessive, are contained in 27 CFR part 70 subpart F.
</P>
<P>(c) Payment of an amount equal to the internal revenue tax paid or determined and customs duties paid on wines or other liquors previously withdrawn, which are lost, rendered unmarketable, or condemned by a duly authorized official as a result of
</P>
<P>(1) A major disaster,
</P>
<P>(2) Fire, flood, casualty, or other disaster, or
</P>
<P>(3) Breakage, destruction, or damage (excluding theft) resulting from vandalism or malicious mischief, are found in 27 CFR part 70, subpart G.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-376, 61 FR 31030, June 19, 1996; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 24.68" NODE="27:1.0.1.1.19.3.335.32" TYPE="SECTION">
<HEAD>§ 24.68   Insurance coverage.</HEAD>
<P>The remission, abatement, refund, credit, or other relief, of taxes on wine or spirits provided for under this part will be allowed only to the extent that the claimant is not indemnified or recompensed for such tax by any valid claim of insurance or otherwise. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5064, 5371))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.69" NODE="27:1.0.1.1.19.3.335.33" TYPE="SECTION">
<HEAD>§ 24.69   Filing of claims.</HEAD>
<P>(a) <I>Claims.</I> All claims filed under this part for abatement, refund, credit, or remission of tax will be filed on TTB F 5620.8 (2635). Each claim filed under this part will:
</P>
<P>(1) Show the name, address, and title of the claimant;
</P>
<P>(2) Be signed by the claimant or the duly authorized agent of the claimant; and
</P>
<P>(3) Be executed under the penalties of perjury.
</P>
<P>(b) <I>Supporting documents.</I> Forms, supporting statements, and any other documents required by this part to be submitted with a claim will be attached to the claim and be considered a part of the claim. The appropriate TTB officer may require the submission of additional evidence in support of any claim filed under this part. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5064, 5370))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.70" NODE="27:1.0.1.1.19.3.335.34" TYPE="SECTION">
<HEAD>§ 24.70   Claims for credit of tax.</HEAD>
<P>Claims for credit of tax, as provided in this part, may be filed after determination of the tax whether or not the tax has been paid. Where a claim for credit of tax is filed, the claimant shall, upon receipt of notification of allowance of credit from the appropriate TTB officer, make an adjusting entry on the next tax return (or returns) to the extent necessary to exhaust the credit. The claimant shall also make an explanatory statement on each tax return specifically identifying the notification of allowance of credit. The claimant may not anticipate allowance of a credit or make an adjusting entry in a tax return until TTB has acted on the claim.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1332, as amended, 1335, as amended, 1381, as amended, 1395, as amended (26 U.S.C. 5043, 5044, 5061, 5370, 5555))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="336" NODE="27:1.0.1.1.19.3.336" TYPE="SUBJGRP">
<HEAD>Tax Exempt Wine</HEAD>


<DIV8 N="§ 24.75" NODE="27:1.0.1.1.19.3.336.35" TYPE="SECTION">
<HEAD>§ 24.75   Wine for personal or family use.</HEAD>
<P>(a) <I>General.</I> Any adult may, without payment of tax, produce wine for personal or family use and not for sale.
</P>
<P>(b) <I>Quantity.</I> The aggregate amount of wine that may be produced exempt from tax with respect to any household may not exceed:
</P>
<P>(1) 200 gallons per calendar year for a household in which two or more adults reside, or
</P>
<P>(2) 100 gallons per calendar year if there is only one adult residing in the household.
</P>
<P>(c) <I>Definition of an adult.</I> For the purposes of this section, an adult is any individual who is 18 years of age or older. However, if the locality in which the household is located has established by law a greater minimum age at which wine may be sold to individuals, the term “adult” will mean an individual who has attained that age.
</P>
<P>(d) <I>Proprietors of bonded wine premises.</I> Any adult, defined in § 24.75(c), who operates a bonded wine premises as an individual owner or in partnership with others, may produce wine and remove it from the bonded wine premises free of tax for personal or family use, subject to the limitations in § 24.75(b).
</P>
<P>(e) <I>Limitation.</I> This exemption should not in any manner be construed as authorizing the production of wine in violation of applicable State or local law. Except as provided in § 24.75(d), this exemption does not otherwise apply to partnerships, corporations, or associations.
</P>
<P>(f) <I>Removal.</I> Wine produced under this section may be removed from the premises where made for personal or family use including use at organized affairs, exhibitions or competitions, such as home winemaker's contests, tastings or judgings, but may not under any circumstances be sold or offered for sale. The proprietor of a bonded wine premises shall pay the tax on any wine removed for personal or family use in excess of the limitations provided in this section and shall also enter all quantities removed for personal or family use on TTB F 5120.17, Report of Bonded Wine Premises Operations. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5042))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0216)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1991, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. ATF-344, 58 FR 40354, July 28, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 24.76" NODE="27:1.0.1.1.19.3.336.36" TYPE="SECTION">
<HEAD>§ 24.76   Tax exempt cider.</HEAD>
<P>Cider, when produced solely from the noneffervescent fermentation of apple juice without the use of any preservative method or material, and when produced at a place other than a bonded wine premises and sold or offered for sale as cider, and not as wine or as a substitute for wine, is not subject to the tax on wine, or to the provisions of this part. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5042))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.77" NODE="27:1.0.1.1.19.3.336.37" TYPE="SECTION">
<HEAD>§ 24.77   Experimental wine.</HEAD>
<P>(a) <I>General.</I> Any scientific university, college of learning, or institution of scientific research may, without payment of tax, produce, receive, blend, treat, and store wine for experimental or research use, but not for consumption (other than organoleptic tests) or sale, and may receive wine spirits without payment of tax in quantities as may be necessary for the production of wine.
</P>
<P>(b) <I>Qualification.</I> An institution that wants to conduct experimental wine operations must apply in letter form to the appropriate TTB officer. The application will show the name and address of the institution, the nature, extent, and purpose of the operations to be conducted, describe the operations and equipment and the location at which operations will be conducted (including identification of the building or buildings, or portions thereof, to be used), and the security measures to be provided. If wine spirits are to be used, that fact will be stated together with the estimated annual requirements in proof gallons. A secure place of storage under lock will be provided for such spirits and will be described in the application. The applicant must, when required by the appropriate TTB officer, furnish as part of the application, additional information that may be necessary to determine whether the application should be approved. Operations may not begin until authorized by the appropriate TTB officer.
</P>
<P>(c) <I>Procurement of spirits.</I> Where the approved application provides for the use of wine spirits in experimental wine operations, such spirits may be procured to the extent stated in the approved qualifying application. However, an application will be filed with the appropriate TTB officer and authorization obtained for each wine spirits procurement.
</P>
<P>(d) <I>Records.</I> All approved qualifying documents and applications will be retained in the files of the institution and will be exhibited on request to appropriate TTB officers. No reports concerning wine or wine spirits need be filed unless required by appropriate TTB officer, but records appropriate to the experiments to be conducted and records documenting the disposition of the wine and wine spirits will be retained and will be made available for inspection by appropriate TTB officers. If wine spirits are used, the records will show the quantities of spirits received and used each day.
</P>
<P>(e) <I>Discontinuance.</I> When an institution discontinues experimental wine operations, all remaining wine or wine spirits will be disposed of either by destruction or shipment to premises authorized to receive wine or wine spirits. A letter application will be filed with the appropriate TTB officer and authorization obtained prior to the destruction or shipment of the wine or wine spirits. When the authorized destruction or shipment has been completed, a letter notification will be sent to the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5042))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0292 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="337" NODE="27:1.0.1.1.19.3.337" TYPE="SUBJGRP">
<HEAD>Formulas</HEAD>


<DIV8 N="§ 24.80" NODE="27:1.0.1.1.19.3.337.38" TYPE="SECTION">
<HEAD>§ 24.80   General.</HEAD>
<P>The proprietor shall, before production, obtain approval of the formula and process by which special natural wine, agricultural wine, and other than standard wine (except distilling material or vinegar stock) are to be made. The formula must be prepared and filed on TTB F 5120.29, Formula and Process for Wine, in accordance with the instructions on the form. A nonbeverage wine formula will show the intended use of the finished wine or wine product. Any formula approved under this section will remain in effect until revoked, superseded, or voluntarily surrendered. Except for research, development, and testing, no special natural wine, agricultural wine, or, if required to be covered by an approved formula, wine other than standard wine may be produced prior to approval by the appropriate TTB officer of a formula covering each ingredient and process (if the process requires approval) used in the production of the product. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended, 1386, as amended, 1395, as amended (26 U.S.C. 5361, 5367, 5386, 5387, 5555))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.81" NODE="27:1.0.1.1.19.3.337.39" TYPE="SECTION">
<HEAD>§ 24.81   Filing of formulas.</HEAD>
<P>The proprietor shall on each formula filed designate all ingredients and, if required, describe each process used to produce the wine. The addition or elimination of ingredients, changes in quantities used, and changes in the process of production, or any other change in an approved formula, will require the filing of a new TTB F 5120.29. After a change in formula is approved, the original formula must be surrendered to the appropriate TTB officer. The proprietor shall serially number each formula, commencing with “1” and continuing thereafter in numerical sequence. Nonbeverage wine formulas will be prefixed with the symbol “NB.” The appropriate TTB officer may at any time require the proprietor to file a statement of process in addition to that required by the TTB F 5120.29 or any other data to determine whether the formula should be approved or the approval continued. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5367, 5555))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.82" NODE="27:1.0.1.1.19.3.337.40" TYPE="SECTION">
<HEAD>§ 24.82   Samples.</HEAD>
<P>Except for vinegar and salted wine as defined in § 24.215, the proprietor shall submit under separate cover at the time of filing any nonbeverage wine formula a 750 mL sample of the base wine used and a 750 mL sample of the finished wine or wine product. The latter sample will be considered representative of the finished product. Any material change in the flavor or other characteristics of the finished product from that of the approved sample will require the filing of a new formula even though the ingredients may be the same. In addition, the appropriate TTB officer may, at any time, require the proprietor to submit samples of any wine or wine product made in accordance with an approved formula or of any materials used in production.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="338" NODE="27:1.0.1.1.19.3.338" TYPE="SUBJGRP">
<HEAD>Essences</HEAD>


<DIV8 N="§ 24.85" NODE="27:1.0.1.1.19.3.338.41" TYPE="SECTION">
<HEAD>§ 24.85   Essences.</HEAD>
<P>Essences or extracts (preparations of natural constituents extracted from fruit, herbs, berries, wood, etc.) may be used in the production of any formula wine except agricultural wine. The essences may be produced on wine premises or elsewhere. Where an essence contains spirits, use of the essence may not increase the volume of the wine more than 10 percent nor its alcohol content more than four percent by volume. 


</P>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-185, 87 FR 51896, Aug. 24, 2022]




</CITA>
</DIV8>


<DIV8 N="§ 24.86" NODE="27:1.0.1.1.19.3.338.42" TYPE="SECTION">
<HEAD>§ 24.86   Essences produced on wine premises.</HEAD>
<P>Wine, taxpaid spirits, or spirits withdrawn tax-free may be used in the production of essences on wine premises. The description of the process for producing the essence may be included as part of a formula for the production of a formula wine or a separate formula may be filed on TTB F5120.29. If a separate formula is filed for the essence, the serial number of the formula by which it is produced will be shown in the TTB F 5120.29 covering the formula wine in which it is to be used. If an essence is to be made in quantities greater than required for individual lots of formula wine, and stored on the premises, a separate formula will be filed for the essence. Essences made on wine premises with wine spirits withdrawn free of tax pursuant to 26 U.S.C. 5214(a)(5) may only be used in the production of a formula wine, and may not be removed from the premises where made. Essences made on wine premises with the use of tax-free spirits withdrawn free of tax pursuant to 26 U.S.C. 5214(a)(13) may only be used in the production of a nonbeverage wine or wine product and may not be removed from the premises where made. The TTB F 5120.29 for the production of an essence is filed in the same manner as for the production of formula wine and a sample of the essence produced will be at least four fluid ounces. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)


</APPRO>
</DIV8>


<DIV8 N="§ 24.87" NODE="27:1.0.1.1.19.3.338.43" TYPE="SECTION">
<HEAD>§ 24.87   Essences made elsewhere.</HEAD>
<P>Before an essence not made on wine premises may be used in the production of formula wine, the manufacturer of the essence shall obtain approval from the appropriate TTB officer. The request for approval will identify the essence by name or number and by the name of the manufacturer, and a sample of at least four fluid ounces of the essence will be submitted. However, a request for approval and submission of a sample is not required if the essence is made pursuant to approval of a formula on TTB F 5530.5, Formula and Process for Nonbeverage Product. Essences made under an approved formula on TTB F 5530.5 will be described on TTB F 5120.29 by showing the name of the manufacturer, the manufacturer's nonbeverage drawback formula number, and the date of approval by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="339" NODE="27:1.0.1.1.19.3.339" TYPE="SUBJGRP">
<HEAD>Conveyance of Wine or Spirits on Wine Premises</HEAD>


<DIV8 N="§ 24.90" NODE="27:1.0.1.1.19.3.339.44" TYPE="SECTION">
<HEAD>§ 24.90   Taxpaid products.</HEAD>
<P>Taxpaid wine or other taxpaid products may be conveyed across bonded wine premises, but may neither be stored nor allowed to remain on bonded wine premises and will be kept separate from untaxpaid wine or spirits. However, upon payment or determination of the tax, bulk wine may remain on bonded wine premises until the close of the business day following the day the tax was paid or determined, respectively, or the bonded wine premises on which the tank is located may be alternated as taxpaid wine premises. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5365))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.91" NODE="27:1.0.1.1.19.3.339.45" TYPE="SECTION">
<HEAD>§ 24.91   Conveyance of untaxpaid wine or spirits.</HEAD>
<P>Untaxpaid wine or spirits may be conveyed between different portions of the same bonded wine premises. Untaxpaid wine or spirits may also be conveyed by uninterrupted transportation over any public thoroughfare, or over a private roadway if the owner or lessee of the roadway agrees, in writing, to allow appropriate TTB officers access to the roadway to perform their official duty. The conveyance of wine or spirits as authorized in this section is subject to the following conditions:
</P>
<P>(a) The untaxpaid wine or spirits are not stored or allowed to remain on any premises other than bonded wine premises;
</P>
<P>(b) The untaxpaid wine or spirits are kept completely separate from taxpaid wine or spirits; and
</P>
<P>(c) A description of the means and route of conveyance and of the portions of the bonded wine premises between which wine or spirits will be conveyed, as well as a copy of any agreement furnished by the owner or lessee of a private roadway, have been submitted to and approved by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1381, as amended (26 U.S.C 5357, 5365))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.92" NODE="27:1.0.1.1.19.3.339.46" TYPE="SECTION">
<HEAD>§ 24.92   Products in customs custody.</HEAD>
<P>Products in customs custody may be conveyed across bonded wine premises subject to the following conditions:
</P>
<P>(a) The products are not stored or allowed to remain on bonded wine premises beyond the close of the business day; and
</P>
<P>(b) The products in customs custody are kept separate from wine and spirits on bonded wine premises. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C 5357, 5361, 5365))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="340" NODE="27:1.0.1.1.19.3.340" TYPE="SUBJGRP">
<HEAD>Samples</HEAD>


<DIV8 N="§ 24.95" NODE="27:1.0.1.1.19.3.340.47" TYPE="SECTION">
<HEAD>§ 24.95   General.</HEAD>
<P>Wine or wine spirits may be withdrawn free of tax from a bonded wine premises for use by or for the account of the proprietor or the agents of the proprietor, for analysis or testing, organoleptically or otherwise. Wine or wine spirits may be used for testing purposes, and wine may be used for tasting or sampling on bonded wine premises free of tax.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1382, as amended (26 U.S.C. 5362, 5372, 5373))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.96" NODE="27:1.0.1.1.19.3.340.48" TYPE="SECTION">
<HEAD>§ 24.96   Use off premises.</HEAD>
<P>The proprietor may remove samples of wine or wine spirits free of tax for analysis or testing purposes.
</P>
<P>(a) <I>Size.</I> The size of each sample may not be more than one liter for each lot of wine or wine spirits to be analyzed or tested unless the appropriate TTB officer authorizes a larger quantity.
</P>
<P>(b) <I>Disposition of samples.</I> Remnants or residues of samples remaining after analysis or testing, and which are not retained as specimens, will be destroyed or returned to bonded wine premises. Free of tax samples or residues may not be consumed or sold.
</P>
<P>(c) <I>Records.</I> The proprietor shall maintain records of all samples taken for analysis or testing, showing the size of each sample, the kind of wine or wine spirits, date of removal, and the name and address to where sent.
</P>
<P>(d) <I>Labeling of samples.</I> Each sample taken for analysis or testing will be labeled “Sample for Analysis Only”. The label will show the name, address, and registry number of the bonded wine premises, date, and the kind of wine or wine spirits.
</P>
<P>(e) <I>Limitation.</I> The tax will be collected on any wine or wine spirits withdrawn under this section which are used or disposed of for purposes other than as authorized. When the quantity of wine or wine spirits withdrawn under this section exceeds the amount necessary for the purpose intended the tax will be collected on such excess.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 5362, 5367, 5368, 5373))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0298 and 1512-0503)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.97" NODE="27:1.0.1.1.19.3.340.49" TYPE="SECTION">
<HEAD>§ 24.97   Use on premises.</HEAD>
<P>(a) <I>Analysis or testing.</I> The proprietor may take samples of wine or wine spirits free of tax for analysis or testing on bonded wine premises. The proprietor shall maintain records showing the size, kind of wine or wine spirits, date, and disposition of each sample retained as a laboratory specimen. The label of each sample retained as a laboratory specimen will be marked “Sample for Analysis Only” and will show the kind of wine or wine spirits.
</P>
<P>(b) <I>Tasting.</I> The proprietor may take samples of wine free of tax for organoleptic tasting on bonded wine premises. If a room or area is set aside for public tasting purposes, a record will be maintained showing the date, quantity and kind of wine transferred to the room or area for tasting.
</P>
<P>(c) <I>Limitation.</I> The tax will be collected on any wine or wine spirits withdrawn under this section which are used or disposed of for purposes other than as authorized. When the quantity of wine or wine spirits withdrawn under this section exceeds the amount necessary for the purpose intended the tax will be collected on such excess. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5362, 5372))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0298 and 1512-0503)


</APPRO>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.19.4" TYPE="SUBPART">
<HEAD>Subpart D—Establishment and Operations</HEAD>


<DIV8 N="§ 24.100" NODE="27:1.0.1.1.19.4.341.1" TYPE="SECTION">
<HEAD>§ 24.100   General.</HEAD>
<P>Each person desiring to conduct operations in wine production, as specified in § 24.101(b), (other than the production of wine free of tax as provided in §§ 24.75 through 24.77) shall, prior to commencing operations, establish wine premises, make application as provided in § 24.105, file any required bond, and receive permission to operate wine premises as provided in this part. After approval, the wine premises will be designated a bonded winery, bonded wine cellar or taxpaid wine bottling house. As provided in § 24.107, the designated bonded winery will be used if production operations are to be conducted. In addition, wine premises may be used, in accordance with the provisions of this part, for the conduct of certain other operations.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351, 5352))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999; T.D. TTB-146, 82 FR 1123, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV7 N="341" NODE="27:1.0.1.1.19.4.341" TYPE="SUBJGRP">
<HEAD>Premises and Operations</HEAD>


<DIV8 N="§ 24.101" NODE="27:1.0.1.1.19.4.341.2" TYPE="SECTION">
<HEAD>§ 24.101   Bonded wine premises.</HEAD>
<P>(a) <I>General.</I> A person desiring to conduct operations involving untaxpaid wine, including the use of spirits in wine production, shall file an application and any required bond as provided in § 24.105. Further, a warehouse company or other person may, upon obtaining the consent of the proprietor and the surety on the bond (if a bond is required) and upon filing an application, as provided in § 24.108, and receiving approval, establish at the wine premises a bonded wine warehouse for the storage of wine and allied products for credit purposes.
</P>
<P>(b) <I>Authorized operations.</I> Except as provided in this part, no operation may be conducted on bonded wine premises other than those authorized. The following operations are authorized:
</P>
<P>(1) The receipt, production, blending, cellar treatment, storage, and bottling or packing of untaxpaid wine;
</P>
<P>(2) The use of wine spirits in beverage wine production and the use of spirits in nonbeverage wine production;
</P>
<P>(3) The receipt, preparation, use, or removal of fruit, concentrated or unconcentrated fruit juice, or other materials to be used in the production or cellar treatment of wine; and
</P>
<P>(4) The preparation, storage, or removal of commercial fruit products and by-products (including volatile fruit-flavor concentrate) not taxable as wine. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1380, as amended (26 U.S.C. 5351, 5353, 5361))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999; T.D. TTB-146, 82 FR 1123, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.102" NODE="27:1.0.1.1.19.4.341.3" TYPE="SECTION">
<HEAD>§ 24.102   Premises established for taxpaid wine operations.</HEAD>
<P>A person desiring to bottle or pack taxpaid United States or foreign wine shall file an application as provided in § 24.105 to establish a taxpaid wine bottling house premises. A person desiring to conduct taxpaid United States or foreign wine operations, other than bottling or packing taxpaid wine, at bonded wine premises shall include in their application, as provided in § 24.109, the establishment of taxpaid wine premises.
</P>
<P>(a) <I>Taxpaid wine premises.</I> Premises on which taxpaid United States or foreign wine may be received and stored, or blended with wine of the same kind and tax class, or reconditioned, and removed.
</P>
<P>(b) <I>Taxpaid wine bottling house premises.</I> Premises on which taxpaid United States or foreign wine may be received, stored, mixed with wine of the same kind, tax class and country of origin to facilitate handling, reconditioned, bottled or packed, and removed. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1381, as amended (26 U.S.C. 5352, 5363))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)


</APPRO>
</DIV8>


<DIV8 N="§ 24.103" NODE="27:1.0.1.1.19.4.341.4" TYPE="SECTION">
<HEAD>§ 24.103   Other operations.</HEAD>
<P>Upon the specific approval of the appropriate TTB officer, other operations not provided for in this part may be conducted on wine premises. Authority to conduct other operations may be obtained by submitting an application to the appropriate TTB officer. The application must specifically describe the operation to be conducted and the wine premises and equipment to be used. An appropriate TTB officer may make any inquiry necessary to determine whether the conduct of other operations on wine premises would jeopardize the revenue, conflict with wine operations, or be contrary to law. Other operations authorized under this section will be conducted in accordance with the conditions, limitations, procedures, and terms stated in the approved application. Authority to conduct other operations may be withdrawn whenever the appropriate TTB officer determines the conduct of the other operations on wine premises jeopardizes the revenue, conflicts with wine operations, or is contrary to law.
</P>
<CITA TYPE="N">[T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="342" NODE="27:1.0.1.1.19.4.342" TYPE="SUBJGRP">
<HEAD>Application</HEAD>


<DIV8 N="§ 24.105" NODE="27:1.0.1.1.19.4.342.5" TYPE="SECTION">
<HEAD>§ 24.105   General.</HEAD>
<P>A person desiring to establish a bonded winery, bonded wine cellar or taxpaid wine bottling house shall file an application on TTB F 5120.25, Application to Establish and Operate Wine Premises. Approval of TTB F 5120.25 will constitute authorization for the proprietor to operate. 

The premises may not be used for the conduct of operations under this part unless the proprietor has a valid approved application for the operations. 

The application will be executed under the penalties of perjury and all written statements, affidavits, and any document incorporated by reference will be considered a part of the application.

 In any instance where a bond is required to be given under § 24.146 or a permit obtained to engage in an operation, the currently approved application will not be valid with respect to that operation if the bond or permit is no longer in effect. 



In this case, the proprietor shall again file an application and obtain approval before engaging in operations at the wine premises. A new application is not required when a strengthening bond is filed pursuant to § 24.153 or a new bond or superseding bond is filed pursuant to § 24.154. The appropriate TTB officer may require the filing of a new or an amended application in any instance where the currently approved application is inadequate or incorrect in any respect.
</P>
<SECAUTH TYPE="N">(August 16, 1954, Ch. 736, 68A Stat. 749, as amended (26 U.S.C. 6065); sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1392, as amended (26 U.S.C. 5356, 5511))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.106" NODE="27:1.0.1.1.19.4.342.6" TYPE="SECTION">
<HEAD>§ 24.106   Basic permit requirements.</HEAD>
<P>Any person intending to engage in the business of producing or blending wine or purchasing wine for resale at wholesale is required under the Federal Alcohol Administration Act, as amended (49 Stat. 978; 27 U.S.C. 203) to obtain a basic permit. A State, a political subdivision of a State, or officers or employees of a State or political subdivision acting in their official capacity are exempted from this requirement. The issuance of a basic permit under the Act is governed by regulations in 27 CFR part 1. Where a basic permit is required to engage in an operation, an application for a basic permit will be filed at the time of filing an original or amended application on TTB F 5120.25. Operations requiring a basic permit may not be conducted until the basic permit application is approved. No Wine Producer's and Blender's Basic Permit or Wine Blender's Basic Permit is required for a bonded wine cellar established only for the purpose of storing untaxpaid wine even though an approved application, TTB F 5120.25, and bond are required. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.107" NODE="27:1.0.1.1.19.4.342.7" TYPE="SECTION">
<HEAD>§ 24.107   Designation as a bonded winery.</HEAD>
<P>Bonded wine premises which will be used for the production of wine or for production processes involving the use of wine will be designated a bonded winery unless the proprietor applies for a bonded wine cellar designation. If the proprietor of a bonded wine premises designated as a bonded winery does not engage in wine production operations, the appropriate TTB officer may notify the proprietor that the designation of the premises is changed from a bonded winery to a bonded wine cellar. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.108" NODE="27:1.0.1.1.19.4.342.8" TYPE="SECTION">
<HEAD>§ 24.108   Bonded wine warehouse application.</HEAD>
<P>A warehouse company or other person desiring to establish a bonded wine warehouse on bonded wine premises for storing wine or allied products for credit purposes shall file an application, in letter form, with the appropriate TTB officer. The name and address of the applicant and of the bonded wine premises, and the approximate area and storage capacity (in gallons) of the bonded wine warehouse, will be stated in the application. The application will be accompanied by a signed statement from the proprietor of the bonded wine premises requesting the establishment of the warehouse, and the consent of the surety of the bond for the bonded wine premises. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5353))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.109" NODE="27:1.0.1.1.19.4.342.9" TYPE="SECTION">
<HEAD>§ 24.109   Data for application.</HEAD>
<P>The TTB F 5120.25 is prepared in accordance with the instructions on the form and will include the following, as applicable:
</P>
<P>(a) Serial number;
</P>
<P>(b) Name and principal business address of the applicant and the address of the wine premises if different from the business address;
</P>
<P>(c) Statement of the type of business organization and of each person having an interest in the business, supported by the items of information listed in § 24.110;
</P>
<P>(d) Indicate whether the application is for the purpose of establishing a bonded winery, bonded wine cellar, or taxpaid wine bottling house. Also, indicate whether a taxpaid wine premises is to be established if the application is for a bonded winery or bonded wine cellar;
</P>
<P>(e) List of the offices, the incumbents of which are authorized by the articles of incorporation or the board of directors to act on behalf of the proprietor or to sign the applicant's name;
</P>
<P>(f) Description of the premises (see § 24.111);
</P>
<P>(g) Trade names (see § 24.112);
</P>
<P>(h) Description of spirits operations;
</P>
<P>(i) With respect to wine premises to which the application relates, a list of the applicant's basic permits and bonds (including those filed with the application) showing the name of the surety for each bond;
</P>
<P>(j) Description of volatile fruit-flavor concentrate operations (see § 24.113);
</P>
<P>(k) If other operations not specifically authorized by this part are to be conducted on wine premises, a description of the operations, a list of the premises, and a statement as to the relationship, if any, of the operation to wine operations on wine premises. If any of the information required by paragraph (c) of this section is on file with the appropriate TTB officer in connection with any other premises operated by the applicant, that information, if accurate and complete, may be incorporated by reference and made a part of the application. In this case, the name, address, and if any, registry number of the premises where the information is filed will be stated in the application. 
</P>
<P>(l) A statement whether the applicant is required to furnish a bond under § 24.146; and
</P>
<P>(m) The applicant shall, when required by the appropriate TTB officer, furnish as part of the application, additional information as may be necessary to determine whether the application should be approved. If any of the submitted information changes during the pending application, the applicant shall immediately notify the appropriate TTB officer of the revised information.


</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1392, as amended (26 U.S.C. 5356, 5361, 5511))


</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0009)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017; T.D. TTB-159, 85 FR 33542, June 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 24.110" NODE="27:1.0.1.1.19.4.342.10" TYPE="SECTION">
<HEAD>§ 24.110   Organizational documents.</HEAD>
<P>The supporting information required by paragraph (c) of § 24.109, includes, as applicable, copies of:
</P>
<P>(a) <I>Corporate documents.</I> (1) Corporate charter or a certificate of corporate existence or incorporation.
</P>
<P>(2) List of the directors and officers, showing their names and addresses.
</P>
<P>(3) Certified extracts or digests of minutes of meetings of the board of directors, authorizing certain individuals to sign for the corporation.
</P>
<P>(4) Statement showing the number of shares of each class of stock or other evidence of ownership, authorized and outstanding, and the voting rights of the respective owners or holders of stock.
</P>
<P>(b) <I>Articles of partnership.</I> True copies of the articles of partnership, if any, and of the certificate of partnership or association.
</P>
<P>(c) <I>Statement of interest.</I> (1) Names and addresses of the 10 persons having the largest ownership or other interest in each of the classes of stock in the corporation, or other legal entity, and the nature and amount of the stockholding or other interest of each, whether the interest appears in the name of the interested party or in the name of another party. If a corporation is wholly-owned or controlled by another corporation, those persons of the parent corporation who meet the above standards are considered to be the persons interested in the business of the subsidiary, and the names thereof need to be furnished only upon the request of the appropriate TTB officer.
</P>
<P>(2) In the case of an individual owner or partnership, the name and address of each person interested in the wine premises, whether the interest appears in the name of the interested party or in the name of another for that person.
</P>
<P>(d) <I>Availability of additional corporate documents.</I> The originals of documents required to be submitted under this section and additional documents that may be required by the appropriate TTB officer (such as articles of incorporation, bylaws, and any certificate issued by a State authorizing operations) must be made available to any appropriate TTB officer upon request.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.111" NODE="27:1.0.1.1.19.4.342.11" TYPE="SECTION">
<HEAD>§ 24.111   Description of premises.</HEAD>
<P>The application will include a description of each tract of land comprising wine premises. The description will be by directions and distances, in feet and inches (or hundredths of feet), with sufficient particularity to enable ready determination of the bounds of the wine premises. When required by the appropriate TTB officer, a diagram of the wine premises, drawn to scale, will be furnished. The description will clearly indicate any area of the wine premises to be used as bonded wine premises, used as taxpaid wine premises, or alternated for use as bonded wine premises and taxpaid wine premises. The means employed to afford security and protect the revenue will be described. If required by the appropriate TTB officer to segregate operations within the premises, the manner by which the operations are segregated will be described. Each building on wine premises will be described as to size, construction, and use. Buildings on wine premises which will not be used for wine operations will be described only as to size and use. If the wine premises consist of a part of a building, the rooms or floors will be separately described. The activities conducted in the adjoining portions of the building and the means of ingress and egress from the wine premises will be described.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1381, as amended (26 U.S.C. 5356, 5357, 5365))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.112" NODE="27:1.0.1.1.19.4.342.12" TYPE="SECTION">
<HEAD>§ 24.112   Name of proprietor and trade names.</HEAD>
<P>The applicant shall list on the application, TTB F 5120.25, the proprietor's name or the operating trade name, if different than the proprietor's name, and any bottling or packing trade names. However, if a bottling or packing trade name is listed on a basic permit issued to the proprietor under the Federal Alcohol Administration Act (49 Stat 978; 27 U.S.C. 204), that trade name is not required to be listed again on the application. If State or local law requires the registration of a trade name, the applicant shall certify that each trade name listed on the application is so registered. A trade name may not be used prior to approval of the application or issuance of a basic permit covering the use of the name. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)


</APPRO>
</DIV8>


<DIV8 N="§ 24.113" NODE="27:1.0.1.1.19.4.342.13" TYPE="SECTION">
<HEAD>§ 24.113   Description of volatile fruit-flavor concentrate operations.</HEAD>
<P>Each applicant intending to produce volatile fruit-flavor concentrate shall include on the TTB F 5120.25 application a step-by-step description of the production procedure to be employed. The description will commence with the obtaining of juice from the fruit and continue through each step of the process to removal of volatile fruit-flavor concentrate from the system. If volatile fruit-flavor concentrate containing more than 24 percent alcohol (high-proof concentrates (essences)) is to be produced, the proprietor shall indicate any step in the production procedure at which any spirits may be fit for beverage purposes. The maximum quantity in gallons of fruit must used and volatile fruit-flavor concentrate produced in 24 hours, the maximum and minimum fold, and the maximum percent of alcohol in the volatile fruit-flavor concentrate will be stated for each kind of fruit used. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1392, as amended (26 U.S.C. 5356, 5361, 5511))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 24.114" NODE="27:1.0.1.1.19.4.342.14" TYPE="SECTION">
<HEAD>§ 24.114   Registry of stills.</HEAD>
<P>Any still intended for use in the production of volatile fruit-flavor concentrate will be set up on bonded wine premises. Each still is subject to the provisions of subpart C of part 29 of this chapter and will be registered. The listing of a still in the application, and the approval of the application, will, as provided in 27 CFR 29.55, constitute registration. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended, 1379, as amended, 1392, as amended (26 U.S.C. 5179, 5356, 5511))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999; T.D. ATF-462, 66 FR 42737, Aug. 15, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 24.115" NODE="27:1.0.1.1.19.4.342.15" TYPE="SECTION">
<HEAD>§ 24.115   Registry number.</HEAD>
<P>Upon approval of the application, the appropriate TTB officer will assign a registry number to the bonded winery, bonded wine cellar, or taxpaid wine bottling house. The registry number will be used in all correspondence and on all documents filed subsequently in connection with the operation of the premises and will be shown where required on labels and markings of containers or cases filled at the wine premises.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0058 and 1512-0503)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.116" NODE="27:1.0.1.1.19.4.342.16" TYPE="SECTION">
<HEAD>§ 24.116   Powers of attorney.</HEAD>
<P>The proprietor shall file with the appropriate TTB officer a power of attorney for each person authorized to sign or to act on behalf of the proprietor as an attorney-in-fact. A power of attorney is not required for any person whose authority has been furnished in the application. If not limited in duration, the power of attorney will continue in effect until written notice of revocation is received by the appropriate TTB officer or operations are terminated.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.117" NODE="27:1.0.1.1.19.4.342.17" TYPE="SECTION">
<HEAD>§ 24.117   Maintenance of application file.</HEAD>
<P>The proprietor shall maintain an application file with the information required by § 24.109 in complete and current condition, readily available at the wine premises for inspection by appropriate TTB officers.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356, 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="343" NODE="27:1.0.1.1.19.4.343" TYPE="SUBJGRP">
<HEAD>Changes Subsequent to Original Establishment</HEAD>


<DIV8 N="§ 24.120" NODE="27:1.0.1.1.19.4.343.18" TYPE="SECTION">
<HEAD>§ 24.120   Amended application.</HEAD>
<P>Where there is a change in any of the information included in the current approved application, the proprietor shall, within 30 days of the change (except as otherwise provided in this part), submit an amended application to the appropriate TTB officer and set forth the information necessary to make the application file accurate and current. Where the change affects only pages or parts of pages of the current application, as many complete pages as will enable the replacement of the pages affected and maintenance of the file as provided in § 24.117 will be submitted. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.121" NODE="27:1.0.1.1.19.4.343.19" TYPE="SECTION">
<HEAD>§ 24.121   Changes affecting permits.</HEAD>
<P>The proprietor shall follow the provisions of 27 CFR part 1 to effect any change pertaining to a permit issued under the Federal Alcohol Administration Act.
</P>
<SECAUTH TYPE="N">(49 Stat. 978; 27 U.S.C. 203).


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.122" NODE="27:1.0.1.1.19.4.343.20" TYPE="SECTION">
<HEAD>§ 24.122   Change in name of proprietor or trade name.</HEAD>
<P>Where there is to be a change in the name of the proprietor or operating trade name, the proprietor shall file an amended application and, if a basic permit has been issued under the Federal Alcohol Administration Act (49 Stat. 978; 27 U.S.C. 203), an application for amendment of the basic permit. Where there is a change in or addition of a trade name, the proprietor shall file an amended application or, if a basic permit has been issued under the Federal Alcohol Administration Act (49 Stat. 978; 27 U.S.C. 203), an application for amendment of the basic permit. Operations under a new name may not be conducted before approval of the amended application or issuance of an amended permit, as the case may be. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)


</APPRO>
</DIV8>


<DIV8 N="§ 24.123" NODE="27:1.0.1.1.19.4.343.21" TYPE="SECTION">
<HEAD>§ 24.123   Change in stockholders.</HEAD>
<P>If there is a change in the list of stockholders furnished under the provisions of § 24.110(c)(1), the proprietor may, in lieu of submission within 30 days of the change under the provisions of § 24.120, submit a new list of stockholders annually on May 1, or any other approved date, to the appropriate TTB officer which has on file the list of stockholders, provided the sale or transfer of capital stock does not result in a change in the control or management of the business.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.124" NODE="27:1.0.1.1.19.4.343.22" TYPE="SECTION">
<HEAD>§ 24.124   Change in corporate officers.</HEAD>
<P>Where there is any change in the list of corporate officers furnished under the provisions of § 24.110(a)(2), the proprietor shall submit, within 30 days of the change, an amended application supported by a new list of corporate officers and a statement of the changes reflected in the new list. Where the proprietor has shown that certain corporate officers listed on the original application have no responsibilities in connection with the operations covered by the application, the appropriate TTB officer may waive the requirement for submitting an amended application to cover a change in those corporate officers. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.125" NODE="27:1.0.1.1.19.4.343.23" TYPE="SECTION">
<HEAD>§ 24.125   Change in proprietorship.</HEAD>
<P>(a) <I>General.</I> If there is a change in the proprietorship of wine premises qualified to operate under this part, the outgoing proprietor shall comply with the requirements of § 24.140, and the successor shall, before commencing operations, apply for and obtain any required permits, file any required bonds, and file an application for and receive permission to operate in the same manner as a person qualifying a new wine premises; however, the successor may, in the manner provided in § 24.127, adopt the approved formulas of the outgoing proprietor. Wine, spirits, and winemaking materials may be transferred from an outgoing proprietor to a successor in the manner provided in § 24.140.
</P>
<P>(b) <I>Fiduciary.</I> A successor to the proprietorship of wine premises who is an administrator, executor, receiver, trustee, assignee, or other fiduciary shall, except as otherwise provided in this section, comply with the provisions of paragraph (a) of this section. However, in lieu of filing a new bond, if a bond is required, the fiduciary may furnish a consent of surety extending the terms of any bonds of the predecessor, and any pertinent information contained in the predecessor's application may be incorporated by reference. In addition, the fiduciary shall furnish a certified copy of the order of the court or other pertinent document showing the appointment as such fiduciary. The effective date of the qualifying documents filed by a fiduciary will be the effective date of the court order, or the date specified for the fiduciary to assume control. If the fiduciary was not appointed by a court, the date of assuming control will coincide with the effective date of the qualifying documents filed by the fiduciary.
</P>
<P>(c) <I>Exception.</I> A fiduciary intending to liquidate the business conducted on wine premises, i.e., disposition of any wine and spirits on hand, including use of any cellar treatment necessary to put the wine in merchantable condition, who does not intend to produce wine, or use spirits, or receive wine in bond may be exempted from qualifying as the proprietor of the wine premises upon filing with the appropriate TTB officer a statement to that effect, a copy of a foreclosure action, or a copy of the court order directing the liquidation of the business, and, if the wine premises is covered by a bond, a consent of surety wherein the surety and the fiduciary agree to remain liable on the bond.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.126" NODE="27:1.0.1.1.19.4.343.24" TYPE="SECTION">
<HEAD>§ 24.126   Change in proprietorship involving a bonded wine warehouse.</HEAD>
<P>Where a bonded wine warehouse has been established on wine premises and it is desired to continue the operation of the bonded wine warehouse subsequent to a change in the proprietorship of the bonded winery or bonded wine cellar, the proprietor of the bonded wine warehouse shall file a letter application, accompanied by an affirming statement from the new proprietor of the bonded winery or bonded wine cellar, requesting the continuation of the bonded wine warehouse and also file evidence of sufficient bond coverage, except where § 24.146(d) does not require bond coverage. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5353))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1124, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.127" NODE="27:1.0.1.1.19.4.343.25" TYPE="SECTION">
<HEAD>§ 24.127   Adoption of formulas.</HEAD>
<P>The adoption of approved formulas by a successor proprietor will be in the form of an application, filed with the appropriate TTB officer. The application will list the formulas for adoption by formula number, name of product, and date of approval. The application will clearly show that the outgoing proprietor has authorized the successor proprietor's use of the approved formulas. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.128" NODE="27:1.0.1.1.19.4.343.26" TYPE="SECTION">
<HEAD>§ 24.128   Continuing partnerships.</HEAD>
<P>If, under the laws of the particular State, the partnership is not terminated upon the death or insolvency of a partner but continues until the dissolution of the partnership is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, the surviving partner may continue to operate the wine premises under the prior qualification of the partnership, provided a consent of surety is filed wherein the surety and the surviving partner agree to remain liable on any bond covering the bonded wine premises. A surviving partner who acquires the business on completion of the dissolution of the partnership shall qualify from the date of acquisition, as provided in § 24.125(a). The rule set forth in this section will also apply where there is more than one surviving partner.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)


</APPRO>
</DIV8>


<DIV8 N="§ 24.129" NODE="27:1.0.1.1.19.4.343.27" TYPE="SECTION">
<HEAD>§ 24.129   Change in location.</HEAD>
<P>Where there is a change in the location of wine premises, the proprietor shall file an amended application and an application for amendment of the basic permit, if any, and if a bond has been filed, either a new bond or a consent of surety. Operation of wine premises may not be commenced at the new location prior to approval of the amended application and issuance of any amended permit.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)


</APPRO>
</DIV8>


<DIV8 N="§ 24.130" NODE="27:1.0.1.1.19.4.343.28" TYPE="SECTION">
<HEAD>§ 24.130   Change in volatile fruit-flavor concentrate operations.</HEAD>
<P>If the proprietor desires to make any change in the process employed to produce volatile fruit-flavor concentrate and the change affects the accuracy of the description of process included in the application, the proprietor shall file an amended application to include the amended or new process. The new or changed process may not be used prior to approval of the amended application.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1392, as amended (26 U.S.C. 5356, 5511))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)


</APPRO>
</DIV8>


<DIV8 N="§ 24.131" NODE="27:1.0.1.1.19.4.343.29" TYPE="SECTION">
<HEAD>§ 24.131   Change in building construction and use of premises.</HEAD>
<P>Where a change is to be made to buildings located on wine premises, or in the use of any portion of the wine premises, which affects the accuracy of the application, the proprietor shall, before making such change in construction or use, submit a notice to the appropriate TTB officer. The notice will describe the proposed change in detail. The proprietor shall include the change covered by the notice in the next amended TTB F 5120.25 required to be filed, unless the appropriate TTB officer requires immediate amendment. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.132" NODE="27:1.0.1.1.19.4.343.30" TYPE="SECTION">
<HEAD>§ 24.132   Change in bond status.</HEAD>
<P>A proprietor must file an amended application if the proprietor's bond status changes in either of the following ways:
</P>
<P>(a) A proprietor who has not furnished any bond becomes required to furnish a bond as provided under § 24.154(b); or
</P>
<P>(b) A proprietor who has furnished a bond becomes exempt from bond requirements under § 24.146(d) and chooses to terminate all bond coverage as provided under § 24.160.
</P>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1124, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="344" NODE="27:1.0.1.1.19.4.344" TYPE="SUBJGRP">
<HEAD>Alternation</HEAD>


<DIV8 N="§ 24.135" NODE="27:1.0.1.1.19.4.344.31" TYPE="SECTION">
<HEAD>§ 24.135   Wine premises alternation.</HEAD>
<P>(a) <I>General.</I> The proprietor of a bonded winery or bonded wine cellar may alternate all or a portion of wine premises for use as a taxpaid wine bottling house or use as taxpaid wine premises. The proprietor may also alternate the use of adjacent or contiguous premises qualified under 26 U.S.C. chapter 51 (distilled spirits plant, brewery, etc.) for use as wine premises or <I>vice versa.</I> If a proprietor of a bonded wine cellar or winery wishes to use all or a portion of such premises alternately as a volatile fruit-flavor concentrate plant or vice-a-versa, the proprietor must comply with the requirements of §§ 18.40 through 18.43 of this title. 
</P>
<P>(b) <I>Qualifying documents.</I> Where the proprietor desires to alternate bonded wine premises as taxpaid wine bottling house premises or taxpaid wine premises, or other premises qualified under 26 U.S.C. chapter 51, the following qualifying documents will be filed:
</P>
<P>(1) A statement on the application TTB F 5120.25 that an alternation of wine premises will occur;
</P>
<P>(2) Evidence of existing bond, consent of surety, or a new bond covering the alternation, except in cases where § 24.146(d) does not require a bond or bonds;
</P>
<P>(3) A description of how taxpaid wine or spirits, or untaxpaid wine or spirits will be identified and segregated; and
</P>
<P>(4) Any other document or additional information the appropriate TTB officer may require.
</P>
<P>(c) <I>Alternation.</I> After the necessary qualifying documents have been approved by the appropriate TTB officer, the proprietor may alternate wine premises as described in the application. Any portion of wine premises on which taxpaid wine is located will be considered taxpaid wine premises or taxpaid wine bottling house premises and any portion of the premises on which wine not identified as taxpaid is located will be considered bonded wine premises. The proprietor shall, prior to the initial alternation of the premises, identify by portable signs or tags, or by any other method or manner satisfactory to the appropriate TTB officer, either all taxpaid wine on taxpaid wine premises or taxpaid wine bottling house premises or all untaxpaid wine on bonded wine premises.
</P>
<P>(d) <I>Segregation.</I> The proprietor shall keep untaxpaid wine or spirits physically separated from taxpaid wine or spirits and on the designated premises. This separation will be by use of tanks, rooms, buildings, partitions, pallet stacks, or complete physical separation, or by any other method or manner which will clearly and readily distinguish untaxpaid wine or spirits from taxpaid wine or spirits and is satisfactory to the appropriate TTB officer. Where necessary for the protection of the revenue or enforcement of 26 U.S.C. chapter 51, the appropriate TTB officer may require that the portions of wine premises alternated under this section be separated by partitions or otherwise.
</P>
<P>(e) <I>Conditions.</I> Authority for the alternation of bonded wine premises, taxpaid wine bottling house premises, taxpaid wine premises, or other premises qualified under 26 U.S.C chapter 51 is conditioned on compliance by the proprietor with the provisions of this section. Authority for the alternation of bonded wine premises, taxpaid wine bottling house premises, taxpaid wine premises, or other premises qualified under 26 U.S.C. chapter 51 may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered by the continuation of the authorization. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C. 5356, 5357, 5361, 5363, 5365, 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999; T.D. ATF-455, 66 FR 29483, May 31, 2001; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.136" NODE="27:1.0.1.1.19.4.344.32" TYPE="SECTION">
<HEAD>§ 24.136   Procedure for alternating proprietors.</HEAD>
<P>(a) <I>General.</I> Wine premises, or parts thereof, may be operated alternately by proprietors who have each filed and received approval of the necessary applications and bonds and have qualified under the provisions of this part. Where operations by alternating proprietors are limited to parts of the wine premises, the application will describe areas, buildings, floors, or rooms which will be alternated and will be accompanied by a diagram delineating the parts of the wine premises to be alternated. A separate diagram will be submitted to depict each arrangement under which the wine premises will be operated. Once the qualifying documents have been approved, and operations initiated, the wine premises, or parts thereof, may be alternated. Any transfer of wine, spirits, or other accountable materials from one proprietor to the other proprietor will be indicated in the records and reports of each proprietor. Operation of a bonded winery engaged in the production of wine by an alternate proprietor will be at least one calendar day in length.
</P>
<P>(b) <I>Alternation.</I> All operations in any area, building, floor, or room to be alternated will be completely finished and all wine, spirits, and other accountable materials will be removed from the alternated wine premises or transferred to the incoming proprietor. However, wine, spirits, and other accountable materials may be retained in locked tanks at wine premises to be alternated and remain in the custody of the outgoing proprietor.
</P>
<P>(c) <I>Bonds.</I> The outgoing proprietor who has filed bond as required under § 24.146 and intends to resume operation of the alternated areas, buildings, floors, or rooms following suspension of operations by an alternating proprietor shall execute a consent of surety to continue in effect all bonds. Where wine, spirits, or other accountable materials subject to tax under 26 U.S.C. chapter 51 are to be retained in tanks on the wine premises to be alternated, an outgoing proprietor who has filed bond as required under § 24.146 shall also execute a consent of surety to continue the liability of all bonds for the tax on the materials, notwithstanding the change in proprietorship.
</P>
<P>(d) <I>Records.</I> Each proprietor shall maintain separate records and submit a separate TTB F 5120.17, Report of Bonded Wine Premises Operations. All transfers of wine, spirits, and other accountable materials will be reflected in the records of each proprietor. Each proprietor shall maintain a record showing the name and registry number of the incoming or outgoing proprietor, the effective date and hour of alternation, and the quantity in gallons and the percent alcohol by volume or proof of any wine, spirits, or other accountable materials transferred or received.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1380, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 5351, 5352, 5354, 5356, 5361, 5362, 5363, 5367, 5373))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0058, 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.137" NODE="27:1.0.1.1.19.4.344.33" TYPE="SECTION">
<HEAD>§ 24.137   Alternate use of the wine premises for customs purposes.</HEAD>
<P>(a) <I>General.</I> The wine premises may be alternated as a customs bonded warehouse under applicable customs laws and regulations, for the purpose of measuring, gauging, and bottling or packing wine. The use of the portion of the wine premises alternated as a customs bonded warehouse is subject to the approval of the district director of customs and the appropriate TTB officer. When it is necessary to convey wine in customs custody across bonded wine premises, the proprietor shall comply with the provisions of § 24.92.
</P>
<P>(b) <I>Qualifying documents.</I> Where the proprietor desires to alternate a portion of wine premises for customs use, the following qualifying documents will be filed:
</P>
<P>(1) TTB F 5120.25 to cover the alternation;
</P>
<P>(2) A diagram clearly depicting any area, building, floor, room or major equipment in use during the alternation; and
</P>
<P>(3) Any other documents or additional information the appropriate TTB officer may require.
</P>
<P>(c) <I>Alternation.</I> After approval of the qualifying documents by the appropriate TTB officer, the proprietor may alternate the wine premises. Portions of the wine premises to be excluded by curtailment or included by extension may not be used for purposes other than those authorized. Prior to the effective date and hour of the alternation, the proprietor shall remove all wine and spirits from the portion of the wine premises to be alternated for customs purposes. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C. 5356, 5357, 5361, 5365, 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="345" NODE="27:1.0.1.1.19.4.345" TYPE="SUBJGRP">
<HEAD>Permanent Discontinuance of Operations</HEAD>


<DIV8 N="§ 24.140" NODE="27:1.0.1.1.19.4.345.34" TYPE="SECTION">
<HEAD>§ 24.140   Notice.</HEAD>
<P>(a) <I>General.</I> Where all or part of the operations at a wine premises are to be permanently discontinued, the proprietor shall file with the appropriate TTB officer a notice in letter form to cover the discontinuance. The proprietor shall state in the notice the date on which operations will be discontinued and, if the wine premises are to be transferred to a successor proprietor, the name of the successor proprietor. Any basic permit issued to the proprietor under the Federal Alcohol Administration Act (49 Stat. 978; 27 U.S.C. 203) for the operation discontinued will be submitted to the appropriate TTB officer with a written request for cancellation.
</P>
<P>(b) <I>Bonded wine premises.</I> The proprietor shall certify in the notice, as applicable, that:
</P>
<P>(1) All wine, spirits, or volatile fruit-flavor concentrate have been lawfully removed from bonded wine premises, destroyed, or transferred to a successor as of the effective date of discontinuance,
</P>
<P>(2) No wine, spirits, or volatile fruit-flavor concentrate are in transit to bonded wine premises, and
</P>
<P>(3) All approved applications covering the transfer of spirits to bonded wine premises have been returned to the appropriate TTB officer.
</P>
<FP>The proprietor shall submit a report marked “Final” on the TTB F 5120.17, Report of Bonded Wine Premises Operations. Any wine, spirits, or volatile fruit-flavor concentrate transferred to a successor will be identified as “Transferred to successor” on the report and identified as “Received from predecessor” on the initial report filed by the successor.
</FP>
<P>(c) <I>Taxpaid wine bottling house premises or Taxpaid wine premises.</I> The proprietor shall certify in the notice that all taxpaid United States or foreign wine on hand have been disposed of, or if not yet disposed of, the manner of disposition and the time period in which the disposition will occur. The proprietor shall include taxpaid United States wine on the TTB F 5120.17 report marked “Final.” Any United States taxpaid wine transferred to a successor will be identified as “Transferred to successor” on the report and identified as “Received from predecessor” on the initial report filed by the successor. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0058 and 1512-0216)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.141" NODE="27:1.0.1.1.19.4.345.35" TYPE="SECTION">
<HEAD>§ 24.141   Bonded wine warehouse.</HEAD>
<P>Where all operations at a bonded wine warehouse are to be permanently discontinued, the warehouse proprietor shall file with the appropriate TTB officer a notice in letter form to cover the discontinuance. The warehouse proprietor shall state in the notice the name, registry number, and address of the wine premises on which the warehouse facilities are located and the date on which operations of the bonded wine warehouse will be discontinued. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5353))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0292)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="346" NODE="27:1.0.1.1.19.4.346" TYPE="SUBJGRP">
<HEAD>Bonds and Consents of Surety</HEAD>


<DIV8 N="§ 24.145" NODE="27:1.0.1.1.19.4.346.36" TYPE="SECTION">
<HEAD>§ 24.145   General requirements.</HEAD>
<P>Each person required to file a bond or consent of surety under this part must prepare, execute and submit the bond or consent of surety on the prescribed form in accordance with this part and the instructions printed on the form. A person may not commence or continue any business or operation relating to wine until all bonds and consents of surety required under this part with respect to the business or operation have been approved by the appropriate TTB officer. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.146" NODE="27:1.0.1.1.19.4.346.37" TYPE="SECTION">
<HEAD>§ 24.146   Bonds.</HEAD>
<P>(a) <I>Wine bond.</I> Except as provided in paragraph (d) of this section, the proprietor must give bond on TTB F 5120.36, Wine Bond, to cover the liability for excise taxes imposed by the Internal Revenue Code of 1986, on wines produced or received by the proprietor. The bond will apply to wine, spirits, and volatile fruit-flavor concentrate, or other commodities subject to tax under 26 U.S.C. chapter 51, in transit to or on bonded wine premises, and to the operations of the bonded wine premises, whether the transaction or operation on which the proprietor's liability is based occurred on or off the proprietor's premises. The bond will provide that the proprietor shall faithfully comply with all provisions of law and regulation relating to activities covered by the bond. This bond has a tax obligation limit of $500 for wine removed from bonded wine premises on which the tax has been determined, but not paid, unless the total penal sum of the operations bond is $2,000 or more and the proprietor and the surety designate $1,000 of this amount as the obligation limit for wine on which the tax has been determined, but not paid.
</P>
<P>(b) <I>Tax deferral bond.</I> Except as provided in paragraph (d) of this section, where the proprietor removes wine from bonded wine premises for consumption or sale, after determination and before payment of tax, the proprietor must, in addition to any other bond required by this part, furnish a tax deferral bond on TTB F 5120.36, Wine Bond, to ensure payment of the tax on the wine. Under the conditions provided in paragraph (a) of this section, this amount may be changed to $1,000 by the terms of the bond or through a consent of surety between the proprietor and the surety. The tax deferral bond and the wine bond may be submitted on the same TTB F 5120.36.
</P>
<P>(c) <I>Wine vinegar plant bond.</I> The proprietor of a wine vinegar plant who withdraws wine from a bonded wine premises without payment of tax for use in the manufacture of vinegar shall file a bond on TTB F 5510.2, Bond Covering Removal to and Use of Wine at Vinegar Plant, to ensure the payment of the tax on the wine until such wine becomes vinegar. 
</P>
<P>(d) <I>Bonds covering wine for nonindustrial use and industrial use</I>—(1)<I> Nonindustrial use.</I> A proprietor who pays tax on a deferred basis under § 24.271 is not required to provide a bond or bonds to cover operations and withdrawals of wine for nonindustrial use during any portion of a calendar year for which the proprietor is eligible to use an annual or quarterly return period under § 24.271(b)(1)(ii) or (b)(1)(iii). For purposes of the preceding sentence, a proprietor is considered to be paying tax on a deferred basis even if the proprietor does not pay tax during every return period as long as the proprietor intends to pay tax in a future period. See §§ 24.109 and 24.132 for rules governing applying for this bond exemption. See § 24.154(b) for rules governing when an existing proprietor who has not provided a bond under this paragraph must obtain bond coverage.
</P>
<P>(2) <I>Industrial use.</I> A proprietor is required to provide a bond or bonds to cover operations and withdrawals of wine for industrial use even if the proprietor pays tax on a deferred basis under § 24.271 and is eligible to use an annual or quarterly return period under § 24.271(b)(1)(ii) or (b)(1)(iii). In the case of a proprietor whose operations or withdrawals involve wine for both nonindustrial and industrial use, wine is considered to be for industrial use for purposes of this paragraph unless the proprietor designates the wine as solely for nonindustrial use upon production of the wine by fermentation or upon receiving the wine and, in either case, does not thereafter mix the wine with any wine for industrial use.
</P>
<P>(3) <I>Nonindustrial use and industrial use defined.</I> The nonindustrial and industrial uses of wine are defined in subpart D of part 1 of this chapter. Nonindustrial uses of wine include, but are not limited to, uses of wine for beverage purposes. Industrial uses of wine include the manufacture of wine or wine products not for beverage use as set forth in § 24.215.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended (26 U.S.C. 5354, 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. TTB-79, 74 FR 37404, July 28, 2009; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.147" NODE="27:1.0.1.1.19.4.346.38" TYPE="SECTION">
<HEAD>§ 24.147   Operations bond or unit bond.</HEAD>
<P>Notwithstanding the provisions of § 24.146, each person intending to commence or to continue business as the proprietor of a bonded wine premises with an adjacent or contiguous distilled spirits plant qualified under 27 CFR part 19 for the production of distilled spirits shall, in lieu of a winery bond and the bonds required under the provisions of 26 U.S.C. 5173, as amended, give an operations bond or unit bond in accordance with the applicable provisions of 27 CFR part 19. See § 19.151(d) of this chapter for circumstances under which a bond is not required with respect to operations and withdrawals of distilled spirits.


</P>
<SECAUTH TYPE="N">(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1124, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.148" NODE="27:1.0.1.1.19.4.346.39" TYPE="SECTION">
<HEAD>§ 24.148   Penal sums of bonds.</HEAD>
<P>The penal sums of bonds prescribed in this part are as follows:

</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Bond 
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Basis 
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Penal sum 
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Minimum 
</TH><TH class="gpotbl_colhed" scope="col">Maximum 
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(a) Wine Bond, TTB F 5120.36</TD><TD align="left" class="gpotbl_cell">(1) Wine operations coverage. (i) Not less than the tax on all wine or spirits possessed, in transit, or unaccounted for at any one time, taking into account the appropriate small producer wine tax credit</TD><TD align="right" class="gpotbl_cell">$1,000</TD><TD align="right" class="gpotbl_cell">$50,000 
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell">(ii) Where the liability exceeds $250,000</TD><TD align="right" class="gpotbl_cell"> </TD><TD align="right" class="gpotbl_cell">100,000 
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell">(2) Tax deferral coverage. Where the unpaid tax amounts to more than $500, not less than the amount of tax which, at any one time, has been determined but not paid. Exception: $1,000 of the wine operations coverage may be allocated to cover the amount of tax which, at any one time, has been determined but not paid, if the total operations coverage is $2,000 or more</TD><TD align="right" class="gpotbl_cell">500</TD><TD align="right" class="gpotbl_cell">250,000 
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(b) Wine Vinegar Plant Bond, TTB F 5510.2</TD><TD align="left" class="gpotbl_cell">Not less than the tax on all wine on hand, in transit, or unaccounted for at any one time</TD><TD align="right" class="gpotbl_cell">1,000</TD><TD align="right" class="gpotbl_cell">100,000 
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* The proprietor of bonded wine premises who operates an adjacent or contiguous wine vinegar plant with a wine bond that does not cover the operation may file a consent of surety to extend the terms of the wine bond in lieu of filing a wine vinegar plant bond.</P></DIV></DIV>
<SECAUTH TYPE="N">(26 U.S.C. 5354, 5362) 
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0009)
</APPRO>
<CITA TYPE="N">[T.D. TTB-64, 72 FR 65454, Nov. 21, 2007]



</CITA>
</DIV8>


<DIV8 N="§ 24.149" NODE="27:1.0.1.1.19.4.346.40" TYPE="SECTION">
<HEAD>§ 24.149   Corporate surety.</HEAD>
<P>(a) Surety bonds required by this part may be obtained only from corporate sureties which hold certificates of authority from and are subject to the limitations prescribed by the Secretary as set forth in the current revision of Treasury Department Circular 570, Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies.
</P>
<P>(b) Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).


</P>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1124, Jan. 4, 2017; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 24.150" NODE="27:1.0.1.1.19.4.346.41" TYPE="SECTION">
<HEAD>§ 24.150   Powers of attorney.</HEAD>
<P>Each bond, and each consent to changes in the terms of a bond, will be accompanied by a power of attorney whereby the surety authorizes the agent or officer who executed the bond or consent to act on behalf of the surety. The appropriate TTB officer may require additional evidence of the authority of the agent or officer of the surety to execute the bond or consent. The power of attorney will be prepared on a form provided by the surety and executed under the corporate seal of the surety. If the power of attorney is other than a manually signed original, the appropriate TTB officer may require a certification of validity.
</P>
<SECAUTH TYPE="N">(July 30, 1947, Ch. 390, Pub. L. 80-280, 61 Stat. 648, as amended (26 U.S.C. 6, 7))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.151" NODE="27:1.0.1.1.19.4.346.42" TYPE="SECTION">
<HEAD>§ 24.151   Deposit of collateral security.</HEAD>
<P>Bonds or notes of the United States, or other obligations which are unconditionally guaranteed as to both interest and principal by the United States, may be pledged and deposited as collateral security in lieu of corporate sureties in accordance with the provisions of the Treasury Department regulations in 31 CFR part 225, Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties. Cash, postal money orders, certified checks, cashiers' checks, or treasurers' checks may also be furnished as collateral security in lieu of corporate sureties.
</P>
<SECAUTH TYPE="N">(July 30, 1947, Ch. 390, 61 Stat. 650 (6 U.S.C. 15); August 16, 1954, Ch. 736, 68A Stat. 847, as amended (26 U.S.C. 7101))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1124, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.152" NODE="27:1.0.1.1.19.4.346.43" TYPE="SECTION">
<HEAD>§ 24.152   Consents of surety.</HEAD>
<P>Consents of surety to changes in the terms of bonds will be executed on TTB Form 5000.18 by the principal and by the surety with the same formality and evidence of authority as is required for the execution of bonds.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1125, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.153" NODE="27:1.0.1.1.19.4.346.44" TYPE="SECTION">
<HEAD>§ 24.153   Strengthening bonds.</HEAD>
<P>In any instance where the penal sum of the bond on file becomes insufficient, the principal shall either give a strengthening bond with the same surety to attain a sufficient penal sum or give a new bond covering the entire liability. Strengthening bonds will not be approved where any notation is made thereon which is intended, or which may be construed, as a release of any former bond, or as limiting the amount of either bond to less than its full penal sum. Strengthening bonds will show the current date of execution and the effective date. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)


</APPRO>
</DIV8>


<DIV8 N="§ 24.154" NODE="27:1.0.1.1.19.4.346.45" TYPE="SECTION">
<HEAD>§ 24.154   Superseding bonds and new bonds for existing proprietors.</HEAD>
<P>(a) <I>Superseding bonds.</I> When, in the opinion of the appropriate TTB officer, the interests of the Government demand it, or in any case where the validity of the bond becomes impaired in whole or in part for any reason, the principal must give a new bond that supersedes the existing bond. A superseding bond will be required immediately in the case of the insolvency of a corporate surety. Executors, administrators, assignees, receivers, trustees, or other persons acting in a fiduciary capacity, to continue or to liquidate the business of the principal, must execute and file a superseding bond or obtain the consent of the surety or sureties on the existing bond or bonds. When under the provisions of § 24.157 the surety has filed an application to be relieved of liability under any bond given under this part and the principal desires or intends to continue business or operations to which the bond relates, the principal must file a valid superseding bond to be effective on or before the date specified in the surety's notice. Superseding bonds will show the current date of execution and the effective date.
</P>
<P>(b) <I>New bonds for existing proprietors</I>—(1) <I>General.</I> Subject to paragraph (b)(2) of this section, if an existing proprietor has not furnished a bond or bonds covering operations and withdrawals of wine for nonindustrial use because the proprietor was exempt from bond requirements under § 24.146(d), the proprietor must furnish a bond or bonds as provided in this subpart beginning in any portion of a calendar year following the first date on which the aggregate amount of tax due from the proprietor during the calendar year exceeds $50,000. When furnishing the bond or bonds, the proprietor must also file an amended application as provided in § 24.132 to change the proprietor's bond status.
</P>
<P>(2) <I>Grace period for wine bonds under § 24.146(a).</I> An existing proprietor who must furnish a wine bond under § 24.146(a) as provided in paragraph (b)(1) of this section will be treated as having furnished the required bond if the proprietor submits the bond on TTB F 5120.36 no later than 30 days following the first date on which the aggregate amount of tax due from the proprietor during the relevant calendar year exceeds $50,000. The proprietor will be treated as having furnished the required wine bond for purposes of this paragraph until TTB approves or disapproves the bond. Until TTB takes action on a bond submission, a proprietor who complies with the requirements of this paragraph may remove wine on which the tax has been determined, but not paid, to the extent that the proprietor's liability for tax on those removals does not exceed $1,000.
</P>
<P>(3) <I>Tax deferral bonds under § 24.146(b).</I> The grace period specified in paragraph (b)(2) of this section does not apply to tax deferral bonds under § 24.146(b). Except to the extent authorized under paragraph (b)(2) of this section, a proprietor who must furnish a tax deferral bond under paragraph (b)(1) of this section may not withdraw wine from the bonded premises on which the tax has been determined, but not paid, until TTB approves the tax deferral bond.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1394, as amended (26 U.S.C. 5354, 5362, 5551))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0009)
</APPRO>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1125, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.155" NODE="27:1.0.1.1.19.4.346.46" TYPE="SECTION">
<HEAD>§ 24.155   Disapproval and appeal from disapproval.</HEAD>
<P>(a) <I>Disapproval.</I> The appropriate TTB officer may disapprove any bonded wine premises bond or consent of surety if the individual, firm, partnership, corporation, or association giving the bond, or owning, controlling, or actively participating in the management of the bonded wine premises of the individual, firm, partnership, corporation, or association giving the bond, has been previously convicted in a court of competent jurisdiction of:
</P>
<P>(1) Any fraudulent noncompliance with any provision of any law of the United States, if such provision relates to internal revenue or customs taxation of distilled spirits, wine, or beer, or if such offense has been compromised with the person on payment of penalties or otherwise, or
</P>
<P>(2) Any felony under a law of any State, or of the District of Columbia, or of the United States, prohibiting the manufacture, sale, importation, or transportation of distilled spirits, wine, beer, or other intoxicating liquor.
</P>
<P>(b) <I>Appeal from disapproval.</I> Where a bond or consent of surety is disapproved by the appropriate TTB officer, the person giving the bond may appeal the disapproval to the Administrator. The decision of the Administrator will be final.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.156" NODE="27:1.0.1.1.19.4.346.47" TYPE="SECTION">
<HEAD>§ 24.156   Termination of bonds.</HEAD>
<P>A bond prescribed in § 24.146 may be terminated as to future liability pursuant to application by the surety as provided in § 24.157; pursuant to approval of a superseding bond; upon receipt of notification from the principal that the business has been discontinued and all wine and spirits have been removed from the bonded wine premises as provided in § 24.140(b); pursuant to an application by an existing proprietor who becomes exempt from bond requirements as provided in § 24.160; or in the case of a tax deferral bond, the termination will be issued upon receipt of written notification from the principal that removals of wine requiring a tax deferral bond have been discontinued.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5354))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1125, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.157" NODE="27:1.0.1.1.19.4.346.48" TYPE="SECTION">
<HEAD>§ 24.157   Application by surety for relief from bond.</HEAD>
<P>A surety on any bond required by this part may at any time, in writing, notify the principal and the appropriate TTB officer in whose office the bond is on file, that it desires after a specified date, to be relieved of liability under the bond. The date may not be less than 10 days after the date notice is received by the appropriate TTB officer in the case of a tax deferral bond, and not less than 90 days after the date the notice is received in the case of a bonded wine premises bond or wine vinegar plant bond. The surety will also file with the appropriate TTB officer an acknowledgment, or other evidence of service, of a notice on the principal. The 10 day or 90 day period does not commence until both the acknowledgment or other evidence of service and the notice are filed. If a notice is not thereafter withdrawn in writing, the rights of the principal as supported by the bond will be terminated on the date specified in the notice, and the surety will be relieved from liability to the extent set forth in § 24.158. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended (26 U.S.C. 5354, 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.158" NODE="27:1.0.1.1.19.4.346.49" TYPE="SECTION">
<HEAD>§ 24.158   Extent of relief.</HEAD>
<P>(a) <I>General.</I> The surety on any bond required by this part who has filed a notice for relief from liability as provided in § 24.157 will be relieved from liability under bond as set forth in this section.
</P>
<P>(b) <I>Wine bond.</I> Where a new or superseding bond is filed, the surety of the existing bond will be relieved of future liability with respect to wine, spirits, volatile fruit-flavor concentrate, or any other commodities subject to tax under 26 U.S.C. chapter 51 on hand or in transit to bonded wine premises on or after the effective date of the new or superseding bond. Notwithstanding such relief, the surety will remain liable for the tax on all wine or volatile fruit-flavor concentrate produced at, and for wine, spirits, and volatile fruit-flavor concentrate consigned to, the bonded wine premises, and for all other liabilities incurred, during the term of the bond. Where a new or superseding bond is not filed the surety will, in addition to the continuing liabilities specified above, remain liable for all wine, spirits, volatile fruit-flavor concentrate, or other commodities subject to tax under 26 U.S.C. chapter 51 on hand or in transit to bonded wine premises on the date specified in the notice, until all the wine, spirits, volatile fruit-flavor concentrate, or commodities subject to tax under 26 U.S.C. chapter 51 have been lawfully disposed of, or a new bond has been filed covering the liability.
</P>
<P>(c) <I>Tax deferral bond.</I> The surety will be relieved of liability for the tax on any wine removed from the bonded wine premises after the date specified in the notice. The surety will continue to be liable for the tax on wine removed for consumption or sale on or before the date specified in the notice, until all tax is fully paid.
</P>
<P>(d) <I>Wine vinegar plant bond.</I> The surety will be relieved of liability for tax on wine withdrawn for the manufacture of vinegar after the date specified in the notice. The surety will continue to be liable for the tax on wine withdrawn on or before the date specified in the notice, until all wine is fully accounted for. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended (26 U.S.C. 5354, 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)


</APPRO>
</DIV8>


<DIV8 N="§ 24.159" NODE="27:1.0.1.1.19.4.346.50" TYPE="SECTION">
<HEAD>§ 24.159   Release of collateral security.</HEAD>
<P>Collateral security pledged and deposited will be released only in accordance with the provisions of 31 CFR part 225. The collateral security will not be released by the appropriate TTB officer until liability under the bond for which it was pledged has been terminated. If satisfied that the interests of the Government will not be jeopardized, the appropriate TTB officer will fix the date or dates on which a part or all of the collateral security may be released. At any time prior to the release of the collateral security, the appropriate TTB officer may, for proper cause, extend the date of release of the security for such additional length of time as deemed appropriate.
</P>
<SECAUTH TYPE="N">(July 30, 1947, Ch. 390, Pub. L. 80-280, 61 Stat. 650 (31 U.S.C. 9301, 9303))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.160" NODE="27:1.0.1.1.19.4.346.51" TYPE="SECTION">
<HEAD>§ 24.160   Application to terminate bond by existing proprietor who becomes exempt from bond requirements.</HEAD>
<P>If a proprietor has held a bond or bonds covering operations or withdrawals of wine for nonindustrial use and becomes exempt from those bond requirements as provided under § 24.146(d), the proprietor may apply to TTB to terminate the bond or bonds covering such operations or withdrawals. To apply, the proprietor must file an amended application as provided in § 24.132. The proprietor must accurately state in the submission that the proprietor:
</P>
<P>(a) Will withdraw wine for deferred payment of tax under § 24.271;
</P>
<P>(b) Reasonably expects to be liable for not more than $50,000 in taxes with respect to wine imposed by 26 U.S.C. 5041 and 7652 for the current calendar year (see definition of “Reasonably expects” in § 24.271(b)(1)(iv)(B)); and
</P>
<P>(c) Was liable for not more than $50,000 in such taxes in the preceding calendar year.
</P>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1125, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.19.5" TYPE="SUBPART">
<HEAD>Subpart E—Construction and Equipment</HEAD>


<DIV8 N="§ 24.165" NODE="27:1.0.1.1.19.5.347.1" TYPE="SECTION">
<HEAD>§ 24.165   Premises.</HEAD>
<P>Wine premises will be located, constructed, and equipped, subject to approval by the appropriate TTB officer, in a manner suitable for the operations to be conducted and to afford adequate protection to the revenue.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C. 5351, 5352, 5357, 5361, 5363))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.166" NODE="27:1.0.1.1.19.5.347.2" TYPE="SECTION">
<HEAD>§ 24.166   Buildings or rooms.</HEAD>
<P>All buildings or rooms on wine premises in which wine operations or other operations as are authorized in this part are conducted will be located, constructed, and equipped in a manner suitable for the intended purpose and to afford adequate protection to the revenue. Each building or room will be constructed of substantial materials and separated from adjacent or contiguous buildings, rooms, or designated areas in a manner satisfactory to the appropriate TTB officer. Where spirits are to be received and stored in packages, a storage room equipped for locking will be provided. The proprietor shall make provisions to assure TTB officers have ready ingress to and egress from any building or room on wine premises, and shall furnish at the request of the appropriate TTB officer evidence that the means of ingress and egress by TTB officers are assured. Where the appropriate TTB officer finds that any building or room on wine premises is located, constructed, or equipped as to afford inadequate protection to the revenue, the proprietor will be required to make changes in location, construction, or equipment to the extent necessary to afford adequate protection to the revenue.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended (26 U.S.C. 5352, 5357))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.167" NODE="27:1.0.1.1.19.5.347.3" TYPE="SECTION">
<HEAD>§ 24.167   Tanks.</HEAD>
<P>(a) <I>General.</I> All tanks on wine premises used for wine operations or for other operations as are authorized in this part will be suitable for the intended purpose. Each tank used for wine operations will be located, constructed, and equipped as to permit ready examination and a means of accurately determining the contents. Any tank used for wine operations not enclosed within a building or room will be enclosed within a secure fence unless the premises where the tank is located are enclosed by a fence or wall, or all tank openings are equipped for locking and are locked when used for wine operations and there is no proprietor's representative on the wine premises, or the appropriate TTB officer has approved some other adequate means of revenue protection. All open tanks will be under a roof or other suitable covering.
</P>
<P>(b) <I>Other requirements.</I> Each tank used for the taxpayment of wine, storage of spirits, or spirits additions will be constructed and equipped as follows:
</P>
<P>(1) An accurate means of measuring the contents of each tank will be provided by the proprietor. When a means of measuring is not a permanent fixture of the tank, the tank will be equipped with a fixed device to allow the approximate contents to be determined readily;
</P>
<P>(2) Safe access to all parts of a tank will be provided by the proprietor;
</P>
<P>(3) Tanks may not be used until they are accurately calibrated and a statement of certification of accurate calibration is on file at the premises;
</P>
<P>(4) If a tank or its means of measuring is changed as to location or position subsequent to original calibration, the tank may not be used until recalibrated; and
</P>
<P>(5) All openings in tanks used for the storage, weighing, or measuring of spirits, or for the addition of spirits to wine, will be equipped for locking or have a similar means of revenue protection. Any vents, flame arrestors, foam devices, or other safety devices affixed to a spirits tank will be constructed to prevent extraction of the contents of the tank.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1395, as amended (26 U.S.C. 5352, 5357, 5552))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0058)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.168" NODE="27:1.0.1.1.19.5.347.4" TYPE="SECTION">
<HEAD>§ 24.168   Identification of tanks.</HEAD>
<P>(a) <I>General.</I> Each tank, barrel, puncheon, or similar bulk container, used to ferment wine or used to process or store wine, spirits, or wine making materials will have the contents marked and will be marked as required by this section.
</P>
<P>(b) <I>Tank markings.</I> (1) Each tank will have a unique serial number;
</P>
<P>(2) Each tank will be marked to show its current use, either by permanent markings or by removable signs of durable material; and
</P>
<P>(3) If used to store wine made in accordance with a formula, the formula number will be marked or otherwise indicated on the tank.
</P>
<P>(c) <I>Puncheon and barrel markings.</I> Puncheons and barrels, or similar bulk containers over 100 gallons capacity, will be marked in the same manner as tanks. A permanent serial number need not be marked on puncheons and barrels, or similar bulk containers of 100 gallons capacity or less, used for storage, but the capacity must be permanently marked.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended (26 U.S.C. 5352, 5357))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0503)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 24.169" NODE="27:1.0.1.1.19.5.347.5" TYPE="SECTION">
<HEAD>§ 24.169   Pipelines.</HEAD>
<P>Pipelines, including flexible hoses, used to convey wine, spirits, or volatile fruit-flavor concentrate will be constructed, connected, arranged, and secured so as to afford adequate protection to the revenue and to permit ready examination. The appropriate TTB officer may approve pipelines which cannot be readily examined if no jeopardy to the revenue is created.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1395, as amended (26 U.S.C. 5352, 5357, 5552))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.170" NODE="27:1.0.1.1.19.5.347.6" TYPE="SECTION">
<HEAD>§ 24.170   Measuring devices and testing instruments.</HEAD>
<P>(a) <I>Measuring devices.</I> The appropriate TTB officer may at any time require proprietors to provide at their own expense equipment for ascertaining the capacity and contents of tanks and other storage containers, and scales and measuring devices for weighing and measuring wine, spirits, volatile fruit-flavor concentrate, or materials received and used in the production or treatment of wine. Where winemaking materials or other materials used in the treatment of wine are used immediately upon receipt on wine premises, or received and stored on bonded wine premises in original sealed shipping containers with a stated capacity, the quantity shown on the commercial invoice or other document covering the shipment may be accepted by the proprietor and entered into records in lieu of measuring the materials upon receipt.
</P>
<P>(b) <I>Testing instruments.</I> The proprietor shall have ready access to equipment for determining the alcohol content unless the proprietor only receives and stores on wine premises bottled or packed wine with evidence showing the alcohol content has been determined. The proprietor who bottles or packs wine shall have ready access to equipment for determining the net contents of bottled or packed wine. The appropriate TTB officer may require other testing instruments based upon the proprietor's operations.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1395, as amended (26 U.S.C. 5357, 5552))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.19.6" TYPE="SUBPART">
<HEAD>Subpart F—Production of Wine</HEAD>


<DIV8 N="§ 24.175" NODE="27:1.0.1.1.19.6.347.1" TYPE="SECTION">
<HEAD>§ 24.175   General.</HEAD>
<P>The kinds of wine which may be produced on bonded wine premises are as follows:
</P>
<P>(a) Natural wine produced in accordance with subparts F and G of this part;
</P>
<P>(b) Special natural wine produced in accordance with subpart H of this part;
</P>
<P>(c) Agricultural wine produced in accordance with subpart I of this part; and
</P>
<P>(d) Other than standard wine produced in accordance with subpart J of this part.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1383, as amended, 1384, as amended, 1385, as amended, 1386, as amended (26 U.S.C. 5361, 5382, 5384, 5385, 5386, 5387))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.176" NODE="27:1.0.1.1.19.6.347.2" TYPE="SECTION">
<HEAD>§ 24.176   Crushing and fermentation.</HEAD>
<P>(a) <I>Natural wine production.</I> Water may be used to flush equipment during the crushing process or to facilitate fermentation but the density of the juice may not be reduced below 22 degrees Brix. However, if the juice is already less than 23 degrees Brix, the use of water to flush equipment or facilitate fermentation is limited to a juice density reduction of no more than one degree Brix. At the start of fermentation no material may be added except water, sugar, concentrated fruit juice from the same kind of fruit, malo-lactic bacteria, yeast or yeast cultures grown in juice of the same kind of fruit, and yeast foods, sterilizing agents, precipitating agents or other approved fermentation adjuncts. Water may be used to rehydrate yeast to a maximum to two gallons of water for each pound of yeast; however, except for an operation involving the preparation of a yeast culture starter and must mixture for later use in initiating fermentation, the maximum volume increase of the juice after the addition of rehydrated yeast is limited to 0.5 percent. After fermentation natural wines may be blended with each other only if produced from the same kind of fruit.
</P>
<P>(b) <I>Determination of wine produced.</I> Upon completion of fermentation or removal from the fermenter, the volume of wine will be accurately determined, recorded and reported on TTB F 5120.17, Report of Bonded Wine Premises Operations, as wine produced. Any wine or juice remaining in fermentation tanks at the end of the reporting period will be recorded and reported on TTB F 5120.17.
</P>
<CITA TYPE="N">[T.D. ATF-312, 56 FR 31078, July 9, 1990, as amended by ATF-338, 58 FR 19064, Apr. 12, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 24.177" NODE="27:1.0.1.1.19.6.347.3" TYPE="SECTION">
<HEAD>§ 24.177   Chaptalization (Brix adjustment).</HEAD>
<P>In producing natural grape wine from juice having a low sugar content, pure dry sugar or concentrated grape juice may be added before or during fermentation to develop alcohol. In producing natural fruit wine from juice having a low sugar content, sugar, or concentrated juice of the same kind of fruit may be added before or during fermentation to develop alcohol. The quantity of sugar or concentrated juice added may not raise the original density of the juice above 25 degrees Brix. If grape juice or grape wine is ameliorated after chaptalization, the quantity of pure dry sugar added to juice for chaptalization will be included as ameliorating material. If fruit juice or fruit wine is ameliorated after chaptalization, pure dry sugar added under this section is not considered as ameliorating material. However, if fruit juice or fruit wine is ameliorated after chaptalization and liquid sugar or invert sugar syrup is used to chaptalize the fruit juice, the volume of water contained in the liquid sugar or invert sugar syrup will be included as ameliorating material. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1385, as amended (26 U.S.C. 5382, 5384))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991; T.D. ATF-413, 64 FR 46844, Aug. 27, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.178" NODE="27:1.0.1.1.19.6.347.4" TYPE="SECTION">
<HEAD>§ 24.178   Amelioration.</HEAD>
<P>(a) <I>General.</I> In producing natural wine from juice having a fixed acid level exceeding 5.0 grams per liter, the winemaker may adjust the fixed acid level by adding ameliorating material (water, sugar, or a combination of both) before, during and after fermentation. The fixed acid level of the juice is determined prior to fermentation and is calculated as tartaric acid for grapes, malic acid for apples, and citric acid for other fruit. Each 20 gallons of ameliorating material added to 1,000 gallons of juice or wine will reduce the fixed acid level of the juice or wine by 0.1 gram per liter (the fixed acid level of the juice or wine may not be less than 5.0 gram per liter after the addition of ameliorating material).
</P>
<P>(b) <I>Limitations.</I> (1) Amelioration is permitted only at the bonded wine premises where the natural wine is produced.
</P>
<P>(2) The ameliorating material added to juice or wine may not reduce the fixed acid level of the ameliorated juice or wine to less than 5.0 grams per liter.
</P>
<P>(3) For all wine, except for wine described in paragraph (b)(4) of this section, the volume of ameliorating material added to juice or wine may not exceed 35 percent of the total volume of ameliorated juice or wine (calculated exclusive of pulp). Where the starting fixed acid level is or exceeds 7.69 grams per liter, a maximum of 538.4 gallons of ameliorating material may be added to each 1,000 gallons of wine or juice. 
</P>
<P>(4) For wine produced from any fruit (excluding grapes) or berry with a natural fixed acid of 20 parts per thousand or more (before any correction of such fruit or berry), the volume of ameliorating material added to juice or wine may not exceed 60 percent of the total volume of ameliorated juice or wine (calculated exclusive of pulp). If the starting fixed acid level is or exceeds 12.5 grams per liter, a maximum of 1,500 gallons of ameliorating material may be added to each 1,000 gallons of wine or juice.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5383, 5384). 
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-403, 64 FR 50253, Sept. 16, 1999; T.D. ATF-458, 66 FR 37578, July 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 24.179" NODE="27:1.0.1.1.19.6.347.5" TYPE="SECTION">
<HEAD>§ 24.179   Sweetening.</HEAD>
<P>(a) <I>General.</I> In producing natural wine, sugar, juice or concentrated fruit juice of the same kind of fruit may be added after fermentation to sweeten wine. When juice or concentrated fruit juice is added, the solids content of the finished wine may not exceed 21 percent by weight. When liquid sugar or invert sugar syrup is used, the resulting volume may not exceed the volume which would result from the maximum use of pure dry sugar only.
</P>
<P>(b) <I>Grape wine.</I> Any natural grape wine of a winemaker's own production may have sugar added after amelioration and fermentation provided the finished wine does not exceed 17 percent total solids by weight if the alcohol content is more than 14 percent by volume or 21 percent total solids by weight if the alcohol content is not more than 14 percent by volume.
</P>
<P>(c) <I>Fruit wine.</I> Any natural fruit wine of a winemaker's own production may have sugar added after amelioration and fermentation provided the finished wine does not exceed 21 percent total solids by weight and the alcohol content is not more than 14 percent by volume.
</P>
<P>(d) <I>Specially sweetened natural wine.</I> Specially sweetened natural wine is produced by adding to natural wine of the winemaker's own production sufficient pure dry sugar, juice or concentrated fruit juice of the same kind of fruit, separately or in combination, so that the finished product has a total solids content between 17 percent and 35 percent by weight, and an alcohol content of not more than 14 percent by volume. Natural wine containing added wine spirits may be used in the production of specially sweetened natural wine; however, wine spirits may not be added to specially sweetened natural wine. Specially sweetened natural wines may be blended with each other, or with natural wine or heavy bodied blending wine (including juice or concentrated fruit juice to which wine spirits have been added), in the further production of specially sweetened natural wine only if the wines (or juice) so blended are made from the same kind of fruit.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended, 1384, as amended, 1385, as amended, 1386, as amended (26 U.S.C. 5382, 5383, 5384, 5385))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 24.180" NODE="27:1.0.1.1.19.6.347.6" TYPE="SECTION">
<HEAD>§ 24.180   Use of concentrated and unconcentrated fruit juice.</HEAD>
<P>Concentrated fruit juice reduced with water to its original density, or to 22 degrees Brix, or to any degree of Brix between its original density and 22 degrees Brix, and unconcentrated fruit juice reduced with water to not less than 22 degrees Brix, is considered juice for the purpose of standard wine production. Concentrated fruit juice reduced with water to any degree of Brix greater than 22 degrees Brix may be further reduced with water to any degree of Brix between its original density and 22 degrees Brix. The proprietor, prior to using concentrated fruit juice in wine production, shall obtain a statement in which the producer certifies the kind of fruit from which it was produced and the total solids content of the juice before and after concentration. Concentrated or unconcentrated fruit juice may be used in juice or wine made from the same kind of fruit for the purposes of chaptalizing or sweetening, as provided in this part. Concentrated fruit juice, or juice which has been concentrated and reconstituted, may not be used in standard wine production if at any time it was concentrated to more than 80 degrees Brix.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-413, 64 FR 46845, Aug. 27, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.181" NODE="27:1.0.1.1.19.6.347.7" TYPE="SECTION">
<HEAD>§ 24.181   Use of sugar.</HEAD>
<P>Only sugar, as defined in § 24.10, may be used in the production of standard wine. The quantity of sugar used will be determined either by measuring the increase in volume or by considering that each 13.5 pounds of pure dry sugar results in a volumetric increase of one gallon. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended, 1384, as amended, 1385, as amended, 1387, as amended (26 U.S.C. 5382, 5383, 5384, 5392))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 24.182" NODE="27:1.0.1.1.19.6.347.8" TYPE="SECTION">
<HEAD>§ 24.182   Use of acid to correct natural deficiencies.</HEAD>
<P>(a) <I>General.</I> Acids of the kinds occurring in grapes or other fruit (including berries) may be added within the limitations of § 24.246 to juice or wine in order to correct natural deficiencies; however, no acid may be added to juice or wine which is ameliorated to correct natural deficiencies except that in the production of grape wine, tartaric acid may be used to reduce the pH of the juice or wine. If tartaric acid is used to correct the pH of grape juice or wine, the fixed acid level of the juice shall be measured prior to the addition of any tartaric acid to determine the maximum quantity of ameliorating material allowed. In addition, when using tartaric acid to reduce the pH of ameliorated grape juice or wine, the pH cannot be reduced below 3.0.
</P>
<P>(b) <I>Grape wine.</I> Tartaric acid or malic acid, or a combination of tartaric acid and malic acid, may be added prior to or during fermentation, to grapes or juice from grapes. In addition, after fermentation is completed, citric acid, fumaric acid, malic acid, lactic acid or tartaric acid, or a combination of two or more of these acids, may be added to correct natural deficiencies. However, the use of these acids, either prior to, during or after fermentation, may not increase the fixed acid level of the finished wine (calculated as tartaric acid) above 9.0 grams per liter. In cases where the wine contains 8.0 or more grams of total solids per 100 milliliters of wine, acids may be added to the extent that the finished wine does not contain more than 11.0 grams per liter of fixed acid (calculated as tartaric acid).
</P>
<P>(c) <I>Fruit wine.</I> Only citric acid may be added to citrus fruit, juice or wine, only malic acid may be added to apples, apple juice or wine, and only citric acid or malic acid may be added to other fruit (including berries) or to juice or wine derived from other fruit (including berries) to correct natural deficiencies to 9.0 grams per liter of finished wine; however, if the wine contains 8.0 or more grams of total solids per 100 milliliters of wine, acids may be added to correct natural deficiencies to the extent that the finished wine does not contain more than 11.0 grams per liter of fixed acid (calculated as malic acid for apples and citric acid for other fruit (including berries).
</P>
<P>(d) <I>Other use of acid.</I> A winemaker desiring to use an acid other than the acids allowed in paragraphs (a) and (b) of this section to correct natural deficiencies shall follow the procedure prescribed in § 24.250. A winemaker desiring to use acid to stabilize standard wine shall follow the requirements prescribed by § 24.244. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991; T.D. ATF-350, 58 FR 52230, Oct. 7, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 24.183" NODE="27:1.0.1.1.19.6.347.9" TYPE="SECTION">
<HEAD>§ 24.183   Use of distillates containing aldehydes.</HEAD>
<P>Distillates containing aldehydes may be received on wine premises for use in the fermentation of wine and then returned to the distilled spirits plant from which distillates were withdrawn as distilling material. Distillates produced from one kind of fruit may not be used in the fermentation of wine made from a different kind of fruit. Distillates containing aldehydes which are received at bonded wine premises and not immediately used will be placed in a locked room or tank on bonded wine premises. Distillates containing aldehydes may not be mingled with wine spirits. If the distillates contain less than 0.1 percent of aldehydes, the proprietor shall comply with any additional condition relating to the receipt, storage, and use which the appropriate TTB officer may require to assure that the distillates are properly used and accounted for. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended (26 U.S.C. 5367, 5373))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.184" NODE="27:1.0.1.1.19.6.347.10" TYPE="SECTION">
<HEAD>§ 24.184   Use of volatile fruit-flavor concentrate.</HEAD>
<P>(a) <I>General.</I> In the cellar treatment of natural wine of the winemaker's own production there may be added volatile fruit-flavor concentrate produced from the same kind of fruit or from the same variety of berry or grape so long as the proportion of volatile fruit-flavor concentrate added to the wine does not exceed the equivalent proportion of volatile fruit-flavor concentrate of the original juice or must from which the wine was produced.
</P>
<P>(b) <I>Use of juice or must from which volatile fruit-flavor has been removed.</I> Juice, concentrated fruit juice, or must processed at a concentrate plant is considered to be pure juice, concentrated fruit juice, or must even though volatile fruit-flavor has been removed if, at a concentrate plant or at bonded wine premises, there is added to the juice, concentrated fruit juice, or must (or in the case of bonded wine premises, to wine of the winemaker's own production made therefrom), either the identical volatile fruit-flavor removed or an equivalent quantity of volatile fruit-flavor concentrate derived from the same kind of fruit or from the same variety of berry or grape.
</P>
<P>(c) <I>Certificate required.</I> The proprietor, prior to the use of volatile fruit flavor concentrate in wine production, shall obtain a certificate from the producer stating the kind of fruit or the variety of berry or grape from which it was produced and the total solids content of the juice before and after concentration. 
</P>
<SECAUTH TYPE="N">(Sec. 201. Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.185" NODE="27:1.0.1.1.19.6.347.11" TYPE="SECTION">
<HEAD>§ 24.185   Use of wood to treat natural wine.</HEAD>
<P>(a) <I>Treatment by contact.</I> Natural wine may be treated with any wood that is consistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act. The wood may be in the form of barrels, staves, chips, particles, or storage tanks that were used for the addition of wine spirits if the tanks are used for the baking of wine. The wood may be toasted (that is, heated to low, medium, or high, temperature without undergoing combustion), or charred and the wood must not be otherwise treated. If wine is treated with charred wood, the wood may not remove color from the wine.
</P>
<P>(b) <I>Use of wood essences and extracts.</I> A proprietor may make or purchase for blending purposes wine that has been heavily treated with wood; however, wood preparations made with an alcohol solution stronger than 24 percent alcohol by volume are essences and must be used in accordance with § 24.85. Wood essences and extracts must be consistent with the requirements of the Federal Food, Drug, and Cosmetics Act for that purpose and may be used only in “other wine” in accordance with § 24.218. This paragraph (b) applies to liquid extracts and essences and to the extracts and essences in powder form or dissolved in water after the solvent has been evaporated.
</P>
<P>(c) <I>Use of wooden storage tanks.</I> Wooden storage tanks used for the addition of spirits may be used for the baking of wine.


</P>
<CITA TYPE="N">[T.D. TTB-185, 87 FR 51897, Aug. 24, 2022]






</CITA>
</DIV8>


<DIV8 N="§ 24.186" NODE="27:1.0.1.1.19.6.347.12" TYPE="SECTION">
<HEAD>§ 24.186   Accidental additions of water.</HEAD>
<P>(a) <I>Accidental additions of water totaling 1 percent or less of the volume of standard wine.</I> When in the production, storage, treatment, or finishing of standard wine, water is accidentally added to a standard wine in an amount that does not exceed 1 percent of the total volume of the wine, such wine shall remain standard wine and the proprietor need not take any action to correct the wine.
</P>
<P>(b) <I>Correction of accidental additions of water.</I> When in the production, storage, treatment, or finishing of standard wine water is accidentally added to a standard wine in an amount that exceeds 1 percent of the volume of the wine, such wine may be corrected by removal of the accidentally added water from the wine in accordance with § 24.252.


</P>
<CITA TYPE="N">[T.D. TTB-185, 87 FR 51897, Aug. 24, 2022]








</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.19.7" TYPE="SUBPART">
<HEAD>Subpart G—Production of Effervescent Wine</HEAD>


<DIV8 N="§ 24.190" NODE="27:1.0.1.1.19.7.347.1" TYPE="SECTION">
<HEAD>§ 24.190   General.</HEAD>
<P>(a) Effervescent wine may be made on bonded wine premises. Where the effervescence results from fermentation of the wine within a closed container, the wine is classified and taxed as sparkling wine or as hard cider, as applicable. In such wine, the use of carbon dioxide, nitrogen gas, or a combination of both, is permitted to maintain counterpressure during transfer and bottling. Wine carbonated by injection of carbon dioxide is classified and taxed as artificially carbonated wine or as hard cider, as applicable. (For wine to be classified and taxed at the hard cider tax rate, it must meet the requirements set forth in § 24.331, including the limitation of not more than 0.64 gram of carbon dioxide per 100 milliliters.)
</P>
<P>(b) Effervescent wine and any wine used as a base in the production of effervescent wine may not have an alcohol content in excess of 14 percent by volume. However, wine containing more than 14 percent alcohol by volume may be used in preparing a dosage for finishing effervescent wine.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-147, 82 FR 7663, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.191" NODE="27:1.0.1.1.19.7.347.2" TYPE="SECTION">
<HEAD>§ 24.191   Segregation of operations.</HEAD>
<P>Where more than one process of producing effervescent wine is used, the appropriate TTB officer may require the portion of the premises used for the production and storage of wine made by each process (bottle fermenting, bulk fermenting, or injecting carbon dioxide) to be segregated as provided by § 24.27.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5365))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-147, 82 FR 7663, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.192" NODE="27:1.0.1.1.19.7.347.3" TYPE="SECTION">
<HEAD>§ 24.192   Process and materials.</HEAD>
<P>In preparing still wine or still hard cider for the production of effervescent wine, sugar and acid of the kinds and within the limitations prescribed in § 24.182 may be added with yeast or yeast culture to acclimate the yeast and to facilitate the process of secondary fermentation or to correct the wine. Fruit syrup, sugar, wine, wine spirits, and acid may be used in preparing a finishing dosage for effervescent wine provided the dosage does not exceed 10 percent by volume of the finished product. Where the proprietor desires to use more than 10 percent by volume finishing dosage, the proprietor shall file for a formula approval under § 24.80. The fruit syrup, wine spirits and wine used will come from the same kind of fruit as the wine from which the effervescent wine is made. In the production of effervescent wine, taxpaid wine spirits or wine spirits withdrawn tax-free may be used. Tax-free wine spirits may only be used in the production of effervescent wine that is a natural wine. In the refermentation and finishing of a sparkling wine or sparkling hard cider, the acids and materials specifically authorized in § 24.246 may be used.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7663, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.193" NODE="27:1.0.1.1.19.7.347.4" TYPE="SECTION">
<HEAD>§ 24.193   Conversion into still wine or still hard cider.</HEAD>
<P>Effervescent wine may be dumped for use as still wine or still hard cider. The dumping process will allow the loss of carbon dioxide remaining in the wine. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5041, 5361))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7663, Jan. 23, 2017]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.19.8" TYPE="SUBPART">
<HEAD>Subpart H—Production of Special Natural Wine</HEAD>


<DIV8 N="§ 24.195" NODE="27:1.0.1.1.19.8.347.1" TYPE="SECTION">
<HEAD>§ 24.195   General.</HEAD>
<P>Special natural wine is a flavored wine made on bonded wine premises from a base of natural wine. The flavoring added may include natural herbs, spices, fruit juices, natural aromatics, natural essences or other natural flavoring, in quantities or proportions such that the resulting product derives character and flavor distinctive from the base wine and distinguishable from other natural wine. Fruit juices may not be used to give to one natural wine the flavor of another but may be used with herbs or spices to produce a wine having a distinctive flavor. Caramel and sugar may be used in a special natural wine. However, the minimum 60 degrees Brix limitations prescribed in the definition of “Liquid pure sugar” and “Invert sugar syrup” in § 24.10 do not apply to materials used in the manufacture of vermouth. Finished vermouth will contain a minimum of 80 percent by volume natural wine. Heavy bodied blending wine and juice or concentrated fruit juice to which wine spirits have been added may be used in the production of special natural wine pursuant to formula approval. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)


</APPRO>
</DIV8>


<DIV8 N="§ 24.196" NODE="27:1.0.1.1.19.8.347.2" TYPE="SECTION">
<HEAD>§ 24.196   Formula required.</HEAD>
<P>Before producing any special natural wine, the proprietor shall receive approval of the formula by which it is to be made as provided by § 24.80. Any change in a formula will be approved in advance as provided by § 24.81.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)


</APPRO>
</DIV8>


<DIV8 N="§ 24.197" NODE="27:1.0.1.1.19.8.347.3" TYPE="SECTION">
<HEAD>§ 24.197   Production by fermentation.</HEAD>
<P>In producing special natural wine by fermentation, flavoring materials may be added before or during fermentation. Special natural wine produced by fermentation may be ameliorated in the same manner and to the same extent as natural wine made from the same fruit. Spirits may not be added to special natural wine with the exception of spirits contained in the natural wine used as a base or in authorized essences made on bonded wine premises as provided in § 24.86 or in approved essences made elsewhere. Upon removal of the wine from fermenters, the volume of liquid will be determined accurately and recorded as wine produced. The quantity of liquid in fermenters at the close of each reporting period will be reported on the TTB F 5120.17, Report of Bonded Wine Premises Operations. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by ATF-338, 58 FR 19064, Apr. 12, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 24.198" NODE="27:1.0.1.1.19.8.347.4" TYPE="SECTION">
<HEAD>§ 24.198   Blending.</HEAD>
<P>Special natural wine may be blended with other special natural wine of the same class and kind, and with heavy bodied blending wine, or natural wine of the same kind of fruit, in the further production of special natural wine. The blending of special natural wines produced under different formulas requires the filing and approval of a formula authorizing a blending; however, where two or more formulas have been approved for the production of special natural wine of the same type, e.g., producing a sweet vermouth by blending sweet vermouths produced under two or more approved formulas, the submission and approval of an additional formula is not required. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)


</APPRO>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.19.9" TYPE="SUBPART">
<HEAD>Subpart I—Production of Agricultural Wine</HEAD>


<DIV8 N="§ 24.200" NODE="27:1.0.1.1.19.9.347.1" TYPE="SECTION">
<HEAD>§ 24.200   General.</HEAD>
<P>Agricultural wine may be produced on bonded wine premises from suitable agricultural products other than the juice of fruit. Water or sugar, or both, may be used within the limitations of this subpart in the production of agricultural wine. Agricultural wine may not be flavored or colored; however, hops may be used in the production of honey wine. Spirits may not be used in the production of the wine and a wine made from one agricultural product may not be blended with a wine made from another agricultural product. Agricultural wine made with sugar in excess of the limitations of this subpart is other than standard wine and will be segregated and clearly identified. Since grain, cereal, malt, or molasses are not suitable materials for the production of agricultural wine, these materials may not be received on bonded wine premises. Beverage alcohol products made with these materials are not classed as wine and may not be produced or stored on bonded wine premises.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5387))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.201" NODE="27:1.0.1.1.19.9.347.2" TYPE="SECTION">
<HEAD>§ 24.201   Formula required.</HEAD>
<P>Before producing any agricultural wine, the proprietor shall obtain an approval of the formula and process by which it is to be made pursuant to the provisions of § 24.80. Any change in a formula will be approved in advance as provided by § 24.81. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5387))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.202" NODE="27:1.0.1.1.19.9.347.3" TYPE="SECTION">
<HEAD>§ 24.202   Dried fruit.</HEAD>
<P>In the production of wine from dried fruit, a quantity of water sufficient to restore the moisture content to that of the fresh fruit may be added. If it is desired not to restore the moisture content of the dried fruit to that of the fresh fruit, or if the moisture content is not known, sufficient water may be added to reduce the density to 22 degrees Brix. If the dried fruit liquid after restoration is found to be deficient in sugar, sufficient pure dry sugar may be added to increase the total solids content to 25 degrees Brix. After addition of water to the dried fruit, the resulting liquid may be ameliorated with either water or sugar, or both, in such total volume as may be necessary to reduce the natural fixed acid level of the mixture to a minimum of 5.0 grams per liter; however, in no event may the volume of the ameliorating material exceed 35 percent of the total volume of the ameliorated juice or wine (calculated exclusive of pulp). Pure dry sugar may be used for sweetening. After complete fermentation or complete fermentation and sweetening, the finished product may not have a total solids content that exceeds 35 degrees Brix. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5387)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-23, 70 FR 2801, Jan. 18, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 24.203" NODE="27:1.0.1.1.19.9.347.4" TYPE="SECTION">
<HEAD>§ 24.203   Honey wine.</HEAD>
<P>(a) Subject to paragraph (b) of this section, a winemaker, in the production of wine from honey, may add the following:
</P>
<P>(1) Water to facilitate fermentation, provided the density of the honey and water mixture is not reduced below 13 degrees Brix;
</P>
<P>(2) Hops in quantities not to exceed one pound for each 1,000 pounds of honey; and
</P>
<P>(3) Pure, dry sugar or honey for sweetening. Sugar may be added only after fermentation is completed.
</P>
<P>(b) After complete fermentation or complete fermentation and sweetening, the wine may not have an alcohol content of more than 14 percent by volume or a total solids content that exceeds 35 degrees Brix.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5387)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-23, 70 FR 2801, Jan. 18, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 24.204" NODE="27:1.0.1.1.19.9.347.5" TYPE="SECTION">
<HEAD>§ 24.204   Other agricultural products.</HEAD>
<P>In the production of wine from agricultural products, other than dried fruit and honey, water and sugar may be added to the extent necessary to facilitate fermentation; <I>Provided,</I> That the total weight of pure dry sugar used for fermentation is less than the weight of the primary winemaking material and the density of the mixture prior to fermentation is not less than 22 degrees Brix, if water, or liquid sugar, or invert sugar syrup is used. Additional pure dry sugar may be used for sweetening, provided the alcohol content of the finished wine after complete fermentation or after complete fermentation and sweetening, is not more than 14 percent by volume and the total solids content is not more than 35 degrees Brix.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended, 1387, as amended (26 U.S.C. 5387))


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.19.10" TYPE="SUBPART">
<HEAD>Subpart J—Production of Other Than Standard Wine</HEAD>


<DIV8 N="§ 24.210" NODE="27:1.0.1.1.19.10.347.1" TYPE="SECTION">
<HEAD>§ 24.210   Classes of wine other than standard wine.</HEAD>
<P>The following classes of wine are not standard wine:
</P>
<P>(a) High fermentation wine, produced as provided in § 24.212;
</P>
<P>(b) Heavy bodied blending wine, produced as provided in § 24.213;
</P>
<P>(c) Spanish type blending sherry, produced as provided in § 24.214;
</P>
<P>(d) Wine products not for beverage use, produced as provided in § 24.215;
</P>
<P>(e) Distilling material, produced as provided in § 24.216;
</P>
<P>(f) Vinegar stock, produced as provided in § 24.217; and
</P>
<P>(g) Wines other than those in classes listed in paragraphs (a), (b), (c), (d), (e), and (f), of this section produced as provided in § 24.218. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1387, as amended (26 U.S.C. 5388))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.211" NODE="27:1.0.1.1.19.10.347.2" TYPE="SECTION">
<HEAD>§ 24.211   Formula required.</HEAD>
<P>The proprietor who desires to produce wine other than standard wine shall first obtain approval of the formula by which it is to be made, except that no formula is required for distilling material or vinegar stock. The formula is filed as provided by § 24.80. Any change in the formula will be approved in advance as provided by § 24.81.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1387, as amended (26 U.S.C. 5388))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0059)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.212" NODE="27:1.0.1.1.19.10.347.3" TYPE="SECTION">
<HEAD>§ 24.212   High fermentation wine.</HEAD>
<P>High fermentation wine is wine made with the addition of sugar within the limitations prescribed for natural wine except that the alcohol content after complete fermentation or complete fermentation and sweetening is more than 14 percent and wine spirits have not been added. Although high fermentation wine is not a standard wine, it is produced, stored, and handled on bonded wine premises subject to the same marking or labeling requirements. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1387, as amended (26 U.S.C. 5365, 5388))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.213" NODE="27:1.0.1.1.19.10.347.4" TYPE="SECTION">
<HEAD>§ 24.213   Heavy bodied blending wine.</HEAD>
<P>Heavy bodied blending wine is wine made for blending purposes from grapes or other fruit without added sugar, and with or without added wine spirits, and having a total solids content in excess of 21 percent. Heavy bodied blending wine may be used in blending with other wine made from the same kind of fruit or for removal upon payment of tax, not for sale or consumption as beverage wine. Upon removal, the shipping containers and shipping records will be marked “Heavy Bodied Blending Wine—Not for Sale or Consumption as Beverage Wine.” 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1387, as amended (26 U.S.C. 5361, 5388))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0298 and 1512-0503)


</APPRO>
</DIV8>


<DIV8 N="§ 24.214" NODE="27:1.0.1.1.19.10.347.5" TYPE="SECTION">
<HEAD>§ 24.214   Spanish type blending sherry.</HEAD>
<P>Blending wine made with partially caramelized grape concentrate may be produced, stored, and handled on, or transferred in bond between, bonded wine premises, or removed upon payment of tax, not for sale or consumption as beverage wine. Wine of a high solids content and dark in color, produced under this section, is designated “Spanish Type Blending Sherry.” Upon removal, the shipping containers will be marked with the applicable designation and the legend “Not for Sale or Consumption as Beverage Wine.” Spanish type blending sherry is not standard wine and may not be blended with standard wine except pursuant to an approved formula or in the further production of this type of wine.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended, 1387, as amended (26 U.S.C. 5361, 5388))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0059 and 1512-0503)


</APPRO>
</DIV8>


<DIV8 N="§ 24.215" NODE="27:1.0.1.1.19.10.347.6" TYPE="SECTION">
<HEAD>§ 24.215   Wine or wine products not for beverage use.</HEAD>
<P>(a) <I>General.</I> Wine, or wine products made from wine, may be treated with methods or materials which render the wine or wine products unfit for beverage use. No wine or wine products so treated may contain more than 21 percent of alcohol by volume at the time of withdrawal free of tax from bonded wine premises; nor may any wine or wine product so withdrawn be used in the compounding of distilled spirits or wine for beverage use or in the manufacture of any product intended to be used in the compounding. Wine or wine products produced under this section will be clearly identified and segregated from beverage wine products while stored on bonded wine premises and may be transferred in bond between bonded wine premises. The shipping records for transfers in bond of nonbeverage wine or wine products will be marked “Not for Sale or Consumption as Beverage Wine.” Upon removal from bonded wine premises free of tax, containers of nonbeverage wine or wine products will be marked to clearly indicate such products are not for sale or consumption as beverage wine, e.g., salted wine, vinegar, nonbeverage cooking wine.
</P>
<P>(b) <I>Salted wine.</I> Salted wine is a wine or wine product not for beverage use produced in accordance with the provisions of this section and having not less than 1.5 grams of salt per 100 milliliter of wine. (12.5 pounds of salt/100 gallons of wine.)
</P>
<P>(c) <I>Vinegar.</I> Vinegar is a wine or wine product not for beverage use produced in accordance with the provisions of this section and having not less than 4.0 grams (4.0 percent) of volatile acidity (calculated as acetic acid and exclusive of sulfur dioxide) per 100 milliliters of wine.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859 and Sec. 455, Pub. L. 98-369, 72 Stat. 1380, as amended (26 U.S.C. 5361, 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0503)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31079, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 24.216" NODE="27:1.0.1.1.19.10.347.7" TYPE="SECTION">
<HEAD>§ 24.216   Distilling material.</HEAD>
<P>Wine may be produced on bonded wine premises from grapes and other fruit, natural fruit products, or fruit residues, for use as distilling material, using any quantity of water desired to facilitate fermentation or distillation. No sugar may be added in the production of distilling material. Distillates containing aldehydes may be used in the fermentation of wine to be used as distilling material. Lees, filter wash, and other wine residues may also be accumulated on bonded wine premises for use as distilling material. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 5361, 5373))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.217" NODE="27:1.0.1.1.19.10.347.8" TYPE="SECTION">
<HEAD>§ 24.217   Vinegar stock.</HEAD>
<P>Vinegar stock may be produced on bonded wine premises with the addition of any quantity of water desired to meet commercial standards for the production of vinegar. Vinegar stock may be made only by the addition of water to wine or by the direct fermentation of the juice of grapes or other fruit with added water.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended (26 U.S.C. 5361))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.218" NODE="27:1.0.1.1.19.10.347.9" TYPE="SECTION">
<HEAD>§ 24.218   Other wine.</HEAD>
<P>(a) <I>General.</I> Other than standard wine not included in other sections in this subpart are considered other wine. Those wines considered to be other wine include:
</P>
<P>(1) Wine made with sugar, water, or sugar and water beyond the limitations prescribed for standard wine.
</P>
<P>(2) Wine made by blending wines produced from different kinds of fruit.
</P>
<P>(3) Wine made with sugar other than pure dry sugar, liquid pure sugar, and invert sugar syrup.
</P>
<P>(4) Wine made with materials not authorized for use in standard wine.
</P>
<P>(b) <I>Production of other wine.</I> Other wine may be made on bonded wine premises but will remain segregated from standard wine. Other wine will have a basic character derived from the primary winemaking material. If sugar is used to make other wine, the aggregate weight of the sugar used before and during fermentation will be less than the weight of the primary wine producing material. Wine spirits may be added to other wine. Upon removal, other wine will be marked or labeled with a designation which will adequately disclose the nature and composition of the wine. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1387, as amended (26 U.S.C. 5365, 5388))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0503)


</APPRO>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.19.11" TYPE="SUBPART">
<HEAD>Subpart K—Spirits</HEAD>


<DIV8 N="§ 24.225" NODE="27:1.0.1.1.19.11.347.1" TYPE="SECTION">
<HEAD>§ 24.225   Production and use of spirits.</HEAD>
<P>(a) <I>Withdrawal of spirits.</I> The proprietor of a bonded wine premises may withdraw and receive wine spirits without payment of tax from the bonded premises of a distilled spirits plant for use as provided in this section.
</P>
<P>(b) <I>Production and use of wine spirits</I>—(1) <I>In general.</I> The only products considered to be wine spirits authorized for use in wine production under this section are brandy or wine spirits produced in a distilled spirits plant (with or without the use of water to facilitate the extraction and distillation) exclusively from:
</P>
<P>(i) Fresh or dried fruit or their residues;
</P>
<P>(ii) Natural wine or wine residues from fresh or dried fruit, including spirits byproducts of authorized wine treatments to reduce alcohol; or
</P>
<P>(iii) Special natural wine. If wine spirits produced from special natural wine contain any flavor characteristics of the special natural wine, those wine spirits may be used only in the production of a special natural wine.
</P>
<P>(2) <I>Distillation proof requirements.</I> The proof of wine spirits at distillation must not be reduced by the addition of water. In addition, a product is not considered to be wine spirits if it is distilled at less than 140 degrees of proof except in the following cases:
</P>
<P>(i) Commercial brandy aged in wood for a period of not less than 2 years, and barreled at not less than 100 degrees of proof, shall be deemed wine spirits for purposes of this section; and
</P>
<P>(ii) Spirits byproducts of alcohol reduction processing authorized under § 24.248 that are produced at a distilled spirits plant and distilled, if necessary, at not less than 90 degrees of proof shall be deemed wine spirits for purposes of this section.
</P>
<P>(3) <I>Addition of sugar after fermentation.</I> When, in the production of natural wine or special natural wine, sugar has been added after fermentation, the wine may not be refermented to develop alcohol from such added sugar and then used in the production of wine spirits.
</P>
<P>(4) <I>Addition of wine spirits to natural wine.</I> (i) Wine spirits produced in the United States may be added to natural wine on bonded wine premises if both the wine and the spirits are produced from the same kind of fruit.
</P>
<P>(ii) In the case of natural still wine, wine spirits may be added in any State only to wine produced by fermentation on bonded wine premises located within the same State.
</P>
<P>(iii) If wine has been ameliorated, wine spirits may be added (whether or not wine spirits were previously added) only if the wine contains not more than 14 percent of alcohol by volume derived from fermentation.
</P>
<P>(c) <I>Spirits other than wine spirits.</I> Spirits other than wine spirits may be received, stored, and used on bonded premises only for the production of nonbeverage wine products.


</P>
<CITA TYPE="N">[T.D. TTB-185, 87 FR 51897, Aug. 24, 2022]








</CITA>
</DIV8>


<DIV8 N="§ 24.226" NODE="27:1.0.1.1.19.11.347.2" TYPE="SECTION">
<HEAD>§ 24.226   Receipt or transfer of spirits.</HEAD>
<P>When spirits are received at the bonded wine premises, the proprietor shall determine that the spirits are the same as described on the transfer record and follow the procedures prescribed by § 19.407 of this chapter. A copy of the transfer record, annotated to show any difference between the description of spirits and quantity received, will be maintained by the proprietor as a record of receipt. If spirits are to be transferred to a distilled spirits plant or to bonded wine premises, the proprietor shall use the transfer record and procedures prescribed by § 19.405 of this chapter.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-92, 76 FR 9171, Feb. 16, 2011]








</CITA>
</DIV8>


<DIV8 N="§ 24.227" NODE="27:1.0.1.1.19.11.347.3" TYPE="SECTION">
<HEAD>§ 24.227   Transfer of spirits by pipeline for immediate use.</HEAD>
<P>Spirits transferred by pipeline for immediate use are gauged either by weight or by volume on the bonded premises of the distilled spirits plant. Where the spirits are gauged on the bonded premises of the distilled spirits plant, the pipelines will be directly connected with the spirits addition tanks. The valves in the pipeline will be closed and locked with a lock at all times except when necessary to be opened for the transfer of spirits. Where the proprietor has placed wine in a spirits addition tank and has determined the quantity of spirits to be added, the spirits may be transferred. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31079, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 24.228" NODE="27:1.0.1.1.19.11.347.4" TYPE="SECTION">
<HEAD>§ 24.228   Transfer of spirits by pipeline to a spirits storage tank.</HEAD>
<P>Where it is desired to transfer spirits by pipeline to bonded wine premises and store the spirits prior to use, there will be provided a suitable tank for storing the spirits. The spirits to be transferred, if not gauged on the bonded premises of the distilled spirits plant, will be gauged by weight or volume on bonded wine premises.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31079, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 24.229" NODE="27:1.0.1.1.19.11.347.5" TYPE="SECTION">
<HEAD>§ 24.229   Tank car and tank truck requirements.</HEAD>
<P>Railroad tank cars and tank trucks used to transport spirits for use in wine production will be constructed, marked, filled, labeled, and inspected in the manner required by regulations in 27 CFR part 19. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1362, as amended (26 U.S.C. 5206, 5214))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.230" NODE="27:1.0.1.1.19.11.347.6" TYPE="SECTION">
<HEAD>§ 24.230   Examination of tank car or tank truck.</HEAD>
<P>Upon arrival of a tank car or tank truck at the bonded wine premises, the proprietor shall carefully examine the car or truck to see whether the seals are intact and whether there is any evidence of tampering or loss by leaking or otherwise. Any evidence of loss will be reported to the appropriate TTB officer. The contents of the tank car or tank truck will be gauged by weight or volume at the time of receipt by the proprietor. If the tank car or tank truck has been accurately calibrated and the calibration chart is available at the bonded wine premises, the spirits may be gauged by volume in the tank car or tank truck. In any case where a volume gauge is made, the actual measurements of the spirits in the gauging tank, tank car, or tank truck, and the temperature of the spirits will be recorded on the copy of the transfer record accompanying the shipment.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1362, as amended, 1381, as amended (26 U.S.C. 5206, 5214, 5366))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.231" NODE="27:1.0.1.1.19.11.347.7" TYPE="SECTION">
<HEAD>§ 24.231   Receipt of spirits in sealed bulk containers.</HEAD>
<P>The proprietor shall examine sealed bulk containers (packages) of spirits received at the bonded wine premises to verify that the containers are the same as those described on the transfer record accompanying the shipment. Any container which appears to have been tampered with or from which spirits appear to have been removed or lost will be gauged by the proprietor and the proprietor shall prepare and submit to the appropriate TTB officer a statement setting forth fully the circumstances and apparent cause of any loss.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended (26 U.S.C. 5366, 5367, 5368, 5373))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0292 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.232" NODE="27:1.0.1.1.19.11.347.8" TYPE="SECTION">
<HEAD>§ 24.232   Gauge of spirits.</HEAD>
<P>(a) If the spirits to be used are in a spirits storage tank on bonded wine premises, or are received immediately prior to use from a distilled spirits plant not adjacent or contiguous to bonded wine premises, the proprietor shall determine the proof of the spirits and the quantity used by volume gauge or by weight. Upon completion of the transfer of spirit from the spirits storage tank to the spirits addition tank, the proprietor shall lock the spirits storage tank.
</P>
<P>(b) If the spirits are received from the adjacent or contiguous bonded premises of a distilled spirits plant and are transferred directly into a spirits addition tank, the gauge of the spirits made on the distilled spirits plant premises will be used. The proprietor at the distilled spirits plant premises shall deliver a transfer record to the proprietor of bonded wine premises who shall acknowledge receipt of the spirits on the transfer record.
</P>
<P>(c) If the spirits are received in packages and the quantity of spirits needed for the addition is not equal to the contents of full packages, a portion of one package may be used and the remnant package returned to the spirits storage room. The proprietor shall gauge the remnant package and attach to it a label showing the date of gauge, the weight of the remnant package, and the proof. The remnant package will be used at the first opportunity.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended (26 U.S.C. 5367, 5368, 5373))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.233" NODE="27:1.0.1.1.19.11.347.9" TYPE="SECTION">
<HEAD>§ 24.233   Addition of spirits to wine.</HEAD>
<P>(a) <I>Prior to the addition of spirits.</I> Wine will be placed in tanks approved for the addition of spirits. The proprietor shall accurately measure the wine, determine its alcohol content, determine the proof of the spirits to be added, calculate the quantity of spirits required, and enter the details in the record of spirits added to wine.
</P>
<P>(b) <I>After the addition of spirits.</I> The proprietor shall thoroughly agitate the contents of the tank to assure a complete mixture of the wine and spirits. The proprietor shall then measure the volume of wine in the tank, take a representative sample of the wine, and test for alcohol content. The result of the measurement and test and the quantity of spirits added will be entered in the record of spirits added to wine. The volume of wine used and the volume of wine resulting from the addition of spirits will be entered in the bulk wine record. The alcohol content of wine after the addition of spirits may not exceed 24 percent by volume. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended, 1383, as amended (26 U.S.C. 5367, 5373, 5382))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.234" NODE="27:1.0.1.1.19.11.347.10" TYPE="SECTION">
<HEAD>§ 24.234   Other use of spirits.</HEAD>
<P>The proprietor producing effervescent wine, formula wine, or essences for which spirits are required may use tax-free wine spirits or brandy. For nonbeverage wine, tax-free spirits other than wine spirits or brandy may also be used. The spirits received by the proprietor will be locked in a secure room or locker on bonded wine premises. The spirits will remain in the original container in the storeroom until withdrawn for use. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended, 1383, as amended (26 U.S.C. 5373, 5382))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7663, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.235" NODE="27:1.0.1.1.19.11.347.11" TYPE="SECTION">
<HEAD>§ 24.235   Taxpayment or destruction of spirits.</HEAD>
<P>(a) <I>Taxpayment of spirits.</I> The proprietor who wants to taxpay spirits shall follow the prepayment of tax procedures of § 19.233 of this chapter.
</P>
<P>(b) <I>Destruction of spirits.</I> The proprietor who wants to destroy spirits shall file an application with the appropriate TTB officer stating the quantity of spirits, the proposed date and method of destruction, and the reason for destruction. Spirits may not be destroyed prior to approval by the appropriate TTB officer. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0292)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999; T.D. TTB-92, 76 FR 9171, Feb. 16, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 24.236" NODE="27:1.0.1.1.19.11.347.12" TYPE="SECTION">
<HEAD>§ 24.236   Losses of spirits.</HEAD>
<P>Losses by theft or any other cause of spirits while on bonded wine premises or in transit are to be determined and reported at the time the losses are discovered. A physical inventory of the spirits storage tanks will be taken at the close of any month during which spirits were used in wine production, or upon completion of spirits use for the month or at any other time required by the appropriate TTB officer. Any loss which has not previously been reported will be determined by the inventory.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008, 5373))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0292)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.237" NODE="27:1.0.1.1.19.11.347.13" TYPE="SECTION">
<HEAD>§ 24.237   Spirits added to juice or concentrated fruit juice.</HEAD>
<P>Juice or concentrated fruit juice to which spirits have been added may not have an alcohol content exceeding 24 percent by volume. Although not considered to be wine, juice or concentrated fruit juice to which spirits have been added will be included in the appropriate tax class of any wine inventory and will be properly identified. Juice or concentrated juice to which wine spirits are added will be reported on the TTB F 5120.17, Report of Bonded Wine Premises Operations, as wine, but a separate record will be maintained. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.19.12" TYPE="SUBPART">
<HEAD>Subpart L—Storage, Treatment and Finishing of Wine</HEAD>


<DIV8 N="§ 24.240" NODE="27:1.0.1.1.19.12.347.1" TYPE="SECTION">
<HEAD>§ 24.240   General.</HEAD>
<P>Wine will be stored on bonded wine premises in buildings or tanks constructed and secured in accordance with the provisions of §§ 24.166 and 24.167. Wine will be stored in tanks, casks, barrels, cased or uncased bottles, or in any other suitable container, which will not contaminate the wine. Specifically authorized materials and processes for the treatment and finishing of wine are listed in §§ 24.246 and 24.248 of this subpart. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1383, as amended, 1395, as amended (26 U.S.C. 5352, 5357, 5382, 5552))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31079, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 24.241" NODE="27:1.0.1.1.19.12.347.2" TYPE="SECTION">
<HEAD>§ 24.241   Decolorizing juice or wine.</HEAD>
<P>(a) <I>Conditions and limitations.</I> If the proprietor wishes to use activated carbon or other decolorizing material to remove color from juice or wine, the following conditions and limitations will be met:
</P>
<P>(1) The wine will retain a vinous character after being treated with activated carbon or other decolorizing material;
</P>
<P>(2) The quantity of activated carbon used to treat the wine, including the juice from which the wine was produced, may not exceed twenty-five pounds per 1,000 gallons (3.0 grams per liter) (see paragraph (b) of this section); and
</P>
<P>(3) The wine treated with decolorizing material will have a color of not less than 0.6 Lovibond in a one-half inch cell or not more than 95 percent transmittance per AOAC Method 11.003-11.004 (see paragraph (c) of this section). However, the proprietor may produce a wine having a color of less than 0.6 Lovibond or more than 95 percent transmittance per AOAC Method 11.003-11.004 by using normal methods and without the use of decolorizing material.
</P>
<P>(b) <I>Transfer in bond.</I> When a consignor proprietor transfers wine treated with activated carbon or other decolorizing material to a consignee proprietor, the consignor proprietor shall record on the shipping record:
</P>
<P>(1) The amount of wine which has been treated under the provisions of this section; and
</P>
<P>(2) The quantity of decolorizing material used in treating the wine, including the juice from which the wine was produced, before its transfer. The consignee proprietor may further treat the wine with decolorizing material as long as the consignee proprietor has a copy of the shipping record and complies with the requirements of this section.
</P>
<P>(c) Incorporation by reference. The “Official Methods of Analysis of the Association of Official Analytical Chemists” (AOAC Method 11.003-11.004; 13th Edition 1980) is incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register, and is available for inspection or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: <I>https://www.archives.gov/federal-register/cfr/ibr-locations.html.</I> The publication is available from the Association of Official Analytical Chemists, 11 North 19th Street, Suite 210, Arlington, Virginia 22209.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended at 69 FR 18803, Apr. 9, 2004; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 24.242" NODE="27:1.0.1.1.19.12.347.3" TYPE="SECTION">
<HEAD>§ 24.242   Authority to use greater quantities of decolorizing material in juice or wine.</HEAD>
<P>(a) <I>Proprietor's notice.</I> If the proprietor desires to remove color from juice prior to fermentation or if color in excess of that normally present in wine develops during the production or storage of a particular lot or lots, and if the proprietor desires to use activated carbon in excess of twenty-five pounds per 1,000 gallons (3.0 grams per liter) of juice or wine to remove this color, the proprietor, prior to starting the treatment, shall submit to the appropriate TTB officer a written notice for each lot of juice or wine to be treated for decolorization. The written notice will state
</P>
<P>(1) The reason for the treatment;
</P>
<P>(2) The volume, kind, and type of juice or wine to be treated;
</P>
<P>(3) The kind and quantity of decolorizing material to be used; and,
</P>
<P>(4) The length of time the decolorizing material is in contact with the juice or wine.
</P>
<P>(b) <I>Action by the appropriate TTB officer on proprietor's notice.</I> Upon receipt of the proprietor's notice, the appropriate TTB officer may require the proprietor to submit samples representative of the lot of juice or wine for examination by the TTB laboratory.
</P>
<P>(c) <I>Samples and chemical analysis</I>—(1) <I>Samples.</I> If the appropriate TTB officer requires samples under paragraph (b) of this section, the proprietor shall prepare samples representative of the lot of juice or wine for examination. The samples will consist of:
</P>
<P>(i) The juice or wine before treatment with decolorizing material,
</P>
<P>(ii) The juice or wine after treatment with decolorizing material, and
</P>
<P>(iii) The decolorizing material used.
</P>
<P>(2) <I>Chemical analysis.</I> If the TTB chemical analyses of the samples shows that the proposed treatment would remove only color and will not remove the vinous characteristics of the wine, the appropriate TTB officer will return an approved copy of the proprietor's written notice. If the TTB chemical analysis shows that the proposed treatment is not acceptable, the appropriate TTB officer will send the proprietor a letter stating the reason(s) for disallowing the proposed treatment. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0292 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.243" NODE="27:1.0.1.1.19.12.347.4" TYPE="SECTION">
<HEAD>§ 24.243   Filtering aids.</HEAD>
<P>Inert fibers, pulps, earths, or similar materials, may be used as filtering aids in the cellar treatment and finishing of wine. Agar-agar, carrageenan, cellulose, and diatomaceous earth are commonly employed inert filtering and clarifying aids. In general, there is no limitation on the use of inert materials and no records need be maintained concerning their use. However, if the inert material is dissolved in water prior to addition to wine, then the records required by § 24.301 will be maintained. Filtering aids which contain active chemical ingredients or which may alter the character of wine, may be used only in accordance with the provisions of § 24.246. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.244" NODE="27:1.0.1.1.19.12.347.5" TYPE="SECTION">
<HEAD>§ 24.244   Use of acid to stabilize standard wine.</HEAD>
<P>Standard wine other than citrus wine, regardless of the fixed acid level, may be stabilized as a part of the finishing process by the addition of citric acid within the limitations of § 24.246. Standard wine (including citrus wine) may be stabilized by the addition of fumaric acid within the limitations of § 24.246. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.245" NODE="27:1.0.1.1.19.12.347.6" TYPE="SECTION">
<HEAD>§ 24.245   Use of carbon dioxide in still wine and still hard cider.</HEAD>
<P>(a) <I>Use of carbon dioxide.</I> The addition of carbon dioxide to (and retention of carbon dioxide in) still wine and still hard cider is permitted if at the time of removal for consumption or sale, the still wine or still hard cider does not contain more than 0.392 gram of carbon dioxide per 100 milliliters of wine.
</P>
<P>(b) <I>Tolerance limit.</I> A tolerance of not more than 0.009 gram per 100 milliliters to the maximum limitation of carbon dioxide in still wine and still hard cider will be allowed where the amount of carbon dioxide in excess of 0.392 gram per 100 milliliters is due to mechanical variations that cannot be completely controlled under good commercial practice. A tolerance will not be allowed where it is found by the appropriate TTB officer that the proprietor continuously or intentionally exceeds 0.392 gram of carbon dioxide per 100 milliliters of wine or where the variation results from the use of methods or equipment determined by the appropriate TTB officer to be not in accordance with good commercial practice.
</P>
<P>(c) <I>Penalties.</I> Penalties are provided in 26 U.S.C. 5662 for any person who, whether by manner of packaging or advertising or by any other form of representation, misrepresents any still wine or still hard cider to be effervescent wine or a substitute for effervescent wine.
</P>
<P>(d) <I>Records.</I> Records for the use of carbon dioxide in still wine must be maintained in accordance with § 24.319 of this section.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended, 1381, as amended, 1407, as amended (26 U.S.C. 5041, 5367, 5662))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-147, 82 FR 7663, Jan. 23, 2017]




</CITA>
</DIV8>


<DIV8 N="§ 24.246" NODE="27:1.0.1.1.19.12.347.7" TYPE="SECTION">
<HEAD>§ 24.246   Materials authorized for the treatment of wine and juice.</HEAD>
<P>(a) <I>Wine and juice.</I> Materials used in the process of filtering, clarifying, or purifying wine may remove cloudiness, precipitation, and undesirable odors and flavors, but the addition of any substance foreign to wine that changes the character of the wine, or the abstraction of ingredients so as to change the character of the wine, if not consistent with good commercial practice, is not permitted on bonded wine premises. The materials listed in this section are approved as being consistent with good commercial practice in the production, cellar treatment, or finishing of wine and, where applicable, in the treatment of juice, within the “Specific TTB limitation” of this section and subject to the following conditions:
</P>
<P>(1) If the U.S. Food and Drug Administration (FDA) informs TTB that a specified use or limitation of any material listed in this section is inconsistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act, the appropriate TTB officer may cancel or amend the approval for use of the material in the treatment of wine and juice in the production, cellar treatment, or finishing of wine; and
</P>
<P>(2) Where water is added to facilitate the solution or dispersal of a material, the volume of water added, whether the material is used singly or in combination with other water-based treating materials, may not total more than 1 percent of the volume of the treated wine or juice, or of both the wine and the juice, from which the wine is produced.
</P>
<P>(b) <I>Use in combination or in multiple lots.</I> Subject to the conditions specified in paragraph (a) of this section, a proprietor may use the materials listed in this section in combination, provided that each material is used for its specified use and in accordance with any limitation specified for that use. If a proprietor uses several lots that contain the same material, it is the proprietor's responsibility to ensure that the cumulative amount of the material does not exceed the limitation specified in this section for that material.
</P>
<P>(c) <I>Formula wine.</I> In addition to the materials listed in this section, other materials may be used in formula wine if approved for such use.
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 1 to Paragraph (<E T="01">c</E>)—Materials Authorized for Treatment of Wine and Juice
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Materials and use
</TH><TH class="gpotbl_colhed" scope="col">Specific TTB limitation


<br/>(if applicable)
</TH><TH class="gpotbl_colhed" scope="col">FDA reference
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Acacia (gum arabic): To clarify and stabilize 
<sup>1</sup> wine</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 16 pounds per 1,000 gallons (1.9 g/L) of wine</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1330.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Acetaldehyde: For color stabilization of juice prior to concentration</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 300 ppm (300 mg/L), and the finished concentrate must have no detectable level of the material.
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated September 8, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Activated carbon:
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To assist precipitation during fermentation</TD><TD align="left" class="gpotbl_cell">27 CFR 24.176</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated September 8, 2016, which states that the activated carbon must meet the specifications in the Food Chemicals Codex and be removed from the wine.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To clarify and purify wine</TD><TD align="left" class="gpotbl_cell">The amount used to clarify and purify wine must be included in the total amount of activated carbon used to remove excessive color from wine and/or juice. 27 CFR 24.241 and 24.242</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated January 26, 1979, which states that the activated carbon must meet the specifications in the Food Chemicals Codex and be removed from the wine.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To remove color from wine and/or juice from which wine is produced</TD><TD align="left" class="gpotbl_cell">The amount used to treat the wine, including the juice from which the wine was produced, must not exceed 25 pounds per 1000 gallons (3 g/L). If the amount necessary exceeds this limit, a notice is required pursuant to 27 CFR 24.242</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated January 26, 1979, which states that the activated carbon must meet the specifications in the Food Chemicals Codex and be removed from the wine.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Albumen (egg white): Fining agent for wine</TD><TD align="left" class="gpotbl_cell">May be prepared in a light brine 1 ounce (28.35 grams) potassium chloride, 2 pounds (907.2 grams) egg white, 1 gallon (3.785 L) of water. Usage of brine not to exceed 1.5 gallons per 1,000 gallons (1.5 milliliters per liter) of wine</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated September 8, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Alumino-silicates (hydrated) e.g., Bentonite (Wyoming clay) and Kaolin: To clarify and stabilize 
<sup>1</sup> wine or juice</TD><TD align="left" class="gpotbl_cell">None</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1155


<br/>FDA advisory opinion dated July 26, 1985.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ascorbic acid <E T="03">iso</E>-ascorbic acid (erythorbic acid): To prevent oxidation of color and flavor components of juice or wine</TD><TD align="left" class="gpotbl_cell">May be added to grapes, other fruit (including berries), and other primary wine making materials, or to the juice of such materials, or to the wine, within limitations which do not alter the class or type of the wine</TD><TD align="left" class="gpotbl_cell">21 CFR 182.3013 and 182.3041.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Bakers yeast mannoprotein: To stabilize 
<sup>1</sup> wine from the precipitation of potassium bitartrate crystals</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 3.3 pounds per 1000 gallons (400 mg/L) of wine</TD><TD align="left" class="gpotbl_cell">GRAS (generally recognized as safe) Notice No. GRN 000284.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Calcium carbonate (CaCO<E T="52">3</E>) (with or without calcium salts of tartaric and malic acids):
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To reduce the excess natural acids in high acid wine, or in juice prior to or during fermentation</TD><TD align="left" class="gpotbl_cell">The natural or fixed acids must not be reduced below 40 pounds per 1000 gallons (4.79 g/L)</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1069, 184.1099, and 184.1191.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">As a fining agent for cold stabilization</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 30 pounds per 1000 gallons (3.59 g/L) of wine.
</TD><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Calcium sulfate (gypsum): To lower pH in sherry wine</TD><TD align="left" class="gpotbl_cell">The sulfate content of the finished wine must not exceed 1.67 pounds per 1000 gallons (0.2 g/L), expressed as potassium sulfate. 27 CFR 24.214</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1230.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Carbon dioxide (including food grade dry ice): To stabilize 
<sup>1</sup> and preserve wine</TD><TD align="left" class="gpotbl_cell">See 27 CFR 24.245</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1240.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Casein, potassium salt of casein: To clarify wine</TD><TD align="left" class="gpotbl_cell">See 27 CFR 24.243</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated September 8, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Chitosan from <E T="03">Aspergillus niger:</E> To remove spoilage organisms such as <E T="03">Brettanomyces</E> from wine</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 0.04 pounds per 1 gallon (500 g/100 L) of wine</TD><TD align="left" class="gpotbl_cell">GRAS Notice No. GRN 000397.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Citric acid:
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To correct natural acid deficiencies in certain juice or wine</TD><TD align="left" class="gpotbl_cell">See 27 CFR 24.182 and 24.192</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1033.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To stabilize 
<sup>1</sup> wine other than citrus wine</TD><TD align="left" class="gpotbl_cell">The amount of citric acid must not exceed 5.8 pounds per 1000 gallons (0.7 g/L). 27 CFR 24.244</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1033.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Copper sulfate: To remove hydrogen sulfide and/or mercaptans from wine</TD><TD align="left" class="gpotbl_cell">The quantity of copper sulfate (calculated as copper) added to wine must not exceed 6 ppm (6mg/L).
<sup>2</sup> The residual level of copper in the finished wine must not exceed 0.5 ppm (0.5 mg/L).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">21 CFR 184.1261.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Defoaming agents (polyoxyethylene 40 monostearate, silicon dioxide, dimethylpoly-siloxane, sorbitan monostearate, glyceryl mono-oleate and glyceryl dioleate): To control foaming, fermentation adjunct</TD><TD align="left" class="gpotbl_cell">Defoaming agents which are 100 percent active may be used in amounts not exceeding 0.15 pounds per 1000 gallons (18 mg/L) of wine. Defoaming agents which are 30 percent active may be used in amounts not exceeding 0.5 pounds per 1000 gallons (60 mg/L) of wine. Silicon dioxide must be completely removed by filtration. The amount of silicon remaining in the wine must not exceed 10 ppm (10 mg/L).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">21 CFR 173.340 and 184.1505.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Dimethyl dicarbonate (DMDC): To sterilize and stabilize 
<sup>1</sup> wine</TD><TD align="left" class="gpotbl_cell">DMDC may be added to wine in a cumulative amount not to exceed 200 ppm (200 mg/L).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">21 CFR 172.133.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Enzymatic activity: Various enzymes and uses, as shown in the following entries:</TD><TD align="left" class="gpotbl_cell">The enzyme preparation used must be prepared from nontoxic and nonpathogenic microorganisms.
</TD><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Carbohydrase (<E T="03">alpha</E>-Amylase): To convert starches to fermentable carbohydrates</TD><TD align="left" class="gpotbl_cell">The amylase enzyme activity must be derived from:
</TD><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"><E T="03">Aspergillus niger, Aspergillus oryzae, Bacillus subtilis,</E> or barley malt; or


<br/>from <E T="03">Rhizopus oryzae;</E> or

<br/>from <E T="03">Bacillus licheniformis.</E></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion of August 18, 1983.


<br/>21 CFR 173.130.

<br/>21 CFR 184.1027.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Carbohydrase (<E T="03">beta</E>-Amylase): To convert starches to fermentable carbohydrates</TD><TD align="left" class="gpotbl_cell">The amylase enzyme must be derived from barley malt</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 18, 1983.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Carbohydrase (Glucoamylase, Amylogluco-sidase): To convert starches to fermentable carbohydrates</TD><TD align="left" class="gpotbl_cell">The amylase enzyme activity must be derived from <E T="03">Aspergillus niger, Aspergillus oryzae,</E> or


<br/>from <E T="03">Rhizopus oryzae,</E>

<br/>or from<E T="03"> Rhizopus niveus.</E></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 18, 1983.


<br/>21 CFR 173.130.

<br/>21 CFR 173.110.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Carbohydrase (pectinase, cellulase, hemicellulase): To facilitate separation of juice from the fruit</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from <E T="03">Aspergillus aculeatus.</E></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated December 19, 1996.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Catalase: To clarify and stabilize 
<sup>1</sup> wine</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from <E T="03">Aspergillus niger</E> or bovine liver</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 18, 1983.


<br/>21 CFR 184.1034.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Cellulase: To clarify and stabilize 
<sup>1</sup> wine and facilitate separation of the juice from the fruit</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from <E T="03">Aspergillus niger</E></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 18, 1983.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Cellulase (beta-glucanase): To clarify and filter wine and juice</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from <E T="03">Trichoderma longibrachiatum</E> or<E T="03"> Trichoderma harzianum.</E></TD><TD align="left" class="gpotbl_cell">For beta-glucanase derived from <E T="03">Trichoderma longibrachiatum,</E> 21 CFR 184.1250.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"></TD><TD align="left" class="gpotbl_cell">For beta-glucanase derived from <E T="03">Trichoderma harzianum,</E> GRAS Notice No. GRN 000149.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Glucose oxidase: To clarify and stabilize 
<sup>1</sup> wine</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from <E T="03">Aspergillus niger</E></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion of August 18, 1983.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Lysozyme: To stabilize 
<sup>1</sup> wines from malolactic acid bacterial degradation</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 500 ppm (500 mg/L).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated December 15, 1993.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Pectinase: To clarify and stabilize 
<sup>1</sup> wine and to facilitate separation of juice from the fruit</TD><TD align="left" class="gpotbl_cell">The enzyme activity used must be derived from <E T="03">Aspergillus niger</E></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 18, 1983.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Protease (general): To reduce or to remove heat labile proteins</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from:


<br/><E T="03">Aspergillus niger</E> or <E T="03">Bacillus subtilis;</E> or

<br/>from<E T="03"> Bacillus licheniformis</E></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 18, 1983.


<br/>21 CFR 184.1027.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Protease (Bromelin): To reduce or remove heat labile proteins.</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from pineapple (<E T="03">Ananas comosus</E> (L.) or <E T="03">Ananas bracteatus</E> (L.))</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 18, 1983.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Protease (Ficin): To reduce or remove heat labile proteins</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from fig (<E T="03">Ficus spp.</E>)</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1316.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Protease (Papain): To reduce or remove heat labile proteins</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from papaya (<E T="03">Carica papaya</E> (L.))</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1585.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Protease (Pepsin): To reduce or remove heat labile proteins</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from porcine or bovine stomachs</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1595, FDA advisory opinion dated August 18, 1983.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Protease (Trypsin): To reduce or remove heat labile proteins</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from porcine or bovine pancreas</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 18, 1983.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Urease: To reduce levels of naturally occurring urea in wine to help prevent the formation of ethyl carbamate</TD><TD align="left" class="gpotbl_cell">The enzyme activity must be derived from <E T="03">Lactobacillus fermentum.</E> Use is limited to not more than 200 ppm (200 mg/L) and must be filtered prior to final packaging.
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">21 CFR 184.1924.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ethyl maltol: To stabilize 
<sup>1</sup> wine</TD><TD align="left" class="gpotbl_cell">Use authorized at a maximum level of 100 ppm (100 mg/L) in all standard wines except natural wine produced from <E T="03">Vitis vinifera</E> grapes.
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated December 1, 1986.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fermentation aids: To facilitate fermentation of juice and wine.
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Ammonium phosphate/diammonium phosphate (<E T="03">mono-</E> and <E T="03">di</E> basic)</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 8 pounds per 1000 gallons (0.96 g/L)</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Biotin (vitamin B7)</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 25 ppb (25 ng/mL).
<sup>3</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Calcium pantothenate (vitamin B5)</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 1.5 ppm (1.5 mg/L).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Folic acid (folate)</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 100 ppb (100 ng/mL).
<sup>3</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Inositol (myo-inositol)</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 2 ppm (2 mg/L).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Magnesium sulfate</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 15 ppm (15 mg/L).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Niacin (vitamin B3)</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 1 ppm (1 mg/L).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Pyridoxine hydrochloride (vitamin B6)</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 150 ppb (150 ng/mL).
<sup>3</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Soy flour (defatted)</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 2 pounds per 1000 gallons (0.24 g/L) of wine</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Thiamine hydrochloride</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 0.005 pounds per 1000 gallons (0.6 mg/L) of wine or juice</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Yeast, autolyzed</TD><TD align="left" class="gpotbl_cell">None</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Yeast, cell wall/membranes of autolyzed yeast</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 3 pounds per 1000 gallons (0.36 g/L) of wine or juice</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated August 29, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ferrous sulfate: To clarify and stabilize 
<sup>1</sup> wine</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 3 ounces per 1000 gallons (0.022 g/L) of wine</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1315.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fractionated potato protein isolates: Fining agent for wine</TD><TD align="left" class="gpotbl_cell">Use must not exceed 500 ppm 
<sup>2</sup> (50 g/hL) of wine</TD><TD align="left" class="gpotbl_cell">GRAS Notice No. GRN 000447.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Fumaric acid:
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To correct natural acid deficiencies in grape wine</TD><TD align="left" class="gpotbl_cell">The fumaric acid content of the finished wine must not exceed 25 pounds per 1000 gallons (3 g/L). 27 CFR 24.182 and 24.192</TD><TD align="left" class="gpotbl_cell">21 CFR 172.350.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To stabilize 
<sup>1</sup> wine</TD><TD align="left" class="gpotbl_cell">The fumaric acid content of the finished wine must not exceed 25 pounds per 1000 gallons (3 g/L). 27 CFR 24.244</TD><TD align="left" class="gpotbl_cell">21 CFR 172.350.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Gelatin (food grade): To clarify juice or wine</TD><TD align="left" class="gpotbl_cell">None</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated September 8, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Granular cork: To smooth wine</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 10 pounds per 1000 gallons of wine (1.2 g/L)</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated February 25, 1985.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Isinglass: To clarify wine</TD><TD align="left" class="gpotbl_cell">None</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated February 25, 1985.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Lactic acid: To correct natural acid deficiencies in grape wine</TD><TD align="left" class="gpotbl_cell">27 CFR 24.182 and 24.192</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1061.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Malic acid: To correct natural acid deficiencies in juice or wine</TD><TD align="left" class="gpotbl_cell">27 CFR 24.182 and 24.192</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1069.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Malolactic bacteria: To stabilize 
<sup>1</sup> grape wine</TD><TD align="left" class="gpotbl_cell">Malolactic bacteria of the type <E T="03">Leuconostoc oenos</E> (<E T="03">Oenococcus oeni)</E> may be used in treating wine</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated February 25, 1985.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Maltol: To stabilize 
<sup>1</sup> wine</TD><TD align="left" class="gpotbl_cell">Use authorized at a maximum level of 2 pounds per 1000 gallons (240 mg/L) in all standard wine except natural wine produced from <E T="03">Vitis vinifera</E> grapes</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated December 1, 1986.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Milk products (pasteurized whole, skim, or half-and-half):
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Fining agent for grape wine</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 2 parts of milk products per 1,000 parts (0.2 percent V/V) of wine
</TD><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To remove off flavors in wine</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 10 parts of milk products per 1,000 parts (1 percent V/V) of wine
</TD><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Nitrogen gas: To maintain pressure during filtering and bottling or canning of wine and to prevent oxidation of wine</TD><TD align="left" class="gpotbl_cell">None</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1540.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Oxygen and compressed air: Various uses in juice and wine</TD><TD align="left" class="gpotbl_cell">None
</TD><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Polyvinylpolypyrrolidone (PVPP): To clarify and stabilize 
<sup>1</sup> wine and to remove color from red wine or juice</TD><TD align="left" class="gpotbl_cell">The amount used to treat the wine, including the juice from which the wine was produced, must not exceed 60 pounds per 1000 gallons (7.19 g/L) and must be removed during filtration. PVPP may be used in a continuous or batch process</TD><TD align="left" class="gpotbl_cell">21 CFR 173.50.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Polyvinylpyrrolidone (PVP)/polyvinylimidazole (PVI) polymer (terpolymer of 1-vinylimidazole, 1-vinylpyrrolidone, and 1,2-divinylimidazolidinone; CAS 87865-40-5 (Chemical Abstracts Service Registration Number)): To remove heavy metal ions and sulfides from wine</TD><TD align="left" class="gpotbl_cell">The amount used to treat the wine must not exceed 6.7 pounds per 1000 gallons (80 g/hL) of wine</TD><TD align="left" class="gpotbl_cell">FDA FCN No. 000320.
<sup>4</sup>
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Potassium bitartrate: To stabilize 
<sup>1</sup> grape wine</TD><TD align="left" class="gpotbl_cell">The amount used must not exceed 35 pounds per 1000 gallons (4.19 g/L) of grape wine</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated September 8, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Potassium carbonate and/or potassium bicarbonate: To reduce excess natural acidity in wine and in juice prior to or during fermentation</TD><TD align="left" class="gpotbl_cell">The natural or fixed acids must not be reduced below 0.668 ounces per gallon (5 g/L)</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1619 and 184.1613.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Potassium citrate: pH control agent and sequestrant in the treatment of citrus wines</TD><TD align="left" class="gpotbl_cell">The amount of potassium citrate must not exceed 25 pounds per 1000 gallons (3 g/L) of finished wine. 27 CFR 24.182</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1625.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Potassium meta-bisulfite: To sterilize and preserve wine</TD><TD align="left" class="gpotbl_cell">The sulfur dioxide content of the finished wine must not exceed the limitations prescribed in 27 CFR 4.22</TD><TD align="left" class="gpotbl_cell">21 CFR 182.3637.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Silica gel (colloidal silicon dioxide): To clarify wine or juice</TD><TD align="left" class="gpotbl_cell">Use must not exceed the equivalent of 20 pounds colloidal silicon dioxide at a 30 percent concentration per 1000 gallons (2.4 g/L) of wine. Silicon dioxide must be completely removed by filtration</TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated September 8, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sodium carboxymethyl cellulose: To stabilize 
<sup>1</sup> wine by preventing tartrate precipitation</TD><TD align="left" class="gpotbl_cell"></TD><TD align="left" class="gpotbl_cell">21 CFR 182.1745.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sorbic acid and potassium salt of sorbic acid (potassium sorbate): To sterilize and preserve wine; to inhibit mold growth and secondary fermentation</TD><TD align="left" class="gpotbl_cell">The finished wine must not contain more than 300 ppm (300 mg/L) of sorbic acid.
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">21 CFR 182.3089 and 182.3640.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sulfur dioxide: To sterilize and to preserve wine or juice</TD><TD align="left" class="gpotbl_cell">The sulfur dioxide content of the finished wine must not exceed the limitations prescribed in 27 CFR 4.22(b)(1)</TD><TD align="left" class="gpotbl_cell">21 CFR 182.3862.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Tannin:
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To adjust tannin content in apple juice or in apple wine</TD><TD align="left" class="gpotbl_cell">The residual amount of tannin must not exceed 24 pounds per 1000 gallons (3 g/L), calculated as gallic acid equivalents (GAE). Total tannin must not be increased by more than 150 ppm (150 mg/L; 0.150 g/L) by the addition of tannic acid (polygalloylglucose).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated September 8, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To clarify, or adjust tannin content of, juice or wine (other than apple)</TD><TD align="left" class="gpotbl_cell">The residual amount of tannin, calculated in GAE, must not exceed 6.4 GAE per 1000 gallons of wine (800 mg/L) in white wine and 24 pounds per 1000 gallons (3 g/L) in red wine. Only tannin which does not impart color may be used in the cellar treatment of juice or wine. Total tannin must not be increased by more than 150 ppm (150 mg/L; 0.150 g/L) by the addition of tannic acid (poly-galloylglucose).
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">FDA advisory opinion dated September 8, 2016.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Tartaric acid (L-(+)-tartaric acid):
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">To correct natural acid deficiencies in grape juice or wine and to reduce the pH of grape juice or wine where ameliorating material is used in the production of grape wine</TD><TD align="left" class="gpotbl_cell">Use as prescribed in 27 CFR 24.182 and 24.192</TD><TD align="left" class="gpotbl_cell">21 CFR 184.1099 and GRAS Notice No. GRN 000187.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">
<sup>1</sup> To stabilize—To prevent or to retard unwanted alteration of chemical and/or physical properties.
</P><P class="gpotbl_note">
<sup>2</sup> Parts per million—1 ppm = 0.128 ounces per 1000 gallons = 1 mg/L = 1000 ppb.
</P><P class="gpotbl_note">
<sup>3</sup> Parts per billion—1ppb = 0.000128 ounces per 1000 gallons = 1 mg/1000L.
</P><P class="gpotbl_note">
<sup>4</sup> An effective food contact notification (FCN) applies only to the food contact substance that is the subject of the FCN and is applicable only to the manufacturer/supplier listed within the notification.</P></DIV></DIV>
<CITA TYPE="N">[T.D. TTB-185, 87 FR 51897, Aug. 24, 2022]









</CITA>
</DIV8>


<DIV8 N="§ 24.247" NODE="27:1.0.1.1.19.12.347.8" TYPE="SECTION">
<HEAD>§ 24.247   Materials authorized for the treatment of distilling material.</HEAD>
<P>The materials listed in this section as well as the materials listed in § 24.246 are approved as being acceptable in good commercial practice for use by proprietors in the treatment of distilling material within the limitations specified in this section. If, however, the U.S. Food and Drug Administration (FDA) informs TTB that a specified use or limitation of any material listed in this section is inconsistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act, the appropriate TTB officer may cancel or amend the approval for use of the material in the treatment of distilling material.
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Materials
</TH><TH class="gpotbl_colhed" scope="col">Use
</TH><TH class="gpotbl_colhed" scope="col">Reference or limitation


</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ammonium phosphate/diammonium phosphate (<E T="03">mono-</E>and <E T="03">di</E> basic)</TD><TD align="left" class="gpotbl_cell">Yeast nutrient in distilling material</TD><TD align="left" class="gpotbl_cell">The amount used shall not exceed 10 pounds per 1000 gallons (1.2 g/L). 21 CFR 184.1141a and 184.1141b.


</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Benzoic acid, potassium and sodium salts of benzoic acid</TD><TD align="left" class="gpotbl_cell">To prevent fermentation of the sugar in wine being accumulated as distilling material</TD><TD align="left" class="gpotbl_cell">The amount used shall not exceed 0.1% (w/v) as benzoic acid. GRAS per FDA advisory opinions dated 9/22/82 and 9/8/83. 21 CFR 184.1021 and 184.1733 (GRAS).
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Enzyme activity</TD><TD align="left" class="gpotbl_cell"></TD><TD align="left" class="gpotbl_cell">The enzyme preparation used shall be prepared from nontoxic and nonpathogenic microorganisms in accordance with good manufacturing practice and be approved for use in food by either FDA regulation or by FDA advisory opinion.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Carbohydrase (Glucoamylase, Amylogluco-sidase)</TD><TD align="left" class="gpotbl_cell">To convent starches to fermentable carbohydrates</TD><TD align="left" class="gpotbl_cell">The amylase enzyme activity shall be derived from <E T="03">Aspergillus niger</E> or <E T="03">Aspergillus oryzae</E> per FDA advisory opinion dated 8/18/83 or from <E T="03">Rhizopus oryzae</E> per <E T="03">21 CFR 173.130</E> or from <E T="03">Rhizopus niveus</E> per <E T="03">21 CFR 173.110.</E>


</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Carbohydrase (<E T="03">beta-</E> Amylase)</TD><TD align="left" class="gpotbl_cell">To convent starches to fermentable carbohydrates</TD><TD align="left" class="gpotbl_cell">The amylase enzyme activity shall be derived from barley malt per FDA advisory opinion dated 8/18/83.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Carbohydrase (Glucoamylase, Amylogluco-sidase)</TD><TD align="left" class="gpotbl_cell">To convent starches to fermentable carbohydrates</TD><TD align="left" class="gpotbl_cell">The amylase enzyme actvity shall be derived from <E T="03">Aspergillus niger</E> or <E T="03">Aspergillus oryzae</E> per FDA advisory opinion dated 8/18/83 or from <E T="03">Rhizopus oryzae</E> per 21 CFR 173.130 or from <E T="03">Rhizopus niveus</E> per 21 CFR 173.110.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Copper sulfate</TD><TD align="left" class="gpotbl_cell">To eliminate hydrogen sulfide and mercaptans</TD><TD align="left" class="gpotbl_cell">The finished brandy or wine spirits produced from distilling material to which copper sulfate has been added shall not contain more than 2 parts per million (2 mg/L) residual copper. GRAS per FDA advisory opinion of 7/23/69.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Hydrogen peroxide</TD><TD align="left" class="gpotbl_cell">To reduce the bisulfite aldehyde complex in distilling material</TD><TD align="left" class="gpotbl_cell">The amount used shall not exceed 200 parts per million. 21 CFR 184.1366 (GRAS).
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Potassium permanganate</TD><TD align="left" class="gpotbl_cell">Oxidizing agent</TD><TD align="left" class="gpotbl_cell">The finished brandy or wine spirits produced from distilling material to which potassium permanganate has been added must be free of chemical residue resulting from such treatment. (GRAS)
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sodium hydroxide</TD><TD align="left" class="gpotbl_cell">Acid neutralizing agent</TD><TD align="left" class="gpotbl_cell">The finished brandy or wine spirits produced from distilling material to which sodium hydroxide has been added must be free of chemical residue resulting from such treatment. 21 CFR 184.1763 (GRAS).
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sulfuric acid</TD><TD align="left" class="gpotbl_cell">To effect favorable yeast development in distilling material; to prevent fermentation of the sugar in wine being accumulated as distilling material; to lower pH to 2.5 in order to prevent putrefaction and/or ethyl acetate development</TD><TD align="left" class="gpotbl_cell">27 CFR 24.216 (GRAS), 21 CFR 184.1095 (GRAS).</TD></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-185, 87 FR 51902, Aug. 24, 2022; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024

]



</CITA>
</DIV8>


<DIV8 N="§ 24.248" NODE="27:1.0.1.1.19.12.347.9" TYPE="SECTION">
<HEAD>§ 24.248   Processes authorized for the treatment of wine, juice, and distilling material.</HEAD>
<P>The processes listed in this section are approved as being consistent with good commercial practice for use by proprietors in the production, cellar treatment, or finishing of wine, juice, and distilling material, within the general limitations of this section. If, however, the U.S. Food and Drug Administration (FDA) informs TTB that a specified use or limitation of any material listed in this section is inconsistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act, the appropriate TTB officer may cancel or amend the approval for use of the process in the production, cellar treatment, or finishing of wine, juice, and distilling material.
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Processes Authorized for the Treatment of Wine, Juice, and Distilling Material
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Processes
</TH><TH class="gpotbl_colhed" scope="col">Use
</TH><TH class="gpotbl_colhed" scope="col">Reference or limitation
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cross flow filtration</TD><TD align="left" class="gpotbl_cell">Various processes and uses.
<sup>1</sup>
</TD><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Nanofiltration 
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">To reduce the level of volatile acidity in wine (used with ion exchange), to reduce the ethyl alcohol content of wine.</TD><TD align="left" class="gpotbl_cell">Permeable membranes that are selective for molecules not greater than 500 molecular weight with transmembrane pressures of 200 pounds per square inch (psi) and greater. The addition of water other than that originally present prior to processing will render standard wine “other than standard.” Use must not alter the vinous character of the wine. May be used in combination with osmotic transport.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Reverse osmosis 
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">To reduce the ethyl alcohol content of wine and to remove off flavors in wine.</TD><TD align="left" class="gpotbl_cell">This process must use permeable membranes which are selective for molecules not greater than 150 molecular weight with transmembrane pressures of 250 psi or less.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Ultrafiltration 
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">To remove proteinaceous material from wine; to reduce harsh tannic material from white wine produced from white skinned grapes; to remove pink color from blanc de noir wine; to separate red and white juice and wine into low color and high color fractions for blending purposes, to reduce the ethyl alcohol content of wine.</TD><TD align="left" class="gpotbl_cell">Permeable membranes that are selective for molecules greater than 500 and less than 25,000 molecular weight with transmembrane pressures less than 200 psi. Shall not alter vinous character.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Electrodialysis</TD><TD align="left" class="gpotbl_cell">To aid in the removal of tartrates</TD><TD align="left" class="gpotbl_cell">This process must not alter the vinous character of the wine.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Elimination of sulfur dioxide by physical process</TD><TD align="left" class="gpotbl_cell">To reduce the sulfur dioxide content of juice</TD><TD align="left" class="gpotbl_cell">Use of a physical process to remove sulfur dioxide from juice must not alter the basic character of the juice so treated
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Ion exchange</TD><TD align="left" class="gpotbl_cell">Various applications in the treatment of juice or wine:</TD><TD align="left" class="gpotbl_cell">Anion, cation, and non-ionic resins, except those anionic resins in the mineral acid state, may be used in batch or continuous column processes as total or partial treatment of wine, provided that with regard to juice or finished wine;
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"> </TD><TD align="left" class="gpotbl_cell">1. Such treatment does not alter the fruit character of the juice or wine.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"> </TD><TD align="left" class="gpotbl_cell">2. The treatment does not reduce the color of the juice or wine to less than that normally contained in such juice or wine.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"> </TD><TD align="left" class="gpotbl_cell">3. Treatment does not increase inorganic anions in the juice or wine by more than 10 mg/L.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"> </TD><TD align="left" class="gpotbl_cell">4. The treatment does not reduce the metallic cation concentration in the juice or wine to less than 300 mg/L.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"> </TD><TD align="left" class="gpotbl_cell">5. The treatment does not reduce natural or fixed acid in grape wine below 4 g/L for red table wines, 3 g/L for white table wines, 2.5 g/L for all other grape wines, 4 g/L for wine other than grape wine.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"> </TD><TD align="left" class="gpotbl_cell">6. Treatment does not reduce the pH of the juice or wine to less than pH 2.8 nor increase the pH to more than pH 4.5.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"> </TD><TD align="left" class="gpotbl_cell">7. The resins used have not imparted to the juice or wine any material or characteristic (incidental to the resin treatment) which may be prohibited under any other section of the regulations in this part. The winemaker may employ conditioning and/or regenerating agents consisting of water, fruit acids common to the wine or juice being treated, and inorganic acids, salts and/or bases provided the conditioned or regenerated resin is rinsed with water until the resin and container are essentially free from unreacted (excess) conditioning or regenerating agents prior to the introduction of the juice or wine. 21 CFR 173.25.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Metal reducing matrix sheet processing</TD><TD align="left" class="gpotbl_cell">To reduce the level of metals such as copper and iron in wine</TD><TD align="left" class="gpotbl_cell">(1) The active ingredient, polyvinylimidazol, must not constitute more than 40% by weight of the sheet.
<br/>(2) Use of the sheet must not significantly alter the color of the wine.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Osmotic transport 
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">For alcohol reduction.</TD><TD align="left" class="gpotbl_cell">(1) Use must not alter the vinous character of the wine.


<br/>(2) None of the stripping solution may migrate into the wine.

<br/>(3) May be used in combination with reverse osmosis.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Spinning cone column 
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">To reduce the ethyl alcohol content of wine and to remove off flavors in wine.</TD><TD align="left" class="gpotbl_cell">Use shall not alter vinous character. For standard wine, the same amount of essence must be added back to any lot of wine as was originally removed.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sulfide reducing matrix sheet processing</TD><TD align="left" class="gpotbl_cell">To reduce the level of sulfides in wine</TD><TD align="left" class="gpotbl_cell">(1) The active ingredient, polyvinylimidazol, must not constitute more than 40% by weight of the sheet.
<br/>(2) Use of the sheet must not significantly alter the color of the wine.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Thermal gradient processing</TD><TD align="left" class="gpotbl_cell">To separate wine into low alcohol and high alcohol wine fractions</TD><TD align="left" class="gpotbl_cell">The fractions derived from such processing shall retain vinous character. Such treatment shall not increase the alcohol content of the high alcohol fraction to more than 24 percent by volume. The addition of water other than that originally present in the wine prior to processing will render standard wine “other than standard.”
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell">To separate juice into low Brix and high Brix juice fractions</TD><TD align="left" class="gpotbl_cell">The low Brix fraction derived from such processing may be used in wine production. The high Brix fraction derived from such processing shall not be diluted with water for use in wine production.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Thin film evaporation under reduced pressure 
<sup>2</sup></TD><TD align="left" class="gpotbl_cell">To separate wine into a low alcohol wine fraction and into a higher alcohol distillate.</TD><TD align="left" class="gpotbl_cell">Use shall not alter vinous character. Water separated with alcohol during processing may be recovered by refluxing in a closed continuous system and returned to the wine. The addition of water other than that originally present in the wine prior to processing, will render standard wine “other than standard” wine.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">
<sup>1</sup> In cross-flow filtration, the wine is passed across the filter membrane (tangentially) at positive pressure relative to the permeate side. A proportion of the wine which is smaller than the membrane pore size passes through the membrane as permeate or filtrate; everything else is retained on the feed side of the membrane as retentate.
</P><P class="gpotbl_note">
<sup>2</sup> When used to remove ethyl alcohol (dealcoholization), this process must be done on distilled spirits plant premises. However, reverse osmosis and nanofiltration, under certain limited conditions, may be used on bonded winery premises if ethyl alcohol is only temporarily created within a closed system.</P></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31081, July 9, 1991; T.D. ATF-350, 58 FR 52232, Oct. 7, 1993; T.D. ATF-371, 61 FR 21079, May 9, 1996; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-17, 69 FR 67644, Nov. 19, 2004; T.D. TTB-185, 87 FR 51902, Aug. 24, 2022]



</CITA>
</DIV8>


<DIV8 N="§ 24.249" NODE="27:1.0.1.1.19.12.347.10" TYPE="SECTION">
<HEAD>§ 24.249   Experimentation with new treating material or process.</HEAD>
<P>(a) <I>General.</I> The proprietor may, under the provisions of this section, conduct on bonded wine premises such experimentation with a treating material or process as the appropriate TTB officer finds may be conducted in a manner that will not jeopardize the revenue, conflict with wine operations, or be contrary to law.
</P>
<P>(b) <I>Application.</I> The proprietor who wants to conduct experimentation must file an application with the appropriate TTB officer setting forth in detail the experimentation to be conducted and the facilities and equipment to be used. The proposed experimentation must not be conducted until the appropriate TTB officer has determined that the conduct of such experimentation must not jeopardize the revenue, conflict with wine operations, or be contrary to law, and has approved the application.
</P>
<P>(c) <I>Segregation of operations.</I> Experimentation authorized under this section will be conducted with the degree of segregation from wine operations as may be required by the appropriate TTB officer under the provisions of § 24.27.
</P>
<P>(d) <I>Records.</I> The proprietor shall, with respect to each experiment authorized by this section, keep records of the kind and quantity of materials received and used and the volume of wine treated and the manner by which disposed.
</P>
<P>(e) <I>Disposition of the wine.</I> The disposition of the wine subjected to experimental treatment will conform to the conditions stated in the authorization to conduct the experimentation. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859 (72 Stat. 1383, as amended (26 U.S.C. 5361, 5382))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0292 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.250" NODE="27:1.0.1.1.19.12.347.11" TYPE="SECTION">
<HEAD>§ 24.250   Application for use of new treating material or process.</HEAD>
<P>(a) <I>General.</I> If the proprietor desires to use a material or process which is not specifically authorized in §§ 24.246, 24.247, 24.248, or elsewhere in this part, an application shall be filed with the appropriate TTB officer to show that the proposed material or process is a cellar treatment consistent with good commercial practice.
</P>
<P>(b) <I>Data required.</I> The application will include the following:
</P>
<P>(1) The name and description of the material or process;
</P>
<P>(2) The purpose, the manner, and the extent to which the material or process is to be used together with any technical bulletin or other pertinent information relative to the material or process;
</P>
<P>(3) A sample, if a proposed material;
</P>
<P>(4) Documentary evidence from the U.S. Food and Drug Administration that the material is consistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act for its intended purpose in the amounts proposed for the particular treatment contemplated;
</P>
<P>(5) The test results of any laboratory-scale pilot study conducted by the winemaker in testing the material and an evaluation of the product and of the treatment including the results of tests of the shelf life of the treated wine;
</P>
<P>(6) A tabulation of pertinent information derived from the testing program conducted by the chemical manufacturer demonstrating the function of the material or process;
</P>
<P>(7) A list of all chemicals used in compounding the treating material and the quantity of each component;
</P>
<P>(8) The recommended maximum and minimum amounts, if any, of the material proposed to be used in the treatment and a statement as to the volume of water required, if any, to facilitate the addition of the material or operation of the process; and
</P>
<P>(9) Two 750-milliliter samples representative of the wine before and after treatment. Information of a confidential or proprietary nature to the manufacturer or supplier of the treating material or process may be forwarded by the manufacturer or supplier to the appropriate TTB officer with a reference to the application filed by the winemaker. Information contained within the winemaker's application can be disclosed to the public, subject to the limitations of 26 U.S.C. 6103 and 7213.


</P>
<P>(c) <I>Use of cellar treatment.</I> The proprietor may not use the proposed treating material or process until a determination has been made by the appropriate TTB officer that the intended use of the material or process is acceptable in good commercial practice.
</P>
<P>(d) <I>Processing of application.</I> After evaluation of the data submitted with the application, the appropriate TTB officer will make a decision regarding the acceptability of the proposed treatment in good commercial practice. The appropriate TTB officer will notify the proprietor of the approval or disapproval of the application.


</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0057 and 1513-0115)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999; T.D. TTB-185, 87 FR 51903, Aug. 24, 2022; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 24.251" NODE="27:1.0.1.1.19.12.347.12" TYPE="SECTION">
<HEAD>§ 24.251   Tolerance for artificially carbonated hard cider and sparkling hard cider.</HEAD>
<P>(a) <I>Tolerance.</I> A tolerance of not more than 0.009 gram per 100 milliliters to the maximum limitation of carbon dioxide in artificially carbonated hard cider and sparkling hard cider will be allowed where the amount of carbon dioxide in excess of 0.64 gram per 100 milliliters is due to mechanical variations or secondary fermentation variations that cannot be completely controlled under good commercial practice. A tolerance will not be allowed where it is found by the appropriate TTB officer that the proprietor continuously or intentionally exceeds 0.64 gram of carbon dioxide per 100 milliliters of artificially carbonated hard cider or sparkling hard cider or where the variation results from the use of methods or equipment determined by the appropriate TTB officer to be not in accordance with good commercial practice. (See Subpart P of this part for the definition of hard cider for purposes of determining eligibility for the hard cider tax rate.)
</P>
<P>(b) <I>Records.</I> See § 24.302 of this chapter for recordkeeping requirements.
</P>
<SECAUTH TYPE="N">(Sec. 335, Pub. L. 114-113, 129 Stat. 3109, as amended (26 U.S.C. 5041)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-147, 82 FR 7663, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.252" NODE="27:1.0.1.1.19.12.347.13" TYPE="SECTION">
<HEAD>§ 24.252   Salvaging accidentally diluted wine.</HEAD>
<P>(a) <I>Removal of accidentally added water without prior TTB approval.</I> If a proprietor accidentally adds to standard wine water in excess of limitations specified in subpart F of this part and this subpart, the accidentally diluted wine may be returned to its original condition through:
</P>
<P>(1) The use of reverse osmosis and distillation without prior application to TTB provided that:
</P>
<P>(i) The accidentally added water represents no more than 10 percent of the original volume of the wine;
</P>
<P>(ii) The wine is returned to its original condition by removing an amount of water equal to the amount that was accidentally added to the wine;
</P>
<P>(iii) The vinous character of the wine is not altered;
</P>
<P>(iv) The proprietor transfers the wine in bond to a distilled spirits plant for treatment; and
</P>
<P>(v) Records are maintained in accordance with paragraph (c) of this section; or
</P>
<P>(2) By adding juice concentrate under the conditions outlined in § 24.180 without prior application to TTB provided that:
</P>
<P>(i) The accidentally added water represents no more than 10 percent of the original volume of the wine;
</P>
<P>(ii) The solids content of the finished wine do not exceed 21 percent by weight;
</P>
<P>(iii) The proprietor complies with any State or local rules regarding the addition of juice concentrate; and
</P>
<P>(iv) Records are maintained in accordance with paragraph (c) of this section.
</P>
<P>(b) <I>Removal of accidentally added water with TTB approval.</I> If a proprietor accidentally adds water to standard wine and the accidentally added water represents more than 10 percent of the original volume of the wine, then the proprietor must request permission from TTB prior to treating the wine. A proprietor may submit an application requesting permission to treat the wine to remove the water and return the wine to its original condition. The removal of water may not be conducted until the appropriate TTB officer has approved the request. The application which is to be submitted to the appropriate TTB officer, must be in writing, must provide evidence of the exact amount of water accidentally added to the wine and an explanation of how the water was accidentally added, and must specify the method the proprietor will use to remove the water from the wine. In approving any request under this section, the appropriate TTB officer may require the proprietor to take steps to prevent future accidental additions of water to wine. In evaluating any request under this section, the appropriate TTB officer may consider as a factor whether the proprietor has demonstrated good commercial practices, taking into account the proprietor's prior history of accidental addition of water to wine and of compliance with other regulations in this part.
</P>
<P>(c) <I>Records.</I> The proprietor must, with respect to removals of water from wine and addition of concentrate authorized under this section, maintain records that document the accidental addition of water, the use of any treatment or process to remove the water from the wine, and the fact that only the amount of water that was accidentally added to the wine was removed as a result of the treatment or process or that only an amount of concentrate sufficient to make up for the amount of water accidentally added is used.


</P>
<CITA TYPE="N">[T.D. TTB-185, 87 FR 51903, Aug. 24, 2022]


</CITA>
</DIV8>


<DIV7 N="347" NODE="27:1.0.1.1.19.12.347" TYPE="SUBJGRP">
<HEAD>Bottling, Packing, and Labeling of Wine</HEAD>


<DIV8 N="§ 24.255" NODE="27:1.0.1.1.19.12.347.14" TYPE="SECTION">
<HEAD>§ 24.255   Bottling or packing wine.</HEAD>
<P>(a) <I>General.</I> Proprietors of a bonded wine premises and a taxpaid wine bottling house premises shall be held strictly responsible for the correct determination of the quantity and alcohol content of wine removed as well as for the correct determination of carbon dioxide in artificially carbonated hard cider and in sparkling hard cider. As required by § 24.170, appropriate and accurate measures and instruments for measuring and testing the wine will be provided at each wine premises.
</P>
<P>(b) <I>Bottle or other container fill.</I> (1) Proprietors of bonded wine premises and taxpaid wine bottling house premises must fill bottles or other containers as nearly as possible to conform to the amount shown on the label or blown in the bottle or marked on any container other than a bottle. However, in no event may the amount of wine contained in any individual bottle, due to lack of bottle uniformity, vary from the amount stated more than plus or minus:
</P>
<P>(i) 1.0 percent for 15.0 liters and above;
</P>
<P>(ii) 1.5 percent for 14.9 liters to 1.0 liter;
</P>
<P>(iii) 2.0 percent for 750 mL to 550 mL;
</P>
<P>(iv) 2.5 percent for 500 mL to 473 mL;
</P>
<P>(v) 3.0 percent for 375 mL to 300 mL;
</P>
<P>(vi) 4 percent for 250 mL and 200 mL;
</P>
<P>(vii) 4.5 percent for 187 mL to 100 mL; and
</P>
<P>(viii) 9.0 percent for 50 mL.
</P>
<P>(2) In such case, there will be substantially as many bottles overfilled as there are bottles underfilled for each lot of wine bottled. Short-filled bottles or other containers of wine which are sold or otherwise disposed of by the proprietor to employees for personal consumption need not be labeled, but, if labeled, need not show an accurate statement of net contents.




</P>
<P>(c) <I>Tax tolerance.</I> The net contents of bottles or other containers of untaxpaid wine in the same tax class filled during six consecutive tax return periods, as determined from the bonded wine premises proprietor's fill test records, shall not vary by more than 0.5 percent from the net contents as stated on the bottles or other containers. The bonded wine premises proprietor is liable for the tax on the entire amount of wine in the same tax class when that wine is removed from bond, without benefit of tolerance, when the fill of bottles or other containers exceeds a 0.5 percent average of a period which consists of six consecutive tax returns, or when filling is not conducted in compliance with good commercial practice.
</P>
<P>(d) <I>Fill tests.</I> The proprietor shall test at representative intervals wine bottled or packed during the bottling or packing operation of each bottling or packing line to determine if the wine contained in the bottle or other container is in agreement with that stated on the label, bottle, or other container.
</P>
<P>(e) <I>Alcohol tests.</I> The proprietor shall test the alcohol content by volume to determine the tax class of the wine and to ensure the alcohol content to be stated on the label is in agreement with the requirement of § 24.257.


</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0115 and 1513-0092)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7664, Jan. 23, 2017; T.D. TTB-200, 90 FR 1876, Jan. 10, 2025]


</CITA>
</DIV8>


<DIV8 N="§ 24.256" NODE="27:1.0.1.1.19.12.347.15" TYPE="SECTION">
<HEAD>§ 24.256   Bottle aging wine.</HEAD>
<P>Wine bottled or packed and stored for the purpose of aging need not have labels affixed until the wine is removed for consumption or sale. However, the bins, pallets, stacks, cases or containers of unlabeled wine will be marked in some manner to show the kind (class and type) and alcohol content of the wine. If the unlabeled wine is stored at a location other than the bottling or packing winery, the registry number of the bottling or packing winery will also be shown. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1407, as amended (26 U.S.C. 5368, 5662))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0503)


</APPRO>
</DIV8>


<DIV8 N="§ 24.257" NODE="27:1.0.1.1.19.12.347.16" TYPE="SECTION">
<HEAD>§ 24.257   Labeling wine containers.</HEAD>
<P>(a) The proprietor must label each bottle or other container of beverage wine prior to removal for consumption or sale. The minimum type size for information required by this section is: 2 millimeters for containers of more than 187 milliliters and 1 millimeter for containers of 187 milliliters or less. The maximum type size for alcohol content statements is 3 millimeters unless the container is larger than 5 liters. The label must be securely affixed and show: 
</P>
<P>(1) The name and address of the wine premises where bottled or packed; 
</P>
<P>(2) The brand name, if different from above; 
</P>
<P>(3) The alcohol content as percent by volume or the alcohol content stated in accordance with 27 CFR part 4. For wine with less than 7 percent alcohol by volume stated on the label there is allowed an alcohol content tolerance of plus or minus .75 percent by volume; and 
</P>
<P>(4) An appropriate designation of the kind of wine, as follows:
</P>
<P>(i) <I>Wines that require label approval</I>—(A) <I>General.</I> If the wine contains 7 percent or more alcohol by volume and must have label approval under 27 CFR part 4, the designation is the class, type, or other designation required by that part.
</P>
<P>(B) <I>Labeling rules for wines eligible for the “hard cider” tax class</I>—(<I>1</I>) <I>Transitional rule for “hard cider” removed on or after January 1, 2017 and prior to January 1, 2019.</I> On an optional basis, wines that are taxed at the “hard cider” tax rate may include the statement “Tax class 5041(b)(6)” on the label to adequately indicate the appropriate tax class.
</P>
<P>(<I>2</I>) <I>Additional labeling rules effective for “hard cider” removed from wine premises on or after January 1, 2019.</I> For wines removed from wine premises on or after January 1, 2019 that are taxed at the “hard cider” tax rate, the label must also include the statement “Tax class 5041(b)(6).” This statement may appear anywhere on the label.
</P>
<P>(ii) <I>Wines that do not require label approval</I>—(A) <I>Adequate designation.</I> If the wine is not subject to label approval under 27 CFR part 4 because it either is covered by a certificate of exemption from label approval or contains less than 7 percent alcohol by volume, its label must bear a designation that includes enough information (when viewed with the alcohol content statement) to identify the tax class under 26 U.S.C. 5041. The wine must be identified by the term “wine” (or a word that signifies a type of wine, such as “cider,” “perry,” or “mead,” as applicable). If the wine contains more than 0.392 gram of carbon dioxide per 100 milliliters, the word “sparkling” or “carbonated,” as applicable, must be included in the designation.
</P>
<P>(<I>1</I>) <I>Additional labeling rules effective for wines eligible for the “hard cider” tax class.</I> For wines removed from wine premises on or after January 1, 2017, that are taxed at the “hard cider” tax rate, the designation must be consistent with a hard cider tax class. For example, the designations “hard cider,” “hard perry,” “apple wine,” “pear wine,” “apple cider,” “apple perry,” “apple pear wine,” “cider” and “perry” are consistent with the hard cider tax class. The designation “blueberry cider” is not consistent with the hard cider tax class, because it indicates that the product contains either blueberries or blueberry flavors, which are not authorized for use in wine that is eligible for the hard cider tax class. If the hard cider contains more than 0.392 gram of carbon dioxide per 100 milliliters, the word “sparkling” or “carbonated,” as applicable, must be on the label.
</P>
<P>(<I>2</I>) <I>Transitional rule for wines removed on or after January 1, 2017 and prior to January 1, 2019.</I> For wines removed on or after January 1, 2017 and prior to January 1, 2019, a label will not be deemed out of compliance with § 24.257(a)(4)(ii)(A) on the sole ground that the label does not provide enough information to identify whether the wine is eligible for a “hard cider” tax classification. On an optional basis, wines eligible for the “hard cider” tax class may include the statement “Tax class 5041(b)(6)” on the label to adequately indicate the appropriate tax class.
</P>
<P>(<I>3</I>) <I>Additional labeling rules effective for “hard cider” removed from wine premises on or after January 1, 2019.</I> For wines removed from wine premises on or after January 1, 2019, that are taxed at the “hard cider” tax rate, the label must also include the statement “Tax class 5041(b)(6).” This statement may appear anywhere on the label.
</P>
<P>(B) <I>Cross reference.</I> For additional labeling rules applicable to wines containing less than 7 percent alcohol by volume, see the food labeling regulations issued by the U.S. Food and Drug Administration.
</P>
<P>(5) The net content of the container unless the net content is permanently marked on the container as provided in 27 CFR part 4. 
</P>
<P>(6) <I>Cross reference.</I> For regulations requiring a health warning statement on the container of any alcoholic beverage containing not less than one-half of one percent alcohol by volume, see part 16 of this chapter.
</P>
<P>(b) The information shown on any label applied to bottled or packed wine is subject to the recordkeeping requirements of § 24.314. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1407, as amended (26 U.S.C. 5368, 5388, 5662))
</P>
<P>(c) <I>Use of semi-generic designations</I>—(1) <I>In general.</I> Semi-generic designations may be used to designate wines of an origin other than that indicated by such name only if—
</P>
<P>(i) There appears in direct conjunction therewith an appropriate appellation of origin, as defined in part 4 of this chapter, disclosing the true place of origin of the wine, and
</P>
<P>(ii) The wine so designated conforms to the standard of identity, if any, for such wine contained in part 4 of this chapter or, if there is no such standard, to the trade understanding of such class or type.
</P>
<P>(2) <I>Determination of whether a name is semi-generic</I>—(i) <I>In general.</I> Except as provided in paragraph (c)(2)(ii) of this section, a name of geographic significance, which is also the designation of a class or type of wine, shall be deemed to have become semi-generic only if so found by the Administrator.
</P>
<P>(ii) <I>Certain names treated as semi-generic.</I> The following names shall be treated as semi-generic: Angelica, Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine or Hock, Sauterne, Haut Sauterne, Sherry, Tokay.
</P>
<SECAUTH TYPE="N">(See: 26 U.S.C. 5368, 5388, 5662)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0092 and 1513-0138)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-350, 58 FR 52232, Oct. 7, 1993; T.D. ATF-398, 63 FR 44783, Aug. 21, 1998; T.D. ATF-470, 66 FR 58944, Nov. 26, 2001; T.D. TTB-147, 82 FR 7664, Jan. 23, 2017; 82 FR 57353, Dec. 5, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.258" NODE="27:1.0.1.1.19.12.347.17" TYPE="SECTION">
<HEAD>§ 24.258   Certificates of approval or exemption.</HEAD>
<P>The proprietor shall obtain a certificate of label approval or a certificate of exemption from label approval as required by 27 CFR part 4. 
</P>
<SECAUTH TYPE="N">(August 29, 1935, ch. 814, Sec. 5, 49 Stat. 981, as amended (27 U.S.C. 205))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.259" NODE="27:1.0.1.1.19.12.347.18" TYPE="SECTION">
<HEAD>§ 24.259   Marks.</HEAD>
<P>(a) <I>Required marks.</I> Each container larger than four liters or each case used to remove wine for consumption or sale will be durably marked to show the following information:
</P>
<P>(1) The serial number or filling date as provided in § 24.260;
</P>
<P>(2) The name (or trade name) and the registry number of the bottlers wine premises;
</P>
<P>(3) The kind (class and type) and the alcohol content of the wine. The kind of wine and alcohol content will be stated in accordance with § 24.257. The formula number will be marked on bulk containers of special natural wine or other wine produced under § 24.218;
</P>
<P>(4) The net contents of each container larger than four liters or each case in wine gallons, or for containers larger than four liters or cases filled according to metric measure, the contents in liters. If wine is removed in cases, the cases may be marked to show the number and size of bottles or other containers in each case in lieu of the net contents of the case; and
</P>
<P>(5) Except for cases, the date of removal or shipment.
</P>
<P>(b) <I>Application of marks.</I> Required marks may be cut, printed, or otherwise legibly and durably marked upon the container larger than four liters or the case or placed on a label or tag securely affixed to the case or container larger than four liters.
</P>
<P>(c) <I>Location of marks.</I> Required marks will be placed on a container larger than four liters or on the side of a case for ready examination by appropriate TTB officers.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1387, as amended, 1407, as amended (26 U.S.C. 5368, 5388, 5662))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0503)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.260" NODE="27:1.0.1.1.19.12.347.19" TYPE="SECTION">
<HEAD>§ 24.260   Serial numbers or filling date.</HEAD>
<P>Each container larger than four liters or each case used for removing wine for consumption or sale will be marked with a serial number or filling date at the time of filling or when such containers or cases are prepared for removal. Serial numbers will commence with “1” and continue until the numeral “1,000,000” is reached, whereupon the series may recommence with the numeral “1.” However, the proprietor may initiate a new series after the numeral “1,000,000” has been reached provided no numeral will be used more than once during a 12-month period. If desired, a separate series of numbers with letter prefixes may be used for containers larger than four liters and for cases, or for cases filled on different bottling lines, or for removals from different loading docks. The proprietor may mark containers larger than four liters or the cases with the filling date in lieu of using a serial number or use both a serial number and the filling date. However, if the proprietor desires to change from the use of a serial number to use of a filling date, or <I>vice versa,</I> a notice will be sent to the appropriate TTB officer before making the change. Where United States or foreign wine is recased, the cases will be marked with the date of recasing, preceded by the letter “R”, in lieu of serial number or filling date. 
</P>
<SECAUTH TYPE="N">(72 Stat. 1381; 26 U.S.C. 5367, 5368)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0503)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.19.13" TYPE="SUBPART">
<HEAD>Subpart M—Losses of Wine</HEAD>


<DIV8 N="§ 24.265" NODE="27:1.0.1.1.19.13.348.1" TYPE="SECTION">
<HEAD>§ 24.265   Losses by theft.</HEAD>
<P>The proprietor shall be liable for and pay the tax on wine unlawfully removed while on bonded wine premises, or while in transit thereto or therefrom in bond, unless the proprietor or other person responsible for the tax, establishes to the satisfaction of the appropriate TTB officer that the theft did not occur as the result of connivance, collusion, fraud or negligence on the part of the proprietor or other person responsible for the tax or the owner, consignor, consignee, bailee, or carrier, or their agents or employees. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat, 1381, as amended (26 U.S.C. 5370))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. ATF-432, 65 FR 69253, Nov. 16, 2000]


</CITA>
</DIV8>


<DIV8 N="§ 24.266" NODE="27:1.0.1.1.19.13.348.2" TYPE="SECTION">
<HEAD>§ 24.266   Inventory losses.</HEAD>
<P>(a) <I>General.</I> The proprietor shall take a physical inventory of all untaxpaid wine on-hand on bonded wine premises as of the close of business each tax year, or where a cycle different from the tax year has been established as provided in § 24.313, the inventory will be taken annually at the end of that cycle, or at any time required by an appropriate TTB officer. The physical inventory of bulk and bottled or packed wine will be recorded and reported as required by § 24.313.
</P>
<P>(b) <I>Bulk wine losses.</I> The physical inventory of bulk wine will determine losses due to spillage, leakage, soakage, evaporation, and other losses normally occurring from racking and filtering since the previous physical inventory required by this section. A claim for allowance of loss, under the provisions of § 24.65, is required for inventory losses in production or storage:
</P>
<P>(1) Where there are circumstances indicating that all or a part of the wine reported lost was unlawfully removed, or
</P>
<P>(2)(i)(A) Where the loss of wine on bonded wine premises during the annual period exceeds three percent of the aggregate volume of wine on-hand at the beginning of the annual period and the volume of wine received in bond during the annual period;
</P>
<P>(B) The loss exceeds six percent of the still wine or still hard cider produced by fermentation;
</P>
<P>(C) The loss exceeds six percent of the sparkling wine or sparkling hard cider produced by fermentation in bottles;
</P>
<P>(D) The loss exceeds three percent of the special natural wine produced under § 24.195 or other wine produced under § 24.218;
</P>
<P>(E) The loss exceeds three percent of the artificially carbonated wine or artificially carbonated hard cider produced; or
</P>
<P>(F) The loss exceeds three percent of the bulk process sparkling wine or bulk process sparkling hard cider produced.
</P>
<P>(ii) The percentage applicable to each tax class of wine will be calculated separately, unless the calculation is impracticable because of the mixture of different tax classes by addition of wine spirits or blending during the annual period, in which case the percentage will be calculated on the aggregate volume. Wine removed immediately after production for use as distilling material and on which the usual racking, clarifying, and filtering losses are not sustained, will not be included in the calculations.
</P>
<P>(c) <I>Bottle and other container wine losses.</I> Wine filled into a bottle or other similar containers are not subject to losses due to spillage, leakage, soakage, evaporation, and other losses normally occurring from racking and filtering. In addition, wine that has been filled into a bottle or other similar containers can be accurately accounted for and any unexplained shortage is considered evidence of an unreported removal. Therefore, the proprietor shall pay the tax on any unexplained loss of untaxpaid bottled or packed wine disclosed by inventory or otherwise.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367, 5369, 5370))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0088)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. TTB-147, 82 FR 7664, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.267" NODE="27:1.0.1.1.19.13.348.3" TYPE="SECTION">
<HEAD>§ 24.267   Losses in transit.</HEAD>
<P>Where the loss in transit of bulk wine shipped in bond or the total daily bulk wine in bond shipments received in bond from the same winery exceeds one percent (two percent on transcontinental shipments) of the volume shipped, the proprietor of the receiving bonded wine premises shall immediately notify the appropriate TTB officer and file a claim under the provisions of § 24.65. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5370))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.268" NODE="27:1.0.1.1.19.13.348.4" TYPE="SECTION">
<HEAD>§ 24.268   Losses by fire or other casualty.</HEAD>
<P>The proprietor must immediately report any loss by theft, fire or other casualty, or any other extraordinary or unusual loss to the appropriate TTB officer. If required by the appropriate TTB officer, the proprietor must file a claim under the provisions of § 24.65. The volume of wine loss must be reported on TTB F 5120.17 for the reporting period during which the loss occurred.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5370))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.19.14" TYPE="SUBPART">
<HEAD>Subpart N—Removal, Return and Receipt of Wine</HEAD>


<DIV7 N="348" NODE="27:1.0.1.1.19.14.348" TYPE="SUBJGRP">
<HEAD>Taxpaid Removals</HEAD>


<DIV8 N="§ 24.270" NODE="27:1.0.1.1.19.14.348.1" TYPE="SECTION">
<HEAD>§ 24.270   Determination of tax.</HEAD>
<P>(a) <I>General.</I> The tax on wine is determined at the time of removal from a bonded wine premises for consumption or sale. Section 5041 of 26 U.S.C., imposes an excise tax, at the rates prescribed, on all wine (including imitation, substandard, or artificial wine, and compounds sold as wine, which contain 24 percent or less of alcohol by volume) produced in or imported into the United States. Wine containing more than 24 percent of alcohol by volume is classified as distilled spirits and taxed accordingly. A wine product containing less than one-half of one percent alcohol by volume is not taxable as wine when removed from the bonded wine premises.
</P>
<P>(b) <I>Tax determined and paid on the volume of wine.</I> The tax is determined and paid on the volume of wine:
</P>
<P>(1) In bottles or other containers filled according to United States measure recorded to the nearest 10th gallon; or,
</P>
<P>(2) In bottles or other containers filled according to metric measure, on the volume of wine in United States wine gallons to the nearest 10th gallon; or
</P>
<P>(3) In the case of pipeline removals, on the volume of bulk wine removed recorded to the nearest whole gallon, five-tenths gallon being converted to the next full gallon.
</P>
<P>(c) <I>Tax rates imposed on wine.</I> The following taxes are imposed on wine:
</P>
<P>(1) <I>Tax class 5041(b)(1).</I> On still wines containing not more than 16 percent alcohol by volume, $1.07 per wine gallon;
</P>
<P>(2) <I>Tax class 5041(b)(2).</I> On still wines containing more than 16 percent and not exceeding 21 percent alcohol by volume, $1.57 per wine gallon;
</P>
<P>(3) <I>Tax class 5041(b)(3).</I> On still wines containing more than 21 percent and not exceeding 24 percent alcohol by volume, $3.15 per wine gallon;
</P>
<P>(4) <I>Tax class 5041(b)(4).</I> On champagne and other sparkling wines, $3.40 per wine gallon;
</P>
<P>(5) <I>Tax class 5041(b)(5).</I> On artificially carbonated wines, $3.30 per wine gallon; and
</P>
<P>(6) <I>Tax class 5041(b)(6).</I> On hard cider, 22.6 cents per wine gallon. See § 24.331 for the definition of hard cider for purposes of determining eligibility for the hard cider tax class.
</P>
<P>(d) <I>Small domestic producer tax credit.</I> For eligibility for the small producer tax credit, see §§ 24.278 and 24.279.


</P>
<CITA TYPE="N">[T.D. TTB-147, 82 FR 7664, Jan. 23, 2017, as amended by T.D. TTB-196, 89 FR 87942, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 24.271" NODE="27:1.0.1.1.19.14.348.2" TYPE="SECTION">
<HEAD>§ 24.271   Deferred payment return periods—annual, quarterly, and semimonthly.</HEAD>
<P>(a) <I>General.</I> This section governs payment of tax on a deferred basis. The tax on wine is paid by an Excise Tax Return, TTB F 5000.24, which is filled with a remittance (check, cash, or money order) of the full amount of tax due. Prepayments of tax on wine during the period covered by the return are shown separately on the Excise Tax Return form. If no tax is due for the return period, the filing of a return is not required.
</P>
<P>(b) <I>Return periods and due dates</I>—(1) <I>Return periods.</I> (i) <I>Semimonthly return period.</I> Except in the case of a taxpayer who qualifies for, and chooses to use, an annual or quarterly return period as provided in paragraph (b)(1)(ii) or (b)(1)(iii) of this section, all taxpayers who defer payment of taxes must use semimonthly return periods. The semimonthly return periods run from the 1st day through the 15th day of each month, and from the 16th day through the last day of each month, except as otherwise provided in paragraph (c) of this section.
</P>
<P>(ii) <I>Annual return period.</I> Subject to paragraph (b)(1)(iv) of this section, a taxpayer may choose to use an annual return period if the taxpayer was not liable for more than $1,000 in taxes with respect to wine imposed by 26 U.S.C. 5041 and 7652 in the preceding calendar year and if that taxpayer reasonably expects to be liable for not more than $1,000 in such taxes during the current calendar year. Except as provided in paragraph (b)(2), the last day for paying the tax and filing the return will be the 14th day after the last day of the calendar year. However, the taxpayer may not use the annual return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $1,000, and any tax that has not been paid on that date will be due on the 14th day after the last day of the quarterly or semimonthly period in which that date occurs.
</P>
<P>(iii) <I>Quarterly return period.</I> Except as provided in paragraph (b)(1)(ii) of this section and subject to paragraph (b)(1)(iv) of this section, a taxpayer may choose to use a quarterly return period if the taxpayer was not liable for more than $50,000 in taxes with respect to wine imposed by 26 U.S.C. 5041 and 7652 in the preceding calendar year and if that taxpayer reasonably expects to be liable for not more than $50,000 in such taxes during the current calendar year. In such a case the last day for paying the tax and filing the return will be the 14th day after the last day of the calendar quarter. However, the taxpayer may not use the quarterly return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $50,000, and any tax that has not been paid on that date will be due on the 14th day after the last day of the semimonthly period in which that date occurs.
</P>
<P>(iv) <I>Additional rules for annual and quarterly return periods.</I> The following additional rules apply to the annual and quarterly return period procedures under this section:
</P>
<P>(A) A “taxpayer” is an individual, corporation, partnership, or other entity that is assigned a single Employer Identification Number as defined in 26 CFR 301.7701-12;
</P>
<P>(B) “Reasonably expects” means that there is no existing or anticipated circumstance known to the taxpayer (such as an increase in production capacity) that would cause the taxpayer's tax liability to exceed the prescribed limit;
</P>
<P>(C) A taxpayer with multiple locations must combine the wine tax liability for all locations to determine eligibility for the return procedures;
</P>
<P>(D) A taxpayer who has both domestic operations and import transactions must combine the wine tax liability on the domestic operations and the imports to determine eligibility for the return procedures;
</P>
<P>(E) The controlled group rules of 26 U.S.C. 5061(e), which concern treatment of controlled groups as one taxpayer, do not apply for purposes of determining eligibility for the return procedures. However, a taxpayer who is eligible for the return procedures, and who is a member of a controlled group that owes $5 million or more in wine excise taxes per year, is required to pay taxes by electronic fund transfer (EFT). Payments via EFT must be transmitted in accordance with section 5061(e);
</P>
<P>(F) A new taxpayer is eligible to use the return procedures the first year of business simply if the taxpayer reasonably expects to be liable for not more than $1,000 (in the case of the annual return procedure) or $50,000 (in the case of the quarterly return procedure) in wine taxes during that calendar year; and
</P>
<P>(G) If a taxpayer becomes ineligible to use a return procedure described in paragraph (b)(1)(ii) or (iii) of this section because the taxpayer's liability exceeds $1,000 or $50,000, respectively, in tax liability during a taxable year, that taxpayer may resume using that return procedure only after a full calendar year has passed during which the taxpayer's liability did not exceed $1,000 or $50,000 as the case may be. A taxpayer may not use an annual or quarterly return procedure during any calendar year in which the taxpayer reasonably expects to be liable for more than $1,000, in the case of the annual return procedure, or $50,000, in the case of the quarterly return procedure, in wine taxes.
</P>
<P>(2) <I>Semimonthly, quarterly, and annual tax return due dates.</I> (i) <I>General.</I> Except as provided in paragraph (b)(2)(ii), the taxpayer must file the semimonthly, quarterly, or annual return, with remittance, for each return period not later than the 14th day after the last day of the return period. If the due date falls on a Saturday, Sunday, or legal holiday, the return and remittance are due on the immediately preceding day that is not a Saturday, Sunday, or legal holiday, except as otherwise provided in paragraph (c)(3) of this section.
</P>
<P>(ii) <I>Due dates for 2016 annual returns.</I> In the case of a taxpayer filing an annual return covering the 2016 calendar year, the taxpayer must file the return, with remittance, not later than January 30, 2017.
</P>
<P>(c) <I>Special September rule for taxes due by semimonthly return.</I> (1) <I>Division of second semimonthly period.</I> (i) <I>General.</I> Except as otherwise provided in paragraph (c)(1)(ii) of this section, the second semimonthly period for the month of September is divided into two payment periods, from the 16th day through the 26th day, and from the 27th day through the 30th day. The proprietor shall file a return on TTB F 5000.24, and make remittance, for the period September 16-26, no later than September 29. The proprietor shall file a return on TTB F 5000.24, and make remittance, for the period September 27-30, no later than October 14.
</P>
<P>(ii) <I>Taxpayment not by electronic fund transfer.</I> In the case of taxes for which remittance by electronic fund transfer (EFT) is not required by § 24.272, the second semimonthly period of September is divided into two payment periods, from the 16th day through the 25th day, and from the 26th day through the 30th day. The proprietor shall file a return on TTB F 5000.24, and make remittance, for the period September 16-25, no later than September 28. The proprietor shall file a return on TTB F 5000.24, and make remittance, for the period September 26-30, no later than October 14.
</P>
<P>(2) <I>Amount of payment—Safe harbor rule.</I> (i) <I>General.</I> Taxpayers are considered to have met the requirements of paragraph (c)(1)(i) of this section if the amount paid no later than September 29 is not less than 11/15ths (73.3 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(ii) <I>Taxpayment not by EFT.</I> Taxpayers are considered to have met the requirements of paragraph (c)(1)(ii) of this section if the amount paid no later than September 28 is not less than 2/3rds (66.7 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(3) <I>Weekends and holidays.</I> If the required taxpayment due date for the period September 16-25 or September 16-26, as applicable, falls on a Saturday or legal holiday, the return and remittance are due on the immediately preceding day. If the required due date falls on a Sunday, the return and remittance are due on the immediately following day.
</P>
<P>(4) <I>Example: Payment of tax for the month of September.</I> (i) <I>Facts.</I> X, a proprietor required to pay taxes by electronic fund transfer, incurred tax liability in the amount of $30,000 for the first semimonthly period of September. For the period September 16-26, X incurred tax liability in the amount of $45,000, and for the period September 27-30, X incurred tax liability in the amount of $2,000.
</P>
<P>(ii) <I>Payment requirement.</I> X's payment of tax in the amount of $30,000 for the first semimonthly period of September is due no later than September 29 (§ 24.271(b)). X's payment of tax for the period September 16-26 is also due no later than September 29 (§ 24.271(c)(1)(i)). X may use the safe harbor rule to determine the amount of payment due for the period of September 16-26 (§ 24.271(c)(2)). Under the safe harbor rule, X's payment of tax must not be less than $21,990.00, that is, 11/15ths of the tax liability incurred during the first semimonthly period of September. Additionally, X must pay the tax in the amount of $2,000 for the period September 27-30 no later than October 14 (§ 24.271(c)(1)(i)). X must also pay the underpayment of tax, $23,010.00, for the period September 16-26, no later than October 14 (§ 24.271(c)(2)).
</P>
<CITA TYPE="N">[T.D. TTB-89, 76 FR 3509, Jan. 20, 2011, as amended by T.D. TTB-94, Aug. 24, 2011; T.D. TTB-146, 82 FR 1125, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.272" NODE="27:1.0.1.1.19.14.348.3" TYPE="SECTION">
<HEAD>§ 24.272   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) <I>General.</I> (1) During a calendar year any proprietor who is liable for a gross amount of wine excise tax equal to or exceeding $5 million combining tax liabilities incurred under this part and parts 26 and 27 of this chapter, shall during the succeeding calendar year use a financial institution in making payment by electronic fund transfer (EFT) of wine taxes for that year. A proprietor who is required by this section to make remittance by EFT may not effect payment of wine taxes by cash, check, or money order as described in § 24.271.
</P>
<P>(2) For the purposes of this section, the dollar amount of tax liability is defined as the gross tax liability on all taxable withdrawals and importations (including wines brought into the United States from Puerto Rico or the Virgin Islands) during the calendar year, without regard to any drawback, credit, or refund, for all premises from which the activities are conducted by the proprietor.
</P>
<P>(3) For the purposes of this section, a proprietor includes a controlled group of corporations, as defined in 26 U.S.C. 5061 (e)(3). Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50 percent control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT.
</P>
<P>(4) A proprietor who is required by this section to make remittances by EFT shall, for each bonded wine premises from which wine is withdrawn upon determination of tax, make a separate EFT remittance and file a separate tax return.
</P>
<P>(b) <I>Requirements.</I> (1) On or before January 10 of each calendar year, except for a proprietor already remitting the tax by EFT, each proprietor who was liable during the previous calendar year for a gross amount of wine excise tax equal to or exceeding $5 million, combining tax liabilities incurred under this part and parts 26 and 27 of this chapter, shall give written notice to the appropriate TTB officer agreeing to make remittances by EFT.
</P>
<P>(2) For each return filed in accordance with this subpart, the proprietor shall direct the proprietor's financial institution to make an electronic fund transfer in the amount of the taxpayment to the Treasury Account as provided in paragraph (e) of this section. The request will be made to the financial institution early enough for the transfer of funds to be made to the Treasury Account by no later than the close of business on the last day for filing the return as prescribed in § 24.271. The request will take into account any time limit established by the financial institution.
</P>
<P>(3) If the proprietor was liable during the preceding calendar year for less than $5 million in wine excise taxes, combining tax liabilities incurred under this part and parts 26 and 27 of this chapter, the proprietor may choose either to continue remitting the tax as provided in this section or to remit the tax with return as prescribed by § 24.271. Upon filing the first return on which the proprietor chooses to discontinue remittance of the tax by EFT and to begin remittance of the tax with the tax return, the proprietor shall notify the appropriate TTB officer by attaching a written notification to the tax form stating that no wine excise tax is due by EFT because the tax liability during the preceding calendar year was less than $5 million, and that the remittance will be filed with the tax return.
</P>
<P>(c) <I>Remittance.</I> (1) The proprietor shall show on the tax return information about remitting the tax for that return by EFT and shall file the return with TTB in accordance with the instructions on the tax form.
</P>
<P>(2) Remittances will be considered as made when the taxpayment by electronic fund transfer is received by the Treasury Account. For purposes of this section, a taxpayment by electronic fund transfer will be considered as received by the Treasury Account when it is paid to a Federal Reserve Bank.
</P>
<P>(3) When the proprietor directs the financial institution to effect an electronic fund transfer message as required by paragraph (b) (2) of this section, the transfer data record furnished to the proprietor through normal banking procedures will serve as the record of payment, and will be retained as part of the required records.
</P>
<P>(d) <I>Failure to make a taxpayment by EFT.</I> The proprietor is subject to a penalty imposed by 26 U.S.C. 5684, 6651, and 6656, as applicable, for failure to make a taxpayment by EFT on or before the close of business on the prescribed last day for filing.
</P>
<P>(e) <I>Procedure.</I> Upon the notification required under paragraph (b)(1) of this section, the appropriate TTB officer will issue to the proprietor a TTB Procedure entitled, Payment of Tax by Electronic Fund Transfer. This publication outlines the procedure a proprietor follows when preparing returns and EFT remittances in accordance with this subpart.  U.S. Customs and Border Protection (CBP) will provide the proprietor with instructions for preparing EFT remittances for payments to be made to CBP for payment of excise tax on imported wine.


</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0083 and 1513-0088)


</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999; T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 24.273" NODE="27:1.0.1.1.19.14.348.4" TYPE="SECTION">
<HEAD>§ 24.273   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 24.274" NODE="27:1.0.1.1.19.14.348.5" TYPE="SECTION">
<HEAD>§ 24.274   Failure to timely pay tax or file a return.</HEAD>
<P>Penalties for failure to pay tax at the time required, for willful refusal to pay the tax and for fraudulent nonpayment of tax are provided for in 26 U.S.C. 5661 and 6656. In addition to these penalties, there is a penalty for the delinquent filing of a tax return, imposed as an addition to the tax shown on the return, amounting to five percent for each month or fraction thereof of the delinquency, not exceeding 25 percent in the aggregate, unless it is shown that the delinquency is due to reasonable cause and not to willful neglect. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1407, as amended, 1410, as amended (26 U.S.C. 5661, 5684, 6651, 6656))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.275" NODE="27:1.0.1.1.19.14.348.6" TYPE="SECTION">
<HEAD>§ 24.275   Prepayment of tax.</HEAD>
<P>(a) <I>General</I>—(1) <I>Circumstances where prepayment required.</I> The proprietor must, before removal of wine for consumption or sale, file Excise Tax Return, TTB F 5000.24, with remittance, where:
</P>
<P>(i) The proprietor is required to prepay tax under § 24.276; or
</P>
<P>(ii) The proprietor is required to obtain a tax deferral bond, the bond is not in the maximum penal sum, and the tax determined and unpaid at any one time exceeds the coverage of the wine bond.
</P>
<P>(2) <I>Forwarding the return with remittance.</I> The proprietor must forward the return with remittance pursuant to the instructions printed on the return. For the purpose of complying with this section, the term “forwarding” means the deposit in the United States mail properly addressed to TTB.
</P>
<P>(b) <I>Electronic fund transfer.</I> When the proprietor is required by § 24.272 to deliver payment of tax by electronic fund transfer, the proprietor shall prepay the tax before any wine can be removed for consumption or sale by:
</P>
<P>(1) Completing the Excise Tax Return and by mailing it, as instructed on the form, to TTB and
</P>
<P>(2) Directing the proprietor's financial institution to effect an electronic fund transfer. 
</P>
<SECAUTH TYPE="N">(August 16, 1954, ch. 736, 68A Stat. 775, as amended, 777, as amended, 391, as amended (26 U.S.C. 6301, 6311, 6302))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0467 and 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. TTB-146, 82 FR 1126, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.276" NODE="27:1.0.1.1.19.14.348.7" TYPE="SECTION">
<HEAD>§ 24.276   Prepayment of tax; proprietor in default.</HEAD>
<P>When the proprietor fails to forward a payment for wine excise tax due by presentment of a check or money order, or when the proprietor is otherwise in default of payment of the tax, no wine may be removed for consumption or sale until the tax has been paid for the period of the default and until the appropriate TTB officer finds the revenue will not be jeopardized by the late payment of the tax. Any remittance made during the period of the default will be in cash, or will be in the form of a certified, cashier's, or treasurer's check drawn on any financial institution incorporated under the laws of the United States, or under the laws of any State, Territory, or possession of the United States, or in the form of a money order, as provided in 27 CFR 70.61 (payment by check or money order) or in the form of an electronic fund transfer. 
</P>
<SECAUTH TYPE="N">(August 16, 1954, ch. 736, 68A Stat. 775, as amended, 777, as amended, 391 as amended (26 U.S.C. 6301, 6311, 6302))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0467 and 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-301, 55 FR 47605, Nov. 14, 1990; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.277" NODE="27:1.0.1.1.19.14.348.8" TYPE="SECTION">
<HEAD>§ 24.277   Date of mailing or delivering of returns.</HEAD>
<P>(a) When the proprietor sends the Excise Tax Return, TTB F 5000.24, with or without remittance, by United States mail, the official postmark of the United States Postal Service stamped on the cover of the envelope in which the return was mailed is considered the date of delivery of the tax return and, if accompanied, the date of delivery of the remittance. When the postmark on the cover is illegible, it is the proprietor's responsibility to prove when the postmark was made.
</P>
<P>(b) When the proprietor sends the tax return by registered mail or by certified mail, the date of registry or the date of the postmark on the sender's receipt of certified mail, as the case may be, is treated at the date of delivery of the tax return and, if accompanied, the date of delivery of the remittance. 
</P>
<SECAUTH TYPE="N">(August 16, 1954, ch. 736, 68A Stat. 775, as amended, 777, as amended, 391, as amended (26 U.S.C. 6301, 6311, 6302))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0467 and 1512-0492)


</APPRO>
</DIV8>


<DIV8 N="§ 24.278" NODE="27:1.0.1.1.19.14.348.9" TYPE="SECTION">
<HEAD>§ 24.278   Tax credit for certain small domestic producers.</HEAD>
<P>(a) <I>General.</I> A person who produces not more than 250,000 gallons of wine during the calendar year may take a credit against any tax imposed by Title 26 of the United States Code (other than Chapters 2, 21, and 22), in an amount computed in accordance with paragraph (d) of this section, on the first 100,000 gallons of wine (other than champagne and other sparkling wine) removed during that year for consumption or sale. This credit applies only to wine that has been produced at a qualified bonded wine premises in the United States. The small domestic wine producer tax credit is available only to eligible proprietors engaged in the business of producing wine. A proprietor who has a basic permit to produce wine but does not produce wine during a calendar year may not take the small producer wine tax credit on wine removed during that calendar year. A proprietor who has obtained a new wine producer basic permit may not take the small producer wine tax credit on wine removed until the proprietor has produced wine. “Production” of wine includes those activities described in paragraph (e)(1) of this section.
</P>
<P>(b) <I>Special rules relating to eligibility for wine credit</I>—(1) <I>Controlled groups.</I> For purposes of this section and § 24.279, the term “person” includes a controlled group of corporations, as defined in 26 U.S.C. 1563(a), except that the phrase “more than 50 percent” must be substituted for the phrase “at least 80 percent” wherever it appears. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups that include partnerships and/or sole proprietorships. Production and removals of all members of a controlled group are treated as if they were the production and removals of a single taxpayer for the purpose of determining what credit a person may use.
</P>
<P>(2) <I>Credit for transferees in bond.</I> A person other than the eligible small producer (hereafter in this paragraph referred to as the “transferee”) may take the credit under paragraph (a) of this section that would be allowed to that producer if the wine removed by the transferee had been removed by the producer on that date, under the following conditions:
</P>
<P>(i) Wine produced by any person would be eligible for any credit under this section if removed by that person during the calendar year;
</P>
<P>(ii) Wine produced by that person is removed during that calendar year by the transferee to whom that wine was transferred in bond and who is liable for the tax imposed by 26 U.S.C. 5041 with respect to that wine;
</P>
<P>(iii) That producer holds title to that wine at the time of its removal and provides to the transferee such information as is necessary to properly determine the transferee's credit under this paragraph; and
</P>
<P>(iv) At the time of taxable removal, the producer provides to the transferee, in writing (each retaining a copy with the record of taxpaid removal from bond pursuant to § 24.310), the following information:
</P>
<P>(A) The names of the producer and transferee;
</P>
<P>(B) The quantity and tax class of the wines to be shipped;
</P>
<P>(C) The date of removal from bond for consumption or sale;
</P>
<P>(D) A confirmation that the producer is eligible for credit, with the credit rate to which the wines are entitled; and
</P>
<P>(E) A confirmation that the subject shipment is within the first 100,000 gallons of eligible wine removed by (or on behalf of) the producer for the calendar year.
</P>
<P>(c) <I>Time for determining and allowing credit.</I> The credit referred to in paragraph (a) of this section will be determined at the same time as the tax is determined under 26 U.S.C. 5041(a), and will be allowable at the time any tax described in paragraph (a) of this section is payable. The credit allowable by this section is treated as if it constitutes a reduction in the rate of the tax.
</P>
<P>(d) <I>Computation of credit.</I> The credit which may be taken on the first 100,000 gallons of wine (other than champagne and other sparkling wine) removed for consumption or sale by an eligible person during a calendar year is computed as follows:
</P>
<P>(1) For persons who produce 150,000 gallons or less of wine during the calendar year, the credit is $0.90 per gallon for wine ($0.056 for hard cider);
</P>
<P>(2) For persons who produce more than 150,000 gallons but not more than 250,000 gallons during the calendar year, the credit is reduced by 1 percent for every 1,000 gallons produced in excess of 150,000 gallons. For example, the credit that would be taken by a person who produced 160,500 gallons of wine and hard cider during a calendar year would be reduced by 10 percent, for a net credit against the tax of $0.81 per gallon for wine or $0.0504 for hard cider, as long as the wine or hard cider was among the first 100,000 gallons removed for consumption or sale during the calendar year.
</P>
<P>(e) <I>Definitions</I>—(1) <I>Production.</I> For purposes of determining if a person's production of wine is within the 250,000 gallon limit, production includes, in addition to wine produced by fermentation, any increase in the volume of wine due to the winery operations of amelioration, wine spirits addition, sweetening, or production of formula wine. Production of champagne and other sparkling wines is included for purposes of determining whether total production of a winery exceeds 250,000 gallons. Production includes all wine produced at qualified bonded wine premises within the United States and wine produced outside the United States by the same person.
</P>
<P>(2) <I>Removals.</I> For purposes of determining if a person's removals are within the 100,000 gallon limit, removals include wine that the person removed from all qualified bonded wine premises within the United States. Wine removed by a transferee in bond under paragraph (b)(2) of this section must be counted against the 100,000 gallon limit of the small producer who owns that wine, and not against the limit of the transferee in bond if the transferee is also a small producer. Champagne and other sparkling wines, which are not eligible for credit, do not count as removals against the 100,000 gallon limit.
</P>
<P>(f) <I>Preparation of tax return.</I> A person who is eligible for the credit must show the amount of wine tax before credit on the Excise Tax Return, TTB F 5000.24, and must enter the quantity of wine subject to the credit and the applicable credit rate as the explanation for an adjusting entry in Schedule B of the return for each tax period. Where a person does not use the credit authorized by this section to directly reduce the rate of Federal excise tax on wine, that person must report on TTB F 5000.24 where the credit will be, or has been, applied. Where a transferee in bond takes credit on behalf of one or more small producers, the transferee must show in Schedule B of the return the name of each producer, each producer's credit rate, and the total credit taken on behalf of each producer during the tax return period.
</P>
<P>(g) <I>Denial of deduction.</I> Pursuant to 26 U.S.C. 5041(c)(5), any deduction under 26 U.S.C. subtitle A with respect to any tax against which the credit is allowed under paragraph (a) of this section must only be for the amount of the tax as reduced by the credit.
</P>
<P>(h) <I>Exception to credit.</I> The appropriate TTB officer will deny any tax credit taken under paragraph (a) of this section where it is determined that the allowance of the credit would benefit a person who would otherwise fail to qualify for the use of the credit. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5041(c).) 
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0104)
</APPRO>
<CITA TYPE="N">[T.D. TTB-64, 72 FR 65454, Nov. 21, 2007]


</CITA>
</DIV8>


<DIV8 N="§ 24.279" NODE="27:1.0.1.1.19.14.348.10" TYPE="SECTION">
<HEAD>§ 24.279   Tax adjustments related to wine credit.</HEAD>
<P>(a) <I>Increasing adjustments.</I> Persons who produce more wine than the amount used in computation of the credit, or who lose eligibility by not producing during a calendar year, must make increasing tax adjustments. Where an increasing adjustment to a person's tax return is necessary as a result of an incorrect credit rate claimed pursuant to § 24.278, that person must make the adjustment on the Excise Tax Return, TTB F 5000.24, no later than the return period in which production (or the production of the controlled group of which the person is a member) exceeds the amount used in computation of the credit. If the adjustment is due to failure to produce, the person must make the adjustment no later than the last return period of the calendar year. The adjustment is the difference between the credit taken for prior return periods in that year and the appropriate credit for those return periods. The person must make tax adjustments for all bonded wine premises where excess credits were taken against tax that year, and must include interest payable. In the case of a person who continued to deduct credit after reaching the 100,000 gallon maximum during the calendar year, that person must make an adjustment in the full amount of excess credit taken and must include interest payable under 26 U.S.C. 6601 from the date on which the excess credit was taken. In addition, the person must include the penalty payable under 26 U.S.C. 6662 if the appropriate TTB officer determines that the underpayment was due to negligence or disregard of rules or regulations and advises the person to include the penalty as part of the adjustment. The appropriate TTB officer will provide information, when requested, regarding interest rates applicable to specific time periods and regarding any applicable penalties. In the case of a controlled group of bonded wine premises that took excess credits, all member proprietors who took incorrect credits must make tax adjustments as determined in this section. In the case of a small producer who instructed a transferee in bond to take credit as authorized by § 24.278(b)(2), and subsequently determines that the credit was less or not applicable, that producer must immediately inform the transferee in bond, in writing, of the correct credit information. The transferee must make any increasing adjustment on its next tax return based on revised credit information given by the producer or a TTB officer.
</P>
<P>(b) <I>Decreasing adjustments.</I> Where a person fails to deduct the credit or deducts less than the appropriate credit provided for by § 24.278 during the calendar year, the person may file a claim for refund of excess tax paid. The claim must be filed in accordance with § 24.69. In the case of wine removed on behalf of a small producer by a transferee in bond, if the transferee in bond was instructed to deduct credit and failed to deduct credit or deducted less than the appropriate credit and was later reimbursed for the tax by that producer, the transferee may file the claim. The provisions of 26 U.S.C. 6423 and 27 CFR part 70, subpart F, will apply, and the producer and transferee in bond must show that the conditions of § 24.278(b)(2) were met. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5041(c))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0088)
</APPRO>
<CITA TYPE="N">[T.D. TTB-64, 72 FR 65455, Nov. 21, 2007]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="349" NODE="27:1.0.1.1.19.14.349" TYPE="SUBJGRP">
<HEAD>Transfer of Wine in Bond</HEAD>


<DIV8 N="§ 24.280" NODE="27:1.0.1.1.19.14.349.11" TYPE="SECTION">
<HEAD>§ 24.280   General.</HEAD>
<P>Wine may be removed for transfer in bond, from one bonded wine premises to another bonded wine premises or to a distilled spirits plant. For bulk wine transferred in bond between adjacent or contiguous bonded wine premises or to an adjacent or contiguous distilled spirits plant, an accurately calibrated tank for measuring the wine is required on at least one of the premises. The volume of wine transferred will be recorded to the nearest whole gallon, five-tenths gallon being converted to the next full gallon. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.281" NODE="27:1.0.1.1.19.14.349.12" TYPE="SECTION">
<HEAD>§ 24.281   Consignor premises.</HEAD>
<P>Prior to transferring wine in bond, the proprietor shall prepare a transfer record prescribed by § 24.309. Except for multiple transfers as provided in § 24.282, a transfer record will be prepared for each shipment. On completion of lading (or completion of transfer by pipeline), the proprietor shall retain one copy of the transfer record for the files and forward the original to the consignee (by the close of the next business day).
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 24.282" NODE="27:1.0.1.1.19.14.349.13" TYPE="SECTION">
<HEAD>§ 24.282   Multiple transfers.</HEAD>
<P>(a) <I>Truck.</I> The proprietor may use one transfer record for all wine shipped by truck on the same day to other premises. The proprietor shall prepare a shipment or delivery order for each shipment showing date of transfer, name and address of the proprietor and consignee, number of cases or containers, serial numbers of cases (if any) or container identification marks, and quantity shipped in gallons or liters. A copy of the shipping or delivery order will be retained by the proprietor and a copy sent with the shipment. On completion of lading the last truck for the day, the proprietor shall prepare and process a transfer record as provided in § 24.281.
</P>
<P>(b) <I>Pipeline.</I> The proprietor may use one transfer record for all wine (including distilling material and vinegar stock) transferred by pipeline to adjacent premises during a month. At the end of the month, the proprietor shall prepare and process a transfer record as provided in § 24.281. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.283" NODE="27:1.0.1.1.19.14.349.14" TYPE="SECTION">
<HEAD>§ 24.283   Reconsignment.</HEAD>
<P>Prior to or on arrival at the premises of a consignee, wine transferred in bond may be reconsigned by the consignor. The proprietor to whom the wine is reconsigned will be liable for the tax on the wine while it is in transit after reconsignment. Notice of cancellation of the shipment will be made to the other proprietors involved by the proprietor who reconsigned the wine. Where reconsignment is to other than the shipping proprietor, a new transfer record prominently marked “Reconsignment” will be prepared and processed as provided by § 24.281. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1126, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.284" NODE="27:1.0.1.1.19.14.349.15" TYPE="SECTION">
<HEAD>§ 24.284   Consignee premises.</HEAD>
<P>When wine is received by transfer in bond, the consignee shall check the shipment against the transfer record and determine by volumetric measure or weight the quantity received. The date received and, if different from the quantity shipped, the quantity received will be recorded on the transfer record. See § 24.267 for provisions applicable to losses in transit. Sealed containers or cases received without apparent loss need not be measured or weighed. The consignee will retain the original of the transfer record and any accompanying documents. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>

</DIV7>


<DIV7 N="350" NODE="27:1.0.1.1.19.14.350" TYPE="SUBJGRP">
<HEAD>Removals Without Payment of Tax</HEAD>


<DIV8 N="§ 24.290" NODE="27:1.0.1.1.19.14.350.16" TYPE="SECTION">
<HEAD>§ 24.290   Removal of wine as distilling material.</HEAD>
<P>(a) <I>General.</I> Still wine or still hard cider may be removed without payment of tax to the production facilities of a distilled spirits plant for use as distilling material. The volume of distilling material may be determined at either the bonded wine premises or the distilled spirits plant.
</P>
<P>(b) <I>Special natural wine.</I> Unmarketable special natural wine may be removed to a distilled spirits plant for use as distilling material in the production of wine spirits (but not brandy). Where sugar has been used in the production of special natural wine, the wine may not be removed for use as distilling material if the unfermented sugars therein have been fermented prior to the removal. If wine spirits produced from special natural wine contain any flavor characteristics of the special natural wine, the wine spirits may be used only in the production of a special natural wine. </P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1382, as amended, 1395, as amended (26 U.S.C. 5362, 5373, 5552))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7665, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.291" NODE="27:1.0.1.1.19.14.350.17" TYPE="SECTION">
<HEAD>§ 24.291   Removal of wine for vinegar production.</HEAD>
<P>(a) <I>General.</I> Still wine or still hard cider may be removed from bonded wine premises, without payment of tax, for use in the manufacture of vinegar. Where the proprietor is also the proprietor of a vinegar plant located adjacent or contiguous to the bonded wine premises, wine may be removed without payment of tax upon filing a consent of surety extending the terms of the wine bond to cover the removal and use of wine in the manufacture of vinegar. Where the proprietor of a vinegar plant is not the proprietor of an adjacent or contiguous bonded wine premises, the proprietor of the vinegar plant may receive wine, without payment of tax, for use in the manufacture of vinegar by filing a bond under the provisions of § 24.146(c) to cover the removal to and use of wine at the vinegar plant.
</P>
<P>(b) <I>Vinegar plant records.</I> Each proprietor of a vinegar plant to which wine is shipped, without payment of tax, for use in the manufacture of vinegar shall keep a record of all wine received and used for the manufacture of vinegar and of all vinegar produced and disposed of. The record will show the following information:
</P>
<P>(1) The volume and alcohol content of all wine received, the date of receipt, and the name, registry number, and address of the bonded wine premises from which received;
</P>
<P>(2) The volume and alcohol content of all wine used in the manufacture of vinegar, and the date of use;
</P>
<P>(3) The volume and grain strength of the vinegar produced, and the date of production. (This volume will be reported on a 100-grain strength basis and will be determined by multiplying the wine gallons of vinegar produced by the grain strength thereof and dividing the result by 100); and
</P>
<P>(4) The names and addresses of all persons to whom vinegar is shipped, the volume and grain strength shipped to each, and the date of shipment. (Grain strength is a measure of the acetic acid content of vinegar, expressed as 10 times the grams of acetic acid per 100 mL).
</P>
<P>(c) <I>Inspection of vinegar plants.</I> The proprietor of a vinegar plant receiving wine, without payment of tax, for use in the manufacture of vinegar shall make the premises and records available for inspection by appropriate TTB officers during regular business hours. 
</P>
<SECAUTH TYPE="N">(August 16, 1954, ch. 736, 68A Stat. 903, as amended (26 U.S.C. 7606); Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0009 and 1513-0115)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.292" NODE="27:1.0.1.1.19.14.350.18" TYPE="SECTION">
<HEAD>§ 24.292   Exported wine.</HEAD>
<P>(a) <I>General.</I> Wine may be removed from a bonded wine premises without payment of tax for exportation, for use on vessels and aircraft, for transportation to and deposit in a “Class 6” manufacturing bonded warehouse, for transfer to and deposit in a customs bonded warehouse, and for transfer to and deposit in a foreign-trade zone for exportation or for storage pending exportation. Removals of wine for export will be in accordance with the procedures in part 28 of this chapter.
</P>
<P>(b) <I>Return of wine to bonded storage.</I> Wines which have been lawfully withdrawn, without payment of tax, under the provisions of part 28 of this chapter may be returned to bonded wine premises from which withdrawn for storage pending subsequent removal for lawful purposes. On return of wine to bonded wine premises, the proprietor shall record the receipt showing the gallonage of each tax class received and returned to storage on bonded wine premises and shall report the return on the TTB F 5120.17, Report of Bonded Wine Premises Operations for the reporting period with an explanatory notation. All provisions of this part applicable to wine in bond at bonded wine premises and to removals from bond are applicable to returned wine.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 24.293" NODE="27:1.0.1.1.19.14.350.19" TYPE="SECTION">
<HEAD>§ 24.293   Wine for Government use.</HEAD>
<P>(a) <I>General.</I> Wine may be removed from bonded wine premises, free of tax, for use of the Government of the United States, or any agency thereof, upon receipt of a proper Government order signed by the officer in charge of the department, institution, station, or similar establishment, to which the wine is to be shipped or other officer duly authorized to sign the order. The governmental order will show the kind, quantity and alcohol content of the wine desired; and the purpose for which the wine is to be used. Wine may also be removed for use by the governments of the several states and the District of Columbia, or of any subdivision thereof, or by any agency of the governments, free of tax, from bonded wine premises for analysis, testing, research or experimentation.
</P>
<P>(b) <I>Bill of lading and report of shipment.</I> Where wine is shipped by common carrier, the proprietor shall retain a copy of the bill of lading, covering the shipment, with the TTB F 5120.17, Report of Bonded Wine Premises Operations for the reporting period in which the shipment is made. The bill of lading will show the name and address of the agency to which the wine is shipped, identifying marks on containers or cases, and alcohol content of the wine. The governmental order, or a copy of the order, will be filed at the bonded wine premises available for inspection by appropriate TTB officers.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended (26 U.S.C. 5362, 5367, 7510))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.294" NODE="27:1.0.1.1.19.14.350.20" TYPE="SECTION">
<HEAD>§ 24.294   Destruction of wine.</HEAD>
<P>(a) <I>General.</I> Wine on bonded wine premises may be destroyed on or off wine premises by the proprietor without payment of tax. A proprietor who wants to destroy wine on or off wine premises must file with the appropriate TTB officer an application stating the kind, alcohol content, and approximate volume of wine to be destroyed, where the wine is to be destroyed, and the reason for destruction. Wine to be destroyed must be inspected, and the destruction supervised, by an appropriate TTB officer unless the appropriate TTB officer authorizes the proprietor to destroy the wine without inspection and supervision. The wine must not be destroyed until the proprietor has received authority from the appropriate TTB officer.
</P>
<P>(b) <I>Record of destruction.</I> The proprietor shall maintain a record of the volume destroyed and include the quantity on the TTB F 5120.17, Report of Bonded Wine Premises Operations. If part of the volume of the material destroyed is not wine, the volume destroyed will be reported on the basis of actual wine content of the material, excluding any dilution by water or other substance. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367, 5370))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13686, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="351" NODE="27:1.0.1.1.19.14.351" TYPE="SUBJGRP">
<HEAD>Return of Wine to Bond</HEAD>


<DIV8 N="§ 24.295" NODE="27:1.0.1.1.19.14.351.21" TYPE="SECTION">
<HEAD>§ 24.295   Return of wine to bond.</HEAD>
<P>(a) <I>General.</I> Wine, domestic or imported, which has been taxpaid and removed from bonded wine premises, may be received by the proprietor of a bonded wine premises for return to bond. The proprietor may, when such taxpaid wine is returned to bond, make a claim for refund or credit, without interest. However, tax will not be refunded or credited for any wine for which a claim has been or will be made under 27 CFR part 70, subpart G. If the tax has been determined but not paid, the person liable for the tax may, when such wine is returned to bond, be relieved of the liability. Claims for refund or credit, or relief from tax paid or determined on wine returned to bond, are filed in accordance with § 24.66.
</P>
<P>(b) <I>Receipt.</I> The quantity of taxpaid wine returned to bond is determined upon receipt on bonded wine premises. The quantity determined will be entered on the TTB F 5120.17, Report of Bonded Wine Premises Operations for the reporting period during which the wine is returned.
</P>
<P>(c) <I>Records.</I> The proprietor shall maintain records covering each lot of taxpaid wine returned to bond in accordance with § 24.312. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1332, as amended, 1382, as amended (26 U.S.C. 5044, 5371))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0053, 1513-0115, and 1513-0030)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-376, 61 FR 31030, June 19, 1996; T.D. TTB-130, 80 FR 55248, Sept. 15, 2015]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="352" NODE="27:1.0.1.1.19.14.352" TYPE="SUBJGRP">
<HEAD>Taxpaid Wine Operations</HEAD>


<DIV8 N="§ 24.296" NODE="27:1.0.1.1.19.14.352.22" TYPE="SECTION">
<HEAD>§ 24.296   Taxpaid wine operations.</HEAD>
<P>(a) <I>General.</I> The proprietor may conduct taxpaid wine operations authorized by § 24.102 in an area designated as a taxpaid wine premises at a bonded wine premises or at a taxpaid wine bottling house. Taxpaid foreign wine may be received on the taxpaid wine premises for reconditioning and removal without retaxpayment or for destruction without credit of tax. Any taxpaid wine operations will be separate from all nontaxpaid wine operations and taxpaid wine will be clearly identified as provided in § 24.135. The appropriate TTB officer may require any additional segregation and identification of taxpaid wine operations as deemed necessary to protect the revenue.
</P>
<P>(b) <I>Treatment and blending.</I> Taxpaid wine may be treated with sulfur dioxide compounds, refrigeration or pasteurization and may also be preserved, filtered or clarified by the use of methods or materials which will not change the basic character of the wine. Water may not be added to taxpaid wine. The proprietor who desires to treat wine in any manner (other than by simple filtration or the use of sulfur compounds, refrigeration or pasteurization) shall first file with the appropriate TTB officer an application giving the details of the proposed treatment. The proprietor may not use the treatment prior to approval. The proprietor may incur civil or criminal liability for using an unauthorized treatment of untaxpaid wine. Wine of the same kind (class and type), national origin and tax class may only be mixed to facilitate handling at a taxpaid wine bottling house; otherwise, the blending of taxpaid wine on such premises is prohibited. Taxpaid wine of different national origins, but of the same kind and tax class, may only be blended on taxpaid wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1407 (26 U.S.C. 5352, 5661))
</P>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="O" NODE="27:1.0.1.1.19.15" TYPE="SUBPART">
<HEAD>Subpart O—Records and Reports</HEAD>


<DIV8 N="§ 24.300" NODE="27:1.0.1.1.19.15.353.1" TYPE="SECTION">
<HEAD>§ 24.300   General.</HEAD>
<P>(a) <I>Records and reports.</I> A proprietor who conducts wine operations shall maintain wine transaction records and submit reports as required by this part. Transaction records may be recorded in wine gallons or in liters. However, required reports will show wine volumes in wine gallons. The equivalent wine gallons of wine bottled or packed and labeled according to metric measure will be determined using the following conversion factors:
</P>
<P>(1) <I>Per case.</I> Equivalent gallonage may be determined using the following conversion factors for cases of metric bottles:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Bottles per case
</TH><TH class="gpotbl_colhed" scope="col">Net content each bottle
</TH><TH class="gpotbl_colhed" scope="col">Equivalent gallonage
</TH></TR><TR><TD align="right" class="gpotbl_cell" scope="row">120</TD><TD align="left" class="gpotbl_cell">50 mL</TD><TD align="right" class="gpotbl_cell">1.58502
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">60</TD><TD align="left" class="gpotbl_cell">100 mL</TD><TD align="right" class="gpotbl_cell">1.58502
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">48</TD><TD align="left" class="gpotbl_cell">187 mL</TD><TD align="right" class="gpotbl_cell">2.37119
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">24</TD><TD align="left" class="gpotbl_cell">375 mL</TD><TD align="right" class="gpotbl_cell">2.37753
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">12</TD><TD align="left" class="gpotbl_cell">750 mL</TD><TD align="right" class="gpotbl_cell">2.37753
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">12</TD><TD align="left" class="gpotbl_cell">1 liter</TD><TD align="right" class="gpotbl_cell">3.17004
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">6</TD><TD align="left" class="gpotbl_cell">1.5 liter</TD><TD align="right" class="gpotbl_cell">2.37753
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">4</TD><TD align="left" class="gpotbl_cell">3 liter</TD><TD align="right" class="gpotbl_cell">3.17004</TD></TR></TABLE></DIV></DIV>
<P>(2) <I>Per liter.</I> Equivalent gallonage may be determined by multiplying total liters by a conversion factor of 0.26417 gallons per liter.
</P>
<P>(b) <I>Time of making entries.</I> Any operation or transaction is to be entered in records or commercial papers at the time the operation or transaction occurs, except that where records are posted from source records or from supplemental auxiliary records prepared at the time the operation or transaction occurs, entries in another record may be deferred to not later than the close of business of the third business day succeeding the day on which the operation or transaction occurs. The proprietor shall retain all source records and all supplemental or auxiliary records which support entries in other records or commercial papers in order to facilitate verification of operations by appropriate TTB officers. Source records and supplemental or auxiliary records may be used as a record of an operation or transaction and to prepare the TTB F 5120.17, Report of Bonded Wine Premises Operations, provided the record will readily allow for verification of an operation or transaction by appropriate TTB officers.
</P>
<P>(c) <I>Prescribed forms.</I> All reports required by this part must be submitted on forms prescribed by § 24.20. Entries will be made as indicated by the headings of the columns and lines, and as required by the instructions for the form. Report forms are furnished free of cost.
</P>
<P>(d) <I>Period of retention.</I> All prescribed returns, reports and records (including source records) will be retained by the proprietor for a period of not less than three years from the record date or the date of the last entry required to be made in the record, whichever is later. However, the appropriate TTB officer may require records to be kept an additional period not exceeding three years in any case where retention is determined to be necessary.
</P>
<P>(e) <I>Data processing.</I> (1) Notwithstanding any other provision of this section, data maintained on data processing equipment may be kept at a location other than the wine premises if the original operation or transaction source records required by this subpart are kept available for inspection at the wine premises.
</P>
<P>(2) Data which has been accumulated on cards, tapes, discs, or other accepted recording media will be retrievable within five business days.
</P>
<P>(3) The applicable data processing program will be made available for examination if requested by an appropriate TTB officer.
</P>
<P>(f) <I>Photographic copies of records.</I> The proprietor may record, copy, or reproduce records required by this part and may use any process which accurately reproduces the original record and which forms a durable medium for reproducing and preserving the original record. Whenever records are reproduced under this section, the reproduced records will be preserved in conveniently accessible files, and provisions will be made for examining, viewing and using the reproduced record the same as if it were the original record, and it will be treated and considered for all purposes as though it were the original record. All provisions of law and regulations applicable to the original are applicable to the reproduced record. As used in this paragraph, “original record” means the record required to be maintained or preserved by the proprietor, even though it may be an executed duplicate or other copy of the document.
</P>
<P>(g) <I>TTB F 5120.17, Report of Bonded Wine Premises Operations.</I> A proprietor who conducts bonded wine premises operations must complete and submit TTB F 5120.17 in accordance with the instructions on the form.
</P>
<P>(1) <I>Monthly report.</I> The proprietor must submit TTB F 5120.17 on a monthly basis, except as otherwise provided in paragraph (g)(2) or (g)(3) of this section.
</P>
<P>(2) <I>Quarterly or annual report.</I> (i) <I>General.</I> A proprietor may file a completed TTB F 5120.17 on a quarterly or annual basis if the proprietor meets the criteria in paragraph (g)(2)(ii) or (g)(2)(iii) of this section. To begin the quarterly or annual filing of a report of bonded wine premises operations, a proprietor must state the intent to do so in the “Remarks” section when filing the prior month's TTB F 5120.17. A proprietor who is commencing operations during a calendar year and expects to meet these criteria may use a letter notice to the appropriate TTB officer and file TTB F 5120.17 quarterly or annually for the remaining portion of the calendar year. If a proprietor becomes ineligible for quarterly or annual filing by exceeding the applicable tax liability or activity limit, the proprietor must file TTB F 5120.17 for that month and for all subsequent months of the calendar year. If there is jeopardy to the revenue, the appropriate TTB officer may at any time require any proprietor otherwise eligible for quarterly or annual filing of a report of bonded wine premises operations to file such report monthly.
</P>
<P>(ii) <I>Eligibility for quarterly report filing.</I> In order to be eligible to file TTB F 5120.17 on a quarterly basis, the proprietor must be filing quarterly tax returns under § 24.271(b)(1)(iii), and the proprietor must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 60,000 gallons for any one quarter during the calendar year when adding up the bulk and bottled wine on hand at the beginning of the month, bulk wine produced by fermentation, sweetening, blending, amelioration or addition of wine spirits, bulk wine bottled, bulk and bottled wine received in bond, taxpaid wine returned to bond, bottled wine dumped to bulk, inventory gains, and any activity written in the untitled lines of the report form which increases the amount of wine to be accounted for.
</P>
<P>(iii) <I>Eligibility for annual report filing.</I> In order to be eligible to file TTB F 5120.17 on an annual basis, the proprietor must be filing annual tax returns under § 24.271(b)(1)(ii), and the proprietor must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 20,000 gallons for any one month during the calendar year when adding up the bulk and bottled wine on hand at the beginning of the month, bulk wine produced by fermentation, sweetening, blending, amelioration or addition of wine spirits, bulk wine bottled, bulk and bottled wine received in bond, taxpaid wine returned to bond, bottled wine dumped to bulk, inventory gains, and any activity written in the untitled lines of the report form which increases the amount of wine to be accounted for.
</P>
<P>(3) <I>No reportable activity.</I> A proprietor who files a monthly TTB F 5120.17 and does not expect an inventory change or any reportable operations to be conducted in a subsequent month or months may attach to the filed TTB F 5120.17 a statement that, until a change in the inventory or a reportable operation occurs, a TTB F 5120.17 will not be filed.


</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367, 5555))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13683, 13684, 13686, Mar. 22, 1999; T.D. TTB-41, 71 FR 5603, Feb. 2, 2006; T.D. TTB-89, 76 FR 3511, Jan. 20, 2011; T.D. TTB-94, 76 FR 52862, Aug. 24, 2011; T.D. TTB-146, 82 FR 1126, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.301" NODE="27:1.0.1.1.19.15.353.2" TYPE="SECTION">
<HEAD>§ 24.301   Bulk still wine and bulk still hard cider record.</HEAD>
<P>A proprietor who produces or receives still wine or bulk still hard cider in bond, (including wine intended for use as distilling material or vinegar stock to which water has not yet been added) shall maintain records of transactions for bulk still wine or bulk still hard cider. Records will be maintained for each tax class of still wine or for hard cider including the date the transaction occurred. The bulk still wine and bulk still hard cider or for hard cider record will contain the following:
</P>
<P>(a) The volume produced by fermentation in wine gallons determined by actual measurement;
</P>
<P>(b) The volume received, shipped taxpaid, removed (e.g., taxpaid, in bond, export, family use, samples) and used in sparkling wine or sparkling hard cider production; if a tax credit under 26 U.S.C. 5041(c) may be claimed, the record will be maintained in sufficient detail to insure that such a tax credit is properly claimed;
</P>
<P>(c) The specific type of production method used, e.g., natural fermentation, amelioration, sweetening, addition of spirits, blending;
</P>
<P>(d) The volume of wine used and produced by amelioration, addition of spirits or sweetening, as determined by measurements of the wine before and after production.
</P>
<P>(e) The volume of wine used for and produced by blending, if wines of different tax classes are blended together;
</P>
<P>(f) The volume of wine used to produce formula wine, vinegar stock and distilling material;
</P>
<P>(g) The volume of wine removed to fermenters for refermentation or removed directly to the production facilities of a distilled spirits plant or vinegar plant;
</P>
<P>(h) Where a process authorized under § 24.248 is employed, records will be maintained to allow for verification of any limitation specified for the process employed and to ensure that the use of the process is consistent with good commercial practice;
</P>
<P>(i) Where a treating material is dissolved or dispersed in water as authorized in this part, the volume of water added to the wine; 
</P>
<P>(j) An explanation of any unusual transaction. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)); and
</P>
<P>(k) If the proprietor is an importer of wine to which the provisions of § 27.140 of this chapter apply, any certification or other records required at the time of release from customs custody under that section.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0115)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 55 FR 52738, Dec. 21, 1990; T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. TTB-31, 70 FR 49483, Aug. 24, 2005; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.302" NODE="27:1.0.1.1.19.15.353.3" TYPE="SECTION">
<HEAD>§ 24.302   Effervescent wine record.</HEAD>
<P>A proprietor who produces or receives effervescent wine in bond shall maintain records showing the transaction date and details of production, receipt, storage, removal, and any loss incurred. Records will be maintained for each specific process used (bulk or bottle fermented, injection of carbon dioxide) and by the specific kind of wine, <I>e.g.,</I> grape, apple, pear, cherry, hard cider. The record will contain the following:
</P>
<P>(a) The volume of still wine or still hard cider filled into bottles or pressurized tanks prior to secondary fermentation or prior to the addition of carbon dioxide;
</P>
<P>(b) The quantity of any first dosage used;
</P>
<P>(c) Any in-process bottling losses, e.g., refilling, spillage, breakage;
</P>
<P>(d) The volume of bottle fermented sparkling wine or bottle fermented sparkling hard cider in process, transferred and received;
</P>
<P>(e) The volume returned to still wine or still hard cider;
</P>
<P>(f) The quantity of any finishing dosage used (See § 24.192);
</P>
<P>(g) The volume of finished effervescent wine bottled or packed (amount produced);
</P>
<P>(h) The quantity of each item used in the production of dosages, e.g., wine, sugar, spirits;
</P>
<P>(i) An explanation of any unusual transaction;
</P>
<P>(j) If the proprietor is an importer of wine to which the provisions of § 27.140 of this chapter apply, any certification or other records required at the time of release from customs custody under that section; and
</P>
<P>(k) The amount of carbon dioxide in artificially carbonated hard cider or sparkling hard cider.


</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0115 and 1513-0139)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. TTB-31, 70 FR 49483, Aug. 24, 2005; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 24.303" NODE="27:1.0.1.1.19.15.353.4" TYPE="SECTION">
<HEAD>§ 24.303   Formula wine record.</HEAD>
<P>A proprietor who produces beverage formula wine shall maintain records showing by transaction date the details of production. The formula wine record will contain the following:
</P>
<P>(a) A number for each lot produced;
</P>
<P>(b) The approved formula number for each lot;
</P>
<P>(c) The volume of wine used in the production;
</P>
<P>(d) The volume produced and the gain or loss resulting from the production of each lot as determined by comparing the volume finished with the volume used (report the total loss or gain on the TTB F 5120.17 for the period in question);
</P>
<P>(e) An explanation of any unusual loss or gain;
</P>
<P>(f) The production of essences showing the formula number, quantities of spirits and herbs used, and the amount produced;
</P>
<P>(g) The quantity of essences purchased, and the use, transfer or other disposition of essences produced or purchased; and
</P>
<P>(h) A record of the receipt and use or other disposition of all herbs, aromatics, essences, extracts, or other flavoring materials used in the production of formula wine. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0059, 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 24.304" NODE="27:1.0.1.1.19.15.353.5" TYPE="SECTION">
<HEAD>§ 24.304   Chaptalization (Brix adjustment) and amelioration record.</HEAD>
<P>(a) <I>General.</I> A proprietor who chaptalizes juice or ameliorates juice or wine, or both, shall maintain a record of the operation and the transaction date. Records will be maintained for each kind of wine produced (grape, apple, strawberry, etc.). No form of record is prescribed, but the record maintained will contain the information necessary to enable appropriate TTB officers to readily determine compliance with chaptalization and amelioration limitations. All quantities will be recorded in wine gallons, and, where sugar is used, the quantity will be determined either by measuring the increase in volume or, for pure dry sugar by considering that each 13.5 pounds results in a volumetric increase of one gallon. If grape juice is chaptalized and subsequently this juice or wine is ameliorated, the quantity of pure dry sugar added to juice will be included as ameliorating material. If fruit juice other than grape is chaptalized and this juice or wine is ameliorated, the quantity of pure dry sugar added for chaptalization is not considered ameliorating material; however, if liquid sugar or invert sugar syrup is used, the quantity of water in such sugar is included as ameliorating material. The record will include the following:
</P>
<P>(1) The volume of juice (exclusive of pulp) deposited in fermenters;
</P>
<P>(2) The maximum volume of ameliorating material to which the juice is entitled, as provided in § 24.178;
</P>
<P>(3) The volume of ameliorating or chaptalizing material used; and
</P>
<P>(4) The volume of material authorized but not yet used.
</P>
<P>(b) <I>Supporting records.</I> The amelioration record will show the basis for entries and calculations, including determination of the natural fixed acid level and total solids content of juice, as applicable. The records are maintained on the basis of annual accounting periods, with each period commencing on July 1 of a year and ending on the following June 30, except the record for an accounting period may be continued after June 30, where the juice or wine included therein is to be held after that date for completion. When the amelioration of wine included in the record for one accounting period is complete, the record is closed and any unused ameliorating material may not be used. The proprietor may mix wines before amelioration of the wine is completed; however, the proprietor shall additionally maintain records necessary to establish the quantity of unused authorized material to which the resultant mixture would be entitled so that appropriate TTB officers may readily ascertain compliance with amelioration limitations.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended 1385, as amended (26 U.S.C. 5367, 5384))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 24.305" NODE="27:1.0.1.1.19.15.353.6" TYPE="SECTION">
<HEAD>§ 24.305   Sweetening record.</HEAD>
<P>A proprietor who sweetens natural wine with sugar or juice (unconcentrated or concentrated) under the provisions of this part shall maintain a record of sweetening by transaction date. The record will contain the following:
</P>
<P>(a) The gallons and degrees Brix of the wine before sweetening;
</P>
<P>(b) If concentrate is used, the degrees Brix of the concentrate;
</P>
<P>(c) If sugar or juice, or both, are used, the gallon equivalent that would be required to sweeten the volume of wine to its maximum authorized total solids content;
</P>
<P>(d) The quantity of sugar or juice used for sweetening; and
</P>
<P>(e) The gallons and degrees Brix of the wine produced by sweetening. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.306" NODE="27:1.0.1.1.19.15.353.7" TYPE="SECTION">
<HEAD>§ 24.306   Distilling material or vinegar stock record.</HEAD>
<P>A proprietor who produces or receives wine containing excess water which will be used expressly as distilling material or vinegar stock shall maintain a record by transaction date showing the amount and kind produced, received, from whom received, removed, and to whom sent. The proprietor shall keep a record of each type of material from which the distilling material or vinegar stock was fermented (e.g., grape, apple, strawberry). The volume of distilling material or vinegar stock produced, including wine lees refermented for use as distilling material, will be recorded upon removal from fermenting tanks. However, the provisions of this section do not apply to standard wine or unwatered wine lees recorded on the proprietor's record of bulk still wine and bulk still hard cider and removed for use as distilling material or vinegar stock. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0115)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.307" NODE="27:1.0.1.1.19.15.353.8" TYPE="SECTION">
<HEAD>§ 24.307   Nonbeverage wine record.</HEAD>
<P>A proprietor who produces nonbeverage wine or wine products shall maintain a record by transaction date of such wine produced, received and withdrawn as follows:
</P>
<P>(a) The kind, volume, and percent alcohol by volume of wine or wine products made from wine, which was rendered unfit for beverage use;
</P>
<P>(b) The kind and quantity of materials received and used to render wine, or wine products made from wine, unfit for beverage use;
</P>
<P>(c) The name, volume, percent alcohol by volume, and formula number, if produced under a formula, of each nonbeverage wine or wine product produced;
</P>
<P>(d) The volume, percent alcohol by volume, and formula number, if applicable, of the nonbeverage wine or wine products received;
</P>
<P>(e) The volume, percent alcohol by volume, and formula number, if applicable, of the nonbeverage wine or wine products removed;
</P>
<P>(f) The name and address of the person to whom removed; however, on any individual sale of less than 80 liters the name and address of the purchaser need not be recorded; and
</P>
<P>(g) In the case of vinegar production, the acetic acid and ethyl alcohol content of the vinegar.
</P>
<FP>When the proprietor sends nonbeverage wine or wine products free of tax to an adjacent or contiguous premises operated by the proprietor, records required by paragraphs (e) and (g) of this section will be maintained at each location. 
</FP>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.308" NODE="27:1.0.1.1.19.15.353.9" TYPE="SECTION">
<HEAD>§ 24.308   Bottled or packed wine record.</HEAD>
<P>A proprietor who bottles, packs, or receives bottled or packed beverage wine in bond shall maintain a record, by tax class, as follows:
</P>
<P>(a) The date, kind of wine, the number and size of bottle or other container filled (if not available in another record), and volume of wine bottled or packed, received in bond, returned to bond, and removed, e.g., taxpaid removals, in bond removals, dumped to bulk or destroyed, breakage, used for tasting. The volume recorded as bottled for bottle fermented sparkling wine or bottle fermented sparkling hard cider is determined after the disgorging and refilling process.
</P>
<P>(b) The label used on bottles or other containers will be shown in the record by using the “Applicant's Serial No.” which appears as item 2 on the label approval form, TTB F 5100.31 or a similar system which will allow for verification of labels used on bottles or containers.
</P>
<P>(c) The fill tests and alcohol tests required by § 24.255 for each lot of wine bottled or packed, or for each bottling or packing line operated each day, showing the date, type of test, item tested and the test results.
</P>
<P>(d) If a tax credit under 26 U.S.C. 5041(c) may be claimed, the record will be maintained in sufficient detail to insure that such a tax credit is properly claimed.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0115)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 55 FR 52738, Dec. 21, 1990; T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.309" NODE="27:1.0.1.1.19.15.353.10" TYPE="SECTION">
<HEAD>§ 24.309   Transfer in bond record.</HEAD>
<P>A proprietor who transfers wine in bond shall prepare a transfer record. The transfer record will show:
</P>
<P>(a) The name, address and registry number of the proprietor;
</P>
<P>(b) The name, address and registry number of the consignee;
</P>
<P>(c) The shipping date;
</P>
<P>(d) The kind of wine (class and type);
</P>
<P>(e) The alcohol content or the tax class;
</P>
<P>(f) The number containers larger than four liters and cases;
</P>
<P>(g) The serial numbers of cases (if any) or containers larger than four liters;
</P>
<P>(h) Any bulk container identification marks;
</P>
<P>(i) The volume shipped in gallons or liters; (if a tax credit under 26 U.S.C. 5041(c) may be claimed, the record will be maintained in sufficient detail to insure that such a tax credit is properly claimed);
</P>
<P>(j) The serial number of any seal used;
</P>
<P>(k) For unlabeled bottled or packed wine, the registry number of the bottler or packer;
</P>
<P>(l) Information necessary for compliance with § 24.314, e.g., the varietal, vintage, appellation of origin designation of the wine or any other information that may be stated on the label; and
</P>
<P>(m) Information as to any added substance or cellar treatment for which a label declaration is required for the finished product, or any other cellar treatment for which limitations are prescribed in this part, e.g., amount of decolorizing material used and kind and quantity of acid used. 
</P>
<SECAUTH TYPE="N">(Sec 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 55 FR 52738, Dec. 21, 1990; T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 24.310" NODE="27:1.0.1.1.19.15.353.11" TYPE="SECTION">
<HEAD>§ 24.310   Taxpaid removals from bond record.</HEAD>
<P>A proprietor removing wine from bond for consumption or sale on determination of tax shall maintain a record of wine removed at the time of removal either to taxpaid wine premises, taxpaid wine bottling house premises, or for direct shipment. The record will show the date of removal, the name and address of the person to whom shipped, and the volume, kind (class and type), and alcohol content or tax class  of the wine. However, on any individual sale of less than 80 liters, the name and address of the purchaser need not be recorded. The proprietor who removes taxpaid bulk wine to another wine premises shall prepare the shipping record and follow the procedures prescribed by § 24.281. The volume of wine removed taxpaid will be summarized daily by tax class in wine gallons to the nearest tenth gallon. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0115)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 24.311" NODE="27:1.0.1.1.19.15.353.12" TYPE="SECTION">
<HEAD>§ 24.311   Taxpaid wine record.</HEAD>
<P>A proprietor who has taxpaid United States or foreign wine on taxpaid wine premises or on taxpaid wine bottling house premises shall maintain records as follows:
</P>
<P>(a) <I>Record of receipts.</I> (1) The name and address of the person or wine premises from whom received;
</P>
<P>(2) The registry number (if any) of the wine premises from which received;
</P>
<P>(3) The date of receipt;
</P>
<P>(4) The kind of wine (class, type and, in the case of foreign wine, country of origin);
</P>
<P>(5) Alcohol content or tax class of the wine; and,
</P>
<P>(6) The volume of wine received in liters and gallons.
</P>
<P>(b) <I>Record of removals.</I> (1) The name and address of the person to whom removed; however, on any individual sale of less than 80 liters, the name and address of the purchaser need not be recorded;
</P>
<P>(2) The date of removal;
</P>
<P>(3) The kind of wine (class, type and, in the case of foreign wine or a blend of United States and foreign wine, country of origin); and
</P>
<P>(4) The volume of wine shipped in liters or gallons.
</P>
<P>(c) <I>Record of cases or containers filled.</I> (1) The date the cases or containers were filled;
</P>
<P>(2) The kind (class, type, and in the case of foreign wine or a blend of United States and foreign wine, country of origin) of wine bottled or packed;
</P>
<P>(3) The number of the tank used to fill the bottles or other containers;
</P>
<P>(4) The size of bottles or other containers and the number of cases or containers filled;
</P>
<P>(5) The serial number or date of fill marked on the cases or containers filled; and
</P>
<P>(6) The total volume of wine bottled or packed in liters or wine gallons. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)).
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 24.312" NODE="27:1.0.1.1.19.15.353.13" TYPE="SECTION">
<HEAD>§ 24.312   Wine returned to bond record.</HEAD>
<P>A proprietor shall maintain a record of any taxpaid wine returned to bond as follows:
</P>
<P>(a) The kind, volume, and tax class of the wine;
</P>
<P>(b) With regard to each tax class, the amount of tax previously paid or determined;
</P>
<P>(c) The location of the wine premises at which the wine was bottled or packed and, if known, the identity of the bonded wine premises from which removed on determination of tax;
</P>
<P>(d) The date the wine was returned to bond;
</P>
<P>(e) The serial numbers or other identifying marks on the cases or containers in which the wine was received; and
</P>
<P>(f) The final disposition of the wine. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0115)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-130, 80 FR 55248, Sept. 15, 2015]


</CITA>
</DIV8>


<DIV8 N="§ 24.313" NODE="27:1.0.1.1.19.15.353.14" TYPE="SECTION">
<HEAD>§ 24.313   Inventory record.</HEAD>
<P>A proprietor who files monthly or quarterly reports shall prepare a record of the physical inventory of all wine and spirits in storage at the close of business for each tax year, or where a different cycle has been established, the inventory will be taken at the end of that annual period. Such proprietors may use an annual inventory period different from the period beginning July 1 and ending June 30 by submitting a notice to the appropriate TTB officer. However, proprietors who file quarterly reports must select an annual inventory period that begins on the first day of a calendar quarter. Proprietors who file reports on a calendar year basis under the provisions of § 24.300(g) of this part shall take the physical inventory at the close of the calendar year. The inventory record will be retained on file with the proprietor's TTB F 5120.17, Report of Bonded Wine Premises Operations, for the reporting period when the inventory was taken. If a proprietor who files monthly reports takes a complete inventory at other times during the year, losses disclosed will be reported on the TTB F 5120.17 and the inventory record will be maintained on file with the report for each month when an inventory was taken. The proprietor's inventory record will include:
</P>
<P>(a) <I>Description of wine.</I> (1) State the generic name (e.g., port, claret) or designate as a white, rose or red table or dessert wine; or
</P>
<P>(2) Wine intended to be marketed with a vintage date, varietal name, or geographical designation will be appropriately identified, e.g., 1977 Napa Valley Pinot Noir; and
</P>
<P>(3) If the wine is other than grape wine, state the type, e.g., orange, honey.
</P>
<P>(b) <I>Bulk containers.</I> Tanks containing wine will be listed by tank number. Bulk containers which are barrels or puncheons containing the same kind of wine may be summarized, e.g., 10 barrels—red table wine 500 gals.;
</P>
<P>(c) <I>Cases, bottles and other similar containers.</I> The total volume of one kind of wine in cases, bottles and similar containers may be entered as one item and appropriately identified;
</P>
<P>(d) <I>Inventory summary.</I> The volume of bulk and bottled or packed wine will be totaled separately in wine gallons or in liters, by tax class, and reported on the TTB F 5120.17. Spirits will also be totaled and reported on the TTB F 5120.17; and
</P>
<P>(e) <I>Inventory record.</I> All inventory pages will be numbered consecutively and the last inventory page will be dated and signed after the statement, “Under penalties of perjury, I declare that I have examined this inventory record and to the best of my knowledge and belief, it is a true, correct and complete record of all wine and spirits required to be inventoried.”
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367, 5369))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-41, 71 FR 5603, Feb. 2, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 24.314" NODE="27:1.0.1.1.19.15.353.15" TYPE="SECTION">
<HEAD>§ 24.314   Label information record.</HEAD>
<P>A proprietor who removes bottled or packed wine with information stated on the label (e.g., varietal, vintage, appellation of origin, analytical data, date of harvest) shall have complete records so that the information appearing on the label may be verified by a TTB audit. A wine is not entitled to have information stated on the label unless the information can be readily verified by a complete and accurate record trail from the beginning source material to removal of the wine for consumption or sale. All records necessary to verify wine label information are subject to the record retention requirements of § 24.300(d). 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 24.315" NODE="27:1.0.1.1.19.15.353.16" TYPE="SECTION">
<HEAD>§ 24.315   Materials received and used record.</HEAD>
<P>(a) <I>General.</I> A proprietor who produces wine shall maintain a record showing the receipt and use or other disposition of basic winemaking materials received on wine premises. The record will show the date of receipt, the quantity received, the name and address from whom received, and the date of use or other disposition of the materials. For any material stored off wine premises, invoices or other commercial papers covering the purchase will also be kept available for inspection. Where grapes (or other fruit) received on wine premises are used in producing juice to be stored for future use or for removal, the record will show the quantity used and juice produced.
</P>
<P>(b) <I>Concentrated fruit juice.</I> When concentrated fruit juice or must is produced or received, the record will show the degrees Brix of the juice before and after concentration, the volume of juice before and after reconstitution, the volume of reconstitution water used for each dilution of the concentrate, and, if volatile fruit flavor was added, the kind and volume. Where fruit or juice is used to produce concentrated juice, the record will also show the quantity of fruit or volume of juice used. If the concentrated fruit juice is removed for use by another proprietor, a copy of the certificate required by § 24.180 will be retained. The record of concentrated fruit juice will contain the information necessary to determine compliance with the limitations prescribed in § 24.180. Incomplete or inaccurate records of concentrated fruit juice may result in the wine produced from the concentrated fruit juice to be designated substandard.
</P>
<P>(c) <I>Volatile fruit-flavor concentrate.</I> If volatile fruit-flavor concentrate is received, the record will show the volume received, the fold, the percent of alcohol by volume, any loss in transit, and the use or other disposition of the volatile fruit-flavor concentrate. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.316" NODE="27:1.0.1.1.19.15.353.17" TYPE="SECTION">
<HEAD>§ 24.316   Spirits record.</HEAD>
<P>A proprietor who receives, stores, or uses spirits shall maintain a record of receipt and use. The record will show the date of receipt, from whom received, and the kind and proof gallons. The spirits record will also show by date and proof gallons the spirits used or removed from bonded wine premises and to whom. The proof gallons of spirits received, used, removed from bonded wine premises, and on hand will be summarized and the account balanced at the end of each reporting period and reported on the TTB F 5120.17.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended, 1383, as amended (26 U.S.C. 5367, 5373))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 24.317" NODE="27:1.0.1.1.19.15.353.18" TYPE="SECTION">
<HEAD>§ 24.317   Sugar record.</HEAD>
<P>A proprietor who receives, stores, or uses sugar shall maintain a record of receipt and use. The record will show the date of receipt, from whom received, and the kind and quantity. Invoices covering purchases will be retained. When sugar is used for chaptalization (Brix adjustment), amelioration or sweetening, the record will show the date, kind, and quantity used. The sugar record will also show sugar used in the production of allied products and any sugar removed from the wine premises. At the close of each reporting period, the account will be balanced and the quantity of each kind of sugar remaining on hand will be shown.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 24.318" NODE="27:1.0.1.1.19.15.353.19" TYPE="SECTION">
<HEAD>§ 24.318   Acid record.</HEAD>
<P>A proprietor who adds acid to correct a natural deficiency in juice or wine or to stabilize wine shall maintain a record showing date of use, the kind and quantity of acid used, the kinds and volume of juice or wine in which used, and, when used to correct natural deficiency, the fixed acid level of juice or of wine before and after the addition of acid. The record will account for all acids received and be supported by purchase invoices.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.319" NODE="27:1.0.1.1.19.15.353.20" TYPE="SECTION">
<HEAD>§ 24.319   Carbon dioxide record.</HEAD>
<P>A proprietor who uses carbon dioxide in still wine or still hard cider shall maintain a record of the laboratory tests conducted to establish compliance with the limitations prescribed in § 24.245.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0115)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7665, Jan. 23, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 24.320" NODE="27:1.0.1.1.19.15.353.21" TYPE="SECTION">
<HEAD>§ 24.320   Chemical record.</HEAD>
<P>A proprietor who uses chemicals, preservatives, or other such materials shall maintain a record of the purchase, receipt and disposition of these materials. The record will show the kinds and quantities received, the date of receipt, and the names and addresses from whom purchased. A record of use in juice or wine of any of these materials, except for filtering aids, inert fining agents, sulfur dioxide, carbon dioxide (except as provided in § 24.319), nitrogen and oxygen, will be maintained, showing the kind, quantity, and date of use, and kind and volume of juice or wine in which used. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 24.321" NODE="27:1.0.1.1.19.15.353.22" TYPE="SECTION">
<HEAD>§ 24.321   Decolorizing material record.</HEAD>
<P>A proprietor who treats juice or wine to remove excess color with activated carbon or any other decolorizing material shall maintain a record to show:
</P>
<P>(a) The date the decolorizing material is added to the juice or wine;
</P>
<P>(b) The type (e.g. grape variety or kind of wine) and volume of juice or wine treated with decolorizing material; and
</P>
<P>(c) The kind and quantity of decolorizing material used to treat the juice or wine.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.322" NODE="27:1.0.1.1.19.15.353.23" TYPE="SECTION">
<HEAD>§ 24.322   Allied products record.</HEAD>
<P>A proprietor who uses fruit, fruit juice or concentrated fruit juice in the production of allied products shall maintain a record of these materials in accordance with § 24.315. The record will also show the production and disposition of other allied products. If sugar, acids, or chemicals are used in allied products, the receipt and use will also be recorded. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0298)


</APPRO>
</DIV8>


<DIV8 N="§ 24.323" NODE="27:1.0.1.1.19.15.353.24" TYPE="SECTION">
<HEAD>§ 24.323   Excise Tax Return form.</HEAD>
<P>A proprietor who removes wine subject to tax shall prepare a TTB F 5000.24 , Excise Tax Return. Any increase or decrease in tax due to previous return errors or for authorized credits will be shown on the return. The TTB F 5000.24 will be prepared and filed by the proprietor in accordance with the instructions printed on the form.
</P>
<SECAUTH TYPE="N">(August 16, 1954, ch. 736, 68A Stat. 775, as amended, 777, as amended, 391, as amended, 917, as amended (26 U.S.C. 5061, 7805))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0467 and 1512-0492)
</APPRO>
<CITA TYPE="N">[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011; T.D. TTB-146, 82 FR 1126, Jan. 4, 2017; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="P" NODE="27:1.0.1.1.19.16" TYPE="SUBPART">
<HEAD>Subpart P—Eligibility for the Hard Cider Tax Rate</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-147, 82 FR 7665, Jan. 23, 2017, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 24.331" NODE="27:1.0.1.1.19.16.353.1" TYPE="SECTION">
<HEAD>§ 24.331   Wine eligible for the hard cider tax rate.</HEAD>
<P>A wine removed on or after January 1, 2017 is eligible for the hard cider tax rate listed in § 24.270 if:
</P>
<P>(a) It contains no more than 0.64 gram of carbon dioxide per 100 milliliters of wine;
</P>
<P>(b) It is derived primarily from apples or pears, or from apple juice concentrate or pear juice concentrate and water, as described in § 24.332(a);
</P>
<P>(c) It contains no fruit product or fruit flavoring other than apple or pear, as described in § 24.332(b) and (c); and
</P>
<P>(d) It contains at least one-half of 1 percent and less than 8.5 percent alcohol by volume.
</P>
<SECAUTH TYPE="N">(Sec. 335, Pub. L. 114-113, 129 Stat. 3109, as amended (26 U.S.C. 5041))


</SECAUTH>
</DIV8>


<DIV8 N="§ 24.332" NODE="27:1.0.1.1.19.16.353.2" TYPE="SECTION">
<HEAD>§ 24.332   Hard cider materials.</HEAD>
<P>This section pertains to wine that is eligible for the hard cider tax rate as set out in § 24.331.
</P>
<P>(a) <I>Apples and pears.</I> Wine will be considered to be derived primarily from apples or pears, or from apple juice concentrate or pear juice concentrate and water, if the apple juice, pear juice, or combination of apple and pear juice, or the equivalent amount of concentrate of apple and/or pear juice reconstituted to the original brix of the juice prior to concentration, or any combination thereof, represents more than 50 percent of the volume of the finished product.
</P>
<P>(b) <I>Fruit products.</I> (1) Wine is not eligible for the hard cider tax rate if it contains any fruit product other than apple or pear. A fruit product is any material derived or made from any fruit or part of a fruit, including but not limited to, concentrates, extracts, juices, powders, or wine spirits.
</P>
<P>(2) Notwithstanding the provisions of § 24.332(b)(1), an authorized wine treating material set forth in § 24.246 that is derived from a fruit other than apple or pear may be used in the production of wine otherwise eligible for the hard cider tax rate if it is used for a purpose other than flavoring and it is either used in accordance with the wine treating materials provisions of § 24.246 (if used in a natural wine), or used in amounts insufficient to impart a fruit flavor other than apple or pear (if used in a special natural wine or other than standard wine). In determining whether the use of wine treating materials derived from a fruit other than apple or pear is for a purpose other than flavoring, TTB will consider such factors as the labeling and advertising of the product. Any written or pictorial reference to a material derived from a fruit other than apple or pear (other than the inclusion of a wine treating material in an ingredient labeling statement) in the labeling or advertising of a wine will be treated as evidence that the wine treating material was added for the purpose of flavoring the wine.
</P>
<P>(c) <I>Flavorings.</I> Wine is not eligible for the hard cider tax rate if it contains any fruit flavoring other than apple or pear. For purposes of this section, a fruit flavoring other than apple or pear is any flavoring that imparts the flavor of a fruit other than apple or pear and includes a natural fruit flavor, an artificial fruit flavor, and a natural flavor that artificially imparts the flavor of a fruit that is not contained in that flavor. In determining whether the use of a flavoring imparts the flavor of a fruit other than apple or pear, TTB will consider such factors as the labeling and advertising of the product. Any written or pictorial reference to a fruit flavor other than apple or pear in the labeling or advertising of a wine that contains a flavoring will be treated as evidence that the wine contains a flavoring that imparts a fruit flavor other than apple or pear and thus the wine is not eligible for the hard cider tax rate. The use of spices, honey, hops, or pumpkins as a flavoring will not make a wine ineligible for the hard cider tax rate.
</P>
<SECAUTH TYPE="N">(Sec. 335, Pub. L. 114-113, 129 Stat. 3109, as amended (26 U.S.C. 5041))


</SECAUTH>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="25" NODE="27:1.0.1.1.20" TYPE="PART">
<HEAD>PART 25—BEER
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>19 U.S.C. 81c; 26 U.S.C. 5002, 5051-5054, 5056, 5061, 5121, 5122-5124, 5222, 5401-5403, 5411-5417, 5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065, 6091, 6109, 6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676, 6806, 7342, 7606, 7805; 31 U.S.C. 9301, 9303-9308.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 25 appear by T.D. ATF-437, 66 FR 5478, 5479, Jan. 19, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.20.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 25.1" NODE="27:1.0.1.1.20.1.374.1" TYPE="SECTION">
<HEAD>§ 25.1   Production and removal of beer.</HEAD>
<P>The regulations in this part relate to beer and cereal beverages and cover the location, construction, equipment, operations and qualifications of breweries and pilot brewing plants.


</P>
</DIV8>


<DIV8 N="§ 25.2" NODE="27:1.0.1.1.20.1.374.2" TYPE="SECTION">
<HEAD>§ 25.2   Territorial extent.</HEAD>
<P>This part applies to the several States of the United States and the District of Columbia.


</P>
</DIV8>


<DIV8 N="§ 25.3" NODE="27:1.0.1.1.20.1.374.3" TYPE="SECTION">
<HEAD>§ 25.3   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part, including bonds, applications, notices, reports, returns, and records. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986, as amended by T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-437, 66 FR 5478, Jan. 19, 2001; T.D. TTB-44, 71 FR 16941, Apr. 4, 2006; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.4" NODE="27:1.0.1.1.20.1.374.4" TYPE="SECTION">
<HEAD>§ 25.4   Related regulations.</HEAD>
<P>Regulations relating to this part are listed below:
</P>
<EXTRACT>
<FP-1>27 CFR Part 7—Labeling and Advertising of Malt Beverages.
</FP-1>
<FP-1>27 CFR Part 28—Exportation of Alcohol.
</FP-1>
<FP-1>27 CFR Part 29—Stills and Miscellaneous Regulations. 
</FP-1>
<FP-1>31 CFR Part 225—Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties.</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-462, 66 FR 42737, Aug. 15, 2001; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004; T.D. TTB-146, 82 FR 1126, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.5" NODE="27:1.0.1.1.20.1.374.5" TYPE="SECTION">
<HEAD>§ 25.5   OMB control numbers assigned under the Paperwork Reduction Act.</HEAD>
<P>(a) <I>Purpose.</I> This section collects and displays the control numbers assigned to information collection requirements by the Office of Management and Budget contained in 27 CFR Part 25 under the Paperwork Reduction Act of 1980, Pub. L. 96-511.
</P>
<P>(b) <I>Display, OMB control number 1512-0045.</I> OMB control number 1512-0045 is assigned to the following sections in 27 CFR Part 25: §§ 25.23, 25.25, 25.52, 25.61, 25.62, 25.64, 25.66, 25.67, 25.68, 25.71, 25.72, 25.73, 25.74, 25.75, 25.76, 25.77, 25.78, 25.81, 25.85, 25.103, 25.114, 25.141, 25.142, 25.144, 25.158, 25.167, 25.184, 25.213, 25.222, 25.225, 25.272, 25.273, 25.277, 25.282, 25.299.
</P>
<P>(c) <I>Display, OMB control number 1512-0052.</I> OMB control number 1512-0052 is assigned to the following sections in 27 CFR Part 25: §§ 25.296(b), 25.297.
</P>
<P>(d) <I>Display, OMB control number 1512-0079.</I> OMB control number 1512-0079 is assigned to the following section in 27 CFR Part 25: § 25.65.
</P>
<P>(e) <I>Display, OMB control number 1512-0141.</I> OMB control number 1512-0141 is assigned to the following sections in 27 CFR Part 25: §§ 25.281, 25.282, 25.286.
</P>
<P>(f) <I>Display, OMB control number 1512-0333.</I> OMB control number 1512-0333 is assigned to the following sections in 27 CFR Part 25: §§ 25.42, 25.142, 25.186, 25.192, 25.195, 25.196, 25.211, 25.252, 25.264, 25.276, 25.284, 25.291, 25.292, 25.293, 25.294, 25.295, 25.296(a), 25.300, 25.301.
</P>
<P>(g) <I>Display, OMB control number 1512-0457.</I> OMB control number 1512-0457 is assigned to the following section in 27 CFR Part 25: § 25.165.
</P>
<P>(h) <I>Display, OMB control number 1512-0467.</I> OMB control number 1512-0467 is assigned to the following sections in 27 CFR Part 25: §§ 25.122, 25.160, 25.163, 25.164, 25.165, 25.166, 25.167, 25.168, 25.175, 25.224, 25.284, 25.285, 25.298.
</P>
<P>(i) <I>Display, OMB control number 1512-0472.</I> OMB control number 1512-0472 is assigned to the following sections in 27 CFR Part 25: §§ 25.111, 25.112, 25.113, 25.114, 25.117, 25.118, 25.119, 25.121, 25.126, 25.127, 25.131, 25.132, 25.133, 25.134.
</P>
<P>(j) <I>Display, OMB control number 1512-0478.</I> OMB control number 1512-0478 is assigned to the following sections in 27 CFR Part 25: §§ 25.24, 25.35, 25.141, 25.142, 25.143, 25.145, 25.192, 25.196, 25.231, 25.242, 25.251, 25.263.
</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986; T.D. ATF-268, 53 FR 8628, Mar. 16, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 25.6" NODE="27:1.0.1.1.20.1.374.6" TYPE="SECTION">
<HEAD>§ 25.6   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.25, Delegation of the Administrator's Authorities in 27 CFR Part 25, Beer. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16941, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.20.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 25.11" NODE="27:1.0.1.1.20.2.374.1" TYPE="SECTION">
<HEAD>§ 25.11   Meaning of terms.</HEAD>
<P>When used in this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms have the meanings given in this section.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.25, Delegation of the Administrator's Authorities in 27 CFR Part 25, Beer.
</P>
<P><I>Balling.</I> The percent by weight of dissolved solids at 60 °F. present in wort and beer, usually determined by a balling saccharometer.
</P>
<P><I>Bank.</I> Any commercial bank.
</P>
<P><I>Banking day.</I> Any day during which a bank is open to the public for carrying on substantially all its banking functions.
</P>
<P><I>Barrel.</I> When used as a unit of measure, the quantity equal to 31 U.S. gallons. When used as a container, a consumer package or keg containing a quantity of beer listed in § 25.156, or other size authorized by the appropriate TTB officer.
</P>
<P><I>Beer.</I> Beer, ale, porter, stout, and other similar fermented beverages (including saké and similar products) of any name or description containing one-half of one percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute for malt. Standards for the production of beer appear in § 25.15.
</P>
<P><I>Bonded premises of a distilled spirits plant.</I> The bonded premises of a distilled spirits plant as described in part 19 of this chapter. This term includes premises described in the preceding sentence even if the distilled spirits plant proprietor, as authorized under the exemption set forth in § 19.151(d) of this chapter, has not provided a bond for the premises.
</P>
<P><I>Bonded wine premises.</I> Bonded wine premises established under part 24 of this chapter. This term includes premises described in the preceding sentence even if the proprietor, as authorized under the exemption set forth in § 24.146(d) of this chapter, has not provided a bond for the premises.
</P>
<P><I>Bonded winery.</I> The premises of a bonded winery as described in part 24 of this chapter. This term includes premises described in the preceding sentence even if the proprietor, as authorized under § 24.146(d) of this chapter, has not provided a bond for the premises.
</P>
<P><I>Bottle.</I> A bottle, can or similar container.
</P>
<P><I>Bottling.</I> The filling of bottles, cans, and similar containers.
</P>
<P><I>Brewer.</I> Any person who brews beer (except a person who produces only beer exempt from tax under 26 U.S.C. 5053(e)) and any person who produces beer for sale.
</P>
<P><I>Brewery.</I> The land and buildings described in the Brewer's Notice, Form 5130.10, where beer is to be produced and packaged.
</P>
<P><I>Brewing.</I> The production of beer for sale.
</P>
<P><I>Business day.</I> The 24-hour cycle of operations in effect at the brewery and described on the Brewer's Notice, Form 5130.10.
</P>
<P><I>Calendar quarter.</I> A 3-month period during the year as follows: January 1 through March 31; April 1 through June 30; July 1 through September 30; and October 1 through December 31.
</P>
<P><I>Cereal beverage.</I> A beverage, produced either wholly or in part from malt (or a substitute for malt), and either fermented or unfermented, which contains, when ready for consumption, less than one-half of 1 percent of alcohol by volume.
</P>
<P><I>Commercial bank.</I> A bank, whether or not a member of the Federal Reserve System, which has access to the Federal Reserve Communications System (FRCS) or Fedwire. The “FRCS” or “Fedwire” is a communications network that allows Federal Reserve System member banks to effect a transfer of funds for their customers (or other commercial banks) to the Treasury Account at the Federal Reserve Bank of New York.
</P>
<P><I>Concentrate.</I> Concentrate produced from beer by the removal of water under the provisions of subpart R of this part. The processes of concentration of beer and reconstitution of beer are considered authorized processes in the production of beer.
</P>
<P><I>Director of the service center.</I> A Director of an Internal Revenue Service Center.
</P>
<P><I>District Director.</I> A district director of internal revenue.
</P>
<P><I>Electronic fund transfer or EFT.</I> Any transfer of funds made by a brewer's commercial bank, either directly or through a correspondent banking relationship, via the Federal Reserve Communications System (FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of New York.
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the return, claim, form, or other document or, when no form of declaration is prescribed, with the declaration: “I declare under the penalties of perjury that this ____________ (insert type of document such as statement, report, certificate, application, claim, or other document), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct and complete.”
</P>
<P><I>Fiscal year.</I> The period which begins October 1 and ends on the following September 30.
</P>
<P><I>Gallon.</I> The liquid measure containing 231 cubic inches.
</P>
<P><I>Losses.</I> Known quantities of beer lost due to breakage, casualty, or other unusual cause.
</P>
<P><I>Package.</I> A bottle, can, keg, barrel, or other original consumer container.
</P>
<P><I>Packaging.</I> The filling of any package.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company, or corporation.
</P>
<P><I>Racking.</I> The filling of kegs or barrels.
</P>
<P><I>Removed for consumption or sale.</I> Except when used with respect to beer removed without payment of tax as authorized by law, (a) the sale and transfer of possession of beer for consumption at the brewery, or (b) any removal of beer from the brewery.
</P>
<P><I>Secretary of the Treasury</I> or <I>Secretary.</I> The Secretary of the Treasury or a delegate of the Secretary.
</P>
<P><I>Service center.</I> An Internal Revenue Service Center in any of the Internal Revenue regions.
</P>
<P><I>Shortage.</I> An unaccounted for discrepancy (missing quantity) of beer disclosed by physical inventory.
</P>
<P><I>This chapter.</I> Title 27, Code of Federal Regulations, Chapter I (27 CFR Chapter I).
</P>
<P><I>Treasury account.</I> The Department of the Treasury's General Account at the Federal Reserve Bank of New York.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>Wort.</I> The product of brewing before fermentation which results in beer.
</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993; T.D. ATF-437, 66 FR 5478, Jan. 19, 2001; T.D. TTB-21, 70 FR 235, Jan. 3, 2005; T.D. TTB-44, 71 FR 16941, Apr. 4, 2006; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011; T.D. TTB-146, 82 FR 1126, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV7 N="374" NODE="27:1.0.1.1.20.2.374" TYPE="SUBJGRP">
<HEAD>Standards for Beer</HEAD>


<DIV8 N="§ 25.15" NODE="27:1.0.1.1.20.2.374.2" TYPE="SECTION">
<HEAD>§ 25.15   Materials for the production of beer.</HEAD>
<P>(a) Beer must be brewed from malt or from substitutes for malt. Only rice, grain of any kind, bran, glucose, sugar, and molasses are substitutes for malt. In addition, you may also use the following materials as adjuncts in fermenting beer: honey, fruit, fruit juice, fruit concentrate, herbs, spices, and other food materials.
</P>
<P>(b) You may use flavors and other nonbeverage ingredients containing alcohol in producing beer. Flavors and other nonbeverage ingredients containing alcohol may contribute no more than 49% of the overall alcohol content of the finished beer. For example, a finished beer that contains 5.0% alcohol by volume must derive a minimum of 2.55% alcohol by volume from the fermentation of ingredients at the brewery and may derive not more than 2.45% alcohol by volume from the addition of flavors and other nonbeverage ingredients containing alcohol. In the case of beer with an alcohol content of more than 6% by volume, no more than 1.5% of the volume of the beer may consist of alcohol derived from added flavors and other nonbeverage ingredients containing alcohol.
</P>
<CITA TYPE="N">[T.D. TTB-21, 70 FR 235, Jan. 3, 2005]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.20.3" TYPE="SUBPART">
<HEAD>Subpart C—Location and Use of Brewery</HEAD>


<DIV8 N="§ 25.21" NODE="27:1.0.1.1.20.3.375.1" TYPE="SECTION">
<HEAD>§ 25.21   Restrictions on location.</HEAD>
<P>A brewery may not be established or operated in any dwelling house or on board any vessel or boat, or in any building or on any premises where the revenue will be jeopardized or the effective administration of this part will be hindered.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5402))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.22" NODE="27:1.0.1.1.20.3.375.2" TYPE="SECTION">
<HEAD>§ 25.22   Continuity of brewery.</HEAD>
<P>Brewery premises will be unbroken except that they may be separated by public passageways, streets, highways, waterways, carrier rights-of-way, or partitions. If the brewery premises are separated, the parts will abut on the dividing medium and be adjacent to each other. If the brewer has facilities for loading, or for case packing or storage which are located within reasonable proximity to the brewery, the appropriate TTB officer may approve these facilities as part of the brewery if the revenue will not be jeopardized.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5402))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.23" NODE="27:1.0.1.1.20.3.375.3" TYPE="SECTION">
<HEAD>§ 25.23   Restrictions on use.</HEAD>
<P>(a) <I>Use of brewery in production of beer or cereal beverage.</I> A brewery may be used only for the following purposes involving the production of beer or cereal beverages:
</P>
<P>(1) For producing, packaging and storing beer, cereal beverages, vitamins, ice, malt, malt syrup, and other by-products of the brewing process, or soft drinks and other nonalcoholic beverages;
</P>
<P>(2) For processing spent grain, carbon dioxide, and yeast; and
</P>
<P>(3) For storing packages and supplies necessary or connected to brewery operations.
</P>
<P>(b) <I>Other authorized uses.</I> A brewer may use a brewery for other purposes, not involving the production of beer or cereal beverage, upon approval from the appropriate TTB officer, if the purposes:
</P>
<P>(1) Require the use of by-products or waste from the production of beer;
</P>
<P>(2) Utilize buildings, rooms, areas, or equipment not fully employed in the production or packaging of beer;
</P>
<P>(3) Are reasonably necessary to realize the maximum benefit from the premises and equipment and reduce the overhead of the brewery;
</P>
<P>(4) Are in the public interest because of emergency conditions;
</P>
<P>(5) Involve experiments or research projects related to equipment, materials, processes, products, by-products, or waste of the brewery; or
</P>
<P>(6) Involve operation of a tavern on brewery premises in accordance with § 25.25.
</P>
<P>(c) <I>Application.</I> Except as provided in § 25.25 for operation of a tavern on brewery premises, a brewer desiring to use a brewery for other purposes shall submit to the appropriate TTB officer , an application listing the purposes. The appropriate TTB officer will approve the application if the use for other purposes will not jeopardize the revenue or impede the effective administration of this part and is not contrary to specific provisions of law.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-268, 53 FR 8628, Mar. 16, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 25.24" NODE="27:1.0.1.1.20.3.375.4" TYPE="SECTION">
<HEAD>§ 25.24   Storage of beer.</HEAD>
<P>(a) <I>Taxpaid beer.</I> Beer of a brewer's own production on which the tax has been paid or determined may not be stored in the brewery, except as provided in § 25.25 or § 25.213. Beer produced by other brewers may be stored at the brewery under the following conditions:
</P>
<P>(1) Taxpaid beer will be segregated in such a manner as to preclude mixing with nontaxpaid beer;
</P>
<P>(2) If required by part 1 of this chapter, the brewer shall have a wholesalers or importers basic permit under the Federal Alcohol Administration Act, and keep records of the taxpaid beer as a wholesaler or importer under part 31 of this chapter.
</P>
<P>(3) Taxpaid beer may be stored in packages;
</P>
<P>(4) Taxpaid beer may not be relabeled;
</P>
<P>(5) Taxpaid beer may not be shown on required brewery records; and
</P>
<P>(6) The appropriate TTB officer may require physical segregation of taxpaid beer, or marking to show the status of taxpaid beer, if necessary to protect the revenue.
</P>
<P>(b) <I>Untaxpaid beer.</I> Packaged beer on which tax has not been paid or determined may be stored in any suitable location in the brewery.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-268, 53 FR 8628, Mar. 16, 1988; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005; T.D. TTB-79, 74 FR 37404, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 25.25" NODE="27:1.0.1.1.20.3.375.5" TYPE="SECTION">
<HEAD>§ 25.25   Operation of a tavern on brewery premises.</HEAD>
<P>(a) <I>General.</I> A brewer desiring to operate a tavern as an alternate use of brewery premises, shall submit a Brewer's Notice, Form 5130.10 containing the information required by paragraph (b) of this section. If the appropriate TTB officer finds that the operation of the tavern on brewery premises will not jeopardize the revenue or impede the effective administration of this part and is not contrary to specific provisions of law, the approval of the Brewer's Notice, Form 5130.10 shall constitute approval of the alternate use of brewery premises, in lieu of the application required by § 25.23. As used in this section, “tavern” means a portion of brewery premises where beer is sold to consumers. Food, and/or taxpaid wine, and/or taxpaid distilled spirits may also be sold at a tavern operated on brewery premises. Taxpaid beer produced by other brewers may be received, stored and sold on brewery premises in accordance with § 25.24.
</P>
<P>(b) <I>Brewer's Notice.</I> In preparing the Brewer's Notice, Form 5130.10, the applicant shall show the following information, in addition to the information required by the form:
</P>
<P>(1) The applicant shall identify the portion of the brewery which will be operated as a tavern by providing a diagram or narrative description of the boundaries of the tavern. The diagram or description shall identify areas of the brewery which are accessible to the public and areas which are not. The applicant shall describe security measures to be used to segregate public areas from non-public areas.
</P>
<P>(2) The applicant shall describe in detail the method to be used for measuring beer for the purposes of tax determination.
</P>
<P>(3) The applicant shall identify the tanks which will periodically contain tax-determined beer, and any other areas where tax-determined beer will be stored.
</P>
<P>(c) <I>Procedures.</I> The following procedures shall apply to operation of a tavern on brewery premises:
</P>
<P>(1) The brewery shall have a suitable method for measurement of the beer, such as a meter or gauge glass. Tax determination shall consist of the measurement of the beer and the preparation of the brewer's record of tax determination, required by § 25.292(a)(8). The taxes shall be determined prior to the time that the beer is dispensed into a container for consumption.
</P>
<P>(2) If the brewer uses one or more tanks for tax determination, the following procedures shall apply:
</P>
<P>(i) Each such tank shall be durably marked with the words “tax-determination tank”;
</P>
<P>(ii) The taxes shall be determined each time beer is added to a tax-determination tank; and
</P>
<P>(iii) The brewer may never simultaneously pump into and out of a tax-determination tank.
</P>
<P>(3) A brewer qualified under this section may store, on brewery premises, tax-determined beer which is intended for sale at a tavern operated on brewery premises, in accordance with this section. The prohibition of § 25.24 shall not apply to such tax-determined beer.
</P>
<P>(4) Beer consumed by employees and visitors in the brewery's tavern shall be beer on which the tax has been paid or determined.
</P>
<CITA TYPE="N">[T.D. ATF-268, 53 FR 8628, Mar. 16, 1988]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.20.4" TYPE="SUBPART">
<HEAD>Subpart D—Construction and Equipment</HEAD>


<DIV7 N="375" NODE="27:1.0.1.1.20.4.375" TYPE="SUBJGRP">
<HEAD>Construction</HEAD>


<DIV8 N="§ 25.31" NODE="27:1.0.1.1.20.4.375.1" TYPE="SECTION">
<HEAD>§ 25.31   Brewery buildings.</HEAD>
<P>Brewery buildings shall be arranged and constructed to afford adequate protection to the revenue and to facilitate inspection by appropriate TTB officers.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5402))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="376" NODE="27:1.0.1.1.20.4.376" TYPE="SUBJGRP">
<HEAD>Equipment</HEAD>


<DIV8 N="§ 25.35" NODE="27:1.0.1.1.20.4.376.2" TYPE="SECTION">
<HEAD>§ 25.35   Tanks.</HEAD>
<P>Each stationary tank, vat, cask or other container used, or intended for use, as a receptacle for wort, beer or concentrate produced from beer shall:
</P>
<P>(a) Be durably marked with a serial number and capacity; and
</P>
<P>(b) Be equipped with a suitable measuring device. The brewer may provide meters or other suitable portable devices for measuring contents of tanks or containers in lieu of providing each tank or container with a measuring device.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.36" NODE="27:1.0.1.1.20.4.376.3" TYPE="SECTION">
<HEAD>§ 25.36   Empty container storage.</HEAD>
<P>Empty barrels, kegs, bottles, other containers, or other supplies stored in the brewery will be segregated from filled containers.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.20.5" TYPE="SUBPART">
<HEAD>Subpart E—Measurement of Beer</HEAD>


<DIV8 N="§ 25.41" NODE="27:1.0.1.1.20.5.377.1" TYPE="SECTION">
<HEAD>§ 25.41   Measuring system required.</HEAD>
<P>The brewer shall accurately and reliably measure the quantity of beer transferred from the brewery cellars for bottling and for racking. The brewer may use a measuring device, such as a meter or gauge glass, or any other suitable method.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.42" NODE="27:1.0.1.1.20.5.377.2" TYPE="SECTION">
<HEAD>§ 25.42   Testing of measuring devices.</HEAD>
<P>(a) <I>General requirements.</I> If a measuring device such as a meter or gauge glass is used to measure beer, the brewer shall periodically test the measuring device and adjust or repair it, if necessary. The brewer shall keep records of tests available for inspection by appropriate TTB officers. Records of tests will include:
</P>
<P>(1) Date of test;
</P>
<P>(2) Identity of meter or measuring device;
</P>
<P>(3) Result of test; and
</P>
<P>(4) Corrective action taken, if necessary.
</P>
<P>(b) <I>Requirements for beer meters.</I> The allowable variation for beer meters as established by testing may not exceed ±0.5 percent. If a meter test discloses an error in excess of the allowable variation, the brewer shall immediately adjust or repair the meter. Adjustments will reduce the error to as near zero as practicable.
</P>
<P>(c) <I>Authority to require tests.</I> If the appropriate TTB officer has reason to believe that the accuracy or reliability of a measuring device is not being properly maintained, he or she may require the brewer to test the measuring device and, if necessary, adjust or repair the measuring device.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.20.6" TYPE="SUBPART">
<HEAD>Subpart F—Miscellaneous Provisions</HEAD>


<DIV8 N="§ 25.51" NODE="27:1.0.1.1.20.6.377.1" TYPE="SECTION">
<HEAD>§ 25.51   Right of Entry and Examination.</HEAD>
<P>An appropriate TTB officer may enter, during normal business hours, a brewery or other place where beer is stored and may, when the premises are open at other times, enter those premises in the performance of official duties. Appropriate TTB officers may make inspections as the appropriate TTB officer deems necessary to determine that operations are conducted in compliance with the law and this part. The owner of any building or place where beer is produced, made, or kept, or person having charge over such premises, who refuses to admit an appropriate TTB officer acting under 26 U.S.C. 7606, or who refuses to permit an appropriate TTB officer to examine beer must, for each refusal, forfeit $500.
</P>
<CITA TYPE="N">[T.D. ATF-437, 66 FR 5478, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 25.52" NODE="27:1.0.1.1.20.6.377.2" TYPE="SECTION">
<HEAD>§ 25.52   Variations from requirements.</HEAD>
<P>(a) <I>Exceptions to construction, equipment and methods of operations</I>—(1) <I>General.</I> The appropriate TTB officer may approve details of construction, equipment or methods of operations, in lieu of those specified in this part. The brewer shall show that it is impracticable to conform to the prescribed specification, and that the proposed variance: 
</P>
<P>(i) Will afford the protection to the revenue intended by the specifications in this part; 
</P>
<P>(ii) Will not hinder the effective administration of this part, and 
</P>
<P>(iii) Is not contrary to any provision of law.
</P>
<P>(2) <I>Application.</I> A brewer who proposes to employ methods of operations or construction or equipment other than as provided in this part shall submit an application to the appropriate TTB officer. The application will describe the proposed variation and state the need for it. The brewer shall submit drawings or photographs if necessary to describe the proposed variation.
</P>
<P>(3) <I>Approval by appropriate TTB officer.</I> The appropriate TTB officer may approve the use of an alternate method or procedure if:
</P>
<P>(i) The brewer shows good cause for its use;
</P>
<P>(ii) It is consistent with the purpose and effect of the procedure prescribed by this part and provides equal security to the revenue;
</P>
<P>(iii) It is not contrary to law; and
</P>
<P>(iv) It will not cause an increase in cost to the Government and will not hinder the effective administration of this part.
</P>
<P>(4) <I>Exceptions.</I> The appropriate TTB officer may not authorize an alternate method or procedure relating to the giving of any bond, or to the assessment, payment, or collection of tax.
</P>
<P>(5) <I>Conditions of approval.</I> A brewer may not employ an alternate method or procedure until the appropriate TTB officer has approved its use. The brewer shall, during the terms of the authorization of an alternate method or procedure, comply with the terms of the approved application.
</P>
<P>(b) <I>Emergency variations from requirements</I>—(1) <I>Application.</I> When an emergency exists, a brewer may apply to the appropriate TTB officer for a variation from the requirements of this part relating to construction, equipment, and methods of operation. The brewer shall describe the proposed variation and set forth the reasons for using it.
</P>
<P>(2) <I>Approval.</I> The appropriate TTB officer may approve an emergency variation from requirements if:
</P>
<P>(i) An emergency exists;
</P>
<P>(ii) The variation from the requirements is necessary;
</P>
<P>(iii) It will afford the same security and protection to the revenue as intended by the specific regulations;
</P>
<P>(iv) It will not hinder the effective administration of this part; and
</P>
<P>(v) It is not contrary to law.
</P>
<P>(3) <I>Conditions of approval.</I> A brewer may not employ an emergency variation from the requirements until the appropriate TTB officer has approved its use. Approval of variations from requirements are conditioned upon compliance with the conditions and limitations set forth in the approval.
</P>
<P>(c) <I>Automatic termination of approval.</I> If the brewer fails to comply in good faith with the procedures, conditions or limitations set forth in the approval, authority for the variation from requirements is automatically terminated and the brewer is required to comply with prescribed requirements of regulations.
</P>
<P>(d) <I>Withdrawal of approval.</I> The appropriate TTB officer may withdraw approval of an alternate method or procedure, approved under paragraph (a) or (b) of this section, if the appropriate TTB officer finds that the revenue is jeopardized or the effective administration of this part is hindered by the approval.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended, 1396, as amended (26 U.S.C. 5552, 5556))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV7 N="377" NODE="27:1.0.1.1.20.6.377" TYPE="SUBJGRP">
<HEAD>Samples</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>Sections 25.53 and 25.55 through 25.58 appear at 70 FR 235, Jan. 3, 2005, unless otherwise noted. 


</PSPACE></SOURCE>

<DIV8 N="§ 25.53" NODE="27:1.0.1.1.20.6.377.3" TYPE="SECTION">
<HEAD>§ 25.53   Submissions of samples of fermented products.</HEAD>
<P>The appropriate TTB officer may, at any time, require you to submit samples of:
</P>
<P>(a) Cereal beverage, saké, or any fermented product produced at the brewery,
</P>
<P>(b) Materials used in the production of cereal beverage, saké, or any fermented product; and
</P>
<P>(c) Cereal beverage, saké, or any fermented product, in conjunction with the filing of a formula.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5415, 5555, 7805(a)) 


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="378" NODE="27:1.0.1.1.20.6.378" TYPE="SUBJGRP">
<HEAD>Formulas</HEAD>


<DIV8 N="§ 25.55" NODE="27:1.0.1.1.20.6.378.4" TYPE="SECTION">
<HEAD>§ 25.55   Formulas for fermented products.</HEAD>
<P>(a) <I>For what fermented products must a formula be filed?</I> You must file a formula for approval by TTB if you intend to produce:
</P>
<P>(1) Any fermented product that will be treated by any processing, filtration, or other method of manufacture that is not generally recognized as a traditional process in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor.” For purposes of this paragraph:
</P>
<P>(i) Removal of any volume of water from beer, filtration of beer to substantially change the color, flavor, or character, separation of beer into different components, reverse osmosis, concentration of beer, and ion exchange treatments are examples of non-traditional processes for which you must file a formula.
</P>
<P>(ii) Pasteurization, filtration prior to bottling, filtration in lieu of pasteurization, centrifuging for clarity, lagering, carbonation, and blending are examples of traditional processes for which you do not need to file a formula.
</P>
<P>(iii) If you have questions about whether or not use of a particular process not listed in this section requires the filing of a formula, you may request a determination from TTB in accordance with paragraph (f) of this section.
</P>
<P>(2) Any fermented product to which flavors or other nonbeverage ingredients (other than hop extract) containing alcohol will be added.
</P>
<P>(3) Subject to paragraph (f) of this section, any fermented product to which coloring or natural or artificial flavors will be added.
</P>
<P>(4) Subject to paragraph (f) of this section, any fermented product to which fruit, fruit juice, fruit concentrate, herbs, spices, honey, maple syrup, or other food materials will be added.
</P>
<P>(5) Saké, including flavored saké and sparkling saké.
</P>
<P>(b) <I>Are separate formulas required for different products?</I> (1) You must file a separate formula for approval for each different fermented product for which a formula is required.
</P>
<P>(2) You may file a formula for a beer base to be used in the production of one or more other fermented products. The beer base must conform to the standards set forth in § 25.15.
</P>
<P>(c) <I>When must I file a formula?</I> (1) Except as provided in paragraph (c)(2) of this section, you may not produce a fermented product for which a formula is required until you have filed and received approval of a formula for that product.
</P>
<P>(2) You may, for research and development purposes (including consumer taste testing), produce a fermented product without an approved formula, but you may not sell or market this product until you receive approval of the formula for it.
</P>
<P>(d) <I>How long is my formula approval valid?</I> Your formula approved under this section remains in effect until: you supersede it with a new formula; you voluntarily surrender the formula; TTB cancels or revokes the formula; or the formula is revoked by operation of law or regulation.
</P>
<P>(e) <I>Are my previously approved statements of process valid?</I> Your statements of process approved before January 3, 2006 are considered approved formulas under this section, provided that any finished product that could be made under the statement of process would be in compliance with the provisions of this part. You do not need to submit a formula for approval if a statement of process that remains valid covers the product.
</P>
<P>(f) <I>Determinations by TTB regarding specific processes and ingredients.</I> (1) The appropriate TTB officer may determine whether or not use of a process not listed in paragraph (a)(1) of this section requires you to file a formula for approval. The appropriate TTB officer may also exempt the use of a particular coloring, flavoring, or food material from the formula filing requirement of paragraph (a)(3) or paragraph (a)(4) of this section upon a finding that the coloring, flavoring, or food material in question is generally recognized as a traditional ingredient in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor.”
</P>
<P>(2) You may request a determination from TTB on whether or not the use of a process not listed in paragraph (a)(1) of this section will require the filing of a formula or whether the use of a particular coloring, flavoring, or food material may be exempted from the formula filing requirement of paragraph (a)(3) or paragraph (a)(4) of this section. You should mail your request to the Assistant Director, Alcohol Labeling and Formulation Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005.


</P>
<P>(i) When requesting a determination as to whether a process is subject to the formula filing and approval requirement, the request must include:
</P>
<P>(A) A detailed description of the proposed process;
</P>
<P>(B) Evidence establishing that the proposed process is generally recognized as a traditional process in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor”; and
</P>
<P>(C) An explanation of the effect of the proposed process on the production of a fermented product.
</P>
<P>(ii) When requesting an exemption from the formula filing requirement in paragraph (a)(3) or paragraph (a)(4) of this section regarding coloring, flavoring, or food material ingredients, the request must include the following information:
</P>
<P>(A) A description of the proposed ingredient;
</P>
<P>(B) Evidence establishing that the proposed ingredient is generally recognized as a traditional ingredient in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor”; and
</P>
<P>(C) An explanation of the effect of the proposed ingredient in the production of a fermented product.


</P>
<CITA TYPE="N">[70 FR 235, Jan. 3, 2005, as amended by T.D. TTB-196, 89 FR 87943, Nov. 62, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.56" NODE="27:1.0.1.1.20.6.378.5" TYPE="SECTION">
<HEAD>§ 25.56   Filing of formulas.</HEAD>
<P>(a) <I>What are the general requirements for filing a formula?</I> (1) You must file your formula in writing. Your formula must identify each brewery where the formula applies by including each brewery name, address, and registry number.
</P>
<P>(2) You must serially number each formula, commencing with “1” and continuing in numerical sequence.
</P>
<P>(3) You must date and sign each formula.
</P>
<P>(4) You must file two copies of each formula with TTB.




</P>
<P>(b) <I>Where do I file a formula?</I> File your formula with the Assistant Director, Alcohol Labeling and Formulation Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005.


</P>
<CITA TYPE="N">[70 FR 235, Jan. 3, 2005, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.57" NODE="27:1.0.1.1.20.6.378.6" TYPE="SECTION">
<HEAD>§ 25.57   Formula information.</HEAD>
<P>(a) <I>Ingredient information.</I> (1) For each formula you must list each separate ingredient and the specific quantity used, or a range of quantities used. You may include optional ingredients in a formula if they do not impact the labeling or identity of the finished product.
</P>
<P>(2) For fermented products containing flavorings you must list for each formula: The name of the flavor; the product number or TTB drawback number and approval date of the flavor; the name and location (city and State) of the flavor manufacturer; the alcohol content of the flavor; and the point of production at which the flavor was added (that is, before, during, or after fermentation).
</P>
<P>(3) For formulas that include the use of flavors and other nonbeverage ingredients containing alcohol, you must explicitly indicate:
</P>
<P>(i) The volume and alcohol content of the beer base;
</P>
<P>(ii) The maximum volumes of the flavors and other nonbeverage ingredients containing alcohol to be used;
</P>
<P>(iii) The alcoholic strength of the flavors and other nonbeverage ingredients containing alcohol;
</P>
<P>(iv) The overall alcohol contribution to the finished product provided by the addition of any flavors or other nonbeverage ingredients containing alcohol. You are not required to list the alcohol contribution of individual flavors and other nonbeverage ingredients containing alcohol. You may state the total alcohol contribution from these ingredients to the finished product; and
</P>
<P>(v) The final volume and alcohol content of the finished product.
</P>
<P>(b) <I>Process information.</I> For each formula you must describe in detail each process used to produce a fermented beverage.
</P>
<P>(c) <I>Alcohol content.</I> For each formula you must state the alcohol content of the fermented product after fermentation and the alcohol content of the finished product.
</P>
<P>(d) <I>Beer base formulas.</I> You must refer in your formula to any approved formula number that covers the production of any beer base used in producing the formula product. If the beer base was produced by another brewery of the same ownership, you must also provide the name and address or name and registry number of that brewery.
</P>
<P>(e) <I>Additional information.</I> The appropriate TTB officer may at any time require you to file additional information concerning a fermented product, ingredients, or processes, in order to determine whether a formula should be approved or disapproved or whether the approval of a formula should be continued.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5415, 5555, 7805(a)) 


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.58" NODE="27:1.0.1.1.20.6.378.7" TYPE="SECTION">
<HEAD>§ 25.58   New and superseding formulas.</HEAD>
<P>(a) <I>New formulas.</I> Except as otherwise provided in paragraph (b) of this section, you must file a new formula (with a new formula number) for approval by TTB if you—
</P>
<P>(1) Create an entirely new fermented product that requires a formula;
</P>
<P>(2) Add new ingredients to an existing formulation;
</P>
<P>(3) Delete ingredients from an existing formulation;
</P>
<P>(4) Change the quantity of an ingredient used from the quantity or range of usage in an approved formula;
</P>
<P>(5) Change an approved processing, filtration, or other special method of manufacture that requires the filing of a formula; or
</P>
<P>(6) Change the contribution of alcohol from flavors or ingredients that contain alcohol.
</P>
<P>(b) <I>Superseding formulas.</I> You may file a superseding formula, instead of a new formula, if you have made any change listed in paragraphs (a)(2) through (a)(6) of this section and that change is not of a type that would require a holder of a certificate of label approval to file a new application for label approval on TTB Form 5100.31.
</P>
<P>(1) A superseding formula replaces an existing formula, and you should file one only if you do not intend to use the existing formula any more. A superseding formula must be filed with TTB for approval. When TTB approves a superseding formula, TTB will cancel your previous formula.
</P>
<P>(2) You may use the same formula number for a superseding formula that you used for the formula the superseding formula replaces, but you must annotate the formula number to indicate it is a superseding formula number. (For example, “Formula 2, superseding.”)
</P>
<P>(c) When you file a new or superseding formula with TTB, you must follow the procedures and other requirements of §§ 25.56 and 25.57.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.20.7" TYPE="SUBPART">
<HEAD>Subpart G—Qualification of a Brewery</HEAD>


<DIV7 N="379" NODE="27:1.0.1.1.20.7.379" TYPE="SUBJGRP">
<HEAD>Original Qualification</HEAD>


<DIV8 N="§ 25.61" NODE="27:1.0.1.1.20.7.379.1" TYPE="SECTION">
<HEAD>§ 25.61   General requirements for notice.</HEAD>
<P>(a) <I>Establishment.</I> Operations as a brewer may be conducted only by a person who has given notice as a brewer under this subpart. A person may not commence the business of a brewer until the appropriate TTB officer approves the brewery and the brewer's notice, including all documents made part of that notice.
</P>
<P>(b) <I>Brewer's Notice, Form 5130.10.</I> Each person must, before commencing business as a brewer, give notice on Form 5130.10. Each person continuing business as a brewer as provided in § 25.71 must give notice on Form 5130.10. Each notice will be executed under penalties of perjury, and all written statements, affidavits, and other documents submitted in support of the notice will be made part of the notice.
</P>
<P>(c) <I>Additional information.</I> The appropriate TTB officer may at any time require the brewer to furnish, as part of the notice, additional information which is necessary to protect and insure collection of the revenue.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 25.62" NODE="27:1.0.1.1.20.7.379.2" TYPE="SECTION">
<HEAD>§ 25.62   Data for notice.</HEAD>
<P>(a) <I>Required information.</I> The brewer shall prepare the notice on Form 5130.10 and shall include the following information:
</P>
<P>(1) Serial number.
</P>
<P>(2) Purpose for which filed.
</P>
<P>(3) Name and principal business address of the brewer and the location of the brewery if different from the business address.
</P>
<P>(4) Statement of the type of business organization and of the persons interested in the business, supported by the information listed in § 25.66.
</P>
<P>(5) Description of brewery, as specified in § 25.68.
</P>
<P>(6) A list of trade names which the brewer intends to use in doing business or in packaging beer.
</P>
<P>(7) [Reserved] 
</P>
<P>(8) The name and address of the owner of the land or buildings comprising the brewery, and of any mortgagee or other encumbrancer of the land or buildings comprising the brewery.
</P>
<P>(9) The 24-hour cycle of operations at the brewery which is to be the brewer's business day.
</P>
<P>(10) The process by which the brewer intends to render beer unfit for beverage use when beer is to be removed for use in manufacturing under §§ 25.191-25.192.
</P>
<P>(11) Statement showing ownership or controlling interests in other breweries which will establish eligibility for the transfer of beer without payment of tax between breweries of the same ownership, as authorized in § 25.181.
</P>
<P>(12) The date of the notice and the name and signature of the brewer or person authorized to sign on behalf of the brewer.
</P>
<P>(13) A statement whether the brewer is required to furnish a bond under § 25.91.
</P>
<P>(b) <I>Incorporation by reference.</I> If any of the information required by paragraph (a)(4) of this section is on file with a TTB office in connection with the qualification of any other premises operated by the brewer, that information, if accurate and complete, may be incorporated into the brewer's notice by reference.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-21, 70 FR 237, Jan. 3, 2005; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.63" NODE="27:1.0.1.1.20.7.379.3" TYPE="SECTION">
<HEAD>§ 25.63   Notice of registration.</HEAD>
<P>The Brewer's Notice, Form 5130.10, when approved by the appropriate TTB officer, will constitute the notice of registration of the brewery. The appropriate TTB officer will not approve the notice until the notice and all incorporated documents are complete, accurate, and in compliance with the requirements of this part. A person may not operate a brewery until the notice required by this subpart has been approved by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.64" NODE="27:1.0.1.1.20.7.379.4" TYPE="SECTION">
<HEAD>§ 25.64   Maintenance of notice file.</HEAD>
<P>The brewer shall maintain the approved Brewer's Notice, Form 5130.10, and all incorporated documents at the brewery premises, in complete and current condition, readily available for inspection by an appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.65" NODE="27:1.0.1.1.20.7.379.5" TYPE="SECTION">
<HEAD>§ 25.65   Power of attorney.</HEAD>
<P>The brewer shall execute and file a Form 1534 (5000.8) for each person authorized to sign or act on behalf of the brewer. The Form 1534 (5000.8) is not required for persons whose authority is furnished in the Brewer's Notice, Form 5130.10.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.66" NODE="27:1.0.1.1.20.7.379.6" TYPE="SECTION">
<HEAD>§ 25.66   Organizational documents.</HEAD>
<P>The supporting information required by paragraph (a)(4) of § 25.62 includes, as applicable, the following:
</P>
<P>(a) <I>Corporate documents.</I> (1) Corporate charter or a certificate of corporate existence or incorporation;
</P>
<P>(2) List of directors and officers, showing their names and addresses;
</P>
<P>(3) Extracts or digests of minutes of meetings of board of directors, authorizing certain individuals to sign for the corporation; and
</P>
<P>(4) Statement showing the number of shares of stock or other evidence of ownership, authorized and outstanding, and the voting rights of the respective owners or holders.
</P>
<P>(b) <I>Articles of partnership.</I> Copy of the articles of partnership or association, if any, or certificate of partnership or association if required to be filed by any State, county, or municipality.
</P>
<P>(c) <I>Statement of interest.</I> (1) Names and addresses of all persons having 10 percent or more stock in the corporation, or other legal entity, and the nature and amount of the stockholding or other interest of each, whether the interest appears in the name of the interested party or in the name of another person. If a corporation is wholly owned or controlled by another corporation, those persons of the parent corporation who meet the above standards are considered to be the persons interested in the business of the subsidiary, and the names thereof need be furnished only upon request of the appropriate TTB officer; or
</P>
<P>(2) In the case of an individual owner or partnership, the name and address of each person holding an interest in the brewery, whether the interest appears in the name of the interested party or in the name of another for that person.
</P>
<P>(d) <I>Availability of additional corporate documents.</I> The originals of documents required to be submitted under this section, and additional documents such as the articles of incorporation, bylaws, and State certificates authorizing the brewer to operate in the State where located (if other than the State in which the brewery is incorporated) shall be made available to any appropriate TTB officer upon request. In the case of multiplant brewers, these documents may be made available at the brewer's home brewery. Each brewer's notice filed by multiplant brewers will state the location where these corporate documents may be inspected.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.67" NODE="27:1.0.1.1.20.7.379.7" TYPE="SECTION">
<HEAD>§ 25.67   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 25.68" NODE="27:1.0.1.1.20.7.379.8" TYPE="SECTION">
<HEAD>§ 25.68   Description of brewery.</HEAD>
<P>(a) The Brewer's Notice, Form 5130.10, will include a description of (1) each tract of land comprising the brewery, and (2) a listing of each brewery building by its designated letter or number, giving the approximate ground dimensions and the purpose for which ordinarily used.
</P>
<P>(b) The description of the land will be in sufficient detail to enable appropriate TTB officers to determine the boundaries of the brewery.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="380" NODE="27:1.0.1.1.20.7.380" TYPE="SUBJGRP">
<HEAD>Changes After Original Qualification</HEAD>


<DIV8 N="§ 25.71" NODE="27:1.0.1.1.20.7.380.9" TYPE="SECTION">
<HEAD>§ 25.71   Amended or superseding notices.</HEAD>
<P>(a) <I>Requirement for amended notice.</I> (1) When there is a change with respect to the information shown in the Brewer's Notice, Form 5130.10, the brewer shall within 30 days of the change (except as otherwise provided in this subpart) submit an amended notice setting forth the new information. Changed notices will be submitted in skeleton form, with unchanged items marked “No change since Form 5130.10, Serial No. ______.”
</P>
<P>(2) The appropriate TTB officer may require immediate filing of an amended Form 5130.10 if the accuracy of existing documents has been affected by any change.
</P>
<P>(b) <I>Requirement for superseding notice.</I> (1) The appropriate TTB officer may require a brewer to file a new and complete notice, superseding those previously filed, in conjunction with the filing of a new bond. This superseding notice will become effective on the date of the brewer's bond or on the date of the brewer's bond continuation certificate.
</P>
<P>(2) If the information required by § 25.62(a) (4), (5), (6), (7), (9), and (10) is on file as part of an approved Form 5130.10 and is current, the brewer may incorporate by reference those documents as part of any superseding notice.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.72" NODE="27:1.0.1.1.20.7.380.10" TYPE="SECTION">
<HEAD>§ 25.72   Change in proprietorship.</HEAD>
<P>(a) <I>General.</I> If there is a change in the proprietorship of a brewery, the outgoing brewer shall comply with the requirements of § 25.85. The successor brewer shall, before beginning operations, qualify in the same manner as the proprietor of a new brewery. The successor brewer shall file a new notice and bond in his or her own name, except that the successor brewer is not required to file a bond if the brewer is exempt from bond requirements under § 25.91(e). Beer on hand may be transferred without payment of tax to the successor brewer and will be accounted for by that brewer.
</P>
<P>(b) <I>Fiduciary.</I> (1) If the successor to the brewer is an administrator, executor, receiver, trustee, assignee or other fiduciary, the fiduciary may in lieu of filing a new notice and bond, file an amended notice and furnish a consent of surety extending the terms of the predecessor's bond or continuation certificate. A fiduciary is not required to furnish a consent of surety under this paragraph if the brewer is exempt from bond requirements under § 25.91(e).
</P>
<P>(2) The fiduciary shall furnish the appropriate TTB officer a certified copy of the court order or other document showing qualification as fiduciary. The effective date of the qualifying documents filed by a fiduciary will be the same as the date of the order, or the date therein specified for the fiduciary to assume control. If the fiduciary was not appointed by the court, the date of the appointment will be the effective date of the qualifying documents filed by the fiduciary.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1127, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.73" NODE="27:1.0.1.1.20.7.380.11" TYPE="SECTION">
<HEAD>§ 25.73   Change in partnership.</HEAD>
<P>(a) <I>New notice required.</I> The withdrawal of one or more members of a partnership or the taking in of a new partner, whether active or silent, constitutes a change in proprietorship. Unless exempted by paragraph (b) of this section, the death, bankruptcy or adjudicated insolvency of one or more partners results in a dissolution of the partnership and a change in proprietorship. The successor shall qualify the brewery in the same manner as the proprietor of a new brewery.
</P>
<P>(b) <I>Continuing partnership.</I> A surviving partner or partners may continue to operate the brewery for purposes of liquidation and settlement under the following conditions:
</P>
<P>(1) Under the laws of the State where the partnership was formed, the partnership is not terminated on death or insolvency of a partner(s); and
</P>
<P>(2) Under the laws of the State where the partnership was formed, the surviving partner(s) has the exclusive right to control and possession of the partnership assets for the purpose of liquidation and settlement; and
</P>
<P>(3) If the brewer has filed a bond, a consent of surety is filed in which the surety and the surviving partner(s) agree to remain liable on the bond.
</P>
<P>(c) <I>Settlement of partnership.</I> If the surviving partner(s) acquires the business on completion of the settlement of the partnership, that partner(s) must qualify in his or her own name from the date of acquisition. The partner(s) must give a new brewer's notice on Form 5130.10 and a new bond on Form 5130.22, except that the partner(s) is not required to file a bond if the brewer is exempt from bond requirements under § 25.91(e).
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.74" NODE="27:1.0.1.1.20.7.380.12" TYPE="SECTION">
<HEAD>§ 25.74   Change in stockholders.</HEAD>
<P>Changes in the list of stockholders furnished under the provisions of § 25.66(c)(1) shall be submitted annually by the brewer on July 1 or on any other date approved by the appropriate TTB officer. When the sale or transfer of capital stock results in a change in the control or management of the business, notification of the change will be made within 30 days in accordance with § 25.71.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.75" NODE="27:1.0.1.1.20.7.380.13" TYPE="SECTION">
<HEAD>§ 25.75   Change in officers and directors.</HEAD>
<P>When there is any change in the list of officers or directors furnished under the provisions of § 25.66(a)(4), the brewer shall submit, within 30 days of the change, an amended notice on Form 5130.10. If the brewer has shown to the satisfaction of the appropriate TTB officer that certain corporate officers listed on the original notice have no responsibilities in connection with the operations covered by the notice, the appropriate TTB officer may waive the requirements for submitting applications for amended notice to cover changes of those corporate officers. In the case of multiplant brewers, new brewers notices need not be filed for those breweries in which the lists of officers and directors are incorporated by reference in their brewer's notices under § 25.62(b).
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.76" NODE="27:1.0.1.1.20.7.380.14" TYPE="SECTION">
<HEAD>§ 25.76   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 25.77" NODE="27:1.0.1.1.20.7.380.15" TYPE="SECTION">
<HEAD>§ 25.77   Change in location.</HEAD>
<P>When there is a change in location of the brewery, the brewer shall file an amended form TTB F 5130.10, and also shall file a new bond on form TTB F 5130.22 as required under § 25.91 or a consent of surety on form TTB F 5000.18 as required under § 25.92, extending the terms of an existing bond or continuation certificate to cover operations at the new location.

 The brewer is not required to file a new bond or consent of surety if the brewer is exempt from bond requirements under § 25.91(e). 
</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1127, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.78" NODE="27:1.0.1.1.20.7.380.16" TYPE="SECTION">
<HEAD>§ 25.78   Change in premises.</HEAD>
<P>Except as authorized in § 25.81, when the brewery is to be extended or curtailed, the brewer shall file an amended Form 5130.10. The additional facilities covered by the extension may not be used for the proposed purposes, and the portion to be curtailed may not be used for other than the previously approved purposes, prior to approval of Form 5130.10.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.79" NODE="27:1.0.1.1.20.7.380.17" TYPE="SECTION">
<HEAD>§ 25.79   Change in bond status.</HEAD>
<P>A brewer must file an amended Brewer's Notice, Form 5130.10, if the brewer's bond status changes because either:
</P>
<P>(a) A brewer has not furnished any bond and has become required to furnish a bond as provided under § 25.95(b); or
</P>
<P>(b) A brewer has furnished a bond, has become exempt from bond requirements under § 25.91(e), and chooses to terminate all bond coverage as provided under § 25.106.
</P>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1127, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="381" NODE="27:1.0.1.1.20.7.381" TYPE="SUBJGRP">
<HEAD>Alternation of Operations</HEAD>


<DIV8 N="§ 25.81" NODE="27:1.0.1.1.20.7.381.18" TYPE="SECTION">
<HEAD>§ 25.81   Alternation of brewery and bonded or taxpaid wine premises.</HEAD>
<P>(a) <I>General.</I> A brewer operating a contiguous bonded winery or taxpaid wine bottling house may, as provided in this section, alternate the use of each premises by extension or curtailment.
</P>
<P>(b) <I>Qualifying documents.</I> The brewer shall file and receive approval of the following qualifying documents:
</P>
<P>(1) Form 5120.25 and Form 5130.10 to cover the curtailment and extension of the premises to be alternated.
</P>
<P>(2) Special diagrams, in duplicate, delineating the brewery premises and the bonded or taxpaid wine premises as they will exist both during extension and curtailment. The diagrams will clearly depict all areas, buildings, floors, rooms, equipment and pipelines which are to be subject to alternation in their relative operating sequence.
</P>
<P>(3) Evidence of existing bond, consent of surety, continuation certificate, or a new bond to cover the proposed alternation of premises, except to the extent no bond is required under § 24.146 of this chapter or § 25.91(e).
</P>
<P>(c) <I>Brewer's responsibility.</I> After approval of qualifying documents, the brewer may alternate the designated premises pursuant to a letterhead notice submitted to the appropriate TTB officer. The notice will contain the information required by paragraph (d) of this section. Prior to the effective date and hour of the alternation, the brewer shall 
</P>
<P>(1) Remove all beer on brewery premises to be alternated to bonded or taxpaid wine premises, or 
</P>
<P>(2) Remove all wine from bonded to taxpaid wine premises to be alternated to brewery premises.
</P>
<P>(d) <I>Information for notice.</I> The notice required by paragraph (c) of this section will contain the following information:
</P>
<P>(1) Plant name and address;
</P>
<P>(2) Serial number;
</P>
<P>(3) Effective date and hour of proposed change;
</P>
<P>(4) Whether premises are to be curtailed or extended;
</P>
<P>(5) Purpose of curtailment or extension;
</P>
<P>(6) Identification of the special diagram depicting the premises as they exist when curtailed or extended; and
</P>
<P>(7) Date of execution and signature of brewer.
</P>
<P>(e) <I>Separation of premises.</I> The appropriate TTB officer may require that the portion of brewery or bonded or taxpaid wine premises extended or curtailed under this section be separated, in a manner satisfactory to the appropriate TTB officer, from the remaining portion of the brewery or bonded or taxpaid premises.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended, 1389, as amended, 1390, as amended (26 U.S.C. 5401, 5411, 5415))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986, as amended by T.D. ATF-299, 55 FR 24989, June 19, 1990; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="382" NODE="27:1.0.1.1.20.7.382" TYPE="SUBJGRP">
<HEAD>Discontinuance of Business</HEAD>


<DIV8 N="§ 25.85" NODE="27:1.0.1.1.20.7.382.19" TYPE="SECTION">
<HEAD>§ 25.85   Notice of permanent discontinuance.</HEAD>
<P>When a brewer desires to discontinue business permanently, he or she must file a notice on Form 5130.10. The brewer must state the purpose of the notice as “Discontinuance of business” and give the date of the discontinuance. When all beer has been lawfully disposed of, appropriate TTB officer will approve the Form 5130.10 and return a copy to the brewer. The brewer shall file a report on Form 5130.9 showing no beer or cereal beverage on hand and marked “Final Report.”
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.20.8" TYPE="SUBPART">
<HEAD>Subpart H—Bonds and Consents of Surety</HEAD>


<DIV8 N="§ 25.91" NODE="27:1.0.1.1.20.8.383.1" TYPE="SECTION">
<HEAD>§ 25.91   Requirement for bond.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (e) of this section, every person intending to commence the business of a brewer shall file a bond, Form 5130.22, as prescribed in this subpart, covering operations at the brewery, at the time of filing the original Brewer's Notice, Form 5130.10. Every brewer intending to continue the business of a brewer shall, once every 4 years, or as provided in § 25.95, execute and file a new bond, or continuation certificate as provided in § 25.97.
</P>
<P>(b) <I>Conditions of the bond.</I> The Brewer's Bond, Form 5130.22, will be conditioned upon the brewer faithfully complying with all provisions of law and regulations relating to the activities covered by the bond, and upon paying all taxes imposed by 26 U.S.C. Chapter 51 and all interest and penalties incurred or fines imposed for violations of those provisions.
</P>
<P>(c) <I>Additional information.</I> The appropriate TTB officer shall require, in connection with any brewer's bond, a statement executed under the penalties of perjury, as to whether the principal or any person owning, controlling, or actively participating in the management of the business of the principal has been convicted of or has compromised any offense set forth in § 25.101(a)(1), or has been convicted of any offense set forth in § 25.101(a)(2). In the event the above statement contains an affirmative answer, the applicant shall submit a statement describing in detail the circumstances surrounding the conviction or compromise.
</P>
<P>(d) <I>Bond required before beginning business.</I> A person may not begin business or continue business as a brewer until first receiving notice that the appropriate TTB officer has approved the bond, continuation certificate, or consent of surety, as required by this part.
</P>
<P>(e) <I>Bond exemption.</I> A brewer who pays tax on a deferred basis under § 25.164 is not required to provide a bond to cover operations and withdrawals of beer during any portion of a calendar year for which the brewer is eligible to use an annual or quarterly return period under § 25.164(c)(2) or (c)(3). A brewer is considered to be paying tax on a deferred basis for purposes of the preceding sentence even if the brewer does not pay tax during every return period as long as the brewer intends to pay tax in a future period. See §§ 25.62 and 25.79 for rules governing applying for this bond exemption. See § 25.95 for rules governing when an existing brewer who has not provided a bond under this paragraph must obtain bond coverage.


</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401); sec. 4(a), Pub. L. 91-673, 84 Stat. 2057 (26 U.S.C. 5417))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.92" NODE="27:1.0.1.1.20.8.383.2" TYPE="SECTION">
<HEAD>§ 25.92   Consent of surety.</HEAD>
<P>A brewer may change the terms of any bond filed under this part by filing a consent of surety. Consents of surety will be executed on Form 5000.18 by the brewer and the surety on the bond, with the same formality and proof of authorization as required for the execution of a bond.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1127, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.93" NODE="27:1.0.1.1.20.8.383.3" TYPE="SECTION">
<HEAD>§ 25.93   Penal sum of bond.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (a)(3) of this section, a brewer must furnish a bond of a penal sum as prescribed in this section.
</P>
<P>(1) <I>Brewers who pay taxes using semimonthly periods.</I> In the case of a brewer who pays taxes using semimonthly return periods under § 25.164(c)(1), the penal sum of the brewers bond must be equal to 10 percent of the maximum amount of tax calculated at the rates prescribed by law which the brewer will become liable to pay during a calendar year during the period of the bond on beer:
</P>
<P>(i) Removed for transfer to the brewery from other breweries owned by the same brewer;
</P>
<P>(ii) Removed without payment of tax for export or for use as supplies on vessels and aircraft;
</P>
<P>(iii) Removed without payment of tax for use in research, development, or testing; and
</P>
<P>(iv) Removed for consumption or sale.
</P>
<P>(2) <I>Brewers who pay taxes using quarterly or annual return periods.</I> In the case of a brewer who pays taxes using annual or quarterly return periods under § 25.164(c)(2) or (c)(3), the penal sum of the brewers bond is $1,000 and covers the beer described in paragraph (a)(1)(i)-(iv) of this section.
</P>
<P>(3) <I>Brewers who are exempt from bond requirements.</I> This section does not apply to a brewer who is exempt from bond requirements under § 25.91(e).
</P>
<P>(b) <I>Concentrate.</I> A brewer who concentrates beer under subpart R of this part shall calculate the penal sum of the bond by computing 10 percent of the amount of tax at the rates prescribed by law, on the maximum quantity of beer used in the production of concentrate during a calendar year. The brewer shall add this amount to the penal sum calculated under paragraph (a) of this section to determine the total penal sum of the brewer's bond.
</P>
<P>(c) <I>Maximum and minimum penal sums.</I> The maximum penal sum of the bond (or total penal sum if original and strengthening bonds are filed) is not to exceed $150,000 when the tax on beer is to be prepaid, or $500,000 when the tax is to be deferred as provided in § 25.164. The minimum penal sum of a bond is $1,000.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-41, 71 FR 5603, Feb. 2, 2006; T.D. TTB-89, 76 FR 3511, Jan. 20, 2011; T.D. TTB-94, 76 FR 52862, Aug. 24, 2011; T.D. TTB-109, 77 FR 72941, Dec. 7, 2012; T.D. TTB-123, 79 FR 58679, Sept. 30, 2014; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.94" NODE="27:1.0.1.1.20.8.383.4" TYPE="SECTION">
<HEAD>§ 25.94   Strengthening bonds.</HEAD>
<P>(a) <I>Requirement.</I> When the penal sum of the brewer's bond (calculated as provided in § 25.93) in effect is not sufficient, the principal may prepay the tax on beer as provided in subpart K of this part, or give a strengthening bond in sufficient penal sum if the surety is the same as on the bond in effect. If the surety is not the same, a new bond covering the entire liability is required.
</P>
<P>(b) <I>Restrictions.</I> A strengthening bond may not in any way release a former bond or limit a bond to less than the full penal sum.
</P>
<P>(c) <I>Date of execution.</I> Strengthening bonds will show the current date of execution and their effective date.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.95" NODE="27:1.0.1.1.20.8.383.5" TYPE="SECTION">
<HEAD>§ 25.95   Superseding bonds and new bonds for existing brewers.</HEAD>
<P>(a) <I>Superseding bonds.</I> The appropriate TTB officer may at any time, at his or her discretion, require a new bond that supersedes the existing bond. A superseding bond is required immediately in the case of insolvency of a surety. Executors, administrators, assignees, receivers, trustees, or other persons acting in a fiduciary capacity must execute a superseding bond or obtain a consent of surety on all bonds in effect. When the interests of the Government so demand, or in any case when the security of the bond becomes impaired for any reason, the principal will be required to give a superseding bond. When a bond is found to be not acceptable by the appropriate TTB officer, the principal will be required immediately to obtain a satisfactory superseding bond or discontinue business.
</P>
<P>(b) <I>New bonds for existing brewers</I>—(1) <I>General.</I> Subject to paragraph (b)(2) of this section, if an existing brewer has not furnished a bond covering operations and withdrawals of beer because the brewer was exempt from bond requirements under § 25.91(e), the brewer must furnish a bond as provided in this subpart beginning in any portion of a calendar year following the first date on which the aggregate amount of tax due from the brewer during the calendar year exceeds $50,000. When furnishing the bond, the brewer must also file an amended Brewer's Notice, Form 5130.10, as provided in § 25.79 to change the brewer's bond status.
</P>
<P>(2) <I>Grace period for new bonds for existing brewers</I>—(i) <I>Bonds covering operations.</I> Except as provided in paragraph (b)(2)(ii) of this section, an existing brewer who must furnish a bond as provided in paragraph (b)(1) of this section will be treated as having furnished the required bond if the brewer submits the bond on Form 5130.22 no later than 30 days following the first date on which the aggregate amount of tax due from the brewer during the relevant calendar year exceeds $50,000. Except as provided in paragraph (b)(2)(ii) of this section, the brewer will be treated as having furnished the required bond for the purposes of this paragraph until TTB approves or disapproves the bond.
</P>
<P>(ii) <I>Bonds covering tax-deferred removals.</I> The grace period specified in paragraph (b)(2)(i) of this section does not apply to beer removed for consumption or sale on deferred payment of tax. A brewer that must furnish a bond under paragraph (b)(1) of this section may not remove beer for consumption or sale on deferred payment of tax until TTB approves the bond.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1128, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.96" NODE="27:1.0.1.1.20.8.383.6" TYPE="SECTION">
<HEAD>§ 25.96   Superseding bond.</HEAD>
<P>When the principal submits a new bond to supersede a bond or bonds in effect, the appropriate TTB officer, after approving the superseding bond, will issue a notice of termination for the superseded bond under the provisions of this subpart. Superseding bonds will show the current date of execution and their effective date.


</P>
</DIV8>


<DIV8 N="§ 25.97" NODE="27:1.0.1.1.20.8.383.7" TYPE="SECTION">
<HEAD>§ 25.97   Continuation certificate.</HEAD>
<P>If the contract of surety between the brewer and the surety on an expiring bond or continuation certificate is continued in force for a succeeding period of not less than 4 years from the expiration date of the bond or continuation certificate, the brewer may submit, in lieu of a new bond, a Brewer's Bond Continuation Certificate on Form 5130.23, executed under the penalties of perjury, by the brewer and the surety attesting to continuation of the bond. Each continuation certificate will constitute a bond and all provisions of law and regulations applicable to bonds on Form 5130.22 given under this part, including the disapproval of bonds, are applicable to continuation certificates.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.98" NODE="27:1.0.1.1.20.8.383.8" TYPE="SECTION">
<HEAD>§ 25.98   Surety or security.</HEAD>
<P>(a) <I>Bond coverage.</I> Bonds required by this part will be given with corporate surety or collateral security.
</P>
<P>(b) <I>Corporate surety.</I> Surety bonds may be given only with surety companies holding certificates of authority from the Secretary as acceptable sureties on Federal bonds, subject to the limitations set forth in the current revision of Treasury Department Circular 570, Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies. 
</P>
<P>(c) <I>Availability of Circular 570.</I> Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).
</P>
<P>(d) <I>More than one corporate surety.</I> A bond may be executed by two or more corporate sureties. Each corporate surety may limit its liability in terms on the face of the bond in a specified amount. This amount may not exceed the limitations set forth for corporate security by the Secretary which are set forth in the current revision of Treasury Department Circular 570. The sum of the liabilities for the sureties will equal the required penal sum of the bond.
</P>
<P>(e) <I>Deposit of collateral securities in lieu of corporate surety.</I> Bonds or notes of the United States, or other obligations which are unconditionally guaranteed as to both interest and principal by the United States, may be pledged and deposited by principals as collateral security in lieu of corporate surety in accordance with 31 CFR part 225.
</P>
<P>(f) <I>Bond guaranteed by deposit of cash or cash equivalent.</I> As an alternative to the corporate surety bond under paragraph (b) of this section, a person can file a bond that guarantees payment of the liability by submitting cash or its equivalent (including a money order, cashier's check, or personal check). Cash or its equivalent must be no less than the penal sums of the required bonds. Bonds described in this paragraph will be released if there are no outstanding liabilities when the bond is terminated. Cash equivalents must be payable to the Alcohol and Tobacco Tax and Trade Bureau.


</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1128, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.99" NODE="27:1.0.1.1.20.8.383.9" TYPE="SECTION">
<HEAD>§ 25.99   Filing powers of attorney.</HEAD>
<P>Each bond, continuation certificate, and each consent of surety will be accompanied by a power of attorney authorizing the agent or officer to execute the document. The power of attorney will be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed original, it will be accompanied by a certificate of its validity.
</P>
<SECAUTH TYPE="N">(96 Stat. 1068, 1085 (31 U.S.C. 9304-9308))


</SECAUTH>
</DIV8>


<DIV7 N="383" NODE="27:1.0.1.1.20.8.383" TYPE="SUBJGRP">
<HEAD>Disapproval or Termination of Bonds or Consents of Surety</HEAD>


<DIV8 N="§ 25.101" NODE="27:1.0.1.1.20.8.383.10" TYPE="SECTION">
<HEAD>§ 25.101   Disapproval of bonds or consents of surety.</HEAD>
<P>(a) <I>Reasons for disapproval.</I> The appropriate TTB officer may disapprove a bond or consent of surety if the individual, firm, partnership, corporation, or association giving the bond or consent of surety, or if any of the above entities owning, controlling or actively participating in the management of a business giving a bond as a brewer, has been previously convicted in a court of competent jurisdiction of:
</P>
<P>(1) Any fraudulent noncompliance with any provision of law of the United States if it related to internal revenue or customs taxation of distilled spirits, wines or beer, or if the offense shall have been compromised with the individual, firm, partnership, corporation, or association on payment of penalties or otherwise; or
</P>
<P>(2) Any felony under a law of any State or the District of Columbia, or the United States, prohibiting the manufacture, sale, importation, or transportation of distilled spirits, wines, beer, or other intoxicating liquor.
</P>
<P>(b) <I>Appeal of disapproval.</I> If the bond or consent of surety is disapproved, the person giving the bond or consent of surety may appeal the disapproval to the appropriate TTB officer, who will grant a hearing in the matter if requested by the applicant or brewer, and whose decision will be final.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 25.102" NODE="27:1.0.1.1.20.8.383.11" TYPE="SECTION">
<HEAD>§ 25.102   Termination of surety's liability.</HEAD>
<P>The liability of a surety on a bond required by this part will be terminated only as to liability arising on or after:
</P>
<P>(a) The effective date of a superseding bond;
</P>
<P>(b) The date of approval of the discontinuance of business of the brewer;
</P>
<P>(c) Following the giving of notice by the surety; or
</P>
<P>(d) In the case of a brewer who applies to terminate a surety bond under § 25.106, the date that TTB approves the brewer's application under that section.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1128, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.103" NODE="27:1.0.1.1.20.8.383.12" TYPE="SECTION">
<HEAD>§ 25.103   Notice by surety for relief from liability under bond.</HEAD>
<P>A surety may, at any time, in writing, notify the principal and the appropriate TTB officer that the surety desires after a specified date (not less than 60 days after the date of service on the principal) to be relieved of any liability under the bond which is incurred by the principal after the date named in the notice. The surety shall include proof of service of the notice on the principal with the notice filed with the appropriate TTB officer. The notice will become effective on the date named, unless the surety withdraws the notice, in writing. The surety on the bond remains liable under the bond with respect to any liability incurred by the principal while the bond is in effect.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.104" NODE="27:1.0.1.1.20.8.383.13" TYPE="SECTION">
<HEAD>§ 25.104   Termination of bonds.</HEAD>
<P>(a) <I>General.</I> Brewer's bonds may be terminated as to liability for future removals or receipts under the following circumstances:
</P>
<P>(1) Pursuant to application of the surety as provided in § 25.103;
</P>
<P>(2) On approval of a superseding bond as provided in § 25.95;
</P>
<P>(3) When a brewer discontinues business as provided in § 25.85; or
</P>
<P>(4) When an existing brewer who becomes exempt from bond requirements terminates the bond as provided in § 25.106.
</P>
<P>(b) <I>Notification.</I> On termination of the surety's liability under a bond, the appropriate TTB officer will notify the principal and sureties.
</P>
<SECAUTH TYPE="N">(31 U.S.C. 9301, 9303)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1128, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.105" NODE="27:1.0.1.1.20.8.383.14" TYPE="SECTION">
<HEAD>§ 25.105   Release of collateral security.</HEAD>
<P>Bonds, notes, and other obligations of the United States, pledged and deposited as security in connection with bonds required by this part will be released in accordance with 31 CFR part 225. When the appropriate TTB officer determines there is no outstanding liability against the bond and that it is no longer necessary to hold the security, he or she shall fix the date or dates on which a part or all of the security will be released. At any time prior to the release of the security, the appropriate TTB officer may, for proper cause, extend the date of release of the security for an additional length of time as may be appropriate.
</P>
<SECAUTH TYPE="N">(31 U.S.C. 9301, 9303)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1128, Jan 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.106" NODE="27:1.0.1.1.20.8.383.15" TYPE="SECTION">
<HEAD>§ 25.106   Application to terminate bond by existing brewer who becomes exempt from bond requirements.</HEAD>
<P>If a brewer has held a bond and becomes exempt from bond requirements under § 24.91(e), the brewer may apply to TTB to terminate the bond. To apply, the brewer must file an amendment to the Brewer's Notice, Form 5130.10, as provided in § 25.79. The brewer must accurately state in the submission to TTB that the brewer:
</P>
<P>(a) Will withdraw beer for deferred payment of tax under § 25.164;
</P>
<P>(b) Reasonably expects to be liable for not more than $50,000 in taxes with respect to beer imposed by 26 U.S.C. 5051 and 7652 for the current calendar year (see definition of “Reasonably expects” in § 25.164(c)(4)(ii)); and
</P>
<P>(c) Was liable for not more than $50,000 in such taxes in the preceding calendar year.
</P>
<CITA TYPE="N">[T.D TTB-146, 82 FR 1128, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.20.9" TYPE="SUBPART">
<HEAD>Subpart I—Dealer Registration and Recordkeeping</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-79, 74 FR 37404, July 28, 2009, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 25.111" NODE="27:1.0.1.1.20.9.384.1" TYPE="SECTION">
<HEAD>§ 25.111   Definitions.</HEAD>
<P>For purposes of this subpart, the following terms have the meanings indicated:
</P>
<P><I>Dealer.</I> A person who sells, or offers for sale, any alcohol product (distilled spirits, wines, and/or beer) fit for beverage use.
</P>
<P><I>Retail dealer in liquors.</I> A dealer who sells, or offers for sale, distilled spirits, wines, or beer to any person other than a dealer.
</P>
<P><I>Wholesale dealer in liquors.</I> A dealer who sells, or offers for sale, distilled spirits, wines, or beer to another dealer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.112" NODE="27:1.0.1.1.20.9.384.2" TYPE="SECTION">
<HEAD>§ 25.112   Dealer registration.</HEAD>
<P>Every brewer who sells, or offers for sale, any alcohol product (distilled spirits, wines, or beer) fit for beverage use must register as a dealer in accordance with part 31 of this chapter. However, the Brewer's Notice, TTB Form 5130.10, filed under subpart G of this part, and approval of that notice by the appropriate TTB officer, will constitute the brewer's registration as a dealer at the brewery. Every brewer registered as a dealer under this subpart will be classified as a wholesale dealer in liquors (see § 31.32 of this chapter) and as such may also operate as a retail dealer in liquors without additional registration. Registration covers all sales from the same location, including sales of wine, spirits, or other brewers' beer. As provided in § 31.52 of this chapter, the brewer is subject to no additional registration for making sales of wine or beer at the customer's place of business. Otherwise, a brewer who conducts business as a dealer at a location other than the brewery must register and keep records in accordance with part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.113" NODE="27:1.0.1.1.20.9.384.3" TYPE="SECTION">
<HEAD>§ 25.113   Amending the dealer registration.</HEAD>
<P>Every brewer registered as a dealer under this subpart must maintain a current and accurate Brewer's Notice, TTB Form 5130.10. Whenever there is a change to any of the information provided in the approved Brewer's Notice, the brewer must amend the notice within the time period specified in subpart G of this part. An amendment to the Brewer's Notice, Form 5130.10, will also serve as an amendment of the brewer's dealer registration under this subpart. The brewer's dealer registration will also terminate when brewery operations under the Brewer's Notice terminate.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.114" NODE="27:1.0.1.1.20.9.384.4" TYPE="SECTION">
<HEAD>§ 25.114   Dealer records.</HEAD>
<P>Every dealer is required to maintain records of transactions. Beer transactions that appear in the records required by subpart U of this part will meet the brewer's recordkeeping requirements as a dealer. For other transactions not covered in the brewery records, such as retail sales of wine or distilled spirits in a restaurant at the brewery, or operations as a wholesale dealer in wine or distilled spirits, the brewer must keep the records specified for dealers in part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.20.10" TYPE="SUBPART">
<HEAD>Subpart J—Marks, Brands, and Labels</HEAD>


<DIV8 N="§ 25.141" NODE="27:1.0.1.1.20.10.384.1" TYPE="SECTION">
<HEAD>§ 25.141   Barrels and kegs.</HEAD>
<P>(a) <I>General requirements.</I> The brewer's name or trade name and the place of production (city and, if necessary for identification, State) shall be permanently marked on each barrel or keg. If the place of production is clearly shown on the bung or on the tap cover, or on a label securely affixed to each barrel or keg, the place of production need not be permanently marked on each barrel or keg. No statement as to payment of internal revenue taxes may be shown.
</P>
<P>(b) <I>Breweries of same ownership.</I> (1) If two or more breweries are owned or operated by the same person, firm, or corporation (as defined in § 25.181), the place of production:
</P>
<P>(i) May be shown as the only location on the bung, or on the tap cover, or on a separate label attached to the keg;
</P>
<P>(ii) May be included in a listing of the locations of breweries qualified under this part if the place of production is not given less emphasis than any of the other locations; or
</P>
<P>(iii) Need not be shown if the brewer's principal place of business is shown in lieu of any other location. The brewer's principal place of business will be the location of a brewery operated by the brewer and qualified under this part.
</P>
<P>(2) If the location of two or more breweries is shown on the keg, bung, tap cover, or on a separate label attached to the keg (paragraph (b)(1)(ii)), or if the brewer's principal place of business is shown in lieu of the actual place of production (paragraph (b)(1)(iii)), the brewer shall indicate the actual place of production by printing, coding or other markings on the keg, bung, tap cover, or on a separate label attached to the keg. The coding system employed will permit an appropriate TTB officer to determine the place of production (including street address if two or more breweries are located in the same city) of the beer. The brewer must notify the appropriate TTB officer prior to employing a coding system.
</P>
<P>(c) <I>Label approval required.</I> Labels or tap covers used by brewers shall be covered by certificates of label approval, Form 5100.31, when required by part 7 of this chapter.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0474)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-225, 51 FR 8492, Mar. 12, 1986; T.D. ATF-437, 66 FR 5479, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 25.142" NODE="27:1.0.1.1.20.10.384.2" TYPE="SECTION">
<HEAD>§ 25.142   Bottles.</HEAD>
<P>(a) <I>Label requirements.</I> Each bottle of beer shall show by label or otherwise the name or trade name of the brewer, the net contents of the bottle, the nature of the product such as beer, ale, porter, stout, etc., and the place of production (city and, when necessary for identification, State). No statement as to payment of internal revenue taxes may be shown.
</P>
<P>(b) <I>Breweries of same ownership.</I> (1) If two or more breweries are owned or operated by the same person, firm, or corporation (as defined in § 25.181), the place of production:
</P>
<P>(i) May be shown as the only location on the label;
</P>
<P>(ii) May be included in a listing of the locations of breweries qualified under this part if the place of production is not given less emphasis than any of the other locations; or
</P>
<P>(iii) Need not be shown if the brewer's principal place of business is shown in lieu of any other location. The brewer's principal place of business will be the location of a brewery operated by the brewer and qualified under this part.
</P>
<P>(2) If the location of two or more breweries is shown on the label (paragraph (b)(1)(ii)), or if the brewer's principal place of business is shown on the label in lieu of the actual place of production (paragraph (b)(1)(iii)), the brewer shall indicate the actual place of production by printing, coding or other markings on the label, bottle, crown or lid. The coding system employed will permit an appropriate TTB officer to determine the place of production (including street address if two or more breweries are located in the same city) of the beer. The brewer must notify the appropriate TTB officer prior to employing a coding system.
</P>
<P>(c) <I>Distinctive names.</I> If the brewer's name, trade name or brand name includes the name of a city which is not the place where the beer was produced, the appropriate TTB officer may require the brewer to state the actual place of production on the label.
</P>
<P>(d) <I>Tolerances.</I> The statement of net contents shall indicate exactly the volume of beer within the bottle except for variations in measuring as may occur in filling conducted in compliance with good commercial practice. The barrel equivalent of bottles filled during a consecutive three month period, calculated on the basis of the brewer's fill test records, may not vary more than 0.5 percent from the barrel equivalent of bottles filled during the same period, calculated on the basis of the stated net contents of the bottles. The brewer is liable for the tax on the entire amount of beer removed, without benefit of tolerance, when the fill of bottles and cans exceeds the tolerance for the three month period, or when filling is not conducted in compliance with good commercial practice.
</P>
<P>(e) <I>Label approval required.</I> Labels used by brewers shall be covered by certificates of label approval, Form 5100.31, when required by part 7 of this chapter.
</P>
<P>(f) <I>Short-fill bottles.</I> A brewer may dispose of taxpaid short-fill bottles of beer to employees for their use but not for resale. These bottles need not be labeled, but if labeled they need not show an accurate statement of net contents.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0474)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-225, 51 FR 8492, Mar. 12, 1986; T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.143" NODE="27:1.0.1.1.20.10.384.3" TYPE="SECTION">
<HEAD>§ 25.143   Cases.</HEAD>
<P>(a) <I>Brewer's name.</I> The brewer's name or trade name will be shown on each case or other shipping container of bottled beer. A brewer may use unmarked cases to hold:
</P>
<P>(1) Cartons of beer, if the visible portion of the cartons shows the required name; or
</P>
<P>(2) Bottles or cans with plastic carriers, if the visible portion of the bottles or cans shows the required name.
</P>
<P>(b) <I>Other information.</I> The brewer may show on a case or shipping container the place of production (city and, when necessary for identification, State), and the addresses of other breweries owned by the same person, firm, or corporation (as defined in § 25.181). If only one address is shown, it will be that of the producing brewery, or of the brewer's principal place of business.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0474)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-225, 51 FR 8492, Mar. 12, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 25.144" NODE="27:1.0.1.1.20.10.384.4" TYPE="SECTION">
<HEAD>§ 25.144   Rebranding barrels and kegs.</HEAD>
<P>(a) A brewer may not use a barrel or keg which bears the name of more than one brewer, and except as provided in § 25.231, may not use a barrel or keg bearing the name of a brewer other than the producing brewer.
</P>
<P>(b) A brewer who purchases or otherwise obtains barrels or kegs from another brewer shall permanently remove or durably cover the original marks and brands after notifying the appropriate TTB officer of the proposed action. A brewer may use the barrels or kegs obtained without removing or covering the original marks and brands if the brewer: 
</P>
<P>(1) Adopts a trade name substantially identical to the name appearing on the barrels or kegs; or 
</P>
<P>(2) Succeeds to a brewer who has discontinued business, in which case the brewer may add marks or brands, in accordance with § 25.141, which indicate ownership.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.145" NODE="27:1.0.1.1.20.10.384.5" TYPE="SECTION">
<HEAD>§ 25.145   Tanks, vehicles, and vessels.</HEAD>
<P>(a) Each brewer who transfers beer to another brewery of the same ownership (as defined in § 25.181), or who exports beer without payment of tax, as provided in § 25.203, shall plainly and durably mark each tank, tank car, tank truck, tank ship, barge, or deep tank of a vessel in accordance with paragraph (b) of this section. These marks may be placed on a label securely affixed to the route board of the container.
</P>
<P>(b) The brewer shall mark each container with—
</P>
<P>(1) The designation “Beer”;
</P>
<P>(2) The brewer's name;
</P>
<P>(3) The address of the brewery from which removed;
</P>
<P>(4) The address of the brewery to which transferred or the marks required for exportation in part 28 of this chapter, as applicable;
</P>
<P>(5) The date of shipment; and
</P>
<P>(6) The quantity, expressed in barrels.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1389, as amended (26 U.S.C. 5053, 5414))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.20.11" TYPE="SUBPART">
<HEAD>Subpart K—Tax on Beer</HEAD>


<DIV7 N="384" NODE="27:1.0.1.1.20.11.384" TYPE="SUBJGRP">
<HEAD>Liability for Tax</HEAD>


<DIV8 N="§ 25.151" NODE="27:1.0.1.1.20.11.384.1" TYPE="SECTION">
<HEAD>§ 25.151   Rate of tax.</HEAD>
<P>All beer, brewed or produced, and removed for consumption or sale, is subject to the tax prescribed by 26 U.S.C. 5051, for every barrel containing not more than 31 gallons, and at a like rate for any other quantity or for the fractional parts of a barrel as authorized in § 25.156.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051, 5052))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.152" NODE="27:1.0.1.1.20.11.384.2" TYPE="SECTION">
<HEAD>§ 25.152   Reduced rate of tax for certain brewers.</HEAD>
<P>(a) <I>General.</I> Section 5051(a)(2) of Title 26 U.S.C. provides for a reduced rate of tax on the first 60,000 barrels of beer removed for consumption or sale by a brewer during a calendar year. To be eligible to pay the reduced rate of tax, a brewer:
</P>
<P>(1) Shall brew or produce the beer at a qualified brewery in the United States;
</P>
<P>(2) May not produce more than 2,000,000 barrels of beer per calendar year; and
</P>
<P>(3) May not be a member of a “controlled group” of brewers whose members together produce more than 2,000,000 barrels of beer per calendar year.
</P>
<FP>The appropriate TTB officer shall deny use of the reduced rate of tax provided by 26 U.S.C. 5051(a)(2) where it is determined that the allowance of such a reduced rate would benefit a person who would otherwise fail to qualify for use of such rate.
</FP>
<P>(b) <I>Definitions.</I> For the purpose of determining eligibility for payment of the reduced rate of tax on beer, terms have the following meanings:
</P>
<P>(1) <I>Controlled group.</I> A related group of brewers as defined in 26 U.S.C. 5051(a)(2)(B). Controlled groups include, but are not limited to:
</P>
<P>(i) Parent-subsidiary controlled groups as defined in 26 CFR 1.1563-1(a)(2);
</P>
<P>(ii) Brother-sister controlled groups as defined in 26 CFR 1.1563-1(a)(3); and
</P>
<P>(iii) Combined groups as defined in 26 CFR 1.1563-1(a)(4). Stock ownership in a corporation need not be direct and 51% constructive ownership, defined in 26 CFR 1.1563-3, may be acquired through:
</P>
<P>(A) An option to purchase stock;
</P>
<P>(B) Attribution from partnerships;
</P>
<P>(C) Attribution from estate or trusts;
</P>
<P>(D) Attribution from corporations; or
</P>
<P>(E) Ownership by spouses, children, grandchildren, parents, and grandparents.
</P>
<P>(2) <I>Production of beer.</I> The production of beer as recorded in the brewer's daily records and reported in the Brewer's Report of Operations, Form 5130.9. For the purpose of determining compliance with the 2,000,000 barrel limitation, production of beer by a brewer or a controlled group of brewers includes both beer produced at qualified breweries within the United States and beer produced outside the United States.
</P>
<P>(c) <I>Brewers operating more than one brewery.</I> Brewers who operate more than one brewery shall include the combined production of beer at all their breweries when determining eligibility under the 2,000,000 barrel limitation. The reduced rate of tax applies to the first 60,000 barrels of beer removed for consumption or sale in a calendar year by the brewer; the brewer shall apportion the 60,000 barrels among the breweries in the manner described in the notice as provided by § 25.167(b)(3).
</P>
<P>(d) <I>Controlled groups of brewers.</I> Members of a controlled group of brewers shall include the combined production of beer by all member brewers when determining eligibility under the 2,000,000 limitation. The reduced rate of tax applies to the first 60,000 barrels of beer removed for consumption or sale in a calendar year by the controlled group of brewers; the controlled group of brewers shall apportion the 60,000 barrels among member brewers in the manner described in each brewer's notice as provided by § 25.167(b)(3).
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5052))
</SECAUTH>
<CITA TYPE="N">[T.D. ATD-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-307, 55 FR 52738, Dec. 21, 1990; T.D. ATF-345, 58 FR 40357, July 28, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 25.153" NODE="27:1.0.1.1.20.11.384.3" TYPE="SECTION">
<HEAD>§ 25.153   Persons liable for tax.</HEAD>
<P>The tax imposed by law on beer (including beer purchased or procured by one brewer from another) shall be paid by the brewer of the beer at the brewery where produced. The tax on beer transferred to a brewery from other breweries owned by the same brewer in accordance with subpart L of this part shall be paid by the brewer at the brewery from which the beer is removed for consumption or sale.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1389, as amended (26 U.S.C. 5054, 5413, 5414))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="385" NODE="27:1.0.1.1.20.11.385" TYPE="SUBJGRP">
<HEAD>Determination of Tax</HEAD>


<DIV8 N="§ 25.155" NODE="27:1.0.1.1.20.11.385.4" TYPE="SECTION">
<HEAD>§ 25.155   Types of containers.</HEAD>
<P>Beer may be removed from a brewery for consumption or sale only in barrels, kegs, bottles, and similar containers, as provided in this part. A container which the appropriate TTB officer determines to be similar to a bottle or can will be treated as a bottle for purposes of this part. A container which the appropriate TTB officer determines to be similar to a barrel or keg and which conforms to one of the sizes prescribed for barrels or kegs in § 25.156 will be treated as such for purposes of this part.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended, 1390, as amended (26 U.S.C. 5412, 5416))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.156" NODE="27:1.0.1.1.20.11.385.5" TYPE="SECTION">
<HEAD>§ 25.156   Determination of tax on keg beer.</HEAD>
<P>(a) In determining the tax on beer removed in kegs, a barrel is regarded as a quantity of not more than 31 gallons. The authorized fractional parts of a barrel are whole barrels, halves, thirds, quarters, sixths, and eighths, and beer may be removed in kegs rated at those capacities. The following keg sizes are also authorized at the stated barrel equivalents:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Size of keg
</TH><TH class="gpotbl_colhed" scope="col">Barrel equivalent
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5 gallons</TD><TD align="right" class="gpotbl_cell">0.16129
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">30 liter</TD><TD align="right" class="gpotbl_cell">0.25565
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">50 liter</TD><TD align="right" class="gpotbl_cell">0.42608</TD></TR></TABLE></DIV></DIV>
<P>(b) If any barrel or authorized size keg contains a quantity of beer more than 2 percent in excess of its rated capacity, tax will be determined and paid on the actual quantity of beer (without benefit of any tolerance) contained in the keg.
</P>
<P>(c) The quantities of keg beer removed subject to tax will be computed to 5 decimal places. The sum of the quantities computed for any one day will be rounded to 2 decimal places and the tax will be calculated and paid on the rounded sum.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5051)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-345, 58 FR 40357, July 28, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 25.157" NODE="27:1.0.1.1.20.11.385.6" TYPE="SECTION">
<HEAD>§ 25.157   Determination of tax on bottled beer.</HEAD>
<P>The quantities of bottled beer removed subject to tax shall be computed to 5 decimal places in accordance with the table and instructions in § 25.158. The sum of the quantities computed for any one day will be rounded to 2 decimal places and the tax will be calculated and paid on the rounded sum.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.158" NODE="27:1.0.1.1.20.11.385.7" TYPE="SECTION">
<HEAD>§ 25.158   Tax computation for bottled beer.</HEAD>
<P>Barrel equivalents for various case sizes are as follows:
</P>
<P>(a) <I>For U.S. measure bottles.</I> 
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Bottle size (net contents in fluid ounces)
</TH><TH class="gpotbl_colhed" scope="col">Number of bottles per case
</TH><TH class="gpotbl_colhed" scope="col">Barrel equivalent
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">6</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.01815
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">6</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.03629
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.02117
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.04234
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7</TD><TD align="right" class="gpotbl_cell">32</TD><TD align="right" class="gpotbl_cell">0.05645
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7</TD><TD align="right" class="gpotbl_cell">35</TD><TD align="right" class="gpotbl_cell">0.06174
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7</TD><TD align="right" class="gpotbl_cell">36</TD><TD align="right" class="gpotbl_cell">0.06351
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7</TD><TD align="right" class="gpotbl_cell">40</TD><TD align="right" class="gpotbl_cell">0.07056
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">7</TD><TD align="right" class="gpotbl_cell">48</TD><TD align="right" class="gpotbl_cell">0.08468
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">8</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.02419
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">8</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.04839
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">8</TD><TD align="right" class="gpotbl_cell">36</TD><TD align="right" class="gpotbl_cell">0.07258
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">8</TD><TD align="right" class="gpotbl_cell">48</TD><TD align="right" class="gpotbl_cell">0.09677
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">10</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.03024
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">10</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.06048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">10</TD><TD align="right" class="gpotbl_cell">48</TD><TD align="right" class="gpotbl_cell">0.12097
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">11</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.03327
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">11</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.06653
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">11.5</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.06956
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">12</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.03629
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">12</TD><TD align="right" class="gpotbl_cell">15</TD><TD align="right" class="gpotbl_cell">0.04536
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">12</TD><TD align="right" class="gpotbl_cell">20</TD><TD align="right" class="gpotbl_cell">0.06048
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">12</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.07258
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">12</TD><TD align="right" class="gpotbl_cell">30</TD><TD align="right" class="gpotbl_cell">0.09073
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">12</TD><TD align="right" class="gpotbl_cell">48</TD><TD align="right" class="gpotbl_cell">0.14516
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">12</TD><TD align="right" class="gpotbl_cell">50</TD><TD align="right" class="gpotbl_cell">0.15121
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">14</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.04234 
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">14</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.08468
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">16 (1 pint)</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.04839
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">16 (1 pint)</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.09677
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">22</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.06653
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">22</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.13306
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">24</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.07258
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">24</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.14516
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">30</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.09073
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">32 (1 quart)</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.09677
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">40</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.12097
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">64</TD><TD align="right" class="gpotbl_cell">1</TD><TD align="right" class="gpotbl_cell">0.01613
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">64</TD><TD align="right" class="gpotbl_cell">4</TD><TD align="right" class="gpotbl_cell">0.06452
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">64</TD><TD align="right" class="gpotbl_cell">6</TD><TD align="right" class="gpotbl_cell">0.09677
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">128 (1 gallon)</TD><TD align="right" class="gpotbl_cell">1</TD><TD align="right" class="gpotbl_cell">0.03226
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">288</TD><TD align="right" class="gpotbl_cell">1</TD><TD align="right" class="gpotbl_cell">0.07258</TD></TR></TABLE></DIV></DIV>
<P>(b) <I>For metric measure bottles.</I>
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Bottle size (metric net contents)
</TH><TH class="gpotbl_colhed" scope="col">Number of bottles per case
</TH><TH class="gpotbl_colhed" scope="col">Barrel equivalent
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">500 milliliters</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">0.10226
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">750 milliliters</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.07670
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1 liter</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">0.10226
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">2 liters</TD><TD align="right" class="gpotbl_cell">6</TD><TD align="right" class="gpotbl_cell">0.10226
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5 liters</TD><TD align="right" class="gpotbl_cell">1</TD><TD align="right" class="gpotbl_cell">0.04261</TD></TR></TABLE></DIV></DIV>
<P>(c) <I>For other case sizes.</I> If beer is to be removed in cases or bottles of sizes other than those listed in the above tables, the brewer shall notify the appropriate TTB officer in advance and request to be advised of the fractional barrel equivalent applicable to the proposed case size.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5412)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-345, 58 FR 40357, July 28, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 25.159" NODE="27:1.0.1.1.20.11.385.8" TYPE="SECTION">
<HEAD>§ 25.159   Time of tax determination and payment; offsets.</HEAD>
<P>(a) <I>Time and payment.</I> The tax on beer will be determined at the time of its removal for consumption or sale, and will be paid by return as provided in this part.
</P>
<P>(b) <I>Offsets.</I> During any business day, the quantity of beer returned to the same brewery from which removed is to be taken as an offset against or deducted from the total quantity of beer removed for consumption or sale from that brewery on the day that the beer is returned.
</P>
<P>(c) <I>Offsets not allowed.</I> An offset or deduction for returned beer will not be allowed if:
</P>
<P>(1) The brewer was indemnified by insurance or otherwise in respect of the tax; or
</P>
<P>(2) The brewer does not issue credit to the customer for the tax on the returned beer within 30 days of the return of the beer. If the tax is not timely credited after the offset or deduction is taken, the brewer shall make an increasing adjustment on the next tax return.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended (26 U.S.C. 5054, 5056, 5061))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.160" NODE="27:1.0.1.1.20.11.385.9" TYPE="SECTION">
<HEAD>§ 25.160   Tax adjustment for brewers who produce more than 2,000,000 barrels of beer.</HEAD>
<P>Each brewer who has paid tax on beer by return, Form 5000.24, at the reduced rate of tax during a calendar year, but whose production (or the production of a controlled group of brewers of which the brewer is a member) exceeds 2,000.000 barrels of beer in that calendar year, is no longer eligible to pay tax on beer at the reduced rate of tax for any beer removed that calendar year for consumption or sale. The brewer shall make a tax adjustment for the payment of additional tax no later than the return period in which production (or the production of a controlled group of brewers of which the brewer is a member) exceeds 2,000,000 barrels of beer. The adjustment will be determined by multiplying the difference between the higher and lower rates of tax applicable to beer by the number of barrels removed by the brewer that year at the reduced rate of tax. The brewer shall make tax adjustments for all breweries where tax was paid at the lower rate that year, and shall include interest payable from the date on which tax was paid at the lower rate. In the case of a controlled group of brewers whose production exceeds 2,000,000 barrels of beer, all member brewers who paid tax at the lower rate shall make tax adjustments as determined in this section.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="386" NODE="27:1.0.1.1.20.11.386" TYPE="SUBJGRP">
<HEAD>Preparation and Remittance of Tax Returns</HEAD>


<DIV8 N="§ 25.163" NODE="27:1.0.1.1.20.11.386.10" TYPE="SECTION">
<HEAD>§ 25.163   Method of tax payment.</HEAD>
<P>A brewer shall pay the tax on beer by return on TTB F 5000.24, as provided in §§ 25.164, 25.164a, 25.173, and 25.175. In paying the tax, a fractional part of a cent will be disregarded unless it amounts to one-half cent or more, in which case it will be increased to one cent.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-365, 60 FR 33669, June 28, 1995; T.D. TTB-89, 76 FR 3511, Jan. 20, 2011; T.D. TTB-94, 76 FR 52862, Aug. 24, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 25.164" NODE="27:1.0.1.1.20.11.386.11" TYPE="SECTION">
<HEAD>§ 25.164   Deferred payment return periods—annual, quarterly, and semimonthly.</HEAD>
<P>(a) <I>Requirement for filing.</I> This section governs payment of tax on a deferred basis. Each brewer must pay the tax on beer (unless prepaid) by return on Form 5000.24. The brewer must file Form 5000.24 as a return regardless of whether tax has been prepaid as provided in § 25.175 during the return period. The brewer must file a return on Form 5000.24 for each return period even though no beer was removed for consumption or sale.
</P>
<P>(b) <I>Payment of tax.</I> The brewer must include for payment with the return the full amount of tax required to be determined (and which has not been prepaid) on all beer removed for consumption or sale during the period covered by the return.
</P>
<P>(c) <I>Return periods</I>—(1) <I>Semimonthly return period.</I> Except in the case of a taxpayer who qualifies for annual or quarterly return periods as provided in paragraphs (c)(2) or (c)(3) of this section, all taxpayers must use semimonthly return periods for deferred payment of tax. The semimonthly return periods run from the brewer's business day beginning on the first day of each month through the brewer's business day beginning on the 15th day of that month, and from the brewer's business day beginning on the 16th day of the month through the brewer's business day beginning on the last day of the month, except as otherwise provided in § 25.164a.
</P>
<P>(2) <I>Annual return period.</I> Subject to paragraph (b)(4) of this section, a taxpayer who reasonably expects to be liable for not more than $1,000 in taxes with respect to beer imposed by 26 U.S.C. 5051 and 7652 in the current calendar year, and that was liable for not more than $1,000 in such taxes in the preceding calendar year, may choose to use an annual return period. However, the taxpayer may not use the annual return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $1,000, and any tax which has not been paid on that date will be due on the 14th day after the last day of the quarterly or semimonthly period in which that date occurs.
</P>
<P>(3) <I>Quarterly return period.</I> A taxpayer may choose to use a quarterly return period if the taxpayer was not liable for more than $50,000 in taxes with respect to beer imposed by 26 U.S.C. 5051 and 7652 in the preceding calendar year and if that taxpayer reasonably expects to be liable for not more than $50,000 in such taxes during the current calendar year. In such a case the last day for paying the tax and filing the return will be the 14th day after the last day of the calendar quarter. However, the taxpayer may not use the quarterly return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $50,000, and any tax that has not been paid on that date will be due on the 14th day after the last day of the semimonthly period in which that date occurs.
</P>
<P>(4) <I>Additional rules for annual and quarterly return periods.</I> The following additional rules apply to the annual and quarterly return period procedure under this section:
</P>
<P>(i) A “taxpayer” is an individual, corporation, partnership, or other entity that is assigned a single Employer Identification Number as defined in 26 CFR 301.7701-12;
</P>
<P>(ii) “Reasonably expects” means that there is no existing or anticipated circumstance known to the taxpayer (such as an increase in production capacity) that would cause the taxpayer's tax liability to exceed the prescribed limit;
</P>
<P>(iii) A taxpayer with multiple locations must combine the beer tax liability for all locations to determine eligibility for the return procedures;
</P>
<P>(iv) A taxpayer who has both domestic operations and import transactions must combine the beer tax liability on the domestic operations and the imports to determine eligibility for the return procedures;
</P>
<P>(v) The controlled group rules of 26 U.S.C. 5061(e), which concern treatment of controlled groups as one taxpayer, do not apply for purposes of determining eligibility for the return procedures. However, a taxpayer who is eligible for the return procedures, and who is a member of a controlled group that owes $5 million or more in beer excise taxes per year, is required to pay taxes by electronic fund transfer (EFT). Payments via EFT must be transmitted in accordance with section 5061(e);
</P>
<P>(vi) A new taxpayer is eligible to use the return procedures in the first year of business simply if the taxpayer reasonably expects to be liable for not more than $1,000 (in the case of the annual return procedure) or $50,000 (in the case of the quarterly return procedure) in beer taxes during that calendar year; and
</P>
<P>(vii) If a taxpayer becomes ineligible to use a return procedure prescribed in paragraph (c)(2) or (c)(3) of this section because the taxpayer's liability exceeds $1,000 or $50,000, respectively, during a taxable year, that taxpayer may resume using that return procedure only after a full calendar year has passed during which the taxpayer's liability did not exceed $1,000 or $50,000, as the case may be. A taxpayer may not use an annual or quarterly return procedure during any calendar year in which the taxpayer reasonably expects to be liable for more than $1,000, in the case of the annual return procedure, or $50,000, in the case of the quarterly return procedure, in beer taxes.
</P>
<P>(d) <I>Time for filing returns and paying tax.</I> Except as otherwise provided in § 25.164a for semimonthly tax returns, the brewer must file the tax return, TTB F 5000.24, for each return period, and make remittance as required by this section, not later than the 14th day after the last day of the return period. If the due date falls on a Saturday, Sunday, or legal holiday, the return and remittance are due on the immediately preceding day that is not a Saturday, Sunday, or legal holiday, except as otherwise provided in § 25.164a(c).
</P>
<P>(e) <I>Timely filing.</I> (1) When the brewer sends the semimonthly, quarterly, or annual tax return, Form 5000.24, by U.S. mail, in accordance with the instructions on the form, as required by this section, with remittance as provided for in this section, or without remittance as provided for in § 25.165, the date of the official postmark of the United States Postal Service stamped on the cover in which the return and remittance were mailed is considered the date of delivery of the return and the date of delivery of the remittance, if enclosed with the return. When the postmark on the cover is illegible, the burden is on the brewer to prove when the postmark was made.
</P>
<P>(2) When the brewer sends the semimonthly, quarterly, or annual return with or without remittance by registered mail or by certified mail, the date of registry or the date of the postmark on the sender's receipt of certified mail will be treated as the date of delivery of the return and of the remittance, if enclosed with the return.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0083)
</APPRO>
<SECAUTH TYPE="N">(Aug. 16, 1954, ch. 736, 68A Stat. 775, as amended (26 U.S.C. 6302); sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1129, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.164a" NODE="27:1.0.1.1.20.11.386.12" TYPE="SECTION">
<HEAD>§ 25.164a   Special September rule for taxes due by semimonthly return.</HEAD>
<P>(a) <I>Division of second semimonthly period.</I> (1) <I>General.</I> Except as otherwise provided in paragraph (a)(2) of this section, the second semimonthly period for the month of September is divided into two payment periods, from the 16th day through the 26th day, and from the 27th day through the 30th day. The brewer shall file a return, TTB F 5000.24, and make remittance, for the period September 16-26, no later than September 29. The brewer shall file a return on TTB F 5000.24, and make remittance, for the period September 27-30, no later than October 14.
</P>
<P>(2) <I>Taxpayment not by electronic fund transfer.</I> In the case of taxes for which remittance by electronic fund transfer (EFT) is not required by § 25.165, the second semimonthly period of September is divided into two payment periods, from the 16th day through the 25th day, and from the 26th day through the 30th day. The brewer shall file a return on TTB F 5000.24, and make remittance, for the period September 16-25, no later than September 28. The brewer shall file a return on TTB F 5000.24, and make remittance, for the period September 26-30, no later than October 14.
</P>
<P>(b) <I>Amount of payment—Safe harbor rule.</I> (1) <I>General.</I> Taxpayers are considered to have met the requirements of paragraph (a)(1) of this section if the amount paid no later than September 29 is not less than 11/15ths (73.3 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(2) <I>Taxpayment not by EFT.</I> Taxpayers are considered to have met the requirements of paragraph (a)(2) of this section if the amount paid no later than September 28 is not less than 2/3rds (66.7 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(c) <I>Weekends and holidays.</I> If the required taxpayment due date for the period September 16-25 or September 16-26, as applicable, falls on a Saturday or legal holiday, the return and remittance are due on the immediately preceding day. If the required due date falls on a Sunday, the return and remittance are due on the immediately following day.
</P>
<P>(d) <I>Example: Payment of tax for the month of September.</I> (1) <I>Facts.</I> X, a brewer required to pay taxes by electronic fund transfer, incurred tax liability in the amount of $30,000 for the first semimonthly period of September. For the period September 16-26, X incurred tax liability in the amount of $45,000, and for the period September 27-30, X incurred tax liability in the amount of $2,000.
</P>
<P>(2) <I>Payment requirement.</I> X's payment of tax in the amount of $30,000 for the first semimonthly period of September is due no later than September 29 (§ 25.164(d)). X's payment of tax for the period September 16-26 is also due no later than September 29 (§ 25.164a(a)(1)). X may use the safe harbor rule to determine the amount of payment due for the period of September 16-26 (§ 25.164a(b)). Under the safe harbor rule, X's payment of tax must not be less than $21,990.00, that is, 11/15ths of the tax liability incurred during the first semimonthly period of September. Additionally, X must pay the tax in the amount of $2,000 for the period September 27-30 no later than October 14 (§ 25.164a(a)(1)). X must also pay the underpayment of tax, $23,010.00, for the period September 16-26, no later than October 14 (§ 25.164a(b)).
</P>
<CITA TYPE="N">[T.D. TTB-89, 76 FR 3512, Jan. 20, 2011, as amended by T.D. TTB-94, 76 FR 52862, Aug. 24, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 25.165" NODE="27:1.0.1.1.20.11.386.13" TYPE="SECTION">
<HEAD>§ 25.165   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) <I>Eligible brewers.</I> (1) Each taxpayer who was liable, during a calendar year, for a gross amount equal to or exceeding five million dollars in beer taxes combining tax liabilities incurred under this part and parts 26 and 27 of this chapter, shall use a commercial bank in making payment by electronic fund transfer (EFT) of beer taxes during the succeeding calendar year. Payment of beer taxes by cash, check, or money order, as described in § 25.163, is not authorized for a taxpayer who is required by this section to make remittances by EFT. For purposes of this section, the dollar amount of tax liability is defined as the gross tax liability on all taxable removals, determined in accordance with § 25.159, and importations (including beer brought into the United States from Puerto Rico or the Virgin Islands) during the calendar year, without regard to any drawbacks, credits, or refunds, for all premises from which such activities are conducted by the taxpayer. Overpayments are not taken into account in summarizing the gross tax liability.
</P>
<P>(2) For the purposes of this section, a taxpayer includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place it appears in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT.
</P>
<P>(3) A taxpayer who is required by this section to make remittances by EFT shall make a separate EFT remittance and file a separate return, Form 5000.24, for each brewery from which beer is removed upon determination of tax.
</P>
<P>(b) <I>Requirements.</I> (1) On or before January 10 of each calendar year, except for a taxpayer already remitting the tax by EFT, each taxpayer who was liable for a gross amount equal to or exceeding five million dollars in beer taxes combining tax liabilities incurred under this part and parts 26 and 27 of this chapter, during the previous calendar year, shall notify, in writing the appropriate TTB officer. The notice shall be an agreement to make remittances by EFT.
</P>
<P>(2) For each return filed in accordance with this part, the taxpayer shall direct the taxpayer's bank to make an electronic fund transfer in the amount of the taxpayment to the Treasury Account as provided in paragraph (e) of this section. The request shall be made to the bank early enough for the transfer to be made to the Treasury Account by no later than the close of business on the last day for filing the return, prescribed in §§ 25.164 or 25.175. The request shall take into account any time limit established by the bank.
</P>
<P>(3) If a taxpayer was liable for less than five million dollars in beer taxes during the preceding calendar year, combining tax liabilities incurred under this part and parts 26 and 27 of this chapter, the taxpayer may choose either to continue remitting the tax as provided in this section or to remit the tax with the return as prescribed by § 25.164. Upon filing the first return on which the taxpayer chooses to discontinue remitting the tax by EFT and to begin remitting the tax with the tax return, the taxpayer shall notify the appropriate TTB officer by attaching a written notification to Form 5000.24, stating that no taxes are due by EFT because the tax liability during the preceding calendar year was less than five million dollars, and that the remittance will be filed with the tax return.


</P>
<P>(c) <I>Remittance.</I> (1) Each taxpayer shall show on the return, Form 5000.24, information about remitting the tax for that return by EFT and shall file the return with TTB, in accordance with the instructions on Form 5000.24.
</P>
<P>(2) Remittances shall be considered as made when the taxpayment by electronic fund transfer is received by the Treasury Account. For purposes of this section, a taxpayment by electronic fund transfer shall be considered as received by the Treasury Account when it is paid to a Federal Reserve Bank.
</P>
<P>(3) When the taxpayer directs the bank to effect an electronic fund transfer message as required by paragraph (b)(2) of this section, any transfer data record furnished to the taxpayer, through normal banking procedures, will serve as the record of payment, and will be retained as part of required records.
</P>
<P>(d) <I>Failure to make a taxpayment by EFT.</I> The taxpayer is subject to a penalty imposed by 26 U.S.C. 5684, 6651, or 6656, as applicable, for failure to make a taxpayment by EFT on or before the close of business on the prescribed last day for filing.
</P>
<P>(e) <I>Procedure.</I> Upon the notification required under paragraph (b)(1) of this section, the appropriate TTB officer will issue to the taxpayer a TTB Procedure entitled “Payment of Tax by Electronic Fund Transfer.” This publication outlines the procedure a taxpayer is to follow when preparing returns and EFT remittances in accordance with this part. U.S. Customs and Border Protection (CBP) will provide the taxpayer with instructions for preparing EFT remittances for payments to be made to CBP.
</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-245, 52 FR 532, Jan. 7, 1987; T.D. ATF-251, 52 FR 19314, May 22, 1987; T.D. ATF-262, 52 FR 47560, Dec. 15, 1987; T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.166" NODE="27:1.0.1.1.20.11.386.14" TYPE="SECTION">
<HEAD>§ 25.166   Payment of reduced rate of tax.</HEAD>
<P>(a) <I>By return, Form 5000.24.</I> A brewer who is eligible to pay the reduced rate of tax on beer may, upon filing the notice required by § 25.167, pay the reduced rate of tax on beer by return for deferred payment of tax as provided in § 25.164 or by prepayment return as provided in § 25.175. Payment of reduced rate of tax on beer by return, Form 5000.24, may commence with any tax return filed during a calendar year and will continue until the brewer has taxpaid 60,000 barrels of beer at the lower rate of tax, or taxpaid the number of barrels of beer apportioned under § 25.167(b)(3) for that calendar year.
</P>
<P>(b) <I>By claim for refund of tax.</I> A brewer, eligible to pay the reduced rate of tax on beer during a calendar year, but who has not paid the reduced rate of tax by return during that year, may file a claim using form TTB F 5620.8, for refund of tax excessively paid on beer during that year. Claims for refund of tax will be filed as provided in § 25.285.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19313, May 22, 1987; T.D. TTB-41, 71 FR 5604, Feb. 2, 2006; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.167" NODE="27:1.0.1.1.20.11.386.15" TYPE="SECTION">
<HEAD>§ 25.167   Notice of brewer to pay reduced rate of tax.</HEAD>
<P>(a) <I>Requirement to file notice.</I> Every brewer who desires to pay the reduced rate of tax on beer authorized by 26 U.S.C. 5051(a)(2) by tax return, Form 5000.24, shall prepare a notice containing the information required by paragraph (b) of this section. The brewer shall file this notice with the appropriate TTB officer for the first return period (or prepayment return) during which the brewer pays tax on beer at the reduced rate. The brewer shall file the notice each year in which payment of the reduced rate of tax on beer is made by return.
</P>
<P>(b) <I>Information to be furnished.</I> Each notice described in paragraph (a) of this section will contain the following information:
</P>
<P>(1) A statement that the brewer will not or is not likely to produce more than 2,000,000 barrels of beer in the calendar year for which the notice is filed.
</P>
<P>(2) A statement that the brewer is not a member of a controlled group of brewers, or if the brewer is a member of a controlled group of brewers, a statement that the controlled group will not or is not likely to produce more than 2,000,000 barrels of beer in the calendar year for which the notice is filed.
</P>
<P>(3) If the brewer operates more than one brewery, a statement of the locations of all the breweries and a statement of how the 60,000 barrel limitation for the reduced rate of tax will be apportioned among the breweries. If the brewer is a member of a controlled group of brewers, a statement of the names and locations of all other brewers in the group and a statement of how the 60,000 barrels limitation will be apportioned among the brewers in the group.
</P>
<P>(c) <I>Perjury statement.</I> Each notice described in this section will be executed by the brewer under penalties of perjury as defined in § 25.11.
</P>
<SECAUTH TYPE="N">(Act of Aug. 16, 1954, 68A Stat. 749, as amended (26 U.S.C. 6065); sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1395, as amended (26 U.S.C. 5415, 5555))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.168" NODE="27:1.0.1.1.20.11.386.16" TYPE="SECTION">
<HEAD>§ 25.168   Employer identification number.</HEAD>
<P>The employer identification number (defined at 26 CFR 301.7701-12) of the taxpayer who has been assigned the number will be shown on each return on Form 5000.24, filed under this part. Failure of the taxpayer to include the employer identification number on Form 5000.24 may result in imposition of the penalty specified in § 70.113 of this chapter. A brewer shall apply for an employer identification number on IRS Form SS-4 as provided in § 25.169.
</P>
<SECAUTH TYPE="N">(Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109, 6676))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-301, 55 FR 47605, Nov. 14, 1990; T.D. TTB-79, 74 FR 37405, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 25.169" NODE="27:1.0.1.1.20.11.386.17" TYPE="SECTION">
<HEAD>§ 25.169   Application for employer identification number.</HEAD>
<P>(a) <I>Form SS-4.</I> The taxpayer must obtain an employer identification number (EIN) by filing an application with the Internal Revenue Service (IRS) on IRS Form SS-4. Form SS-4 is available from the local IRS Service Center, from the IRS District Director, the IRS Web site at <I>https://www.irs.gov</I> or from TTB's National Revenue Center. The taxpayer may file this form with IRS by mail, telephone, or fax by following the instructions on the form.
</P>
<P>(b) <I>Time limit.</I> If the taxpayer has not already received, or applied for, an EIN at the time that the first return on TTB Form 5000.24, Excise Tax Return, is filed, the taxpayer must apply for an EIN not later than seven days from the date of filing the Form 5000.24.
</P>
<P>(c) <I>One EIN only.</I> Each taxpayer must obtain and use only one EIN, regardless of the number of places of business for which the proprietor is required to file a tax return under this subpart.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6109)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37405, July 28, 2009, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="387" NODE="27:1.0.1.1.20.11.387" TYPE="SUBJGRP">
<HEAD>Prepayment of Tax</HEAD>


<DIV8 N="§ 25.173" NODE="27:1.0.1.1.20.11.387.18" TYPE="SECTION">
<HEAD>§ 25.173   Brewer in default.</HEAD>
<P>(a) When a remittance in payment of taxes on beer is not paid upon presentment of check or money order tendered, or when the brewer is otherwise in default in payment of tax under § 25.164, beer may not be removed for consumption or sale or taken from the brewery for consumption or sale until the tax has been prepaid as provided in § 25.175. The brewer shall continue to prepay while in default and thereafter until the appropriate TTB officer finds the revenue will not be jeopardized by deferred payment of tax as provided in § 25.164.
</P>
<P>(b) Any remittance made while the brewer is required to prepay under this section will be in cash or in the form of a certified, cashier's or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States, or under the law of any State, Territory, or possession of the United States, or in the form of a money order as provided in § 70.61 of this chapter (payment by check or money order), or will be made in the form of an electronic fund transfer as provided by §§ 25.164 and 25.165.
</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19313, May 22, 1987; T.D. ATF-301, 55 FR 47605, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 25.174" NODE="27:1.0.1.1.20.11.387.19" TYPE="SECTION">
<HEAD>§ 25.174   Bond not sufficient.</HEAD>
<P>When a brewer has filed a bond and the penal sum of the brewer's bond is in less than the maximum amount, the brewer shall prepay the tax on any withdrawal which would cause the outstanding liability for tax to exceed the limits of coverage of the bond. Prepayments will be made in accordance with § 25.175.
</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1130, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.175" NODE="27:1.0.1.1.20.11.387.20" TYPE="SECTION">
<HEAD>§ 25.175   Prepayment of tax.</HEAD>
<P>(a) <I>General.</I> When a brewer has filed a bond and a brewer is required to prepay tax under § 25.173, or if the penal sum of the bond, Form 5130.22, is insufficient for deferral of payment of tax on beer to be removed for consumption or sale, or if a brewer is not entitled to defer the tax under the provisions of this subpart, the brewer shall prepay the tax before any beer is removed for consumption or sale, or taken out of the brewery for removal for consumption or sale.
</P>
<P>(b) <I>Method of prepayment.</I> (1) Prepayment will be made by forwarding a tax return, Form 5000.24, with remittance, covering the tax on beer.
</P>
<P>(2) If a brewer is required by § 25.165 to make payment of tax by electronic fund transfer, the brewer shall prepay the tax before any beer can be removed for consumption or sale by completing the return and by forwarding it, in accordance with the instructions on the form. At the same time, the brewer shall direct his or her bank to make remittance by EFT.
</P>
<P>(3) For the purpose of complying with this section, the term <I>forwarding</I> means depositing in the U.S. mail, properly addressed in accordance with the instructions on the form.
</P>
<SECAUTH TYPE="N">(Act of Aug. 16, 1954, 68A Stat. 777, as amended (26 U.S.C. 6311); sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19313, May 22, 1987; T.D. TTB-146, 82 FR 1130, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="388" NODE="27:1.0.1.1.20.11.388" TYPE="SUBJGRP">
<HEAD>Failure To Pay Tax</HEAD>


<DIV8 N="§ 25.177" NODE="27:1.0.1.1.20.11.388.21" TYPE="SECTION">
<HEAD>§ 25.177   Evasion of or failure to pay tax; failure to file a tax return.</HEAD>
<P>Sections 5671, 5673, 5684, 6651, and 6656 of Title 26 United States Code provide penalties for evasion or failure to pay tax on beer or for failure to file a tax return.
</P>
<SECAUTH TYPE="N">(Act of Aug. 16, 1954, 68A Stat. 821, as amended, 826, as amended (26 U.S.C. 6651, 6656); sec. 201, Pub. L. 85-859, 72 Stat. 1408, 1410, as amended (26 U.S.C. 5671, 5673, 5684))


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.20.12" TYPE="SUBPART">
<HEAD>Subpart L—Removals Without Payment of Tax</HEAD>


<DIV7 N="389" NODE="27:1.0.1.1.20.12.389" TYPE="SUBJGRP">
<HEAD>Transfer to Another Brewery of Same Ownership</HEAD>


<DIV8 N="§ 25.181" NODE="27:1.0.1.1.20.12.389.1" TYPE="SECTION">
<HEAD>§ 25.181   Eligibility.</HEAD>
<P>A brewer may remove beer without payment of tax for transfer to any other brewery of the same ownership. These removals include a removal from a brewery owned by one corporation to a brewery owned by another corporation if (a) one corporation owns the controlling interest in the other corporation, or (b) the controlling interest in each corporation is owned by the same person. Beer removed under this section may, while in transit, be reconsigned to another brewery of the same ownership or be returned to the shipping brewery.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.182" NODE="27:1.0.1.1.20.12.389.2" TYPE="SECTION">
<HEAD>§ 25.182   Kinds of containers.</HEAD>
<P>A brewer may transfer beer without payment of tax from one brewery to another brewery belonging to the same brewer (a) in the brewer's packages or (b) in bulk containers, subject to limitations and conditions as may be imposed by the appropriate TTB officer. The brewer shall mark, brand or label containers as provided by subpart J of this part.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.183" NODE="27:1.0.1.1.20.12.389.3" TYPE="SECTION">
<HEAD>§ 25.183   Determination of quantity transferred.</HEAD>
<P>The shipping brewer shall determine the quantity of beer shipped at the time of removal from the consignor brewery, and the receiving brewer shall determine the quantity of beer received at the time of receipt at the consignee brewery. The brewer shall equip the consignor and consignee breweries with suitable measuring devices to allow accurate determination of the quantities of beer to be shipped and received in bulk conveyances.
</P>
<SECAUTH TYPE="N">(Sec 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.184" NODE="27:1.0.1.1.20.12.389.4" TYPE="SECTION">
<HEAD>§ 25.184   Losses in transit.</HEAD>
<P>(a) <I>Liability for losses.</I> The brewery to which beer is transferred is liable for the tax on beer lost in transit. If beer is reconsigned while in transit or returned to the shipping brewery, the brewery to which the beer is reconsigned or returned is liable for the tax on beer lost in transit.
</P>
<P>(b) <I>Losses allowable without claim.</I> If loss of beer being transferred does not exceed two percent of the quantity shipped, the brewer is not required to file a report of loss or a claim for allowance of the loss if there are no circumstances indicating that the beer, or any portion of the beer lost, was stolen or otherwise diverted to an unlawful purpose.
</P>
<P>(c) <I>Losses requiring claim.</I> If loss of beer during transit exceeds two percent of the quantity shipped, the brewer shall submit a claim under penalties of perjury for remission of the tax on the entire loss. The brewer shall prepare and submit the claim as provided in § 25.286.
</P>
<P>(d) <I>Losses requiring immediate report.</I> The brewer shall report to the appropriate TTB officer a loss by fire, theft, casualty or any other unusual loss as soon as it becomes known.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended 1389 (26 U.S.C. 5056, 5414))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. TTB-146, 82 FR 1130, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.185" NODE="27:1.0.1.1.20.12.389.5" TYPE="SECTION">
<HEAD>§ 25.185   Mingling.</HEAD>
<P>Beer transferred without payment of tax from one brewery to another brewery belonging to the same brewer may be mingled with beer of the receiving brewery. The brewer may handle the beer transferred in accordance with the requirements of this part relating to beer produced in the receiving brewery.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.186" NODE="27:1.0.1.1.20.12.389.6" TYPE="SECTION">
<HEAD>§ 25.186   Record of beer transferred.</HEAD>
<P>(a) <I>Preparation of invoice.</I> When beer is transferred between breweries without payment of tax, the shipping brewer shall prepare a serially numbered invoice or commercial record, in duplicate, covering the transfer. The invoice will be marked “transfer without payment of tax” and will contain the following information:
</P>
<P>(1) Name and address of shipping brewer;
</P>
<P>(2) Date of shipment;
</P>
<P>(3) Name and address of receiving brewer;
</P>
<P>(4) For cases, the number and size of cases and the total barrels;
</P>
<P>(5) For kegs, the number and size of kegs and the total barrels;
</P>
<P>(6) For shipments in bulk containers, the type of container, identity of the container and the total barrels.
</P>
<P>(b) <I>Reconsignment of beer.</I> When beer is reconsigned in transit to another brewery of the same ownership, the shipping brewer shall (1) prepare a new invoice showing reconsignment to another brewery and shall void all copies of the original invoice, or (2) shall mark all copies of the original invoice with the words “Reconsigned to ______,” followed by the name and address of the brewery to which the beer is reconsigned.
</P>
<P>(c) <I>Disposition of invoice.</I> On shipment of the beer, the shipping brewer shall send the original copy of the invoice to the receiving brewer, and shall retain the other copy for the brewery records. On receipt of the beer, the receiving brewer (including a brewer to whom beer was returned or reconsigned in transit) shall note on the invoice any discrepancies in the beer received, and retain the invoice in the brewery records.
</P>
<P>(d) <I>Preparation of records and report.</I> The shipping brewer shall use the invoice showing beer removed to another brewery without payment of tax in preparing daily records under § 25.292 and in preparing the Brewer's Report of Operations, Form 5130.9. The receiving brewer (including a brewer to whom beer was returned or reconsigned in transit) shall use the invoice showing beer received from another brewery without payment of tax in preparing daily records under § 25.292 and in preparing the Brewer's Report of Operations, Form 5130.9.
</P>
<SECAUTH TYPE="N">(Sec. 201. Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="390" NODE="27:1.0.1.1.20.12.390" TYPE="SUBJGRP">
<HEAD>Removal of Beer Unfit for Beverage Use</HEAD>


<DIV8 N="§ 25.191" NODE="27:1.0.1.1.20.12.390.7" TYPE="SECTION">
<HEAD>§ 25.191   General.</HEAD>
<P>A brewer may remove sour or damaged beer, or beer which the brewer has deliberately rendered unfit for beverage use, from the brewery without payment of tax for use in manufacturing. Unfit beer may be removed under this section for use as distilling material at alcohol fuel plants qualified under subpart X of part 19 of this chapter.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))


</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 25.192" NODE="27:1.0.1.1.20.12.390.8" TYPE="SECTION">
<HEAD>§ 25.192   Removal of sour or damaged beer.</HEAD>
<P>(a) <I>Containers.</I> The brewer shall remove sour or damaged beer (1) in casks or other packages, containing not less than one barrel each and unlike those ordinarily used for packaging beer, or (2) in tanks, tank cars, tank trucks, tank ships, barges, or deep tanks of a vessel. The brewer shall mark the nature of the contents on each container.
</P>
<P>(b) <I>Beer meter.</I> The brewer shall remove sour or damaged beer without passing it through the meter (if any) or racking machine.
</P>
<P>(c) <I>Records and reports.</I> The brewer shall record the removal of sour or damaged beer in daily records under § 25.292 and on the Brewer's Report of Operations, Form 5130.9.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5033))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="391" NODE="27:1.0.1.1.20.12.391" TYPE="SUBJGRP">
<HEAD>Removals for Analysis, Research, Development or Testing</HEAD>


<DIV8 N="§ 25.195" NODE="27:1.0.1.1.20.12.391.9" TYPE="SECTION">
<HEAD>§ 25.195   Removals for analysis.</HEAD>
<P>A brewer may remove beer, without payment of tax, to a laboratory for analysis to determine the character or quality of the product. Beer may be removed for analysis in packages or in bulk containers. The brewer shall record beer removed for analysis in daily records under § 25.292 and on the Brewer's Report of Operations, Form 5130.9.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 25.196" NODE="27:1.0.1.1.20.12.391.10" TYPE="SECTION">
<HEAD>§ 25.196   Removals for research, development or testing.</HEAD>
<P>(a) A brewer may remove beer, without payment of tax, for use in research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials, or equipment relating to beer or brewery operations. Beer may be removed for research, development or testing in packages or in bulk containers.
</P>
<P>(b) The brewer shall mark each barrel, keg, case, or shipping container with the name and address of the brewer and of the consignee, the identity of the product, and the quantity of the product. If necessary to protect the revenue, the appropriate TTB officer may require a brewer to mark each container with the words “Not for Consumption or Sale.” If beer is removed in a bulk conveyance, the brewer shall place the marks on the route board of the conveyance.
</P>
<P>(c) The brewer shall record beer removed for research, development, or testing in daily records under § 25.292 and on the Brewer's Report of Operations, Form 5130.9.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="392" NODE="27:1.0.1.1.20.12.392" TYPE="SUBJGRP">
<HEAD>Removal of Beer to a Contiguous Distilled Spirits Plant</HEAD>


<DIV8 N="§ 25.201" NODE="27:1.0.1.1.20.12.392.11" TYPE="SECTION">
<HEAD>§ 25.201   Removal by pipeline.</HEAD>
<P>A brewer may remove beer from the brewery, without payment of tax, by pipeline to the bonded premises of a distilled spirits plant which is authorized to produce distilled spirits and which is located contiguous to the brewery.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1365, as amended, 1389, as amended (26 U.S.C. 5222, 5412))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="393" NODE="27:1.0.1.1.20.12.393" TYPE="SUBJGRP">
<HEAD>Exportation</HEAD>


<DIV8 N="§ 25.203" NODE="27:1.0.1.1.20.12.393.12" TYPE="SECTION">
<HEAD>§ 25.203   Exportation without payment of tax.</HEAD>
<P>A brewer may remove beer without payment of tax (a) for exportation, (b) for use as supplies on vessels and aircraft, or (c) for transfer to and deposit in foreign-trade zones for exportation or for storage pending exportation, in accordance with part 28 of this chapter. Beer may be removed from a brewery in bottles, kegs, or in bulk containers.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="394" NODE="27:1.0.1.1.20.12.394" TYPE="SUBJGRP">
<HEAD>Beer For Personal or Family Use</HEAD>


<DIV8 N="§ 25.205" NODE="27:1.0.1.1.20.12.394.13" TYPE="SECTION">
<HEAD>§ 25.205   Production.</HEAD>
<P>(a) Any adult may produce beer, without payment of tax, for personal or family use and not for sale. An adult is any individual who is 18 years of age or older. If the locality in which the household is located requires a greater minimum age for the sale of beer to individuals, the adult shall be that age before commencing the production of beer. This exemption does not authorize the production of beer for use contrary to State or local law.
</P>
<P>(b) The production of beer per household, without payment of tax, for personal or family use may not exceed:
</P>
<P>(1) 200 gallons per calendar year if there are two or more adults residing in the household, or
</P>
<P>(2) 100 gallons per calendar year if there is only one adult residing in the household.
</P>
<P>(c) Partnerships except as provided in § 25.207, corporations or associations may not produce beer, without payment of tax, for personal or family use.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.206" NODE="27:1.0.1.1.20.12.394.14" TYPE="SECTION">
<HEAD>§ 25.206   Removal of beer.</HEAD>
<P>Beer made under § 25.205 may be removed from the premises where made for personal or family use including use at organized affairs, exhibitions or competitions such as homemaker's contests, tastings or judging. Beer removed under this section may not be sold or offered for sale.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.207" NODE="27:1.0.1.1.20.12.394.15" TYPE="SECTION">
<HEAD>§ 25.207   Removal from brewery for personal or family use.</HEAD>
<P>Any adult, as defined in § 25.205, who operates a brewery under this part as an individual owner or in partnership with others, may remove beer from the brewery without payment of tax for personal or family use. The amount of beer removed for each household, without payment of tax, per calendar year may not exceed 100 gallons if there is one adult residing in the household or 200 gallons if there are two or more adults residing in the household. Beer removed in excess of the above limitations will be reported as a taxable removal.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.20.13" TYPE="SUBPART">
<HEAD>Subpart M—Beer Returned to Brewery</HEAD>


<DIV8 N="§ 25.211" NODE="27:1.0.1.1.20.13.395.1" TYPE="SECTION">
<HEAD>§ 25.211   Beer returned to brewery.</HEAD>
<P>(a) <I>General.</I> Beer, produced in the United States, on which the brewer has paid or determined the tax may be returned to any brewery of the brewer. Upon return of the beer to the brewery, the brewer shall determine the actual quantity of beer received, expressed in barrels. For cases or bottles, the label may be used to determine the quantity. When kegs or cases containing less than the original contents are received, the brewer shall determine the actual quantity of beer by weight or by other accurate means. The brewer shall determine the balling and alcohol content of returned keg beer unless the keg is equipped with tamper-proof fittings. The quantity of beer returned may be established by weighing individual packages and subtracting package weight, or by weighing accumulated beer and subtracting tare weight of dumpsters, pallets, packages and the like.
</P>
<P>(b) <I>Disposition of returned beer.</I> The brewer may dispose of beer returned under this subpart in any manner prescribed for beer which has never left the brewery. If returned beer is again removed for consumption or sale, tax will be determined and paid without respect to the tax which was determined or paid at the time of prior removal of the beer.
</P>
<P>(c) <I>Records.</I> For beer returned to the brewery under this subpart, the brewer's daily records under § 25.292 will show:
</P>
<P>(1) Date;
</P>
<P>(2) Quantity of beer returned;
</P>
<P>(3) If the title to the beer has passed, the name and address of the person returning the beer; and
</P>
<P>(4) Name and address of the brewery from which the beer was removed, if different from the brewery to which returned.
</P>
<P>(d) <I>Supporting records.</I> The records of returned beer will be supported by invoices, credit memoranda or other commercial papers, and will differentiate between beer returned to the brewery from which removed and beer returned to a brewery different from the one from which removed.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended, 1390, as amended (26 U.S.C. 5054, 5056, 5415))


</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 25.212" NODE="27:1.0.1.1.20.13.395.2" TYPE="SECTION">
<HEAD>§ 25.212   Beer returned to brewery from which removed.</HEAD>
<P>If beer on which the tax has been determined or paid is returned to the brewery from which removed, the brewer shall take the quantity of beer as an offset or deduction against the quantity of beer removed for consumption or sale from the brewery on that business day, as provided in § 25.159
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended, 1390, as amended (26 U.S.C. 5056, 5415))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.213" NODE="27:1.0.1.1.20.13.395.3" TYPE="SECTION">
<HEAD>§ 25.213   Beer returned to brewery other than that from which removed.</HEAD>
<P>(a) <I>Refund or adjustment of tax.</I> If beer on which the tax has been determined or paid is returned to a brewery of the brewer other than the one from which removed, the brewer may make a claim for refund or relief of tax or may make an adjustment to the beer tax return, for the tax on the beer returned to the brewery. The brewer may not take an offset for beer returned to the brewery other than the one from which removed. Procedures for filing claims for refund or relief of tax or for making adjustments to the beer tax return are contained in subpart T of this part.
</P>
<P>(b) <I>Notice.</I> A brewer need not file notice of intention to return beer to a brewery other than the one from which removed unless required by the appropriate TTB officer. When a notice is required, the brewer shall serially number each notice and execute it under penalties of perjury as defined in § 25.11. The brewer must file it with the appropriate TTB officer. The notice will contain the following information:
</P>
<P>(1) The number and sizes of kegs and the actual quantity of beer, in barrels; or the number of cases and the number and sizes of bottles within the cases and the actual quantity of beer, in barrels;
</P>
<P>(2) The name and address of the brewery from which the beer was removed;
</P>
<P>(3) A statement that the tax on the beer has been fully paid or determined and the rate at which the tax on the beer was paid or determined; and
</P>
<P>(4) If the title to the beer has passed, the name and address of the person returning the beer.
</P>
<P>(c) <I>Return of beer.</I> If the brewer is required to file a notice of intention to return beer to the brewery, the brewer may bring the beer onto the brewery premises prior to filing the notice. The brewer shall segregate the returned beer from all other beer at the brewery and clearly identify it as returned beer. The returned beer will be retained intact for inspection by an appropriate TTB officer until the notice has been filed and disposition authorized.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.20.14" TYPE="SUBPART">
<HEAD>Subpart N—Voluntary Destruction</HEAD>


<DIV8 N="§ 25.221" NODE="27:1.0.1.1.20.14.395.1" TYPE="SECTION">
<HEAD>§ 25.221   Voluntary destruction of beer.</HEAD>
<P>(a) <I>On brewery premises.</I> (1) A brewer may destroy, at the brewery, beer on which the tax has not been determined or paid.
</P>
<P>(2) A brewer operating a tavern on brewery premises under § 25.25 may destroy taxpaid or tax-determined beer stored on brewery premises, in accordance with the requirements of § 25.225.
</P>
<P>(b) <I>Destruction without return to brewery.</I> A brewer may destroy beer on which the tax has been paid or determined at a location other than any of the breweries operated by the brewer, upon compliance with this subpart.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986; T.D. ATF-268, 53 FR 8629, Mar. 16, 1988, as amended by T.D. 372, 61 FR 20724, May 8, 1996; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 25.222" NODE="27:1.0.1.1.20.14.395.2" TYPE="SECTION">
<HEAD>§ 25.222   Notice of brewer.</HEAD>
<P>(a) <I>Beer to be destroyed.</I> When a brewer possesses beer which has been taxpaid or tax determined and which the brewer wishes to destroy at a location other than at any of the brewer's breweries, the brewer shall give written notice of intention to destroy the beer. The brewer must submit this notice to the appropriate TTB officer.
</P>
<P>(b) <I>Execution of notice.</I> The brewer shall serially number each notice and execute each notice under penalties of perjury as defined in § 25.11. The brewer shall specify the date on which the beer is to be destroyed; this date may not be less than 12 days from the date the notice is mailed or delivered to the appropriate TTB officer.
</P>
<P>(c) <I>Information to be furnished.</I> The notice will contain the following information:
</P>
<P>(1) The number and sizes of kegs and the actual quantity of beer, in barrels; or the number of cases and the number and sizes of bottles within the cases, and the actual quantity of beer in barrels. When kegs containing less than the actual contents are to be destroyed, the brewer shall determine the actual content of beer by weight or by other accurate means.
</P>
<P>(2) The date on which the beer was received for destruction.
</P>
<P>(3) A statement that the tax on the beer has been fully paid or determined and the rate at which the tax on the beer was paid or determined.
</P>
<P>(4) If the title of the beer has passed, the name and address of the person returning the beer.
</P>
<P>(5) The location at which the brewer desires to destroy the beer and the reason for not returning the beer to the brewery.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 25.223" NODE="27:1.0.1.1.20.14.395.3" TYPE="SECTION">
<HEAD>§ 25.223   Destruction of beer off brewery premises.</HEAD>
<P>(a) <I>Destruction without supervision.</I> A brewer may destroy beer without supervision if the appropriate TTB officer does not advise the brewer before the date specified in the notice that destruction of the beer is to be supervised.
</P>
<P>(b) <I>Destruction with supervision.</I> The appropriate TTB officer may require that an appropriate TTB officer verify the information in the notice of destruction or witness the destruction of the beer. The appropriate TTB officer may also require a delay in the destruction of the beer or, if the place of destruction is not readily accessible to an appropriate TTB officer, may require that the beer be moved to a more convenient location. In this case, the brewer may not destroy the beer except under the conditions imposed by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 25.224" NODE="27:1.0.1.1.20.14.395.4" TYPE="SECTION">
<HEAD>§ 25.224   Refund or adjustment of tax.</HEAD>
<P>(a) <I>Claim for refund or relief of tax.</I> The tax paid by a brewer on beer produced in the United States and destroyed in accordance with this subpart may be refunded to the brewer. If the tax has not been paid, the brewer may be relieved of liability for the tax. Claims for refund or relief of tax will be filed as provided in subpart T of this part.
</P>
<P>(b) <I>Adjustments to the excise tax return.</I> A brewer may make an adjustment (without interest) to the excise tax return, Form 5000.24, covering the tax paid on beer produced in the United States and destroyed in accordance with this subpart. Procedures for making adjustments to tax returns are contained in subpart T of this part.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.225" NODE="27:1.0.1.1.20.14.395.5" TYPE="SECTION">
<HEAD>§ 25.225   Destruction of taxpaid beer which was never removed from brewery premises.</HEAD>
<P>(a) <I>General.</I> A brewer operating a tavern on brewery premises under § 25.25 may destroy taxpaid or tax-determined beer which was never removed from brewery premises, in accordance with the recordkeeping requirements of paragraph (b) of this section, and with the benefit of the tax refund provisions of paragraph (c) of this section.
</P>
<P>(b) <I>Recordkeeping.</I> (1) When taxpaid or tax-determined beer which was never removed from brewery premises is destroyed, the brewer shall prepare a record of the quantity of beer destroyed, and the reason for, date of, and method of, destruction. The brewer may prepare this record on Form 2635 (5620.8) for submission as a claim under § 25.283.
</P>
<P>(2) When required by the appropriate TTB officer, the brewer shall notify the appropriate TTB officer prior to the intended destruction, in accordance with procedures established by the appropriate TTB officer.
</P>
<P>(c) <I>Refund of tax.</I> After destruction is completed, the brewer may file a claim for refund or credit of tax, in accordance with § 25.283(c).
</P>
<CITA TYPE="N">[T.D. ATF-268, 53 FR 8629, Mar. 16, 1988, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="O" NODE="27:1.0.1.1.20.15" TYPE="SUBPART">
<HEAD>Subpart O—Beer Purchased From Another Brewer</HEAD>


<DIV8 N="§ 25.231" NODE="27:1.0.1.1.20.15.395.1" TYPE="SECTION">
<HEAD>§ 25.231   Finished beer.</HEAD>
<P>(a) A brewer may obtain beer in barrels and kegs, finished and ready for sale from another brewer. The purchasing brewer may furnish the producing brewer barrels and kegs marked with the purchasing brewer's name and location. The producing brewer shall pay the tax as provided in subpart K of this part.
</P>
<P>(b) A brewer may not purchase taxpaid or tax determined beer from another brewer in bottles or cans which bear the name and address of the purchasing brewer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5413))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.232" NODE="27:1.0.1.1.20.15.395.2" TYPE="SECTION">
<HEAD>§ 25.232   Basic permit.</HEAD>
<P>A brewer who engages in the business of purchasing beer for resale is required to possess a wholesaler's or importer's basic permit under the provisions of section 3(c) of the Federal Alcohol Administration Act and part 1 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]






</CITA>
</DIV8>

</DIV6>


<DIV6 N="P" NODE="27:1.0.1.1.20.16" TYPE="SUBPART">
<HEAD>Subpart P—Cereal Beverage</HEAD>


<DIV8 N="§ 25.241" NODE="27:1.0.1.1.20.16.395.1" TYPE="SECTION">
<HEAD>§ 25.241   Production.</HEAD>
<P>Brewers may produce cereal beverage and remove it without payment of tax from the brewery. The method of production shall insure that the alcohol content of the cereal beverage will not increase while in the original container after removal from the brewery. The brewer shall keep cereal beverage separate from beer, and shall measure the quantity of cereal beverage transferred for packaging in accordance with § 25.41.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.242" NODE="27:1.0.1.1.20.16.395.2" TYPE="SECTION">
<HEAD>§ 25.242   Markings.</HEAD>
<P>(a) <I>Designation.</I> When bottled or packaged, cereal beverage may be designated “Cereal Beverage,” “Malt Beverage,” “Near Beer,” or other distinctive name. If designated “Near Beer,” those words will be printed identically in the same size or style of type, in the same color of ink, and on the same background.
</P>
<P>(b) <I>Barrels and kegs.</I> A brewer may remove cereal beverage in barrels and kegs if the sides are durably painted at each end with a white stripe not less than 4 inches in width and the heads are painted in a solid color, with conspicuous lettering in a contrasting color reading “Nontaxable under section 5051 I.R.C.” The brewer shall also legibly mark the brewer's name or trade name and the address on the container.
</P>
<P>(c) <I>Bottles.</I> Bottle labels shall show the name or trade name and address of the brewer, the distinctive name of the beverage, if any, and the legend “Nontaxable under section 5051 I.R.C.” Other information which is not inconsistent with the requirements of this section may be shown on bottle labels.
</P>
<P>(d) <I>Cases.</I> The brewer shall mark cases or shipping containers to show the nature of the product and the name or trade name and address of the brewer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))


</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="Q" NODE="27:1.0.1.1.20.17" TYPE="SUBPART">
<HEAD>Subpart Q—Removal of Brewer's Yeast and Other Articles</HEAD>


<DIV8 N="§ 25.251" NODE="27:1.0.1.1.20.17.395.1" TYPE="SECTION">
<HEAD>§ 25.251   Authorized removals.</HEAD>
<P>(a) <I>Brewer's yeast.</I> A brewer may remove brewer's yeast, in liquid or solid form containing not less than 10 percent solids (as determined by the methods of analysis of the American Society of Brewing Chemists), from the brewery in barrels, tank trucks, in other suitable containers, or by pipeline.
</P>
<P>(b) <I>Containers.</I> Containers will bear a label giving the name and location of the brewery and including the words “Brewer's Yeast.”
</P>
<P>(c) <I>Pipeline.</I> If brewer's yeast is removed by pipeline, the pipeline will be described in the Brewer's Notice, Form 5130.10. The premises where the brewer's yeast is received is subject to inspection by an appropriate TTB officer during ordinary business hours.
</P>
<P>(d) <I>Other articles.</I> A brewer may remove malt, malt syrup, wort, and other articles from the brewery.
</P>
<P>(e) <I>Methods of Analysis of the American Society of Brewing Chemists, Seventh Edition (1976).</I> In reference to paragraph (a) of this section, this incorporation by reference was approved by the Director of the Federal Register on March 23, 1981, and is available for inspection or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: <I>https://www.archives.gov/federal-register/cfr/ibr-locations.html.</I> This publication is available from the American Society of Brewing Chemists, 40 Pilot Knob Road, St. Paul, Minnesota 55121.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended at 69 FR 18803, Apr. 9, 2004; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.252" NODE="27:1.0.1.1.20.17.395.2" TYPE="SECTION">
<HEAD>§ 25.252   Records.</HEAD>
<P>(a) <I>Production.</I> The brewer shall keep records of the production of malt syrup, wort, and other articles which are removed from the brewery. The record shall include the quantities and kinds of materials used, and in the case of wort and concentrated wort, the balling.
</P>
<P>(b) <I>Removals.</I> The brewer shall keep records of removals of brewer's yeast, malt and other articles from the brewery. The record shall include the quantity and date of removal of each lot, and the name and address of the consignee. These records may consist of invoices or shipping documents.
</P>
<P>(c) <I>Inspection.</I> All records under this section shall be available for inspection at the brewery by an appropriate TTB officer during normal business hours.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="R" NODE="27:1.0.1.1.20.18" TYPE="SUBPART">
<HEAD>Subpart R—Beer Concentrate</HEAD>


<DIV8 N="§ 25.261" NODE="27:1.0.1.1.20.18.395.1" TYPE="SECTION">
<HEAD>§ 25.261   General.</HEAD>
<P>(a) <I>Authorized processes.</I> A brewer may, in accordance with this subpart—
</P>
<P>(1) Produce concentrate from beer,
</P>
<P>(2) Reconstitute beer from concentrate,
</P>
<P>(3) Transfer concentrate from one brewery to another brewery of the same ownership, and
</P>
<P>(4) Remove concentrate without payment of tax for exportation, or for transfer to and deposit in a foreign-trade zone for exportation or for storage pending exportation in accordance with part 28 of this chapter.
</P>
<P>(b) <I>Brewery treatment of concentrate.</I> Beer reconstituted from concentrate in accordance with this subpart shall (except with respect to the additional labeling of reconstituted beer under § 25.263) be treated the same as beer which has not been concentrated and reconstituted.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 25.262" NODE="27:1.0.1.1.20.18.395.2" TYPE="SECTION">
<HEAD>§ 25.262   Restrictions and conditions on processes of concentration and reconstitution.</HEAD>
<P>(a) <I>Conditions on concentration.</I> A brewer may not employ any process of concentration which separates alcohol spirits from any fermented substance.
</P>
<P>(b) <I>Conditions on reconstitution</I>—(1) The process of reconstitution of beer will consist of the addition to the concentrate of carbon dioxide and water only.
</P>
<P>(2) A brewer may not employ any process of concentration or reconstitution unless the beer upon reconstitution will, without the addition of any substance other than carbon dioxide and water, possess the taste, aroma, color, and other characteristics of beer which has not been concentrated.
</P>
<P>(3) The process of reconstitution shall provide for the addition of sufficient water to restore the concentrate to a volume not less than, and an alcohol content not greater than, that of the beer used to produce the concentrate.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1315, as amended, 1388, as amended (26 U.S.C. 5002, 5401))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.263" NODE="27:1.0.1.1.20.18.395.3" TYPE="SECTION">
<HEAD>§ 25.263   Production of concentrate and reconstitution of beer.</HEAD>
<P>(a) <I>Operations at brewery.</I> A brewer may concentrate beer or reconstitute beer only at a brewery.
</P>
<P>(b) <I>Marking of containers.</I> Containers of concentrate transferred to other breweries of the same ownership, and containers of concentrate removed for export shall be marked, branded and labeled in the same manner as prescribed for containers of beer in subpart J of this part. All containers shall be identified as containers of beer concentrate.
</P>
<P>(c) <I>Mingling with beer.</I> A brewer may not mingle concentrate with unconcentrated beer. A brewer may mingle reconstituted beer with other beer at the brewery.
</P>
<P>(d) <I>Additional labeling.</I> Barrels, kegs, and bottles containing beer produced from concentrate will show by label or otherwise the statement “PRODUCED FROM . . . CONCENTRATE,” the blank to be filled in with the appropriate class designation of the beer (beer, lager, ale, stout, etc.) from which the concentrate was made. The statement will be conspicuous and readily legible and, in the case of bottled beer, will appear in direct conjunction with, and as a part of, the class designation. All parts of the class designation will appear in lettering of substantially the same size and kind.
</P>
<P>(e) <I>Records and reports.</I> Brewers producing concentrate and brewers reconstituting beer from concentrate shall keep the records and reports required by subpart U of this part.


</P>
</DIV8>


<DIV8 N="§ 25.264" NODE="27:1.0.1.1.20.18.395.4" TYPE="SECTION">
<HEAD>§ 25.264   Transfer between breweries.</HEAD>
<P>(a) <I>Authorized transfers.</I> A brewer may remove from the brewery, without payment of tax, concentrate produced from beer for transfer to any other brewery of the same ownership (within the limits of ownership described in § 25.181).
</P>
<P>(b) <I>Record of concentrate transferred.</I> When transferring concentrate between breweries, the shipping brewer shall prepare for each conveyance a serially numbered invoice or commercial record covering the transfer. The invoice will be clearly marked to indicate that concentrate produced from beer is being transferred. The invoice will contain the following information:
</P>
<P>(1) Name and address of shipping brewer;
</P>
<P>(2) Date of shipment;
</P>
<P>(3) Name and address of receiving brewer;
</P>
<P>(4) The number of containers transferred, the balling, percentage of alcohol by volume, and the total barrels of concentrate; and
</P>
<P>(5) A description of the beer from which the concentrate was produced including the number of barrels, balling, and percentage of alcohol by volume.
</P>
<P>(c) <I>Disposition of invoice.</I> On shipment of the concentrate, the shipping brewer shall send the original copy of the invoice to the receiving brewer and shall retain a copy for the brewery records. On receipt of the concentrate, the receiving brewer shall note on the invoice any discrepancies in the concentrate received and retain the invoice in the brewery records.


</P>
</DIV8>

</DIV6>


<DIV6 N="S" NODE="27:1.0.1.1.20.19" TYPE="SUBPART">
<HEAD>Subpart S—Pilot Brewing Plants</HEAD>


<DIV8 N="§ 25.271" NODE="27:1.0.1.1.20.19.395.1" TYPE="SECTION">
<HEAD>§ 25.271   General.</HEAD>
<P>(a) <I>Establishment.</I> A person may establish and operate a pilot brewing plant off the brewery premises for research, analytical, experimental, or developmental purposes relating to beer or brewery operations. Pilot brewing plants will be established as provided in this subpart.
</P>
<P>(b) <I>Authorized removals.</I> Beer may be removed from a pilot brewing plant only for analysis or organoleptic examination.
</P>
<P>(c) <I>Transfers between brewery and pilot brewing plant.</I> Subject to subpart L of this part, beer may be transferred to a pilot brewing plant from a brewery of the same ownership, and beer may be transferred without payment of tax from a pilot brewing plant to a brewery of the same ownership.
</P>
<P>(d) <I>Other regulations applicable.</I> The provisions of subparts A, B, F, I, K, and of §§ 25.63, 25.64, and 25.21 are applicable to pilot brewing plants established under this subpart. Also, the provisions of §§ 25.72-25.75, 25.77, 25.92 and 25.94-25.105 relating to bonds, and consents of surety, and of §§ 25.131-25.134 are applicable to bonds and consents of surety given, and to changes in the proprietorship, location, and premises of pilot brewing plants established under this subpart.
</P>
<SECAUTH TYPE="N">(Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.272" NODE="27:1.0.1.1.20.19.395.2" TYPE="SECTION">
<HEAD>§ 25.272   Application.</HEAD>
<P>(a) <I>Form of application.</I> Any person desiring to establish a pilot brewing plant under the subpart shall file an application with the appropriate TTB officer. The application will be in writing and will include the following:
</P>
<P>(1) Name and address of the applicant;
</P>
<P>(2) Description of the premises and equipment to be used in the operations;
</P>
<P>(3) Nature, purpose, and extent of the operations; and
</P>
<P>(4) A statement that the applicant agrees to comply with all provisions of this part applicable to the operations to be conducted.
</P>
<P>(b) <I>Additional information.</I> The appropriate TTB officer may at any time before or after approval of an application, require the submission of additional information necessary for administration of this part or for protection of the revenue.
</P>
<P>(c) <I>Authorization of operations.</I> The appropriate TTB officer may authorize the operation of a pilot brewing plant if it is determined that the plant will be operated solely for one or more of the purposes specified in § 25.271, and that operations will not jeopardize the revenue.
</P>
<P>(d) <I>Withdrawal of authorization.</I> The appropriate TTB officer may withdraw authorization to operate a pilot brewing plant if in his or her judgment, the revenue would be jeopardized by the operations of the plant.
</P>
<P>(e) <I>Commencement of operations.</I> A person may not begin operation of a pilot brewing plant until the appropriate TTB officer has approved the application required by this section.
</P>
<SECAUTH TYPE="N">(Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.273" NODE="27:1.0.1.1.20.19.395.3" TYPE="SECTION">
<HEAD>§ 25.273   Action on application.</HEAD>
<P>If the appropriate TTB officer approves the application for a pilot brewing plant, he or she will note approval on the application and forward a copy to the applicant. The applicant must file the copy of the approved application at the premises, available for inspection by an appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-437, 66 FR 5480, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 25.274" NODE="27:1.0.1.1.20.19.395.4" TYPE="SECTION">
<HEAD>§ 25.274   Bond.</HEAD>
<P>(a) <I>Requirement.</I> Except as provided in paragraph (d) of this section, any person requesting authorization to establish a pilot brewing plant under this subpart shall execute and file a brewer's bond, Form 5130.22. A person may not begin operation of a pilot brewing plant until receiving notice from the appropriate TTB officer of the approval of the bond. Operations may continue only as long as an approved bond is in effect.
</P>
<P>(b) <I>Penal sum.</I> The penal sum of a bond covering the premises of a pilot brewing plant will be an amount equal to the potential tax liability of the maximum quantity of beer on hand, in transit to the plant, and unaccounted for at any one time, computed by multiplying the quantity of beer in barrels by the rate of tax in 26 U.S.C. 5051. The penal sum of the bond (or total penal sum if original and strengthening bonds are filed) may not exceed $50,000 or be less than $500.
</P>
<P>(c) <I>Conditions of bonds.</I> The bond will be conditioned that the operator of the pilot brewing plant shall pay, or cause to be paid, to the United States according to the laws of the United States and the provisions of this part, the taxes, including penalties and interest for which the operator shall become liable, on all beer brewed, produced, or received on the premises.
</P>
<P>(d) <I>Bond exemption.</I> A person is not required to provide a bond under this section if the person is a brewer qualified under this part and if, under § 25.91(e), the person is exempt from bond requirements applicable to brewers.
</P>
<SECAUTH TYPE="N">(Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D TTB-146, 82 FR 1130, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.275" NODE="27:1.0.1.1.20.19.395.5" TYPE="SECTION">
<HEAD>§ 25.275   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 25.276" NODE="27:1.0.1.1.20.19.395.6" TYPE="SECTION">
<HEAD>§ 25.276   Operations and records.</HEAD>
<P>(a) <I>Commencement of operations.</I> A person may commence operation of a pilot brewing plant upon receipt of the approved application and any required bond.
</P>
<P>(b) <I>Reports.</I> The operator of a pilot brewing plant is not required to file the Brewer's Report of Operations, Form 5130.9.
</P>
<P>(c) <I>Records.</I> The operator of a pilot brewing plant must maintain records which, in the opinion of the appropriate TTB officer, are appropriate to the type of operation being conducted. These records will include information sufficient to account for the receipt, production, and disposition of all beer received or produced on the premises, and the receipt (and disposition, if removed) of all brewing materials. These records will be available for inspection by an appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993; T.D. ATF-437, 66 FR 5480, Jan. 19, 2001; T.D. TTB-146, 82 FR 1130, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 25.277" NODE="27:1.0.1.1.20.19.395.7" TYPE="SECTION">
<HEAD>§ 25.277   Discontinuance of operations.</HEAD>
<P>When operations of a pilot brewing plant are to be discontinued, the operator shall notify the appropriate TTB officer stating the purpose of the notice and giving the date of discontinuance. When operations have been completed and all beer at the premises has been disposed of and accounted for, the appropriate TTB officer will note approval on the notice and return a copy to the operator.


</P>
</DIV8>

</DIV6>


<DIV6 N="T" NODE="27:1.0.1.1.20.20" TYPE="SUBPART">
<HEAD>Subpart T—Refund or Adjustment of Tax or Relief From Liability</HEAD>


<DIV8 N="§ 25.281" NODE="27:1.0.1.1.20.20.395.1" TYPE="SECTION">
<HEAD>§ 25.281   General.</HEAD>
<P>(a) <I>Reasons for refund or adjustment of tax or relief from liability.</I> The tax paid by a brewer on beer produced in the United States may be refunded, or adjusted on the tax return (without interest) or, if the tax has not been paid, the brewer may be relieved of liability for the tax on:
</P>
<P>(1) Beer returned to any brewery of the brewer subject to the conditions outlined in subpart M of this part;
</P>
<P>(2) Beer voluntarily destroyed by the brewer subject to the conditions outlined in subpart N of this part;
</P>
<P>(3) Beer lost by fire, theft, casualty, or act of God subject to the conditions outlined in § 25.282.
</P>
<P>(b) <I>Refund of beer tax excessively paid.</I> A brewer may be refunded the tax excessively paid on beer subject to the conditions outlined in § 25.285.
</P>
<P>(c) <I>Rate of tax.</I> Brewers who have filed the notice required by § 25.167 and who have paid the tax on beer at the reduced rate of tax shall make claims for refund or relief of tax, or adjustments on the tax return, based upon the lower rate of tax. However, a brewer may make adjustments or claims for refund or relief of tax based on the higher rate of tax if the brewer can establish to the satisfaction of the appropriate TTB officer that the tax was paid or determined at the higher rate of tax.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.282" NODE="27:1.0.1.1.20.20.395.2" TYPE="SECTION">
<HEAD>§ 25.282   Beer lost by fire, theft, casualty, or act of God.</HEAD>
<P>(a) <I>General.</I> The tax paid by any brewer on beer produced in the United States may be adjusted (without interest) on the excise tax return, may be refunded or credited (without interest) or, if the tax has not been paid, the brewer may be relieved of liability for the tax if, before transfer of title to the beer to any other person, the beer is lost, whether by theft or otherwise, or is destroyed or otherwise rendered unmerchantable by fire, casualty, or act of God. The tax liability on excessive losses of beer from transfer between breweries of the same ownership may be remitted as provided in § 25.286.
</P>
<P>(b) <I>Unmerchantable beer.</I> When beer is rendered unmerchantable by fire, casualty, or act of God, refund, credit or adjustment of tax, or relief from liability of tax will not be allowed unless the brewer proves to the satisfaction of the appropriate TTB officer that the beer cannot be salvaged and returned to the market for consumption or sale.
</P>
<P>(c) <I>Beer lost or destroyed.</I> When beer is lost or destroyed, whether by theft or otherwise, the appropriate TTB officer may require the brewer to file a claim for relief from the tax and to submit proof as to the cause of the loss.
</P>
<P>(d) <I>Beer lost by theft.</I> When it appears that beer was lost by theft, the tax shall be collected unless the brewer proves to the satisfaction of the appropriate TTB officer that the theft occurred before removal from the brewery and occurred without connivance, collusion, fraud, or negligence on the part of the brewer, consignor, consignee, bailee, or carrier, or the employees or agents of any of them.
</P>
<P>(e) <I>Notification of appropriate TTB officer.</I> (1) A brewer who sustains a loss of beer before transfer of title of the beer to another person and who desires to adjust the tax on the excise tax return or to file a claim for refund or for relief from liability of tax, must, on learning of the loss of beer, immediately notify in writing the appropriate TTB officer of the nature, cause, and extent of the loss, and the place where the loss occurred. Statements of witnesses or other supporting documents must be furnished if available.
</P>
<P>(2) A brewer possessing unmerchantable beer and who desires to adjust the tax on the excise tax return or to file a claim for refund or for relief from liability must notify in writing the appropriate TTB officer, of the circumstances by which the beer became unmerchantable, and must state why the beer cannot be salvaged and returned to the market for consumption or sale.
</P>
<P>(f) <I>Additional information.</I> The appropriate TTB officer may require the brewer to submit additional evidence necessary to verify the tax adjustment or for use in connection with a claim.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5480, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 25.283" NODE="27:1.0.1.1.20.20.395.3" TYPE="SECTION">
<HEAD>§ 25.283   Claims for refund of tax.</HEAD>
<P>(a) <I>Beer returned to brewery or voluntarily destroyed at a location other than a brewery.</I> Claims for refund of tax on beer returned to a brewery under the provisions of § 25.213 or voluntarily destroyed at a location other than a brewery shall include:
</P>
<P>(1) The name and address of the brewer filing the claim, the address of the brewery from which the beer was removed, and the address of the brewery to which the beer was returned, as applicable;
</P>
<P>(2) The quantity of beer covered by the claim and the rate(s) of tax at which the beer was tax paid or determined;
</P>
<P>(3) The amount of tax for which the claim is filed;
</P>
<P>(4) The reason for return or voluntary destruction of the beer and the related facts;
</P>
<P>(5) Whether the brewer is indemnified by insurance or otherwise in respect of the tax, and if so, the nature of the indemnification;
</P>
<P>(6) The claimant's reasons for believing the claim should be allowed;
</P>
<P>(7) The date the beer was returned to the brewery, if applicable;
</P>
<P>(8) The name of the person from whom the beer was received;
</P>
<P>(9) A statement that the tax has been fully paid or determined; and
</P>
<P>(10) A reference to the notice (if required) filed under §§ 25.213 or 25.222.
</P>
<P>(b) <I>Beer lost, destroyed, or rendered unmerchantable.</I> Claims for refund of tax on beer lost, whether by theft or otherwise, or destroyed or otherwise rendered unmerchantable by fire, casualty, or act of God shall contain:
</P>
<P>(1) Information required by paragraphs (a)(1), (2), (3), (5), and (6) of this section;
</P>
<P>(2) A statement of the circumstances surrounding the loss;
</P>
<P>(3) When applicable, the reason the beer rendered unmerchantable cannot be returned to the market for consumption or sale;
</P>
<P>(4) Date of the loss, and if lost in transit, the name of the carrier;
</P>
<P>(5) A reference incorporating the notice required by § 25.282; and
</P>
<P>(6) When possible, affidavits of persons having knowledge of the loss, unless the affidavits are contained in the notice given under § 25.282.
</P>
<P>(c) <I>Voluntary destruction of taxpaid beer which was never removed from brewery premises.</I> Claims for refund or credit of tax on beer voluntarily destroyed under the provisions of § 25.225, shall include:
</P>
<P>(1) Information required by paragraphs (a)(1), (a)(2), (a)(3), (a)(5), and (a)(9) of this section; and
</P>
<P>(2) The information contained in the record required by § 25.225(b).
</P>
<P>(d) <I>Additional evidence.</I> The appropriate TTB officer may require the submission of additional evidence in support of any claim filed under this section.
</P>
<P>(e) <I>Filing of claim.</I> Claim for refund of tax shall be filed on Form 2635 (5620.8). Claims shall be filed within 6 months after the date of the return, loss, destruction, or rendering unmerchantable. Claims will not be allowed if filed after the prescribed time or if the claimant was indemnified by insurance or otherwise in respect of the tax.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19314, May 22, 1987; T.D. ATF-268, 53 FR 8629, Mar. 16, 1988; T.D. ATF-437, 66 FR 5480, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 25.284" NODE="27:1.0.1.1.20.20.395.4" TYPE="SECTION">
<HEAD>§ 25.284   Adjustment of tax.</HEAD>
<P>(a) <I>Adjustment of tax in lieu of refund.</I> In lieu of filing a claim for refund of tax as provided in § 25.283, a brewer may make an adjustment (without interest) to the excise tax return, Form 5000.24, for the amount of tax paid on beer returned to the brewery, voluntarily destroyed, lost, destroyed, or rendered unmerchantable.
</P>
<P>(b) <I>Beer returned to brewery other than from which removed.</I> An adjustment may be made on the excise tax return for the amount of tax paid on beer returned to the brewery under § 25.213. The adjustment will be made on the tax return filed for the brewery to which the beer was returned. The adjustment may not be made prior to the return of beer to the brewery. If the brewer is required to file a notice under § 25.213, the adjustment may not be made until the appropriate TTB officer authorizes disposition of the beer.
</P>
<P>(c) <I>Beer voluntarily destroyed.</I> An adjustment may be made on the excise tax return for the amount of tax paid on beer voluntarily destroyed under subpart N of this part. The adjustment will be made on the tax return filed for the brewery from which the beer was removed. The adjustment may not be made prior to the destruction of the beer.
</P>
<P>(d) <I>Beer lost, destroyed or rendered unmerchantable.</I> An adjustment may be made on the excise tax return for the amount of tax paid on beer lost, destroyed, or rendered unmerchantable under § 25.282. The adjustment will be made on the tax return filed for the brewery from which the beer was removed. A brewer may not make an adjustment prior to notification required under § 25.282(e). When beer appears to have been lost due to theft, the brewer may not make an adjustment to the tax return until establishing to the satisfaction of the appropriate TTB officer that the theft occurred before removal from the brewery and occurred without connivance, collusion, fraud, or negligence on the part of the brewer, consignor, consignee, bailee, or carrier, or the employees or agents of any of them.
</P>
<P>(e) <I>Condition of adjustments.</I> (1) All adjustments will be made within 6 months of the return, destruction, loss, or rendering unmerchantable of the beer.
</P>
<P>(2) Adjustment of the tax paid will be made without interest.
</P>
<P>(3) An adjustment may not be taken if the brewer was indemnified by insurance or otherwise in respect of the tax.
</P>
<P>(f) <I>Records.</I> When brewers make adjustments on the excise tax return in lieu of filing a claim, they shall keep the following records;
</P>
<P>(1) For beer returned to the brewery or voluntarily destroyed, the records required by §§ 25.283(a)(1), (2), (4), (5), (7), (8), and (10).
</P>
<P>(2) For beer lost, destroyed, or rendered unmerchantable, the records required by § 25.283 (a)(1), (2), (5), (b) (2), (3), (4), (5), and (6).
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5480, Jan. 19, 2001; T.D. ATF-437a, 66 FR 17809, Apr. 4, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 25.285" NODE="27:1.0.1.1.20.20.395.5" TYPE="SECTION">
<HEAD>§ 25.285   Refund of beer tax excessively paid.</HEAD>
<P>(a) <I>Eligibility.</I> A brewer who, under the provisions of § 25.152, is eligible to pay the reduced rate of tax on beer prescribed by 26 U.S.C. 5051 (a)(2), but who did not pay tax at the reduced rate by return, form TTB F 5000.24, during the calendar year for which the brewer was eligible, may file a claim for refund of tax excessively paid on beer for that year. The brewer shall file the claim for refund to tax on form TTB F 5620.8 within the period of limitation prescribed in 26 U.S.C. 6511(a). For rules relating to the period of limitation on filing claims, see §§ 70.82 and 70.83.
</P>
<P>(b) <I>Calculation of refund.</I> The brewer shall file the claim based on the quantity of beer eligible to be taxpaid at the lower rate of tax, but which was paid at the higher rate of tax, subject to a maximum of 60,000 barrels of beer per calendar year or the limitation as determined in § 25.152(d). The brewer shall exclude from the claim the quantity of beer removed that calendar year on which a credit or refund at the higher rate of tax has been taken.
</P>
<P>(c) <I>Information to be furnished.</I> Each claim for refund of tax filed under this section shall include the following information:
</P>
<P>(1) Name and address of the brewer.
</P>
<P>(2) Quantity of beer covered by the claim as determined in paragraph (b) of this section.
</P>
<P>(3) Amount of tax paid in excess.
</P>
<P>(4) A statement of the exact number of barrels of beer which the brewer produced during the calendar year.
</P>
<P>(5) A statement that the brewer is not a member of a controlled group of brewers (as defined in § 25.152(b)(1) or, if the brewer is a member of a controlled group of brewers, a list of the names and addresses of all the members of the controlled group of brewers and a statement of the combined number of barrels of beer produced by all members of the controlled group in the calendar year.
</P>
<P>(6) If the brewer is a member of a controlled group of brewers, a statement of how the 60,000 barrel limitation for the reduced rate of tax is to be apportioned among the members of the controlled group of brewers.
</P>
<SECAUTH TYPE="N">(Act of August 16, 1954, 68A Stat. 791, as amended (26 U.S.C. 6402); sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19314, May 22, 1987; T.D. ATF-437, 66 FR 5480, Jan. 19, 2001; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 25.286" NODE="27:1.0.1.1.20.20.395.6" TYPE="SECTION">
<HEAD>§ 25.286   Claims for remission of tax on beer lost in transit between breweries.</HEAD>
<P>(a) <I>Filing of claim.</I> Claims for remission of tax on beer lost in transit between breweries of the same ownership shall be prepared on form TTB F 5620.8 by the brewer or the brewer's authorized agent and submitted with the form TTB F 5130.9 of the receiving brewery for the reporting period in which the shipment is received. When the loss is by casualty, the claim will be submitted with the form TTB F 5130.9 for the reporting period in which the loss is discovered. When, for valid reason, the required claim cannot be submitted with form TTB F 5130.9, the brewer shall attach a statement to form TTB F 5130.9 stating the reason why the claim cannot be filed at the time and stating when it will be filed. A claim will not be allowed unless filed within 6 months of the date of the loss.
</P>
<P>(b) <I>Information to be shown.</I> The claim will show the following information:
</P>
<P>(1) The date of the shipment;
</P>
<P>(2) The quantity of beer lost (number and size of packages and their equivalent in barrels), and the rate(s) of tax at which the beer would have been removed for consumption or sale;
</P>
<P>(3) The percent of loss;
</P>
<P>(4) The specific cause of the loss;
</P>
<P>(5) The nature of the loss (leakage, breakage, casualty, etc.);
</P>
<P>(6) Information as to whether the claimant has been indemnified by insurance or otherwise in respect to the tax, or has any claim for indemnification; and
</P>
<P>(7) For losses due to casualty or accident, statements from the carrier or other persons having personal knowledge of the loss, if available.
</P>
<SECAUTH TYPE="N">(27 U.S.C. 5056, 5414)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986; T.D. ATF-345, 58 FR 40357, July 28, 1993;  T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="U" NODE="27:1.0.1.1.20.21" TYPE="SUBPART">
<HEAD>Subpart U—Records and Reports</HEAD>


<DIV8 N="§ 25.291" NODE="27:1.0.1.1.20.21.395.1" TYPE="SECTION">
<HEAD>§ 25.291   Records.</HEAD>
<P>(a) <I>General.</I> (1) The records to be maintained by brewers include:
</P>
<P>(i) All individual transaction forms, records, and summaries specifically required by this part;
</P>
<P>(ii) All supplemental, auxiliary, and source data used in the compilation of required forms, records, and summaries, and for preparation of reports, returns, and claims; and
</P>
<P>(iii) Copies of notices, reports, returns, and approved applications and other documents relating to operations and transactions.
</P>
<P>(2) The records required by this part may consist of the brewer's commercial documents, rather than records prepared expressly to meet the requirements of this part, if those documents contain all the details required by this part, are consistent with the general requirements of clarity and accuracy, and do not result in difficulty in their examination.
</P>
<P>(b) <I>Entries.</I> (1) Each entry required by this part to be made in daily records will be made not later than the close of the business day next succeeding the day on which the transaction occurs.
</P>
<P>(2) When the brewer prepares transaction or business records concurrently with the individual operation or transaction and these records contain all the required information with respect to the operation or transaction, entries in daily records may be made not later than the close of business the third business day succeeding the day on which the operation or transaction occurs.
</P>
<P>(c) <I>Content.</I> (1) All entries in the daily records required by this subpart will show the date of the operation or transaction.
</P>
<P>(2) Daily records will accurately and clearly reflect the details of each operation or transaction and, as applicable, contain all data necessary to enable—
</P>
<P>(i) Brewers to prepare summaries, reports, and returns required by this part, and
</P>
<P>(ii) Appropriate TTB officers to verify removals of beer and cereal beverages, to verify claims, and to ascertain if there has been compliance with law and regulations.
</P>
<P>(d) <I>Format.</I> (1) The brewer's copies of prescribed forms which bear all required details will be utilized as daily records.
</P>
<P>(2) When a form is not prescribed, the records required by this subpart will be those commercial records used by the brewer in the accounting system and will bear all required details.
</P>
<P>(3) The brewer shall maintain daily records required by this part so they clearly and accurately reflect all mandatory information. When the format or arrangement of the daily records is such that the information is not clearly or accurately shown, the appropriate TTB officer may require a format or arrangement which will clearly and accurately show the information.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D TTB-196, 89 FR 87943, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 25.292" NODE="27:1.0.1.1.20.21.395.2" TYPE="SECTION">
<HEAD>§ 25.292   Daily records of operations.</HEAD>
<P>(a) <I>Daily records.</I> A brewer shall maintain daily records of operations which show by quantity the following:
</P>
<P>(1) Each kind of material received and used in the production of beer and cereal beverage (including the balling and the quantity of each type of material used in the production of wort or concentrated wort).
</P>
<P>(2) Beer and cereal beverage produced (including water added after production is determined).
</P>
<P>(3) Beer and cereal beverage transferred for and returned from bottling.
</P>
<P>(4) Beer and cereal beverage transferred for and returned from racking.
</P>
<P>(5) Beer and cereal beverage bottled.
</P>
<P>(6) Beer and cereal beverage racked.
</P>
<P>(7) Cereal beverage removed from the brewery.
</P>
<P>(8) Beer removed for consumption or sale. For each removal, the record will show the date of removal, the person to whom the beer was shipped or delivered (not required for sales in quantities of one-half barrel or less for delivery at the brewery), and the quantities of beer removed in kegs and in bottles.
</P>
<P>(9) Beer removed without payment of tax. For each removal, the record will show the date of removal, the person to whom the beer was shipped or delivered, and the quantities of beer removed in kegs, bottles, tanks, tank cars, tank trucks, tank ships, barges or deep tanks of vessels.
</P>
<P>(10) Packaged beer used for laboratory samples at the brewery.
</P>
<P>(11) Beer consumed at the brewery.
</P>
<P>(12) Beer returned to the brewery from which removed.
</P>
<P>(13) Beer returned to the brewery after removal from another brewery owned by the brewer.
</P>
<P>(14) Beer reconditioned, used as material, or destroyed.
</P>
<P>(15) Beer received from other breweries or received from pilot brewing plants.
</P>
<P>(16) Beer and cereal beverage lost due to breakage, theft, casualty, or other unusual cause.
</P>
<P>(17) Brewing materials sold or transferred to pilot brewing plants (including the name and address of the person to whom shipped or delivered) and brewing materials used in the manufacture of wort, wort concentrate, malt syrup, and malt extract for sale or removal.
</P>
<P>(18) Record of tests of measuring devices.
</P>
<P>(19) Beer purchased from other brewers in the purchasing brewer's barrels and kegs and such beer sold to other brewers.
</P>
<P>(b) <I>Daily summary records.</I> A brewer shall maintain daily summaries of the following transactions:
</P>
<P>(1) Beer and cereal beverage bottled;
</P>
<P>(2) Beer and cereal beverage racked;
</P>
<P>(3) Beer removed for consumption or sale;
</P>
<P>(4) Beer returned to the brewery from which removed;
</P>
<P>(5) Beer returned to the brewery after removal from another brewery owned by the brewer; and
</P>
<P>(6) Brewing materials, beer and cereal beverage in process, and finished beer and cereal beverage on hand.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1395, as amended (26 U.S.C. 5415, 5555))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 25.293" NODE="27:1.0.1.1.20.21.395.3" TYPE="SECTION">
<HEAD>§ 25.293   Record of ballings and alcohol content.</HEAD>
<P>The brewer shall maintain a record of the ballings of the wort produced, and of the ballings and the alcohol content of beer and cereal beverage transferred for bottling and racking, between breweries in bulk conveyances, and to pilot brewing plants. Records showing ballings and alcohol content need not be consolidated and averaged daily unless the brewer so desires.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.294" NODE="27:1.0.1.1.20.21.395.4" TYPE="SECTION">
<HEAD>§ 25.294   Inventories.</HEAD>
<P>(a) The brewer shall take a physical inventory of beer and cereal beverage at least once each calendar month. The brewer may take this inventory within 7 days of the close of the calendar month for which made.
</P>
<P>(b) The brewer shall make a record of inventories of beer or cereal beverage which will show the following:
</P>
<P>(1) Date taken;
</P>
<P>(2) Quantity of beer and cereal beverage on hand;
</P>
<P>(3) Losses, gains, and shortages; and
</P>
<P>(4) Signature, under penalties of perjury of the brewer or person taking this inventory.
</P>
<P>(c) The brewer shall retain inventory records and make them available for inspection by an appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 25.295" NODE="27:1.0.1.1.20.21.395.5" TYPE="SECTION">
<HEAD>§ 25.295   Record of unsalable beer.</HEAD>
<P>A brewer having unsalable beer in packages or tanks in the brewery may destroy, recondition, or use the beer as material. The brewer shall report the quantity of the beer destroyed, reconditioned, or used as materials, in daily records and on Form 5130.9. If the unsalable beer consists of rejects from the packaging operations, the beer may be destroyed without being included in the packaging production records, and, when so destroyed, will be so reported in the brewer's daily records and on Form 5130.9. When reject bottled beer is to be consumed at the brewery or sold to brewery employees, or is cased or otherwise accumulated pending other disposition, the quantity will be included in the packaging production and be so reported in the brewer's daily records and on Form 5130.9.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1389 as amended, 1390, as amended, 1395 as amended (26 U.S.C. 5411, 5415, 5555))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.296" NODE="27:1.0.1.1.20.21.395.6" TYPE="SECTION">
<HEAD>§ 25.296   Record of beer concentrate.</HEAD>
<P>(a) <I>Daily records.</I> A brewer who produces concentrate or reconstitutes beer shall maintain daily records which accurately reflect the balling, quantity, and alcohol content of—
</P>
<P>(1) Beer entered into the concentration process;
</P>
<P>(2) Concentrate produced;
</P>
<P>(3) Concentrate transferred to other breweries;
</P>
<P>(4) Concentrate exported;
</P>
<P>(5) Concentrate received;
</P>
<P>(6) Concentrate used in reconstituting beer; and
</P>
<P>(7) Beer reconstituted.
</P>
<P>(b) <I>Summary report of operations.</I> A brewer who produces concentrate or reconstitutes beer shall report by specific entries on Form 5130.9, the quantity of beer entered into the concentration process, and the quantity of beer reconstituted from concentrate. In addition, the brewer shall prepare on Form 5130.9, a summary accounting of all concentrate operations at the brewery for the reporting period. This summary accounting will show, in barrels of 31 gallons with fractions rounded to 2 decimal places:
</P>
<P>(1) Concentrate on hand beginning of the reporting period;
</P>
<P>(2) Concentrate on hand end of the reporting period;
</P>
<P>(3) Concentrate produced;
</P>
<P>(4) Concentrate received; and
</P>
<P>(5) Specific disposition of concentrate such as “used in reconstitution,” “removed for export,” “removed to foreign-trade zone,” or “transferred to other breweries.”
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5415)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40358, July 28, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 25.297" NODE="27:1.0.1.1.20.21.395.7" TYPE="SECTION">
<HEAD>§ 25.297   Report of Operations, Form 5130.9 or Form 5130.26.</HEAD>
<P>(a) <I>Monthly report of operations.</I> Except as provided in paragraph (b) of this section, each brewer shall prepare and submit a monthly report of brewery operations on Form 5130.9.
</P>
<P>(b) <I>Quarterly report of operations.</I> (1) For calendar quarters commencing on or after January 1, 2015, a brewer who was liable for not more than $50,000 in taxes with respect to beer imposed by 26 U.S.C. 5051 and 7652 in the preceding calendar year and reasonably expects to be liable for not more than $50,000 in such taxes during the current calendar year shall file quarterly Form 5130.9 or Form 5130.26 (or any successor forms). For purposes of this section, “reasonably expects” means that the brewer was liable for not more than $50,000 in taxes the previous calendar year and that there is no other existing or anticipated circumstance known to the brewer (such as an increase in production capacity) that would cause the brewer's liability to increase beyond that level in the current calendar year.
</P>
<P>(2) If a brewer determines that it will be liable for more than $50,000 in taxes with respect to beer imposed by 26 U.S.C. 5051 and 7652 during the current calendar year, the brewer shall file Form 5130.9 monthly beginning with the first month during which the tax liability exceeds $50,000, and shall concurrently file Form 5130.9 for any previous month of that quarter. When filing the first monthly report, a brewer shall state on the form that it will be liable for more than $50,000 in taxes for the current calendar year and will henceforth submit monthly filings. The brewer shall then continue to file Form 5130.9 for each subsequent month of that calendar year.
</P>
<P>(3) The appropriate TTB officer may at any time require a brewer who is filing Form 5130.9 or Form 5130.26 quarterly to file such report monthly on Form 5130.9 if there is a jeopardy to the revenue.
</P>
<P>(c) <I>Retention.</I> The brewer shall retain a copy of Form 5130.9 or Form 5130.26 (or any successor form) as part of the brewery records.


</P>
<SECAUTH TYPE="N">(26 U.S.C. 5415, 5555)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-345, 58 FR 40358, July 28, 1993, as amended by T.D. ATF-437, 66 FR 5480, Jan. 19, 2001; T.D. TTB-123, 79 FR 58679, Sept. 30, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 25.298" NODE="27:1.0.1.1.20.21.395.8" TYPE="SECTION">
<HEAD>§ 25.298   Excise tax return, Form 5000.24.</HEAD>
<P>All entries on the excise tax return, Form 5000.24, will be fully supported by accurate and complete records. The brewer shall file a copy of Form 5000.24 as a part of the records at the brewery.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended, 1390, as amended, 1395, as amended (26 U.S.C. 5061, 5415, 5555))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.299" NODE="27:1.0.1.1.20.21.395.9" TYPE="SECTION">
<HEAD>§ 25.299   Execution under penalties of perjury.</HEAD>
<P>When a return, form, or other document is required by this part or in the instruction on or with the return, form, or other document to be executed under the penalties of perjury, as defined in § 25.11, it will be so executed and will be signed by the brewer or other duly authorized person.
</P>
<SECAUTH TYPE="N">(Act of August 16, 1954, 68A Stat. 749, as amended (26 U.S.C. 6065))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.300" NODE="27:1.0.1.1.20.21.395.10" TYPE="SECTION">
<HEAD>§ 25.300   Retention and preservation of records.</HEAD>
<P>(a) <I>Place of maintenance.</I> Records required by this part will be prepared and kept by the brewer at the brewery where the operation or transaction occurs and will be available for inspection by any appropriate TTB officer during business hours.
</P>
<P>(b) <I>Reproduction of original records.</I> Whenever any record, because of its condition, becomes unsuitable for its intended or continued use, the brewer shall reproduce the record by a process under § 25.301. The reproduced record will be treated and considered for all purposes as though it were the original record, and all provisions of law applicable to the original are applicable to the reproduction.
</P>
<P>(c) <I>Retention of records.</I> Records required by this part will be preserved for a period of not less than three years from the date thereof or the date of the last entry required to be made thereon, whichever is later. The appropriate TTB officer may require records to be kept for an additional period not exceeding three years in any case where such retention is deemed necessary or advisable for the protection of the revenue.
</P>
<P>(d) <I>Data Processing.</I> (1) Notwithstanding any other provision of this section, record data maintained on data processing equipment may be kept at a location other than the brewery if the original transaction (source) records required by §§ 25.292-25.298 are kept available for inspection at the brewery.
</P>
<P>(2) Data which has been accumulated on cards, tapes, discs, or other accepted record media will be retrievable within five business days.
</P>
<P>(3) The applicable data processing program will be made available for examination if requested by an appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))


</SECAUTH>
</DIV8>


<DIV8 N="§ 25.301" NODE="27:1.0.1.1.20.21.395.11" TYPE="SECTION">
<HEAD>§ 25.301   Photographic copies of records.</HEAD>
<P>(a) <I>General.</I> Brewers may record, copy, or reproduce records required by this part. Brewers may use any process which accurately reproduces the original record and which forms a durable medium for reproducing and preserving the original record.
</P>
<P>(b) <I>Copies of records treated as original records.</I> Whenever records are reproduced under this section, the reproduced records will be preserved in conveniently accessible files, and provisions will be made for examining, viewing and using the reproduced record the same as if it were the original record, and it will be treated and considered for all purposes as through it were the original record. All provisions of law and regulations applicable to the original are applicable to the reproduced record. As used in this section, “original record” means the record required by this part to be maintained or preserved by the brewer, even though it may be an executed duplicate or other copy of the document.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1395, as amended (26 U.S.C. 5415, 5555))


</SECAUTH>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="26" NODE="27:1.0.1.1.21" TYPE="PART">
<HEAD>PART 26—LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 5051, 5061, 5111-5114, 5121, 5122-5124, 5131-5132, 5207, 5232, 5271, 5275, 5301, 5314, 5555, 6001, 6038E, 6065, 6109, 6301, 6302, 6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303, 9304, 9306.


</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>20 FR 6077, Aug. 20, 1955, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. ATF-459, 66 FR 38550, July 25, 2001.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 26 appear by T.D. ATF-451, 66 FR 21668, 21669, May 1, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.21.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 26.1" NODE="27:1.0.1.1.21.1.413.1" TYPE="SECTION">
<HEAD>§ 26.1   Alcoholic products coming into the United States from Puerto Rico and the Virgin Islands.</HEAD>
<P>This part, “Liquors and Articles from Puerto Rico and the Virgin Islands,” relates to:
</P>
<P>(a) The production, bonded warehousing, and withdrawal of distilled spirits and denatured spirits, and the manufacture of articles in Puerto Rico and the Virgin Islands to be brought into the United States free of tax;
</P>
<P>(b) The collection of internal revenue taxes on taxable alcoholic products coming into the United States from Puerto Rico and the Virgin Islands;
</P>
<P>(c) The transfer, without payment of tax, of Puerto Rican and Virgin Islands spirits in bulk containers or by pipeline from customs custody to the bonded premises of a distilled spirits plant qualified under part 19 of this chapter, of Virgin Islands wine in bulk containers from customs custody to a bonded wine cellar qualified under part 24 of this chapter, and of Virgin Islands beer in bulk containers from customs custody to a brewery qualified under part 25 of this chapter;
</P>
<P>(d) The deposit of the distilled spirits excise taxes, limited to the lesser of $10.50 or the rate in section 5001(a)(1) per proof gallon, into the Treasuries of Puerto Rico and the Virgin Islands on all articles containing distilled spirits as defined in section 7652, produced by those two U.S. possessions, and transported into the United States (less certain amounts); and
</P>
<P>(e) The deposit of the distilled spirits excise taxes, limited to the lesser of $10.50 or the rate in section 5001(a)(1) per proof gallon, into the Treasuries of Puerto Rico and the Virgin Islands on all rum imported into the United States (including rum from possessions other than Puerto Rico and the Virgin Islands), less certain amounts.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0277)
</APPRO>
<SECAUTH TYPE="N">(Sec. 221, Pub. L. 98-67, 97 Stat. 369 (26 U.S.C. 7652)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-175, 49 FR 20803, May 16, 1984, as amended by T.D. ATF-203, 50 FR 15887, Apr. 23, 1985; T.D. TTB-145, 81 FR 94199, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.2" NODE="27:1.0.1.1.21.1.413.2" TYPE="SECTION">
<HEAD>§ 26.2   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part, including applications, reports, returns, and records. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46920, Sept. 23, 1981, as amended by T.D. ATF-249, 52 FR 5963, Feb. 27, 1987; T.D. ATF-372, 41 FR 20725, May 8, 1996; T.D. ATF-451, 66 FR 21668, May 1, 2001; T.D. TTB-44, 71 FR 16943, Apr. 4, 2006; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.3" NODE="27:1.0.1.1.21.1.413.3" TYPE="SECTION">
<HEAD>§ 26.3   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.26, Delegation of the Administrator's Authorities in 27 CFR Part 26, Liquors and Articles From Puerto Rico and the Virgin Islands. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16944, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.21.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 26.11" NODE="27:1.0.1.1.21.2.413.1" TYPE="SECTION">
<HEAD>§ 26.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular and vice versa, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.26, Delegation of the Administrator's Authorities in 27 CFR Part 26, Liquors and Articles from Puerto Rico and the Virgin Islands.
</P>
<P><I>Article.</I> Any preparation unfit for beverage use, made with or containing:
</P>
<P>(1) Wine or beer;
</P>
<P>(2) Distilled spirits or industrial spirits; or
</P>
<P>(3) Denatured spirits when such preparation is not manufactured under the provisions of this chapter.
</P>
<P><I>Bank.</I> Any commercial bank.
</P>
<P><I>Banking day.</I> Any day during which a bank is open to the public for carrying on substantially all its banking functions.
</P>
<P><I>Beer.</I> Beer, ale, porter, stout, and other similar fermented beverages (including sake or similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume, brewed, or produced from malt, wholly or in part, or from any substitute therefor.
</P>
<P><I>Bonded premises of a distilled spirits plant.</I> The bonded premises of a distilled spirits plant as described in part 19 of this chapter. This term includes premises described in the preceding sentence even if the distilled spirits plant proprietor, as authorized under the exemption set forth in § 19.151(d) of this chapter, has not provided a bond for the premises.
</P>
<P><I>Bonded wine cellar.</I> Premises established under part 24 of this chapter.
</P>
<P><I>Bottler.</I> Any person required to hold a basic permit as a bottler under 27 U.S.C. 203(b)(1).
</P>
<P><I>Brewery.</I> The land and buildings described in the brewer's notice, TTB Form 5130.10, where beer is to be produced and packaged.
</P>
<P><I>Bulk container.</I> When used in the context of distilled spirits, the term “bulk container” means any container having a capacity larger than one wine gallon. When used in the context of wine, the term “bulk container” means any container having a capacity larger than 60 liters. When used in the context of beer, the term “bulk container” means any container having a capacity larger than one barrel of 31 gallons.
</P>
<P><I>Bulk distilled spirits.</I> The term “bulk distilled spirits” means distilled spirits in a container having a capacity in excess of 1 gallon.
</P>
<P><I>Bureau of Alcoholic Beverage Taxes.</I> Bureau of Alcoholic Beverage Taxes of the Commonwealth of Puerto Rico.
</P>
<P><I>Business day.</I> Any day, other than a Saturday, Sunday, or a legal holiday. (The term legal holiday includes all holidays in the District of Columbia and all legal holidays in the Commonwealth of Puerto Rico.)
</P>
<P><I>Calendar quarter and quarterly.</I> These terms refer to the three-month periods ending on March 31, June 30, September 30, or December 31.
</P>
<P><I>Commercial bank.</I> A bank, whether or not a member of the Federal Reserve System, which has access to the Federal Reserve Communications System (FRCS) or Fedwire. The “FRCS” or “Fedwire” is a communications network that allows Federal Reserve System member banks to effect a transfer of funds for their customers (or other commercial banks) to the Treasury Account at the Federal Reserve Bank of New York.
</P>
<P><I>Customs officer.</I> An officer of U.S. Customs and Border Protection (CBP) or any agent or other person authorized by law to perform the duties of such an officer.
</P>
<P><I>Denatured spirits.</I> Industrial spirits denatured in accordance with approved formulas in distilled spirits plants established and operated under the provisions of this chapter relating to the establishment and operation of plants qualified to denature spirits in the United States or, in respect of a product of the Virgin Islands, shall also mean spirits denatured in accordance with approved formulas in plants established under the provisions of the Virgin Islands regulations and shall include, unless otherwise limited, both completely and specially denatured spirits.
</P>
<P><I>Director of the service center.</I> A director of an internal revenue service center.
</P>
<P><I>Distilled spirits or spirits.</I> That substance known as ethyl alcohol, ethanol, or spirits of wine, in any form (including all dilutions and mixtures thereof, from whatever source or by whatever process produced), but shall not include industrial spirits as defined in this part except when used in reference to such spirits which would be subject to tax if brought into the United States.
</P>
<P><I>District director.</I> A district director of internal revenue.
</P>
<P><I>District director of customs.</I> The district director of customs at a headquarters port of the district (except the district of New York, N.Y.); the area directors of customs in the district of New York, N.Y.; and the port director at a port not designated as a headquarters port.
</P>
<P><I>Effective tax rate.</I> The net tax rate after reduction for any credit allowable under 26 U.S.C. 5010 for wine and flavor content at which the tax imposed on distilled spirits by 26 U.S.C. 7652 is paid or determined.
</P>
<P><I>Electronic fund transfer or EFT.</I> Any transfer of funds effected by a proprietor's commercial bank, either directly or through a correspondent banking relationship, via the Federal Reserve Communications System (FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of New York.
</P>
<P><I>Eligible article.</I> Any medicine, medicinal preparation, food product, flavor, flavoring extract or perfume which contains distilled spirits, is unfit for beverage purposes, and has been or will be brought into the United States from Puerto Rico or the Virgin Islands under the provisions of 26 U.S.C. 7652(g).
</P>
<P><I>Eligible flavor.</I> A flavor which:
</P>
<P>(1) Is of a type that is eligible for drawback of tax under 26 U.S.C. 5114,
</P>
<P>(2) Was not manufactured on the premises of a distilled spirits plant, and
</P>
<P>(3) Was not subjected to distillation on distilled spirits plant premises such that the flavor does not remain in the finished product.
</P>
<P><I>Eligible wine.</I> Wine on which tax would be imposed by paragraph (1), (2), or (3) of 26 U.S.C. 5041(b) but for its removal to distilled spirits plant premises and which has not been subject to distillation at a distilled spirits plant after receipt in bond.
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the return, claim, form, or other document, or where no form of declaration is prescribed, with the declaration: “I declare under the penalties of perjury that this ________ (insert type of document, such as statement, report, certificate, application, claim, or other document), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete.”
</P>
<P><I>Fiscal year.</I> The period which begins October 1 and ends on the following September 30.
</P>
<P><I>Gallon or wine gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>Importer.</I> Any person who brings distilled spirits, wines, or beer into the United States from the Virgin Islands.
</P>
<P><I>Industrial spirits.</I> As to products of Puerto Rico, distilled spirits produced and warehoused at and withdrawn from distilled spirits plants established and operated under the provisions of this chapter relating to the establishment of such plants and the production, bonded warehousing, and withdrawal from bond of distilled spirits in the United States, or as to products of the Virgin Islands, distilled spirits produced, warehoused, and withdrawn under Virgin Islands regulations.
</P>
<P><I>IRC registry number.</I> The number assigned by TTB to each distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, bonded wine warehouse, or brewery upon approval of an application made pursuant to Internal Revenue Code of 1986 requirements (26 U.S.C. 5171, 5351-5353, or 5401).
</P>
<P><I>Kind.</I> As applied to spirits, kind shall mean class and type as prescribed in 27 CFR part 5. As applied to wines, kind shall mean the classes and types of wines as prescribed in 27 CFR part 4.
</P>
<P><I>Liquor bottle.</I> A bottle made of glass or earthenware, or of other suitable material approved by the Food and Drug Administration, which has been designed or is intended for use as a container for distilled spirits for sale for beverage purposes and which has been determined by the appropriate TTB officer to adequately protect the revenue.
</P>
<P><I>Liquors.</I> Industrial spirits, distilled spirits, liqueurs, cordials and similar compounds, wines, and beer or any alcoholic preparation fit for beverage use.
</P>
<P><I>Natural wine.</I> The product of the juice or must of sound, ripe grapes or other sound, ripe fruit (including berries) made with any proper cellar treatment and containing not more than 21 percent by weight (21 degrees Brix dealcoholized wine) of total solids. For purposes of this definition, “proper cellar treatment” means a production practice or procedure authorized for natural wine by part 24 of this chapter, or, in the case of natural wine produced and imported subject to an international agreement or treaty, those practices and procedures acceptable to the United States under that agreement or treaty.
</P>
<P><I>Permit.</I> A formal written authorization of the Secretary of the Treasury of Puerto Rico.
</P>
<P><I>Person.</I> An individual, a trust, an estate, a partnership, an association, a company, or a corporation.
</P>
<P><I>Proof gallon.</I> A gallon of liquid at 60 degrees Fahrenheit which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as unity or the alcoholic equivalent thereof.
</P>
<P><I>Proof liter.</I> A liter of liquid at 60 degrees Fahrenheit which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as unity or the alcoholic equivalent thereof.
</P>
<P><I>Rectifier.</I> Any person required to hold a rectifier's basic permit under 27 U.S.C. 203(b)(1).
</P>
<P><I>Revenue Agent.</I> Any duly authorized Commonwealth Internal Revenue Agent of the Department of the Treasury of Puerto Rico.
</P>
<P><I>Secretary.</I> The Secretary of the Treasury of Puerto Rico.
</P>
<P><I>Secretary or his delegate.</I> The Secretary or any officer or employee of the Department of the Treasury of Puerto Rico duly authorized by the Secretary to perform the function mentioned or described in this part. 
</P>
<P><I>Taxpaid.</I> As used in this part with respect to liquors or articles of Puerto Rican manufacture, includes liquors or articles on which the tax was computed but with respect to which payment was deferred under the provisions of subpart E of this part.
</P>
<P><I>Treasury Account.</I> The Department of the Treasury's General Account at the Federal Reserve Bank of New York.
</P>
<P><I>United States.</I> The States and the District of Columbia.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>Virgin Islands regulations.</I> Regulations adopted or issued by the Governor of the Virgin Islands, or by the Governor's duly authorized agents, with the concurrence of the Secretary of the Treasury of the United States or the Secretary's delegate, under the provisions of 26 U.S.C. 5314, as amended, and § 26.201a.
</P>
<P><I>Wine.</I> Still wine, vermouth, or other aperitif wine, imitation, substandard, or artificial wine, compounds designated as wine, flavored, rectified, or sweetened wine, champagne or sparkling wine, and artificially carbonated wine, containing not over 24 percent of alcohol by volume. Wines containing more than 24 percent of alcohol by volume are classed and taxed as distilled spirits.


</P>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13551, Mar. 31, 1978]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 26.11, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.21.3" TYPE="SUBPART">
<HEAD>Subpart C [Reserved]</HEAD>

</DIV6>


<DIV6 N="Ca" NODE="27:1.0.1.1.21.4" TYPE="SUBPART">
<HEAD>Subpart Ca—Rum Imported Into the United States From Areas Other Than Puerto Rico and the Virgin Islands</HEAD>


<DIV8 N="§ 26.30" NODE="27:1.0.1.1.21.4.413.1" TYPE="SECTION">
<HEAD>§ 26.30   Excise taxes.</HEAD>
<P>Distilled spirits excise taxes, less the estimated amounts necessary for payment of refunds and drawbacks, collected on all rum imported into the United States (including rum from possessions other than Puerto Rico and the Virgin Islands), will be deposited into the Treasuries of Puerto Rico and the Virgin Islands according to the formula described in § 26.31. The amount deposited into the Treasuries of Puerto Rico and the Virgin Islands shall be the lesser of $10.50, or the rate imposed by 26 U.S.C. 5001(a)(1) (including adjustments to the effective tax rate under 26 U.S.C. 5010), on each proof gallon of rum imported into the United States.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-203, 50 FR 15888, Apr. 23, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38550, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.31" NODE="27:1.0.1.1.21.4.413.2" TYPE="SECTION">
<HEAD>§ 26.31   Formula.</HEAD>
<P>(a) The amount of excise taxes collected on rum that is imported into the United States from areas other than Puerto Rico and the Virgin Islands shall be deposited into the Treasuries of Puerto Rico and the Virgin Islands at the rate prescribed in 26 U.S.C. 7652(f). The distribution of such amount between Puerto Rico and the Virgin Islands shall be computed by using permanent base percentages, which represent the excise taxes collected on rum brought into the United States from Puerto Rico and from the Virgin Islands during fiscal year 1983. The base percentages are 87.626889 percent for Puerto Rico and 12.373111 percent for the Virgin Islands. The formula shall be as follows:
</P>
<P>(1) Take the total amount of excise taxes collected on all rum brought or imported into the United States from all areas (including Puerto Rico and the Virgin Islands) during the previous fiscal year (October 1-September 30) and multiply that amount by 0.87626889 to determine the share of the entire U.S. rum market that will be allotted to Puerto Rico and by 0.12373111 to determine the share of the entire U.S. rum market that will be allotted to the Virgin Islands;
</P>
<P>(2) Subtract from the share allotted to Puerto Rico under paragraph (a)(1) of this section the excise taxes collected on rum brought into the United States from Puerto Rico during the previous fiscal year, and subtract from the share allotted to the Virgin Islands under paragraph (a)(1) of this section the excise taxes collected on rum imported into the United States from the Virgin Islands during the previous fiscal year, to determine each possession's loss or gain in excise taxes in relation to the previous fiscal year's U.S. rum market. Then divide each result by the total excise taxes collected on rum imported into the United States during the previous fiscal year from areas other than Puerto Rico and the Virgin Islands.
</P>
<P>(b) Notwithstanding the formula prescribed in paragraph (a) above, the Virgin Islands' share of the excise taxes on rum imported into the United States from areas other than Puerto Rico and the Virgin Islands shall not exceed 49 percent nor drop below 12.373111 percent. Puerto Rico's share of the excise taxes on rum imported into the United States from areas other than Puerto Rico and the Virgin Islands shall not exceed 87.626889 percent nor drop below 51 percent.
</P>
<P>(c) The percentage for the distribution of the excise taxes collected on rum imported into the United States from areas other than Puerto Rico and the Virgin Islands, that will be paid over to the Treasuries of Puerto Rico and the Virgin Islands, shall be effective on March 1 of each year, and shall remain in effect until March 1 of the following year.
</P>
<P>(d) The method for transferring the excise tax collections on rum imported from areas other than Puerto Rico and the Virgin Islands, into the Treasuries of Puerto Rico and the Virgin Islands shall be the same as the method used for transferring excise taxes into the Treasury of Puerto Rico on distilled spirits (with an alcohol content of at least 92 percent rum) brought into the United States from Puerto Rico.
</P>
<P>(e) The formula prescribed in this section shall take effect on March 1, 1987. Prior to that date, Puerto Rico shall continue to receive 86.4 percent of the eligible excise taxes on rum imported from areas other than Puerto Rico and the Virgin Islands. The Virgin Islands shall continue to receive 13.6 percent of these eligible excise taxes until March 1, 1987.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-233, 51 FR 28078, Aug. 5, 1986; 52 FR 2222, Jan. 21, 1987; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="Cb" NODE="27:1.0.1.1.21.5" TYPE="SUBPART">
<HEAD>Subpart Cb—Products Coming Into the United States From Puerto Rico</HEAD>


<DIV8 N="§ 26.35" NODE="27:1.0.1.1.21.5.413.1" TYPE="SECTION">
<HEAD>§ 26.35   Taxable status.</HEAD>
<P>(a) Liquors coming into the United States from Puerto Rico, except as provided in § 26.36, are subject to a tax equal to the internal revenue tax imposed on the production in the United States of like liquors. Articles coming into the United States from Puerto Rico, except as provided in § 26.36, are subject to tax on the liquors contained therein at the rates imposed in the United States on like liquors of domestic production.
</P>
<P>(b) The excise taxes collected on distilled spirits or articles containing distilled spirits shall be deposited into the Treasury of Puerto Rico only if at least 92 percent of the alcoholic content of such products is rum. The amount deposited into the Treasury of Puerto Rico shall not exceed the lesser of $10.50, or the rate imposed by 26 U.S.C. 5001(a)(1) (including adjustments to the effective tax rate under 26 U.S.C. 5010), on each proof gallon of such distilled spirits or articles, other than eligible articles, containing distilled spirits coming into the United States or consumed on the island. Such excise tax deposits will be reduced by the estimated amount necessary for payment of refunds and drawbacks.
</P>
<P>(c) Except for products described in 26 U.S.C. 7652(c), no excise taxes shall be deposited into the Treasury of Puerto Rico if an excise tax subsidy is provided by Puerto Rico that is of a kind different from, or in an amount per value or volume of production greater than, any subsidy offered by Puerto Rico to industries manufacturing products not subject to Federal excise tax.
</P>
<SECAUTH TYPE="N">(Sec. 2682, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 7652))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-175, 49 FR 20804, May 16, 1984, as amended by T.D. ATF-203, 50 FR 15888, Apr. 23, 1985; T.D. ATF-263, 52 FR 46593, Dec. 9, 1987. Redesignated and amended by T.D. ATF-459, 66 FR 38550, July 25, 2001] 


</CITA>
</DIV8>


<DIV8 N="§ 26.36" NODE="27:1.0.1.1.21.5.413.2" TYPE="SECTION">
<HEAD>§ 26.36   Products exempt from tax.</HEAD>
<P>(a) <I>General.</I> Industrial spirits, denatured spirits, and products made with denatured spirits in Puerto Rico may be brought into the United States without incurring tax liability imposed by 26 U.S.C. 5001 or 7652.
</P>
<P>(b) <I>Industrial spirits.</I> A distiller of industrial spirits who registers and files a bond as a distilled spirits plant in accordance with part 19 of this chapter may ship industrial spirits to a tax-free alcohol user in the United States who holds a permit issued under part 22 of this chapter.. These shipments shall be made in accordance with the requirements of parts 19 and 22 of this chapter.
</P>
<P>(c) <I>Denatured spirits.</I> A distiller who registers and files a bond as a distilled spirits plant in accordance with part 19 of this chapter and who denatures spirits in accordance with parts 19 and 21 of this chapter may ship completely denatured alcohol to anyone in the United States, and may ship specially denatured spirits to a dealer or user of specially denatured spirits in the United States or Puerto Rico who holds a permit issued under part 20 of this chapter. These shipments shall be made in accordance with the requirements of parts 19 and 20 of this chapter, and subpart Ia of this part.
</P>
<P>(d) <I>Products made with denatured spirits.</I> (1) A person in Puerto Rico who manufactures products with completely denatured alcohol in accordance with the requirements of part 20 of this chapter may ship those products to the United States in accordance with the requirements of part 20 of this chapter, and subpart Ia of this part.
</P>
<P>(2) A person in Puerto Rico who manufactures products with specially denatured spirits may ship those products to the United States if that person (i) obtains a permit to use specially denatured spirits under part 20 of this chapter, and (ii) complies with the requirements of part 20 of this chapter and subpart Ia of this part relating to the manufacture and shipment of those products.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9198, Mar. 6, 1985; T.D. ATF-199, 50 FR 20099, May 14, 1985, as amended by T.D. ATF-271, 53 FR 17559, May 17, 1988]


</CITA>
</DIV8>


<DIV8 N="§§ 26.36a-26.36b" NODE="27:1.0.1.1.21.5.413.3" TYPE="SECTION">
<HEAD>§§ 26.36a-26.36b   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 26.36c" NODE="27:1.0.1.1.21.5.413.4" TYPE="SECTION">
<HEAD>§ 26.36c   Shipments of bulk distilled spirits to the United States without payment of tax.</HEAD>
<P>Bulk distilled spirits may be brought into the United States from Puerto Rico without payment of tax for transfer from customs custody to the bonded premises of a distilled spirits plant qualified under part 19 of this chapter. Such shipments are subject to the provisions of subpart Ib.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71709, Dec. 11, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 26.37" NODE="27:1.0.1.1.21.5.413.5" TYPE="SECTION">
<HEAD>§ 26.37   Alcohol and Tobacco Tax and Trade Bureau Officers.</HEAD>
<P>Appropriate TTB officers are authorized to collect internal revenue taxes on liquors and articles subject to tax, which are to be shipped to the United States.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16944, Apr. 4, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 26.38" NODE="27:1.0.1.1.21.5.413.6" TYPE="SECTION">
<HEAD>§ 26.38   Containers of distilled spirits.</HEAD>
<P>Containers of distilled spirits brought into the United States from Puerto Rico, having a capacity of not more than 1 gallon (3.785 liters), shall conform to the requirements of subpart P of this part.
</P>
<CITA TYPE="N">[T.D. ATF-34, 41 FR 46863, Oct. 26, 1976]


</CITA>
</DIV8>


<DIV8 N="§ 26.39" NODE="27:1.0.1.1.21.5.413.7" TYPE="SECTION">
<HEAD>§ 26.39   Labels.</HEAD>
<P>All labels affixed to bottles of liquors coming into the United States shall conform to the requirements of the Federal Alcohol Administration Act and implementing regulations (parts 4, 5, and 7 of this chapter).
</P>
<CITA TYPE="N">[T.D. ATF-48, 44 FR 55851, Sept. 28, 1979] 


</CITA>
</DIV8>


<DIV8 N="§ 26.40" NODE="27:1.0.1.1.21.5.413.8" TYPE="SECTION">
<HEAD>§ 26.40   Marking containers of distilled spirits.</HEAD>
<P>The distiller, rectifier, or bottler shall serially number each case, barrel, cask, or similar container of distilled spirits filled for shipment to the United States. In addition to the serial number of the container, the distiller, rectifier, or bottler shall plainly print, stamp, or stencil with durable coloring material, in letters and figures not less than one-half inch high, on the head of each barrel, cask or similar container or on one side of each case, as follows:
</P>
<P>(a) The name of the distiller, rectifier, or bottler.
</P>
<P>(b) The brand name and kind of liquor;
</P>
<P>(c) The wine and proof gallon contents; or, for bottles filled according to the metric standards of fill prescribed by § 5.47a, of this chapter, the contents in liters and the proof of the spirits; and
</P>
<P>(d) In the case of barrels or casks, the serial number of the permit to ship, Form 487-B, prefixed by the number of such form (e.g., “487-B-61-1”)
</P>
<P>(e) In the case of bulk containers shipped to the United States under subpart Ib, the serial number of the application and permit to ship, TTB Form 5110.31, instead of the serial number of Form 487-B.
</P>
<CITA TYPE="N">[T.D. ATF-43, 42 FR 30836, June 17, 1977, as amended by T.D. ATF-62, 44 FR 71709, Dec. 11, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 26.41" NODE="27:1.0.1.1.21.5.413.9" TYPE="SECTION">
<HEAD>§ 26.41   Destruction of marks and brands.</HEAD>
<P>The marks, brands, and serial numbers required by this part to be placed on barrels, casks, or similar containers, or cases, shall not be removed or obscured or obliterated before the contents thereof have been removed.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 1358, as amended, 26 U.S.C. 5205)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8548, Mar. 1, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 26.43" NODE="27:1.0.1.1.21.5.413.10" TYPE="SECTION">
<HEAD>§ 26.43   Samples.</HEAD>
<P>The appropriate TTB officer may require samples of liquors and articles to be submitted whenever desired for laboratory analysis in order to determine the rates of tax applicable thereto.
</P>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2250, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV7 N="413" NODE="27:1.0.1.1.21.5.413" TYPE="SUBJGRP">
<HEAD>Dealer Registration and Recordkeeping</HEAD>


<DIV8 N="§ 26.44" NODE="27:1.0.1.1.21.5.413.11" TYPE="SECTION">
<HEAD>§ 26.44   Liquor dealer registration and recordkeeping.</HEAD>
<P>Every person bringing liquors into the United States from Puerto Rico who sells, or offers for sale, such liquors must register and keep records as a wholesale dealer in liquor or as a retail dealer in liquor in accordance with part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5123, 5124.)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37405, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 26.45" NODE="27:1.0.1.1.21.5.413.12" TYPE="SECTION">
<HEAD>§ 26.45   Warehouse receipts covering distilled spirits.</HEAD>
<P>The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, every person bringing distilled spirits into the United States from Puerto Rico who sells, or offers for sale, warehouse receipts for distilled spirits stored in warehouses, or elsewhere, must register and keep records as a dealer in liquors at the place where the warehouse receipts are sold, or offered for sale, in accordance with part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5123, 5124)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37405, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§§ 26.46-26.47" NODE="27:1.0.1.1.21.5.413.13" TYPE="SECTION">
<HEAD>§§ 26.46-26.47   [Reserved]</HEAD>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.21.6" TYPE="SUBPART">
<HEAD>Subpart D—Formulas for Products From Puerto Rico</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>44 FR 71709, Dec. 11, 1979, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 26.50" NODE="27:1.0.1.1.21.6.414.1" TYPE="SECTION">
<HEAD>§ 26.50   Formulas for liquors.</HEAD>
<P>(a) <I>Distilled spirits products.</I> Except for products which are exempt from tax, as specified in § 26.36, formulas are required by part 5 of this chapter for distilled spirits products shipped to the United States from Puerto Rico. If a formula is submitted to cover only the production of spirits which are to be transferred to the bonded premises of a DSP under 26 U.S.C. 5232, the formula shall include a statement to that effect. If any product contains liquors made outside of Puerto Rico, the country of origin for each such liquor shall be stated on the formula. These formulas shall be submitted on TTB Form 5110.38, in accordance with § 26.54.
</P>
<P>(b) <I>Wine.</I> Persons in Puerto Rico who ship wine to the United States shall comply with the formula requirements of part 24 of this chapter. If any wine contains liquors made outside of Puerto Rico, the country of origin for each such liquor shall be stated on the formula. All formulas required by this paragraph shall be submitted on TTB Form 698 Supplemental, in accordance with § 26.54.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0204)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8549, Mar. 1, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38551, July 25, 2001; T.D. TTB-91, 76 FR 5479, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 26.50a" NODE="27:1.0.1.1.21.6.414.2" TYPE="SECTION">
<HEAD>§ 26.50a   Verification of eligible flavors.</HEAD>
<P>(a) Any person who, after December 1, 1990, ships to the United States any distilled spirits on which the tax has been or is to be paid or determined at an effective tax rate based in part on the alcohol content derived from any eligible flavor not previously approved on TTB Form 5530.5 (1678) or 5150.19 shall, before the first tax determination at that rate, request and receive a statement of eligibility for each flavor to be used in the computation of the effective tax rate.
</P>
<P>(b) To receive a statement of eligibility, the person shipping the distilled spirits shall submit to the TTB Alcohol and Tobacco Laboratory, 6000 Ammendale Road, Ammendale, MD 20705, the following:
</P>
<P>(1) An 8-ounce sample; and
</P>
<P>(2) A statement of composition using TTB Form 5154.1 or a letterhead request that lists the—
</P>
<P>(i) Name and percentage of alcohol by volume of the flavor; and
</P>
<P>(ii) Name and quantity of each ingredient used in the manufacture of the flavor.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0203)
</APPRO>
<SECAUTH TYPE="N">(Act of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 U.S.C. 7652); Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18066, Apr. 30, 1990, as amended by T.D. ATF-451, 66 FR 21669, May 1, 2001; T.D. TTB-44, 71 FR 16944, Apr. 4, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 26.51" NODE="27:1.0.1.1.21.6.414.3" TYPE="SECTION">
<HEAD>§ 26.51   Formulas for articles, eligible articles and products manufactured with denatured spirits.</HEAD>
<P>(a) <I>Formulas for articles and eligible articles.</I> Formulas for articles made with distilled spirits must show the quantity and proof of the distilled spirits used, and the percentage of alcohol by volume contained in the finished product. Formulas for articles made with beer or wine must show the kind and quantity thereof (liquid measure), and the percent of alcohol by volume of such beer or wine. Formulas and samples for eligible articles are required in accordance with subpart F of part 17 of this chapter.
</P>
<P>(b) <I>Formulas for products manufactured with denatured spirits.</I> Products manufactured with denatured spirits shall be manufactured in accordance with the formula requirements of part 20 of this chapter for similar products made in the United States.
</P>
<P>(1) Products may be made with completely denatured alcohol for sale under brand names under part 20 of this chapter without obtaining an approved formula. If ingredients are added in sufficient quantities to materially change the composition and character of the completely denatured alcohol, the product is not classified as completely denatured alcohol and may not be marked, branded, or sold as completely denatured alcohol.
</P>
<P>(2) Products made with specially denatured spirits shall be made in accordance with (i) a general-use formula approved as provided in part 20 of this chapter, or (ii) an approved formula on Form 5150.19, or previously approved on TTB Form 1479-A or 27-B Supplemental.
</P>
<P>(c) <I>Formulas required.</I> Formulas required by this section shall be submitted on Form 5150.19, except that formulas for eligible articles shall be submitted on Form 5154.1 (formerly 1678). Formulas shall be submitted in accordance with § 26.54. Any formula for an eligible article approved on Form 5150.19 prior to October 23, 1986 shall continue to be valid until revoked or voluntarily surrendered. Any person holding such a formula is not required to submit a new formula.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0494)
</APPRO>
<CITA TYPE="N">[44 FR 71709, Dec. 11, 1979, as amended by T.D. ATF-199, 50 FR 9198, Mar. 6, 1985; T.D. ATF-263, 52 FR 46593, Dec. 9, 1987; T.D. ATF-379, 61 FR 31427, June 20, 1996. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.52" NODE="27:1.0.1.1.21.6.414.4" TYPE="SECTION">
<HEAD>§ 26.52   Still wines containing carbon dioxide.</HEAD>
<P>(a) <I>General.</I> Still wines may contain not more than 0.392 gram of carbon dioxide per 100 milliliters of wine; except that a tolerance to this maximum limitation, not to exceed 0.009 gram of carbon dioxide per 100 milliliters of wine, will be allowed where the amount of carbon dioxide in excess of 0.392 gram per 100 milliliters of wine was due to mechanical variations which could not be completely controlled under good commercial practices. Such tolerance will not be allowed where it is found that the limitation of 0.392 gram of carbon dioxide per 100 milliliters of wine is continuously or intentionally exceeded, or where the variation results from the use of methods or equipment not in accord with good commercial practices.
</P>
<P>(b) <I>Notice required.</I> Proprietors intending to add carbon dioxide to, or retain carbon dioxide in, still wines to be shipped to the United States shall submit a notice to the appropriate TTB officer. The notice shall show the name and address of the proprietor and shall identify the method or process, the kinds (class and type) of wine, and the type of equipment to be used. A corrected notice shall be filed if there is any change (except for minor changes) in the information contained in the notice.
</P>
<P>(c) <I>Filing and disposition of notice.</I> The notice required by paragraph (b) of this section shall be submitted in quadruplicate to the appropriate TTB officer, who shall retain one copy, forward one copy to the Secretary, and one copy to the revenue agent at the proprietor's premises, and return one copy to the proprietor. The proprietor shall keep the notice available for examination by revenue agents.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C 5041))
</SECAUTH>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-251, 52 FR 19338, May 22, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 26.53" NODE="27:1.0.1.1.21.6.414.5" TYPE="SECTION">
<HEAD>§ 26.53   Changes of formulas.</HEAD>
<P>Any change in the ingredients composing a product covered by an approved formula will necessitate the submission of a new formula.


</P>
</DIV8>


<DIV8 N="§ 26.54" NODE="27:1.0.1.1.21.6.414.6" TYPE="SECTION">
<HEAD>§ 26.54   Filing and disposition of formulas.</HEAD>
<P>Formulas required by this subpart must be submitted, and disposed of, in accordance with the instructions on the prescribed TTB form. The applicant shall maintain copies of approved formulas available for examination by revenue agents.
</P>
<CITA TYPE="N">[T.D. ATF-451, 66 FR 21669, May 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.55" NODE="27:1.0.1.1.21.6.414.7" TYPE="SECTION">
<HEAD>§ 26.55   Previously approved formulas.</HEAD>
<P>Any formula approved on Form 27-B Supplemental prior to January 1, 1980, shall continue to be valid until revoked or voluntarily surrendered. Any person holding such a formula is not required to submit a new formula. If an approved formula on Form 27-B Supplemental indicates that carbon dioxide will be added to, or retained in, still wine, the notice requirement of § 26.52 shall not apply.
</P>
<CITA TYPE="N">[44 FR 71709, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.21.7" TYPE="SUBPART">
<HEAD>Subpart E—Taxpayment of Liquors and Articles in Puerto Rico</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. 6551, 26 FR 1490, Feb. 22, 1961, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV7 N="414" NODE="27:1.0.1.1.21.7.414" TYPE="SUBJGRP">
<HEAD>Bonds</HEAD>


<DIV8 N="§ 26.61" NODE="27:1.0.1.1.21.7.414.1" TYPE="SECTION">
<HEAD>§ 26.61   General.</HEAD>
<P>Every person filing a bond under this subpart, or consent of surety on such bond, must file it in accordance with the instructions on the form.
</P>
<CITA TYPE="N">[T.D. ATF-451, 66 FR 21669, May 1, 2001]




</CITA>
</DIV8>


<DIV8 N="§ 26.62" NODE="27:1.0.1.1.21.7.414.2" TYPE="SECTION">
<HEAD>§ 26.62   Corporate surety.</HEAD>
<P>(a) Surety bonds may be given only with corporate sureties holding certificates of authority from, and subject to the limitations prescribed by, the Secretary of the Treasury of the United States, as set forth in the current revision of U.S. Treasury Department Circular 570 (Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies).
</P>
<P>(b) U.S. Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the United States Treasury Department's Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).
</P>
<CITA TYPE="N">[T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]






</CITA>
</DIV8>


<DIV8 N="§ 26.62a" NODE="27:1.0.1.1.21.7.414.3" TYPE="SECTION">
<HEAD>§ 26.62a   Filing of powers of attorney.</HEAD>
<P>Each bond, and each consent to changes in the terms of a bond, shall be accompanied by a power of attorney authorizing the agent or officer who executed the bond or consent to so act on behalf of the surety. The appropriate TTB officer who is authorized to approve the bond may, when he deems it necessary, require additional evidence of the authority of the agent or officer to execute the bond or consent.
</P>
<SECAUTH TYPE="N">(61 Stat. 648; 6 U.S.C. 6, 7)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-2, 37 FR 22736, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 26.62b" NODE="27:1.0.1.1.21.7.414.4" TYPE="SECTION">
<HEAD>§ 26.62b   Execution of powers of attorney.</HEAD>
<P>The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed original, it shall be accompanied by certification of its validity.
</P>
<SECAUTH TYPE="N">(61 Stat. 648; 6 U.S.C. 6, 7)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-2, 37 FR 22736, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 26.63" NODE="27:1.0.1.1.21.7.414.5" TYPE="SECTION">
<HEAD>§ 26.63   Deposit of securities or cash (including cash equivalents) in lieu of corporate surety.</HEAD>
<P>(a) <I>Deposit of securities.</I> In lieu of corporate surety, the principal may pledge and deposit, as surety for his bond, securities which are transferable and are guaranteed as to both interest and principal by the United States, in accordance with the provisions of 31 CFR part 225— Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties.
</P>
<P>(b) <I>Deposit of cash or cash equivalent.</I> In lieu of corporate surety, a person can file a bond that guarantees payment of the liability by submitting cash or its equivalent (including a money order, cashier's check, or personal check). Cash or its equivalent must be no less than the penal sums of the required bonds. Cash equivalents must be payable to the Alcohol and Tobacco Tax and Trade Bureau.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended); 61 Stat. 650; 6 U.S.C. 15)
</SECAUTH>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-92, 46 FR 46921, Sept. 23, 1981; T.D. TTB-146, 82 FR 1130, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.64" NODE="27:1.0.1.1.21.7.414.6" TYPE="SECTION">
<HEAD>§ 26.64   Consents of surety.</HEAD>
<P>Consents of surety to changes in the terms of bonds shall be executed on TTB Form 5000.18 by the principal and by the surety with the same formality and proof of authority as is required for the execution of bonds.
</P>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961, as amended T.D. TTB-146, 82 FR 1130, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.65" NODE="27:1.0.1.1.21.7.414.7" TYPE="SECTION">
<HEAD>§ 26.65   Authority to approve bonds and consents of surety.</HEAD>
<P>The appropriate TTB officer is authorized to approve all bonds and consents of surety filed under this part.
</P>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 26.66" NODE="27:1.0.1.1.21.7.414.8" TYPE="SECTION">
<HEAD>§ 26.66   Bond, TTB Form 5110.50—Distilled spirits.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (c) of this section, if any person intends to ship to the United States, distilled spirits products of Puerto Rican manufacture from bonded storage in Puerto Rico on computation, but before payment, of the tax imposed by 26 U.S.C. 7652(a), equal to the tax imposed in the United States by 26 U.S.C. 5001(a)(1), the person must, before making any such shipment, furnish a bond. The person must furnish a bond on TTB Form 5110.50 for each premises from which shipment will be made, to secure payment of such tax, at the time and in the manner prescribed in this subpart, on all distilled spirits products shipped. The bond must be executed in a penal sum not less than the amount of unpaid tax which, at any one time, is chargeable against the bond. The penal sum of such bond must not exceed $1,000,000, but in no case will the penal sum be less than $1,000.
</P>
<P>(b) <I>Blanket bond.</I> Any person who is the proprietor of more than one premises in Puerto Rico from which shipment of spirits to the United States will be made, may, in lieu of furnishing two or more separate bonds on TTB Form 5110.50 as required by paragraph (a) of this section, furnish a blanket bond on TTB Form 5110.50. The penal sum of such blanket bond shall be equal to the sum of the penal sums of all the bonds in lieu of which it is given. Such blanket bond on TTB Form 5110.50 shall show each bonded warehouse and/or bonded processing room and/or rectifying plant to be covered by the bond, and the part of the total penal sum (computed in accordance with paragraph (a) of this section) to be allocated to each of the designated premises. If the penal sum of the bond allocated to a designated premises is in an amount less than the maximum prescribed in paragraph (a) of this section, transactions at such premises shall not exceed the quantity permissible, as reflected by the penal sum allocated in the bond to such premises. Such blanket bond shall contain the terms and conditions of the bonds in lieu of which it is given and shall be conditioned that the total amount of the bond shall be available for satisfaction of any liability incurred under the terms and conditions of such bond.
</P>
<P>(c) <I>Bonds covering spirits for nonindustrial use and industrial use</I>—(1) <I>Nonindustrial use.</I> A person who pays tax on a deferred basis under § 26.112 is not required to furnish a bond under this section to cover shipments of distilled spirits for nonindustrial use during any portion of a calendar year for which the person is eligible to use an annual or quarterly return period under § 26.112(b)(2) or (b)(3). For purposes of the preceding sentence, a person is considered to be paying tax on a deferred basis even if the person does not pay tax during every return period as long as the person intends to pay tax in a future period. TTB may require a person who has defaulted on any payment to prepay tax as provided in § 26.112(e).
</P>
<P>(2) <I>Industrial use.</I> A person is required to furnish a bond under this section to cover shipments of distilled spirits for industrial use even if the person pays tax on a deferred basis under § 26.112 and is eligible to use an annual or quarterly return period under § 26.112(b)(2) or (b)(3). For bond requirements governing industrial spirits and other products brought into the United States without incurring tax liability, see § 26.36.
</P>
<P>(3) <I>Nonindustrial use and industrial use defined.</I> The nonindustrial and industrial uses of distilled spirits are defined in subpart D of part 1 of this chapter.


</P>
<SECAUTH TYPE="N">(Act of August 16, 1954, 68A Stat. 847, as amended, 907, as amended (26 U.S.C 7101, 7102, 7652))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71710, Dec. 11, 1979, as amended by T.D. TTB-146, 82 FR 1130, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.67" NODE="27:1.0.1.1.21.7.414.9" TYPE="SECTION">
<HEAD>§ 26.67   Bond, TTB Form 5120.32—Wine.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (b) of this section, where a proprietor intends to withdraw, for purpose of shipment to the United States, wine of Puerto Rican manufacture from bonded storage in Puerto Rico on computation, but before payment, of the tax imposed by 26 U.S.C. 7652(a), equal to the tax imposed in the United States by 26 U.S.C. 5041, the proprietor must, before making any such withdrawal, furnish a bond. The proprietor must furnish the bond on TTB Form 5120.32, to secure payment of such tax, at the time and in the manner prescribed in this subpart, on all wine so withdrawn. The bond must be executed in a penal sum not less than the amount of unpaid tax which, at any one time, is chargeable against the bond. The penal sum of such bond must not exceed $250,000, but in no case will the penal sum be less than $500.
</P>
<P>(b) <I>Bonds covering wine for nonindustrial use and industrial use</I>—(1) <I>Nonindustrial use.</I> A proprietor who pays tax on a deferred basis under § 26.112 is not required to furnish a bond under this section to cover shipments of wine for nonindustrial use during any portion of a calendar year for which the proprietor is eligible to use an annual or quarterly return period under § 26.112(b)(2) or (b)(3). For purposes of the preceding sentence, the proprietor is considered to be paying tax on a deferred basis even if the proprietor does not pay tax during every return period as long as the proprietor intends to pay tax in a future period. TTB may require a proprietor who has defaulted on any payment to prepay tax as provided in § 26.112(e).
</P>
<P>(2) <I>Industrial use.</I> A proprietor is required to furnish a bond under this section to cover shipments of wine for industrial use even if the proprietor pays tax on a deferred basis under § 26.112 and is eligible to use an annual or quarterly return period under § 26.112(b)(2) or (b)(3).
</P>
<P>(3) <I>Nonindustrial use and industrial use defined.</I> The nonindustrial and industrial uses of wine are defined in subpart D of part 1 of this chapter.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, Chapter 736, 68A Stat. 775, as amended, 847, as amended, 906, 907, as amended (26 U.S.C. 6302, 7101, 7102, 7651(2)(B), 7652(a)))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1131, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.68" NODE="27:1.0.1.1.21.7.414.10" TYPE="SECTION">
<HEAD>§ 26.68   Bond, TTB Form 5130.16—Beer.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (b) of this section, where a brewer intends to withdraw, for purpose of shipment to the United States, beer of Puerto Rican manufacture from bonded storage in Puerto Rico on computation, but before payment, of the tax imposed by 26 U.S.C. 7652(a), equal to the tax imposed in the United States by 26 U.S.C. 5051, the brewer must, before making any such withdrawal, furnish a bond. The brewer must furnish the bond on TTB Form 5130.16, to secure payment of such tax, at the time and in the manner prescribed in this subpart, on all beer so withdrawn. The bond must be executed in a penal sum not less than the amount of unpaid tax which, at any one time, is chargeable against the bond. The penal sum of such bond must not exceed $500,000, but in no case will the penal sum be less than $1,000.
</P>
<P>(b) <I>Bond exemption for certain brewers based on tax liability.</I> A brewer who pays tax on a deferred basis under § 26.112 is not required to furnish a bond under this section to cover shipments of beer during any portion of a calendar year for which the brewer is eligible to use an annual or quarterly return period under § 26.112(b)(2) or (b)(3). For purposes of the preceding sentence, the brewer is considered to be paying tax on a deferred basis even if the brewer does not pay tax during every relevant period as long as the brewer intends to pay tax in a future period. TTB may require a brewer who has defaulted on any payment to prepay tax as provided in § 26.112(e).
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, Chapter 736, 68A Stat. 775, as amended, 847, as amended, 906, 907, as amended (26 U.S.C. 6302, 7101, 7102, 7651(2)(B), 7652(a)))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1131, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.68a" NODE="27:1.0.1.1.21.7.414.11" TYPE="SECTION">
<HEAD>§ 26.68a   Bond account.</HEAD>
<P>Every person who files a bond under this subpart shall keep an account of the charges against and credits to the bond if the penal sum of his bond is less than the maximum prescribed in §§ 26.66(a), 26.67, or § 26.68, or if the penal sum allocated to his premises under § 26.66(b) is less than the prescribed maximum. He shall charge the bond with the amount of liability he accepts at the time he executes TTB Form 5110.51 or 5100.21, and shall credit the bond with the amount of the tax paid at the time he files each return, and remittance. The account shall also show the balance available under the bond at any one time.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71710, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-146, 82 FR 1131, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.69" NODE="27:1.0.1.1.21.7.414.12" TYPE="SECTION">
<HEAD>§ 26.69   Strengthening bonds.</HEAD>
<P>In all cases where the penal sum of any bond becomes insufficient, the principal shall either give a strengthening bond with the same surety to attain a sufficient penal sum, or give a new bond to cover the entire liability. Strengthening bonds will not be approved where any notation is made thereon which is intended, or which may be construed, as a release of any former bond, or as limiting the amount of any bond to less than its full penal sum. Strengthening bonds shall show the current date of execution and the effective date.


</P>
</DIV8>


<DIV8 N="§ 26.70" NODE="27:1.0.1.1.21.7.414.13" TYPE="SECTION">
<HEAD>§ 26.70   Superseding bonds and new bonds for previously exempt persons.</HEAD>
<P>(a) <I>Superseding bonds.</I> Superseding bonds will be required in case of insolvency or removal of any surety, and may, at the discretion of the appropriate TTB officer, be required in any other contingency affecting the validity or impairing the efficiency of an existing bond. Executors, administrators, assignees, receivers, trustees, or other persons acting in a fiduciary capacity, continuing or liquidating the business of the principal, must execute and file a superseding bond or obtain the consent of the surety or sureties on the existing bond or bonds. Where, under the provisions of § 26.72, the surety on any bond given under this subpart has filed an application to be relieved of liability under said bond and the principal desires or intends to continue the operations to which such bond relates, he must file a valid superseding bond to be effective on or before the date specified in the surety's notice. Superseding bonds must show the current date of execution and the effective date.
</P>
<P>(b) <I>New bonds for previously exempt persons.</I> If a person has not furnished a bond as provided in this subpart because the person was exempt from bond requirements under §§ 26.66(c), 26.67(b), or 26.68(b), the person must furnish a bond to cover shipments following the first date on which the aggregate amount of tax due from the person during the calendar year exceeds $50,000. If a person has not furnished the required bond for shipments under this subpart, the person must prepay tax on those shipments as provided in § 26.112(e).
</P>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1131, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.70a" NODE="27:1.0.1.1.21.7.414.14" TYPE="SECTION">
<HEAD>§ 26.70a   Notice of approval of bonds.</HEAD>
<P>Upon approval of an original, a strengthening, or a superseding bond, the appropriate TTB officer shall notify the Secretary, and the revenue agent at the premises, of the total penal sum of the bond or bonds, and in the case of a blanket bond, the amount of the penal sum allocated to the premises.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12932, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="415" NODE="27:1.0.1.1.21.7.415" TYPE="SUBJGRP">
<HEAD>Termination of Bonds</HEAD>


<DIV8 N="§ 26.71" NODE="27:1.0.1.1.21.7.415.15" TYPE="SECTION">
<HEAD>§ 26.71   Termination of bonds.</HEAD>
<P>Any bond given under the provisions of this subpart may be terminated as to future transactions—
</P>
<P>(a) Pursuant to application of surety as provided in § 26.72;
</P>
<P>(b) On approval of a superseding bond;
</P>
<P>(c) On notification by the principal to the appropriate TTB officer that he has discontinued transactions under the bond (including for the reason that the principal is exempt from bond requirements under §§ 26.66(c), 26.67(b), or 26.68(b)); or
</P>
<P>(d) On notification by the principal to the appropriate TTB officer that he has discontinued business.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12932, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-146, 82 FR 1131, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.72" NODE="27:1.0.1.1.21.7.415.16" TYPE="SECTION">
<HEAD>§ 26.72   Application of surety for relief from bond.</HEAD>
<P>A surety on any bond given under the provisions of this subpart may at any time in writing notify the principal and the appropriate TTB officer that he desires, after a date named, to be relieved of liability under said bond. Such date shall be not less than 10 days after the date the notice is received by the appropriate TTB officer. The surety shall also file with the appropriate TTB officer an acknowledgment or other proof of service on the principal. If such notice is not thereafter in writing withdrawn, the rights of the principal as supported by said bond shall be terminated on the date named in the notice, and the surety shall be relieved from liability to the extent set forth in § 26.73.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-251, 52 FR 19338, May 22, 1987. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.73" NODE="27:1.0.1.1.21.7.415.17" TYPE="SECTION">
<HEAD>§ 26.73   Relief of surety from bond.</HEAD>
<P>Where the surety on a bond given under the provisions of this subpart has filed application for relief from liability, as provided in § 26.72, the surety shall be relieved from liability for transactions occurring wholly subsequent to the date specified in the notice, or the effective date of a new bond, if one is given.
</P>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975 and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.74" NODE="27:1.0.1.1.21.7.415.18" TYPE="SECTION">
<HEAD>§ 26.74   Release of pledged securities or cash (including cash equivalents).</HEAD>
<P>Securities of the United States pledged and deposited as provided in § 26.63(a), will be released only in accordance with the provisions of 31 CFR part 225. Securities and cash (including cash equivalents) will not be released by the appropriate TTB officer until the liability under the bond for which they were pledged has been terminated. When the appropriate TTB officer is satisfied that they may be released, the appropriate TTB officer will fix the date or dates on which a part or all of such securities and cash (including cash equivalents) may be released. At any time prior to the release, the appropriate TTB officer may extend the date of release for such additional length of time as the appropriate TTB officer deems necessary.
</P>
<SECAUTH TYPE="N">(61 Stat. 650; 6 U.S.C. 15)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1131, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.75" NODE="27:1.0.1.1.21.7.415.19" TYPE="SECTION">
<HEAD>§ 26.75   TTB Form 5000.23 PR, Notice of Termination of Bond.</HEAD>
<P>When the appropriate TTB officer is satisfied that any bond given under the provisions of this subpart may be terminated, he shall issue TTB Form 5000.23 PR, Notice of Termination of Bond, and shall forward copies to the principal and to the surety. The appropriate TTB officer shall, prior to the termination date, notify the Secretary and the revenue agent of the proposed termination of any bond given under this part and the date of such termination.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12932, Dec. 5, 1963, as amended by T.D. ATF-2, 37 FR 22736, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987; T.D. TTB-146, 82 FR 1132, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="416" NODE="27:1.0.1.1.21.7.416" TYPE="SUBJGRP">
<HEAD>Permits Required</HEAD>


<DIV8 N="§ 26.76" NODE="27:1.0.1.1.21.7.416.20" TYPE="SECTION">
<HEAD>§ 26.76   Insular permits.</HEAD>
<P>Before liquors or articles of Puerto Rican manufacture may be shipped to the United States, an insular permit, TTB Form 5110.51 (for distilled spirits) or TTB Form 5100.21 (for wine or beer), to compute the taxes imposed by 26 U.S.C. 7652(a), and to withdraw the products from the bonded establishment where they may be deposited, must be obtained from the Secretary, and such products may not be shipped to the United States until a permit to ship, on TTB Form 5170.7, is applied for and obtained from the Secretary.
</P>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 26.76, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV7>


<DIV7 N="417" NODE="27:1.0.1.1.21.7.417" TYPE="SUBJGRP">
<HEAD>Distilled Spirits</HEAD>


<DIV8 N="§ 26.77" NODE="27:1.0.1.1.21.7.417.21" TYPE="SECTION">
<HEAD>§ 26.77   Subject to tax.</HEAD>
<P>(a) Distilled spirits of Puerto Rican manufacture, and any products containing such distilled spirits, brought into the United States and withdrawn for consumption or sale are subject to a tax equal to the tax imposed in the United States by 26 U.S.C. 5001.
</P>
<P>(b) A credit against the tax imposed on distilled spirits by 26 U.S.C. 7652 is allowable under 26 U.S.C. 5010 on each proof gallon of alcohol derived from eligible wine or from eligible flavors which do not exceed 2
<FR>1/2</FR> percent of the finished product on a proof gallon basis. The credit is allowable at the time the tax is payable as if it constituted a reduction in the rate of tax.
</P>
<P>(c) Where credit against the tax is desired, the person liable for the tax shall establish an effective tax rate in accordance with § 26.79a. The effective tax rate established will be applied to each withdrawal or other disposition of the distilled spirits for consumption or sale within the United States.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0203)
</APPRO>
<SECAUTH TYPE="N">(Act of Aug. 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 U.S.C. 7652); Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18066, Apr. 30, 1990. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.78" NODE="27:1.0.1.1.21.7.417.22" TYPE="SECTION">
<HEAD>§ 26.78   Application and permit, TTB Form 5110.51.</HEAD>
<P>Application for permit to compute the tax on, and to withdraw, distilled spirits shall be made on TTB Form 5110.51, in quintuplicate, by the proprietor. The proprietor shall forward all copies of the form to the Secretary. If the application is properly prepared and is otherwise in order, the Secretary or their delegate shall execute the permit, retain one copy, and forward the original and remaining copies of the form to the revenue agent at the premises where the products are located.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71711, Dec. 11, 1979, as amended by T.D. ATF-251, 52 FR 19338, May 22, 1987; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.79" NODE="27:1.0.1.1.21.7.417.23" TYPE="SECTION">
<HEAD>§ 26.79   Inspection or gauge and computation of tax.</HEAD>
<P>On receipt of permit to compute the tax on TTB Form 5110.51, the revenue agent shall:
</P>
<P>(a) In the case of spirits in packages, prepare a gauge record as provided in § 26.164a in quadruplicate, compute the tax thereon, and attach all copies of the gauge record to TTB Form 5110.51;
</P>
<P>(b) In the instance of spirits in cases, verify by inspection the quantity of spirits described on the form; or
</P>
<P>(c) In the case of spirits in a bulk conveyance, verify by gauge or inspection the quantity of spirits described on the form.
</P>
<FP>If the revenue agent determines any variation between his gauge and the quantity of spirits described on Form 5110.51, he shall amend and initial the data in part I of the form. The revenue agent shall deliver all copies of Form 5110.51 and any accompanying package gauge record to the proprietor. The proprietor shall then compute and enter the amount of tax on all copies of Form 5110.51.
</FP>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8549, Mar. 1, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.79a" NODE="27:1.0.1.1.21.7.417.24" TYPE="SECTION">
<HEAD>§ 26.79a   Computation of effective tax rate.</HEAD>
<P>(a) The proprietor shall compute the effective tax rate for distilled spirits containing eligible wine or eligible flavors as the ratio of the numerator and denominator as follows:
</P>
<P>(1) the numerator will be the sum of:
</P>
<P>(i) The proof gallons of all distilled spirits used in the product (exclusive of distilled spirits derived from eligible flavors), multiplied by the tax rate prescribed by 26 U.S.C. 5001;
</P>
<P>(ii) The wine gallons of each eligible wine used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5041(b) (1), (2), or (3), as applicable; and
</P>
<P>(iii) The proof gallons of all distilled spirits derived from eligible flavors used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5001, but only to the extent that such distilled spirits exceed 2
<FR>1/2</FR>% of the denominator prescribed in paragraph (a)(2) of this section.
</P>
<P>(2) The denominator will be the sum of:
</P>
<P>(i) The proof gallons of all distilled spirits used in the product, including distilled spirits derived from eligible flavors; and
</P>
<P>(ii) The wine gallons of each eligible wine used in the product, multiplied by twice the percentage of alcohol by volume of each, divided by 100.
</P>
<P>(b) In determining the effective tax rate, quantities of distilled spirits, eligible wine, and eligible flavors will be expressed to the nearest tenth of a proof gallon. The effective tax rate may be rounded to as many decimal places as the proprietor deems appropriate, provided that, such rate is expressed no less exactly than the rate rounded to the nearest whole cent, and the effective tax rates for all products will be consistently expressed to the same number of decimal places. In such case, if the number is less than five it will be dropped; if it is five or over, a unit will be added.
</P>
<P>(c) The following is an example of the use of the formula.
<FTREF/>
</P>
<FTNT>
<P>
<SU>1</SU> Proof gallons by which distilled spirits derived from eligible flavors exceed 2
<FR>1/2</FR>% of the total proof gallons in the batch (100.9 − (2
<FR>1/2</FR>%) × 3.371.8 = 16.6).</P></FTNT>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Batch Record
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">Distilled spirits</TD><TD align="left" class="gpotbl_cell">2249.1 proof gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible wine (14% alcohol by volume)</TD><TD align="left" class="gpotbl_cell">2265.0 wine gallons
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible wine (19% alcohol by volume)</TD><TD align="left" class="gpotbl_cell">1020.0 wine gallons
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible flavors</TD><TD align="left" class="gpotbl_cell">100.9 proof gallons</TD></TR></TABLE></DIV></DIV>
<MATH BORDER="NODRAW" DEEP="107" HTYPE="CENTER" POSITION="NOFLOAT" ROTATION="P" SPAN="2" STRIP="YES">
<img src="/graphics/ec05oc91.041.gif"/></MATH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0203)
</APPRO>
<SECAUTH TYPE="N">(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18066, Apr. 30, 1990, as amended by T.D. ATF-307, 55 FR 52741, Dec. 21, 1990]



</CITA>
</DIV8>


<DIV8 N="§ 26.80" NODE="27:1.0.1.1.21.7.417.25" TYPE="SECTION">
<HEAD>§ 26.80   Deferred payment of tax—release of spirits.</HEAD>
<P>(a) <I>Action by proprietor.</I> Where the proprietor wishes to defer payment of tax, he must execute an agreement on TTB Form 5110.51 to pay the amount of tax which has been computed and entered on the form. If a bond is required under § 26.66, he must certify, under the penalties of perjury, that he is not in default of any payment of tax chargeable against his bond, and that his bond is in the maximum penal sum, or that it is sufficient to cover the amount of tax on the distilled spirits described on the form in addition to all other amounts chargeable against this bond. If the proprietor deferring payment of tax is not required to provide a bond under § 26.66, the proprietor must certify under the penalties of perjury that the proprietor was liable for not more than $50,000 in taxes in the preceding calendar year, reasonably expects to be liable for not more than $50,000 during the current calendar year, and is not using the TTB Form 5100.21 for any shipment of distilled spirits for industrial use. The proprietor must deliver all copies of TTB Form 5110.51 and any package gauge record as provided in § 26.164a to the revenue agent.
</P>
<P>(b) <I>Action by revenue agent.</I> On receipt of TTB Form 5110.51 and any package gauge record, the revenue agent shall verify the computation of the tax entered on the TTB Form 5110.51, and if the proprietor has on file a good and sufficient bond, TTB Form 5110.50, so indicate on TTB Form 5110.51. The revenue agent shall then execute his report of release on the TTB Form 5110.51 and release the spirits for shipment to the United States. He shall distribute TTB Form 5110.51 and any package gauge record according to the instructions of TTB Form 5110.51. Where the revenue agent finds that the proprietor does not have good and sufficient bond coverage, or where the revenue agent has received information that the proprietor is in default of payment of any taxes previously charged to his bond, he shall return all copies of TTB Form 5110.51 and any package gauge record to the proprietor, giving his reasons for such action.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0056)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8549, Mar. 1, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-146, 82 FR 1132, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.81" NODE="27:1.0.1.1.21.7.417.26" TYPE="SECTION">
<HEAD>§ 26.81   Prepayment of tax and release of spirits.</HEAD>
<P>(a) <I>Action by proprietor.</I> Where the distilled spirits are to be released after payment of the computed tax, the proprietor shall enter the amount of such computed tax on all copies of TTB Form 5110.51 and execute the statement that such tax is being prepaid. The proprietor shall then prepare TTB Form 5000.25 in duplicate, and send the original with all copies of TTB Form 5110.51 and any package gauge record as provided in § 26.164a and the remittance in full for the tax, to the appropriate TTB officer.
</P>
<P>(b) <I>Action by appropriate TTB officer.</I> On receipt of TTB Forms 5110.51, 5000.25 and any package gauge record, with remittance covering prepayment of tax, the appropriate TTB officer shall execute the receipt on TTB Form 5000.25 and execute the report of prepaid taxes on all copies of TTB Form 5110.51. The appropriate TTB officer shall then retain the originals of TTB Forms 5110.51 and 5000.25 and forward the remaining copies of TTB Form 5110.51 in accordance to the instructions on the form.
</P>
<P>(c) <I>Action by revenue agent.</I> On receipt of TTB Form 5110.51 executed by the appropriate TTB officer to show receipt of TTB Form 5000.25 and remittance, the revenue agent shall execute the report of release on the TTB Form 5110.51 and release the spirits for shipment to the United States. The completed TTB Form 5110.51 shall be distributed according to the instructions on the form.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0210 and 1512-0497)
</APPRO>
<CITA TYPE="N">[T.D. ATF-277, 53 FR 45267, Nov. 9, 1988. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.82" NODE="27:1.0.1.1.21.7.417.27" TYPE="SECTION">
<HEAD>§ 26.82   Permit to ship.</HEAD>
<P>Distilled spirits may not be shipped to the United States until permit for such shipment has been obtained from the Secretary as provided in §§ 26.114 through 26.116.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12932, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71711, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="418" NODE="27:1.0.1.1.21.7.418" TYPE="SUBJGRP">
<HEAD>Packages of Distilled Spirits</HEAD>


<DIV8 N="§ 26.86" NODE="27:1.0.1.1.21.7.418.28" TYPE="SECTION">
<HEAD>§ 26.86   Authority for shipment.</HEAD>
<P>Where distilled spirits of Puerto Rican manufacture are to be shipped to the United States in containers having a capacity of more than one gallon, the laws and regulations of the Commonwealth of Puerto Rico require that prior approval for such shipment be obtained from the Secretary.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12933, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 26.87" NODE="27:1.0.1.1.21.7.418.29" TYPE="SECTION">
<HEAD>§ 26.87   Evidence of taxpayment.</HEAD>
<P>Where, under the provisions of § 26.86, a person has made application to the Secretary for authority to ship distilled spirits of Puerto Rican manufacture to the United States in containers having a capacity of more than one gallon, they shall, at the same time, submit sworn evidence to the Secretary that the distilled spirits tax has been paid as provided in § 26.81 or deferred as provided in § 26.80, or they shall submit application, TTB Form 5110.51, for permit to pay such taxes, as provided in § 26.78. When satisfied that the shipper has complied with all provisions of this part relating to the payment of taxes on such distilled spirits, the Secretary or their delegate, shall note his approval on both copies of the sworn application, and return one copy to the shipper. On receipt of the approved application, the shipper shall submit application for permit to ship, TTB Form 5170.7, as prescribed in §§ 26.114 through 26.116.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12933, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71711, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-146, 82 FR 1132, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="419" NODE="27:1.0.1.1.21.7.419" TYPE="SUBJGRP">
<HEAD>Wine</HEAD>


<DIV8 N="§ 26.92" NODE="27:1.0.1.1.21.7.419.30" TYPE="SECTION">
<HEAD>§ 26.92   Subject to tax.</HEAD>
<P>(a) Wine of Puerto Rican manufacture coming into the United States and withdrawn for consumption or sale is subject to a tax equal to the internal revenue tax imposed in the United States on wine by 26 U.S.C. 5041.
</P>
<P>(b) The excise taxes collected on wine of Puerto Rican manufacture shall be deposited in the Treasury of Puerto Rico only if the sum of the cost or value of the materials produced in Puerto Rico, plus the direct costs of processing operations performed in Puerto Rico, equals or exceeds 50 percent of the value of the wine when it is brought into the United States.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 15888, Apr. 23, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 26.93" NODE="27:1.0.1.1.21.7.419.31" TYPE="SECTION">
<HEAD>§ 26.93   Application and permit, TTB Form 5100.21.</HEAD>
<P>When wine of Puerto Rican manufacture is to be withdrawn for shipment to the United States, or for use in an article made with wine only or with wine and beer only, for shipment to the United States, application for permit to compute the tax on, and to withdraw, the wine shall be made on TTB Form 5100.21, in quintuplicate, by the proprietor of the bonded premises where the wine is stored. If the withdrawal is to be made in casks, barrels, kegs or similar containers, the proprietor shall enter the name of the winemaker producing the wine, the serial numbers of the packages, the total number of wine gallons contained therein, and the taxable grade of the wine, for example, “not more than 14 percent” if the wine contains not more than 14 percent of alcohol by volume, “14-21 percent” if the wine contains more than 14 percent and not exceeding 21 percent of alcohol by volume, “21-24 percent” if the wine contains more than 21 percent but not exceeding 24 percent of alcohol by volume. If the application covers more than one taxable grade of wine, the quantity in each taxable grade shall be reported separately. If the withdrawal is to consist of bottled wine, the proprietor shall show the number of cases, size of the bottles, the number of bottles per case, the total quantity in wine gallons, and the taxable grade of the wine in the manner stated above. The proprietor shall forward all copies of the form to the Secretary. If the application is properly prepared and is otherwise in order, the Secretary or their delegate shall execute the permit, retain one copy, and return the original and three copies to the proprietor.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71712, Dec. 11, 1979, as amended by T.D. ATF-251, 52 FR 19338, May 22, 1987; T.D. TTB-146, 82 FR 1132, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.94" NODE="27:1.0.1.1.21.7.419.32" TYPE="SECTION">
<HEAD>§ 26.94   Computation of tax.</HEAD>
<P>On receipt of permit to compute the tax on Form 2900, the proprietor shall compute and enter the amount of the tax on all copies of the form.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 26.95" NODE="27:1.0.1.1.21.7.419.33" TYPE="SECTION">
<HEAD>§ 26.95   Deferred payment of tax—release of wine.</HEAD>
<P>(a) <I>Action by proprietor.</I> Where the proprietor wishes to defer payment of tax, he must execute the agreement on TTB Form 5100.21 to pay the amount of tax which has been computed and entered on the form. If a bond is required under § 26.67, he must certify under the penalties of perjury that he is not in default of any payment of tax chargeable against his bond, and that his bond is in the maximum penal sum, or that it is sufficient to cover the amount of tax on the wine described on the form in addition to all other amounts chargeable against his bond. If the proprietor deferring payment of tax is not required to provide a bond under § 26.67, the proprietor must certify under the penalties of perjury that the proprietor was liable for not more than $50,000 in taxes in the preceding calendar year, reasonably expects to be liable for not more than $50,000 during the current calendar year, and is not using the TTB Form 5100.21 for any shipment of wine for industrial use. The proprietor must deliver all copies of TTB Form 5100.21 to the revenue agent.
</P>
<P>(b) <I>Action by revenue agent.</I> On receipt of TTB Form 5100.21, the revenue agent shall verify the computation of the tax entered on the form, and if the proprietor has on file a good and sufficient bond, TTB Form 5120.32, so indicate on TTB Form 5100.21. The revenue agent shall then execute his report of release on the TTB Form 5100.21 and release the wine for the purpose authorized on the form. The completed form shall be distributed in the same manner as provided for TTB Form 5110.51 in § 26.80(b). Where the revenue agent finds that the proprietor does not have good and sufficient bond coverage, or that the proprietor is in default of payment of any taxes previously charged to his bond, he shall return all copies of TTB Form 5100.21 to the proprietor, giving his reasons for such action.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-146, 82 FR 1132, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.96" NODE="27:1.0.1.1.21.7.419.34" TYPE="SECTION">
<HEAD>§ 26.96   Prepayment of tax—release of wine.</HEAD>
<P>(a) <I>Action by proprietor.</I> Where the wine is to be withdrawn from bonded storage after payment of the computed tax, the proprietor shall enter the amount of such computed tax on all copies of TTB Form 2900 (5100.21) and execute the statement that such tax is being prepaid. The proprietor shall then prepare TTB Form 5000.25 in duplicate and send the original with all copies of TTB Form 2900 (5100.21) and the remittance in full for the tax, to the appropriate TTB officer.
</P>
<P>(b) <I>Action by appropriate TTB officer.</I> On receipt of TTB Forms 2900 (5100.21) and 5000.25, and remittance covering prepayment of tax, the appropriate TTB officer shall execute the receipt on TTB Form 5000.25 and execute the report of prepaid taxes on all copies of TTB Form 2900 (5100.21). The appropriate TTB officer shall then retain the originals of TTB Forms 2900 (5100.21) and 5000.25 and forward the remaining copies of TTB Form 2900 (5100.21) in accordance with the instructions on the form.
</P>
<P>(c) <I>Action by revenue agent.</I> On receipt of TTB Form 2900 (5100.21) executed by the appropriate TTB officer to show receipt of TTB Form 5000.25 and remittance, the revenue agent shall execute the report of release on the TTB Form 2900 (5100.21) and release the wine for the purpose authorized on the form. The completed TTB Form 2900 (5100.21) shall be distributed according to the instructions on the form.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0149 and 1512-0497)
</APPRO>
<CITA TYPE="N">[T.D. ATF-277, 53 FR 45267, Nov. 9, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 26.96a" NODE="27:1.0.1.1.21.7.419.35" TYPE="SECTION">
<HEAD>§ 26.96a   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 26.96b" NODE="27:1.0.1.1.21.7.419.36" TYPE="SECTION">
<HEAD>§ 26.96b   Permit to ship.</HEAD>
<P>Wine released from bonded storage under § 26.95 or § 26.96 may not be shipped to the United States until permit for such shipment has been obtained from the Secretary as provided in §§ 26.114 through 26.116.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.97" NODE="27:1.0.1.1.21.7.419.37" TYPE="SECTION">
<HEAD>§ 26.97   Marking containers of wine.</HEAD>
<P>Containers of wine of Puerto Rican manufacture which are to be shipped to the United States must be marked with the name of the winemaker, the serial number of the container, the kind and taxable grade of the wine, the gallon content, and the serial number of the withdrawal permit, TTB Form 5170.7, prefixed by the number of such form, e.g., “ 5170.7-17-1.”
</P>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955, as amended by T.D. TTB-146, 82 FR 1132, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="420" NODE="27:1.0.1.1.21.7.420" TYPE="SUBJGRP">
<HEAD>Beer</HEAD>


<DIV8 N="§ 26.101" NODE="27:1.0.1.1.21.7.420.38" TYPE="SECTION">
<HEAD>§ 26.101   Subject to tax.</HEAD>
<P>(a) Beer of Puerto Rican manufacture coming into the United States and withdrawn for consumption or sale is subject to a tax equal to the internal revenue tax imposed on beer in the United States by 26 U.S.C. 5051.
</P>
<P>(b) The excise taxes collected on beer of Puerto Rican manufacture shall be deposited in the Treasury of Puerto Rico only if the sum of the cost or value of the materials produced in Puerto Rico, plus the direct costs of processing operations performed in Puerto Rico, equals or exceeds 50 percent of the value of the beer when it is brought into the United States.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 15888, Apr. 23, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 26.102" NODE="27:1.0.1.1.21.7.420.39" TYPE="SECTION">
<HEAD>§ 26.102   Application and permit, TTB Form 5100.21.</HEAD>
<P>When beer of Puerto Rican manufacture is to be withdrawn for shipment to the United States, or for use in making an article for shipment to the United States, application for permit to compute the tax on, and to withdraw, the beer shall be made by the brewer on TTB Form 5100.21, in quintuplicate. If the withdrawal is to be made in hogsheads, barrels, or kegs, the brewer shall enter the total number of each size, according to capacity, of containers which it is desired to withdraw. If the withdrawal is to be made in bottles, the brewer shall enter the number of cases, size of bottles, number of bottles per case, the total contents thereof in gallons (liquid measure), and the equivalent thereof in barrels and fractions of barrels of 31 gallons each. The brewer shall forward all copies of the TTB Form 5100.21 to the Secretary. If the application is properly prepared and is otherwise in order, the Secretary or their delegate shall execute the permit, retain one copy, and return the original and three copies to the brewer.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987; T.D. TTB-146, 82 FR 1132, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.103" NODE="27:1.0.1.1.21.7.420.40" TYPE="SECTION">
<HEAD>§ 26.103   Computation of tax.</HEAD>
<P>On receipt of permit to compute the tax on TTB Form 5100.21 the brewer shall compute and enter the amount of the tax on all copies of the form.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. TTB-146, 82 FR 1132, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.104" NODE="27:1.0.1.1.21.7.420.41" TYPE="SECTION">
<HEAD>§ 26.104   Deferred payment of tax—release of beer.</HEAD>
<P>(a) <I>Action by brewer.</I> Where the brewer will defer payment of tax, he must execute the agreement on TTB Form 5100.21 to pay the amount of tax which has been computed and entered on the form. If a bond is required under § 26.68, he must certify under the penalties of perjury that he is not in default of any payment of tax chargeable against his bond, and that his bond is in the maximum penal sum, or that it is sufficient to cover the amount of tax on the beer described on the form in addition to all other amounts chargeable against his bond. If the brewer deferring payment of tax is not required to provide a bond under § 26.68, the brewer must certify under the penalties of perjury that the brewer was liable for not more than $50,000 in taxes in the preceding calendar year and reasonably expects to be liable for not more than $50,000 during the current calendar year. The brewer must deliver all copies of Form 5100.21 to the revenue agent.
</P>
<P>(b) <I>Action by revenue agent.</I> On receipt of TTB Form 5100.21, the revenue agent shall verify the computation of the tax entered on the form, and if the proprietor has on file a good and sufficient bond, TTB Form 5130.16, so indicate on TTB Form 5100.21. The revenue agent shall then execute his report of release on the TTB Form 5100.21 and release the beer for the purpose authorized on the form. The completed form shall be distributed in the same manner as provided for TTB Form 5110.51 in § 26.80(b). Where the revenue agent finds that the proprietor does not have good and sufficient bond coverage, or that the proprietor is in default of payment of any taxes previously charged to his bond, he shall return all copies of TTB Form 5100.21 to the proprietor, giving his reasons for such action.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-146, 82 FR 1132, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.105" NODE="27:1.0.1.1.21.7.420.42" TYPE="SECTION">
<HEAD>§ 26.105   Prepayment of tax—release of beer.</HEAD>
<P>(a) <I>Action by brewer.</I> Where the beer is to be withdrawn from bonded storage after payment of the computed tax the brewer shall enter the amount of such computed tax on all copies of TTB Form 2900 (5100.21) and execute the statement that such tax is being prepaid. The brewer shall then prepare TTB Form 5000.25 in duplicate and send the original with all copies of TTB Form 2900 (5100.21) and the remittance in full for the tax, to the appropriate TTB officer.
</P>
<P>(b) <I>Action by appropriate TTB officer.</I> On receipt of TTB Forms 2900 (5100.21) and 5000.25, and remittance covering prepayment of tax, the appropriate TTB officer shall execute the receipt on TTB Form 5000.25 and execute the report of prepaid taxes on all copies of TTB Form 2900 (5100.21). The appropriate TTB officer shall then retain the originals of TTB Forms 2900 (5110.21) and 5000.25 and forward the remaining copies of TTB Form 2900 (5100.21) in accordance with the instructions of the form.
</P>
<P>(c) <I>Action by revenue agent.</I> On receipt of TTB Form 2900 (5100.21) executed by the appropriate TTB officer to show receipt of TTB Form 5000.25 and remittance, the revenue agent shall execute the report of release on the TTB Form 2900 (5100.21) and release the beer for the purpose authorized on the form. The completed TTB Form 2900 (5100.21) shall be distributed according to the instructions on the form.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0149 and 1512-0497)
</APPRO>
<CITA TYPE="N">[T.D. ATF-277, 53 FR 45268, Nov. 9, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 26.105a" NODE="27:1.0.1.1.21.7.420.43" TYPE="SECTION">
<HEAD>§ 26.105a   Permit to ship.</HEAD>
<P>Beer released from bonded storage under § 26.104 or § 26.105 may not be shipped to the United States until permit for such shipment has been obtained from the Secretary as provided in §§ 26.114 through 26.116.
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12935, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.106" NODE="27:1.0.1.1.21.7.420.44" TYPE="SECTION">
<HEAD>§ 26.106   Marking containers of beer.</HEAD>
<P>Containers of beer of Puerto Rican manufacture which are to be shipped to the United States must be marked with the name of the brewer; the serial number, capacity, and size of the container; the kind of beer; and the serial number of the withdrawal permit, TTB Form 5170.7, prefixed by the number of such form, e.g., “ 5170.7-17-1.”
</P>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955, as amended by T.D. TTB-146, 82 FR 1132, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="421" NODE="27:1.0.1.1.21.7.421" TYPE="SUBJGRP">
<HEAD>Articles</HEAD>


<DIV8 N="§ 26.107" NODE="27:1.0.1.1.21.7.421.45" TYPE="SECTION">
<HEAD>§ 26.107   Taxable status.</HEAD>
<P>Articles of Puerto Rican manufacture which are to be shipped to the United States and which are not exempt fom tax under the provisions of § 26.36 are subject, under section 7652(a) to a tax equal to the tax imposed by the internal revenue laws of the United States. If such articles contain distilled spirits, the tax will be collected at the rate prescribed by 26 U.S.C. 5001(a)(1) on all alcohol contained therein, regardless of the source. Such articles containing only wine and/or beer will be taxed at the rates prescribed by 26 U.S.C. 5041 and/or 5051, respectively. A formula covering the manufacture of each article shall be filed by the manufacturer in accordance with subpart D of this part.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.108" NODE="27:1.0.1.1.21.7.421.46" TYPE="SECTION">
<HEAD>§ 26.108   Application for permit, TTB Form 5110.51 and/or 5100.21.</HEAD>
<P>(a) <I>Distilled spirits.</I> Where distilled spirits of Puerto Rican manufacture are to be used in the manufacture of the articles to be shipped to the United States, the manufacturer shall make application on Form 5110.51, in accordance with the applicable provisions of § 26.78.
</P>
<P>(b) <I>Wine and/or beer.</I> Where wine and/or beer of Puerto Rican manufacture is to be used in the manufacture of the articles to be shipped to the United States, the manufacturer shall make application on TTB Form 5100.21, in accordance with the applicable provisions of §§ 26.93 and/or 26.102. Wine and beer may be included in the same application.
</P>
<P>(c) <I>Approval of applications.</I> The Secretary, or their delegate, shall approve and dispose of the applications in the manner prescribed in §§ 26.78, 26.93, and/or § 26.102, as the case may be.
</P>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-146, 82 FR 1133, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.109" NODE="27:1.0.1.1.21.7.421.47" TYPE="SECTION">
<HEAD>§ 26.109   Taxpayment.</HEAD>
<P>(a) <I>Distilled spirits.</I> The tax on distilled spirits contained in articles to be shipped to the United States, equal to the tax imposed in the United States by 26 U.S.C. 5001(a)(1), shall be computed in accordance with § 26.79 and paid in accordance with the applicable provisions of §§ 26.80, 26.81, and 26.111 through 26.113.
</P>
<P>(b) <I>Wine.</I> The tax on wine used in the manufacture of articles to be shipped to the United States, equal to the tax imposed in the United States by 26 U.S.C. 5041, shall be computed in accordance with § 26.94 and paid in accordance with the applicable provisions of §§ 26.95, 26.96, and 26.111 through 26.113.
</P>
<P>(c) <I>Beer.</I> The tax on beer used in the manufacture of articles to be shipped to the United States, equal to the tax imposed in the United States by 26 U.S.C. 5051, shall be computed in accordance with § 26.103 and paid in accordance with the applicable provisions of §§ 26.104, 26.105, and 26.111 through 26.113.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.110" NODE="27:1.0.1.1.21.7.421.48" TYPE="SECTION">
<HEAD>§ 26.110   Release of articles or liquors.</HEAD>
<P>After determining that the proprietor has good and sufficient bond coverage, or, in the case of prepayment, on receipt of TTB Form 5110.51 or TTB Form 5100.21 executed by the appropriate TTB officer to show receipt of TTB Form 5000.25, and remittance, the revenue agent shall execute his report of release on TTB Form 5110.51 or TTB Form 5100.21 and release the articles containing distilled spirits, or release the wine and/or beer for use in the manufacture of articles. He shall forward one copy of TTB Form 5110.51 or TTB Form 5100.21, and any package gauge record as provided in § 26.164a, to the Bureau of Alcoholic Beverage Taxes and one copy of each to the District Revenue Agent (Commonwealth of Puerto Rico), deliver one copy of each to the applicant, and retain one copy. A permit shall be obtained as provided in §§ 26.114 through 26.116 before the articles manufactured from such liquors may be shipped to the United States.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0497)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8550, Mar. 1, 1985, as amended by T.D. ATF-251, 52 FR 19338, May 22, 1987; T.D. ATF-277, 53 FR 45268, Nov. 9, 1988. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-146, 82 FR 1133, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="422" NODE="27:1.0.1.1.21.7.422" TYPE="SUBJGRP">
<HEAD>Payment of Tax by Return</HEAD>


<DIV8 N="§ 26.111" NODE="27:1.0.1.1.21.7.422.49" TYPE="SECTION">
<HEAD>§ 26.111   General.</HEAD>
<P>All taxes imposed by 26 U.S.C. 7652(a), and which, under the provisions of this part, are paid in Puerto Rico, shall be paid and collected on the basis of a tax return as provided in this subpart. Any tax which has been paid in accordance with the provisions of this part in effect at the time of such payment, and before provision was made in the part for payment of such tax by return, shall be deemed to have been prepaid as prescribed in this part.
</P>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55852, Sept. 28, 1979; T.D. ATF-277, 53 FR 45268, Nov. 9, 1988] 


</CITA>
</DIV8>


<DIV8 N="§ 26.112" NODE="27:1.0.1.1.21.7.422.50" TYPE="SECTION">
<HEAD>§ 26.112   Returns for deferred payment of tax.</HEAD>
<P>(a) <I>Returns.</I> The taxes imposed by 26 U.S.C. 7652(a), (equal to the taxes imposed in the United States by 26 U.S.C. 5001(a)(1), 5041, or 5051), the payment of which has been deferred under the provisions of §§ 26.80, 26.95 or 26.104 of this part, shall be paid pursuant to a return on TTB Form 5000.25 prepared in accordance with the instructions on the form.
</P>
<P>(b) <I>Return periods</I>—(1) <I>Semimonthly return period.</I> Except in the case of a taxpayer who qualifies for, and chooses to use, annual or quarterly return periods as provided in paragraph (b)(2) or (b)(3) of this section, all taxpayers must use semimonthly return periods for deferred payment of tax. The semimonthly return periods run from the 1st day through the 15th day of each month, and from the 16th day through the last day of each month, except as otherwise provided in paragraph (d) of this section.
</P>
<P>(2) <I>Annual return period.</I> Subject to paragraph (b)(4) of this section, a taxpayer may choose to use an annual return period if the taxpayer was not liable for more than $1,000 in taxes imposed by 26 U.S.C. 7652 in the preceding calendar year and if that taxpayer reasonably expects to be liable for not more than $1,000 in such taxes during the current calendar year. In such a case the last day for paying the tax and filing the return will be the 14th day after the last day of the calendar year. However, the taxpayer may not use the annual return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $1,000, and any tax that has not been paid on that date will be due on the 14th day after the last day of the quarterly or semimonthly period in which that date occurs.
</P>
<P>(3) <I>Quarterly return period.</I> Except as provided in paragraph (b)(2) of this section and subject to paragraph (b)(4) of this section, a taxpayer may choose to use a quarterly return period if the taxpayer was not liable for more than $50,000 in taxes imposed by 26 U.S.C. 7652 in the preceding calendar year and if that taxpayer reasonably expects to be liable for not more than $50,000 in such taxes during the current calendar year. In such a case the last day for paying the tax and filing the return will be the 14th day after the last day of the calendar quarter. However, the taxpayer may not use the quarterly return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $50,000, and any tax that has not been paid on that date will be due on the 14th day after the last day of the semimonthly period in which that date occurs.
</P>
<P>(4) The following additional rules apply to the annual and quarterly return period procedures under this section:
</P>
<P>(i) A “taxpayer” is an individual, corporation, partnership, or other entity that is assigned a single Employer Identification Number as defined in 26 CFR 301.7701-12;
</P>
<P>(ii) “Reasonably expects” means that there is no existing or anticipated circumstance known to the taxpayer (such as an increase in production capacity) that would cause the taxpayer's tax liability to exceed the prescribed limit;
</P>
<P>(iii) A taxpayer with multiple locations must combine the tax liability for all locations with respect to distilled spirits, wine, or beer tax liability to determine eligibility for the return procedures;
</P>
<P>(iv) A taxpayer who has both domestic operations and import transactions must combine the tax liability on the domestic operations and the imports with respect to distilled spirits, wine, or beer tax liability to determine eligibility for the return procedures;
</P>
<P>(v) The controlled group rules of 26 U.S.C. 5061(e), which concern treatment of controlled groups as one taxpayer, do not apply for purposes of determining eligibility for the return procedures. However, a taxpayer who is eligible for the return procedures, and who is a member of a controlled group that owes $5 million or more in distilled spirits, wine, or beer excise taxes per year, is required to pay taxes by electronic fund transfer (EFT). Quarterly payments via EFT must be transmitted in accordance with section 5061(e);
</P>
<P>(vi) A new taxpayer is eligible to use the return procedures in the first year of business simply if the taxpayer reasonably expects to be liable for not more than $1,000 (in the case of the annual return procedure) or $50,000 (in the case of the quarterly return procedure) in distilled spirits, wine, or beer taxes during that calendar year; and
</P>
<P>(vii) If a taxpayer becomes ineligible to use a return procedure described in paragraph (b)(2) or (3) of this section because the taxpayer's liability exceeds $1,000 or $50,000, respectively, during a taxable year, that taxpayer may resume that return procedure only after a full calendar year has passed during which the taxpayer's liability did not exceed $1,000 or $50,000 as the case may be. A taxpayer may not use an annual or quarterly return procedure during any calendar year in which the taxpayer reasonably expects to be liable for more than $1,000 (in the case of the annual return procedure) or $50,000 (in the case of the quarterly return procedure) in distilled spirits, wine, or beer taxes.
</P>
<P>(c) <I>Filing.</I> (1) The original of TTB Form 5000.25, with remittance covering the full amount of the tax, shall be filed with the appropriate TTB officer not later than the 14th day after the last day of the return period except as provided by paragraph (d) of this section. If the due date falls on a Saturday, Sunday, or legal holiday, the return and remittance are due on the immediately preceding day that is not a Saturday, Sunday, or legal holiday, except as otherwise provided in paragraph (d) of this section.
</P>
<P>(2) The tax shall be paid in full by remittance at the time the return is filed, unless the proprietor is required to make remittances by electronic fund transfer in accordance with § 26.112a.
</P>
<P>(3) The remittance may be in any form that is authorized to be accepted under the provisions of § 70.61 of this chapter.
</P>
<P>(4) When the return and remittance are delivered by U.S. mail to the office of the appropriate TTB officer, the date of the official postmark of the U.S. Postal Service stamped on the cover in which the return and remittance were mailed shall be treated as the date of delivery.
</P>
<P>(d) <I>Special September rule for taxes due by semimonthly return.</I> (1) <I>Division of second semimonthly period.</I> (i) <I>General.</I> Except as otherwise provided in paragraph (d)(1)(ii) of this section, the second semimonthly period for the month of September is divided into two payment periods, from the 16th day through the 26th day, and from the 27th day through the 30th day. The taxpayer shall file a return on TTB Form 5000.25, and make remittance, for the period September 16-26, no later than September 29. The taxpayer shall file a return on TTB Form 5000.25, and make remittance, for the period September 27-30, no later than October 14.
</P>
<P>(ii) <I>Taxpayment not by electronic fund transfer.</I> In the case of taxes for which remittance by electronic fund transfer (EFT) is not required by § 26.112a, the second semimonthly period of September is divided into two payment periods, from the 16th day through the 25th day, and from the 26th day through the 30th day. The taxpayer shall file a return on TTB Form 5000.25, and make remittance, for the period September 16-25, no later than September 28. The taxpayer shall file a return on TTB Form 5000.25, and make remittance, for the period September 26-30, no later than October 14.
</P>
<P>(2) <I>Amount of payment—Safe harbor rule.</I> (i) <I>General.</I> Taxpayers are considered to have met the requirements of paragraph (d)(1)(i) of this section if the amount paid no later than September 29 is not less than 11/15ths (73.3 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(ii) <I>Taxpayment not by EFT.</I> Taxpayers are considered to have met the requirements of paragraph (d)(1)(ii) of this section if the amount paid no later than September 28 is not less than 2/3rds (66.7 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(3) <I>Weekends and holidays.</I> If the required taxpayment due date for the period September 16-25 or September 16-26, as applicable, falls on a Saturday or legal holiday, the return and remittance are due on the immediately preceding day. If the required due date falls on a Sunday, the return and remittance are due on the immediately following day.
</P>
<P>(e) <I>Default.</I> Where a taxpayer has defaulted in any payment of tax under this section, during the period of such default and until the appropriate TTB officer finds that the revenue will not be jeopardized by deferred payment of tax under this section, the tax shall be prepaid by such taxpayer in accordance with the provisions of § 26.113. During such period, distilled spirits, wine, or beer shall not be released from the proprietor's premises before the proprietor has paid the tax thereon. In the event of default, the appropriate TTB officer shall immediately notify the Secretary and the revenue agent at the premises that tax is to be prepaid until further notice, and upon a finding that the revenue will not be jeopardized by resumption of deferred payment or tax under this section, the appropriate TTB officer shall notify the Secretary and the revenue agent that deferred payment may be resumed.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0497)
</APPRO>
<SECAUTH TYPE="N">(Aug. 16, 1954, Ch. 736, 68A Stat. 775, (26 U.S.C. 6301); June 29, 1956, Ch. 462, 70 Stat. 391 (26 U.S.C. 6301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-277, 53 FR 45268, Nov. 9, 1988, as amended by T.D. ATF-301, 55 FR 47658, Nov. 14, 1990; T.D. ATF-365, 60 FR 33674, June 28, 1995; T.D. ATF-451, 66 FR 21669, May 1, 2001. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-41, 71 FR 5604, Feb. 2, 2006; T.D. TTB-89, 76 FR 3513, Jan. 20, 2011; T.D. TTB-94, 76 FR 52862, Aug. 24, 2011; T.D. TTB-146, 82 FR 1133, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.112a" NODE="27:1.0.1.1.21.7.422.51" TYPE="SECTION">
<HEAD>§ 26.112a   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) <I>General.</I> (1) Each taxpayer who was liable, during a calendar year, for a gross amount equal to or exceeding five million dollars in distilled spirits taxes combining tax liabilities incurred under this part and parts 19 and 27 of this chapter, a gross amount equal to or exceeding five million dollars in wine taxes combining tax liabilities incurred under this part and parts 24 and 27 of this chapter, or a gross amount equal to or exceeding five million dollars in beer taxes combining tax liabilities incurred under this part and parts 25 and 27 of this chapter, shall use a commercial bank in making payment by electronic fund transfer (EFT) of such taxes during the succeeding calendar year. Payment by cash, check, or money order, of distilled spirits taxes, wine taxes, or beer taxes, as described in § 26.112, is not authorized for a taxpayer who is required, by this section, to make remittances by EFT. For purposes of this section, the dollar amount of tax liability is to be summarized separately for distilled spirits taxes, wine taxes, or beer taxes, and is defined as the gross tax liability on each type of product for which taxes are paid in accordance with this subpart, taxable withdrawals from premises in the United States, and importation during the calendar year, without regard to any drawbacks, credits, or refunds, for all premises at which tax liabilities are incurred by the taxpayer. Overpayments are not taken into account in summarizing the gross tax liability.
</P>
<P>(2) For the purposes of this section, a taxpayer includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place it appears in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT.
</P>
<P>(3) A taxpayer who is required by this section to make remittances by EFT, shall make a separate EFT remittance and file a separate tax return, for each premises from which distilled spirits, wine, or beer is withdrawn upon determination of tax.
</P>
<P>(b) <I>Requirements.</I> (1) On or before January 10 of each calendar year, except for a taxpayer already remitting the tax by EFT, each taxpayer who was liable for a gross amount equal to or exceeding five million dollars in distilled spirits taxes combining tax liabilities incurred under this part and parts 19 and 27 of this chapter, a gross amount equal to or exceeding five million dollars in wine taxes combining tax liabilities incurred under this part and parts 24 and 27 of this chapter, or a gross amount equal to or exceeding five million dollars in beer taxes combining tax liabilities incurred under this part and parts 25 and 27 of this chapter during the previous calendar year, shall notify, in writing, the appropriate TTB officer. The notice shall be an agreement to make remittances by EFT.
</P>
<P>(2) For each return filed in accordance with this part, the taxpayer shall direct the taxpayer's bank to make an electronic fund transfer in the amount of the taxpayment to the Treasury Account as provided in paragraph (e) of this section. The request shall be made to the bank early enough for the transfer to be made to the Treasury Account by no later than the close of business on the last day for filing the return, prescribed in § 26.112 or § 26.113. The request shall take into account any time limit established by the bank.
</P>
<P>(3) If a taxpayer was liable for less than five million dollars in distilled spirits taxes combining tax liabilities incurred under this part and parts 19 and 27 of this chapter, less than five million dollars in wine taxes combining tax liabilities incurred under this part and parts 24 and 27 of this chapter, or less than five million dollars in beer taxes combining tax liabilities incurred under this part and parts 25 and 27 of this chapter during the preceding calendar year, the taxpayer may choose either to continue remitting the tax as provided in this section or to remit the tax with the return as prescribed by § 26.112. Upon filing the first return on which the taxpayer chooses to discontinue remitting the tax by EFT and to begin remitting the tax with the tax return, the taxpayer shall notify the appropriate TTB officer by attaching a written notification to the tax return, stating that no taxes are due by EFT, because the tax liability during the preceding calendar year was less than five million dollars, and that the remittance shall be filed with the tax return.
</P>
<P>(c) <I>Remittance.</I> (1) Each taxpayer shall show on the tax return, information about remitting the tax for that return by EFT and shall file the return with the appropriate TTB officer.
</P>
<P>(2) Remittances shall be considered as made when the taxpayment by electronic fund transfer is received by the Treasury Account. For purposes of this section, a taxpayment by electronic fund transfer shall be considered as received by the Treasury Account when it is paid to a Federal Reserve Bank.
</P>
<P>(3) When the taxpayer directs the bank to effect an electronic fund transfer message as required by paragraph (b)(2) of this section, any transfer data record furnished to the taxpayer, through normal banking procedures, will serve as the record of payment, and shall be retained as part of required records.
</P>
<P>(d) <I>Failure to make a taxpayment by EFT.</I> The taxpayer is subject to a penalty imposed by 26 U.S.C. 5684, 6651, or 6656, as applicable, for failure to make a taxpayment by EFT on or before the close of business on the prescribed last day for filing.
</P>
<P>(e) <I>Procedure.</I> Upon the notification required under paragraph (b)(1) of this section, the appropriate TTB officer will issue to the taxpayer a TTB procedure entitled, Payment of Tax by Electronic Fund Transfer. This publication outlines the procedure a taxpayer is to follow when preparing returns and EFT remittances in accordance with this part.  U.S. Customs and Border Protection (CBP) will provide the taxpayer with instructions for preparing EFT remittances for payments to be made to CBP.</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0083)


</APPRO>
<CITA TYPE="N">[T.D. ATF-185, 49 FR 37580, Sept. 25, 1984, as amended by T.D. ATF-245, 52 FR 532, Jan. 7, 1987; T.D. ATF-251, 52 FR 19339, May 22, 1987; T.D. ATF-262, 52 FR 47560, Dec. 15, 1987; T.D. ATF-277, 53 FR 45268, Nov. 9, 1988. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-91, 76 FR 5479, Feb. 1, 2011; T.D. TTB-146, 82 FR 1133, Jan. 4, 2017; T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.113" NODE="27:1.0.1.1.21.7.422.52" TYPE="SECTION">
<HEAD>§ 26.113   Returns for prepayment of taxes.</HEAD>
<P>(a) <I>General.</I> Except as provided in §§ 26.66(c), 26.67(b), or 26.68(b), a proprietor must have an approved bond to defer payment of taxes. If a proprietor does not have an approved bond covering the deferred payment of taxes, or if such bond is in an insufficient penal sum, or if there is default by him in any payment of tax under this subpart, liquors shall not be released from bonded storage before the proprietor has paid the tax thereon.
</P>
<P>(b) <I>Remittances.</I> Remittances submitted to cover prepayment of taxes under this subpart shall be in cash, United States postal money orders, certified checks, or cashier's checks.
</P>
<P>(c) <I>Distilled spirits.</I> In all cases where taxes equal to the taxes imposed in the United States by 26 U.S.C. 5001(a)(1) are to be paid before distilled spirits may be released for shipment, the proprietor shall pay such taxes pursuant to a return on TTB Form 5000.25, as prescribed in § 26.81.
</P>
<P>(d) <I>Wine.</I> In all cases where taxes equal to the taxes imposed in the United States by 26 U.S.C. 5041, are to be paid before wine may be withdrawn from bonded storage, the proprietor shall pay such taxes pursuant to a return on TTB Form 5000.25, and as prescribed in § 26.96.
</P>
<P>(e) <I>Beer.</I> In all cases where taxes equal to the taxes imposed in the United States by 26 U.S.C. 5051, are to be paid before beer may be withdrawn from bonded storage, the brewer shall pay such taxes pursuant to a return on TTB Form 5000.25, and as prescribed in § 26.105.
</P>
<P>(f) <I>Applicable procedures.</I> The procedures of § 26.112(c) with respect to returns delivered by United States mail shall apply to returns and remittances filed under the provisions of this section.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0497)
</APPRO>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 26.113, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV7>


<DIV7 N="423" NODE="27:1.0.1.1.21.7.423" TYPE="SUBJGRP">
<HEAD>Permit To Ship Liquors and Articles</HEAD>


<DIV8 N="§ 26.114" NODE="27:1.0.1.1.21.7.423.53" TYPE="SECTION">
<HEAD>§ 26.114   Permit to ship required.</HEAD>
<P>Before liquors and articles of Puerto Rican manufacture, upon which all internal revenue taxes have been paid or deferred as prescribed in this subpart, may be shipped to the United States, a permit to ship, form TTB F 5170.7, must be obtained from the Secretary as provided in §§ 26.115 and 26.116.
</P>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.115" NODE="27:1.0.1.1.21.7.423.54" TYPE="SECTION">
<HEAD>§ 26.115   Application, TTB Form 5170.7.</HEAD>
<P>Application for permit to ship to the United States liquors and articles of Puerto Rican manufacture on which all taxes have been paid or deferred as prescribed in this subpart shall be made by the shipper on TTB Form 5170.7, in sextuple. Each TTB Form 5170.7 will be given a serial number, by the applicant, beginning with “1” for the first day of January of each year and running consecutively thereafter to December 31, inclusive. This serial number will be prefixed by the last two digits of the calendar year, e.g. “61-1.” All copies of the form shall be delivered to the revenue agent for execution of his certification thereon and forwarding of all copies to the Secretary within sufficient time to allow for the issuance of the permit and customs inspection as provided in § 26.116.
</P>
<CITA TYPE="N">[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-146, 82 FR 1133, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.116" NODE="27:1.0.1.1.21.7.423.55" TYPE="SECTION">
<HEAD>§ 26.116   Issuance of permit, TTB Form 5170.7, and customs inspection.</HEAD>
<P>If the application has been properly executed and the Secretary or their delegate finds that all internal revenue taxes imposed under 26 U.S.C. 7652(a), have been computed under the provisions of this part and have been paid or have been deferred under the applicable provisions of this part, they will execute their permit on all copies thereof, retain one copy of the form, return two copies to the shipper, and send three copies to the district director of customs in Puerto Rico. The shipper will submit the two copies of the TTB Form 5170.7 to the district director of customs at least six hours prior to the intended lading of the merchandise. The district director of customs will then inspect the merchandise covered by the TTB Form 5170.7 after which they will execute their certificate on each copy of TTB Form 5170.7 indicating all exceptions. If discrepancies appear indicating differences between the quantity covered by TTB Form 5170.7 and the quantity actually contained in the shipment or the improper tax payment of the merchandise, they will withhold release of the shipment and notify the Secretary of such discrepancies. Thereupon, such discrepancies must be corrected in the shipping documents and additional tax paid, if required, prior to release of the merchandise. The district director of customs, upon release of the merchandise for shipment, will retain one copy of the TTB Form 5170.7, return two copies to the shipper, and send two copies to the district director of customs at the port of arrival in the United States, one of which should be mailed and the other dispatched on the vessel concerned for the guidance of the appropriate TTB officer who will handle the cargo. After the shipment has been cleared by the district director of customs in Puerto Rico, the shipper shall retain one copy of the TTB Form 5170.7 and send one copy thereof, with other shipping documents, to the district director of customs at the port of arrival.
</P>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 26.116, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV7>


<DIV7 N="424" NODE="27:1.0.1.1.21.7.424" TYPE="SUBJGRP">
<HEAD>Procedure at Port of Arrival</HEAD>


<DIV8 N="§ 26.117" NODE="27:1.0.1.1.21.7.424.56" TYPE="SECTION">
<HEAD>§ 26.117   Action by carrier.</HEAD>
<P>The carrier of the merchandise specified on the TTB Form 5170.7 shall, at the time of unlading at the port of arrival in the United States, segregate and arrange the cases of liquors or articles for convenient customs examination and will assume any expense incurred in connection therewith.
</P>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955, as amended by T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.118" NODE="27:1.0.1.1.21.7.424.57" TYPE="SECTION">
<HEAD>§ 26.118   Inspection by district director of customs at port of arrival.</HEAD>
<P>On receipt of properly executed TTB Form 5170.7 from the shipper and the copies of TTB Form 5170.7 from the district director of customs in Puerto Rico, the district director of customs at the port of arrival shall inspect the merchandise to determine whether the quantity specified on the TTB Form 5170.7 is contained in the shipment. He will then execute his certificate on each copy of TTB Form 5170.7 received and indicate thereon any exceptions found at the time of discharge. The statement of exceptions should show the serial number of each case or other shipping container which sustained a loss, the quantity of liquor reported shipped in such container and the quantity lost. Losses occurring as the result of missing bottles, cases, or other containers should be listed separately from empty containers and containers which have sustained losses due to breakage. Where the statement is made on the basis of bottles missing or lost due to other cause, the number and size of bottles lost should be shown. If the district director of customs finds that the full amount of the taxes due has not been paid, he will require the difference due to be paid prior to release of the merchandise in accordance with the applicable provisions of this part. When the proper inspection of the merchandise has been effected, and any additional taxes found to be due on the liquors or articles collected, the merchandise will be released.
</P>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975. T.D. ATF-451, 66 FR 21669, May 1, 2001; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.119" NODE="27:1.0.1.1.21.7.424.58" TYPE="SECTION">
<HEAD>§ 26.119   Disposition of forms by district director of customs.</HEAD>
<P>Two copies of the TTB Form 5170.7 will be forwarded to the appropriate TTB officer, and one copy of the form will be retained by the district director of customs and be available for inspection by appropriate TTB officers.
</P>
<CITA TYPE="N">[T.D. ATF-451, 66 FR 21669, May 1, 2001, as amended by T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.21.8" TYPE="SUBPART">
<HEAD>Subpart F—Liquors and Articles Purchased by Tourists in Puerto Rico</HEAD>


<DIV8 N="§ 26.125" NODE="27:1.0.1.1.21.8.425.1" TYPE="SECTION">
<HEAD>§ 26.125   Taxable.</HEAD>
<P>When liquors and articles subject to tax are brought into the United States by tourists, the tax thereon shall be paid as provided in this subpart. 


</P>
</DIV8>


<DIV8 N="§ 26.126" NODE="27:1.0.1.1.21.8.425.2" TYPE="SECTION">
<HEAD>§ 26.126   Taxpayment in Puerto Rico.</HEAD>
<P>Liquors upon which all Federal internal revenue taxes have been paid in Puerto Rico may be brought into the United States for personal consumption without payment of additional taxes. When distilled spirits, wines, or beer are purchased by a tourist for consumption in the United States, the internal revenue tax due may be paid to the appropriate TTB officer, and a TTB receipt obtained, or the tax may be paid to U.S. Customs and Border Protection authorities, who will issue a customs receipt. The tax on articles purchased by tourists may be paid in the same manner. The receipt received from the appropriate TTB officer or from the customs officer shall be presented, as required, as evidence that the tax has been paid.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended, 1358, as amended (26 U.S.C. 5061, 5205))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 23954, June 7, 1985, as amended by T.D. ATF-251, 52 FR 19339, May 22, 1987; T.D. TTB-91, 76 FR 5479, Feb. 1, 2011; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.128" NODE="27:1.0.1.1.21.8.425.3" TYPE="SECTION">
<HEAD>§ 26.128   Taxpayment at port of arrival.</HEAD>
<P>If the internal revenue tax on liquors and articles is not paid in Puerto Rico, it shall be paid by the tourist at the port of arrival prior to release of the liquors or articles from customs custody. The tax may be paid to an appropriate TTB officer, and a TTB receipt obtained, or the tax may be paid to the director of customs, who will issue a customs receipt. If payment is to be made to an appropriate TTB officer, the director of customs will notify the appropriate TTB officer of the amount of tax due. On payment of the tax to the director of customs, or on submission of the TTB receipt for the tax, the director of customs will release the liquors or articles.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19339, May 22, 1987, as amended by T.D. ATF-451, 66 FR 21669, May 1, 2001; T.D. TTB-91, 76 FR 5479, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.21.9" TYPE="SUBPART">
<HEAD>Subpart G—Closures for Distilled Spirits From Puerto Rico</HEAD>


<DIV8 N="§ 26.135" NODE="27:1.0.1.1.21.9.425.1" TYPE="SECTION">
<HEAD>§ 26.135   Containers of distilled spirits to bear closures.</HEAD>
<P>Containers of 1 gallon (3.785 liters) or less of distilled spirits, upon which all Federal internal revenue taxes have been paid or deferred in Puerto Rico under provisions of this part, shall have closures or other devices affixed in accordance with the provisions of this part, prior to shipment to the United States.
</P>
<SECAUTH TYPE="N">(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 23954, June 7, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 26.136" NODE="27:1.0.1.1.21.9.425.2" TYPE="SECTION">
<HEAD>§ 26.136   Affixing closures.</HEAD>
<P>Each container of distilled spirits having a capacity of one gallon (3.785 liters) or less must have a closure or other device securely affixed to the container. The closure or other device must be constructed in such a manner as to require breaking in order to gain access to the contents of the container.
</P>
<SECAUTH TYPE="N">(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-119, 79 FR 17033, Mar. 27, 2014]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.21.10" TYPE="SUBPART">
<HEAD>Subpart H—Records and Reports of Liquors From Puerto Rico</HEAD>


<DIV8 N="§ 26.163" NODE="27:1.0.1.1.21.10.425.1" TYPE="SECTION">
<HEAD>§ 26.163   General requirements.</HEAD>
<P>Except as provided in § 26.164, every person, other than a tourist, bringing liquor into the United States from Puerto Rico shall keep records and render reports of the physical receipt and disposition of such liquors in accordance with part 31 
<SU>1</SU>
<FTREF/> of this chapter: <I>Provided,</I> That if the person who is responsible for release of the liquors from customs custody does not take physical possession of the liquors, he shall keep commercial records reflecting such release; such records shall identify the kind and quantity of the liquors released, the name and address of the person receiving the liquors from customs custody, and shall be filed chronologically by release dates. Records and reports will not be required under this part with respect of liquors while in customs custody.
</P>
<FTNT>
<P>
<SU>1</SU> (“Alcohol Beverage Dealers”)</P></FTNT>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(72 Stat. 1342, 1395; 26 U.S.C. 5114, 5555)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-2, 37 FR 22736, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005] 


</CITA>
</DIV8>


<DIV8 N="§ 26.164" NODE="27:1.0.1.1.21.10.425.2" TYPE="SECTION">
<HEAD>§ 26.164   Proprietors of taxpaid premises.</HEAD>
<P>Transactions involving the bringing of liquors into the United States from Puerto Rico by proprietors of distilled spirits plants in the United States qualified under the provisions of this chapter shall be recorded and reported in accordance with the regulations governing the operations of such premises in the United States.
</P>
<CITA TYPE="N">[T.D. 6402, 24 FR 6090, July 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-198, 50 FR 8551, Mar. 1, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 26.164a" NODE="27:1.0.1.1.21.10.425.3" TYPE="SECTION">
<HEAD>§ 26.164a   Package gauge record.</HEAD>
<P>When required in this part, with respect to Puerto Rican spirits, a package gauge record shall be prepared to show:
</P>
<P>(a) The date prepared;
</P>
<P>(b) The related transaction form and its serial number;
</P>
<P>(c) The producer or rectifier (processor) of the spirits, and his name, address, and plant registration number; and
</P>
<P>(d) For each package, the:
</P>
<P>(1) Package identification or serial number;
</P>
<P>(2) Kind of spirits;
</P>
<P>(3) Gross weight;
</P>
<P>(4) Tare;
</P>
<P>(5) Net weight;
</P>
<P>(6) Proof gallons; and
</P>
<P>(7) Proof.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8551, Mar. 1, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 26.165" NODE="27:1.0.1.1.21.10.425.4" TYPE="SECTION">
<HEAD>§ 26.165   Certificate of effective tax rate computation.</HEAD>
<P>(a) Where distilled spirits of Puerto Rican manufacture which contain eligible wine or eligible flavors are to be tax determined for shipment to the United States or are to be shipped to the United States without payment of tax for transfer from customs custody to the bonded premises of a distilled spirits plant, the consignor shall prepare a certificate of effective tax rate computation showing the:
</P>
<P>(1) The serial number of TTB Form 5110.31 or 5110.51;
</P>
<P>(2) Elements necessary to compute the effective tax rate in accordance with § 26.79a as follows—
</P>
<P>(i) Proof gallons of distilled spirits (exclusive of distilled spirits derived from eligible flavors);
</P>
<P>(ii) Wine gallons of each eligible wine and the percentage of alcohol by volume of each; and
</P>
<P>(iii) Proof gallons of distilled spirits derived from each eligible flavor;
</P>
<P>(3) Date of the statement of eligibility for each eligible flavor (see § 26.50a).
</P>
<P>(4) Effective tax rate applied to the product.
</P>
<P>(5) Signature and title of the consignor.
</P>
<P>(b) If the spirits are tax determined for shipment to the United States, the proprietor shall retain the certificate for a period of not less than three years after the last tax determination to which the certificate is applicable. If the spirits are shipped to the United States for transfer from customs custody to the bonded premises of a distilled spirits plant, the proprietor shall forward the original to the consignee distilled spirits plant in the United States and retain a copy for his files.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0203)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1366, as amended (26 U.S.C. 5232); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18067, Apr. 30, 1990. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.21.11" TYPE="SUBPART">
<HEAD>Subpart I—Claims for Drawback on Eligible Articles From Puerto Rico</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-263, 52 FR 46594, Dec. 9, 1987, unless otherwise noted. 


</PSPACE></SOURCE>

<DIV8 N="§ 26.170" NODE="27:1.0.1.1.21.11.425.1" TYPE="SECTION">
<HEAD>§ 26.170   Drawback of tax.</HEAD>
<P>Any person who brings eligible articles into the United States from Puerto Rico may claim drawback of the distilled spirits excise taxes paid on such articles as provided in this subpart.


</P>
</DIV8>


<DIV8 N="§ 26.171" NODE="27:1.0.1.1.21.11.425.2" TYPE="SECTION">
<HEAD>§ 26.171   Claimant registration.</HEAD>
<P>Any person filing claim for drawback of tax on eligible articles brought into the United States from Puerto Rico must register annually as a nonbeverage domestic drawback claimant. Registration will be accomplished when the claimant submits the first drawback claim for each year, along with the required supporting data for the claim, under subpart G of part 17 of this chapter. For purposes of registration, subpart C part 17 of this chapter shall apply as if the use and tax determination occurred in the United States at the time the article was brought into the United States, and each business location from which entry of eligible articles is caused or effected shall be treated as a place of manufacture.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37405, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 26.172" NODE="27:1.0.1.1.21.11.425.3" TYPE="SECTION">
<HEAD>§ 26.172   Bonds.</HEAD>
<P>(a) <I>General.</I> Persons bringing eligible articles into the United States from Puerto Rico and intending to file monthly claims for drawback under the provisions of this subpart shall obtain a bond on Form 5154.3. When the limit of liability under a bond given in less than the maximum amount has been reached, further drawback on monthly claims may be suspended until a strengthening or superseding bond in a sufficient amount has been furnished. For provisions relating to bonding requirements, subpart E of part 17 of this chapter is incorporated in this part.
</P>
<P>(b) <I>Approval required.</I> No person bringing eligible articles into the United States from Puerto Rico may file monthly claims for drawback under the provisions of this subpart until a bond on TTB Form 5154.3 has been approved.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31427, June 20, 1996, as amended by T.D. ATF-451, 66 FR 21669, May 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.173" NODE="27:1.0.1.1.21.11.425.4" TYPE="SECTION">
<HEAD>§ 26.173   Claims for drawback.</HEAD>
<P>(a) <I>General.</I> Persons bringing eligible articles into the United States from Puerto Rico must file claim for drawback on TTB Form 2635 (5620.8). Upon finding that the claimant has satisfied the requirements of this subpart, the appropriate TTB officer will allow the drawback at $1 less than the rate applicable under 26 U.S.C. 7652(f). Claims for products manufactured in Puerto Rico must be filed separately from claims filed under part 17 of this chapter for products manufactured in the United States.
</P>
<P>(b) <I>Information on claims.</I> The claim must set forth the following:
</P>
<P>(1) [Reserved]
</P>
<P>(2) That the eligible articles brought into the United States on which drawback is claimed are fully tax paid or tax-determined;
</P>
<P>(3) That the eligible articles on which drawback is claimed are nonbeverage products; and
</P>
<P>(4) That the eligible articles were manufactured in Puerto Rico in compliance with an approved formula in accordance with § 26.51.
</P>
<P>(c) <I>Supporting data.</I> Each claim shall be accompanied by supporting data as specified in this paragraph. TTB Form 5154.2, Supporting Data for Nonbeverage Drawback Claims, may be used, or the claimant may use any suitable format that provides the following information:
</P>
<P>(1) The claimant's employer identification number, as required by §§ 17.31 and 17.32 of this chapter; and
</P>
<P>(2) A description of each eligible article as follows:
</P>
<P>(i) Name and type of each product;
</P>
<P>(ii) Name and address of the manufacturer of each product;
</P>
<P>(iii) Formula number;
</P>
<P>(iv) Alcohol content of each product;
</P>
<P>(v) Quantity of each product;
</P>
<P>(vi) Proof gallons of distilled spirits contained in each product;
</P>
<P>(vii) Date of entry of the eligible product into the United States, and
</P>
<P>(viii) The serial number of each TTB Form 487-B (5170.7) covering such articles shipped to the United States.
</P>
<P>(d) <I>Date of filing claim.</I> Quarterly claims for drawback shall be filed within the 6 months next succeeding the quarter in which the eligible products covered by the claim were brought into the United States. Monthly claims for drawback may be filed at any time after the end of the month in which the eligible products covered by the claim were brought into the United States, but must be filed not later than the close of the sixth month succeeding the quarter in which the eligible products were brought into the United States.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0494)
</APPRO>
<CITA TYPE="N">[T.D. ATF-263, 52 FR 46594, Dec. 9, 1987, as amended by T.D. ATF-271, 53 FR 17559, May 17, 1988; T.D. ATF-379, 61 FR 31427, June 20, 1996; T.D. ATF-451, 66 FR 21669, May 1, 2001. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-79, 74 FR 37406, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 26.174" NODE="27:1.0.1.1.21.11.425.5" TYPE="SECTION">
<HEAD>§ 26.174   Records.</HEAD>
<P>(a) <I>General.</I> Every person intending to file claim for drawback on eligible articles brought into the United States from Puerto Rico shall keep permanent records of the data elements required by this section. Such records shall be maintained at the business premises for which the claim is filed and shall be available for inspection by any appropriate TTB officer during business hours.
</P>
<P>(b) <I>Details of records.</I> Each person intending to claim drawback on eligible articles brought into the United States shall maintain permanent records showing the following data:
</P>
<P>(1) The name, description, quantity, and formula number of each such article.
</P>
<P>(2) The alcohol content of each such article.
</P>
<P>(3) Name and address of the manufacturer and shipper, and date of entry into the United States.
</P>
<P>(4) Evidence of taxpayment of distilled spirits in accordance with paragraph (c) of this section.
</P>
<P>(c) <I>Evidence of taxpayment of distilled spirits.</I> All shipments of eligible articles from Puerto Rico to the United States shall be supported by the vendor's commercial invoice which must bear a certification as to taxpayment by the person who determined or paid the tax, and include the following information:
</P>
<P>(1) The name and address of vendor;
</P>
<P>(2) The number of the applicable invoice;
</P>
<P>(3) The serial or package identification number of the container;
</P>
<P>(4) Name, type, and formula number of the product;
</P>
<P>(5) The kind of spirits, proof, and proof gallons in the container; and
</P>
<P>(6) The serial number of each Form 487-B (5170.7) covering such articles shipped to the United States.
</P>
<P>(d) <I>Form of record.</I> No particular form of record is prescribed, but the data required to be shown shall be readily ascertainable from the records kept by the drawback claimant.
</P>
<P>(e) <I>Retention of records.</I> Each drawback claimant shall retain for a period of not less than three years all records required by this subpart, all commercial invoices or shipping documents, and all bills of lading received evidencing receipt and tax determination of the spirits. In addition, a copy of each approved formula returned to the manufacturer of eligible articles shall be retained for not less than three years from the date he files his last claim for drawback under the formula. The records, forms, and formulas shall be readily available during regular business hours for examination by appropriate TTB officers.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0494)
</APPRO>
<CITA TYPE="N">[T.D. ATF-263, 52 FR 46594, Dec. 9, 1987, as amended by T.D. ATF-451, 66 FR 21669, May 1, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="Ia" NODE="27:1.0.1.1.21.12" TYPE="SUBPART">
<HEAD>Subpart Ia—Shipment of Denatured Spirits and Products Made With Denatured Spirits to the United States From Puerto Rico</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-199, 50 FR 9198, Mar. 1, 1985, unless otherwise noted. Redesignated by T.D. ATF-459, 66 FR 38550, July 25, 2001.


</PSPACE></SOURCE>

<DIV8 N="§ 26.191" NODE="27:1.0.1.1.21.12.425.1" TYPE="SECTION">
<HEAD>§ 26.191   Notice of shipment.</HEAD>
<P>At least 5 business days before shipment, each proprietor of a distilled spirits plant in Puerto Rico who intends to ship denatured spirits to the United States in containers larger than 5 gallons, and each person in Puerto Rico who intends to ship products made with denatured spirits to the United States in containers larger than 5 gallons shall notify the chemist of the Treasury of Puerto Rico of the intent to ship.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0336)
</APPRO>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9198, Mar. 1, 1985, T.D. ATF-199, 50 FR 20099, May 14, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 26.192" NODE="27:1.0.1.1.21.12.425.2" TYPE="SECTION">
<HEAD>§ 26.192   Samples and analysis.</HEAD>
<P>The chemist of the Treasury of Puerto Rico may take samples of the product to be shipped in order to determine that it is eligible for tax-free status.


</P>
</DIV8>


<DIV8 N="§ 26.193" NODE="27:1.0.1.1.21.12.425.3" TYPE="SECTION">
<HEAD>§ 26.193   Notification of tax liability.</HEAD>
<P>(a) If the chemist of the Treasury of Puerto Rico finds that denatured spirits or products made with denatured spirits are not eligible for tax-free shipment, before the shipment is made, the chemist will immediately notify the shipper that the article is subject to tax, payable in accordance with §§ 26.107 through 26.110.
</P>
<P>(b) If the chemist of the Treasury of Puerto Rico finds that denatured spirits or products made with denatured spirits are not eligible for tax-free shipment, after the shipment is made, the chemist will immediately notify the shipper that the tax shall be paid immediately in accordance with § 26.113. The chemist will also notify the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9198, Mar. 1, 1985, as amended by T.D. ATF-451, 66 FR 21670, May 1, 2001. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.194" NODE="27:1.0.1.1.21.12.425.4" TYPE="SECTION">
<HEAD>§ 26.194   Detention of articles.</HEAD>
<P>(a) Upon receiving a notification in accordance with § 26.193(b), the appropriate TTB officer will detain the article in accordance with part 20 of this chapter or seize the article in accordance with part 72 of this chapter.
</P>
<P>(b) After the shipper furnishes proof that the tax was paid in accordance with § 26.113, the appropriate TTB officer will release the article to the consignee.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9198, Mar. 1, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="Ib" NODE="27:1.0.1.1.21.13" TYPE="SUBPART">
<HEAD>Subpart Ib—Shipment of Bulk Distilled Spirits From Puerto Rico, Without Payment of Tax, for Transfer From Customs Custody to the Bonded Premises of a Distilled Spirits Plant</HEAD>

<AUTH>
<HED>Authority:</HED><PSPACE>Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 U.S.C. 5232).
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-62, 44 FR 71714, Dec. 11, 1979, unless otherwise noted. 


</PSPACE></SOURCE>

<DIV8 N="§ 26.196" NODE="27:1.0.1.1.21.13.425.1" TYPE="SECTION">
<HEAD>§ 26.196   General.</HEAD>
<P>Under the provisions of this subpart and § 26.86, distilled spirits brought into the United States from Puerto Rico in bulk containers may be withdrawn by the proprietor of a distilled spirits plant from customs custody and transferred in such bulk containers or by pipeline to the bonded premises of his plant, without payment of the internal revenue tax, if any, imposed on such spirits by 26 U.S.C. 7652. Such spirits so withdrawn and transferred to a distilled spirits plant (a) may be redistilled or denatured only if of 185 degrees or more of proof; and (b) may be withdrawn from internal revenue bond for any purpose authorized by 26 U.S.C. chapter 51, in the same manner as domestic distilled spirits. Spirits transferred from customs custody to the bonded premises of a distilled spirits plant under the provisions of this subpart shall be received and stored thereat, and withdrawn or transferred therefrom, subject to applicable provisions of part 19 of this chapter. The person operating the bonded premises of the distilled spirits plant to which spirits are transferred under the provisions of this subpart shall become liable for the tax on distilled spirits withdrawn from customs custody under 26 U.S.C. 5232, upon release of the spirits from customs custody and the person bringing the spirits into the United States shall thereupon be relieved of liability for the tax.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71714, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.197" NODE="27:1.0.1.1.21.13.425.2" TYPE="SECTION">
<HEAD>§ 26.197   Furnishing formula to consignee.</HEAD>
<P>Prior to the first shipment, the person shipping the spirits to the United States shall furnish a reproduced copy of the approved formula covering such spirits to the appropriate TTB officer, and to the proprietor of each distilled spirits plant to receive the spirits.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0204)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8551, Mar. 1, 1985, as amended by T.D. ATF-451, 66 FR 21670, May 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.198" NODE="27:1.0.1.1.21.13.425.3" TYPE="SECTION">
<HEAD>§ 26.198   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 26.199" NODE="27:1.0.1.1.21.13.425.4" TYPE="SECTION">
<HEAD>§ 26.199   Application and permit to ship, TTB Form 5110.31.</HEAD>
<P>Before spirits of Puerto Rican manufacture may be shipped to the United States without payment of tax for withdrawal from customs custody and transfer to the bonded premises of a distilled spirits plant, an application by the consignor on TTB Form 5110.31 for permit to ship must be approved by the Secretary. All copies of the application (original and five copies) shall be delivered to the revenue agent.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71714, Dec. 11, 1979, as amended by T.D. TTB-146, 82 FR 1134, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.199a" NODE="27:1.0.1.1.21.13.425.5" TYPE="SECTION">
<HEAD>§ 26.199a   Action by revenue agent.</HEAD>
<P>(a) <I>Gauge.</I> Puerto Rican spirits to be withdrawn for shipment to the United States as provided in this subpart shall be gauged by the revenue agent prior to withdrawal from the consignor premises. The revenue agent shall record the quantity and proof of the spirits gauged on TTB Form 5110.31. If the spirits are in packages, the revenue agent shall prepare in sextuplicate a package gauge record according to § 26.164a, attach the package gauge record to TTB Form 5110.31, and dispose of the form (and any attachments) according to the instructions thereon.
</P>
<P>(b) <I>Sealing bulk conveyances.</I> When a shipment is made in a tank, van, or other bulk conveyance (other than barrels, drums, or similar packages that are not containerized), all openings affording access to the spirits shall be sealed by the Puerto Rican revenue agent is such manner as will prevent unauthorized removal of spirits without detection.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8551, Mar. 1, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.199b" NODE="27:1.0.1.1.21.13.425.6" TYPE="SECTION">
<HEAD>§ 26.199b   Issuance and disposition of permit.</HEAD>
<P>When the Secretary receives an application on TTB Form 5110.31 and he or she finds that the applicant is in compliance with law and regulations, he or she will execute the permit to ship on all copies of TTB Form 5110.31, retain one copy, and any accompanying package gauge record as provided in § 26.164a, and return the remaining copies to the consignor who shall distribute them in accordance with the instructions on TTB Form 5110.31.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8552, Mar. 1, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.199c" NODE="27:1.0.1.1.21.13.425.7" TYPE="SECTION">
<HEAD>§ 26.199c   Action by carrier.</HEAD>
<P>The carrier of the spirits specified on the TTB Form 5110.31 shall, at the time of unlading at the port of arrival in the United States, segregate and arrange the containers of spirits for convenient customs examination and shall assume any expense incurred in connection therewith.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71714, Dec. 11, 1979, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]






</CITA>
</DIV8>


<DIV8 N="§ 26.199d" NODE="27:1.0.1.1.21.13.425.8" TYPE="SECTION">
<HEAD>§ 26.199d   Customs inspection and release.</HEAD>
<P>On receipt of a properly executed TTB Form 5110.31 from the consignor, the customs officer at the port of arrival in the United States shall inspect the corresponding shipment of spirits:
</P>
<P>(a) If a shipment is in a bulk conveyance, and:
</P>
<P>(1) The seals are intact, he shall release the shipment; or
</P>
<P>(2) If the seals are broken, he shall, before release of the spirits, affix customs seals.
</P>
<P>(b) If a shipment in packages does not arrive in a sealed conveyance, the packages shall be inspected, and if it appears that any package has sustained a loss, the package shall be weighed and its new gross weight shall be entered in contrasting color on the package gauge record attached to the related TTB Form 5110.31. The serial numbers of any seals affixed by the customs officers shall be reported on TTB Form 5110.31 under remarks with an explanation and description of any evidence of loss. After completing his inspection, the customs officer shall execute his certificate on each copy of TTB Form 5110.31 and show thereon any exceptions found at the time of his release for transfer of the spirits to the bonded premises of a distilled spirits plant. Missing packages should be reported separately from packages which have sustained losses. The customs officer shall then release the spirits to the consignee's representative and distribute all forms in accordance with the instructions on TTB Form 5110.31.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8552, Mar. 1, 1985, as amended by T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 26.199e" NODE="27:1.0.1.1.21.13.425.9" TYPE="SECTION">
<HEAD>§ 26.199e   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 26.199f" NODE="27:1.0.1.1.21.13.425.10" TYPE="SECTION">
<HEAD>§ 26.199f   Consignee premises.</HEAD>
<P>(a) <I>General.</I> When Puerto Rican spirits are received from customs custody under the provisions of this subpart, the consignee proprietor shall execute the certificate of receipt on TTB Form 5110.31 and examine all containers for evidence of loss. If it appears that spirits were lost by theft or unusual event, the proprietor shall determine the quantity of spirits lost and report the loss according to § 19.462 of this chapter.
</P>
<P>(b) <I>Packages.</I> Packages shall be received on bonded premises by the proprietor on the basis of the most recent official gauge.
</P>
<P>(c) <I>Distribution of forms.</I> The proprietor shall keep and send copies according the instructions on the form.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1512-0200 and 1512-0250)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8552, Mar. 1, 1985, as amended by T.D. ATF-451, 66 FR 21670, May 1, 2001; T.D. TTB-92, 76 FR 9171, Feb. 16, 2011]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.21.14" TYPE="SUBPART">
<HEAD>Subpart J—Products Coming Into the United States From the Virgin Islands</HEAD>


<DIV8 N="§ 26.200" NODE="27:1.0.1.1.21.14.425.1" TYPE="SECTION">
<HEAD>§ 26.200   Taxable status.</HEAD>
<P>(a) Liquors coming into the United States from the Virgin Islands, except as provided in § 26.201, are subject to a tax equal to the internal revenue tax imposed upon the production in the United States of like liquors. Articles coming into the United States from the Virgin Islands, except as provided in § 26.201, are subject to tax on the liquors contained therein at the rates imposed in the United States on like liquors of domestic production.
</P>
<P>(b) The excise taxes collected on distilled spirits and articles containing distilled spirits shall be deposited into the Treasury of the Virgin Islands only if at least 92 percent of the alcoholic content of such product is rum. The amount deposited into the Treasury of the Virgin Islands shall not exceed the lesser of $10.50, or the rate imposed by 26 U.S.C. 5001(a)(1) (including adjustments to the effective tax rate under 26 U.S.C. 5010), on each proof gallon of such distilled spirits or article containing distilled spirits coming into the United States. Such excise tax payments to the Treasury of the Virgin Islands will be reduced by one percent and the estimated amount of refunds or credits, and may be further reduced by certain amounts deposited to the U.S. Treasury as miscellaneous receipts. The moneys so transferred and paid over shall constitute a separate fund in the Treasury of the Virgin Islands, and may be expended as the Virgin Islands legislature may determine.
</P>
<P>(c) Except for products described in 26 U.S.C. 7652(c), no excise taxes shall be deposited into the Treasury of the Virgin Islands if an excise tax subsidy is provided by the Virgin Islands that is of a kind different from, or in an amount per value or volume of production greater than, any subsidy offered by the Virgin Islands to industries manufacturing products not subject to Federal excise tax.
</P>
<P>(d) Internal revenue taxes payable on liquors brought into the United States from the Virgin Islands are collected by U.S. Customs and Border Protection (CBP) in accordance with CBP requirements. The tax must be paid on the basis of a return, and the customs form (including any electronic transmissions) by which the liquors are duty- and tax-paid to CBP will be treated as a return for purposes of this part. The person bringing such liquors into the United States, if filing electronically, must file the information specified in this section with the entry or entry summary, as appropriate, along with any other information that is required by CBP to be filed with the entry or entry summary for purposes of administering the provisions of the Internal Revenue Code and Federal Alcohol Administration Act (FAA Act). Any information required by this section that is also required by, and filed with, CBP as part of the entry or entry summary for purposes of meeting CBP requirements will satisfy the requirements of this section. The following information is required as described under this section:
</P>
<P>(1) The permit number of the valid importer permit issued under the FAA Act and the regulations issued pursuant to the FAA Act (27 CFR part 1), if applicable, as required by 27 CFR 1.20 and 1.58, and the importer's name, address, and employer identification number (EIN) associated with that permit;
</P>
<P>(2) The TTB-assigned number of the valid certificate of label approval (COLA), if applicable, as required by 27 CFR 4.40 in the case of wine, 27 CFR 5.51 in the case of distilled spirits, and 27 CFR 7.31 in the case of malt beverages;
</P>
<P>(3) The name and address of the ultimate consignee;
</P>
<P>(4) The quantity of each product (for distilled spirits, in proof liters or proof gallons; for wine and beer, in liters or gallons); and
</P>
<P>(5) Information identifying each product for Internal Revenue Code and/or FAA Act purposes.
</P>
<P>(e) Distilled spirits, natural wines, and beer in bulk containers may be released from customs custody without payment of tax under the provisions of subpart Oa of this part and thereafter removed subject to tax from, respectively, a distilled spirits plant, bonded wine cellar, or brewery. The tax will be collected and paid under the provisions of parts 19, 24, and 25 of this chapter, respectively.
</P>
<P>(f)(1) Except as provided in paragraph (f)(2) of this section, in the case of an entry for warehousing (that is, products transferred directly to a customs bonded warehouse or foreign trade zone), the last day for payment of the tax shall not be later than the 14th day after the last day of the semimonthly period during which the products are removed from the first such warehouse, even if the products have been removed from that customs bonded warehouse or foreign trade zone for transfer to another customs bonded warehouse or foreign trade zone.
</P>
<P>(2) Paragraph (f)(1) of this section does not apply to any distilled spirits, wines, or beer entered for warehousing and then removed for transfer to another customs bonded warehouse or foreign trade zone that is shown to the satisfaction of the Secretary to be destined for export.
</P>
<P>(g) Regardless of the method of filing, the person bringing the liquors into the United States must retain as a record the information required by this section, any information provided to CBP to meet CBP requirements, and any supporting documentation. These records must be retained in accordance with the record retention requirements of § 26.276, and the records must be made available upon request of the appropriate TTB officer or a customs officer.


</P>
<SECAUTH TYPE="N">(26 U.S.C. 5001, 5054, 5061, 5232, 5364, 5418, 7652)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. ATF-175, 49 FR 20804, May 16, 1984, as amended by T.D. ATF-206, 50 FR 15888, Apr. 23, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-145, 81 FR 94200, Dec. 22, 2016; T.D. TTB-159, 85 FR 33542, June 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 26.201" NODE="27:1.0.1.1.21.14.425.2" TYPE="SECTION">
<HEAD>§ 26.201   Products exempt from tax.</HEAD>
<P>(a) <I>General.</I> Industrial spirits, denatured spirits, and products made with denatured spirits in the Virgin Islands may be brought into the United States without incurring tax liability imposed by 26 U.S.C. 5001 or 7652.
</P>
<P>(b) <I>Industrial spirits.</I> A distiller of industrial spirits who qualifies under regulations issued by the Governor of the Virgin Islands may ship industrial spirits to a tax-free alcohol user in the United States who holds a permit under part 22 of this chapter. Shipments shall be made in accordance with the requirements of subpart O of this part.
</P>
<P>(c) <I>Denatured spirits.</I> A distiller who qualifies under the regulations issued by the Governor of the Virgin Islands and who denatures spirits in accordance with part 21 of this chapter may ship (1) completely denatured alcohol to anyone in the United States, and/or (2) specially denatured spirits to a dealer or user of specially denatured spirits in the United States or Puerto Rico who holds a permit under part 20 of this chapter. Shipments shall be made in accordance with the requirements of subpart O of this part.
</P>
<P>(d) <I>Products made with denatured spirits.</I> A person in the Virgin Islands who manufactures products with completely denatured alcohol or specially denatured spirits in accordance with the requirements of part 20 of this chapter and regulations issued by the Governor of the Virgin Islands may ship those products to the United States in accordance with the requirements of subpart O of this part.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9199, Mar. 6, 1985, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.201a" NODE="27:1.0.1.1.21.14.425.3" TYPE="SECTION">
<HEAD>§ 26.201a   Production in the Virgin Islands for tax-free shipment to the United States.</HEAD>
<P>(a) <I>Authority of the Governor to issue regulations.</I> The Governor of the Virgin Islands, or the Governor's duly authorized agents, are authorized to issue or adopt such regulations (and to approve such bonds, and to issue, suspend, or revoke such permits, as may be required by such regulations) as are necessary to insure that:
</P>
<P>(1) Industrial spirits produced or manufactured in the Virgin Islands and shipped to the United States free of tax for the purposes authorized in 26 U.S.C. 5214(a) (2) and (3);
</P>
<P>(2) Denatured spirits manufactured in the Virgin Islands for shipment to the United States free of tax, and
</P>
<P>(3) Products manufactured in the Virgin Islands with denatured spirits, for shipment to the United States free of tax, conform in all respects to the requirements of law and this chapter imposed on like products of domestic manufacture.
</P>
<P>(b) <I>Law and regulations applicable.</I> Regulations having been issued by the Governor of the Virgin Islands and concurred in by the Secretary of the Treasury of the United States to govern the production, warehousing, and denaturation of spirits and the use of denatured spirits in the manufacture of products for shipment to the United States free of tax, such regulations are applicable in the Virgin Islands and the Virgin Islands are hereby exempted from
</P>
<P>(1) All provisions of 26 U.S.C. chapter 51, with the exception of 26 U.S.C. 5314(b) and 5687; and
</P>
<P>(2) The provisions of this chapter in respect of the production, bonded warehousing, denaturation, and withdrawal of distilled spirits and the use of denatured spirits in the United States:
</P>
<FP><I>Provided,</I> That such exemption shall be effective only to the extent that any amendments or revisions of the regulations issued by the Governor of the Virgin Islands, or the Governor's duly authorized agents, are concurred in by the Secretary of the Treasury of the United States or the Secretary's delegate. Otherwise, all provisions of law as provided in 26 U.S.C. 5314(b), and the provisions of this chapter in respect of the production, bonded warehousing, denaturation, and withdrawal from bond of distilled spirits and denatured spirits and the use of denatured spirits in the manufacture of products shall extend to and apply in the Virgin Islands (i) in respect of the production, bonded warehousing, and withdrawal of spirits for shipment to the United States free of tax for the purposes authorized in 26 U.S.C. 5214(a) (2) and (3), and (ii) in respect of the production, bonded warehousing, and denaturation of spirits, and to the withdrawal and use of denatured spirits, where the denatured spirits or products containing denatured spirits are to be shipped to the United States free of tax.
</FP>
<CITA TYPE="N">[T.D. 6402, 24 FR 6090, July 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55853, Sept. 28, 1979; T.D. ATF-198, 50 FR 8552, Mar. 1, 1985; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.201b" NODE="27:1.0.1.1.21.14.425.4" TYPE="SECTION">
<HEAD>§ 26.201b   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 26.201c" NODE="27:1.0.1.1.21.14.425.5" TYPE="SECTION">
<HEAD>§ 26.201c   Shipments of distilled spirits, natural wine, and beer to the United States without payment of tax.</HEAD>
<P>Distilled spirits, natural wine, and beer may be brought into the United States from the Virgin Islands in bulk containers without payment of tax for transfer in bond from customs custody to the bonded premises of a distilled spirits plant in the case of distilled spirits, a bonded wine cellar in the case of natural wine, or a brewery in the case of beer. Such shipments are subject to the provisions of subpart Oa of this part.
</P>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94201, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.202" NODE="27:1.0.1.1.21.14.425.6" TYPE="SECTION">
<HEAD>§ 26.202   Requirements of the Federal Alcohol Administration Act.</HEAD>
<P>(a) <I>General.</I> The Federal Alcohol Administration Act (FAA Act) and the regulations issued under the FAA Act (parts 1, 4, 5, and 7 of this chapter) provide that any person, except an agency of a State or political subdivision thereof or any officer or employee of any such agency, who brings into the United States from the Virgin Islands distilled spirits, wines, or malt beverages for nonindustrial use must comply with the permit and labeling requirements described in this section. See 27 CFR 1.10 for the definitions of distilled spirits, wine, and malt beverages under the FAA Act. Tourists bringing distilled spirits, wines, or malt beverages into the United States for personal or other noncommercial use are not subject to the provisions of the FAA Act or regulations issued pursuant to the FAA Act (parts 1, 4, 5, and 7 of this chapter).
</P>
<P>(b) <I>FAA Act basic permit.</I> Any person, except an agency of a State or a political subdivision thereof or any officer or employee of any such agency, who intends to engage in the business of bringing distilled spirits, wines, or malt beverages into the United States from the Virgin Islands must, prior to bringing such products into the United States, obtain an importer's basic permit, in accordance with the requirements of the FAA Act and regulations issued pursuant to the FAA Act, and must file with U.S. Customs and Border Protection (CBP) the number associated with this permit when filing electronically as required under 27 CFR 1.58. Also, as required under § 1.58 of this chapter, if the importer is not filing electronically, the importer must have a copy of the FAA Act basic permit and make it available upon request of the appropriate TTB officer or a customs officer.
</P>
<P>(c) <I>Certificate of label approval.</I> Any person and any agency of a State or political subdivision thereof or any officer or employee of such agency, removing for commercial purposes containers of distilled spirits, wines, or malt beverages from the Virgin Islands from customs custody for consumption, when filing electronically, must provide the TTB-assigned identification number of the valid certificate of label approval (COLA) for the distilled spirits, wines, or malt beverages with the filing of the customs entry, in accordance with the requirements of 27 CFR 4.40 in the case of wine, 27 CFR 5.51 in the case of distilled spirits, or 27 CFR 7.31 in the case of malt beverages. Also, as required under 27 CFR 4.40, 5.51, and 7.31, if the importer is not filing electronically, the importer must provide a copy of the valid COLA to CBP at the time of entry.
</P>
<P>(d) <I>Foreign certificates.</I> Any person and any agency of a State or political subdivision thereof or any officer or employee of such agency, bringing into the United States from the Virgin Islands for commercial purposes and for consumption containers of distilled spirits or wines that require a certificate under 27 CFR 4.45(a) in the case of wine or 27 CFR 5.52 in the case of distilled spirits must be in possession of the certificate (and accompanying invoice, if applicable) at the time of release from customs custody.
</P>
<SECAUTH TYPE="N">(Secs. 3, 5, 49 Stat. 978, as amended, 981, as amended; 27 U.S.C. 203, 205)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94201, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.203" NODE="27:1.0.1.1.21.14.425.7" TYPE="SECTION">
<HEAD>§ 26.203   Containers of 1 gallon (3.785 liters) or less.</HEAD>
<P>Containers of distilled spirits brought into the United States from the Virgin Islands, having a capacity of not more than 1 gallon (3.785 liters), shall conform to the requirements of subpart P of this part.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1374 (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-34, 41 FR 46864, Oct. 26, 1976]


</CITA>
</DIV8>


<DIV8 N="§ 26.203a" NODE="27:1.0.1.1.21.14.425.8" TYPE="SECTION">
<HEAD>§ 26.203a   Containers in excess of 1 gallon (3.785 liters).</HEAD>
<P>Containers of distilled spirits brought into the United States from the Virgin Islands, having a capacity in excess of 1 gallon (3.785 liters), are required to be marked in accordance with customs regulations (19 CFR chapter I).
</P>
<CITA TYPE="N">[T.D. 6695, 28 FR 12936, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-34, 41 FR 46864, Oct. 26, 1976; T.D. ATF-206, 50 FR 23955, June 7, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 26.204" NODE="27:1.0.1.1.21.14.425.9" TYPE="SECTION">
<HEAD>§ 26.204   Regauge.</HEAD>
<P>Distilled spirits withdrawn from insular bonded warehouses for shipment to the United States may be gauged at the time of withdrawal by an insular gauger. When such gauges are made, a record of gauge shall be prepared by the insular gauger showing the name of the distiller; and the serial number, the proof of the spirits, and the wine and proof gallon contents of each package gauged. The report of gauge shall be attached to the certificate prescribed in § 26.205.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8552, Mar. 1, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.204a" NODE="27:1.0.1.1.21.14.425.10" TYPE="SECTION">
<HEAD>§ 26.204a   Verification of eligible wines and eligible flavors.</HEAD>
<P>(a) Any person who, after December 1, 1990, brings into the United States from the Virgin Islands any distilled spirits on which the tax is to be paid or determined at an effective tax rate based in part on the alcohol content derived from eligible flavors or eligible wines shall, before the first tax determination at that rate, request and receive a statement of eligibility for each wine or flavor to be used in the computation of the effective tax rate.
</P>
<P>(b) To receive a statement of eligibility, the person bringing in the distilled spirits shall submit to the TTB Alcohol and Tobacco Laboratory, 6000 Ammendale Road, Ammendale, MD 20705, the following:
</P>
<P>(1) An 8-ounce sample of each distilled spirits, wine and flavor used in the product;
</P>
<P>(2) A statement of composition of each flavor, listing—
</P>
<P>(i) The name and percentage of alcohol by volume of the flavor; and
</P>
<P>(ii) The name and quantity of each ingredient used in the manufacture of the flavor; and
</P>
<P>(3) A statement of the kind and alcoholic content of each wine.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(Act of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 U.S.C. 7652); Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18067, Apr. 30, 1990,as amended by T.D. TTB-44, 71 FR 16944, Apr. 4, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 26.205" NODE="27:1.0.1.1.21.14.425.11" TYPE="SECTION">
<HEAD>§ 26.205   Certificate.</HEAD>
<P>(a) Every person bringing liquors or articles under this part into the United States from the Virgin Islands, except tourists, shall obtain a certificate in the English language from the manufacturer for each shipment showing the following information:
</P>
<P>(1) The name and address of the consignee.
</P>
<P>(2) The kind and brand name.
</P>
<P>(3) The quantity thereof as follows—
</P>
<P>(i) If distilled spirits, the proof gallons or liters and degree of proof;
</P>
<P>(ii) If wine, the taxable grade and wine gallons;
</P>
<P>(iii) If beer, the gallons (liquid measure) and the percentage of alcohol by volume; and
</P>
<P>(iv) If articles, the kind, quantity, and proof of the liquors used therein.
</P>
<P>(4) For liquors manufactured under a formula—
</P>
<P>(i) The number and date of the approved formula;
</P>
<P>(ii) A declaration that the liquors have been manufactured in accordance with the approved formula; and
</P>
<P>(iii) The name and address of the person filing the formula.
</P>
<P>(5) The name and address of the producer.
</P>
<P>(6) For liquors and articles containing liquors produced outside of the Virgin Islands, the country of origin for each such liquor.
</P>
<P>(7) For distilled spirits, a certification by the insular gauger as to whether they were regauged when withdrawn from the insular bonded warehouse and, if regauged, whether they were at the time of withdrawal at the proof indicated on the attached record of gauge.
</P>
<P>(8) For distilled spirits which contain eligible wine or eligible flavors, the effective tax rate applied to the product and the elements necessary to compute the effective tax rate in accordance with § 26.262a as follows—
</P>
<P>(i) Proof gallons of distilled spirits (exclusive of distilled spirits derived from eligible flavors);
</P>
<P>(ii) Wine gallons of each eligible wine and the percentage of alcohol by volume of each;
</P>
<P>(iii) Proof gallons of distilled spirits derived from eligible flavors; and
</P>
<P>(iv) On or after December 1, 1990, the name of the manufacturer, formula number from TTB F 5530.5 (1678) or 5150.19 and date of approval or the date of the statement of eligibility for each eligible flavor (See § 26.204a); and
</P>
<P>(v) After December 1, 1990, the date of the statement of eligibility for each eligible wine.
</P>
<P>(b) The person bringing the liquors into the United States must file the information required under § 26.200, in accordance with that section.
</P>
<P>(c) The person bringing liquors into the United States from the Virgin Islands must maintain a copy of the certificate described in paragraph (a) of this section along with records to substantiate the information on the certificate, including information required under § 26.204, in accordance with the record retention requirements of § 26.276 and must make them available upon request of the appropriate TTB officer or a customs officer.
</P>
<P>(d) For distilled spirits, natural wine, or beer withdrawn from customs custody under the provisions of subpart Oa of this part, the importer must furnish a copy of the certificate to the proprietor of the receiving distilled spirits plant, bonded wine cellar, or brewery.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1366, as amended (26 U.S.C. 5232); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18067, Apr. 30, 1990. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-145, 81 FR 94201, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.206" NODE="27:1.0.1.1.21.14.425.12" TYPE="SECTION">
<HEAD>§ 26.206   Marking packages and cases.</HEAD>
<P>The distiller, rectifier, or bottler shall serially number each case, barrel, cask, or similar container of distilled spirits filled for shipment to the United States. In addition to the serial number of the container, the distiller, rectifier, or bottler shall plainly print, stamp, or stencil with durable coloring material, in letters and figures not less than one-half inch high, on the head of each barrel, cask or similar container or on one side of each case, as follows:
</P>
<P>(a) The name of the manufacturer;
</P>
<P>(b) The brand name and kind of liquor; and
</P>
<P>(c) The wine and proof gallon contents; or, for bottles filed according to the metric standards of fill prescribed by § 5.47a, of this chapter, the contents in liters and the proof of the spirits.
</P>
<CITA TYPE="N">[T.D. ATF-43, 42 FR 30836, June 17, 1977]


</CITA>
</DIV8>


<DIV8 N="§ 26.207" NODE="27:1.0.1.1.21.14.425.13" TYPE="SECTION">
<HEAD>§ 26.207   Destruction of marks and brands.</HEAD>
<P>The marks, brands, and serial numbers required by this part to be placed on barrels, casks, or similar containers, or cases, shall not be removed, obscured or obliterated before the contents thereof have been removed.
</P>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8552, Mar. 1, 1985]




</CITA>
</DIV8>


<DIV8 N="§ 26.208" NODE="27:1.0.1.1.21.14.425.14" TYPE="SECTION">
<HEAD>§ 26.208   Craft Beverage Modernization Act Tax benefits.</HEAD>
<P>The procedures set forth in 27 CFR part 27, subpart P, apply to the application of Craft Beverage Modernization Act tax benefits for products produced in and imported from the Virgin Islands and entered for consumption subject to tax, except as subpart P would be manifestly incompatible with the intent of the other regulations in this part.


</P>
<CITA TYPE="N">[T.D. TTB-186, 87 FR 58031, Sept. 23, 2022]




</CITA>
</DIV8>


<DIV8 N="§ 26.209" NODE="27:1.0.1.1.21.14.425.15" TYPE="SECTION">
<HEAD>§ 26.209   Samples.</HEAD>
<P>The appropriate TTB officer may require samples of liquors and articles to be submitted whenever desired for laboratory analyses in order to determine the rate of tax applicable thereto.
</P>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2250, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV7 N="425" NODE="27:1.0.1.1.21.14.425" TYPE="SUBJGRP">
<HEAD>Dealer Registration and Recordkeeping</HEAD>


<DIV8 N="§ 26.210" NODE="27:1.0.1.1.21.14.425.16" TYPE="SECTION">
<HEAD>§ 26.210   Liquor dealer registration and recordkeeping.</HEAD>
<P>Every person bringing liquors into the United States from the Virgin Islands who sells, or offers for sale, such liquors must register and keep records as a wholesale dealer in liquor or as a retail dealer in liquor in accordance with part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5123, 5124)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37406, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 26.211" NODE="27:1.0.1.1.21.14.425.17" TYPE="SECTION">
<HEAD>§ 26.211   Warehouse receipts covering distilled spirits.</HEAD>
<P>The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, every person bringing distilled spirits into the United States from the Virgin Islands who sells, or offers for sale, warehouse receipts for distilled spirits stored in warehouses, or elsewhere, must register and keep records as a dealer in liquors at the place where the warehouse receipts are sold, or offered for sale, in accordance with part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5123, 5124)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37406, July 28, 2009]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.21.15" TYPE="SUBPART">
<HEAD>Subpart K—Formulas for Products From the Virgin Islands</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-62, 44 FR 71715, Dec. 11, 1979, unless otherwise noted. 


</PSPACE></SOURCE>

<DIV8 N="§ 26.220" NODE="27:1.0.1.1.21.15.426.1" TYPE="SECTION">
<HEAD>§ 26.220   Formulas for liquors.</HEAD>
<P>(a) <I>Distilled spirits products.</I> Persons in the Virgin Islands who ship distilled spirits beverage products to the United States shall comply with the formula requirements of part 5 of this chapter. If any product contains liquors made outside of Virgin Islands, the country of origin for each such liquor shall be stated on the formula. All formulas required by this paragraph shall be submitted on TTB Form 5110.38, in accordance with § 26.224.
</P>
<P>(b) <I>Wine.</I> Persons in the Virgin Islands who ship wine to the United States shall comply with the formula requirements of part 24 of this chapter. If any wines contains liquors made outside of the Virgin Islands, the country of origin for each such liquor shall be stated on the formula. All formulas required by this paragraph shall be submitted on TTB Form 698 Supplemental, in accordance with § 26.224.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71715, Dec. 11, 1979, as amended by T.D. ATF-198, 50 FR 8552, Mar. 1, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-91, 76 FR 5479, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 26.221" NODE="27:1.0.1.1.21.15.426.2" TYPE="SECTION">
<HEAD>§ 26.221   Formulas for articles, eligible articles and products manufactured with denatured spirits.</HEAD>
<P>(a) <I>Formulas for articles and eligible articles.</I> Formulas for articles made with distilled spirits must show the quantity and proof of the distilled spirits used, and the percentage of alcohol by volume contained in the finished product. Formulas for articles made with beer or wine must show the kind and quantity thereof (liquid measure), and the percent of alcohol by volume of such beer or wine. Formulas and samples for eligible articles are required in accordance with subpart F of part 17 of this chapter.
</P>
<P>(b) <I>Formulas for products manufactured with denatured spirits.</I> Products manufactured with denatured spirits shall be manufactured in accordance with the formula requirements of part 20 of this chapter for similar products made in the United States.
</P>
<P>(1) Products may be made with completely denatured alcohol for sale under brand names under part 20 of this chapter without obtaining an approved formula. If ingredients are added in sufficient quantities to materially change the composition and character of the completely denatured alcohol, the product is not classified as completely denatured alcohol and may not be marked, branded, or sold as completely denatured alcohol.
</P>
<P>(2) Products made with specially denatured spirits shall be made in accordance with (i) a general-use formula approved as provided in part 20 of this chapter, or (ii) an approved formula on Form 5150.19, or previously approved on TTB Form 1479-A or 27-B Supplemental.
</P>
<P>(c) <I>Formulas required.</I> Formulas required by this section shall be submitted on Form 5150.19, except that formulas for eligible articles shall be submitted on Form 5154.1 (formerly 1678). Formulas shall be submitted in accordance with § 26.224. Any formula for an eligible article approved on Form 5150.19 prior to October 23, 1986, shall continue to be valid until revoked or voluntarily surrendered. Any person holding such a formula is not required to submit a new formula.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0494)
</APPRO>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71715, Dec. 11, 1979, as amended by T.D. ATF-199, 50 FR 9199, Mar. 6, 1985; T.D. ATF-263, 52 FR 46595, Dec. 9, 1987; T.D. ATF-379, 61 FR 31427, June 20, 1996. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.222" NODE="27:1.0.1.1.21.15.426.3" TYPE="SECTION">
<HEAD>§ 26.222   Still wines containing carbon dioxide.</HEAD>
<P>(a) <I>General.</I> Still wines may contain not more than 0.392 gram of carbon dioxide per 100 milliliters of wine; except that a tolerance to this maximum limitation, not to exceed 0.009 gram of carbon dioxide per 100 milliliters of wine, will be allowed where the amount of carbon dioxide in excess of 0.392 gram per 100 milliliters of wine was due to mechanical variations which could not be completely controlled under good commercial practices. Such tolerance will not be allowed where it is found that the limitation of 0.392 gram of carbon dioxide per 100 milliliters of wine is continuously or intentionally exceeded, or where the variation results from the use of methods or equipment not in accord with good commercial practices.
</P>
<P>(b) <I>Notice required.</I> Proprietors intending to add carbon dioxide to, or retain carbon dioxide in, still wines to be shipped to the United States shall submit a notice to the appropriate TTB officer. The notice shall show the name and address of the proprietor and shall identify the method or process, the kinds (class and type) of wine, and the type of equipment to be used. A corrected notice shall be filed if there is any change (except for minor changes) in the information contained in the notice.
</P>
<P>(c) <I>Filing and disposition of notice.</I> The notice required by paragraph (b) of this section shall be submitted in triplicate to the appropriate TTB officer, who shall retain one copy, forward one copy to the Commissioner of Finance of the Virgin Islands, and return one copy to the proprietor. The proprietor shall keep the notice available for examination by insular agents.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C 5041))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71715, Dec. 11, 1979, as amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 26.223" NODE="27:1.0.1.1.21.15.426.4" TYPE="SECTION">
<HEAD>§ 26.223   Changes of formulas.</HEAD>
<P>Any change in the ingredients composing a product covered by an approved formula will necessitate the submission of a new formula.


</P>
</DIV8>


<DIV8 N="§ 26.224" NODE="27:1.0.1.1.21.15.426.5" TYPE="SECTION">
<HEAD>§ 26.224   Filing and disposition of formulas.</HEAD>
<P>Formulas required by this subpart must be submitted, and disposed of, in accordance with the instructions on the prescribed TTB form. The applicant shall maintain copies of approved formulas available for examination by insular agents.
</P>
<CITA TYPE="N">[T.D. ATF-451, 66 FR 21670, May 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.225" NODE="27:1.0.1.1.21.15.426.6" TYPE="SECTION">
<HEAD>§ 26.225   Previously approved formulas.</HEAD>
<P>Any formula approved on Form 27-B Supplemental prior to January 1, 1980, shall continue to be valid until revoked or voluntarily surrendered. Any person holding such a formula is not required to submit a new formula. If an approved formula on Form 27-B Supplemental indicates that carbon dioxide will be added to, or retained in, still wine, the notice requirement of § 26.222 shall not apply.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71715, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.21.16" TYPE="SUBPART">
<HEAD>Subpart L—Closures for Distilled Spirits From the Virgin Islands</HEAD>


<DIV7 N="426" NODE="27:1.0.1.1.21.16.426" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 26.230" NODE="27:1.0.1.1.21.16.426.1" TYPE="SECTION">
<HEAD>§ 26.230   Containers of distilled spirits to bear closures.</HEAD>
<P>Containers of 1 gallon (3.785 liters) or less of distilled spirits, upon which all Federal internal revenue taxes have been paid or determined under provisions of this part, shall have closures or other devices affixed in accordance with the provisions of this part.
</P>
<SECAUTH TYPE="N">(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 23955, June 7, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 26.231" NODE="27:1.0.1.1.21.16.426.2" TYPE="SECTION">
<HEAD>§ 26.231   Affixing closures.</HEAD>
<P>Each container of distilled spirits having a capacity of one gallon (3.785 liters) or less must have a closure or other device securely affixed to the container. The closure or other device must be constructed in such a manner as to require breaking in order to gain access to the contents of the container.</P>
<SECAUTH TYPE="N">(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-119, 79 FR 17033, Mar. 27, 2014]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.21.17" TYPE="SUBPART">
<HEAD>Subpart M—Procedure at Port of Entry From the Virgin Islands</HEAD>


<DIV8 N="§ 26.260" NODE="27:1.0.1.1.21.17.427.1" TYPE="SECTION">
<HEAD>§ 26.260   Required information.</HEAD>
<P>Persons (except tourists) bringing liquors from the Virgin Islands into the United States must file with U.S. Customs and Border Protection, at the time of filing the entry or entry summary, as appropriate, the information required under § 26.200, in accordance with that section, and provide any information collected by any gauge under § 26.204 and any information contained in the certificate described in § 26.205, upon request, in accordance with the provisions of §§ 26.204 and 26.205(c).
</P>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94201, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.261" NODE="27:1.0.1.1.21.17.427.2" TYPE="SECTION">
<HEAD>§ 26.261   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 26.262" NODE="27:1.0.1.1.21.17.427.3" TYPE="SECTION">
<HEAD>§ 26.262   Determination of tax on distilled spirits.</HEAD>
<P>(a) If the certificate required by § 26.205 covers distilled spirits, and the distilled spirits are not being transferred under subparts O or Oa of this part, the tax imposed by 26 U.S.C. 7652 which provides for a tax equal to the tax imposed by 26 U.S.C. 5001 will be collected on each proof gallon, and fractional part thereof, contained in the shipment.
</P>
<P>(b) A credit against the tax imposed on distilled spirits by 26 U.S.C. 7652 is allowable under 26 U.S.C. 5010 on each proof gallon of alcohol derived from eligible wine or from eligible flavors which do not exceed 2 
<FR>1/2</FR> percent of the finished product on a proof gallon basis. The credit is allowable at the time the tax is payable as if it constituted a reduction in the rate of tax.
</P>
<P>(c) Where credit against the tax is desired, the person liable for the tax shall establish an effective tax rate in accordance with § 26.262a. The effective tax rate established will be applied to each withdrawal or other disposition of the distilled spirits within the United States.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010), Act of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 U.S.C. 7652))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18068, Apr. 30, 1990. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.262a" NODE="27:1.0.1.1.21.17.427.4" TYPE="SECTION">
<HEAD>§ 26.262a   Computation of effective tax rate.</HEAD>
<P>(a) The proprietor shall compute the effective tax rate for distilled spirits containing eligible wine or eligible flavors as the ratio of the numerator and denominator as follows:
</P>
<P>(1) The numerator will be the sum of:
</P>
<P>(i) The proof gallons of all distilled spirits used in the product (exclusive of distilled spirits derived from eligible flavors), multipled by the tax rate prescribed by 26 U.S.C. 5001;
</P>
<P>(ii) The wine gallons of each eligible wine used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5041(b) (1), (2), or (3), as applicable; and
</P>
<P>(iii) The proof gallons of all distilled spirits derived from eligible flavors used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5001, but only to the extent that such distilled spirits exceed 2
<FR>1/2</FR>% of the denominator prescribed in paragraph (a)(2) of this section.
</P>
<P>(2) The denominator will be the sum of:
</P>
<P>(i) The proof gallons of all distilled spirits used in the product, including distilled spirits derived from eligible flavors; and
</P>
<P>(ii) The wine gallons of each eligible wine used in the product, multiplied by twice the percentage of alcohol by volume of each, divided by 100.
</P>
<P>(b) In determining the effective tax rate, quantities of distilled spirits, eligible wine, and eligible flavors will be expressed to the nearest tenth of a proof gallon. The effective tax rate may be rounded to as many decimal places as the proprietor deems appropriate, provided that, such rate is expressed no less exactly than the rate rounded to the nearest whole cent, and the effective tax rates for all products will be consistently expressed to the same number of decimal places. In such case, if the number is less than five it will be dropped; if it is five or over, a unit will be added.
</P>
<P>(c) The following is an example of the use of the formula.
<FTREF/>
</P>
<FTNT>
<P>
<SU>1</SU> Proof gallons by which distilled spirits derived from eligible flavors exceed 2
<FR>1/2</FR>% of the total proof gallons in the batch (100.9 − (2
<FR>1/2</FR>%) × 3,371.8 = 16.6).</P></FTNT>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Batch Record
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">Distilled spirits</TD><TD align="left" class="gpotbl_cell">2249.1 proof gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible wine (14% alcohol by volume)</TD><TD align="left" class="gpotbl_cell">2265.0 wine gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible wine (19% alcohol by volume)</TD><TD align="left" class="gpotbl_cell">1020.0 wine gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible flavors</TD><TD align="left" class="gpotbl_cell">100.9 proof gallons.</TD></TR></TABLE></DIV></DIV>
<MATH BORDER="NODRAW" DEEP="66" HTYPE="CENTER" POSITION="NOFLOAT" ROTATION="P" SPAN="2" STRIP="YES">
<img src="/graphics/ec05oc91.032.gif"/></MATH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18068, Apr. 30, 1990, as amended by T.D. ATF-307, 55 FR 52741, Dec. 21, 1990]



</CITA>
</DIV8>


<DIV8 N="§ 26.263" NODE="27:1.0.1.1.21.17.427.5" TYPE="SECTION">
<HEAD>§ 26.263   Determination of tax on beer.</HEAD>
<P>If the certificate prescribed in § 26.205 covers beer, the beer tax will be collected at the rates imposed by 26 U.S.C. 5051.
</P>
<SECAUTH TYPE="N">(68A Stat. 611, as amended; 26 U.S.C. 5051, 7652)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94201, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.264" NODE="27:1.0.1.1.21.17.427.6" TYPE="SECTION">
<HEAD>§ 26.264   Determination of tax on wine.</HEAD>
<P>If the certificate prescribed in § 26.205 covers wine, the wine tax will be collected at the rates imposed by section 5041, Internal Revenue Code, as amended.</P>
<SECAUTH TYPE="N">(68A Stat. 609, as amended; 26 U.S.C. 5041, 7652)
</SECAUTH>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-145, 81 FR 94201, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.265" NODE="27:1.0.1.1.21.17.427.7" TYPE="SECTION">
<HEAD>§ 26.265   Determination of tax on articles.</HEAD>
<P>Where articles contain distilled spirits, the tax will be collected at the rate prescribed by 26 U.S.C. 5001(a)(1) on all alcohol contained therein, regardless of the source. Articles containing only wine and/or beer will be taxed at the rates prescribed by 26 U.S.C. 5041 and/or 5051, respectively. The quantities and kinds of liquors will be shown on the certificate prescribed in § 26.205.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001, 5007))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71717, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.266" NODE="27:1.0.1.1.21.17.427.8" TYPE="SECTION">
<HEAD>§ 26.266   Tax payment.</HEAD>
<P>The internal revenue tax on liquors (except spirits transferred under subparts O or Oa of this part) and articles coming into the United States from the Virgin Islands shall be paid to the district director of customs at the port of entry, as provided by customs regulations (19 CFR chapter I).
</P>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-198, 50 FR 8554, Mar. 1, 1985; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 26.267" NODE="27:1.0.1.1.21.17.427.9" TYPE="SECTION">
<HEAD>§ 26.267   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) Each person bringing liquors and articles into the United States from the Virgin Islands who was liable, during a calendar year, for a gross amount equal to or exceeding five million dollars in distilled spirits taxes combining tax liabilities incurred under this part and parts 19 and 27 of this chapter, a gross amount equal to or exceeding five million dollars in wine taxes combining tax liabilities incurred under this part and parts 24 and 27 of this chapter, or a gross amount equal to or exceeding five million dollars in beer taxes combining tax liabilities incurred under this part and parts 25 and 27 of this chapter, shall use a commercial bank in making payment by electronic fund transfer (EFT), as defined in paragraph (c) of this section, of such taxes during the succeeding calendar year. Payment of such taxes by cash, check, or money order is not authorized for a person bringing liquors and articles into the United States from the Virgin Islands who is required, by this section, to make remittances by EFT. For purposes of this section, the dollar amount of tax liability is to be summarized separately for distilled spirits taxes, wine taxes, or beer taxes, and is defined as the gross tax liability on all taxable withdrawals from premises in the United States and importations (including products of the same tax class brought into the United States from Puerto Rico or the Virgin Islands) during the calendar year, without regard to any drawbacks, credits, or refunds, for all premises from which such activities are conducted.
</P>
<P>(b) For the purposes of this section, a “person” includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place it appears in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one person for the purpose of determining who is required to make remittances by EFT.
</P>
<P>(c) Electronic fund transfer or EFT means any transfer of funds, as defined in § 26.11, in accordance with procedures established by U.S. Customs and Border Protection (CBP).


</P>
<P>(d) Each person who is required by this section to make remittances by EFT shall make the EFT remittance in accordance with the requirements of CBP.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under Control Number 1513-0083)




</APPRO>
<CITA TYPE="N">[T.D. ATF-245, 52 FR 532, Jan. 7, 1987, as amended by T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.21.18" TYPE="SUBPART">
<HEAD>Subpart N—Records and Reports of Liquors From the Virgin Islands</HEAD>


<DIV7 N="427" NODE="27:1.0.1.1.21.18.427" TYPE="SUBJGRP">
<HEAD>Record and Report of Liquors Brought Into the United States</HEAD>


<DIV8 N="§ 26.272" NODE="27:1.0.1.1.21.18.427.1" TYPE="SECTION">
<HEAD>§ 26.272   General requirements.</HEAD>
<P>Except as provided in § 26.273, every person, other than a tourist, bringing liquors into the United States from the Virgin Islands shall keep such records and render reports of the physical receipt and disposition of such liquors as are required to be kept by a wholesale or retail dealer, as applicable, under the provisions of part 31 of this chapter. Any importer who is responsible for release of the liquors from customs custody and who does not take physical possession of the liquors shall keep commercial records reflecting such release; such records shall identify the kind and quantity of the liquors released, the name and address of the person receiving the liquors from customs custody, and shall be filed chronologically by release dates. Records and reports will not be required under this part with respect of liquors while in customs custody.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(72 Stat. 1342, 1345; 26 U.S.C. 5114, 5124)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-2, 37 FR 22739, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984. Redesignated and amended by T.D. ATF-459, 66 FR 38552, July 25, 2001; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 26.273" NODE="27:1.0.1.1.21.18.427.2" TYPE="SECTION">
<HEAD>§ 26.273   Proprietors of taxpaid premises.</HEAD>
<P>Transactions involving the bringing of liquors into the United States from the Virgin Islands by proprietors of distilled spirits plants, bonded wine cellars, and breweries in the United States qualified under the provisions of this chapter shall be recorded and reported in accordance with the regulations governing the operations of such premises in the United States.
</P>
<CITA TYPE="N">[T.D. 6478, 25 FR 6203, July 1, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. TTB-145, 81 FR 94201, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.273a" NODE="27:1.0.1.1.21.18.427.3" TYPE="SECTION">
<HEAD>§ 26.273a   Transfer record.</HEAD>
<P>(a) <I>Distilled spirits.</I> The transfer record for Virgin Islands spirits prescribed in § 26.301 shall show the:
</P>
<P>(1) Date prepared;
</P>
<P>(2) Serial number of the transfer record, beginning with “1” each January 1;
</P>
<P>(3) Name of the proprietor and TTB-issued IRC registry number of the plant to which consigned;
</P>
<P>(4) Name and address of the consignor;
</P>
<P>(5) Kind of spirits;
</P>
<P>(6) Name of the producer;
</P>
<P>(7) Age (in years, months and days) of the spirits;
</P>
<P>(8) Proof of the spirits;
</P>
<P>(9) Type and serial number of containers;
</P>
<P>(10) Proof gallons of spirits in the shipment; and
</P>
<P>(11) The customs entry number and amount of duty paid.
</P>
<P>(b) <I>Natural wine.</I> The transfer record prescribed in § 26.301 must identify the importer and show the following:
</P>
<P>(1) The date prepared;
</P>
<P>(2) The name and address of the bonded wine cellar receiving the wine from customs custody;
</P>
<P>(3) The TTB-issued IRC registry number of the bonded wine cellar receiving the wine from customs custody;
</P>
<P>(4) The number of containers transferred and quantity of wine in each container;
</P>
<P>(5) The country of origin of the wine;
</P>
<P>(6) The customs entry number and amount of duty paid;
</P>
<P>(7) The kind of wine; and
</P>
<P>(8) The producer.
</P>
<P>(c) <I>Beer.</I> The transfer record prescribed in § 26.301 must identify the importer and show the following:
</P>
<P>(1) The date prepared;
</P>
<P>(2) The name and address of the brewery receiving the beer from customs custody;
</P>
<P>(3) The TTB-issued IRC registry number of the brewery receiving the beer from customs custody;
</P>
<P>(4) The number of containers transferred and quantity of beer in each container;
</P>
<P>(5) The country of origin of the beer;
</P>
<P>(6) The customs entry number and amount of duty paid;
</P>
<P>(7) The kind of beer; and
</P>
<P>(8) The brewer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<SECAUTH TYPE="N">(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94201, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.273b" NODE="27:1.0.1.1.21.18.427.4" TYPE="SECTION">
<HEAD>§ 26.273b   Package gauge record.</HEAD>
<P>When required in this part with respect to Virgin Islands spirits, a package gauge record shall be prepared to show:
</P>
<P>(a) The date prepared;
</P>
<P>(b) The related transaction record and its serial number;
</P>
<P>(c) The producer, his name and address; and
</P>
<P>(d) For each package, the:
</P>
<P>(1) Package identification or serial number;
</P>
<P>(2) Kind of spirits;
</P>
<P>(3) Gross weight;
</P>
<P>(4) Tare;
</P>
<P>(5) Net weight;
</P>
<P>(6) Proof gallons; and
</P>
<P>(7) Proof.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8554, Mar. 1, 1985]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="428" NODE="27:1.0.1.1.21.18.428" TYPE="SUBJGRP">
<HEAD>Filing and Retention of Records and Reports</HEAD>


<DIV8 N="§ 26.275" NODE="27:1.0.1.1.21.18.428.5" TYPE="SECTION">
<HEAD>§ 26.275   Filing.</HEAD>
<P>(a) All records and reports required by this part will be maintained separately, by transaction or reporting date, at the importer's place of business. The appropriate TTB officer may, pursuant to an application, authorize files, or an individual file, to be maintained at another business location under the control of the importer, if the alternative location does not cause undue inconvenience to appropriate TTB or customs officers desiring to examine the files or delay in the timely submission of documents.
</P>
<P>(b) If an importer conducts wholesale operations, one legible copy of each required record of receipt and disposition shall be filed not later than one business day following the date of transaction.
</P>
<P>(c) If an importer conducts only retail operations, either loose-leaf or book records may be maintained for the daily receipt of liquors which contain all the required information.
</P>
<P>(d) Supporting documents, such as consignors' invoices, delivery receipts, bills or lading, etc., or exact copies of the same, may be filed in accordance with the importer's regular accounting and recordkeeping practices.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended (26 U.S.C. 5114, 5555))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-116, 47 FR 51573, Nov. 16, 1982, as amended by T.D. ATF-451, 66 FR 21670, May 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.276" NODE="27:1.0.1.1.21.18.428.6" TYPE="SECTION">
<HEAD>§ 26.276   Retention.</HEAD>
<P>All records required by this part, documents or copies of documents supporting these records (including data filed with U.S. Customs and Border Protection (CBP) pursuant to CBP requirements), and file copies of reports required by this part, must be retained for not less than three years from the date the shipment is released from customs custody into the United States, and during this period must be made available upon request of the appropriate TTB officer or a customs officer. Furthermore, the appropriate TTB officer may require these records to be kept for an additional period of not more than three years in any case where the appropriate TTB officer determines retention necessary or advisable. (For record retention periods under CBP regulations, see 19 CFR part 163.) Any records, or copies thereof, containing any of the information required by this part to be prepared, wherever kept, shall also be made available for inspection and copying.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0064 and 1513-0088)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94202, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.277" NODE="27:1.0.1.1.21.18.428.7" TYPE="SECTION">
<HEAD>§ 26.277   [Reserved]</HEAD>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="O" NODE="27:1.0.1.1.21.19" TYPE="SUBPART">
<HEAD>Subpart O—Tax-Free Shipments to the United States From the Virgin Islands</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-199, 50 FR 9199, Mar. 6, 1985, unless otherwise noted. Redesignated by T.D. ATF-459, 66 FR 38550, July 25, 2001.


</PSPACE></SOURCE>

<DIV8 N="§ 26.291" NODE="27:1.0.1.1.21.19.429.1" TYPE="SECTION">
<HEAD>§ 26.291   General.</HEAD>
<P>(a) Industrial spirits may be shipped into the United States to the holder of a permit under part 22 of this chapter, in accordance with § 26.292 through 26.294 and regulations issued by the Governor of the Virgin Islands.
</P>
<P>(b)(1) Specially denatured spirits may be shipped into the United States to the holder of a permit under part 20 of this chapter, in accordance with §§ 26.292 through 26.294 and regulations issued by the Governor of the Virgin Islands.
</P>
<P>(2) Completely denatured alcohol may be shipped to anyone in the United States in accordance with §§ 26.295 through 26.296 and regulations issued by the Governor of the Virgin Islands.
</P>
<P>(3) Denatured spirits shall be denatured in accordance with part 21 of this chapter and regulations issued by the Governor of the Virgin Islands.
</P>
<P>(c) Products made with denatured spirits may be shipped to anyone in the United States in accordance with §§ 26.295 through 26.296 and regulations issued by the Governor of the Virgin Islands. These products are also subject to the requirements of § 26.221 of this part.
</P>
<CITA TYPE="N">[20 FR 6077, Aug. 20, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]


</CITA>
</DIV8>


<DIV7 N="429" NODE="27:1.0.1.1.21.19.429" TYPE="SUBJGRP">
<HEAD>Shipment of Industrial Spirits and Specially Denatured Spirits</HEAD>


<DIV8 N="§ 26.292" NODE="27:1.0.1.1.21.19.429.2" TYPE="SECTION">
<HEAD>§ 26.292   Consignee permit number.</HEAD>
<P>If filing electronically, the importer must file with U.S. Customs and Border Protection the number associated with the consignee's permit issued under part 20 of this chapter (for shipments of specially denatured spirits) or part 22 of this chapter (for shipments of industrial spirits), along with the customs entry. If not filing electronically, the importer must make the permit available to the appropriate TTB officer or a customs officer upon request.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94202, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.293" NODE="27:1.0.1.1.21.19.429.3" TYPE="SECTION">
<HEAD>§ 26.293   Marks on containers.</HEAD>
<P>(a) <I>Industrial spirits.</I> The shipper shall mark or label each immediate container of industrial spirits with the following information:
</P>
<P>(1) The name or trade name of the distiller or shipper;
</P>
<P>(2) The words “Virgin Islands Industrial Spirits”;
</P>
<P>(3) A package identification number as required by subpart S of part 19 of this chapter;
</P>
<P>(4) The date filled;
</P>
<P>(5) Proof; and
</P>
<P>(6) Quantity in proof gallons.
</P>
<P>(b) <I>Specially denatured spirits.</I> The shipper shall mark or label each immediate container of specially denatured spirits with the following information:
</P>
<P>(1) Quantity, in gallons, or in liters and gallons;
</P>
<P>(2) A serial number or package identification number;
</P>
<P>(3) Name and address of shipper;
</P>
<P>(4) The words “Virgin Islands Specially Denatured Alcohol” or “Virgin Islands Specially Denatured Rum,” as appropriate;
</P>
<P>(5) Formula number prescribed by part 21 of this chapter;
</P>
<P>(6) Proof, if the spirits were denatured at other than 190 proof;
</P>
<P>(7) Denaturants used, if spirits were denatured under an approved formula authorizing a choice of denaturants; and
</P>
<P>(8) Quantity of denaturant used, if the approved formula authorizes a choice of quantities of denaturants.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9199, Mar. 6, 1985, as amended by T.D. TTB-92, 76 FR 9171, Feb. 16, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 26.294" NODE="27:1.0.1.1.21.19.429.4" TYPE="SECTION">
<HEAD>§ 26.294   Record of shipment.</HEAD>
<P>(a) <I>Filing information with U.S. Customs and Border Protection.</I> Each person bringing industrial spirits or specially denatured spirits into the United States from the Virgin Islands, who files electronically, must file with U.S. Customs and Border Protection (CBP) the information specified in this paragraph, with the entry or entry summary, as appropriate. Any information required by this paragraph that is also required by, and filed with, CBP as part of the entry or entry summary for purposes of meeting CBP requirements will satisfy the requirements of this paragraph. In addition to the consignee's permit number or a copy of the consignee's permit as required by § 26.292, the following information is required:
</P>
<P>(1) The name and address of the consignee;
</P>
<P>(2) The name and address of the consignor; and
</P>
<P>(3) The total quantity shipped.
</P>
<P>(b) <I>Maintaining the record of shipment.</I> For each shipment of industrial spirits or specially denatured spirits from the Virgin Islands to the United States, the importer shall possess and maintain a record of shipment. The record of shipment shall consist of an invoice, bill of lading, or similar document that shows the information required in paragraph (a) of this section, as well as the following:
</P>
<P>(1) For each formula of specially denatured spirits, the formula number prescribed by part 21 of this chapter;
</P>
<P>(2) For each formula of specially denatured spirits, the total quantity in liters or gallons and the serial numbers or package identification numbers of containers; and
</P>
<P>(3) For industrial spirits, the total quantity in proof liters or proof gallons and the package identification numbers of containers.
</P>
<P>(c) <I>Retaining records and making them available upon request.</I> The person bringing industrial spirits or specially denatured spirits into the United States from the Virgin Islands must maintain records to substantiate the information required under paragraph (a) of this section, and any information provided to CBP to meet CBP requirements, in accordance with the record retention requirements of § 26.276. Such records also must be made available upon request of the appropriate TTB officer or a customs officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94202, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="430" NODE="27:1.0.1.1.21.19.430" TYPE="SUBJGRP">
<HEAD>Shipment of Completely Denatured Alcohol and Products Made With Denatured Spirits</HEAD>


<DIV8 N="§ 26.295" NODE="27:1.0.1.1.21.19.430.5" TYPE="SECTION">
<HEAD>§ 26.295   Marks on containers.</HEAD>
<P>(a) <I>Completely denatured alcohol.</I> (1) For each immediate container of completely denatured alcohol with a capacity exceeding 1 gallon, the shipper shall mark or label on the head or side of the package or on the side of the casing, the following:
</P>
<P>(i) The name and address of the person filling the container;
</P>
<P>(ii) The contents in gallons;
</P>
<P>(iii) The words “Virgin Islands Completely Denatured Alcohol”; and
</P>
<P>(iv) The formula number prescribed by part 21 of this chapter.
</P>
<P>(2) In addition, if the container has a capacity of 5 gallons or less, the words “Completely Denatured Alcohol” shall be in red letters on white background, and the label shall also have the words “Caution—contains poisonous ingredients” in red letters on white background.
</P>
<P>(b) <I>Products made with denatured spirits.</I> The shipper shall mark or label each immediate container of a product made with denatured spirits with the name, trade name or brand name of the product and the name and address of the shipper.


</P>
</DIV8>


<DIV8 N="§ 26.296" NODE="27:1.0.1.1.21.19.430.6" TYPE="SECTION">
<HEAD>§ 26.296   Record of shipment.</HEAD>
<P>(a) <I>Filing information with U.S. Customs and Border Protection.</I> Each person bringing completely denatured alcohol or products made with denatured spirits into the United States from the Virgin Islands, who files electronically, must file with U.S. Customs and Border Protection (CBP) the information specified in this paragraph with the entry or entry summary, as appropriate. Any information required by this paragraph that is also required by, and filed with, CBP as part of the entry or entry summary for purposes of meeting CBP requirements will satisfy the requirements of this paragraph. The following information is required:
</P>
<P>(1) The consignor's name and address;
</P>
<P>(2) The consignee's name and address; and
</P>
<P>(3) The total quantity shipped.
</P>
<P>(b) <I>Maintaining additional information as a record.</I> For each shipment of completely denatured alcohol or products made with denatured spirits from the Virgin Islands to the United States, the importer shall possess and maintain a record of shipment. The record of shipment shall consist of an invoice, bill of lading, or similar document that shows the information required under paragraph (a) of this section, as well as the following:
</P>
<P>(1) The capacity and number of containers;
</P>
<P>(2) For each formulation of completely denatured alcohol, the words “Virgin Islands Completely Denatured Alcohol” and the formula number prescribed by part 21 of this chapter; and
</P>
<P>(3) For product made with denatured spirits, the name, trade name, or brand name of the product.
</P>
<P>(c) <I>Retaining records and making them available upon request.</I> The person bringing completely denatured alcohol or products made with denatured spirits into the United States from the Virgin Islands must maintain records to substantiate the information required under paragraph (a) of this section and records as required under paragraph (b) of this section, and any information submitted to CBP to meet CBP requirements, in accordance with the record retention requirements of § 26.276. Such records also must be made available upon request of the appropriate TTB officer or a customs officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94202, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="Oa" NODE="27:1.0.1.1.21.20" TYPE="SUBPART">
<HEAD>Subpart Oa—Shipment of Bulk Distilled Spirits From the Virgin Islands, Without Payment of Tax, for Transfer From Customs Custody to the Bonded Premises of a Distilled Spirits Plant</HEAD>

<AUTH>
<HED>Authority:</HED><PSPACE>Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 U.S.C. 5232).
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-62, 44 FR 71717, Dec. 11, 1979, unless otherwise noted. 


</PSPACE></SOURCE>

<DIV8 N="§ 26.300" NODE="27:1.0.1.1.21.20.431.1" TYPE="SECTION">
<HEAD>§ 26.300   General provisions.</HEAD>
<P>(a) <I>Transfer of bulk distilled spirits from customs custody to bonded premises of a distilled spirits plant.</I> Distilled spirits brought into the United States from the Virgin Islands in bulk containers may, under the provisions of this subpart, be withdrawn by the proprietor of a distilled spirits plant from customs custody and transferred in such bulk containers or by pipeline to the bonded premises of his plant, without payment of the internal revenue tax imposed on such spirits by 26 U.S.C. 7652. Such spirits so withdrawn and transferred to a distilled spirits plant may be redistilled or denatured only if 185 degrees or more of proof, and may be withdrawn from a distilled spirits plant for any purpose authorized by 26 U.S.C. chapter 51, in the same manner as domestic distilled spirits. Spirits transferred from customs custody to the bonded premises of a distilled spirits plant under the provisions of this subpart shall be received and stored thereat, and withdrawn or transferred therefrom, subject to the provisions of part 19 of this chapter. The person operating the bonded premises of the distilled spirits plant to which spirits are transferred under the provisions of this subpart shall become liable for the tax on distilled spirits withdrawn from customs custody under 26 U.S.C. 5232, upon release of the spirits from customs custody, and the person bringing the spirits into the United States shall thereupon be relieved of his liability for such tax.
</P>
<P>(b) <I>Transfer of bulk natural wine from customs custody to a bonded wine cellar.</I> Bulk natural wine, as defined in § 26.11, brought into the United States from the Virgin Islands may, under the provisions of this subpart, be withdrawn by the proprietor of a bonded wine cellar from customs custody and transferred in bond in bulk containers to the bonded wine cellar, without payment of the internal revenue tax imposed on such wine by 26 U.S.C. 7652. Wine so withdrawn and transferred to a bonded wine cellar may be withdrawn from a bonded wine cellar for any purpose authorized by 26 U.S.C. chapter 51, in the same manner as domestic wine. The proprietor of the bonded wine cellar to which the wine is transferred becomes liable for the tax on wine withdrawn from customs custody under 26 U.S.C. 5364. Upon release of the wine from customs custody, the person bringing in the wine is relieved of the liability for the tax.
</P>
<P>(c) <I>Transfer of beer from customs custody to brewery premises.</I> Bulk beer brought into the United States from the Virgin Islands may, under the provisions of this subpart, be withdrawn by the proprietor of a brewery from customs custody and transferred in bulk containers to the brewery premises, without payment of the internal revenue tax imposed on such beer by 26 U.S.C. 7652. Beer so withdrawn and transferred to brewery premises may be withdrawn from a brewery for any purpose authorized by 26 U.S.C. chapter 51, in the same manner as domestic beer. The proprietor of the brewery to which the beer is transferred becomes liable for the tax on beer withdrawn from customs custody under 26 U.S.C. 5418. Upon release of the beer from customs custody, the person bringing in the beer from the Virgin Islands is relieved of the liability for the tax.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71717, Dec. 11, 1979, as amended by T.D. TTB-145, 81 FR 94203, Dec. 22, 2016; T.D. TTB-159, 85 FR 33542, June 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 26.301" NODE="27:1.0.1.1.21.20.431.2" TYPE="SECTION">
<HEAD>§ 26.301   Record of shipment.</HEAD>
<P>(a) <I>Preparation of records.</I> (1) The importer bringing distilled spirits, natural wines, or beer into the United States from the Virgin Islands under this subpart must prepare a transfer record according to § 26.273a. A separate transfer record must be prepared for each conveyance. The importer bringing in the distilled spirits, natural wines, or beer must maintain these records and any additional records necessary to substantiate the information provided under paragraph (b) of this section, in accordance with the record retention requirements of § 26.276, and must make them available upon request of the appropriate TTB officer or a customs officer. The importer must also provide a copy of the record to the recipient, if the recipient is not the importer.
</P>
<P>(2) For distilled spirits, if the spirits are in packages, the person bringing the spirits into the United States must be in possession of a package gauge record for each bulk container, as provided in § 26.273b, at the time the distilled spirits are withdrawn from customs custody. The package gauge record may be prepared by the insular gauger at the time of their withdrawal from an insular bonded warehouse, as provided in § 26.204, or, if not prepared by the insular gauger, the package gauge record must be prepared by the insular consignor.
</P>
<P>(b) <I>Reporting information for release from customs custody.</I> A person bringing distilled spirits, natural wines, or beer into the United States from the Virgin Islands under this subpart, if filing electronically, must file with U.S. Customs and Border Protection (CBP) the information specified in this section at the time of filing the entry or entry summary, as appropriate, along with any other information that is required by CBP to be filed with the entry or entry summary for purposes of administering the provisions of the Internal Revenue Code and Federal Alcohol Administration Act (FAA Act). Any information required by this section that is also required by, and filed with, CBP as part of the entry or entry summary for purposes of meeting CBP requirements will satisfy the requirements of this section. Regardless of the method of filing, the importer must retain all of the information required by this section and any supporting documentation and make it available for inspection by the appropriate TTB officer or a customs officer. The following information is required:
</P>
<P>(1) The number of the importer's basic permit issued under the FAA Act and the regulations issued pursuant to the FAA Act (27 CFR part 1), if applicable, as required by 27 CFR 1.20, and the importer's employer identification number (EIN) associated with that permit;
</P>
<P>(2) The name and address of the ultimate consignee;
</P>
<P>(3) The TTB-issued IRC registry number of the ultimate consignee;
</P>
<P>(4) The quantity of each distilled spirit, natural wine, or beer in the shipment (in proof liters or proof gallons, for distilled spirits); and
</P>
<P>(5) Information identifying each product for Internal Revenue Code and/or FAA Act purposes.
</P>
<P>(c) <I>Maintenance of substantiating records.</I> The importer bringing the distilled spirits, wines, or beer into the United States must maintain records to substantiate the information required under paragraph (b) of this section in accordance with the record retention requirements of § 26.276 and must provide them upon request of the appropriate TTB officer or a customs officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94203, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§§ 26.302-26.303" NODE="27:1.0.1.1.21.20.431.3" TYPE="SECTION">
<HEAD>§§ 26.302-26.303   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 26.304" NODE="27:1.0.1.1.21.20.431.4" TYPE="SECTION">
<HEAD>§ 26.304   Bulk conveyances to be sealed.</HEAD>
<P>When a shipment of distilled spirits from customs custody to the distilled spirits plant is made in a tank, tank barge, cargo container, tank car, tank truck, or similar bulk conveyance, all openings affording access to the spirits shall be sealed by the customs officer with customs seals in such manner as will prevent unauthorized removal of spirits through such openings without detection. 


</P>
</DIV8>


<DIV8 N="§ 26.305" NODE="27:1.0.1.1.21.20.431.5" TYPE="SECTION">
<HEAD>§ 26.305   Receipt by consignee.</HEAD>
<P>Proprietors of distilled spirits plants who receive Virgin Islands spirits under this subpart shall follow the requirements in 27 CFR part 19 for spirits received by transfer in bond. However, proprietors are not required to file application on TTB Form 5100.16 to receive Virgin Islands spirits from customs custody.
</P>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8555, Mar. 1, 1985]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="Ob" NODE="27:1.0.1.1.21.21" TYPE="SUBPART">
<HEAD>Subpart Ob—Claims for Drawback on Eligible Articles From the Virgin Islands</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-263, 52 FR 46595, Dec. 9, 1987, unless otherwise noted. 


</PSPACE></SOURCE>

<DIV8 N="§ 26.306" NODE="27:1.0.1.1.21.21.431.1" TYPE="SECTION">
<HEAD>§ 26.306   Drawback of tax.</HEAD>
<P>Any person who brings eligible articles into the United States from the Virgin Islands may claim drawback of the distilled spirits excise taxes paid on such articles as provided in this subpart.


</P>
</DIV8>


<DIV8 N="§ 26.307" NODE="27:1.0.1.1.21.21.431.2" TYPE="SECTION">
<HEAD>§ 26.307   Claimant registration.</HEAD>
<P>Any person filing claim for drawback of tax on eligible articles brought into the United States from the Virgin Islands must register annually as a nonbeverage domestic drawback claimant. Registration will be accomplished when the claimant submits the first drawback claim for each year, along with the required supporting data for the claim, under subpart G of part 17 of this chapter. For purposes of registration, subpart C of part 17 of this chapter shall apply as if the use and tax determination occurred in the United States at the time the article was brought into the United States, and each business location from which entry of eligible articles is caused or effected shall be treated as a place of manufacture.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37406, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 26.308" NODE="27:1.0.1.1.21.21.431.3" TYPE="SECTION">
<HEAD>§ 26.308   Bonds.</HEAD>
<P>(a) <I>General.</I> Persons bringing eligible articles into the United States from the Virgin Islands and intending to file monthly claims for drawback under the provisions of this subpart shall obtain a bond on Form 5154.3. When the limit of liability under a bond given in less than the maximum amount has been reached, further drawback on monthly claims may be suspended until a strengthening or superseding bond in a sufficient amount has been furnished. For provisions relating to bonding requirements, subpart E of part 17 of this chapter is incorporated in this part.
</P>
<P>(b) <I>Approval required.</I> No person bringing eligible articles into the United States from the Virgin Islands may file monthly claims for drawback under the provisions of this subpart until a bond on TTB Form 5154.3 has been approved.
</P>
<CITA TYPE="N">[T.D. ATF-379, 61 FR 31427, June 20, 1996, as amended by T.D. ATF-451, 66 FR 21670, May 1, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.309" NODE="27:1.0.1.1.21.21.431.4" TYPE="SECTION">
<HEAD>§ 26.309   Claims for drawback.</HEAD>
<P>(a) <I>General.</I> Persons bringing eligible articles into the United States from the Virgin Islands must file claim for drawback on TTB Form 2635 (5620.8). Upon finding that the claimant has satisfied the requirements of this subpart, the appropriate TTB officer will allow the drawback at $1 less than the rate applicable under 26 U.S.C. 7652(f). Claims for products manufactured in the Virgin Islands must be filed separately from claims filed under part 17 of this chapter for products manufactured in the United States.
</P>
<P>(b) <I>Information on claims.</I> The claim must set forth the following:
</P>
<P>(1) [Reserved]
</P>
<P>(2) That the eligible articles brought into the United States on which drawback is claimed are fully taxpaid or tax-determined;
</P>
<P>(3) That the eligible articles on which drawback is claimed are nonbeverage products; and
</P>
<P>(4) That the eligible articles were manufactured in the Virgin Islands in compliance with approved formulas in accordance with § 26.221.
</P>
<P>(c) <I>Supporting data.</I> Each claim shall be accompanied by supporting data as specified in this paragraph. TTB Form 5154.2, Supporting Data for Nonbeverage Drawback Claims, may be used, or the claimant may use any suitable format that provides the following information:
</P>
<P>(1) The claimant's employer identification number, as required by §§ 17.31 and 17.32 of this chapter; and
</P>
<P>(2) A description of each eligible article as follows:
</P>
<P>(i) Name and type of each product;
</P>
<P>(ii) Name and address of the manufacturer of each product;
</P>
<P>(iii) Formula number under which each product was manufactured;
</P>
<P>(iv) Alcohol content of each product;
</P>
<P>(v) Quantity of each product;
</P>
<P>(vi) Proof gallons of distilled spirits contained in each product;
</P>
<P>(vii) Date of entry of the eligible product into the United States; and
</P>
<P>(viii) Evidence of taxpayment of distilled spirits in accordance with § 26.266.
</P>
<P>(d) <I>Date of filing claim.</I> Quarterly claims for drawback shall be filed within the 6 months next succeeding the quarter in which the eligible products covered by the claim were brought into the United States. Monthly claims for drawback may be filed at any time after the end of the month in which the eligible products covered by the claim were brought into the United States, but must be filed not later than the close of the sixth month succeeding the quarter in which the eligible products were brought into the United States.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0494)
</APPRO>
<CITA TYPE="N">[T.D. ATF-263, 52 FR 46595, Dec. 9, 1987, as amended by T.D. ATF-271, 53 FR 17559, May 17, 1988; T.D. ATF-379, 61 FR 31427, June 20, 1996; T.D. ATF-451, 66 FR 21670, May 1, 2001. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001; T.D. TTB-79, 74 FR 37406, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 26.310" NODE="27:1.0.1.1.21.21.431.5" TYPE="SECTION">
<HEAD>§ 26.310   Records.</HEAD>
<P>(a) <I>General.</I> Every person intending to file claim for drawback on eligible articles brought into the United States from the Virgin Islands shall keep permanent records of the data elements required by this section. Such records shall be maintained at the business premises for which the claim is filed and shall be available for inspection by any appropriate TTB officer during business hours.
</P>
<P>(b) <I>Details of records.</I> Each person intending to claim drawback on eligible articles brought into the United States shall maintain permanent records showing the following data:
</P>
<P>(1) The name, description, quantity, and formula number of each such article.
</P>
<P>(2) The alcohol content of each such article.
</P>
<P>(3) Name and address of the manufacturer and shipper, and date of entry into the United States.
</P>
<P>(4) Evidence of taxpayment of distilled spirits in accordance with paragraph (e) of this section.
</P>
<P>(c) <I>Form of record.</I> No particular form of record is prescribed, but the data required to be shown shall be readily ascertainable from the records kept by the drawback claimant.
</P>
<P>(d) <I>Evidence of taxpayment of distilled spirits.</I> Evidence of taxpayment of eligible articles (such as Customs Forms 7501 and 7505 receipted to indicate payment of tax) shall be maintained as evidence of taxpayment to support information required to be furnished in the supporting data filed with a claim.
</P>
<P>(e) <I>Retention of records.</I> Each drawback claimant shall retain for a period of not less than three years all records required by this subpart, all commercial invoices or shipping documents, and all bills of lading received evidencing receipt and tax determination of the spirits. In addition, a copy of each approved formula returned to the manufacturer of eligible articles shall be retained for not less than three years from the date he files his last claim for drawback under the formula. The records, forms, and formulas shall be readily available during regular business hours for examination by appropriate TTB officers.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0494)
</APPRO>
<CITA TYPE="N">[T.D. ATF-263, 52 FR 46595, Dec. 9, 1987, as amended by T.D. ATF-451, 66 FR 21669, May 1, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="P" NODE="27:1.0.1.1.21.22" TYPE="SUBPART">
<HEAD>Subpart P—Requirements for Liquor Bottles</HEAD>

<AUTH>
<HED>Authority:</HED><PSPACE>Sec. 5301, 72 Stat. 1374; 26 U.S.C. 5301.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. 6954, 33 FR 6818, May 4, 1968, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV8 N="§ 26.311" NODE="27:1.0.1.1.21.22.431.1" TYPE="SECTION">
<HEAD>§ 26.311   Scope of subpart.</HEAD>
<P>The provisions of this subpart shall apply only to liquor bottles having a capacity of 200 ml. or more except where expressly applied to liquor bottles of less than 200 ml. capacity.
</P>
<CITA TYPE="N">[T.D. 6954, 33 FR 6818, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-34, 41 FR 46864, Oct. 26, 1976. Redesignated by T.D. ATF-459, 66 FR 38550, July 25, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 26.312" NODE="27:1.0.1.1.21.22.431.2" TYPE="SECTION">
<HEAD>§ 26.312   Standards of fill.</HEAD>
<P>Distilled spirits brought into the United States from Puerto Rico or the Virgin Islands in containers of 1 gallon (3.785 liters) or less for sale shall be in liquor bottles, including liquor bottles of less than 200 ml capacity, which conform to the applicable standards of fill provided in § 5.47 or § 5.47a of this chapter. Empty liquor bottles, including liquor bottles of less than 200 ml capacity, which conform to the provisions of subpart E of part 5 or part 19 of this chapter, may be brought into the United States for packaging distilled spirits as provided in part 19 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-34, 41 FR 46864, Oct. 26, 1976, as amended by T.D. ATF-62, 44 FR 71718, Dec. 11, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 26.314" NODE="27:1.0.1.1.21.22.431.3" TYPE="SECTION">
<HEAD>§ 26.314   Distinctive liquor bottles.</HEAD>
<P>(a) <I>Application.</I> Liquor bottles of distinctive shape or design, including bottles of less than 200 ml. capacity, may be brought into the United States from Puerto Rico or the Virgin Islands by an importer (filled bottles) or a bottler (empty bottles). For filled bottles, the importer shall submit TTB Form 5100.31 for approval prior to bringing such bottles into the United States. For empty bottles, the bottler shall obtain approval on TTB Form 5100.31 prior to using the bottles. The importer or bottler, as applicable, shall certify as to the total capacity of a representative sample bottle before closure (expressed in milliliters) on each copy of the form. In addition, the applicant shall affix a readily legible photograph (both front and back of the bottle) to the front of each copy of TTB Form 5100.31, along with the label(s) to be used on the bottle. The applicant shall not submit an actual bottle or an authentic model unless specifically requested to do so.
</P>
<P>(b) <I>Approval.</I> (1) Properly submitted TTB Forms 5100.31 to bring distinctive liquor bottles (filled) into the United States from Puerto Rico or the Virgin Islands, or, properly submitted TTB Forms 5100.31 to use distinctive liquor bottles (empty) which have been brought into the United States from Puerto Rico or the Virgin Islands, shall be approved provided such bottles are found by the appropriate TTB officer to—
</P>
<P>(i) Meet the requirements of 27 CFR part 5;
</P>
<P>(ii) Be distinctive;
</P>
<P>(iii) Be suitable for their intended purpose;
</P>
<P>(iv) Not jeopardize the revenue; and
</P>
<P>(v) Not be deceptive to the consumer.
</P>
<P>(2) The applicant shall keep a copy of the approved TTB Form 5100.31, including an approved photograph (both front and back) of the distinctive liquor bottle, on file at his premises. If TTB Form 5100.31 is disapproved, the applicant shall be notified of the appropriate TTB officer's decision and the reasons therefor. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0020)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-114, 47 FR 43950, Oct. 5, 1982, as amended by T.D. ATF-242, 51 FR 39526, Oct. 29, 1986; T.D. ATF-451, 66 FR 21670, May 1, 2001; T.D. TTB-145, 81 FR 94204, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.315" NODE="27:1.0.1.1.21.22.431.4" TYPE="SECTION">
<HEAD>§ 26.315   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 26.316" NODE="27:1.0.1.1.21.22.431.5" TYPE="SECTION">
<HEAD>§ 26.316   Bottles not constituting approved containers.</HEAD>
<P>The appropriate TTB officer is authorized to disapprove any bottle, including a bottle of less than 200 mL capacity, for use as a liquor bottle which he determines to be deceptive. Disapproved bottles may not be brought into the United States from the U.S. Virgin Islands or from Puerto Rico.
</P>
<CITA TYPE="N">[T.D.TTB-145, 81 FR 94204, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.317" NODE="27:1.0.1.1.21.22.431.6" TYPE="SECTION">
<HEAD>§ 26.317   Bottles to be used for display purposes.</HEAD>
<P>Empty liquor bottles may be brought into the United States and may be furnished to liquor dealers for display purposes, provided each bottle is marked to show that it is to be used for such purpose. Any paper strip used to seal the bottle shall be of solid color and without design or printing, except that a border or a design, formed entirely of the legend “not genuine—for display purposes only” is permissible. Records shall be kept of the receipt and disposition of such bottles, showing the names and addresses of consignees, dates of shipment, and size, quantity, and description of bottles.


</P>
</DIV8>


<DIV8 N="§ 26.318" NODE="27:1.0.1.1.21.22.431.7" TYPE="SECTION">
<HEAD>§ 26.318   Liquor bottles not eligible to be brought into the United States.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (b) of this section, filled liquor bottles that do not conform to the provisions of this subpart may not be brought into the United States from Puerto Rico or the Virgin Islands.
</P>
<P>(b) <I>Exception.</I> Upon receipt of a letterhead application, the appropriate TTB officer may, in nonrecurring cases, authorize a person to bring into the United States liquor bottles that do not conform to the provisions of this part if that TTB officer determines that the nonconformance is due to an unintentional error; the nonconforming liquor bottle is determined not to be deceptive, as provided in § 26.316; and the entry of the nonconforming liquor bottle will not jeopardize the revenue. The person bringing such liquor bottles into the United States under such TTB authorization must maintain for not less than three years from the date that the liquor bottles were released from customs custody proof of that authorization and make it available upon request by the appropriate TTB officer or a customs officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94204, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 26.319" NODE="27:1.0.1.1.21.22.431.8" TYPE="SECTION">
<HEAD>§ 26.319   Used liquor bottles.</HEAD>
<P>The appropriate TTB officer may pursuant to letterhead application, authorize an importer to receive liquor bottles assembled for him as provided in § 31.203 of this chapter. Used liquor bottles so received may be stored at any suitable location pending return to Puerto Rico or the Virgin Islands. Records shall be kept of the receipt and disposition of such bottles.
</P>
<CITA TYPE="N">[T.D. 6954, 33 FR 6818, May 4, 1968, as amended by T.D. 7006, 34 FR 2250, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-25, 70 FR 19883, Apr. 15, 2005; T.D. TTB-145, 81 FR 94204, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="Q" NODE="27:1.0.1.1.21.23" TYPE="SUBPART">
<HEAD>Subpart Q—Miscellaneous Provisions</HEAD>


<DIV8 N="§ 26.331" NODE="27:1.0.1.1.21.23.431.1" TYPE="SECTION">
<HEAD>§ 26.331   Alternate methods or procedures.</HEAD>
<P>(a) <I>Application.</I> A person bringing liquors into the United States from Puerto Rico or the Virgin Islands who desires to use an alternate method or procedure in lieu of a method or procedure prescribed by this part shall file application with the appropriate TTB officer. If such person has several places of business at which he desires to use such alternate method or procedure, a separate application shall be submitted for each. Each application shall:
</P>
<P>(1) Specify the name, address, and permit number of the person to which it relates;
</P>
<P>(2) State the purpose for which filed; and
</P>
<P>(3) Specifically describe the alternate method or procedure and set forth the reasons therefor.
</P>
<FP>No alternate method or procedure relating to the assessment, payment, or collection of tax shall be authorized under this paragraph.
</FP>
<P>(b) <I>Approval.</I> When an application for use of an alternate method or procedure is received, the appropriate TTB officer shall determine whether the approval thereof would unduly hinder the effective administration of this part or would result in jeopardy to the revenue. The appropriate TTB officer, may approve the alternate method or procedure if he finds that:
</P>
<P>(1) Good cause has been shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue; and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law, and will not result in any increase in cost to the Government or hinder the effective administration of this part.
</P>
<FP>No alternate method or procedure shall be used until approval has been received from the appropriate TTB officer. Authorization for the alternate method or procedure may be withdrawn whenever in the judgment of the appropriate TTB officer, the revenue is jeopardized or the effective administration of this part is hindered by the continuation of such authorization.
</FP>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. ATF-2, 37 FR 22739, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. TTB-145, 81 FR 94204, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="27" NODE="27:1.0.1.1.22" TYPE="PART">
<HEAD>PART 27—IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 5051, 5054, 5061, 5121, 5122-5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5382, 5555, 6038E, 6065, 6109, 6302, 7805.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>20 FR 3561, May 21, 1955, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. ATF-479, 67 FR 30799, May 8, 2002.
</PSPACE></SOURCE>
<CROSSREF>
<HED>Cross Reference:</HED>
<P>For regulations with respect to distilled spirits, wines, and beer arriving in the United States from Puerto Rico and the Virgin Islands, see part 26 of this subchapter.</P></CROSSREF>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 27 appear by T.D. ATF-474, 67 FR 11231, Mar. 13, 2002, and T.D. ATF-479, 67 FR 30799, May 8, 2002.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.22.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 27.1" NODE="27:1.0.1.1.22.1.447.1" TYPE="SECTION">
<HEAD>§ 27.1   Imported distilled spirits, wines, and beer.</HEAD>
<P>This part, “Importation of Distilled Spirits, Wines, and Beer”, contains procedural and substantive requirements relative to the importation of distilled spirits, wines, and beer into the United States from foreign countries including commodity taxes, permits, marking, branding, closing and labeling of containers and packages, and records and reports.
</P>
<NOTE>
<HED>Note:</HED>
<P>Distilled spirits, wines, and beer arriving in the United States from Puerto Rico and the Virgin Islands are governed by the provisions of part 26 of this chapter.</P></NOTE>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 23955, June 7, 1985, as amended by T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. TTB-79, 74 FR 37406, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 27.2" NODE="27:1.0.1.1.22.1.447.2" TYPE="SECTION">
<HEAD>§ 27.2   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part, including reports, returns, and records. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981, as amended by T.D. ATF-249, 52 FR 5963, Feb. 27, 1987; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. ATF-474, 67 FR 11231, Mar. 13, 2002; T.D. TTB-44, 71 FR 16946, Apr. 4, 2006; T.D. TTB-196, 89 FR 87944, Nov. 6, 2024] 


</CITA>
</DIV8>


<DIV8 N="§ 27.3" NODE="27:1.0.1.1.22.1.447.3" TYPE="SECTION">
<HEAD>§ 27.3   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.27, Delegation of the Administrator's Authorities in 27 CFR Part 27, Importation of Distilled Spirits, Wines, and Beer. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16946, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87944, Nov. 6, 2024] 


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.22.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 27.11" NODE="27:1.0.1.1.22.2.447.1" TYPE="SECTION">
<HEAD>§ 27.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.27, Delegation of the Administrator's Authorities in 27 CFR Part 27, Importation of Distilled Spirits, and Beer.
</P>
<P><I>Beer.</I> Beer, ale porter, stout, and other similar fermented beverages (including sake or similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute therefor.
</P>
<P><I>Bonded premises—distilled spirits plant.</I> The premises of a distilled spirits plant, or part thereof, on which distilled spirits operations defined in 26 U.S.C. 5002 are authorized to be conducted. This term includes premises described in the preceding sentence even if the distilled spirits plant proprietor, as authorized under the exemption set forth in § 19.151(d) of this chapter, has not provided a bond for the premises.
</P>
<P><I>Bonded wine cellar.</I> Premises established under part 24 of this chapter.
</P>
<P><I>Brewery.</I> The land and buildings described in the brewer's notice, TTB Form 5130.10, where beer is to be produced and packaged.
</P>
<P><I>Bulk container.</I> When used in the context of distilled spirits, the term “bulk container” means any container having a capacity larger than one wine gallon. When used in the context of wine, the term “bulk container” means any container having a capacity larger than 60 liters. When used in the context of beer, the term “bulk container” means any container having a capacity larger than one barrel of 31 gallons.
</P>
<P><I>Bulk distilled spirits.</I> The term “bulk distilled spirits” means distilled spirits in a container having a capacity in excess of 1 gallon.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Class 8 Customs bonded warehouse.</I> A class 8 customs bonded warehouse established under the provisions of the customs regulations (19 CFR chapter I).</P>
<P><I>Customs officer.</I> An officer of U.S. Customs and Border Protection (CBP) or any agent or other person authorized by law to perform the duties of such an officer.
</P>
<P><I>Distilled spirits or spirits.</I> That substance known as ethyl alcohol, ethanol, or spirits of wine, and all mixtures or dilutions thereof, from whatever source or by whatever process produced, including alcohol, whisky, brandy, gin, rum, and vodka, but not including wine as defined in this subpart.
</P>
<P><I>Distilled spirits plant.</I> An establishment qualified under the provisions of part 19 of this chapter for the production, storage, or processing of spirits, or for authorized combinations of such operations.
</P>
<P><I>Effective tax rate.</I> The net tax rate after reduction for any credit allowable under 26 U.S.C. 5010 for wine and flavor content at which the tax imposed on distilled spirits by 26 U.S.C. 5001 is paid or determined.
</P>
<P><I>Eligible flavor.</I> A flavor which:
</P>
<P>(1) Is of a type that is eligible for drawback of tax under 26 U.S.C. 5114,
</P>
<P>(2) Was not manufactured on the premises of a distilled spirits plant, and
</P>
<P>(3) Was not subjected to distillation on distilled spirits plant premises such that the flavor does not remain in the finished product.
</P>
<P><I>Eligible wine.</I> Wine on which tax would be imposed by paragraph (1), (2), or (3) of 26 U.S.C. 5041(b) but for its removal to distilled spirits plant premises and which has not been subject to distillation at a distilled spirits plant after receipt in bond. 

For purposes of this definition, the phrase “receipt in bond” applies to wine on which tax has not been determined or paid that is received by the proprietor of a distilled spirits plant, even if the proprietor, as authorized under the exemption set forth in § 19.151(d) of this chapter, is not required to provide a bond for the premises where the wine is received.
</P>
<P><I>Gallon or wine gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches. For purposes of this definition, the phrase “receipt in bond” applies to wine on which tax has not been determined or paid that is received by the proprietor of a distilled spirits plant, even if the proprietor, as authorized under the exemption set forth in § 19.151(d) of this chapter, is not required to provide a bond for the premises where the wine is received.
</P>
<P><I>Hard cider.</I> A wine that meets the eligibility requirements set forth in § 24.331 for the hard cider tax rate set forth in § 24.270.
</P>
<P><I>Importer.</I> Any person who imports distilled spirits, wines, or beer into the United States.
</P>
<P><I>IRC registry number.</I> The number assigned by TTB to each distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, bonded wine warehouse, or brewery upon approval of an application made pursuant to Internal Revenue Code of 1986 requirements (26 U.S.C. 5171, 5351-5353, or 5401).
</P>
<P><I>Kind.</I> As applied to spirits, kind shall mean class and type as prescribed in 27 CFR part 5. As applied to wines, kind shall mean the classes and types of wines as prescribed in 27 CFR part 4.
</P>
<P><I>Liquor bottle.</I> A bottle made of glass or earthenware, or of other suitable material approved by the Food and Drug Administration, which has been designed or is intended for use as a container for distilled spirits for sale for beverage purposes and which has been determined by the appropriate TTB officer to adequately protect the revenue.
</P>
<P><I>Natural wine.</I> The product of the juice or must of sound, ripe grapes or other sound, ripe fruit (including berries) made with any proper cellar treatment and containing not more than 21 percent by weight (21 degrees Brix dealcoholized wine) of total solids. For purposes of this definition, “proper cellar treatment” means a production practice or procedure authorized for natural wine by part 24 of this chapter, or, in the case of natural wine produced and imported subject to an international agreement or treaty, those practices and procedures acceptable to the United States under that agreement or treaty.
</P>
<P><I>Person.</I> An individual, a trust, an estate, a partnership, an association, a company, or a corporation.
</P>
<P><I>Proof.</I> The ethyl alcohol content of a liquid at 60 degrees Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
</P>
<P><I>Proof gallon.</I> A gallon of liquid at 60 degrees Fahrenheit which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as unity, or the alcoholic equivalent thereof.
</P>
<P><I>Proof liter.</I> A liter of liquid at 60 degrees Fahrenheit which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as unity or the alcoholic equivalent thereof.
</P>
<P><I>United States.</I> “United States” includes only the States and the District of Columbia.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>Wine.</I> (a) Still wine, including vermouth or other aperitif wine, artificial or imitation wines or compounds sold as still wines, champagne or sparkling wine, and artificially carbonated wine, and (b) flavored or sweetened fortified or unfortified wines, by whatever name sold or offered for sale, containing not over 24 percent alcohol by volume.
</P>
<SECAUTH TYPE="N">(68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as amended (27 U.S.C. 205); 26 U.S.C. 7805 (68A Stat. 917, as amended), and in 27 U.S.C. 205 (49 Stat. 981, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13552, Mar. 31, 1978]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 27.11, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.22.3" TYPE="SUBPART">
<HEAD>Subpart C—Dealer Registration and Recordkeeping</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-79, 74 FR 37406, July 28, 2009, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 27.30" NODE="27:1.0.1.1.22.3.447.1" TYPE="SECTION">
<HEAD>§ 27.30   Dealer registration and recordkeeping.</HEAD>
<P>Importers engaged in the business of selling, or offering for sale, distilled spirits, wines, or beer are subject to the provisions of part 31 of this chapter relating to dealer registration and records. Part 31 requires the filing of TTB Form 5630.5d with TTB, in accordance with the instructions on the form, before commencing business and on or before July 1 of each year thereafter if there have been any changes. The dealer must file an amended registration and give notice of termination in accordance with the rules of part 31.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5123, 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 27.31" NODE="27:1.0.1.1.22.3.447.2" TYPE="SECTION">
<HEAD>§ 27.31   Warehouse receipts covering distilled spirits.</HEAD>
<P>The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, every person engaged in business as an importer of distilled spirits who sells, or offers for sale, warehouse receipts for distilled spirits stored in customs bonded warehouses, or elsewhere, must register and keep records as a dealer in liquors at the place where the warehouse receipts are sold or offered for sale, in accordance with part 31 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5123, 5124)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.22.4" TYPE="SUBPART">
<HEAD>Subpart D—Tax On Imported Distilled Spirits, Wines, and Beer</HEAD>


<DIV7 N="447" NODE="27:1.0.1.1.22.4.447" TYPE="SUBJGRP">
<HEAD>Distilled Spirits</HEAD>


<DIV8 N="§ 27.40" NODE="27:1.0.1.1.22.4.447.1" TYPE="SECTION">
<HEAD>§ 27.40   Distilled spirits.</HEAD>
<P>(a) A tax is imposed on all distilled spirits in customs bonded warehouses or imported into the United States at the rate prescribed by 26 U.S.C. 5001 on each proof gallon and a proportionate tax at a like rate on all fractional parts of each proof gallon. All products of distillation, by whatever name known, which contain distilled spirits, are considered to be distilled spirits and are taxed as such. The tax will be determined at the time of importation, or, if transferred to the bonded premises of a distilled spirits plant, at the time of withdrawal therefrom.
</P>
<P>(b) A credit against the tax imposed on distilled spirits by 26 U.S.C. 5001 is allowable under 26 U.S.C. 5010 on each proof gallon of alcohol derived from eligible wine or from eligible flavors which do not exceed 2
<FR>1/2</FR> percent of the finished product on a proof gallon basis. The credit is allowable at the time the tax is payable as if it constituted a reduction in the rate of tax.
</P>
<P>(c) Where credit against the tax is desired, the person liable for the tax shall establish an effective tax rate in accordance with § 27.41. The effective tax rate established will be applied to each entry.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001); Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18069, Apr. 30, 1990, as amended by T.D TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 27.41" NODE="27:1.0.1.1.22.4.447.2" TYPE="SECTION">
<HEAD>§ 27.41   Computation of effective tax rate.</HEAD>
<P>(a) The proprietor shall compute the effective tax rate for distilled spirits containing eligible wine or eligible flavors as the ratio of the numerator and denominator as follows:
</P>
<P>(1) The numerator will be the sum of:
</P>
<P>(i) The proof gallons of all distilled spirits used in the product (exclusive of distilled spirits derived from eligible flavors), multiplied by the tax rate prescribed by 26 U.S.C. 5001;
</P>
<P>(ii) The wine gallons of each eligible wine used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5041(b)(1), (2), or (3), as applicable; and
</P>
<P>(iii) The proof gallons of all distilled spirits derived from eligible flavors used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5001, but only to the extent that such distilled spirits exceed 2
<FR>1/2</FR>% of the denominator prescribed in paragraph (a)(2) of this section.
</P>
<P>(2) The denominator will be the sum of:
</P>
<P>(i) The proof gallons of all distilled spirits used in the product, including distilled spirits derived from eligible flavors; and
</P>
<P>(ii) The wine gallons of each eligible wine used in the product, multiplied by twice the percentage of alcohol by volume of each, divided by 100.
</P>
<P>(b) In determining the effective tax rate, quantities of distilled spirits, eligible wine, and eligible flavors will be expressed to the nearest tenth of a proof gallon. The effective tax rate may be rounded to as many decimal places as the proprietor deems appropriate, provided that, such rate is expressed no less exactly than the rate rounded to the nearest whole cent, and the effective tax rates for all products will be consistently expressed to the same number of decimal places. In such case, if the number is less than five it will be dropped; if it is five or over, a unit will be added.
</P>
<P>(c) The following is an example of the use of the formula.
<FTREF/>
</P>
<FTNT>
<P>
<SU>1</SU> Proof gallons by which distilled spirits derived from eligible flavors exceed 2
<FR>1/2</FR>% of the total proof gallons in the batch (100.9 − (2
<FR>1/2</FR>%) × 3.371.8 = 16.6).</P></FTNT>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Batch Record
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">Distilled spirits</TD><TD align="right" class="gpotbl_cell">2249.1 proof gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible wine (14% alcohol by volume)</TD><TD align="right" class="gpotbl_cell">2265.0 wine gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible wine (19% alcohol by volume)</TD><TD align="right" class="gpotbl_cell">1020.0 wine gallons.
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Eligible flavors</TD><TD align="right" class="gpotbl_cell">100.9 proof gallons.</TD></TR></TABLE></DIV></DIV>
<img src="/graphics/ec05oc91.033.gif"/>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18069, Apr. 30, 1990, as amended by T.D. ATF-307, 55 FR 52742, Dec. 21, 1990. Redesignated by T.D. ATF-474, 67 FR 11232, Mar. 13, 2002]



</CITA>
</DIV8>

</DIV7>


<DIV7 N="448" NODE="27:1.0.1.1.22.4.448" TYPE="SUBJGRP">
<HEAD>Wines</HEAD>


<DIV8 N="§ 27.42" NODE="27:1.0.1.1.22.4.448.3" TYPE="SECTION">
<HEAD>§ 27.42   Wines.</HEAD>
<P>All wines (including imitation, substandard, or artificial wine, and compounds sold as wine) having not in excess of 24 percent of alcohol by volume, in customs bonded warehouse or imported into the United States are subject to an internal revenue tax at the rates prescribed by law; such tax to be determined at the time of removal from customs custody for consumption or sale. The tax is imposed on each wine gallon and at a like rate on fractional parts of a wine gallon. Fractions of less than one-tenth gallon shall be converted to the nearest one-tenth gallon, and five-hundredths gallon shall be converted to the next full one-tenth gallon. All wines containing more than 24 percent of alcohol by volume shall be classed as distilled spirits and shall be taxed accordingly.
</P>
<SECAUTH TYPE="N">(72 Stat. 1331, as amended; 26 U.S.C. 5041)
</SECAUTH>
<CITA TYPE="N">[T.D. 6644, 28 FR 3165, Apr. 2, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 27.42a" NODE="27:1.0.1.1.22.4.448.4" TYPE="SECTION">
<HEAD>§ 27.42a   Still wines containing carbon dioxide.</HEAD>
<P>Still wines may contain not more than 0.392 gram of carbon dioxide per 100 milliliters of wine; except that a tolerance to this maximum limitation, not to exceed 0.009 gram of carbon dioxide per 100 milliliters of wine, will be allowed where the amount of carbon dioxide in excess of 0.392 gram per 100 milliliters of wine was due to mechanical variations which could not be completely controlled under good commercial practices. Such tolerance will not be allowed where it is found that the limitation of 0.392 gram of carbon dioxide per 100 milliliters of wine is continuously or intentionally exceeded.
</P>
<CITA TYPE="N">[T.D. ATF-13, 40 FR 4419, Jan. 30, 1975. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="449" NODE="27:1.0.1.1.22.4.449" TYPE="SUBJGRP">
<HEAD>Liqueurs, Cordials, and Other Compounds and Preparations</HEAD>


<DIV8 N="§ 27.43" NODE="27:1.0.1.1.22.4.449.5" TYPE="SECTION">
<HEAD>§ 27.43   Liqueurs, cordials, and similar compounds.</HEAD>
<P>A tax is imposed by 26 U.S.C. 5001 on all liqueurs, cordials, and similar compounds, containing distilled spirits, in a customs bonded warehouse or imported into the United States at the rate prescribed in such section on each proof gallon, and a proportionate tax at a like rate on all fractional parts of such proof gallon. The tax shall be determined at the time of importation, or, if transferred to the bonded premises of a distilled spirits plant, at the time of withdrawal therefrom. Fortified or unfortified wines, containing not over 24 percent alcohol by volume, to which sweetening or flavoring materials, but no distilled spirits, have been added are not classified as liqueurs, cordials, or similar compounds, but are considered to be flavored wines only and are subject to internal revenue tax at the rates applicable to wines.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1331, as amended (26 U.S.C. 5001, 5041))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71718, Dec. 11, 1979, as amended by T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 27.44" NODE="27:1.0.1.1.22.4.449.6" TYPE="SECTION">
<HEAD>§ 27.44   Other compounds and preparations.</HEAD>
<P>Compounds and preparations, other than those specified in § 27.43 containing distilled spirits, which are fit for beverage purposes, in customs bonded warehouse or imported into the United States are subject to internal revenue tax at the rates applicable to distilled spirits. Compounds and preparations, containing fortified or unfortified wine, but no distilled spirits, which are fit for beverage purposes and which are sold as wine, are subject to internal revenue tax at the rates applicable to wines.
</P>
<SECAUTH TYPE="N">(68A Stat. 595, as amended, 609, as amended; 26 U.S.C. 5001, 5041)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="450" NODE="27:1.0.1.1.22.4.450" TYPE="SUBJGRP">
<HEAD>Beer</HEAD>


<DIV8 N="§ 27.45" NODE="27:1.0.1.1.22.4.450.7" TYPE="SECTION">
<HEAD>§ 27.45   Rate of tax.</HEAD>
<P>A tax is imposed by 26 U.S.C. 5051, on all beer imported into the United States, at the rate prescribed in such section, for every barrel containing not more than 31 gallons, and at a like rate for any other quantity or for fractional parts of a barrel. The tax on beer shall be determined at the time of importation, or, if entered into customs custody, at the time of removal from such custody.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended (26 U.S.C. 5051, 5054))
</SECAUTH>
<CITA TYPE="N">[T.D. 6644, 28 FR 3165, Apr. 2, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55853, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 27.46" NODE="27:1.0.1.1.22.4.450.8" TYPE="SECTION">
<HEAD>§ 27.46   Computation of tax.</HEAD>
<P>The tax on imported beer shall be computed on the basis of the actual quantity in a container, at the rate prescribed by law.
</P>
<SECAUTH TYPE="N">(72 Stat. 1333, as amended; 26 U.S.C. 5051)
</SECAUTH>
<CITA TYPE="N">[T.D. 6644, 28 FR 3165. Apr. 2, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="451" NODE="27:1.0.1.1.22.4.451" TYPE="SUBJGRP">
<HEAD>Collection of Internal Revenue Taxes</HEAD>


<DIV8 N="§ 27.48" NODE="27:1.0.1.1.22.4.451.9" TYPE="SECTION">
<HEAD>§ 27.48   Imported distilled spirits, wines, and beer.</HEAD>
<P>(a) <I>Distilled spirits, wines, and beer imported subject to tax</I>—(1) <I>General.</I> Internal revenue taxes payable on imported distilled spirits, wines, and beer are collected, accounted for, and deposited as internal revenue collections by U.S. Customs and Border Protection (CBP) in accordance with CBP requirements. The tax must be paid on the basis of a return, and the customs form (including any electronic transmissions) by which the distilled spirits, wines, or beer are duty- and tax-paid to CBP will be treated as a return for purposes of this part.
</P>
<P>(2) <I>Required information.</I> In the case of distilled spirits, wines, and beer imported into the United States subject to tax, the importer, if filing electronically, must file the information specified in this section with the entry or entry summary, as appropriate, along with any other information that is required by CBP to be filed with the entry or entry summary for purposes of determining and collecting the Federal excise tax and administering the provisions of the Internal Revenue Code and Federal Alcohol Administration Act (FAA Act). Any information required by this section that is also required by, and filed with, CBP as part of the entry or entry summary for purposes of meeting CBP requirements will satisfy the requirements of this section. For all distilled spirits, wines, and beer imported under this paragraph, the following information is required:
</P>
<P>(i) The number of the importer's basic permit issued under the FAA Act and the regulations issued pursuant to the FAA Act (27 CFR part 1), if applicable, as required by 27 CFR 1.20 and 1.58, and the importer's name, address, and employer identification number (EIN) associated with that permit;
</P>
<P>(ii) The TTB-assigned number of the valid certificate of label approval (COLA), if applicable, as required by 27 CFR 4.40 in the case of wine, 27 CFR 5.51 in the case of distilled spirits, and 27 CFR 7.31 in the case of malt beverages;
</P>
<P>(iii) The name and address of the ultimate consignee;
</P>
<P>(iv) The quantity of each product (for distilled spirits, in proof liters or proof gallons; for beer and wine, in gallons or liters); and
</P>
<P>(v) Information identifying each product for Internal Revenue Code and/or FAA Act purposes, as applicable.
</P>
<P>(b) <I>Distilled spirits, natural wines, and beer transferred without payment of tax to distilled spirits plants, bonded wine cellars, and breweries.</I>Distilled spirits, natural wine (as defined in § 27.11) and beer in bulk containers may be released from customs custody without payment of tax under the provisions of subpart L of this part and thereafter removed subject to tax from distilled spirits plants, bonded wine cellars, and breweries, respectively. The tax will be collected and paid under the provisions of part 19, 24 or 25 of this chapter, respectively.
</P>
<P>(c) <I>Entry for warehousing</I>—(1) <I>General.</I> Except as provided in paragraph (c)(2) of this section, in the case of an entry for warehousing (that is, products transferred directly to a customs bonded warehouse or foreign trade zone), the last day for payment of the tax shall not be later than the 14th day after the last day of the semimonthly period during which the products are removed from the first such warehouse, even if the products are removed from that customs bonded warehouse or foreign trade zone for transfer to another customs bonded warehouse or foreign trade zone.
</P>
<P>(2) <I>Entry for warehousing of products destined for export.</I> Paragraph (c)(1) of this section does not apply to any distilled spirits, wines, or beer entered for warehousing and then removed for transfer to another custom bonded warehouse or foreign trade zone that is shown to the satisfaction of the Secretary to be destined for export.
</P>
<P>(d) <I>Records.</I> Regardless of the method of filing, the importer must maintain as a record the information required by this section, any information provided to CBP to meet CBP requirements, and any supporting documentation. These records must be maintained in accordance with the record retention requirements of § 27.137, and the records must be made available upon request of the appropriate TTB officer or a customs officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<SECAUTH TYPE="N">(26 U.S.C. 5001, 5054, 5061, 5232, 5364, 5418)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94204, Dec. 22, 2016, as amended by T. D. TTB-159, 85 FR 33542, June 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 27.48a" NODE="27:1.0.1.1.22.4.451.10" TYPE="SECTION">
<HEAD>§ 27.48a   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) Each importer who was liable, during a calendar year, for a gross amount equal to or exceeding five million dollars in distilled spirits taxes combining tax liabilities incurred under this part and parts 19 and 26 of this chapter, a gross amount equal to or exceeding five million dollars in wine taxes combining tax liabilities incurred under this part and parts 24 and 26 of this chapter, or a gross amount equal to or exceeding five million dollars in beer taxes combining tax liabilities incurred under this part and parts 25 and 26 of this chapter, shall use a commercial bank in making payment by electronic fund transfer (EFT), as defined in paragraph (c) of this section, of such taxes during the succeeding calendar year. Payment of such taxes by cash, check, or money order is not authorized for an importer who is required, by this section, to make remittances by EFT. For purposes of this section, the dollar amount of tax liability is to be summarized separately for distilled spirits taxes, wine taxes, or beer taxes, and is defined as the gross tax liability on all taxable withdrawals from premises in the United States and importations (including products of the same tax class brought into the United States from Puerto Rico or the Virgin Islands) during the calendar year, without regard to any drawbacks, credits, or refunds, for all premises from which such activities are conducted by the taxpayer.
</P>
<P>(b) For the purposes of this section, a taxpayer includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place it appears in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT.
</P>
<P>(c) Electronic fund transfer or EFT means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer of magnetic tape, so as to order, instruct, or authorize a financial institution to either debit or credit an account, in accordance with procedures established by the U.S. Customs and Border Protection..
</P>
<P>(d) An importer who is required by this section to make remittances by EFT shall make the EFT remittance in accordance with the requirements of the U.S. Customs and Border Protection..
</P>
<SECAUTH TYPE="N">(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-245, 52 FR 533, Jan. 7, 1987, as amended by T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="452" NODE="27:1.0.1.1.22.4.452" TYPE="SUBJGRP">
<HEAD>Exemption of Certain Samples From Internal Revenue Taxes</HEAD>


<DIV8 N="§ 27.49" NODE="27:1.0.1.1.22.4.452.11" TYPE="SECTION">
<HEAD>§ 27.49   Commercial samples of alcoholic beverages.</HEAD>
<P>Samples of distilled spirits, beer, and wine, to be used in the United States by persons importing alcoholic beverages in commercial quantities, are, subject to the limitations in this section, exempt from the payment of any internal revenue tax imposed on, or by reason of, importation. This exemption applies only to samples to be used for soliciting orders for products of foreign countries. In no case shall this exemption apply to more than one sample of each alcoholic beverage product admitted during any calendar quarter for the use of each such person. No sample of beer shall contain more than 8 ounces, no sample of wine shall contain more than 4 ounces, and no sample of distilled spirits shall contain more than 2 ounces.
</P>
<SECAUTH TYPE="N">(76 Stat. 72; 19 U.S.C. 1202)
</SECAUTH>
<CITA TYPE="N">[T.D. 6300, 23 FR 5168, July 8, 1958; T.D. ATF-2, 37 FR 22740, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.22.5" TYPE="SUBPART">
<HEAD>Subpart E—General Requirements</HEAD>


<DIV7 N="453" NODE="27:1.0.1.1.22.5.453" TYPE="SUBJGRP">
<HEAD>Federal Alcohol Administration Act Requirements for Importation of Distilled Spirits, Wines, and Malt Beverages</HEAD>


<DIV8 N="§ 27.55" NODE="27:1.0.1.1.22.5.453.1" TYPE="SECTION">
<HEAD>§ 27.55   Requirements of the Federal Alcohol Administration Act.</HEAD>
<P>(a) <I>General.</I> The Federal Alcohol Administration Act (FAA Act) and the regulations issued under the FAA Act (parts 1, 4, 5, and 7 of this chapter) provide that any person, except an agency of a State or political subdivision thereof or any officer or employee of any such agency, who imports distilled spirits, wines, or malt beverages for nonindustrial use must comply with certain permit and labeling requirements as described in this section. See 27 CFR 1.10 for the definitions of distilled spirits, wine, and malt beverages under the FAA Act. Tourists importing distilled spirits, wines, or malt beverages into the United States for personal or other noncommercial use are not subject to the provisions of the FAA Act or regulations issued pursuant to the FAA Act (parts 1, 4, 5, and 7 of this chapter).
</P>
<P>(b) <I>FAA Act basic permit.</I> Any person, except an agency of a State or a political subdivision thereof or any officer or employee of any such agency, who intends to engage in the business of importing distilled spirits, wines, or malt beverages into the United States must, prior to importing such products into the United States, obtain an importer's basic permit, in accordance with the requirements of the FAA Act and regulations issued pursuant to the FAA Act, and must file with U.S. Customs and Border Protection (CBP) the number associated with this permit with the filing of the customs entry when filing electronically as required under 27 CFR 1.58. Also, as required under § 1.58 of this chapter, if the importer is not filing electronically, the importer must have a copy of the FAA Act basic permit and make it available upon request of the appropriate TTB officer or a customs officer.
</P>
<P>(c) <I>Certificate of label approval.</I> Any person and any agency of a State or political subdivision thereof or any officer or employee of such agency, removing for commercial purposes containers of distilled spirits, wines, or malt beverages from customs custody for consumption, when filing electronically, must provide the TTB-assigned identification number of the valid certificate of label approval (COLA) for the distilled spirits, wines, or malt beverages with the filing of the customs entry in accordance with the requirements of 27 CFR 4.40 in the case of wine, 27 CFR 5.51 in the case of distilled spirits, or 27 CFR 7.31 in the case of malt beverages. Also, as required under 27 CFR 4.40, 5.51, and 7.31, if the importer is not filing electronically, the importer must provide a copy of the valid COLA to CBP at time of entry.
</P>
<P>(d) <I>Foreign certificates.</I> Every person and any agency of a State or political subdivision thereof or any officer or employee of such agency, importing for commercial purposes into the United States for consumption containers of distilled spirits or wines that require a certificate under 27 CFR 4.45 in the case of wine or 27 CFR 5.52 in the case of distilled spirits must be in possession of the certificate (and accompanying invoice, if applicable) at the time of release from customs custody.
</P>
<SECAUTH TYPE="N">(Sec. 3, 49 Stat. 978, as amended; 27 U.S.C. 203)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94205, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="454" NODE="27:1.0.1.1.22.5.454" TYPE="SUBJGRP">
<HEAD>Packaging and Marking of Distilled Spirits</HEAD>


<DIV8 N="§ 27.56" NODE="27:1.0.1.1.22.5.454.2" TYPE="SECTION">
<HEAD>§ 27.56   Distilled spirits containers of a capacity of not more than 1 gallon.</HEAD>
<P>Bottled distilled spirits imported into the United States for sale shall be bottled in liquor bottles which conform to the requirements of subpart N of this part and part 5 of this chapter. Empty bottles imported for the packaging of distilled spirits shall conform to the requirements of subpart N of this part. (For customs requirements as to marking, see 19 CFR parts 11 and 12.)
</P>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 23955, June 7, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 27.57" NODE="27:1.0.1.1.22.5.454.3" TYPE="SECTION">
<HEAD>§ 27.57   Containers in excess of 1 gallon.</HEAD>
<P>Imported containers of distilled spirits in excess of 1 gallon are required to be marked in accordance with customs regulations (19 CFR parts 11 and 12).
</P>
<CITA TYPE="N">[20 FR 3561, May 21, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-206, 50 FR 23955, June 7, 1985]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="455" NODE="27:1.0.1.1.22.5.455" TYPE="SUBJGRP">
<HEAD>Labeling of Distilled Spirits</HEAD>


<DIV8 N="§ 27.58" NODE="27:1.0.1.1.22.5.455.4" TYPE="SECTION">
<HEAD>§ 27.58   Containers of 1 gallon (3.785 liters) or less.</HEAD>
<P>Labels on imported containers of distilled spirits, and on containers of imported distilled spirits bottled in customs custody, for sale at retail, are required to be covered by a certificate of label approval TTB Form 5100.31 issued pursuant to part 5 of this chapter. Containers of imported distilled spirits bottled after taxpayment and withdrawal from customs custody are required to be covered by a certificate of label approval or a certificate of exemption from label approval TTB Form 5100.31 issued pursuant to part 5 of this chapter. When distilled spirits are to be labeled under a certificate of exemption from label approval, the labels affixed to containers are required to conform to the provisions of part 19 of this chapter.
</P>
<CITA TYPE="N">[T.D. 6954, 33 FR 6818, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 27.58, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV7>


<DIV7 N="456" NODE="27:1.0.1.1.22.5.456" TYPE="SUBJGRP">
<HEAD>Marking and Labeling of Wines and Beer</HEAD>


<DIV8 N="§ 27.59" NODE="27:1.0.1.1.22.5.456.5" TYPE="SECTION">
<HEAD>§ 27.59   Wines.</HEAD>
<P>(a) <I>General.</I> All imported wines containing not less than 7 percent and not more than 24 percent of alcohol by volume are required to be packaged, marked, branded, and labeled in conformity with the Federal Alcohol Administration Act and regulations promulgated thereunder (27 CFR part 4), prior to their removal from customs custody. Containers of imported wine bottled or packaged after taxpayment and withdrawal from customs custody are required to be covered by a certificate of label approval or a certificate of exemption from label approval on TTB Form 5100.31 issued pursuant to the Federal Alcohol Administration Act and regulations promulgated thereunder (27 CFR part 4). Imported containers of wine are required also to be marked, branded and labeled in accordance with customs regulations (19 CFR parts 11 and 12).
</P>
<P>(b) <I>Hard cider.</I> The container of any wine eligible for the “hard cider” tax class set forth in § 24.270 of this chapter must be labeled in accordance with the requirements applicable to wine containers removed from wine premises under § 24.257(a)(4) of this chapter. (See § 24.331 of this chapter for the eligibility requirements for the hard cider tax rate).
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0092 and 1513-0138)
</APPRO>
<CITA TYPE="N">[20 FR 3561, May 21, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. ATF-242, 51 FR 39526, Oct. 29, 1986; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002; T.D. TTB-147, 82 FR 7666, Jan. 23, 2017; 82 FR 57353, Dec. 5, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 27.60" NODE="27:1.0.1.1.22.5.456.6" TYPE="SECTION">
<HEAD>§ 27.60   Beer.</HEAD>
<P>All imported beer is required to be released from customs custody in conformity with the Federal Alcohol Administration Act and regulations thereunder. The attention of all concerned is directed, in this connection, to the provisions of 27 CFR part 7 relating to the labeling and advertising of malt beverages, issued under the Federal Alcohol Administration Act. Imported containers of beer are required to be marked and labeled in accordance with customs regulations (19 CFR parts 11 and 12). 
</P>
<CITA TYPE="N">[20 FR 3561, May 21, 1955, as amended by T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="457" NODE="27:1.0.1.1.22.5.457" TYPE="SUBJGRP">
<HEAD>Closures for Containers of Distilled Spirits</HEAD>


<DIV8 N="§ 27.61" NODE="27:1.0.1.1.22.5.457.7" TYPE="SECTION">
<HEAD>§ 27.61   Containers of distilled spirits to bear closures.</HEAD>
<P>No person shall transport, buy, possess, or sell, or transfer any imported distilled spirits in containers of 1 gallon (3.785 liters) or less, unless the immediate container thereof has a closure or other device affixed in accordance with the provisions of this part.
</P>
<SECAUTH TYPE="N">(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 23955, June 7, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 27.62" NODE="27:1.0.1.1.22.5.457.8" TYPE="SECTION">
<HEAD>§ 27.62   Affixing closures.</HEAD>
<P>Each container of imported distilled spirits having a capacity of one gallon (3.785 liters) or less must have a closure or other device securely affixed to the container. The closure or other device must be constructed in such a manner as to require breaking in order to gain access to the contents of the container.
</P>
<SECAUTH TYPE="N">(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-119, 79 FR 17033, Mar. 27, 2014]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="458" NODE="27:1.0.1.1.22.5.458" TYPE="SUBJGRP">
<HEAD>Exemptions</HEAD>


<DIV8 N="§ 27.74" NODE="27:1.0.1.1.22.5.458.9" TYPE="SECTION">
<HEAD>§ 27.74   Exemption from requirements pertaining to marks, bottles, and labels.</HEAD>
<P>The provisions of this part relating to the labeling of containers as prescribed by 27 CFR part 5 are not applicable to imported distilled spirits (a) not for sale or for any other commercial purpose whatever; (b) on which no internal revenue tax is required to be paid or determined on or before withdrawal from customs custody; (c) for use as ship stores; or (d) for personal use. Samples of distilled spirits, other than those provided for in §§ 27.49 and 27.75, imported for any purpose are not exempt from the requirements pertaining to marks, bottles, and labels. Samples of wine and beer brought into the United States pursuant to § 27.49 are exempt from the requirements pertaining to marks, bottles, and labels. Samples of wine and beer brought into the United States pursuant to § 27.49 are exempt from the labeling requirements of 27 CFR parts 4 and 7, respectively. Exemptions from the requirements that imported distilled spirits, wines, and beer be marked to indicate the country of origin are set forth in customs regulations (19 CFR part 11).
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1374, as amended (26 U.S.C. 5205, 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 23956, June 7, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 27.75" NODE="27:1.0.1.1.22.5.458.10" TYPE="SECTION">
<HEAD>§ 27.75   Samples of distilled spirits, wine, and beer for quality control purposes.</HEAD>
<P>Samples of distilled spirits, wine, and beer in containers of a capacity of not more than 1.75 liters, imported solely for quality control purposes (laboratory testing and analysis) and not for sale or for use in the manufacture or production of any article for sale, shall be exempt from any requirements relating to marks, bottles, labels, and standards of fill. Samples imported for quality control purposes shall not be exempt from the payment of any internal revenue tax imposed on, or by reason of, importation.
</P>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8557, Mar. 1, 1985, as amended by T.D. ATF-206, 50 FR 23955, June 7, 1985]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="459" NODE="27:1.0.1.1.22.5.459" TYPE="SUBJGRP">
<HEAD>Wine and Flavors Content of Distilled Spirits</HEAD>


<DIV8 N="§ 27.76" NODE="27:1.0.1.1.22.5.459.11" TYPE="SECTION">
<HEAD>§ 27.76   Approval and certification of wine and flavors content.</HEAD>
<P>(a) Any person who, after December 1, 1990, imports into the United States distilled spirits on which the tax is to be paid or determined at an effective tax rate based in whole, or in part, on the alcohol content derived from eligible wine or eligible flavors which have not been previously approved on TTB Form 5154.1 (formerly TTB Form 5530.5 and ATF Form 1678) shall, before the first tax determination at that rate, request and receive a statement of eligibility for each wine or flavor to be used in the computation of the effective tax rate.
</P>
<P>(b) To receive a statement of eligibility, the importer shall cause to be submitted to the TTB Alcohol and Tobacco Laboratory, 6000 Ammendale Road, Ammendale, MD 20705, the following:
</P>
<P>(1) An 8-ounce sample of each distilled spirits, wine and flavor contained in the product; and
</P>
<P>(2) A statement of composition listing—
</P>
<P>(i) For wine, the kind (class and type) and percentage of alcohol by volume; and
</P>
<P>(ii) For flavors, the name and percentage of alcohol by volume, and the name and quantity of each ingredient used in the manufacture of the flavor.
</P>
<P>(c) Each time distilled spirits containing eligible wine or eligible flavors are imported into the United States, the importer shall prepare a certificate of effective tax rate computation showing the following:
</P>
<P>(1) Name, address, and permit number of the importer;
</P>
<P>(2) Kind (class and type) of product;
</P>
<P>(3) Elements necessary to compute the effective tax rate in accordance with § 27.41 as follows—
</P>
<P>(i) Proof gallons of distilled spirits (exclusive of distilled spirits derived from eligible flavors);
</P>
<P>(ii) Wine gallons of each eligible wine and the percentage of alcohol by volume of each; and
</P>
<P>(iii) Proof gallons of distilled spirits derived from eligible flavors;
</P>
<P>(4) After December 1, 1990, the date of the statement of eligibility of each eligible wine and of each eligible flavor;
</P>
<P>(5) Effective tax rate applied to the product; and
</P>
<P>(6) Signature of the importer or other duly authorized person under the following declaration:
</P>
<EXTRACT>
<FP>I declare under the penalties of perjury that this certificate of effective tax rate computation has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete.</FP></EXTRACT>
<P>(d) At the time of filing the entry summary, the importer must have the certificate in its possession and make it available upon request of the appropriate TTB officer or a customs officer. For distilled spirits withdrawn from customs custody under the provisions of subpart L of this part, the importer must furnish a copy of the certificate to the proprietor of the distilled spirits plant to which the distilled spirits are transferred.
</P>
<P>(e) The importer must maintain a copy of the certificate in accordance with the record retention requirements of § 27.137 and must make it available upon request of the appropriate TTB officer or a customs officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<SECAUTH TYPE="N">(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18070, Apr. 30, 1990, as amended by T.D. TTB-44, 71 FR 16946, Apr. 4, 2006; T.D. TTB-145, 81 FR 94206, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 27.77" NODE="27:1.0.1.1.22.5.459.12" TYPE="SECTION">
<HEAD>§ 27.77   Standard effective tax rate.</HEAD>
<P>(a) In lieu of preparing a certificate of effective tax rate computation each time distilled spirits containing eligible wine or eligible flavors are imported as prescribed in § 27.76(c), an importer may have a standard effective tax rate established based on the least quantity and the lowest alcohol content of eligible wine or eligible flavors used in the manufacture of the product.
</P>
<P>(b) To have a standard effective tax rate established, the importer shall cause to be submitted to the TTB Alcohol and Tobacco Laboratory, 6000 Ammendale Road, Ammendale, MD 20705, the following:
</P>
<P>(1) The samples prescribed in § 27.76(b)(1) and an 8-ounce sample of the finished product;
</P>
<P>(2) The statement of composition prescribed in § 27.76(b)(2);
</P>
<P>(3) A statement of composition for the finished product listing the—
</P>
<P>(i) Name of the product;
</P>
<P>(ii) Quantity, alcohol content (percentage of alcohol by volume), and the kind (class and type) of each eligible wine or the name of each eligible flavor used in the manufacture of the product; and
</P>
<P>(iii) Standard effective tax rate for the product computed in accordance with § 27.41.
</P>
<P>(c) Where a standard effective tax rate has been previously approved for a product, an importer, in lieu of having a standard effective tax rate established, may use that rate. An importer desiring to use a previously approved standard effective tax rate shall obtain a copy of the approval from the person to whom it was issued and, over the signature of the importer or other duly authorized person, place the following declaration:
</P>
<EXTRACT>
<FP>I declare under the penalties of perjury that this approval has been examined by me and, to best of my knowledge and belief, the standard effective tax rate established for this product is applicable to all like products contained in this shipment.</FP></EXTRACT>
<P>(d) A standard effective tax rate may not be employed until approved by the appropriate TTB officer. At the time of filing the entry summary, the importer must have the approval in its possession and make it available upon request of the appropriate TTB officer or a customs officer. The use of a standard effective tax rate shall not relieve an importer from the payment of any tax found to be due. The appropriate TTB officer may at any time require an importer to immediately discontinue the use of a standard effective tax rate.
</P>
<P>(e) The importer must maintain a copy of the approval in accordance with the record retention requirements of § 27.137 and must make it available upon request of the appropriate TTB officer.
</P>
<P>(f) For distilled spirits withdrawn from customs custody under the provisions of subpart L of this part, the importer must furnish a copy of the approval to the proprietor of the distilled spirits plant to which the distilled spirits are transferred.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. ATF-297, 55 FR 18070, Apr. 30, 1990; 55 FR 23635, June 11, 1990; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002; T.D. TTB-44, 71 FR 16946, Apr. 4, 2006; T.D. TTB-145, 81 FR 94206, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.22.6" TYPE="SUBPART">
<HEAD>Subparts F-G [Reserved]</HEAD>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.22.7" TYPE="SUBPART">
<HEAD>Subpart H—Importation of Distilled Spirits In Bulk</HEAD>


<DIV8 N="§ 27.120" NODE="27:1.0.1.1.22.7.460.1" TYPE="SECTION">
<HEAD>§ 27.120   Persons authorized to receive distilled spirits imported in bulk.</HEAD>
<P>Distilled spirits imported in bulk (<I>i.e.</I>, in containers having a capacity in excess of 1 gallon (3.785 liters)) may be entered into a class 8 customs bonded warehouse for bottling, or may be withdrawn from customs custody only if entered for exportation or if withdrawn by a person to whom it is lawful to sell or otherwise dispose of distilled spirits in bulk pursuant to the Federal Alcohol Administration Act (49 Stat. 985, as amended; 27 U.S.C., 206) and subpart E of part 1 of this chapter. The importation and disposition of distilled spirits imported in bulk shall be reported as prescribed by §§ 27.133 to 27.134.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, 1361, 1374, 1395 (26 U.S.C. 5114, 5207, 5301, 5555))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-34, 41 FR 46864, Oct. 26, 1976, as amended by T.D. TTB-145, 81 FR 94206, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 27.121" NODE="27:1.0.1.1.22.7.460.2" TYPE="SECTION">
<HEAD>§ 27.121   Containers.</HEAD>
<P>Imported distilled spirits may be bottled in either domestic or imported containers conforming to the provisions of subpart N of this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1374; 26 U.S.C. 5301)
</SECAUTH>
<CITA TYPE="N">[T.D. 6954, 33 FR 6819, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.22.8" TYPE="SUBPART">
<HEAD>Subpart I—Importer's Records and Reports</HEAD>


<DIV8 N="§§ 27.130-27.132" NODE="27:1.0.1.1.22.8.460.1" TYPE="SECTION">
<HEAD>§§ 27.130-27.132   [Reserved]</HEAD>
</DIV8>


<DIV7 N="460" NODE="27:1.0.1.1.22.8.460" TYPE="SUBJGRP">
<HEAD>Record and Report of Imported Liquors</HEAD>


<DIV8 N="§ 27.133" NODE="27:1.0.1.1.22.8.460.2" TYPE="SECTION">
<HEAD>§ 27.133   General requirements.</HEAD>
<P>Except as provided in § 27.134, every importer who imports distilled spirits, wines, or beer shall keep such records and render such reports of the physical receipt and disposition of such liquors as are required to be kept by a wholesale or retail dealer, as applicable, under the provision of part 31 of this chapter. Any importer who does not take physical possession of the liquors at the time of, but is responsible for, their release from customs custody shall keep commercial records reflecting such release; such records shall identify the kind and quantity of the liquors released, the name and address of the person receiving the liquors from customs custody, and the date of release, and shall be filed chronologically by release dates. Records and reports will not be required under this part with respect of liquors while in customs custody.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(72 Stat. 1342, 1345, 1395; 26 U.S.C. 5114, 5124, 5555)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-2, 37 FR 22743, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 27.134" NODE="27:1.0.1.1.22.8.460.3" TYPE="SECTION">
<HEAD>§ 27.134   Proprietors of qualified premises.</HEAD>
<P>Importing operations conducted by proprietors of premises qualified under the provisions of this chapter shall be recorded and reported in accordance with the regulations governing the operations of each such premises.
</P>
<SECAUTH TYPE="N">(72 Stat. 1342, 1361, 1395; 26 U.S.C. 5114, 5207, 5555)
</SECAUTH>
<CITA TYPE="N">[T.D. 6388, 24 FR 4824, June 12, 1959, as amended by T.D. 6477, 25 FR 6207, July 1, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975] 


</CITA>
</DIV8>

</DIV7>


<DIV7 N="461" NODE="27:1.0.1.1.22.8.461" TYPE="SUBJGRP">
<HEAD>Filing and Retention of Records and Reports</HEAD>


<DIV8 N="§ 27.136" NODE="27:1.0.1.1.22.8.461.4" TYPE="SECTION">
<HEAD>§ 27.136   Filing.</HEAD>
<P>(a) All records and reports required by this part will be maintained separately, by transaction or reporting date, at the importer's place of business. The appropriate TTB officer may, pursuant to an application, authorize files, or an individual file, to be maintained at another business location under the control of the importer, if the alternative location does not cause undue inconvenience to appropriate TTB officers desiring to examine the files or delay in the timely submission of documents, and are not inconsistent with customs recordkeeping requirements (See 19 CFR part 163).
</P>
<P>(b) If an importer conducts wholesale operations, one legible copy of each required record of receipt and disposition shall be filed not later than one business day following the date of transaction.
</P>
<P>(c) If an importer conducts only retail operations, they may maintain either loose-leaf or book records of the daily receipt of liquors which contain all the required information.
</P>
<P>(d) Supporting documents, such as consignors' invoices, delivery receipts, bills of lading, etc., or exact copies of the same, may be filed in accordance with the importer's regular accounting and recordkeeping practices.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0352)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended (26 U.S.C. 5114, 5555))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-116, 47 FR 51573, Nov. 16, 1982, as amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 27.137" NODE="27:1.0.1.1.22.8.461.5" TYPE="SECTION">
<HEAD>§ 27.137   Retention.</HEAD>
<P>All records required by this part, documents or copies of documents supporting these records (including data filed with U.S. Customs and Border Protection (CBP) pursuant to CBP requirements), and file copies of reports required by this part, must be retained for not less than three years following each withdrawal from customs custody, and during this period must be made available upon request of the appropriate TTB officer or a customs officer. Furthermore, the appropriate TTB officer may require these records to be kept for an additional period of not more than three years in any case where the appropriate TTB officer determines retention necessary or advisable. (For record retention periods under CBP regulations, see 19 CFR part 163.) Any records, or copies thereof, containing any of the information required by this part to be prepared, wherever kept, shall also be made available for inspection and copying.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064 and 1513-0088) 
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94206, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="462" NODE="27:1.0.1.1.22.8.462" TYPE="SUBJGRP">
<HEAD>Other Records</HEAD>


<DIV8 N="§ 27.138" NODE="27:1.0.1.1.22.8.462.6" TYPE="SECTION">
<HEAD>§ 27.138   Transfer record.</HEAD>
<P>(a) <I>Distilled spirits.</I> The transfer record prescribed in § 27.172 must identify the importer and show the following:
</P>
<P>(1) The date prepared;
</P>
<P>(2) Serial number of the transfer record, beginning with “1” each January 1;
</P>
<P>(3) The name, address, and TTB-issued IRC registry number (distilled spirits plant number) of the proprietor receiving the spirits from customs custody;
</P>
<P>(4) The country of origin of the distilled spirits;
</P>
<P>(5) The name of the foreign producer;
</P>
<P>(6) The kind of spirits;
</P>
<P>(7) The age, in years, months and days of the spirits;
</P>
<P>(8) The proof of the spirits;
</P>
<P>(9) The type and number of containers;
</P>
<P>(10) The proof gallons of spirits in the shipment; and
</P>
<P>(11) The customs entry number and the amount of duty paid.
</P>
<P>(b) <I>Wine.</I> The transfer record prescribed in § 27.172 must identify the importer and show the following:
</P>
<P>(1) The date prepared;
</P>
<P>(2) The name and address of the bonded wine cellar receiving the wine from customs custody;
</P>
<P>(3) The TTB-issued IRC registry number of the bonded wine cellar receiving the wine from customs custody;
</P>
<P>(4) The number of containers transferred and quantity of wine in each container;
</P>
<P>(5) The country of origin of the wine;
</P>
<P>(6) The customs entry number and amount of duty paid;
</P>
<P>(7) The kind of wine; and
</P>
<P>(8) The foreign producer.
</P>
<P>(c) <I>Beer.</I> The transfer record prescribed in § 27.172 must identify the importer and show the following:
</P>
<P>(1) The date prepared;
</P>
<P>(2) The name and address of the brewery receiving the beer from customs custody;
</P>
<P>(3) The TTB-issued IRC registry number of the brewery receiving the beer from customs custody;
</P>
<P>(4) The number of containers transferred and quantity of beer in each container;
</P>
<P>(5) The country of origin of the beer;
</P>
<P>(6) The customs entry number and the amount of duty paid;
</P>
<P>(7) The kind of beer; and
</P>
<P>(8) The foreign brewer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94206, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 27.139" NODE="27:1.0.1.1.22.8.462.7" TYPE="SECTION">
<HEAD>§ 27.139   Package gauge record.</HEAD>
<P>When required in this part, a package gauge record shall be prepared to show:
</P>
<P>(a) The date prepared;
</P>
<P>(b) The related transaction record and its serial number; and
</P>
<P>(c) For each package:
</P>
<P>(1) Package identification or serial number;
</P>
<P>(2) Kind of spirits;
</P>
<P>(3) Gross weight;
</P>
<P>(4) Proof;
</P>
<P>(5) Proof gallons;
</P>
<P>(6) Name of warehouseman who received the spirits from customs custody; and
</P>
<P>(7) Name of importer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250)
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8558, Mar. 1, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 27.140" NODE="27:1.0.1.1.22.8.462.8" TYPE="SECTION">
<HEAD>§ 27.140   Certification requirements for wine.</HEAD>
<P>(a) <I>Definitions.</I> When used in this section, the following terms have the meaning indicated:
</P>
<P><I>Affiliate</I> means any one of two or more persons if one of such persons has actual or legal control, directly or indirectly, whether by stock ownership or otherwise, of the other or others of such persons, and includes a winery's parent or subsidiary or any other entity in which the winery's parent or subsidiary has a controlling ownership interest. An affiliate also means any one of two or more persons subject to common control, actual or legal, directly or indirectly, whether by stock ownership or otherwise.
</P>
<P><I>Produced</I>, when used with reference to wine, means removed from the fermenter.
</P>
<P><I>Proper cellar treatment</I> means a production practice or procedure authorized for natural wine by part 24 of this chapter, or, in the case of natural wine produced and imported subject to an international agreement or treaty, those practices and procedures acceptable to the United States under that agreement or treaty.
</P>
<P>(b) <I>Certification</I>— (1) <I>General.</I> Except as otherwise provided in paragraph (b)(2) of this section, an importer of natural wine must have an original or copy of a certification from the producing country stating that the practices and procedures used to produce the imported wine constitute proper cellar treatment. The importer of bottled wine must be in possession of the certificate at the time of filing the entry with CBP, and the bottler of bulk wine must be in possession of the certificate at the time the wine is withdrawn from the premises where bottled. The importer or bottler, as appropriate, must provide the certificate upon request by the appropriate TTB officer or a customs officer. This requirement may be satisfied by providing the original certification, or a photocopy or electronic copy of the certification. The appropriate TTB officer or a customs officer may request, and the importer or bottler must provide, such information for a period of three years from the date that the product covered by the certificate was released from customs custody or removed from the bottler's premises, as applicable. The certification:
</P>
<P>(i) Must be from a governmental or government-approved entity having oversight or control over enological practices in the producing country under the laws of that country;
</P>
<P>(ii) Must include the results of a laboratory analysis of the wine conducted either by a government laboratory of the producing country or by a laboratory certified by the government of the producing country; and
</P>
<P>(iii) Must be in the possession of the importer at the time of release of the wine from customs custody and may cover multiple importations provided that the wine in each case is of the same brand and class or type, was made by the same producer, was subjected to the same cellar treatment, and conforms to the statements made on the certification.
</P>
<P>(2) <I>Alternative certifications and exemptions</I>—(i) The following are alternatives to the producing country certification and laboratory analysis requirement described in paragraph (b)(1) of this section:
</P>
<P>(A) In the case of natural wine produced and imported subject to an international agreement or treaty specifying that the practices and procedures used to produce the wine are acceptable to the United States, no producing country certification and laboratory analysis is required, unless that international agreement or treaty requires a certification, in which case the importer must have in his or her possession at the time of release of the wine from customs custody an original or copy of that certification.
</P>
<P>(B) If an importer of natural wine or its affiliate owns or controls a winery operating under a basic permit issued under part 1 of this chapter, in lieu of a producing country certification and laboratory analysis, the importer may self-certify that the practices and procedures used to produce the wine constitute proper cellar treatment. The self-certification must be either in the format set forth in paragraph (c) of this section with blocks 1 through 4 completed or in an alternative format that sets forth the same information, and it must be in the possession of the importer at the time of release of the wine from customs custody. In the case of self-certification the importer also must have at the time of release from customs custody records to establish that the requirements for self-certification are met.
</P>
<P>(ii) The following are exempt from any certification requirement under this section:
</P>
<P>(A) Natural wine produced before January 1, 2005. However, in this case, the importer must have in his or her possession at the time of release of the wine from customs custody records to establish that the wine was produced before January 1, 2005.
</P>
<P>(B) Importations of natural wine that are of a personal, non-commercial nature. Examples of non-commercial importations include importations by travelers, gift shipments between individuals, and importations by diplomats for embassy or consular use.
</P>
<P>(C) Importations of natural wine that constitute commercial samples. Commercial samples include sales samples, samples for trade shows, and samples for laboratory analysis.
</P>
<P>(D) Imported natural wine held on board international passenger carriers, such as cruise ships or airliners.
</P>
<P>(c) <I>Form.</I> The format for certification referred to in paragraph (b) of this section is the following:
</P>
<img src="/graphics/er24au05.000.gif"/>
<P>(d) <I>Preparation of Certification.</I> The following rules apply for the completion of the certification set forth in paragraph (c) of this section:
</P>
<P>(1) Block 1 must state the legal name and address (including country) of the producer of the wine.
</P>
<P>(2) Block 2 must include a complete description of the wine, including its brand name, year of production, class or type, and country of origin.
</P>
<P>(3) The importer must check the applicable box in block 3:
</P>
<P>(i) The importer must check box 3a and ensure that blocks 4 and 5 are completed if no alternative certification applies to the wine under paragraph (b)(2)(i) of this section.
</P>
<P>(ii) If paragraph (b)(2)(i)(B) applies to the wine, the importer must check box 3b and complete the certification in block 4.
</P>
<P>(4) If the certification is submitted subsequent to approval of a label, the importer must complete block 6 by including the TTB identification number from the certificate of label approval, TTB Form 5100.31.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0064 and 1513-0119)
</APPRO>
<CITA TYPE="N">[T.D. TTB-31, 70 FR 49483, Aug. 24, 2005, as amended by T.D. TTB-145, 81 FR 94206, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.22.9" TYPE="SUBPART">
<HEAD>Subparts J-K [Reserved]</HEAD>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.22.10" TYPE="SUBPART">
<HEAD>Subpart L—Transfer of Distilled Spirits, Natural Wines, and Beer Without Payment of Tax, From Customs Custody to Distilled Spirits Plants, Bonded Wine Cellars, and Breweries</HEAD>


<DIV8 N="§ 27.171" NODE="27:1.0.1.1.22.10.463.1" TYPE="SECTION">
<HEAD>§ 27.171   General provisions.</HEAD>
<P>(a) <I>Transfer of bulk distilled spirits from customs custody to bonded premises of a distilled spirits plant.</I> Imported distilled spirits in bulk containers may, under the provisions of this subpart, be withdrawn by the proprietor of a distilled spirits plant from customs custody and transferred in such bulk containers or by pipeline to the bonded premises of their plant, without payment of the internal revenue tax imposed on imported spirits by 26 U.S.C. 5001. Imported spirits so withdrawn and transferred to a distilled spirits plant may be redistilled or denatured only if of 185 degrees or more of proof, and may be withdrawn from the bonded premises of a distilled spirits plant for any purpose authorized by 26 U.S.C. chapter 51, in the same manner as domestic distilled spirits. Imported distilled spirits transferred from customs custody to the bonded premises of a distilled spirits plant under the provisions of this subpart shall be received and stored thereat, and withdrawn or transferred therefrom, subject to the applicable provisions of 27 CFR part 19. However, distilled spirits plant proprietors are not required to file application on TTB Form 5100.16 to receive imported spirits from customs custody. The person operating the bonded premises of the distilled spirits plant to which imported spirits are transferred shall become liable for the tax on distilled spirits withdrawn from customs custody under 26 U.S.C. 5232, upon release of the spirits from customs custody, and the importer shall thereupon be relieved of their liability for such tax.
</P>
<P>(b) <I>Transfer of bulk natural wine from customs custody to a bonded wine cellar.</I> Imported “natural wine,” as defined in § 27.11, may, under the provisions of this subpart, be withdrawn in bulk by the proprietor of a bonded wine cellar from customs custody and transferred in bulk containers to the bonded wine cellar without payment of the internal revenue tax imposed on wine by 26 U.S.C. 5041. Imported wine so withdrawn and transferred may be withdrawn from a bonded wine cellar for any purpose authorized by 26 U.S.C. chapter 51, in the same manner as domestic wine. The proprietor of the bonded wine premises to which imported wine is transferred becomes liable for the tax on wine withdrawn from customs custody under 26 U.S. C. 5364. Upon release of the wine from customs custody, the importer is relieved of the liability for the tax.
</P>
<P>(c) <I>Transfer of beer from customs custody to a brewery.</I> Imported bulk beer may, under the provisions of this subpart, be withdrawn by the proprietor of a bonded brewery from customs custody and transferred in bulk containers to brewery premises, without payment of the internal revenue tax imposed on beer by 26 U.S.C. 5051. 

Imported beer so withdrawn and transferred to bonded brewery premises may be withdrawn from a brewery's the premises of a distilled spirits plant for any purpose authorized by 26 U.S.C. chapter 51, in the same manner as domestic beer. The proprietor operating the bonded brewery premises to which imported beer is transferred becomes liable for the tax on beer withdrawn from customs custody under 26 U.S.C. 5418. Upon release of the beer from customs custody, the importer is relieved of the liability for the tax.


</P>
<SECAUTH TYPE="N">(26 U.S.C. 5232, 5364, and 5418)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71719, Dec. 11, 1979, as amended by T.D. ATF-198, 50 FR 8558, Mar. 1, 1985; T.D. TTB-145, 81 FR 94207, Dec. 22, 2016; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017; T.D.TTB-159, 85 FR 33542, June 2, 2020; T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 27.172" NODE="27:1.0.1.1.22.10.463.2" TYPE="SECTION">
<HEAD>§ 27.172   Preparation of records and reporting of information for release of distilled spirits, natural wines, and beer without payment of tax.</HEAD>
<P>(a) <I>Preparation of records.</I> (1) The person importing distilled spirits, natural wines, or beer under this subpart must prepare a transfer record according to § 27.138. A separate transfer record must be prepared for each conveyance. The importer must maintain these records and any records to substantiate the information required under paragraph (b) of this section, in accordance with the record retention requirements of § 27.137, and must make them available upon request of the appropriate TTB officer or a customs officer. The importer must also provide a copy of the record to the recipient, if the recipient is not the importer.
</P>
<P>(2) For distilled spirits, if the spirits are in packages, the importer must prepare a package gauge record according to § 27.139 and maintain it with the transfer record.
</P>
<P>(b) <I>Reporting information for release from customs custody.</I> In the case of distilled spirits, natural wines, and beer imported into the United States without payment of tax under this subpart, the importer, if filing electronically, must file with U.S. Customs and Border Protection (CBP) the information specified in this section at the time of filing the entry or entry summary, as appropriate, along with any other information that is required by CBP to be filed with the entry or entry summary for purposes of administering the provisions of the Internal Revenue Code and Federal Alcohol Administration Act (FAA Act). Any information required by this section that is also required by, and filed with, CBP as part of the entry or entry summary for purposes of meeting CBP requirements will satisfy the requirements of this section. Regardless of the method of filing, the importer must retain as a record the information required by this section, any information provided to CBP to meet CBP requirements, and any supporting documentation and make such records available for inspection by the appropriate TTB officer or a customs officer. The following information is required:
</P>
<P>(1) The number of the importer's basic permit issued under the FAA Act and the regulations issued pursuant to the FAA Act (27 CFR part 1), if applicable, as required by 27 CFR 1.20, and the importer's employer identification number (EIN) associated with that permit;
</P>
<P>(2) The name and address of the ultimate consignee;
</P>
<P>(3) The TTB-issued IRC registry number of the ultimate consignee;
</P>
<P>(4) The quantity of each distilled spirit, wine, or beer in the shipment (in proof liters or proof gallons, for distilled spirits); and
</P>
<P>(5) Information identifying each product for Internal Revenue Code and/or FAA Act purposes.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94207, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 27.173" NODE="27:1.0.1.1.22.10.463.3" TYPE="SECTION">
<HEAD>§ 27.173   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 27.174" NODE="27:1.0.1.1.22.10.463.4" TYPE="SECTION">
<HEAD>§ 27.174   Tank cars and tank trucks to be sealed.</HEAD>
<P>Where a shipment of distilled spirits from customs custody to the distilled spirits plant is made in a tank car or tank truck, all openings affording access to the spirits shall be sealed by the customs officer with customs seals in such manner as will prevent unauthorized removal of spirits through such openings without detection.
</P>
<SECAUTH TYPE="N">(72 Stat. 1314, 1322, 1366; 26 U.S.C. 5001, 5007, 5232)
</SECAUTH>
<CITA TYPE="N">[T.D. 6477, 25 FR 6208, July 1, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 27.175" NODE="27:1.0.1.1.22.10.463.5" TYPE="SECTION">
<HEAD>§ 27.175   Receipt of distilled spirits by consignee.</HEAD>
<P>Proprietors of distilled spirits plants who receive imported spirits under this subpart shall follow the requirements in 27 CFR part 19 for spirits received by transfer in bond. Proprietors of distilled spirits plants may receive such imported spirits even if they are exempt from bond requirements under § 19.151(d) of this chapter. However, proprietors are not required to file application on TTB Form 5100.16 to receive imported spirits from customs custody.
</P>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8558, Mar. 1, 1985, as amended by T.D. TTB-145, 81 FR 94207, Dec. 22, 2016; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.22.11" TYPE="SUBPART">
<HEAD>Subpart M—Withdrawal of Imported Distilled Spirits From Customs Custody Free of Tax for Use of the United States</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>50 FR 9200, Mar. 6, 1985, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 27.181" NODE="27:1.0.1.1.22.11.463.1" TYPE="SECTION">
<HEAD>§ 27.181   General.</HEAD>
<P>(a) The United States or any of its Government agencies may, upon filing proper customs entry, withdraw imported distilled spirits free of tax from customs custody, as authorized by 26 U.S.C. 5313 and under the provisions of this subpart. Before any distilled spirits may be withdrawn, a permit to procure the spirits shall be obtained from the appropriate TTB officer. A bond is not required for any Government agency to procure and withdraw spirits free of tax under this subpart.
</P>
<P>(b) The provisions of subpart N of part 22 of this chapter cover the withdrawal of domestically produced tax-free spirits for use of the United States or any of its Government agencies.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1372, as amended, 1375, as amended (26 U.S.C. 5273, 5313))


</SECAUTH>
</DIV8>


<DIV8 N="§ 27.182" NODE="27:1.0.1.1.22.11.463.2" TYPE="SECTION">
<HEAD>§ 27.182   Application and permit, Form 5150.33.</HEAD>
<P>(a) <I>General.</I> All permits previously issued to the United States or any of its Government agencies on Form 1444 shall remain valid and will be regulated by the same provisions of this subpart as it refers to permits on Form 5150.33.
</P>
<P>(b) <I>Application.</I> (1) A Government agency of the United States must apply for a permit to procure and withdraw spirits free of tax on Form 5150.33. Upon approval by the appropriate TTB officer, Form 5150.33 will be returned to the agency. 
</P>
<P>(2) If a Government agency intends to withdraw spirits free of tax under this part and part 22 of this chapter, Form 5150.33 may be annotated to cover both types of withdrawals.
</P>
<P>(3) A separate permit is not required for each port of entry. The application, Form 5150.33, may be completed to indicate the applicable ports of entry in which spirits will be withdrawn from customs custody.
</P>
<P>(4) A Government agency may specify on its application that it desires a single permit authorizing all sub-agencies under its control to procure and withdraw spirits free of tax under this subpart and subpart N of part 22 of this chapter; or, each Government location may individually file an application for a permit, Form 5150.33.
</P>
<P>(5) Each application for a permit shall be signed by the head of the agency or sub-agency, or the incumbent of an office which is authorized by the head of the agency or sub-agency, to sign. Evidence of authorization to sign on behalf of the head of an agency or sub-agency shall be furnished with the application.
</P>
<P>(c) <I>Use of spirits.</I> Spirits withdrawn under this subpart may not be used for non-Government purposes.
</P>
<P>(d) <I>Cancellation of permit.</I> All permits on Form 5150.33 and previous editions on Form 1444 remain in force until surrendered or canceled. Upon surrender or cancellation, the Government agency must obtain and destroy all photocopies of the permit furnished to port directors of customs, and forward the original to the appropriate TTB officer for cancellation. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5313))
</SECAUTH>
<CITA TYPE="N">[50 FR 9200, Mar. 6, 1985, as amended by T.D. ATF-474, 67 FR 11232, Mar. 13, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 27.183" NODE="27:1.0.1.1.22.11.463.3" TYPE="SECTION">
<HEAD>§ 27.183   Use of Government agency permit, Form 5150.33.</HEAD>
<P>Each Government agency must retain the original of its permit, Form 5150.33, on file. In the case of an agency holding a single permit for use of its sub-agencies, an attachment to the permit must list all locations authorized to withdraw spirits free of tax from customs custody. When withdrawing spirits free of tax from a port of entry, the agency, if filing electronically, must file its TTB-issued permit number along with the filing of any other information required by U.S. Customs and Border Protection to be filed with the customs entry. If the agency is not filing electronically, rather than file the TTB-issued permit number, the agency must make a copy of the permit available to the customs officer upon request.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5313))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94207, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 27.184" NODE="27:1.0.1.1.22.11.463.4" TYPE="SECTION">
<HEAD>§ 27.184   Information required for entry.</HEAD>
<P>Government agencies importing tax-free spirits under this subpart must file, along with filing the customs entry or entry summary, the total quantity of the spirits to be entered and, if filing electronically, the permit number as required under § 27.183.
</P>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94208, Dec. 22, 2016]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.22.12" TYPE="SUBPART">
<HEAD>Subpart N—Requirements for Liquor Bottles</HEAD>

<AUTH>
<HED>Authority:</HED><PSPACE>Sec. 5301, 72 Stat. 1374; 26 U.S.C. 5301.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. 6954, 33 FR 6819, May 4, 1968, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV8 N="§ 27.201" NODE="27:1.0.1.1.22.12.463.1" TYPE="SECTION">
<HEAD>§ 27.201   Scope of subpart.</HEAD>
<P>The provisions of this subpart shall apply only to liquor bottles having a capacity of 200 ml. or more except where expressly applied to liquor bottles of less than 200 ml. capacity.
</P>
<CITA TYPE="N">[T.D. 6954, 33 FR 6819, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-34, 41 FR 46865, Oct. 26, 1976]


</CITA>
</DIV8>


<DIV8 N="§ 27.202" NODE="27:1.0.1.1.22.12.463.2" TYPE="SECTION">
<HEAD>§ 27.202   Standards of fill.</HEAD>
<P>Distilled spirits imported into the United States in containers of 1 gallon (3.785 liters) or less for sale shall be imported only in liquor bottles, including liquor bottles of less than 200 ml capacity, which conform to the applicable standards of fill provided in § 5.203. of this chapter. Empty liquor bottles, including liquor bottles of less than 200 ml capacity, which conform to the provisions of part 19, or subpart K of part 5 of this chapter, may be imported for packaging distilled spirits in the United States as provided in part 19 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71720, Dec. 11, 1979, as amended by T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 27.204" NODE="27:1.0.1.1.22.12.463.3" TYPE="SECTION">
<HEAD>§ 27.204   Distinctive liquor bottles.</HEAD>
<P>(a) <I>Application.</I> Liquor bottles of distinctive shape or design, including bottles of less than 200 ml. capacity, may be imported by an importer (filled bottles) or a bottler (empty bottles). For filled bottles, the importer shall submit TTB Form 5100.31 for approval prior to importation of such bottles into the United States. For empty bottles, the bottler shall obtain approval from the appropriate TTB officer on TTB Form 5100.31 prior to using the bottles. The importer or bottler, as applicable, shall certify as to the total capacity of a representative sample bottle before closure (expressed in milliliters) on each copy of the form. In addition, the applicant shall affix a readily legible photograph (both front and back of the bottle to the front of each copy of TTB Form 5100.31, along with the label(s) to be used on the bottle. The applicant shall not submit an actual bottle or an authentic model unless specifically requested to do so.
</P>
<P>(b) <I>Approval.</I> (1) Properly submitted TTB Forms 5100.31 to import distinctive liquor bottles (filled), or, properly submitted TTB Forms 5100.31 to use distinctive liquor bottles (empty) which have been imported, shall be approved provided such bottles are found by the appropriate TTB officer to—
</P>
<P>(i) Meet the requirements of 27 CFR part 5;
</P>
<P>(ii) Be distinctive;
</P>
<P>(iii) Be suitable for their intended purpose;
</P>
<P>(iv) Not jeopardize the revenue; and
</P>
<P>(v) Not be deceptive to the consumer.
</P>
<P>(2) The applicant shall keep a copy of the approved TTB Form 5100.31, including an approved photograph (both front and back) of the distinctive liquor bottle, on file at their premises. If TTB Form 5100.31 is disapproved, the applicant shall be notified of the appropriate TTB officer's decision decision and the reasons therefor. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0020)
</APPRO>
<CITA TYPE="N">[T.D. ATF-114, 47 FR 43951, Oct. 5, 1982, as amended by T.D. ATF-242, 51 FR 39526, Oct. 29, 1986; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002; T.D. TTB-145, 81 FR 94208, Dec. 22, 2016; T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 27.205" NODE="27:1.0.1.1.22.12.463.4" TYPE="SECTION">
<HEAD>§ 27.205   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 27.206" NODE="27:1.0.1.1.22.12.463.5" TYPE="SECTION">
<HEAD>§ 27.206   Bottles not constituting approved containers.</HEAD>
<P>The appropriate TTB officer is authorized to disapprove any bottle, including a bottle of less than 200 ml. capacity, for use as a liquor bottle which he determines to be deceptive. Disapproved bottles may not be imported into the United States.


</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-114, 47 FR 43951, Oct. 5, 1982, as amended at T.D. TTB-145, 81 FR 94208, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 27.207" NODE="27:1.0.1.1.22.12.463.6" TYPE="SECTION">
<HEAD>§ 27.207   Bottles to be used for display purposes.</HEAD>
<P>Empty liquor bottles may be imported and furnished to liquor dealers for display purposes, provided each bottle is marked to show that it is to be used for such purpose. The importer shall keep records of the receipt and disposition of such bottles, showing the names and addresses of consignees, dates of shipment, and size, quantity, and description of bottles.
</P>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 23956, June 7, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 27.208" NODE="27:1.0.1.1.22.12.463.7" TYPE="SECTION">
<HEAD>§ 27.208   Liquor bottles not eligible for release from customs custody.</HEAD>
<P>Upon receipt of a letterhead application, the appropriate TTB officer may, in nonrecurring cases, authorize a person to bring into the United States liquor bottles that do not conform to the provisions of this part if that TTB officer determines that the nonconformance is due to an unintentional error; the nonconforming liquor bottle is determined not to be deceptive, as provided in § 27.206; and the entry of the nonconforming liquor bottle will not jeopardize the revenue. The person bringing such liquor bottles into the United States under TTB authorization must maintain proof of such authorization for not less than three years from the date that the liquor bottles were released from customs custody and make it available upon request by the appropriate TTB officer or a customs officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. TTB-145, 81 FR 94208, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 27.209" NODE="27:1.0.1.1.22.12.463.8" TYPE="SECTION">
<HEAD>§ 27.209   Used liquor bottles.</HEAD>
<P>The appropriate TTB officer may pursuant to letterhead application authorize an importer to receive liquor bottles assembled for that importer as provided in § 31.203 of this chapter. Used liquor bottles so received may be stored at any suitable location pending exportation for reuse. The importer shall keep records of the receipt and disposition of used liquor bottles.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. 6954, 33 FR 6819, May 4, 1968, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005; T.D. TTB-145, 81 FR 94208, Dec. 22, 2016; T.D. TTB-196, 89 FR 87944, ] 


</CITA>
</DIV8>

</DIV6>


<DIV6 N="O" NODE="27:1.0.1.1.22.13" TYPE="SUBPART">
<HEAD>Subpart O—Miscellaneous Provisions</HEAD>


<DIV8 N="§ 27.221" NODE="27:1.0.1.1.22.13.463.1" TYPE="SECTION">
<HEAD>§ 27.221   Alternate methods or procedures.</HEAD>
<P>(a) <I>Application.</I> An importer or foreign producer who desires to use an alternate method or procedure in lieu of a method or procedure prescribed by this part must file an application with the appropriate TTB officer. Each application must: 
</P>
<P>(1) Specify the name, address, and permit number of the importer or Foreign Producer ID of the foreign producer to which it relates;
</P>
<P>(2) State the purpose for which filed; and
</P>
<P>(3) Specifically describe the alternate method or procedure and set forth the reasons therefor.
</P>
<FP>No alternate method or procedure relating to the assessment, payment, or collection of tax shall be authorized under this paragraph.
</FP>
<P>(b) <I>Approval.</I> When an application for use of an alternate method or procedure is received, the appropriate TTB officer must determine whether approval thereof would unduly hinder the effective administration of this part or would result in jeopardy to the revenue. The appropriate TTB officer may approve the alternate method or procedure if such officer finds that: 
</P>
<P>(1) Good cause has been shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue; and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law, and will not result in an increase in cost to the Government or hinder the effective administration of this part.
</P>
<FP>No alternate method or procedure shall be used until approval has been received from the appropriate TTB officer. Authorization for the alternate method or procedure may be withdrawn whenever in the judgment of the appropriate TTB officer, the revenue is jeopardized or the effective administration of this part is hindered by the continuation of such authorization.
</FP>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. ATF-2, 37 FR 22743, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002; T.D. TTB-145, 81 FR 94208, Dec. 22, 2016; T.D. TTB-186, 87 FR 58031, Sept. 23, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 27.222" NODE="27:1.0.1.1.22.13.463.2" TYPE="SECTION">
<HEAD>§ 27.222   Importation of denatured spirits and fuel alcohol.</HEAD>
<P>Denatured spirits and fuel alcohol are treated as spirits for purposes of this part and are subject to tax pursuant to § 27.40(a). The tax must be paid upon importation, with only two exceptions: Spirits may be withdrawn from customs custody free of tax for the use of the United States under subpart M of this part; and spirits may be withdrawn from customs custody and transferred to a distilled spirits plant, including a bonded alcohol fuel plant, without payment of tax under subpart L of this part. After transfer pursuant to subpart L, denatured spirits or fuel alcohol may be withdrawn free of tax in accordance with part 19 of this chapter if they meet the standards to conform either to a denatured spirits formula specified in part 21 of this chapter (for withdrawal from a regular distilled spirits plant) or a formula specified in § 19.746 of this chapter (for withdrawal from an alcohol fuel plant). Such withdrawal is permitted, even though the denaturation or rendering unfit for beverage use may have occurred, in whole or in part, in a foreign country. For purposes of this chapter, the denaturation or rendering unfit is deemed to have occurred at the distilled spirits plant (including the alcohol fuel plant), the proprietor of which is responsible for compliance with part 21 or § 19.746, as the case may be. Imported fuel alcohol shall also conform to the requirements of 27 CFR 19.742.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59464, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV8 N="§§27.223-27.249" NODE="27:1.0.1.1.22.13.463.3" TYPE="SECTION">
<HEAD>§§27.223-27.249   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="P" NODE="27:1.0.1.1.22.14" TYPE="SUBPART">
<HEAD>Subpart P—Craft Beverage Modernization Act Import Refund Claims</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-186, 87 FR 58032, Sept. 23, 2022, unless otherwise noted.






</PSPACE></SOURCE>

<DIV8 N="§ 27.250" NODE="27:1.0.1.1.22.14.463.1" TYPE="SECTION">
<HEAD>§ 27.250   Scope.</HEAD>
<P>This subpart contains procedural requirements relative to the refunds of internal revenue tax for imported alcohol made available under the Craft Beverage Modernization Act provisions of the Internal Revenue Code of 1986 at 26 U.S.C. 5001(c)(4), 5041(c)(7), and 5051(a)(6). The refunds available under this subpart apply only to imported products entered for consumption on or after January 1, 2023.




</P>
</DIV8>


<DIV8 N="§ 27.252" NODE="27:1.0.1.1.22.14.463.2" TYPE="SECTION">
<HEAD>§ 27.252   Meaning of terms.</HEAD>
<P>When used in this subpart and in forms prescribed under this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms have the meaning ascribed in this section. Words in the plural form include the singular, and vice versa.
</P>
<P><I>CBMA.</I> The Craft Beverage Modernization Act provisions (sections 13801-13808) of the law commonly known as the Tax Cuts and Jobs Act (Pub. L. 115-97), as amended.
</P>
<P><I>CBMA importer refund claims system.</I> The electronic system established by TTB for the collection and review of claims for refund of internal revenue tax authorized under § 27.264. The CBMA importer refund claim system is available at <I>https://www.TTB.gov.</I>
</P>
<P><I>CBMA tax benefits.</I> The reduced tax rates or tax credits made available under CBMA at 26 U.S.C. 5001(c)(1) (distilled spirits), 5041(c)(1) (wine), and 5051(a)(1) (beer), and made assignable to importers by foreign distilled spirits operations, wineries, and brewers pursuant to sections 5001(c)(3), 5041(c)(6), and 5051(a)(4), respectively.
</P>
<P><I>Foreign producer.</I> A foreign distilled spirits operation, wine producer, or brewer.
</P>
<P><I>Foreign Producer ID.</I> The identification number issued to a foreign producer registered with TTB under § 27.254.
</P>
<P><I>Foreign producer registration and assignment system.</I> The electronic system established by TTB for the collection of information related to the registration of a foreign producer under §§ 27.254 through 27.260 and the assignment of CBMA tax benefits by such foreign producer under § 27.262. The foreign producer registration and assignment system is available at <I>https://www.TTB.gov.</I>




</P>
</DIV8>


<DIV8 N="§ 27.254" NODE="27:1.0.1.1.22.14.463.3" TYPE="SECTION">
<HEAD>§ 27.254   Registration of foreign producer.</HEAD>
<P>(a) <I>General.</I> A foreign producer electing to assign CBMA tax benefits to one or more importers must first register with TTB and receive a Foreign Producer ID.
</P>
<P>(b) <I>Information required in registration.</I> A foreign producer must provide the following information through the foreign producer registration and assignment system to register with TTB and receive a Foreign Producer ID:
</P>
<P>(1) The name, country of residence, and principal business address of the foreign producer;
</P>
<P>(2) The name, title, country of residence, phone number, and email address of an employee or individual owner of the business who has authority to act for the business;
</P>
<P>(3) If different than the individual identified in paragraph (b)(2) of this section, the name, address, phone number, and email address of the individual submitting the registration and authorized to act on the foreign producer's behalf;
</P>
<P>(4) The Food Facility Registration number(s) obtained from the U.S. Food and Drug Administration (FDA) under 21 CFR 1.225 that may be reported to FDA under 21 CFR 1.281(a)(6)(ii) for the purposes of importing into the United States the foreign producer's alcohol products;
</P>
<P>(5) Identifying information for the individuals and/or entities with ownership interests in the foreign producer as required by § 27.256, or a certification that § 27.256 does not require the foreign producer to provide such identifying information;
</P>
<P>(6) Any prescribed certifications attesting to the authority of the individual submitting the registration and the truthfulness of the information submitted, the acknowledgement by the person submitting the registration that providing erroneous or fraudulent information may cause TTB to revoke the foreign producer's eligibility to assign CBMA tax benefits, and consent to receive electronically any written notice of contemplated revocation;
</P>
<P>(7) Any additional information required by the appropriate TTB officer (including, through the foreign producer registration and assignment system) in order to verify a submitter's identity. Such information may include identifying numbers (<I>e.g.,</I> Employer Identification Number, Social Security Number) as provided in 26 U.S.C. 6109; and
</P>
<P>(8) Any additional information required by the appropriate TTB officer on a case-by-case basis, to administer CBMA.
</P>
<P>(c) <I>Language.</I> All registration information must be submitted in the English language except an individual's name, the name of a company, and the name of a street may be submitted in a foreign language. All information, including these items, must be submitted using the English alphabet.
</P>
<P>(d) <I>Electronic registration required.</I> The foreign producer must submit the information required by paragraph (b) of this section electronically using the format provided by TTB.




</P>
</DIV8>


<DIV8 N="§ 27.256" NODE="27:1.0.1.1.22.14.463.4" TYPE="SECTION">
<HEAD>§ 27.256   Foreign producer ownership information.</HEAD>
<P>(a) <I>When required.</I> A foreign producer must provide, as part of the registration required by § 27.254, the identifying information set forth in paragraph (b) of this section only when one or more of the individuals or entities holding an ownership interest in the foreign producer of 10 percent or more also holds an ownership interest in any distilled spirits operation, winery, or brewery in the United States or in any other foreign producer that has assigned or will assign CBMA tax benefits for any calendar year in which the registering foreign producer also assigns such benefits. Otherwise, the foreign producer must only certify that this scenario does not apply.
</P>
<P>(b) <I>Identifying information</I>—(1) <I>Individual owner.</I> For each individual holding an ownership interest of 10 percent or more in the foreign producer, the foreign producer must provide the following information when required by paragraph (a) of this section:
</P>
<P>(i) The name, address, and phone number of the individual.
</P>
<P>(ii) [Reserved]
</P>
<P>(2) <I>Other entity.</I> For each entity (other than an individual) holding an ownership interest of 10 percent or more in the foreign producer, the foreign producer must provide the following information when required by paragraph (a) of this section:
</P>
<P>(i) The name, address, and phone number of the entity;
</P>
<P>(ii) If the entity is a U.S. entity, and if the entity has such a number, the entity's Employer Identification Number issued by the U.S. Internal Revenue Service; and
</P>
<P>(iii) If the entity is a foreign entity, and if the entity has such a number, the Dun &amp; Bradstreet Data Universal Numbering System number of the entity.




</P>
</DIV8>


<DIV8 N="§ 27.258" NODE="27:1.0.1.1.22.14.463.5" TYPE="SECTION">
<HEAD>§ 27.258   Changes to foreign producer registration.</HEAD>
<P>Whenever there is a change to any of the information submitted by the foreign producer under § 27.254, the foreign producer must update its registration with the new information within 60 days. Whenever the appropriate TTB officer determines that a foreign producer has failed to update its registration information as required, the foreign producer's registration is deemed invalid and the foreign producer will be unable to assign CBMA tax benefits until the foreign producer updates its registration as required or the appropriate TTB officer is satisfied that no such update is required.




</P>
</DIV8>


<DIV8 N="§ 27.260" NODE="27:1.0.1.1.22.14.463.6" TYPE="SECTION">
<HEAD>§ 27.260   Persons authorized to act on behalf of foreign producer.</HEAD>
<P>(a) <I>General.</I> A foreign producer registered with TTB to assign CBMA tax benefits must identify at least one person authorized to act on its behalf. The person who initially registers a foreign producer under § 27.254 must have authorization from the foreign producer to provide the required registration information, edit the foreign producer's registration information, designate additional persons who are also authorized by the foreign producer to act on the foreign producer's behalf or cancel the designations of authorized persons, and make assignments of CBMA tax benefits. All authorized representatives of the foreign producer must have authority to receive and respond to communications from TTB, including notice of contemplated revocation under § 27.268(b).
</P>
<P>(b) <I>Authorization of additional persons.</I> (1) A foreign producer may authorize more than one person to act on its behalf within the foreign producer registration and assignment system. To designate an additional person as described above, the foreign producer must provide the following information:
</P>
<P>(i) The name and email address of the person; and
</P>
<P>(ii) The appropriate system role for the person, based on the functions in paragraph (a) of this section that the person is authorized to carry out.
</P>
<P>(2) TTB may collect additional information from the additional person, as needed, to verify their identity. Such information may include identifying numbers (<I>e.g.,</I> Social Security Number) as provided in 26 U.S.C. 6109.
</P>
<P>(c) <I>Proof of authority.</I> An individual acting on behalf of the foreign producer in the foreign producer registration and assignment system must maintain documentation establishing the individual's authority to act for the foreign producer and provide this documentation to TTB upon request. Any representative must be authorized by the foreign producer pursuant to a duly executed power of attorney or other document deemed acceptable to the appropriate TTB officer.




</P>
</DIV8>


<DIV8 N="§ 27.262" NODE="27:1.0.1.1.22.14.463.7" TYPE="SECTION">
<HEAD>§ 27.262   Foreign producer's assignment of CBMA tax benefits.</HEAD>
<P>(a) <I>General.</I> A foreign producer who has registered with TTB under § 27.254 and received a Foreign Producer ID may assign its CBMA tax benefits to importers, subject to the quantity limitations established by law.
</P>
<P>(b) <I>Information required in assignment.</I> A foreign producer must provide the following information through the foreign producer registration and assignment system to make an assignment of CBMA tax benefits to an importer:
</P>
<P>(1) The calendar year for which the CBMA tax benefits are being assigned;
</P>
<P>(2) The TTB importer permit number or TTB-assigned reference number of the importer to whom the assignment is made;
</P>
<P>(3) The Internal Revenue Code classification of the product for which the assignment is made, either distilled spirits, wine, or beer;
</P>
<P>(4) The reduced tax rate or tax credit being assigned, either:
</P>
<P>(i) For distilled spirits:
</P>
<P>(A) The reduced tax rate of $2.70 per proof gallon on the first 100,000 proof gallons imported in the calendar year; or
</P>
<P>(B) The reduced tax rate of $13.34 per proof gallon on the next 22.13 million proof gallons imported in the calendar year;
</P>
<P>(ii) For wine:
</P>
<P>(A) The tax credit of $1 per wine gallon on the first 30,000 wine gallons of wine imported in the calendar year (or credit of 6.2 cents per wine gallon for wine classified as “hard cider”);
</P>
<P>(B) The tax credit of 90 cents per wine gallon on the next 100,000 wine gallons imported in the calendar year (or credit of 5.6 cents per wine gallon for wine classified as “hard cider”); or
</P>
<P>(C) The tax credit of 53.5 cents per wine gallon on the next 620,000 wine gallons imported in the calendar year (or credit of 3.3 cents per wine gallon for wine classified as “hard cider”);
</P>
<P>(iii) For beer, the reduced tax rate of $16 per barrel on the first 6,000,000 barrels imported in the calendar year;
</P>
<P>(5) The quantity by proof gallons, wine gallons, or beer barrels of the reduced tax rate or tax credit being assigned; and
</P>
<P>(6) Any prescribed certifications attesting to the submitter's authority and the submitter's acknowledgement of statutory limitations on the quantities of assignments that may be made; and
</P>
<P>(7) Any additional information required by the appropriate TTB officer on a case-by-case basis to administer CBMA.
</P>
<P>(c) <I>Limitations</I>—(1) <I>General.</I> A foreign producer may not assign CBMA tax benefits on distilled spirits, wine, or beer unless it produced the product. The foreign producer may assign quantities that are limited to the number of proof gallons, wine gallons, and beer barrels in paragraph (b)(4) of this section, and also cannot exceed the quantities of the foreign producer's distilled spirits, wine, and beer that are reasonably projected to be imported into the United States during the specified calendar year by the importer receiving the assignment. 
</P>
<P>(2) <I>Controlled group rules.</I> Foreign and/or domestic producers under common ownership are grouped together when applying the quantity limitations in paragraph (c)(1) of this section. The quantity limitations apply to:
</P>
<P>(i) Foreign and/or domestic producers in a “parent-subsidiary controlled group,” as defined in 26 U.S.C. 1563 and as modified by 26 U.S.C. 5051(5)(A)-(B);
</P>
<P>(ii) Foreign and/or domestic producers in a “brother-sister controlled group,” as defined in 26 U.S.C. 1563 and as modified by 26 U.S.C. 5051(5)(A)-(B);
</P>
<P>(iii) Foreign and/or domestic producers in a “combined group,” as defined in 26 U.S.C. 1563 and as modified by 26 U.S.C. 5051(5)(A)-(B);
</P>
<P>(iv) Shared ownership structures similar to those described in paragraphs (c)(2)(i) through (iii) of this section, but where one or more producers under common ownership is not a corporation.
</P>
<P>(d) <I>Timing.</I> Assignments of CBMA tax benefits may be submitted to TTB beginning no earlier than October 1st of the calendar year prior to the year for which the CBMA tax benefits are to be assigned. Assignments of CBMA tax benefits must be submitted on or before March 31 of the calendar year following the calendar year for which the CBMA tax benefits are assigned.
</P>
<P>(e) <I>Changes to assignments.</I> Once made, a foreign producer may not revoke or reduce an assignment of CBMA tax benefits unless the assignee importer has rejected the assignment.
</P>
<P>(f) <I>Electronic registration required.</I> The foreign producer must submit the information required by paragraph (b) of this section electronically using the format provided by TTB.


</P>
<CITA TYPE="N">[T.D. TTB-186, 87 FR 58032, Sept. 23, 2022, as amended by T.D. TTB-186, 90 FR 45333, Sept. 22, 2025]






</CITA>
</DIV8>


<DIV8 N="§ 27.264" NODE="27:1.0.1.1.22.14.463.8" TYPE="SECTION">
<HEAD>§ 27.264   CBMA import refund claim submission.</HEAD>
<P>(a) <I>General.</I> An importer who has elected to receive an assignment of CBMA tax benefits from a foreign producer may file a claim in accordance with this section for a partial refund of the tax paid to U.S. Customs and Border Protection (CBP) on alcohol produced by the assigning foreign producer and imported into the United States by that importer. Refunds are to be determined no more frequently than quarterly. The amount of refund is calculated as provided at 26 U.S.C. 5001(c)(4)(B) for distilled spirits, 5041(c)(7)(B) for wine, and 5051(a)(6)(B) for beer, on such products entered for consumption within the calendar quarter and for which the importer has received an assignment of CBMA tax benefits and paid to CBP the tax determined on such products.
</P>
<P>(b) <I>Election to receive CBMA tax benefits.</I> An importer who has been assigned CBMA tax benefits by a foreign producer is presumed to have elected to receive such assignment unless and until the importer rejects the assignment through the online system prior to filing a claim for a refund based on that assignment.
</P>
<P>(c) <I>Information required at entry summary.</I> To be eligible for a refund described in paragraph (a) of this section, the importer must submit electronically the information required by § 27.48(a)(2) for distilled spirits, wines, and beer imported into the United States subject to tax (in satisfaction of § 27.48(a)(2), an importer who does not have and is not required to obtain an FAA Act basic permit must instead submit its TTB-assigned reference number obtained under § 27.266). The importer must also indicate its intent to claim a refund on the entry summaries of the consumption entries for the alcohol subject to the prospective claim, either at the time of entry summary or through post-summary correction. These entry summaries must include the following information for each line item to be included in a claim for refund, in the electronic format prescribed by CBP:
</P>
<P>(1) The TTB-issued Foreign Producer ID of the foreign producer who assigned CBMA tax benefits to the importer;
</P>
<P>(2) The name of the foreign producer who assigned CBMA tax benefits to the importer;
</P>
<P>(3) A statement of whether the importer is using an eligible flavor content credit pursuant to §§ 27.76 and 27.77; and
</P>
<P>(4) An indicator or set of indicators specifying the particular CBMA reduced tax rate or tax credit assigned by the foreign producer of the alcohol.
</P>
<P>(d) <I>Information required in claim submission.</I> To submit a claim for a refund described in paragraph (a) of this section, the importer must submit and/or verify, as appropriate, within the CBMA importer refund claims system the following information for each consumption entry line item to be included in the claim:
</P>
<P>(1) The date of the entry for consumption;
</P>
<P>(2) The year of importation, if different than the year of the entry for consumption;
</P>
<P>(3) The entry summary number and the entry summary line number;
</P>
<P>(4) The particular CBMA reduced tax rate or tax credit assigned by the foreign producer of the alcohol;
</P>
<P>(5) The quantity of proof gallons, wine gallons, or beer barrels entered for consumption subject to the rate or credit identified in paragraph (d)(4) of this section;
</P>
<P>(6) The TTB-issued Foreign Producer ID of the foreign producer who assigned CBMA tax benefits to the importer;
</P>
<P>(7) The amount of tax determined and paid by the importer;
</P>
<P>(8) The amount of the refund sought by the importer;
</P>
<P>(9) Information allowing the appropriate TTB officer to arrange payment to the importer of the refund;
</P>
<P>(10) Any prescribed certifications attesting to submitter's authority and the truthfulness of the information submitted; and
</P>
<P>(11) Any additional information, as needed by TTB on a case-by-case basis, to administer CBMA.
</P>
<P>(e) <I>Timing of claim submission.</I> Claims under this section may be submitted only after the end of the calendar quarter in which the entries for consumption were filed. The calendar quarters end on March 31, June 30, September 31, and December 31. Claims must be filed within the limitations period set forth at 26 U.S.C. 6511.
</P>
<P>(f) <I>Authorization.</I> Each person authorized to sign or act on behalf of the importer must be authorized pursuant to a duly executed power of attorney. TTB may collect additional information from the authorized person, as needed, to verify their identity. Such information may include identifying numbers (<I>e.g.,</I> Social Security Number) as provided in 26 U.S.C. 6109.
</P>
<P>(g) <I>Electronic filing required.</I> To be eligible for a refund under this section, an importer must submit the information required by paragraphs (c) and (d) of this section electronically in the formats prescribed by CBP and TTB, respectively.


</P>
<CITA TYPE="N">[20 FR 3561, May 21, 1955, as amended by T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 27.266" NODE="27:1.0.1.1.22.14.463.9" TYPE="SECTION">
<HEAD>§ 27.266   Importer reference number.</HEAD>
<P>An importer who does not have and is not required to obtain an FAA Act basic permit must request and receive a reference number from the appropriate TTB officer before receiving assignments of CBMA tax benefits from foreign producers under § 27.262. The importer must provide this reference number to any foreign producers that will assign CBMA tax benefits to the importer.




</P>
</DIV8>


<DIV8 N="§ 27.268" NODE="27:1.0.1.1.22.14.463.10" TYPE="SECTION">
<HEAD>§ 27.268   Revocation of eligibility for CBMA tax benefits.</HEAD>
<P>(a) <I>Revocation of foreign producer's eligibility.</I> A foreign producer who provides erroneous or fraudulent information that the appropriate TTB officer determines is material to the eligibility of the foreign producer to assign CBMA tax benefits under § 27.262 may have such eligibility revoked, for a period not to exceed three calendar years following the year of revocation, under the procedures set forth in paragraphs (b) through (e) of this section. If the foreign producer has previously had its eligibility revoked under this section, any subsequent revocation may instead be permanent. In any case where a criminal conviction results from the foreign producer's providing of erroneous or fraudulent information as described above, eligibility will be permanently revoked.
</P>
<P>(b) <I>Notice of contemplated revocation.</I> Where the appropriate TTB officer has reason to believe that a foreign producer, including anyone acting on behalf of a foreign producer, has provided erroneous or fraudulent information as described in paragraph (a) of this section, such officer will provide a written notice of contemplated revocation to the foreign producer. Such notice will set forth the facts and analysis supporting the contemplated revocation, as well as the period of contemplated revocation. Written notice will be provided electronically to persons authorized to act on behalf of the foreign producer within the online foreign producer registration and assignment system as provided in § 27.260.
</P>
<P>(c) <I>Response to contemplated revocation.</I> A foreign producer in receipt of a notice of contemplated revocation, or its representative, may submit a written response to the appropriate TTB officer explaining why the foreign producer believes the information at issue was not erroneous or fraudulent, or why such information is not material to the foreign producer qualifying for CBMA tax benefits. This response must be submitted within 45 days of receipt of the written notice of contemplated revocation and must be submitted electronically through means specified in such notice. Any representative of the foreign producer in these proceedings must be authorized by the foreign producer pursuant to a duly executed power of attorney or other document deemed acceptable to the appropriate TTB officer. If the foreign producer does not submit a response within 45 days, the appropriate TTB officer will issue an order of revocation as set forth in paragraph (d) of this section.
</P>
<P>(d) <I>Revocation determination.</I> Following receipt of a foreign producer's response to a contemplated revocation, the appropriate TTB officer will consider the arguments raised in the response and issue an order either dismissing the contemplated revocation or imposing a revocation as authorized under paragraph (a) of this section. Any order imposing revocation will set forth the facts and analysis supporting the revocation, taking into consideration any response provided by the foreign producer under paragraph (c) of this section. The order will be provided electronically to the foreign producer or the foreign producer's representative in the matter.
</P>
<P>(e) <I>Review</I>—(1) <I>Appeal.</I> A foreign producer may appeal an order of revocation issued under paragraph (d) of this section by submitting a written appeal to the appropriate TTB officer within 45 days of receipt of such order. The appeal must explain why the foreign producer believes its revocation is in error, supported by facts and analysis. The appeal must be submitted electronically through the means specified in the order of revocation. The appropriate TTB officer will issue a final decision by notifying the foreign producer within 90 days of receipt of the appeal whether the appeal is granted or denied, and the reasons for the determination. The appropriate TTB officer may extend this period of time once by an additional 90 days if the appropriate TTB officer requires additional time to consider the issues presented by an appeal and must notify the foreign producer of the extension within the initial 90-day period. If the appropriate TTB officer fails to issue a decision granting or denying the appeal within the applicable deadline, the appeal is denied and such denial will be considered a final decision.
</P>
<P>(2) <I>Judicial review.</I> A final decision from the appropriate TTB officer following appeal is required prior to application to the Federal courts for review of any order of revocation.
</P>
<P>(f) <I>Notice to affected importers.</I> In any instance where an order imposing revocation of a foreign producer's eligibility for CBMA tax benefits is issued under paragraph (d) of this section, the appropriate TTB officer will notify any importer having an assignment of CBMA tax benefits from that foreign producer of the revocation. In the event that the revocation is appealed and the appeal is granted pursuant to paragraph (e) of this section, the appropriate TTB officer will notify any importer having an assignment from that foreign producer of the dismissal of such revocation.








</P>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="28" NODE="27:1.0.1.1.23" TYPE="PART">
<HEAD>PART 28—EXPORTATION OF ALCOHOL
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 5007, 5008, 5041, 5051, 5054, 5061, 5121, 5122, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6109, 6302, 7805; 27 U.S.C. 203, 205; 44 U.S.C. 3504(h).
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>25 FR 5734, June 23, 1960, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 28 appear by T.D. ATF-477, 67 FR 18087 through 18090, Apr. 15, 2002.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.23.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 28.1" NODE="27:1.0.1.1.23.1.493.1" TYPE="SECTION">
<HEAD>§ 28.1   General.</HEAD>
<P>The regulations in this part relate to exportation, lading for use on vessels and aircraft, and the transfer to a foreign-trade zone or a manufacturing bonded warehouse, class 6, of distilled spirits (including specially denatured spirits), beer, and wine, and in the case of distilled spirits and wine only, transfer to a customs bonded warehouse as provided for in 26 U.S.C. 5066 and 5362, whether without payment of tax, free of tax, or with benefit of drawback, and includes requirements with respect to removal, shipment, lading, deposit, evidence of exportation, losses, claims, and bonds.
</P>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39814, Aug. 5, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 28.2" NODE="27:1.0.1.1.23.1.493.2" TYPE="SECTION">
<HEAD>§ 28.2   Forms prescribed.</HEAD>
<P>(a) The Appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981, as amended by T.D. ATF-249, 52 FR 5963, Feb. 27, 1987; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. ATF-477, 67 FR 18087, Apr. 15, 2002; T.D. TTB-8, 69 FR 3831, Jan. 27, 2004; T.D. TTB-91, 76 FR 5479, Feb. 1, 2011; T.D. TTB-196, 89 FR 87945, Nov. 6, 2024] 


</CITA>
</DIV8>


<DIV8 N="§ 28.3" NODE="27:1.0.1.1.23.1.493.3" TYPE="SECTION">
<HEAD>§ 28.3   Related regulations.</HEAD>
<P>Regulations relating to this part are listed below:
</P>
<EXTRACT>
<FP-1>19 CFR Chapter I—U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury
</FP-1>
<FP-1>27 CFR Part 1—Basic Permit Requirements Under the Federal Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits
</FP-1>
<FP-1>27 CFR Part 4—Labeling and Advertising of Wine
</FP-1>
<FP-1>27 CFR Part 19—Distilled Spirits Plants
</FP-1>
<FP-1>27 CFR Part 21—Formulas for Denatured Alcohol and Rum
</FP-1>
<FP-1>27 CFR Part 24—Wine
</FP-1>
<FP-1>27 CFR Part 25—Beer
</FP-1>
<FP-1>27 CFR Part 27—Importation of Distilled Spirits, Wines, and Beer
</FP-1>
<FP-1>27 CFR Part 30—Gauging Manual
</FP-1>
<FP-1>27 CFR Part 31—Alcohol Beverage Dealers
</FP-1>
<FP-1>31 CFR Part 225—Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties</FP-1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986, as amended by T.D. ATF-299, 55 FR 25033, June 19, 1990; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005; T.D. TTB-91, 76 FR 5479, Feb. 1, 2011; T.D. TTB-146, 82 FR 1135, Jan. 4, 2017; T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 28.4" NODE="27:1.0.1.1.23.1.493.4" TYPE="SECTION">
<HEAD>§ 28.4   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.28, Delegation of the Administrator's Authorities in 27 CFR Part 28, Exportation of Alcohol. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16946, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87945, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.23.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 28.11" NODE="27:1.0.1.1.23.2.493.1" TYPE="SECTION">
<HEAD>§ 28.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.28, Delegation of the Administrator's Authorities in 27 CFR Part 28, Exportation of Alcohol.
</P>
<P><I>Beer.</I> Beer, ale, porter, stout, and other similar fermented beverages (including sake or similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute therefor.
</P>
<P><I>Bonded premises—distilled spirits plant.</I> The premises of a distilled spirits plant, or part thereof, on which distilled spirits operations defined in 26 U.S.C. 5002 are authorized to be conducted. This term includes premises described in the preceding sentence even if the distilled spirits plant proprietor, as authorized under the exemption set forth in § 19.151(d) of this chapter, has not provided a bond for the premises.
</P>
<P><I>Bonded wine cellar.</I> Premises established under part 24 of this chapter for the production, blending, cellar treatment, storage, bottling, packaging, or repackaging of untaxpaid wine. This term includes premises described in the preceding sentences even if the proprietor, as authorized under the exemption set forth in § 24.146(d), has not provided a bond for the premises.
</P>
<P><I>Brewer.</I> A proprietor of a brewery.
</P>
<P><I>Brewery.</I> Premises established under part 25 of this chapter for the production of beer.
</P>
<P><I>Bulk container.</I> any container having a capacity of more than 1 gallon.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Container.</I> Any receptacle, vessel, or any form of package, bottle, can, tank, or pipeline used, or capable of being used, for holding, storing, transferring, or conveying liquors.
</P>
<P><I>Customs bonded warehouse.</I> A customs bonded warehouse, class 2, 3, or 8, established under the provisions of the customs regulations (19 CFR chapter I).


</P>
<P><I>Customs officer.</I> An officer of U.S. Customs and Border Protection (CBP) or any agent or other person authorized by law to perform the duties of such an officer.
</P>
<P><I>Delegate.</I> Any officer, employee, or agency of the Department of the Treasury authorized by the Secretary of the Treasury directly, or indirectly by one or more redelegations of authority, to perform the function mentioned or described in the context.
</P>
<P><I>District director of customs.</I> The district director of customs at a headquarters port of the district (except the district of New York, NY), the area directors of customs in the district of New York, NY, and the port director at a port not designated as a headquarters port. 
</P>
<P><I>Distilled spirits or spirits.</I> That substance known as ethyl alcohol, ethanol, or spirits of wine, in any form (including all dilutions and mixtures thereof, from whatever source or by whatever process produced) but not denatured spirits. 
</P>
<P><I>Distilled spirits plant.</I> An establishment qualified under the provisions of part 19 of this chapter for the production, warehousing, or processing of spirits, or for authorized combinations of such operations.
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the return, claim, form, or other document or, where no form of declaration is prescribed, with the declaration:
</P>
<EXTRACT>
<P>I declare under the penalties of perjury that this __________ (insert type of document such as statement, report, certificate, application, claim, or other document), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete.</P></EXTRACT>
<P><I>Exportation.</I> A severance of goods from the mass of things belonging to the United States with the intention of uniting them to the mass of things belonging to some foreign country and shall include shipments to any possession of the United States. The export character of any shipment shall be determined by the intention with which it is made, and it assumes an export character only when destined for use in a foreign country or in a possession of the United States. For the purposes of this part, shipments to the Commonwealth of Puerto Rico, to the territories of the Virgin Islands, American Samoa and Guam, and to the Panama Canal Zone shall also be treated as exportations.
</P>
<P><I>Foreign-trade zone or zone.</I> A foreign-trade zone established and operated pursuant to the Act of June 18, 1934, as amended.
</P>
<P><I>Gallon or wine gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>Liquor.</I> Distilled spirits, wines, and/or beer.
</P>
<P><I>Liter.</I> A metric unit of capacity equal to 1,000 cubic centimeters of alcoholic beverage, and equivalent to 33.814 fluid ounces. A liter is divided into 1,000 milliliters. Milliliter or milliliters may be abbreviated as “ml”.
</P>
<P><I>Manufacturing bonded warehouse.</I> A manufacturing bonded warehouse, class six, established under the provisions of the customs regulations (19 CFR chapter I).
</P>
<P><I>Package.</I> Any cask, keg, barrel, drum, or similar portable container.
</P>
<P><I>Person.</I> An individual, a trust, an estate, a partnership, an association, a company, or a corporation.
</P>
<P><I>Proof.</I> The ethyl alcohol content of a liquid at 60 degrees Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
</P>
<P><I>Proof gallon.</I> A gallon at 60 degrees Fahrenheit which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as unity, or the alcoholic equivalent thereof.
</P>
<P><I>Proprietor.</I> The person who operates the brewery, distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or manufacturing bonded warehouse, as the case may be, referred to in this part.
</P>
<P><I>Secretary of the Treasury</I> or <I>Secretary.</I> The Secretary of the Treasury or a delegate of the Secretary.
</P>
<P><I>Specially denatured spirits.</I> Alcohol or rum, as defined in part 21 of this chapter, denatured pursuant to the formulas authorized in part 21 for specially denatured alcohol or rum.
</P>
<P><I>Tank truck.</I> A tank-equipped semi-trailer, trailer, or truck.
</P>
<P><I>Tax.</I> The distilled spirits tax, the beer tax, or the applicable wine tax, as the case may be, imposed by 26 U.S.C. chapter 51.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>Wine.</I> All kinds and types of wine having not in excess of 24 percent of alcohol by volume.
</P>
<P><I>Zone operator.</I> The person to which the privilege of establishing, operating, and maintaining a foreign-trade zone has been granted by the Foreign-Trade Zones Board created by the Act of June 18, 1934, as amended.


</P>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13552, Mar. 31, 1978, as amended by T.D. ATF-51, 43 FR 24243, June 2, 1978; 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 FR 71720, Dec. 11, 1979; T.D. ATF-199, 50 FR 9201, Mar. 6, 1985; T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; T.D. ATF-477, 67 FR 18088, Apr. 15, 2002; T.D. TTB-8, 69 FR 3831, Jan. 27, 2004; T.D. TTB-146, 82 FR 1135, Jan. 4, 2017; T.D. TTB-196, 89 FR 87944, Nov. 6, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.23.3" TYPE="SUBPART">
<HEAD>Subpart C—Miscellaneous Provisions</HEAD>


<DIV7 N="493" NODE="27:1.0.1.1.23.3.493" TYPE="SUBJGRP">
<HEAD>Withdrawal or Lading for Use on Certain Vessels and Aircraft</HEAD>


<DIV8 N="§ 28.20" NODE="27:1.0.1.1.23.3.493.1" TYPE="SECTION">
<HEAD>§ 28.20   Alternate methods or procedures; and emergency variations from requirements.</HEAD>
<P>(a) <I>Alternate methods or procedures</I>—(1) <I>Application.</I> An exporter, after receiving approval from the appropriate TTB officer, may use an alternate method or procedure (including alternate construction or equipment) in lieu of a method or procedure prescribed by this part. An exporter wishing to use an alternate method or procedure may apply to the appropriate TTB officer. The exporter shall describe the proposed alternate method or procedure and shall set forth the reasons for its use.
</P>
<P>(2) <I>Approval by appropriate TTB officer.</I> The appropriate TTB officer may approve the use of an alternate method or procedure if:
</P>
<P>(i) The applicant shows good cause for its use;
</P>
<P>(ii) It is consistent with the purpose and effect of the procedure prescribed by this part, and provides equal security to the revenue;
</P>
<P>(iii) It is not contrary to law; and
</P>
<P>(iv) It will not cause an increase in cost to the Government and will not hinder the effective administration of this part.
</P>
<P>(3) <I>Exceptions.</I> The appropriate TTB officer will not authorize an alternate method or procedure relating to the giving of a bond or the payment of tax.
</P>
<P>(4) <I>Conditions of approval.</I> An exporter may not employ an alternate method or procedure until the appropriate TTB officer has approved its use. The exporter shall, during the terms of the authorization of an alternate method or procedure, comply with the terms of the approved application.
</P>
<P>(b) <I>Emergency variations from requirements</I>—(1) <I>Application.</I> When an emergency exists, an exporter may apply to the appropriate TTB officer for a variation from the requirements of this part relating to construction, equipment, and methods of operation. The exporter shall describe the proposed variation and set forth the reasons for using it.
</P>
<P>(2) <I>Approval by appropriate TTB officer.</I> The appropriate TTB officer may approve an emergency variation from requirements if:
</P>
<P>(i) An emergency exists;
</P>
<P>(ii) The variation from the requirements is necessary;
</P>
<P>(iii) It will afford the same security and protection to the revenue as intended by the specific regulations;
</P>
<P>(iv) It will not hinder the effective administration of this part; and
</P>
<P>(v) It is not contrary to law.
</P>
<P>(3) <I>Conditions of approval.</I> An exporter may not employ an emergency variation from the requirements until the appropriate TTB officer has approved its use. Approval of variations from requirements are conditioned upon compliance with the conditions and limitations set forth in the approval.
</P>
<P>(4) <I>Automatic termination of approval.</I> If the exporter fails to comply in good faith with the procedures, conditions or limitations set forth in the approval, authority for the variation from requirements is automatically terminated and the exporter is required to comply with prescribed requirements of regulations from which those variations were authorized.
</P>
<P>(c) <I>Withdrawal of approval.</I> If the appropriate TTB officer finds the revenue is jeopardized or the effective administration of this part is hindered by the approval, such TTB officer may withdraw approval for an alternate method or procedure or for an emergency variation from requirements, approved under paragraph (a) or (b) of this section.
</P>
<SECAUTH TYPE="N">(Act of August 16, 1954, Ch. 736, 68A Stat. 917 (26 U.S.C. 7805); sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9201, Mar. 6, 1985, as amended by T.D. ATF-477, 67 FR 18088, Apr. 15, 2002; T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.21" NODE="27:1.0.1.1.23.3.493.2" TYPE="SECTION">
<HEAD>§ 28.21   General.</HEAD>
<P>Liquors may be withdrawn without payment of tax for lading, and liquors on which the tax has been paid or determined may be laden with benefit of drawback of tax, subject to this part, for use on vessels and aircraft as follows:
</P>
<P>(a) Vessels or aircraft operated by the United States;
</P>
<P>(b) Vessels of the United States employed in the fisheries as provided in § 28.22 or in the whaling business, or actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States;
</P>
<P>(c) Aircraft registered in the United States and actually engaged in foreign trade or trade between the United States and any of its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States;
</P>
<P>(d) Vessels of war of any foreign nation;
</P>
<P>(e) Foreign vessels employed in the fisheries as provided in § 28.22 or in the whaling business, or actually engaged in foreign trade or trade between the United States and any of its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States; where such trade by foreign vessels is permitted; or
</P>
<P>(f) Aircraft registered in any foreign country and actually engaged in foreign trade or trade between the United States and any of its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States, where trade by foreign aircraft is permitted, and where the Secretary of the Treasury shall have been advised by the Secretary of Commerce that he or she has found such foreign country allows, or will allow, substantially reciprocal privileges in respect to aircraft registered in the United States.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended; 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[T.D. 6588, 27 FR 773, Jan. 26, 1962. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004; T.D. TTB-196, 89 FR 87945, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 28.22" NODE="27:1.0.1.1.23.3.493.3" TYPE="SECTION">
<HEAD>§ 28.22   Vessels employed in the fisheries.</HEAD>
<P>Liquors may be withdrawn or laden under the provisions of paragraphs (b) and (e) of § 28.21 relating to vessels employed in the fisheries, only for use on vessels of the United States documented to engage in the fisheries and foreign fishing vessels of 5 net tons or over if the district director of customs is satisfied by reason of the quantity requested in the light of (a) whether the vessel is employed in substantially continuous fishing activities, and (b) the vessel's complement, that none of the liquors to be withdrawn or laden are intended to be removed from the vessel in, or otherwise returned to, the United States. Such withdrawal or lading shall be conditioned upon compliance with the applicable provisions of this part. Lading of such liquors for use on such vessels shall be subject to approval by the district director of customs of a special written application by the withdrawer or the vessel's master on customs Form 5125 (in duplicate) and a statement by the withdrawer in his application or notice on the required TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, that the liquors are to be laden for use as supplies on a vessel employed in the fisheries. The original application on customs Form 5125, after approval, shall be stamped with the serial number of the TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, and the date thereof, and shall be returned by the district director of customs to the withdrawer or vessel's master for use as prescribed below. Approval of each such application shall be subject to the condition that the original shall be presented thereafter by the withdrawer or the vessel's master to the district director of customs within 24 hours (excluding Saturday, Sunday, and holidays) after each subsequent arrival of the vessel at a customs port or station and that an accounting shall be made at the time of such presentation of the disposition of the liquors until the district director of customs is satisfied that they have been consumed on board, or landed under customs supervision, and takes up the authorization. The approval of customs Form 5125 shall be subject to the further condition that any such liquors remaining on board while the vessel is in port shall be safeguarded in the manner and to such extent as the director of the port or place of arrival shall deem necessary. When such liquors have been accounted for to the satisfaction of the district director of customs, he shall execute his certificate of lading and use on both copies of the TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, and forward the original of the form according to its instructions. In the event of a failure on the part of the withdrawer or the master of the vessel to comply with the conditions of this section or upon receipt of evidence that the liquors were not lawfully used as supplies on the vessel, the district director of customs shall advise the appropriate TTB officer of all the facts in the case for determination of any liability incurred. In the case of liquors withdrawn without payment of tax, assessment of tax liability found to have been incurred shall be made against the principal on the bond or, if no bond is required, against the person liable for the tax. In the case of taxpaid or tax determined liquors, the appropriate TTB officer shall determine as to whether to make demand upon the principal and the surety on the bond or to disallow the claim as the case may be.
</P>
<NOTE>
<HED>Note:</HED>
<P>As used in this section, the word “withdrawer” shall mean the person executing the application or notice, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be.</P></NOTE>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 28.22, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 28.23" NODE="27:1.0.1.1.23.3.493.4" TYPE="SECTION">
<HEAD>§ 28.23   Reciprocating foreign countries.</HEAD>
<P>The appropriate TTB officer may approve applications relating to the withdrawal or lading of liquors for use on aircraft of those foreign countries which will allow, to aircraft registered in the United States and engaged in foreign trade, privileges substantially reciprocal to the privileges allowed herein to aircraft of a foreign country. Where application is made to withdraw or lade liquors for use on aircraft of other countries, which it is claimed reciprocate similar privileges to aircraft of the United States, the applicant must first establish the right of such withdrawal or lading. In appropriate cases, the applicant should request the Secretary of Commerce to find and advise the Secretary of the Treasury that such foreign country or countries allow, or will allow, substantially reciprocal privileges to aircraft of the United States.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended; 19 U.S.C. 1309)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="494" NODE="27:1.0.1.1.23.3.494" TYPE="SUBJGRP">
<HEAD>Manufacturing Bonded Warehouses</HEAD>


<DIV8 N="§ 28.25" NODE="27:1.0.1.1.23.3.494.5" TYPE="SECTION">
<HEAD>§ 28.25   General.</HEAD>
<P>The proprietor of a duly constituted manufacturing bonded warehouse, established in accordance with law and the regulations in 19 CFR chapter I, may withdraw distilled spirits or wine from any distilled spirits plant or bonded wine cellar, as the case may be, without payment of tax, for use in the manufacture of products for export, or for shipment in bond to Puerto Rico, or for use by foreign governments, organizations, and individuals, as authorized by 26 U.S.C. 5066, 5214(a)(6) and 5362; and 19 U.S.C. 1311. The proprietor of the manufacturing bonded warehouse shall furnish bond in accordance with the provisions of § 28.63 or § 28.64.
</P>
<SECAUTH TYPE="N">(Sec. 311, Tariff Act of 1930, 46 Stat. 691, as amended (19 U.S.C. 1311); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1380, as amended (26 U.S.C. 5214, 5362); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39814, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004] 


</CITA>
</DIV8>

</DIV7>


<DIV7 N="495" NODE="27:1.0.1.1.23.3.495" TYPE="SUBJGRP">
<HEAD>Customs Bonded Warehouses</HEAD>


<DIV8 N="§ 28.26" NODE="27:1.0.1.1.23.3.495.6" TYPE="SECTION">
<HEAD>§ 28.26   Entry of distilled spirits into customs bonded warehouses.</HEAD>
<P>(a) <I>Distilled spirits withdrawn without payment of tax.</I> (1) Bottled distilled spirits may, subject to this part, be withdrawn from bonded premises for transfer to customs bonded warehouses in which imported distilled spirits are permitted to be stored in bond for entry pending withdrawal as provided in § 28.27. Withdrawals from bonded premises under the provisions of this paragraph shall be treated as withdrawals for exportation under the provisions of 26 U.S.C. 5214(a)(4).
</P>
<P>(2) Distilled spirits may, subject to this part, be withdrawn from bonded premises for transfer (for the purpose of storage pending exportation) to any customs bonded warehouse from which distilled spirits may be exported. These withdrawals shall be treated as withdrawals for exportation under the provisions of 26 U.S.C. 5214(a)(9).
</P>
<P>(b) <I>Bottled distilled spirits eligible for export with benefit of drawback.</I> Bottled distilled spirits eligible for export with benefit of drawback may, subject to this part, be transferred to customs bonded warehouses in which imported distilled spirits are permitted to be stored, and entered pending withdrawal as provided in § 28.28, as if such spirits were for exportation.
</P>
<P>(c) <I>Time deemed exported.</I> For the purpose of this part, distilled spirits entered into a customs bonded warehouse as provided in this section shall be deemed exported at the time so entered.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1381, 1382, (26 U.S.C. 5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066, 5370, 5371; 26 U.S.C. 7805))
</SECAUTH>
<CITA TYPE="N">[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-206, 50 FR 23956, June 7, 1985; T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.27" NODE="27:1.0.1.1.23.3.495.7" TYPE="SECTION">
<HEAD>§ 28.27   Entry of wine into customs bonded warehouses.</HEAD>
<P>Upon filing of the application or notice prescribed by § 28.122(a), wine may be withdrawn from a bonded wine cellar for transfer to any customs bonded warehouse for entry pending withdrawal as provided in § 28.28. Such withdrawal from bonded wine cellars is governed by the provisions of subpart F of this part. Wine so transferred to customs bonded warehouses shall be entered, stored, and accounted for in such warehouses under the appropriate provisions of 19 CFR chapter I.
</P>
<SECAUTH TYPE="N">(Sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.28" NODE="27:1.0.1.1.23.3.495.8" TYPE="SECTION">
<HEAD>§ 28.28   Withdrawal of wine and distilled spirits from customs bonded warehouses.</HEAD>
<P>Wine and bottled distilled spirits entered into customs bonded warehouses as provided in § 28.26 (a) or (b) and § 28.27 may, under the appropriate provisions of 19 CFR chapter I, be withdrawn from such warehouses for consumption in the United States by and for the official or family use of foreign governments, organizations, and individuals who are entitled to withdraw imported wine and distilled spirits from a warehouse free of tax. Distilled spirits and wine entered into customs bonded warehouses under the provisions of §§ 28.26(a)(2) and 28.27 may be withdrawn for exportation, subject to the provisions of 19 CFR chapter I. Distilled spirits and wine transferred to customs bonded warehouses shall be entered into, stored and accounted for in, and withdrawn from, such warehouses under the appropriate provisions of 19 CFR chapter I. Wine and bottled distilled spirits, originally transferred to customs bonded warehouses for the purpose of withdrawal by foreign embassies, legations, etc., as authorized by law, may be withdrawn from such warehouses for domestic use, in which event they shall be treated as American goods exported and returned.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066); sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="496" NODE="27:1.0.1.1.23.3.496" TYPE="SUBJGRP">
<HEAD>Foreign-Trade Zones</HEAD>


<DIV8 N="§ 28.30" NODE="27:1.0.1.1.23.3.496.9" TYPE="SECTION">
<HEAD>§ 28.30   Export status.</HEAD>
<P>(a) Distilled spirits and wines manufactured, produced, bottled in bottles packed in containers, or packaged in casks or other bulk containers in the United States, and beer brewed or produced in the United States may be transferred to a foreign-trade zone for the sole purpose of exportation, or storage pending exportation. Liquors deposited in a foreign-trade zone under this part solely for such purposes are considered to be exported. Export status is not acquired until application on Form 214 for admission of the liquors into the zone has been approved by the district director of customs under the appropriate provision of 19 CFR chapter I, and the required certification of deposit has been made on the TTB form prescribed in this part.
</P>
<P>(b) The provisions of subpart H of this part do not apply to specially denatured spirits transferred to a foreign-trade zone for use in the manufacture of articles pursuant to the provisions of 19 U.S.C. 81c(c). Transfer of domestic specially denatured spirits to a qualified user in a foreign-trade zone is made free of tax under the provisions of part 20 of this chapter. Such transfer does not place the domestic specially denatured spirits in an export status.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended (19 U.S.C. 81c))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-274, 53 FR 25157, July 5, 1988, as amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="497" NODE="27:1.0.1.1.23.3.497" TYPE="SUBJGRP">
<HEAD>Voluntary Destruction of Liquors After Receipt in a Foreign-Trade Zone</HEAD>


<DIV8 N="§ 28.35" NODE="27:1.0.1.1.23.3.497.10" TYPE="SECTION">
<HEAD>§ 28.35   General.</HEAD>
<P>Liquors may not, under the law, be transferred to a foreign-trade zone for the purpose of destruction. However, liquors transported to and deposited in a foreign-trade zone for exportation or for storage pending exportation may be destroyed under the supervision of the district director of customs, where it is shown to the satisfaction of the appropriate TTB officer that the liquors, after deposit in a zone, have become unmerchantable or unfit for export.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended; 19 U.S.C. 81c)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.36" NODE="27:1.0.1.1.23.3.497.11" TYPE="SECTION">
<HEAD>§ 28.36   Application.</HEAD>
<P>Liquors deposited in a foreign-trade zone from the United States which have become unmerchantable or unfit for export may be destroyed. The exporter shall prepare a letter application, in duplicate, and submit it to the appropriate TTB officer. The application shall identify the name and address of the exporter and contain the following information:
</P>
<P>(a) The kind and quantity of the liquor, the serial numbers, if any, of the containers thereof, and identification of the zone in which the liquor is stored;
</P>
<P>(b) The name and address of the producer bottler or packager of the liquor, and the name, registry number, if any, and location of the plant, warehouse or other establishment from which such liquors were withdrawn for transportation to and deposit in the foreign-trade zone;
</P>
<P>(c) The date, form, and serial number of the TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be; and, in the case of liquors on which drawback of internal revenue tax has been allowed, the TTB assigned claim number;
</P>
<P>(d) Whether the liquor has become unmerchantable or unfit for export after deposit in the zone, together with all the known facts relating thereto; and
</P>
<P>(e) Whether the unmerchantable or unfit liquor is covered by valid insurance in excess of the market value thereof, exclusive of tax. If the liquor is insured, the application shall show its market value, the amount and date of each and every policy of insurance, the name and location of the company by which each and every policy was issued, the name and address of the bona fide owner of the liquor, and to the best of the affiant's knowledge, whether any other person or party is indemnified against the loss of the liquor by reason of its spoilage or destruction.
</P>
<FP>Such application shall be signed by the exporter or his authorized agent and be executed under the penalties of perjury. The appropriate TTB officer may require any further evidence as is deemed necessary. The operator of the foreign-trade zone shall countersign the application or otherwise indicate thereon his knowledge of and concurrence in the application to destroy the liquor. The exporter shall file the application with the district director of customs in whose district the foreign-trade zone is located; at the same time the exporter shall likewise file Zone Form E in accordance with Customs Regulations (19 CFR chapter I). On receipt of the application the district director of customs shall determine the completeness thereof and shall report any facts relating to the condition of the liquor of which he may have knowledge. The original application shall be forwarded to the appropriate TTB officer and the district director of customs shall retain the copy for his files.
</FP>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 28.36, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 28.37" NODE="27:1.0.1.1.23.3.497.12" TYPE="SECTION">
<HEAD>§ 28.37   Action by appropriate TTB officer.</HEAD>
<P>The appropriate TTB officer shall carefully examine the application to see that all the required information has been furnished and shall cause an investigation to be made or require any additional evidence, including samples, to be submitted if necessary. If the appropriate TTB officer finds that the liquors were transported to and deposited in a foreign-trade zone in good faith for the purpose of exportation or storage pending exportation, and that the liquors, after deposit in the zone, have become unmerchantable or unfit for export, he may approve the application and authorize the destruction of the liquor described therein under the supervision of the district director of customs. On approval or disapproval of the application, the appropriate TTB officer shall advise the district director of customs of his action.
</P>
<CITA TYPE="N">[T.D. ATF-51,43 FR 24244, June 2, 1978, as amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.38" NODE="27:1.0.1.1.23.3.497.13" TYPE="SECTION">
<HEAD>§ 28.38   Action by district director of customs.</HEAD>
<P>On receipt of the appropriate TTB officer's authorization for destruction of the liquor, or his disapproval of the application for destruction, the district director of customs shall act upon the exporter's application on Zone Form E and dispose of it in accordance with the applicable provisions of Customs Regulations (19 CFR chapter I). Where the appropriate TTB officer has authorized the destruction of the liquor, such destruction shall be accomplished under customs supervision.
</P>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="498" NODE="27:1.0.1.1.23.3.498" TYPE="SUBJGRP">
<HEAD>Evidence of Exportation and Use</HEAD>


<DIV8 N="§ 28.40" NODE="27:1.0.1.1.23.3.498.14" TYPE="SECTION">
<HEAD>§ 28.40   Evidence of exportation: distilled spirits and wine.</HEAD>
<P>The exportation of any shipment of distilled spirits or wine may be evidenced by:
</P>
<P>(a) A copy of the export bill of lading (§ 28.250); or
</P>
<P>(b) A copy of the railway express receipt (§ 28.251); or
</P>
<P>(c) A copy of the air express receipt (§ 28.252); or
</P>
<P>(d) A copy of the through bill of lading where exportation is to a contiguous foreign country (§ 28.250); or
</P>
<P>(e) A certificate by the export carrier, as provided for in § 28.253.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.41" NODE="27:1.0.1.1.23.3.498.15" TYPE="SECTION">
<HEAD>§ 28.41   Evidence of lading for use on vessels or aircraft: distilled spirits and wine.</HEAD>
<P>The lading of distilled spirits or wine for use on vessels or aircraft may be evidenced by submission of a receipt procured under the provisions of § 28.268.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 201, Pub. L. 85-859; 72 Stat. 1362, as amended, 1380, as amended (26 U.S.C. 5214, 5362))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.42" NODE="27:1.0.1.1.23.3.498.16" TYPE="SECTION">
<HEAD>§ 28.42   Evidence of deposit.</HEAD>
<P>The deposit of distilled spirits in a customs bonded warehouse or distilled spirits and wines in a foreign-trade zone with benefit of drawback may be evidenced by a copy of the transportation bill of lading obtained under the provisions of § 28.250.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 84 Stat. 1965; 19 U.S.C. 81c, 26 U.S.C. 5066)
</SECAUTH>
<CITA TYPE="N">[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.43" NODE="27:1.0.1.1.23.3.498.17" TYPE="SECTION">
<HEAD>§ 28.43   Evidence of exportation and lading for use on vessels and aircraft: beer.</HEAD>
<P>(a) <I>Exportation.</I> The exportation of beer to a foreign country or possession will be fully evidenced by any of the following documents:
</P>
<P>(1) Customs certification of lading and clearance on Form 1582-B (5130.6) or Form 1689 (5130.12) under subpart M of this part; or
</P>
<P>(2) For shipment to the armed forces, certification by a military officer on Form 1582-B (5130.6) or Form 1689 (5130.12) under § 28.275; or
</P>
<P>(3) A bill of lading (§ 28.250), a railway express receipt (§ 28.251), or an air express or air freight bill of lading (§ 28.252), when such bills of lading or receipt show exportation to a foreign country or possession; or
</P>
<P>(4) A certificate issued by an export carrier under § 28.253 attesting to exportation to a foreign country or possession; or
</P>
<P>(5) A landing certificate issued by an official of the country or possession where the beer has actually landed; or
</P>
<P>(6) Any other evidence of exportation approved by the appropriate TTB officer.
</P>
<P>(b) <I>Use as supplies on vessels and aircraft.</I> The lading of beer for use on vessels or aircraft will be fully evidenced by:
</P>
<P>(1) For fishing vessels only, customs certification of lading and use on Form 1582-B (5130.6) or Form 1689 (5130.12) under § 28.23; or
</P>
<P>(2) Customs certification of lading on Form 1582-B (5130.6) or Form 1689 (5130.12) under §§ 28.264 or 28.282; or
</P>
<P>(3) Any other evidence of exportation approved by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended (26 U.S.C. 5053, 5055))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="499" NODE="27:1.0.1.1.23.3.499" TYPE="SUBJGRP">
<HEAD>Retention of Records</HEAD>


<DIV8 N="§ 28.45" NODE="27:1.0.1.1.23.3.499.18" TYPE="SECTION">
<HEAD>§ 28.45   Retention of records.</HEAD>
<P>File copies of forms required by this part to be retained by any proprietor or claimant, and all records, documents, or copies of records and documents supporting such forms, shall be preserved by such proprietor or claimant for a period of not less than two years, and during such period shall be available, during business hours, for inspection and the taking of abstracts therefrom by appropriate TTB officers.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0385)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1381, as amended, 1390, as amended, 1395, as amended (26 U.S.C. 5114, 5367, 5415, 5555); sec. 807, Pub. L. 96-39, 93 Stat. 283 (26 U.S.C. 5207))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="500" NODE="27:1.0.1.1.23.3.500" TYPE="SUBJGRP">
<HEAD>Penalties of Perjury</HEAD>


<DIV8 N="§ 28.48" NODE="27:1.0.1.1.23.3.500.19" TYPE="SECTION">
<HEAD>§ 28.48   Execution under penalties of perjury.</HEAD>
<P>When a return, form, or other document called for under this part is required by this part or in the instructions on or with the return, form, or other document to be executed under penalties of perjury, it shall be so executed, as defined in subpart B of this part, and shall be signed by the proprietor, or other duly authorized person.
</P>
<SECAUTH TYPE="N">(68A Stat. 749 (26 U.S.C. 6065))


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.23.4" TYPE="SUBPART">
<HEAD>Subpart D—Bonds and Consents of Surety</HEAD>


<DIV8 N="§ 28.51" NODE="27:1.0.1.1.23.4.501.1" TYPE="SECTION">
<HEAD>§ 28.51   General.</HEAD>
<P>(a) <I>Bond requirements.</I> Every person required by this part to file a bond or consent of surety must prepare and execute it on the prescribed form and file it in accordance with its instructions and the procedures of this part. The procedures in parts 19, 24 or 25 of this chapter govern bonds covering distilled spirits plants, bonded wine cellars and breweries, respectively.
</P>
<P>(b) <I>Exemption from bond requirements.</I> If a taxpayer described in this paragraph exports distilled spirits, wine, or beer for which a bond is otherwise required under this part, the taxpayer is not required to file a bond for the exportation if all the following are true:
</P>
<P>(1) In the case of exportation of distilled spirits or wine, the distilled spirits or wine is for nonindustrial use; and
</P>
<P>(2) The taxpayer:
</P>
<P>(i) Reasonably expects to be liable for not more than $50,000 in taxes described in 26 U.S.C. 5061(d)(4) during the current calendar year;
</P>
<P>(ii) Was liable for not more than $50,000 in such taxes in the preceding calendar year; and
</P>
<P>(iii) Pays such taxes on a deferred basis using a semimonthly, quarterly, or annual return period as described in 26 U.S.C. 5061(d).
</P>
<P>(c) <I>Definitions.</I> For purposes of paragraph (b) of this section, the following terms have the meanings indicated:
</P>
<P><I>Nonindustrial use.</I> The nonindustrial uses of distilled spirits and wine are defined in subpart D of part 1 of this chapter.
</P>
<P><I>Reasonably expects.</I> When used with reference to a taxpayer, <I>reasonably expects</I> means that there is no existing or anticipated circumstances known to the taxpayer (such as an increase in production capacity) that would cause the taxpayer's tax liability to exceed the prescribed limit.
</P>
<P><I>Taxpayer.</I> A <I>taxpayer</I> is an individual, corporation, partnership, or other entity that is assigned a single Employer Identification Number (EIN) as defined in 26 CFR 301.7701-12.
</P>
<CITA TYPE="N">[T.D. ATF-477, 67 FR 18089, Apr. 15, 2002, as amended by T.D. TTB-146. 82 FR 1135, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.52" NODE="27:1.0.1.1.23.4.501.2" TYPE="SECTION">
<HEAD>§ 28.52   Corporate surety.</HEAD>
<P>(a) Surety bonds required by this part may be given only with corporate sureties holding certificates of authority from, and subject to the limitations prescribed by, the Secretary as set forth in the current revision of Treasury Department Circular 570 (Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies).
</P>
<P>(b) Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).


</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981, as amended by T.D. TTB-146, 82 FR 1135, Jan. 4, 2017; T.D. TTB-196, 89 FR 87945, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 28.52a" NODE="27:1.0.1.1.23.4.501.3" TYPE="SECTION">
<HEAD>§ 28.52a   Filing of powers of attorney.</HEAD>
<P>Each bond, and each consent to changes in the terms of a bond, shall be accompanied by a power of attorney authorizing the agent or officer who executed the bond or consent to so act on behalf of the surety. The appropriate TTB officer who is authorized to approve the bond, may, when he deems it necessary, require additional evidence of the authority of the agent or officer to execute the bond or consent.
</P>
<SECAUTH TYPE="N">(61 Stat. 648; 6 U.S.C. 6, 7)
</SECAUTH>
<CITA TYPE="N">[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.52b" NODE="27:1.0.1.1.23.4.501.4" TYPE="SECTION">
<HEAD>§ 28.52b   Execution of powers of attorney.</HEAD>
<P>The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed original, it shall be accompanied by certification of its validity.
</P>
<SECAUTH TYPE="N">(61 Stat. 648; 6 U.S.C. 6, 7)
</SECAUTH>
<CITA TYPE="N">[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 28.53" NODE="27:1.0.1.1.23.4.501.5" TYPE="SECTION">
<HEAD>§ 28.53   Deposit of securities or cash (including cash equivalent) in lieu of corporate surety.</HEAD>
<P>(a) <I>Deposit of securities.</I> In lieu of corporate surety, the principal may pledge and deposit, as surety for his bond, securities which are transferable and are guaranteed as to both interest and principal by the United States, in accordance with the provisions of 31 CFR part 225.
</P>
<P>(b) <I>Deposit of cash (including cash equivalent).</I> In lieu of corporate surety, a person may file a bond that guarantees payment of the liability by submitting cash or its equivalent (including a money order, cashier's check, or personal check). Cash or its equivalent must be no less than the penal sums of the required bonds. Cash equivalents must be payable to the Alcohol and Tobacco Tax and Trade Bureau.
</P>
<SECAUTH TYPE="N">(61 Stat. 650; 6 U.S.C. 15)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. TTB-8, 69 FR 3834, Jan 27, 2004, and as amended by T.D. TTB-146, 82 FR 1135, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.54" NODE="27:1.0.1.1.23.4.501.6" TYPE="SECTION">
<HEAD>§ 28.54   Consents of surety.</HEAD>
<P>Consents of surety to changes in the terms of bonds shall be executed on TTB Form 5000.18 by the principal and by the surety with the same formality and proof of authority as is required for the execution of bonds.
</P>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. TTB-8, 69 FR 3834, Jan 27, 2004, and as amended by T.D. TTB-146, 82 FR 1135, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.55" NODE="27:1.0.1.1.23.4.501.7" TYPE="SECTION">
<HEAD>§ 28.55   Authority to approve bonds and consents of surety.</HEAD>
<P>Appropriate TTB officers are authorized to approve all bonds and consents of surety required by this part.
</P>
<CITA TYPE="N">[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.56" NODE="27:1.0.1.1.23.4.501.8" TYPE="SECTION">
<HEAD>§ 28.56   Disapproval of bonds or consents of surety.</HEAD>
<P>The appropriate TTB officer may disapprove any bond prescribed by this part, or any consent of surety submitted in respect thereto, if the principal or any person owning, controlling, or actively participating in the management of the business of the principal shall have been previously convicted, in a court of competent jurisdiction, of:
</P>
<P>(a) Any fraudulent noncompliance with any provision of any law of the United States, if such provision related to internal revenue or customs taxation of spirits, wines, or beer, or if such offense shall have been compromised with the person on payment of penalties or otherwise; or
</P>
<P>(b) Any felony under a law of any State, Territory, or the District of Columbia, or the United States, prohibiting the manufacture, sale, importation, or transportation of spirits, wine, beer, or other intoxicating liquor.
</P>
<SECAUTH TYPE="N">(72 Stat. 1336, 1352, 1353, 1394; 26 U.S.C. 5062, 5175, 5177, 5551)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.57" NODE="27:1.0.1.1.23.4.501.9" TYPE="SECTION">
<HEAD>§ 28.57   Appeal to Administrator.</HEAD>
<P>Where a bond or consent of surety is disapproved by the appropriate TTB officer, the person giving the bond may appeal from such disapproval to the Administrator, who will hear such appeal. The decision of the Administrator shall be final.
</P>
<SECAUTH TYPE="N">(72 Stat. 1394; 26 U.S.C. 5551)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.58" NODE="27:1.0.1.1.23.4.501.10" TYPE="SECTION">
<HEAD>§ 28.58   Operations or unit bond—distilled spirits.</HEAD>
<P>(a) <I>Spirits.</I> Where, as authorized in § 28.91, spirits are withdrawn without payment of tax, from the bonded premises of a distilled spirits plant on notice of the proprietor thereof, the approved operations or unit bond must cover such withdrawals if the proprietor is required to give a bond under part 19 of this chapter.
</P>
<P>(b) <I>Wine.</I> Where the provisions of part 19 of this chapter require an operations or unit bond to be given and approved to cover the operations of a distilled spirits plant and an adjacent bonded wine cellar, such bond will cover the withdrawal of wine without payment of tax, as authorized in § 28.121, from such bonded wine cellar on application for such withdrawal by the proprietor.
</P>
<P>(c) <I>Specially denatured spirits.</I> Where specially denatured spirits are withdrawn free of tax, as authorized in § 28.151, from the bonded premises of a distilled spirits plant on application of the proprietor thereof, the proprietor shall file a consent of surety extending the terms of the operations or unit bond, which consent shall be in the following form:
</P>
<EXTRACT>
<P>The obligors agree to extend the terms of said bond to cover all liability that may be incurred on all specially denatured spirits withdrawn by the principal for exportation or transfer to a foreign-trade zone, for which satisfactory evidence of exportation, or of deposit in a foreign-trade zone, as required by law and regulations, is not submitted to the appropriate TTB officer.</P></EXTRACT>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended (26 U.S.C. 5175, 5214); Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066); Sec. 805, Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71721, Dec. 11, 1979, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1135, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.59" NODE="27:1.0.1.1.23.4.501.11" TYPE="SECTION">
<HEAD>§ 28.59   Bond, Form 5120.36.</HEAD>
<P>Where the operations of a bonded wine cellar are covered by bond, Form 5120.36, as provided in part 24 of this chapter, such bond shall cover the withdrawal of wine without payment of tax, as authorized in § 28.121, from such bonded wine cellar by the proprietor of the bonded wine cellar.
</P>
<SECAUTH TYPE="N">(72 Stat. 1379, 1380; 26 U.S.C. 5354, 5362, as amended by T.D. ATF-299, 55 FR 25033, June 19, 1990; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.60" NODE="27:1.0.1.1.23.4.501.12" TYPE="SECTION">
<HEAD>§ 28.60   Brewer's bond, Form 5130.22.</HEAD>
<P>When beer or beer concentrate is removed from a brewery without payment of tax for any of the purposes authorized in § 28.141, the brewer's bond, Form 5130.22, will cover the removals if a bond is required to be furnished under the provisions of part 25 of this chapter.
</P>
<SECAUTH TYPE="N">(49 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1388, as amended (26 U.S.C. 5053, 5401))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.61" NODE="27:1.0.1.1.23.4.501.13" TYPE="SECTION">
<HEAD>§ 28.61   Bond, Form 5100.25</HEAD>
<P>If a specific lot of distilled spirits or wine is to be withdrawn without payment of tax, as authorized in § 28.91(a)(1), (2), (3), (5), or § 28.121(a), (b), (c), or (d), by a person other than the proprietor of the bonded premises, a specific bond on TTB Form 5100.25 shall be filed by the exporter, as provided in § 28.51. The penal sum of the bond shall not be less than the tax prescribed by law on the quantity of spirits or wine to be withdrawn. However, the maximum penal sum of the bond shall not exceed $200,000 but in no case shall the penal sum be less than $1,000.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended, 1380, as amended, 1381, 1382 (26 U.S.C. 5175, 5214, 5362) sec. 3. Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066, 5370, 5371))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.62" NODE="27:1.0.1.1.23.4.501.14" TYPE="SECTION">
<HEAD>§ 28.62   Bond, Form 5100.30.</HEAD>
<P>(a) <I>Requirement for bond.</I> If a person other than the proprietor of the bonded premises withdraws distilled spirits or wine without payment of tax, as authorized by § 28.91(a)(1), (2), (3), (5), or § 28.121(a), (b), (c), or (d), the exporter shall file a continuing bond, TTB Form 5100.30, as provided in § 28.51.
</P>
<P>(b) <I>Penal sum of bond.</I> The penal sum of the bond shall be sufficient to cover the tax on the maximum quantity of distilled spirits and wine that may remain unaccounted for at any one time. However, the maximum penal sum of the bond shall not exceed $200,000, but in no case shall the penal sum be less than $1,000. Distilled spirits and wine withdrawn for exportation, use on vessels or aircraft, transfer to a customs bonded warehouse, or transfer to and deposit in a foreign-trade zone, shall remain unaccounted for until the evidence of exportation, use, deposit, transfer, or loss in transit has been filed with the appropriate TTB officer.
</P>
<P>(c) <I>Apportioning bonds.</I> If the bond, Form 5100.30, is in less than the maximum penal sum, the principal shall apportion the bond, in accordance with the requirements on the bond form. The exporter may reapportion the bond coverage, if changing conditions make this necessary, by filing a consent of surety, TTB Form 5000.18, in accordance with its instructions.
</P>
<P>(d) <I>Withdrawal of wine for transfer to a customs bonded warehouse; consent of surety.</I> An exporter with a bond on Form 5100.30 executed before April 1, 1981, shall obtain a consent of surety on Form 5000.18 before withdrawing wine without payment of tax from a bonded wine cellar for transfer to a customs bonded warehouse. The consent shall be executed in accordance with § 28.54 and filed in accordance with instructions on the form. Exporters with bonds executed on or after April 1, 1981, do not need this consent of surety, because such bonds automatically apply to withdrawals for transfer to customs bonded warehouses.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended, 1380, as amended, 1381, 1382 (26 U.S.C. 5175, 5214, 5362) sec. 3. Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066, 5370, 5371))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39815, Aug. 5, 1991, as amended by T.D. ATF-413, 64 FR 46845, Aug. 27, 1999; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.63" NODE="27:1.0.1.1.23.4.501.15" TYPE="SECTION">
<HEAD>§ 28.63   Bond, Form 5100.12.</HEAD>
<P>Where the proprietor of a manufacturing bonded warehouse desires to withdraw a specific lot of distilled spirits or wines without payment of tax, as authorized in § 28.25, he shall file, as provided in § 28.51, a specific bond, on Form 5100.12, to cover the transportation of the distilled spirits or wines from the bonded premises from which withdrawn to the manufacturing bonded warehouse. The penal sum of such bond shall be not less than the tax prescribed by law on the quantity of distilled spirits or wines to be withdrawn: <I>Provided,</I> That the maximum penal sum of such bond shall not exceed $200,000, but in no case shall the penal sum be less than $1,000.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1380, as amended (26 U.S.C. 5175, 5362))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.64" NODE="27:1.0.1.1.23.4.501.16" TYPE="SECTION">
<HEAD>§ 28.64   Bond, Form 5110.67.</HEAD>
<P>(a) <I>General.</I> Where the proprietor of a manufacturing bonded warehouse desires to withdraw distilled spirits and wines from time to time without payment of tax, as authorized in § 28.25, he shall file, as provided in § 28.51, a continuing bond on Form 5110.67. The bond shall be executed in a penal sum sufficient to cover the tax at the rates prescribed by law on the maximum quantity of distilled spirits and wines which may remain unaccounted for at any one time: <I>Provided,</I> That the maximum penal sum of such bond shall not exceed $200,000, but in no case shall the penal sum be less than $1,000. Distilled spirits and wines withdrawn for transfer to a manufacturing bonded warehouse shall remain unaccounted for until the evidence of deposit in such warehouse, as required by this part, has been filed. The proprietor shall, at the time of executing Form 5110.67, designate the premises from which the withdrawals are to be made, provided that, as to any one bond on Form 5110.67, such premises shall be located in the same internal revenue region.
</P>
<P>(b) <I>Apportioning bonds.</I> If the bond, Form 5110.67 is in less than the maximum penal sum, the principal shall apportion the bond, in accordance with the requirements on the bond form. The principal may reapportion the bond coverage, if changing conditions make this necessary, by filing a consent of surety, Form 5000.18, in accordance with its instructions.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1380, as amended (26 U.S.C. 5175, 5362))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.65" NODE="27:1.0.1.1.23.4.501.17" TYPE="SECTION">
<HEAD>§ 28.65   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 28.66" NODE="27:1.0.1.1.23.4.501.18" TYPE="SECTION">
<HEAD>§ 28.66   Strengthening bonds.</HEAD>
<P>In all cases where the penal sum of any bond becomes insufficient, the principal shall either give a strengthening bond with the same surety to attain a sufficient penal sum, or give a new bond to cover the entire liability. Strengthening bonds will not be approved where any notation is made thereon which is intended, or which may be construed, as a release of any former bond, or as limiting the amount of any bond to less than its full penal sum. Strengthening bonds shall show the current date of execution and the effective date.
</P>
<SECAUTH TYPE="N">(72 Stat. 1352, 1394; 26 U.S.C. 5175, 5551)


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.67" NODE="27:1.0.1.1.23.4.501.19" TYPE="SECTION">
<HEAD>§ 28.67   Superseding bonds and new bonds for previously exempt persons.</HEAD>
<P>(a) <I>Superseding bonds.</I> Superseding bonds will be required in case of insolvency or removal of any surety, and may, at the discretion of the appropriate TTB officer, be required in any other contingency affecting the validity or impairing the efficiency of such bond. Executors, administrators, assignees, receivers, trustees, or other persons acting in a fiduciary capacity, continuing or liquidating the business of the principal, must execute and file a superseding bond or obtain the consent of the surety or sureties on the existing bond or bonds. Where, under the provisions of § 28.72, the surety on any bond given under this subpart has filed an application to be relieved of liability under said bond and the principal desires or intends to continue the business or operations to which such bond relates, he must file a valid superseding bond to be effective on or before the date specified in the surety's notice. If the principal does not file a superseding bond when required, he must discontinue the operations intended to be covered by such bond forthwith. Superseding bonds must show the date of execution and the effective date.
</P>
<P>(b) <I>New bonds for previously exempt persons.</I> If a person has not furnished a bond as provided in this subpart because the person was exempt from bond requirements under § 28.51(b), the person must furnish the required bond for any exportation that occurs during any period to which any of the exemption criteria in § 28.51(b) do not apply to the person.
</P>
<SECAUTH TYPE="N">(72 Stat. 1336, 1362; 26 U.S.C. 5062, 5214)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV7 N="501" NODE="27:1.0.1.1.23.4.501" TYPE="SUBJGRP">
<HEAD>Termination of Bonds</HEAD>


<DIV8 N="§ 28.70" NODE="27:1.0.1.1.23.4.501.20" TYPE="SECTION">
<HEAD>§ 28.70   Termination of Bonds, Forms 5120.25 and 5100.12.</HEAD>
<P>Bonds, Forms 5120.25 and 5100.12, covering a specific lot of distilled spirits or wines withdrawn without payment of tax under this part, will be canceled by the appropriate TTB officer on receipt by him of TTB Form 5100.11 properly executed by the appropriate customs official or armed services officer, as required by this part, evidencing that the distilled spirits or wines have been duly exported, laden for use on vessels or aircraft, deposited in a foreign-trade zone, or deposited in a manufacturing bonded warehouse, as the case may be, or of evidence satisfactory to him that the distilled spirits or wines have been otherwise lawfully disposed of or accounted for: <I>Provided,</I> That all liability under the bond to be canceled has been terminated.
</P>
<SECAUTH TYPE="N">(72 Stat. 1352; 26 U.S.C. 5175)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.71" NODE="27:1.0.1.1.23.4.501.21" TYPE="SECTION">
<HEAD>§ 28.71   Termination of bonds, Forms 5100.30 and 5110.67.</HEAD>
<P>(a) <I>General.</I> Continuing bonds, Forms 5100.30 and 5110.67, covering distilled spirits and/or wines withdrawn from time to time without payment of tax under this part, may be terminated as to liability for future withdrawals under the following circumstances:
</P>
<P>(1) Pursuant to application of surety as provided in § 28.72;
</P>
<P>(2) On approval of a superseding bond as provided in § 28.67; or
</P>
<P>(3) On written notification to the appropriate TTB officer by the principal of the discontinuance of withdrawals under the bond (including discontinuance of withdrawals under the bond because the proprietor has become exempt from bond requirements under § 28.51(b)).
</P>
<P>(b) <I>Cancellation.</I> When no further withdrawals are to be made under a bond on Form 5100.30 or 5110.67 under the circumstances specified in paragraph (a), the bond will be canceled by the appropriate TTB officer in the manner and subject to the conditions provided in § 28.70.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1352, as amended, 1353, as amended (26 U.S.C. 5062, 5175, 5176))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.72" NODE="27:1.0.1.1.23.4.501.22" TYPE="SECTION">
<HEAD>§ 28.72   Application of surety for relief from bond.</HEAD>
<P>A surety on any bond given on Forms 5100.30 or 5110.67, may at any time in writing notify the principal and the appropriate TTB officer that he desires, after a date named, to be relieved of liability under said bond. Such date shall be not less than 90 days after the date the notice is received by the appropriate TTB officer. The surety shall also file with the appropriate TTB officer an acknowledgment or other proof of service on the principal. If such notice is not thereafter in writing withdrawn, the rights of the principal as supported by said bond shall be terminated on the date named in the notice, and the surety shall be relieved from liability to the extent set forth in § 28.73(b).
</P>
<SECAUTH TYPE="N">(68A Stat. 749, as amended (26 U.S.C. 6065); Sec. 201. Pub. L. 85-859, 72 Stat. 1336, as amended, 1352, as amended (26 U.S.C. 5062, 5175))
</SECAUTH>
<CITA TYPE="N">[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.73" NODE="27:1.0.1.1.23.4.501.23" TYPE="SECTION">
<HEAD>§ 28.73   Relief of surety from bond.</HEAD>
<P>(a) <I>Bonds, Forms 5120.25 and 5100.12.</I> The surety on a bond given on Form 5120.25 or Form 5100.12 will be relieved from his liability under the bond when the bond has been canceled as provided for in § 28.70.
</P>
<P>(b) <I>Bonds, Forms 5100.30 and 5110.67.</I> Where the surety on a bond given on Form 5100.30 or Form 5110.67 has filed application for relief from liability, as provided in § 28.72, the surety will be relieved from liability for withdrawals made wholly subsequent to the date specified in the notice, or on the effective date of a superseding bond, if one is given. Notwithstanding such relief, the liability of the surety will continue until the spirits and/or wines withdrawn without payment of tax under the bond have been properly accounted for.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1352, as amended, 1353, as amended (26 U.S.C. 5062, 5175, 5176))
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.74" NODE="27:1.0.1.1.23.4.501.24" TYPE="SECTION">
<HEAD>§ 28.74   Release of pledged securities or cash (including cash equivalents).</HEAD>
<P>Securities of the United States, pledged and deposited as provided in § 28.53, will be released only in accordance with the provisions of 31 CFR part 225. Securities and cash (including cash equivalents) will not be released by the appropriate TTB officer until liability under the bond for which they were pledged has been terminated. When the appropriate TTB officer is satisfied that they may be released, he will fix the date or dates on which a part or all of such securities and cash (including cash equivalents) may be released. At any time prior to the release, the appropriate TTB officer may extend the date of release for such additional length of time as he deems necessary.
</P>
<SECAUTH TYPE="N">(61 Stat. 650; 6 U.S.C. 15)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="502" NODE="27:1.0.1.1.23.4.502" TYPE="SUBJGRP">
<HEAD>Charges and Credits</HEAD>


<DIV8 N="§ 28.80" NODE="27:1.0.1.1.23.4.502.25" TYPE="SECTION">
<HEAD>§ 28.80   Charges and credits on bonds.</HEAD>
<P>The withdrawal of liquors without payment of tax or of specially denatured spirits free of tax, under the provisions of this part shall constitute a charge against the bond under which the withdrawal is made of (a) the tax on the liquors withdrawn or (b) of an amount equal to the tax on specially denatured spirits withdrawn that will be due in the event of failure to account for the specially denatured spirits as provided in this part. The tax on liquors so withdrawn, or an amount equal to the tax on specially denatured spirits so withdrawn that would be due as set forth above, shall, on the required accounting for such liquors or specially denatured spirits, constitute a credit to the bond of such tax or amount equal to the tax, as the case may be. 
</P>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. TTB-8, 69 FR 3834, Jan 27, 2004, and25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. TTB-8, 69 FR 3834, Jan 27, 2004, and as amended by T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.23.5" TYPE="SUBPART">
<HEAD>Subpart E—Withdrawal of Distilled Spirits Without Payment of Tax for Exportation, Use on Vessels and Aircraft, Transfer to a Foreign-Trade Zone, or Transportation to a Manufacturing Bonded Warehouse</HEAD>


<DIV8 N="§ 28.91" NODE="27:1.0.1.1.23.5.503.1" TYPE="SECTION">
<HEAD>§ 28.91   General.</HEAD>
<P>(a) Distilled spirits on which the internal revenue tax has not been paid or determined may, subject to this part, be withdrawn from the bonded premises of a distilled spirits plant without payment of tax for:
</P>
<P>(1) Exportation;
</P>
<P>(2) Use on the vessels or aircraft described in § 28.21;
</P>
<P>(3) Transfer to and deposit in a foreign-trade zone for exportation or for storage pending exportation;
</P>
<P>(4) Transportation to and deposit in a manufacturing bonded warehouse; or
</P>
<P>(5) Transfer to and deposit in a customs bonded warehouse as provided for in § 28.26.
</P>
<P>(b) Except as provided in § 28.51(b), all withdrawals shall be made under the applicable bond prescribed in subpart D of this part.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-51, 43 FR 24244, June 2, 1978, as amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.92" NODE="27:1.0.1.1.23.5.503.2" TYPE="SECTION">
<HEAD>§ 28.92   Application or notice, TTB Form 5100.11.</HEAD>
<P>(a) <I>Export, use on vessels and aircraft, and transfer to a foreign-trade zone or a customs bonded warehouse.</I> Application for or notice of the withdrawal of distilled spirits without payment of tax for exportation from the United States, or for use on vessels and aircraft, or for transfer to a customs bonded warehouse or a foreign-trade zone, shall be made by the exporter on TTB Form 5100.11. If the exporter is not the proprietor of the bonded premises of the distilled spirits plant from which the spirits are to be withdrawn, the exporter shall prepare TTB Form 5100.11 as an application, in accordance with the instructions on the form, and shall forward all copies of the form in accordance with instructions for the form. If the exporter is the proprietor of the bonded premises of the distilled spirits plant from which the spirits are withdrawn, the exporter shall prepare TTB Form 5100.11 as a notice in accordance with the instructions on the form.
</P>
<P>(b) <I>Manufacturing bonded warehouse.</I> Application for the withdrawal of distilled spirits without payment of tax for transportation to and deposit in a manufacturing bonded warehouse shall be made by the proprietor of such warehouse on TTB Form 5100.11, in accordance with the instructions on the form.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 152-0190)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214); Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8559, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.93" NODE="27:1.0.1.1.23.5.503.3" TYPE="SECTION">
<HEAD>§ 28.93   Carrier to be designated.</HEAD>
<P>The name of the carrier or carriers to be used in transporting the distilled spirits from the bonded premises of the distilled spirits plant to the port of export, or to the customs bonded warehouse, or to the manufacturing bonded warehouse, or to the foreign-trade zone, as the case may be, shall be shown in the application. If the spirits are shipped on a through bill of lading and all carriers handling the spirits while in transit are not known, the name of the carrier to whom the distilled spirits are to be delivered at the shipping premises shall be shown.
</P>
<SECAUTH TYPE="N">(72 Stat. 1362, 84 Stat. 1965; 26 U.S.C. 5214, 5066)
</SECAUTH>
<CITA TYPE="N">[T.D. 7112, 36 FR 8581, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 28.94" NODE="27:1.0.1.1.23.5.503.4" TYPE="SECTION">
<HEAD>§ 28.94   Containers.</HEAD>
<P>Distilled spirits authorized to be withdrawn without payment of tax from the bonded premises of a distilled spirits plant under the provisions of this subpart may be withdrawn from such establishment in such containers as may be authorized in part 19 of this chapter. Except as otherwise provided in this part, the gauging, packing, bottling, casing, marking, closing and reporting of distilled spirits prior to withdrawal shall be in accordance with the provisions of part 19 of this chapter.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1360, as amended, 1374, as amended (26 U.S.C. 5205, 5206, 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979. as amended by T.D. ATF-206, 50 FR 23956, June 7, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 28.95" NODE="27:1.0.1.1.23.5.503.5" TYPE="SECTION">
<HEAD>§ 28.95   Change of packages for exportation.</HEAD>
<P>Whenever the exporter desires to transfer distilled spirits from packages filled on the bonded premises of a distilled spirits plant to such other suitable packages as may be desired for exportation, such change of packages shall be made under the procedures of part 19 of this chapter, prior to the preparation of TTB Form 5100.11 covering the removal of the distilled spirits.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1360, as amended, 1374, as amended (26 U.S.C. 5205, 5206, 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.96" NODE="27:1.0.1.1.23.5.503.6" TYPE="SECTION">
<HEAD>§ 28.96   Approval of application.</HEAD>
<P>When filed as an application, and TTB Form 5100.11 has been properly executed, and the bond (if required) has been filed in a sufficient amount, the appropriate TTB officer shall approve the application on all copies of the form and send them to the proprietor of the bonded premises from which the spirits will be withdrawn.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979, as amended by T.D. ATF-198, 50 FR 8559, Mar. 1, 1985; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.97" NODE="27:1.0.1.1.23.5.503.7" TYPE="SECTION">
<HEAD>§ 28.97   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 28.98" NODE="27:1.0.1.1.23.5.503.8" TYPE="SECTION">
<HEAD>§ 28.98   Inspection and regauge.</HEAD>
<P>The proprietor shall inspect all containers to be withdrawn pursuant to TTB Form 5100.11 and shall regauge all packages, except those which are to be withdrawn on the filling or production gauge as authorized in 27 CFR part 19. If the withdrawal is to be made subject to regauge, the proprietor shall prepare a package gauge record as provided in 27 CFR part 19, enter the total proof gallons regauged on TTB Form 5100.11, and attach a copy of the package gauge record to each copy of TTB Form 5100.11. If a proprietor wishes to reduce the proof of spirits contained in packages to be withdrawn pursuant to TTB Form 5100.11, he shall make such proof reduction incident to regauge of the packages.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1412-0190 and 1512-0250)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8559, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.100" NODE="27:1.0.1.1.23.5.503.9" TYPE="SECTION">
<HEAD>§ 28.100   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 28.101" NODE="27:1.0.1.1.23.5.503.10" TYPE="SECTION">
<HEAD>§ 28.101   Packages to be stamped.</HEAD>
<P>Each package and authorized bulk conveyance of spirits (including tank cars and tank trucks but not pipelines) withdrawn without payment of tax under the provisions of this subpart shall be marked with the word “EXPORT” in accordance with the provisions of 27 CFR part 19 prior to its removal from the bonded premises.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0189)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5205))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985, as amended by T.D. ATF-206, 50 FR 23956, June 7, 1985]]


</CITA>
</DIV8>


<DIV8 N="§ 28.102" NODE="27:1.0.1.1.23.5.503.11" TYPE="SECTION">
<HEAD>§ 28.102   Bottles to have closures affixed.</HEAD>
<P>Every bottle containing distilled spirits to be withdrawn under the provisions of this subpart shall have a closure or other device affixed in accordance with the provisions of part 19 of this chapter.
</P>
<SECAUTH TYPE="N">(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 23956, June 7, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 28.103" NODE="27:1.0.1.1.23.5.503.12" TYPE="SECTION">
<HEAD>§ 28.103   Export marks.</HEAD>
<P>(a) <I>General.</I> In addition to the marks and brands required to be placed on packages and cases of distilled spirits at the time they are filled under the provisions of part 19 of this chapter, the proprietor shall mark the word “Export” on the Government side of each case or Government head of each container before removal from the bonded premises for any exportation authorized under this subpart.
</P>
<P>(b) <I>Exception.</I> When containers are being removed to a contiguous manufacturing bonded warehouse, the proprietor need not place the word “Export” on the containers if the appropriate TTB officer finds the omission will not jeopardize the revenue.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-82, 46 FR 21158, Apr. 9, 1981, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.104" NODE="27:1.0.1.1.23.5.503.13" TYPE="SECTION">
<HEAD>§ 28.104   Certificates of origin.</HEAD>
<P>The entry of distilled spirits at ports in certain foreign countries is permitted only upon the filing by the importer of an official certificate showing the origin and age of such spirits. An appropriate TTB officer may, on request of the applicant, furnish a certificate showing the origin and age of the spirits described on TTB Forms 5100.11 or 5110.30. Such officer may require supporting documentation to be provided by the applicant. Certificates of origin and age shall be furnished on Form 2177 (5110.58). Form 2177 (5110.58) may also be issued for distilled spirits removed to a foreign-trade zone, in which case the number and location of the foreign-trade zone shall be shown on the form in lieu of the name of the foreign country.
</P>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.105" NODE="27:1.0.1.1.23.5.503.14" TYPE="SECTION">
<HEAD>§ 28.105   Report of inspection and tax liability.</HEAD>
<P>When the spirits are ready for shipment, the proprietor shall execute his report of inspection and tax liability on all copies of TTB Form 5100.11.
</P>
<SECAUTH TYPE="N">(72 Stat. 1362; 26 U.S.C. 5214)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-46, 42 FR 44773, Sept. 6, 1977, as amended by T.D. ATF-62, 44 FR 71723, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004] 


</CITA>
</DIV8>


<DIV8 N="§ 28.106" NODE="27:1.0.1.1.23.5.503.15" TYPE="SECTION">
<HEAD>§ 28.106   Consignment, shipment, and delivery.</HEAD>
<P>The consignment, shipment, and delivery of distilled spirits withdrawn without payment of tax under this subpart shall be made under the provisions of subpart M.
</P>
<SECAUTH TYPE="N">(72 Stat. 1362; 26 U.S.C. 5214)


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.107" NODE="27:1.0.1.1.23.5.503.16" TYPE="SECTION">
<HEAD>§ 28.107   Disposition of forms.</HEAD>
<P>TTB Form 5100.11 and any accompanying package gauge record shall be distributed by the proprietor in accordance with the instruction on TTB Form 5100.11.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV7 N="503" NODE="27:1.0.1.1.23.5.503" TYPE="SUBJGRP">
<HEAD>Losses</HEAD>


<DIV8 N="§ 28.110" NODE="27:1.0.1.1.23.5.503.17" TYPE="SECTION">
<HEAD>§ 28.110   Losses.</HEAD>
<P>Where there has been a loss of distilled spirits while in transit from the bonded premises of a distilled spirits plant to a port of export, a customs bonded warehouse, a manufacturing bonded warehouse, a vessel or aircraft, or a foreign-trade zone, the provisions of subpart O of this part, with respect to losses of spirits after withdrawal without payment of tax and to claims for remission of the tax thereon, shall be applicable.
</P>
<SECAUTH TYPE="N">(72 Stat. 1323, as amended, 84 Stat. 1965; 26 U.S.C. 5008, 5066)
</SECAUTH>
<CITA TYPE="N">[T.D. 7112, 36 FR 8581, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="504" NODE="27:1.0.1.1.23.5.504" TYPE="SUBJGRP">
<HEAD>Return of Spirits to Bonded Premises</HEAD>


<DIV8 N="§ 28.115" NODE="27:1.0.1.1.23.5.504.18" TYPE="SECTION">
<HEAD>§ 28.115   General.</HEAD>
<P>Spirits which have been lawfully withdrawn without payment of tax under the provisions of this subpart for exportation, or for deposit in a foreign-trade zone, a manufacturing bonded warehouse, or a customs bonded warehouse, or for use on vessels and aircraft may, subject to the requirements of § 28.116, be returned:
</P>
<P>(a) To the bonded premises of a distilled spirits plant for redistillation; or
</P>
<P>(b) To the bonded premises from which withdrawn, pending subsequent removal for lawful purposes. However, such spirits may only be returned before they are exported, deposited in a foreign-trade zone, a manufacturing bonded warehouse, or a customs bonded warehouse, or laden as supplies upon or used on vessels or aircraft, as the case may be.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365 as amended (26 U.S.C. 5214, 5223); Sec. 3, Pub. L. 91-659, 84 Stat. 1365, as amended (26 U.S.C. 5066))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.116" NODE="27:1.0.1.1.23.5.504.19" TYPE="SECTION">
<HEAD>§ 28.116   Notice of return of spirits withdrawn without payment of tax.</HEAD>
<P>If a proprietor of a distilled spirits plant desires to return spirits to his plant as provided in § 28.115, he shall file a notice with the appropriate TTB officer. A copy of the notice shall be prepared for submission to the customs official, as required by § 28.117. The notice shall be executed under the penalties of perjury and shall show:
</P>
<P>(a) Name, address, and plant number of the distilled spirits plant to which the spirits are to be returned.
</P>
<P>(b) Name, address, and plant number of the distilled spirits plant which packaged or bottled the spirits.
</P>
<P>(c) Name, address, and plant number of the distilled spirits plant from which the spirits were withdrawn.
</P>
<P>(d) Name and address of the person who withdrew the spirits.
</P>
<P>(e) Serial number of the TTB Form 5100.11 and the date withdrawn.
</P>
<P>(f) Present location of spirits to be returned.
</P>
<P>(g) Kind of spirits to be returned.
</P>
<P>(h) Number, kind, and serial numbers of the containers to be returned. In case of bottled spirits, the number and size of the bottles in each case.
</P>
<P>(i) Total quantity in proof gallons of spirits to be returned.
</P>
<P>(j) Reason for return of spirits. 
</P>
<P>(k) Disposition to be made of returned spirits, i.e., redistillation or return to bonded storage.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended (26 U.S.C. 5214, 5223))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71723, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004; T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.117" NODE="27:1.0.1.1.23.5.504.20" TYPE="SECTION">
<HEAD>§ 28.117   Responsibility for return of spirits.</HEAD>
<P>The person who withdrew the spirits without payment of tax shall be responsible for arranging the return of the spirits to the distilled spirits plant receiving them. The person or his agent shall submit a copy of the notice required by § 28.116 to the appropriate customs official. If the spirits are returned before the TTB Form 5100.11 has been filed with the customs official, the person shall submit the form with the notice. The customs officer shall, if the spirits are eligible for return under § 28.115, accept the notice as authority for the return of the spirits to the distilled spirits plant identified in the notice. The customs officer shall retain the notice and shall mark each copy of TTB Form 5100.11 “Canceled”, note the date thereon, return both copies to the person, and, if the spirits are in customs custody, release them for return. The person shall retain one copy of the canceled TTB Form 5100.11 and file one copy with the appropriate TTB officer identified on the form.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat 1362, as amended, 1365, as amended (26 U.S.C. 5214, 5223))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71723, Dec. 11, 1979, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004; T.D. TTB-146, 82 FR 1136, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.118" NODE="27:1.0.1.1.23.5.504.21" TYPE="SECTION">
<HEAD>§ 28.118   Receipt of spirits.</HEAD>
<P>The receipt, gauge, and disposition of the distilled spirits at the distilled spirits plant shall be in accordance with the applicable provisions of subpart Q of part 19 of this chapter.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat 1362, as amended, 1365, as amended (26 U.S.C. 5214, 5223))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71723, Dec. 11, 1979, as amended by T.D. TTB-92, 76 FR 9171, Feb. 16, 2011]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.23.6" TYPE="SUBPART">
<HEAD>Subpart F—Withdrawal of Wine Without Payment of Tax for Exportation, Use on Vessels and Aircraft, Transfer to a Foreign-Trade Zone or to a Customs Bonded Warehouse, or Transportation to a Manufacturing Bonded Warehouse</HEAD>


<DIV8 N="§ 28.121" NODE="27:1.0.1.1.23.6.505.1" TYPE="SECTION">
<HEAD>§ 28.121   General.</HEAD>
<P>Wine may, subject to this part, be withdrawn from a bonded wine cellar, without payment of tax, for:
</P>
<P>(a) Exportation;
</P>
<P>(b) Use on the vessels and aircraft described in § 28.21;
</P>
<P>(c) Transfer to and deposit in a foreign-trade zone for exportation or for storage pending exportation;
</P>
<P>(d) Transfer to and deposit in a customs bonded warehouse as provided in § 28.27; or
</P>
<P>(e) Transportation to and deposit in a manufacturing bonded warehouse.
</P>
<FP>Except as provided in § 28.51(b), all such withdrawals shall be made under the applicable bond prescribed in subpart D.
</FP>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1380; 19 U.S.C. 1309, 81c, 26 U.S.C. 5362, 7805; (sec. 201, Pub. L. 85-859. 72 Stat. 1381, 1382 (26 U.S.C. 5370, 5371)))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71723, Dec. 11, 1979; T.D. ATF-88, 46 FR 39816, Aug. 5, 1981; 47 FR 20303, May 12, 1982; T.D. TTB-8, 69 FR 3831, Jan. 27, 2004; T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.122" NODE="27:1.0.1.1.23.6.505.2" TYPE="SECTION">
<HEAD>§ 28.122   Application or notice, TTB Form 5100.11.</HEAD>
<P>(a) <I>Export, use on vessels and aircraft, transfer to a customs bonded warehouse, and transfer to a foreign-trade zone.</I> Where the exporter is not the proprietor of the bonded wine cellar from which the wine is to be withdrawn, the exporter must make an application on TTB Form 5100.11 for approval of the withdrawal. Where the exporter is the proprietor of the bonded wine cellar from which the wine is to be withdrawn, the exporter must, at the time of withdrawal of the wine, prepare a notice of the withdrawal and shipment on TTB Form 5100.11. TTB approval is not required if the exporter is the proprietor of the bonded wine cellar from which the wine is to be withdrawn. 
</P>
<P>(b) <I>Manufacturing bonded warehouse.</I> The proprietor of the manufacturing bonded warehouse must make an application on TTB Form 5100.11 to withdraw wine without payment of tax for transportation to and deposit in such warehouse before withdrawal of the wine. 
</P>
<P>(c) <I>Action by appropriate TTB officer.</I> Where, under the provisions of paragraphs (a) and (b) of this section, a TTB Form 5100.11 is submitted to the appropriate TTB officer for approval, the appropriate TTB officer shall, if satisfied that the application is in order and that the applicant has on file a good and sufficient bond, approve the application and forward it to the proprietor of the premises from which the wines are to be withdrawn.
</P>
<P>(d) <I>Restriction on shipment.</I> Where, under the provisions of paragraphs (a) and (b) of this section, prior approval of TTB Form 5100.11 by the appropriate TTB officer is required, the proprietor of the bonded wine cellar may not ship the wine until the approved TTB Forms 5100.11 have been received by him. In such cases, the proprietor of the bonded wine cellar shall, on removal of the wines, execute his certificate of removal on TTB Form 5100.11.
</P>
<APPRO TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))
</APPRO>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 28.122, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 28.123" NODE="27:1.0.1.1.23.6.505.3" TYPE="SECTION">
<HEAD>§ 28.123   Export marks.</HEAD>
<P>(a) <I>General.</I> In addition to the marks and brands required to be placed on packages or cases of wine at the time they are filled under the provisions of part 24 of this chapter, the proprietor shall mark the word “Export” on the Government side of each case or Government head of each container before removal from the bonded premises for any exportation authorized under this subpart, including withdrawals under 26 U.S.C. 5362(c)(4).
</P>
<P>(b) <I>Exception.</I> When containers are being removed to a contiguous manufacturing bonded warehouse, the proprietor need not place the word “Export” on the containers if the appropriate TTB officer finds the omission will not jeopardize the revenue.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362, 7805))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-82, 46 FR 21158, Apr. 9, 1981, as amended by T.D. ATF-88, 46 FR 39816, Aug. 5, 1981; 47 FR 20303, May 12, 1982; T.D. ATF-299, 55 FR 25033, June 19, 1990; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.124" NODE="27:1.0.1.1.23.6.505.4" TYPE="SECTION">
<HEAD>§ 28.124   Consignment, shipment, and delivery.</HEAD>
<P>The consignment, shipment, and delivery of wines withdrawn without payment of tax under this subpart shall be made under the provisions of subpart M of this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1380; 26 U.S.C. 5362)


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.125" NODE="27:1.0.1.1.23.6.505.5" TYPE="SECTION">
<HEAD>§ 28.125   Disposition of forms.</HEAD>
<P>On removal of the wines from the premises of the bonded wine cellar, the proprietor shall forward one copy of TTB Form 5100.11 to the appropriate TTB officer, retain one copy for his files, and deliver the original and remaining copy to the officer to whom the shipment is consigned, or in whose care it is shipped, as required by subpart M. Where the shipment is for delivery for use on aircraft, the copy marked “Consignee's Copy”, provided for in § 28.122, shall be forwarded to the airline company at the airport.
</P>
<SECAUTH TYPE="N">(72 Stat. 1380; 26 U.S.C. 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.126" NODE="27:1.0.1.1.23.6.505.6" TYPE="SECTION">
<HEAD>§ 28.126   Proprietor's report.</HEAD>
<P>The records of the proprietor of the bonded wine cellar shall reflect the quantity of wine removed without payment of tax under this subpart, and he shall report the quantity of wine so removed on TTB F 5120.17.
</P>
<SECAUTH TYPE="N">(72 Stat. 1380; 26 U.S.C. 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-299, 55 FR 25033, June 19, 1990; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.127" NODE="27:1.0.1.1.23.6.505.7" TYPE="SECTION">
<HEAD>§ 28.127   Losses.</HEAD>
<P>Where there has been a loss of wine while in transit from a bonded wine cellar to a port of export, a foreign-trade zone, a vessel or aircraft, a customs bonded warehouse, or a manufacturing bonded warehouse, the provisions of subpart O of this part, with respect to losses of wine after withdrawal without payment of tax and to claims for remission of the tax thereon, shall be applicable.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 1382, (26 U.S.C. 5370, 5371))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]


</CITA>
</DIV8>


<DIV7 N="505" NODE="27:1.0.1.1.23.6.505" TYPE="SUBJGRP">
<HEAD>Return of Wines to Bonded Wine Cellar</HEAD>


<DIV8 N="§ 28.130" NODE="27:1.0.1.1.23.6.505.8" TYPE="SECTION">
<HEAD>§ 28.130   General.</HEAD>
<P>On application of the proprietor of a bonded wine cellar, wine which has been lawfully withdrawn without payment of tax under the provisions of this subpart for exportation, or for use on vessels and aircraft, or for deposit in a foreign-trade zone, in a manufacturing bonded warehouse, or in a customs bonded warehouse, may for good cause be returned to the bonded wine cellar from which withdrawn, for storage pending subsequent removal for lawful purposes. However, such wine must be returned before being exported, laden as supplies or used aboard vessels or aircraft, or deposited in a foreign-trade zone, in a manufacturing bonded warehouse, or in a customs bonded warehouse, as the case may be.
</P>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 28.131" NODE="27:1.0.1.1.23.6.505.9" TYPE="SECTION">
<HEAD>§ 28.131   Application for return of wines withdrawn without payment of tax.</HEAD>
<P>Where a proprietor of a bonded wine cellar desires to return wines to his bonded wine cellar as provided in § 28.130, he shall submit a written application, in duplicate, to the appropriate TTB officer, for approval of the return of the wines. The application shall show.
</P>
<P>(a) Name, address, and registry number of the bonded wine cellar.
</P>
<P>(b) Name and address of the person who withdrew the wines.
</P>
<P>(c) Serial number of the TTB Form 5100.11 and the date withdrawn.
</P>
<P>(d) Present location of wines to be returned.
</P>
<P>(e) Kind of wines to be returned.
</P>
<P>(f) Number, kind, and serial numbers of the containers to be returned. In the case of bottled wines, the number and size of the bottles in each case.
</P>
<P>(g) Total quantity in wine gallons for each separate tax class of wines to be returned.
</P>
<P>(h) Reason for return of the wines.
</P>
<FP>The application shall be executed under the penalties of perjury. On approval of the application the appropriate TTB officer shall return both copies to the proprietor, who, in turn, shall deliver them to the exporter.
</FP>
<SECAUTH TYPE="N">(72 Stat. 1380; 26 U.S.C. 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004; T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.132" NODE="27:1.0.1.1.23.6.505.10" TYPE="SECTION">
<HEAD>§ 28.132   Responsibility for return of wine.</HEAD>
<P>The person who withdrew the wines without payment of tax shall be responsible for arranging the return of the wines to the bonded wine cellar from which they were withdrawn. In case of emergency, the person may arrange the return of wines to bonded premises without an approved application, but such wines shall be kept separate at the bonded premises and shall not be recorded in the records and reports of the proprietor until an approved application for such return has been obtained as provided in § 28.131. Such person or his agent shall present to the appropriate customs official the two copies of the approved application authorizing the return unless the wines are returned before the TTB Form 5100.11 has been filed with the customs official. The customs officer shall, if he finds that the wines are eligible for return under § 28.130, accept the approved application as authority for the return of the wines to the bonded wine cellar noted on the application and shall mark each copy of TTB Form 5100.11 “Canceled”, note the date thereon, affix a copy of the approved application to each of the canceled TTB Forms 5100.11, return both TTB Forms 5100.11 to the person, and, where the wines are in his custody, release them for return. The canceled TTB Forms 5100.11, with attachments, shall be delivered by such person or his agent to the proprietor of the bonded wine cellar. When wines have been returned before the TTB Forms 5100.11 were filed with customs officials, the two copies of the approved application shall be submitted, by the person or his agent, to the proprietor of the bonded wine cellar who shall cancel and date each copy of TTB Form 5100.11 and affix copies of the approved application thereto.
</P>
<SECAUTH TYPE="N">(72 Stat. 1380; 26 U.S.C. 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004; T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.133" NODE="27:1.0.1.1.23.6.505.11" TYPE="SECTION">
<HEAD>§ 28.133   Disposition of forms.</HEAD>
<P>On receipt of the wines at the bonded wine cellar, the proprietor shall endorse, on each copy of the approved application to return the wines, the date received, the total amount in wine gallons of each tax class of wine returned, and affix his signature. He shall forward the original TTB Form 5100.11, with attached application, to the appropriate TTB officer, and retain the remaining copy for his files. The storage, disposition, and records pertaining to such returned wines shall be in accordance with the applicable provisions of part 24 of this chapter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1380; 26 U.S.C. 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.23.7" TYPE="SUBPART">
<HEAD>Subpart G—Removal of Beer and Beer Concentrate Without Payment of Tax for Exportation, Use as Supplies on Vessels and Aircraft, or Transfer to a Foreign-Trade Zone</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 28.141" NODE="27:1.0.1.1.23.7.506.1" TYPE="SECTION">
<HEAD>§ 28.141   General.</HEAD>
<P>(a) <I>Beer.</I> Beer may, subject to this part, be removed from the brewery without payment of tax for:
</P>
<P>(1) Export to a foreign country;
</P>
<P>(2) Use as supplies on the vessels and aircraft described in § 28.21; or
</P>
<P>(3) Transfer to and deposit in a foreign-trade zone for exportation or for storage pending exportation.
</P>
<P>(b) <I>Beer concentrate.</I> Concentrate, produced from beer under the provisions of subpart R of part 25 of this chapter may, subject to this part, be removed from the brewery without payment of tax for:
</P>
<P>(1) Export to a foreign country; or
</P>
<P>(2) Transfer to and deposit in a foreign-trade zone for exportation or for storage pending exportation.
</P>
<P>(c) <I>Bond.</I> Except where the brewer is not required to hold a bond under § 25.91(e) of this chapter, all removals of beer or beer concentrate will be made by the brewer under the provisions of the brewer's bond, Form 5130.22 as prescribed in § 28.60.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004; T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.142" NODE="27:1.0.1.1.23.7.506.2" TYPE="SECTION">
<HEAD>§ 28.142   Notice, Form 1689 (5130.12).</HEAD>
<P>When a brewer intends to remove beer or beer concentrate without payment of tax from a brewery for exportation or for transportation to and deposit in a foreign-trade zone, or remove beer for use as supplies on vessels and aircraft, the brewer shall prepare a notice on Form 1689 (5130.12) for each withdrawal. The brewer shall execute Form 1689 (5130.12) in quadruplicate, except when the shipment is for use on aircraft the brewer shall execute an extra copy which will be marked “Consignee's Copy.”
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.143" NODE="27:1.0.1.1.23.7.506.3" TYPE="SECTION">
<HEAD>§ 28.143   Containers.</HEAD>
<P>(a) <I>Beer.</I> Beer being exported, used as supplies on vessels and aircraft, or transferred to and deposited in a foreign-trade zone, without payment of tax, may be removed in bottles, kegs, or bulk containers.
</P>
<P>(b) <I>Beer concentrate.</I> Concentrate may not be removed for export, or for transfer to and deposit in a foreign-trade zone, in containers of the kind ordinarily used by brewers for the removal of beer for consumption or sale.


</P>
</DIV8>


<DIV8 N="§ 28.144" NODE="27:1.0.1.1.23.7.506.4" TYPE="SECTION">
<HEAD>§ 28.144   Export marks.</HEAD>
<P>(a) <I>General Requirement.</I> In addition to the marks and brands required to be placed on containers of beer or beer concentrate under the provisions of part 25 of this chapter, the brewer shall mark the word “Export” on each container or case of beer, or the words “Beer concentrate for export” on each container of beer concentrate, before removal from the brewery for any exportation authorized under this subpart.
</P>
<P>(b) <I>Exceptions.</I> A brewer need not apply the mark “Export” on cases of beer being exported under the following circumstances:
</P>
<P>(1) When beer is being directly exported by the brewer, and the brewer can furnish documentation (such as an ocean or air freight bill of lading, or a foreign landing certificate) that the beer was directly exported to a foreign country;
</P>
<P>(2) When cased beer is transferred from a brewery to a foreign-trade zone for export or for storage pending exportation; or
</P>
<P>(3) When cased beer is exported to the military.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.145" NODE="27:1.0.1.1.23.7.506.5" TYPE="SECTION">
<HEAD>§ 28.145   Consignment, shipment and delivery.</HEAD>
<P>The consignment, shipment and delivery of beer or beer concentrate removed from a brewery without payment of tax under this subpart will be in accordance with the applicable provisions of subpart M of this part.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.146" NODE="27:1.0.1.1.23.7.506.6" TYPE="SECTION">
<HEAD>§ 28.146   Disposition of forms.</HEAD>
<P>On removal of the beer or beer concentrate withdrawn under the provisions of this subpart, the brewer shall forward one copy of Form 1689 (5130.12) to the appropriate TTB officer, retain one copy for the files, and deliver the original and remaining copy to the officer to whom the shipment is consigned, or in whose care it is shipped, as required by subpart M of this part. When the shipment is for delivery for use on aircraft, the copy marked “Consignee's Copy,” provided for in § 28.142, will be forwarded to the airline company at the airport.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.147" NODE="27:1.0.1.1.23.7.506.7" TYPE="SECTION">
<HEAD>§ 28.147   Return of beer or beer concentrate.</HEAD>
<P>Beer or beer concentrate removed without payment of tax under the provisions of this subpart may be returned to be brewery from which removed if lading of the beer or beer concentrate is delayed more than the period provided in § 28.262 or when the brewer has other good cause for return. The brewer shall request the district director of customs to release the beer or beer concentrate for return to the brewery and, on such release, the district director of customs shall endorse both copies of the appropriate Form 1689 (5130.12) to show the release of the beer or beer concentrate and shall return the forms to the brewer. On return of the beer or beer concentrate to the brewery, the brewer shall record the quantity in the brewery daily records, mark the two copies of Form 1689 (5130.12) returned by the district director of customs, “Canceled—Returned to Brewery,” and forward one copy to the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended (26 U.S.C. 5053, 5056))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.148" NODE="27:1.0.1.1.23.7.506.8" TYPE="SECTION">
<HEAD>§ 28.148   Brewer's report.</HEAD>
<P>The brewer's records shall reflect the quantity of beer or beer concentrate removed without payment of tax under this subpart, and the brewer must report the quantity of beer or beer concentrate so removed on their monthly or quarterly report of operations, as appropriate. The total quantity of beer or beer concentrate involved in all export shipments returned during any reporting period also must be recorded as a separate entry on the appropriate report of operations. Brewers required to submit monthly reports of operations must use form TTB F 5130.9, while brewers required to submit quarterly reports of operations may use either form TTB F 5130.9 or form TTB F 5130.26 (or any successor forms). For requirements regarding monthly and quarterly reporting, see 27 CFR 25.297.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0007)
</APPRO>
<CITA TYPE="N">[T.D. TTB-196, 89 FR 87945, Nov. 6, 2024]






</CITA>
</DIV8>


<DIV8 N="§ 28.149" NODE="27:1.0.1.1.23.7.506.9" TYPE="SECTION">
<HEAD>§ 28.149   Losses.</HEAD>
<P>When there has been a loss of beer or beer concentrate while in transit from the brewery to a port for exportation, or for lading as supplies on a vessel or aircraft, or to a foreign-trade zone, the provisions of subpart O of this part, with respect to losses are applicable.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended (26 U.S.C. 5051, 5053))


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.150" NODE="27:1.0.1.1.23.7.506.10" TYPE="SECTION">
<HEAD>§ 28.150   Charges and credits on bond.</HEAD>
<P>The removal of beer concentrate from the brewery without payment of tax under this subpart will constitute a charge against the brewer's bond, Form 5130.22, of an amount equal to the tax which would be due on removal for consumption or sale, including penalties and interest, on all beer used to produce the concentrate which is removed. The satisfactory accounting for concentrate so removed will constitute a credit to the bond.
</P>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986]
</CITA>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended (26 U.S.C. 5051, 5053))


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.23.8" TYPE="SUBPART">
<HEAD>Subpart H—Withdrawal of Specially Denatured Spirits, Free of Tax, for Exportation or Transfer to a Foreign-Trade Zone</HEAD>


<DIV8 N="§ 28.151" NODE="27:1.0.1.1.23.8.506.1" TYPE="SECTION">
<HEAD>§ 28.151   General.</HEAD>
<P>Specially denatured spirits may, under this part, be withdrawn from the bonded premises of a distilled spirits plant, free of tax, for:
</P>
<P>(a) Exportation; or
</P>
<P>(b) Transfer to and deposit in a foreign-trade zone for exportation or for storage pending exportation.
</P>
<FP>All such withdrawals shall be made under a consent of surety on the proprietor's operations or unit bond, as prescribed in § 28.58(c).
</FP>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.152" NODE="27:1.0.1.1.23.8.506.2" TYPE="SECTION">
<HEAD>§ 28.152   Notice, TTB Form 5100.11.</HEAD>
<P>Notice of withdrawal of specially denatured spirits, as authorized in § 28.151 shall be made on TTB Form 5100.11 by the proprietor of the distilled spirits plant from which the denatured spirits are to be withdrawn.
</P>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.153" NODE="27:1.0.1.1.23.8.506.3" TYPE="SECTION">
<HEAD>§ 28.153   Withdrawal procedure.</HEAD>
<P>The provisions of §§ 28.93, 28.94, 28.98, 28.105, and 28.117 in respect of method of conveyance, authorized containers, gauging, inspection, approval and shipment, report of removal, and disposition of forms shall be applicable to specially denatured spirits to be withdrawn under the provisions of this subpart.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-46, 42 FR 44774, Sept. 6, 1977, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.154" NODE="27:1.0.1.1.23.8.506.4" TYPE="SECTION">
<HEAD>§ 28.154   Export marks.</HEAD>
<P>In addition to the marks and brands required to be placed on packages and cases at the time they are filled under the provisions of part 19 of this chapter, the proprietor shall mark the word “Export” on the Government side of each case or Government head of each container before removal from the bonded premises for any exportation authorized under this subpart.
</P>
<SECAUTH TYPE="N">(Sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 28.155" NODE="27:1.0.1.1.23.8.506.5" TYPE="SECTION">
<HEAD>§ 28.155   Consignment, shipment, and delivery.</HEAD>
<P>The consignment, shipment, and delivery of specially denatured spirits withdrawn free of tax under this subpart shall be made under the provisions of subpart M of this part.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.156" NODE="27:1.0.1.1.23.8.506.6" TYPE="SECTION">
<HEAD>§ 28.156   Losses.</HEAD>
<P>Where there has been a loss of specially denatured spirits while in transit from the bonded premises of a distilled spirits plant to a port of export or a foreign-trade zone, the exporter shall file claim for allowance of the loss in accordance with the provisions of subpart O of this part.


</P>
</DIV8>


<DIV8 N="§ 28.157" NODE="27:1.0.1.1.23.8.506.7" TYPE="SECTION">
<HEAD>§ 28.157   Exportation by dealer in specially denatured spirits.</HEAD>
<P>A dealer in specially denatured spirits who holds a permit under part 20 of this chapter may export specially denatured spirits in accordance with § 20.183 of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-140, 81 FR 59464, Aug. 30, 2016]


</CITA>
</DIV8>


<DIV7 N="506" NODE="27:1.0.1.1.23.8.506" TYPE="SUBJGRP">
<HEAD>Return of Specially Denatured Spirits to Bonded Premises</HEAD>


<DIV8 N="§ 28.160" NODE="27:1.0.1.1.23.8.506.8" TYPE="SECTION">
<HEAD>§ 28.160   General.</HEAD>
<P>Specially denatured spirits, which have been lawfully withdrawn free of tax under the provisions of this part for exportation, or for deposit in a foreign-trade zone, may, subject to the requirements of § 28.161, be returned:
</P>
<P>(a) To the bonded premises of a distilled spirits plant for redistillation; or
</P>
<P>(b) To the bonded premises of any distilled spirits plant pending subsequent lawful withdrawal free of tax. However, such specially denatured spirits may only be returned before they are exported, or deposited in a foreign-trade zone. If the specially denatured spirits are to be returned to bonded premises for storage without redistillation, the proprietor shall also execute a consent of surety Form 5000.18 to extend the terms of his operations or unit bond to cover the return and storage of such specially denatured spirits.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended (26 U.S.C. 5214, 5223))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.161" NODE="27:1.0.1.1.23.8.506.9" TYPE="SECTION">
<HEAD>§ 28.161   Notice of return of specially denatured spirits.</HEAD>
<P>If a proprietor of a distilled spirits plant desires to return specially denatured spirits to his plant as provided in § 28.160, he shall file a notice with the appropriate TTB officer. A copy of the notice shall be prepared for submission to the customs official, as required by § 28.162. The notice shall be executed under the penalties of perjury and shall show:
</P>
<P>(a) Name, address, and plant number of the distilled spirits plant to which the specially denatured spirits are to be returned.
</P>
<P>(b) Name, address, and plant number of the distilled spirits plant from which the specially denatured spirits were withdrawn.
</P>
<P>(c) Serial number of the TTB Form 5100.11 and the date withdrawn.
</P>
<P>(d) Present location of specially denatured spirits to be returned.
</P>
<P>(e) Description of the specially denatured spirits—kind, serial numbers of containers, and quantity in wine gallons.
</P>
<P>(f) Reason for return of the specially denatured spirits.
</P>
<P>(g) Disposition to be made of specially denatured spirits, i.e. redistillation or return to processing on the bonded premises.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended (26 U.S.C. 5214, 5223))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. ATF-198, 50 FR 8561, Mar. 1, 1985; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.162" NODE="27:1.0.1.1.23.8.506.10" TYPE="SECTION">
<HEAD>§ 28.162   Responsibility for return of specially denatured spirits.</HEAD>
<P>The principal on the bond under which the specially denatured spirits were withdrawn free of tax shall be responsible for arranging the return of the spirits to the distilled spirits plant receiving them. The principal or his agent shall submit a copy of the notice required by § 28.161 to the appropriate customs official. If the specially denatured spirits are returned before the TTB Form 5100.11 has been filed with the customs official, the principal shall submit the form with the notice. The customs officer shall, if the specially denatured spirits are eligible for return under § 28.160, accept the notice as authority for the return of the specially denatured spirits to the distilled spirits plant identified in the notice. The customs officer shall retain the notice and shall mark each copy of TTB Form 5100.11 “Canceled”, note the date thereon, return both copies to the principal, and, if the spirits are in customs custody, release them for return. The principal shall retain one copy of the canceled TTB Form 5100.11 and file one copy with the appropriate TTB officer identified on the form.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended (26 U.S.C. 5214, 5223))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71724, Dec. 11, 1979, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.163" NODE="27:1.0.1.1.23.8.506.11" TYPE="SECTION">
<HEAD>§ 28.163   Receipt of specially denatured spirits.</HEAD>
<P>The receipt, gauge, and disposition of the specially denatured spirits at the distilled spirits plant shall be in accordance with the applicable provisions of subpart U of part 19 of this chapter.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended (26 U.S.C. 5214, 5223))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.23.9" TYPE="SUBPART">
<HEAD>Subpart I—Exportation of Distilled Spirits With Benefit of Drawback</HEAD>


<DIV8 N="§ 28.171" NODE="27:1.0.1.1.23.9.507.1" TYPE="SECTION">
<HEAD>§ 28.171   General.</HEAD>
<P>Distilled spirits manufactured, produced, bottled in bottles, packed in containers, or packaged in casks or other bulk containers in the United States on which an internal revenue tax has been paid or determined, and which have been marked under the provisions of 27 CFR part 19 and of this part, as applicable, especially for export with benefit of drawback may be:
</P>
<P>(a) Exported;
</P>
<P>(b) Laden for use on the vessels or aircraft described in § 28.21; or
</P>
<P>(c) Transferred to and deposited in a foreign-trade zone for exportation or for storage pending exportation; or
</P>
<P>(d) Transferred to and deposited in a customs bonded warehouse as provided for in § 28.26(b).
</P>
<FP>On receipt by the appropriate TTB officer of required evidence of exportation, lading for use, or transfer, there shall be allowed to the bottler (or packager) of the spirits, drawback equal in amount to the tax found to have been paid or determined on the spirits.
</FP>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7112, 36 FR 8581, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 28.171, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV7 N="507" NODE="27:1.0.1.1.23.9.507" TYPE="SUBJGRP">
<HEAD>Filing of Notice and Removal</HEAD>


<DIV8 N="§ 28.190" NODE="27:1.0.1.1.23.9.507.2" TYPE="SECTION">
<HEAD>§ 28.190   Notice, TTB Form 5110.30.</HEAD>
<P>Notice of shipment of distilled spirits for export, for use as supplies on vessels or aircraft, for deposit in a foreign-trade zone, or for deposit in a customs bonded warehouse, shall be prepared by the exporter on TTB Form 5110.30, in accordance with the instructions on the form.
</P>
<SECAUTH TYPE="N">(48 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.191" NODE="27:1.0.1.1.23.9.507.3" TYPE="SECTION">
<HEAD>§ 28.191   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 28.192" NODE="27:1.0.1.1.23.9.507.4" TYPE="SECTION">
<HEAD>§ 28.192   Packages of distilled spirits to be gauged.</HEAD>
<P>Except for spirits which may be tax determined on the basis of the original gauge, spirits in packages which are to be removed for export with benefit of drawback, shall be gauged by the distilled spirits plant proprietor prior to preparation of notice on TTB Form 5110.30. When spirits in packages are gauged, a package gauge record shall be prepared by the proprietor, as provided in 27 CFR part 19, and a copy of the package gauge record shall be attached to each copy of TTB Form 5110.30 and considered a part of the claim.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0250 and 1512-0199)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.193" NODE="27:1.0.1.1.23.9.507.5" TYPE="SECTION">
<HEAD>§ 28.193   Export marks.</HEAD>
<P>In addition to the marks and brands required to be placed on packages or other bulk containers and cases under the provisions of part 19 of this chapter, the exporter shall mark the word “Export” on the Government side of each case or Government head of each container before removal for export, for use on vessels or aircraft, or for transfer to a foreign-trade zone or a customs bonded warehouse.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981]


</CITA>
</DIV8>


<DIV8 N="§§ 28.194-28.195" NODE="27:1.0.1.1.23.9.507.6" TYPE="SECTION">
<HEAD>§§ 28.194-28.195   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 28.195b" NODE="27:1.0.1.1.23.9.507.7" TYPE="SECTION">
<HEAD>§ 28.195b   Claims on spirits tax determined on and after January 1, 1980.</HEAD>
<P>(a) <I>Preparation.</I> Claims for drawback of tax on spirits tax determined on and after January 1, 1980, and withdrawn for any purpose authorized by § 28.171, shall be prepared in duplicate by the bottler or packager on parts II and III of TTB Form 5110.30.
</P>
<P>(b) <I>Supporting documents.</I> Each claim shall be supported by an invoice, bill of lading or other document which identifies the date of tax determination, unless the bill of lading required by § 28.250 identifies this date. Additional supporting documents are required if the claim covers distilled spirits products on which the claimed drawback rate exceeds the rate of tax imposed by 26 U.S.C. 5001 or 7652 on each proof gallon or part thereof of distilled spirits produced in or imported into the United States (e.g., a product containing alcoholic flavoring materials on which drawback has been claimed by the manufacturer of the material under 26 U.S.C. 5131-5134). For each such product, the additional supporting documents shall consist of a copy of each related dump and batch record, package gauge record as prescribed in 27 CFR part 19, and/or bottling and packaging record. The appropriate TTB officer may also require these or other supporting documents for any distilled spirits product.
</P>
<P>(c) <I>Filing.</I> One copy of the claim, with supporting documents, if required, shall be filed with the appropriate TTB officer. The bottler or packager shall retain the other copy on file.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0198)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. ATF-212, 50 FR 34123, Aug. 23, 1985; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.196" NODE="27:1.0.1.1.23.9.507.8" TYPE="SECTION">
<HEAD>§ 28.196   Consignment, shipment, and delivery.</HEAD>
<P>The consignment, shipment, and delivery of distilled spirits removed under this subpart for export, use on vessels or aircraft, transfer to a customs bonded warehouse, or transfer to a foreign-trade zone, shall be in accordance with the applicable provisions of subpart M of this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1336, 84 Stat. 1965; 26 U.S.C. 5062, 5066)
</SECAUTH>
<CITA TYPE="N">[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 28.197" NODE="27:1.0.1.1.23.9.507.9" TYPE="SECTION">
<HEAD>§ 28.197   Return of spirits withdrawn for export with benefit of drawback.</HEAD>
<P>When notice is filed by an exporter as provided in § 28.198, spirits on which the tax has been paid or determined, and which were withdrawn especially for export with benefit of drawback as provided in § 28.171, but which spirits have not been laden for export, laden for use, or deposited in a customs bonded warehouse or foreign-trade zone, may for good cause be returned under the applicable provisions of this part and 27 CFR part 19:
</P>
<P>(a) To the bonded premises of the distilled spirits plant for purposes authorized under 26 U.S.C.; or
</P>
<P>(b) To a wholesale liquor dealer; or
</P>
<P>(c) To a taxpaid storeroom.
</P>
<FP>The export marks on spirits returned under this section shall be removed by obliteration, relabeling or recasing.
</FP>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. ATF-206, 50 FR 23956, June 7, 1985; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.198" NODE="27:1.0.1.1.23.9.507.10" TYPE="SECTION">
<HEAD>§ 28.198   Notice of return.</HEAD>
<P>If an exporter desires to return spirits to a distilled spirits plant, wholesale liquor dealer or taxpaid storeroom, as provided in § 28.197, he shall file a notice, executed under the penalties of perjury, with the appropriate TTB officer. The notice shall be prepared in triplicate for submission to the customs official as required in § 28.199. The notice shall show the:
</P>
<P>(a) Name, address, and plant number of the distilled spirits plant which packaged or bottled the spirits;
</P>
<P>(b) Date and serial number of the TTB Form 5110.30 on which the spirits were withdrawn;
</P>
<P>(c) Present location of the spirits to be returned;
</P>
<P>(d) Number, size and identification of the containers;
</P>
<P>(e) Proof of spirits;
</P>
<P>(f) Reason for the return; and
</P>
<P>(g) Planned disposition of the returned spirits.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0206)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended at T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.199" NODE="27:1.0.1.1.23.9.507.11" TYPE="SECTION">
<HEAD>§ 28.199   Responsibility for return of spirits withdrawn for export with benefit of drawback.</HEAD>
<P>The exporter shall be responsible for arranging the return of the spirits under this subpart to the proprietor or wholesale liquor dealer who will receive them. The exporter or his agent shall submit the original and copies of the notice required by § 28.198 to the appropriate customs official. If the spirits are returned before TTB Form 5110.30 has been filed with the customs official, the exporter shall submit Form 5110.30 with the notice. The customs officer shall, if the spirits are eligible for return under § 28.197, accept the notice as authority for the return of the spirits to the premises identified in the notice. The customs official shall acknowledge receipt on the notice, retain a copy, and return the original and one copy of the notice to the exporter. The exporter shall retain the copy of the notice and file the original of the notice with the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.23.10" TYPE="SUBPART">
<HEAD>Subpart J [Reserved]</HEAD>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.23.11" TYPE="SUBPART">
<HEAD>Subpart K—Exportation of Wine With Benefit of Drawback</HEAD>


<DIV8 N="§ 28.211" NODE="27:1.0.1.1.23.11.508.1" TYPE="SECTION">
<HEAD>§ 28.211   General.</HEAD>
<P>Wines manufactured, produced, bottled in bottles packed in containers, or packaged in casks or other bulk containers in the United States on which an internal revenue tax has been paid or determined, and which are filled on premises qualified under this chapter to package or bottle wines, may, subject to this part, be:
</P>
<P>(a) Exported;
</P>
<P>(b) Laden for use on the vessels or aircraft described in § 28.21; or
</P>
<P>(c) Transferred to and deposited in a foreign-trade zone for exportation or for storage pending exportation.
</P>
<FP>On receipt by the appropriate TTB officer of required evidence of exportation, lading for use, or transfer, there shall be allowed a drawback equal in amount to the tax found to have been paid or determined on the wines.
</FP>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); Sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-51, 43 FR 24245, June 2, 1978; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.212" NODE="27:1.0.1.1.23.11.508.2" TYPE="SECTION">
<HEAD>§ 28.212   Persons authorized.</HEAD>
<P>Persons who have qualified under this chapter as proprietors of distilled spirits plants, bonded wine cellars, or taxpaid wine bottling houses, and persons who are wholesale liquor dealers (as defined in § 31.32 of this chapter) and have registered as a wholesale liquor dealer in accordance with part 31 of this chapter, are authorized to remove wines under the provisions of this subpart.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5062)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37406, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 28.213" NODE="27:1.0.1.1.23.11.508.3" TYPE="SECTION">
<HEAD>§ 28.213   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 28.214" NODE="27:1.0.1.1.23.11.508.4" TYPE="SECTION">
<HEAD>§ 28.214   Notice and claim, Form 5120.24.</HEAD>
<P>Claim for allowance of drawback of internal revenue taxes on wines removed under the provisions of § 28.211 and § 28.212, shall be prepared by the exporter on Form 5120.24, in quadruplicate: <I>Provided,</I> That where the withdrawal is for use on aircraft, an extra copy, marked “Consignee's Copy”, shall be prepared. Each Form 5120.24 shall be given, by the exporter, a serial number beginning with “1” for the first day of January of each year and running consecutively thereafter to December 31, inclusive.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 72 Stat. 1336; 19 U.S.C. 1309, 26 U.S.C. 5062)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004; T.D. TTB-146, 82 FR 1134, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.215" NODE="27:1.0.1.1.23.11.508.5" TYPE="SECTION">
<HEAD>§ 28.215   Certificate of tax determination, Form 5120.20.</HEAD>
<P>Every claim for drawback of tax on Form 5120.24 shall be supported by a certificate, Form 5120.20, which shall be executed, in duplicate, (a) by the person who withdrew the wine from bonded premises on tax determination, certifying that all taxes have been properly determined on such wine, or (b) where the wine was bottled or packaged after tax determination, by the person who did such bottling or packaging, certifying that the wines so bottled or packaged were received in taxpaid status and specifying from whom they were so received. The appropriate TTB officer may require other evidence of tax payment whenever such officer deems it necessary. The exporter is responsible for securing Form 5120.20, properly executed, and submitting the original of such form with the claim. The exporter shall retain the copy of Form 5120.20 for his files.
</P>
<SECAUTH TYPE="N">(72 Stat. 1336; 26 U.S.C. 5062)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.216" NODE="27:1.0.1.1.23.11.508.6" TYPE="SECTION">
<HEAD>§ 28.216   Export marks.</HEAD>
<P>In addition to the marks and brands required to be placed on packages or other bulk containers and cases under the provisions of part 24 of this chapter, the exporter shall mark the word “Export” on the Government side of each case or Government head of each container before removal for export, for use on vessels or aircraft, or for transfer to a foreign-trade zone.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981, as amended by T.D. ATF-299, 55 FR 25034, June 19, 1990; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. TTB-196, 89 FR 87945, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 28.217" NODE="27:1.0.1.1.23.11.508.7" TYPE="SECTION">
<HEAD>§ 28.217   Consignment, shipment, and delivery.</HEAD>
<P>The consignment, shipment, and delivery of wines removed under this subpart shall be made under the provisions of subpart M of this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1336; 26 U.S.C. 5062)


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.218" NODE="27:1.0.1.1.23.11.508.8" TYPE="SECTION">
<HEAD>§ 28.218   Disposition of Forms 1582-A (5120.24).</HEAD>
<P>On removal of the wines from the premises, the exporter shall forward one copy of Form 1582-A (5120.24) to the appropriate TTB officer, retain one copy for his files, and deliver the original and remaining copy to the officer to whom the shipment is consigned, or in whose care it is shipped, as required by subpart M of this part. Where the shipment is for delivery for use on aircraft, the copy marked “Consignee's Copy”, provided for in § 28.214, shall be forwarded to the airline company at the airport.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.219" NODE="27:1.0.1.1.23.11.508.9" TYPE="SECTION">
<HEAD>§ 28.219   Return of wine withdrawn for export with benefit of drawback.</HEAD>
<P>When notice is filed by an exporter as provided in § 28.220, wine on which the tax has been paid or determined, and which was withdrawn especially for export with benefit of drawback as provided in § 28.211, but which wine has not been laden for export, laden for use, or deposited in a foreign-trade zone, may for good cause be returned under the applicable provisions of this part and 27 CFR part 24:
</P>
<P>(a) To a taxpaid storeroom at a bonded wine cellar; or
</P>
<P>(b) To a wholesale liquor dealer.
</P>
<FP>The export marks on wines returned under this section shall be removed from the containers.
</FP>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended by T.D. ATF-344, 58 FR 40355, July 28, 1993; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004; T.D. TTB-196, 89 FR 87945, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 28.220" NODE="27:1.0.1.1.23.11.508.10" TYPE="SECTION">
<HEAD>§ 28.220   Notice of return.</HEAD>
<P>If an exporter desires to return wine to a bonded wine cellar or wholesale liquor dealer as provided in § 28.219, he shall file a notice, executed under the penalties of perjury, with the appropriate TTB officer. The notice shall be prepared in triplicate for submission to the customs official as required in § 28.220a. The notice shall show the:
</P>
<P>(a) Name, address, and registration number of the bonded wine cellar from which withdrawn;
</P>
<P>(b) Date and serial number of the Form 1582-A (5120.24) on which the wine was withdrawn;
</P>
<P>(c) Present location of the wine to be returned;
</P>
<P>(d) Number, size and identification of the containers;
</P>
<P>(e) Total wine gallons for each tax class of wine; and
</P>
<P>(f) Reason for the return.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0292)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985; 50 FR 23410, June 4, 1985, as amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.220a" NODE="27:1.0.1.1.23.11.508.11" TYPE="SECTION">
<HEAD>§ 28.220a   Responsibility for return of wine withdrawn for export with benefit of drawback.</HEAD>
<P>The exporter shall be responsible for arranging the return of wine under this subpart to the proprietor or wholesale liquor dealer receiving the wine. The exporter or his agent shall submit the original and copies of the notice required by § 28.220 to the appropriate customs official. If the wine is returned before Form 1582-A (5120.24) has been filed with the customs official, the exporter shall submit TTB Form 1582-A with the notice. The customs officer shall, if the wine is eligible for return under § 28.219, accept the notice as authority for the return of the wine to the premises identified in the notice. The customs officer shall acknowledge receipt of the notice, retain a copy, and return the original and one copy of the notice to the exporter. The exporter shall retain the copy and file the original of the notice with the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.23.12" TYPE="SUBPART">
<HEAD>Subpart L—Exportation of Beer With Benefit of Drawback</HEAD>


<DIV8 N="§ 28.221" NODE="27:1.0.1.1.23.12.508.1" TYPE="SECTION">
<HEAD>§ 28.221   General.</HEAD>
<P>Beer brewed or produced in the United States and on which the internal revenue tax has been paid may, subject to this part, be:
</P>
<P>(a) Exported;
</P>
<P>(b) Delivered for use as supplies on the vessels and aircraft described in § 28.21; or
</P>
<P>(c) Transferred to and deposited in a foreign-trade zone for exportation or for storage pending exportation.
</P>
<FP>Claim for drawback of taxes found to have been paid may be filed only by the producing brewer or his duly authorized agent. On receipt by the appropriate TTB officer of required evidence of such exportation, delivery for use, or transfer, there shall be allowed a drawback equal in amount to the tax found to have been paid on such beer.
</FP>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 U.S.C. 1309, 81c, 26 U.S.C. 5055)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975. Redesignated and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.222" NODE="27:1.0.1.1.23.12.508.2" TYPE="SECTION">
<HEAD>§ 28.222   Claim, Form 1582-B (5130.6).</HEAD>
<P>Claim for allowance of drawback of internal revenue taxes on beer brewed or produced in the United States shall be prepared on Form 1582-B (5130.6), in quadruplicate, as required by this part. Each Form 1582-B (5130.6) shall be given, by the person initiating the form, a serial number beginning with “1” for the first day of January of each year and running consecutively thereafter to December 31, inclusive.
</P>
<SECAUTH TYPE="N">(72 Stat. 1335; 26 U.S.C. 5055)


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.223" NODE="27:1.0.1.1.23.12.508.3" TYPE="SECTION">
<HEAD>§ 28.223   Export marks.</HEAD>
<P>In addition to the marks and brands required to be placed on kegs, barrels, cases, crates or other packages under the provisions of part 25 of this chapter, the exporter shall mark the word “Export” on each container or case before removal for export, for use on vessels or aircraft, or for transfer to a foreign-trade zone.
</P>
<SECAUTH TYPE="N">(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5055))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981, as amended by T.D. ATF-224, 51 FR 7700, Mar. 5, 1986]


</CITA>
</DIV8>


<DIV7 N="508" NODE="27:1.0.1.1.23.12.508" TYPE="SUBJGRP">
<HEAD>Execution of Claims</HEAD>


<DIV8 N="§ 28.225" NODE="27:1.0.1.1.23.12.508.4" TYPE="SECTION">
<HEAD>§ 28.225   Removals of beer by brewer.</HEAD>
<P>Where a brewer removes taxpaid beer from the brewery or from its place of storage elsewhere for exportation, for lading for use as supplies on vessels or aircraft, or for deposit in a foreign-trade zone, he shall execute the notice and claim on Form 1582-B (5130.6). On removal of the beer for shipment the brewer shall file one copy of Form 1582-B with the appropriate TTB officer, retain one copy for his files, and immediately forward the original and one copy of the form:
</P>
<P>(a) In case of shipments for export or for use as supplies on vessels or aircraft, to the district director of customs at the port of export; or
</P>
<P>(b) In the case of shipments to the armed services of the United States for export, to the commanding or supply officer to whom the shipment is consigned; or
</P>
<P>(c) In the case of shipments to a foreign-trade zone, to the customs officer in charge of the zone.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 U.S.C. 1309, 81c, 26 U.S.C. 5055)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-85, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.226" NODE="27:1.0.1.1.23.12.508.5" TYPE="SECTION">
<HEAD>§ 28.226   Removals of beer by agent on behalf of brewer.</HEAD>
<P>Where proper power of attorney authorizing an agent to execute a claim on behalf of the brewer has been filed with the appropriate TTB officer, such agent may, for any of the purposes authorized in § 28.221, remove taxpaid beer from the brewery where produced or from its place of storage elsewhere, and execute the notice and claim on Form 1582-B (5130.6) on behalf of the brewer. On removal of the beer, such agent shall dispose of Form 1582-B in accordance with the applicable procedure set forth in § 28.225.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 U.S.C. 1309, 81c, 26 U.S.C. 5055)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975. Redesignated and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.227" NODE="27:1.0.1.1.23.12.508.6" TYPE="SECTION">
<HEAD>§ 28.227   Removals of beer by persons other than the brewer or agent of the brewer.</HEAD>
<P>Where there is a removal of taxpaid beer by a person other than the brewer or the agent of the brewer for any of the purposes authorized in § 28.221, such person shall execute the notice, only, on Form 1582-B (5130.6). Where the removal consists of the products of more than one brewer, separate Forms 1582-B shall be prepared for the products of each brewer. On removal of the beer for shipment such person shall forward two copies of Form 1582-B (5130.6) to the producing brewer, and immediately forward the original and one copy of the form as prescribed in § 28.225(a), (b), or (c), as the case may be. On receipt of the two copies of Form 1582-B (5130.6) from the exporter, the brewer shall, if he wishes to claim drawback on the beer covered thereby, execute the claim for drawback on both copies of the form, file one copy of the claim with the appropriate TTB officer, and retain the remaining copy for his files.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 U.S.C. 1309, 81c, 26 U.S.C. 5055)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975. Redesignated and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="509" NODE="27:1.0.1.1.23.12.509" TYPE="SUBJGRP">
<HEAD>Consignment, Shipment, and Delivery</HEAD>


<DIV8 N="§ 28.230" NODE="27:1.0.1.1.23.12.509.7" TYPE="SECTION">
<HEAD>§ 28.230   Consignment, shipment, and delivery.</HEAD>
<P>The consignment, shipment, and delivery of taxpaid beer removed under this subpart shall be made under the provisions of subpart M of this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1335; 26 U.S.C. 5055)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.23.13" TYPE="SUBPART">
<HEAD>Subpart M—Shipment or Delivery for Export</HEAD>


<DIV7 N="510" NODE="27:1.0.1.1.23.13.510" TYPE="SUBJGRP">
<HEAD>Consignment</HEAD>


<DIV8 N="§ 28.241" NODE="27:1.0.1.1.23.13.510.1" TYPE="SECTION">
<HEAD>§ 28.241   Shipment for export, or for use on vessels.</HEAD>
<P>All liquors and specially denatured spirits intended for export or liquors intended for use as supplies on vessels shall be consigned to the district director of customs at the port of exportation, or port of lading for supplies on vessels, except that when the shipment is for export to a contiguous foreign territory it shall be consigned to the foreign consignee at destination in care of the district director of customs at the port of export.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 28.242" NODE="27:1.0.1.1.23.13.510.2" TYPE="SECTION">
<HEAD>§ 28.242   Shipment for use on aircraft.</HEAD>
<P>(a) <I>Distilled spirits and wine.</I> All distilled spirits and wines intended for use on aircraft shall be consigned to the airline at the airport from which the aircraft will depart in international travel, in care of the district director of customs. On receipt of the distilled spirits or wines they shall be stored at the airport under customs custody until laden on aircraft.
</P>
<P>(b) <I>Beer.</I> Beer intended for use on aircraft shall be consigned to the district director of customs at the port of lading.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 72 Stat. 1362, 1380; 19 U.S.C. 1309, 26 U.S.C. 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1969, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 28.243" NODE="27:1.0.1.1.23.13.510.3" TYPE="SECTION">
<HEAD>§ 28.243   Shipment to armed services.</HEAD>
<P>On removal of distilled spirits, wines, or beer for export to the armed services of the United States, the shipment shall be consigned to the commanding officer or supply officer at the supply base or other place of delivery.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362) 


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.244" NODE="27:1.0.1.1.23.13.510.4" TYPE="SECTION">
<HEAD>§ 28.244   Shipment to manufacturing bonded warehouse.</HEAD>
<P>Distilled spirits and wines withdrawn for shipment to a manufacturing bonded warehouse shall be consigned to the proprietor of such warehouse in care of the customs officer in charge of the warehouse.
</P>
<SECAUTH TYPE="N">(72 Stat. 1362, 1380; 26 U.S.C. 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71725, Dec. 11, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 28.244a" NODE="27:1.0.1.1.23.13.510.5" TYPE="SECTION">
<HEAD>§ 28.244a   Shipment to a customs bonded warehouse.</HEAD>
<P>Distilled spirits and wine withdrawn for shipment to a customs bonded warehouse shall be consigned in care of the customs officer in charge of the warehouse.
</P>
<SECAUTH TYPE="N">(Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066); sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 28.245" NODE="27:1.0.1.1.23.13.510.6" TYPE="SECTION">
<HEAD>§ 28.245   Shipment to foreign-trade zone.</HEAD>
<P>Where distilled spirits (including specially denatured spirits), wines, or beer, are transferred to a foreign-trade zone for exportation or for storage pending exportation, the shipment shall be consigned to the Zone Operator in care of the customs officer in charge of the zone.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 72 Stat. 1362, 1380; 19 U.S.C. 81c, 26 U.S.C. 5214, 5362)


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.246" NODE="27:1.0.1.1.23.13.510.7" TYPE="SECTION">
<HEAD>§ 28.246   Delivery for shipment.</HEAD>
<P>The proprietor or exporter may deliver the shipment directly to the consignees designated in §§ 28.241 through 28.245, or he may deliver it to a carrier for transportation and delivery to such consignees, or, when the exportation is to a contiguous foreign country, to the foreign consignee.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, as amended, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[T.D. 7002, 34 FR 1599, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.247" NODE="27:1.0.1.1.23.13.510.8" TYPE="SECTION">
<HEAD>§ 28.247   Change in consignee.</HEAD>
<P>Where a change of consignee is desired after the liquors (including specially denatured spirits) have been removed from the shipping premises, the exporter shall notify the appropriate officer to whom the shipment is required by §§ 28.241-28.245 to be consigned or in whose care it is required to be shipped, and forward a copy of such notification to the appropriate TTB officer. Such notice shall identify the withdrawal or claim form, as the case may be, covering the shipment.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[T.D. 7002, 34 FR 1599, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="511" NODE="27:1.0.1.1.23.13.511" TYPE="SUBJGRP">
<HEAD>Bills of Lading</HEAD>


<DIV8 N="§ 28.250" NODE="27:1.0.1.1.23.13.511.9" TYPE="SECTION">
<HEAD>§ 28.250   Bills of lading required.</HEAD>
<P>A copy of the export bill of lading covering transportation from the port of export to the foreign destination, or a copy of the through bill of lading to the foreign destination, if so shipped, covering the acceptance of the shipment by a carrier for such transportation, shall be obtained and filed by the claimant or exporter with the appropriate TTB officer. Where the shipment consists of distilled spirits for deposit in a customs bonded warehouse, or distilled spirits or wines, for deposit in a foreign-trade zone, with benefit of drawback, a copy of the transportation bill of lading covering the shipment shall be obtained and filed by the claimant or exporter with the appropriate TTB officer: <I>Provided,</I> That such transportation bill of lading will not be required when delivery is made directly to the foreign-trade zone or the customs bonded warehouse by the shipper. Bills of lading shall be signed by the carrier or by an agent of the carrier and shall contain the following minimum information:
</P>
<P>(a) As to spirits specially denatured spirits, and wines:
</P>
<P>(1) The name of the exporter (if different from the shipper),
</P>
<P>(2) The name and address of the consignee (foreign consignee in case of export or through bill of lading),
</P>
<P>(3) The number of packages or cases,
</P>
<P>(4) The serial number of the TTB Form 5100.11, 5110.30, or 5120.24, as the case may be, and 
</P>
<P>(5) The total quantity in wine gallons or liters,
</P>
<P>(b) As to beer:
</P>
<P>(1) The name of the shipper,
</P>
<P>(2) The name and address of the consignee (foreign consignee in case of export or through bill of lading), and
</P>
<P>(3) The number and size of containers.
</P>
<FP>Where a copy of an export bill of lading or a copy of the through bill of lading is required and is not obtainable, a certificate given by an agent of such carrier, as prescribed in § 28.253, may be procured and transmitted by the claimant or exporter to the appropriate TTB officer.
</FP>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, 1335, 1336, as amended, 1362, 1380, (26 U.S.C. 5053, 5055, 5062, 5214, 5362); sec. 3(a), Pub. L. 91-659, 84 Stat. 1965 (26 U.S.C. 5066))
</SECAUTH>
<CITA TYPE="N">[T.D. 7002, 34 FR 1599, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 28.250, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 28.251" NODE="27:1.0.1.1.23.13.511.10" TYPE="SECTION">
<HEAD>§ 28.251   Railway express receipts.</HEAD>
<P>Where the exportation is to a contiguous foreign country and the shipment is by railway express, a receipt issued by the railway express agency may be accepted in lieu of an export bill of lading if the receipt furnishes all of the information required in an export bill of lading.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362)


</SECAUTH>
</DIV8>


<DIV8 N="§ 28.252" NODE="27:1.0.1.1.23.13.511.11" TYPE="SECTION">
<HEAD>§ 28.252   Air express or freight bills of lading.</HEAD>
<P>Where the exportation is made by air express or air freight, a bill of lading issued by the conveying airline is considered for the purpose of this part to be an export bill of lading if it otherwise conforms to the requirements of § 28.250.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[T.D. 7002, 34 FR 1599, Feb. 1, 1969, as amended by 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.253" NODE="27:1.0.1.1.23.13.511.12" TYPE="SECTION">
<HEAD>§ 28.253   Certificate by export carrier.</HEAD>
<P>A certificate, executed under the penalties of perjury, by an agent or representative of the export carrier, showing actual exportation of the liquors (including specially denatured spirits) may be furnished by an exporter as evidence of exportation. The certificate shall contain a description of the shipment, including the serial number of the withdrawal form, or the claim and entry form, as the case may be, the name of the exporter, the name of the consignee, the date received, the place where received by such carrier, and the name of the carrier from which received.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.23.14" TYPE="SUBPART">
<HEAD>Subpart N—Proceedings at Ports of Export</HEAD>


<DIV8 N="§ 28.261" NODE="27:1.0.1.1.23.14.512.1" TYPE="SECTION">
<HEAD>§ 28.261   Notice to district director of customs.</HEAD>
<P>On arrival at the port of exportation, of distilled spirits (including specially denatured spirits), wines, or beer, withdrawn or shipped for exportation or for use on vessels or aircraft, the exporter or his agent shall immediately notify the director of the port. At the same time, or prior thereto, the exporter or his agent shall file with the director two copies of the application, claim, or notice, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, covering the shipment: <I>Provided,</I> That where the shipment is for direct exportation, such forms shall be filed at least six hours prior to lading.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 28.261, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 28.262" NODE="27:1.0.1.1.23.14.512.2" TYPE="SECTION">
<HEAD>§ 28.262   Delay in lading at port.</HEAD>
<P>If, on arrival of a shipment withdrawn for export without payment of tax or free of tax, the exporting vessel is not prepared to receive the shipment, the district director of customs may permit such shipment to remain in possession of a carrier for a period not exceeding 30 days. Storage elsewhere for a like cause, and not exceeding the same period, may be approved by the district director of customs. In the event of further delay, the facts shall be reported to the appropriate TTB officer, who shall issue appropriate instructions concerning the disposition of the shipment.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1362, 1380; 26 U.S.C. 5053, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.263" NODE="27:1.0.1.1.23.14.512.3" TYPE="SECTION">
<HEAD>§ 28.263   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 28.264" NODE="27:1.0.1.1.23.14.512.4" TYPE="SECTION">
<HEAD>§ 28.264   Lading for exportation.</HEAD>
<P>On receipt of the notification required in § 28.261, the district director of customs shall deliver both copies of the application, claim, or notice, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, covering the shipment, together with any forms which may be attached thereto, to a customs officer for inspection and supervision of lading. Such shipment shall be subject to the same requirements for inspection and supervision of lading at the port of exportation as may be required by Customs Regulations (19 CFR chapter I) in the case of similar shipments of imported merchandise to be exported in customs bond. When an inspection of the shipment is made before it is laden on board the exporting carrier and such inspection discloses any discrepancy, the customs officer shall make note of the nature and extent of the discrepancy on each copy of the application, claim, or notice, TTB Form 5110.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, and where the discrepancy involves one or more packages of distilled spirits or wine, he shall prepare customs Form 6001 in accordance with the instructions in § 28.291, and attach the original and copy of customs Form 6001 to the original and copy of the appropriate transaction form. The forms shall be disposed of according to the instructions thereon.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended, 1336, as amended, 1362, as amended, 1380, as amended (26 U.S.C. 5053, 5055, 5062, 5214, 5362))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 28.264, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 28.265" NODE="27:1.0.1.1.23.14.512.5" TYPE="SECTION">
<HEAD>§ 28.265   Evidence of fraud.</HEAD>
<P>If the customs inspection discloses evidence of fraud, the customs officer shall detain the merchandise and notify the district director of customs who shall report the facts forthwith to the appropriate TTB officer. The appropriate TTB officer shall make investigation and take such action as the facts may warrant. Where the detained merchandise has been withdrawn for transfer and deposit in a manufacturing bonded warehouse, the merchandise shall be deemed not to have been deposited in said warehouse, and the designated officer shall hold in abeyance the processing of TTB Form 5100.11 until advised by the district director of customs that the detained merchandise may be entered for deposit. Where the detained merchandise has been withdrawn or entered for deposit in a foreign-trade zone or a customs bonded warehouse, it shall be deemed to not have been deposited in the zone or the warehouse and the customs officer shall hold in abeyance the processing of the application, notice, or claim, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, and Zone Form D, until advised by the district director of customs that the detained merchandise may be entered for deposit.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380, 84 Stat. 1965; 19 U.S.C. 81c, 26 U.S.C. 5053, 5055, 5062, 5214, 5362, 5066)
</SECAUTH>
<CITA TYPE="N">[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71725, Dec. 11, 1979; T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.266" NODE="27:1.0.1.1.23.14.512.6" TYPE="SECTION">
<HEAD>§ 28.266   Release of detained merchandise.</HEAD>
<P>When any merchandise has been detained under the provisions of § 28.265, the district director of customs shall not release such merchandise until he is advised so to do by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.267" NODE="27:1.0.1.1.23.14.512.7" TYPE="SECTION">
<HEAD>§ 28.267   Exportation from interior port.</HEAD>
<P>Where a shipment made under this part is to be exported to a contiguous foreign country through a frontier port, and it is desired to avoid the delay of customs inspection at such port, the shipment may, subject to approval of the district director of customs, be entered for exportation at an interior customs port. Subject to such approval, the inspection and supervision of lading, and the affixing of customs seals, shall be done by a customs officer in accordance with the provisions of the customs regulations regulations (19 CFR chapter I). On completion of the lading, the seals shall be affixed and the customs officer shall execute the certificate of lading on both copies of the application, notice, or claim, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6) or 1689 (5130.12), as the case may be, and forward them, with attachments (if any), to the district director of customs at the interior port of entry. The district director of customs shall forward both copies of the form, with attachments (if any), to the customs officer at the frontier port. When the customs officer at the frontier port is satisfied that the shipment as described on the appropriate form has been exported, he shall execute his certificate on both copies of the form and return them with attachments (if any), to the district director of customs at the interior port of entry.
</P>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004. T.D. TTB-196, 89 FR 87945, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 28.268" NODE="27:1.0.1.1.23.14.512.8" TYPE="SECTION">
<HEAD>§ 28.268   Receipt for liquors for use on vessels or aircraft.</HEAD>
<P>Where liquors are withdrawn or removed for use on vessels or aircraft, the exporter shall procure and forward to the appropriate TTB officer, a receipt executed under the penalties of perjury by the master or other authorized officer of the vessel, steamship company, or airline, as the case may be. The receipt shall give the number of containers, the serial numbers of the containers (if any), and the quantity received, and shall show that the liquors are in customs custody and have been or will be laden on board the vessel or aircraft, that they will be lawfully used on board the vessel or aircraft, and that no portion of the shipment has been or will be unladen in the United States or any of its territories or possessions. A receipt is not required, in the case of any shipment for use on vessels, when the liquors are laden on vessels of war, or, in cases other than supplies for vessels employed in the fisheries, where the amount of the tax on the liquors does not exceed $200. In the case of supplies for vessels employed in the fisheries, compliance with the provisions of § 28.22 is also required.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, as amended, 1362, 1380; 19 U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[T.D. 7002, 34 FR 1600, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.269" NODE="27:1.0.1.1.23.14.512.9" TYPE="SECTION">
<HEAD>§ 28.269   Certification by district director of customs.</HEAD>
<P>(a) <I>Exportation.</I> When the district director of customs is satisfied that merchandise described on the application, notice, or claim, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, has been laden and cleared for export, he shall execute his certificate of lading and clearance on both copies of the form.
</P>
<P>(b) <I>Distilled spirits and wines as supplies on vessels and aircraft.</I> When the district director of customs is satisfied that the distilled spirits and wines described on TTB Form 5100.11, 5110.30, or 1582-A (5120.24), as the case may be, have been duly laden for use on vessels and aircraft, and that proper accounting for such spirits or wines has been submitted to him as required by this part, he shall execute his certificate of lading for use on both copies of the form. 
</P>
<P>(c) <I>Disposition of forms.</I> After executing his certificate, the district director of customs shall forward the original of TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, with attachments (if any), to the appropriate TTB officer designated on the form, and retain the remaining copy, with any attached forms, for his files.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 28.269, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV7 N="512" NODE="27:1.0.1.1.23.14.512" TYPE="SUBJGRP">
<HEAD>Receipt by Armed Services</HEAD>


<DIV8 N="§ 28.275" NODE="27:1.0.1.1.23.14.512.10" TYPE="SECTION">
<HEAD>§ 28.275   Receipt by armed services.</HEAD>
<P>When liquors which have been withdrawn or removed for export to the armed services of the United States are received at the supply base or other designated place of delivery, the officer to whom consigned, or other authorized supply officer, at the supply base or other place of delivery shall enter the quantity of liquors received on both copies of the application, notice, or claim, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be. After signing the form, he shall forward the original with attachments, if any, to the appropriate TTB officer designated on the form, and retain the other copy for his records.
</P>
<SECAUTH TYPE="N">(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="513" NODE="27:1.0.1.1.23.14.513" TYPE="SUBJGRP">
<HEAD>Lading for Use on Aircraft</HEAD>


<DIV8 N="§ 28.280" NODE="27:1.0.1.1.23.14.513.11" TYPE="SECTION">
<HEAD>§ 28.280   Distilled spirits and wines.</HEAD>
<P>When an airline desires to withdraw distilled spirits or wines from its stock being held at the airport under customs custody, for use on a particular aircraft, a requisition in triplicate shall be prepared for presentation to the customs officer. The requisition shall show the flight number, the registry number of the aircraft on which the distilled spirits or wines are to be laden, the country for which the aircraft is to be cleared, the date of departure of the aircraft, and the brand, kind, and quantity of distilled spirits or wines. Where the distilled spirits or wines are contained in kits which have been previously prepared while under customs custody, the kit number shall also be shown on the requisition. Where the kits are not prepared and the distilled spirits or wines are withdrawn for direct lading on aircraft, the requisition shall be serially numbered in lieu of the insertion of the kit number. When the distilled spirits or wines are withdrawn and laden aboard the aircraft, the lading shall be verified by the customs officer by an appropriate stamp or notation on the requisition. One copy of the requisition shall be retained by the customs officer who certifies to the lading for attachment to the outgoing manifest. The other two copies shall be delivered to the airline which shall retain both copies until the return of the flight. In case any of the distilled spirits or wines are removed from the aircraft on its return, they shall be returned to customs custody, appropriate notation made on both copies of the requisition retained by the airline and one copy shall be delivered to the customs officer for attachment to the incoming manifest. The remaining copy shall be retained by the airline.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0384)
</APPRO>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 72 Stat. 1336, 1362, 1380; 19 U.S.C. 1309, 26 U.S.C. 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 28.281" NODE="27:1.0.1.1.23.14.513.12" TYPE="SECTION">
<HEAD>§ 28.281   Certificate of use for distilled spirits and wines.</HEAD>
<P>When all of the distilled spirits or wines represented by a single application, notice, or claim, TTB Form 5100.11, 5110.30, or 1582-A (5120.24), as the case may be, have been withdrawn from customs custody and laden and used on aircraft, the airline shall prepare a certificate of use on which are itemized all the requisitions pertaining to such distilled spirits or wines. The certificate shall be executed under the penalties of perjury by an officer of the airline and shall show the name of the exporter, the entry number, the brand and kind of distilled spirits or wines, and the number of bottles to be accounted for; and, as to each requisition, the requisition (or kit) number, the date laden, the registry number of the aircraft, the country for which the aircraft was cleared, and the number of bottles used. When completed, the certificate shall be presented to the customs officer at the airport who shall then execute his certificate on both copies of the appropriate application, notice, or claim, TTB Form 5100.11, 5110.30, or 1582-A (5120.24), as the case may be, noting thereon any exception, such as shortages or breakage. The customs officer shall then attach the certificate of use to the copy of the appropriate form and forward both copies of the form to the district director of customs.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 72 Stat. 1336, 1362, 1380; 19 U.S.C. 1309, 26 U.S.C. 5062, 5214, 5362)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 28.281, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 28.282" NODE="27:1.0.1.1.23.14.513.13" TYPE="SECTION">
<HEAD>§ 28.282   Beer.</HEAD>
<P>When beer has been laden on board the aircraft for use as supplies, the customs officer shall execute his certificate on both copies of the Form 1582-B (5130.6) or Form 1689 (5130.12), as the case may be, forward the original to the appropriate TTB officer designated on the form, and retain the copy for his files.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 72 Stat. 1334, 1335; 19 U.S.C. 1309, 26 U.S.C. 5053, 5055)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="514" NODE="27:1.0.1.1.23.14.514" TYPE="SUBJGRP">
<HEAD>Receipt in Manufacturing Bonded Warehouse</HEAD>


<DIV8 N="§ 28.285" NODE="27:1.0.1.1.23.14.514.14" TYPE="SECTION">
<HEAD>§ 28.285   Receipt in manufacturing bonded warehouse.</HEAD>
<P>On receipt of the distilled spirits or wines, the related TTB Form 5100.11 (with any attachments), such inspection as is necessary will be made to establish that the shipment corresponds with its description on TTB Form 5100.11 (and any attachments) and customs Form 6001 will be prepared according to § 28.291. Any discrepancy disclosed by the inspection and gauge will be noted on each copy of TTB Form 5100.11. When the shipment corresponds with the description of TTB Form 5100.11 (and any attachments), the certificate of deposit will be executed on both copies of TTB Form 5100.11 and the original of TTB Form 5100.11 (and any attachments) and the original of his customs Form 6001 will be forwarded to the appropriate TTB officer. The remaining copies shall be kept on file.
</P>
<SECAUTH TYPE="N">(Sec. 201. Pub. L. 85-859, 72 Stat. 1362, as amended, 1380, as amended (26 U.S.C. 5214, 5362))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="515" NODE="27:1.0.1.1.23.14.515" TYPE="SUBJGRP">
<HEAD>Receipt in Customs Bonded Warehouse</HEAD>


<DIV8 N="§ 28.286" NODE="27:1.0.1.1.23.14.515.15" TYPE="SECTION">
<HEAD>§ 28.286   Receipt in customs bonded warehouse.</HEAD>
<P>On receipt of the distilled spirits or wine and the related TTB Form 5100.11 or 5110.30 as the case may be, the customs officer in charge of the customs bonded warehouse shall make such inspection as is necessary to establish to his satisfaction that the shipment corresponds with the description thereof on the appropriate form. The customs officer shall note on each copy of the Form 5100.11 or 5110.30, as the case may be, any deficiency in quantity or discrepancy between the merchandise inspected and that described on the form. Where the inspection discloses no loss, or where a loss is disclosed and there is no evidence to indicate fraud, the officer shall execute his certificate of deposit on both copies of the form, forward the original as required by the instructions on the form, and retain the remaining copy for his files.
</P>
<SECAUTH TYPE="N">(Sec. 3(a), Pub. L. 91-659, 84 Stat. 1965 (26 U.S.C. 5066); sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="516" NODE="27:1.0.1.1.23.14.516" TYPE="SUBJGRP">
<HEAD>Receipt in Foreign-Trade Zone</HEAD>


<DIV8 N="§ 28.290" NODE="27:1.0.1.1.23.14.516.16" TYPE="SECTION">
<HEAD>§ 28.290   Receipt in foreign trade zone.</HEAD>
<P>On receipt at the zone, the shipment shall be inspected by the customs officer in charge of the zone who shall determine if the shipment agrees with the description thereof on the application, notice, or claim, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be. If the customs officer regauges spirits or wine in the course of his inspection, he shall prepare customs Form 6001 according to § 28.291. The customs officer shall note on both copies of the TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be any deficiency in quantity or discrepancy between the merchandise inspected or gauged and that described in the form. Where the inspection or gauge discloses no loss, or where a loss is disclosed by such inspection or gauge and there is no evidence to indicate fraud, the officer shall execute his certificate on both copies of the form covering the deposit, and forward to the appropriate TTB officer:
</P>
<P>(a) Original of the deposit from (with any attachments); and
</P>
<P>(b) Original of the officer's customs Form 6001, if any. The remaining copy of the deposit form (with any attachments), and the copy of any customs Form 6001, shall be retained by the customs officer for his files.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended (19 U.S.C. 81c); Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1362, as amended, 1380, as amended (26 U.S.C. 5062, 5214, 5362))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="517" NODE="27:1.0.1.1.23.14.517" TYPE="SUBJGRP">
<HEAD>Customs Gauge</HEAD>


<DIV8 N="§ 28.291" NODE="27:1.0.1.1.23.14.517.17" TYPE="SECTION">
<HEAD>§ 28.291   Customs Form 6001.</HEAD>
<P>When spirits or wines are gauged as required in § 28.264, § 28.285, or § 28.290, the customs officer shall prepare in duplicate customs Form 6001 to show:
</P>
<P>(a) Date;
</P>
<P>(b) Name of exporter;
</P>
<P>(c) Serial number and designation of the related transaction form;
</P>
<P>(d) Kind of liquor (show whether alcohol, whiskey, brandy, rum, gin, vodka, wine, etc.);
</P>
<P>(e) Name and registry number of producer;
</P>
<P>(f) If gauged under § 28.264, the location of the port;
</P>
<P>(g) If gauged under § 28.285, the location and number of the manufacturing bonded warehouse;
</P>
<P>(h) If gauged under 28.290, the location and number of the foreign-trade zone;
</P>
<P>(i) Kind and serial numbers or lot identification numbers of containers; and
</P>
<P>(j) For each container:
</P>
<P>(1) Proof of spirits, or percent of alcohol by volume in wine;
</P>
<P>(2) Proof gallons, if spirits;
</P>
<P>(3) Wine gallons, if wine; and
</P>
<P>(4) Variation from the last gauge (proof, percent of alcohol by volume or wine gallons).
</P>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="518" NODE="27:1.0.1.1.23.14.518" TYPE="SUBJGRP">
<HEAD>Alternate Procedures</HEAD>


<DIV8 N="§ 28.295" NODE="27:1.0.1.1.23.14.518.18" TYPE="SECTION">
<HEAD>§ 28.295   Exception for export of beer.</HEAD>
<P>The provisions of this subpart do not apply in the case of beer when the exporter or claimant obtains proof of exportation other than certification by the military or customs certification of lading and use under § 28.43. Brewers and exporters shall prepare Forms 1582-B (5130.6) or 1689 (5130.12), as applicable, to cover exportation of beer, but customs or military certification on them is not required when other proof of exportation is used.
</P>
<CITA TYPE="N">[T.D.ATF-224, 51 FR 7700, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="O" NODE="27:1.0.1.1.23.15" TYPE="SUBPART">
<HEAD>Subpart O—Losses</HEAD>


<DIV7 N="519" NODE="27:1.0.1.1.23.15.519" TYPE="SUBJGRP">
<HEAD>Distilled Spirits</HEAD>


<DIV8 N="§ 28.301" NODE="27:1.0.1.1.23.15.519.1" TYPE="SECTION">
<HEAD>§ 28.301   Loss of distilled spirits in transit.</HEAD>
<P>The tax on distilled spirits withdrawn without payment of tax under this part and which are lost during transportation from the bonded premises of the distilled spirits plant from which withdrawn to (a) the port of export, (b) the manufacturing bonded warehouse, (c) the vessel or aircraft, (d) the foreign-trade zone, or (e) the customs bonded warehouse, as the case may be, may be remitted if evidence satisfactory to the appropriate TTB officer establishes that such distilled spirits have not been unlawfully diverted, or lost by theft with connivance, collusion, fraud, or negligence on the part of the exporter, owner, consignor, consignee, bailee, or carrier or the employees or agents of any of them: <I>Provided,</I> That such remission in the case of loss of distilled spirits by theft shall only be allowed to the extent that the claimant is not indemnified against or recompensed in respect of the tax for such loss.
</P>
<SECAUTH TYPE="N">(72 Stat. 1323, as amended, 84 Stat. 1965; 26 U.S.C. 5008, 5066)
</SECAUTH>
<CITA TYPE="N">[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.302" NODE="27:1.0.1.1.23.15.519.2" TYPE="SECTION">
<HEAD>§ 28.302   Notice to exporter.</HEAD>
<P>If, on examination of the TTB Form 5100.11 (and attached gauge reports, if any) received from the officer required to certify the same under the provisions of subpart N of this part, the appropriate TTB officer is of the opinion that the distilled spirits reported lost had been unlawfully diverted, or had been lost by theft, he will advise the exporter by letter:
</P>
<P>(a) Of the identity of the containers;
</P>
<P>(b) Of the amount of the loss;
</P>
<P>(c) Of the circumstances indicating diversion or theft;
</P>
<P>(d) That allowance of the loss will be subject to filing (1) proof that such loss is allowable under the provisions of 26 U.S.C. 5008 (a) and (f), and (2) claim for remission of the tax on the spirits so lost; and
</P>
<P>(e) That action in respect of the loss will be withheld for a period of not more than 30 days to afford an opportunity to file such proof and claim.
</P>
<FP>In any case in which distilled spirits are lost during transportation, as described in § 28.301, whether by theft or otherwise, the appropriate TTB officer may require the exporter to file a claim for relief in accordance with § 28.303. When circumstances may warrant, extensions of additional time for submission of the proof and claim may be granted by the appropriate TTB officer. Where such proof and claim are not filed within the 30-day period, or such extensions as the appropriate TTB officer may grant, the tax on the distilled spirits diverted or lost will be assessed, or liability asserted against the bond covering the shipment, as the case may be.
</FP>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.303" NODE="27:1.0.1.1.23.15.519.3" TYPE="SECTION">
<HEAD>§ 28.303   Filing of claims.</HEAD>
<P>Claims, for remission of tax on the distilled spirits under § 28.301, shall be filed on 5620.8, in duplicate, and shall set forth the following:
</P>
<P>(a) Name, address, and capacity of the claimant;
</P>
<P>(b) Identification (including serial numbers, if any) and location of the container or containers from which the spirits were lost;
</P>
<P>(c) Quantity of spirits lost from each container, and the total quantity of spirits covered by the claim;
</P>
<P>(d) Total amount of tax for which the claim is filed;
</P>
<P>(e) The date, penal sum, and form number of the bond (as applicable) under which withdrawal and shipment were made;
</P>
<P>(f) Name, number, and address of the distilled spirits plant from which withdrawn without payment of tax;
</P>
<P>(g) Date of the loss (or, if not known, date of discovery), the cause thereof, and all the facts relative thereto;
</P>
<P>(h) Name of the carrier;
</P>
<P>(i) If lost by theft, facts establishing that the loss did not occur as the result of any connivance, collusion, fraud, or negligence on the part of the exporter, owner, consignor, consignee, bailee, or carrier, or the employees or agents of any of them;
</P>
<P>(j) In the case of a loss by theft, whether the claimant is indemnified or recompensed in respect of the tax on the spirits lost, and, if so, the amount and nature of such indemnity or recompense and the actual value of the spirits, less the tax.
</P>
<FP>The claim shall be executed by the exporter or his authorized agent under the penalties of perjury, and shall be supported (whenever possible) by affidavits of persons having personal knowledge of the loss. The appropriate TTB officer may require such further evidence as he deems necessary.
</FP>
<SECAUTH TYPE="N">(68A Stat. 749, 72 Stat. 1323; 26 U.S.C. 6065, 5008)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004; T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.304" NODE="27:1.0.1.1.23.15.519.4" TYPE="SECTION">
<HEAD>§ 28.304   Action on claim.</HEAD>
<P>The appropriate TTB officer will allow or disallow claims filed under § 28.303 in accordance with existing law and regulations. If the appropriate TTB officer finds that there has been a diversion or theft of the distilled spirits as the result of any connivance, collusion, fraud, or negligence on the part of the exporter, owner, consignor, consignee, bailee, or carrier, or the employees or agents of any of them, the tax on the distilled spirits diverted or lost by theft will be assessed, or liability asserted against the bond covering the shipment, as the case may be.
</P>
<SECAUTH TYPE="N">(68A Stat. 867, 72 Stat. 1323; 26 U.S.C. 7302, 5008)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="520" NODE="27:1.0.1.1.23.15.520" TYPE="SUBJGRP">
<HEAD>Specially Denatured Spirits</HEAD>


<DIV8 N="§ 28.310" NODE="27:1.0.1.1.23.15.520.5" TYPE="SECTION">
<HEAD>§ 28.310   Loss of specially denatured spirits in transit.</HEAD>
<P>Losses of specially denatured spirits withdrawn free of tax under this part during transportation from the bonded premises of the distilled spirits plant from which withdrawn to (a) the port of export, or (b) the foreign-trade zone, as the case may be, may be allowed if evidence satisfactory to the appropriate TTB officer establishes that such specially denatured spirits have not been unlawfully diverted, or lost by theft as the result of any connivance, collusion, fraud, or negligence on the part of the exporter, owner, consignor, consignee, bailee, or carrier, or the employees or agents of any of them. The giving of notice to the exporter, filing claims for allowance of loss, and action on the claims shall be, insofar as applicable, in accordance with the procedure prescribed in §§ 28.302 through 28.304.
</P>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="521" NODE="27:1.0.1.1.23.15.521" TYPE="SUBJGRP">
<HEAD>Wine</HEAD>


<DIV8 N="§ 28.315" NODE="27:1.0.1.1.23.15.521.6" TYPE="SECTION">
<HEAD>§ 28.315   Loss of wine in transit.</HEAD>
<P>The tax on wine withdrawn without payment of tax under this part and which is lost during transportation from the bonded wine cellar from which withdrawn to (a) the port of export, (b) the vessel or aircraft, (c) the foreign-trade zone, (d) the manufacturing bonded warehouse, or (e) the customs bonded warehouse, as the case may be, may be remitted if evidence satisfactory to the appropriate TTB officer establishes that such wine has not been unlawfully diverted, or lost by theft with connivance, collusion, fraud, or negligence on the part of the exporter, owner, consignor, consignee, bailee, or carrier or the employees or agents of any of them. However, the remission of tax on wine withdrawn without payment of tax under this part and which is lost while in transit may be allowed only to the extent that the claimant is not indemnified or recompensed for such tax.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 1382 (26 U.S.C. 5370, 5371))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.316" NODE="27:1.0.1.1.23.15.521.7" TYPE="SECTION">
<HEAD>§ 28.316   Notice to exporter.</HEAD>
<P>If, on examination of the TTB Form 5100.11 received from the officer required to certify the same under the provisions of subpart N, the appropriate TTB officer is of the opinion that wine reported lost had been unlawfully diverted, or had been lost by theft, he will advise the exporter by letter:
</P>
<P>(a) Of the identity of the containers;
</P>
<P>(b) Of the amount of the loss;
</P>
<P>(c) Of the circumstances indicating diversion or theft;
</P>
<P>(d) That allowance of the loss will be subject to filing (1) proof that such loss is allowable under the provisions of 26 U.S.C. 5370, and (2) claim for remission of the tax on the wine so lost; and
</P>
<P>(e) That action in respect of the loss will be withheld for a period of not more than 30 days to afford an opportunity to file such proof and claim.
</P>
<FP>In any case in which wines are lost during transportation, as described in § 28.315, whether by theft or otherwise, the appropriate TTB officer may require the exporter to file a claim for relief in accordance with § 28.317. Where circumstances may warrant, extensions of additional time for submission of the proof and claim may be granted by the appropriate TTB officer. Where such proof and claim are not filed within the 30-day period, or such extensions as the appropriate TTB officer may grant, the tax on the wine diverted or lost will be assessed, or liability asserted against the bond covering the shipment, as the case may be.
</FP>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5370))
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.317" NODE="27:1.0.1.1.23.15.521.8" TYPE="SECTION">
<HEAD>§ 28.317   Filing of claims.</HEAD>
<P>Claims, for remission of tax on the wine under § 28.315, shall be filed on Form 5620.8, in duplicate, and shall set forth the following:
</P>
<P>(a) The name, address, and capacity of the claimant;
</P>
<P>(b) The name, registry number, and location of the bonded wine cellar from which the wine was withdrawn;
</P>
<P>(c) The date, penal sum, and form number of the bond (as applicable) under which withdrawal and shipment was made;
</P>
<P>(d) Identification (including serial numbers, if any) and location of the container or containers from which the wine was lost;
</P>
<P>(e) The quantity of wine lost from each container, and the total quantity of wine covered by the claim;
</P>
<P>(f) The total amount of tax for which the claim is filed;
</P>
<P>(g) The date of the loss (or, if not known, date of discovery), the cause thereof, and all the facts relative thereto;
</P>
<P>(h) Name of the carrier;
</P>
<P>(i) If lost by theft, the facts establishing that the loss did not occur as the result of any connivance, collusion, fraud, or negligence on the part of the exporter, owner, consignor, consignee, bailee, or carrier, or the agents or employees of any of them; and
</P>
<P>(j) Whether the claimant is indemnified or recompensed in respect of the tax on the wine lost, and, if so, the amount and nature of such indemnity or recompense and the actual value of the wine, less the tax.
</P>
<FP>The claim shall be signed by the exporter or his authorized agent under the penalties of perjury, and shall be supported (whenever possible) by affidavits of persons having personal knowledge of the loss. The appropriate TTB officer may require such further evidence as he deems necessary.
</FP>
<SECAUTH TYPE="N">(68A Stat. 749, 72 Stat. 1381, 1382; 26 U.S.C. 6065, 5370, 5371)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004; T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.318" NODE="27:1.0.1.1.23.15.521.9" TYPE="SECTION">
<HEAD>§ 28.318   Action on claim.</HEAD>
<P>Action on claims filed under § 28.317 shall be, insofar as applicable, in accordance with the procedure prescribed in § 28.304.
</P>
<SECAUTH TYPE="N">(72 Stat. 1381; 26 U.S.C. 5370)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="522" NODE="27:1.0.1.1.23.15.522" TYPE="SUBJGRP">
<HEAD>Beer And Beer Concentrate</HEAD>


<DIV8 N="§ 28.320" NODE="27:1.0.1.1.23.15.522.10" TYPE="SECTION">
<HEAD>§ 28.320   Loss of beer and beer concentrate in transit.</HEAD>
<P>(a) <I>Losses not requiring inspection.</I> When, on receipt by the appropriate TTB officer of Form 1689 (5130.12) from the officer required to certify it under the provisions of subpart N of this part, it is disclosed that there has been a loss of beer or beer concentrate after removal from the brewery without payment of tax while in transit to the port of export, the vessel or aircraft, or the foreign-trade zone, and the report of the certifying officer shows that the loss was a normal one caused by casualty, leakage, or spillage, the appropriate TTB officer will allow the loss.
</P>
<P>(b) <I>Losses requiring inspection.</I> When it is disclosed that the loss of beer or beer concentrate is large or unusual, the appropriate TTB officer will conduct an investigation of the loss. When it is disclosed that the loss in transit has occurred by reason of casualty, leakage or spillage, credit for the loss will be allowed. When the investigation discloses evidence indicating that the loss resulted from theft or from fraud, the appropriate TTB officer will afford the brewer opportunity to submit a written explanation with respect to the causes of the loss before taking further action.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended, 1335, as amended (26 U.S.C. 5051, 5053, 5056))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7700, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3835, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.321" NODE="27:1.0.1.1.23.15.522.11" TYPE="SECTION">
<HEAD>§ 28.321   Tax assessed on loss not accounted for.</HEAD>
<P>The appropriate TTB officer shall make demand on the brewer for an amount equal to the tax which would be due on removal for consumption or sale, including penalties and interest, on; (a) The quantity of beer not satisfactorily accounted for, or (b) the quantity of beer used to produce the quantity of beer concentrate which is not satisfactorily accounted for.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended (26 U.S.C. 5051, 5053))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-224, 51 FR 7700, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3835, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="P" NODE="27:1.0.1.1.23.16" TYPE="SUBPART">
<HEAD>Subpart P—Action on Claims</HEAD>


<DIV8 N="§§ 28.331-28.332" NODE="27:1.0.1.1.23.16.523.1" TYPE="SECTION">
<HEAD>§§ 28.331-28.332   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 28.333" NODE="27:1.0.1.1.23.16.523.2" TYPE="SECTION">
<HEAD>§ 28.333   Claims for drawback.</HEAD>
<P>Where a claim for drawback of tax on distilled spirits or wines on TTB Form 5110.30 or 5120.24 is made, and in all cases where claim for drawback of tax on beer is made on Form 5130.6, the appropriate TTB officer shall, on receipt by him of the original of the claim properly executed by the appropriate customs official or armed services officer, as required by this part, examine the claim to determine that it has been properly completed. He shall then, on receipt of the evidence of exportation required by § 28.40, or of lading for use on vessels or aircraft required by § 28.41, or of deposit in a foreign-trade zone or a customs bonded warehouse as required by § 28.42, as the case may be, and, in the case of claims on Form 5120.24, the certificate of tax determination, Form 2605 (5120.20), allow the claim in the amount of the tax paid on the beer or the tax paid or determined on the distilled spirits or wines on which the claim is based and which were exported, laden as supplies on vessels or aircraft, or deposited in a foreign-trade zone or a customs bonded warehouse, as the case may be.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, 691, as amended, 48 Stat. 999, as amended, 72 Stat. 1335, 1336, 84 Stat. 1965; 19 U.S.C. 1309, 1311, 81c, 26 U.S.C. 5055, 5062, 5066)
</SECAUTH>
<CITA TYPE="N">[T.D. 7112, 36 FR 8584, May 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 FR 3835, Jan. 27, 2004; T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>


<DIV8 N="§ 28.334" NODE="27:1.0.1.1.23.16.523.3" TYPE="SECTION">
<HEAD>§ 28.334   Credit allowance.</HEAD>
<P>Where the credit relates to internal revenue taxes on beer that have been determined but not yet paid by the claimant, the appropriate TTB officer will notify the claimant in writing. Where the credit relates to tax determined distilled spirits, procedure for taking the credit shall be in accordance with the procedures set forth in part 19 of this chapter. Where the credit relates to tax-determined wines, procedure for taking the credit shall be in accordance with the procedures set forth in part 24 of this chapter. No credit may be given for drawback of the tax on beer nor may one class of tax be credited to another.
</P>
<SECAUTH TYPE="N">(72 Stat. 1336; 26 U.S.C. 5062)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 FR 3835, Jan. 27, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 28.335" NODE="27:1.0.1.1.23.16.523.4" TYPE="SECTION">
<HEAD>§ 28.335   Disallowance of claim.</HEAD>
<P>If a claim for drawback of tax is not allowed in full, the appropriate TTB officer shall notify the claimant in writing of the reasons for any disallowance.
</P>
<SECAUTH TYPE="N">(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335, 1336; 19 U.S.C. 1309, 81c, 26 U.S.C. 5055, 5062)
</SECAUTH>
<CITA TYPE="N">[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 FR 3835, Jan. 27, 2004]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="29" NODE="27:1.0.1.1.24" TYPE="PART">
<HEAD>PART 29—STILLS AND MISCELLANEOUS REGULATIONS
</HEAD>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 29 appear by T.D. ATF-462, 66 FR 42737, Aug. 15, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.24.1" TYPE="SUBPART">
<HEAD>Subparts A-B [Reserved]</HEAD>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.24.2" TYPE="SUBPART">
<HEAD>Subpart C—Stills</HEAD>

<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5002, 5101, 5102, 5179, 5291, 5601, 5615, 5687, 6109, 7805.






</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-207, 50 FR 23682, June 5, 1985, unless otherwise noted. Redesignated by T.D. ATF-462, 66 FR 42737, Aug. 15, 2001.


</PSPACE></SOURCE>

<DIV8 N="§ 29.41" NODE="27:1.0.1.1.24.2.523.1" TYPE="SECTION">
<HEAD>§ 29.41   Scope of subpart.</HEAD>
<P>The regulations in this subpart relate to the manufacture, removal, and use of stills and condensers, and to the notice, registration, and recordkeeping requirements therefor.


</P>
</DIV8>


<DIV8 N="§ 29.42" NODE="27:1.0.1.1.24.2.523.2" TYPE="SECTION">
<HEAD>§ 29.42   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.29, Delegation of the Administrator's Authorities in 27 CFR Part 29, Stills and Miscellaneous Regulations. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202. 
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16947, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 29.43" NODE="27:1.0.1.1.24.2.523.3" TYPE="SECTION">
<HEAD>§ 29.43   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms, including all notices and records, required by this subpart. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this subpart. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<SECAUTH TYPE="N">(Pub. L. 89-554, 80 Stat. 383, as amended (5 U.S.C. 552))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-207, 50 FR 23682, June 5, 1985; 50 FR 28572, July 15, 1985; T.D. ATF-439, 66 FR 8769, Feb. 2, 2001; T.D. TTB-44, 71 FR 16947, Apr. 4, 2006; T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 29.45" NODE="27:1.0.1.1.24.2.523.4" TYPE="SECTION">
<HEAD>§ 29.45   Meaning of terms.</HEAD>
<P>When used in this subpart and in the forms prescribed under this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words in the masculine shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.29, Delegation of the Administrator's Authorities in 27 CFR Part 29, Stills and Miscellaneous Regulations.
</P>
<P><I>Condenser.</I> Any apparatus capable of being used when connected with a still, for condensing or liquefying alcoholic or spirituous vapors, but shall not include condensers to be used with laboratory stills or stills used for distilling water or other nonalcoholic materials where the cubic distilling capacity is one gallon or less.


</P>
<P><I>Distilling spirits or spirits.</I> That substance known as ethyl alcohol, ethanol, or spirits of wine in any form (including all dilutions and mixtures thereof, from whatever source or by whatever process produced).
</P>
<P><I>Distilling.</I> The conduct by any person of operations that constitute, as defined by 26 U.S.C. 5002, operations as a distiller. Such operations include: (a) The original manufacture of distilled spirits from mash, wort, or wash, or any materials suitable for the production of spirits; (b) the redistillation of spirits in the course of original manufacture; (c) the redistillation of spirits, or products containing spirits; (d) the distillation, redistillation, or recovery of spirits, denatured spirits, or articles containing spirits or denatured spirits; and (e) the redistillation or recovery of tax-free spirits.
</P>
<P><I>Distilling apparatus.</I> A still or condenser, as defined in this section, and any other apparatus to be used for the purpose of distilling.
</P>
<P><I>Executed under the penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to any document prescribed under this subpart or, where no form of declaration is prescribed, with the declaration: “I declare under the penalties of perjury that this ____________ (insert type of document), including the documents submitted in support thereof, has been examined by me and, to best of my knowledge and belief, is true, correct and complete.”
</P>
<P><I>Manufacturer of stills.</I> Any person who manufactures any still or condenser, as defined in this section, or any other apparatus to be used for the purpose of distilling. The term includes a person furnishing separate parts of a complete still or condenser, of any kind, to a person who assembles same into a still or condenser for distilling and a person who procures materials or apparatus and converts same into a still or condenser for distilling.
</P>
<P><I>Person.</I> An individual, a trust, estate, partnership, association, company, or corporation.
</P>
<P><I>Still.</I> Any apparatus capable of being used for separating alcoholic or spirituous vapors, or spiritous solutions, or spirits, from spirituous solutions or mixtures, but shall not include stills used for laboratory purposes or stills used for distilling water or other nonalcoholic materials where the cubic distilling capacity is one gallon or less.
</P>
<P><I>This chapter.</I> Title 27, Code of Federal Regulations, Chapter I (27 CFR Chapter I).
</P>
<P><I>United States.</I> The several states and the District of Columbia.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<CITA TYPE="N">[T.D. ATF-207, 50 FR 23682, June 5, 1985; 50 FR 28572, July 15, 1985, as amended by T.D. ATF-439, 66 FR 8770, Feb. 2, 2001; T.D. TTB-44, 71 FR 16947, Apr. 4, 2006;T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 29.47" NODE="27:1.0.1.1.24.2.523.5" TYPE="SECTION">
<HEAD>§ 29.47   Notice requirement; manufacture of stills.</HEAD>
<P>(a) <I>General.</I> When required by letter issued by the appropriate TTB officer and until notified to the contrary by the appropriate TTB officer, every person who manufactures any still, boiler (double or pot still), condenser, or other apparatus to be used for the purpose of distilling shall give written notice before the still or distilling apparatus is removed from the place of manufacture.
</P>
<P>(b) <I>Preparation.</I> The notice will be prepared in letter form, executed under the penalties of perjury, and show the following information:
</P>
<P>(1) The name and address of the manufacturer;
</P>
<P>(2) The name and complete address of the person by whom the apparatus is to be used, and of any other person for, by, or through whom the apparatus is ordered or disposed of;
</P>
<P>(3) The distilling purpose for which the apparatus is to be used (distillation of spirits, redistillation of spirits or recovery of spirits, including denatured spirits and articles containing spirits or denatured spirits);
</P>
<P>(4) The manufacturer's serial number of the apparatus;
</P>
<P>(5) The type and kind of apparatus;
</P>
<P>(6) The distilling capacity of the apparatus; and
</P>
<P>(7) The date the apparatus is to be removed from the place of manufacture.
</P>
<P>(c) <I>Filing.</I> The notice will be filed in accordance with the instructions in the letter of the appropriate TTB officer. A copy of the notice will be retained at the place of manufacture as provided by § 29.59.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0341)
</APPRO>
<SECAUTH TYPE="N">(Sec. 843, Pub. L. 98-369, 98 Stat. 818 (26 U.S.C. 5101))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-207, 50 FR 23682, June 5, 1985; 50 FR 28572, July 15, 1985; T.D. ATF-439, 66 FR 8769, Feb. 2, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 29.49" NODE="27:1.0.1.1.24.2.523.6" TYPE="SECTION">
<HEAD>§ 29.49   Notice requirement; setup of still.</HEAD>
<P>(a) <I>General.</I> When required by letter issued by the appropriate TTB officer, no still, boiler (double or pot still), condenser, or other distilling apparatus may be set up without the manufacturer of the still or distilling apparatus first giving written notice of that purpose.
</P>
<P>(b) <I>Preparation.</I> The notice will be prepared by the manufacturer in letter form, executed under the penalties of perjury, and will contain the information specified in the letter of the appropriate TTB officer.
</P>
<P>(c) <I>Filing.</I> The notice will be filed in accordance with the instructions in the letter of the appropriate TTB officer. A copy of the notice will be retained at the manufacturer's place of business as provided by § 29.59.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0341)
</APPRO>
<SECAUTH TYPE="N">(Sec. 843, Pub. L. 98-369, 98 Stat. 818 (26 U.S.C. 5101))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-207, 50 FR 23682, June 5, 1985, as amended by T.D. ATF-439, 66 FR 8769, Feb. 2, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 29.51" NODE="27:1.0.1.1.24.2.523.7" TYPE="SECTION">
<HEAD>§ 29.51   Failure to give notice; penalty.</HEAD>
<P>Failure to give notice of manufacture of still or notice of setup of still when required to do so is punishable by a fine of not more than $1,000 or imprisonment for not more than one year, or both, and any still, boiler (double or pot still), condenser, or other distilling apparatus to be used for the purpose of distilling which is removed or set up without the required notice having been given is forfeitable to the Government.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1405, as amended, 1412, as amended (26 U.S.C. 5615, 5687))


</SECAUTH>
</DIV8>


<DIV8 N="§ 29.53" NODE="27:1.0.1.1.24.2.523.8" TYPE="SECTION">
<HEAD>§ 29.53   Identification of distilling apparatus.</HEAD>
<P>(a) <I>General.</I> Each still or condenser manufactured will be identified by the manufacturer as follows:
</P>
<P>(1) Name of manufacturer.
</P>
<P>(2) Address of manufacturer.
</P>
<P>(3) Manufacturer's serial number for the apparatus.
</P>
<P>(b) <I>Marking requirements.</I> The apparatus will be identified in a legible and durable manner. The required identification marks will be placed on the apparatus in a location where they will not be obscured or concealed.


</P>
</DIV8>


<DIV8 N="§ 29.55" NODE="27:1.0.1.1.24.2.523.9" TYPE="SECTION">
<HEAD>§ 29.55   Registry of stills and distilling apparatus.</HEAD>
<P>(a) <I>General.</I> Every person having possession, custody, or control of any still or distilling apparatus set up shall, immediately on its being set up, register the still or distilling apparatus, except that a still or distilling apparatus not used or intended for use in the distillation, redistillation, or recovery of distilled spirits is not required to be registered. Registration may be accomplished by describing the still or distilling apparatus on the registration or permit application prescribed in this chapter for qualification under 26 U.S.C. chapter 51 or, if qualification is not required under 26 U.S.C. chapter 51, on a letter application, and filing the application with the appropriate TTB officer. Approval of the application by the appropriate TTB officer will constitute registration of the still or distilling apparatus.
</P>
<P>(b) <I>When still is set up.</I> A still will be regarded as set up and subject to registry when it is in position over a furnace, or connected with a boiler so that heat may be applied, irrespective of whether a condenser is in position. This rule is intended merely as an illustration and should not be construed as covering all types of stills or condensers requiring registration.
</P>
<P>(c) <I>Change in location or ownership.</I> Where any distilling apparatus registered under this section is to be removed to another location, sold or otherwise disposed of, the registrant shall, prior to the removal or disposition, file a letter notice with the appropriate TTB officer. The letter notice will show the intended method of disposition (sale, destruction, or otherwise), the name and complete address of the person to whom disposition will be made, and the purpose for which the apparatus will be used. After removal, sale, or other disposal, the person having possession, custody, or control of any distilling apparatus intended for use in distilling shall immediately register the still or distilling apparatus on its being set up or, if already set up, immediately on obtaining possession, custody, or control. The registrant shall also comply with the procedures prescribed in this chapter for amendment of the registration or permit application.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0341)
</APPRO>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended (26 U.S.C. 5179))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-207, 50 FR 23682, June 5, 1985; 50 FR 28572, July 15, 1985; 50 FR 30821, July 30, 1985, as amended by T.D. ATF-439, 66 FR 8770, Feb. 2, 2001; T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 29.57" NODE="27:1.0.1.1.24.2.523.10" TYPE="SECTION">
<HEAD>§ 29.57   Failure to register; penalty.</HEAD>
<P>Any person having possession, custody, or control of any still or distilling apparatus set up who fails to register the still or distilling apparatus is subject to a fine of not more than $10,000 or imprisonment of not more than 5 years, or both, and the still or distilling apparatus is forfeitable to the Government.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1398, as amended, 1405, as amended (26 U.S.C. 5601, 5615))


</SECAUTH>
</DIV8>


<DIV8 N="§ 29.59" NODE="27:1.0.1.1.24.2.523.11" TYPE="SECTION">
<HEAD>§ 29.59   Records.</HEAD>
<P>A copy of each notice of manufacture, or set up, of still required under the provisions of § 29.47, or § 29.49, shall be maintained, in chronological order, by the manufacturer at the premises where the still or distilling apparatus is manufactured. In addition, each manufacturer or vendor of stills shall maintain at their premises a record showing all stills and distilling apparatus (including those to be used for purposes other than distilling) manufactured, received, removed, or otherwise disposed of. The record will also show the name and address of the purchaser and the purpose for which each apparatus is to be used. Any commercial document on which all the required information has been recorded may be used for the record. The records will be kept available for a period of three years for inspection by appropriate TTB officers.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0341)
</APPRO>
<CITA TYPE="N">[T.D. ATF-207, 50 FR 23682, June 5, 1985, as amended by T.D. ATF-439, 66 FR 8770, Feb. 2, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.24.3" TYPE="SUBPART">
<HEAD>Subparts D-Y [Reserved]</HEAD>

</DIV6>

</DIV5>


<DIV5 N="30" NODE="27:1.0.1.1.25" TYPE="PART">
<HEAD>PART 30—GAUGING MANUAL
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 7805.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 30 appear by T.D. ATF-438, 66 FR 5481, Jan. 19, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:1.0.1.1.25.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 30.1" NODE="27:1.0.1.1.25.1.526.1" TYPE="SECTION">
<HEAD>§ 30.1   Gauging of distilled spirits.</HEAD>
<P>(a) <I>General.</I> This part relates to the gauging of distilled spirits. The term “gauging” means the determination of the proof and the quantity of distilled spirits. The procedures prescribed in or authorized under the provisions of this part, except as may be otherwise authorized in this chapter, shall be followed in making any determination of quantity or proof of distilled spirits required by or under the authority of regulations in this chapter. The tables referred to in subpart E of this part appear in the “Gauging Manual Embracing Instructions and Tables for Determining Quantity of Distilled Spirits by Proof and Weight” as incorporated by reference in this part (see paragraph (c) of this section). These tables, together with their instructions, shall be used, wherever applicable, in making the necessary computations from gauge data.
</P>
<P>(b) <I>Tables referred to in subpart E of this part.</I> Table 1 provides a method of correcting hydrometer indications at temperatures between 0 and 100 degrees Fahrenheit to true proof. If distilled spirits contain dissolved solids, temperature correction of the hydrometer reading by the use of this table would result in apparent proof rather than true proof. Tables 2 and 3 show the gallonage of spirituous liquor according to weight and proof. Table 4 shows the gallons per pound at each one-tenth proof from 1 to 200 proof. Table 5 shows the weight per wine gallon and proof gallon at each proof. Table 6 shows the volumes of alcohol and water and the specific gravity (air and vacuum) of spirituous liquor at each proof. Table 7 provides a means of ascertaining the volume (at 60 degree Fahrenheit) of spirits at various temperatures ranging from 18 degrees through 100 degrees Fahrenheit.
</P>
<P>(c) <I>Incorporation by reference.</I> The “Gauging Manual Embracing Instructions and Tables for Determining Quantity of Distilled Spirits by Proof and Weight” (Publication 5110.6; November 1978) is incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register on March 23, 1981. This publication may be inspected at the National Archives and Records Administration (NARA), and is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. For information on the availability of this material at NARA, call 202-741-6030, or go to:<I>https://www.archives.gov/federal-register/cfr/ibr-locations.html</I>. 
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204); 80 Stat. 383, as amended (5 U.S.C. 552(a)))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended at 69 FR 18803, Apr. 9, 2004; T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 30.3" NODE="27:1.0.1.1.25.1.526.2" TYPE="SECTION">
<HEAD>§ 30.3   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.30, Delegation of the Administrator's Authorities in 27 CFR part 30, Gauging Manual. You may obtain a copy of this order by accessing the TTB website (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.


</P>
<CITA TYPE="N">[T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.25.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 30.11" NODE="27:1.0.1.1.25.2.526.1" TYPE="SECTION">
<HEAD>§ 30.11   Meaning of terms.</HEAD>
<P>When used in this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.30, Delegation of the Administrator's Authorities in 27 CFR Part 30, Gauging Manual.
</P>
<P><I>Bonded premises.</I> The bonded premises of a distilled spirits plant as described in part 19 of this chapter. This term includes premises described in the preceding sentence even if the distilled spirits plant proprietor has not provided a bond for the premises as authorized under the exemption set forth in § 19.151(d) of this chapter.
</P>
<P><I>Bulk conveyance.</I> Any tank car, tank truck, tank ship, tank barge, or other similar container approved by the appropriate TTB officer, authorized for the conveyance of spirits (including denatured spirits) in bulk.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Container.</I> Any receptacle, vessel, or form of package, bottle, tank, or pipeline used, or capable of use, for holding, storing, transferring or conveying distilled spirits.
</P>
<P><I>Denatured spirits or denatured alcohol.</I> Spirits to which denaturants have been added pursuant to formulas prescribed in 27 CFR part 21.
</P>
<P><I>Gallon or wine gallon.</I> The liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>I.R.C.</I> The Internal Revenue Code of 1954, as amended.
</P>
<P><I>Package.</I> Any cask, barrel, drum, or similar container approved under the provisions of this chapter.
</P>
<P><I>Proof.</I> The ethyl alcohol content of a liquid at 60 degrees Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
</P>
<P><I>Proof gallon.</I> A United States gallon of proof spirits, or the alcoholic equivalent thereof.
</P>
<P><I>Proof spirits.</I> That liquid which contains one-half its volume of ethyl alcohol of a specific gravity of seven thousand nine hundred and thirty-nine ten-thousandths (0.7939) in vacuum at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as unity.
</P>
<P><I>Spirits, spirituous liquor, or distilled spirits.</I> That substance known as ethyl alcohol, ethanol, or spirits of wine in any form, including all dilutions and mixtures thereof, from whatever source or by whatever process produced, but not denatured spirits unless specifically stated. For the sole purpose of gauging wine and alcoholic flavoring materials on the bonded premises of a distilled spirits plant, such alcoholic ingredients shall have the same meaning described herein to spirits, spirituous liquor, or distilled spirits.
</P>
<P><I>This chapter.</I> Title 27, Code of Federal Regulations, Chapter I (27 CFR Chapter I).
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-438, 66 FR 5481, Jan. 19, 2001; T.D. TTB-44, 71 FR 16947, Apr. 4, 2006; T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.25.3" TYPE="SUBPART">
<HEAD>Subpart C—Gauging Instruments</HEAD>


<DIV8 N="§ 30.21" NODE="27:1.0.1.1.25.3.526.1" TYPE="SECTION">
<HEAD>§ 30.21   Requirements.</HEAD>
<P>(a) <I>General.</I> The proof of distilled spirits shall be determined by the use of gauging instruments as prescribed in this part.
</P>
<P>(b) <I>Proprietors.</I> Proprietors shall use only accurate hydrometers and thermometers that show subdivisions or graduations of proof and temperature which are at least as delimitated as the instruments described in § 30.22.
</P>
<P>(c) <I>Appropriate TTB officers.</I> Appropriate TTB officers shall use only hydrometers and thermometers furnished by the Government. However, where this part requires the use of a specific gravity hydrometer, TTB officers shall use precision grade specific gravity hydrometers conforming to the provisions of § 30.24, furnished by the proprietor. However, the appropriate TTB officer may authorize the use of other instruments approved by the appropriate TTB officer as being equally satisfactory for determination of specific gravity and for gauging. From time to time appropriate TTB officers shall verify the accuracy of hydrometers and thermometers used by proprietors.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-438, 66 FR 5481, Jan. 19, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 30.22" NODE="27:1.0.1.1.25.3.526.2" TYPE="SECTION">
<HEAD>§ 30.22   Hydrometers and thermometers.</HEAD>
<P>The hydrometers used are graduated to read the proof of aqueous alcoholic solutions at 60 degrees Fahrenheit; thus, they read, 0 for water, 100 for proof spirits, and 200 for absolute alcohol. Because of temperature-density relationships and the selection of 60 degrees Fahrenheit for reporting proof, the hydrometer readings will be less than the true percent of proof at temperatures below 60 degrees Fahrenheit and greater than the true percent of proof at temperatures above 60 degrees Fahrenheit. Hence, corrections are necessary for hydrometer readings at temperatures other than 60 degrees Fahrenheit. Precision hydrometers shall be used for gauging spirits. Hydrometers and thermometers shall be used and the true percent of proof shall be determined in accordance with § 30.31. Hydrometers are designated by letter according to range of proof and are provided in ranges and subdivisions of stems as follows:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Precision
</TH><TH class="gpotbl_colhed" scope="col">Range
</TH><TH class="gpotbl_colhed" scope="col">Subdivision
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">F</TD><TD align="left" class="gpotbl_cell">0 to 20</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">G</TD><TD align="left" class="gpotbl_cell">20 to 40</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">H</TD><TD align="left" class="gpotbl_cell">40 to 60</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">I</TD><TD align="left" class="gpotbl_cell">60 to 80</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">K</TD><TD align="left" class="gpotbl_cell">75 to 95</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">L</TD><TD align="left" class="gpotbl_cell">90 to 110</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">M</TD><TD align="left" class="gpotbl_cell">105 to 125</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">N</TD><TD align="left" class="gpotbl_cell">125 to 145</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">P</TD><TD align="left" class="gpotbl_cell">145 to 165</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Q</TD><TD align="left" class="gpotbl_cell">165 to 185</TD><TD align="right" class="gpotbl_cell">0.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">R</TD><TD align="left" class="gpotbl_cell">185 to 206</TD><TD align="right" class="gpotbl_cell">0.2°</TD></TR></TABLE></DIV></DIV>
<P>Thermometers are designated by type according to range of degrees Fahrenheit and are provided in ranges and subdivisions of degrees as follows:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Range
</TH><TH class="gpotbl_colhed" scope="col">Subdivision
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Pencil type</TD><TD align="left" class="gpotbl_cell">10° to 100°</TD><TD align="right" class="gpotbl_cell">1°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">V-back</TD><TD align="left" class="gpotbl_cell">10° to 100°</TD><TD align="right" class="gpotbl_cell">1°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Glass shell (earlier model)</TD><TD align="left" class="gpotbl_cell">40° to 100°</TD><TD align="right" class="gpotbl_cell">
<fr>1/2</fr>°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Glass shell (later model)</TD><TD align="left" class="gpotbl_cell">40° to 100°</TD><TD align="right" class="gpotbl_cell">
<fr>1/4</fr>°</TD></TR></TABLE></DIV></DIV>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 FR 37003, July 16, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 30.23" NODE="27:1.0.1.1.25.3.526.3" TYPE="SECTION">
<HEAD>§ 30.23   Use of precision hydrometers and thermometers.</HEAD>
<P>Care should be exercised to obtain accurate hydrometer and thermometer readings. In order to accomplish this result, the following precautions should be observed. Bulk spirits should be thoroughly agitated so that the test samples will be representative of the entire quantity. The hydrometers should be kept clean and free of any oily substance. Immediately before readings are taken, the glass cylinder containing the thermometer should be rinsed several times with the spirits which are to be gauged so as to bring both the cylinder and the thermometer to the temperature of the spirits (if time permits, it is desirable to bring both the spirits and the instruments to room temperature). If the outer surface of the cylinder becomes wet, it should be wiped dry to avoid the cooling effect of rapid evaporation. During the readings the cylinder should be protected from drafts or other conditions which might affect its temperature or that of the spirits which it contains. The hands should not be placed on the cylinder in such a manner as to warm the liquid contained therein. The hydrometer should be inserted in the liquid and the hydrometer bulb raised and lowered from top to bottom 5 or 6 times to obtain an even temperature distribution over its surface, and, while the hydrometer bulb remains in the liquid, the stem should be dried and the hydrometer allowed to come to rest without wetting more than a few tenths degrees of the exposed stem. Special care should be taken to ascertain the exact point at which the level of the surface liquid intersects the scale of proof in the stem of the hydrometer. The hydrometer and thermometer should be immediately read, as nearly simultaneously as possible. In reading the hydrometer, a sighting should be made slightly below the plane of the surface of the liquid and the line of sight should then be raised slowly, being kept perpendicular to the hydrometer stem, until the appearance of the surface changes from an ellipse to a straight line. The point where this line intersects the hydrometer scale is the correct reading of the hydrometer. When the correct readings of the hydrometer and the thermometer have been determined, the true percent of proof shall be ascertained from Table 1. Another sample of the spirits should then be taken and be tested in the same manner so as to verify the proof originally ascertained. Hydrometer readings should be made to the nearest 0.05 degree and thermometer readings should be made to the nearest 0.1 degree, and instrument correction factors, if any, should be applied. It is necessary to interpolate in Table 1 for fractional hydrometer and thermometer readings.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>A hydrometer reads 192.85° at 72.10 °F. The correction factors for the hydrometer and the thermometer, respectively are minus0.03° and plus0.05°. The corrected reading, then, is 192.82° at 72.15 °F.
</PSPACE>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">From Table 1:
</TD><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row">193.0° at 72.0 °F.</TD><TD align="right" class="gpotbl_cell">=</TD><TD align="right" class="gpotbl_cell">190.2°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">192.0° at 72.0 °F.</TD><TD align="right" class="gpotbl_cell">=</TD><TD align="right" class="gpotbl_cell">189.1°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Difference</TD><TD align="right" class="gpotbl_cell">=</TD><TD align="right" class="gpotbl_cell">1.1°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">192.0° at 72.0 °F.</TD><TD align="right" class="gpotbl_cell">=</TD><TD align="right" class="gpotbl_cell">189.1°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">192.0° at 73.0 °F.</TD><TD align="right" class="gpotbl_cell">=</TD><TD align="right" class="gpotbl_cell">188.9°
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Difference</TD><TD align="right" class="gpotbl_cell">=</TD><TD align="right" class="gpotbl_cell">0.2°</TD></TR></TABLE></DIV></DIV><PSPACE>The hydrometer difference (1.1°) multiplied by the fractional degree of the hydrometer reading (0.82°) = 0.902.
</PSPACE><P>The temperature difference (0.2°) multiplied by the fractional degree of the temperature reading (0.15°) = 0.03°.
</P>
<FP-1>Proof at 60 °F. = 189.1 + 0.902 − 0.03 = 189.972° = 190.0°.
</FP-1><PSPACE>As shown, the final proof is rounded to the nearest tenth of a degree of proof. In such cases, if the hundredths decimal is less than five, it will be dropped; if it is five or over, a unit will be added.</PSPACE></EXAMPLE>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 FR 37004, July 16, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 30.24" NODE="27:1.0.1.1.25.3.526.4" TYPE="SECTION">
<HEAD>§ 30.24   Specific gravity hydrometers.</HEAD>
<P>(a) The specific gravity hydrometers furnished by proprietors to appropriate TTB officers shall conform to the standard specifications of the American Society for Testing and Materials (ASTM) for such instruments. Such specific gravity hydrometers shall be of a precision grade, standardization temperature 60 °/60 °F., and provided in the following ranges and subdivisions:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Range
</TH><TH class="gpotbl_colhed" scope="col">Subdivision
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1.0000 to 1.0500</TD><TD align="right" class="gpotbl_cell">0.0005
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1.0500 to 1.1000</TD><TD align="right" class="gpotbl_cell">0.0005
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1.1000 to 1.1500</TD><TD align="right" class="gpotbl_cell">0.0005
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1.1500 to 1.2000</TD><TD align="right" class="gpotbl_cell">0.0005
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1.2000 to 1.2500</TD><TD align="right" class="gpotbl_cell">0.0005</TD></TR></TABLE></DIV></DIV>
<FP>No instrument shall be in error by more than 0.0005 specific gravity.
</FP>
<P>(b) A certificate of accuracy prepared by the instrument manufacturer for the instrument shall be furnished to the appropriate TTB officer.
</P>
<P>(c) <I>Incorporation by reference.</I> The “Standard Specification for ASTM Hydrometers,” (E 100-72 (1978)), published in the “1980 Annual Book of ASTM Standards” (STP 25 1062 (1980)), is incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register on March 23, 1981. This publication may be inspected at the National Archives and Records Administration (NARA), and is available from the American Society for Testing and Materials, 1916 Race Street, Philadelphia, Pennsylvania 19103. For information on the availability of this material at NARA, call 202-741-6030, or go to: <I>https://www.archives.gov/federal-register/cfr/ibr-locations.html</I>.
</P>
<SECAUTH TYPE="N">(Sec. 201. Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204); 80 Stat. 383, as amended (5 U.S.C. 552(a)))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 FR 37004, July 16, 1996; 69 FR 18803, Apr. 9, 2004; T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 30.25" NODE="27:1.0.1.1.25.3.526.5" TYPE="SECTION">
<HEAD>§ 30.25   Use of precision specific gravity hydrometers.</HEAD>
<P>The provisions of § 30.23 respecting the care, handling, and use of precision instruments shall be followed with respect to the care, handling, and use of precision grade specific gravity hydrometers. Specific gravity hydrometers shall be read to the nearest subdivision. Because of temperature density relationships and the selection of the standardization temperature of 60 °/60 °F., the specific gravity readings will be greater at temperatures below 60 degrees Fahrenheit and less at temperatures above 60 degrees Fahrenheit. Hence, correction of the specific gravity readings will be made for temperature other than 60 degrees Fahrenheit. Such correction may be ascertained by dividing the specific gravity hydrometer reading by the applicable correction factor in Table 7.
</P>
<EXAMPLE>
<HED>Example:</HED><PSPACE>The specific gravity hydrometer reading is 1.1525, the thermometer reading is 68 degrees Fahrenheit, and the true proof of the spirits is 115 degrees. The correct specific gravity reading will be ascertained as follows:
</PSPACE><P>(a) From Table 7, the correction factor for 115° proof at 68 °F. is 0.996.
</P><P>(b) 1.1525 divided by 0.996 = 1.1571, the corrected specific gravity.</P></EXAMPLE>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))


</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. TTB-196, 89 FR 87946, Nov. 6, 2024




</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.25.4" TYPE="SUBPART">
<HEAD>Subpart D—Gauging Procedures</HEAD>


<DIV8 N="§ 30.31" NODE="27:1.0.1.1.25.4.526.1" TYPE="SECTION">
<HEAD>§ 30.31   Determination of proof.</HEAD>
<P>(a) <I>General.</I> The proof of spirits shall be determined to the nearest tenth degree which shall be the proof used in determining the proof gallons.
</P>
<P>(b) <I>Solids content not more than 600 milligrams.</I> Except as otherwise authorized by the appropriate TTB officer, the proof of spirits containing not more than 600 milligrams of solids per 100 milliliters of spirits shall be determined by the use of a hydrometer and thermometer in accordance with the provisions of § 30.23 except that if such spirits contain solids in excess of 400 milligrams but not in excess of 600 milligrams per 100 milliliters at gauge proof, there shall be added to the proof so determined the obscuration determined as prescribed in § 30.32.
</P>
<P>(c) <I>Solids content over 600 milligrams.</I> If such spirits contain solids in excess of 600 milligrams per 100 milliliters at gauge proof, the proof shall be determined on the basis of true proof determined as follows:
</P>
<P>(1) By the use of a hydrometer and a thermometer after the spirits have been distilled in a small laboratory still and restored to the original volume and temperature by the addition of pure water to the distillate; or
</P>
<P>(2) By a recognized laboratory method which is equal or superior in accuracy to the distillation method.
</P>
<P>(d) <I>Initial proof.</I> Except when the proof of spirits is used in making the gauge prescribed in § 19.353 of this chapter or in making a gauge for determination of tax, the initial determination of proof made on the bonded premises of a distilled spirits plant for such spirits may be used whenever a subsequent gauge is required to be made at that same plant provided that no material has been added to change the proof of the spirits.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended (26 U.S.C. 5204, 5211))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. TTB-92, 76 FR 9171, Feb. 16, 2011; T.D. TTB-92a, 76 FR 19908, Apr. 11, 2011; T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 30.32" NODE="27:1.0.1.1.25.4.526.2" TYPE="SECTION">
<HEAD>§ 30.32   Determination of proof obscuration.</HEAD>
<P>(a) <I>General.</I> Proof obscuration of spirits containing more than 400 but not more than 600 milligrams of solids per 100 milliliters shall be determined by one of the following methods. The evaporation method may be used only for spirits in the range of 80-100 degrees at gauge proof.
</P>
<P>(b) <I>Evaporation method.</I> Evaporate the water and alcohol from a carefully measured 25 milliliter sample of spirits, dry the residue at 100 degrees centigrade for 30 minutes and then weigh the residue precisely. Multiply the weight of the residue by 4 to determine the weight of solids in 100 milliliters. The resulting weight per 100 milliliters multiplied by 4 will give the obscuration. Experience has shown that 0.1 gram (100 milligrams) of solids per 100 milliliters of spirits in the range of 80-100 degrees proof will obscure the true proof by 0.4 of one degree of proof. For example, if the weight of solids remaining after evaporation of 25 milliliters 0.125 gram, the amount of solids present in 100 milliliters of the spirits is 0.50 gram (4 times 0.125). The obscuration is 4 times 0.50, which is two degrees of proof. This value added to the temperature corrected hydrometer reading will give the true proof.
</P>
<P>(c) <I>Distillation method.</I> Determine the apparent proof and temperature of the sample of spirits and then distill a carefully measured sample in a small laboratory still, and collect a quantity of the distillate, 1 or 2 milliliters less than the original sample. The distillate is adjusted to the original temperature and restored to the original volume by addition of distilled water. The proof of the restored distillate is then determined by use of a precision hydrometer and thermometer in accordance with the provisions of § 30.23 to the nearest 0.1 degree of proof. The difference between the proof so determined and the apparent proof of the undistilled sample is the obscuration; or
</P>
<P>(d) <I>Pycnometer method.</I> Determine the specific gravity of the undistilled sample, distill and restore the samples as provided in paragraph (c) of this section and determine the specific gravity of the restored distillate by means of a pycnometer. The specific gravities so obtained will be converted to degrees of proof by interpolation of Table 6 to the nearest 0.1 degree of proof. The difference in proof so obtained is the obscuration.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 FR 37004, July 16, 1996; T.D. TTB-91, 76 FR 5479, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV7 N="526" NODE="27:1.0.1.1.25.4.526" TYPE="SUBJGRP">
<HEAD>Determination of Quantity</HEAD>


<DIV8 N="§ 30.36" NODE="27:1.0.1.1.25.4.526.3" TYPE="SECTION">
<HEAD>§ 30.36   General requirements.</HEAD>
<P>The quantity determination of distilled spirits that are withdrawn from bonded premises in bulk upon tax determination or payment shall be by weight. The quantity of other distilled spirits or denatured spirits may be determined by weight or by volume. When the quantity of distilled spirits or denatured distilled spirits is determined by volume, such determination may be by meter as provided in 27 CFR part 19, or when approved by the appropriate TTB officer, another method or device.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. TTB-146, 82 FR 1137, Jan. 4, 2017]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="527" NODE="27:1.0.1.1.25.4.527" TYPE="SUBJGRP">
<HEAD>Determination of Quantity by Weight</HEAD>


<DIV8 N="§ 30.41" NODE="27:1.0.1.1.25.4.527.4" TYPE="SECTION">
<HEAD>§ 30.41   Bulk spirits.</HEAD>
<P>When spirits (including denatured spirits) are to be gauged by weight in bulk quantities, the weight shall be determined by means of weighing tanks, mounted on accurate scales. Before each use, the scales shall be balanced at zero load; thereupon the spirits shall be run into the weighing tank and proofed as prescribed in § 30.31. However, if the spirits are to be reduced in proof, the spirits shall be so reduced before final determination of the proof. The scales shall then be brought to a balanced condition and the weight of the spirits determined by reading the beam to the nearest graduation mark. From the weight and the proof thus ascertained, the quantity of the spirits in proof gallons shall be determined by reference to Table 4. However, in the case of spirits which contain solids in excess of 600 milligrams per 100 milliliters, the quantity in proof gallons shall be determined by first ascertaining the wine gallons per pound of the spirits and multiplying the wine gallons per pound by the weight, in pounds, of the spirits being gauged and by the true proof (determined as prescribed in § 30.31) and dividing the result by 100. The wine gallons per pound of spirits containing solids in excess of 600 milligrams per 100 milliliters shall be ascertained by:
</P>
<P>(a) Use of a precision hydrometer and thermometer, in accordance with the provisions of § 30.23, to determine the apparent proof of the spirits (if specific gravity at the temperature of the spirits is not more than 1.0) and reference to Table 4 for the wine gallons per pound, or
</P>
<P>(b) Use of a specific gravity hydrometer, in accordance with the provisions of § 30.25, to determine the specific gravity of the spirits (if the specific gravity at the temperature of the spirits is more than 1.0) and dividing that specific gravity (corrected to 60 degrees Fahrenheit) into the factor 0.120074 (the wine gallons per pound for water at 60 degrees Fahrenheit). When withdrawing a portion of the contents of a weighing tank, the difference between the quantity (ascertained by proofing and weighing) in the tank immediately before the removal of the spirits and the quantity (ascertained by proofing and weighing) in the tank immediately after the removal of the spirits shall be the quantity considered to be withdrawn.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))


</SECAUTH>
</DIV8>


<DIV8 N="§ 30.42" NODE="27:1.0.1.1.25.4.527.5" TYPE="SECTION">
<HEAD>§ 30.42   Denatured spirits.</HEAD>
<P>The quantity, in gallons, of any lot or package of specially denatured spirits may be determined by weighing it and then dividing its weight by the weight per gallon of the formula concerned, as given in the appropriate tables in subpart H of 27 CFR part 21. In the case of completely denatured spirits, the gallonage of any lot or package may be ascertained by determining its weight and apparent proof (hydrometer indication, corrected to 60 degrees Fahrenheit) and then multiplying the weight of the wine gallons per pound factor shown in Table 4 for the (apparent) proof.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))


</SECAUTH>
</DIV8>


<DIV8 N="§ 30.43" NODE="27:1.0.1.1.25.4.527.6" TYPE="SECTION">
<HEAD>§ 30.43   Packaged spirits.</HEAD>
<P>When the quantity of spirits (including denatured spirits when gauged by weight) in packages, such as barrels, drums, and similar portable containers, is to be determined by gauge of the individual packages, such quantity shall, except as provided in paragraph (b) of this section, be determined by weighing each package on an accurate weighing beam or platform scale having a beam or dial showing weight in pounds and half pounds, where packages having a capacity in excess of 10 wine gallons are to be gauged, or in pounds and ounces, or pounds and hundredths of a pound, where packages designed to hold 10 wine gallons or less are to be gauged. In either case the tare must be determined and subtracted from the gross weight to obtain the net weight. From the proof and weight ascertained, the quantity of the spirits in proof gallons shall be determined by reference to Table 2, 3, or 4. However, if the spirits contain solids in excess of 600 milligrams per 100 milliliters, the proof gallons shall be determined as prescribed for such spirits in § 30.41. Notwithstanding the provisions of this section or of § 30.44, (a) gross weights and tares of packages being filled need not be taken in any case where the gauge of the spirits is not derived from such weights under the gauging procedure being utilized, and (b) meters, other devices, or other methods may be used for determining the quantity of spirits in individual packages, when such meter is used as provided in 27 CFR part 19, or, when such other device or method has been approved by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended (26 U.S.C. 5204, 5211))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 FR 37004, July 16, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 30.44" NODE="27:1.0.1.1.25.4.527.7" TYPE="SECTION">
<HEAD>§ 30.44   Weighing containers.</HEAD>
<P>(a) <I>Weighing containers of more than 10 wine gallons.</I> The weight of containers having a capacity in excess of 10 wine gallons shall be determined and recorded in pounds and half pounds.
</P>
<P>(b) <I>Weighing containers of 10 wine gallons or less.</I> The weight for containers of a capacity of 10 wine gallons or less shall be determined in pounds and ounces, or pounds and hundredths of a pound, and shall be recorded in pounds and hundredths of a pound. The equivalent pounds and hundredths of pounds and the corresponding wine gallons and proof gallons shall be expressed as shown in the following table for the respective weights in pounds and ounces and proofs shown therein or, as applicable, computed in accordance with rules in this section.
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Weight of contents
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Size of container, wine gallons
</TH><TH class="gpotbl_colhed" scope="col">Pounds
</TH><TH class="gpotbl_colhed" scope="col">Ozs.
</TH><TH class="gpotbl_colhed" scope="col">Weight in pounds and hundredths of a pound
</TH><TH class="gpotbl_colhed" scope="col">Contents in wine gallons
</TH><TH class="gpotbl_colhed" scope="col">Proof gallons
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">190 proof spirits:
</TD><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">1</TD><TD align="right" class="gpotbl_cell">6</TD><TD align="right" class="gpotbl_cell">13</TD><TD align="right" class="gpotbl_cell">6.81</TD><TD align="right" class="gpotbl_cell">1</TD><TD align="right" class="gpotbl_cell">1.9
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">2</TD><TD align="right" class="gpotbl_cell">13</TD><TD align="right" class="gpotbl_cell">10</TD><TD align="right" class="gpotbl_cell">13.63</TD><TD align="right" class="gpotbl_cell">2</TD><TD align="right" class="gpotbl_cell">3.8
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">5</TD><TD align="right" class="gpotbl_cell">34</TD><TD align="right" class="gpotbl_cell">00</TD><TD align="right" class="gpotbl_cell">34.00</TD><TD align="right" class="gpotbl_cell">5</TD><TD align="right" class="gpotbl_cell">9.5
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">10</TD><TD align="right" class="gpotbl_cell">68</TD><TD align="right" class="gpotbl_cell">00</TD><TD align="right" class="gpotbl_cell">68.00</TD><TD align="right" class="gpotbl_cell">10</TD><TD align="right" class="gpotbl_cell">19.0
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">192 proof spirits:
</TD><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">1</TD><TD align="right" class="gpotbl_cell">6</TD><TD align="right" class="gpotbl_cell">13</TD><TD align="right" class="gpotbl_cell">6.81</TD><TD align="right" class="gpotbl_cell">1</TD><TD align="right" class="gpotbl_cell">1.9
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">2</TD><TD align="right" class="gpotbl_cell">13</TD><TD align="right" class="gpotbl_cell">9</TD><TD align="right" class="gpotbl_cell">13.56</TD><TD align="right" class="gpotbl_cell">2</TD><TD align="right" class="gpotbl_cell">3.8
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">5</TD><TD align="right" class="gpotbl_cell">33</TD><TD align="right" class="gpotbl_cell">13</TD><TD align="right" class="gpotbl_cell">33.81</TD><TD align="right" class="gpotbl_cell">5</TD><TD align="right" class="gpotbl_cell">9.6
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">10</TD><TD align="right" class="gpotbl_cell">67</TD><TD align="right" class="gpotbl_cell">10</TD><TD align="right" class="gpotbl_cell">67.63</TD><TD align="right" class="gpotbl_cell">10</TD><TD align="right" class="gpotbl_cell">19.2
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">200 proof spirits:
</TD><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">1</TD><TD align="right" class="gpotbl_cell">6</TD><TD align="right" class="gpotbl_cell">10</TD><TD align="right" class="gpotbl_cell">6.63</TD><TD align="right" class="gpotbl_cell">1</TD><TD align="right" class="gpotbl_cell">2.0
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">2</TD><TD align="right" class="gpotbl_cell">13</TD><TD align="right" class="gpotbl_cell">4</TD><TD align="right" class="gpotbl_cell">13.25</TD><TD align="right" class="gpotbl_cell">2</TD><TD align="right" class="gpotbl_cell">4.0
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">5</TD><TD align="right" class="gpotbl_cell">33</TD><TD align="right" class="gpotbl_cell">1</TD><TD align="right" class="gpotbl_cell">33.06</TD><TD align="right" class="gpotbl_cell">5</TD><TD align="right" class="gpotbl_cell">10.0
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">10</TD><TD align="right" class="gpotbl_cell">66</TD><TD align="right" class="gpotbl_cell">2</TD><TD align="right" class="gpotbl_cell">66.12</TD><TD align="right" class="gpotbl_cell">10</TD><TD align="right" class="gpotbl_cell">20.0</TD></TR></TABLE></DIV></DIV>
<P>(c) <I>Containers of other proofs or sizes.</I> Where containers of proofs or sizes not shown above are to be filled, the following rule may be used for ascertaining the weight of the spirits to be placed in the container: Divide the number of gallons representing the quantity of spirits to be placed in the container by the fractional part of a gallon equivalent to 1 pound, to obtain the weight of the spirits in pounds and fractions of a pound to two decimal places. Reduce the decimal fraction of a pound to ounces by multiplying by 16, calling any fraction of an ounce a whole ounce. The pounds and ounces thus obtained will determine the point to which the spirits must be weighed to produce the results desired. If the weight must be marked on the container in pounds and decimal fractions of a pound, it will be necessary to convert the ounces to hundredths of a pound. The fraction of a gallon equivalent to 1 pound at any given proof shall be ascertained by reference to Table 4. However, if the spirits contain solids in excess of 600 milligrams per 100 milliliters, the fraction of a gallon equivalent to 1 pound shall be determined as prescribed for such spirits in § 30.41.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to fill a 1-gallon can with precisely 1 wine gallon of 194 proof spirits:
</PSPACE>
<FP-1>1.00 divided by 0.14866 = 6.73 pounds.
</FP-1>
<FP-1>0.73 multiplied by 16 = 11.68 ounces, rounded to 12 ounces.
</FP-1>
<FP-1>Weight of spirits—6 pounds, 12 ounces.
</FP-1>
<FP-1>Weight, if required, to be marked on can-6.75 pounds.</FP-1></EXAMPLE>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended (26 U.S.C. 5204, 5211))


</SECAUTH>
</DIV8>


<DIV8 N="§ 30.45" NODE="27:1.0.1.1.25.4.527.8" TYPE="SECTION">
<HEAD>§ 30.45   Withdrawal gauge for packages.</HEAD>
<P>When wooden packages are to be individually gauged for withdrawal, actual tare of the packages shall be determined. The actual tare of a package shall be determined by weighing it after its contents (including rinse water, if any) have been temporarily removed to a separate container or vessel. Where the contents of packages have been temporarily removed for determination of tare, the proof, if any rinse water is added to the spirits, shall be determined after a thorough mixing of the rinse water and the spirits and before return of the spirits to the rinsed packages, and the gross weight shall be determined after the spirits and any added rinse water have been returned to the packages. In the case of metal packages the tare established at the time of filling may be used unless it appears to be incorrect. From the proofs and the net weights of the packages, the wine gallons (if desired) and the proof gallons of spirits shall be determined by the use of Table 2. However, if the spirits contain solids in excess of 600 milligrams per 100 milliliters, the wine gallon and proof gallon contents shall be determined as prescribed for such spirits in § 30.41. If either the weight or the proof is beyond the limitations of table 2, either table 3 or table 4 may be used.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="528" NODE="27:1.0.1.1.25.4.528" TYPE="SUBJGRP">
<HEAD>Determination of Quantity by Volume</HEAD>


<DIV8 N="§ 30.51" NODE="27:1.0.1.1.25.4.528.9" TYPE="SECTION">
<HEAD>§ 30.51   Procedures for measurement of bulk spirits.</HEAD>
<P>Where the quantity of spirits (including denatured spirits) in bulk is to be determined by volume as authorized by this chapter, the measurement shall be made in tanks, by meters as provided in 27 CFR part 19, or by other devices or methods authorized by the appropriate TTB officer, or as otherwise provided in this chapter, or such measurement may be made in tank cars or tank trucks if calibration charts for such conveyances are provided and such charts have been accurately prepared, and certified as accurate, by engineers or other persons qualified to calibrate such conveyances. Volumetric measurements in tanks shall be made only in accurately calibrated tanks equipped with suitable measuring devices, whereby the actual contents can be correctly ascertained. If the temperature of spirits (including denatured spirits) is other than the standard of 60 degrees Fahrenheit, gallonage determined by volumetric measurements shall be corrected to the standard temperature by means of table 7. In the case of denatured spirits, the temperature-correction factor for the proof of the spirits used in denaturation will give sufficiently accurate results, except that the temperature-correction factor used for specially denatured spirits, Formula No. 18, should be that given in table 7 for 100 proof spirits. When the quantity of spirits, in wine gallons, has been determined by volumetric measurement, the number of proof gallons shall be obtained by multiplying the wine gallons by the proof of the spirits as determined under § 30.31.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>Gauge glass reading inches—88.
</PSPACE>
<FP-1>Wine gallons per inch—48.96.
</FP-1>
<FP-1>Temperature °F—72.
</FP-1>
<FP-1>Proof of spirits—86.8.
</FP-1>
<FP-1>Temperature correction factor (Table 7)—0.995.
</FP-1>
<FP-1>48.96 W.G. × 88 = 4308.48 wine gallons.
</FP-1>
<FP-1>4308.48 W.G. × 0.995 = 4286.94 wine gallons.
</FP-1>
<FP-1>4286.94 W.G. × 0.868 = 3721.06392 = 3721.1 proof gallons.</FP-1></EXAMPLE>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 FR 37004, July 16, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 30.52" NODE="27:1.0.1.1.25.4.528.10" TYPE="SECTION">
<HEAD>§ 30.52   Procedure for measurement of cased spirits.</HEAD>
<P>Where the quantity of spirits in a case is to be determined by volume, such determination shall be made by ascertaining the contents of one bottle in the case and multiplying that figure by the number of bottles in the case. For cases containing bottles filled according to the metric system of measure, the quantity determined shall be converted to wine gallons, as provided in § 19.582 of this chapter. The wine gallons of spirits thus determined for one case may then be multiplied by the number of cases containing spirits at the same proof when determining the quantity of spirits for more than one case. The proof gallons of spirits in cases shall be determined by multiplying the wine gallons by the proof (divided by 100).
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. TTB-92, 76 FR 9171, Feb. 16, 2011]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.25.5" TYPE="SUBPART">
<HEAD>Subpart E—Prescribed Tables</HEAD>

<NOTE>
<HED>Note.</HED>
<P>The tables referred to in this subpart appear in their entirety in the “Gauging Manual Embracing Instructions and Tables for Determining Quantity of Distilled Spirits by Proof and Weight” which is incorporated by reference in this part (see § 30.1).</P></NOTE>

<DIV8 N="§ 30.61" NODE="27:1.0.1.1.25.5.529.1" TYPE="SECTION">
<HEAD>§ 30.61   Table 1, showing the true percent of proof spirit for any indication of the hydrometer at temperatures between zero and 100 degrees Fahrenheit.</HEAD>
<P>This table shows the true percent of proof of distilled spirits for indications of the hydrometer likely to occur in practice at temperatures between zero and 100 degrees Fahrenheit and shall be used in determining the proof of spirits. The left-hand column contains the reading of the hydrometer and on the same horizontal line, in the body of the table, in the “Temperature” column corresponding to the reading of the thermometer is the corrected reading or “true percent of proof.” The table is computed for tenths of a percent.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE> 
</PSPACE>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">Temperature, °F</TD><TD align="right" class="gpotbl_cell">75
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Hydrometer reading</TD><TD align="right" class="gpotbl_cell">193
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">True percent of proof</TD><TD align="right" class="gpotbl_cell">189.5</TD></TR></TABLE></DIV></DIV>
<FP>Where fractional readings are ascertained, the proper interpolations will be made (see § 30.23). If the distilled spirits contain dissolved solids, temperature-correction of the hydrometer reading by the use of this table would result in apparent proof rather than true proof.</FP></EXAMPLE>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))


</SECAUTH>
</DIV8>


<DIV8 N="§ 30.62" NODE="27:1.0.1.1.25.5.529.2" TYPE="SECTION">
<HEAD>§ 30.62   Table 2, showing wine gallons and proof gallons by weight.</HEAD>
<P>The wine and proof gallon content by weight and proof of packages of distilled spirits usually found in actual practice will be ascertained from this table. The left-hand column contains the weights. The true percent of proof is shown on the heading of each page in a range from 90 degrees to 200 degrees. Under the true percent of proof and on the same horizontal line with the weight will be found the wine gallons (at 60 degrees Fahrenheit) and the proof gallons respectively. Where either the weight or the proof of a quantity of spirits is beyond the limitations of this table, the number of proof gallons may be ascertained by reference to Table 3. This table may also be used to ascertain the wine gallons (at 60 degrees Fahrenheit) and proof gallons of spirituous liquor containing dissolved solids where the weight, apparent proof (hydrometer indication corrected to 60 degrees Fahrenheit), and obscuration factor have been determined.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>334 lbs. of distilled spirits.
</PSPACE>
<FP-1>Apparent proof—96.0°.
</FP-1>
<FP-1>Obscuration—0.8°.
</FP-1>
<FP-1>True Proof 96.0° + 0.8° = 96.8°.
</FP-1>
<FP-1>334 lbs. at 96.0° apparent proof = 42.8 wine gallons.
</FP-1>
<FP-1>42.8 wine gallons × 96.8° = 41.4 proof gallons.
</FP-1><PSPACE>In addition this table may be used to obtain the wine gallons, at the prevailing temperature, of most liquids within the range of the table, from the weight of the liquid and the uncorrected reading of the hydrometer stem. An application of this would be in determining the capacity of a package.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to determine, or to check the rated capacity of a package having a net weight of 395 pounds when completely filled with spirits having an uncorrected hydrometer reading of 113.0°. The full capacity of the package, 51.5 wine gallons, would be found by referring to the table at 395 pounds and 113° proof (hydrometer reading).</PSPACE></EXAMPLE>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended (26 U.S.C. 5204, 5211))


</SECAUTH>
</DIV8>


<DIV8 N="§ 30.63" NODE="27:1.0.1.1.25.5.529.3" TYPE="SECTION">
<HEAD>§ 30.63   Table 3, for determining the number of proof gallons from the weight and proof of spirituous liquor.</HEAD>
<P>When the weight or proof of a quantity of distilled spirits is not found in Table 2, the proof gallons may be ascertained from Table 3. The wine gallons (at 60 degrees Fahrenheit) may be ascertained by dividing the proof gallons by the proof.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>A tank car of spirits of 190 degrees of proof weighed 60,378 pounds net. We find—
</PSPACE>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col"> 
</TH><TH class="gpotbl_colhed" scope="col">Proof gallons
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">60,000 pounds equal to</TD><TD align="right" class="gpotbl_cell">16,778.4
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">300 pounds equal to</TD><TD align="right" class="gpotbl_cell">83.9
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">70 pounds equal to</TD><TD align="right" class="gpotbl_cell">19.6
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">8 pounds equal to</TD><TD align="right" class="gpotbl_cell">2.2
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 6em">Total</TD><TD align="right" class="gpotbl_cell">16,884.1</TD></TR></TABLE></DIV></DIV>
<FP>That is, the total weight of 60,378 pounds of spirits at 190 proof is equal to 16,884.1 proof gallons. The equivalent gallonage for 70 pounds is found from the column 700 pounds by moving the decimal point one place to the left; that for 8 pounds from the column 800 pounds by moving the decimal point two places to the left.</FP></EXAMPLE>
<EXAMPLE>
<HED>Example.</HED><PSPACE>A package of spirits at 86 proof weighed 321
<FR>1/2</FR> pounds net. We find—
</PSPACE>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col"> 
</TH><TH class="gpotbl_colhed" scope="col">Proof gallons
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">300 pounds equal to</TD><TD align="right" class="gpotbl_cell">32.7
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">20 pounds equal to</TD><TD align="right" class="gpotbl_cell">2.2
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1 pound equal to</TD><TD align="right" class="gpotbl_cell">.1
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">
<fr>1/2</fr> pound equal to</TD><TD align="right" class="gpotbl_cell">.1
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 6em">Total</TD><TD align="right" class="gpotbl_cell">35.1</TD></TR></TABLE></DIV></DIV>
<FP>That is, 321
<FR>1/2</FR> pounds of spirits at 86 proof is equal to 35.1 proof gallons. The equivalent gallonage for 20 pounds is found from the column 200 pounds by moving the decimal point one place to the left; that for 1 pound from the column 100 pounds by moving the decimal point two places to the left; that for the 
<FR>1/2</FR> pound from the column 500 pounds by moving the decimal point three places to the left.</FP></EXAMPLE>
<FP>Fractional gallons beyond the first decimal ascertained through use of this table will be dropped if less than 0.05 or will be added as 0.1 if 0.05 or more. The wine gallons (at 60 degrees Fahrenheit) may be determined by dividing the proof gallons by the proof. For example: 35.1 divided by 0.86 equals 40.8 wine gallons.
</FP>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C.5204))


</SECAUTH>
</DIV8>


<DIV8 N="§ 30.64" NODE="27:1.0.1.1.25.5.529.4" TYPE="SECTION">
<HEAD>§ 30.64   Table 4, showing the fractional part of a gallon per pound at each percent and each tenth percent of proof of spirituous liquor.</HEAD>
<P>This table provides a method for use in ascertaining the wine gallon (at 60 degrees Fahrenheit) and/or proof gallon contents of containers of spirits by multiplying the net weight of the spirits by the fractional part of a gallon per pound shown in the table for spirits of the same proof. Fractional gallons beyond the first decimal will be dropped if less than 0.05 or will be added as 0.1 if 0.05 or more.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to ascertain the wine gallons and proof gallons of a tank of 190 proof spirits weighing 81,000 pounds.
</PSPACE>
<FP-2>81,000 × 0.14718 = 11,921.58 = 11,921.6 wine gallons.
</FP-2>
<FP-2>81,000 × 0.27964 = 22,650.84 = 22,650.8 proof gallons.</FP-2></EXAMPLE>
<FP>This table may also be used for ascertaining the quantity of water required to reduce to a given proof. To do this, divide the proof gallons of spirits to be reduced by the fractional part of a proof gallon per pound of spirits at the proof to which the spirits are to be reduced, and subtract from the quotient the net weight of the spirits before reduction. The remainder will be the pounds of water needed to reduce the spirits to the desired proof.
</FP>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to ascertain the quantity of water needed to reduce 1,000 pounds of 200 proof spirits, 302.58 proof gallons, to 190 proof:
</PSPACE>
<FP-2>302.58 divided by 0.27964 equals 1,082.03 pounds, weight of spirits after reduction.
</FP-2>
<FP-2>1.082.03 minus 1,000 equals 82.03 pounds, weight of water required to reduce to desired proof.</FP-2></EXAMPLE>
<FP>The slight variation between this table and Tables 2, 3, and 5 on some calculations is due to the dropping or adding of fractions beyond the first decimal in those tables. This table may also be used to determine the wine gallons (at 60 degrees Fahrenheit) of distilled spirits containing dissolved solids from the total weight of the liquid and its apparent proof (hydrometer indication, corrected to 60 degrees Fahrenheit). The proof gallons may then be found by multiplying the wine gallons by the true proof.
</FP>
<EXAMPLE>
<HED>Example.</HED><PSPACE>5,350 pounds of blended whisky containing added solids
</PSPACE>
<LDRWK>
<FL-2>Temperature °F</FL-2>
<LDRFIG>75.0°
</LDRFIG>
<FL-2>Hydrometer reading</FL-2>
<LDRFIG>92.0°
</LDRFIG>
<FL-2>Apparent proof</FL-2>
<LDRFIG>85.5°
</LDRFIG>
<FL-2>Obscuration</FL-2>
<LDRFIG>0.5°
</LDRFIG>
<FL-2>True proof</FL-2>
<LDRFIG>86.0°</LDRFIG></LDRWK>
<FP-2>5,350.0 lbs. × 0.12676 (W.G. per pound factor for apparent proof of 85.5°) = 678.2 wine gallons
</FP-2>
<FP-2>678.2 W.G. × 0.86 = 583.3 proof gallons</FP-2></EXAMPLE>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended 1362, as amended (26 U.S.C. 5204, 5211))


</SECAUTH>
</DIV8>


<DIV8 N="§ 30.65" NODE="27:1.0.1.1.25.5.529.5" TYPE="SECTION">
<HEAD>§ 30.65   Table 5, showing the weight per wine gallon (at 60 degrees Fahrenheit) and proof gallon at each percent of proof of spirituous liquor.</HEAD>
<P>This table may be used to ascertain the weight of any given number of wine gallons (at 60 degrees Fahrenheit) or proof gallons of spirits by multiplying the pounds per gallon by the given number of gallons of the spirits. The table should be especially useful where it is desired to weigh a precise quantity of spirits.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to ascertain the weight of 100 wine gallons of 190 proof spirits:
</PSPACE>
<FP-2>6.79434 × 100 equals 679.43 pounds, net weight of 100 wine gallons of 190 proofs spirits.</FP-2></EXAMPLE>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to ascertain the weight of 100 proof gallons of 190 proof spirits.
</PSPACE>
<FP-2>3.57597 × 100 equals 357.60 pounds, net weight of 100 proof gallons of 190 proof spirits.</FP-2></EXAMPLE>
<FP>The slight variation between this table and Tables 2 and 3 on some calculations is due to dropping or adding of fractions beyond the first decimal on those tables. This table also shows the weight per wine gallon (at the prevailing temperature) corresponding to each uncorrected reading of a proof hydrometer.
</FP>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))


</SECAUTH>
</DIV8>


<DIV8 N="§ 30.66" NODE="27:1.0.1.1.25.5.529.6" TYPE="SECTION">
<HEAD>§ 30.66   Table 6, showing respective volumes of alcohol and water and the specific gravity in both air and vacuum of spirituous liquor.</HEAD>
<P>This table provides an alternate method for use in ascertaining the quantity of water needed to reduce the strength of distilled spirits by a definite amount. To do this, divide the alcohol in the given strength by the alcohol in the required strength, multiply the quotient by the water in the required strength, and subtract the water in the given strength from the product. The remainder is the number of gallons of water to be added to 100 gallons of spirits of the given strength to produce a spirit of a required strength.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to reduce spirits of 191 proof to 188 proof. We find that 191 proof spirits contains 95.5 parts alcohol and 5.59 parts water, and 188 proof spirits contains 94.0 parts alcohol and 7.36 parts water.
</PSPACE>
<FP-2>95.5 (the strength of 100 wine gallons of spirits at 191 proof) divided by 94.0 (the strength of 100 wine gallons of spirits at 188 proof) equals 1.01.
</FP-2>
<FP-2>7.36 (the water in 188 proof) multiplied by 1.01 equals 7.43.
</FP-2>
<FP-2>7.43 less 5.59 (the water in 191 proof spirits) equal 1.84 gallons of water to be added to each 100 wine gallons of 191 proof spirits to be reduced.</FP-2></EXAMPLE>
<FP>This rule is applicable for reducing to any proof; but when it is desired to reduce to 100 proof, it is sufficient to point off two decimals in the given proof, multiply by 53.73, and deduct the water in the given strength. Thus, to reduce 112 proof spirits to 100 proof:
</FP>
<EXTRACT>
<FP-2>1.12 × 53.73-47.75 equals 12.42 gallons of water to be added to each 100 wine gallons of spirits to be reduced.</FP-2></EXTRACT>
<FP>This table may also be used to obtain the proof gallonage of spirituous liquor according to weight and percent of proof.
</FP>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to determine the number of gallons in 400 pounds of spirits of 141 percent of proof. Multiply the weight of one gallon of water in air by the specific gravity in air of the spirits—8.32823 by 0.88862—the product (7.40063) divided into 400 gives 54.049 wine gallons, which rounded to the nearest hundredth is 54.05 and multiplied by 1.41 gives 76.2 proof gallons. In rounding off where the decimal is less than five, it will be dropped; if it is five or over a unit will be added.</PSPACE></EXAMPLE>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))


</SECAUTH>
</DIV8>


<DIV8 N="§ 30.67" NODE="27:1.0.1.1.25.5.529.7" TYPE="SECTION">
<HEAD>§ 30.67   Table 7, for correction of volume of spirituous liquors to 60 degrees Fahrenheit.</HEAD>
<P>This table is prescribed for use in correcting spirits to volume at 60 degrees Fahrenheit. To do this, multiply the wine gallons of spirits which it is desired to correct to volume at 60 degrees Fahrenheit by the factor shown in the table at the percent of proof and temperature of the spirits. The product will be the corrected gallonage at 60 degrees Fahrenheit. This table is also prescribed for use in ascertaining the true capacity of containers where the wine gallon contents at 60 degrees Fahrenheit have been determined by weight in accordance with Tables 2, 3, 4, or 5. This is accomplished by dividing the wine gallons at 60 degrees Fahrenheit by the factor shown in the table at the percent of proof and temperature of the spirits. The quotient will be the true capacity of the container.
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to ascertain the volume at 60 degrees Fahrenheit of 1,000 wine gallons of 190 proof spirits at 76 degrees Fahrenheit:
</PSPACE>
<FP-2>1,000 × 0.991 equals 991 wine gallons, the corrected gallonage at 60 degrees Fahrenheit.</FP-2></EXAMPLE>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to ascertain the capacity of a container of 190 proof spirits at 76 degrees Fahrenheit, shown by Table 2 to contain 55.1 wine gallons at 60 degrees Fahrenheit:
</PSPACE>
<FP-2>55.1 divided by 0.991 equals 55.6 wine gallons, the true capacity of the container when filled with spirits of 60 degrees temperature.</FP-2></EXAMPLE>
<FP>It will be noted the table is prepared in multiples of 5 percent of proof and 2 degrees temperature. Where the spirits to be corrected are of an odd temperature, one-half of the difference, if any, between the factors for the next higher and lower temperature, should be added to the factor for the next higher temperature.
</FP>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to correct spirits of 180 proof at 51 degrees temperature:
</PSPACE>
<FP-2>1.006 (50°)−1.005 (52°) = 0.001 divided by 2 = 0.0005
</FP-2>
<FP-2>0.0005 + 1.005 = 1.0055 correction factor at 51 °F.</FP-2></EXAMPLE>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to correct spirits of 180 proof at 53 degrees temperature:
</PSPACE>
<FP-2>1.005 (52°) − 1.003 (54°) = 0.002 divided by 2 = 0.001
</FP-2>
<FP-2>0.001 + 1.003 = 1.004 correction factor at 53 °F.</FP-2></EXAMPLE>
<FP>Where the percent of proof is other than a multiple of five, the difference, if any, between the factors for the next higher and lower proofs should be divided by five and multiplied by the degrees of proof beyond the next lower proof, and the fractional product so obtained should be added to the factor for the next lower proof (if the temperature is above 60 degrees Fahrenheit, the fractional product so obtained must be subtracted from the factor for next lower proof), or if it is also necessary to correct the factor because of odd temperature, to the temperature corrected factor for the next lower proof.
</FP>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to ascertain the correction factor for spirits of 112 proof at 47 degrees temperature:
</PSPACE>
<FP-2>1.006 (46°) − 1.005 (48°) = 0.001 divided by 2 = 0.0005
</FP-2>
<FP-2>0.0005 + 1.005 = 1.0055 corrected factor at 47 °F.
</FP-2>
<FP-2>1.007 (115 proof) − 1.006 (110 proof) = 0.001
</FP-2>
<FP-2>0.001 divided by 5 = 0.0002 (for each percent of proof) × 2 (for 112 proof) = 0.0001
</FP-2>
<FP-2>0.0004 = 1.0055 (corrected factor at 47 °F.) = 1.0059 correction factor to be used for 112 proof at 47 °F</FP-2></EXAMPLE>
<EXAMPLE>
<HED>Example.</HED><PSPACE>It is desired to ascertain the correction factor for spirits of 97 proof at 93 degrees temperature:
</PSPACE>
<FP-2>0.986 (92°) − 0.985 (94°) = 0.001 divided by 2 = 0.0005
</FP-2>
<FP-2>0.0005 + 0.985 = 0.9855 corrected factor at 93 °F.
</FP-2>
<FP-2>0.986 (95 proof)−0.985 (100 proof) = 0.001
</FP-2>
<FP-2>0.001 divided by 5 = 0.0002 (for each percent of proof) × 2 (for 97 proof) = 0.0004
</FP-2>
<FP-2>0.9855 (corrected factor at 93 °F.) = 0.0005 = 0.9851 correction factor to be used for 97 proof at 93 °F.</FP-2></EXAMPLE>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.25.6" TYPE="SUBPART">
<HEAD>Subpart F—Optional Gauging Procedures</HEAD>


<DIV8 N="§ 30.71" NODE="27:1.0.1.1.25.6.529.1" TYPE="SECTION">
<HEAD>§ 30.71   Optional method for determination of proof for spirits containing solids of 400 milligrams or less per 100 milliliters.</HEAD>
<P>The proof of spirits shall be determined to the nearest tenth degree which shall be the proof used in determining the proof gallons and all fractional parts thereof to the nearest tenth proof gallon. The proof of spirits containing solids of 400 milligrams or less per 100 milliliters shall be determined by the use of a hydrometer and a thermometer in accordance with the provisions of § 30.23. However, notwithstanding the provisions of § 30.31, the proprietor may, at their option, add to the proof so determined the obscuration determined as prescribed in § 30.32.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended (26 U.S.C. 5211))


</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]






</CITA>
</DIV8>


<DIV8 N="§ 30.72" NODE="27:1.0.1.1.25.6.529.2" TYPE="SECTION">
<HEAD>§ 30.72   Recording obscuration by proprietors using the optional method for determination of proof.</HEAD>
<P>Any proprietor using the optional method for determination of proof for spirits containing solids of 400 milligrams or less per 100 milligrams as provided in § 30.71 shall record the obscuration so determined on the record of gauge required by 27 CFR part 19.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended (26 U.S.C. 5211))


</SECAUTH>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="31" NODE="27:1.0.1.1.26" TYPE="PART">
<HEAD>PART 31—ALCOHOL BEVERAGE DEALERS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5001, 5002, 5121, 5122-5124, 5131, 5132, 5206, 5207, 5273, 5301, 5352, 5555, 5603, 5613, 5681, 5687, 6061, 6065, 6071, 6091, 6103, 6109, 6723, 6724, 7805.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-79, 74 FR 37407, July 28, 2009, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 31.0" NODE="27:1.0.1.1.26.0.541.1" TYPE="SECTION">
<HEAD>§ 31.0   Scope.</HEAD>
<P>This part contains the requirements relating to the registration of wholesale and retail dealers in liquors and in beer and to the operations of such dealers, including recordkeeping requirements, prescribed under title 26 of the United States Code. This part also contains provisions relating to entry of dealers' premises and inspection of their records by TTB officers.


</P>
</DIV8>


<DIV6 N="A" NODE="27:1.0.1.1.26.1" TYPE="SUBPART">
<HEAD>Subpart A—General Provisions</HEAD>


<DIV8 N="§ 31.1" NODE="27:1.0.1.1.26.1.541.1" TYPE="SECTION">
<HEAD>§ 31.1   Definitions.</HEAD>
<P>As used in this part, the following terms shall have the meanings indicated unless either the context in which they are used requires a different meaning, or a different definition is prescribed for a particular subpart, section, or portion of this part:
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.31, Delegation of the Administrator's Authorities in 27 CFR Part 31, Alcohol Beverage Dealers.
</P>
<P><I>Beer.</I> Beer, ale, porter, stout, and other similar fermented beverages (including sake or similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute therefor.
</P>
<P><I>Beverage use</I> or <I>use for beverage purposes.</I> Use as an alcohol beverage.
</P>
<P><I>Bonded wine cellar.</I> An establishment qualified under this chapter for the production, blending, cellar treatment, storage, bottling, and packaging or repackaging of untaxpaid wine.
</P>
<P><I>Brewery.</I> An establishment qualified under this chapter for the production of beer.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Dealer.</I> Any person who sells, or offers for sale, any distilled spirits, wines, or beer.
</P>
<P><I>Denatured spirits</I> or <I>denatured alcohol.</I> Spirits to which denaturants have been added as prescribed under this chapter.
</P>
<P><I>Distilled spirits</I> or <I>spirits.</I> That substance known as ethyl alcohol, ethanol, or spirits of wine in any form, including all dilutions and mixtures thereof, from whatever source or by whatever process produced.
</P>
<P><I>Distilled spirits plant.</I> An establishment qualified under part 19 of this chapter for the production, storage, or processing of distilled spirits.
</P>
<P><I>Gallon</I> or <I>wine gallon.</I> A United States gallon of liquid measure equivalent to the volume of 231 cubic inches.
</P>
<P><I>Liquor bottle.</I> A bottle made of glass or earthenware, or of other suitable material approved by the Food and Drug Administration, which has been designed or is intended for use as a container for distilled spirits for sale for beverage purposes and which has been determined by the appropriate TTB officer to adequately protect the revenue.
</P>
<P><I>Liquors.</I> Distilled spirits, wines, or beer.
</P>
<P><I>Liter.</I> A metric unit of capacity equal to 1,000 cubic centimeters of alcoholic beverage, and equivalent to 33.814 fluid ounces.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association or other unincorporated organization, fiduciary, company, or corporation, the District of Columbia, or a State or a political subdivision thereof (including a city, county, or other municipality).
</P>
<P><I>Place</I> or <I>place of business.</I> The entire office, plant, or area of the business in any one location under the same proprietorship; and passageways, streets, highways, rail crossings, waterways, or partitions dividing the premises shall not be deemed a separation for the purposes of this part, if the various divisions are otherwise contiguous.
</P>
<P><I>Reclaim.</I> To grind up a liquor bottle or container and use the ground up material to make products other than liquor bottles or containers.
</P>
<P><I>Recycle.</I> To grind up a liquor bottle or container and use the ground up material to make new liquor bottles or containers.
</P>
<P><I>Sale at retail</I> or <I>retail sale.</I> Sale of liquors to a person other than a dealer.
</P>
<P><I>Sale at wholesale</I> or <I>wholesale sale.</I> Sale of liquors to a dealer.
</P>
<P><I>This chapter.</I> Chapter I of title 27 of the Code of Federal Regulations.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>Wine.</I> When used without qualification, the term includes every kind (class and type) of product produced on bonded wine premises from grapes, other fruit (including berries), or other suitable agricultural products and containing not more than 24 percent of alcohol by volume. The term includes all imitation, other than standard, or artificial wine and compounds sold as wine. A wine product containing less than one-half of one percent alcohol by volume is not taxable as wine when removed from the bonded wine premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5002, 5041, 5052, 7805)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.2" NODE="27:1.0.1.1.26.1.541.2" TYPE="SECTION">
<HEAD>§ 31.2   Territorial extent.</HEAD>
<P>The provisions of this part shall be applicable in the several States of the United States and the District of Columbia.


</P>
</DIV8>


<DIV8 N="§ 31.3" NODE="27:1.0.1.1.26.1.541.3" TYPE="SECTION">
<HEAD>§ 31.3   Basic permit requirements.</HEAD>
<P>Every person, except an agency of a State or political subdivision thereof, who intends to engage in the business of purchasing distilled spirits, wines, or beer for sale to other dealers for nonindustrial use, or to engage in the business of importing distilled spirits, wines, or beer for nonindustrial use, is required under part 1 of this chapter to obtain a basic permit authorizing such person to engage in such business.


</P>
</DIV8>


<DIV8 N="§ 31.4" NODE="27:1.0.1.1.26.1.541.4" TYPE="SECTION">
<HEAD>§ 31.4   Relation to State and municipal law.</HEAD>
<P>Compliance with the requirements of this part shall not be held to exempt any person from any penalty or punishment provided by the laws of any State for carrying on any trade or business within such State, or in any manner to authorize the commencement or continuance of such trade or business contrary to the laws of such State or in places prohibited by municipal law; nor shall such compliance be held to prohibit any State from placing a duty or tax on the same trade or business, for State or other purposes.


</P>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:1.0.1.1.26.2" TYPE="SUBPART">
<HEAD>Subpart B—Administrative Provisions</HEAD>


<DIV8 N="§ 31.11" NODE="27:1.0.1.1.26.2.541.1" TYPE="SECTION">
<HEAD>§ 31.11   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Suite 8970, Cincinnati, OH 45202.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a))


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37407, July 28, 2009,, as amended by T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 31.12" NODE="27:1.0.1.1.26.2.541.2" TYPE="SECTION">
<HEAD>§ 31.12   Right of entry and examination.</HEAD>
<P>Any appropriate TTB officer may enter during business hours the premises (including places of storage) of any dealer for the purpose of inspecting or examining any records or other documents required to be kept by such dealer under this part and any distilled spirits, wines, or beer kept or stored by such dealer on such premises.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5123)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.13" NODE="27:1.0.1.1.26.2.541.3" TYPE="SECTION">
<HEAD>§ 31.13   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.31, Delegation of the Administrator's Authorities in 27 CFR Part 31, Alcohol Beverage Dealers. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.


</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37407, July 28, 2009, as amended by T.D. TTB -196, 89 FR 87946, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 31.14" NODE="27:1.0.1.1.26.2.541.4" TYPE="SECTION">
<HEAD>§ 31.14   Penalties.</HEAD>
<P>(a) <I>Criminal penalties.</I> Criminal penalties for failure to comply with the requirements of this part are imposed by 26 U.S.C. 5603 and 5687. A failure to register as required by this part may result in a penalty under 26 U.S.C. 5603(b).
</P>
<P>(b) <I>Administrative penalty.</I> An administrative penalty for failure to supply the required identifying number (employer identification number) in a dealer's registration is imposed by 26 U.S.C. 6723. The penalty is $50 for each such failure, but not more than $100,000 for all such failures during a calendar year. A failure to submit a registration includes a failure to include the identifying number on the registration.
</P>
<P>(c) <I>Reasonable cause.</I> The administrative penalty described in paragraph (b) of this section is not imposed when it is shown that the failure was due to reasonable cause and not due to willful neglect. A dealer who believes that the circumstances that led to the failure were reasonable and who desires to have the penalty waived shall submit a written statement, under the penalty of perjury, affirmatively showing all of the circumstances alleged as reasonable causes for the failure. If the appropriate TTB officer determines that the failure was due to a reasonable cause and not to willful neglect, the penalty will not be assessed. If the dealer exercised ordinary business care and prudence but was nevertheless unable to comply with the requirement, then the failure was due to reasonable cause. Mere ignorance of the law will not be considered a reasonable cause.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5603, 5687, 6109, 6723, 6724)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.15" NODE="27:1.0.1.1.26.2.541.5" TYPE="SECTION">
<HEAD>§ 31.15   Disclosure of information.</HEAD>
<P>Alcohol dealer registration forms are “information returns” as that term is used in 26 U.S.C. 6103 and, as such, are not subject to disclosure except as provided in that law.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6103)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:1.0.1.1.26.3" TYPE="SUBPART">
<HEAD>Subpart C—Activities Subject to This Part</HEAD>


<DIV8 N="§ 31.21" NODE="27:1.0.1.1.26.3.541.1" TYPE="SECTION">
<HEAD>§ 31.21   Basis of regulation.</HEAD>
<P>Persons engaging in or carrying on the business or occupation of selling or offering for sale alcoholic liquors fit for use as a beverage, or any alcoholic liquors sold for use as a beverage, are subject to the provisions of this part. The classes of liquor dealer business and the conditions under which the provisions of this part apply to them are specified in §§ 31.31 through 31.34.


</P>
</DIV8>


<DIV8 N="§ 31.22" NODE="27:1.0.1.1.26.3.541.2" TYPE="SECTION">
<HEAD>§ 31.22   Selling or offering for sale.</HEAD>
<P>Whether the activities of any person constitute engaging in the business of selling or offering for sale is to be determined by the facts in each case. Any manner of selling or offering for sale, even though to a restricted class of persons or without a view to profit, is within the scope of this part.


</P>
</DIV8>


<DIV7 N="541" NODE="27:1.0.1.1.26.3.541" TYPE="SUBJGRP">
<HEAD>Dealers Classified</HEAD>


<DIV8 N="§ 31.31" NODE="27:1.0.1.1.26.3.541.3" TYPE="SECTION">
<HEAD>§ 31.31   Retail dealer in liquors.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in paragraph (b) of this section, every person who sells or offers for sale distilled spirits, wines, or beer to any person other than a dealer is a retail dealer in liquors for purposes of this part. Every retail dealer in liquors must comply with the registration and other requirements of this part, unless the dealer is covered by an applicable exemption under subpart D of this part.
</P>
<P>(b) <I>Persons not deemed to be retail dealers in liquors.</I> The following persons are not retail dealers in liquors within the meaning of this part:
</P>
<P>(1) A retail dealer in beer as described in § 31.33(a),
</P>
<P>(2) A limited retail dealer as described in § 31.35, or
</P>
<P>(3) A person who sells or offers for sale distilled spirits, wines, or beer only as provided in § 31.61 through § 31.64 or § 31.65(a).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.32" NODE="27:1.0.1.1.26.3.541.4" TYPE="SECTION">
<HEAD>§ 31.32   Wholesale dealer in liquors.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in paragraph (b) of this section, every person who sells or offers for sale distilled spirits, wines, or beer to another dealer is a wholesale dealer in liquors for purposes of this part. Every wholesale dealer in liquors must comply with the registration and other requirements of this part, unless the dealer is covered by an applicable exemption under subpart D of this part.
</P>
<P>(b) <I>Persons not deemed to be wholesale dealers in liquors.</I> The following persons are not wholesale dealers in liquors within the meaning of this part:
</P>
<P>(1) A wholesale dealer in beer as described in § 31.34(a);
</P>
<P>(2) A person who sells or offers for sale distilled spirits, wines, or beer only as provided in §§ 31.61 through 31.64, § 31.65(a), or § 31.66; or
</P>
<P>(3) A person returning liquors for credit, refund, or exchange as provided in § 31.67.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.33" NODE="27:1.0.1.1.26.3.541.5" TYPE="SECTION">
<HEAD>§ 31.33   Retail dealer in beer.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in paragraph (b) of this section, every person who sells or offers for sale beer, but not distilled spirits or wines, to any person other than a dealer is a retail dealer in beer for purposes of this part. Every retail dealer in beer must comply with the registration and other requirements of this part, unless the dealer is covered by an applicable exemption under subpart D of this part.
</P>
<P>(b) <I>Persons not deemed to be retail dealers in beer.</I> The following persons are not retail dealers in beer within the meaning of this part:
</P>
<P>(1) A limited retail dealer as described in § 31.35, or
</P>
<P>(2) A person who does not sell or offer for sale distilled spirits or wines and sells beer or offers beer for sale only as provided in § 31.61 through § 31.63 or § 31.65(a).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.34" NODE="27:1.0.1.1.26.3.541.6" TYPE="SECTION">
<HEAD>§ 31.34   Wholesale dealer in beer.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in paragraph (b) of this section, every person who sells or offers for sale beer, but not distilled spirits or wines, to another dealer is a wholesale dealer in beer for purposes of this part. Every wholesale dealer in beer must comply with the registration and other requirements of this part, unless the dealer is covered by an applicable exemption under subpart D of this part.
</P>
<P>(b) <I>Persons not deemed to be wholesale dealers in beer.</I> The following persons are not wholesale dealers in beer within the meaning of this part:
</P>
<P>(1) A person who does not sell or offer for sale distilled spirits or wines and sells beer or offers beer for sale only as provided in §§ 31.61 through 31.63, § 31.65(a), § 31.66, or § 31.67; or
</P>
<P>(2) A person returning beer for credit, refund or exchange as provided in § 31.56.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.35" NODE="27:1.0.1.1.26.3.541.7" TYPE="SECTION">
<HEAD>§ 31.35   Limited retail dealer; persons eligible.</HEAD>
<P>Any person selling distilled spirits, beer, or wine, or any combination thereof, to members, guests, or patrons of bona fide fairs, reunions, picnics, carnivals, or similar outings, and any fraternal, civic, church, labor, charitable, benevolent, or ex-servicemen's organization selling distilled spirits, beer, or wine, or any combination thereof, on the occasion of any kind of entertainment, dance, picnic, bazaar, or festival held by it, is a “limited retail dealer” if the person or organization is not otherwise engaged in business as a dealer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.36" NODE="27:1.0.1.1.26.3.541.8" TYPE="SECTION">
<HEAD>§ 31.36   Sales of 20 wine gallons (75.7 liters) or more.</HEAD>
<P>Any person who sells or offers for sale distilled spirits, wines, or beer, in quantities of 20 wine gallons (75.7 liters) or more, to the same person at the same time, shall be presumed and held to be a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be, unless the seller shows by satisfactory evidence that the sale, or offer for sale, was made to a person other than a dealer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="542" NODE="27:1.0.1.1.26.3.542" TYPE="SUBJGRP">
<HEAD>Certain Organizations, Agencies, and Persons</HEAD>


<DIV8 N="§ 31.41" NODE="27:1.0.1.1.26.3.542.9" TYPE="SECTION">
<HEAD>§ 31.41   Clubs or similar organizations.</HEAD>
<P>(a) Subject to paragraph (b) of this section, a club or similar organization is a dealer for purposes of this part if the club or organization:
</P>
<P>(1) Furnishes liquors to members under conditions constituting a sale (including the acceptance of orders therefor, furnishing the liquors ordered and collecting the price thereof); or
</P>
<P>(2) Conducts a bar for the sale of liquors on the occasion of an outing, picnic, or other entertainment, unless the club is a “limited retail dealer” described in § 31.35. The registration of the proprietor of the premises where the bar is located will not relieve the club or organization from its own obligation to register; or
</P>
<P>(3) Purchases liquors for members without prior agreement concerning payment therefor and such organization subsequently recoups those costs.
</P>
<P>(b) Compliance with the registration and other requirements of this part is not required if money is collected in advance from members for the purchase of liquors, or if money is advanced for the purchase of liquors pursuant to an agreement with the members for reimbursement.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.42" NODE="27:1.0.1.1.26.3.542.10" TYPE="SECTION">
<HEAD>§ 31.42   Restaurants serving liquors with meals.</HEAD>
<P>Proprietors of restaurants and other persons who serve liquors with meals to paying customers, even if no separate or specific charge for the liquors is made, are dealers subject to the provisions of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.43" NODE="27:1.0.1.1.26.3.542.11" TYPE="SECTION">
<HEAD>§ 31.43   States, political subdivisions of States, or the District of Columbia.</HEAD>
<P>A State, a political subdivision of a State, or the District of Columbia, that engages in the business of selling, or offering for sale, distilled spirits, wines, or beer is not exempt from the requirements of this part. However, no such governmental entity shall be required to register more than once as a retail dealer in liquors regardless of the number of locations at which the entity carries on business as a retail dealer in liquors. Any such governmental entity that has properly registered as a wholesale dealer at its principal office, and that has properly registered once as a retail dealer in liquors or beer, is not required to register again at its retail stores by reason of the sale of distilled spirits, wines, or beer at any of those locations to dealers qualified to do business as a dealer within the jurisdiction of that governmental entity.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.44" NODE="27:1.0.1.1.26.3.542.12" TYPE="SECTION">
<HEAD>§ 31.44   Sales of denatured spirits or articles.</HEAD>
<P>It is illegal to sell denatured spirits, or any article containing denatured spirits, for beverage purposes. Any person who sells denatured spirits, or any substance or preparation made with or containing denatured spirits, for use, or for sale for use, for beverage purposes, or who sells any such products under circumstances in which it might reasonably appear that it is the intention of the purchaser to procure the same for sale or use for beverage purposes, is subject to the registration and other requirements of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5273)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.45" NODE="27:1.0.1.1.26.3.542.13" TYPE="SECTION">
<HEAD>§ 31.45   Sales of alcoholic compounds, preparations, or mixtures containing distilled spirits, wines, or beer.</HEAD>
<P>(a) <I>General.</I> Compliance with the provisions of this part is required with respect to the sale, or offering for sale, of alcoholic compounds, preparations, or mixtures containing distilled spirits, wines, or beer, unless those compounds, preparations, or mixtures are unfit for use for beverage purposes and are sold solely for use for nonbeverage purposes.
</P>
<P>(b) <I>Products unfit for beverage use.</I> Products described in § 19.5 of this chapter, for which manufacturers are exempt from qualification requirements, shall be deemed to be unfit for beverage purposes for the purposes of this part.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37407, July 28, 2009, as amended by T.D. TTB-92, 76 FR 9172, Feb. 16, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 31.46" NODE="27:1.0.1.1.26.3.542.14" TYPE="SECTION">
<HEAD>§ 31.46   Sales by agencies and instrumentalities of the United States.</HEAD>
<P>Unless specifically exempt by statute, any agency or instrumentality of the United States, including post exchanges, ship's stores, ship's service stores, and commissaries, or any canteen, club, mess, or similar organization operated under regulations of any such agency or instrumentality, that sells, or offers for sale, distilled spirits, wines, or beer must comply with the registration and other requirements of this part as a dealer in liquors or a dealer in beer, as the case may be.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.47" NODE="27:1.0.1.1.26.3.542.15" TYPE="SECTION">
<HEAD>§ 31.47   Warehouse receipts covering spirits.</HEAD>
<P>The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, every person who sells, or offers for sale, warehouse receipts for distilled spirits held or stored in a distilled spirits plant, customs bonded warehouse, or elsewhere, is required to register and keep records as a wholesale dealer in liquors, or as a retail dealer in liquors, as the case may be, at the place where those warehouse receipts are sold, or offered for sale, unless the person is exempt from those requirements under subpart D of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.48" NODE="27:1.0.1.1.26.3.542.16" TYPE="SECTION">
<HEAD>§ 31.48   Alcohol beverage producers, processors, and bonded warehousemen.</HEAD>
<P>Brewers and proprietors of distilled spirits plants, bonded wine cellars, bonded wine warehouses, and taxpaid wine bottling houses who make sales, whether of their own alcohol beverage products or of such products produced by others, are not exempt from registration and recordkeeping as dealers under this part. However, the registration and recordkeeping requirements applicable to such persons are prescribed in parts 19 (Distilled Spirits Plants), 24 (Wine), and 25 (Beer) of this chapter.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:1.0.1.1.26.4" TYPE="SUBPART">
<HEAD>Subpart D—Exemptions and Exceptions</HEAD>


<DIV7 N="543" NODE="27:1.0.1.1.26.4.543" TYPE="SUBJGRP">
<HEAD>Persons Exempt From Registration and/or Recordkeeping</HEAD>


<DIV8 N="§ 31.51" NODE="27:1.0.1.1.26.4.543.1" TYPE="SECTION">
<HEAD>§ 31.51   Wholesale dealers making retail sales.</HEAD>
<P>A wholesale dealer in liquors who sells, or offers for sale, distilled spirits, wines, or beer, and a wholesale dealer in beer who sells, or offers for sale, only beer, whether to dealers or to persons other than dealers, at any place where the wholesale dealer in liquors or beer has appropriately registered under this part, is exempt from registration at that place as a retail dealer in liquors or in beer.


</P>
</DIV8>


<DIV8 N="§ 31.52" NODE="27:1.0.1.1.26.4.543.2" TYPE="SECTION">
<HEAD>§ 31.52   Wholesale dealers in liquors consummating sales of wines or beer at premises of other dealers.</HEAD>
<P>(a) <I>Sales of wines.</I> Any wholesale dealer in liquors (including the proprietor of a bonded wine cellar) who has registered as a wholesale dealer in liquors for the place from which that dealer conducts selling operations may consummate sales of wines to other wholesale or retail dealers in liquors, or to limited retail dealers, at the purchasers' places of business without having to register again as a wholesale dealer on account of those sales.
</P>
<P>(b) <I>Sales of beer.</I> Any wholesale dealer in liquors who has already registered as such may also consummate sales of beer to wholesale or retail dealers in beer, to wholesale or retail dealers in liquors, or to limited retail dealers, at the purchasers' place of business without having to register again as a wholesale dealer on account of those sales.


</P>
</DIV8>


<DIV8 N="§ 31.53" NODE="27:1.0.1.1.26.4.543.3" TYPE="SECTION">
<HEAD>§ 31.53   Wholesale dealers in beer consummating sales at premises of other dealers.</HEAD>
<P>Any dealer who has registered as a wholesale dealer in beer for the place from which that dealer conducts selling operations may consummate sales of beer (but not wines or distilled spirits) to other dealers at the purchasers' places of business without having to register again as a wholesale dealer on account of those sales.


</P>
</DIV8>


<DIV8 N="§ 31.54" NODE="27:1.0.1.1.26.4.543.4" TYPE="SECTION">
<HEAD>§ 31.54   Hospitals.</HEAD>
<P>Hospitals and similar institutions furnishing liquors to patients are not required to register or keep records under this part, provided that no specific or additional charge is made for the liquors so furnished.


</P>
</DIV8>


<DIV8 N="§ 31.55" NODE="27:1.0.1.1.26.4.543.5" TYPE="SECTION">
<HEAD>§ 31.55   Limited retail dealers.</HEAD>
<P>(a) <I>Sales by limited retail dealers.</I> Limited retail dealers, as described in § 31.35, are not required to register or keep records under this part.
</P>
<P>(b) <I>Sales to limited retail dealers.</I> Retail dealers in liquors or beer who make sales at their registered places of business to limited retail dealers are not required under this part, solely by virtue of those sales, to register or keep records as wholesale dealers.


</P>
</DIV8>

</DIV7>


<DIV7 N="544" NODE="27:1.0.1.1.26.4.544" TYPE="SUBJGRP">
<HEAD>Persons Who Are Not Dealers in Liquors or Beer</HEAD>


<DIV8 N="§ 31.61" NODE="27:1.0.1.1.26.4.544.6" TYPE="SECTION">
<HEAD>§ 31.61   Single sale of liquors or warehouse receipts.</HEAD>
<P>A single sale of distilled spirits, wines, or beer, or a single sale of one or more warehouse receipts for distilled spirits, unattended by circumstances showing the person making the sale to be engaged in that activity as a business, does not subject the vendor to the registration and other requirements of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.62" NODE="27:1.0.1.1.26.4.544.7" TYPE="SECTION">
<HEAD>§ 31.62   Persons making casual sales.</HEAD>
<P>Certain persons making casual sales of liquors are not dealers for purposes of this part and therefore are not required to register, keep records, or submit a report as required of dealers under this part. These persons are:
</P>
<P>(a) Administrators, executors, receivers, and other fiduciaries who receive liquors in their fiduciary capacities and sell them in one parcel or at public auction in parcels of not less than 20 wine gallons (75.7 liters);
</P>
<P>(b) Creditors who receive liquors as security for, or in payment of, debts and sell them in one parcel or at a public auction in parcels of not less than 20 wine gallons (75.7 liters);
</P>
<P>(c) Public officers or court officials who levy on liquors under order or process of any court or magistrate and sell them in one parcel or at public auction in parcels of not less than 20 wine gallons (75.7 liters); and
</P>
<P>(d) A retiring partner, or representative of a deceased partner, who sells liquors to the incoming or remaining partner, or partners, of a partnership.


</P>
</DIV8>


<DIV8 N="§ 31.63" NODE="27:1.0.1.1.26.4.544.8" TYPE="SECTION">
<HEAD>§ 31.63   Agents, auctioneers, brokers, etc., acting on behalf of others.</HEAD>
<P>Certain persons may sell liquors as agents or employees of others (principals), or may receive and transmit orders therefor to a dealer, without being considered a dealer on account of those activities. Those persons, who have no property rights in the liquors sold, may make collections for their principals and receive commissions for their services, or may guarantee the payment of accounts, without being required to register or keep records under this part. In all such cases, however, the principal is required to register and keep records, as provided in this part, at each place where sales are consummated, unless the principal is exempt from those requirements under the provisions of this subpart. The persons covered by this section are:
</P>
<P>(a) Auctioneers who merely sell liquors at auction on behalf of others;
</P>
<P>(b) Agents or brokers who solicit orders for liquors in the name of a principal, but who neither stock nor deliver the liquors for which orders are taken;
</P>
<P>(c) Employees who merely sell liquors on behalf of their employers; and
</P>
<P>(d) Retail dealers in liquors or retail dealers in beer who merely receive and transmit to a wholesale dealer orders for liquors or beer to be billed, charged, and shipped to customers by such wholesale dealers.


</P>
</DIV8>


<DIV8 N="§ 31.64" NODE="27:1.0.1.1.26.4.544.9" TYPE="SECTION">
<HEAD>§ 31.64   Apothecaries or druggists selling medicines and tinctures.</HEAD>
<P>Apothecaries and druggists who use wines or spirituous liquors for compounding medicines and in making tinctures that are unfit for use for beverage purposes are not considered to be dealers by reason of the sale of those compounds or tinctures for nonbeverage purposes.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5002)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.65" NODE="27:1.0.1.1.26.4.544.10" TYPE="SECTION">
<HEAD>§ 31.65   Persons selling products unfit for beverage use.</HEAD>
<P>(a) <I>Vendors not deemed to be dealers.</I> No person selling or offering for sale for nonbeverage purposes products qualifying as unfit for use for beverage purposes under § 19.5 of this chapter shall be deemed, solely by reason of such sales, to be a dealer.
</P>
<P>(b) <I>Restrictions.</I> Any person who sells or offers for sale any nonbeverage products for use, or for sale for use, for beverage purposes, or who sells any of such products under circumstances in which it might reasonably appear that it is the intention of the purchaser to procure the product for sale or use for beverage purposes, must register and keep records as required under this part as a wholesale dealer in liquors, retail dealer in liquors, wholesale dealer in beer, or retail dealer in beer, as appropriate.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37407, July 28, 2009, as amended by T.D. TTB-92, 76 FR 9172, Feb. 16, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 31.66" NODE="27:1.0.1.1.26.4.544.11" TYPE="SECTION">
<HEAD>§ 31.66   Retail dealer selling entire stock in liquidation.</HEAD>
<P>No retail dealer in liquors or retail dealer in beer shall be deemed to be a wholesale dealer in liquors or a wholesale dealer in beer by virtue of selling in liquidation that dealer's entire stock of liquors in one parcel, or in parcels, each of which embraces not less than the entire stock of distilled spirits, of wines, or of beer, which parcels may contain a combination of any or all such liquors, to any other dealer. A retail dealer making such sale or sales is not required to register or to keep records or submit reports of those sales.


</P>
</DIV8>


<DIV8 N="§ 31.67" NODE="27:1.0.1.1.26.4.544.12" TYPE="SECTION">
<HEAD>§ 31.67   Persons returning liquors for credit, refund, or exchange.</HEAD>
<P>No retail dealer in liquors or retail dealer in beer, or other person, shall be deemed to be a wholesale dealer in liquors or a wholesale dealer in beer by virtue of a bona fide return of distilled spirits, wines, or beer to the dealer from whom the distilled spirits, wines, or beer were purchased (or to the successor of such vendor's business or line of merchandise) for credit, refund, or exchange; and the giving of such credit, refund or exchange shall not be deemed to be a purchase within the meaning of § 31.141 of this part. Except in the case of wholesale dealers in liquors required to keep records of their transactions under §§ 31.155 and 31.156, or retail dealers required to keep records under § 31.171, persons returning liquors as provided in this section are not required to keep records or submit reports of such transactions.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5132)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:1.0.1.1.26.5" TYPE="SUBPART">
<HEAD>Subpart E—Places Subject to Registration</HEAD>


<DIV8 N="§ 31.71" NODE="27:1.0.1.1.26.5.545.1" TYPE="SECTION">
<HEAD>§ 31.71   Registration required at each place of business.</HEAD>
<P>Except as otherwise provided in § 31.43 and in subpart D of this part, registration is required under this part for each and every place where distilled spirits, wines, or beer are sold or offered for sale. No person may engage in any business for which registration is required until the place of business has been registered in accordance with this part.


</P>
</DIV8>


<DIV8 N="§ 31.72" NODE="27:1.0.1.1.26.5.545.2" TYPE="SECTION">
<HEAD>§ 31.72   Place of sale.</HEAD>
<P>For purposes of this part, the place at which ownership of liquors is transferred, actually or constructively, is the place of sale.


</P>
</DIV8>


<DIV8 N="§ 31.73" NODE="27:1.0.1.1.26.5.545.3" TYPE="SECTION">
<HEAD>§ 31.73   Place of offering for sale.</HEAD>
<P>Liquors are considered to be offered for sale at the place where they are kept for sale and where a sale could take place, and at any place where sales are in fact consummated. Liquors are not considered to be offered for sale by sending an agent out to take orders, or by establishing an office for the mere purpose of taking orders, so long as in each case the orders received are transmitted to the principal for acceptance at the place where that principal has registered under this part or where the principal is exempt from registration as provided in subpart D of this part.


</P>
</DIV8>


<DIV8 N="§ 31.74" NODE="27:1.0.1.1.26.5.545.4" TYPE="SECTION">
<HEAD>§ 31.74   Places of storage; deliveries therefrom.</HEAD>
<P>Registration is not required under this part for warehouses and similar places that are used by dealers merely for the storage of liquors and that are not places where orders for liquors are accepted. When orders for liquors are received and duly accepted at a place that the dealer has registered under this part, the subsequent actual delivery of the liquors from a place of storage does not require registration at that place of storage. Except as otherwise provided in §§ 31.52 and 31.53, a dealer who registered a given place, and who makes actual delivery of liquors from a warehouse at another place, must register for the place where ownership of the liquors is transferred if there was no prior constructive delivery by the acceptance of an order for the liquors at the place covered by the existing registration.


</P>
</DIV8>


<DIV8 N="§ 31.75" NODE="27:1.0.1.1.26.5.545.5" TYPE="SECTION">
<HEAD>§ 31.75   Dealer in beer and dealer in liquors at the same location.</HEAD>
<P>Any person who registers as a wholesale dealer in beer or retail dealer in beer and who thereafter begins to sell distilled spirits or wine must also register as a wholesale dealer in liquors or retail dealer in liquors before commencing the sale, or offering for sale, of distilled spirits or wine.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV7 N="545" NODE="27:1.0.1.1.26.5.545" TYPE="SUBJGRP">
<HEAD>Sales in Two or More Areas on the Same Premises</HEAD>


<DIV8 N="§ 31.81" NODE="27:1.0.1.1.26.5.545.6" TYPE="SECTION">
<HEAD>§ 31.81   General.</HEAD>
<P>When liquors are sold by a proprietor in two or more areas within the proprietor's place of business, only one registration is required under this part. When the proprietor leases to another person or persons the privilege of selling liquors in two or more areas within the proprietor's place of business, whether the privilege is exercised separately or simultaneously with the proprietor or another concessionaire, each lessee is required to register only once.


</P>
</DIV8>


<DIV8 N="§ 31.82" NODE="27:1.0.1.1.26.5.545.7" TYPE="SECTION">
<HEAD>§ 31.82   Hotels.</HEAD>
<P>The proprietor of a hotel who conducts the sale of liquors throughout the hotel premises is only required to register under this part for one place. For example, different areas operated by the proprietor in the hotel, such as banquet rooms, meeting rooms, and guest rooms, collectively constitute a single place of business. When a concessionaire conducts the sale of liquors at two or more areas in a hotel, those areas are regarded as a single place of business, and the concessionaire is required to register only once.


</P>
</DIV8>


<DIV8 N="§ 31.83" NODE="27:1.0.1.1.26.5.545.8" TYPE="SECTION">
<HEAD>§ 31.83   Ball park, race track, etc.; sales throughout the premises.</HEAD>
<P>The proprietor of a ball park, race track, stadium, pavilion, or other similar enclosure constituting one premises, who engages in the business of selling liquors throughout that enclosure, including sales from baskets or containers by employees on the proprietor's behalf, is required to register only once for the entire enclosure. Each concessionaire having the same privilege throughout the enclosure, whether the privilege is exercised separately or simultaneously with the proprietor or another concessionaire, is required to register only once for the entire enclosure.


</P>
</DIV8>

</DIV7>


<DIV7 N="546" NODE="27:1.0.1.1.26.5.546" TYPE="SUBJGRP">
<HEAD>Sales in Multiple Locations</HEAD>


<DIV8 N="§ 31.91" NODE="27:1.0.1.1.26.5.546.9" TYPE="SECTION">
<HEAD>§ 31.91   Passenger trains, aircraft, and vessels.</HEAD>
<P>Persons who carry on the business of a retail dealer in liquors or of a retail dealer in beer on trains, aircraft, boats, or other conveyances engaged in the business of carrying passengers may conduct that business throughout the passenger carrying train, aircraft, boat, or other vessel, after filing only one registration under this part. Such persons must specify on the registration form the number of passenger carriers for which registration is being completed.


</P>
</DIV8>


<DIV8 N="§ 31.92" NODE="27:1.0.1.1.26.5.546.10" TYPE="SECTION">
<HEAD>§ 31.92   Carriers not engaged in passenger service.</HEAD>
<P>Except as otherwise provided in § 31.93, the retailing of liquors on any train, aircraft, boat, or other conveyance that is not engaged in the business of carrying passengers is prohibited.


</P>
</DIV8>


<DIV8 N="§ 31.93" NODE="27:1.0.1.1.26.5.546.11" TYPE="SECTION">
<HEAD>§ 31.93   Supply boats or vessels.</HEAD>
<P>Persons may carry on the business of a retail dealer in liquor or of a retail dealer in beer on supply boats or vessels operated by them when those persons operate from a fixed address in a port or harbor and supply exclusively boats or other vessels, or persons thereon, at that port or harbor. Such persons must specify, on an attachment to the registration form, the following: that the business will consist of supplying exclusively boats, vessels, or persons thereon; the name of the port or harbor at which the business is to be carried on; and the fixed address from which operations are to be conducted. When such sales are to be made from two or more supply boats or vessels, the dealer must also specify on the attachment the number of supply boats or vessels for which registration is being made. If the dealer operates from two or more fixed addresses, the dealer must prepare one registration form covering all of those addresses and must include on the attachment to the registration form the number of supply boats or vessels operating from each address.


</P>
</DIV8>


<DIV8 N="§ 31.94" NODE="27:1.0.1.1.26.5.546.12" TYPE="SECTION">
<HEAD>§ 31.94   Retail dealers “At Large.”</HEAD>
<P>A retail dealer in liquors or a retail dealer in beer whose business requires the dealer to travel from place to place, such as a dealer who sells at carnivals or circuses, must register “At Large” covering the dealer's activities throughout the United States by filing only one registration. A dealer submitting such a registration must state on the registration form, or on an attachment thereto, the nature of the dealer's business and the reason the dealer requires registration “At Large.”


</P>
</DIV8>


<DIV8 N="§ 31.95" NODE="27:1.0.1.1.26.5.546.13" TYPE="SECTION">
<HEAD>§ 31.95   Caterers.</HEAD>
<P>(a) <I>General.</I> When a contract to furnish liquors is made by a caterer at a place of business for which the caterer has registered under this part, no additional registration is required by virtue of the serving of the liquors at a different location.
</P>
<P>(b) <I>Additional registration.</I> When the contract of a caterer provides for the sale of liquors by the drink at a place, or simultaneously at different places, other than the place of business for which the caterer has registered under this part, a separate registration is required for each such place if the caterer does not keep the records specified in paragraph (c) of this section.
</P>
<P>(c) <I>Records.</I> Caterers must maintain sufficient commercial records to identify all locations where activities subject to registration occur. These commercial records must indicate the names and addresses of locations where alcoholic beverages have been sold or offered for sale and the dates and times that those activities occurred. These commercial records must be available to an appropriate TTB officer upon request.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.96" NODE="27:1.0.1.1.26.5.546.14" TYPE="SECTION">
<HEAD>§ 31.96   Peddling.</HEAD>
<P>No person shall peddle distilled spirits, wines, or beer, except in the circumstances described in §§ 31.52, 31.53, and 31.93. Persons peddling liquors to whom §§ 31.52, 31.53, and 31.93 do not apply are required to register at each place where sales are consummated.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="F" NODE="27:1.0.1.1.26.6" TYPE="SUBPART">
<HEAD>Subpart F—Partnerships</HEAD>


<DIV8 N="§ 31.101" NODE="27:1.0.1.1.26.6.547.1" TYPE="SECTION">
<HEAD>§ 31.101   Registration of partners.</HEAD>
<P>Any number of persons carrying on one business in partnership at any one place must register only once for that business.


</P>
</DIV8>


<DIV8 N="§ 31.102" NODE="27:1.0.1.1.26.6.547.2" TYPE="SECTION">
<HEAD>§ 31.102   Addition of partners or incorporation of partnership.</HEAD>
<P>Where a number of persons who have filed a registration under this part as partners admit one or more new members to the partnership or form a corporation (a separate legal entity) to take over the business, the new partnership or corporation must register as a new dealer before commencing business.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.103" NODE="27:1.0.1.1.26.6.547.3" TYPE="SECTION">
<HEAD>§ 31.103   Formation of a partnership by two dealers.</HEAD>
<P>Where two persons form a partnership after each has registered for a business carried on by himself, the partnership must register as a new dealer to cover the business conducted by the partnership.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.104" NODE="27:1.0.1.1.26.6.547.4" TYPE="SECTION">
<HEAD>§ 31.104   Withdrawal of one or more partners.</HEAD>
<P>When one or more partners withdraw from a partnership that has registered under this part, the remaining partner, or partners, must register the change in control by filing an amended registration form on or before the following July 1.


</P>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:1.0.1.1.26.7" TYPE="SUBPART">
<HEAD>Subpart G—Registration Form, TTB F 5630.5d</HEAD>


<DIV8 N="§ 31.111" NODE="27:1.0.1.1.26.7.547.1" TYPE="SECTION">
<HEAD>§ 31.111   Date registration form is due.</HEAD>
<P>(a) <I>General.</I> Dealers must register by filing the registration form, TTB Form 5630.5d, before engaging in business and on or before July 1 of each year thereafter. However, as long as none of the information specified on the form has changed since the previous registration form was filed, no additional registration is required. If the registration form is received in the mail and the U.S. postmark on the cover shows that it was deposited in the mail in the United States within the time prescribed for filing in an envelope or other appropriate wrapper that was properly addressed with postage prepaid, the form will be considered as timely filed. If the postmark is not legible, the sender has the burden of proving the date when the postmark was made. When registered mail is used, the date of postal registration will be accepted as the postmark date.
</P>
<P>(b) <I>Transition rule.</I> Dealers already engaged in business prior to July 1, 2008, must register as an “existing business” unless they had registered, in accordance with regulations in effect at the time of registration, on or after January 1, 2007. This one-time registration is due on or before July 1, 2009.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6071)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.112" NODE="27:1.0.1.1.26.7.547.2" TYPE="SECTION">
<HEAD>§ 31.112   Registration of multiple locations.</HEAD>
<P>A dealer required to register at two or more locations shall file one registration form, prepared as provided in § 31.114(c), to cover all such locations.


</P>
</DIV8>


<DIV8 N="§ 31.113" NODE="27:1.0.1.1.26.7.547.3" TYPE="SECTION">
<HEAD>§ 31.113   Place for filing registration form.</HEAD>
<P>The registration form, TTB Form 5630.5d, must be filed with TTB in accordance with the instructions on the form.


</P>
</DIV8>


<DIV8 N="§ 31.114" NODE="27:1.0.1.1.26.7.547.4" TYPE="SECTION">
<HEAD>§ 31.114   Completion of registration form.</HEAD>
<P>(a) <I>General.</I> Dealers must register by filing the registration form, TTB Form 5630.5d, Alcohol Dealer Registration. The registration form must be filed with TTB in accordance with this subpart and the instructions on the form.
</P>
<P>(b) <I>Preparation of TTB Form 5630.5d.</I> All of the information called for on TTB Form 5630.5d must be provided. This information includes the following:
</P>
<P>(1) The true name of the dealer.
</P>
<P>(2) The trade name(s) (if any) of the business(es) subject to the registration requirement.
</P>
<P>(3) The employer identification number (see § 31.115).
</P>
<P>(4) The mailing address of the dealer's principal place of business (or principal office, in the case of a corporate dealer).
</P>
<P>(5) The exact location of each place of business, by name and number of building or street, or if these do not exist, by some specific description in addition to the post office address.
</P>
<P>(6) The business telephone number of each place of business.
</P>
<P>(7) The class(es) of dealer in which the dealer operates a business.
</P>
<P>(8) Ownership and control information. This consists of the name, position, and residence address of every owner of the business and of every person having power to control its management and policies with respect to the activity subject to registration. “Owner of the business” includes every partner, if the dealer is a partnership, and every person owning 10 percent or more of its stock, if the dealer is a corporation. However, the ownership and control information required by this paragraph need not be stated if the same information has been previously provided to TTB and that previously provided information is still current.
</P>
<P>(c) <I>Multiple locations and/or classes of dealers.</I> A dealer required to register at more than one location or for more than one class of dealers must—
</P>
<P>(1) File one registration form, TTB Form 5630.5d, to cover all locations and classes of dealers; and
</P>
<P>(2) Prepare, on the form, or on an attachment identified with the taxpayer's name, mailing address (as shown on TTB Form 5630.5d), and employer identification number, a list showing, by States, the trade name, address, telephone number, and dealer class of each location for which registration is being made. The original of the list must be filed with TTB on or with the registration form, and a copy must be retained at the dealer's principal place of business (or principal office, in the case of a corporate dealer) for the period specified in § 31.191.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7805)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.115" NODE="27:1.0.1.1.26.7.547.5" TYPE="SECTION">
<HEAD>§ 31.115   Employer identification number.</HEAD>
<P>(a) <I>Requirement.</I> The employer identification number (as defined in 26 CFR 301.7701-12) of a dealer who has been assigned such a number must be shown on each registration form filed under this part. A dealer who does not have such a number must apply for one as provided in paragraph (b) of this section and enter “number applied for” in the space for the number on the registration form; then, upon receipt of the number from the Internal Revenue Service, the dealer must provide it to TTB by separate correspondence. Failure of a dealer to include the employer identification number may result in the imposition of the penalty specified in § 31.14(b).
</P>
<P>(b) <I>Application for employer identification number.</I> Each dealer who files a registration form and who has not already been assigned an employer identification number must file Internal Revenue Service (IRS) Form SS-4 to apply for one. The dealer shall apply for and be assigned only one employer identification number, regardless of the number of places of business for which the dealer is required to file a registration form under this part. The employer identification number shall be applied for no later than 7 days after the filing of the taxpayer's first registration form. IRS Form SS-4 may be obtained from the director of an IRS service center, from any IRS district director, from <I>https://www.irs.gov/,</I> or from TTB's National Revenue Center.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6109)


</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37407, July 28, 2009, as amended by T.D. TTB-196, 89 FR 87946, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 31.116" NODE="27:1.0.1.1.26.7.547.6" TYPE="SECTION">
<HEAD>§ 31.116   Execution of registration form.</HEAD>
<P>The registration of an individual proprietor shall be signed by the proprietor, the registration of a partnership shall be signed by a member of the firm, and the registration of a corporation shall be signed by a duly authorized officer thereof; however, any individual, partnership, or corporation that is a proprietor may appoint an agent to sign on the proprietor's behalf. The person signing the registration form must identify his or her signing capacity as “individual owner,” “member of firm,” “agent,” or “attorney-in-fact,” as appropriate, or, in the case of a corporation, by the title of the signing officer. A receiver, trustee, assignee, executor, administrator, or other legal representative who continues the business of a dealer by reason of death, insolvency, or other circumstance must indicate the fiduciary capacity in which he or she acts. Registration forms signed by persons as agents or attorneys-in-fact will not be accepted unless, in each instance, the principal named on the form has executed a power of attorney authorizing that person to sign and that power of attorney is filed with the TTB officer with whom the TTB Form 5630.5d is required to be filed. Form 5630.5d must be verified by a written declaration that it has been executed under the penalties of perjury.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6061, 6065)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:1.0.1.1.26.8" TYPE="SUBPART">
<HEAD>Subpart H—Changes in Registration Information</HEAD>


<DIV7 N="547" NODE="27:1.0.1.1.26.8.547" TYPE="SUBJGRP">
<HEAD>Changes Requiring Registration as a New Business</HEAD>


<DIV8 N="§ 31.121" NODE="27:1.0.1.1.26.8.547.1" TYPE="SECTION">
<HEAD>§ 31.121   Sale of business.</HEAD>
<P>Under this part, registration is personal to the one who registered and is not transferable from one dealer to another. Where a change occurs in the proprietorship of a business for which registration has been completed, the successor must register as a new business.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.122" NODE="27:1.0.1.1.26.8.547.2" TYPE="SECTION">
<HEAD>§ 31.122   Incorporation of business.</HEAD>
<P>Where an individual or a firm engaged in business requiring registration under this part forms a corporation to take over and conduct the business, the corporation, as a separate legal entity, must register in its own name as a new business.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.123" NODE="27:1.0.1.1.26.8.547.3" TYPE="SECTION">
<HEAD>§ 31.123   New corporation.</HEAD>
<P>Where a new corporation is formed to take over and conduct the business of one or more corporations that have registered under this part, the new corporation must register in its own name as a new business.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.124" NODE="27:1.0.1.1.26.8.547.4" TYPE="SECTION">
<HEAD>§ 31.124   Stockholder continuing business of corporation.</HEAD>
<P>A registration completed by a corporation as a dealer in liquors, or as a dealer in beer, cannot cover the same business carried on by one or more of its stockholders after dissolution of the corporation. The stockholder(s) must register as a new business.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.125" NODE="27:1.0.1.1.26.8.547.5" TYPE="SECTION">
<HEAD>§ 31.125   Cross references.</HEAD>
<P>See also §§ 31.75, 31.102, and 31.103 for other situations requiring registration as a new dealer.


</P>
</DIV8>

</DIV7>


<DIV7 N="548" NODE="27:1.0.1.1.26.8.548" TYPE="SUBJGRP">
<HEAD>Other Changes</HEAD>


<DIV8 N="§ 31.131" NODE="27:1.0.1.1.26.8.548.6" TYPE="SECTION">
<HEAD>§ 31.131   Change of address.</HEAD>
<P>(a) <I>General.</I> A dealer who removes the business to a place other than that for which the dealer is registered must register the change with TTB by filing an amended registration form, TTB Form 5630.5d, on or before the next July 1 following the change.
</P>
<P>(b) <I>Caterers.</I> A caterer who sells liquor by the drink at locations other than his or her principal place of business shall not be required to provide the change of location registration prescribed in paragraph (a) of this section for those catering activities, provided that the caterer maintains the records required by § 31.95(c). For a permanent change in location of the principal place of business, the caterer must file an amended registration form in accordance with paragraph (a) of this section.


</P>
</DIV8>


<DIV8 N="§ 31.132" NODE="27:1.0.1.1.26.8.548.7" TYPE="SECTION">
<HEAD>§ 31.132   Change in name or style of business.</HEAD>
<P>A dealer who has registered for a business at a given location must complete an amended registration, and submit it on or before the next July 1, to report a change in the name or style (trade name) under which the dealer conducts that business.


</P>
</DIV8>


<DIV8 N="§ 31.133" NODE="27:1.0.1.1.26.8.548.8" TYPE="SECTION">
<HEAD>§ 31.133   Change in management.</HEAD>
<P>A change in management that involves no change in ownership of the business requires an amended registration only if the change involves a person who is responsible for controlling the management policies or buying or selling practices of the business pertaining to alcohol beverages. The amended registration must be submitted on TTB Form 5630.5d on or before the next July 1 following the change.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.134" NODE="27:1.0.1.1.26.8.548.9" TYPE="SECTION">
<HEAD>§ 31.134   Increase in capital stock of a corporation.</HEAD>
<P>An amended registration is not required by reason of an increase in the capital stock of a corporation so long as a new corporation is not created under the laws of the State of incorporation and provided that the change does not alter the list of stockholders owning 10 percent or more of the capital stock.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5124)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.135" NODE="27:1.0.1.1.26.8.548.10" TYPE="SECTION">
<HEAD>§ 31.135   Change in ownership of capital stock.</HEAD>
<P>Registration as a new business is not required merely by reason of the sale or transfer of all or a controlling interest in the capital stock of a corporation. However, an amended registration is required if the sale or transfer alters the list of stockholders owning 10 percent or more of the capital stock. The amended registration must be filed on or before the next July 1 following the sale or transfer.


</P>
</DIV8>


<DIV8 N="§ 31.136" NODE="27:1.0.1.1.26.8.548.11" TYPE="SECTION">
<HEAD>§ 31.136   Change in membership of unincorporated club.</HEAD>
<P>Registration of an unincorporated club is not required by reason of changes in membership, when those changes do not result in the dissolution of the club and the formation of a new club, unless the changes involve a person with the power to control the management policies or buying or selling practices pertaining to alcohol. In the latter case, the filing of an amended registration is required on or before the next July 1.


</P>
</DIV8>


<DIV8 N="§ 31.137" NODE="27:1.0.1.1.26.8.548.12" TYPE="SECTION">
<HEAD>§ 31.137   Withdrawal of partner(s).</HEAD>
<P>Withdrawal of partner(s) requires an amended registration. See § 31.104.


</P>
</DIV8>


<DIV8 N="§ 31.138" NODE="27:1.0.1.1.26.8.548.13" TYPE="SECTION">
<HEAD>§ 31.138   Discontinuance of business.</HEAD>
<P>A dealer going out of business must register that event within 30 days by filing a registration form, TTB Form 5630.5d, in accordance with instructions on the form.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="I" NODE="27:1.0.1.1.26.9" TYPE="SUBPART">
<HEAD>Subpart I—Restrictions Relating to Purchases of Distilled Spirits</HEAD>


<DIV8 N="§ 31.141" NODE="27:1.0.1.1.26.9.549.1" TYPE="SECTION">
<HEAD>§ 31.141   Unlawful purchases of distilled spirits.</HEAD>
<P>(a) <I>General.</I> It is unlawful for any dealer to purchase distilled spirits for resale from any person other than:
</P>
<P>(1) A wholesale dealer (including a State, a political subdivision of a State, the District of Columbia, and a distilled spirits plant) who is required to keep records under §§ 31.151 through 31.163 pertaining to the place where the distilled spirits are purchased;
</P>
<P>(2) A retail liquor store operated by a State, a political subdivision of a State, or the District of Columbia; or
</P>
<P>(3) A person not required to register as a wholesale liquor dealer, as provided in §§ 31.62, 31.63, 31.66, and 31.67.
</P>
<P>(b) <I>Special provision for limited retail dealers.</I> A limited retail dealer may purchase distilled spirits from a retail dealer in liquors for resale.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5132)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:1.0.1.1.26.10" TYPE="SUBPART">
<HEAD>Subpart J—Records and Reports</HEAD>


<DIV7 N="549" NODE="27:1.0.1.1.26.10.549" TYPE="SUBJGRP">
<HEAD>Wholesale Dealers' Records and Reports</HEAD>


<DIV8 N="§ 31.151" NODE="27:1.0.1.1.26.10.549.1" TYPE="SECTION">
<HEAD>§ 31.151   General requirements as to distilled spirits.</HEAD>
<P>Except as otherwise provided in §§ 31.153 and 31.154, every wholesale dealer in liquors must keep daily records of the physical receipt and disposition of distilled spirits in accordance with §§ 31.155 and 31.156. When required in writing by the appropriate TTB officer, a wholesale dealer in liquors must also prepare and file a monthly summary report totaling the daily receipts and disposition of distilled spirits in accordance with § 31.160.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.152" NODE="27:1.0.1.1.26.10.549.2" TYPE="SECTION">
<HEAD>§ 31.152   Requirements as to wines and beer.</HEAD>
<P>Every wholesale dealer in liquors who receives wines, or wines and beer, and every wholesale dealer in beer must keep at the dealer's place of business a complete record showing the quantities of wine and beer received, from whom the wine and beer were received, and the dates of receipt. This record, which must be kept for a period of not less than three years as prescribed in § 31.191, shall consist of all purchase invoices or bills covering wines and beer received or, at the option of the dealer, a book record containing all of the required information. Wholesale dealers are not required to prepare or submit reports to the appropriate TTB officer of transactions relating to wines and beer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0065) 


</APPRO>
</DIV8>


<DIV8 N="§ 31.153" NODE="27:1.0.1.1.26.10.549.3" TYPE="SECTION">
<HEAD>§ 31.153   Records to be kept by States, political subdivisions of States, or the District of Columbia.</HEAD>
<P>The provisions of this subpart regarding the maintenance of records and the submission of reports shall not apply to States, political subdivisions of States, or the District of Columbia, or to any liquor stores operated by such entities that maintain, and make available for inspection by appropriate TTB officers, records that will enable TTB to verify receipts of wines and beer and to trace readily all distilled spirits received and disposed of by those entities. However, States, political subdivisions of States, and the District of Columbia, and liquor stores operated by such entities, must, on request of the appropriate TTB officer, furnish such transcripts, summaries, and copies of records with respect to distilled spirits as that TTB officer may require.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.154" NODE="27:1.0.1.1.26.10.549.4" TYPE="SECTION">
<HEAD>§ 31.154   Records to be kept by alcohol beverage producers, processors, and bonded warehousemen.</HEAD>
<P>Wholesale liquor dealer operations conducted by brewers and by proprietors of distilled spirits plants, bonded wine cellars, bonded wine warehouses, and taxpaid wine bottling houses must be recorded and reported in accordance with the applicable provisions of parts 19, 24, and 25 of this chapter. To the extent that the same transactions are required to be recorded or reported by this part and by parts 19, 24, or 25, the records and reports required by those parts will satisfy the requirements of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5207, 5367, 5415)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.155" NODE="27:1.0.1.1.26.10.549.5" TYPE="SECTION">
<HEAD>§ 31.155   Records of receipt.</HEAD>
<P>(a) <I>Information required.</I> Every wholesale dealer in liquors must maintain a daily record of the physical receipt of each individual lot or shipment of distilled spirits. This record must show, at a minimum, the following:
</P>
<P>(1) Name and address of consignor;
</P>
<P>(2) Date of receipt, including date of inventory for recorded gains;
</P>
<P>(3) Brand name;
</P>
<P>(4) Name of producer or bottler. However, this may be omitted if the dealer keeps available for inspection a separate list or record identifying the producer or bottler with the brand name;
</P>
<P>(5) Kind of spirits. However, this may be omitted if the dealer keeps available for inspection a separate list or record identifying “kind” with the brand name;
</P>
<P>(6) Quantity actually received, showing number of packages, if any, and number of cases by size of bottle, and explaining any difference from the quantity shown on the commercial papers covering the shipment; and
</P>
<P>(7) Package identification numbers of containers of alcohol received for repackaging for industrial use pursuant to subpart L of this part.
</P>
<P>(b) <I>Form of record.</I> The record required by paragraph (a) of this section must be a part of the accounting system and must consist of consignors' invoices (or, if those invoices are not available on the day the shipment is received, memorandum receiving records prepared on the day of receipt of the distilled spirits, including records of inventory for recorded gains) and credit memorandums covering distilled spirits returned to the dealer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0065) 


</APPRO>
</DIV8>


<DIV8 N="§ 31.156" NODE="27:1.0.1.1.26.10.549.6" TYPE="SECTION">
<HEAD>§ 31.156   Records of disposition.</HEAD>
<P>(a) <I>Information required.</I> Every wholesale dealer in liquors must prepare a daily record of the physical disposition of each individual lot of distilled spirits. This record must show, at a minimum, the following:
</P>
<P>(1) Name and address of consignee;
</P>
<P>(2) Date of disposition, including date of discovery in the case of casualty, theft or recorded inventory losses;
</P>
<P>(3) Brand name;
</P>
<P>(4) Kind of spirits. However, this may be omitted if the dealer keeps available for inspection a separate list or record identifying “kind” with the brand name;
</P>
<P>(5) Number of packages, if any, and number of cases by size of bottle; and
</P>
<P>(6) Package identification numbers of containers of alcohol repackaged for industrial use pursuant to subpart L of this part.
</P>
<P>(b) <I>Form of record.</I> The record required by paragraph (a) of this section must be part of the accounting system and must consist of wholesale dealer's invoices (or, if those invoices are not available at the time the spirits are removed, memorandum shipping records prepared at the time of removal of the distilled spirits, including date of discovery in the case of casualty, theft or recorded inventory losses).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0065) 


</APPRO>
</DIV8>


<DIV8 N="§ 31.157" NODE="27:1.0.1.1.26.10.549.7" TYPE="SECTION">
<HEAD>§ 31.157   Canceled or corrected records.</HEAD>
<P>Entries on the records of receipt and disposition prescribed by §§ 31.155 and 31.156 must not be erased or obliterated. Correction or deletion of any entry must be accomplished by drawing a line through the entry and inserting an appropriate correction or explanation. If a wholesale dealer in liquors voids an invoice for any reason, the file copy prescribed in § 31.181 must be marked “Cancelled” and must be filed as provided in that section; any remaining copy of the voided invoice must be destroyed or similarly cancelled and filed. If a new invoice is prepared, its serial number must be cross referenced on any retained copies of the cancelled invoice.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.158" NODE="27:1.0.1.1.26.10.549.8" TYPE="SECTION">
<HEAD>§ 31.158   Previously prescribed or approved records of receipt and disposition.</HEAD>
<P>A wholesale dealer in liquors may continue to use records of receipt and disposition in a format previously prescribed or approved. Those records must show the information required by paragraph (a) of § 31.155 or paragraph (a) of § 31.156, as applicable. The records must be preprinted with the name and address of the wholesale dealer. Each sheet or page must bear a preprinted serial number, or page serial numbers may be affixed in unbroken sequence during the preparation or processing of the records. A serial number must not be duplicated within a period of 6 months.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.159" NODE="27:1.0.1.1.26.10.549.9" TYPE="SECTION">
<HEAD>§ 31.159   Variations in format or preparation of records.</HEAD>
<P>(a) <I>Authorization.</I> The appropriate TTB officer may approve variations in the type and format of records of receipt and disposition required under §§ 31.155 and 31.156, or in the methods of preparing those records, when it is shown that variations from the requirements are necessary in order to use data processing equipment, other business machines, or existing accounting systems, and provided that the variation will not unduly hinder the effective administration of this part, jeopardize the revenue, or be contrary to any provision of law. A dealer who wishes to employ such a variation must submit a written application to the appropriate TTB officer. The application must describe the proposed variation and set forth the need for it. Variations in type and format of records or methods of preparation must not be employed until approval is received from the appropriate TTB officer.
</P>
<P>(b) <I>Requirements.</I> Any information required by this part to be kept or filed is subject to the provisions of law and this part relating to required records and reports, regardless of the form or manner in which kept or filed.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0067)


</APPRO>
</DIV8>


<DIV8 N="§ 31.160" NODE="27:1.0.1.1.26.10.549.10" TYPE="SECTION">
<HEAD>§ 31.160   Monthly summary report.</HEAD>
<P>(a) <I>Requirement.</I> Every wholesale dealer in liquors must, when required, submit monthly to the appropriate TTB officer a summary report of the total quantities of all distilled spirits received and disposed of daily during the month (including the date of discovery for theft, casualty and inventory losses and inventory gains). This report must be posted by the wholesaler on a daily basis. If there were no receipts or disposals of distilled spirits during the month, the report must be marked “No Transactions During Month.” This report must be filed not later than the 15th day of the month following the report period, with a copy retained by the dealer. The appropriate TTB officer may authorize a dealer, upon request, to post the report less frequently until otherwise notified; the appropriate TTB officer's authorization will specify the intervals at which the posting will be accomplished, but not less frequently than monthly.
</P>
<P>(b) <I>Form of report.</I> When required under paragraph (a) of this section, the monthly summary report may be prepared in a format that is adapted to the dealer's accounting and recordkeeping systems. In addition to any other information shown therein, the report must include:
</P>
<P>(1) Daily totals of all bottled spirits received and disposed of, recorded by wine gallons or liters;
</P>
<P>(2) Daily totals of all bulk spirits in packages received and disposed of, recorded by proof gallons; and
</P>
<P>(3) Entries showing, by date, each disposition caused by an inventory, casualty, or theft loss and each receipt caused by a recorded gain in inventory.
</P>
<P>(c) <I>Declaration.</I> When required to be filed, the monthly summary report must bear the following declaration signed by the dealer or an authorized agent:
</P>
<EXTRACT>
<P>I declare under the penalties of perjury that I have examined this report and, to the best of my knowledge and belief, it is true, correct, and complete and is supported by true, correct, and complete records which are available for inspection.</P></EXTRACT>
<P>(d) <I>Other records.</I> Even if the monthly summary report is not required by the appropriate TTB officer, every wholesale dealer in distilled spirits must maintain and make available for review by appropriate TTB officers:
</P>
<P>(1) Records of receipt required by § 31.155;
</P>
<P>(2) Records of disposition, required by § 31.156; and
</P>
<P>(3) Any other supporting information or documents regarding the receipt and disposition of distilled spirits that have a direct role in determining the completeness and accuracy of the receipt and disposition records.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0065) 


</APPRO>
</DIV8>


<DIV8 N="§ 31.161" NODE="27:1.0.1.1.26.10.549.11" TYPE="SECTION">
<HEAD>§ 31.161   Conversion between metric and U.S. units.</HEAD>
<P>When liters are converted to wine gallons, the quantity in liters must be multiplied by 0.264172 to determine the equivalent quantity in wine gallons. Once converted to wine gallons, the proof gallons of spirits in cases must be determined as provided in § 30.52 of this chapter. Cases containing the same quantity of spirits of the same proof in metric bottles may be converted to U.S. units by multiplying the liters in one case by the number of cases to be converted, as follows:
</P>
<P>(a) If the conversion from liters to U.S. units is made before multiplying by the number of cases, the quantity in U.S. units must be rounded to the sixth decimal; and
</P>
<P>(b) If the conversion is made after multiplying by the number of cases, the quantity in U.S. units must be rounded to the nearest hundredth.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7805; 27 U.S.C. 205)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.162" NODE="27:1.0.1.1.26.10.549.12" TYPE="SECTION">
<HEAD>§ 31.162   Discontinuance of business.</HEAD>
<P>When a wholesale dealer in liquors who is required, under § 31.160, to file a monthly summary report discontinues business, a monthly summary report marked “Final” must be filed covering transactions through the date of discontinuance.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.163" NODE="27:1.0.1.1.26.10.549.13" TYPE="SECTION">
<HEAD>§ 31.163   Requirements when a wholesale dealer in liquors maintains a retail department.</HEAD>
<P>(a) <I>Constructive receipt and sale.</I> When a wholesale dealer in liquors maintains a separate department on the premises for the retailing of distilled spirits, and the retail sales of distilled spirits normally represent 90 percent or more of the volume of distilled spirits sold, the dealer may “constructively” receive all distilled spirits in the retail department. Sales involving a wholesale transaction may be “constructively” sold through the wholesale department.
</P>
<P>(1) <I>Receipts.</I> In lieu of maintaining and preparing the records required by § 31.155, a wholesale dealer may constructively receive all distilled spirits in its retail department. In this case, the receiving document will serve as a receipt for (through) the wholesale department and a disposition (transfer) to the retail department. The receiving document must be maintained by the retail department in accordance with § 31.171.
</P>
<P>(2) <I>Dispositions.</I> In lieu of maintaining and preparing the records required by § 31.156, a wholesale dealer may constructively sell distilled spirits from its retail department to other dealers. The sales invoice or bill must be filed in the wholesaler's disposition records and will serve as a record of receipt from the retail department and a record of disposition to another dealer.
</P>
<P>(b) <I>Receipt and disposition records.</I> Except as provided in paragraph (a) of this section, a wholesale dealer must prepare and maintain the required records of receipt and disposition as prescribed in §§ 31.155 and 31.156. Transfers between the wholesale and retail departments will be treated in the same manner as any other transaction involving the wholesale department.
</P>
<P>(c) <I>Monthly summary report.</I> When required by § 31.160, a wholesale dealer must prepare and file the monthly summary report of actual or constructive receipts and dispositions of all distilled spirits.
</P>
<P>(d) <I>Physical separation.</I> Wholesale and retail departments need not be physically separated.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="550" NODE="27:1.0.1.1.26.10.550" TYPE="SUBJGRP">
<HEAD>Filing of Wholesale Dealers' Records and Reports</HEAD>


<DIV8 N="§ 31.171" NODE="27:1.0.1.1.26.10.550.14" TYPE="SECTION">
<HEAD>§ 31.171   Method of filing.</HEAD>
<P>A wholesale dealer may file the records of receipt and disposition required by §§ 31.155 and 31.156 in accordance with the wholesaler's regular accounting and recordkeeping systems. The required records must include the dealer's own file copies of the receiving or shipping invoices and must be filed according to the following rules:
</P>
<P>(a) Wholesale dealers may file records of receipt and disposition in accordance with their own filing system as long as the records are filed by transaction or reporting date and the filing system systematically and accurately accounts for all receipts and dispositions of distilled spirits.
</P>
<P>(b) The required records of receipt and disposition must be filed not later than one business day following the date the transaction occurred.
</P>
<P>(c) Supporting documents for receipts and dispositions, such as delivery receipts and bills of lading, also may be filed in accordance with the wholesaler's regular accounting and recordkeeping practices.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5121, 5122, 5123)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.172" NODE="27:1.0.1.1.26.10.550.15" TYPE="SECTION">
<HEAD>§ 31.172   Place of filing.</HEAD>
<P>Records of receipt and disposition and monthly summary reports required by §§ 31.155, 31.156, and 31.160 must be maintained at the dealer's place of business. The appropriate TTB officer may, upon request, authorize maintenance of files, or an individual file, at another business location under the control of the same wholesale dealer, when it is determined that such maintenance will not cause undue inconvenience to TTB officers desiring to examine those files.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5123)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="551" NODE="27:1.0.1.1.26.10.551" TYPE="SUBJGRP">
<HEAD>Retail Dealer's Records</HEAD>


<DIV8 N="§ 31.181" NODE="27:1.0.1.1.26.10.551.16" TYPE="SECTION">
<HEAD>§ 31.181   Requirements for retail dealers.</HEAD>
<P>(a) <I>Records of receipt.</I> All retail dealers must keep at their place of business complete records showing the quantities of all distilled spirits, wines, and beer received, from whom the distilled spirits, wines, and beer were received, and the dates of receipt. However, the appropriate TTB officer may, upon request, authorize the maintenance of records at another business premises also under the control of the same retail dealer when it is determined that such maintenance will not cause undue inconvenience to TTB officers desiring to examine those records. Records of receipts shall consist of all purchase invoices or bills covering distilled spirits, wines, and beer received, or, at the option of the retail dealer, a book record containing all of the required information.
</P>
<P>(b) <I>Records of sales of 20 wine gallons (75.7 liters) or more.</I> Every retail dealer who makes sales of distilled spirits, of wines, or of beer in quantities of 20 wine gallons (75.7 liters) or more to the same person at the same time must prepare and keep a record of each sale. The record must show the date of sale, the name and address of the purchaser, the kind and quantity of each kind of liquors sold, and the serial numbers of all full cases of distilled spirits included in the sale. Each entry on that record must be supported by a corresponding delivery receipt (which may be executed on a copy of the sales slip) signed by the purchaser or the purchaser's agent.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5122, 5123)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0066) 


</APPRO>
</DIV8>

</DIV7>


<DIV7 N="552" NODE="27:1.0.1.1.26.10.552" TYPE="SUBJGRP">
<HEAD>Retention of Records and Files</HEAD>


<DIV8 N="§ 31.191" NODE="27:1.0.1.1.26.10.552.17" TYPE="SECTION">
<HEAD>§ 31.191   Period of retention.</HEAD>
<P>All records and files, all documents or copies of documents supporting these records and files, and all file copies of reports, submitted as required by this part, must be retained by the person required to have them, for a period of not less than three years and, during the retention period, must be available, during business hours, for inspection and copying by the appropriate TTB officers. In addition, the appropriate TTB officer may require retention of the documents and other records for an additional period of not more than three years if it is determined that such additional retention is necessary.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5123)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.192" NODE="27:1.0.1.1.26.10.552.18" TYPE="SECTION">
<HEAD>§ 31.192   Photographic copies of records.</HEAD>
<P>(a) <I>General.</I> Dealers may record, copy, or reproduce records required by this part. Dealers may use any process that accurately reproduces the original record and that forms a durable medium for preserving the original record.
</P>
<P>(b) <I>Copies of records treated as original records.</I> Whenever records are reproduced under this section, the reproduced records must be preserved in conveniently accessible files, and provision must be made for examining, viewing, and using the reproduced record in the same manner as if it were the original record. A reproduced record will be treated and considered for all purposes as though it were the original record. All provisions of law and regulations applicable to the original record are applicable to the reproduced record. As used in this section, “original record” means the record required by this part to be maintained or preserved by a dealer, even though it may be an executed duplicate or other copy of the document.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5555)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="K" NODE="27:1.0.1.1.26.11" TYPE="SUBPART">
<HEAD>Subpart K—Reuse and Possession of Used Liquor Bottles</HEAD>


<DIV8 N="§ 31.201" NODE="27:1.0.1.1.26.11.553.1" TYPE="SECTION">
<HEAD>§ 31.201   Refilling of liquor bottles.</HEAD>
<P>No person who sells, or offers for sale, distilled spirits, or agent or employee of such person, shall:
</P>
<P>(a) Place in any liquor bottle any distilled spirits whatsoever other than those contained in that bottle at the time of closing under the provisions of 26 U.S.C. chapter 51; or
</P>
<P>(b) By the addition of any substance whatsoever to any liquor bottle, in any manner alter or increase any portion of the original contents contained in that bottle at the time of closing under the provisions of 26 U.S.C. chapter 51.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5301)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.202" NODE="27:1.0.1.1.26.11.553.2" TYPE="SECTION">
<HEAD>§ 31.202   Possession of refilled liquor bottles.</HEAD>
<P>No person who sells, or offers for sale, distilled spirits, or agent or employee of such person, shall:
</P>
<P>(a) Possess any liquor bottle in which any distilled spirits have been placed in violation of the provisions of § 31.201; or
</P>
<P>(b) Possess any liquor bottle, any portion of the contents of which has been altered or increased in violation of the provisions of § 31.201.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5301)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.203" NODE="27:1.0.1.1.26.11.553.3" TYPE="SECTION">
<HEAD>§ 31.203   Possession of used liquor bottles.</HEAD>
<P>The possession of used liquor bottles by any person other than the person who empties the contents thereof is prohibited except in the following circumstances:
</P>
<P>(a) The owner or occupant of any premises on which the used bottles have been lawfully emptied may assemble the bottles on such premises—
</P>
<P>(1) For delivery to a bottler or importer on specific request of that bottler or importer;
</P>
<P>(2) For destruction, either on the premises on which the bottles are emptied or elsewhere, including disposition for purposes that will result in the bottles being rendered unusable as bottles; or
</P>
<P>(3) In the case of unusual or distinctive bottles, for disposition or sale as collectors' items or for other purposes not involving the packaging of any product for sale;
</P>
<P>(b) Any person may possess, offer for sale, or sell unusual or distinctive bottles for purposes not involving the packaging of any product for sale; and
</P>
<P>(c) Any person may assemble used liquor bottles for the purpose of recycling or reclaiming the glass or other approved liquor bottle material.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5301)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.204" NODE="27:1.0.1.1.26.11.553.4" TYPE="SECTION">
<HEAD>§ 31.204   Mixed cocktails.</HEAD>
<P>A retail liquor dealer who mixes cocktails or compounds any alcoholic liquors in advance of sale, as provided in § 31.233, may not use liquor bottles in which distilled spirits have been previously packaged for the storage of the mixture or compound pending that sale.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5301)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:1.0.1.1.26.12" TYPE="SUBPART">
<HEAD>Subpart L—Packaging of Alcohol for Industrial Uses</HEAD>


<DIV8 N="§ 31.211" NODE="27:1.0.1.1.26.12.553.1" TYPE="SECTION">
<HEAD>§ 31.211   Requirements and procedure.</HEAD>
<P>Upon compliance with the provisions of part 19 of this chapter applicable to persons repackaging distilled spirits, and subject to the requirements of paragraphs (a) through (c) of this section, a dealer engaged in the business of supplying distilled spirits for industrial use may obtain bulk alcohol on which the tax has been paid or determined and repackage the alcohol for sale for industrial use in containers of a capacity in excess of 1 wine gallon and not more than 5 wine gallons.
</P>
<P>(a) <I>Qualification procedure.</I> An application for registration, TTB Form 5110.41, and an application for an operating permit, TTB Form 5110.25, modified in accordance with instructions of the appropriate TTB officer, must be executed and filed with the appropriate TTB officer. No alcohol shall be repackaged until the approved application for registration and the approved operating permit are received.
</P>
<P>(b) <I>Operations.</I> Repackaging operations must be conducted in accordance with the bottling and packaging requirements of part 19 of this chapter. Packaging and labeling operations may be carried on without supervision of a TTB officer unless the appropriate TTB officer requires supervision.
</P>
<P>(c) <I>Records.</I> The dealer must keep daily records showing the bulk alcohol received, dumped for packaging, packaged, and disposed of, including the name and address of each consignor and consignee. The dealer must prepare a monthly report on TTB Form 5110.28 of bulk alcohol received, packaged, and disposed of. Reports on Form 5110.28 must be submitted to the appropriate TTB officer not later than the 15th day of the month following the period covered by the report. Records, documents, or copies of documents supporting the records, and copies of reports submitted to the appropriate TTB officer, must be filed and retained as prescribed in §§ 31.172 and 31.191.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5131, 5206)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.212" NODE="27:1.0.1.1.26.12.553.2" TYPE="SECTION">
<HEAD>§ 31.212   Labeling.</HEAD>
<P>Every dealer packaging alcohol for industrial use must affix to each package filled a label bearing in conspicuous print the words “Alcohol” and “For Industrial Use,” the proof of the alcohol, the capacity of the container, and the packaging dealer's name and address. The dealer may incorporate in the label other appropriate statements; however, such statements must not obscure or contradict the data required by this section to be shown on such labels.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5131, 5206)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="M" NODE="27:1.0.1.1.26.13" TYPE="SUBPART">
<HEAD>Subpart M—Distilled Spirits for Export with Benefit of Drawback</HEAD>


<DIV8 N="§ 31.221" NODE="27:1.0.1.1.26.13.553.1" TYPE="SECTION">
<HEAD>§ 31.221   General.</HEAD>
<P>A State, a political subdivision of a State, or a person holding a wholesale liquor dealer's basic permit issued under part 1 of this chapter may export bottled taxpaid distilled spirits with benefit of drawback as provided in § 28.171 of this chapter. The marking of cases, the preparation of notice of shipment on TTB Form 5110.30, the removal and exportation of the distilled spirits, and the filing of claims by the processor of the spirits must be in accordance with the applicable provisions of parts 19 and 28 of this chapter.


</P>
</DIV8>


<DIV8 N="§ 31.223" NODE="27:1.0.1.1.26.13.553.2" TYPE="SECTION">
<HEAD>§ 31.223   Records and reports.</HEAD>
<P>The provisions of subpart J of this part regarding records and reports relating to liquors for domestic use also apply to export transactions permitted under this subpart.


</P>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:1.0.1.1.26.14" TYPE="SUBPART">
<HEAD>Subpart N—Miscellaneous</HEAD>


<DIV8 N="§ 31.231" NODE="27:1.0.1.1.26.14.553.1" TYPE="SECTION">
<HEAD>§ 31.231   Destruction of marks and brands on wine containers.</HEAD>
<P>A dealer who empties any cask, barrel, keg, or other bulk container of wine must scrape or obliterate from the empty container all marks, brands, tags, or labels placed thereon under the provisions of part 24 of this chapter as evidence of the payment or determination of the tax on the wine removed in the container from the bonded wine cellar.


</P>
</DIV8>


<DIV8 N="§ 31.232" NODE="27:1.0.1.1.26.14.553.2" TYPE="SECTION">
<HEAD>§ 31.232   Wine bottling.</HEAD>
<P>Each person desiring to bottle, package, or repackage taxpaid wines must, before carrying on those operations, apply and receive permission from the appropriate TTB officer in accordance with part 24 of this chapter. The decanting of wine by caterers or other retail dealers for table or room service, banquets, and similar purposes shall not be considered as “bottling,” if the decanters are not furnished for the purpose of carrying wine away from the area where served.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5352)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.233" NODE="27:1.0.1.1.26.14.553.3" TYPE="SECTION">
<HEAD>§ 31.233   Mixing cocktails in advance of sale.</HEAD>
<P>A retail liquor dealer shall not mix cocktails, or compound any alcoholic liquors in advance of sale, except for the purpose of filling, for immediate consumption on the premises, orders received, or expected to be immediately received, at the bar. See § 31.204 for additional mixed cocktail rules.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5002)


</SECAUTH>
</DIV8>


<DIV8 N="§ 31.234" NODE="27:1.0.1.1.26.14.553.4" TYPE="SECTION">
<HEAD>§ 31.234   Liability for special (occupational) tax.</HEAD>
<P>The special (occupational) tax on alcohol beverage dealers was suspended for the period July 1, 2005, through June 30, 2008, and was repealed effective July 1, 2008. Dealers who were engaged in business prior to the suspension period remain liable for payment of the special (occupational) tax in accordance with the laws and regulations in effect at that time. The tax return to be used for payment of any past-due special (occupational) tax is TTB Form 5630.5a.
</P>
<SECAUTH TYPE="N">(Section 11125, Pub. L. 109-59, 119 Stat. 1953)


</SECAUTH>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="32-39" NODE="27:1.0.1.1.27" TYPE="PART">
<HEAD>PARTS 32-39 [RESERVED]


</HEAD>
</DIV5>

</DIV4>

</DIV3>

</DIV1>

</ECFRBRWS>
<ECFRBRWS>
<AMDDATE>Nov. 28, 2025
</AMDDATE>

<DIV1 N="2" NODE="27:2" TYPE="TITLE">

<HEAD>Title 27—Alcohol, Tobacco Products and Firearms--Volume 2</HEAD>
<CFRTOC>
<PTHD>Part
</PTHD>
<CHAPTI>
<SUBJECT><E T="04">chapter i</E>—Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury (Continued)
</SUBJECT>
<PG>40
</PG></CHAPTI>
<ABBR>
<HED>Abbreviations Used in This Chapter:</HED>
<P>ATF = <I>Alcohol, Tobacco and Firearms.</I> T.D. = <I>Treasury Decision.</I> TTB = <I>Alcohol and Tobacco Tax and Trade Bureau.</I>


</P></ABBR></CFRTOC>

<DIV3 N="I" NODE="27:2.0.1" TYPE="CHAPTER">

<HEAD> CHAPTER I—ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY (CONTINUED)</HEAD>

<DIV4 N="B" NODE="27:2.0.1.1" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER B—TOBACCO 


</HEAD>

<DIV5 N="40" NODE="27:2.0.1.1.1" TYPE="PART">
<HEAD>PART 40—MANUFACTURE OF TOBACCO PRODUCTS, CIGARETTE PAPERS AND TUBES, AND PROCESSED TOBACCO
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 448, 5701, 5703-5705, 5711-5713, 5721-5723, 5731-5734, 5741, 5751, 5753, 5761-5763, 6061, 6065, 6109, 6151, 6301, 6302, 6311, 6313, 6402, 6404, 6423, 6676, 6806, 7011, 7212, 7325, 7342, 7502, 7503, 7606, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>26 FR 8174, Aug. 31, 1961, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975; 54 FR 48839, Nov. 27, 1989, and further redesignated by T.D. ATF-460, 66 FR 39093, July 27, 2001.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 40 appear by T.D. ATF-460, 66 FR 39094-39096, July 27, 2001; T.D. ATF-464, 66 FR 43479, Aug. 20, 2001; and T.D. TTB-91, 76 FR 5479, Feb. 1, 2011.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:2.0.1.1.1.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 40.1" NODE="27:2.0.1.1.1.1.24.1" TYPE="SECTION">
<HEAD>§ 40.1   Manufacture of tobacco products, cigarette papers and tubes, and processed tobacco.</HEAD>
<P>This part contains regulations relating to the manufacture of tobacco products, cigarette papers and tubes, and processed tobacco; the payment by manufacturers of tobacco products and cigarette papers and tubes of internal revenue taxes imposed by 26 U.S.C. chapter 52; and the qualification of and operations by manufacturers of tobacco products, cigarette papers and tubes, and processed tobacco.
</P>
<CITA TYPE="N">[T.D. TTB-78, at 74 FR 29408, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.2" NODE="27:2.0.1.1.1.1.24.2" TYPE="SECTION">
<HEAD>§ 40.2   Territorial extent.</HEAD>
<P>The provisions of the regulations in this part shall apply in the several States of the United States and the District of Columbia.


</P>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.1.1.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 40.11" NODE="27:2.0.1.1.1.2.24.1" TYPE="SECTION">
<HEAD>§ 40.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, the following terms shall have the meanings given in this section, unless the context clearly indicates otherwise. Words in the plural form shall include the singular, and vice versa, and words indicating the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not listed which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.40, Delegation of the Administrator's Authorities in 27 CFR Part 40, Manufacture of Tobacco Products and Cigarette Papers and Tubes.
</P>
<P><I>Bank.</I> Any commercial bank.
</P>
<P><I>Banking day.</I> Any day during which a bank is open to the public for carrying on substantially all its banking functions.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Chewing tobacco.</I> Any leaf tobacco that is not intended to be smoked.
</P>
<P><I>Cigar.</I> Any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of paragraph (2) of the definition for cigarette).
</P>
<P><I>Cigarette.</I> (1) Any roll of tobacco wrapped in paper or in any substance not containing tobacco, and
</P>
<P>(2) Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1) of this definition.
</P>
<P><I>Cigarette paper.</I> Paper, or any other material except tobacco, prepared for use as a cigarette wrapper.
</P>
<P><I>Cigarette tube.</I> Cigarette paper made into a hollow cylinder for use in making cigarettes.
</P>
<P><I>Commercial bank.</I> A bank, whether or not a member of the Federal Reserve System, which has access to the Federal Reserve Communications System (FRCS) or Fedwire. The “FRCS” or “Fedwire” is a communications network that allows Federal Reserve System member banks to effect a transfer of funds for their customers (or other commercial banks) to the Treasury Account at the Federal Reserve Bank in New York.
</P>
<P><I>Determine.</I> To establish enough information about taxable products at the time of removal to calculate the tax, specifically the quantity (pounds or number) and kind (for example, cigarettes, snuff, paper tubes). Where the tax rate depends on additional information (such as number of cigarette papers to a set before January 1, 2000 or sale price of large cigars), that information must also be established as part of tax determination.
</P>
<P><I>Director of the service center.</I> The Director, Internal Revenue Service Center, in any of the Internal Revenue regions.
</P>
<P><I>District director.</I> A district director of internal revenue.
</P>
<P><I>Electronic fund transfer or EFT.</I> Any transfer of funds effected by a manufacturer's commercial bank, either directly or through a correspondent banking relationship, via the Federal Reserve Communications System (FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of New York.
</P>
<P><I>Export warehouse.</I> A bonded internal revenue warehouse for the storage of tobacco products or cigarette papers or tubes or any processed tobacco, upon which the internal revenue tax has not been paid for subsequent shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States.
</P>
<P><I>Export warehouse proprietor.</I> Any person who operates an export warehouse.
</P>
<P><I>Factory.</I> The premises of a manufacturer of tobacco products or processed tobacco as described in his permit issued under 26 U.S.C. chapter 52, or the premises of a manufacturer of cigarette papers and tubes on which such business is conducted.
</P>
<P><I>Fiscal year.</I> The period which begins October 1 and ends on the following September 30.
</P>
<P><I>In bond.</I> The status of tobacco products and cigarette papers and tubes, which come within the coverage of a bond securing the payment of internal revenue taxes imposed by 26 U.S.C. 5701 or 7652, and in respect to which such taxes have not been determined as provided by regulations in this chapter, including (a) such articles in a factory, (b) such articles removed, transferred, or released, pursuant to 26 U.S.C. 5704, and with respect to which relief from the tax liability has not occurred, and (c) such articles on which the tax has been determined, or with respect to which relief from the tax liability has occurred, which have been returned to the coverage of a bond.
</P>
<P><I>Large cigarettes.</I> Cigarettes weighing more than three pounds per thousand.
</P>
<P><I>Large cigars.</I> Cigars weighing more than three pounds per thousand.
</P>
<P><I>Manufacturer of cigarette papers and tubes.</I> Any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for his own personal use or consumption. 
</P>
<P><I>Manufacturer of processed tobacco.</I> Any person who processes any tobacco other than tobacco products.
</P>
<P><I>Manufacturer of tobacco products.</I> (1) Any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco, other than:
</P>
<P>(i) A person who produces tobacco products solely for that person's own consumption or use; or
</P>
<P>(ii) A proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse.
</P>
<P>(2) The term “Manufacturer of tobacco products” includes any person who for commercial purposes makes available for consumer use (including such consumer's personal consumption or use under paragraph (1)(i) of this definition) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer's personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal use quantities.
</P>
<P><I>Package.</I> The immediate container in which tobacco products, processed tobacco, or cigarette papers or tubes are put up by the manufacturer and offered for sale or delivery to the ultimate consumer. For purposes of this definition, a container of processed tobacco, the contents of which weigh 10 pounds or less (including any added non-tobacco ingredients or constituents), that is removed within the meaning of this part, for any purpose other than destruction, export, delivery as a sample to a manufacturer of processed tobacco or tobacco products for the purpose of soliciting orders of processed tobacco, or scientific testing or testing of equipment which results in the destruction of the processed tobacco or the return of the processed tobacco to the factory premises, is deemed to be a package offered for sale or delivery to the ultimate consumer. For appropriate tax rate, see § 40.25a.
</P>
<P><I>Packaging.</I> When used in the context of an action, the act of placing processed tobacco or a tobacco product in a package.
</P>
<P><I>Permit number.</I> The identifying number and/or letters that are assigned to a TTB permit by the appropriate TTB officer.
</P>
<P><I>Person.</I> An individual, partnership, association, company, corporation, estate, or trust.
</P>
<P><I>Pipe tobacco.</I> Any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe.
</P>
<P><I>Processed tobacco.</I> Processed tobacco is any tobacco that has undergone processing, but does not include tobacco products. For purposes of this definition, the processing of tobacco does not include the farming or growing of tobacco or the handling of tobacco solely for sale, shipment, or delivery to a manufacturer of tobacco products or processed tobacco, nor does the processing of tobacco include curing, baling, or packaging activities. For purposes of this definition, the processing of tobacco includes, but is not limited to, stemming (that is, removing the stem from the tobacco leaf), fermenting, threshing, cutting, or flavoring the tobacco, or otherwise combining the tobacco with non-tobacco ingredients.
</P>
<P><I>Removal or remove.</I> The removal of tobacco products or cigarette papers or tubes, or any processed tobacco from the factory or release from customs custody, including the smuggling of other unlawful importation of such articles into the United States.
</P>
<P><I>Roll-your-own tobacco.</I> Any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes or cigars, or for use as wrappers of cigars or cigarettes.
</P>
<P><I>Sale price.</I> The price for which large cigars are sold by the U.S. manufacturer, determined in accordance with § 40.22 and used for computation of the tax.
</P>
<P><I>Service center.</I> An Internal Revenue Service Center in any of the Internal Revenue regions.
</P>
<P><I>Service center director.</I> A director of an internal revenue service center.
</P>
<P><I>Sets.</I> Any collection, grouping, or packaging of cigarette papers made up by any person for delivery to the consumer as a unit.
</P>
<P><I>Small cigarettes.</I> Cigarettes weighing not more than three pounds per thousand.
</P>
<P><I>Small cigars.</I> Cigars weighing not more than three pounds per thousand.
</P>
<P><I>Smokeless tobacco.</I> Any snuff or chewing tobacco.
</P>
<P><I>Snuff.</I> Any finely cut, ground, or powdered tobacco that is not intended to be smoked.
</P>
<P><I>Special tax.</I> The special (occupational) tax on manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors, imposed by 26 U.S.C. 5731.
</P>
<P><I>This chapter.</I> Title 27, Code of Federal Regulations, chapter I (27 CFR chapter I).
</P>
<P><I>Tobacco products.</I> Cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
</P>
<P><I>Treasury Account.</I> The Department of the Treasury's General Account at the Federal Reserve Bank of New York.
</P>
<P><I>TTB.</I> The Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), (82 Stat. 959), and Sec. 38, Arms Export Control Act (90 Stat. 744) Aug. 16, 1954, ch. 736, 68A Stat. 775, as amended (26 U.S.C. 6301); June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13553, Mar. 31, 1978] 
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 40.11, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.1.1.3" TYPE="SUBPART">
<HEAD>Subpart C—Taxes</HEAD>


<DIV8 N="§ 40.21" NODE="27:2.0.1.1.1.3.24.1" TYPE="SECTION">
<HEAD>§ 40.21   Cigar tax rates.</HEAD>
<P>(a) Cigars are taxed at the following rates under 26 U.S.C. 5701(a):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Type and amount
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Small cigars per thousand</TD><TD align="left" class="gpotbl_cell">$1.828</TD><TD align="left" class="gpotbl_cell">$50.33
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Large cigars*
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">• percentage of sale price</TD><TD align="left" class="gpotbl_cell">20.719%</TD><TD align="left" class="gpotbl_cell">52.750%
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">• but not to exceed—</TD><TD align="left" class="gpotbl_cell">$48.75 per thousand</TD><TD align="left" class="gpotbl_cell">$0.4026 per cigar.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* For large cigars: Until March 31, 2009, the percentage tax rate applies when the sale price is $235.294 per thousand or less, and the flat tax rate applies when the sale price is more than $235.294 per thousand. On and after April 1, 2009, the percentage tax rate applies when the sale price is $763.222 or less per thousand cigars, and the flat tax rate applies when the sale price is more than $763.222 per thousand cigars.</P></DIV></DIV>
<P>(b) See § 40.22 of this part for rules concerning determination of sale price of large cigars.
</P>
<P>(c) Cigars not exempt from tax under 26 U.S.C. chapter 52 and the provisions of this part which are removed but not intended for sale shall be taxed at the same rate as similar cigars removed for sale.
</P>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71939, Dec. 22, 1999, as amended by T.D. TTB-75, 74 FR 14481, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.22" NODE="27:2.0.1.1.1.3.24.2" TYPE="SECTION">
<HEAD>§ 40.22   Determination of sale price of large cigars.</HEAD>
<P>(a) <I>General rule.</I> The tax imposed on large cigars is computed based on the sale price (the price for which the large cigars are sold by the manufacturer). In addition to money, goods or services exchanged for cigars may be considered as part of the sale price.
</P>
<P>(b) <I>Special cases</I>—(1) <I>In general.</I> If there is any question concerning the applicable sale price for tax purposes, the appropriate TTB officer will determine such price, applying rules similar to the constructive sale price rules in 26 U.S.C. 4216(b) and the implementing regulations in 26 CFR 48.4216(b)-1 through 48.4216(b)-4. These constructive sale price rules apply to cigars sold by a manufacturer at retail, sold on consignment, or sold (otherwise than through an arm's length transaction) at less than the fair market price. Sales of cigars between affiliated corporations may be analyzed under the constructive sale price rules. The appropriate TTB officer may make this analysis on his or her own initiative or upon the written request of a manufacturer. 
</P>
<P>(2) <I>Adjustments in sale price</I>—(i) <I>Reasons for adjustment.</I> Adjustments to the sale price may occur as a result of a discount or price increase by the manufacturer or as a result of a TTB determination pursuant to paragraph (b)(1) above. In either case, the manufacturer must make conforming changes to the tax that was computed on the sale price before the adjustment.
</P>
<P>(ii) <I>Time of adjustment.</I> If an adjustment is made before the end of the same tax return period as the original determination of the tax, the adjustment may be made on the same return. If the price is increased or decreased retroactively (during a later return period), either by the manufacturer or by TTB's determination, the manufacturer must make an adjustment on the tax return for the current return period in which the price change was determined.
</P>
<P>(iii) <I>Amount of adjustment.</I> The taxpayer must compute the adjustment to the tax as the difference between the tax that was paid and the tax that should have been paid, based on the newly determined sale price, together with interest thereon and any applicable penalties. The interest must be computed from the time of payment of the original tax until the time the adjustment was made. Upon request, the appropriate TTB officer will provide information regarding interest rates applicable to specific time periods and any applicable penalties.
</P>
<P>(3) <I>Pricing for different packaging.</I> If different bona fide sale prices are applicable to different types of packaging (<I>e. g.,</I> boxes of 25 and boxes of 50), then the cigars in each type of packaging are taxed on the basis of their respective sale prices.
</P>
<P>(4) <I>Pricing of seconds.</I> If some of an otherwise identical cigar brand and size:
</P>
<P>(i) Are distinctive from other such cigars because of physical imperfections, (ii) Are offered to the consumer through clear labeling as “imperfects”, “seconds”, “throw-outs”, or a comparable commonly understood term, and
</P>
<P>(iii) The manufacturer has a separate sale price for such cigars, then they are taxed on the basis of this separate sale price.
</P>
<P>(5) <I>Combination packages.</I> If a manufacturer has a sale price for a combination package containing cigars of different sizes, the cigars are taxed based on that combination sale price. If there is no sale price for the combination, then the cigars are taxed based on their individual sale prices.
</P>
<P>(6) <I>Removals for another person.</I> If a manufacturer makes taxable removals of a brand and size of cigar only for distribution by others who establish the sale price, the tax is based on such sale price even though the manufacturer who makes the removals does not establish the price.
</P>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71939, Dec. 22, 1999, as amended by T.D. TTB-91, 76 FR 5479, Feb. 1, 2011; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.23" NODE="27:2.0.1.1.1.3.24.3" TYPE="SECTION">
<HEAD>§ 40.23   Cigarette tax rates.</HEAD>
<P>Cigarettes are taxed at the following rates under 26 U.S.C. 5701(b):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate per thousand for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Small cigarettes</TD><TD align="left" class="gpotbl_cell">$19.50</TD><TD align="left" class="gpotbl_cell">$50.33
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Large cigarettes up to 6
<fr>1/2</fr>″ long</TD><TD align="left" class="gpotbl_cell">$40.95</TD><TD align="left" class="gpotbl_cell">$105.69
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Large cigarettes over 6
<fr>1/2</fr>″ long</TD><TD align="left" class="gpotbl_cell" colspan="2">Taxed at the rate for small cigarettes, counting each 2
<fr>3/4</fr>″ or fraction thereof of the length of each as one cigarette.</TD></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14482, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.24" NODE="27:2.0.1.1.1.3.24.4" TYPE="SECTION">
<HEAD>§ 40.24   Classification of cigarettes.</HEAD>
<P>For tax purposes, small cigarettes are designated Class A and large cigarettes are designated Class B.
</P>
<SECAUTH TYPE="N">(72 Stat. 1414; 26 U.S.C. 5701)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.25" NODE="27:2.0.1.1.1.3.24.5" TYPE="SECTION">
<HEAD>§ 40.25   Smokeless tobacco tax rates.</HEAD>
<P>Smokeless tobacco products are taxed at the following rates under 26 U.S.C. 5701(e):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate per pound* for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Snuff</TD><TD align="left" class="gpotbl_cell">$ 0.585</TD><TD align="left" class="gpotbl_cell">$ 1.51
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Chewing tobacco</TD><TD align="left" class="gpotbl_cell">$ 0.195</TD><TD align="left" class="gpotbl_cell">$ 0.5033
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* Prorate tax for fractions of a pound.</P></DIV></DIV>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14482, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.25a" NODE="27:2.0.1.1.1.3.24.6" TYPE="SECTION">
<HEAD>§ 40.25a   Pipe tobacco and roll-your-own tobacco tax rates and classification.</HEAD>
<P>(a) <I>Tax rates.</I> Pipe tobacco and roll-your-own tobacco are taxed at the following rates under 26 U.S.C. 5701(f) and (g), respectively:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate per pound* for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Pipe tobacco</TD><TD align="left" class="gpotbl_cell">$ 1.0969</TD><TD align="left" class="gpotbl_cell">$ 2.8311
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Roll-your-own tobacco</TD><TD align="left" class="gpotbl_cell">$ 1.0969</TD><TD align="left" class="gpotbl_cell">$ 24.78
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* Prorate tax for fractions of a pound.</P></DIV></DIV>
<P>(b) <I>Classification.</I> (1) Pipe tobacco and roll-your-own tobacco, before removal subject to tax, must be put up in packages that conform to the requirements of §§ 40.211 and 40.212, and of § 40.216a or § 40.216b as appropriate.
</P>
<P>(2) Any tobacco that has been processed and that is removed in a package, as that term is defined in § 40.11, that does not bear the notice for smokeless tobacco prescribed in § 40.216 or the notice for pipe tobacco prescribed in § 40.216a is deemed to be roll-your-own tobacco and subject to tax at the rate applicable to roll-your-own tobacco. A container of processed tobacco, the contents of which weigh 10 pounds or less (including any added non-tobacco ingredients or constituents), that is removed within the meaning of this part for any purpose other than destruction, export, delivery as a sample to a manufacturer of processed tobacco or tobacco products for the purpose of soliciting orders of processed tobacco, or scientific testing or testing of equipment which results in the destruction of the processed tobacco or the return of the processed tobacco to the factory premises, is deemed to be a package offered for sale or delivery to the ultimate consumer.
</P>
<P>(3) Subject to paragraph (b)(4) of this section, any tobacco that has been processed and that is removed in a package, as that term is defined in § 40.11, is deemed to be roll-your-own tobacco and subject to tax at the rate applicable to roll-your-own tobacco, even though the package bears the notice required for pipe tobacco under § 40.216a, if:
</P>
<P>(i) The package does not bear the declaration “pipe tobacco” in direct conjunction with, parallel to, and in substantially the same conspicuousness of type and background as the brand name each time the brand name appears on the package; or
</P>
<P>(ii) The package or accompanying materials bear any representation that would suggest a use other than as pipe tobacco. (26 U.S.C. 5702 and 5723) The term 'accompanying materials' includes, but is not limited to, any point of sale advertising or other printed product communications issued by the manufacturer or importer of pipe tobacco products. In addition, the inclusion of cigarette papers or tubes in a package bearing a 'pipe tobacco' declaration will suggest a use other than pipe tobacco.
</P>
<P>(4) During the period from June 22, 2009, through March 23, 2010, manufacturers may continue to remove products as pipe tobacco in packages that do not bear the declaration “pipe tobacco” in the manner prescribed in paragraph (b)(3)(i) of this section.
</P>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14482, Mar. 31, 2009, as amended by T.D. TTB-78, 74 FR 29408, June 22, 2009; T.D. TTB-81, 74 FR 48653, Sept. 24, 2009; T.D. TTB-104, 77 FR 37302, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 40.26" NODE="27:2.0.1.1.1.3.24.7" TYPE="SECTION">
<HEAD>§ 40.26   Persons liable for tax.</HEAD>
<P>The manufacturer of tobacco products shall be liable for the taxes imposed on tobacco products by 26 U.S.C. 5701: <I>Provided,</I> That when tobacco products are transferred in bond pursuant to 26 U.S.C. 5704, to the bonded premises of another such manufacturer or an export warehouse proprietor, the transferee shall become liable for the tax upon receipt by him of such products and the transferor shall thereupon be relieved of his liability for the tax. When tobacco products are released in bond from customs custody for transfer to the bonded premises of a manufacturer of tobacco products, the transferee shall become liable for the tax on such products upon release from customs custody. Any person who possesses tobacco products in violation of 26 U.S.C. 5751(a)(1) or (2), shall be liable for a tax equal to the tax on such products.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat 1415, as amended, 1424, as amended (26 U.S.C. 5703, 5751))
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 32, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-232, 51 FR 28080, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.27" NODE="27:2.0.1.1.1.3.24.8" TYPE="SECTION">
<HEAD>§ 40.27   Assessment.</HEAD>
<P>Whenever any person required by law to pay tax on tobacco products fails to pay such tax, the tax shall be ascertained and assessed against such person, subject to the limitations prescribed in 26 U.S.C. 6501. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. Except in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error, no such assessment shall be made until and after notice has been afforded such person to show cause against assessment. The person will be allowed 45 days from the date of such notice to show cause, in writing, against such assessment.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1415, as amended (26 U.S.C. 5703))
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 32, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-232, 51 FR 28080, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="Ca" NODE="27:2.0.1.1.1.4" TYPE="SUBPART">
<HEAD>Subpart Ca—Special (Occupational) Taxes</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-271, 53 FR 17560, May 17, 1988, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 40.31" NODE="27:2.0.1.1.1.4.24.1" TYPE="SECTION">
<HEAD>§ 40.31   Liability for special tax.</HEAD>
<P>(a) <I>Manufacturer of tobacco products.</I> Every manufacturer of tobacco products shall pay a special (occupational) tax at a rate specified by § 40.32. The tax shall be paid on or before the date of commencing the business of manufacturing tobacco products, and thereafter every year on or before July 1. On commencing business, the tax shall be computed from the first day of the month in which liability is incurred, through the following June 30. Thereafter, the tax shall be computed for the entire year (July 1 through June 30).
</P>
<P>(b) [Reserved] 
</P>
<P>(c) <I>Each place of business taxable.</I> A manufacturer of tobacco products incurs special tax liability at each place of business in which an occupation subject to special tax is conducted. A place of business means the entire office, plant or area of the business in any one location under the same proprietorship. Passageways, streets, highways, rail crossings, waterways, or partitions dividing the premises are not sufficient separation to require additional special tax, if the divisions of the premises are otherwise contiguous.
</P>
<P>(d) <I>Payment of tax.</I> Special tax must be paid by return. The prescribed return is TTB Form 5630.5t, Special Tax Registration and Return—Tobacco. Special tax returns, with payment of tax, must be filed with TTB in accordance with the instructions on the form and the requirements of subpart D of part 46 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5731, 5733)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-271, 53 FR 17560, May 17, 1988, as amended by T.D. TTB-79, 74 FR 37419, July 28, 2009; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.32" NODE="27:2.0.1.1.1.4.24.2" TYPE="SECTION">
<HEAD>§ 40.32   Rates of special tax.</HEAD>
<P>(a) <I>General.</I> Title 26 U.S.C. 5731(a)(1) imposes a special tax of $1,000 per year on every manufacturer of tobacco products.
</P>
<P>(b) <I>Reduced rate for small proprietors.</I> Title 26 U.S.C. 5731(b) provides for a reduced rate of $500 per year with respect to any manufacturer of tobacco products whose gross receipts (for the most recent taxable year ending before the first day of the taxable period to which the special tax imposed by § 40.31 relates) are less than $500,000. The “taxable year” to be used for determining gross receipts is the taxpayer's income tax year. All gross receipts of the taxpayer shall be included, not just the gross receipts of the business subject to special tax. Proprietors of new businesses that have not yet begun a taxable year, as well as proprietors of existing businesses that have not yet ended a taxable year, who commence a new activity subject to special tax, qualify for the reduced special (occupational) tax rate, unless the business is a member of a “controlled group”; in that case, the rules of paragraph (c) of this section shall apply.
</P>
<P>(c) <I>Controlled group.</I> All persons treated as one taxpayer under 26 U.S.C. 5061(e)(3) shall be treated as one taxpayer for the purpose of determining gross receipts under paragraph (b) of this section. “Controlled group” means a controlled group of corporations, as defined in 26 U.S.C. 1563 and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place they appear in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of this section.
</P>
<P>(d) <I>Short taxable year.</I> Gross receipts for any taxable year of less than 12 months shall be annualized by multiplying the gross receipts for the short period by 12 and dividing the result by the number of months in the short period as required by 26 U.S.C. 448(c)(3).
</P>
<P>(e) <I>Returns and allowances.</I> Gross receipts for any taxable year shall be reduced by returns and allowances made during such year under 26 U.S.C. 448(c)(3).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 448, 5061, 5731)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.33" NODE="27:2.0.1.1.1.4.24.3" TYPE="SECTION">
<HEAD>§ 40.33   Cross reference.</HEAD>
<P>For additional rules pertaining to liability for special tax, filing special tax returns, issuance and examination of special (occupational) tax stamps, and notification of changes to special tax stamps, see subpart D of part 46 of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37419, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§§ 40.34-40.36" NODE="27:2.0.1.1.1.4.24.4" TYPE="SECTION">
<HEAD>§§ 40.34-40.36   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.1.1.5" TYPE="SUBPART">
<HEAD>Subpart D—Administrative Provisions</HEAD>


<DIV8 N="§ 40.41" NODE="27:2.0.1.1.1.5.24.1" TYPE="SECTION">
<HEAD>§ 40.41   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. When a return, form, claim, or other document called for under this part is required by this part, or by the document itself, to be executed under penalties of perjury, it shall be executed under penalties of perjury.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981, as amended by T.D. ATF-232, 51 FR 28080, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. TTB-44, 71 FR 16949, Apr. 4, 2006; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.42" NODE="27:2.0.1.1.1.5.24.2" TYPE="SECTION">
<HEAD>§ 40.42   Authority of Appropriate TTB officers to enter premises.</HEAD>
<P>Any appropriate TTB officer may enter in the daytime any premises where tobacco products are produced or kept, so far as it may be necessary for the purpose of examining such products. When such premises are open at night, any appropriate TTB officer may enter them, while so open, in the performance of his official duties. The owner of such premises, or person having the superintendence of the same, who refuses to admit any appropriate TTB officer or permit him to examine such products shall be liable to the penalties prescribed by law for the offense.
</P>
<SECAUTH TYPE="N">(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 33, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-232, 51 FR 28080, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. TTB-91, 76 FR 5479, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 40.43" NODE="27:2.0.1.1.1.5.24.3" TYPE="SECTION">
<HEAD>§ 40.43   Interference with administration.</HEAD>
<P>Whoever, corruptly or by force or threats of force, endeavors to hinder or obstruct the administration of this part, or endeavors to intimidate or impede any TTB officer acting in his official capacity, or forcibly rescues or attempts to rescue or causes to be rescued any property, after it has been duly seized for forfeiture to the United States in connection with a violation of the internal revenue laws, shall be liable to the penalties prescribed by law.
</P>
<SECAUTH TYPE="N">(68A Stat. 855; 26 U.S.C. 7212)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.44" NODE="27:2.0.1.1.1.5.24.4" TYPE="SECTION">
<HEAD>§ 40.44   Disposal of forfeited, condemned, and abandoned tobacco products.</HEAD>
<P>A Federal, State, or local officer shall not sell or cause to be sold for consumption in the United States any forfeited, condemned, or abandoned tobacco products in his custody upon which the Federal tax has not been paid, if in his opinion the sale thereof will not bring a price equal to the tax due and payable thereon and the expenses incident to the sale thereof. Where the products are not sold the officer may deliver them to a Federal or State hospital or institution (if they are fit for consumption) or cause their destruction by burning completely or by rendering them unfit for consumption. Where such products are sold they shall be released by the officer having custody thereof only after they are properly packaged and taxpaid. A receipt from the appropriate TTB officer evidencing payment of tax on such products shall be presented to the officer having custody of the products, which tax shall be considered part of the sales price. Where tobacco products which have been packaged under the provisions of part 44 or part 45 of this chapter are to be released after payment of tax, the purchaser shall appropriately mark each package “Federal Tax Paid (date)” before the officer having custody of the products releases them:
</P>
<FP><I>Provided,</I> That if the purchaser is a qualified manufacturer of tobacco products, or for products packaged under part 44 a qualified export warehouse proprietor, the products may be released without such marking of the packages if the manufacturer or proprietor does not intend to place such products on the domestic market for taxable products but will dispose of them otherwise, such as by destruction or return to bond through claim for refund, and files a written statement to that effect, in original only, with the officer having custody of the products. In the case of products forfeited under the internal revenue laws the sale shall be subject to the provisions of part 72 of this chapter.
</FP>
<SECAUTH TYPE="N">(68A Stat. 870, as amended, 72 Stat. 1425, as amended; 26 U.S.C. 7325, 5753)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9488, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28080, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19339, May 22, 1987; T.D. ATF-469, 66 FR 56758, Nov. 13, 2001; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.45" NODE="27:2.0.1.1.1.5.24.5" TYPE="SECTION">
<HEAD>§ 40.45   Alternate methods or procedures.</HEAD>
<P>A manufacturer of tobacco products, on specific approval by the appropriate TTB officer as provided in this section, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. The appropriate TTB officer may approve an alternate method or procedure, subject to stated conditions, when he finds that—
</P>
<P>(a) Good cause has been shown for the use of the alternate method or procedure,
</P>
<P>(b) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue, and
</P>
<P>(c) The alternate method or procedure will not be contrary to any provision of law, and will not result in an increase in cost to the Government or hinder the effective administration of this part.
</P>
<FP>No alternate method or procedure relating to the giving of any bond or to the assessment, payment, or collection of tax, shall be authorized under this section. Where a manufacturer desires to employ an alternate method or procedure, he shall submit a written application to do so, in triplicate, to the appropriate TTB officer. The application shall specifically describe the proposed alternate method or procedure, and shall set forth the reasons therefor. Alternate methods or procedures shall not be employed until the application has been approved by the appropriate TTB officer. The manufacturer shall, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization for any alternate method or procedure may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered. The manufacturer shall retain, as part of his records, any authorization of the appropriate TTB officer under this section.


</FP>
</DIV8>


<DIV8 N="§ 40.46" NODE="27:2.0.1.1.1.5.24.6" TYPE="SECTION">
<HEAD>§ 40.46   Emergency variations from requirements.</HEAD>
<P>The appropriate TTB officer may approve methods of operation other than as specified in this part, where he finds that an emergency exists and the proposed variations from the specified requirements are necessary, and the proposed variations—
</P>
<P>(a) Will afford the security and protection to the revenue intended by the prescribed specifications.
</P>
<P>(b) Will not hinder the effective administration of this part, and
</P>
<P>(c) Will not be contrary to any provision of law.
</P>
<FP>Variations from requirements granted under this section are conditioned on compliance with the procedures, conditions, and limitations set forth in the approval of the application. Failure to comply in good faith with such procedures, conditions, and limitations shall automatically terminate the authority for such variations and the manufacturer thereupon shall fully comply with the prescribed requirements of regulations from which the variations were authorized. Authority for any variations may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered by the continuation of such variation. Where a manufacturer desires to employ such variation, he shall submit a written application to do so, in triplicate, to the appropriate TTB officer. The application shall describe the proposed variations and set forth the reasons therefor. Variations shall not be employed until the application has been approved. The manufacturer shall retain, as part of his records, any authorization of the appropriate TTB officer under this section.


</FP>
</DIV8>


<DIV8 N="§ 40.47" NODE="27:2.0.1.1.1.5.24.7" TYPE="SECTION">
<HEAD>§ 40.47   Other businesses within factory.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may authorize such other businesses within the factory of a manufacturer of tobacco products as he finds will not jeopardize the revenue, will not hinder the effective administration of this part, and will not be contrary to law. A manufacturer of tobacco products who wishes to engage in another business within the factory must submit a written application to do so to the appropriate TTB officer. Except as otherwise provided in paragraph (b) of this section, a manufacturer of tobacco products may not engage in such other business until the application is approved by the appropriate TTB officer. The manufacturer must retain as part of its records any authorization provided under this section.
</P>
<P>(b) <I>Processed tobacco.</I> A manufacturer of tobacco products may engage in certain activities related to processed tobacco without an approval under paragraph (a) of this section. Section 40.72(b) specifies the activities and circumstances that do not require authorization to engage in another business as well as those activities and circumstances that do.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29408, June 22, 2009, as amended by T.D. TTB-104, 77 FR 37302, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 40.48" NODE="27:2.0.1.1.1.5.24.8" TYPE="SECTION">
<HEAD>§ 40.48   Penalties and forfeitures.</HEAD>
<P>Anyone who fails to comply with the provisions of this part becomes liable to the civil and criminal penalties, and forfeitures, provided by law.
</P>
<SECAUTH TYPE="N">(72 Stat. 1425, 1426; 26 U.S.C. 5761, 5762, 5763)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.49" NODE="27:2.0.1.1.1.5.24.9" TYPE="SECTION">
<HEAD>§ 40.49   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.40, Delegation of the Administrator's Authorities in 27 CFR Part 40, Manufacture of Tobacco Products and Cigarette Papers and Tubes. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202. 
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16949, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:2.0.1.1.1.6" TYPE="SUBPART">
<HEAD>Subpart E—Qualification Requirements for Manufacturers of Tobacco Products</HEAD>


<DIV8 N="§ 40.61" NODE="27:2.0.1.1.1.6.24.1" TYPE="SECTION">
<HEAD>§ 40.61   Qualification.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in paragraph (b) of this section, every person who manufactures tobacco products must qualify for, and obtain, a permit as a manufacturer of tobacco products in accordance with the provisions of this part.
</P>
<P>(b) <I>Exceptions.</I> The following persons are not considered to be engaged in the business of manufacturing tobacco products for purposes of this part:
</P>
<P>(1) A person who produces tobacco products solely for that person's own consumption or use;
</P>
<P>(2) A proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse;
</P>
<P>(3) A retailer of tobacco products, such as a tobacconist, who takes taxpaid tobacco products out of the package, as that term is defined in § 40.11, in front of waiting customers and places the tobacco products into a different container for immediate delivery to those customers; or
</P>
<P>(4) A person whose operations are limited to, and who holds a permit as, a manufacturer of processed tobacco.
</P>
<P>(c) <I>Minimum manufacturing and activity requirements.</I> A permit to manufacture tobacco products will only be granted to those persons whose principal business activity under such permit will be the manufacture of tobacco products. A permit will not be granted to any person whose principal business activity under such permit will be to receive or transfer tobacco products in bond. As a minimum activity requirement, in order to qualify for a permit, the quantity of tobacco products manufactured under the permit must be equivalent to, or exceed, the quantity to be transferred or received in bond under the permit. For the purposes of this section, the activity of packaging processed tobacco may be sufficient to qualify as a manufacturing activity.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29409, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.61a" NODE="27:2.0.1.1.1.6.24.2" TYPE="SECTION">
<HEAD>§ 40.61a   Transitional rule.</HEAD>
<P>Any person who:
</P>
<P>(a) On August 5, 1997, was engaged in business as a manufacturer of roll-your-own tobacco, and
</P>
<P>(b) Before January 1, 2000, submits an application, as provided in this part, to engage in such business, may, continue to engage in such business pending final action on such application. Pending such final action, all provisions of chapter 52 of the Internal Revenue Code of 1986 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit to manufacture roll-your-own tobacco under such chapter 52.
</P>
<CITA TYPE="N">[T.D. ATF-424, 64 FR 71931, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 40.62" NODE="27:2.0.1.1.1.6.24.3" TYPE="SECTION">
<HEAD>§ 40.62   Application for permit.</HEAD>
<P>Every person, before commencing business as a manufacturer of tobacco products as defined in § 40.11, shall make application for, and obtain, the permit provided in § 40.75, covering operations at each proposed factory. Such application shall be made on TTB F 5200.3, in duplicate, to the appropriate TTB officer. All documents required under this part to be furnished with such application shall be made a part thereof. Where the applicant for a permit under this section holds a permit or permits authorizing the production of any tobacco products at premises to be covered by the permit applied for, the applicant shall surrender such permit or permits for cancellation, upon the issuance of the permit applied for.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.63" NODE="27:2.0.1.1.1.6.24.4" TYPE="SECTION">
<HEAD>§ 40.63   Corporate documents.</HEAD>
<P>Every corporation, before commencing business as a manufacturer of tobacco products, shall furnish with its application for permit, required by § 40.62, a true copy of the corporate charter or a certificate of corporate existence or incorporation executed by the appropriate officer of the State in which incorporated. The corporation shall likewise furnish duly authenticated extracts of the stockholders' meetings, bylaws, or directors' meetings, listing the offices the incumbents of which are authorized to sign documents or otherwise act in behalf of the corporation in matters relating to 26 U.S.C. chapter 52, and regulations issued thereunder. The corporation shall also furnish evidence, in duplicate, of the identity of the officers and directors and each person who holds more than ten percent of the stock of such corporation. Where any of the information required by this section has previously been filed with the appropriate TTB officer and such information is currently complete and accurate, a written statement to that effect, in duplicate, will be sufficient for the purpose of this section.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1421, as amended (26 U.S.C. 5712))
</SECAUTH>
<CITA TYPE="N">[T.D. 6840, 30 FR 9310, July 27, 1965. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979] 


</CITA>
</DIV8>


<DIV8 N="§ 40.64" NODE="27:2.0.1.1.1.6.24.5" TYPE="SECTION">
<HEAD>§ 40.64   Articles of partnership or association.</HEAD>
<P>Every partnership or association, before commencing business as a manufacturer of tobacco products, shall furnish with its application for permit, required by § 40.62, a true copy of the articles of partnership or association, if any, or certificate of partnership or association where required to be filed by any State, county, or municipality. Where a partnership or association has previously filed such documents with the appropriate TTB officer and such documents are currently complete and accurate, a written statement, in duplicate, to that effect by the partnership or association will be sufficient for the purpose of this section.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.65" NODE="27:2.0.1.1.1.6.24.6" TYPE="SECTION">
<HEAD>§ 40.65   Trade name certificate.</HEAD>
<P>Every person, before commencing business under a trade name as a manufacturer of tobacco products, shall furnish with his application for permit, required by § 40.62, a true copy of the certificate or other document, if any, issued by a State, county, or municipal authority in connection with the transaction of business under such trade name. If no such certificate or other document is so required, a written statement, in duplicate, to that effect by such person will be sufficient for the purpose of this section.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.66" NODE="27:2.0.1.1.1.6.24.7" TYPE="SECTION">
<HEAD>§ 40.66   Bond.</HEAD>
<P>Every person, before commencing business as a manufacturer of tobacco products, shall file, in connection with his application for permit, a bond on TTB F 5200.29 (or TTB F 5200.25 or 5200.26), in duplicate, in accordance with the applicable provisions of subpart G of this part, conditioned upon compliance with the provisions of chapter 52, I.R.C., and regulations thereunder, including, but not limited to, the timely payment of taxes imposed by such chapter and penalties and interest in connection therewith for which he may become liable to the United States: <I>Provided,</I> That any person who, on the effective date of this part, October 1, 1961, has on file a valid and adequate bond, Form 2100, “Bond—Manufacturer of Cigars and Cigarettes,” may continue, under such bond, the operations with respect to the permit to which that bond relates, in accordance with the provisions of this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, as amended; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 33, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.67" NODE="27:2.0.1.1.1.6.24.8" TYPE="SECTION">
<HEAD>§ 40.67   Blanket bond.</HEAD>
<P>Where a manufacturer of tobacco products operates more than one factory he may, in lieu of filing separate bonds, file a blanket bond on TTB F 5200.29 (or TTB F 5200.25 or 5200.26), in duplicate, in accordance with the provisions of § 40.134, for any or all of the factories. The total amount of any blanket bond given under this section shall be available for the satisfaction of any liability incurred at any factory covered by the bond.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[26 FR 8174, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975; 54 FR 48839, Nov. 27, 1989, and further redesignated by T.D. ATF-460, 66 FR 39093, July 27, 2001, as amended by T.D. TTB-91, 76 FR 5480, Feb. 1, 2011; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.68" NODE="27:2.0.1.1.1.6.24.9" TYPE="SECTION">
<HEAD>§ 40.68   Power of attorney.</HEAD>
<P>If the application for permit or any report, return, notice, schedule, or other document required to be executed is to be signed by an individual (including one of the partners for a partnership or one of the members of an association) as an attorney in fact for any person, or if an individual is to otherwise officially represent such person, power of attorney on TTB F 5000.8 shall be furnished to the appropriate TTB officer. (For power of attorney in connection with conference and practice requirements see 26 CFR 601.501 through 601.527.) Such power of attorney is not required for persons whose authority is furnished with the corporate documents as required by § 40.63. TTB F 5000.8 does not have to be filed again with an appropriate TTB officer where such form has previously been submitted to that appropriate TTB officer and is still in effect.
</P>
<CITA TYPE="N">[T.D. 6840, 30 FR 9310, July 27, 1965. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-91, 76 FR 5480, Feb. 1, 2011; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.69" NODE="27:2.0.1.1.1.6.24.10" TYPE="SECTION">
<HEAD>§ 40.69   Factory premises.</HEAD>
<P>The premises to be used by a manufacturer of tobacco products as his factory may consist of more than one building, or portions of buildings, which need not be contiguous but must be located in the same city, town, or village: Except that, where the appropriate TTB officer determines that a building or portion of a building which is not within the city, town, or village, is so conveniently and closely situated to the general factory premises as to present no jeopardy to the revenue and as to offer no hindrance to the administration of this part, he may authorize the inclusion of such building or portion of building as part of the factory. The buildings or portions of buildings shall be described in the application for permit and the bond by number, street, and city, town, or village, and State. If any of the following conditions exist a diagram shall also be furnished, in duplicate, showing the information indicated:
</P>
<P>(a) Where the factory is in more than one building, and each building is not identifiable by a separate street address—identify each building by a letter, number, or similar designation;
</P>
<P>(b) Where the factory consists of a portion of a building or where portions of buildings are part of the factory—show the particular floor or floors, or room or rooms, comprising the factory;
</P>
<P>(c) Where there is an adjoining retail store operated by the manufacturer tobacco products including any doors or other openings between the premises.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6840, 30 FR 9310, July 27, 1965, as amended by T.D. 6871, 31 FR 33, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-232, 51 FR 28080, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.70" NODE="27:2.0.1.1.1.6.24.11" TYPE="SECTION">
<HEAD>§ 40.70   Separation of and access to factory.</HEAD>
<P>Where the factory consists of a portion of a building, or where portions of buildings are part of the factory, the factory shall be completely separated by walls from adjoining portions of the building. Such walls shall be securely constructed of substantial materials. The appropriate TTB officer may, wherever he finds that the revenue will not be jeopardized, authorize openings and doors in such walls or means of separation other than walls if such means adequately delineate the factory. The factory shall be accessible directly from a street, yard, common passageway, or other common means of entrance.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.71" NODE="27:2.0.1.1.1.6.24.12" TYPE="SECTION">
<HEAD>§ 40.71   Factories established prior to October 1, 1961.</HEAD>
<P>Factories established prior to the effective date of this part, October 1, 1961, shall not be subject to the provisions of § 40.70 if, in the opinion of the appropriate TTB officer, the existing premises afford adequate protection to the revenue.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 33, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 40.72" NODE="27:2.0.1.1.1.6.24.13" TYPE="SECTION">
<HEAD>§ 40.72   Use of factory premises.</HEAD>
<P>(a) <I>General.</I> Unless otherwise authorized by the appropriate TTB officer as provided in § 40.47, the premises used by a manufacturer of tobacco products for his factory shall be used exclusively for the purposes of manufacturing and storing tobacco products; storing materials, equipment, and supplies related thereto or used or useful in the conduct of the business; and carrying on activities in connection with business of the manufacturer of tobacco products.
</P>
<P>(b) <I>Processed tobacco.</I> (1) A manufacturer of tobacco products that processes tobacco or receives processed tobacco on its factory premises solely for use in the manufacture of tobacco products under its permit, that removes processed tobacco from the factory premises only for purposes related to its business of manufacturing tobacco products as set forth in (b)(2) of this section, and that maintains records sufficient to show the final disposition of any processed tobacco removed from the factory premises may engage in such activities on the factory premises under the authority of its existing permit without prior authorization from TTB under § 40.47. If a manufacturer of tobacco products removes processed tobacco for purposes other than those specified in paragraph (b)(2) of this section, that manufacturer must obtain prior authorization from TTB in accordance with § 40.47 and must keep records and submit reports as prescribed in §§ 40.521 and 40.522.
</P>
<P>(2) The following activities are considered to be activities related to the manufacture of tobacco products: Removal of samples of processed tobacco for the purpose of soliciting orders of tobacco products; removal of processed tobacco for destruction; removal of processed tobacco for scientific testing or testing of equipment which results in the destruction of the processed tobacco or the return of the processed tobacco to the factory premises; and transfer of processed tobacco between permitted premises of the same manufacturer. Any removal of processed tobacco other than those listed above requires the manufacturer to first obtain authorization to engage in another business within the factory under § 40.47 and to keep records and submit reports under §§ 40.521 and 40.522, unless the manufacturer can show to the satisfaction of the appropriate TTB officer that the removal is connected with the business of a manufacturer of tobacco products rather than with the business of a manufacturer of processed tobacco.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29409, June 22, 2009, as amended by T.D. TTB-104, 77 FR 37302, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 40.73" NODE="27:2.0.1.1.1.6.24.14" TYPE="SECTION">
<HEAD>§ 40.73   Additional information.</HEAD>
<P>The appropriate TTB officer may require such additional information as he may deem necessary to determine whether the applicant is entitled to a permit under the provisions of this part. The applicant shall, when required by the appropriate TTB officer, furnish as a part of his application for such permit such additional information as may be necessary for the appropriate TTB officer to determine whether the applicant is entitled to a permit.


</P>
</DIV8>


<DIV8 N="§ 40.74" NODE="27:2.0.1.1.1.6.24.15" TYPE="SECTION">
<HEAD>§ 40.74   Investigation of applicant.</HEAD>
<P>(a) <I>Investigation.</I> The appropriate TTB officer may cause inquiry or investigation to be made to verify the information furnished in connection with an application for permit and to ascertain whether the applicant is eligible for a permit. Any of the following conditions may be grounds for denial of a permit:
</P>
<P>(1) The premises on which it is proposed to conduct the business are not adequate to protect the revenue;
</P>
<P>(2) The activity proposed to be carried out at such premises does not meet the minimum manufacturing or activity requirements of § 40.61(b); or
</P>
<P>(3) The applicant (including, in the case of a corporation, any officer, director, or principal stockholder and, in the case of a partnership, a partner)—
</P>
<P>(i) Is, by reason of his business experience, financial standing, or trade connections or by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with this chapter;
</P>
<P>(ii) Has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes; or
</P>
<P>(iii) Has failed to disclose any material information required or made any material false statement in the application therefor.
</P>
<P>(b) <I>TTB action.</I> The appropriate TTB officer, if there is reason to believe that the applicant is not entitled to a permit, shall promptly give the applicant notice of the contemplated disapproval of the application and opportunity for hearing thereon in accordance with part 71 of this chapter, which part (including the provisions relating to the recommended decision and to appeals) is applicable to such proceedings. If, after such notice and opportunity for hearing, the appropriate TTB officer finds that the applicant is not entitled to a permit, he shall, by order stating the findings on which his decision is based, deny the permit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14482, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.75" NODE="27:2.0.1.1.1.6.24.16" TYPE="SECTION">
<HEAD>§ 40.75   Issuance of permit.</HEAD>
<P>If the application for permit, together with the bond and supporting documents, required under this part is approved by him, the appropriate TTB officer shall issue a permit on TTB F 5200.10 to the applicant as a manufacturer of tobacco products.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5713)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 33, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 40.76" NODE="27:2.0.1.1.1.6.24.17" TYPE="SECTION">
<HEAD>§ 40.76   Retention of permit and supporting documents.</HEAD>
<P>The manufacturer shall retain his permit, together with the copy of the application and supporting documents returned to him with the permit, at the same place where the records required by this part are kept and they shall be made available for inspection by any appropriate TTB officer upon his request.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, 1423; 26 U.S.C. 5712, 5713, 5741)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:2.0.1.1.1.7" TYPE="SUBPART">
<HEAD>Subpart F—Changes After Original Qualification of Manufacturers of Tobacco Products</HEAD>


<DIV7 N="24" NODE="27:2.0.1.1.1.7.24" TYPE="SUBJGRP">
<HEAD>Changes in Name</HEAD>


<DIV8 N="§ 40.91" NODE="27:2.0.1.1.1.7.24.1" TYPE="SECTION">
<HEAD>§ 40.91   Change in individual name.</HEAD>
<P>Where there is a change in the name of an individual operating as a manufacturer of tobacco products they shall, within 30 days of such change, make application on TTB F 5200.16 for an amended permit.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[26 FR 8174, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975; 54 FR 48839, Nov. 27, 1989; and further redesignated by T.D. ATF-460, 66 FR 39093, July 27, 2001, as amended by T.D. TTB-91, 76 FR 5480, Feb. 1, 2011; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.92" NODE="27:2.0.1.1.1.7.24.2" TYPE="SECTION">
<HEAD>§ 40.92   Change in trade name.</HEAD>
<P>Where there is a change in, or an addition or discontinuance of, a trade name used by a manufacturer of tobacco products in connection with operations authorized by their permit the manufacturer shall, within 30 days of such change, addition or discontinuance, make application on TTB F 5200.16 for an amended permit to reflect such change. The manufacturer shall also furnish a true copy of any new trade name certificate or document issued to them, or statement in lieu thereof, required by § 40.65.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6840, 30 FR 9311, July 27, 1965. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.93" NODE="27:2.0.1.1.1.7.24.3" TYPE="SECTION">
<HEAD>§ 40.93   Change in corporate name.</HEAD>
<P>Where there is a change in the name of a corporate manufacturer of tobacco products, the manufacturer shall, within 30 days of such change, make application on TTB F 5200.16 for an amended permit. The manufacturer shall also furnish such documents as may be necessary to establish that the corporate name has been changed.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712) 


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="25" NODE="27:2.0.1.1.1.7.25" TYPE="SUBJGRP">
<HEAD>Changes in Ownership and Control</HEAD>


<DIV8 N="§ 40.101" NODE="27:2.0.1.1.1.7.25.4" TYPE="SECTION">
<HEAD>§ 40.101   Fiduciary successor.</HEAD>
<P>If an administrator, executor, receiver, trustee, assignee, or other fiduciary, is to take over the business of a manufacturer of tobacco products, as a continuing operation, such fiduciary shall, before commencing operations, make application for permit and file bond as required by subpart E, of this part, furnish certified copies, in duplicate, of the order of the court, or other pertinent documents, showing his appointment and qualification as such fiduciary, and make a commencing inventory, in accordance with the provisions of § 40.201: <I>Provided,</I> That where a diagram has been furnished by the predecessor, in accordance with the provisions of § 40.69, the successor may adopt such diagram if it is currently complete and accurate. However, where a fiduciary intends only to liquidate the business, qualification as a manufacturer of tobacco products will not be required if he promptly files with the appropriate TTB officer a written statement to that effect, in duplicate, together with an extension of coverage of the predecessor's bond, executed by the fiduciary and the surety on such bond, in accordance with the provisions of § 40.137.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, 1422; 26 U.S.C. 5711, 5712, 5721)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.102" NODE="27:2.0.1.1.1.7.25.5" TYPE="SECTION">
<HEAD>§ 40.102   Transfer of ownership.</HEAD>
<P>If a transfer is to be made in ownership of the business of a manufacturer of tobacco products (including a change of any member of a partnership or association), such manufacturer shall give notice, in writing, to the appropriate TTB officer, naming the proposed successor and the desired effective date of such transfer. The proposed successor shall, before commencing operations, qualify as a manufacturer of tobacco products, in accordance with the applicable provisions of subpart E of this part: <I>Provided,</I> That where a diagram has been furnished by the manufacturer in accordance with the provisions of § 40.69, the proposed successor may adopt such diagram if it is currently complete and accurate. The manufacturer shall give such notice of transfer, and the proposed successor shall make application for permit and file bond, as required, in ample time for examination and approval thereof before the desired date of such change. The predecessor shall make a concluding inventory and concluding report, in accordance with the provisions of §§ 40.201 and 40.202, respectively, and surrender his permit with such inventory and report. The successor shall make a commencing inventory and commencing report, in accordance with the provisions of §§ 40.201 and 40.202, respectively.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, 1422; 26 U.S.C. 5711, 5712, 5713, 5721, 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.103" NODE="27:2.0.1.1.1.7.25.6" TYPE="SECTION">
<HEAD>§ 40.103   Change in officers, directors, or stockholders of a corporation.</HEAD>
<P>Upon election or appointment (excluding successive reelection or reappointment) of any officer or director of a corporation operating the business of a manufacturer of tobacco products, or upon any occurrence which results in a person acquiring ownership or control of more than ten percent in aggregate of the outstanding stock of such corporation, the manufacturer shall, within 30 days of such action, so notify the appropriate TTB officer in writing, giving the identity of such person. When there is any change in the authority furnished under § 40.63 for officers to act in behalf of the corporation the manufacturer shall immediately so notify the appropriate TTB officer in writing.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6840, 30 FR 9311, July 27, 1965. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 40.104" NODE="27:2.0.1.1.1.7.25.7" TYPE="SECTION">
<HEAD>§ 40.104   Change in control of a corporation.</HEAD>
<P>Where the issuance, sale, or transfer of the stock of a corporation, operating as a manufacturer of tobacco products, results in a change in the identity of the principal stockholders exercising actual or legal control of the operations of the corporation, the corporate manufacturer shall, within 30 days after the change occurs, make application on TTB F 5200.3 for a new permit. Otherwise, the present permit shall be automatically terminated at the expiration of such 30-day period, and the manufacturer shall dispose of all tobacco products on hand, in accordance with this part, make a concluding inventory and concluding report, in accordance with the provisions of §§ 40.201 and 40.202, respectively, and surrender his permit with such inventory and report. If the application for a new permit is timely made, the present permit shall continue in effect pending final action with respect to such application.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, 1422; 26 U.S.C. 5712, 5713, 5721, 5722)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 33, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-232, 51 FR 28081, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="26" NODE="27:2.0.1.1.1.7.26" TYPE="SUBJGRP">
<HEAD>Changes in Location of Factory</HEAD>


<DIV8 N="§ 40.111" NODE="27:2.0.1.1.1.7.26.8" TYPE="SECTION">
<HEAD>§ 40.111   Change in location.</HEAD>
<P>Whenever a manufacturer of tobacco products intends to relocate its factory, the manufacturer shall, before commencing operations at the new location, make application on TTB F 5200.16 for, and obtain, an amended permit. The application shall be supported by bond coverage in accordance with the provisions of subpart G of this part.
</P>
<CITA TYPE="N">[T.D. TTB-91, 76 FR 5479, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 40.112" NODE="27:2.0.1.1.1.7.26.9" TYPE="SECTION">
<HEAD>§ 40.112   Change in address.</HEAD>
<P>Whenever any change occurs in the address, but not the location, of the factory of a manufacturer of tobacco products, as a result of action of local authorities, the manufacturer shall, within 30 days of such change, make application on TTB F 5200.16 for an amended permit.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.114" NODE="27:2.0.1.1.1.7.26.10" TYPE="SECTION">
<HEAD>§ 40.114   Extension or curtailment of factory.</HEAD>
<P>Where a tobacco products factory is to be changed to an extent which will make inaccurate the description of the factory as set forth in the last application by the manufacturer for permit, on the diagram, if any, furnished with such application, the manufacturer shall first make an application on TTB F 5200.16 for, and obtain, an amended permit. Such application shall describe the proposed change in the factory and shall be accompanied by a new diagram if required under the provisions of § 40.69.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711, 5712)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:2.0.1.1.1.8" TYPE="SUBPART">
<HEAD>Subpart G—Bonds and Extensions of Coverage of Bonds</HEAD>


<DIV8 N="§ 40.131" NODE="27:2.0.1.1.1.8.27.1" TYPE="SECTION">
<HEAD>§ 40.131   Corporate surety.</HEAD>
<P>(a) Surety bonds required under the provisions of this part may be given only with corporate sureties holding certificates of authority from the Secretary of the Treasury as acceptable sureties on Federal bonds. Each bond and each extension of coverage of bond shall at the time of filing be accompanied by a power of attorney authorizing the agent or officer who executed the bond to so act on behalf of the surety. The appropriate TTB officer who is authorized to approve the bond may, whenever he deems it necessary, require additional evidence of the authority of the agent or officer to execute the bond or extension of coverage of bond. The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed document it shall be accompanied by a certificate of its validity. Limitations concerning corporate sureties are prescribed by the Secretary in Treasury Department Circular 570, as revised. The surety shall have no interest whatever in the business covered by the bond.
</P>
<P>(b) Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).
</P>
<CITA TYPE="N">[T.D. 6961, 33 FR 9488, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. ATF-92, 46 FR 46921, Sept. 23, 1981; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.132" NODE="27:2.0.1.1.1.8.27.2" TYPE="SECTION">
<HEAD>§ 40.132   Deposit of securities in lieu of corporate surety.</HEAD>
<P>In lieu of corporate surety the manufacturer of tobacco products may pledge and deposit, as security for his bond, securities which are transferable and are guaranteed as to both interest and principal by the United States, in accordance with the provisions of 31 CFR part 225.
</P>
<SECAUTH TYPE="N">(61 Stat. 650, 72 Stat. 1421; 6 U.S.C.9301, 9303; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.133" NODE="27:2.0.1.1.1.8.27.3" TYPE="SECTION">
<HEAD>§ 40.133   Amount of individual bond.</HEAD>
<P>The amount of the bond of a manufacturer of tobacco products shall be not less than the total amount of tax liability on all tobacco products manufactured in his factory, received in bond from other factories and from export warehouses, and released to him in bond from customs custody, during any calendar month. Where the amount of any bond is no longer sufficient and the bond is in less than the maximum amount, the manufacturer shall immediately file a strengthening or superseding bond as required by this subpart. The amount of any such bond (or the total amount including strengthening bonds, if any) need not exceed $250,000 for a manufacturer producing or receiving cigarettes in bond; need not exceed $150,000 for a manufacturer producing or receiving cigars, smokeless tobacco, pipe tobacco, or roll-your-own tobacco in bond; and need not exceed $250,000 for a manufacturer producing or receiving any combination of tobacco products in bond. The bond of a manufacturer of tobacco products shall in no case be less than $1,000.
</P>
<CITA TYPE="N">[T.D. ATF-232, 51 FR 28080, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-289, 54 FR 48839, Nov. 27, 1989; T.D. ATF-424, 64 FR 71931, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 40.134" NODE="27:2.0.1.1.1.8.27.4" TYPE="SECTION">
<HEAD>§ 40.134   Amount of blanket bond.</HEAD>
<P>In the case of a blanket bond filed under the provisions of § 40.67, where the total amount of individual bonds otherwise required for the factories under § 40.133 does not exceed $250,000, such blanket bond shall be not less than the total amount of such individual bonds. Where the total amount of such individual bonds required is in excess of $250,000 but not in excess of $500,000, the amount of the blanket bond shall be not less than $250,000 plus 50 percent of such total amount which is in excess of $250,000. Where the total amount of such individual bonds required is in excess of $500,000 the amount of the blanket bond shall be not less than $375,000 plus 25 percent of such total amount which is in excess of $500,000.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.135" NODE="27:2.0.1.1.1.8.27.5" TYPE="SECTION">
<HEAD>§ 40.135   Strengthening bond.</HEAD>
<P>Where the amount of any bond is no longer sufficient under the provisions of § 40.133 or § 40.134, the manufacturer shall immediately file a strengthening bond in an appropriate amount with the same surety as that on the bond already in effect, unless a superseding bond is filed pursuant to § 40.136. Strengthening bonds will not be approved where any notation is made thereon which is intended, or which may be construed, as a release of any former bond, or as limiting the amount of either bond to less than its full amount.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.136" NODE="27:2.0.1.1.1.8.27.6" TYPE="SECTION">
<HEAD>§ 40.136   Superseding bond.</HEAD>
<P>A manufacturer of tobacco products shall immediately file a new bond to supersede his current bond when 
</P>
<P>(a) The corporate surety on the current bond becomes insolvent, 
</P>
<P>(b) The appropriate TTB officer approves a request from the surety on the current bond to terminate his liability under the bond,
</P>
<P>(c) Payment of any liability under a bond is made by the surety thereon, 
</P>
<P>(d) The amount of the bond is no longer sufficient under the provisions of § 40.133 or § 40.134 and a strengthening bond has not been filed, or 
</P>
<P>(e) The appropriate TTB officer considers such a superseding bond necessary for the protection of the revenue. 
</P>
<FP>Where a bond is not filed as required under the provisions of this section the manufacturer shall discontinue forthwith the operations to which such bond relates.
</FP>
<SECAUTH TYPE="N">(72 Stat. 1421: 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.137" NODE="27:2.0.1.1.1.8.27.7" TYPE="SECTION">
<HEAD>§ 40.137   Extension of coverage of bond.</HEAD>
<P>An extension of coverage of bond shall be manifested on TTB F 5000.18 by the manufacturer of tobacco products and by the surety on the bond with the same formality and proof of authority as required for the execution of the bond.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[26 FR 8174, Aug. 31, 1961, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975; 54 FR 48839, Nov. 27, 1989, and further redesignated by T.D. ATF-460, 66 FR 39093, July 27, 2001; as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.138" NODE="27:2.0.1.1.1.8.27.8" TYPE="SECTION">
<HEAD>§ 40.138   Approval of bond and extension of coverage of bond.</HEAD>
<P>No person shall commence operations under any bond, nor extend his operations, until he receives from the appropriate TTB officer notice of his approval of the bond or of an appropriate extension of coverage of the bond required under this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.139" NODE="27:2.0.1.1.1.8.27.9" TYPE="SECTION">
<HEAD>§ 40.139   Termination of bond.</HEAD>
<P>Any bond required by this part may be terminated by the appropriate TTB officer as to liability for future operations (a) pursuant to application by the surety as provided in the bond, (b) on approval of a superseding bond, or (c) when operations by the manufacturer are permanently discontinued in accordance with subpart J. After a bond is terminated the surety shall remain bound with respect to any liability for unpaid taxes, penalties, and interest, not in excess of the amount of the bond, incurred by the manufacturer prior to the termination date.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[T.D. 6840, 30 FR 9311, July 27, 1965. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 40.140" NODE="27:2.0.1.1.1.8.27.10" TYPE="SECTION">
<HEAD>§ 40.140   Release of pledged securities.</HEAD>
<P>Securities of the United States pledged and deposited as provided in § 40.132 shall be released only in accordance with the provisions of 31 CFR part 225. Such securities will not be released by the appropriate TTB officer until liability under the bond for which they were pledged has been terminated. When the appropriate TTB officer is satisfied that they may be released, he shall fix the date or dates on which a part or all of such securities may be released. At any time prior to the release of such securities, the appropriate TTB officer may extend the date of release for such additional length of time as he deems necessary.
</P>
<SECAUTH TYPE="N">(61 Stat. 650, 72 Stat. 1421; 31 U.S.C. 9301, 9303, 26 U.S.C. 5711)


</SECAUTH>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:2.0.1.1.1.9" TYPE="SUBPART">
<HEAD>Subpart H—Operations by Manufacturers of Tobacco Products</HEAD>


<DIV7 N="27" NODE="27:2.0.1.1.1.9.27" TYPE="SUBJGRP">
<HEAD>Determination and Payment of Taxes on Tobacco Products</HEAD>


<DIV8 N="§ 40.161" NODE="27:2.0.1.1.1.9.27.1" TYPE="SECTION">
<HEAD>§ 40.161   Determination of tax and method of payment.</HEAD>
<P>Except for removals in bond and transfers in bond, as authorized by law, the taxes imposed on tobacco products by section 5701, I.R.C., shall be determined at the time of removal of such products and paid on the basis of a return, in accordance with the provisions of this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417; 26 U.S.C. 5703)
</SECAUTH>
<CITA TYPE="N">[T.D. 6929, 32 FR 13866, Oct. 5, 1967. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-232, 51 FR 28081, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.162" NODE="27:2.0.1.1.1.9.27.2" TYPE="SECTION">
<HEAD>§ 40.162   Semimonthly tax return.</HEAD>
<P>Every manufacturer of tobacco products shall file, for each of his factories, a semimonthly tax return on Form 5000.24 for each return period, including any period during which a manufacturer begins or discontinues business. The return shall be filed with TTB in accordance with the instructions on the form. The manufacturer shall file the return at the time specified in § 40.165 regardless of whether tobacco products are removed or whether tax is due for that particular return period. However, when the manufacturer requests by letter and the appropriate TTB officer grants specific authorization, the manufacturer need not during the term of such authorization file a tax return for which tax is not due or payable.
</P>
<CITA TYPE="N">[T.D. ATF-232, 51 FR 35353, Oct. 3, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-251, 52 FR 19339, May 22, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 40.163" NODE="27:2.0.1.1.1.9.27.3" TYPE="SECTION">
<HEAD>§ 40.163   Semimonthly tax return periods.</HEAD>
<P>Except as otherwise provided in § 40.164, the periods to be covered by semimonthly tax returns are from the 1st day of each month through the 15th day of that month and from the 16th day of each month through the last day of that month.
</P>
<CITA TYPE="N">[T.D. TTB-89, 76 FR 3513, Jan. 20, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 40.164" NODE="27:2.0.1.1.1.9.27.4" TYPE="SECTION">
<HEAD>§ 40.164   Special rule for taxes due for the month of September.</HEAD>
<P>(a) <I>Division of second semimonthly period.</I> (1) <I>General.</I> Except as otherwise provided in paragraph (a)(2) of this section, the second semimonthly period for the month of September is divided into two payment periods, from the 16th day through the 26th day, and from the 27th day through the 30th day. The manufacturer shall file a return on TTB F 5000.24, and make remittance, for the period September 16-26, no later than September 29. The manufacturer shall file a return on TTB F 5000.24, and make remittance, for the period September 27-30, no later than October 14.
</P>
<P>(2) <I>Taxpayment not by electronic fund transfer.</I> In the case of taxes for which remittance by electronic fund transfer (EFT) is not required by § 40.165a, the second semimonthly period of September is divided into two payment periods, from the 16th day through the 25th day, and from the 26th day through the 30th day. The manufacturer shall file a return on TTB F 5000.24, and make remittance, for the period September 16-25, no later than September 28. The manufacturer shall file a return on TTB F 5000.24, and make remittance, for the period September 26-30, no later than October 14.
</P>
<P>(b) <I>Amount of payment—Safe harbor rule.</I> (1) <I>General.</I> Taxpayers are considered to have met the requirements of paragraph (a)(1) of this section if the amount paid no later than September 29 is not less than 11/15ths (73.3 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(2) <I>Taxpayment not by EFT.</I> Taxpayers are considered to have met the requirements of paragraph (a)(2) of this section if the amount paid no later than September 28 is not less than 2/3rds (66.7 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(c) <I>Weekends and holidays.</I> If the required taxpayment due date for the period September 16-25 or September 16-26, as applicable, falls on a Saturday or legal holiday, the return and remittance are due on the immediately preceding day. If the required due date falls on a Sunday, the return and remittance are due on the immediately following day.
</P>
<P>(d) <I>Example: Payment of tax for the month of September.</I> (1) <I>Facts.</I> X, a manufacturer of tobacco products required to pay taxes by electronic fund transfer, incurred tax liability in the amount of $30,000 for the first semimonthly period of September. For the period September 16-26, X incurred tax liability in the amount of $45,000, and for the period September 27-30, X incurred tax liability in the amount of $2,000.
</P>
<P>(2) <I>Payment requirement.</I> X's payment of tax in the amount of $30,000 for the first semimonthly period of September is due no later than September 29 (§ 40.165(a)). X's payment of tax for the period September 16-26 is also due no later than September 29 (§ 40.164(a)(1)). X may use the safe harbor rule to determine the amount of payment due for the period of September 16-26 (§ 40.164(b)). Under the safe harbor rule, X's payment of tax must not be less than $21,990.00, that is, 11/15ths of the tax liability incurred during the first semimonthly period of September. Additionally, X must pay the tax in the amount of $2,000 for the period September 27-30 no later than October 14 (§ 40.164(a)(1)). X must also pay the underpayment of tax, $23,010.00, for the period September 16-26, no later than October 14 (§ 40.164(b)).
</P>
<CITA TYPE="N">[T.D. TTB-89, 76 FR 3513, Jan. 20, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 40.165" NODE="27:2.0.1.1.1.9.27.5" TYPE="SECTION">
<HEAD>§ 40.165   Times for filing semimonthly return.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in § 40.164 and in paragraph (b) of this section, semimonthly returns on TTB F 5000.24 must be filed, for each return period, not later than the 14th day after the last day of the return period. If the due date falls on a Saturday, Sunday, or legal holiday, the return and remittance are due on the immediately preceding day that is not a Saturday, Sunday, or legal holiday, except as otherwise provided in § 40.164(c).
</P>
<P>(b) <I>Postmark.</I> The official postmark of the U.S. Postal Service stamped on the cover in which the return was mailed shall be considered the date of delivery of the tax return and, if the return was accompanied by a remittance, the date of delivery of the remittance. When the postmark is illegible, the manufacturer shall prove when the postmark was made. When the proprietor sends the tax return with or without remittance by registered mail or by certified mail, the date of registry or the date of the postmark on the sender's receipt of certified mail, as the case may be, shall be treated as the date of delivery of the tax return and, if accompanied, of the remittance.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0467)
</APPRO>
<CITA TYPE="N">[T.D. ATF-246, 52 FR 669, Jan. 8, 1987, as amended by T.D. ATF-251, 52 FR 19339, May 22, 1987; T.D. ATF-365, 60 FR 33675, June 28, 1995; T.D. ATF-446, 66 FR 16602, Mar. 27, 2001; T.D. ATF-446a, 66 FR 19089, Apr. 13, 2001; T.D. TTB-89, 76 FR 3514, Jan. 20, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 40.165a" NODE="27:2.0.1.1.1.9.27.6" TYPE="SECTION">
<HEAD>§ 40.165a   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) <I>General.</I> (1) Each taxpayer who was liable, during a calendar year, for a gross amount equal to or exceeding five million dollars in taxes on tobacco products, cigarette papers, and cigarette tubes combining tax liabilities incurred under this part and part 41 of this chapter, shall use a commercial bank in making payment by electronic fund transfer (EFT) of taxes on tobacco products, cigarette papers, and cigarette tubes during the succeeding calendar year. Payment of taxes on tobacco products by cash, check, or money order, as described in § 40.168, is not authorized for a taxpayer who is required, by this section, to make remittances by EFT. For purposes of this section, the dollar amount of tax liability is defined as the gross tax liability on all taxable withdrawals and importations (including tobacco products, cigarette papers, and cigarette tubes brought into the United States from Puerto Rico or the Virgin Islands) during the calendar year, without regard to any drawbacks, credits, or refunds, for all premises from which such activities are conducted by the taxpayer. Overpayments are not taken into account in summarizing the gross tax liability.
</P>
<P>(2) For the purposes of this section, a taxpayer includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place it appears in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT.
</P>
<P>(3) A taxpayer who is required by this section to make remittances by EFT, shall make a separate EFT remittance and file a separate return, Form 5000.24, for each factory from which tobacco products are withdrawn upon determination of tax.
</P>
<P>(b) <I>Requirements.</I> (1) On or before January 10 of each calendar year, except for a taxpayer already remitting the tax by EFT, each taxpayer who was liable for a gross amount equal to or exceeding five million dollars in taxes on tobacco products, cigarette papers, and cigarette tubes combining tax liabilities incurred under this part and part 41 of this chapter, during the previous calendar year, shall notify, in writing, the appropriate TTB officer. The notice shall be an agreement to make remittances by EFT.
</P>
<P>(2) For each return filed in accordance with this part, the taxpayer shall direct the taxpayer's bank to make an electronic fund transfer in the amount of the tax payment to the Treasury Account as provided in paragraph (e) of this section. The request shall be made to the bank early enough for the transfer to be made to the Treasury Account by no later than the close of business on the last day for filing the return, prescribed in § 40.165 or § 40.167. The request shall take into account any time limit established by the bank.
</P>
<P>(3) If a taxpayer was liable for less than five million dollars in taxes on tobacco products, cigarette papers, and cigarette tubes combining tax liabilities incurred under this part and part 41 of this chapter during the preceding calendar year, the taxpayer may choose either to continue remitting the tax as provided in this section or to remit the tax with the return on as prescribed by § 40.168. Upon filing the first return which the taxpayer chooses to discontinue remitting the tax by EFT and to begin remitting the tax with the tax return, the taxpayer shall notify the appropriate TTB officer by attaching a written notification to Form 5000.24, stating that no taxes are due by EFT, because the tax liability during the preceding calendar year was less than five million dollars, and that the remittance shall be filed with the tax return.
</P>
<P>(c) <I>Remittance.</I> (1) Each taxpayer shall show on the return, Form 5000.24, information about remitting the tax for that return period by EFT and shall file the return with the TTB, in accordance with the instructions on Form 5000.24.
</P>
<P>(2) Remittances shall be considered as made when the taxpayment by electronic fund transfer is received by the Treasury Account. For purposes of this section, a taxpayment by electronic fund transfer shall be considered as received by the Treasury Account when it is paid to a Federal Reserve Bank.
</P>
<P>(3) When the taxpayer directs the bank to effect an electronic fund transfer message as required by paragraph (b)(2) of this section, any transfer data record furnished to the taxpayer, through normal banking procedures, will serve as the record of payment, and shall be retained as part of required records.
</P>
<P>(d) <I>Failure to make a taxpayment by EFT.</I> The taxpayer is subject to a penalty imposed by 26 U.S.C. 5761, 6651, or 6656, as applicable, for failure to make a tax payment by EFT on or before the close of business on the prescribed last day for filing.
</P>
<P>(e) <I>Procedure.</I> Upon the notification required under paragraph (b)(1) of this section, the appropriate TTB officer will issue to the taxpayer a TTB procedure entitled, Payment of Tax by Electronic Fund Transfer. This publication outlines the procedure a taxpayer is to follow when preparing returns and EFT remittances in accordance with this part. The U.S. Customs and Border Protection (CBP) will provide the taxpayer with instructions for preparing EFT remittances for payments to be made to the CBP.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0457)
</APPRO>
<SECAUTH TYPE="N">(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); sec. 202, Pub. L. 85-859, 72 Stat. 1417, as amended (26 U.S.C. 5703))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-198, 49 FR 37582, Sept. 25, 1984] 
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 40.165a, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 40.166" NODE="27:2.0.1.1.1.9.27.7" TYPE="SECTION">
<HEAD>§ 40.166   Default, prepayment of tax required.</HEAD>
<P>Where a check or money order tendered with any return, whether semi-monthly or prepayment, for payment of tax on tobacco products is not paid on presentment, where a manufacturer fails to remit with the return the full amount of tax due thereunder, or where a manufacturer is otherwise in default in payment of tax on tobacco products under the internal revenue laws or this chapter, during the period of such default and until the appropriate TTB officer finds that the revenue will not be jeopardized by the deferred payment of tax pursuant to the provisions of this part, no tobacco products shall be removed subject to tax until the tax thereon has first been paid as provided in § 40.167. Any remittance made during the period of a default shall be in cash, or in the form of a certified, cashier's, or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States, or under the laws of any State, Territory, or possession of the United States, or in the form of a U.S. postal money order or other money order, and defined in § 70.61 of this chapter (payment by check or money order), or shall be delivered in the form of an electronic fund transfer message as provided in § 40.165a.
</P>
<SECAUTH TYPE="N">(68A Stat. 777, 72 Stat. 1417; 26 U.S.C. 6311, 5703; Aug. 16, 1954, ch. 736, 68A Stat. 707 (26 U.S.C. 5703); Aug. 16, 1954, ch. 736, 68A Stat. 777 (26 U.S.C. 6311))
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 34, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-77, 46 FR 3008, Jan. 13, 1981; T.D. ATF-232, 51 FR 28081, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-301, 55 FR 47658, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 40.167" NODE="27:2.0.1.1.1.9.27.8" TYPE="SECTION">
<HEAD>§ 40.167   Prepayment tax return.</HEAD>
<P>(a) To prepay the tax on tobacco products a manufacturer shall file a prepayment tax return on Form 5000.24 showing the tax to be paid on the tobacco products prior to removal. The return shall be executed and filed, prior to the removal of such products, with TTB, in accordance with the instructions on the form. A manufacturer prepaying the taxes on tobacco products under the provisions of this section shall continue to file semimonthly returns as required by § 40.162.
</P>
<P>(b) However, if a manufacturer is required by § 40.165a to pay the tax by electronic fund transfer, the manufacturer shall prepay the tax before any tobacco products can be removed for consumption or sale by completing the return and filing it with TTB, in accordance with the instructions on the form. At the same time, the manufacturer shall direct his bank to effect an EFT.
</P>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 68A Stat. 1417 (26 U.S.C. 5703); sec. 202, Pub. L. 85-859, 72 Stat. 1423, as amended (26 U.S.C. 5741); (Aug. 16, 1954, ch. 736, 68A Stat. 775, as amended (26 U.S.C. 6302)); 26 U.S.C. 7805 (68A Stat. 917, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 34, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-77, 46 FR 3008, Jan. 13, 1981; T.D. ATF-219, 50 FR 51390, Dec. 17, 1985; T.D. ATF-232, 51 FR 28081, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 40.168" NODE="27:2.0.1.1.1.9.27.9" TYPE="SECTION">
<HEAD>§ 40.168   Remittance with return.</HEAD>
<P>Except when an electronic fund transfer has been made under § 40.165a for the full amount of tax due, the tax on tobacco products shown to be due and payable on any return shall be paid by remittance in full with the tax return. The remittance may be in the form which the appropriate TTB officer is authorized to accept under § 70.61 of this chapter (Payment by check or money order) and which is acceptable to him, except as otherwise specified in § 40.166. Checks and money orders shall be made payable to the “Alcohol and Tobacco Tax and Trade Bureau”. In paying the tax, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.
</P>
<SECAUTH TYPE="N">(68A Stat. 778, 72 Stat. 1417; 26 U.S.C. 6313, 5703; Aug. 16, 1954, ch. 736, 68A Stat. 707, as amended (26 U.S.C. 5703))
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 35, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-77, 46 FR 3009, Jan. 13, 1981; T.D. ATF-232, 51 FR 28081, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-301, 55 FR 47658, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 40.169" NODE="27:2.0.1.1.1.9.27.10" TYPE="SECTION">
<HEAD>§ 40.169   Employer identification number.</HEAD>
<P>The employer identification number (defined at 26 CFR 301.7701-12) of a manufacturer of tobacco products who has been assigned such a number shall be shown on each tax return, Form 5000.24. Failure of the manufacturer to include his employer identification number on Form 5000.24 may result in assertion and collection of the penalty specified in § 70.113 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-219, 50 FR 51390, Dec. 17, 1985, as amended by T.D. ATF-301, 55 FR 47658, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 40.170" NODE="27:2.0.1.1.1.9.27.11" TYPE="SECTION">
<HEAD>§ 40.170   Application for employer identification number.</HEAD>
<P>Every manufacturer of tobacco products who has neither secured an employer identification number nor made application therefor shall file an application on Form SS-4. Form SS-4 may be obtained from any service center director or from any district director. Such application shall be filed on or before the seventh day after the date on which any tax return under this part is filed. Each manufacturer shall make application for and shall be assigned only one employer identification number for all internal revenue tax purposes.
</P>
<SECAUTH TYPE="N">(75 Stat. 828; 26 U.S.C. 6109)
</SECAUTH>
<CITA TYPE="N">[T.D. 7055, 35 FR 13515, Aug. 25, 1970. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 40.171" NODE="27:2.0.1.1.1.9.27.12" TYPE="SECTION">
<HEAD>§ 40.171   Execution and filing of Form SS-4.</HEAD>
<P>The application on Form SS-4, together with any supplementary statement, shall be prepared in accordance with the form, instructions, and regulations applicable thereto, and shall set forth fully and clearly the data therein called for. The application shall be filed with the service center director serving any internal revenue district where the applicant is required to file returns under this part, except that hand-carried applications may be filed with the district director of any such district as provided for in 26 CFR 301.6091-1. The application shall be signed by (a) the individual if the person is an individual; (b) the president, vice president, or other principal officer if the person is a corporation; (c) a responsible and duly authorized member or officer having knowledge of its affairs if the person is a partnership or other unincorporated organization; or (d) the fiduciary if the person is a trust or estate.
</P>
<SECAUTH TYPE="N">(75 Stat. 828; 26 U.S.C. 6109)
</SECAUTH>
<CITA TYPE="N">[T.D. 7055, 35 FR 13515, Aug. 25, 1970. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="28" NODE="27:2.0.1.1.1.9.28" TYPE="SUBJGRP">
<HEAD>Records</HEAD>


<DIV8 N="§ 40.181" NODE="27:2.0.1.1.1.9.28.13" TYPE="SECTION">
<HEAD>§ 40.181   General.</HEAD>
<P>Every manufacturer of tobacco products must keep records of his operations and transactions which shall reflect, for each day, the information specified in §§ 40.182 and 40.183. For this purpose <I>day</I> shall mean calendar day, except that the appropriate TTB officer may, upon application of the manufacturer by letter, in duplicate, authorize as such day for a factory a 24-hour cycle of operation other than the calendar day. A day once so established as other than the calendar day may be changed only by another application approved by the appropriate TTB officer. No specific form is required. The manufacturer may use commercial records from which the required information may be readily ascertained for this purpose. The manufacturer shall keep the auxiliary and supplemental records from which such records are compiled and shall keep supporting records, as specified in §§ 40.184 and 40.186, of tobacco products removed subject to tax and transferred in bond. Except as provided in §§ 40.184 and 40.186, the entries in the commercial records so maintained or kept shall be made not later than the close of the next business day following the day on which the transaction(s) occurred. As used in this section the term <I>business day</I> shall mean any day other than Saturday, Sunday, a legal holiday in the District of Columbia, or a statewide legal holiday in the State wherein the factory to which the records relate is located.
</P>
<SECAUTH TYPE="N">(72 Stat. 1423, as amended; 26 U.S.C. 5741)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-424, 64 FR 71931, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 40.182" NODE="27:2.0.1.1.1.9.28.14" TYPE="SECTION">
<HEAD>§ 40.182   Record of tobacco and processed tobacco.</HEAD>
<P>(a) Except as provided in paragraph (b) of this section, a manufacturer of tobacco products must maintain a record that shows the total quantity in pounds of all:
</P>
<P>(1) Processed tobacco on hand at the beginning of each month;
</P>
<P>(2) Processed tobacco received, together with the name and address of the person from whom received and the date of receipt;
</P>
<P>(3) Processed tobacco used in the manufacture of tobacco products, together with the date of use;
</P>
<P>(4) Processed tobacco lost, together with the date and other circumstances of the loss;
</P>
<P>(5) Processed tobacco destroyed, together with the date and other circumstances of the destruction;
</P>
<P>(6) Processed tobacco removed, together with the date of the removal and reason for the removal; and
</P>
<P>(7) Tobacco (unprocessed) on hand at the beginning of each month and used in the manufacture of tobacco products, lost, destroyed, or removed during each month.
</P>
<P>(b) A manufacturer of tobacco products that is required to obtain authorization to engage in another business within the factory under §§ 40.47(b) and 40.72(b) must keep records as prescribed in § 40.521, in addition to those required elsewhere in this part.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0068)
</APPRO>
<CITA TYPE="N">[T.D. TTB-104, 77 FR 37302, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 40.183" NODE="27:2.0.1.1.1.9.28.15" TYPE="SECTION">
<HEAD>§ 40.183   Record of tobacco products.</HEAD>
<P>The record of a manufacturer of tobacco products must show the date and total quantities of all tobacco products by kind (small cigars; large cigars; small cigarettes; large cigarettes; chewing tobacco; snuff; pipe tobacco; roll-your-own tobacco) that are:
</P>
<P>(a) Manufactured;
</P>
<P>(b) Received in bond by—
</P>
<P>(1) Transfer from other factories,
</P>
<P>(2) Release from customs custody,
</P>
<P>(3) Transfer from export warehouses, and
</P>
<P>(4) Transfer from foreign trade zones;
</P>
<P>(c) Received by return to bond;
</P>
<P>(d) Disclosed as an overage by inventory;
</P>
<P>(e) Removed subject to tax (itemize large cigars by sale price in accordance with § 40.22, except that before April 1, 2009, cigars that cost more than $235.294 may optionally be shown as if the price were $236 per thousand, and on and after April 1, 2009, cigars that cost more than $763.222 may optionally be shown as if the price were $764 per thousand);
</P>
<P>(f) Removed, in bond, for—
</P>
<P>(1) Export,
</P>
<P>(2) Transfer to export warehouses,
</P>
<P>(3) Transfer to other factories,
</P>
<P>(4) Transfer to foreign trade zones,
</P>
<P>(5) Use of the United States, and
</P>
<P>(6) Experimental purposes off factory premises;
</P>
<P>(g) Otherwise disposed of, without determination of tax, by—
</P>
<P>(1) Consumption by employees on factory premises,
</P>
<P>(2) Consumption by employees off factory premises, together with the number of employees to whom furnished,
</P>
<P>(3) Use for experimental purposes on factory premises,
</P>
<P>(4) Loss,
</P>
<P>(5) Destruction, and
</P>
<P>(6) Reduction to materials;
</P>
<P>(h) Disclosed as a shortage by inventory; and
</P>
<P>(i) On which the tax has been determined and which are—
</P>
<P>(1) Received, and
</P>
<P>(2) Disposed of.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0068.)
</APPRO>
<CITA TYPE="N">[T.D. ATF-421, 64 FR 71923, Dec. 22, 1999, as amended by T.D. ATF-424, 64 FR 71931, Dec. 22, 1999; T.D. ATF-420, 64 FR 71940, Dec. 22, 1999; T.D. TTB-75, 74 FR 14482, Mar. 31, 2009; 78 FR 38567, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 40.184" NODE="27:2.0.1.1.1.9.28.16" TYPE="SECTION">
<HEAD>§ 40.184   Record of removals subject to tax.</HEAD>
<P>(a) <I>Requirement.</I> Every manufacturer of tobacco products must keep a record of tobacco products removed from the factory subject to tax. The manufacturer must make entries in this record at the time of removal. The record for each removal must show:
</P>
<P>(1) The date of removal,
</P>
<P>(2) The name and address of the person to whom shipped or delivered,
</P>
<P>(3) The kind and quantity of tobacco products removed, and
</P>
<P>(4) For large cigars, show the sale price (if the sale price is more than $235.294 per thousand before April 1, 2009, or more than $763.222 per thousand on and after April 1, 2009, you may place a note to that effect in the record instead of the actual price).
</P>
<P>(b) <I>Exceptions.</I> (1) The record of removal may consist of the manufacturer's commercial documents, such as copies of invoices, rather than records prepared expressly to meet the requirements of this section. If commercial documents are used, they must be kept at the factory, contain all the details required by this section, and be clear and accurate. Commercial documents that do not show specifically the tax classification of tobacco products (including sale price of large cigars) are still acceptable if they contain adequate information for an appropriate TTB officer to readily ascertain the applicable tax.
</P>
<P>(2) Where tobacco products are delivered within the factory directly to the consumer, the record need not show the name and address of the consumer.
</P>
<SECAUTH TYPE="N">(Sec. 2128(c), Pub. L. 94-455, 90 Stat. 1921 (26 U.S.C. 5741))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71941, Dec. 22, 1999, as amended by T.D. TTB-75, 74 FR 14483, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.185" NODE="27:2.0.1.1.1.9.28.17" TYPE="SECTION">
<HEAD>§ 40.185   Retention of records.</HEAD>
<P>All records required to be kept under this part, including copies of authorizations, claims, inventories, notices, reports, returns and schedules, shall be retained by the manufacturer for three years following the close of the calendar year in which filed or made, or in the case of an authorization, for three years following the close of the calendar year in which the operation under such authorization is concluded. Such records shall be kept in the factory or a place convenient thereto, and shall be made available for inspection by any appropriate TTB officer upon his request.
</P>
<SECAUTH TYPE="N">(72 Stat. 1423; 26 U.S.C. 5741)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.186" NODE="27:2.0.1.1.1.9.28.18" TYPE="SECTION">
<HEAD>§ 40.186   Record in support of transfers in bond.</HEAD>
<P>Every manufacturer of tobacco products shall keep a supporting record of tobacco products transferred in bond to or received in bond from other factories, and shall make the entries therein at the time of each receipt or removal of such products. Such supporting records shall show the date of receipt or removal, the name of the manufacturer and address of the factory from which received or to which removed or the permit number of such factory, and the kind and quantity of tobacco products. Where the manufacturer keeps, at the factory, copies of invoices or other commercial records containing the information required as to each receipt and removal, in such orderly manner that the information may be readily ascertained therefrom, such copies will be considered the supporting record required by this section.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0358)
</APPRO>
<SECAUTH TYPE="N">(72 Stat. 1423, as amended; 26 U.S.C. 5741)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 35, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-232, 51 FR 28081, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.187" NODE="27:2.0.1.1.1.9.28.19" TYPE="SECTION">
<HEAD>§ 40.187   Record of sales prices of large cigars.</HEAD>
<P>Every manufacturer of tobacco products who removes large cigars from the factory shall keep such records as are necessary to establish and verify the price for which the cigars are sold, in accordance with § 40.22. The record shall be a continuing one of each brand and size of cigar so that the sale price on which the tax is based may be readily ascertained.
</P>
<CITA TYPE="N">[ T.D. ATF-307, 55 FR 52743, Dec. 21, 1990. Redesignated and amended by T.D. ATF-420, 64 FR 71941, Dec. 22, 1999; T.D. ATF-420, 65 FR 1676, Jan. 11, 2000]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="29" NODE="27:2.0.1.1.1.9.29" TYPE="SUBJGRP">
<HEAD>Inventories and Reports</HEAD>


<DIV8 N="§ 40.201" NODE="27:2.0.1.1.1.9.29.20" TYPE="SECTION">
<HEAD>§ 40.201   Inventories.</HEAD>
<P>Every manufacturer of tobacco products shall make true and accurate inventories on Form 5210.9, which inventories shall include all tobacco products and processed tobacco on hand required to be accounted for in the records kept under this part. The manufacturer shall make such an inventory at the time of commencing business, which shall be the effective date of the permit issued upon original qualification under this part; at the time of transferring ownership; at the time of changing the location of his factory; at the time of concluding business; and at such other time as any appropriate TTB officer may require. Each inventory shall be prepared in duplicate, and shall be subject to verification by an appropriate TTB officer. The original of each such inventory shall be submitted to the appropriate TTB officer, and the duplicate shall be retained by the manufacturer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0358)
</APPRO>
<SECAUTH TYPE="N">(72 Stat. 1422, 1423, as amended; 26 U.S.C. 5721, 5741)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 35, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-232, 51 FR 28081, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-424, 64 FR 71931, Dec. 22, 1999; T.D. TTB-78, 74 FR 29409, June 22, 2009; T.D. TTB-91, 76 FR 5480, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 40.202" NODE="27:2.0.1.1.1.9.29.21" TYPE="SECTION">
<HEAD>§ 40.202   Reports.</HEAD>
<P>(a) <I>Monthly report.</I> Every manufacturer of tobacco products shall make a report on Form 5210.5, in duplicate, for each month and for any portion of a month during which he engages in such business. Such report shall be made regardless of whether any operations or transactions occurred during the month or portion of a month covered therein. The report for a month or portion of a month in which business is commenced or is concluded shall be conspicuously marked “Commencing Report” or “Concluding Report,” respectively. The original of the report shall be submitted to the appropriate TTB officer not later than the 20th day of the month succeeding the month covered therein, and the duplicate shall be retained by the manufacturer. Each report shall show, for the period covered, the total quantity of tobacco products:
</P>
<P>(1) Manufactured,
</P>
<P>(2) Received in bond,
</P>
<P>(3) Received by return to bond,
</P>
<P>(4) Disclosed by inventory as an overage,
</P>
<P>(5) Removed subject to tax,
</P>
<P>(6) Removed in bond,
</P>
<P>(7) Otherwise disposed of without determination of tax,
</P>
<P>(8) Disclosed by inventory as a shortage, and
</P>
<P>(9) On hand, in bond, beginning of and end of month.
</P>
<P>(b) <I>Report of processed tobacco.</I> In addition to complying with the requirements set forth in this part relating to the reporting of tobacco products, a manufacturer of tobacco products that is required to obtain authorization to engage in another business within the factory under §§ 40.47(b) and 40.72(b) must also make and submit reports as prescribed in § 40.522.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0033)
</APPRO>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5722))
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 36, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-40, 42 FR 5001, Jan. 26, 1977; T.D. ATF-232, 51 FR 28081, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-307, 55 FR 52743, Dec. 21, 1990; T.D. ATF-424, 64 FR 71931, Dec. 22, 1999; T.D. TTB-78, 74 FR 29409, June 22, 2009; T.D. TTB-104, 77 FR 37302, June 21, 2012]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="30" NODE="27:2.0.1.1.1.9.30" TYPE="SUBJGRP">
<HEAD>Packages</HEAD>


<DIV8 N="§ 40.211" NODE="27:2.0.1.1.1.9.30.22" TYPE="SECTION">
<HEAD>§ 40.211   Package.</HEAD>
<P>All tobacco products shall, before removal subject to tax, be put up by the manufacturer in packages which shall be of such construction as will securely contain the products therein and maintain the mark and the notice thereon as required by this part. No package of tobacco products shall have contained therein, attached thereto, or stamped, marked, written, or printed thereon (a) any certificate, coupon, or other device purporting to be or to represent a ticket, chance, share, or an interest in, or dependent on, the event of a lottery, (b) any indecent or immoral picture, print, or representation, or (c) any statement or indication that United States tax has been paid. No person may purchase, receive, possess (except for personal consumption), offer for sale, or sell or otherwise dispose of, after removal, any tobacco products that are not put up in packages bearing the marks, labels, and notices, as required under this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5723 and 5751)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 36, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28081, Aug. 5, 1986 T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. TTB-78, 74 FR 29409, June 22, 2009] 


</CITA>
</DIV8>


<DIV8 N="§ 40.212" NODE="27:2.0.1.1.1.9.30.23" TYPE="SECTION">
<HEAD>§ 40.212   Mark.</HEAD>
<P>Every package of tobacco products packaged in a domestic factory shall, before removal subject to tax, have adequately imprinted thereon, or on a label securely affixed thereto, a mark as specified in this section. The mark may consist of the name of the manufacturer removing the product subject to tax and the location (by city and State) of the factory from which the products are to be so removed, or may consist of the permit number of the factory from which the products are to be so removed. (Any trade name of the manufacturer approved as provided in § 40.65 may be used in the mark as the name of the manufacturer.) As an alternative, where tobacco products are packaged and removed subject to tax by the same manufacturer, either at the same or different factories, the mark may consist of the name of such manufacturer if the factory where packaged is identified on or in the package by a means approved by the appropriate TTB officer. Before using the alternative, the manufacturer shall notify the appropriate TTB officer in writing of the name to be used as the name of the manufacturer and the means to be used for identifying the factory where packaged. If approved by him the appropriate TTB officer shall return approved copies of the notice to the manufacturer. A copy of the approved notice shall be retained as part of the factory records at each of the factories operated by the manufacturer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 36, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-232, 51 FR 28081, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.213" NODE="27:2.0.1.1.1.9.30.24" TYPE="SECTION">
<HEAD>§ 40.213   Tobacco products labeled for export.</HEAD>
<P>Tobacco products labeled for export are ineligible for removal from the factory for distribution into the U.S. domestic market. Tobacco products labeled for export may not be sold, transferred, or delivered into the U.S. domestic market by a manufacturer of tobacco products unless the manufacturer repackages the tobacco product by removing it from its original package bearing the export marks and placing it into a new package. The new package, mark, and notice must conform to the requirements of this subpart.
</P>
<CITA TYPE="N">[78 FR 38567, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 40.214" NODE="27:2.0.1.1.1.9.30.25" TYPE="SECTION">
<HEAD>§ 40.214   Notice for cigars.</HEAD>
<P>Before removal subject to tax, every package of cigars shall have adequately imprinted on it, or on a label securely affixed to it—
</P>
<P>(a) The designation “cigars”;
</P>
<P>(b) The quantity of cigars contained in the package; and
</P>
<P>(c) For small cigars, the classification of the product for tax purposes (i.e., either “small” or “little”).
</P>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18310, Mar. 24, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 40.215" NODE="27:2.0.1.1.1.9.30.26" TYPE="SECTION">
<HEAD>§ 40.215   Notice for cigarettes.</HEAD>
<P>Every package of cigarettes shall, before removal subject to tax, have adequately imprinted thereon, or on a label securely affixed thereto, the designation “cigarettes”, the quantity of such product contained therein, and the classification for tax purposes, i.e., for small cigarettes, either “small” or “Class A”, and for large cigarettes, either “large” or “Class B”.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.216" NODE="27:2.0.1.1.1.9.30.27" TYPE="SECTION">
<HEAD>§ 40.216   Notice for smokeless tobacco.</HEAD>
<P>(a) <I>Product designation.</I> Every package of chewing tobacco or snuff shall, before removal subject to tax, have adequately imprinted thereon, or on a label securely affixed thereto, the designation “chewing tobacco” or “snuff.” As an alternative, packages of chewing tobacco may be designated “Tax Class C”, and packages of snuff may be designated “Tax Class M”.
</P>
<P>(b) <I>Product weight.</I> Every package of chewing tobacco or snuff shall, before removal subject to tax, have adequately imprinted thereon, or on a label securely affixed thereto, a clear statement of the actual pounds and ounces of the product contained therein. As an alternative, the shipping cases containing packages of chewing tobacco or snuff may, before removal, have adequately imprinted thereon, or on a label securely affixed thereto, a clear statement, in pounds and ounces, of the total weight of the product, the tax class of the product, and the total number of the packages of product contained therein.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0502)
</APPRO>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-446, 66 FR 16602, Mar. 27, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 40.216a" NODE="27:2.0.1.1.1.9.30.28" TYPE="SECTION">
<HEAD>§ 40.216a   Notice for pipe tobacco.</HEAD>
<P>(a) <I>Product designation.</I> Every package of pipe tobacco shall, before removal subject to tax, have adequately imprinted thereon, or on a label securely affixed thereto, the designation “pipe tobacco.”
</P>
<P>(b) <I>Product weight.</I> Every package of pipe tobacco shall, before removal subject to tax, have adequately imprinted thereon, or on a label securely affixed thereto, a clear statement of the actual pounds and ounces of the product contained therein.
</P>
<CITA TYPE="N">[T.D. ATF-289, 54 FR 48840, Nov. 27, 1989. Redesignated at T.D. ATF-424, 64 FR 71931, Dec. 22, 1999; T.D. TTB-78, 74 FR 29410, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.216b" NODE="27:2.0.1.1.1.9.30.29" TYPE="SECTION">
<HEAD>§ 40.216b   Notice for roll-your-own tobacco.</HEAD>
<P>(a) <I>Product designation.</I> Every package of roll-your-own tobacco, before removal subject to tax, must have adequately imprinted on it, or on a label securely affixed to it, the applicable designation “roll-your-own tobacco”, “cigarette tobacco”, “cigar tobacco”, “cigarette wrapper”, or “cigar wrapper”.
</P>
<P>(b) <I>Product weight.</I> Before removal subject to tax, roll-your-own tobacco must have a clear statement of the actual weight in pounds and ounces of the product in the package. This statement must be adequately imprinted on, or on a label securely affixed to, the package. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0091)
</APPRO>
<CITA TYPE="N">[T.D. ATF-429, 65 FR 57547, Sept. 25, 2000, as amended by T.D. TTB-78, 74 FR 29410, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.216c" NODE="27:2.0.1.1.1.9.30.30" TYPE="SECTION">
<HEAD>§ 40.216c   Package use-up rule.</HEAD>
<P>(a) During the period from June 22, 2009, through March 23, 2010, a manufacturer of tobacco products may remove packages of pipe tobacco or roll-your-own tobacco that do not meet the requirements of § 40.216a(a) or § 40.216b(a), provided that such packages bear the designation “Tax Class L” (to designate pipe tobacco) or “Tax Class J” (to designate roll-your-own tobacco) and were in use prior to June 22, 2009.
</P>
<P>(b) During the period from June 22, 2009, through March 23, 2010, a manufacturer may remove roll-your-own tobacco for which the applicable designation is “cigar tobacco,” “cigarette wrapper,” or “cigar wrapper” even if the packages of such products do not meet the requirements of § 40.216b.
</P>
<CITA TYPE="N">[T.D. TTB-81, 74 FR 48654, Sept. 24, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.217" NODE="27:2.0.1.1.1.9.30.31" TYPE="SECTION">
<HEAD>§ 40.217   Repackaging.</HEAD>
<P>Where a manufacturer of tobacco products desires to repackage, outside the factory, tobacco products on which the tax has been determined or which were removed for a tax-exempt purpose or transferred in bond to an export warehouse, or to repackage tax determined tobacco products in the factory, he shall make application for authorization to do so, in duplicate, to the appropriate TTB officer. The application shall set forth the location and the number of packages, a description of the contents, the tax status of the tobacco products the reason for wanting to repackage the products (e.g., packages soiled, damaged, or otherwise in a condition making the product unsalable), and a description of the package to be used for repackaging. The packages to be used must comply with the package, mark, and notice provisions of this chapter applicable to the tobacco products being repackaged. The operations authorized under this section are limited solely to repackaging for good cause by a manufacturer, pursuant to an approved application, of the specified tobacco products in the described packages, and do not include any manufacturing processes. If the appropriate TTB officer approves the application, he may assign an appropriate TTB officer to supervise the repackaging or he may authorize the manufacturer to repackage the products without supervision by so stating on a copy of the application returned to the manufacturer. Where the manufacturer is authorized to repackage he shall record the date of repackaging on the approved application and retain it as part of his records.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 36, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="31" NODE="27:2.0.1.1.1.9.31" TYPE="SUBJGRP">
<HEAD>Exemption From Taxes on Tobacco Products</HEAD>


<DIV8 N="§ 40.231" NODE="27:2.0.1.1.1.9.31.32" TYPE="SECTION">
<HEAD>§ 40.231   Consumption by employees.</HEAD>
<P>A manufacturer of tobacco products may gratuitously furnish tobacco products, without determination and payment of tax, for personal consumption by employees in the factory in such quantities as desired. Each employee may also be gratuitously furnished by the manufacturer, for off-factory personal consumption, not more than 5 large cigars or cigarettes, 20 small cigars or cigarettes, or one retail package of chewing tobacco, snuff, pipe tobacco or roll-your-own tobacco, or a proportionate quantity of each, without determination and payment of tax, on each day the employee is at work. For the purposes of this section, the term “employee” shall mean those persons whose duties require their presence in the factory or whose duties relate to the manufacture, distribution, or sale of tobacco products and who receive compensation from the manufacturer, or a parent, subsidiary, or auxiliary company or corporation of the manufacturer. Such product furnished for off-factory consumption shall be furnished to the employee within the factory and taken from the factory by the employee on the day for which furnished. Employees shall not sell, offer for sale, or give away products so furnished.
</P>
<CITA TYPE="N">[T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-289, 54 FR 48840, Nov. 27, 1989; T.D. ATF-424, 64 FR 71931, Dec. 22, 1999; T.D. TTB-91, 76 FR 5480, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 40.232" NODE="27:2.0.1.1.1.9.31.33" TYPE="SECTION">
<HEAD>§ 40.232   Experimental purposes.</HEAD>
<P>A manufacturer of tobacco products may use tobacco products for experimental purposes without determination and payment of tax as set forth in this section. 
</P>
<P>(a) <I>What are experimental purposes?</I> Experimental purposes are operations or tests carried out under controlled conditions to discover an unknown scientific principle or fact, to gather or confirm data about a known scientific principle or fact, or to test manufacturing, packaging, or other such equipment. Examples of uses for experimental purposes are: 
</P>
<P>(1) Use by manufacturers to determine scientific facts relating to tobacco products, such as their chemical content; 
</P>
<P>(2) Use by producers of packaging machines to test the operation of such machines; and 
</P>
<P>(3) Use by laboratories, hospitals, medical centers, institutes, colleges, or universities, for scientific, technical, or medical research. 
</P>
<P>(b) <I>What purposes are not experimental?</I> The uses of tobacco products outside the factory premises for advertising or consumer testing or as salespersons' or customers' samples are not experimental purposes. 
</P>
<P>(c) <I>Use in factory.</I> A manufacturer of tobacco products may use tobacco products without determination and payment of tax for experimental purposes in a factory. 
</P>
<P>(d) <I>Use outside factory.</I> A manufacturer may remove tobacco products in bond for experimental purposes outside a factory. When tobacco products are shipped for experimental purposes outside the factory, the proprietor of the factory remains liable for the taxes imposed by 26 U.S.C. 5701 until the occurrence of one of the following events: 
</P>
<P>(1) The tobacco products are returned to the premises of the factory from which they were shipped; or 
</P>
<P>(2) The tobacco products are destroyed during or after their use for experimental purposes. 
</P>
<P>(e) <I>Record of use.</I> In addition to the records prescribed by § 40.183, a manufacturer who removes tobacco products in bond for experimental purposes outside a factory must prepare and maintain a record containing the following information: 
</P>
<P>(1) Name and address of the consignee; 
</P>
<P>(2) Kind and quantity of tobacco products removed; 
</P>
<P>(3) Description of packaging, if any, of the tobacco products removed; 
</P>
<P>(4) Description of how and when the consignee will use the tobacco products; and 
</P>
<P>(5) Disposition of any remaining tobacco products after the consignee's use. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under Control Number 1512-0562) 
</APPRO>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-478, 67 FR 19333, Apr. 19, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 40.233" NODE="27:2.0.1.1.1.9.31.34" TYPE="SECTION">
<HEAD>§ 40.233   Transfer in bond.</HEAD>
<P>A manufacturer of tobacco products may transfer tobacco products in bond, to the factory of any manufacturer of tobacco products. The transfer of tobacco products in bond to the premises of an export warehouse proprietor shall be in accordance with the provisions of part 44 of this chapter. However, tobacco products are eligible for transfer in bond to a manufacturer of tobacco products or to an export warehouse only if they bear the required marks, labels, and notices.</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 37, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71924, Dec. 22, 1999; 78 FR 38567, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 40.234" NODE="27:2.0.1.1.1.9.31.35" TYPE="SECTION">
<HEAD>§ 40.234   Removal for use of the United States.</HEAD>
<P>The removal of tobacco products in bond, for use of the United States, shall be in accordance with the provisions of part 45 of this chapter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 37, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-469, 66 FR 56758, Nov. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 40.235" NODE="27:2.0.1.1.1.9.31.36" TYPE="SECTION">
<HEAD>§ 40.235   Removal for export purposes.</HEAD>
<P>The removal of tobacco products in bond, for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States, shall be in accordance with the provisions of part 44 of this chapter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 37, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.236" NODE="27:2.0.1.1.1.9.31.37" TYPE="SECTION">
<HEAD>§ 40.236   Release from customs custody.</HEAD>
<P>The release of tobacco products from customs custody, in bond, for transfer to the premises of a tobacco products factory, shall be in accordance with the provisions of part 41 of this chapter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 37, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. TTB-16, 69 FR 52423, Aug. 26, 2004] 


</CITA>
</DIV8>

</DIV7>


<DIV7 N="32" NODE="27:2.0.1.1.1.9.32" TYPE="SUBJGRP">
<HEAD>Other Provisions Relating to Operations</HEAD>


<DIV8 N="§ 40.251" NODE="27:2.0.1.1.1.9.32.38" TYPE="SECTION">
<HEAD>§ 40.251   Emergency storage.</HEAD>
<P>In cases of emergency, the appropriate TTB officer may authorize, for a stated period, the temporary storage of tobacco products at a place outside the factory without the application for amended permit required under § 40.114, where such action will not hinder the effective administration of this part, is not contrary to law, and will not jeopardize the revenue. Application for authorization to so store tobacco products shall be submitted to the appropriate TTB officer by letter, in duplicate. All tobacco products so stored outside the factory shall be accounted for in the records and reports required under §§ 40.183 and 40.202 the same as products within the factory.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422, 1423, as amended; 26 U.S.C. 5722, 5741)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 37, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.252" NODE="27:2.0.1.1.1.9.32.39" TYPE="SECTION">
<HEAD>§ 40.252   Reduction of tobacco products to materials.</HEAD>
<P>A manufacturer may reduce tobacco products to materials without supervision. If the tobacco products have been entered in the factory record as manufactured or received, an entry shall be made in such record of the quantity of pipe tobacco or roll-your-own tobacco and the kind and quantity of cigars, cigarettes, and smokeless tobacco reduced to materials and of the quantity of tobacco resulting from the reduction. Where the manufacturer intends to file claims for credit allowance, or refund of tax on such tobacco products, he shall comply with the provisions of §§ 40.311 and 40.313.
</P>
<CITA TYPE="N">[T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-289, 54 FR 48840, Nov. 27, 1989; T.D. ATF-424, 64 FR 71931, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 40.253" NODE="27:2.0.1.1.1.9.32.40" TYPE="SECTION">
<HEAD>§ 40.253   Destruction.</HEAD>
<P>When a manufacturer of tobacco products desires to destroy tobacco products which have been entered in the factory record as manufactured or received, without salvaging the tobacco, he shall notify the appropriate TTB officer by letter, in duplicate, of the kind and quantity of tobacco products to be destroyed, the intended method of destruction, and the date on which he desires to destroy such products. The appropriate TTB officer may assign an appropriate TTB officer to supervise destruction of the tobacco products or he may authorize the manufacturer to destroy such products without supervision by so stating on a copy of the manufacturer's notice returned to the manufacturer. When so authorized by the appropriate TTB officer, the manufacturer shall destroy the tobacco products by burning completely or by rendering them unfit for consumption. Upon completion of the destruction, the manufacturer shall make an entry of such destruction in his factory record, and where destruction without supervision is authorized, shall record the date and method of destruction on the notice returned to him by the appropriate TTB officer, which notice the manufacturer shall retain. Where the manufacturer intends to file claim for credit, allowance, or refund of tax on such products he shall comply with the provisions of §§ 40.311 and 40.313.
</P>
<SECAUTH TYPE="N">(72 Stat. 1423, as amended; 26 U.S.C. 5741)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 37, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.254" NODE="27:2.0.1.1.1.9.32.41" TYPE="SECTION">
<HEAD>§ 40.254   Receipt into factory.</HEAD>
<P>A manufacturer of tobacco products may receive in bond into his factory tobacco products and may also receive into his factory tobacco products on which the tax has been determined (including products on which the tax has been paid). Cigars and cigarettes on which the tax has been determined which are so received shall be segregated and identified as products on which the tax has been determined. If tax determined products received into the factory are so handled that they cannot be identified both physically and in the records as tax determined products they shall be accounted for as returned to bond and upon subsequent removal shall be tax determined. Where returned tax determined tobacco products are to be repackaged without being returned to bond the manufacturer shall make application for authorization to do so to the appropriate TTB officer in accordance with § 40.217. Where the manufacturer intends to file claim for credit, allowance, or refund of tax on tax determined products he shall comply with the provisions of §§ 40.311 and 40.313.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 37, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.255" NODE="27:2.0.1.1.1.9.32.42" TYPE="SECTION">
<HEAD>§ 40.255   Shortages and overages in inventory.</HEAD>
<P>Whenever a manufacturer of tobacco products makes a physical inventory of packaged tobacco products in bond, either as part of normal operations or when required by an appropriate TTB officer, and such inventory discloses a shortage or overage in such products by kind as recorded and reported (<I>i.e.,</I> small cigars, large cigars, chewing tobacco, snuff, pipe tobacco, or roll-your-own tobacco), the manufacturer shall enter such shortage or overage in the records required by § 40.183. Shortages or overages in inventories made at different times may not be used to offset each other, but shall be recorded and reported separately. Unless the manufacturer establishes that a shortage was not caused by a removal subject to the tax the manufacturer shall determine the tax on any shortage, make an adjustment in Schedule A of his next semimonthly tax return and pay the tax thereon. If, after paying the tax on a shortage, the manufacturer satisfactorily establishes that the shortage was not caused by a removal subject to tax, then such payment would be an overpayment of tax which the manufacturer may recover as provided in § 40.286. Where the manufacturer can establish prior to paying the tax on a shortage, that the shortage was not the result of a removal subject to tax he shall submit an explanation of such shortage with his report for the month in which the shortage was disclosed and, if appropriate, he may file claim for remission of tax liability as provided in § 40.287. When an overage is disclosed which the manufacturer can explain, he shall include such explanation in his monthly report and refund of any overpayment may be recovered as provided in § 40.286. Whenever a physical inventory discloses a shortage or overage of tobacco products which have not been packaged the manufacturer shall appropriately enter such shortage or overage in his records and shall, at the time required by the appropriate TTB officer, furnish an explanation in the form of a claim for remission of tax liability as provided in § 40.287. The manufacturer shall pay the tax on any shortage or portion thereof for which he is unable to furnish an explanation acceptable to the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-232, 51 FR 28082, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-289, 54 FR 48840, Nov. 27, 1989; T.D. ATF-424, 64 FR 71931, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 40.256" NODE="27:2.0.1.1.1.9.32.43" TYPE="SECTION">
<HEAD>§ 40.256   Minimum manufacturing and activity requirements.</HEAD>
<P>The minimum manufacturing and activity requirement prescribed in § 40.61(c) of this part is a continuing condition of a manufacturer's permit, that is, a permit to manufacture tobacco products is conditioned upon a person's principal business activity being the manufacture of tobacco products. A permit may be suspended, and subsequently revoked, if the person's principal business activity under such permit is to receive or transfer tobacco products in bond, or if the person has no activity under such permit for a period of one year. As a minimum activity requirement, the quantity of tobacco products manufactured under the permit must be equivalent to, or exceed, the quantity transferred or received in bond under the permit.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29410, June 22, 2009, as amended by T.D. TTB-80, 74 FR 37552, July 29, 2009; T.D. TTB-104, 77 FR 37303, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 40.257" NODE="27:2.0.1.1.1.9.32.44" TYPE="SECTION">
<HEAD>§ 40.257   Processed tobacco.</HEAD>
<P>A manufacturer of tobacco products may be required to obtain authorization from the appropriate TTB officer with regard to the activities involving processed tobacco. See § 40.72. Such manufacturers also must maintain records and may be required to submit reports regarding such activities. See §§ 40.182 and 40.202.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29410, June 22, 2009]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="I" NODE="27:2.0.1.1.1.10" TYPE="SUBPART">
<HEAD>Subpart I—Claims by Manufacturers</HEAD>


<DIV7 N="33" NODE="27:2.0.1.1.1.10.33" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 40.281" NODE="27:2.0.1.1.1.10.33.1" TYPE="SECTION">
<HEAD>§ 40.281   Abatement of assessment.</HEAD>
<P>A claim for abatement of the unpaid portion of the assessment of any tax on tobacco products or any liability in respect thereof, may be allowed to the extent that such assessment is excessive in amount, is assessed after expiration of the applicable period of limitation, or is erroneously or illegally assessed. Any claim under this section shall be prepared on TTB F 5620.8, in duplicate, and shall set forth the particulars under which the claim is filed. The original of the claim, accompanied by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid, shall be filed with the appropriate TTB officer, and the duplicate of the claim shall be retained by the manufacturer.
</P>
<SECAUTH TYPE="N">(68A Stat. 792; 26 U.S.C. 6404)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 38, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 40.282" NODE="27:2.0.1.1.1.10.33.2" TYPE="SECTION">
<HEAD>§ 40.282   Allowance of tax.</HEAD>
<P>Relief from the payment of tax on tobacco products may be extended to a manufacturer by allowance of the tax where the tobacco products after removal from the factory upon determination of tax and prior to the payment of such tax, are lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, while in the possession or ownership of the manufacturer who removed such products, or are withdrawn by him from the market. Any claim for allowance under this section shall be filed on TTB F 5620.8, in duplicate, with the appropriate TTB officer, and shall show the date the tobacco products were removed from the factory. A claim relating to products lost or destroyed shall be supported as prescribed in § 40.301. In the case of a claim relating to tobacco products withdrawn from the market the schedule prescribed in § 40.311 shall be filed with the appropriate TTB officer. The manufacturer may not anticipate allowance of his claim by making the adjusting entry in a tax return pending consideration and action on the claim. Tobacco products to which such a claim relates must be shown as removed on determination of tax in the return covering the period during which such products were so removed. Upon action on the claim by the appropriate TTB officer he will return the copy of TTB F 5620.8 to the manufacturer as notice of such action, which copy, with the copy of any verified supporting schedules, shall be retained by the manufacturer. When such notification of allowance of the claim or any part thereof is received prior to the time the return covering the tax on the tobacco products to which the claim relates is to be filed, the manufacturer may make an adjusting entry and explanatory statement in that tax return. Where the notice of allowance is received after the filing of the return and taxpayment of the tobacco products to which the claim relates, the manufacturer may make an adjusting entry and explanatory statement in the next tax return(s) to the extent necessary to take credit in the amount of the allowance.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9488, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.283" NODE="27:2.0.1.1.1.10.33.3" TYPE="SECTION">
<HEAD>§ 40.283   Credit or refund of tax.</HEAD>
<P>The taxes paid on tobacco products may be credited or refunded (without interest) to a manufacturer on proof satisfactory to the appropriate TTB officer that the claimant manufacturer paid the tax on tobacco products lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, while in the possession or ownership of such manufacturer, or withdrawn by him from the market. Any claim for credit or refund under this section shall be prepared on TTB F 5620.8, in duplicate. Claims shall include a statement that the tax imposed on tobacco products by 26 U.S.C. 7652 or chapter 52, was paid in respect to the tobacco products covered by the claim, and that the products were lost, destroyed, or withdrawn from the market within 6 months preceding the date the claim is filed. A claim for credit or refund relating to products lost or destroyed shall be supported as prescribed in § 40.301, and a claim relating to products withdrawn from the market shall be accompanied by a schedule prepared and verified as prescribed in §§ 40.311 and 40.313. The original and one copy of TTB F 5620.8, claim for credit, or the original of TTB F 5620.8, claim for refund, shall be filed with the appropriate TTB officer. Upon action by the appropriate TTB officer on a claim for credit he will return the copy of TTB F 5620.8 to the manufacturer as notification of allowance or disallowance of the claim or any part thereof, which copy, with the copy of any verified supporting schedules, shall be retained by the manufacturer. When the manufacturer is notified of allowance of the claim for credit or any part thereof he shall make an adjusting entry and explanatory statement in the next tax return(s) to the extent necessary to take credit in the amount of the allowance. Prior to consideration and action on his claim the manufacturer may not anticipate allowance of his claim by taking credit in his tax return. The duplicate of a claim for refund, with the copy of any verified supporting schedules, shall be retained by the manufacturer.
</P>
<SECAUTH TYPE="N">(Sec. 201, Pub. L. 85-859, 72 Stat. 1419)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9489, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-219, 50 FR 51389, Dec. 17, 1985; T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 40.284" NODE="27:2.0.1.1.1.10.33.4" TYPE="SECTION">
<HEAD>§ 40.284   Remission of tax liability.</HEAD>
<P>Remission of the tax liability on tobacco products may be extended to the manufacturer liable for the tax where tobacco products in bond are lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, while in the possession or ownership of such manufacturer. Where tobacco products are so lost or destroyed the manufacturer shall report promptly such fact, and the circumstances, to the appropriate TTB officer. If the manufacturer wishes to be relieved of the tax liability thereon he shall also prepare a claim on TTB F 5620.8, in duplicate, setting forth the nature, date, place, and extent of the loss or destruction. Both copies of the claim, accompanied by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid, shall be filed with the appropriate TTB officer. Upon action on the claim by the appropriate TTB officer he will return the copy of TTB F 5620.8 to the manufacturer as notice of such action, which copy shall be retained by the manufacturer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9489, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.285" NODE="27:2.0.1.1.1.10.33.5" TYPE="SECTION">
<HEAD>§ 40.285   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 40.286" NODE="27:2.0.1.1.1.10.33.6" TYPE="SECTION">
<HEAD>§ 40.286   Refund of overpayment.</HEAD>
<P>Where an error in computation of the quantity of tobacco products or in computation of the amount of tax due results in an overpayment and such error is specifically identified and supported by records, the manufacturer may file claim for refund or may make an adjustment in his semimonthly tax return as provided in § 40.164. (Section 6511, 26 U.S.C., provides that, in most cases, any adjustment of claim for refund of an overpayment of tax on tobacco products must be made or filed within three years after the tax is paid.) If the manufacturer elects to file a claim for refund of an overpayment resulting from such a computational error, he shall do so on TTB F 5620.8, in duplicate. The original shall be filed with the appropriate TTB officer, and the duplicate retained by the manufacturer. Where an overpayment of tax on tobacco products results from other than a computational error any claim for refund or credit shall be made in accordance with subpart A of part 46 of this chapter.
</P>
<SECAUTH TYPE="N">(68A Stat. 791, 72 Stat. 9; 26 U.S.C. 6402, 6423)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 39, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987; T.D. ATF-457, 66 FR 32220, June 14, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 40.287" NODE="27:2.0.1.1.1.10.33.7" TYPE="SECTION">
<HEAD>§ 40.287   Remission of tax liability on shortage.</HEAD>
<P>Whenever a manufacturer of tobacco products desires to submit a claim for remission of tax liability on shortages of tobacco products in bond, disclosed by physical inventory as set forth in § 40.255, he shall prepare such claim on TTB F 5620.8, in duplicate. Both copies of the claim shall be filed with the appropriate TTB officer. The claim shall specify the quantities of tobacco products on which claim is made and the tax liability in respect thereof, and shall set forth the circumstances surrounding the shortage and the reason the manufacturer believes tax is not due or payable. The appropriate TTB officer will, after such investigation as he deems appropriate, allow the claim to the extent he is satisfied the shortage was due to operating losses such as damage during grading, sorting, or packaging, and was not caused by theft or other unlawful or improper removal. Upon action on the claim by the appropriate TTB officer he will return the copy of TTB F 5620.8 to the manufacturer as notice of such action, which copy shall be retained by the manufacturer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1414, as amended, 1417, 1419, as amended; 26 U.S.C. 5701, 5703, 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9489, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="34" NODE="27:2.0.1.1.1.10.34" TYPE="SUBJGRP">
<HEAD>Tobacco Products Lost or Destroyed</HEAD>


<DIV8 N="§ 40.301" NODE="27:2.0.1.1.1.10.34.8" TYPE="SECTION">
<HEAD>§ 40.301   Action by claimant.</HEAD>
<P>Where tobacco products are lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, and the manufacturer desires to file a claim for the tax on such products under the provisions of § 40.282 or § 40.283, he shall indicate on the claim the nature, date, place, and extent of such loss or destruction. The claim shall be accompanied by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 39, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="35" NODE="27:2.0.1.1.1.10.35" TYPE="SUBJGRP">
<HEAD>Tobacco Products Withdrawn From the Market</HEAD>


<DIV8 N="§ 40.311" NODE="27:2.0.1.1.1.10.35.9" TYPE="SECTION">
<HEAD>§ 40.311   Action by claimant.</HEAD>
<P>(a) <I>General.</I> Where tobacco products are withdrawn from the market and the manufacturer desires to file claim under the provisions of § 40.282 or § 40.283, he shall assemble the products in or adjacent to a factory if they are to be returned to bond or at any suitable place if they are to be destroyed or reduced to materials. The manufacturer shall group the products according to the rates of tax applicable to the products, and shall prepare a schedule of the products, on TTB Form 5200.7, in triplicate. All copies of the schedule shall be forwarded to the appropriate TTB officer.
</P>
<P>(b) <I>Large cigars.</I> Refund or credit of tax on large cigars withdrawn from the market is limited to the lowest tax paid on that brand and size of cigar during the required record retention period (see § 40.185), except where the manufacturer establishes that a greater amount was actually paid. For each claim involving large cigars withdrawn from the market, the manufacturer must include a certification on either Form 5200.7 or TTB F 5620.8 to read as follows: 
</P>
<EXTRACT>
<P>The amounts claimed relating to large cigars are based on the lowest sale price applicable to the cigars during the required record retention period, except where specific documentation is submitted with the claim to establish that any greater amount of tax claimed was actually paid.</P></EXTRACT>
<SECAUTH TYPE="N">(See 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18310, Mar. 24, 1981, as amended by T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987; T.D. ATF-307, 55 FR 52743, Dec. 21, 1990; T.D. ATF-424, 64 FR 71932, Dec. 22, 1999; T.D. ATF-420, 64 FR 71941, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 40.312" NODE="27:2.0.1.1.1.10.35.10" TYPE="SECTION">
<HEAD>§ 40.312   Action by the appropriate TTB officer.</HEAD>
<P>Upon receipt of a schedule of tobacco products withdrawn from the market, the appropriate TTB officer may assign a TTB officer to verify the schedule and supervise disposition of the tobacco products (and destruction of the stamps, if any), or he may authorize the manufacturer to dispose of the products (and destroy the stamps, if any) without supervision by so stating on the original and one copy of the schedule returned to the manufacturer.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 39, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.313" NODE="27:2.0.1.1.1.10.35.11" TYPE="SECTION">
<HEAD>§ 40.313   Disposition of tobacco products and schedule.</HEAD>
<P>When so authorized, as evidenced by the appropriate TTB officer's statement on the schedule, the manufacturer shall dispose of the tobacco products (and destroy the stamps, if any) as specified in the schedule. After the manufacturer has disposed of the products (and destroyed the stamps, if any), he shall execute a certificate on both copies of the schedule returned to him by the appropriate TTB officer, to show the disposition and the date of disposition of the products (and stamps, if any). In connection with a claim for allowance the manufacturer then shall return the original of the schedule to the appropriate TTB officer who authorized such disposition, who will cause such schedule to be associated with the claim, TTB F 5620.8, filed under § 40.282. In connection with a claim for credit or refund the manufacturer shall attach the original of the schedule to his claim for credit, TTB F 5620.8, or claim for refund, TTB F 5620.8, filed under § 40.283. When an appropriate TTB officer is assigned to verify the schedule and supervise disposition of the tobacco products, such officer shall, upon completion of his assignment, execute a certificate on all copies of the schedule to show the disposition and the date of disposition of the products. In connection with a claim for allowance the officer shall return one copy of the schedule to be included in the manufacturers records, and in connection with a claim for credit or refund, the officer shall return the original and one copy of the schedule to the manufacturer, the original of which the manufacturer shall attach to the claim, TTB F 5620.8, filed under § 40.283.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 39, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="J" NODE="27:2.0.1.1.1.11" TYPE="SUBPART">
<HEAD>Subpart J—Suspension and Discontinuance of Operations by Manufacturers</HEAD>


<DIV8 N="§ 40.331" NODE="27:2.0.1.1.1.11.36.1" TYPE="SECTION">
<HEAD>§ 40.331   Discontinuance of operations.</HEAD>
<P>Every manufacturer of tobacco products who desires to discontinue operations under this part shall dispose of all tobacco products on hand, in accordance with this part, and make a concluding inventory and concluding report in accordance with the provisions of § 40.201 and § 40.202, respectively. The manufacturer shall surrender his permit, with such inventory and report, to the appropriate TTB officer as notice of such discontinuance. The appropriate TTB officer may then terminate the liability of the surety on the bond of the manufacturer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5721, 5722)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 37 FR 40, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28083, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 40.332" NODE="27:2.0.1.1.1.11.36.2" TYPE="SECTION">
<HEAD>§ 40.332   Suspension and revocation of permit.</HEAD>
<P>Where the appropriate TTB officer has reason to believe that a manufacturer of tobacco products has not in good faith complied with the provisions of 26 U.S.C. chapter 52, and regulations thereunder, or with any other provision of 26 U.S.C. with intent to defraud, or has violated any condition of his permit, or has failed to disclose any material information required or made any material false statement in the application for the permit, or has failed to maintain his premises in such manner as to protect the revenue, or is, by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with 26 U.S.C. chapter 52, or has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, the appropriate TTB officer shall issue an order, stating the facts charged, citing such person to show cause why his permit should not be suspended or revoked. Such citation shall be issued and opportunity for hearing afforded in accordance with part 71 of this chapter, which part is applicable to such proceedings. If, after hearing, the hearing examiner, or on appeal, the Administrator, finds that such person has not shown cause why his permit should not be suspended or revoked, such permit shall be suspended for such period as the appropriate TTB officer deems proper or shall be revoked.
</P>
<SECAUTH TYPE="N">(72 Stat 1421, as amended; 26 U.S.C. 5713)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14483, Mar. 31, 2009]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:2.0.1.1.1.12" TYPE="SUBPART">
<HEAD>Subpart K—Manufacture of Cigarette Papers and Tubes</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, unless otherwise noted.


</PSPACE></SOURCE>

<DIV7 N="36" NODE="27:2.0.1.1.1.12.36" TYPE="SUBJGRP">
<HEAD>Taxes</HEAD>


<DIV8 N="§ 40.351" NODE="27:2.0.1.1.1.12.36.1" TYPE="SECTION">
<HEAD>§ 40.351   Cigarette papers.</HEAD>
<P>Cigarette papers are taxed at the following rates under 26 U.S.C. 5701(c):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate for each 50 papers* for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cigarette papers up to 6
<fr>1/2</fr>″ long</TD><TD align="left" class="gpotbl_cell">$ 0.0122</TD><TD align="left" class="gpotbl_cell">$ 0.0315
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cigarette papers over 6
<fr>1/2</fr>″ long</TD><TD align="left" class="gpotbl_cell" colspan="2">Use rates above, but count each 2
<fr>3/4</fr> inches, or fraction thereof, of the length of each as one cigarette paper.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* Tax rate for less than 50 papers is the same. The tax is not prorated.</P></DIV></DIV>
<SECAUTH TYPE="N">(72 Stat. 1414; 26 U.S.C. 5701)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14483, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.352" NODE="27:2.0.1.1.1.12.36.2" TYPE="SECTION">
<HEAD>§ 40.352   Cigarette tubes.</HEAD>
<P>Cigarette tubes are taxed at the following rates under 26 U.S.C. 5701(d):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate for each 50 tubes* for removals during the years:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cigarette tubes up to 6
<fr>1/2</fr>” long</TD><TD align="left" class="gpotbl_cell">$ 0.0244</TD><TD align="left" class="gpotbl_cell">$ 0.0630
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cigarette tubes over 6
<fr>1/2</fr>” long</TD><TD align="left" class="gpotbl_cell" colspan="2">Use rates above, but count each 2
<fr>3/4</fr> inches, or fraction thereof, of the length of each as one cigarette tube.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* Tax rate for less than 50 tubes is the same. The tax is not prorated.</P></DIV></DIV>
<SECAUTH TYPE="N">(72 Stat. 1414; 26 U.S.C. 5701)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14483, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.353" NODE="27:2.0.1.1.1.12.36.3" TYPE="SECTION">
<HEAD>§ 40.353   Persons liable for tax.</HEAD>
<P>The manufacturer of cigarette papers and tubes shall be liable for the taxes imposed on such articles by 26 U.S.C. 5701. When a manufacturer of cigarette papers and tubes transfers such papers and tubes without payment of tax, pursuant to 26 U.S.C. 5704 to the bonded premises of another such manufacturer, a manufacturer of tobacco products, or an export warehouse proprietor, the transferee shall become liable for the tax upon receipt of such papers and tubes and the transferor shall thereupon be relieved of liability for the tax. When cigarette papers and tubes are released in bond from customs custody for transfer to the bonded premises of a manufacturer of such papers and tubes or a manufacturer of tobacco products, the transferee shall become liable for the tax on the papers and tubes upon release from customs custody. Any person who possesses cigarette papers and tubes in violation of 26 U.S.C. 5751(a) (1) or (2), shall be liable for a tax equal to the rate of tax applicable to such articles.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417, 1424; 26 U.S.C. 5703, 5751)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.354" NODE="27:2.0.1.1.1.12.36.4" TYPE="SECTION">
<HEAD>§ 40.354   Determination of tax and method of payment.</HEAD>
<P>Except for removals without payment of tax and transfers in bond, as authorized by law, no cigarette papers and tubes shall be removed until the taxes imposed by section 5701, I.R.C., have been determined. The payment of taxes on cigarette papers and tubes which are removed on determination of tax shall be made by return in accordance with the provisions of this subpart.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417; 26 U.S.C. 5703)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.355" NODE="27:2.0.1.1.1.12.36.5" TYPE="SECTION">
<HEAD>§ 40.355   Return of manufacturer.</HEAD>
<P>(a) <I>Requirement for filing.</I> A manufacturer of cigarette papers and tubes shall file, for each factory, a semimonthly tax return on TTB Form 5000.24. A return shall be filed for each semimonthly return period regardless of whether cigarette papers and tubes were removed subject to tax or whether tax is due for that particular return period.
</P>
<P>(b) <I>Waiver from filing.</I> The manufacturer need not file a return for each semimonthly return period if cigarette papers and tubes were not removed subject to tax during the period and the appropriate TTB officer has granted a waiver from filing in response to a written request from the manufacturer.
</P>
<P>(c) <I>Semimonthly return periods.</I> Except as otherwise provided in paragraph (g) of this section, semimonthly return periods run from the 1st day of the month through the 15th day of that month, and from the 16th day of the month through the last day of that month.
</P>
<P>(d) <I>Preparation and filing.</I> The return shall be executed and filed with TTB in accordance with the instructions on the form.
</P>
<P>(e) <I>Remittance of tax.</I> Except as provided in § 40.357, remittance of the tax, if any, shall accompany the return.
</P>
<P>(f) <I>Time for filing.</I> Except as otherwise provided in paragraph (g) of this section, for each semimonthly return period, the return shall be filed not later than the 14th day after the last day of the return period. If the due date falls on a Saturday, Sunday, or legal holiday, the return and remittance are due on the immediately preceding day that is not a Saturday, Sunday or legal holiday.
</P>
<P>(g) <I>Special rule for taxes due for the month of September.</I> (1) <I>Division of second semimonthly period.</I> (i) <I>General.</I> Except as otherwise provided in paragraph (g)(1)(ii) of this section, the second semimonthly period for the month of September is divided into two payment periods, from the 16th day through the 26th day, and from the 27th day through the 30th day. The manufacturer shall file a return on TTB F 5000.24, and make remittance, for the period September 16-26, no later than September 29. The manufacturer shall file a return on TTB F 5000.24, and make remittance, for the period September 27-30, no later than October 14.
</P>
<P>(ii) <I>Taxpayment not by electronic fund transfer.</I> In the case of taxes for which remittance by electronic fund transfer (EFT) is not required by § 40.357, the second semimonthly period of September is divided into two payment periods, from the 16th day through the 25th day, and from the 26th day through the 30th day. The manufacturer shall file a return on TTB F 5000.24, and make remittance, for the period September 16-25, no later than September 28. The manufacturer shall file a return on TTB F 5000.24, and make remittance, for the period September 26-30, no later than October 14.
</P>
<P>(2) <I>Amount of payment—Safe harbor rule.</I> (i) <I>General.</I> Taxpayers are considered to have met the requirements of paragraph (g)(1)(i) of this section if the amount paid no later than September 29 is not less than 11/15ths (73.3 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15th, and if any underpayment of tax is paid by October 14th.
</P>
<P>(ii) <I>Taxpayment not by EFT.</I> Taxpayers are considered to have met the requirements of paragraph (g)(1)(ii) of this section if the amount paid no later than September 28 is not less than 2/3rds (66.7 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(3) <I>Weekends and holidays.</I> If the required taxpayment due date for the period September 16-25 or September 16-26, as applicable, falls on a Saturday, or legal holiday, the return and remittance are due on the immediately preceding day. If the required due date falls on a Sunday, the return and remittance are due on the immediately following day.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under Control Number 1512-0467)
</APPRO>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. TTB-89, 76 FR 3514, Jan. 20, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 40.356" NODE="27:2.0.1.1.1.12.36.6" TYPE="SECTION">
<HEAD>§ 40.356   Adjustments in the return of manufacturer.</HEAD>
<P>Adjustments may be made in Schedules A and B of the manufacturer's semimonthly tax return, TTB Form 5000.24, as provided in this section. Schedule A of the return will be used where an unintentional error in a previous return resulted in an underpayment of tax. Schedule B of the return will be used where an unintentional error in a previous return resulted in an overpayment of tax, or where notice has been received from the appropriate TTB officer that a claim for allowance of tax has been approved. In the case of an overpayment, the manufacturer shall have the option of filing a claim on TTB TTB F 5620.8 for refund or taking credit in Schedule B of the return, both subject to the period of limitations prescribed in 26 U.S.C. 6511. Any adjustment made in a return must be fully explained in the appropriate schedule or in a statement attached to and made a part of the return in which such adjustment is made.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417, 68A Stat. 791; 26 U.S.C. 5703, 6402)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.357" NODE="27:2.0.1.1.1.12.36.7" TYPE="SECTION">
<HEAD>§ 40.357   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) <I>General.</I> (1) Each taxpayer who was liable, during a calendar year, for a gross amount equal to or exceeding five million dollars in taxes on tobacco products, cigarette papers, and cigarette tubes combining tax liabilities incurred under this part and part 41 of this chapter, shall use a commercial bank in making payment by electronic fund transfer (EFT) of taxes on tobacco products, cigarette papers, and cigarette tubes during the succeeding calendar year. Payment of taxes on tobacco products, cigarette papers, and cigarette tubes in any other form of remittance, as authorized in § 40.355, is not authorized for a taxpayer who is required, by this section, to make remittances by EFT. For purposes of this section, the dollar amount of tax liability is defined as the gross tax liability on all taxable withdrawals and importations (including tobacco products, cigarette papers, and cigarette tubes brought into the United States from Puerto Rico or the Virgin Islands) during the calendar year, without regard to any drawbacks, credits, or refunds, for all premises from which such activities are conducted by the taxpayer. Overpayments are not taken into account in summarizing the gross tax liability.
</P>
<P>(2) For the purposes of this section, a taxpayer includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR §§ 1.563-1 through 1.1563-4. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT.
</P>
<P>(3) A taxpayer who is required by this section to make remittances by EFT shall make a separate EFT remittance and file a separate return, TTB Form 5000.24, for each factory from which cigarette papers or cigarette tubes are withdrawn upon determination of tax.
</P>
<P>(b) <I>Requirements.</I> (1) On or before January 10 of each calendar year, except for a taxpayer already remitting the tax by EFT, each taxpayer who was liable for a gross amount equal to or exceeding five million dollars in taxes on tobacco products, cigarette papers, and cigarette tubes combining tax liabilities incurred under this part and part 41 of this chapter during the previous calendar year, shall notify, in writing, the appropriate TTB officer. The notice shall be an agreement to make remittances by EFT.
</P>
<P>(2) For each return filed in accordance with this part, the taxpayer shall direct the taxpayer's bank to make an electronic fund transfer in the amount of the taxpayment to the Department of the Treasury's General Account or the Federal Reserve Bank of New York as provided in paragraph (e) of this section. The request shall be made to the bank early enough for the transfer to be made to the Treasury Account by no later than the close of business on the last day for filing the return, prescribed in § 40.355. The request shall take into account any time limit established by the bank.
</P>
<P>(3) If a taxpayer was liable for less than five million dollars in taxes on tobacco products, cigarette papers, and cigarette tubes combining tax liabilities incurred under this part and part 41 of this chapter during the preceding calendar year, the taxpayer may choose either to continue remitting the tax as provided in this section or to remit the tax with the return as prescribed by § 40.355. Upon filing the first return on which the taxpayer chooses to discontinue remitting the tax by EFT and to begin remitting the tax with the tax return, the taxpayer shall notify the appropriate TTB officer by attaching a written notification to TTB Form 5000.24, stating that no taxes are due by EFT, because the tax liability during the preceding calendar year was less than five million dollars, and that the remittance shall be filed with the tax return.
</P>
<P>(c) <I>Remittance.</I> (1) Each taxpayer shall show on the return, TTB Form 5000.24, information about remitting the tax for that return period by EFT and shall file the return with TTB, in accordance with the instructions of TTB Form 5000.24.
</P>
<P>(2) Remittances shall be considered as made when the taxpayment by EFT is received by the Treasury Account. For purposes of this section, a taxpayment by EFT shall be considered as received by the Treasury Account when it is paid to a Federal Reserve Bank.
</P>
<P>(3) When the taxpayer directs the bank to effect an EFT message as required by paragraph (b)(2) of this section, any transfer data record furnished to the taxpayer, through normal banking procedures, will serve as the record of payment, and shall be retained as part of required records.
</P>
<P>(d) <I>Failure to make a taxpayment by EFT.</I> The taxpayer is subject to a penalty imposed by 26 U.S.C. 5761, 6651, or 6656, as applicable, for failure to make a taxpayment by EFT on or before the close of business on the prescribed last day for filing.
</P>
<P>(e) <I>Procedure.</I> Upon the notification required under paragraph (b)(1) of this section, the appropriate TTB officer will issue to the taxpayer a TTB procedure entitled Payment of Tax by Electronic Fund Transfer. This publication outlines the procedure a taxpayer is to follow when preparing returns and EFT remittances in accordance with this part. The U.S. Customs and Border Protection (CBP) will provide the taxpayer with instructions for preparing EFT remittances for payments to be made to the CBP.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0457)
</APPRO>
<SECAUTH TYPE="N">(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); sec. 202, Pub. L. 85-859, 72 Stat. 1417, as amended (26 U.S.C. 5703))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. TTB-16, 69 FR 52423, Aug. 26, 2004; T.D. TTB-91, 76 FR 5480, Feb. 1, 2011; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.358" NODE="27:2.0.1.1.1.12.36.8" TYPE="SECTION">
<HEAD>§ 40.358   Assessment.</HEAD>
<P>Whenever any person required by law to pay tax on cigarette papers and tubes fails to pay such tax, the tax shall be ascertained and assessed against such person, subject to the limitations prescribed in 26 U.S.C. 6501. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. Except in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error, no such assessment shall be made until and after notice has been afforded such person to show cause against assessment. The person will be allowed 45 days from the date of such notice to show cause, in writing, against such assessment.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417; 26 U.S.C. 5703)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.359" NODE="27:2.0.1.1.1.12.36.9" TYPE="SECTION">
<HEAD>§ 40.359   Employer identification number.</HEAD>
<P>The employer identification number (EIN) (defined at 26 CFR 301.7701-12) of a manufacturer of cigarette papers and/or tubes who has been assigned such a number shall be shown on each semimonthly tax return, TTB Form 5000.24, and special tax return (including amended returns), TTB Form 5630.5, filed under this subpart. Failure of the taxpayer to include the EIN on TTB Form 5000.24 may result in assertion and collection of the penalty specified in § 70.113 of this chapter. Failure of the taxpayer to include the EIN on TTB Form 5630.5 may result in the imposition of the penalty specified in 27 CFR 70.113 of this chapter.
</P>
<SECAUTH TYPE="N">(75 Stat. 828; 26 U.S.C. 6109, 6676)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.360" NODE="27:2.0.1.1.1.12.36.10" TYPE="SECTION">
<HEAD>§ 40.360   Application for employer identification number.</HEAD>
<P>Each manufacturer of cigarette papers and tubes who has neither secured an EIN nor made application therefor shall file an application on IRS Form SS-4. IRS Form SS-4 may be obtained from any service center director or from any district director. Such application shall be filed on or before the seventh day after the date on which any tax return under this subpart is filed. Each manufacturer shall make application for and shall be assigned only one EIN for all internal revenue purposes.
</P>
<SECAUTH TYPE="N">(75 Stat. 828; 26 U.S.C. 6109)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.361" NODE="27:2.0.1.1.1.12.36.11" TYPE="SECTION">
<HEAD>§ 40.361   Execution and filing of Form SS-4.</HEAD>
<P>The application on IRS form SS-4, together with any supplementary statement, shall be prepared in accordance with the applicable form, instructions, and regulations, and the data called for shall be set forth fully and clearly. The application shall be filed with the service center director serving the internal revenue district where the applicant is required to file returns under this subpart, except that hand-carried applications may be filed with the district director of any such district as provided for in 26 CFR § 301.6091-1. The application shall be signed by:
</P>
<P>(a) The individual if the person is an individual;
</P>
<P>(b) The president, vice president, or other principal officer if the person is a corporation;
</P>
<P>(c) A responsible and duly authorized member or officer having knowledge of its affairs if the person is a partnership or other unincorporated organization; or
</P>
<P>(d) The fiduciary if the person is a trust or estate.
</P>
<SECAUTH TYPE="N">(75 Stat. 828; 26 U.S.C. 6109)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="37" NODE="27:2.0.1.1.1.12.37" TYPE="SUBJGRP">
<HEAD>Special (Occupational) Taxes</HEAD>


<DIV8 N="§ 40.371" NODE="27:2.0.1.1.1.12.37.12" TYPE="SECTION">
<HEAD>§ 40.371   Liability for special tax.</HEAD>
<P>(a) <I>Manufacturer of cigarette papers and tubes.</I> Every manufacturer of cigarette papers and tubes shall pay a special (occupational) tax at a rate specified by § 40.372 of this part. The tax shall be paid on or before July 1. On commencing business, the tax shall be computed from the first day of the month in which liability is incurred, through the following June 30. Thereafter, the tax shall be computed for the entire year (July 1 through June 30).
</P>
<P>(b) <I>Each place of business taxable.</I> A manufacturer of cigarette papers and tubes incurs special tax liability at each place of business in which an occupation subject to special tax is conducted. A place of business means the entire office, plant or area of the business in any one location under the same proprietorship. Passageways, streets, highways, rail crossings, waterways, or partitions dividing the premises are not sufficient separation to require additional special tax, if the divisions of the premises are otherwise contiguous.
</P>
<P>(c) <I>Payment of tax.</I> Special tax must be paid by return. The prescribed return is TTB Form 5630.5t, Special Tax Registration and Return—Tobacco. Special tax returns, with payment of tax, must be filed with TTB in accordance with the instructions on the form and the requirements of subpart D of part 46 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5731, 5733)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. TTB-79, 74 FR 37419, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.372" NODE="27:2.0.1.1.1.12.37.13" TYPE="SECTION">
<HEAD>§ 40.372   Rate of special tax.</HEAD>
<P>(a) <I>General.</I> Title 26 U.S.C. 5731(a)(2) imposes a special tax of $1,000 per year on every manufacturer of cigarette papers and tubes.
</P>
<P>(b) <I>Reduced rate for small proprietors.</I> Title 26 U.S.C. 5731(b) provides for a reduced rate of $500 per year with respect to any manufacturer of cigarette papers and tubes whose gross receipts (for the most recent taxable year ending before the first day of the taxable period to which the special tax imposed by § 40.371 relates) are less than $500,000. The “taxable year” to be used for determining gross receipts is the taxpayer's income tax year. All gross receipts of the taxpayer shall be included, not just the gross receipts of the business subject to special tax. Proprietors of new businesses that have not yet begun a taxable year, as well as proprietors of existing businesses that have not yet ended a taxable year, who commence a new activity subject to special tax, qualify for the reduced special (occupational) tax rate, unless the business is a member of a “controlled group”; in that case the rules of paragraph (c) of this section shall apply.
</P>
<P>(c) <I>Controlled group.</I> All persons treated as one taxpayer under 26 U.S.C. 5061(e)(3) shall be treated as one taxpayer for the purpose of determining gross receipts under paragraph (b) of this section. “Controlled group” means a controlled group of corporations, as defined in 26 U.S.C. 1563 and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of this section.
</P>
<P>(d) <I>Short taxable year.</I> Gross receipts for any taxable year of less than 12 months shall be annualized by multiplying the gross receipts for the short period by 12 and dividing the result by the number of months in the short period as required by 26 U.S.C. 448(c)(3).
</P>
<P>(e) <I>Returns and allowances.</I> Gross receipts for any taxable year shall be reduced by returns and allowances made during such year under 26 U.S.C. 448(c)(3).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 448, 5061, 5731)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.373" NODE="27:2.0.1.1.1.12.37.14" TYPE="SECTION">
<HEAD>§ 40.373   Cross reference.</HEAD>
<P>For additional rules pertaining to liability for special tax, filing special tax returns, issuance and examination of special tax stamps, and notification of changes to special tax stamps, see subpart D of part 46 of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37419, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§§ 40.374-40.375" NODE="27:2.0.1.1.1.12.37.15" TYPE="SECTION">
<HEAD>§§ 40.374-40.375   [Reserved]</HEAD>
</DIV8>

</DIV7>


<DIV7 N="38" NODE="27:2.0.1.1.1.12.38" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 40.382" NODE="27:2.0.1.1.1.12.38.16" TYPE="SECTION">
<HEAD>§ 40.382   Authority of TTB officers to enter premises.</HEAD>
<P>The appropriate TTB officer may enter in the daytime any premises where cigarette papers and tubes are produced or kept, so far as it may be necessary for the purpose of examining such articles. When such premises are open at night, the appropriate TTB officer may enter them, while so open, in the performance of his or her official duties. The owner of such premises, or person having the superintendence of the same, who refuses to admit the appropriate TTB officer or permit the appropriate TTB officer to examine such cigarette papers and tubes shall be liable to the penalties prescribed by law for the offense.
</P>
<SECAUTH TYPE="N">(68A Stat. 872; 903 26 U.S.C. 7342, 7606)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.383" NODE="27:2.0.1.1.1.12.38.17" TYPE="SECTION">
<HEAD>§ 40.383   Interference with administration.</HEAD>
<P>Whoever, corruptly or by force or threats of force, endeavors to hinder or obstruct the administration of this subpart, or endeavors to intimidate or impede any TTB officer acting in an official capacity, or forcibly rescues or attempts to rescue or causes to be rescued any property, after it has been duly seized for forfeiture to the United States in connection with a violation or intended violation of this subpart, shall be liable to the penalties prescribed by law.
</P>
<SECAUTH TYPE="N">(68A Stat. 855; 26 U.S.C. 7212)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.384" NODE="27:2.0.1.1.1.12.38.18" TYPE="SECTION">
<HEAD>§ 40.384   Disposal of forfeited, condemned, and abandoned cigarette papers and tubes.</HEAD>
<P>Forfeited, condemned, or abandoned cigarette papers or tubes in the custody of a Federal, State, or local officer upon which the Federal tax has not been paid shall not be sold or caused to be sold for consumption in the United States if, in the opinion of the officer, the sale of such papers and tubes will not bring a price equal to the tax due and payable, and the expenses incident to the sale. Where the cigarette papers or tubes are not sold the officer may deliver them to a Federal or State institution (if they are fit for consumption) or cause their destruction by burning completely or by rendering them unfit for consumption. Where such papers or tubes are sold, release by the officer having custody shall be made only after such papers and tubes are properly packaged and taxpaid. A receipt from the appropriate TTB officer evidencing payment of tax on such papers or tubes shall be presented to the officer having custody of the articles, which tax shall be considered part of the sales price. Where cigarette papers or tubes which have been packaged under the provisions of part 45 of this chapter are to be released after payment of tax, the purchaser shall appropriately mark each package “Federal Tax Paid (date)” before the officer having custody of the papers or tubes releases them. However, the articles may be released without such marking of the packages if the purchaser is a qualified manufacturer of cigarette papers and tubes and does not intend to place such papers or tubes on the domestic market for taxable articles but will otherwise dispose of them. A written statement of notification of disposal by destruction or return to bond through claim for refund, shall be filed, in original only, with the officer having custody of the articles. In the case of cigarette papers and tubes forfeited under the internal revenue laws, the sale shall be subject to the provisions of part 72 of this chapter.
</P>
<SECAUTH TYPE="N">(68A Stat. 870, as amended, 72 Stat. 1425, as amended; 26 U.S.C. 7325, 5753)
</SECAUTH>
<CITA TYPE="N">[26 FR 8174, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated at 54 FR 48839, Nov. 27, 1989, and further redesignated by T.D. ATF-460, 66 FR 39093, July 27, 2001, as amended by T.D. ATF-469, 66 FR 56758, Nov. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 40.385" NODE="27:2.0.1.1.1.12.38.19" TYPE="SECTION">
<HEAD>§ 40.385   Alternate methods or procedures.</HEAD>
<P>A manufacturer of cigarette papers and tubes, on specific approval by the appropriate TTB officer as provided in this section, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this subpart. The appropriate TTB officer may approve an alternate method or procedure, subject to stated conditions, when the appropriate TTB officer finds that—
</P>
<P>(a) Good cause has been shown for the use of the alternate method or procedure,
</P>
<P>(b) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue, and
</P>
<P>(c) The alternate method or procedure will not be contrary to any provision of law, and will not result in an increase in cost to the Government or hinder the effective administration of this subpart.
</P>
<P>No alternate method or procedure relating to the giving of any bond or to the assessment, payment, or collection of tax, shall be authorized under this section. A manufacturer who desires to employ an alternate method or procedure shall submit a written application, in triplicate, to the appropriate TTB officer. The application shall specifically describe the proposed alternate method or procedure, and shall set forth the reasons therefor. Alternate methods or procedures shall not be employed until the application has been approved by the appropriate TTB officer. The manufacturer shall, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization for any alternate method or procedure may be withdrawn whenever, in the judgment of the appropriate TTB officer, the revenue is jeopardized or the effective administration of this part is hindered. Any authorization of the appropriate TTB officer under this section shall be retained as part of the manufacturer's record in accordance with this subpart.


</P>
</DIV8>


<DIV8 N="§ 40.386" NODE="27:2.0.1.1.1.12.38.20" TYPE="SECTION">
<HEAD>§ 40.386   Emergency variations from requirements.</HEAD>
<P>The appropriate TTB officer may approve methods of operation other than as specified in this subpart, where it is determined that an emergency exists and the proposed variations from the specified requirements are necessary, and the proposed variations—
</P>
<P>(a) Will afford the security and protection to the revenue intended by the prescribed specifications;
</P>
<P>(b) Will not hinder the effective administration of this subpart; and
</P>
<P>(c) Will not be contrary to any provision of law. Variations from requirements granted under this section are conditioned on compliance with the procedures, conditions, and limitations set forth in the approval of the application. Failure to comply in good faith with such procedures, conditions and limitations shall automatically terminate the authority for such variations and the manufacturer thereupon shall fully comply with the prescribed requirements of regulations from which the variations were authorized. Authority for any variation may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this subpart is hindered by the continuation of such variation. Where a manufacturer desires to employ such variation, the manufacturer shall submit a written application to do so (in triplicate) to the appropriate TTB officer. The application shall describe the proposed variations and set forth the reasons therefor. Variations shall not be employed until the application has been approved. In accordance with this subpart, any authorization of the appropriate TTB officer under this section shall be retained as part of the manufacturer's records.


</P>
</DIV8>


<DIV8 N="§ 40.387" NODE="27:2.0.1.1.1.12.38.21" TYPE="SECTION">
<HEAD>§ 40.387   Penalties and forfeitures.</HEAD>
<P>Anyone who fails to comply with the provisions of this subpart becomes liable to the civil and criminal penalties, and forfeitures, provided by law.
</P>
<SECAUTH TYPE="N">(72 Stat. 1425, 1426; 26 U.S.C. 5761, 5762, 5763)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="39" NODE="27:2.0.1.1.1.12.39" TYPE="SUBJGRP">
<HEAD>Qualification Requirements for Manufacturers</HEAD>

<HD2>Original Qualifications


</HD2>

<DIV8 N="§ 40.391" NODE="27:2.0.1.1.1.12.39.22" TYPE="SECTION">
<HEAD>§ 40.391   Persons required to qualify.</HEAD>
<P>Every person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for his own personal use or consumption, must first qualify as a manufacturer of cigarette papers and tubes in accordance with the provisions of this subpart.
</P>
<CITA TYPE="N">[ATF-467, 66 FR 49532, Sept. 28, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 40.392" NODE="27:2.0.1.1.1.12.39.23" TYPE="SECTION">
<HEAD>§ 40.392   Bond.</HEAD>
<P>Every person, before commencing business as a manufacturer of cigarette papers and tubes, shall file a bond on TTB F 5200.29 (or TTB F 5200.25 or 5200.26). Such bond shall be filed in accordance with the applicable provisions of §§ 40.401 through 40.410 and conditioned upon compliance with the provisions of 26 U.S.C. Chapter 52, and regulations thereunder, including, but not limited to, the timely payment of taxes imposed by such chapter and penalties and interest in connection therewith for which the manufacturer may become liable to the United States.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. TTB-91, 76 FR 5480, Feb. 1, 2011; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.393" NODE="27:2.0.1.1.1.12.39.24" TYPE="SECTION">
<HEAD>§ 40.393   Power of attorney.</HEAD>
<P>If the bond or any other document required under this part is signed by an attorney in fact for an individual, partnership, association, company, or corporation, by one of the partners for a partnership, or by one of the members of an association, a power of attorney on TTB F 5000.8 shall be furnished to the appropriate TTB officer. If such bond or other document is signed on behalf of a corporation by an officer thereof, it must be supported by duly authenticated extracts of the stockholders' meeting, by-laws, or directors' meeting authorizing such officer to execute such document for the corporation. TTB F 5000.8 or support of authority does not have to be filed again with a appropriate TTB officer where such form or support has previously been submitted to that appropriate TTB officer and is still in effect.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.394" NODE="27:2.0.1.1.1.12.39.25" TYPE="SECTION">
<HEAD>§ 40.394   Notice of approval of bond.</HEAD>
<P>If the bond required under this subpart is approved by the appropriate TTB officer, a number will be assigned to the factory of the manufacturer of cigarette papers and tubes for internal revenue purposes. The appropriate TTB officer will immediately notify the manufacturer, in writing, of the bond approval, in order that the manufacturer may commence operations.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)
</SECAUTH>
<HD2>Changes after Original Qualifications


</HD2>
</DIV8>


<DIV8 N="§ 40.395" NODE="27:2.0.1.1.1.12.39.26" TYPE="SECTION">
<HEAD>§ 40.395   Change in name.</HEAD>
<P>Where there is a change in the individual, trade, or corporate name of a manufacturer of cigarette papers and tubes, the manufacturer shall, within 30 days of the change, furnish the appropriate TTB officer a written notice of such change.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.396" NODE="27:2.0.1.1.1.12.39.27" TYPE="SECTION">
<HEAD>§ 40.396   Change in proprietorship.</HEAD>
<P>Where there is to be any change in proprietorship (including a change in the identity of the members of a partnership or association, but excluding any change in stock ownership in a corporation) of the business of a manufacturer of cigarette papers and tubes, the proposed successor shall, before commencing operations, qualify as a manufacturer of cigarette papers and tubes, in accordance with this part. If such manufacturer promptly files the required documentation with the appropriate TTB officer, an administrator, executor, receiver, trustee, assignee, or other fiduciary successor may liquidate the business without qualifying as a manufacturer. The manufacturer must promptly file with the appropriate TTB officer a statement of the intent to liquidate and furnish a certified copy of the order of the court, or other pertinent documents. These documents must show the appointment and qualification of any administrator, executor, receiver, trustee, assignee, or other fiduciary, together with an extension of coverage of the predecessor's bond executed by the administrator, executor, receiver, trustee, assignee, or other fiduciary and the surety, in accordance with the provisions of § 40.407. The predecessor shall make a closing inventory and closing report in accordance with the provisions of §§ 40.434 and 40.426, respectively, and the successor shall make an opening inventory and opening report, in accordance with the provision of §§ 40.432 and 40.423, respectively.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, 1422; 26 U.S.C. 5711, 5721, and 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.397" NODE="27:2.0.1.1.1.12.39.28" TYPE="SECTION">
<HEAD>§ 40.397   Change in location.</HEAD>
<P>Whenever a manufacturer of cigarette papers and tubes contemplates a change in location of a factory within the same region, the manufacturer shall, before commencing operations at the new location, file an extension of coverage of bond in accordance with the provisions of § 40.407. Whenever a manufacturer of cigarette papers and tubes contemplates changing the location of a factory to another region, the manufacturer shall, before commencing operations at the new location, qualify as a manufacturer in the new region, in accordance with the applicable provisions of this subpart, and make a closing inventory and closing report, in accordance with the provisions of §§ 40.434 and 40.426, respectively.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, 1422; 26 U.S.C. 5711, 5721, and 5722)
</SECAUTH>
<HD2>Bonds and Extensions of Coverage of Bonds


</HD2>
</DIV8>


<DIV8 N="§ 40.401" NODE="27:2.0.1.1.1.12.39.29" TYPE="SECTION">
<HEAD>§ 40.401   Corporate surety.</HEAD>
<P>(a) Surety bonds required by this subpart may be given only with corporate sureties holding certificates of authority from, and subject to any limitations prescribed by the Secretary of the Treasury as set forth in the current revision of Treasury Department Circular 570 (Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies). The surety shall have no interest whatever in the business covered by the bond.
</P>
<P>(b) Each bond and each extension of coverage of bond shall at the time of filing be accompanied by a power of attorney authorizing the agent or officer who executed the bond to so act on behalf of the surety. The appropriate TTB officer who is authorized to approve the bond may, whenever deemed necessary, require additional evidence of the authority of the agent or officer to execute the bond or extension of coverage of bond. The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed document, it shall be accompanied by a certificate of its validity.
</P>
<P>(c) Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).
</P>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.402" NODE="27:2.0.1.1.1.12.39.30" TYPE="SECTION">
<HEAD>§ 40.402   Two or more corporate sureties.</HEAD>
<P>A bond executed by two or more corporate sureties shall be the joint and several liability of the principal and the sureties. However, each corporate surety may limit its liability in terms upon the face of the bond in a definite, specific amount, which amount shall not exceed the limitations prescribed for such corporate surety by the Secretary, as set forth in the current revision of Treasury Department Circular 570 (Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies); see § 40.401(c). When the sureties so limit their liability, the aggregate of such limited liabilities must equal the required amount of the bond.
</P>
<SECAUTH TYPE="N">(July 30, 1947, ch. 390, 61 Stat. 648, as amended (31 U.S.C. 9304, 9306); sec. 202. Pub. L. 85-859, 72 Stat. 1421, as amended (26 U.S.C. 5711))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.403" NODE="27:2.0.1.1.1.12.39.31" TYPE="SECTION">
<HEAD>§ 40.403   Deposit of securities in lieu of corporate surety.</HEAD>
<P>In lieu of corporate surety, the manufacturer of cigarette papers and tubes may pledge and deposit, as security for the bond, securities which are transferable and are guaranteed as to both interest and principal by the United States, in accordance with the provisions of 31 CFR Part 225—Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties.
</P>
<SECAUTH TYPE="N">(61 Stat. 650, 72 Stat. 1421, 31 U.S.C. 9301, 9303, 26 U.S.C. 5711, 5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.404" NODE="27:2.0.1.1.1.12.39.32" TYPE="SECTION">
<HEAD>§ 40.404   Amount of bond.</HEAD>
<P>The amount of the bond of a manufacturer of cigarette papers and tubes shall be not less than the maximum amount of the tax liability on the cigarette papers and tubes manufactured in the factory, received without payment of tax from other factories, and released without payment of tax from customs custody as provided in § 40.452, during any month. In the case of a manufacturer commencing business, the production, receipts from other factories, and releases from customs custody, without payment of tax, shall be estimated for the purpose of this section. The amount of any such bond (or the total amount where strengthening bonds are filed) shall not exceed $20,000, nor be less than $1,000.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.405" NODE="27:2.0.1.1.1.12.39.33" TYPE="SECTION">
<HEAD>§ 40.405   Strengthening bond.</HEAD>
<P>Where the appropriate TTB officer determines that the amount of the bond, under which a manufacturer of cigarette papers and tubes is currently carrying on such business, no longer adequately protects the revenue, the appropriate TTB officer may require the manufacturer to file a strengthening bond in an appropriate amount with the same surety as that on the bond already in effect, in lieu of a superseding bond to cover the full liability on the basis of § 40.404. The appropriate TTB officer shall refuse to approve any strengthening bond where any notation is made thereon which is intended or which may be construed as a release of any former bond, or as limiting the amount of either bond to less than its full amount.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.406" NODE="27:2.0.1.1.1.12.39.34" TYPE="SECTION">
<HEAD>§ 40.406   Superseding bond.</HEAD>
<P>A manufacturer of cigarette papers and tubes shall file a new bond to supersede the current bond immediately when:
</P>
<P>(a) The corporate surety on the current bond becomes insolvent,
</P>
<P>(b) The appropriate TTB officer approves a request from the surety of the current bond to terminate liability under the bond,
</P>
<P>(c) Payment of any liability under a bond is made by the surety thereon, or
</P>
<P>(d) The appropriate TTB officer considers such a superseding bond necessary for the protection of the revenue.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.407" NODE="27:2.0.1.1.1.12.39.35" TYPE="SECTION">
<HEAD>§ 40.407   Extension of coverage of bond.</HEAD>
<P>An extension of the coverage of bond filed under this subpart shall be manifested on TTB F 5000.18 by the manufacturer of cigarette papers and tubes and by the surety on the bond with the same formality and proof of authority as required for the execution of the bond.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.408" NODE="27:2.0.1.1.1.12.39.36" TYPE="SECTION">
<HEAD>§ 40.408   Approval of bond and extension of coverage of bond.</HEAD>
<P>No person shall commence operations under any bond, nor extend operations, until such person receives from the appropriate TTB officer notice of approval of the bond or an appropriate extension of coverage of the bond required under this subpart. Upon receipt of an approved bond or extension of coverage of bond from the appropriate TTB officer, such bond or extension of coverage of bond shall be retained by the manufacturer of cigarette papers and tubes in factory and shall be made available for inspection by any TTB officer upon request.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.409" NODE="27:2.0.1.1.1.12.39.37" TYPE="SECTION">
<HEAD>§ 40.409   Termination of liability of surety under bond.</HEAD>
<P>The liability of a surety on any bond required by this subpart shall be terminated only as to operations on and after the effective date of a superseding bond, or the date of approval of the discontinuance of operations by the manufacturer of cigarette papers and tubes, or otherwise in accordance with the termination provisions of the bond. The surety shall remain bound in respect of any liability for unpaid taxes, penalties and interest, not in excess of the amount of the bond, incurred by the manufacturer while the bond is in force.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.410" NODE="27:2.0.1.1.1.12.39.38" TYPE="SECTION">
<HEAD>§ 40.410   Release of pledged securities.</HEAD>
<P>Securities of the United States pledged and deposited as provided in § 40.403 shall be released only in accordance with the provisions of 31 CFR part 225. Such securities will not be released by the appropriate TTB officer until liability under the bond for which they were pledged has been terminated. When the appropriate TTB officer is satisfied that they may be released, the appropriate TTB officer shall fix the date or dates on which a part or all of such securities may be released. At any time prior to the release of such securities, the appropriate TTB officer may extend the date of release for such additional length of time as is deemed necessary.
</P>
<SECAUTH TYPE="N">(61 Stat. 650, 72 Stat. 1421; 31 U.S.C. 9301, 9303; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="40" NODE="27:2.0.1.1.1.12.40" TYPE="SUBJGRP">
<HEAD>Operations By Manufacturers</HEAD>

<HD2>Records


</HD2>

<DIV8 N="§ 40.421" NODE="27:2.0.1.1.1.12.40.39" TYPE="SECTION">
<HEAD>§ 40.421   General.</HEAD>
<P>(a) Every manufacturer of cigarette papers and tubes must keep records of daily operations and transactions. Records maintained must reflect the date and number of cigarette papers and the date and number of cigarette tubes:
</P>
<P>(1) Manufactured;
</P>
<P>(2) Received, without payment of tax from another factory, an export warehouse, customs custody, or by withdrawal from the market;
</P>
<P>(3) Removed, subject to tax;
</P>
<P>(4) Removed, without payment of tax, for export purposes, use of the United States or transfer in bond pursuant to § 40.451; or
</P>
<P>(5) Lost or destroyed.
</P>
<P>(b) The entries for each day in the records maintained or kept under this subpart must be made by the close of the business day following that on which the operations or transactions occur. No particular form of records is prescribed, but the information required must be readily ascertainable from the records kept.
</P>
<P>(c) Records maintained under this section prior to January 1, 2000, must reflect the date and number of books or sets of cigarette papers of each different numerical content and the date and number of cigarette tubes. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5741.) 
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-240, 64 FR 71941, Dec. 22, 1999]
</CITA>
<HD2>Reports


</HD2>
</DIV8>


<DIV8 N="§ 40.422" NODE="27:2.0.1.1.1.12.40.40" TYPE="SECTION">
<HEAD>§ 40.422   General.</HEAD>
<P>Every manufacturer of cigarette papers and tubes must prepare a report on TTB Form F 5210.5 in accordance with instructions for the form. The report must be prepared at the times specified in this subpart and must be prepared whether or not any operations or transactions occurred during the period covered by the report. The manufacturer must retain a copy of each report in accordance with the provisions of this subpart.
</P>
<P>(a) <I>Reports for periods on or after January 1, 2000.</I> Reports submitted must reflect the total number of cigarette papers and cigarette tubes manufactured, received and lost or destroyed.
</P>
<P>(b) <I>Reports for periods prior to January 1, 2000.</I> Reports submitted must reflect the number of books or sets of cigarette papers of each different numerical content and the number of cigarette tubes manufactured, received, removed and lost or destroyed. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5722) 
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-240, 64 FR 71942, Dec. 22, 1999, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.423" NODE="27:2.0.1.1.1.12.40.41" TYPE="SECTION">
<HEAD>§ 40.423   Opening.</HEAD>
<P>An opening report, covering the period from the date of the opening inventory to the end of the month, shall be made on or before the 10th day following the end of the month in which the business was commenced.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.424" NODE="27:2.0.1.1.1.12.40.42" TYPE="SECTION">
<HEAD>§ 40.424   Monthly.</HEAD>
<P>A report for each calendar month shall be made on or before the 20th day of the next succeeding month.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.425" NODE="27:2.0.1.1.1.12.40.43" TYPE="SECTION">
<HEAD>§ 40.425   Special.</HEAD>
<P>A special report, covering the unreported period to the day preceding the date of any special inventory required by an appropriate TTB officer, shall be made with such inventory. Another report, covering the period from the date of the special inventory to the end of the month, shall be made on or before the 14th day following the end of the month in which the inventory was made.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.426" NODE="27:2.0.1.1.1.12.40.44" TYPE="SECTION">
<HEAD>§ 40.426   Closing.</HEAD>
<P>A closing report, covering the period from the first of the month to the date of the closing inventory, shall be made with such inventory.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)
</SECAUTH>
<HD2>Inventories


</HD2>
</DIV8>


<DIV8 N="§ 40.431" NODE="27:2.0.1.1.1.12.40.45" TYPE="SECTION">
<HEAD>§ 40.431   General.</HEAD>
<P>Every manufacturer of cigarette papers and tubes must provide a true and accurate inventory on TTB Form 5230.2 in accordance with instructions for the form. Such inventory is subject to verification by the appropriate TTB officer. The manufacturer must retain a copy of each inventory completed on TTB Form 5230.2 in accordance with this subpart.
</P>
<P>(a) <I>Reports of inventory for periods on or after January 1, 2000.</I> Reports of inventory submitted must reflect the total number of cigarette papers and cigarette tubes held at the times specified in the subpart.
</P>
<P>(b) <I>Reports of inventory for periods prior to January 1, 2000.</I> Reports of inventory submitted must reflect the number of books or sets of cigarette papers of each different numerical content and the number of cigarette tubes held at the times specified in this subpart. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5721)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-240, 64 FR 71942, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 40.432" NODE="27:2.0.1.1.1.12.40.46" TYPE="SECTION">
<HEAD>§ 40.432   Opening.</HEAD>
<P>An opening inventory shall be made by the manufacturer of cigarette papers and tubes at the time of first commencing business.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5721)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.433" NODE="27:2.0.1.1.1.12.40.47" TYPE="SECTION">
<HEAD>§ 40.433   Special.</HEAD>
<P>A special inventory shall be made by the manufacturer of cigarette papers and tubes when required by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5721)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.434" NODE="27:2.0.1.1.1.12.40.48" TYPE="SECTION">
<HEAD>§ 40.434   Closing.</HEAD>
<P>A closing inventory shall be made by the manufacturer of cigarette papers and tubes when a change in proprietorship occurs, or when the manufacturer changes location of the factory to another region, or concludes business. Where a change in proprietorship occurs, the closing inventory shall be made as of the day preceding the date of the opening inventory of the successor.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5721)
</SECAUTH>
<HD2>Document Retention


</HD2>
</DIV8>


<DIV8 N="§ 40.435" NODE="27:2.0.1.1.1.12.40.49" TYPE="SECTION">
<HEAD>§ 40.435   General.</HEAD>
<P>All records and reports required to be kept or maintained under this subpart, including copies of authorizations, inventories, reports, returns, and claims filed with verified supporting schedules, shall be retained by the manufacturer for three years following the close of the calendar year in which filed or made, or in the case of an authorization, for three years following the close of the calendar year in which the operation under such authorization is concluded. Such records shall be made available for inspection by the appropriate TTB officer upon request.
</P>
<SECAUTH TYPE="N">(72 Stat. 1423; 26 U.S.C. 5741)
</SECAUTH>
<HD2>Packages


</HD2>
</DIV8>


<DIV8 N="§ 40.441" NODE="27:2.0.1.1.1.12.40.50" TYPE="SECTION">
<HEAD>§ 40.441   General.</HEAD>
<P>All cigarette papers and tubes shall, before removal subject to tax, be put up by the manufacturer in packages which shall be of such construction as will securely contain the papers or tubes therein. No package of cigarette papers or tubes shall have contained therein, attached thereto, or stamped, marked, written, or printed thereon:
</P>
<P>(a) Any certificate, coupon, or other device purporting to be or to represent a ticket, chance, share, or an interest in, or dependent on, the event of a lottery,
</P>
<P>(b) Any indecent or immoral picture, print, or representation, or
</P>
<P>(c) Any statement or indication that United States tax has been paid.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<HD2>Miscellaneous Operations


</HD2>
</DIV8>


<DIV8 N="§ 40.451" NODE="27:2.0.1.1.1.12.40.51" TYPE="SECTION">
<HEAD>§ 40.451   Transfer in bond.</HEAD>
<P>A manufacturer of cigarette papers and tubes may transfer such papers and tubes, under bond, without payment of tax, to the bonded premises of any manufacturer of cigarette papers and tubes, or to the bonded premises of a manufacturer of tobacco products solely for use in the manufacture of cigarettes. The transfer of cigarette papers and tubes, without payment of tax, to the bonded premises of an export warehouse proprietor shall be in accordance with the provisions of part 44 of this chapter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704) 


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.452" NODE="27:2.0.1.1.1.12.40.52" TYPE="SECTION">
<HEAD>§ 40.452   Release from customs custody.</HEAD>
<P>Cigarette papers and tubes which were made in the United States, exported, and subsequently returned to the United States, may be removed from customs custody for transfer to the premises of a manufacturer without payment of the internal revenue tax, upon compliance with part 41 of this chapter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. TTB-16, 69 FR 52423, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 40.453" NODE="27:2.0.1.1.1.12.40.53" TYPE="SECTION">
<HEAD>§ 40.453   Use of the United States.</HEAD>
<P>A manufacturer of cigarette papers and tubes may remove cigarette papers and tubes covered under bond, without payment of tax, for use of the United States. Such removal shall be in accordance with the provisions of part 45 of this chapter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[26 FR 8174, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated at 54 FR 48839, Nov. 27, 1989, and further redesignated by T.D. ATF-460, 66 FR 39093, July 27, 2001, as amended by T.D. ATF-469, 66 FR 56758, Nov. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 40.454" NODE="27:2.0.1.1.1.12.40.54" TYPE="SECTION">
<HEAD>§ 40.454   Removal for export purposes.</HEAD>
<P>The removal of cigarette papers and tubes, without payment of tax, for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States, shall be in accordance with the provisions of part 44 of this chapter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418; 26 U.S.C. 5704)
</SECAUTH>
<HD2>Permanent Discontinuance of Business


</HD2>
</DIV8>


<DIV8 N="§ 40.461" NODE="27:2.0.1.1.1.12.40.55" TYPE="SECTION">
<HEAD>§ 40.461   Discontinuance of operations.</HEAD>
<P>Every manufacturer of cigarette papers and tubes who desires to discontinue operations and close out a factory shall dispose of all cigarette papers and tubes on hand, in accordance with this subpart, and make a closing inventory and closing report, in accordance with the provisions of §§ 40.434 and 40.426, respectively.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5721, 5722)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="41" NODE="27:2.0.1.1.1.12.41" TYPE="SUBJGRP">
<HEAD>Claims By Manufacturers</HEAD>

<HD2>General


</HD2>

<DIV8 N="§ 40.471" NODE="27:2.0.1.1.1.12.41.56" TYPE="SECTION">
<HEAD>§ 40.471   Abatement.</HEAD>
<P>A claim for abatement of the unpaid portion of the assessment of any tax on cigarette papers and tubes, or any liability in respect thereof, may be allowed to the extent that such assessment is excessive in amount, is assessed after the expiration of the applicable period of limitation, or is erroneously or illegally assessed. Any claim under this section shall be prepared on TTB F 5620.8, in duplicate, and shall set forth the particulars under which the claim is filed. The original of the claim, accompanied by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid, shall be filed with the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(68A Stat. 792, 6404)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.472" NODE="27:2.0.1.1.1.12.41.57" TYPE="SECTION">
<HEAD>§ 40.472   Allowance.</HEAD>
<P>Relief from the payment of tax on cigarette papers and tubes may be extended to a manufacturer by allowance of the tax where the cigarette papers and tubes, after removal from the factory upon determination of tax and prior to the payment of such tax, are lost (otherwise than by theft) or destroyed by fire, casualty, or act of God, while in the possession or ownership of the manufacturer who removed such articles, or are withdrawn by the manufacturer from the market. Any claim for allowance under this section shall be filed on TTB F 5620.8 with the appropriate TTB officer, shall be executed under penalties and perjury and shall show the date the cigarette papers and tubes were removed from the factory. A claim relating to articles lost or destroyed shall be supported as prescribed in § 40.475. In the case of a claim relating to cigarette papers or tubes withdrawn from the market the schedule prescribed in § 40.476 shall be filed with the appropriate TTB officer. The manufacturer may not anticipate allowance of a claim by making the adjusting entry in a tax return pending consideration and action on the claim. Cigarette papers and tubes to which such a claim relates must be shown as removed on determination of tax in the return covering the period during which such articles were so removed. Upon action on the claim by the appropriate TTB officer a copy of TTB F 5620.8 will be returned to the manufacturer as notice of such action. This copy of TTB F 5620.8, with the copy of any verified supporting schedules, shall be retained by the manufacturer. When such notification of allowance of the claim or any part thereof is received prior to the time the return covering the tax on the cigarette papers or tubes to which the claim relates is to be filed, the manufacturer may make an adjusting entry and explanatory statement in that tax return. Where the notice of allowance is received after the filing of the return and taxpayment of the cigarette papers or tubes to which the claim relates, the manufacturer may make an adjusting entry and explanatory statement in the next tax return(s) to the extent necessary to take credit in the amount of the allowance.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended, 26 U.S.C. 5705)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.473" NODE="27:2.0.1.1.1.12.41.58" TYPE="SECTION">
<HEAD>§ 40.473   Credit or refund.</HEAD>
<P>The taxes paid on cigarette papers and tubes may be credited or refunded (without interest) to a manufacturer on proof satisfactory to the appropriate TTB officer that the claimant manufacturer paid the tax on cigarette papers and tubes lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, while in the possession or ownership of such manufacturer, or withdrawn by the manufacturer from the market. Any claim for credit or refund under this section shall be prepared on TTB F 5620.8, in duplicate. Claims shall include a statement that the tax imposed on cigarette papers and tubes by 26 U.S.C. 7652 or Chapter 52, was paid in respect to the cigarette papers or tubes covered by the claim, and that the articles were lost, destroyed, or withdrawn from the market within 6 months preceding the date the claim is filed. A claim for credit or refund relating to articles lost or destroyed shall be supported as prescribed in § 40.475, and a claim relating to articles withdrawn from the market shall be accompanied by a schedule prepared and verified as prescribed in §§ 40.476, and 40.477. The original and one copy of TTB F 5620.8, shall be filed with the appropriate TTB officer. Upon action by the appropriate TTB officer on a claim for credit, a copy of TTB F 5620.8 will be returned to the manufacturer as notification of allowance or disallowance of the claim or any part thereof. This copy, with the copy of any verified supporting schedules, shall be retained by the manufacturer. When the manufacturer is notified of allowance of the claim for credit or any part thereof, the manufacturer shall make an adjusting entry and explanatory statement in the next tax return(s) to the extent necessary to take credit in the amount of the allowance. The manufacturer may not anticipate allowance of a claim by taking credit on a tax return prior to consideration and action on such claim. The duplicate of a claim for refund or credit, with a copy of any verified supporting schedules, shall be retained by the manufacturer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended, 26 U.S.C. 5705)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.474" NODE="27:2.0.1.1.1.12.41.59" TYPE="SECTION">
<HEAD>§ 40.474   Remission.</HEAD>
<P>Remission of the tax liability on cigarette papers and tubes may be extended to the manufacturer liable for the tax where cigarette papers and tubes in bond are lost (other than by theft) or destroyed, by fire, casualty, or act of God, while in the possession or ownership of such manufacturer. Where cigarette papers and tubes are so lost or destroyed the manufacturer shall report promptly such fact, and the circumstances, to the appropriate TTB officer. If the manufacturer wishes to be relieved of the tax liability, a claim on TTB F 5620.8, in duplicate, shall also be prepared, setting forth the nature, date, place, and extent of the loss or destruction. The original and one copy of the claim, accompanied by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid, shall be filed with the appropriate TTB officer. Upon action on the claim by the appropriate TTB officer, the copy of TTB F 5620.8 will be returned to the manufacturer as notice of such action, which copy shall be retained by the manufacturer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended, 26 U.S.C. 5707)
</SECAUTH>
<HD2>Lost or Destroyed


</HD2>
</DIV8>


<DIV8 N="§ 40.475" NODE="27:2.0.1.1.1.12.41.60" TYPE="SECTION">
<HEAD>§ 40.475   Action by claimant.</HEAD>
<P>Where cigarette papers and tubes are lost (other than by theft) or destroyed, by fire, casualty, or act of God, and the manufacturer desires to file claim under the provisions of § 40.472 or § 40.473, the manufacturer shall indicate on the claim the nature, date, and extent of such loss or destruction. The claim shall be accompanied by such evidence as necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5705)
</SECAUTH>
<HD2>Withdrawn From the Market.


</HD2>
</DIV8>


<DIV8 N="§ 40.476" NODE="27:2.0.1.1.1.12.41.61" TYPE="SECTION">
<HEAD>§ 40.476   Action by claimant.</HEAD>
<P>Where cigarette papers and tubes are withdrawn from the market and the manufacturer desires to file claim under the provisions of § 40.472 or § 40.473, the manufacturer shall assemble the articles in or adjacent to a factory if they are to be retained in or received into such factory, or at any suitable place if they are to be destroyed. The manufacturer shall group the articles according to the rate of tax applicable thereto, and shall prepare and submit a schedule of the articles, on TTB Form 5200.7 in accordance with the instructions, on the form. All copies of the schedule shall be forwarded to the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-384, 61 FR 54085, Oct. 17, 1996, as amended by T.D. ATF-424, 64 FR 71932, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 40.477" NODE="27:2.0.1.1.1.12.41.62" TYPE="SECTION">
<HEAD>§ 40.477   Action by the appropriate TTB officer.</HEAD>
<P>Upon receipt of a schedule of cigarette papers and tubes withdrawn from the market, the appropriate TTB officer may assign a TTB officer to verify the schedule and supervise disposition of the cigarette papers and tubes, or may authorize the manufacturer to dispose of the articles without supervision by so stating on the original and one copy of the schedule returned to the manufacturer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5705)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.478" NODE="27:2.0.1.1.1.12.41.63" TYPE="SECTION">
<HEAD>§ 40.478   Disposition of cigarette papers and tubes and schedule.</HEAD>
<P>When so authorized, as evidenced by the appropriate TTB officer's statement on the schedule, the manufacturer shall dispose of the cigarette papers and tubes as specified in the schedule. After the articles are disposed of, the manufacturer shall execute a certificate on both copies of the schedule received from the appropriate TTB officer, to show the disposition and the date of disposition of the articles. In connection with a claim for credit or refund, the manufacturer shall attach the original of the schedule to the claim for credit or refund, TTB F 5620.8, filed under § 40.473. When an appropriate TTB officer is assigned to verify the schedule and supervise disposition of the cigarette papers and tubes, such officer shall, upon completion of the assignment, execute a certificate on all copies of the schedule to show the disposition and the date of disposition of the articles. In connection with a claim for allowance, the officer shall return one copy of the schedule to the manufacturer for the record, and in connection with a claim for credit or refund, the officer shall return the original and one copy of the schedule to the manufacturer, the original of which the manufacturer shall attach to the claim filed under § 40.473.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 26 U.S.C. 5705)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="L" NODE="27:2.0.1.1.1.13" TYPE="SUBPART">
<HEAD>Subpart L—Manufacture of Processed Tobacco</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-78, 74 FR 29410, June 22, 2009, unless otherwise noted.


</PSPACE></SOURCE>

<DIV7 N="42" NODE="27:2.0.1.1.1.13.42" TYPE="SUBJGRP">
<HEAD>Qualification Requirements for Manufacturers of Processed Tobacco</HEAD>


<DIV8 N="§ 40.491" NODE="27:2.0.1.1.1.13.42.1" TYPE="SECTION">
<HEAD>§ 40.491   Persons required to qualify.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in paragraph (b) of this section, every person who engages in the processing of tobacco must first qualify for and receive a permit as a manufacturer of processed tobacco in accordance with the provisions of this subpart.
</P>
<P>(b) <I>Exceptions.</I> (1) A person who engages in the processing of tobacco solely for his own personal use or consumption and not for sale or transfer to another person is not engaged in the manufacture of processed tobacco for purposes of this part and, accordingly, is not required to qualify as a manufacturer of processed tobacco.
</P>
<P>(2) Any person who holds a TTB permit for the manufacture of tobacco products is thereby authorized to process tobacco solely for use in the manufacture of tobacco products under that permit, so long as the processed tobacco is not removed from the factory for any purpose other than a purpose authorized by § 40.72(b). Such a manufacturer is not required to qualify under this subpart as a manufacturer of processed tobacco.
</P>
<P>(3) Any person that holds a TTB permit for the manufacture of tobacco products and that removes processed tobacco from the factory must apply for authorization to engage in that activity, when required to do so under § 40.47.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29410, June 22, 2009, as amended by T.D. TTB-104, 77 FR 37304, June 21, 2012; as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 40.492" NODE="27:2.0.1.1.1.13.42.2" TYPE="SECTION">
<HEAD>§ 40.492   Application for permit.</HEAD>
<P>The application for a permit as a manufacturer of processed tobacco must be made on TTB F 5200.3, according to the instructions on the form. All documents required under this subpart to be furnished with the application must be included with the application.


</P>
</DIV8>


<DIV8 N="§ 40.493" NODE="27:2.0.1.1.1.13.42.3" TYPE="SECTION">
<HEAD>§ 40.493   Transitional rule.</HEAD>
<P>(a) Any person who:
</P>
<P>(1) On April 1, 2009, is engaged in business as a manufacturer of processed tobacco; and
</P>
<P>(2) On or before June 30, 2009, submits an application for a permit or authorization as provided in this part to engage in such business, may continue to engage in that business pending final action on the application.
</P>
<P>(b) Pending final action on an application or request for authorization submitted under paragraph (a) of this section, all provisions of chapter 52 of the Internal Revenue Code of 1986 shall apply to the applicant in the same manner and to the same extent as if the applicant were a holder of a permit to manufacture processed tobacco under chapter 52.
</P>
<P>(c) Upon receipt of an application, the appropriate TTB officer will provide the applicant with a written acknowledgement that may be used for a limited period as confirmation of TTB authorization to engage in the business of a manufacturer of processed tobacco.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29410, June 22, 2009, as amended by T.D. TTB-80, 74 FR 37552, July 29, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.494" NODE="27:2.0.1.1.1.13.42.4" TYPE="SECTION">
<HEAD>§ 40.494   Corporate documents.</HEAD>
<P>Every corporation that files an application for a permit as a manufacturer of processed tobacco must furnish with its application for the permit required by § 40.492 a true copy of the corporate charter or a certificate of corporate existence or incorporation executed by the appropriate officer of the State in which incorporated. The corporation must likewise furnish duly authenticated extracts of the stockholders' meetings, bylaws, or directors' meetings, listing the offices the incumbents of which are authorized to sign documents or otherwise act in behalf of the corporation in matters relating to 26 U.S.C. chapter 52, and regulations issued thereunder. The corporation must also furnish evidence, in duplicate, of the identity of the officers and directors and each person who holds more than ten percent of the stock of such corporation. Where any of the information required by this section has previously been filed with the appropriate TTB officer and such information is currently complete and accurate, a written statement to that effect, in duplicate, will be sufficient for the purpose of this section.


</P>
</DIV8>


<DIV8 N="§ 40.495" NODE="27:2.0.1.1.1.13.42.5" TYPE="SECTION">
<HEAD>§ 40.495   Articles of partnership or association.</HEAD>
<P>Every partnership or association that files an application for a permit as a manufacturer of processed tobacco must furnish with its application for the permit required by § 40.492 a true copy of the articles of partnership or association, if any, or certificate of partnership or association where required to be filed by any State, county, or municipality. Where a partnership or association has previously filed such documents with the appropriate TTB officer and such documents are currently complete and accurate, a written statement, in duplicate, to that effect by the partnership or association will be sufficient for the purpose of this section.


</P>
</DIV8>


<DIV8 N="§ 40.496" NODE="27:2.0.1.1.1.13.42.6" TYPE="SECTION">
<HEAD>§ 40.496   Trade name certificate.</HEAD>
<P>Every person that files an application for a permit as a manufacturer of processed tobacco operating under a trade name must furnish with the application for the permit required by § 40.492 a true copy of the certificate or other document, if any, issued by a State, county, or municipal authority in connection with the transaction of business under such trade name. If no such certificate or other document is so required, a written statement, in duplicate, to that effect by such person will be sufficient for the purpose of this section.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29410, June 22, 2009, as amended by T.D. TTB-80, 74 FR 37552, July 29, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 40.497" NODE="27:2.0.1.1.1.13.42.7" TYPE="SECTION">
<HEAD>§ 40.497   Additional information.</HEAD>
<P>The appropriate TTB officer may require such additional information as deemed necessary to determine whether the applicant is entitled to a permit under this subpart. The applicant shall, when required by the appropriate TTB officer, furnish as a part of the application for the permit such additional information as may be necessary for the appropriate TTB officer to determine whether the applicant is entitled to a permit.


</P>
</DIV8>


<DIV8 N="§ 40.498" NODE="27:2.0.1.1.1.13.42.8" TYPE="SECTION">
<HEAD>§ 40.498   Investigation of applicant.</HEAD>
<P>Appropriate TTB officers may inquire or investigate to verify the information in connection with an application for a permit. The investigation will ascertain whether the applicant is eligible for a permit. A permit may be denied if the applicant (including, in the case of a corporation, any officer, director, or principal stockholder and, in the case of a partnership, a partner)—
</P>
<P>(a) Is, by reason of his business experience, financial standing, or trade connections or by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with this chapter;
</P>
<P>(b) Has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes; or
</P>
<P>(c) Has failed to disclose any material information required or made any material false statement in the application therefor.


</P>
</DIV8>


<DIV8 N="§ 40.499" NODE="27:2.0.1.1.1.13.42.9" TYPE="SECTION">
<HEAD>§ 40.499   Notice of contemplated disapproval.</HEAD>
<P>If the appropriate TTB officer has reason to believe that the applicant is not entitled to a permit, the appropriate TTB officer will promptly give to the applicant notice of the contemplated disapproval of the application and opportunity for hearing thereon in accordance with part 71 of this chapter. If, after such notice and opportunity for hearing, the appropriate TTB officer finds that the applicant is not entitled to a permit, an order will be prepared stating the findings on which the permit request is denied.


</P>
</DIV8>


<DIV8 N="§ 40.500" NODE="27:2.0.1.1.1.13.42.10" TYPE="SECTION">
<HEAD>§ 40.500   Issuance of permit.</HEAD>
<P>If the application for permit, together with the supporting documents, required under this part is approved, the appropriate TTB officer will issue a permit on TTB F 5200.28 to the applicant as a manufacturer of processed tobacco.


</P>
</DIV8>


<DIV8 N="§ 40.501" NODE="27:2.0.1.1.1.13.42.11" TYPE="SECTION">
<HEAD>§ 40.501   Retention of permit and supporting documents.</HEAD>
<P>The manufacturer must retain the permit, together with the copy of the application and supporting documents returned with the permit, at the same place where the records required by this subpart are kept. The permit and supporting documents must be made available for inspection by any appropriate TTB officer upon request.


</P>
</DIV8>

</DIV7>


<DIV7 N="43" NODE="27:2.0.1.1.1.13.43" TYPE="SUBJGRP">
<HEAD>Qualification Requirements for Manufacturers of Processed Tobacco</HEAD>


<DIV8 N="§ 40.502" NODE="27:2.0.1.1.1.13.43.12" TYPE="SECTION">
<HEAD>§ 40.502   Factory premises.</HEAD>
<P>(a) <I>General.</I> The premises used by a manufacturer of processed tobacco to conduct such business must be described on its permit and such premises must include any physical location or building used for: Manufacturing and storing processed tobacco; storing materials, equipment, and supplies related to or used in the manufacturing and storage of processed tobacco; and carrying on activities in connection with the manufacturing and storage of processed tobacco. The premises may consist of more than one building, or portions of buildings, which need not be contiguous or located in the same city, town, village, or State. The manufacturer must designate a central location as a repository for the records required under this subpart. The application for the permit filed under § 40.492 must describe the buildings or portions of buildings by street address (number, street, city or equivalent, and State). The permit application must include a diagram, in duplicate, showing the following information, if applicable:
</P>
<P>(1) The identification of each building by a letter, number, or similar designation if the factory is in more than one building and each building is not identifiable by a separate street address; and
</P>
<P>(2) The particular floor or floors, or room or rooms, comprising the factory if the factory consists of, or includes, a portion of a building or portions of buildings.
</P>
<P>(b) <I>Permits issued prior to June 21, 2012.</I> A manufacturer of processed tobacco operating under a permit issued prior to June 21, 2012, must submit the information required under paragraph (a) of this section within 180 days after June 21, 2012.
</P>
<P>(c) <I>Extension or curtailment of factory.</I> If a manufacturer of processed tobacco wishes to change the premises delineated by its permit to an extent that would be inconsistent with the description or diagram of the premises that was submitted with the manufacturer's last permit application, the manufacturer must submit an application on TTB Form 5200.16 for, and obtain, an amended permit before the change in the premises occurs. The application must describe the proposed change in the premises and must be accompanied by a new diagram if required under paragraph (a) of this section.
</P>
<CITA TYPE="N">[T.D. TTB-104, 77 FR 37303, June 21, 2012]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="44" NODE="27:2.0.1.1.1.13.44" TYPE="SUBJGRP">
<HEAD>Changes After Qualification</HEAD>


<DIV8 N="§ 40.511" NODE="27:2.0.1.1.1.13.44.13" TYPE="SECTION">
<HEAD>§ 40.511   Change in name.</HEAD>
<P>(a) <I>Change in individual name.</I> When there is a change in the name of an individual operating under a permit as a manufacturer of processed tobacco, the manufacturer must, within 30 days of such change, make application on TTB F 5200.16 for an amended permit.
</P>
<P>(b) <I>Change in trade name.</I> When there is a change in a trade name used by a manufacturer of processed tobacco in connection with operations authorized by the permit, the manufacturer must, within 30 days of such change, make application on TTB F 5200.16 for an amended permit to reflect such change. This requirement also applies to the addition or discontinuance of a trade name. The manufacturer must also furnish a true copy of any new trade name certificate or document issued to the manufacturer, or statement in lieu thereof, required by § 40.496.
</P>
<P>(c) <I>Change in corporate name.</I> When there is a change in the corporate name of a manufacturer of processed tobacco, the manufacturer must, within 30 days of such change, make application on TTB F 5200.16 for an amended permit. The manufacturer must also furnish such documents as may be necessary to establish that the corporate name has been changed.


</P>
</DIV8>


<DIV8 N="§ 40.512" NODE="27:2.0.1.1.1.13.44.14" TYPE="SECTION">
<HEAD>§ 40.512   Change in ownership or control.</HEAD>
<P>(a) <I>Fiduciary successor.</I> If an administrator, executor, receiver, trustee, assignee, or other fiduciary is to take over the business of a manufacturer of processed tobacco as a continuing operation, such fiduciary shall, before commencing operations, make application for a permit in accordance with this subpart, furnish certified copies, in duplicate, of the order of the court, or other pertinent documents, showing his appointment and qualification as such fiduciary, and make a commencing inventory in accordance with § 40.523. However, where a fiduciary intends only to liquidate the business, qualification as a manufacturer of processed tobacco will not be required if such fiduciary promptly files with the appropriate TTB officer a written statement to that effect, in duplicate.
</P>
<P>(b) <I>Transfer of ownership.</I> If a transfer in ownership of the business of a manufacturer of processed tobacco (including a change of any member of a partnership or association) is to be made, such manufacturer shall give notice, in writing, to the appropriate TTB officer, naming the proposed successor and the desired effective date of the transfer. The proposed successor shall, before commencing operations, qualify as a manufacturer of processed tobacco in accordance with this subpart. The manufacturer shall give notice of the transfer, and the proposed successor shall make application for permit, in ample time for examination and approval thereof before the desired date of such change. The predecessor shall make a concluding inventory and concluding report, in accordance with §§ 40.523 and 40.522, respectively, and surrender the permit with such inventory and report. The successor shall make a commencing inventory and first report, in accordance with §§ 40.523 and 40.522, respectively.
</P>
<P>(c) <I>Change in officers, directors, or stockholders of a corporation.</I> Upon election or appointment (excluding successive reelection or reappointment) of any officer or director of a corporation operating the business of a manufacturer of processed tobacco, or upon any occurrence that results in a person acquiring ownership or control of more than ten percent in aggregate of the outstanding stock of such corporation, the manufacturer shall, within 30 days of such action, so notify the appropriate TTB officer in writing, giving the identity of such person. When there is any change in the authority furnished under § 40.494 for officers to act in behalf of the corporation, the manufacturer shall immediately so notify the appropriate TTB officer in writing.
</P>
<P>(d) <I>Change in control of corporation.</I> When the issuance, sale, or transfer of the stock of a corporation operating as a manufacturer of processed tobacco results in a change in the identity of the principal stockholders exercising actual or legal control of the operations of the corporation, the corporate manufacturer shall, within 30 days after the change occurs, make application on TTB F 5200.3 for a new permit. Otherwise, the present permit shall be automatically terminated at the expiration of such 30-day period, and the manufacturer shall dispose of all processed tobacco on hand, make a concluding inventory and concluding report, in accordance with the provisions of §§ 40.523 and 40.522, respectively, and surrender the permit with such inventory and report. If the application for a new permit is timely made, the present permit shall continue in effect pending final action with respect to such application.


</P>
</DIV8>


<DIV8 N="§ 40.513" NODE="27:2.0.1.1.1.13.44.15" TYPE="SECTION">
<HEAD>§ 40.513   Change in location or address of factory.</HEAD>
<P>Whenever a manufacturer of processed tobacco intends to relocate its factory, the manufacturer shall, before commencing operations at the new location, make application on TTB F 5200.16 for, and obtain, an amended permit. Whenever any change occurs in the address, but not the location, of the factory of a manufacturer of processed tobacco as a result of action of local authorities, the manufacturer shall, within 30 days of such change, make application on TTB F 5200.16 for an amended permit.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29410, June 22, 2009, as amended by T.D. TTB-80, 74 FR 37552, July 29, 2009]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="45" NODE="27:2.0.1.1.1.13.45" TYPE="SUBJGRP">
<HEAD>Operations by Manufacturers of Processed Tobacco</HEAD>


<DIV8 N="§ 40.521" NODE="27:2.0.1.1.1.13.45.16" TYPE="SECTION">
<HEAD>§ 40.521   Record of tobacco and processed tobacco.</HEAD>
<P>(a) Every manufacturer of processed tobacco and every manufacturer of tobacco products required to obtain authorization to engage in another business within the factory under §§ 40.47(b) and 40.72(b) of this part must keep records of operations and transactions that show the total quantity of all:
</P>
<P>(1) Processed tobacco on hand at the beginning of each month;
</P>
<P>(2) In the case of a manufacturer of tobacco products, processed tobacco used in the manufacture of tobacco products during each month;
</P>
<P>(3) Processed tobacco received, together with the date of receipt and the name and address of the person from whom it was received;
</P>
<P>(4) Processed tobacco removed from the factory for shipment to a person holding a TTB permit as a manufacturer of processed tobacco, as a manufacturer of tobacco products, as an importer of processed tobacco, or as an export warehouse proprietor, together with the date of removal and the name and address of the person to whom shipped or delivered;
</P>
<P>(5) Processed tobacco removed from the factory for shipment, other than for export, to a person not holding a TTB permit as a manufacturer of processed tobacco, as a manufacturer of tobacco products, as an importer of processed tobacco, or as an export warehouse proprietor, together with the date of removal;
</P>
<P>(6) Processed tobacco removed from the factory for export, together with the date of removal;
</P>
<P>(7) Processed tobacco removed for any purpose not referred to in paragraphs (a)(4), (5), (6), and (7) of this section, together with the date of removal;
</P>
<P>(8) Processed tobacco lost, together with the date and other circumstances of the loss;
</P>
<P>(9) Processed tobacco destroyed (either on factory premise or removed from factory premises for destruction), together with the date and other circumstances of the destruction;
</P>
<P>(10) Processed tobacco transferred between buildings that are covered under the same permit but that are not located in the same city, town, village, or State; and
</P>
<P>(11) Tobacco (unprocessed) on hand at the beginning of each month and used in the manufacture of tobacco products, lost, destroyed, or removed during each month.
</P>
<P>(b) Any manufacturer of processed tobacco and any manufacturer of tobacco products that are required to obtain authorization to engage in another business within the factory under §§ 40.47(b) and 40.72(b) and that engage in removals of processed tobacco described in paragraph (a)(5) or (a)(6) of this section must also keep records that show the following information about each such removal:
</P>
<P>(1) The full name and business address (including city and State) of the purchaser (if there is a purchaser) and the full name and business address of the recipient, or personal address if the purchaser or recipient is not a business;
</P>
<P>(2) The full name, business address (including city and State), and driver's license number of the person picking up the processed tobacco for delivery;
</P>
<P>(3) The license number of the vehicle in which the processed tobacco is removed from the manufacturer's premises;
</P>
<P>(4) The street address of the destination (not including any in-transit stops) of the processed tobacco; and
</P>
<P>(5) The quantity of processed tobacco in the shipment.
</P>
<P>(c) The entries in the records of removals required under this section must be made for each day by the close of the business day following the day on which the removal occurs. There is no particular format prescribed for the records required under this section (and commercial records may be used) although the required information must be readily ascertainable from the records kept. In the case of a removal under paragraph (a)(5) or (a)(6) of this section that involves shipment by a common carrier, the appropriate TTB officer may approve an alternate method or procedure pursuant to §§ 40.45 or 40.531 through which the manufacturer may keep records regarding the common carrier and its means of tracking (including pick up and delivery) of the shipment in lieu of the information required by paragraphs (b)(2) and (b)(3) of this section.
</P>
<CITA TYPE="N">[T.D. TTB-104, 77 FR 37303, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 40.522" NODE="27:2.0.1.1.1.13.45.17" TYPE="SECTION">
<HEAD>§ 40.522   Reports.</HEAD>
<P>(a) <I>General.</I> Every manufacturer of processed tobacco must prepare a monthly report on TTB F 5250.1 in accordance with the instructions for the form. The report must be prepared at the times specified in this section and must be prepared whether or not any operations or transactions occurred during the period covered by the report. The manufacturer must retain a copy of each report in accordance with the provisions of this subpart.
</P>
<P>(b) <I>First report(s).</I> The first monthly report must be submitted by the 20th day of the month following the month in which the permit or authorization is issued. If the manufacturer is operating as a manufacturer of processed tobacco under the transitional rule set forth in § 40.493, the manufacturer must submit the first report by the 20th day of the month following the month in which TTB provides written acknowledgement of the receipt of the application filed under § 40.492. In the transitional case, the manufacturer must also submit reports for all previous months back to April 2009. For example, a manufacturer who receives an acknowledgement, dated July 17, 2009, must submit by August 20, 2009, a total of four reports, one each for April, May, June, and July 2009.
</P>
<P>(c) <I>Reports of no activity.</I> Reports with the notation “No Activity” must be made for those months in which no activity occurs.
</P>
<P>(d) <I>Reports of removals.</I> (1) Except as otherwise provided in paragraphs (d)(2) or (d)(3) of this section, a manufacturer who removes processed tobacco for export or for shipment to someone other than a person holding a TTB permit as a manufacturer of processed tobacco, as a manufacturer of tobacco products, as an importer of processed tobacco, or as an export warehouse proprietor must report each such removal on TTB F 5250.2 by the close of the next business day following the day of removal, in accordance with the instructions on the form.
</P>
<P>(2) In the case of removals for export, as an alternative to the procedure prescribed in paragraph (d)(1) of this section, the manufacturer may submit to TTB a monthly summary report of such removals in a format approved by the appropriate TTB officer. Prior to the use of such an alternate procedure, the manufacturer must obtain written approval from the appropriate TTB officer.
</P>
<P>(3) A manufacturer of tobacco products who removes processed tobacco for any of the purposes related to the manufacture of tobacco products set forth under § 40.72(b)(2) is not required to report such removals on TTB F 5250.2. Records of such removals must still be kept pursuant to § 40.521.
</P>
<P>(e) <I>Concluding report.</I> A concluding report, covering the period from the first of the month to the date of the concluding inventory, shall be made with such inventory.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5722)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29410, June 22, 2009, as amended by T.D. TTB-80, 74 FR 37552, July 29, 2009; T.D. TTB-104, 77 FR 37304, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 40.523" NODE="27:2.0.1.1.1.13.45.18" TYPE="SECTION">
<HEAD>§ 40.523   Inventories.</HEAD>
<P>Every manufacturer of processed tobacco must provide a true and accurate inventory on TTB F 5210.9 in accordance with instructions for the form. The manufacturer must make such an inventory at the time of commencing business, at the time of transferring ownership, at the time of changing location of the factory, at the time of concluding business, and at such other time as any appropriate TTB officer may require. In the case of a manufacturer operating under the transitional rule set forth in § 40.493, that manufacturer must make an inventory within 10 days of the date of TTB's written acknowledgement of the receipt of the application filed under § 40.492. Each such inventory is subject to verification by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5721)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.524" NODE="27:2.0.1.1.1.13.45.19" TYPE="SECTION">
<HEAD>§ 40.524   Retention of documents.</HEAD>
<P>Every manufacturer of processed tobacco must retain all records and reports required under this subpart, including copies of permits, authorizations, inventories, and reports, for three years following the close of the calendar year in which filed or made, or in the case of an authorization, for three years following the close of the calendar year in which the operation under such authorization is concluded. Such records shall be made available for inspection by the appropriate TTB officer upon request.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5741)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.525" NODE="27:2.0.1.1.1.13.45.20" TYPE="SECTION">
<HEAD>§ 40.525   Discontinuance of operations.</HEAD>
<P>Every manufacturer of processed tobacco who desires to discontinue operations and close a factory must dispose of all processed tobacco on hand, make a concluding inventory and concluding report, in accordance with the provisions of §§ 40.523 and 40.522, respectively, and surrender the permit to the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5721, 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.526" NODE="27:2.0.1.1.1.13.45.21" TYPE="SECTION">
<HEAD>§ 40.526   Minimum manufacturing and activity requirements.</HEAD>
<P>A permit to manufacture processed tobacco will only be granted to those persons engaged in the processing of tobacco. A permit may be suspended, and subsequently revoked, if the person has no activity under such permit for a period of one year. A person whose permit as a manufacturer of processed tobacco has been revoked for non-use, who wishes to engage in such business, must re-apply for such permit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 40.527" NODE="27:2.0.1.1.1.13.45.22" TYPE="SECTION">
<HEAD>§ 40.527   Authorization to package processed tobacco.</HEAD>
<P>A permit to manufacture processed tobacco does not authorize packaging of processed tobacco. Packaging of processed tobacco may only occur on the bonded premises of a manufacturer of tobacco products.


</P>
</DIV8>


<DIV8 N="§ 40.528" NODE="27:2.0.1.1.1.13.45.23" TYPE="SECTION">
<HEAD>§ 40.528   Suspension and revocation of permit.</HEAD>
<P>Where the appropriate TTB officer has reason to believe that a manufacturer of processed tobacco has not in good faith complied with the provisions of 26 U.S.C. chapter 52, and regulations thereunder, or with any other provision of 26 U.S.C. with intent to defraud, or has violated any condition of his permit, or has failed to disclose any material information required or made any material false statement in the application for the permit, or is, by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with 26 U.S.C. chapter 52, or has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, the appropriate TTB officer shall issue an order, stating the facts charged, citing such person to show cause why his permit should not be suspended or revoked. Such citation shall be issued and opportunity for hearing afforded in accordance with part 71 of this chapter, which part is applicable to such proceedings. If, after hearing, the hearing examiner, or on appeal, the Administrator, finds that such person has not shown cause why his permit should not be suspended or revoked, such permit shall be suspended for such period as the appropriate TTB officer deems proper or shall be revoked.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29410, June 22, 2009, as amended by T.D. TTB-80, 74 FR 37552, July 29, 2009]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="46" NODE="27:2.0.1.1.1.13.46" TYPE="SUBJGRP">
<HEAD>Other Provisions Relating to Manufacturers of Processed Tobacco</HEAD>


<DIV8 N="§ 40.531" NODE="27:2.0.1.1.1.13.46.24" TYPE="SECTION">
<HEAD>§ 40.531   Alternate methods or procedures.</HEAD>
<P>(a) <I>General.</I> A manufacturer of processed tobacco, on specific approval by the appropriate TTB officer as provided in this section, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this subpart. The appropriate TTB officer may approve an alternate method or procedure, subject to stated conditions, when the appropriate TTB officer finds that—
</P>
<P>(1) Good cause has been shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law, and will not result in an increase in cost to the Government or hinder the effective administration of this subpart.
</P>
<P>(b) <I>Application.</I> A manufacturer of processed tobacco who desires to employ an alternate method or procedure must submit a written application to the appropriate TTB officer. The application shall specifically describe the proposed alternate method or procedure, and shall set forth the reasons therefor. An alternate method or procedure shall not be employed until the application has been approved by the appropriate TTB officer. The manufacturer shall, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization for any alternate method or procedure may be withdrawn whenever, in the judgment of the appropriate TTB officer, the effective administration of this part is hindered. Any authorization of the appropriate TTB officer under this section shall be retained as part of the manufacturer's records in accordance with this subpart.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29410, June 22, 2009, as amended by T.D. TTB-104, 77 FR 37304, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 40.532" NODE="27:2.0.1.1.1.13.46.25" TYPE="SECTION">
<HEAD>§ 40.532   Emergency variations from requirements.</HEAD>
<P>The appropriate TTB officer may approve methods of operation other than as specified in this subpart, where it is determined that an emergency exists and the proposed variations from the specified requirements are necessary, and provided that the proposed variations will not hinder the effective administration of this subpart and will not be contrary to any provision of law. Variations from requirements granted under this section are conditioned on compliance with the procedures, conditions, and limitations set forth in the approval of the application. Failure to comply in good faith with such procedures, conditions, and limitations will automatically terminate the authority for such variations, and the manufacturer of processed tobacco thereupon must fully comply with the prescribed requirements of the regulations from which the variations were authorized. Authority for any variation may be withdrawn whenever in the judgment of the appropriate TTB officer the effective administration of this subpart is hindered by the continuation of such variation. Where a manufacturer desires to employ such variation, the manufacturer must submit a written application to do so to the appropriate TTB officer. The application must describe the proposed variations and set forth the reasons therefor. Variations may not be employed until the application has been approved. Any authorization of the appropriate TTB officer under this section shall be retained as part of the manufacturer's records, in accordance with this subpart.


</P>
</DIV8>


<DIV8 N="§ 40.533" NODE="27:2.0.1.1.1.13.46.26" TYPE="SECTION">
<HEAD>§ 40.533   Penalties and forfeitures.</HEAD>
<P>Anyone who fails to comply with the provisions of this subpart may be liable to the civil and criminal penalties, and forfeitures, provided by law.


</P>
</DIV8>


<DIV8 N="§ 40.534" NODE="27:2.0.1.1.1.13.46.27" TYPE="SECTION">
<HEAD>§ 40.534   Power of attorney.</HEAD>
<P>If the application for permit or any report or other document required to be executed under this subpart is to be signed by an individual (including one of the partners for a partnership or one of the members of an association) as an attorney in fact for any person, or if an individual is to otherwise officially represent such person, power of attorney on TTB F 5000.8 shall be furnished to the appropriate TTB officer. Such power of attorney is not required for persons whose authority is furnished with the corporate documents as required by § 40.494. TTB F 5000.8 does not have to be filed again with the appropriate TTB officer where such form has previously been submitted to that appropriate TTB officer and is still in effect.


</P>
</DIV8>

</DIV7>

</DIV6>

</DIV5>


<DIV5 N="41" NODE="27:2.0.1.1.2" TYPE="PART">
<HEAD>PART 41—IMPORTATION OF TOBACCO PRODUCTS, CIGARETTE PAPERS AND TUBES, AND PROCESSED TOBACCO
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5701-5705, 5708, 5712, 5713, 5721-5723, 5741, 5754, 5761-5763, 6301, 6109, 6302, 6313, 6402, 6404, 7101, 7212, 7342, 7606, 7651, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.


</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>Redesignated by T.D. TTB-16, 69 FR 52424, Aug. 26, 2004, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 41 (formerly part 275) appear at T.D. ATF-460, 66 FR 39093, July 27, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:2.0.1.1.2.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 41.1" NODE="27:2.0.1.1.2.1.68.1" TYPE="SECTION">
<HEAD>§ 41.1   Importation of tobacco products, cigarette papers and tubes, and processed tobacco.</HEAD>
<P>This part contains regulations relating to tobacco products, cigarette papers and tubes, and processed tobacco imported into the United States from a foreign country or brought into the United States from Puerto Rico, the Virgin Islands, or a possession of the United States.
</P>
<CITA TYPE="N">[78 FR 38568, June 27, 2013]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.1.2.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 41.11" NODE="27:2.0.1.1.2.2.68.1" TYPE="SECTION">
<HEAD>§ 41.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, the following terms shall have the meanings given in this section, unless the context clearly indicates otherwise. Words in the plural form shall include the singular, and vice versa, and words indicating the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not listed which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.41, Delegation of the Administrator's Authorities in 27 CFR Part 41, Importation of Tobacco Products and Cigarette Papers and Tubes. 
</P>
<P><I>Bank.</I> Any commercial bank.
</P>
<P><I>Banking day.</I> Any day during which a bank is open to the public for carrying on substantially all its banking functions.
</P>
<P><I>Business day.</I> Any day, other than a Saturday, Sunday, or a legal holiday. (The term legal holiday includes all holidays in the District of Columbia and, in the case of bonded manufacturers in Puerto Rico, all legal holidays in the Commonwealth of Puerto Rico.)
</P>
<P><I>Bonded manufacturer.</I> A manufacturer of tobacco products in Puerto Rico who has an approved bond, in accordance with the provisions of this part, authorizing him to defer the payment in Puerto Rico on the internal revenue tax imposed on such products by 26 U.S.C. 7652(a) as provided in this part.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Chewing Tobacco.</I> Any leaf tobacco that is not intended to be smoked.
</P>
<P><I>Cigar.</I> Any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of paragraph (2) of the definition for cigarette).
</P>
<P><I>Cigarette.</I> (1) Any roll of tobacco wrapped in paper or in any substance not containing tobacco, and
</P>
<P>(2) Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1) of this definition.
</P>
<P><I>Cigarette paper.</I> Paper, or any other material except tobacco, prepared for use as a cigarette wrapper.
</P>
<P><I>Cigarette tube.</I> Cigarette paper made into a hollow cylinder for use in making cigarettes.
</P>
<P><I>Commercial bank.</I> A bank, whether or not a member of the Federal Reserve System, which has access to the Federal Reserve Communications System (FRCS) or Fedwire. The “FRCS” or “Fedwire” is a communications network that allows Federal Reserve System member banks to effect a transfer of funds for their customers (or other commercial banks) to the Treasury Account at the Federal Reserve Bank in New York.
</P>
<P><I>Computation or computed.</I> When used with respect to the tax on tobacco products of Puerto Rican manufacture, computation or computed shall mean that the bonded manufacturer has ascertained the quantity and kind (small cigars, large cigars, small cigarettes, large cigarettes, chewing tobacco, snuff, pipe tobacco, or roll-your-own tobacco) of tobacco products and the sale price of large cigars being shipped to the United States; that adequate bond has been posted to cover the payment, in Puerto Rico, of the tax on such products to be deferred under subpart G of this part; that the tax imposed on such products by 26 U.S.C. 7652(a) has been calculated; that the bonded manufacturer has executed an agreement to pay the internal revenue tax which will become due with respect to such products, as provided in this part; and that a TTB officer has verified and executed a certification of such calculation.
</P>
<P><I>Customs officer.</I> An officer of U.S. Customs and Border Protection (CBP) or any agent or other person authorized by law to perform the duties of such an officer.
</P>
<P><I>Determine.</I> To establish enough information about taxable products at the time of removal to calculate the tax, specifically the quantity (pounds or number) and kind (for example, cigarettes, snuff, paper tubes). Where the tax rate depends on additional information (such as number of cigarette papers to a set before 1/1/2000 or sale price of large cigars), that information must also be established as part of tax determination.
</P>
<P><I>Electronic fund transfer or EFT.</I> Any transfer of funds effected by a bonded manufacturer's commercial bank, either directly or through a correspondent banking relationship, via the Federal Reserve Communications System (FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of New York.
</P>
<P><I>Export warehouse.</I> A bonded internal revenue warehouse for the storage of tobacco products and cigarette papers and tubes, upon which the internal revenue tax has not been paid or for the storage of processed tobacco, for subsequent shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States.
</P>
<P><I>Export warehouse proprietor.</I> Any person who operates an export warehouse.
</P>
<P><I>Factory.</I> The premises of a manufacturer of tobacco products, cigarette papers or tubes, or processed tobacco in which he carries on such business.
</P>
<P><I>Fiscal year.</I> The period which begins October 1 and ends on the following September 30.
</P>
<P><I>HTS.</I> The Harmonized Tariff Schedule of the United States, as published by the United States International Trade Commission.
</P>
<P><I>Importer.</I> Any person in the United States to whom non-taxpaid tobacco products or cigarette papers or tubes, or any processed tobacco manufactured in a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States are shipped or consigned; any person who removes cigars for sale or consumption in the United States from a customs bonded manufacturing warehouse; and any person who smuggles or otherwise unlawfully brings tobacco products or cigarette papers or tubes, or any processed tobacco into the United States.
</P>
<P><I>Large cigarettes.</I> Cigarettes weighing more than three pounds per thousand.
</P>
<P><I>Large cigars.</I> Cigars weighing more than three pounds per thousand.
</P>
<P><I>Manufacturer of cigarette papers and tubes.</I> Any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for his own personal use or consumption.
</P>
<P><I>Manufacturer of processed tobacco.</I> Any person who processes any tobacco other than tobacco products.
</P>
<P><I>Manufacturer of tobacco products.</I> (1) Any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco, other than:
</P>
<P>(i) A person who produces tobacco products solely for that person's own consumption or use; or
</P>
<P>(ii) A proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse.
</P>
<P>(2) The term “Manufacturer of tobacco products” includes any person who for commercial purposes makes available for consumer use (including such consumer's personal consumption or use under paragraph (1)(i) of this definition) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer's personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal use quantities.
</P>
<P><I>Package.</I> The immediate container in which tobacco products, processed tobacco, or cigarette papers or tubes are put up by the manufacturer or the importer (prior to release from customs custody) and offered for sale or delivery to the ultimate consumer. For purposes of this definition, a container of processed tobacco, the contents of which weigh 10 pounds or less (including any added non-tobacco ingredients or constituents), that is removed within the meaning of this part for any purpose other than destruction, export, delivery as a sample to a manufacturer of processed tobacco or tobacco products for the purpose of soliciting orders of processed tobacco, or for scientific testing or testing of equipment that results in the destruction of the processed tobacco or the return of the processed tobacco, is deemed to be a package offered for sale or delivery to the ultimate consumer. For appropriate tax rate, see § 41.30.
</P>
<P><I>Packaging.</I> When used in the context of an action, the act of placing processed tobacco or a tobacco product in a package.
</P>
<P><I>Person.</I> An individual, partnership, association, company, corporation, estate, or trust.
</P>
<P><I>Pipe tobacco.</I> Any tobacco which because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe.
</P>
<P><I>Port Director of Customs.</I> The director of any port or port of entry as defined in 19 CFR 101.1. A list of customs service ports and ports of entry is set forth in 19 CFR 101.3.
</P>
<P><I>Processed tobacco.</I> Processed tobacco is any tobacco that has undergone processing, but does not include tobacco products. For purposes of this definition, the processing of tobacco does not include the farming or growing of tobacco or the handling of tobacco solely for sale, shipment, or delivery to a manufacturer of tobacco products or processed tobacco, nor does the processing of tobacco include curing, baling, or packaging activities. For purposes of this definition, the processing of tobacco includes, but is not limited to, stemming (that is, removing the stem from the tobacco leaf), fermenting, threshing, cutting, or flavoring the tobacco, or otherwise combining the tobacco with non-tobacco ingredients.
</P>
<P><I>Records.</I> The accounts, books, correspondence, declarations, papers, statements, technical data, electronic media and the computer programs necessary to retrieve the stored information in a usable form, and other documents that:
</P>
<P>(1) Pertain to any importation of tobacco products, cigarette papers or tubes, or processed tobacco, to the information contained in the documents required by law or regulation under the Tariff Act of 1930, as amended, in connection with the importation or shipment of merchandise into the United States from Puerto Rico; and
</P>
<P>(2) Are of the type normally kept in the ordinary course of business; and
</P>
<P>(3) Are sufficiently detailed to:
</P>
<P>(i) Establish the right to make the importation or shipment into the United States from Puerto Rico;
</P>
<P>(ii) Establish the correctness of any importation or shipment into the United States from Puerto Rico;
</P>
<P>(iii) Determine the liability of any person for duties and taxes due, or which may be due, to the United States;
</P>
<P>(iv) Determine the liability of any person for fines, penalties, and forfeitures; and
</P>
<P>(v) Determine whether the person has complied with the laws and regulations administered by TTB and U.S. Customs and Border Protection (CBP) and with any other documents required under laws or regulations administered by TTB and CBP.
</P>
<P><I>Relanding.</I> When used with reference to tobacco products and cigarette papers and tubes, the term “relanding” means importing, bringing, or returning into the jurisdiction of the United States any tobacco products or cigarette papers or tubes that were manufactured in the United States, labeled or shipped for export (including to Puerto Rico) as prescribed in this chapter, and previously exported from the United States.
</P>
<P><I>Removal or remove.</I> When used with reference to tobacco products or cigarette papers or tubes or any processed tobacco, the term “removal” or “removed” means removal from the factory, release from internal revenue bond under 26 U.S.C. 5704, release from customs custody (including conditional release as defined in 19 CFR 141.0a(i)), and also includes the smuggling or other unlawful importation of such articles into the United States.
</P>
<P><I>Roll-your-own tobacco.</I> Any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes or cigars, or for use as wrappers thereof.
</P>
<P><I>Sale price.</I> The price for which large cigars are sold by the importer or United States manufacturer, determined in accordance with § 41.39 and used for computation of the excise tax.
</P>
<P><I>Small cigarettes.</I> Cigarettes weighing not more than three pounds per thousand.
</P>
<P><I>Small cigars.</I> Cigars weighing not more than three pounds per thousand.
</P>
<P><I>Smokeless tobacco.</I> Any chewing tobacco or snuff.
</P>
<P><I>Snuff.</I> Any finely cut, ground, or powdered tobacco that is not intended to be smoked.
</P>
<P><I>This chapter.</I> Chapter I, title 27, Code of Federal Regulations.
</P>
<P><I>Tobacco products.</I> Cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
</P>
<P><I>Treasury Account.</I> The Department of the Treasury's General Account at the Federal Reserve Bank of New York.
</P>
<P><I>United States.</I> When used in a geographical sense shall include only the States and the District of Columbia.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, ch. 736, 68A Stat. 775, as amended (26 U.S.C. 6301); June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13554, Mar. 31, 1978] 
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 41.11, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.1.2.3" TYPE="SUBPART">
<HEAD>Subpart C—General</HEAD>


<DIV8 N="§ 41.21" NODE="27:2.0.1.1.2.3.68.1" TYPE="SECTION">
<HEAD>§ 41.21   Forms prescribed.</HEAD>
<P>(a) The Administrator is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. When a return, form, claim, or other document called for under this part is required by this part, or by the document itself, to be executed under penalties of perjury, it shall be executed under penalties of perjury.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46922, Sept. 23, 1981, as amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. TTB-16, 69 FR 52424, Aug. 26, 2004; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.22" NODE="27:2.0.1.1.2.3.68.2" TYPE="SECTION">
<HEAD>§ 41.22   Retention of records.</HEAD>
<P>All records required to be kept under this part, including copies of claims and schedules, authorizations, notices of release, reports, and returns, shall be retained for three years following the close of the year in which filed or made, or in the case of an authorization, for three years following the close of the calendar year in which the operation under such authorization is concluded. Such records shall be made available for inspection by any appropriate TTB officer upon his request.
</P>
<SECAUTH TYPE="N">(72 Stat. 1423; 26 U.S.C. 5741)
</SECAUTH>
<CITA TYPE="N">[26 FR 8189, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. TTB-16, 69 FR 52424, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.23" NODE="27:2.0.1.1.2.3.68.3" TYPE="SECTION">
<HEAD>§ 41.23   Authority of TTB officers to enter premises.</HEAD>
<P>Any appropriate TTB officer may enter in the daytime any premises where tobacco products or cigarette papers or tubes are produced or kept so far as it may be necessary for the purpose of examining such articles. When such premises are open at night, any appropriate TTB officer may enter them, while so open, in the performance of his official duties. The owner of such premises, or person having the superintendence of the same, who refuses to admit any appropriate TTB officer or permit him to examine such articles shall be liable to the penalties prescribed by law for the offense.
</P>
<SECAUTH TYPE="N">(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 40, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986. Redesignated and amended by T.D. TTB-16, 69 FR 52424, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.24" NODE="27:2.0.1.1.2.3.68.4" TYPE="SECTION">
<HEAD>§ 41.24   Interference with administration.</HEAD>
<P>Whoever, corruptly or by force or threats of force, endeavors to hinder or obstruct the administration of this part, or endeavors to intimidate or impede any appropriate TTB officer acting in his official capacity, or forcibly rescues or attempts to rescue or causes to be rescued any property, after it has been duly seized for forfeiture to the United States in connection with a violation of the internal revenue laws, shall be liable to the penalties prescribed by law.
</P>
<SECAUTH TYPE="N">(68A Stat. 855; 26 U.S.C. 7212)
</SECAUTH>
<CITA TYPE="N">[26 FR 8189, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. TTB-16, 69 FR 52424, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.25" NODE="27:2.0.1.1.2.3.68.5" TYPE="SECTION">
<HEAD>§ 41.25   Disposal of forfeited, condemned, and abandoned tobacco products and cigarette papers and tubes.</HEAD>
<P>When any Federal, State, or local officer having custody of forfeited, condemned, or abandoned tobacco products or cigarette papers or tubes, upon which the Federal tax has not been paid, is of the opinion that the sale thereof will not bring a price equal to the tax due and payable thereon, and the expenses incident to the sale thereof, he shall not sell, nor cause to be sold, such articles for consumption in the United States. Where the articles are not sold, the officer may deliver them to a Federal or State hospital or institution (if they are fit for consumption) or cause their destruction by burning completely or by rendering them unfit for consumption. Where such articles are sold, they shall not be released by the officer having custody thereof until they are properly packaged and taxpaid, which tax shall be considered as a portion of the sales price. Except when the tax is to be paid to the Port Director of Customs or other authorized customs officer in accordance with customs regulations (19 CFR part 127) on sales of articles by customs officers, the payment of tax on those articles must be evidenced by presentation, to the officer having custody of the articles, of a receipt from the appropriate TTB officer showing such payment. In the case of such articles held by or for the Federal Government, the sale thereof shall be subject to the applicable provisions of the Regulations of the General Services Administration, Title 1, Personal Property Management.
</P>
<SECAUTH TYPE="N">(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 40, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-422, 64 FR 71948, Dec. 22, 1999. Redesignated and amended by T.D. TTB-16, 69 FR 52424, Aug. 26, 2004; 78 FR 38568, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.26" NODE="27:2.0.1.1.2.3.68.6" TYPE="SECTION">
<HEAD>§ 41.26   Alternate methods or procedures.</HEAD>
<P>An importer, on specific approval by the appropriate TTB officer as provided in this section, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. The appropriate TTB officer may approve an alternate method or procedure, subject to stated conditions, when he finds that—
</P>
<P>(a) Good cause has been shown for the use of the alternate method or procedure,
</P>
<P>(b) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue, and
</P>
<P>(c) The alternate method or procedure will not be contrary to any provision of law, and will not result in an increase in cost to the Government or hinder the effective administration of this part.
</P>
<FP>No alternate method or procedure relating to the giving of any bond or to the assessment, payment, or collection of tax, shall be authorized under this section. When an importer desires to employ an alternate method or procedure, he shall submit a written application to do so, in triplicate, to the appropriate TTB officer. The application shall specifically describe the proposed alternate method or procedure, and shall set forth the reasons therefor. Alternate methods or procedures shall not be employed until the application has been approved by the appropriate TTB officer. The importer shall, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization for any alternate method or procedure may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered. The importer shall retain, as part of his records, any authorization of the appropriate TTB officer under this section.
</FP>
<CITA TYPE="N">[26 FR 8190, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. TTB-16, 69 FR 52424, Aug. 26, 2004; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.27" NODE="27:2.0.1.1.2.3.68.7" TYPE="SECTION">
<HEAD>§ 41.27   Emergency variations from requirements.</HEAD>
<P>The appropriate TTB officer may approve methods of operation other than as specified in this part, where he finds that an emergency exists and the proposed variations from the specified requirements are necessary, and the proposed variations—
</P>
<P>(a) Will afford the security and protection to the revenue intended by the prescribed specifications,
</P>
<P>(b) Will not hinder the effective administration of this part, and
</P>
<P>(c) Will not be contrary to any provision of law.
</P>
<FP>Variations from requirements granted under this section are conditioned on compliance with the procedures, conditions, and limitations set forth in the approval of the application. Failure to comply in good faith and with such procedures, conditions, and limitations shall automatically terminate the authority for such variations and the importer thereupon shall fully comply with the prescribed requirements of regulations from which the variations were authorized. Authority for any variations may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered by the continuation of such variation. Where an importer desires to employ such variation, he shall submit a written application to do so, in triplicate, to the appropriate TTB officer. The application shall describe the proposed variations and set forth the reasons therefor. Variations shall not be employed until the application has been approved. The importer shall retain, as part of his records, any authorization of the appropriate TTB officer under this section.
</FP>
<CITA TYPE="N">[26 FR 8190, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. TTB-16, 69 FR 52424, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.28" NODE="27:2.0.1.1.2.3.68.8" TYPE="SECTION">
<HEAD>§ 41.28   Penalties and forfeitures.</HEAD>
<P>Anyone who fails to comply with the provisions of this part becomes liable to the civil and criminal penalties, and forfeitures, provided by law.
</P>
<SECAUTH TYPE="N">(72 Stat. 1425, 1426; 26 U.S.C. 5761, 5762, 5763)
</SECAUTH>
<CITA TYPE="N">[26 FR 8190, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 41.29" NODE="27:2.0.1.1.2.3.68.9" TYPE="SECTION">
<HEAD>§ 41.29   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.41, Delegation of the Administrator's Authorities in 27 CFR Part 41, Importation of Tobacco Products and Cigarette Papers and Tubes. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-16, 69 FR 52424, Aug. 26, 2004, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.1.2.4" TYPE="SUBPART">
<HEAD>Subpart D—Taxes</HEAD>


<DIV7 N="68" NODE="27:2.0.1.1.2.4.68" TYPE="SUBJGRP">
<HEAD>Tax Rates</HEAD>


<DIV8 N="§ 41.30" NODE="27:2.0.1.1.2.4.68.1" TYPE="SECTION">
<HEAD>§ 41.30   Pipe tobacco and roll-your-own tobacco tax rates.</HEAD>
<P>(a) <I>Tax rates.</I> Pipe tobacco and roll-your-own tobacco are taxed at the following rates under 26 U.S.C. 5701(f) and (g), respectively:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate per pound* for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Pipe tobacco</TD><TD align="left" class="gpotbl_cell">$ 1.0969</TD><TD align="left" class="gpotbl_cell">$ 2.8311
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Roll-your-own tobacco</TD><TD align="left" class="gpotbl_cell">$ 1.0969</TD><TD align="left" class="gpotbl_cell">$ 24.78
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* Prorate tax for fractions of a pound.</P></DIV></DIV>
<P>(b) <I>Classification.</I> (1) Pipe tobacco and roll-your-own tobacco, before removal subject to tax, must be put up in packages that conform to the requirements of § 41.71 and of § 41.72a or § 41.72b as appropriate.
</P>
<P>(2) Any tobacco that has been processed and that is removed in a package, as that term is defined in § 41.11, that does not bear the notice for smokeless tobacco prescribed in § 41.72 or the notice for pipe tobacco prescribed in § 41.72a is deemed to be roll-your-own tobacco and subject to tax at the rate applicable to roll-your-own tobacco. A container of processed tobacco, the contents of which weigh 10 pounds or less (including any added non-tobacco ingredients or constituents), that is removed within the meaning of this part for any purpose other than destruction, export, delivery as a sample to a manufacturer of processed tobacco or tobacco products for the purpose of soliciting orders of processed tobacco, or for scientific testing or testing of equipment that results in the destruction of the processed tobacco or the return of the processed tobacco, is deemed to be a package offered for sale or delivery to the ultimate consumer.
</P>
<P>(3) Subject to paragraph (b)(4) of this section, any tobacco that has been processed and that is removed in a package, as that term is defined in § 41.11, is deemed to be roll-your-own tobacco and subject to tax at the rate applicable to roll-your-own tobacco, even though the package bears the notice required for pipe tobacco under § 41.72a, if:
</P>
<P>(i) The package does not bear the declaration “pipe tobacco” in direct conjunction with, parallel to, and in substantially the same conspicuousness of type and background as the brand name each time the brand name appears on the package; or
</P>
<P>(ii) The package or accompanying materials bear any representation that would suggest a use other than as pipe tobacco. The term 'accompanying materials' includes, but is not limited to, any point of sale advertising or other printed product communications issued by the manufacturer or importer of pipe tobacco products. In addition, the inclusion of cigarette papers or tubes in a package bearing a 'pipe tobacco' declaration will suggest a use other than pipe tobacco.
</P>
<P>(4) During the period from June 22, 2009, through March 23, 2010, importers may continue to remove products as pipe tobacco in packages that do not bear the declaration “pipe tobacco” in the manner prescribed in paragraph (b)(3)(i) of this section.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5702 and 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14483, Mar. 31, 2009, as amended by T.D. TTB-78, 74 FR 29415, June 22, 2009; T.D. TTB-81, 74 FR 48654, Sept. 24, 2009; T.D. TTB-104, 77 FR 37304, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 41.31" NODE="27:2.0.1.1.2.4.68.2" TYPE="SECTION">
<HEAD>§ 41.31   Cigar tax rates.</HEAD>
<P>(a) Cigars are taxed at the following rates under 26 U.S.C. 5701(a):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Type and amount
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Small cigars per thousand</TD><TD align="left" class="gpotbl_cell">$1.828</TD><TD align="left" class="gpotbl_cell">$50.33
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Large cigars*
</TD><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row">• percentage of sale price</TD><TD align="left" class="gpotbl_cell">20.719%</TD><TD align="left" class="gpotbl_cell">52.750%
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">• but not to exceed—</TD><TD align="left" class="gpotbl_cell">$48.75 per thousand</TD><TD align="left" class="gpotbl_cell">$0.4026 per cigar.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* For large cigars: Until March 31, 2009, the percentage tax rate applies when the sale price is $235.294 per thousand or less, and the flat tax rate applies when the sale price is more than $235.294 per thousand. On and after April 1, 2009, the percentage tax rate applies when the sale price is $763.222 or less per thousand cigars, and the flat tax rate applies when the sale price is more than $763.222 per thousand cigars.</P></DIV></DIV>
<P>(b) See § 41.39 of this part for rules concerning determination of sale price of large cigars.
</P>
<P>(c) Cigars not exempt from tax under 26 U.S.C. chapter 52 and the provisions of this part which are removed but not intended for sale shall be taxed at the same rate as similar cigars removed for sale.
</P>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71942, Dec. 22, 1999. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-75, 74 FR 14484, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.32" NODE="27:2.0.1.1.2.4.68.3" TYPE="SECTION">
<HEAD>§ 41.32   Cigarette tax rates.</HEAD>
<P>Cigarettes are taxed at the following rates under 26 U.S.C. 5701(b):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate per thousand for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Small cigarettes</TD><TD align="left" class="gpotbl_cell">$19.50</TD><TD align="left" class="gpotbl_cell">$50.33
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Large cigarettes up to 6
<fr>1/2</fr>″ long</TD><TD align="left" class="gpotbl_cell">$40.95</TD><TD align="left" class="gpotbl_cell">$105.69
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Large cigarettes over 6
<fr>1/2</fr>″ long</TD><TD align="left" class="gpotbl_cell" colspan="2">Taxed at the rate for small cigarettes, counting each 2
<fr>3/4</fr> or fraction thereof of the length of each as one cigarette.</TD></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14484, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.33" NODE="27:2.0.1.1.2.4.68.4" TYPE="SECTION">
<HEAD>§ 41.33   Smokeless tobacco tax rates.</HEAD>
<P>Smokeless tobacco products are taxed at the following rates under 26 U.S.C. 5701(e):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate per pound* for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Snuff</TD><TD align="left" class="gpotbl_cell">$0.585</TD><TD align="left" class="gpotbl_cell">$1.51
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Chewing tobacco</TD><TD align="left" class="gpotbl_cell">$0.195</TD><TD align="left" class="gpotbl_cell">$0.5033
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* Prorate tax for fractions of a pound.</P></DIV></DIV>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14484, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.34" NODE="27:2.0.1.1.2.4.68.5" TYPE="SECTION">
<HEAD>§ 41.34   Cigarette papers.</HEAD>
<P>Cigarette papers are taxed at the following rates under 26 U.S.C. 5701(c):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate for each 50 papers* for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cigarette papers up to 6
<fr>1/2</fr> long</TD><TD align="left" class="gpotbl_cell">$0.0122</TD><TD align="left" class="gpotbl_cell">$0.0315
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cigarette papers over 6
<fr>1/2</fr>″ long</TD><TD align="left" class="gpotbl_cell" colspan="2">Use rates above, but count each 2
<fr>3/4</fr>″ or fraction thereof of the length of each as one cigarette paper.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* Tax rate for less than 50 papers is the same. The tax is not prorated.</P></DIV></DIV>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14484, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.35" NODE="27:2.0.1.1.2.4.68.6" TYPE="SECTION">
<HEAD>§ 41.35   Cigarette tubes.</HEAD>
<P>Cigarette tubes are taxed at the following rates under 26 U.S.C. 5701(d):
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Product
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Tax rate for each 50 tubes* for removals during the following periods:
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">2002 to
<br/>March 31, 2009
</TH><TH class="gpotbl_colhed" scope="col">April 1, 2009 and after
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cigarette tubes up to 6
<fr>1/2</fr> long</TD><TD align="left" class="gpotbl_cell">$0.0244</TD><TD align="left" class="gpotbl_cell">$ 0.0630
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Cigarette tubes over 6
<fr>1/2</fr> long</TD><TD align="left" class="gpotbl_cell" colspan="2">Use rates above, but count each 2
<fr>3/4</fr> or fraction thereof of the length of each as one cigarette tube.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">* Tax rate for less than 50 tubes is the same. The tax is not prorated.</P></DIV></DIV>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14484, Mar. 31, 2009, as amended by T.D. TTB-85, 75 FR 42607, July 22, 2010]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="69" NODE="27:2.0.1.1.2.4.69" TYPE="SUBJGRP">
<HEAD>Classification of Large Cigars and Cigarettes</HEAD>


<DIV8 N="§ 41.37" NODE="27:2.0.1.1.2.4.69.7" TYPE="SECTION">
<HEAD>§ 41.37   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 41.38" NODE="27:2.0.1.1.2.4.69.8" TYPE="SECTION">
<HEAD>§ 41.38   Cigarettes.</HEAD>
<P>For internal revenue tax purposes, small cigarettes are designated Class A and large cigarettes are designated Class B.
</P>
<SECAUTH TYPE="N">(72 Stat. 1414; 26 U.S.C. 5701)
</SECAUTH>
<CITA TYPE="N">[26 FR 8191, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 41.39" NODE="27:2.0.1.1.2.4.69.9" TYPE="SECTION">
<HEAD>§ 41.39   Determination of sale price of large cigars.</HEAD>
<P>The tax imposed on large cigars is computed based on the sale price (the price for which the large cigars are sold by the importer or United States manufacturer). In addition to money, goods or services exchanged for cigars may be considered as part of the sale price. See § 40.22(b) of this chapter for information on determining the sale price in special cases. See § 41.40 of this chapter regarding liability for tax on large cigars, not put up in packages, released from customs custody without payment of tax for delivery to a domestic manufacturer of tobacco products.
</P>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71944, Dec. 22, 1999; T.D. ATF-422, 64 FR 71948, Dec. 22, 1999; T.D. ATF-422a, 65 FR 15058, Mar. 31, 2000; T.D. ATF-460, 66 FR 39093, July 27, 2001; 78 FR 38568, June 27, 2013]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="70" NODE="27:2.0.1.1.2.4.70" TYPE="SUBJGRP">
<HEAD>Liability for and Payment of Taxes</HEAD>


<DIV8 N="§ 41.40" NODE="27:2.0.1.1.2.4.70.10" TYPE="SECTION">
<HEAD>§ 41.40   Persons liable for tax.</HEAD>
<P>The importer of tobacco products or cigarette papers and tubes is liable for the internal revenue taxes imposed thereon by 26 U.S.C. 5701 or 7652, except when tobacco products or cigarette papers or tubes imported or brought into the United States (other than those previously exported and returned) are released from customs custody, without payment of tax as provided under 26 U.S.C. 5704(c). Under section 5704(c), tobacco products and cigarette papers and tubes, imported or brought into the United States, may be released from customs custody, without payment of tax, for delivery to the proprietor of an export warehouse, or to a manufacturer of tobacco products or cigarette papers and tubes if such articles are not put up in packages. Under these circumstances the transferee will become liable for the internal revenue tax on these articles upon release from customs custody, and the importer will thereupon be relieved from the liability for the tax. However, if the transferee is also the importer, the importer will not be relieved from the liability for the tax.
</P>
<CITA TYPE="N">[78 FR 38568, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.41" NODE="27:2.0.1.1.2.4.70.11" TYPE="SECTION">
<HEAD>§ 41.41   Determination and payment of tax.</HEAD>
<P>Tobacco products and cigarette papers and tubes imported or brought into the United States, on which internal revenue taxes are due and payable, are not eligible for release from customs custody until those taxes have been determined.
</P>
<CITA TYPE="N">[78 FR 38569, June 27, 2013]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="71" NODE="27:2.0.1.1.2.4.71" TYPE="SUBJGRP">
<HEAD>Exemptions From Taxes and Permits</HEAD>


<DIV8 N="§ 41.50" NODE="27:2.0.1.1.2.4.71.12" TYPE="SECTION">
<HEAD>§ 41.50   Exemptions.</HEAD>
<P>The Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) and the customs regulations (19 CFR chapter I) provide for certain exemptions from internal revenue taxes with respect to tobacco products and cigarette papers and tubes imported into the United States. These exemptions include, but are not limited to, certain importations in passengers' baggage, for use of crew members, and by foreign officials. Persons importing tobacco products and cigarette papers and tubes as described in this section are not required to obtain a permit.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. ATF-284, 54 FR 12190, Mar. 24, 1989; T.D. ATF-422, 64 FR 71949, Dec. 22, 1999; 78 FR 38569, June 27, 2013; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="72" NODE="27:2.0.1.1.2.4.72" TYPE="SUBJGRP">
<HEAD>Assessment of Taxes</HEAD>


<DIV8 N="§ 41.60" NODE="27:2.0.1.1.2.4.72.13" TYPE="SECTION">
<HEAD>§ 41.60   Assessment.</HEAD>
<P>Whenever any person required by law to pay internal revenue tax on tobacco products or cigarette papers or tubes fails to pay such tax, the tax shall be ascertained and assessed against such person, subject to the limitations prescribed in 26 U.S.C. 6501. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. Except in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error, no such assessment shall be made until and after notice has been afforded such person to show cause against assessment. The person will be allowed 45 days from the date of such notice to show cause, in writing, against such assessment.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417; 26 U.S.C. 5703)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="73" NODE="27:2.0.1.1.2.4.73" TYPE="SUBJGRP">
<HEAD>Customs' Collection of Taxes</HEAD>


<DIV8 N="§ 41.62" NODE="27:2.0.1.1.2.4.73.14" TYPE="SECTION">
<HEAD>§ 41.62   Customs collection of internal revenue taxes on tobacco products and cigarette papers and tubes imported or brought into the United States.</HEAD>
<P>Internal revenue taxes on tobacco products and cigarette papers and tubes imported or brought into the United States, which are to be paid to the Port Director of Customs or other authorized customs officer, in accordance with this part, must be collected, accounted for, and deposited as internal revenue collections by the Port Director of Customs in accordance with customs procedures and regulations.
</P>
<CITA TYPE="N">[78 FR 38569, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.63" NODE="27:2.0.1.1.2.4.73.15" TYPE="SECTION">
<HEAD>§ 41.63   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) Each importer who was liable, during a calendar year, for a gross amount equal to or exceeding five million dollars in taxes on cigars, cigarettes, cigarette papers, and cigarette tubes combining tax liabilities incurred under this part and part 40 of this chapter, shall use a commercial bank in making payment by electronic fund transfer (EFT) of such taxes during the succeeding calendar year. Payment of such taxes by cash, check, or money order is not authorized for an importer who is required, by this section, to make remittances by EFT. For purposes of this section, the dollar amount of tax liability is defined as the gross tax liability on all taxable withdrawals and importations (including similar products brought into the United States from Puerto Rico or the Virgin Islands) during the calendar year, without regard to any drawbacks, credits, or refunds, for all premises from which such activities are conducted by the taxpayer.
</P>
<P>(b) For the purposes of this section, a taxpayer includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place it appears in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT.
</P>
<P>(c) For the purposes of this section, (1) electronic fund transfer or EFT means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer of magnetic tape, so as to order, instruct, or authorize a financial institution to either debit or credit an account, in accordance with procedures established by U.S. Customs and Border Protection, and (2) electronic fund transfer or EFT does not have the meaning defined in § 41.11 for use elsewhere in this part.
</P>
<P>(d) An importer who is required by this section to make remittances by EFT, shall make the EFT remittance in accordance with the requirements of U.S. Customs and Border Protection.
</P>
<SECAUTH TYPE="N">(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); Sec. 202, Pub. L. 85-859, 72 Stat. 1417, as amended (26 U.S.C. 5703))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-245, 52 FR 534, Jan. 7, 1987, as amended by T.D. ATF-384, 61 FR 54095, Oct. 17, 1996. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:2.0.1.1.2.5" TYPE="SUBPART">
<HEAD>Subpart E—Packages</HEAD>


<DIV8 N="§ 41.71" NODE="27:2.0.1.1.2.5.74.1" TYPE="SECTION">
<HEAD>§ 41.71   Package.</HEAD>
<P>All tobacco products, cigarette papers and tubes, except as provided in § 41.75, shall, before removal subject to internal revenue tax, be put up in packages which shall be of such construction as will securely contain the articles therein and maintain the notice thereon as required by this subpart. No package of tobacco products or cigarette papers or tubes shall have contained in, attached to, or stamped, marked, written, or printed thereon (a) any certificate, coupon, or other device purporting to be or to represent a ticket, chance, share, or an interest in, or dependent on, the event of a lottery, (b) any indecent or immoral picture, print, or representation, or (c) any statement or indication that United States tax has been paid. No person may purchase, receive, possess (except for personal consumption), offer for sale, or sell or otherwise dispose of, after removal, any tobacco products that are not put up in packages bearing the marks, labels, and notices, as required under this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5723 and 5751)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-78, 74 FR 29415, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.72" NODE="27:2.0.1.1.2.5.74.2" TYPE="SECTION">
<HEAD>§ 41.72   Notice for smokeless tobacco.</HEAD>
<P>(a) <I>Product designation.</I> Every package of chewing tobacco or snuff shall, before removal subject to internal revenue tax, have adequately imprinted thereon, or on a label securely affixed thereto, the designation “chewing tobacco” or “snuff.” As an alternative, packages of chewing tobacco may be designated “Tax Class C,” and packages of snuff may be designated “Tax Class M.”
</P>
<P>(b) <I>Product weight.</I> Every package of chewing tobacco or snuff shall, before removal subject to internal revenue tax, have adequately imprinted thereon, or on a label securely affixed thereto, a clear statement of the actual pounds and ounces of the product contained therein. As an alternative, the shipping cases containing packages of chewing tobacco or snuff may, before removal, have adequately imprinted thereon, or on a label securely affixed thereto, a clear statement, in pounds and ounces, of the total weight of the product, the tax class of the product, and the total number of the packages of product contained therein.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0502)
</APPRO>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-446, 66 FR 16602, Mar. 27, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 41.72a" NODE="27:2.0.1.1.2.5.74.3" TYPE="SECTION">
<HEAD>§ 41.72a   Notice for pipe tobacco.</HEAD>
<P>(a) <I>Product designation.</I> Every package of pipe tobacco shall, before removal subject to internal revenue tax, have adequately imprinted thereon, or on a label securely fixed thereto, the designation “pipe tobacco.” 
</P>
<P>(b) <I>Product weight.</I> Every package of pipe tobacco shall, before removal subject to internal revenue tax, have adequately imprinted thereon, or on a label securely affixed thereto, a clear statement of the actual pounds and ounces of the product contained therein.
</P>
<CITA TYPE="N">[T.D. ATF-289, 54 FR 48841, Nov. 27, 1989. Redesignated by T.D. ATF-381, 61 FR 37004, July 16, 1996, as amended by T.D. TTB-78, 74 FR 29415, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.72b" NODE="27:2.0.1.1.2.5.74.4" TYPE="SECTION">
<HEAD>§ 41.72b   Notice for roll-your-own tobacco.</HEAD>
<P>(a) <I>Product designation.</I> Every package of roll-your-own tobacco, before removal subject to tax, must have adequately imprinted on it, or on a label securely affixed to it, the applicable designation “roll-your-own tobacco”, “cigarette tobacco”, “cigarette wrapper”, “cigar tobacco” or “cigar wrapper”.
</P>
<P>(b) <I>Product weight.</I> Before removal subject to tax, roll-your-own tobacco must have a clear statement of the actual weight in pounds and ounces of the product in the package. This statement must be adequately imprinted on, or on a label securely affixed to, the package. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0091)
</APPRO>
<CITA TYPE="N">[T.D. ATF-429, 65 FR 57547, Sept. 25, 2000, as amended by T.D. TTB-78, 74 FR 29415, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.72c" NODE="27:2.0.1.1.2.5.74.5" TYPE="SECTION">
<HEAD>§ 41.72c   Package use-up rule.</HEAD>
<P>(a) During the period from June 22, 2009, through March 23, 2010, an importer of tobacco products may remove packages of pipe tobacco or roll-your-own tobacco that do not meet the requirements of § 41.72a(a) or § 41.72b(a), provided that such packages bear the designation “Tax Class L” (to designate pipe tobacco) or “Tax Class J” (to designate roll-your-own tobacco) and were in use prior to June 22, 2009.
</P>
<P>(b) During the period from June 22, 2009, through March 23, 2010, an importer may remove roll-your-own tobacco for which the applicable designation is “cigar tobacco,” “cigarette wrapper,” or “cigar wrapper” even if the packages of such products do not meet the requirements of § 41.72b.
</P>
<CITA TYPE="N">[T.D. TTB-81, 74 FR 48654, Sept. 24, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.73" NODE="27:2.0.1.1.2.5.74.6" TYPE="SECTION">
<HEAD>§ 41.73   Notice for cigars.</HEAD>
<P>Before removal subject to internal revenue tax, every package of cigars, except as provided in § 41.75, shall have adequately imprinted on it, or on a label securely affixed to it—
</P>
<P>(a) The designation “cigars”;
</P>
<P>(b) The quantity of cigars contained in the package; and
</P>
<P>(c) For small cigars, the classification of the product for tax purposes (i.e., either “small” or “little”).
</P>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18310, Mar. 24, 1981. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.74" NODE="27:2.0.1.1.2.5.74.7" TYPE="SECTION">
<HEAD>§ 41.74   Notice for cigarettes.</HEAD>
<P>Every package of cigarettes, except as provided in § 41.75, shall, before removal subject to internal revenue tax, have adequately imprinted thereon, or on a label securely affixed thereto, the designation “cigarettes”, the quantity of such product contained therein; and the classification for tax purposes, i.e., for small cigarettes either “small” or “Class A”, and for large cigarettes, either “large” or “Class B”.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[26 FR 8192, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, further redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.75" NODE="27:2.0.1.1.2.5.74.8" TYPE="SECTION">
<HEAD>§ 41.75   Exemptions.</HEAD>
<P>The provisions of this subpart requiring that tobacco products and cigarette papers and tubes be put up in packages and that proper notice be placed on such packages shall not apply to imported tobacco products and cigarette papers and tubes authorized to be released from customs custody, without payment of internal revenue tax, pursuant to § 41.50, and shall not apply to tobacco products imported in passengers' baggage, or by mail where the value does not exceed $250, where such products are solely for the personal consumption of the importer or for disposition as his bona fide gift.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-232, 51 FR 28085, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:2.0.1.1.2.6" TYPE="SUBPART">
<HEAD>Subpart F—Tobacco Products and Cigarette Papers and Tubes, Imported Into or Returned to the United States</HEAD>


<DIV8 N="§ 41.81" NODE="27:2.0.1.1.2.6.74.1" TYPE="SECTION">
<HEAD>§ 41.81   Taxpayment.</HEAD>
<P>(a) <I>General.</I> This section applies to tobacco products and cigarette papers and tubes upon which internal revenue tax is payable and which are imported into the United States from a foreign country or are brought into the United States from Puerto Rico, the Virgin Islands, or a possession of the United States. For provisions relating to restrictions on the importation of previously exported tobacco products and cigarette papers and tubes, see § 41.82.
</P>
<P>(b) <I>Method of payment.</I> Except for articles imported or brought into the United States as provided in §§ 41.85 and 41.85a, the internal revenue tax must be determined before the tobacco products, cigarette papers, or cigarette tubes are released from customs custody. The tax must be paid on the basis of a return, and the customs form (including any electronic transmissions) by which the tobacco products, cigarette papers, or cigarette tubes are duty- and tax-paid to CBP will be treated as a return for purposes of this part.
</P>
<P>(c) <I>Required information.</I> In the case of tobacco products and cigarette papers and tubes imported into the United States for consumption, the importer, if filing electronically, must file with U.S. Customs and Border Protection (CBP) the information specified in paragraphs (c)(1) through (7) of this section at the time of filing the entry or entry summary, as appropriate, along with any other information that is required by CBP to be filed with the entry or entry summary for purposes of determining and collecting the Federal excise tax and administering the provisions of the Internal Revenue Code. Any information required under paragraphs (c)(1) through (7) of this section that is required by, and filed with, CBP as part of the entry or entry summary for purposes of meeting CBP requirements will also satisfy the requirements of this section. Regardless of the method of filing, the importer must retain as a record the information required by this section, any information provided to CBP to meet CBP requirements, and any supporting documentation and make such records available upon request by the appropriate TTB officer or a customs officer.
</P>
<P>(1) <I>All tobacco products.</I> For all tobacco products, the following information is required:
</P>
<P>(i) The number of the tobacco product importer permit that is issued under subpart K of this part;
</P>
<P>(ii) The employer identification number (EIN) assigned to the importer by the Internal Revenue Service and provided by the importer on its permit application to TTB made on TTB Form 5230.4;
</P>
<P>(iii) The name and address of the ultimate consignee;
</P>
<P>(iv) The information specific to each tobacco product set forth in paragraphs (c)(2) through (6) of this section.
</P>
<P>(2) <I>Cigarettes.</I> For cigarettes, in addition to the information required in paragraph (c)(1) of this section, the importer must provide a description of the product for Internal Revenue Code purposes, including “cigarettes” and either “small” (or “class A”) or “large” (or “class B”) and must also provide the number of cigarettes.
</P>
<P>(3) <I>Cigars.</I> For cigars, in addition to the information required in paragraph (c)(1) of this section, the importer must provide:
</P>
<P>(i) The number of cigars imported under each Harmonized Tariff Schedule of the United States (HTSUS) code number;
</P>
<P>(ii) The description of the cigars for Internal Revenue Code purposes, including “cigars” and either “large” or “small”;
</P>
<P>(iii) For large cigars with a sale price of $763.222 or less per 1,000, the number and sale price (the price for which sold by the importer) per 1,000 of such cigars; and
</P>
<P>(iv) For large cigars with a sale price of more than $763.222 per 1,000, the number of such cigars.
</P>
<P>(4) <I>Smokeless tobacco.</I> For smokeless tobacco, in addition to the information required in paragraph (c)(1) of this section, the importer must provide a description of the product for Internal Revenue Code purposes, as either “chewing tobacco” or “snuff” and will state the number of pounds and ounces or kilograms and grams of the product.
</P>
<P>(5) <I>Pipe tobacco.</I> For pipe tobacco, in addition to the information required in paragraph (c)(1) of this section, the importer must provide a description of the product under the Internal Revenue Code, as “pipe tobacco,” and will also state the number of pounds and ounces or kilograms and grams of the product.
</P>
<P>(6) <I>Roll-your-own tobacco.</I> For roll-your-own tobacco, in addition to the information required in paragraph (c)(1) of this section, the importer must provide a description of the product for Internal Revenue Code purposes, as “roll-your-own tobacco,” “cigarette tobacco,” “cigarette wrapper,” “cigar tobacco,” or “cigar wrapper.” The importer must also state the number of pounds and ounces or kilograms and grams of the product.
</P>
<P>(7) <I>Cigarette papers and cigarette tubes.</I> For cigarette papers and cigarette tubes, the importer must provide:
</P>
<P>(i) The classification of the product for Internal Revenue Code purposes, including either “cigarette papers” or “cigarette tubes” and an indication of whether the length of the papers or tubes is over 6
<FR>1/2</FR> inches;
</P>
<P>(ii) The employer identification number (EIN) assigned to the importer by the Internal Revenue Service;
</P>
<P>(iii) The name and address of the ultimate consignee; and
</P>
<P>(iv) The total taxable quantity of each.
</P>
<P>(d) <I>Exceptions.</I> The provisions of this section shall not apply to:
</P>
<P>(1) Tobacco products, cigarette papers, or cigarette tubes released from customs custody and transferred in bond to a U.S. manufacturer of tobacco products or cigarette papers and tubes (see §§ 41.85, 41.85a, or 41.135); 
</P>
<P>(2) Puerto Rican products on which the tax is prepaid or deferred (see subpart G); and
</P>
<P>(3) Tax payments of cigars from class 6, customs bonded manufacturing warehouses (see § 41.151).
</P>
<SECAUTH TYPE="N">(68A Stat. 907, as amended (26 U.S.C. 7652); sec. 202, Pub. L. 85-859, 72 Stat. 1417 (26 U.S.C. 5703))
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[T.D. ATF-27, 41 FR 23951, June 14, 1976] 
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 41.81, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV7 N="74" NODE="27:2.0.1.1.2.6.74" TYPE="SUBJGRP">
<HEAD>Release From Customs Custody of Tobacco Products and Cigarette Papers and Tubes Without Payment of Tax or Certain Duty</HEAD>


<DIV8 N="§ 41.82" NODE="27:2.0.1.1.2.6.74.2" TYPE="SECTION">
<HEAD>§ 41.82   Restrictions on tobacco products labeled for export.</HEAD>
<P>(a) The provisions of this section apply to tobacco products and cigarette papers and tubes manufactured in the United States and labeled for exportation under parts 40 and 44 of this chapter.
</P>
<P>(b) Articles described in paragraph (a) of this section may be transferred to or removed from the premises of a manufacturer or an export warehouse proprietor only if such articles are being transferred or removed without tax as provided in this part.
</P>
<P>(c) Articles described in paragraph (a) of this section may only be imported or brought into the United States, after their exportation, under the provisions of 26 U.S.C. 5704(d), by release from Customs custody for delivery to the original manufacturer of such tobacco products or cigarette papers or tubes or to the proprietor of an export warehouse authorized by such manufacturer to receive such articles. These products are transferred in bond and are released from Customs custody without payment of that part of the duty attributable to internal revenue tax.
</P>
<P>(d) Articles described in paragraph (a) of this section that are not put up in packages may be imported or brought into the United States under 26 U.S.C. 5704(c) by release from Customs custody without payment of tax for delivery to the original manufacturer of such articles. However, because such articles are also eligible for release under 26 U.S.C. 5704(d), such articles will be treated as though released under section 5704(d), due to the penalty provisions in section 5761(c).
</P>
<P>(e) Articles described in paragraph (a) of this section may not be sold or held for sale for domestic consumption in the United States unless such articles are removed from their export packaging and repackaged by the original manufacturer into new packaging that does not contain an export label. The new packages, marks and notices must conform to the requirements of 27 CFR part 40.
</P>
<P>(f) The provisions of this section shall apply to articles labeled for export even if the packaging or the appearance of such packaging to the consumer of such articles has been modified or altered by a person other than the original manufacturer so as to remove or conceal or attempt to remove or conceal (including by placement of a sticker over) any export label.
</P>
<P>(g) For purposes of this section, an article is labeled for export or contains an export label if it bears the mark, label, or notice required by § 44.185 of this chapter.
</P>
<P>(h) For purposes of this section, references to exportation shall be treated as including a reference to shipment to the Commonwealth of Puerto Rico.
</P>
<P>(i) The provisions of this section do not apply to any person who, when entering U.S. manufactured tobacco products labeled for export under parts 40 and 44 of this chapter, claims and is granted an exemption from duty and tax for such products under chapter 98 of the Harmonized Tariff Schedule of the United States. The quantity of tobacco products entered may not exceed the quantity limit imposed on such products under the applicable tariff provision. A traveler claiming an exemption under this subsection upon arrival at the border may voluntarily relinquish to U.S. Customs and Border Protection at the time of entry any excess of such quantity without incurring the penalty under section § 41.83.
</P>
<P>(j) For civil penalties and forfeiture provisions related to violations of this section, see § 41.83. For a criminal penalty applicable to any violation of this section see 26 U.S.C. 5762(b).
</P>
<CITA TYPE="N">[T.D. ATF-465, 66 FR 45618, Aug. 29, 2001. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.83" NODE="27:2.0.1.1.2.6.74.3" TYPE="SECTION">
<HEAD>§ 41.83   Penalties and forfeiture for products labeled or shipped for export.</HEAD>
<P>Except for the return of exported products that are specifically authorized under § 41.82(b) and (c):
</P>
<P>(a) Every person who sells, relands, or receives within the jurisdiction of the United States any tobacco products or cigarette papers or tubes which have been labeled or shipped for exportation under parts 40 and 44 of this chapter;
</P>
<P>(b) Every person who sells or receives such relanded tobacco products or cigarette papers or tubes; and,
</P>
<P>(c) Every person who aids or abets in such selling, relanding, or receiving, shall, in addition to the tax and any other penalty provided for in title 26 U.S.C., be liable for a penalty equal to the greater of $1,000 or 5 times the amount of the tax imposed by title 26 U.S.C. All tobacco products and cigarette papers and tubes relanded within the jurisdiction of the United States shall be forfeited to the United States and destroyed. All vessels, vehicles and aircraft used in such relanding or in removing such products, papers, and tubes from the place where relanded, shall be forfeited to the United States.
</P>
<P>(d) The provisions of this section do not apply to any person who, when entering U.S. manufactured tobacco products labeled for export, claims and is granted an exemption from duty and tax for such products under chapter 98 of the Harmonized Tariff Schedule of the United States. The quantity of tobacco products entered may not exceed the quantity limit imposed on such products under the applicable tariff provision. A traveler claiming an exemption under this subsection upon arrival at the border may voluntarily relinquish to U.S. Customs and Border Protection at the time of entry any excess of such quantity without incurring the penalty under this section.
</P>
<P>(e) For purposes of this section, references to exportation shall be treated as including a reference to shipment to the Commonwealth of Puerto Rico.
</P>
<CITA TYPE="N">[T.D. ATF-465, 66 FR 45619, Aug. 29, 2001. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.84" NODE="27:2.0.1.1.2.6.74.4" TYPE="SECTION">
<HEAD>§ 41.84   Entry for warehousing.</HEAD>
<P>(a) <I>General.</I> Except as provided in paragraph (b) of this section, in the case of an entry for warehousing (that is, tobacco products, cigarette papers, or cigarette tubes transferred directly to a customs bonded warehouse or foreign trade zone), the last day for payment of the tax shall not be later than the 14th day after the last day of the semimonthly period during which the products are removed from the first such warehouse, even if the tobacco products, cigarette papers, or cigarette tubes are removed from that customs bonded warehouse or foreign trade zone for transfer to another customs bonded warehouse or foreign trade zone.
</P>
<P>(b) <I>Entry for warehousing of products destined for export.</I> Paragraph (a) of this section does not apply to tobacco products, cigarette papers, or cigarette tubes entered for warehousing and then removed for transfer to another custom bonded warehouse or foreign trade zone that are shown to the satisfaction of the Secretary to be destined for export.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5703(b)(2)(B)(ii), (iii), and (iv))
</SECAUTH>
<CITA TYPE="N">[81 FR 94209, Dec. 22, 2016]








</CITA>
</DIV8>


<DIV8 N="§ 41.85" NODE="27:2.0.1.1.2.6.74.5" TYPE="SECTION">
<HEAD>§ 41.85   Release from customs custody of imported tobacco products or cigarette papers or tubes.</HEAD>
<P>(a) <I>General.</I> This section applies only to tobacco products and cigarette papers and tubes that are not put up into packages in which they will be sold to consumers. Subject to the requirements of § 41.86, the Port Director of Customs or authorized customs officer may release the following articles from customs custody without payment of internal revenue tax under the internal revenue bond of the manufacturer or export warehouse proprietor to whom the articles are released:
</P>
<P>(1) Tobacco products manufactured in a foreign country, the Virgin Islands, or a possession of the United States, for transfer to the bonded premises of a manufacturer of tobacco products or to the bonded premises of an export warehouse proprietor; and
</P>
<P>(2) Cigarette papers and tubes manufactured in a foreign country, the Virgin Islands, or a possession of the United States, for transfer to the factory of manufacturer of cigarette papers and tubes, to an export warehouse proprietor, or to a manufacturer of tobacco products solely for use in the manufacture of cigarettes.
</P>
<P>(b) <I>Products from the Virgin Islands.</I> In addition to the documentation required by § 41.86, in the case of products exported from the Virgin Islands the manufacturer also must file an extension of coverage of the internal revenue bond on TTB F 5000.18, and receive a notice of approval from the appropriate TTB officer, in order to obtain release under paragraph (a)(1) of this section. The extension of coverage must be executed by the principal and the surety and must be in the following form:
</P>
<EXTRACT>
<P>“Whereas the purpose of this extension is to bind the obligors for the purpose of the tax imposed by 26 U.S.C. 7652(b), on tobacco products and cigarette papers and tubes exported from the Virgin Islands and removed from customs custody in the United States without payment of internal revenue tax, for delivery to the principal on said bond.”
</P>
<P>“Now, therefore, the said bond is further specifically conditioned that the principal named therein must pay all taxes imposed by 26 U.S.C. 7652(b) plus penalties, if any, and interest, for which he may become liable with respect to these products exported from the Virgin Islands and removed from customs custody in the United States without payment of internal revenue tax thereon, and must comply with all provisions of law and regulations with respect thereto.”</P></EXTRACT>
<P>(c) <I>Receipt by manufacturer.</I> Articles received into the factory of a manufacturer under this section are subject to the requirements of part 40 of this chapter.
</P>
<CITA TYPE="N">[78 FR 38569, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.85a" NODE="27:2.0.1.1.2.6.74.6" TYPE="SECTION">
<HEAD>§ 41.85a   Release from customs custody of returned articles.</HEAD>
<P>(a) Domestically manufactured tobacco products (classifiable under item 9801.00.80 of the Harmonized Tariff Schedule of the United States, 19 U.S.C. 1202) exported from and returned to the United States without change to the product or the shipping container may be released from customs custody in the United States, under the bond of the original manufacturer or of the export warehouse proprietor who has been authorized by the original manufacturer (see § 41.82), without payment of that part of the duty attributable to internal revenue tax, for delivery to the bonded premises of the original tobacco products manufacturer or to the bonded premises of the export warehouse proprietor.
</P>
<P>(b) Domestically manufactured cigarette papers and tubes (classifiable under item 9801.00.80 of the Harmonized Tariff Schedule of the United States, 19 U.S.C. 1202) exported from and returned to the United States without change to the product or the shipping container may be released from customs custody in the United States, without payment of that part of the duty attributable to internal revenue tax, for delivery to the bonded premises of the original manufacturer of the cigarette papers and tubes or an export warehouse proprietor authorized by the original manufacturer to receive such products.
</P>
<P>(c) Releases under this section must be in accordance with the procedures set forth in § 41.86. Once released, the tobacco products and cigarette papers and tubes are subject to the tax and other provisions of 26 U.S.C. chapter 52 and, as applicable, to the regulations in part 40 of this chapter as if they had not been exported or otherwise removed from internal revenue bond.
</P>
<CITA TYPE="N">[78 FR 38569, June 27, 2013]




</CITA>
</DIV8>


<DIV8 N="§ 41.86" NODE="27:2.0.1.1.2.6.74.7" TYPE="SECTION">
<HEAD>§ 41.86   Entry process for releases without payment of tax.</HEAD>
<P>(a)(1) <I>General.</I> Except as provided in paragraph (c) of this section, in order for tobacco products or cigarette papers or tubes to be released from customs custody without payment of tax under internal revenue bond, as provided in 26 U.S.C. 5704(c) or (d), the information required by this paragraph must be filed electronically with U.S. Customs and Border Protection (CBP). The information must be filed with CBP at the time of filing the entry or entry summary, as appropriate, and it must be filed along with any other information that is required by CBP for purposes of determining and collecting the Federal excise tax and administering the provisions of the Internal Revenue Code. Any information required under paragraph (a)(2) of this section that is submitted to CBP as part of the entry or entry summary for purposes of meeting CBP requirements will also satisfy the requirements of this section. Regardless of the method of filing, the importer must retain as a record the information required by this section, any information provided to CBP for CBP purposes, and any supporting documentation and such records must be available for inspection upon request by the appropriate TTB officer or a customs officer.
</P>
<P>(2) <I>Information required.</I> The manufacturer of tobacco products or cigarette papers or tubes or export warehouse proprietor who wishes to obtain the release of tobacco products or cigarette papers or tubes as described in paragraph (a)(1) of this section must provide the following information, as applicable:
</P>
<P>(i) The number of the permit issued under 27 CFR part 40 to the manufacturer of tobacco products or export warehouse proprietor, or the TTB-assigned number of the manufacturer of cigarette papers or tubes, to whom the products are shipped or consigned;
</P>
<P>(ii) The employer identification number (EIN), assigned by the Internal Revenue Service, of the manufacturer of tobacco products, the manufacturer of cigarette papers or tubes, or the export warehouse proprietor to whom the products are shipped or consigned;
</P>
<P>(iii) The name and address of the ultimate consignee, consistent with the name and address on the permit issued under part 40 of this chapter;
</P>
<P>(iv) For tobacco products, the number of the permit, issued under subpart K of this part, of the importer;
</P>
<P>(v) For tobacco products, the employer identification number (EIN) assigned to the importer by the Internal Revenue Service and provided to TTB by the importer on its permit application to TTB on TTB Form 5230.4;
</P>
<P>(vi) A description of the product consistent with the tax classification of the product under the Internal Revenue Code as described in § 41.81 (for example, “large cigars”); and
</P>
<P>(vii) The quantity of the product for Federal excise tax purposes, by sticks or by pounds and ounces (or kilograms and grams), as applicable.
</P>
<P>(b) <I>Releases without payment of tax</I>—(1) <I>Tobacco products or cigarette papers or tubes put up in packages.</I> Tobacco products or cigarette papers or tubes put up in packages, as defined at § 41.11, may be released without payment of tax only for delivery to the proprietor of an export warehouse (as provided in 26 U.S.C. 5704(c)) or, if classified under chapter 98, subchapter I of the Harmonized Tariff Schedule of the United States (relating to duty on certain articles exported and returned), for delivery to the original manufacturer of such tobacco products or cigarette papers or tubes or to the proprietor of an export warehouse authorized by such manufacturer to receive them (as provided in 26 U.S.C. 5704(d)). If the information required in paragraph (a)(2)(i) through (iii) of this section is not filed with the entry or entry summary, as appropriate, or, if the information required in paragraph (c) of this section is not made available to CBP upon request, the tobacco products, cigarette papers, or cigarette tubes are not eligible for release from customs custody without payment of tax, and no person may remove such products from customs custody without payment of tax.
</P>
<P>(2) <I>Tobacco products or cigarette papers or tubes not put up in packages.</I> Tobacco products or cigarette papers or tubes not put up in packages, as defined at § 41.11, may not be released from customs custody subject to tax, and no person may obtain release of such products from customs custody. Tobacco products or cigarette papers or tubes not put up on packages may be released from customs custody without payment of tax for delivery to the proprietor of an export warehouse, or to a manufacturer of tobacco products or cigarette papers or tubes, as provided in 26 U.S.C. 5704(c). As a result, if the information required in paragraphs (a)(2)(i) through (iii) of this section is not filed with the entry or entry summary, as appropriate, or, if the information required in paragraph (c) of this section is not made available to CBP upon request, tobacco products or cigarette papers or tubes not put up in packages are not eligible for release from customs custody for consumption, and no person may remove such product from customs custody.
</P>
<P>(c) <I>Filing on paper.</I> A manufacturer or export warehouse proprietor who wants to obtain the release of tobacco products or cigarette papers and tubes from customs custody without payment of tax under its internal revenue bond, and who does not file electronically, must prepare a notice of release on TTB F 5200.11 and submit the form to the appropriate TTB officer in accordance with the instructions on the form. The appropriate TTB officer will certify on the TTB F 5200.11 that the manufacturer or export warehouse proprietor has TTB authorization to receive the products. No one filing on paper may obtain release of the products under this section until they have received the TTB F 5200.11 certified by the appropriate TTB officer. The manufacturer or export warehouse proprietor must have possession of the TTB F 5200.11, bearing TTB certification, at the time the products are released from customs custody and must make the form available to a customs officer upon request at such time. After release of the products, the TTB F 5200.11 must be retained by the manufacturer or export warehouse proprietor and made available to the appropriate TTB officer or a customs officer upon request.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0025 and 1513-0064)
</APPRO>
<CITA TYPE="N">[81 FR 94209, Dec. 22, 2016]






</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:2.0.1.1.2.7" TYPE="SUBPART">
<HEAD>Subpart G—Puerto Rican Tobacco Products and Cigarette Papers and Tubes, Brought Into the United States</HEAD>


<DIV8 N="§ 41.101" NODE="27:2.0.1.1.2.7.75.1" TYPE="SECTION">
<HEAD>§ 41.101   General.</HEAD>
<P>(a) Tobacco products and cigarette papers and tubes manufactured in Puerto Rico which are brought into the United States and withdrawn for consumption or sale are subject to the tax imposed by 26 U.S.C. 7652(a), at the rates set forth in 26 U.S.C. 5701.
</P>
<P>(b) The excise taxes collected on tobacco products and cigarette papers and tubes manufactured in Puerto Rico are covered into the Treasury of Puerto Rico. Tobacco products and cigarette papers and tubes are considered as manufactured in Puerto Rico for purposes of 26 U.S.C. 7652(a)(3) if the sum of the cost or value of the materials produced in Puerto Rico, plus the direct costs of processing operations performed in Puerto Rico, equals or exceeds 50 percent of the value of the product when it is brought into the United States.
</P>
<P>(c) The excise tax on tobacco products and cigarette papers and tubes of Puerto Rican manufacture may be prepaid in Puerto Rico prior to shipment of such articles to the United States in accordance with § 41.105. In the case of tobacco products such tax may be paid in Puerto Rico on the basis of a semi-monthly return in accordance with the applicable provisions of this subpart.
</P>
<SECAUTH TYPE="N">(68A Stat. 907, as amended, 72 Stat. 1417, 1418, as amended (26 U.S.C. 7652, 5703, 5704))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-206, 50 FR 15888, Apr. 23, 1985, as amended by T.D. ATF-232, 51 FR 28085, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. ATF-246, 52 FR 669, Jan. 8, 1987; T.D. ATF-422, 64 FR 71950, Dec. 22, 1999. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV7 N="75" NODE="27:2.0.1.1.2.7.75" TYPE="SUBJGRP">
<HEAD>Prepayment of Tax in Puerto Rico on Tobacco products and Cigarette Papers and Tubes</HEAD>


<DIV8 N="§ 41.105" NODE="27:2.0.1.1.2.7.75.2" TYPE="SECTION">
<HEAD>§ 41.105   Prepayment of tax.</HEAD>
<P>To prepay, in Puerto Rico, the internal revenue tax imposed by 26 U.S.C. 7652(a) on tobacco products and cigarette papers and tubes of Puerto Rican manufacture to be shipped to the United States, the shipper must file, or cause to be filed, a tax return, TTB F 5000.25, with full remittance of the tax which will become due on those products. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0090)
</APPRO>
<CITA TYPE="N">[T.D. ATF-444, 73 FR 16756, Mar. 31, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 41.106" NODE="27:2.0.1.1.2.7.75.3" TYPE="SECTION">
<HEAD>§ 41.106   Record of shipment by taxpayer.</HEAD>
<P>(a) <I>Shipments other than noncommercial mail shipments.</I> The taxpayer must ensure that the tax has been prepaid on the tobacco products and cigarette papers and tubes in each shipment. The taxpayer must identify the tobacco products or cigarette papers or tubes by including on the bill of lading or similar record accompanying the shipment the following information:
</P>
<P>(1) The marks and numbers on the shipping containers;
</P>
<P>(2) The number of containers to be shipped;
</P>
<P>(3) The kind of taxable article(s) to be shipped and the rate of tax applicable to each kind of article, as specified in §§ 41.30 through 41.35;
</P>
<P>(4) The number of small cigarettes, large cigarettes, or small cigars to be shipped;
</P>
<P>(5) The number and total sale price of large cigars having a sale price of not more than $235.294 per thousand before April 1, 2009, or a sale price of not more than $763.222 per thousand on and after April 1, 2009, to be shipped;
</P>
<P>(6) The number of large cigars having a sale price of more than $235.294 per thousand before April 1, 2009, or a sale price of more than $763.222 per thousand on and after April 1, 2009, to be shipped;
</P>
<P>(7) The pounds and ounces of chewing tobacco or snuff to be shipped;
</P>
<P>(8) The pounds and ounces of pipe tobacco or roll-your-own tobacco to be shipped;
</P>
<P>(9) The number of cigarette papers or tubes to be shipped;
</P>
<P>(10) The amount of the tax paid for each kind of article under this subpart;
</P>
<P>(11) The name and address of the consignee in the United States to whom the products are to be shipped; and
</P>
<P>(12) A notation identifying the particular TTB F 5000.25 by which the taxes were prepaid.
</P>
<P>(b) <I>Noncommercial mail shipments.</I> Noncommercial mail shipments of tobacco products and cigarette papers and tubes to the United States are exempt from the requirements of paragraph (a) of this section, except that the taxpayer must provide a copy of the TTB F 5000.25 upon the request of an appropriate TTB officer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0108)
</APPRO>
<CITA TYPE="N">[T.D. ATF-444, 73 FR 16757, Mar. 31, 2008, as amended by T.D. TTB-75, 74 FR 14485, Mar. 31, 2009; T.D. TTB-85, 75 FR 42607, July 22, 2010]


</CITA>
</DIV8>


<DIV8 N="§§ 41.107-41.108" NODE="27:2.0.1.1.2.7.75.4" TYPE="SECTION">
<HEAD>§§ 41.107-41.108   [Reserved]</HEAD>
</DIV8>

</DIV7>


<DIV7 N="76" NODE="27:2.0.1.1.2.7.76" TYPE="SUBJGRP">
<HEAD>Deferred Payment of Tax in Puerto Rico on Tobacco Products</HEAD>


<DIV8 N="§ 41.109" NODE="27:2.0.1.1.2.7.76.5" TYPE="SECTION">
<HEAD>§ 41.109   Bond required for deferred taxpayment.</HEAD>
<P>Where a manufacturer of tobacco products in Puerto Rico desires to defer payment in Puerto Rico of the internal revenue tax imposed by 26 U.S.C. 7652(a), on tobacco products of Puerto Rican manufacture coming into the United States, he shall file a bond, TTB F 5210.12, with the appropriate TTB officer, in accordance with the provisions of this subpart. Such bond shall be conditioned on the payment, at the time and in the manner prescribed in this subpart, of the full amount of tax computed under the provisions of this subpart with respect to tobacco products which are released for shipment to the United States on computation of tax. All taxes which are computed under the provisions of this subpart shall be chargeable against the bond, until such taxes are paid, as provided in § 41.112. The bond shall show the location of the factory from which the tobacco products to which it relates are to be shipped.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 43, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-232, 51 FR 28085, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.110" NODE="27:2.0.1.1.2.7.76.6" TYPE="SECTION">
<HEAD>§ 41.110   Record of tax computation and shipment by bonded manufacturer under deferred taxpayment.</HEAD>
<P>Where tobacco products or cigarette papers or tubes are to be shipped to the United States with deferred taxpayment, the bonded manufacturer must calculate the tax prior to shipment. The tax calculation must conform to the information on the bill of lading or a similar record accompanying the shipment, and the date of completing the bill of lading or similar record accompanying the shipment will be treated as the date of computation of the tax. Tobacco products or cigarette papers or tubes may be shipped to the United States in accordance with the provisions of this section only after computation of the tax. The bill of lading or similar record accompanying the shipment must include the following information:
</P>
<P>(a) The marks and numbers on the shipping containers;
</P>
<P>(b) The number of containers to be shipped;
</P>
<P>(c) The kind of taxable article(s) to be shipped and the rate of tax applicable to each kind of article, as specified in §§ 41.30 through 41.35;
</P>
<P>(d) The number of small cigarettes, large cigarettes, or small cigars to be shipped;
</P>
<P>(e) The number and total sale price of large cigars having a sale price of not more than $235.294 per thousand before April 1, 2009, or a sale price of not more than $763.222 per thousand on and after April 1, 2009, to be shipped;
</P>
<P>(f) The number of large cigars having a sale price of more than $235.294 per thousand before April 1, 2009, or a sale price of more than $763.222 per thousand on and after April 1, 2009, to be shipped;
</P>
<P>(g) The pounds and ounces of chewing tobacco or snuff to be shipped;
</P>
<P>(h) The pounds and ounces of pipe tobacco or roll-your-own tobacco to be shipped;
</P>
<P>(i) The number of cigarette papers or tubes to be shipped;
</P>
<P>(j) The amount of the tax to be paid for each kind of article under this subpart; and
</P>
<P>(k) The name and address of the consignee in the United States to whom the products are to be shipped.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0108)
</APPRO>
<CITA TYPE="N">[T.D. ATF-444, 73 FR 16757, Mar. 31, 2008, as amended by T.D. TTB-75, 74 FR 14485, Mar. 31, 2009; T.D. TTB-85, 75 FR 42607, July 22, 2010]


</CITA>
</DIV8>


<DIV8 N="§ 41.111" NODE="27:2.0.1.1.2.7.76.7" TYPE="SECTION">
<HEAD>§ 41.111   Verification of bond and agreement to pay tax.</HEAD>
<P>(a) <I>Verification of bond.</I> Prior to shipment of tobacco products or cigarette papers or tubes to the United States, the manufacturer must verify:
</P>
<P>(1) That there is no default in payment of tax chargeable against the manufacturer's bond on TTB F 5210.12; and
</P>
<P>(2) That the amount of the manufacturer's bond is sufficient or is in the maximum penal sum to cover the tax that will become due on the shipment.
</P>
<P>(b) <I>Agreement to pay tax.</I> The shipment of tobacco products or cigarette papers or tubes by the bonded manufacturer serves as an agreement by the manufacturer to pay the tax on that shipment.
</P>
<CITA TYPE="N">[T.D. ATF-444, 73 FR 16757, Mar. 31, 2008, as amended at T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.112" NODE="27:2.0.1.1.2.7.76.8" TYPE="SECTION">
<HEAD>§ 41.112   Tax return.</HEAD>
<P>The internal revenue taxes imposed by 26 U.S.C. 7652(a), with respect to tobacco products manufactured in Puerto Rico and shipped to the United States on computation of tax under the provisions of this subpart shall be paid on the basis of a semimonthly tax return. The bonded manufacturer of such products shall prepare TTB Form 5000.25 in duplicate, and file the original with the appropriate TTB officer, and maintain one copy for the file for each semimonthly return period. The bonded manufacturer shall execute the return, TTB Form 5000.25, under the penalties of perjury. He shall file a return for each return period at the time specified in § 41.114, regardless of whether tax is due for that return period. However, where the appropriate TTB officer, grants specific authorization, the bonded manufacturer need not file a tax return during the term of such authorization for any period in which tax liability was not incurred under the provisions of this subpart.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0497)
</APPRO>
<CITA TYPE="N">[T.D. ATF-40, 42 FR 5006, Jan. 26, 1977, as amended by T.D. ATF-125, 48 FR 2123, Jan. 18, 1983; T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987; T.D. ATF-277, 53 FR 45269, Nov. 9, 1988. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.113" NODE="27:2.0.1.1.2.7.76.9" TYPE="SECTION">
<HEAD>§ 41.113   Return periods.</HEAD>
<P>Except as otherwise provided in § 41.114, the periods to be covered in the semimonthly tax returns run from the 1st day of the month through the 15th day of that month, and from the 16th day of the month through the last day of that month.
</P>
<CITA TYPE="N">[T.D. TTB-89, 76 FR 3515, Jan. 20, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 41.114" NODE="27:2.0.1.1.2.7.76.10" TYPE="SECTION">
<HEAD>§ 41.114   Time for filing.</HEAD>
<P>(a) <I>General rule.</I> Semimonthly tax returns under this subpart shall be filed by the bonded manufacturer, for each return period, not later than the 14th day after the last day of the return period, except as provided by paragraph (b) of this section. The tax shall be paid in full by remittance at the time the return is filed as prescribed in § 41.115 or § 41.115a.
</P>
<P>(b) <I>Special rule for taxes due for the month of September.</I> (1) <I>Division of second semimonthly period.</I> (i) <I>General.</I> Except as otherwise provided in paragraph (b)(1)(ii) of this section, the second semimonthly period for the month of September is divided into two payment periods, from the 16th day through the 26th day, and from the 27th day through the 30th day. The bonded manufacturer shall file a return on TTB F 5000.25, and make remittance, for the period September 16-26, no later than September 29. The bonded manufacturer shall file a return on TTB F 5000.25, and make remittance, for the period September 27-30, no later than October 14.
</P>
<P>(ii) <I>Taxpayment not by electronic fund transfer.</I> In the case of taxes for which remittance by electronic fund transfer (EFT) is not required by § 41.115a, the second semimonthly period of September is divided into two payment periods, from the 16th day through the 25th day, and from the 26th day through the 30th day. The bonded manufacturer shall file a return on TTB F 5000.25, and make remittance, for the period September 16-25, no later than September 28. The bonded manufacturer shall file a return on TTB F 5000.25, and make remittance, for the period September 26-30, no later than October 14.
</P>
<P>(2) <I>Amount of payment—Safe harbor rule.</I> (i) <I>General.</I> Taxpayers are considered to have met the requirements of paragraph (b)(1)(i) of this section if the amount paid no later than September 29 is not less than 11/15ths (73.3 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(ii) <I>Taxpayment not by EFT.</I> Taxpayers are considered to have met the requirements of paragraph (b)(1)(ii) of this section if the amount paid no later than September 28 is not less than 2/3rds (66.7 percent) of the tax liability incurred for the semimonthly period beginning on September 1 and ending on September 15, and if any underpayment of tax is paid by October 14.
</P>
<P>(3) <I>Weekend or holiday due date.</I> If the required taxpayment due date for the period September 16-25 or September 16-26, as applicable, falls on a Saturday or legal holiday, the return and remittance are due on the immediately preceding day. If the required due date falls on a Sunday, the return and remittance are due on the immediately following day.
</P>
<P>(c) <I>Postmark.</I> If the return, and remittance as the case may be, are delivered by U.S. Mail to the appropriate TTB officer, the date of the official postmark of the U.S. Postal Service stamped on the cover in which the return, and remittance as the case may be, were mailed shall be treated as the date of delivery.
</P>
<P>(d) <I>Weekends and holidays.</I> Except as otherwise provided in paragraph (b)(3) of this section, if the due date falls on a Saturday, Sunday, or legal holiday, the return and remittance are due on the immediately preceding day that is not a Saturday, Sunday, or legal holiday.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0467)
</APPRO>
<CITA TYPE="N">[T.D. ATF-246, 52 FR 669, Jan. 8, 1987, as amended by T.D. ATF-251, 52 FR 19340, May 22, 1987; T.D. ATF-365, 60 FR 33675, June 28, 1995; T.D. ATF-444, 66 FR 13851, Mar. 8, 2001. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-89, 76 FR 3515, Jan. 20, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 41.114a" NODE="27:2.0.1.1.2.7.76.11" TYPE="SECTION">
<HEAD>§ 41.114a   Qualification for extended deferral.</HEAD>
<NOTE>
<HED>Note:</HED>
<P>This section applies only to removals made before January 1, 1983.</P></NOTE>
<P>(a) <I>Bonded manufacturers with bonds executed before September 1, 1973.</I> Bonded manufacturers with bonds on Form 2986 executed before September 1, 1973, who desire to file returns under this subpart with benefit of the extended deferral permitted by § 41.114 shall file with the appropriate TTB officer an extension of coverage of bond on Form 2105. Such extension of coverage shall identify the particular bond to which it applies and shall contain a statement of purpose as follows:
</P>
<EXTRACT>
<P>To continue in effect said bond (including all extensions or limitations of terms and conditions previously consented to and approved) notwithstanding that the time for payment of the tax may be deferred by the extended deferral period permitted by regulations in 27 CFR 41.114.</P></EXTRACT>
<FP>If the bond on Form 2986 is in an amount insufficient to cover an extended deferral period, according to the requirements of § 41.121, the bonded manufacturer must either file a new bond or file a strengthening bond to increase the total amount of the bonds then in force to a sufficient amount.
</FP>
<P>(b) <I>Bonded manufacturers with bonds executed after September 1, 1973.</I> Bonded manufacturers operating under original or superseding bonds executed after September 1, 1973, are automatically qualified for the extended deferral permitted by § 41.114 (unless found in default as provided in § 41.116). Such bonds must be executed in an amount sufficient to cover an extended deferral period, according to the requirements of § 41.121.
</P>
<P>(c) <I>Commencement of extended deferral.</I> Bonded manufacturers may file returns with benefit of extended deferral only after the applicable bonds and extensions of coverage required by this section have been filed with and approved by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(68A Stat. 847, as amended, 907, as amended; 26 U.S.C. 7101, 7652(a); 26 U.S.C. 7805)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-5, 38 FR 19688, July 23, 1973. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-125, 48 FR 2123, Jan. 18, 1983; T.D. ATF-251, 52 FR 19340, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.115" NODE="27:2.0.1.1.2.7.76.12" TYPE="SECTION">
<HEAD>§ 41.115   Remittance with return.</HEAD>
<P>Remittance of the full amount of internal revenue tax computed during the return period shall accompany the return, except as prescribed in § 41.115a. Such remittance may be in any form the appropriate TTB officer is authorized to accept under the provisions of § 70.61 of this chapter (Payment by check or money order) and which is acceptable to that officer. In paying the tax, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, Ch. 736, 68A Stat. 778 (26 U.S.C. 6313) Aug. 16, 1954, ch. 736, 68A Stat. 775 (26 U.S.C. 6301); June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301))
</SECAUTH>
<CITA TYPE="N">[26 FR 8195, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-77, 46 FR 3009, Jan. 13, 1981; T.D. ATF-251, 52 FR 19340, May 22, 1987; T.D. ATF-301, 55 FR 47658, Nov. 14, 1990. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.115a" NODE="27:2.0.1.1.2.7.76.13" TYPE="SECTION">
<HEAD>§ 41.115a   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) <I>General.</I> (1) Each taxpayer who was liable, during a calendar year, for a gross amount equal to or exceeding five million dollars in taxes on tobacco products, cigarette papers, and cigarette tubes combining tax liabilities incurred under this part and part 40 of this chapter, shall use a commercial bank in making payment by electronic fund transfer (EFT) of taxes on tobacco products, cigarette papers, and cigarette tubes during the succeeding calendar year. Payment of taxes on tobacco products, cigarette papers, and cigarette tubes by cash, check, or money order, as described in § 41.115, is not authorized for a taxpayer who is required, by this section, to make remittances by EFT. For purposes of this section, the dollar amount of tax liability is defined as the gross tax liability of all taxes which are paid in accordance with this subpart, taxable withdrawals from premises in the United States, and importations during the calendar year, without regard to any drawbacks, credits, or refunds, for all premises from which such activities are conducted by the taxpayer. Overpayments are not taken into account in summarizing the gross tax liability.
</P>
<P>(2) For the purposes of this section, a taxpayer includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place it appears in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT.
</P>
<P>(3) A taxpayer who is required by this section to make remittances by EFT, shall make a separate EFT remittance and file a separate tax return for each factory which tobacco products, or cigarette papers, or cigarette tubes are withdrawn upon determination of tax.
</P>
<P>(b) <I>Requirements.</I> (1) On or before January 10 of each calendar year, except for a taxpayer already remitting the tax by EFT, each taxpayer who was liable for a gross amount equal to or exceeding five million dollars in taxes on tobacco products, cigarette papers, and cigarette tubes combining tax liabilities incurred under this part and part 40 of this chapter during the previous calendar year, shall notify, in writing, the appropriate TTB officer. The notice shall be an agreement to make remittances by EFT.
</P>
<P>(2) For each return filed in accordance with this part, the taxpayer shall direct the taxpayer's bank to make an electronic fund transfer in the amount of the taxpayment to the Treasury Account as provided in paragraph (e) of this section. The request shall be made to the bank early enough for the transfer to be made to the Treasury Account by no later than the close of business on the last day for filing the return, prescribed in § 41.105 or § 41.114. The request shall take into account any time limit established by the bank.
</P>
<P>(3) If a taxpayer was liable for less than five million dollars in taxes on tobacco products, cigarette papers, and cigarette tubes during the preceding calendar year, the taxpayer may choose either to continue remitting the tax as provided in this section or to remit the tax with the return as prescribed by § 41.115. On the first return on which the taxpayer chooses to discontinue remitting the tax by EFT and to begin remitting the tax with the tax return, the taxpayer shall notify the appropriate TTB officer by attaching a written notification to the tax return, stating that no taxes are due by EFT, because the tax liability during the preceding calendar year was less than five million dollars, and that the remittance shall be filed with the tax return.
</P>
<P>(c) <I>Remittance.</I> (1) Each taxpayer shall show on the tax return, information about remitting the tax for that return by EFT and shall file the return with the appropriate TTB officer.
</P>
<P>(2) Remittances shall be considered as made when the taxpayment by electronic fund transfer is received by the Treasury Account. For purposes of this section, a taxpayment by electronic fund transfer shall be considered as received by the Treasury Account when it is paid to a Federal Reserve Bank.
</P>
<P>(3) When the taxpayer directs the bank to effect an electronic fund transfer message as required by paragraph (b)(2) of this section, any transfer data record furnished to the taxpayer, through normal banking procedures, will serve as the record of payment, and shall be retained as part of required records.
</P>
<P>(d) <I>Failure to make a taxpayment by EFT.</I> The taxpayer is subject to a penalty imposed by 26 U.S.C. 5761, 6651, or 6656, as applicable, for failure to make a taxpayment by EFT on or before the close of business on the prescribed last day for filing.
</P>
<P>(e) <I>Procedure.</I> Upon the notification required under paragraph (b)(1) of this section, the appropriate TTB officer will issue to the taxpayer a TTB Procedure entitled, Payment of Tax by Electronic Fund Transfer (EFT). This publication outlines the procedure a taxpayer must follow when preparing returns and EFT remittances under this part.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under Control Number 1512-0457)
</APPRO>
<SECAUTH TYPE="N">(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); sec. 202, Pub. L. 85-859, 72 Stat. 1417, as amended (26 U.S.C. 5703))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-185, 49 FR 37583, Sept. 25, 1984]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 41.115a, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 41.116" NODE="27:2.0.1.1.2.7.76.14" TYPE="SECTION">
<HEAD>§ 41.116   Default.</HEAD>
<P>Where a check or money order tendered with a semimonthly return for payment of internal revenue tax under the provisions of this subpart is not paid on presentment, where a bonded manufacturer fails to remit with the semimonthly return the full amount of tax due thereunder, or where a bonded manufacturer is otherwise in default in payment of tax under the provisions of this subpart, he shall not ship tobacco products to the United States on computation of tax, until the appropriate TTB officer finds that the revenue will not be jeopardized by deferred payment of tax under the provisions of this subpart.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 44, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19340, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§§ 41.117-41.118" NODE="27:2.0.1.1.2.7.76.15" TYPE="SECTION">
<HEAD>§§ 41.117-41.118   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 41.119" NODE="27:2.0.1.1.2.7.76.16" TYPE="SECTION">
<HEAD>§ 41.119   Corporate surety.</HEAD>
<P>(a) Surety bonds, required under the provisions of this subpart, may be given only with corporate sureties holding certificates of authority from the Secretary of the Treasury as acceptable sureties on Federal bonds. Limitations concerning corporate sureties are prescribed by the Secretary in the current revision of Treasury Department Circular 570 (Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies). The surety shall have no interest whatever in the business covered by the bond.
</P>
<P>(b) Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46922, Sept. 23, 1981, as amended by T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.120" NODE="27:2.0.1.1.2.7.76.17" TYPE="SECTION">
<HEAD>§ 41.120   Deposit of securities in lieu of corporate surety.</HEAD>
<P>In lieu of corporate surety, the manufacturer of tobacco products in Puerto Rico may pledge and deposit, as security for his bond, securities which are transferrable and are guaranteed both as to interest and as to principal by the United States, in accordance with the provisions of 31 CFR part 225.
</P>
<SECAUTH TYPE="N">(61 Stat. 650; 6 U.S.C. 15)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 44, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 41.121" NODE="27:2.0.1.1.2.7.76.18" TYPE="SECTION">
<HEAD>§ 41.121   Amount and account of bond.</HEAD>
<P>(a) <I>Bond amount.</I> Except for the maximum and minimum amounts stated in this paragraph, the total amount of the bond or bonds required under this subpart must be in an amount not less than the amount of unpaid tax chargeable at any one time against the bond or bonds. The maximum and minimum amounts of such bond or bonds are as follows:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Taxable article
</TH><TH class="gpotbl_colhed" scope="col">Bond amount maximum (in dollars)
</TH><TH class="gpotbl_colhed" scope="col">Bond amount
<br/>minimum
<br/>(in dollars)
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Cigarettes</TD><TD align="right" class="gpotbl_cell">250,000</TD><TD align="right" class="gpotbl_cell">1,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Any combination of taxable articles</TD><TD align="right" class="gpotbl_cell">250,000</TD><TD align="right" class="gpotbl_cell">1,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(3) One kind of taxable article other than cigarettes</TD><TD align="right" class="gpotbl_cell">150,000</TD><TD align="right" class="gpotbl_cell">1,000</TD></TR></TABLE></DIV></DIV>
<P>(b) <I>Bond account.</I> Where the amount of a bonded manufacturer's bond is less than the maximum amount prescribed in paragraph (a) of this section, the bonded manufacturer must maintain an account reflecting all outstanding taxes for which the manufacturer's bond is chargeable. A manufacturer must debit that account with the amount of tax that was agreed to be paid under § 41.111 or that is otherwise chargeable against the bond and then must credit the account for the amount paid on TTB F 5000.25 or other TTB-prescribed document, at the time it is filed. A manufacturer who will defer payment of tax for a shipment of tobacco products or cigarette papers or tubes under this subpart must have sufficient credit in this account to cover the taxes prior to making the shipment to the United States.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0108)
</APPRO>
<CITA TYPE="N">[T.D. ATF-444, 73 FR 16757, Mar. 31, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 41.122" NODE="27:2.0.1.1.2.7.76.19" TYPE="SECTION">
<HEAD>§ 41.122   Strengthening bond.</HEAD>
<P>Where the amount of any bond is no longer sufficient under the provisions of § 41.121, the bonded manufacturer shall immediately file a strengthening bond in an appropriate amount with the same surety as that on the bond already in effect, unless a superseding bond is filed pursuant to § 41.123. A strengthening bond will not be approved where any notation is made thereon which is intended, or which may be construed, as a release of any former bond, or as limiting the amount of either bond to less than its full amount.
</P>
<CITA TYPE="N">[26 FR 8195, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.123" NODE="27:2.0.1.1.2.7.76.20" TYPE="SECTION">
<HEAD>§ 41.123   Superseding bond.</HEAD>
<P>A bonded manufacturer shall immediately file a new bond to supersede his current bond when (a) the corporate surety on the current bond becomes insolvent, (b) the appropriate TTB officer approves a request from the surety on the current bond to terminate his liability under the bond, (c) the payment of any liability under a bond is made by the surety thereon, (d) the amount of the bond is no longer sufficient under the provisions of § 41.121 and a strengthening bond has not been filed, or (e) the appropriate TTB officer considers a superseding bond necessary for the protection of the revenue.
</P>
<CITA TYPE="N">[26 FR 8195, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19341, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004] 


</CITA>
</DIV8>


<DIV8 N="§ 41.124" NODE="27:2.0.1.1.2.7.76.21" TYPE="SECTION">
<HEAD>§ 41.124   Extension of coverage of bond.</HEAD>
<P>An extension of coverage of the bond of a bonded manufacturer shall be required (a) as provided in § 41.114a, and (b) in the case of any change in the location of the factory as set forth in the bond. Such extension of coverage of the bond shall be manifested on TTB F 5000.18 by the bonded manufacturer and by the surety on the bond with the same formality and proof of authority as required for the execution of the bond.
</P>
<CITA TYPE="N">[T.D. ATF-5, 38 FR 19689, July 23, 1973. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.125" NODE="27:2.0.1.1.2.7.76.22" TYPE="SECTION">
<HEAD>§ 41.125   Approval of bond and extension of coverage of bond.</HEAD>
<P>The appropriate TTB officer is authorized to approve all bonds and extensions of coverage of bonds (except under § 41.136) filed under this subpart. No manufacturer of tobacco products in Puerto Rico shall defer taxes under this subpart until he receives from the appropriate TTB officer notice of approval of the bond or of an appropriate extension of coverage of the bond required under this subpart. Upon receipt of the duplicate copy of an approved bond or extension of coverage of bond from the appropriate TTB officer, such copy of the bond or extension of coverage of bond shall be retained by the bonded manufacturer and shall be made available for inspection by the appropriate TTB officer upon his request.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 45, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.126" NODE="27:2.0.1.1.2.7.76.23" TYPE="SECTION">
<HEAD>§ 41.126   Termination of bond.</HEAD>
<P>Any bond given under the provisions of this subpart may be terminated as to future transactions, by the appropriate TTB officer, (a) pursuant to application of surety as provided in § 41.127; (b) on approval of a superseding bond; (c) on notification by the bonded manufacturer to the appropriate TTB officer that he has discontinued the deferral of taxes under the bond; or (d) on notification by the bonded manufacturer to the appropriate TTB officer that he has discontinued business. When any bond is terminated, the appropriate TTB officer shall notify both the bonded manufacturer and surety on such bond, in writing, of such action.
</P>
<CITA TYPE="N">[26 FR 8196, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19341, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.127" NODE="27:2.0.1.1.2.7.76.24" TYPE="SECTION">
<HEAD>§ 41.127   Application of surety for relief from bond.</HEAD>
<P>A surety on any bond given under the provisions of this subpart may at any time in writing notify the bonded manufacturer and the appropriate TTB officer that he desires, after a date named, to be relieved of liability under said bond. Such date shall be not less than 10 days after the date the notice is received by the appropriate TTB officer. The surety shall also file with the appropriate TTB officer an acknowledgement or other proof of service on the bonded manufacturer. If such notice is not thereafter in writing withdrawn, the rights of the bonded manufacturer as supported by said bond shall be terminated on the date named in the notice, and the surety shall be relieved from liability to the extent set forth in § 41.128.
</P>
<CITA TYPE="N">[26 FR 8196, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19341, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.128" NODE="27:2.0.1.1.2.7.76.25" TYPE="SECTION">
<HEAD>§ 41.128   Relief of surety from bond.</HEAD>
<P>Where the surety on a bond given under the provisions of this subpart has filed application for relief from liability as provided in § 41.127, the surety shall be relieved from liability for transactions occurring wholly subsequent to the date specified in the notice, or the effective date of a new bond, if one is given.
</P>
<CITA TYPE="N">[26 FR 8196, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.129" NODE="27:2.0.1.1.2.7.76.26" TYPE="SECTION">
<HEAD>§ 41.129   Release of pledged securities.</HEAD>
<P>Securities of the United States, pledged and deposited as provided in § 41.120, shall be released only in accordance with the provisions of 31 CFR part 225. Such securities will not be released by the appropriate TTB officer until the liability under the bond for which they were pledged has been terminated. When the appropriate TTB officer is satisfied that they may be released, he shall fix the date or dates on which a part or all of such securities may be released. At any time prior to the release of such securities, the appropriate TTB officer may extend the date of release for such additional length of time as he deems necessary.
</P>
<SECAUTH TYPE="N">(61 Stat. 650; 6 U.S.C. 15)
</SECAUTH>
<CITA TYPE="N">[26 FR 8196, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19341, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§§ 41.135-41.138" NODE="27:2.0.1.1.2.7.76.27" TYPE="SECTION">
<HEAD>§§ 41.135-41.138   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 41.139" NODE="27:2.0.1.1.2.7.76.28" TYPE="SECTION">
<HEAD>§ 41.139   Records.</HEAD>
<P>Every manufacturer of tobacco products and cigarette papers and tubes in the United States who receives tobacco products or cigarette papers or tubes or Puerto Rican manufacture, without payment of internal revenue tax, under his bond, shall keep separate records of all items received, removed subject to tax, removed for tax-exempt purposes, and otherwise disposed of, showing the following information:
</P>
<P>(a) Date, quantity, kind of cigars, cigarettes, smokeless tobacco, pipe tobacco and roll-your-own tobacco (number of small cigars—large cigars; number of small cigarettes—large cigarettes; pounds and ounces of chewing tobacco—snuff; pounds and ounces of pipe tobacco—roll-your-own tobacco).
</P>
<P>(b) The sale price of large cigars removed subject to tax, except that if the price is more than $235.294 per thousand, it may be shown as if it were $236 per thousand.
</P>
<P>(c) Cigarette papers:
</P>
<P>(1) Before January 1, 2000, the date and number of books or sets of cigarette papers of each numerical content.
</P>
<P>(2) On and after January 1, 2000, the date and number of cigarette papers.
</P>
<P>(d) The date and number of cigarette tubes.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0362)
</APPRO>
<SECAUTH TYPE="N">(Sec. 2128(c), Pub. L. 94-455, 90 Stat. 1921 (26 U.S.C. 5741))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18311, Mar. 24, 1981, as amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-289, 54 FR 48841, Nov. 27, 1989; T.D. ATF-307, 55 FR 52745, Dec. 21, 1990; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-420, 64 FR 71944, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 41.140" NODE="27:2.0.1.1.2.7.76.29" TYPE="SECTION">
<HEAD>§ 41.140   Taxpayment in the United States.</HEAD>
<P>Every manufacturer of tobacco products or cigarette papers or tubes in the United States who receives, under its bond without payment of internal revenue tax, Puerto Rican tobacco products or cigarette papers or tubes not put up in packages, and who subsequently removes such products subject to tax, must pay the tax imposed on these products by 26 U.S.C. 7652(a) at the rates prescribed in 26 U.S.C. 5701 on the basis of a return as prescribed by part 40 of this chapter. Similarly, every manufacturer of cigarette papers and tubes in the United States who receives Puerto Rican cigarette papers and tubes and subsequently removes such articles, shall pay the tax imposed on such articles by 26 U.S.C. 7652(a), at the rates prescribed in 26 U.S.C. 5701, on the basis of a return under the provisions of part 40 of this chapter applicable to taxpayment of cigarette papers and tubes. Such tobacco products and cigarettes papers and tubes shall be separately listed and identified as articles of Puerto Rican manufacture on Form 5000.24. The amount of tax paid on such articles shall be separately stated on Form 5000.24.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 45, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-384, 61 FR 54095, Oct. 17, 1996; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-422, 64 FR 71951, Dec. 22, 1999; 78 FR 38570, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.141" NODE="27:2.0.1.1.2.7.76.30" TYPE="SECTION">
<HEAD>§ 41.141   Reports.</HEAD>
<P>Every manufacturer of tobacco products or cigarette papers or tubes in the United States who receives Puerto Rican tobacco products or cigarette papers or tubes under its bond without payment of internal revenue tax must report the receipt and disposition of such tobacco products and cigarette papers and tubes on supplemental monthly reports. Such supplemental reports shall be made on TTB F 5210.5 and shall have inserted thereon the heading, “Cigars and Cigarettes of Puerto Rican Manufacture” or “Cigarette Papers and Tubes of Puerto Rican Manufacture,” as the case may be. The original of such supplemental report shall be attached to the manufacturer's regular monthly report when filed.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-422, 64 FR 71951, Dec. 22, 1999; 78 FR 38570, June 27, 2013; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="H" NODE="27:2.0.1.1.2.8" TYPE="SUBPART">
<HEAD>Subpart H [Reserved]</HEAD>

</DIV6>


<DIV8 N="§§ 41.151-41.153" NODE="27:2.0.1.1.2.9.77.1" TYPE="SECTION">
<HEAD>§§ 41.151-41.153   [Reserved]</HEAD>
</DIV8>


<DIV6 N="I" NODE="27:2.0.1.1.2.9" TYPE="SUBPART">
<HEAD>Subpart I—Claims</HEAD>


<DIV7 N="77" NODE="27:2.0.1.1.2.9.77" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 41.161" NODE="27:2.0.1.1.2.9.77.1" TYPE="SECTION">
<HEAD>§ 41.161   Abatement of assessment.</HEAD>
<P>A claim for abatement of the unpaid portion of the assessment of any tax on tobacco products and cigarette papers and tubes, or any liability in respect thereof, may be allowed to the extent that such assessment is excessive in amount, is assessed after expiration of the applicable period of limitation, or is erroneously or illegally assessed. Any claim under this section shall be prepared on Form 2635 (5620.8), in duplicate, and shall set forth the particulars under which the claim is filed. The original of the claim, accompanied by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid, shall be filed with the appropriate TTB officer, and the duplicate of the claim shall be retained by the claimant.
</P>
<SECAUTH TYPE="N">(68A Stat. 792; 26 U.S.C. 6404)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.162" NODE="27:2.0.1.1.2.9.77.2" TYPE="SECTION">
<HEAD>§ 41.162   Losses caused by disaster occurring after September 2, 1958.</HEAD>
<P>Claims involving internal revenue tax paid or determined and customs duty paid on tobacco products and cigarette papers and tubes removed, which are lost, rendered unmarketable, or condemned by a duly authorized official by reason of a “major disaster” occurring in the United States after September 2, 1958, shall be filed in accordance with the provisions of subpart C of part 46 of this chapter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1420; 26 U.S.C. 5708)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-457, 66 FR 32220, June 14, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 41.163" NODE="27:2.0.1.1.2.9.77.3" TYPE="SECTION">
<HEAD>§ 41.163   Refund of tax.</HEAD>
<P>The taxes paid on tobacco products and cigarette papers and tubes imported or brought into the United States may be refunded (without interest) to the taxpayer on proof satisfactory to the appropriate TTB officer that the taxpayer has paid the tax on tobacco products and cigarette papers and tubes lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, while in the possession or ownership of such taxpayer, or withdrawn by him from the market. Any claim for refund of tax under this section shall be prepared on Form 2635 (5620.8), in duplicate, and shall include a statement that the tax imposed on tobacco products and cigarette papers and tubes by 26 U.S.C. 7652 or chapter 52, as applicable, has been paid in respect to the articles covered in the claim, and that the articles were lost, destroyed, or withdrawn from the market, within six months preceding the date the claim is filed and shall be executed under the penalties of perjury. A claim for refund relating to articles lost or destroyed shall be supported as prescribed in § 41.165, and a claim relating to articles withdrawn from the market shall include a schedule prepared and verified as prescribed in §§ 41.170 and 41.171 or §§ 41.172 and 41.173. The original of the claim shall be filed with the appropriate TTB officer. The duplicate of the claim, with the copy of any verified supporting schedules, shall be retained by the claimant.
</P>
<SECAUTH TYPE="N">(68A Stat. 907, as amended, 72 Stat. 1419, as amended; 26 U.S.C. 7652, 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 1987. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="78" NODE="27:2.0.1.1.2.9.78" TYPE="SUBJGRP">
<HEAD>Tobacco Products and Cigarette Papers and Tubes Lost or Destroyed</HEAD>


<DIV8 N="§ 41.165" NODE="27:2.0.1.1.2.9.78.4" TYPE="SECTION">
<HEAD>§ 41.165   Action by taxpayer.</HEAD>
<P>Where tobacco products and cigarette papers and tubes which have been imported or brought into the United States are lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, and the taxpayer desires to file claim for refund of the tax on such articles, he shall, in addition to complying with the requirements of § 41.163, indicate on the claim the nature, date, place, and extent of such loss or destruction. The claim shall be accompanied by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="79" NODE="27:2.0.1.1.2.9.79" TYPE="SUBJGRP">
<HEAD>Tobacco Products and Cigarette Papers and Tubes Withdrawn From the Market</HEAD>


<DIV8 N="§ 41.170" NODE="27:2.0.1.1.2.9.79.5" TYPE="SECTION">
<HEAD>§ 41.170   Reduction of tobacco products to materials; TTB action.</HEAD>
<P>(a) <I>General.</I> Where tobacco products and cigarette papers and tubes which have been imported or brought into the United States are withdrawn from the market and the taxpayer desires to file claim for refund of the tax on the articles, he shall, in addition to the requirements of § 41.163, assemble the articles at any suitable place, if they are to be destroyed or reduced to tobacco. The taxpayer shall group the articles according to the rates of tax applicable to the articles, and shall prepare a schedule of the articles on TTB Form 5200.7, in triplicate. All copies of the schedule shall be forwarded to the appropriate TTB officer.
</P>
<P>(b) <I>Large cigars.</I> Refund or credit of tax on large cigars withdrawn from the market is limited to the lowest tax applicable to that brand and size of cigar during the required record retention period (see § 41.22) except where the importer establishes that a greater amount was actually paid. For each claim involving large cigars withdrawn from the market, the importer must include a certification on either TTB Form 5200.7 or TTB Form 2635 (5620.8) to read as follows:
</P>
<EXTRACT>
<P>The amounts claimed relating to large cigars are based on the lowest sale price applicable to the cigars during the required record retention period, except where specific documentation is submitted with the claim to establish that any greater amount of tax claimed was actually paid.</P></EXTRACT>
<SECAUTH TYPE="N">(See 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18311, Mar. 24, 1981, as amended by T.D. ATF-232, 51 FR 28086, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 1987; T.D. ATF-307, 55 FR 52745, Dec. 21, 1990; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-420, 64 FR 71944, Dec. 22, 1999. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.171" NODE="27:2.0.1.1.2.9.79.6" TYPE="SECTION">
<HEAD>§ 41.171   Reduction of tobacco products to materials, action by appropriate TTB officer.</HEAD>
<P>Upon receipt of a schedule of tobacco products and cigarette papers and tubes which have been imported or brought into the United States and which are withdrawn from the market by a taxpayer who desires to destroy such articles or, in the case of tobacco products, reduce them to tobacco, the appropriate TTB officer may verify the schedule and supervise destruction of the articles (and stamps, if any) or the reduction of tobacco products to tobacco, or the appropriate TTB officer may authorize the taxpayer to destroy the articles (and stamps, if any) or reduce tobacco products to tobacco without supervision by so stating on the original and one copy of the schedule returned to the taxpayer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 46, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.172" NODE="27:2.0.1.1.2.9.79.7" TYPE="SECTION">
<HEAD>§ 41.172   Return to nontaxpaid status, action by taxpayer.</HEAD>
<P>(a) <I>General.</I> Where tobacco products and cigarette papers and tubes which have been imported or brought into the United States are withdrawn from the market and the taxpayer desires to file a claim for refund of the tax on the articles and return them to a nontaxpaid status, he shall, in addition to the requirements of § 41.163, assemble the articles in or adjacent to the factory in which the articles are to be retained or received in a nontaxpaid status. The taxpayer shall group the articles according to the rates of tax applicable to the articles, and shall prepare a schedule of the articles, on Form 5200.7, in triplicate. All copies of the schedule shall be forwarded to the appropriate TTB officer.
</P>
<P>(b) <I>Large cigars.</I> Refund or credit of tax on large cigars withdrawn from the market is limited to the lowest tax applicable to that brand and size of cigar during the required record retention period (see § 41.22) except where the importer establishes that a greater amount was actually paid. For each claim involving large cigars withdrawn from the market, the importer must include a certification on either TTB Form 5200.7 or TTB Form 2635 (5620.8) to read as follows:
</P>
<EXTRACT>
<P>The amounts claimed relating to large cigars are based on the lowest sale price applicable to the cigars during the required record retention period, except where specific documentation is submitted with the claim to establish that any greater amount of tax claimed was actually paid.</P></EXTRACT>
<SECAUTH TYPE="N">(See 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18311, Mar. 24, 1981, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 1987; T.D. ATF-307, 55 FR 52745, Dec. 21, 1990; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-420, 64 FR 71944, Dec. 22, 1999. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.173" NODE="27:2.0.1.1.2.9.79.8" TYPE="SECTION">
<HEAD>§ 41.173   Return to nontaxpaid status, action by appropriate TTB officer.</HEAD>
<P>Upon receipt of a schedule of tobacco products and cigarette papers and tubes which have been imported or brought into the United States and which are withdrawn from the market by a taxpayer who desires to return such articles to a nontaxpaid status, the appropriate TTB officer may verify the schedule and supervise disposition of the articles (and destruction of the stamps, if any) or the appropriate TTB officer may authorize the receiving manufacturer to verify the schedule and disposition of the articles (and destruction of the stamps, if any) covered therein, without supervision, by so stating on the original and one copy of the schedule returned to the manufacturer. Where the receipt in a factory of tobacco products and cigarette papers and tubes has been verified, such articles shall be treated by the receiving manufacturer as nontaxpaid and shall be covered by the manufacturer's bond.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 47, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.174" NODE="27:2.0.1.1.2.9.79.9" TYPE="SECTION">
<HEAD>§ 41.174   Disposition of tobacco products and cigarette papers and tubes, and schedule.</HEAD>
<P>When the appropriate TTB officer is assigned to verify the schedule and supervise destruction or other disposition of tobacco products and cigarette papers and tubes which have been imported or brought into the United States, such officer shall, upon completion of his assignment, execute a certificate on all copies of the schedule to show the disposition and the date of disposition of such articles. The appropriate TTB officer shall return the original and one copy of the certified schedule to the taxpayer. When a taxpayer destroys such articles (and stamps, if any) or reduces tobacco products to materials, or a receiving manufacturer verifies the schedule and disposition of such articles (and stamps, if any), he shall execute a certificate on the original and the copy of the schedule returned to him, to show the disposition and the date of disposition of the articles. The taxpayer shall attach the original of the certified schedule to his claim for refund.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 47, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="J" NODE="27:2.0.1.1.2.10" TYPE="SUBPART">
<HEAD>Subpart J—Records and Reports</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-40, 42 FR 5007, Jan. 26, 1977, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 41.181" NODE="27:2.0.1.1.2.10.80.1" TYPE="SECTION">
<HEAD>§ 41.181   Records of large cigars.</HEAD>
<P>Every person who imports large cigars for sale within the United States must keep such records as are necessary to establish and verify the sale price that applies to large cigars removed (entered or withdrawn).
</P>
<P>(a) <I>Basic record.</I> The importer must keep a record to show each sale price (as determined under § 41.39), which is applicable to large cigars removed. No later than the tenth business day in January of each year the importer must prepare such a record to show the sale price in effect on the first day of that year for each brand and size of large cigars. The importer must note any change in a price from that shown in the record within ten business days after such change in price. The record must be a continuing one for each brand and size of cigar (and type of packaging, if pertinent), so that the taxable price on any date may be readily ascertained. If an importer removes new types of large cigars after the beginning of the year, the importer must enter the sale price and its effective date for such large cigars in the basic record within ten business days after such removal.
</P>
<P>(b) <I>Copies of price announcements.</I> The importer must keep a copy of each general announcement that is issued internally or to the trade about establishment or change of large cigar sale prices. If the copy does not show the actual date when issued it must be annotated to show this information.
</P>
<P>(c) <I>Copies of entry and withdrawal forms.</I> The importer must keep a copy of each customs entry or withdrawal form on which internal revenue tax for large cigars is declared pursuant to § 41.81.
</P>
<P>(d) <I>Alternative record.</I> If an importer has so few import transactions and/or brands and sizes of large cigars that retention of an appropriate copy of each entry and withdrawal form required under paragraph (c) of this section will provide an adequate record of sale prices, then the record required under paragraph (a) of this section need not be kept. In such case the entry and withdrawal forms must identify the brands and sizes of cigars covered and show the corresponding quantity and sale price for each. If such information was not originally entered on the form it may be included by annotation. Whenever the appropriate TTB officer finds that alternative records being kept pursuant to this paragraph are inadequate for the intended purpose, he or she may so notify the importer in writing, after which time the importer must keep the record required under paragraph (a) of this section.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0368)
</APPRO>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71944, Dec. 22, 1999. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.182" NODE="27:2.0.1.1.2.10.80.2" TYPE="SECTION">
<HEAD>§ 41.182   Availability of records.</HEAD>
<P>The records required under § 41.181 shall be kept by the importer at his usual place of business unless otherwise authorized in writing by the appropriate TTB officer, and shall be made available for inspection by the appropriate TTB officer upon his request. (For retention period, see § 41.22.)
</P>
<CITA TYPE="N">[T.D. ATF-40, 42 FR 5007, Jan. 26, 1977. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 41.183" NODE="27:2.0.1.1.2.10.80.3" TYPE="SECTION">
<HEAD>§ 41.183   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:2.0.1.1.2.11" TYPE="SUBPART">
<HEAD>Subpart K—Tobacco Products Importers</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-422, 64 FR 71951, Dec. 22, 1999, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 41.190" NODE="27:2.0.1.1.2.11.80.1" TYPE="SECTION">
<HEAD>§ 41.190   Persons required to qualify.</HEAD>
<P>Any person who engages in the business as an importer of tobacco products must qualify as an importer of tobacco products in accordance with this part. Any person eligible for an exemption described in § 41.50 is not engaged in the business as an importer of tobacco products. A person importing tobacco products for personal use, in such quantities as may be allowed by U.S. Customs and Border Protection without payment of tax, is not required to have an importer's permit.
</P>
<CITA TYPE="N">[78 FR 38570, June 27, 2013, as amended by T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.191" NODE="27:2.0.1.1.2.11.80.2" TYPE="SECTION">
<HEAD>§ 41.191   Application for permit.</HEAD>
<P>Every person, before commencing business as an importer of tobacco products, must make application for, and obtain, the permit in accordance with this subpart. The permit application must be made on TTB F 5230.4 in accordance with the instructions for the form. All documents required under this part to be furnished with the permit application must be made a part thereof.
</P>
<CITA TYPE="N">[78 FR 38570, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.192" NODE="27:2.0.1.1.2.11.80.3" TYPE="SECTION">
<HEAD>§ 41.192   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 41.193" NODE="27:2.0.1.1.2.11.80.4" TYPE="SECTION">
<HEAD>§ 41.193   Corporate documents.</HEAD>
<P>Every corporation that files an application for a permit as an importer of tobacco products must furnish with its application for the permit required by § 41.191 a true copy of the corporate charter or a certificate of corporate existence or incorporation executed by the appropriate officer of the State in which incorporated. The corporation must likewise furnish duly authenticated extracts of the stockholders' meetings, bylaws, or directors' meetings, listing the offices that, or the officers who, are authorized to sign documents or otherwise act in behalf of the corporation in matters relating to 26 U.S.C. chapter 52 and the regulations issued thereunder. The corporation must also furnish evidence, in duplicate, of the identity of the officers and directors and each person who holds more than ten percent of the stock of the corporation. Where the corporation has previously filed with the appropriate TTB officer any information required by this section and that information is currently complete and accurate, a written statement to that effect, in duplicate, will be sufficient for purposes of this section.
</P>
<CITA TYPE="N">[78 FR 38571, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.194" NODE="27:2.0.1.1.2.11.80.5" TYPE="SECTION">
<HEAD>§ 41.194   Articles of partnership or association.</HEAD>
<P>Every partnership or association that files an application for a permit as an importer of tobacco products must furnish with its application for the permit required by § 41.191 a true copy of the articles of partnership or association, if any, or the certificate of partnership or association where required to be filed by any State, county, or municipality. Where a partnership or association has previously filed these documents with the appropriate TTB officer and the documents are currently complete and accurate, a written statement, in duplicate, to that effect by the partnership or association will be sufficient for purposes of this section.
</P>
<CITA TYPE="N">[78 FR 38571, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.195" NODE="27:2.0.1.1.2.11.80.6" TYPE="SECTION">
<HEAD>§ 41.195   Trade name certificate.</HEAD>
<P>Every person that files an application for a permit as an importer of tobacco products operating under a trade name must furnish with the application for the permit required by § 41.191 a true copy of the certificate or other document, if any, issued by a State, county, or municipal authority in connection with the transaction of business under the trade name. If no such certificate or other document is issued by the State, county, or municipal authority, a written statement, in duplicate, to that effect by the person will be sufficient for purposes of this section.
</P>
<CITA TYPE="N">[78 FR 38571, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.196" NODE="27:2.0.1.1.2.11.80.7" TYPE="SECTION">
<HEAD>§ 41.196   Power of attorney.</HEAD>
<P>If the application for a permit or any report or other document required to be executed under this part is to be signed by an individual as an attorney in fact for any person (including one of the partners for a partnership or one of the members of an association), or if an individual is otherwise to officially represent such person, a power of attorney on TTB F 5000.8 must be furnished to the appropriate TTB officer. A power of attorney is not required for individuals whose authority is furnished with the corporate documents required by § 41.193. A new TTB F 5000.8 does not have to be filed with the appropriate TTB officer if that form previously was submitted to TTB and is still in effect.
</P>
<CITA TYPE="N">[78 FR 38571, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.197" NODE="27:2.0.1.1.2.11.80.8" TYPE="SECTION">
<HEAD>§ 41.197   Additional information.</HEAD>
<P>The appropriate TTB officer may require the submission of, and the applicant must furnish, as a part of the application for a permit, such additional information the appropriate TTB officer deems necessary to determine whether the applicant is entitled to a permit under this subpart.
</P>
<CITA TYPE="N">[78 FR 38571, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.198" NODE="27:2.0.1.1.2.11.80.9" TYPE="SECTION">
<HEAD>§ 41.198   Investigation of applicant.</HEAD>
<P>Appropriate TTB officers may inquire or investigate to verify the information in connection with an application for a permit. The investigation will ascertain whether the applicant is eligible for a permit. A permit may be denied if the applicant (including, in the case of a corporation, any officer, director, or principal stockholder and, in the case of a partnership, a partner)—
</P>
<P>(a) Is, by reason of his business experience, financial standing, or trade connections or by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with this chapter;
</P>
<P>(b) Has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes; or
</P>
<P>(c) Has failed to disclose any material information required or made any material false statement in the application therefor.
</P>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14485, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.199" NODE="27:2.0.1.1.2.11.80.10" TYPE="SECTION">
<HEAD>§ 41.199   Notice of contemplated disapproval.</HEAD>
<P>If the appropriate TTB officer has reason to believe that the applicant is not entitled to a permit, the appropriate TTB officer will promptly provide to the applicant a notice of the contemplated disapproval of the application and an opportunity for hearing thereon in accordance with part 71 of this chapter. If, after the notice and opportunity for hearing, the appropriate TTB officer finds that the applicant is not entitled to a permit, an order will be prepared stating the findings on which the application is denied.
</P>
<CITA TYPE="N">[78 FR 38571, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.200" NODE="27:2.0.1.1.2.11.80.11" TYPE="SECTION">
<HEAD>§ 41.200   Issuance of permit.</HEAD>
<P>If the application for the permit required under this subpart is approved, the appropriate TTB officer will issue the permit on TTB F 5200.24.
</P>
<CITA TYPE="N">[78 FR 38571, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.201" NODE="27:2.0.1.1.2.11.80.12" TYPE="SECTION">
<HEAD>§ 41.201   Duration of permit.</HEAD>
<P>(a) <I>Permits with an effective date on or after August 26, 2013.</I> A permit issued under § 41.200 bearing an effective date of August 26, 2013 or later will be valid for a period of five years from the effective date shown on the permit. Provided that a timely application for renewal is filed under § 41.202, the expiring permit will continue in effect until final action is taken by TTB on the application for renewal.
</P>
<P>(b) <I>Permits with an effective date prior to August 26, 2013.</I> A person operating as an importer of tobacco products that holds a permit bearing an effective date that is prior to August 26, 2013 and that wishes to continue operations as an importer of tobacco products, must apply for and receive a new permit issued under § 41.200. The person must file the application under § 41.191 within 150 days after August 26, 2013, or within 30 days prior to the expiration date shown on the existing permit form, whichever is later. If a person timely files an application but that application is not complete (that is, the applicant has not submitted information or documentation sufficient for TTB to take action on the permit), and if the applicant has not provided the missing information within one year of a written request for it or within any shorter time period specified in the written request, the permit application will be deemed abandoned and the applicant will be notified in writing that no permit will be issued in response to the incomplete application. Provided that a timely application is filed, the person may continue operations under the existing permit until TTB takes final action on the application for the new permit.
</P>
<CITA TYPE="N">[78 FR 38571, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.202" NODE="27:2.0.1.1.2.11.80.13" TYPE="SECTION">
<HEAD>§ 41.202   Renewal of permit.</HEAD>
<P>(a) <I>Permits with an effective date on or after August 26, 2013.</I> A person operating as an importer of tobacco products that holds a permit required under § 41.191 and issued under § 41.200 bearing an effective date of August 26, 2013 or later, and that wishes to continue operations beyond the expiration of the permit, must apply for renewal of the permit within 30 days prior to expiration of the permit, in accordance with the instructions provided with the renewal application form. Permits will be renewed only for those persons that have engaged in the importing of tobacco products under the current permit during the one-year period immediately prior to the date of the application to renew.
</P>
<P>(b) <I>Permits with an effective date prior to August 26, 2013.</I> A person may not obtain renewal of a permit bearing an effective date prior to August 26, 2013. A person operating as an importer of tobacco products that holds a permit bearing an effective date prior to August 26, 2013, and that wishes to continue in operations as an importer of tobacco products, must apply for and receive a new permit for issuance under § 41.200 and in accordance with the rules contained in § 41.201(b).
</P>
<CITA TYPE="N">[78 FR 38571, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.203" NODE="27:2.0.1.1.2.11.80.14" TYPE="SECTION">
<HEAD>§ 41.203   Retention of permit and supporting documents.</HEAD>
<P>The importer must retain the permit, together with the copy of the application and supporting documents returned with the permit, at the same place where the records required by this subpart are kept. The importer must make the permit and supporting documents available for inspection by any appropriate TTB officer upon request.
</P>
<CITA TYPE="N">[78 FR 38572, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.203a" NODE="27:2.0.1.1.2.11.80.15" TYPE="SECTION">
<HEAD>§ 41.203a   Suspension and revocation of permit.</HEAD>
<P>When the appropriate TTB officer has reason to believe that an importer of tobacco products has not in good faith complied with the provisions of 26 U.S.C. chapter 52, and regulations thereunder, or with any other provision of 26 U.S.C. with intent to defraud, or has violated any condition of the permit, or has failed to disclose any material information required or made any material false statement in the application for the permit, or is, by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with 26 U.S.C. chapter 52, or has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, the appropriate TTB officer shall issue an order, stating the facts charged, citing such person to show cause why the permit should not be suspended or revoked. Such citation shall be issued and opportunity for hearing afforded in accordance with part 71 of this chapter, which part is applicable to such proceedings. If, after hearing, the Administrative Law Judge, or on appeal, the Administrator, finds that such person has not shown cause why the permit should not be suspended or revoked, such permit shall be suspended for such period as the appropriate TTB officer deems proper or shall be revoked.
</P>
<CITA TYPE="N">[T.D. TTB-104, 77 FR 37304, June 21, 2012]


</CITA>
</DIV8>


<DIV7 N="80" NODE="27:2.0.1.1.2.11.80" TYPE="SUBJGRP">
<HEAD>Required Records and Reports</HEAD>


<DIV8 N="§ 41.204" NODE="27:2.0.1.1.2.11.80.16" TYPE="SECTION">
<HEAD>§ 41.204   Records and reports in general.</HEAD>
<P>Every importer of tobacco products or cigarette papers or tubes must keep records and, when required by this part, submit reports of all tobacco products released from customs custody under the importer's TTB permit, including information on the release from customs custody, the receipt, and the disposition.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1513-0064 and 1513-0106)
</APPRO>
<CITA TYPE="N">[81 FR 94210, Dec. 22, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 41.205" NODE="27:2.0.1.1.2.11.80.17" TYPE="SECTION">
<HEAD>§ 41.205   [Reserved]</HEAD>
</DIV8>

</DIV7>


<DIV7 N="81" NODE="27:2.0.1.1.2.11.81" TYPE="SUBJGRP">
<HEAD>Filing and Retention of Records and Reports</HEAD>


<DIV8 N="§ 41.206" NODE="27:2.0.1.1.2.11.81.18" TYPE="SECTION">
<HEAD>§ 41.206   Reports.</HEAD>
<P>(a) <I>General.</I> Importers must file a monthly report on TTB F 5220.6 in accordance with the instructions for the form.
</P>
<P>(b) <I>First report.</I> The first monthly report must be submitted by the 15th day of the month following the month in which the permit is issued.
</P>
<P>(c) <I>Reports of no activity.</I> Reports with the notation “No Activity” must be made for those months in which no activity occurs.
</P>
<P>(d) <I>Concluding report.</I> When a transfer of ownership of the business of an importer of tobacco products described in § 41.224, or when a change in control of a corporation described in § 41.226 occurs, a concluding report with the notation “Concluding Report” must be made for the month or partial month during which the transfer of ownership or change in control becomes effective. A concluding report must also be made for the month or partial month during which an importer concludes operations under the permit.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29415, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 41.207" NODE="27:2.0.1.1.2.11.81.19" TYPE="SECTION">
<HEAD>§ 41.207   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 41.208" NODE="27:2.0.1.1.2.11.81.20" TYPE="SECTION">
<HEAD>§ 41.208   Maintenance and retention of records and reports.</HEAD>
<P>(a) <I>Maintenance.</I> All records, reports, and other documents required under this part must be maintained separately, chronologically by transaction or reporting date, at the importer's principal place of business. The appropriate TTB officer may, pursuant to an application by the importer for an approved alternate method or procedure under § 41.26, authorize such documents to be maintained at another business location under the control of the importer, if the conditions of § 41.26 are met and provided that the use of the alternate location does not cause undue inconvenience to TTB when attempting to examine the files and does not delay the timely transmittal of any document required to be submitted to TTB.
</P>
<P>(b) <I>Retention.</I> All records and reports and documents or copies of documents supporting these records or reports required by this part to be submitted to TTB or retained by the importer must be retained for not less than three years following the close of the calendar year in which filed or made. Such records, reports, and other documents must be available for inspection by the appropriate TTB officer upon request. Furthermore, the appropriate TTB officer may require these records, reports, and other documents to be kept for an additional period of not more than three years in any case where it is necessary to protect the revenue.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29415, June 22, 2009]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="L" NODE="27:2.0.1.1.2.12" TYPE="SUBPART">
<HEAD>Subpart L—Changes After Original Qualification of Importers</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>78 FR 38572, June 27, 2013, unless otherwise noted.


</PSPACE></SOURCE>

<DIV7 N="82" NODE="27:2.0.1.1.2.12.82" TYPE="SUBJGRP">
<HEAD>Changes in Name</HEAD>


<DIV8 N="§ 41.220" NODE="27:2.0.1.1.2.12.82.1" TYPE="SECTION">
<HEAD>§ 41.220   Change in individual name.</HEAD>
<P>When there is a change in the name of an individual operating under a permit as an importer of tobacco products, the importer must, within 30 days of the change, submit an application on TTB F 5230.5 for an amended permit.


</P>
</DIV8>


<DIV8 N="§ 41.221" NODE="27:2.0.1.1.2.12.82.2" TYPE="SECTION">
<HEAD>§ 41.221   Change in trade name.</HEAD>
<P>When there is a change in, or an addition or discontinuance of, a trade name used by an importer of tobacco products in connection with operations authorized by the permit, the importer must, within 30 days of the change, apply for an amended permit on TTB F 5230.5 to reflect such change. The importer must also furnish a true copy of any new trade name certificate or document issued to the business, or a statement in lieu thereof, as required by § 41.195.


</P>
</DIV8>


<DIV8 N="§ 41.222" NODE="27:2.0.1.1.2.12.82.3" TYPE="SECTION">
<HEAD>§ 41.222   Change in corporate name.</HEAD>
<P>When there is a change in the corporate name of an importer of tobacco products, the importer must, within 30 days of such change, apply for an amended permit on TTB F 5230.5. The importer must also furnish such documents as may be necessary to establish that the corporate name has been changed.


</P>
</DIV8>

</DIV7>


<DIV7 N="83" NODE="27:2.0.1.1.2.12.83" TYPE="SUBJGRP">
<HEAD>Changes in Ownership or Control</HEAD>


<DIV8 N="§ 41.223" NODE="27:2.0.1.1.2.12.83.4" TYPE="SECTION">
<HEAD>§ 41.223   Fiduciary successor.</HEAD>
<P>If an administrator, executor, receiver, trustee, assignee, or other fiduciary is to take over the business of an importer of tobacco products as a continuing operation, the fiduciary must, before commencing operations, apply for a permit in accordance with § 41.191 and furnish certified copies, in duplicate, of the order of the court or other pertinent documents, showing his or her appointment and qualification as the fiduciary. Where a fiduciary intends only to liquidate the business, qualification as an importer of tobacco products is not required if the fiduciary promptly files with the appropriate TTB officer a written statement to that effect.


</P>
</DIV8>


<DIV8 N="§ 41.224" NODE="27:2.0.1.1.2.12.83.5" TYPE="SECTION">
<HEAD>§ 41.224   Transfer of ownership.</HEAD>
<P>If a transfer in ownership of the business of an importer of tobacco products (including a change of any member of a partnership or association) is to be made, the importer must give written notice to the appropriate TTB officer, naming the proposed successor and the desired effective date of the transfer. Before commencing operations, the proposed successor must qualify as an importer of tobacco products in accordance with subpart K of this part. The importer must give notice of the transfer, and the proposed successor must apply for the permit, in sufficient time for examination and approval of the application before the desired date of the transfer. The predecessor importer must make a concluding report in accordance with § 41.206 and must surrender the permit with that report. The successor importer must make a first report in accordance with § 41.206.


</P>
</DIV8>


<DIV8 N="§ 41.225" NODE="27:2.0.1.1.2.12.83.6" TYPE="SECTION">
<HEAD>§ 41.225   Change in officers, directors, or stockholders of a corporation.</HEAD>
<P>Upon election or appointment (excluding successive reelection or reappointment) of any officer or director of a corporation operating as an importer of tobacco products, or upon any occurrence that results in a person acquiring ownership or control of more than ten percent in aggregate of the outstanding stock of such corporation, the importer must, within 30 days of that action, so notify the appropriate TTB officer in writing, giving the identity of the person. In the event that the acquisition of more than 10 percent in aggregate of the outstanding stock of the corporation results in a change of control of the corporation, the provisions of § 41.226 will apply. When there is any change in the authority furnished under § 41.196 for officers to act on behalf of the corporation, the importer must immediately so notify the appropriate TTB officer in writing.


</P>
</DIV8>


<DIV8 N="§ 41.226" NODE="27:2.0.1.1.2.12.83.7" TYPE="SECTION">
<HEAD>§ 41.226   Change in control of a corporation.</HEAD>
<P>When the issuance, sale, or transfer of the stock of a corporation operating as an importer of tobacco products results in a change in the identity of the principal stockholders exercising actual or legal control of the operations of the corporation, the corporate importer must, within 30 days after the change occurs, apply for a new permit on TTB F 5230.4. If the application is not timely made, the present permit will automatically terminate at the expiration of that 30-day period, and the importer must dispose of all tobacco products on hand in accordance with this part, make a concluding report in accordance with § 41.206, and surrender the permit with that report. If the application for a new permit is timely made, the present permit will continue in effect pending final action with respect to the new application.


</P>
</DIV8>

</DIV7>


<DIV7 N="84" NODE="27:2.0.1.1.2.12.84" TYPE="SUBJGRP">
<HEAD>Changes in Location or Address</HEAD>


<DIV8 N="§ 41.227" NODE="27:2.0.1.1.2.12.84.8" TYPE="SECTION">
<HEAD>§ 41.227   Change in location.</HEAD>
<P>When an importer of tobacco products intends to relocate its principal business office, the importer must, before commencing operations at the new location, make application on TTB F 5230.5 for, and obtain, an amended permit.


</P>
</DIV8>


<DIV8 N="§ 41.228" NODE="27:2.0.1.1.2.12.84.9" TYPE="SECTION">
<HEAD>§ 41.228   Change in address.</HEAD>
<P>When any change occurs in the address, but not the location, of the principal business office of an importer of tobacco products as a result of action by local authorities, the importer must, within 30 days of such change, make application on TTB F 5230.5 for an amended permit.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="M" NODE="27:2.0.1.1.2.13" TYPE="SUBPART">
<HEAD>Subpart M—Importation of Processed Tobacco</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-78, 74 FR 29416, June 22, 2009, unless otherwise noted.


</PSPACE></SOURCE>

<DIV7 N="85" NODE="27:2.0.1.1.2.13.85" TYPE="SUBJGRP">
<HEAD>Qualification Requirements for Importers of Processed Tobacco</HEAD>


<DIV8 N="§ 41.231" NODE="27:2.0.1.1.2.13.85.1" TYPE="SECTION">
<HEAD>§ 41.231   Persons required to qualify.</HEAD>
<P>Except as otherwise provided in § 41.233, every person, before commencing business as an importer of processed tobacco, must apply for, and obtain, either a permit as an importer of processed tobacco or, if the person holds a TTB permit as an importer of tobacco products, an amendment to the existing permit authorizing the importation of processed tobacco under such permit, in accordance with the provisions of this subpart.


</P>
</DIV8>


<DIV8 N="§ 41.232" NODE="27:2.0.1.1.2.13.85.2" TYPE="SECTION">
<HEAD>§ 41.232   Application for permit or amendment of existing permit.</HEAD>
<P>(a) <I>Application for permit.</I> Any person who intends to engage in the business of importing processed tobacco, and who is not engaged in the business of importing tobacco products, must apply for a permit by completing and submitting TTB F 5230.4 in accordance with the instructions on that form. All documents required under this subpart to be furnished with the application must be included with the application when it is submitted. If the appropriate TTB officer determines that the application is incomplete and, for that reason, does not include sufficient information for TTB to make a decision on the application, and if the applicant has not provided the missing information within one year of a written request for it or within any shorter time period specified in the written request, the application will be deemed abandoned and the applicant will be notified in writing that no permit will be issued in response to the incomplete application. In the case of an application filed in accordance with § 41.233, such notification will constitute the final action on the application and such party will no longer be able to continue as an importer of processed tobacco.
</P>
<P>(b) <I>Application for amendment of existing permit.</I> Any person who holds a TTB permit as an importer of tobacco products may also qualify to engage in business as an importer of processed tobacco under the same permit by making application on TTB F 5230.5 for an amended permit and receiving TTB authorization.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29416, June 22, 2009, as amended by T.D. TTB-104, 77 FR 37304, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 41.233" NODE="27:2.0.1.1.2.13.85.3" TYPE="SECTION">
<HEAD>§ 41.233   Transitional rule.</HEAD>
<P>(a) Any person who:
</P>
<P>(1) On April 1, 2009, had already been engaged in business as an importer of processed tobacco; and
</P>
<P>(2) Before June 30, 2009, submits an application for a permit or an amendment of an existing permit, as provided in § 41.232, to engage in such business, may continue to engage in that business pending final action on the application.
</P>
<P>(b) Pending final action on the application, all provisions of chapter 52 of the Internal Revenue Code of 1986 shall apply to the applicant in the same manner and to the same extent as if the applicant were a holder of a permit as an importer of processed tobacco or an amended permit authorizing the importation of processed tobacco under chapter 52 and this subpart. Upon receipt of an application, the appropriate TTB officer will provide the applicant with a written acknowledgement that may be used for a limited period as confirmation of TTB authorization to engage in such business of an importer of processed tobacco.


</P>
</DIV8>


<DIV8 N="§ 41.234" NODE="27:2.0.1.1.2.13.85.4" TYPE="SECTION">
<HEAD>§ 41.234   Corporate documents.</HEAD>
<P>Every corporation that files an application for a permit as an importer of processed tobacco must furnish with its application for the permit required by § 41.231 a true copy of the corporate charter or a certificate of corporate existence or incorporation executed by the appropriate officer of the State in which incorporated. The corporation must likewise furnish duly authenticated extracts of the stockholders' meetings, bylaws, or directors' meetings, listing the offices the incumbents of which are authorized to sign documents or otherwise act in behalf of the corporation in matters relating to 26 U.S.C. chapter 52, and regulations issued thereunder. The corporation must also furnish evidence, in duplicate, of the identity of the officers and directors and each person who holds more than ten percent of the stock of such corporation. Where any of the information required by this section has previously been filed with the appropriate TTB officer and such information is currently complete and accurate, a written statement to that effect will be sufficient for the purpose of this section.


</P>
</DIV8>


<DIV8 N="§ 41.235" NODE="27:2.0.1.1.2.13.85.5" TYPE="SECTION">
<HEAD>§ 41.235   Articles of partnership or association.</HEAD>
<P>Every partnership or association that files an application for a permit as an importer of processed tobacco must furnish with its application for the permit required by § 41.231 a true copy of the articles of partnership or association, if any, or certificate of partnership or association where required to be filed by any State, county, or municipality. Where a partnership or association has previously filed such documents with the appropriate TTB officer and such documents are currently complete and accurate, a written statement, in duplicate, to that effect by the partnership or association will be sufficient for the purpose of this section.


</P>
</DIV8>


<DIV8 N="§ 41.236" NODE="27:2.0.1.1.2.13.85.6" TYPE="SECTION">
<HEAD>§ 41.236   Trade name certificate.</HEAD>
<P>Every person that files an application for a permit as an importer of processed tobacco operating under a trade name must furnish with the application for the permit required by § 41.231 a true copy of the certificate or other document, if any, issued by a State, county, or municipal authority in connection with the transaction of business under such trade name. If no such certificate or other document is so required, a written statement, in duplicate, to that effect by such person will be sufficient for the purpose of this section.


</P>
</DIV8>


<DIV8 N="§ 41.237" NODE="27:2.0.1.1.2.13.85.7" TYPE="SECTION">
<HEAD>§ 41.237   Additional information.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may require such additional information as deemed necessary to determine whether the applicant is entitled to obtain either a permit as an importer of tobacco products or, if holding a permit as an importer of processed tobacco, an amended permit authorizing the importation of processed tobacco, under this subpart. The applicant must, when required by the appropriate TTB officer, furnish as a part of the application for the permit or authorization such additional information as may be necessary for the appropriate TTB officer to determine whether the applicant is entitled to a permit or an amended permit.
</P>
<P>(b) <I>Business premises.</I> Every person that files an application for a permit required by § 41.231 as an importer of processed tobacco must furnish, with its application for the permit, the address to be used as the principal business office where the records and reports required by the subpart must be maintained pursuant to § 41.263. The applicant must also include the location (by physical address or other means if there is no physical address) of any premises used for the storage of processed tobacco imported or received. For permits issued prior to June 21, 2012, the permittee has 180 days from June 21, 2012, to submit the information required under this paragraph.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29416, June 22, 2009, as amended by T.D. TTB-104, 77 FR 37304, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 41.238" NODE="27:2.0.1.1.2.13.85.8" TYPE="SECTION">
<HEAD>§ 41.238   Investigation of applicant.</HEAD>
<P>Appropriate TTB officers may inquire or investigate to verify the information in connection with an application for a permit. The investigation will ascertain whether the applicant is eligible for a permit. A permit may be denied if the applicant (including, in the case of a corporation, any officer, director, or principal stockholder and, in the case of a partnership, a partner)—
</P>
<P>(a) Is, by reason of his business experience, financial standing, or trade connections or by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with this chapter;
</P>
<P>(b) Has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes; or
</P>
<P>(c) Has failed to disclose any material information required or made any material false statement in the application therefor.


</P>
</DIV8>


<DIV8 N="§ 41.239" NODE="27:2.0.1.1.2.13.85.9" TYPE="SECTION">
<HEAD>§ 41.239   Notice of contemplated disapproval.</HEAD>
<P>If the appropriate TTB officer has reason to believe that the applicant is not entitled to a permit, the appropriate TTB officer will promptly give to the applicant notice of the contemplated disapproval of the application and opportunity for hearing thereon in accordance with part 71 of this chapter. If, after such notice and opportunity for hearing, the appropriate TTB officer finds that the applicant is not entitled to a permit, an order will be prepared stating the findings on which the application is denied.


</P>
</DIV8>


<DIV8 N="§ 41.240" NODE="27:2.0.1.1.2.13.85.10" TYPE="SECTION">
<HEAD>§ 41.240   Issuance of permit.</HEAD>
<P>If the application for the permit required under this subpart is approved, the appropriate TTB officer will issue the permit on TTB F 5200.24.
</P>
<CITA TYPE="N">[78 FR 38573, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.241" NODE="27:2.0.1.1.2.13.85.11" TYPE="SECTION">
<HEAD>§ 41.241   Duration of permit.</HEAD>
<P>(a) <I>Permits with an effective date on or after August 26, 2013.</I> A permit issued under § 41.240 bearing an effective date of August 26, 2013 or later will be valid for a period of five years from the effective date shown on the permit. Provided a timely application for renewal is filed under § 41.242, the expiring permit will continue in effect until final action is taken by TTB on the application for renewal.
</P>
<P>(b) <I>Permits with an effective date prior to August 26, 2013.</I> A person operating as an importer of processed tobacco that holds a permit bearing an effective date that is prior to August 26, 2013 and that wishes to continue operations as an importer of processed tobacco must apply for and receive a new permit issued under § 41.240. The person must file the application under § 41.232 within 150 days after August 26, 2013, or within 30 days prior to the expiration date shown on the existing permit form, whichever is later. If a person timely files an application but that application is not complete (that is, the applicant has not submitted information or documentation sufficient for TTB to take action on the permit), and if the applicant has not provided the missing information within one year of a written request for it or within any shorter time period specified in the written request, the permit application will be deemed abandoned and the applicant will be notified in writing that no permit will be issued in response to the incomplete application. Provided that a timely application is filed, the person may continue operations under the existing permit until TTB takes final action on the application for the new permit.
</P>
<CITA TYPE="N">[78 FR 38573, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.242" NODE="27:2.0.1.1.2.13.85.12" TYPE="SECTION">
<HEAD>§ 41.242   Renewal of permit.</HEAD>
<P>(a) <I>Permits with an effective date on or after August 26, 2013.</I> A person operating as an importer of processed tobacco that holds a permit issued under § 41.240 bearing an effective date of August 26, 2013 or later, and that wishes to continue operations beyond the expiration of the permit, must apply for renewal of the permit within 30 days prior to expiration of the permit, in accordance with instructions provided with the renewal application form. Permits will be renewed only for those persons that have engaged in the importing of processed tobacco under the current permit during the one year period immediately prior to the date of the application to renew.
</P>
<P>(b) <I>Permits with an effective date prior to August 26, 2013.</I> A person may not obtain renewal of a permit bearing an effective date prior to August 26, 2013. A person operating as an importer of processed tobacco that holds a permit bearing an effective date prior to August 26, 2013, and that wishes to continue in operations as an importer of processed tobacco, must apply for and receive a new permit for issuance under § 41.240 and in accordance with the rules contained in § 41.241(b).
</P>
<CITA TYPE="N">[78 FR 38573, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 41.243" NODE="27:2.0.1.1.2.13.85.13" TYPE="SECTION">
<HEAD>§ 41.243   Retention of permit and supporting documents.</HEAD>
<P>The importer of processed tobacco must retain the permit, together with the copy of the application and supporting documents returned with the permit, at the same place where the records required by this subpart are kept. The permit and supporting documents must be made available for inspection by any appropriate TTB officer upon request.


</P>
</DIV8>

</DIV7>


<DIV7 N="86" NODE="27:2.0.1.1.2.13.86" TYPE="SUBJGRP">
<HEAD>Changes After Original Qualification</HEAD>


<DIV8 N="§ 41.251" NODE="27:2.0.1.1.2.13.86.14" TYPE="SECTION">
<HEAD>§ 41.251   Change in name.</HEAD>
<P>(a) <I>Change in individual name.</I> When there is a change in the name of an individual operating under a permit as an importer of processed tobacco, the importer must, within 30 days of such change, make application on TTB F 5230.5 for an amended permit.
</P>
<P>(b) <I>Change in trade name.</I> When there is a change in a trade name used by an importer of processed tobacco in connection with operations authorized by the permit, the importer must, within 30 days of such change, make application on TTB F 5230.5 for an amended permit to reflect such change. This requirement also applies to the addition or discontinuance of a trade name. The importer must also furnish a true copy of any new trade name certificate or document issued to the importer, or statement in lieu thereof, required by § 41.236.
</P>
<P>(c) <I>Change in corporate name.</I> When there is a change in the corporate name of an importer of processed tobacco, the importer must, within 30 days of such change, make application on TTB F 5230.5 for an amended permit. The importer must also furnish such documents as may be necessary to establish that the corporate name has been changed.


</P>
</DIV8>


<DIV8 N="§ 41.252" NODE="27:2.0.1.1.2.13.86.15" TYPE="SECTION">
<HEAD>§ 41.252   Change in ownership or control.</HEAD>
<P>(a) <I>Fiduciary successor.</I> If an administrator, executor, receiver, trustee, assignee, or other fiduciary is to take over the business of an importer of processed tobacco as a continuing operation, such fiduciary shall, before commencing operations, make application for permit in accordance with § 41.232, furnish certified copies, in duplicate, of the order of the court, or other pertinent documents, showing his appointment and qualification as such fiduciary. However, where a fiduciary intends only to liquidate the business, qualification as an importer of processed tobacco will not be required if he promptly files with the appropriate TTB officer a written statement to that effect.
</P>
<P>(b) <I>Transfer of ownership.</I> If a transfer in ownership of the business of an importer of processed tobacco (including a change of any member of a partnership or association) is to be made, such importer shall give notice, in writing, to the appropriate TTB officer, naming the proposed successor and the desired effective date of the transfer. The proposed successor must, before commencing operations, qualify as an importer of processed tobacco in accordance with this subpart. The importer must give notice of the transfer, and the proposed successor must make application for permit, in ample time for examination and approval thereof before the desired date of such change. The predecessor must make a concluding report, in accordance with § 41.262, and surrender the permit with the report. The successor must make a first report, in accordance with § 41.262.
</P>
<P>(c) <I>Change in officers, directors, or stockholders of a corporation.</I> Upon election or appointment (excluding successive reelection or reappointment) of any officer or director of a corporation operating as an importer of processed tobacco, or upon any occurrence that results in a person acquiring ownership or control of more than ten percent in aggregate of the outstanding stock of such corporation, the importer shall, within 30 days of such action, so notify the appropriate TTB officer in writing, giving the identity of such person. When there is any change in the authority furnished under § 41.271 for officers to act on behalf of the corporation, the importer must immediately so notify the appropriate TTB officer in writing.
</P>
<P>(d) <I>Change in control of corporation.</I> When the issuance, sale, or transfer of the stock of a corporation operating as an importer of processed tobacco results in a change in the identity of the principal stockholders exercising actual or legal control of the operations of the corporation, the corporate manufacturer must, within 30 days after the change occurs, make application on TTB F 5230.4 for a new permit. Otherwise, the present permit shall be automatically terminated at the expiration of such 30-day period, and the importer must make a concluding report, in accordance with § 41.262, and surrender the permit with the report. If the application for a new permit is timely made, the present permit will continue in effect pending final action with respect to such application.


</P>
</DIV8>


<DIV8 N="§ 41.253" NODE="27:2.0.1.1.2.13.86.16" TYPE="SECTION">
<HEAD>§ 41.253   Change in location or address.</HEAD>
<P>Whenever an importer of processed tobacco intends to relocate the principal business office, the importer must, before commencing operations at the new location, make application on TTB F 5230.5, and obtain an amended permit. Whenever any change occurs in the address, but not the location, of the principal business office of an importer of processed tobacco, as a result of action of local authorities, the importer must, within 30 days of such change, make application on TTB F 5230.5 for an amended permit. Whenever the importer wishes to change the location of the premises used for the storage of processed tobacco imported or received by the importer to an extent that would be inconsistent with the location information submitted with the importer's last permit application, the importer must apply for, and obtain, an amended permit before such a change in premises takes place.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29416, June 22, 2009, as amended by T.D. TTB-104, 77 FR 37304, June 21, 2012]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="87" NODE="27:2.0.1.1.2.13.87" TYPE="SUBJGRP">
<HEAD>Operations of Importers of Processed Tobacco</HEAD>


<DIV8 N="§ 41.261" NODE="27:2.0.1.1.2.13.87.17" TYPE="SECTION">
<HEAD>§ 41.261   Records.</HEAD>
<P>(a) Any person who imports, or who knowingly causes to be imported, processed tobacco must make and keep records of operations and transactions. A person purchasing processed tobacco from the importer in a domestic transaction and who does not knowingly cause the processed tobacco to be imported is not required to make and keep records unless the terms and conditions of the importation are controlled by the person placing the order with the importer (for example, the importer is not an independent contractor but the agent of the person placing the order). Records maintained must reflect the date and quantity of processed tobacco:
</P>
<P>(1) Imported;
</P>
<P>(2) Received otherwise than through importation, together with the name and address of the person from whom it was received;
</P>
<P>(3) Returned to customs custody or exported;
</P>
<P>(4) Transferred or sold to a person who holds a TTB permit as an importer or manufacturer of tobacco products or of processed tobacco or as an export warehouse proprietor;
</P>
<P>(5) Except in the case of returns to customs custody or exportations, transferred or sold to a person who does not hold a TTB permit as an importer or manufacturer of tobacco products or of processed tobacco or as an export warehouse proprietor; and
</P>
<P>(6) Lost or destroyed; and
</P>
<P>(7) Transferred between buildings that are covered under the same permit but that are not located in the same city, town, village, or State.
</P>
<P>(b) The records of any importer who transfers or sells processed tobacco to a person who does not hold a TTB permit as an importer or manufacturer of tobacco products or of processed tobacco or as an export warehouse proprietor must include dated, commercial records that show the following information about each removal:
</P>
<P>(1) The full name and business address (including city and State) of the purchaser (if there is a purchaser) or the full name and business address of the recipient (if there is no purchaser), or personal address if the purchaser or recipient is not a business;
</P>
<P>(2) The full name, business address (including city and State), and driver's license number of the person picking up the processed tobacco for delivery;
</P>
<P>(3) The license number of the vehicle in which the processed tobacco is picked up for delivery to purchaser or transferee;
</P>
<P>(4) The street address of the destination of the processed tobacco;
</P>
<P>(5) The quantity of processed tobacco in the shipment.
</P>
<P>(c) The entries in the records required under this section must be made for each day by the close of the business day following the day on which the transfer or sale occurs. There is no particular format prescribed for the records required under this section (and commercial records may be used), although the required information must be readily ascertainable from the records kept. In the case of a removal under paragraph (a)(5) of this section that involves shipment by a common carrier, the appropriate TTB officer may approve an alternate method or procedure pursuant to § 41.26 of this part through which the importer may keep records regarding the common carrier and its means of tracking (including pick up and delivery) of the shipment in lieu of the information required by paragraphs (b)(2) and (b)(3) of this section. No records are required to be kept under this part regarding processed tobacco within customs custody, although this will not preclude TTB review of records related to such processed tobacco as may be appropriate for purposes of the enforcement of the provisions of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5741)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29416, June 22, 2009, as amended by T.D. TTB-104, 77 FR 37305, June 21, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 41.262" NODE="27:2.0.1.1.2.13.87.18" TYPE="SECTION">
<HEAD>§ 41.262   Reports.</HEAD>
<P>(a) <I>General.</I> Every importer of processed tobacco must prepare a monthly report on TTB F 5220.6 in accordance with the instructions for the form. The report must be prepared at the times specified in this section and must be prepared whether or not any operations or transactions occurred during the period covered by the report. The importer must retain a copy of each report in accordance with the provisions of this subpart. The importer need not include in the reports under this part information regarding processed tobacco that is in customs custody.
</P>
<P>(b) <I>First report(s).</I> The first monthly report must be submitted by the 15th day of the month following the month in which the permit is issued. If the importer is operating as an importer of processed tobacco under the transitional rule in accordance with § 41.233, the importer must submit the first report by the 15th day of the month following the month in which TTB provides written acknowledgement of the receipt of the application filed under § 41.232.
</P>
<P>(c) <I>Reports of no activity.</I> Reports with the notation “No Activity” must be made for those months in which no activity occurs.
</P>
<P>(d) <I>Reports of sales and transfers.</I> (1) Except as otherwise provided in paragraphs (d)(2) and (3) of this section, an importer that exports processed tobacco or transfers or sells processed tobacco to someone other than a person holding a permit as an importer or manufacturer of processed tobacco or tobacco products or as an export warehouse proprietor must report each such exportation, sale, or transfer on TTB F 5250.2 by the close of the next business day following the day of exportation, sale, or transfer, in accordance with the instructions on the form.
</P>
<P>(2) In the case of removals for export, as an alternative to the procedure prescribed in paragraph (d)(1) of this section, the importer may submit to TTB monthly summary reports of such removals in a format approved by the appropriate TTB officer. Prior to the use of such an alternate procedure, the importer must obtain written approval from the appropriate TTB officer.
</P>
<P>(3) An importer that ships or transfers processed tobacco for scientific testing or testing of equipment which results in the destruction of the processed tobacco or the return of the processed tobacco is not required to report such shipment or transfer on TTB F 5250.2.
</P>
<P>(e) <I>Concluding report.</I> When a transfer of ownership of the business of an importer of processed tobacco described in § 41.252(b) occurs, or when a change in control of a corporation described in § 41.252(d) occurs, a concluding report with the notation “Concluding Report” must be made for the month or partial month during which the transfer of ownership or change in control becomes effective. A concluding report must also be made for the month or partial month during which an importer concludes operations under the permit or authorization.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5722)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29416, June 22, 2009, as amended by T.D. TTB-104, 77 FR 37305, June 21, 2012; T.D. TTB-196, 89 FR 87947, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 41.263" NODE="27:2.0.1.1.2.13.87.19" TYPE="SECTION">
<HEAD>§ 41.263   Maintenance of records and reports.</HEAD>
<P>All records and reports required by this subpart must be maintained separately, chronologically by transaction or reporting date, at the importer's principal place of business. The appropriate TTB officer may, pursuant to a written request, authorize files, or an individual file, to be maintained at another business location under the control of the importer, provided that the alternative location does not cause undue inconvenience to TTB when attempting to examine the files and does not delay the timely transmittal of any documents required to be submitted to TTB.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5741)


</SECAUTH>
</DIV8>


<DIV8 N="§ 41.264" NODE="27:2.0.1.1.2.13.87.20" TYPE="SECTION">
<HEAD>§ 41.264   Inventories.</HEAD>
<P>Every importer of processed tobacco must provide a true and accurate inventory of any processed tobacco stored on premises designated pursuant to § 41.237. The importer must make such an inventory at the time of commencing business, at the time of transferring ownership, at the time of changing the location of facilities in which processed tobacco is stored, at the time of concluding business, and at such other time as the appropriate TTB officer may require. A specific format is not prescribed. For permits issued prior to June 21, 2012, the permittee has 180 days from June 21, 2012, to make an inventory as required under this paragraph.
</P>
<CITA TYPE="N">[T.D. TTB-104, 77 FR 37305, June 21, 2012]




</CITA>
</DIV8>


<DIV8 N="§ 41.265" NODE="27:2.0.1.1.2.13.87.21" TYPE="SECTION">
<HEAD>§ 41.265   Processed tobacco importation process.</HEAD>
<P>(a) <I>General.</I> In the case of processed tobacco imported into the United States, the importer, if filing electronically, must file with U.S. Customs and Border Protection (CBP) the information specified in paragraph (b) of this section at the time of filing the entry or entry summary, as appropriate, along with any other information that is required by CBP to be filed as part of the entry or entry summary for CBP purposes. If the information required by this section is required by, and filed with, CBP for purposes of meeting CBP requirements, such filing will also satisfy the requirements of this section. Regardless of the method of filing, the importer must retain as a record the information required by this section, any information required as part of the entry or entry summary by CBP for CBP purposes, and any supporting documentation, and must make such records available upon request by the appropriate TTB officer or a customs officer.
</P>
<P>(b) <I>Information required.</I> The following information is required, as described in paragraph (a) of this section:
</P>
<P>(1) The number of the importer's permit issued under subpart K or M of this part;
</P>
<P>(2) The employer identification number (EIN) assigned to the importer by the Internal Revenue Service and provided to TTB by the importer on its permit application to TTB on TTB Form 5230.4;
</P>
<P>(3) The name and address of the ultimate consignee;
</P>
<P>(4) A description of the product as “processed tobacco” for Internal Revenue Code purposes; and
</P>
<P>(5) The quantity of processed tobacco.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0064)
</APPRO>
<CITA TYPE="N">[81 FR 94210, Dec. 22, 2016]






</CITA>
</DIV8>

</DIV7>


<DIV7 N="88" NODE="27:2.0.1.1.2.13.88" TYPE="SUBJGRP">
<HEAD>Other Provisions Applicable to Importers of Processed Tobacco</HEAD>


<DIV8 N="§ 41.271" NODE="27:2.0.1.1.2.13.88.22" TYPE="SECTION">
<HEAD>§ 41.271   Power of attorney.</HEAD>
<P>If the application for a permit or authorization or any report or other document required to be executed under this subpart is to be signed by an individual (including one of the partners for a partnership or one of the members of an association) as an attorney in fact for any person, or if an individual is otherwise to officially represent such person, power of attorney on TTB F 5000.8 shall be furnished to the appropriate TTB officer. Such power of attorney is not required for persons whose authority is furnished with the corporate documents as required by § 41.234. Form 5000.8 does not have to be filed again with an appropriate TTB officer where such form has previously been submitted to TTB and is still in effect.


</P>
</DIV8>


<DIV8 N="§ 41.272" NODE="27:2.0.1.1.2.13.88.23" TYPE="SECTION">
<HEAD>§ 41.272   Cross reference.</HEAD>
<P>For other applicable provisions pertaining to forms prescribed, retention of records, interference with administration, alternate methods or procedures, emergency variations from requirements, penalties and forfeitures, and delegations of the Administrator, see subpart C of this part.


</P>
</DIV8>


<DIV8 N="§ 41.273" NODE="27:2.0.1.1.2.13.88.24" TYPE="SECTION">
<HEAD>§ 41.273   Suspension and revocation of permit.</HEAD>
<P>Where the appropriate TTB officer has reason to believe that an importer of processed tobacco has not in good faith complied with the provisions of 26 U.S.C. chapter 52, and regulations thereunder, or with any other provision of 26 U.S.C. with intent to defraud, or has violated any condition of his permit, or has failed to disclose any material information required or made any material false statement in the application for the permit, or is, by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with 26 U.S.C. chapter 52, or has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, the appropriate TTB officer shall issue an order, stating the facts charged, citing such person to show cause why his permit should not be suspended or revoked. Such citation shall be issued and opportunity for hearing afforded in accordance with part 71 of this chapter, which part is applicable to such proceedings. If, after hearing, the hearing examiner, or on appeal, the Administrator, finds that such person has not shown cause why his permit should not be suspended or revoked, such permit shall be suspended for such period as the appropriate TTB officer deems proper or shall be revoked.


</P>
</DIV8>

</DIV7>

</DIV6>

</DIV5>


<DIV5 N="44" NODE="27:2.0.1.1.3" TYPE="PART">
<HEAD>PART 44—EXPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES, WITHOUT PAYMENT OF TAX, OR WITH DRAWBACK OF TAX
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 448, 5701-5705, 5711-5713, 5721-5723, 5731-5734, 5741, 5751, 5754, 6061, 6065, 6109, 6151, 6402, 6404, 6806, 7011, 7212, 7342, 7606, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.




</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>Redesignated by T.D. ATF-464, 66 FR 43480, Aug. 20, 2001.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 44 appear by T.D. ATF-464, 66 FR 43480, Aug. 20, 2001, and T.D. ATF-480, 67 FR 30801-30803, May 8, 2002.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:2.0.1.1.3.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 44.1" NODE="27:2.0.1.1.3.1.105.1" TYPE="SECTION">
<HEAD>§ 44.1   Exportation of tobacco products, and cigarette papers and tubes, without payment of tax, or with drawback of tax.</HEAD>
<P>This part contains the regulations relating to the exportation (including supplies for vessels and aircraft) of tobacco products and cigarette papers and tubes, without payment of tax; the qualification of, and operations by, export warehouse proprietors; and the allowance of drawback of tax paid on tobacco products, and cigarette papers and tubes exported.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 48, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.2" NODE="27:2.0.1.1.3.1.105.2" TYPE="SECTION">
<HEAD>§ 44.2   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form. 
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46922, Sept. 23, 1981, as amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. ATF-480, 67 FR 30801, May 8, 2002; T.D. TTB-44, 71 FR 16952, Apr. 4, 2006; T.D. TTB-91, 76 FR 5480, Feb. 1, 2011; T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.3" NODE="27:2.0.1.1.3.1.105.3" TYPE="SECTION">
<HEAD>§ 44.3   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.44, Delegation of the Administrator's Authorities in 27 CFR Part 44, Exportation of Tobacco Products and Cigarette Papers and Tubes, Without Payment of Tax, or With Drawback of Tax. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16952, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.1.3.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 44.11" NODE="27:2.0.1.1.3.2.105.1" TYPE="SECTION">
<HEAD>§ 44.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, the following terms shall have the meanings given in this section, unless the context clearly indicates otherwise. Words in the plural form shall include the singular, and vice versa, and words indicating the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not listed which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.44, Delegation of the Administrator's Authorities in 27 CFR Part 44, Exportation of Tobacco Products and Cigarette Papers and Tubes, Without Payment of Tax, or With Drawback of Tax.
</P>
<P><I>Chewing tobacco.</I> Any leaf tobacco that is not intended to be smoked.
</P>
<P><I>Cigar.</I> Any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the definition of “cigarette” given in this section).
</P>
<P><I>Cigarette.</I> (a) Any roll of tobacco wrapped in paper or in any substance not containing tobacco, and
</P>
<P>(b) Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (a) of this definition.
</P>
<P><I>Cigarette paper.</I> Paper, or other material except tobacco, prepared for use as a cigarette wrapper.
</P>
<P><I>Cigarette tube.</I> Cigarette paper made into a hollow cylinder for use in making cigarettes.
</P>
<P><I>Customs officer.</I> An officer of U.S. Customs and Border Protection (CBP) or any agent or other person authorized by law to perform the duties of such an officer.
</P>
<P><I>Customs warehouse.</I> A customs bonded manufacturing warehouse, class 6, where cigars are manufactured of imported tobacco.
</P>
<P><I>District director of customs.</I> The district director of customs at a headquarters port of the district (except the district of New York, N.Y.); the area directors of customs in the district of New York, N.Y.; and the port director at a port not designated as a headquarters port.
</P>
<P><I>Exportation or export.</I> A severance of tobacco products or cigarette papers or tubes from the mass of things belonging to the United States with the intention of uniting them to the mass of things belonging to some foreign country. For the purposes of this part, shipment from the United States to Puerto Rico, the Virgin Islands, or a possession of the United States, shall be deemed exportation, as will the clearance from the United States of tobacco products and cigarette papers and tubes for consumption beyond the jurisdiction of the internal revenue laws of the United States, i.e., beyond the 3-mile limit or international boundary, as the case may be.
</P>
<P><I>Export warehouse.</I> A bonded internal revenue warehouse for the storage of tobacco products or cigarette papers or tubes or any processed tobacco, upon which the internal revenue tax has not been paid, for subsequent shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States.
</P>
<P><I>Export warehouse proprietor.</I> Any person who operates an export warehouse.
</P>
<P><I>Factory.</I> The premises of a manufacturer of tobacco products or cigarette papers and tubes in which that person carries on such business.
</P>
<P><I>Foreign-trade zone.</I> A foreign-trade zone established and operated pursuant to the Act of June 18, 1934, as amended.
</P>
<P><I>In bond.</I> The status of tobacco products and cigarette papers and tubes, which come within the coverage of a bond securing the payment of internal revenue taxes imposed by 26 U.S.C. 5701 or 7652, and in respect to which such taxes have not been determined as provided by regulations in this chapter, including (a) such articles in a factory or an export warehouse, (b) such articles removed, transferred, or released, pursuant to 26 U.S.C. 5704, and with respect to which relief from the tax liability has not occurred, and (c) such articles on which the tax has been determined, or with respect to which relief from the tax liability has occurred, which have been returned to the coverage of a bond.
</P>
<P><I>Manufacturer of cigarette papers and tubes.</I> Any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for his own personal use or consumption. 
</P>
<P>Manufacturer of tobacco products. (1) Any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco, other than:
</P>
<P>(i) A person who produces tobacco products solely for that person's own consumption or use; or
</P>
<P>(ii) A proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse.
</P>
<P>(2) The term “Manufacturer of tobacco products” includes any person who for commercial purposes makes available for consumer use (including such consumer's personal consumption or use under paragraph (1)(i) of this definition) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer's personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal use quantities.
</P>
<P><I>Package.</I> The immediate container in which tobacco products, processed tobacco, or cigarette papers or tubes are put up by the manufacturer and offered for sale or delivery to the ultimate consumer. For purposes of this definition, a container of processed tobacco, the contents of which weigh 10 pounds or less (including any added non-tobacco ingredients or constituents), that is removed within the meaning of this part, is deemed to be a package offered for sale or delivery to the ultimate consumer.
</P>
<P><I>Person.</I> An individual, partnership, association, company, corporation, estate, or trust.
</P>
<P><I>Pipe tobacco.</I> Any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe.
</P>
<P><I>Processed tobacco.</I> Processed tobacco is any tobacco that has undergone processing, but does not include tobacco products. For purposes of this definition, the processing of tobacco does not include the farming or growing of tobacco or the handling of tobacco solely for sale, shipment, or delivery to a manufacturer of tobacco products or processed tobacco, nor does the processing of tobacco include curing, baling, or packaging activities. For purposes of this definition, the processing of tobacco includes, but is not limited to, stemming (that is, removing the stem from the tobacco leaf), fermenting, threshing, cutting, or flavoring the tobacco, or otherwise combining the tobacco with non-tobacco ingredients.
</P>
<P><I>Removal or remove.</I> The removal of tobacco products or cigarette papers or tubes from either the factory or the export warehouse covered by the bond of the manufacturer or proprietor.
</P>
<P><I>Roll-your-own tobacco.</I> Any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes or cigars, or for use as wrappers thereof.
</P>
<P><I>Sale price.</I> The price for which large cigars are sold by the manufacturer, determined in accordance with §§ 40.22 or 41.39.
</P>
<P><I>Smokeless tobacco.</I> Any snuff or chewing tobacco.
</P>
<P><I>Snuff.</I> Any finely cut, ground, or powdered tobacco that is not intended to be smoked.
</P>
<P><I>Special tax.</I> The special (occupational) tax on manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors, imposed by 26 U.S.C. 5731.
</P>
<P><I>State.</I> “State” shall, for the purposes of this part, be construed to include the District of Columbia.
</P>
<P><I>Tobacco products.</I> Cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
</P>
<P><I>United States.</I> “United States” when used in a geographical sense shall include only the States and the District of Columbia.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>Zone operator.</I> The person to whom the privilege of establishing, operating, and maintaining a foreign-trade zone has been granted by the Foreign-Trade Zones Board created by the Act of June 18, 1934, as amended.
</P>
<P><I>Zone restricted status.</I> The status assigned to tobacco products and cigarette papers and cigarette tubes taken into a foreign trade zone from the customs territory of the United States for the sole purpose of exportation or storage until exported.
</P>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13556, Mar. 31, 1978] 
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 44.11, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV6>


<DIV6 N="Ba" NODE="27:2.0.1.1.3.3" TYPE="SUBPART">
<HEAD>Subpart Ba—Special (Occupational) Taxes</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-271, 53 FR 17563, May 17, 1988, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 44.31" NODE="27:2.0.1.1.3.3.105.1" TYPE="SECTION">
<HEAD>§ 44.31   Liability for special tax.</HEAD>
<P>(a) <I>Export warehouse proprietor.</I> Every export warehouse proprietor shall pay a special (occupational) tax at a rate specified by § 44.32. The tax shall be paid on or before the date of commencing the business of an export warehouseman, and thereafter every year on or before July 1. On commencing business, the tax shall be computed from the first day of the month in which liability is incurred, through the following June 30. Thereafter, the tax shall be computed for the entire year (July 1 through June 30).
</P>
<P>(b) [Reserved]
</P>
<P>(c) <I>Each place of business taxable.</I> An export warehouse proprietor under this part incurs special tax liability at each place of business in which an occupation subject to special tax is conducted. A place of business means the entire office, plant or area of the business in any one location under the same proprietorship. Passageways, streets, highways, rail crossings, waterways, or partitions dividing the premises are not sufficient separation to require additional special tax, if the divisions of the premises are otherwise contiguous.
</P>
<P>(d) <I>Payment of tax.</I> Special tax must be paid by return. The prescribed return is TTB Form 5630.5t, Special Tax Registration and Return—Tobacco. Special tax returns, with payment of tax, must be filed with TTB in accordance with the instructions on the form and the requirements of subpart D of part 46 of this chapter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5731, 5733)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-271, 53 FR 17563, May 17, 1988, as amended by T.D. TTB-79, 74 FR 37419, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 44.32" NODE="27:2.0.1.1.3.3.105.2" TYPE="SECTION">
<HEAD>§ 44.32   Rate of special tax.</HEAD>
<P>(a) <I>General.</I> Title 26 U.S.C. 5731(a)(3) imposes a special tax of $1,000 per year on every export warehouse proprietor.
</P>
<P>(b) <I>Reduced rate for small proprietors.</I> Title 26 U.S.C. 5731(b) provides for a reduced rate of $500 per year with respect to any export warehouse proprietor whose gross receipts (for the most recent taxable year ending before the first day of the taxable period to which the special tax imposed by § 44.31 relates) are less than $500,000. The “taxable year” to be used for determining gross receipts is the taxpayer's income tax year. All gross receipts of the taxpayer shall be included, not just the gross receipts of the business subject to special tax. Proprietors of new businesses that have not yet begun a taxable year, as well as proprietors of existing businesses that have not yet ended a taxable year, who commence a new activity subject to special tax, qualify for the reduced special (occupational) tax rate, unless the business is a member of a “controlled group”; in that case, the rules of paragraph (c) of this section shall apply.
</P>
<P>(c) <I>Controlled group.</I> All persons treated as one taxpayer under 26 U.S.C. 5061(e)(3) shall be treated as one taxpayer for the purpose of determining gross receipts under paragraph (b) of this section. “Controlled group” means a controlled group of corporations, as defined in 26 U.S.C. 1563 and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place they appear in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of this section.
</P>
<P>(d) <I>Short taxable year.</I> Gross receipts for any taxable year of less than 12 months shall be annualized by multiplying the gross receipts for the short period by 12 and dividing the result by the number of months in the short period as required by 26 U.S.C. 448(c)(3).
</P>
<P>(e) <I>Returns and allowances.</I> Gross receipts for any taxable year shall be reduced by returns and allowances made during such year under 26 U.S.C. 448(c)(3).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 448, 5061, 5731)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.33" NODE="27:2.0.1.1.3.3.105.3" TYPE="SECTION">
<HEAD>§ 44.33   Cross reference.</HEAD>
<P>For additional rules pertaining to liability for special (occupational) tax, filing special tax returns, issuance and examination of special tax stamps, and notification of changes to special tax stamps, see subpart D of part 46 of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37419, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§§ 44.34-44.36" NODE="27:2.0.1.1.3.3.105.4" TYPE="SECTION">
<HEAD>§§ 44.34-44.36   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.1.3.4" TYPE="SUBPART">
<HEAD>Subpart C—General</HEAD>


<DIV8 N="§ 44.61" NODE="27:2.0.1.1.3.4.105.1" TYPE="SECTION">
<HEAD>§ 44.61   Removals, withdrawals, and shipments authorized.</HEAD>
<P>(a) Tobacco products and cigarette papers and tubes may be removed from a factory or from an export warehouse, and cigars may be withdrawn from a customs bonded warehouse, without payment of tax for direct exportation or for delivery for subsequent exportation, in accordance with the provisions of this part.
</P>
<P>(b) Tobacco products and cigarette papers and tubes are eligible for removal or transfer in bond under this part only if they bear the marks, labels, and notices required by this part.
</P>
<CITA TYPE="N">[78 FR 38573, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 44.61a" NODE="27:2.0.1.1.3.4.105.2" TYPE="SECTION">
<HEAD>§ 44.61a   Deliveries to foreign-trade zones—export status.</HEAD>
<P>Tobacco products, and cigarette papers and tubes may be removed from a factory or an export warehouse and cigars may be withdrawn from a customs warehouse, without payment of tax, for delivery to a foreign-trade zone for exportation or storage pending exportation in accordance with the provisions of this part. Such articles delivered to a foreign-trade zone under this part shall be considered exported for the purpose of the statutes and bonds under which removed and for the purposes of the internal revenue laws generally and the regulations thereunder. However, export status is not acquired until an application for admission of the articles into the zone with zone restricted status has been approved by the district director of customs pursuant to the appropriate provisions of 19 CFR chapter I and the required certificate of receipt of the articles in the zone has been made on Form 5200.14 as prescribed in this part.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 72 Stat. 1418, as amended; 19 U.S.C. 81c; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9491, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28087, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71925, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.62" NODE="27:2.0.1.1.3.4.105.3" TYPE="SECTION">
<HEAD>§ 44.62   Restrictions on deliveries of tobacco products, and cigarette papers and tubes to vessels and aircraft, as supplies.</HEAD>
<P>Tobacco products, and cigarette papers and tubes may be removed from a factory or an export warehouse and cigars may be withdrawn from a customs warehouse, without payment of tax, for delivery to vessels and aircraft, as supplies, for consumption beyond the jurisdiction of the internal revenue laws of the United States, subject to the applicable provisions of this part. Deliveries may be made to vessels actually engaged in foreign, intercoastal, or noncontiguous territory trade (i.e., vessels operating on a regular schedule in trade or actually transporting passengers and/or cargo (a) between a port in the United States and a foreign port; (b) between the Atlantic and Pacific ports of the United States; or (c) between a port on the mainland of the United States and a port in Alaska, Hawaii, Puerto Rico, the Virgin Islands, or a possession of the United States; between a port in Alaska and a port in Hawaii; or between a port in Alaska or Hawaii and a port in Puerto Rico, the Virgin Islands, or a possession of the United States); to vessels clearing through customs for a port beyond the jurisdiction of the internal revenue laws of the United States; to vessels of war or other governmental activity; or to vessels of the United States documented to engage in the fishing business (including the whaling business), and foreign fishing (including whaling) vessels of 5 net tons or over. Such deliveries to vessels shall be subject to lading under customs supervision as provided in §§ 44.207 and 44.263. As a condition to the lading of the tobacco products, and cigarette papers and tubes, the customs authorities at the port of lading may, if they deem it necessary in order to protect the revenue, require assurances, satisfactory to them, from the master of the receiving vessel that the quantities to be laden are reasonable, considering the number of persons to be carried, the vessel's itinerary, the duration of its intended voyage, etc., and that such articles are to be used exclusively as supplies on the voyage. For this purpose, the customs authorities may require the master of the receiving vessel to submit, prior to lading, customs documentation for permission to lade the articles. Where the customs authorities allow only a portion of a shipment to be laden, the remainder of the shipment shall be returned to the bonded premises of the manufacturer, export warehouse proprietor, or customs warehouse proprietor making the shipment, or otherwise disposed of as approved by the appropriate TTB officer. Deliveries may be made to aircraft that are clearing through customs and that are enroute to a place beyond the jurisdiction of the internal revenue laws of the United States, and to aircraft operating on a regular schedule between U.S. customs areas as defined in the Air Commerce Regulations (19 CFR part 122). Deliveries may not be made to a vessel or aircraft stationed in the United States for an indefinite period and where its schedule does not include operations outside such jurisdiction.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 48, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71925, Dec. 22, 1999; T.D. ATF-480, 67 FR 30801, May 8, 2002; 78 FR 38573, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 44.63" NODE="27:2.0.1.1.3.4.105.4" TYPE="SECTION">
<HEAD>§ 44.63   Restrictions on disposal of tobacco products, and cigarette papers and tubes on vessels and aircraft.</HEAD>
<P>Tobacco products, and cigarette papers and tubes delivered to a vessel or aircraft, without payment of tax, pursuant to § 44.62, shall not be sold, offered for sale, or otherwise disposed of until the vessel or aircraft is outside the jurisdiction of the internal revenue laws of the United States, i.e., outside the 3-mile limit or international boundary, as the case may be, of the United States. Where the vessel or aircraft returns within the jurisdiction of the internal revenue laws with such articles on board, the articles shall be subject to treatment under the tariff laws of the United States.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704; 19 U.S.C. 1317)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 49, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.64" NODE="27:2.0.1.1.3.4.105.5" TYPE="SECTION">
<HEAD>§ 44.64   Responsibility for delivery or exportation of tobacco products, and cigarette papers and tubes.</HEAD>
<P>Responsibility for compliance with the provisions of this part with respect to the removal under bond of tobacco products, and cigarette papers and tubes, without payment of tax, for export, and for the proper delivery or exportation of such articles, and with respect to the exportation of tobacco products, and cigarette papers and tubes with benefit of drawback of tax, shall rest upon the manufacturer of such articles or the proprietor of an export warehouse or customs warehouse from whose premises such articles are removed for export, and upon the exporter who exports tobacco products, and cigarette papers and tubes with benefit of drawback of tax.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 49, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.65" NODE="27:2.0.1.1.3.4.105.6" TYPE="SECTION">
<HEAD>§ 44.65   Liability for tax on tobacco products, and cigarette papers and tubes.</HEAD>
<P>The manufacturer of tobacco products and cigarette papers and tubes shall be liable for the taxes imposed thereon by 26 U.S.C. 5701: <I>Provided,</I> That when tobacco products, and cigarette papers and tubes are transferred, without payment of tax, pursuant to 26 U.S.C. 5704, between the bonded premises of manufacturers and/or export warehouse proprietors, the transferee shall become liable for the tax upon receipt by him of such articles. Any person who possesses tobacco products, or cigarette papers or tubes in violation of 26 U.S.C. 5751(a)(1) or (2), shall be liable for a tax equal to the tax on such articles.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417, 1424; 26 U.S.C. 5703, 5751)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 49, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55856, Sept. 28, 1979; T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.66" NODE="27:2.0.1.1.3.4.105.7" TYPE="SECTION">
<HEAD>§ 44.66   Relief from liability for tax.</HEAD>
<P>A manufacturer of tobacco products or cigarette papers and tubes or an export warehouse proprietor is relieved of the liability for tax on tobacco products, or cigarette papers or tubes upon providing evidence satisfactory to the appropriate TTB officer of exportation or proper delivery. The evidence must comply with this part. Such evidence shall be furnished within 90 days of the date of removal of the tobacco products, or cigarette papers or tubes: <I>Provided,</I> That this period may be extended for good cause shown.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417; 26 U.S.C. 5703)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 49, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-480, 67 FR 30801, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.67" NODE="27:2.0.1.1.3.4.105.8" TYPE="SECTION">
<HEAD>§ 44.67   Payment of tax.</HEAD>
<P>(a) <I>General.</I> The taxes on tobacco products, and cigarette papers and tubes with respect to which the evidence described in § 44.66 is not timely furnished shall become immediately due and payable. The taxes shall be paid to TTB, with sufficient information to identify the taxpayer, the nature and purpose of the payment, and the articles covered by the payment. (TTB Form 5000.24 may be used for this purpose.)
</P>
<P>(b) <I>Large cigars.</I> The amount of tax liability on large cigars shall be based on the maximum tax rate prescribed in § 40.21 of this part, unless the person liable for the tax establishes that a lower tax rate is applicable.
</P>
<APPRO TYPE="N">(All recordkeeping requirements have been approved under OMB Control No. 1512-0180)
</APPRO>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18311, Mar. 24, 1981, as amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 1987; T.D. ATF-307, 55 FR 52745, Dec. 21, 1990; T.D. ATF-460, 66 FR 39093, July 27, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 44.68" NODE="27:2.0.1.1.3.4.105.9" TYPE="SECTION">
<HEAD>§ 44.68   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 44.69" NODE="27:2.0.1.1.3.4.105.10" TYPE="SECTION">
<HEAD>§ 44.69   Assessment.</HEAD>
<P>Whenever any person required by law to pay tax on tobacco products, and cigarette papers and tubes fails to pay such tax, the tax shall be ascertained and assessed against such person, subject to the limitations prescribed in 26 U.S.C. 6501. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. Except in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error, no such assessment shall be made until and after notice has been afforded such person to show cause against assessment. The person will be allowed 45 days from the date of such notice to show cause, in writing, against such assessment.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417; 26 U.S.C. 5703)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 49, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55856, Sept. 28, 1979; T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.70" NODE="27:2.0.1.1.3.4.105.11" TYPE="SECTION">
<HEAD>§ 44.70   Authority of appropriate TTB officers to enter premises.</HEAD>
<P>Any appropriate TTB officer may enter in the daytime any premises where tobacco products, or cigarette papers or tubes are produced or kept, so far as it may be necessary for the purpose of examining such articles. When such premises are open at night, any appropriate TTB officer may enter them, while so open, in the performance of his official duties. The owner of such premises, or person having the superintendence of the same, who refuses to admit any appropriate TTB officer or permit him to examine such articles shall be liable to the penalties prescribed by law for the offense.
</P>
<SECAUTH TYPE="N">(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 49, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.71" NODE="27:2.0.1.1.3.4.105.12" TYPE="SECTION">
<HEAD>§ 44.71   Interference with administration.</HEAD>
<P>Whoever, corruptly or by force or threats of force, endeavors to hinder or obstruct the administration of this part, or endeavors to intimidate or impede any appropriate TTB officer acting in his official capacity, or forcibly rescues or attempts to rescue or causes to be rescued any property, after it has been duly seized for forfeiture to the United States in connection with a violation of the internal revenue laws, shall be liable to the penalties prescribed by law.
</P>
<SECAUTH TYPE="N">(68A Stat. 855; 26 U.S.C. 7212)
</SECAUTH>
<CITA TYPE="N">[25 FR 4716, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV7 N="105" NODE="27:2.0.1.1.3.4.105" TYPE="SUBJGRP">
<HEAD>Variations From Requirements</HEAD>


<DIV8 N="§ 44.72" NODE="27:2.0.1.1.3.4.105.13" TYPE="SECTION">
<HEAD>§ 44.72   Alternate methods or procedures.</HEAD>
<P>A manufacturer of tobacco products, an export warehouse proprietor, or a customs warehouse proprietor, on specific approval by the appropriate TTB officer as provided in this section, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. The appropriate TTB officer may approve an alternate method or procedure, subject to stated conditions, when he finds that—
</P>
<P>(a) Good cause has been shown for the use of the alternate method or procedure.
</P>
<P>(b) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue, and
</P>
<P>(c) The alternate method or procedure will not be contrary to any provision of law, and will not result in an increase in cost to the Government or hinder the effective administration of this part. No alternate method or procedure relating to the giving of any bond or to the assessment, payment, or collection of tax, shall be authorized under this section. Where a manufacturer or proprietor desires to employ an alternate method or procedure, he shall submit a written application to the appropriate TTB officer. The application shall specifically describe the proposed alternate method or procedure, and shall set forth the reasons therefor. Alternate methods or procedures shall not be employed until the application has been approved by the appropriate TTB officer. The manufacturer or proprietor shall, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization for any alternate method or procedure may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered. The manufacturer or proprietor shall retain, as part of his records, any authorization of the appropriate TTB officer under this section.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 49, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-480, 67 FR 30801, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.73" NODE="27:2.0.1.1.3.4.105.14" TYPE="SECTION">
<HEAD>§ 44.73   Emergency variations from requirements.</HEAD>
<P>The appropriate TTB officer may approve methods of operation other than as specified in this part, where he finds that an emergency exists and the proposed variations from the specified requirements are necessary, and the proposed variations—
</P>
<P>(a) Will afford the security and protection to the revenue intended by the prescribed specifications,
</P>
<P>(b) Will not hinder the effective administration of this part, and
</P>
<P>(c) Will not be contrary to any provision of law. Variations from requirements granted under this section are conditioned on compliance with the procedures, conditions, and limitations set forth in the approval of the application. Failure to comply in good faith with such procedures, conditions, and limitations shall automatically terminate the authority for such variations and the manufacturer, export warehouse proprietor, or customs warehouse proprietor, thereupon shall fully comply with the prescribed requirements of regulations from which the variations were authorized. Authority for any variations may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered by the continuation of such variation. Where a manufacturer or proprietor desires to employ such variation, he shall submit a written application to the appropriate TTB officer. The application shall describe the proposed variations and set forth the reasons therefor. Variations shall not be employed until the application has been approved. The manufacturer or proprietor shall retain, as part of his records, any authorization of the appropriate TTB officer under this section.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 50, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-480, 67 FR 30801, May 8, 2002]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.1.3.5" TYPE="SUBPART">
<HEAD>Subpart D—Qualification Requirements for Export Warehouse Proprietors</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>25 FR 4716, May 28, 1960, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV8 N="§ 44.81" NODE="27:2.0.1.1.3.5.106.1" TYPE="SECTION">
<HEAD>§ 44.81   Persons required to qualify.</HEAD>
<P>Every person who intends to engage in business as an export warehouse proprietor, as defined in this part, shall qualify as such in accordance with the provisions of this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711, 5712, 5713)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.82" NODE="27:2.0.1.1.3.5.106.2" TYPE="SECTION">
<HEAD>§ 44.82   Application for permit.</HEAD>
<P>Every person, before commencing business as an export warehouse proprietor, must apply on TTB Form 5200.3 and obtain the permit provided for in § 44.93. All documents required under this part to be furnished with such application shall be made a part thereof.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[25 FR 4716, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-480, 67 FR 30801, May 8, 2002; T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.83" NODE="27:2.0.1.1.3.5.106.3" TYPE="SECTION">
<HEAD>§ 44.83   Corporate documents.</HEAD>
<P>Every corporation, before commencing business as an export warehouse proprietor, shall furnish with its application for permit required by § 44.82, a true copy of the corporate charter or a certificate of corporate existence or incorporation, executed by the appropriate officer of the State in which incorporated. The corporation shall also furnish, in duplicate, evidence which will establish the authority of the officer or other person who executes the application for permit to execute the same; the authority of persons to sign other documents, required by this part, for the corporation; and the identity of the officers and directors, and each person who holds more than ten percent of the stock of such corporation. Where a corporation has previously filed such documents or evidence with the appropriate TTB officer, a written statement by the corporation, in duplicate, to that effect will be sufficient for the purpose of this section.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.84" NODE="27:2.0.1.1.3.5.106.4" TYPE="SECTION">
<HEAD>§ 44.84   Articles of partnership or association.</HEAD>
<P>Every partnership or association, before commencing business as an export warehouse proprietor, shall furnish with its application for permit, required by § 44.82 a true copy of the articles of partnership or association, if any, or certificate of partnership or association where required to be filed by any State, county, or municipality. Where a partnership or association has previously filed such documents with the appropriate TTB officer, a written statement by the partnership or association, in duplicate, to that effect will be sufficient for the purpose of this section.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.85" NODE="27:2.0.1.1.3.5.106.5" TYPE="SECTION">
<HEAD>§ 44.85   Trade name certificate.</HEAD>
<P>Every person, before commencing business under a trade name as an export warehouse proprietor, shall furnish with his application for permit, required by § 44.82, a true copy of the certificate or other document, if any, issued by a State, county, or municipal authority in connection with the transaction of business under such trade name. If no such certificate or other document is so required a written statement, in duplicate, to that effect by such person will be sufficient for the purpose of this section.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9491, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 44.86" NODE="27:2.0.1.1.3.5.106.6" TYPE="SECTION">
<HEAD>§ 44.86   Bond.</HEAD>
<P>Every person, before commencing business as an export warehouse proprietor, shall file, in connection with his application for permit, a bond, Form 5200.29, in accordance with the applicable provisions of § 44.88 and subpart F, conditioned upon compliance with the provisions of chapter 52, I.R.C., and regulations thereunder, including, but not limited to, the timely payment of taxes imposed by such chapter and penalties and interest in connection therewith for which he may become liable to the United States.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[25 FR 4716, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-480, 67 FR 30801, May 8, 2002; T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.87" NODE="27:2.0.1.1.3.5.106.7" TYPE="SECTION">
<HEAD>§ 44.87   Power of attorney.</HEAD>
<P>If the application for permit or other qualifying documents are signed by an attorney in fact for an individual, partnership, association, company, or corporation, or by one of the partners for a partnership, or by an officer of an association or company, or, in the case of a corporation, by an officer or other person not authorized to sign by the corporate documents described in § 44.83, power of attorney conferring authority upon the person signing the documents shall be manifested on Form 5000.8 in accordance with its instructions.
</P>
<CITA TYPE="N">[25 FR 4716, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.88" NODE="27:2.0.1.1.3.5.106.8" TYPE="SECTION">
<HEAD>§ 44.88   Description and diagram of premises.</HEAD>
<P>The premises to be used by an export warehouse proprietor as his warehouse shall be described, in the application for permit required by § 44.82, and bond required by § 44.86, by number, street, and city, town, or village, and State. Such premises may consist of more than one building, which need not be contiguous: <I>Provided,</I> That such premises are located in the same city, town, or village and each located is described in the application for permit and the bond by number and street. Where such premises consist of less than an entire building, a diagram, in duplicate, shall also be furnished showing the particular floor or floors, or room or rooms, comprising the warehouse.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.89" NODE="27:2.0.1.1.3.5.106.9" TYPE="SECTION">
<HEAD>§ 44.89   Separation of premises.</HEAD>
<P>Where the export warehouse premises consist of less than an entire building, the premises shall be completely separated from adjoining portions of the building, which separation shall be constructed of materials generally used in the construction of buildings and may include any necessary doors or other openings.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.90" NODE="27:2.0.1.1.3.5.106.10" TYPE="SECTION">
<HEAD>§ 44.90   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 44.91" NODE="27:2.0.1.1.3.5.106.11" TYPE="SECTION">
<HEAD>§ 44.91   Additional information.</HEAD>
<P>The appropriate TTB officer may require such additional information as may be deemed necessary to determine whether the applicant is entitled to a permit. The applicant shall, when required by the appropriate TTB officer, furnish as a part of his application for permit such additional information as may be necessary for the appropriate TTB officer to determine whether the applicant is entitled to a permit.


</P>
</DIV8>


<DIV8 N="§ 44.92" NODE="27:2.0.1.1.3.5.106.12" TYPE="SECTION">
<HEAD>§ 44.92   Investigation of applicant.</HEAD>
<P>(a) <I>Investigation.</I> The appropriate TTB officer shall promptly cause such inquiry or investigation to be made, as may be necessary, to verify the information furnished in connection with an application for permit and to ascertain whether the applicant is eligible for a permit. Any of the following conditions may be grounds for denial of a permit:
</P>
<P>(1) The premises on which it is proposed to conduct the business are not adequate to protect the revenue; or
</P>
<P>(2) The applicant (including, in the case of a corporation, any officer, director, or principal stockholder and, in the case of a partnership, a partner)—
</P>
<P>(i) Is, by reason of his business experience, financial standing, or trade connections or by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with this chapter;
</P>
<P>(ii) Has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes; or
</P>
<P>(iii) Has failed to disclose any material information required or made any material false statement in the application therefor.
</P>
<P>(b) <I>TTB action.</I> An appropriate TTB officer who has reason to believe that the applicant is not entitled to a permit shall promptly give the applicant notice of the contemplated disapproval of his application and opportunity for hearing thereon in accordance with part 71 of this chapter, which part (including the provisions relating to the recommended decision and to appeals) is made applicable to such proceedings. If, after such notice and opportunity for hearing, the appropriate TTB officer finds that the applicant is not entitled to a permit, he shall, by order stating the findings on which his decision is based, deny the permit.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14485, Mar. 31, 2009, as amended by T.D. TTB-85, 75 FR 42607, July 22, 2010]


</CITA>
</DIV8>


<DIV8 N="§ 44.93" NODE="27:2.0.1.1.3.5.106.13" TYPE="SECTION">
<HEAD>§ 44.93   Issuance of permit.</HEAD>
<P>After the application for permit, bond, and supporting documents, as required under this part, has been approved, the appropriate TTB officer will issue a permit to the export warehouse proprietor. The proprietor must keep such permit at the export warehouse and make it available for inspection by an appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:2.0.1.1.3.6" TYPE="SUBPART">
<HEAD>Subpart E—Changes Subsequent to Original Qualification of Export Warehouse Proprietors</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>25 FR 4717, May 28, 1960, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV7 N="106" NODE="27:2.0.1.1.3.6.106" TYPE="SUBJGRP">
<HEAD>Changes in Name</HEAD>


<DIV8 N="§ 44.101" NODE="27:2.0.1.1.3.6.106.1" TYPE="SECTION">
<HEAD>§ 44.101   Change in individual name.</HEAD>
<P>Where there is a change in the name of an individual operating as an export warehouse proprietor he shall, within 30 days of such change, make application on Form 5200.16 for an amended permit.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9491, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.102" NODE="27:2.0.1.1.3.6.106.2" TYPE="SECTION">
<HEAD>§ 44.102   Change in trade name.</HEAD>
<P>Where there is a change in, or an addition or discontinuance of, a trade name used by an export warehouse proprietor in connection with operations authorized by his permit, the proprietor shall, within 30 days of such change, addition, or discontinuance, make application on Form 5200.16 for an amended permit to reflect such change. The proprietor shall also furnish a true copy of any new trade name certificate or document issued to him, or statement in lieu thereof, required by § 44.85.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9491, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.103" NODE="27:2.0.1.1.3.6.106.3" TYPE="SECTION">
<HEAD>§ 44.103   Change in corporate name.</HEAD>
<P>Where there is a change in the name of a corporate export warehouse proprietor the proprietor shall, within 30 days of such change, make application on Form 5200.16 for an amended permit. The proprietor shall also furnish such documents as may be necessary to establish that the corporate name has been changed.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9491, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="107" NODE="27:2.0.1.1.3.6.107" TYPE="SUBJGRP">
<HEAD>Changes in Ownership and Control</HEAD>


<DIV8 N="§ 44.104" NODE="27:2.0.1.1.3.6.107.4" TYPE="SECTION">
<HEAD>§ 44.104   Fiduciary successor.</HEAD>
<P>If an administrator, executor, receiver, trustee, assignee, or other fiduciary, is to take over the business of an export warehouse proprietor, as a continuing operation, such fiduciary shall, before commencing operations, make application for permit and file bond as required by subpart D of this part, furnish certified copies, in duplicate, of the order of the court, or other pertinent documents, showing his appointment and qualification as such fiduciary, and make an opening inventory, in accordance with the provisions of § 44.144; <I>Provided,</I> That where a diagram has been furnished by the predecessor, in accordance with the provisions of § 44.88, the successor may adopt such diagram. However, where a fiduciary intends merely to liquidate the business, qualification as an export warehouse proprietor will not be required if he promptly files with the appropriate TTB officer a statement to that effect, together with an extension of coverage of the predecessor's bond, executed by the fiduciary, also by the surety on such bond, in accordance with the provisions of § 44.126.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, 1422; 26 U.S.C. 5711, 5712, 5721)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.105" NODE="27:2.0.1.1.3.6.107.5" TYPE="SECTION">
<HEAD>§ 44.105   Transfer of ownership.</HEAD>
<P>If a transfer is to be made in ownership of the business of an export warehouse proprietor (including a change in the identity of the members of a partnership or association), such proprietor shall give notice, in writing, to the appropriate TTB officer, naming the proposed successor and the desired effective date of such transfer. The proposed successor shall, before commencing operations, qualify as a proprietor, in accordance with the applicable provisions of subpart D of this part: <I>Provided,</I> That where a diagram has been furnished by the proprietor in accordance with the provisions of § 44.88, the proposed successor may adopt such diagram. The proprietor shall give such notice of transfer, and the proposed successor shall make application for permit and file bond, as required, in ample time for examination and approval thereof before the desired date of such change. The predecessor shall make a closing inventory and closing report, in accordance with the provisions of §§ 44.146 and 44.151, respectively, and surrender, with such inventory and report, his permit, and the successor shall make an opening inventory, in accordance with the provisions of § 44.144.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, 1422; 26 U.S.C. 5712, 5713, 5721, 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.106" NODE="27:2.0.1.1.3.6.107.6" TYPE="SECTION">
<HEAD>§ 44.106   Change in officers or directors of a corporation.</HEAD>
<P>Where there is any change in the officers or directors of a corporation operating the business of an export warehouse proprietor, the proprietor shall furnish to the appropriate TTB officer notice, in writing, of the election of the new officers or directors within 30 days after such election.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.107" NODE="27:2.0.1.1.3.6.107.7" TYPE="SECTION">
<HEAD>§ 44.107   Change in stockholders of a corporation.</HEAD>
<P>Where the issuance, sale, or transfer of the stock of a corporation, operating as an export warehouse proprietor, results in a change in the identity of the principal stockholders exercising actual or legal control of the operations of the corporation, the corporate proprietor shall, within 30 days after the change occurs, make application for a new permit; otherwise, the present permit shall be automatically terminated at the expiration of such 30-day period, and the proprietor shall dispose of all cigars, cigarettes, and cigarette papers and tubes on hand, in accordance with this part, make a closing inventory and closing report, in accordance with the provisions of §§ 44.146 and 44.151, respectively, and surrender his permit with such inventory and report. If the application for a new permit is timely made, the present permit shall continue in effect pending final action with respect to such application.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, 1422; 26 U.S.C. 5712, 5713, 5721, 5722)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 50, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="108" NODE="27:2.0.1.1.3.6.108" TYPE="SUBJGRP">
<HEAD>Changes in Location and Premises</HEAD>


<DIV8 N="§ 44.108" NODE="27:2.0.1.1.3.6.108.8" TYPE="SECTION">
<HEAD>§ 44.108   Change in location.</HEAD>
<P>Whenever an export warehouse proprietor contemplates changing the location of his warehouse, the proprietor shall, before commencing operations at the new location, make an application, on Form 5200.16 for an amended permit. The application shall be supported by an extension of coverage of the bond filed under this part, in accordance with the provisions of § 44.126.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711, 5712)
</SECAUTH>
<CITA TYPE="N">[25 FR 4717, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-480, 67 FR 30802, May 8, 2002; T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.109" NODE="27:2.0.1.1.3.6.108.9" TYPE="SECTION">
<HEAD>§ 44.109   Change in address.</HEAD>
<P>Whenever any change occurs in the address, but not the location, of the warehouse of an export warehouse proprietor, as a result of action of local authorities, the proprietor shall, within 30 days of such change, make application on Form 5200.16 for an amended permit.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9492, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.110" NODE="27:2.0.1.1.3.6.108.10" TYPE="SECTION">
<HEAD>§ 44.110   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 44.111" NODE="27:2.0.1.1.3.6.108.11" TYPE="SECTION">
<HEAD>§ 44.111   Change in export warehouse premises.</HEAD>
<P>Where an export warehouse is to be changed to an extent which will make inaccurate the description of the warehouse as set forth in the last application by the proprietor for permit, or the diagram, if any, furnished with such application, the proprietor shall first make application on Form 5200.16 for, and obtain, an amended permit. Such application shall describe the proposed change in the warehouse and shall be accompanied by a new diagram if required under § 44.88.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961 33 FR 9492, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.112" NODE="27:2.0.1.1.3.6.108.12" TYPE="SECTION">
<HEAD>§ 44.112   Emergency premises.</HEAD>
<P>In cases of emergency, the appropriate TTB officer may authorize, for a stated period, the temporary use of a place for the temporary storage of tobacco products, and cigarette papers and tubes, without making the application or furnishing the extension of coverage of bond required under §§ 44.111 and 44.126, or the temporary separation of warehouse premises by means other than those specified in § 44.89, where such action will not hinder the effective administration of this part, is not contrary to law, and will not jeopardize the revenue.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 50, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="F" NODE="27:2.0.1.1.3.7" TYPE="SUBPART">
<HEAD>Subpart F—Bonds and Extensions of Coverage of Bonds</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>25 FR 4718, May 28, 1960, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV8 N="§ 44.121" NODE="27:2.0.1.1.3.7.109.1" TYPE="SECTION">
<HEAD>§ 44.121   Corporate surety.</HEAD>
<P>(a) Surety bonds required under the provisions of this part may be given only with corporate sureties holding certificates of authority from the Secretary of the Treasury as acceptable sureties on Federal bonds. Limitations concerning corporate sureties are prescribed by the Secretary in Treasury Department Circular 570, Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies, as revised (see paragraph (c) of this section). The surety shall have no interest whatever in the business covered by the bond.
</P>
<P>(b) Each bond and each extension of coverage of bond shall at the time of filing be accompanied by a power of attorney authorizing the agent or officer who executed the bond to so act on behalf of the surety. The appropriate TTB officer who is authorized to approve the bond may, whenever he deems it necessary, require additional evidence of the authority of the agent or officer to execute the bond or extension of coverage of bond. The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed document, it shall be accompanied by a certificate of its validity.
</P>
<P>(c) Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46923, Sept. 23, 1981, as amended by T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.122" NODE="27:2.0.1.1.3.7.109.2" TYPE="SECTION">
<HEAD>§ 44.122   Deposits of bonds, notes, or obligations in lieu of corporate surety.</HEAD>
<P>Bonds or notes of the United States, or other obligations which are unconditionally guaranteed as to both interest and principal by the United States, may be pledged and deposited by the export warehouse proprietor as security in connection with bond to cover his operations, in lieu of the corporate surety, in accordance with the provisions of 31 CFR part 225 regarding acceptance of bonds secured by Government obligations in lieu of bonds with sureties. Such bonds or notes which are nontransferable, or the pledging of which will not be recognized by the Treasury Department, are not acceptable as security in lieu of corporate surety.
</P>
<CITA TYPE="N">[25 FR 4718, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.123" NODE="27:2.0.1.1.3.7.109.3" TYPE="SECTION">
<HEAD>§ 44.123   Amount of bond.</HEAD>
<P>The amount of the bond filed by the export warehouse proprietor, as required by § 44.86, shall be not less than the estimated amount of tax which may at any time constitute a charge against the bond: <I>Provided,</I> That the amount of any such bond (or the total amount where original and strengthening bonds are filed) shall not exceed $200,000 nor be less than $1,000. The charge against such bond shall be subject to increase upon receipt of tobacco products, and cigarette papers and tubes into the export warehouse and to decrease as satisfactory evidence of exportation, or satisfactory evidence of such other disposition as may be used as the lawful basis for crediting such bond, is received by the appropriate TTB officer with respect to such articles transferred or removed. When the limit of liability under a bond given in less than the maximum amount has been reached, no additional shipments shall be received into the warehouse until a strengthening or superseding bond is filed, as required by § 44.124 or § 44.125.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, as amended; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 50, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.124" NODE="27:2.0.1.1.3.7.109.4" TYPE="SECTION">
<HEAD>§ 44.124   Strengthening bond.</HEAD>
<P>Where the appropriate TTB officer determines that the amount of the bond, under which an export warehouse proprietor is currently carrying on business, no longer adequately protects the revenue, and such bond is in an amount of less than $200,000, the appropriate TTB officer may require the proprietor to file a strengthening bond in an appropriate amount with the same surety as that on the bond already in effect, in lieu of a superseding bond to cover the full liability on the basis of § 44.123. The appropriate TTB officer shall refuse to approve any strengthening bond where any notation is made thereon which is intended or which may be construed as a release of any former bond, or as limiting the amount of either bond to less than its full amount.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[25 FR 4718, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.125" NODE="27:2.0.1.1.3.7.109.5" TYPE="SECTION">
<HEAD>§ 44.125   Superseding bond.</HEAD>
<P>An export warehouse proprietor shall file a new bond to supersede his current bond, immediately when (a) the corporate surety on the current bond becomes insolvent, (b) the appropriate TTB officer approves a request from the surety on the current bond to terminate his liability under the bond, (c) payment of any liability under a bond is made by the surety thereon, or (d) the appropriate TTB officer considers such a superseding bond necessary for the protection of the revenue.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.126" NODE="27:2.0.1.1.3.7.109.6" TYPE="SECTION">
<HEAD>§ 44.126   Extension of coverage of bond.</HEAD>
<P>An extension of the coverage of any bond filed under this part shall be manifested on Form 5000.18 by the export warehouse proprietor and by the surety on the bond with the same formality and proof of authority as required for the execution of the bond.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)
</SECAUTH>
<CITA TYPE="N">[25 FR 4718, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-480, 67 FR 30802, May 8, 2002; T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.127" NODE="27:2.0.1.1.3.7.109.7" TYPE="SECTION">
<HEAD>§ 44.127   Approval of bond and extension of coverage of bond.</HEAD>
<P>No person shall commence operations under any bond, nor extend his operations, until he receives from the appropriate TTB officer notice of his approval of the bond or of an appropriate extension of coverage of the bond required under this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.128" NODE="27:2.0.1.1.3.7.109.8" TYPE="SECTION">
<HEAD>§ 44.128   Termination of liability of surety under bond.</HEAD>
<P>The liability of a surety on any bond required by this part shall be terminated only as to operations on and after the effective date of a superseding bond, or the date of approval of the discontinuance of operations by the export warehouse proprietor, or otherwise in accordance with the termination provisions of the bond. The surety shall remain bound in respect of any liability for unpaid taxes, penalties, and interest, not in excess of the amount of the bond, incurred by the proprietor while the bond is in force.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5711)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.129" NODE="27:2.0.1.1.3.7.109.9" TYPE="SECTION">
<HEAD>§ 44.129   Release of bonds, notes, and obligations.</HEAD>
<P>(a) Bonds, notes, and other obligations of the United States, pledged and deposited as security in connection with bonds required by this part, shall be released only in accordance with the provisions of 31 CFR part 225 regarding acceptance of bonds secured by Government obligations in lieu of bonds with sureties. When the appropriate TTB officer is satisfied that it is no longer necessary to hold such security, he shall fix the date or dates on which a part or all of such security may be released. At any time prior to the release of such security, the appropriate TTB officer may, for proper cause, extend the date of release of such security for such additional length of time as in his judgment may be appropriate.
</P>
<P>(b) [Reserved]
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46923, Sept. 23, 1981; 46 FR 48644, Oct. 2, 1981, as amended by T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:2.0.1.1.3.8" TYPE="SUBPART">
<HEAD>Subpart G—Operations by Export Warehouse Proprietors</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>25 FR 4719, May 28, 1960, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV8 N="§ 44.141" NODE="27:2.0.1.1.3.8.109.1" TYPE="SECTION">
<HEAD>§ 44.141   Sign.</HEAD>
<P>Every export warehouse proprietor shall place and keep, on the outside of the building in which his warehouse is located, or at the entrance of his warehouse, where it can be plainly seen, a sign, in plain and legible letters, exhibiting the name under which he operates and (a) the type of business (“Export Warehouse Proprietor”) or (b) the number of the permit issued to the export warehouse proprietor under this part.


</P>
</DIV8>


<DIV8 N="§ 44.141a" NODE="27:2.0.1.1.3.8.109.2" TYPE="SECTION">
<HEAD>§ 44.141a   Use of premises.</HEAD>
<P>Export warehouse premises may only be used for the storage of tobacco products and cigarette papers and tubes, upon which the Internal Revenue tax has not been paid, for subsequent removal under this part, and for the storage of processed tobacco pending export.
</P>
<CITA TYPE="N">[T.D. TTB-78, 74 FR 29419, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 44.142" NODE="27:2.0.1.1.3.8.109.3" TYPE="SECTION">
<HEAD>§ 44.142   Records.</HEAD>
<P>(a) <I>In general.</I> Each export warehouse proprietor must keep in the warehouse complete and concise records that show the:
</P>
<P>(1) Number of containers;
</P>
<P>(2) Unit type (for example: cartons, cases);
</P>
<P>(3) Kinds of articles (for example: small cigarettes);
</P>
<P>(4) Name of manufacturer and brand; and
</P>
<P>(5) Quantity of tobacco products and cigarette papers and tubes, and any processed tobacco received, removed, transferred, destroyed, lost, or returned to manufacturers or to customs bonded warehouse proprietors.
</P>
<P>(b) <I>Other records; form and retention.</I> In addition to the records specified in paragraph (a) of this section, the export warehouse proprietor must retain a copy of each TTB F 5200.14 from a manufacturer, another export warehouse proprietor, or a customs warehouse proprietor, from whom tobacco products or cigarette papers or tubes were received, as well as a copy of each TTB F 5200.14 covering the tobacco products and cigarette papers and tubes removed from the warehouse. The entries for each day in the records maintained under this section must be made by the close of the business day following the day on which the transactions occur. No particular form of records is prescribed, but the information required must be readily ascertainable. The copies of TTB F 5200.14 and other records must be retained for 3 years following the close of the calendar year in which the shipments were received or removed and must be made available for inspection by any appropriate TTB officer upon request.
</P>
<CITA TYPE="N">[78 FR 38574, June 27, 2013]


</CITA>
</DIV8>


<DIV7 N="109" NODE="27:2.0.1.1.3.8.109" TYPE="SUBJGRP">
<HEAD>Inventories</HEAD>


<DIV8 N="§ 44.143" NODE="27:2.0.1.1.3.8.109.4" TYPE="SECTION">
<HEAD>§ 44.143   General.</HEAD>
<P>(a) Every export warehouse proprietor shall at the times specified in this subpart make a true and accurate inventory of products held on TTB Form 5220.3. 
</P>
<P>(b) This inventory shall be subject to verification by an appropriate TTB officer. A copy of each inventory shall be retained by the export warehouse proprietor for 3 years following the close of the calendar year in which the inventory is made and shall be made available for inspection by any appropriate TTB officer upon request.
</P>
<CITA TYPE="N">[T.D. ATF-289, 54 FR 48841, Nov. 27, 1989, as amended by T.D. ATF-421, 64 FR 71925, Dec. 22, 1999; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-480, 67 FR 30802, May 8, 2002; T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.144" NODE="27:2.0.1.1.3.8.109.5" TYPE="SECTION">
<HEAD>§ 44.144   Opening.</HEAD>
<P>An opening inventory shall be made by the export warehouse proprietor at the time of commencing business. The date of commencing business under this part shall be the effective date indicated on the permit issued under § 44.93. A similar inventory shall be made by the export warehouse proprietor when he files a superseding bond. The date of such inventory shall be the effective date of such superseding bond.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5721)
</SECAUTH>
<CITA TYPE="N">[25 FR 4719, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.145" NODE="27:2.0.1.1.3.8.109.6" TYPE="SECTION">
<HEAD>§ 44.145   Special.</HEAD>
<P>A special inventory shall be made by the export warehouse proprietor whenever required by any appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5721)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.146" NODE="27:2.0.1.1.3.8.109.7" TYPE="SECTION">
<HEAD>§ 44.146   Closing.</HEAD>
<P>A closing inventory shall be made by the export warehouse proprietor when he transfers ownership or concludes business. Where the proprietor transfers ownership the closing inventory shall be made as of the day preceding the date of the opening inventory of the successor.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5721)
</SECAUTH>
<CITA TYPE="N">[25 FR 4719, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="110" NODE="27:2.0.1.1.3.8.110" TYPE="SUBJGRP">
<HEAD>Reports</HEAD>


<DIV8 N="§ 44.147" NODE="27:2.0.1.1.3.8.110.8" TYPE="SECTION">
<HEAD>§ 44.147   General.</HEAD>
<P>Every export warehouse proprietor shall make a report on Form 5220.4 of all tobacco products, cigarette papers and tubes, and any processed tobacco on hand, received, removed, transferred, and lost or destroyed. Such report shall be made at the times specified in this subpart and shall be made whether or not any operations or transactions occurred during the period covered by the report. A copy of each report shall be retained by the export warehouse proprietor at his warehouse for 3 years following the close of the calendar year covered in such reports, and made available for inspection by any appropriate TTB officer upon his request.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 51, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71925, Dec. 22, 1999; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-480, 67 FR 30802, May 8, 2002; T.D. TTB-78, 74 FR 29419, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 44.148" NODE="27:2.0.1.1.3.8.110.9" TYPE="SECTION">
<HEAD>§ 44.148   Opening.</HEAD>
<P>An opening report, covering the period from the date of the opening inventory, or inventory made in connection with a superseding bond, to the end of the month, shall be made on or before the 20th day following the end of the month in which the business was commenced.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.149" NODE="27:2.0.1.1.3.8.110.10" TYPE="SECTION">
<HEAD>§ 44.149   Monthly.</HEAD>
<P>A report for each full month shall be made on or before the 20th day following the end of the month covered in the report.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.150" NODE="27:2.0.1.1.3.8.110.11" TYPE="SECTION">
<HEAD>§ 44.150   Special.</HEAD>
<P>A special report, covering the unreported period to the day preceding the date of any special inventory required by an appropriate TTB officer, shall be made with such inventory. Another report, covering the period from the date of such inventory to the end of the month, shall be made on or before the 20th day following the end of the month in which the inventory was made.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.151" NODE="27:2.0.1.1.3.8.110.12" TYPE="SECTION">
<HEAD>§ 44.151   Closing.</HEAD>
<P>A closing report, covering the period from the first of the month to the date of the closing inventory, or the day preceding the date of an inventory made in connection with a superseding bond, shall be made with such inventory.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5722)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="111" NODE="27:2.0.1.1.3.8.111" TYPE="SUBJGRP">
<HEAD>Claims</HEAD>


<DIV8 N="§ 44.152" NODE="27:2.0.1.1.3.8.111.13" TYPE="SECTION">
<HEAD>§ 44.152   Claim for remission of tax liability.</HEAD>
<P>Remission of the tax liability on tobacco products, and cigarette papers and tubes may be extended to the export warehouse proprietor liable for the tax where such articles in bond are lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, while in the possession or ownership of such proprietor. Where articles are so lost or destroyed the proprietor shall report promptly such fact, and the circumstances, to the appropriate TTB officer. If the proprietor wishes to be relieved of the tax liability, the proprietor must prepare and file a claim on TTB Form 5620.8. The nature, date, place, and extent of the loss or destruction must be stated in such claim. The claim must be accompanied by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid. When the appropriate TTB officer has acted on the claim, such officer will return a copy of TTB Form 5620.8 to the proprietor as notice of such action. The proprietor must keep the copy of TTB Form 5620.8 for 3 years following the close of the calendar year in which the claim is filed.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, as amended; 26 U.S.C. 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9492, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71925, Dec. 22, 1999; T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.153" NODE="27:2.0.1.1.3.8.111.14" TYPE="SECTION">
<HEAD>§ 44.153   Claim for abatement of assessment.</HEAD>
<P>A claim for abatement of the unpaid portion of the assessment of any tax on tobacco products, and cigarette papers and tubes, or any liability in respect of such tax, alleged to be excessive in amount, assessed after the expiration of the period of limitation applicable thereto, or erroneously or illegally assessed, shall be filed on Form 5620.8. Such claim shall set forth the reasons relied upon for the allowance of the claim and shall be supported by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid.
</P>
<SECAUTH TYPE="N">(68A Stat. 792; 26 U.S.C. 6404)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 51, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 1987; T.D. ATF-421, 64 FR 71925, Dec. 22, 1999; T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.154" NODE="27:2.0.1.1.3.8.111.15" TYPE="SECTION">
<HEAD>§ 44.154   Claim for refund of tax.</HEAD>
<P>The taxes paid on tobacco products, and cigarette papers and tubes may be refunded (without interest) to an export warehouse proprietor on proof satisfactory to the appropriate TTB officer that the claimant proprietor paid the tax on such articles which were after taxpayment lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, while in the possession or ownership of such export warehouse proprietor, or withdrawn by him from the market. Any claim for refund under this section shall be prepared on Form 5620.8, in duplicate, and shall include a statement that the tax imposed by 26 U.S.C. 7652 or chapter 52, was paid in respect to the articles covered by the claim, and that the articles were lost, destroyed, or withdrawn from the market within 6 months preceding the date the claim is filed. The claim must be filed on TTB Form 5620.8 and supported by such evidence as is necessary to establish to the satisfaction of the appropriate TTB officer that the claim is valid. The duplicate of the claim shall be retained by the export warehouse proprietor for 3 years following the close of the calendar year in which the claim is filed. Where an export warehouse proprietor has paid the tax on tobacco products, or cigarette papers or tubes, he may file claim for refund of an overpayment of tax under subpart A of part 46 of this chapter if, at the time the tax was paid, these articles had been exported, destroyed, or otherwise disposed of in such a manner that tax was not due and payable.
</P>
<SECAUTH TYPE="N">(68A Stat. 791, 72 Stat. 9, 1419, as amended; 26 U.S.C. 6402, 6423, 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9492, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55856, Sept. 28, 1979; T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-251, 52 FR 19341, May 22, 1987; T.D. ATF-421, 64 FR 71925, Dec. 22, 1999; T.D. ATF-457, 66 FR 32220, June 14, 2001; T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="H" NODE="27:2.0.1.1.3.9" TYPE="SUBPART">
<HEAD>Subpart H—Suspension and Discontinuance of Operations</HEAD>


<DIV8 N="§ 44.161" NODE="27:2.0.1.1.3.9.112.1" TYPE="SECTION">
<HEAD>§ 44.161   Discontinuance of operations.</HEAD>
<P>Every export warehouse proprietor who desires to discontinue operations and close out his warehouse shall dispose of all cigars, cigarettes, and cigarette papers and tubes on hand, in accordance with this part, making a closing inventory and closing report, in accordance with the provisions of §§ 44.146 and 44.151, respectively, and surrender, with such inventory and report, his permit to the appropriate TTB officer as notice of such discontinuance, in order that the appropriate TTB officer may terminate the liability of the surety on the bond of the export warehouse proprietor.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5721, 5722)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 51, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 44.162" NODE="27:2.0.1.1.3.9.112.2" TYPE="SECTION">
<HEAD>§ 44.162   Suspension and revocation of permit.</HEAD>
<P>Where the appropriate TTB officer has reason to believe that an export warehouse proprietor has not in good faith complied with the provisions of 26 U.S.C. chapter 52, and regulations thereunder, or with any other provision of 26 U.S.C. with intent to defraud, or has violated any condition of his permit, or has failed to disclose any material information required or made any material false statement in the application for permit, or has failed to maintain his premises in such manner as to protect the revenue, or is, by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with 26 U.S.C. chapter 52, or has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, the appropriate TTB officer shall issue an order, stating the facts charged, citing such export warehouse proprietor to show cause why the permit should not be suspended or revoked after hearing thereon in accordance with part 71 of this chapter, which part (including the provisions relating to appeals) is made applicable to such proceedings. If, after hearing, the hearing examiner, or on appeal, the Administrator, finds that such person has not shown cause why the permit should not be suspended or revoked, such permit shall be suspended for such period as the appropriate TTB officer deems proper or shall be revoked.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421; 26 U.S.C. 5713)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14485, Mar. 31, 2009]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:2.0.1.1.3.10" TYPE="SUBPART">
<HEAD>Subpart I [Reserved]</HEAD>

</DIV6>


<DIV6 N="J" NODE="27:2.0.1.1.3.11" TYPE="SUBPART">
<HEAD>Subpart J—Removal of Shipments of Tobacco Products and Cigarette Papers and Tubes by Manufacturers and Export Warehouse Proprietors</HEAD>


<DIV7 N="112" NODE="27:2.0.1.1.3.11.112" TYPE="SUBJGRP">
<HEAD>Packaging Requirements</HEAD>


<DIV8 N="§ 44.181" NODE="27:2.0.1.1.3.11.112.1" TYPE="SECTION">
<HEAD>§ 44.181   Packages.</HEAD>
<P>All tobacco products and cigarette papers and tubes must, before removal or transfer under this subpart, be put up by the manufacturer in packages that bear the label or notice, tax classification, and mark, as required by this subpart. For purposes of this subpart, the package does not include the cellophane or other transparent exterior wrapping material.
</P>
<CITA TYPE="N">[78 FR 38574, June 27, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 44.182" NODE="27:2.0.1.1.3.11.112.2" TYPE="SECTION">
<HEAD>§ 44.182   Lottery features.</HEAD>
<P>No certificate, coupon, or other device purporting to be or to represent a ticket, chance, share, or an interest in, or dependent on, the event of a lottery shall be contained in, attached to, or stamped, marked, written, or printed on any package of tobacco products, or cigarette papers or tubes.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723, 18 U.S.C. 1301)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 51, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.183" NODE="27:2.0.1.1.3.11.112.3" TYPE="SECTION">
<HEAD>§ 44.183   Indecent or immoral material.</HEAD>
<P>No indecent or immoral picture, print, or representation shall be contained in, attached to, or stamped, marked, written, or printed on any package of tobacco products, or cigarette papers or tubes.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 51, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.184" NODE="27:2.0.1.1.3.11.112.4" TYPE="SECTION">
<HEAD>§ 44.184   Mark.</HEAD>
<P>Every package of tobacco products shall, before removal from the factory under this subpart, have adequately imprinted thereon, or on a label securely affixed thereto, a mark as specified in this section. The mark may consist of the name of the manufacturer removing the product and the location (by city and State) of the factory from which the products are to be so removed, or may consist of the permit number of the factory from which the products are to be so removed. Any trade name of the manufacturer approved as provided in § 40.65 of this chapter may be used in the mark as the name of the manufacturer.) As an alternative, where tobacco products are both packaged and removed by the same manufacturer, either at the same or different factories, the mark may consist of the name of such manufacturer if the factory where package is identified on or in the package by a means approved by the appropriate TTB officer. Before using the alternative, the manufacturer shall notify the appropriate TTB officer in writing of the name to be used as the name of the manufacturer and the means to be used for identifying the factory where packaged. If approved by him the appropriate TTB officer shall return approved copies of the notice to the manufacturer. A copy of the approved notice shall be retained as part of the factory records at each of the factories operated by the manufacturer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 51, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-460, 66 FR 39093, July 27, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 44.185" NODE="27:2.0.1.1.3.11.112.5" TYPE="SECTION">
<HEAD>§ 44.185   Label or notice.</HEAD>
<P>Every package of tobacco products shall, before removal from the factory under this subpart, have adequately imprinted thereon, or on a label securely affixed thereto, the words “Tax-exempt. For use outside U.S.” or the words “U.S. Tax-exempt. For use outside U.S.” except where a stamp, sticker, or notice, required by a foreign country or a possession of the United States, which identifies such country or possession, is so imprinted or affixed.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5704, 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 52, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-465, 66 FR 45618, Aug. 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 44.186" NODE="27:2.0.1.1.3.11.112.6" TYPE="SECTION">
<HEAD>§ 44.186   Tax classification for cigars.</HEAD>
<P>Before removal from a factory under this subpart, every package of cigars shall have adequately imprinted on it, or on a label securely affixed to it—
</P>
<P>(a) The designation “cigars”;
</P>
<P>(b) The quantity of cigars contained in the package; and
</P>
<P>(c) For small cigars, the classification of the product for tax purposes; (i.e., either “small” or “little”).
</P>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18312, Mar. 24, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 44.187" NODE="27:2.0.1.1.3.11.112.7" TYPE="SECTION">
<HEAD>§ 44.187   Shipping containers.</HEAD>
<P>Each shipping case, crate, or other container in which tobacco products, or cigarette papers or tubes are to be shipped or removed, under this part, shall bear a distinguishing number, such number to be assigned by the manufacturer or export warehouse proprietor. Removals of tobacco products, and cigarette papers and tubes from an export warehouse shall be made, insofar as practicable, in the same containers in which they were received from the factory.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 52, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="113" NODE="27:2.0.1.1.3.11.113" TYPE="SUBJGRP">
<HEAD>Consignment of Shipment</HEAD>


<DIV8 N="§ 44.188" NODE="27:2.0.1.1.3.11.113.8" TYPE="SECTION">
<HEAD>§ 44.188   General.</HEAD>
<P>Tobacco products, and cigarette papers and tubes transferred or removed from a factory or an export warehouse, under this part, without payment of tax, shall be consigned as required by this subpart.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 52, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.189" NODE="27:2.0.1.1.3.11.113.9" TYPE="SECTION">
<HEAD>§ 44.189   Transfers between factories and export warehouses.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are transferred, without payment of tax, from a factory to an export warehouse or between export warehouses, such articles shall be consigned to the export warehouse proprietor to whom such articles are to be delivered.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 52, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.190" NODE="27:2.0.1.1.3.11.113.10" TYPE="SECTION">
<HEAD>§ 44.190   Return of shipment to a manufacturer or customs warehouse proprietor.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are returned by an export warehouse proprietor to a manufacturer or where cigars are so returned to a customs warehouse proprietor, such articles shall be consigned to the manufacturer or customs warehouse proprietor to whom the shipment is to be returned.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 52, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.191" NODE="27:2.0.1.1.3.11.113.11" TYPE="SECTION">
<HEAD>§ 44.191   To officers of the armed forces for subsequent exportation.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse for delivery to officers of the armed forces of the United States in this country for subsequent shipment to, and use by, the armed forces outside the United States, the manufacturer or export warehouse proprietor shall consign such articles to the receiving officer at the armed forces base or installation, in this country, to which they are to be delivered.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 52, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.192" NODE="27:2.0.1.1.3.11.113.12" TYPE="SECTION">
<HEAD>§ 44.192   To vessels and aircraft for shipment to noncontiguous foreign countries and possessions of the United States.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse, for direct delivery to a vessel or aircraft for transportation to a noncontiguous foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, the manufacturer or export warehouse proprietor shall consign the shipment directly to the vessel or aircraft, or to his agent at the port for delivery to the vessel or aircraft.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 52, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.193" NODE="27:2.0.1.1.3.11.113.13" TYPE="SECTION">
<HEAD>§ 44.193   To a Federal department or agency.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse and are destined for ultimate delivery in a noncontiguous foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, but the shipment is to be delivered in the United States to a Federal department or agency, or to an authorized dispatch agent, transportation officer, or port director of such a department or agency for forwarding on to the place of destination of the shipment, the manufacturer or export warehouse proprietor shall consign the shipment to the Federal department or agency, or to the proper dispatch agent, transportation officer, or port director of such department or agency.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 52, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28088, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.194" NODE="27:2.0.1.1.3.11.113.14" TYPE="SECTION">
<HEAD>§ 44.194   To district director of customs for shipment to contiguous foreign countries.</HEAD>
<P>Where tobacco products, or cigarette papers or tubes are removed from a factory or an export warehouse for export to a contiguous foreign country, the manufacturer or export warehouse proprietor shall consign the shipment to the district director of customs at the border or other port of exit.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9492, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.195" NODE="27:2.0.1.1.3.11.113.15" TYPE="SECTION">
<HEAD>§ 44.195   To Government vessels and aircraft for consumption as supplies.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse for delivery to a vessel or aircraft engaged in an activity for the Government of the United States or a foreign government, for consumption as supplies beyond the jurisdiction of the internal revenue laws of the United States, the manufacturer or export warehouse proprietor shall consign the shipment to the proper officer on board the vessel or aircraft to which the shipment is to be delivered.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 52, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.196" NODE="27:2.0.1.1.3.11.113.16" TYPE="SECTION">
<HEAD>§ 44.196   To district director of customs for consumption as supplies on commercial vessels and aircraft.</HEAD>
<P>Where tobacco products, or cigarette papers or tubes are removed from a factory or an export warehouse for consumption as supplies beyond the jurisdiction of the internal revenue laws of the United States, the manufacturer or export warehouse proprietor shall consign the shipment to the district director of customs at the port at which the shipment is to be laden.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9493, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.196a" NODE="27:2.0.1.1.3.11.113.17" TYPE="SECTION">
<HEAD>§ 44.196a   To a foreign-trade zone.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse for delivery to a foreign-trade zone, under zone restricted status for the purpose of exportation or storage, the manufacturer or export warehouse proprietor shall consign the shipment to the Zone Operator in care of the customs officer in charge of the zone.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 72 Stat. 1418, as amended; 19 U.S.C. 81c, 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 53, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.197" NODE="27:2.0.1.1.3.11.113.18" TYPE="SECTION">
<HEAD>§ 44.197   For export by parcel post.</HEAD>
<P>Tobacco products, and cigarette papers and tubes removed from a factory or an export warehouse, for export by parcel post to a person in a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, shall be addressed and consigned to such person when the articles are deposited in the mails. Waiver of his right to withdraw such articles from the mails shall be stamped or written on each shipping container and be signed by the manufacturer or export warehouse proprietor making the shipment.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 53, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="114" NODE="27:2.0.1.1.3.11.114" TYPE="SUBJGRP">
<HEAD>Notice of Removal of Shipment</HEAD>


<DIV8 N="§ 44.198" NODE="27:2.0.1.1.3.11.114.19" TYPE="SECTION">
<HEAD>§ 44.198   Preparation.</HEAD>
<P>For each shipment of tobacco products, and cigarette papers and tubes transferred or removed from his factory, under bond and this part, the manufacturer shall prepare a notice of removal, Form 5200.14, and for each shipment of tobacco products, and cigarette papers and tubes transferred or removed from his export warehouse, under bond and this part, the export warehouse proprietor shall prepare a notice of removal, Form 5200.14. Each such notice shall be given a serial number by the manufacturer or export warehouse proprietor in a series beginning with number 1, with respect to the first shipment removed from the factory or export warehouse under this part and commencing again with number 1 on January 1 of each year thereafter.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 53, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71925, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.199" NODE="27:2.0.1.1.3.11.114.20" TYPE="SECTION">
<HEAD>§ 44.199   Disposition.</HEAD>
<P>After actual removal from his factory or export warehouse of the shipment described on the notice of removal, Form 5200.14, the manufacturer or export warehouse proprietor shall, except where the shipment is to be exported by parcel post, promptly forward one copy of the notice of removal to the appropriate TTB officer. A copy of each such notice shall be retained by the manufacturer or export warehouse proprietor as a part of his records, for 3 years following the close of the calendar year in which the shipment was removed and shall be made available for inspection by any appropriate TTB officer upon his request. The manufacturer or export warehouse proprietor shall dispose of the other copies of each notice of removal as required by this subpart.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[25 FR 4722, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999; T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.200" NODE="27:2.0.1.1.3.11.114.21" TYPE="SECTION">
<HEAD>§ 44.200   Transfers between factories and export warehouses.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are transferred from a factory to an export warehouse or between export warehouses, the manufacturer or export warehouse proprietor making the shipment shall forward three copies of the notice of removal, Form 5200.14 to the export warehouse proprietor to whom the shipment is consigned. Immediately upon receipt of the shipment at his warehouse, the export warehouse proprietor shall properly execute the certificate of receipt on each copy of the notice of removal, noting thereon any discrepancy; return one copy to the manufacturer or export warehouse proprietor making the shipment for filing with the appropriate TTB officer; retain one copy at his warehouse as a part of his records; and file the remaining copy with his report, required by § 44.147.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 53, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.201" NODE="27:2.0.1.1.3.11.114.22" TYPE="SECTION">
<HEAD>§ 44.201   Return to manufacturer or customs warehouse proprietor.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from an export warehouse for return to the factory, or cigars are removed from such a warehouse for return to a customs warehouse, the export warehouse proprietor making the shipment shall forward two copies of the notice of removal, Form 5200.14, to the manufacturer or customs warehouse proprietor to whom the shipment is consigned. Immediately upon receipt of the shipment at his factory or warehouse, the manufacturer or customs warehouse proprietor shall properly execute the certificate of receipt on both copies of the notice of removal, noting thereon any discrepancy, and return one copy to the export warehouse proprietor making the shipment for filing with the appropriate TTB officer. The other copy of the notice of removal shall be retained by the manufacturer or customs warehouse proprietor, as a part of his records, for 3 years following the close of the calendar year in which the shipment was received and shall be made available for inspection by any appropriate TTB officer upon his request.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 53, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.202" NODE="27:2.0.1.1.3.11.114.23" TYPE="SECTION">
<HEAD>§ 44.202   To officers of the armed forces for subsequent exportation.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse for delivery to officers of the armed forces of the United States in this country for subsequent shipment to, and use by, the armed forces outside the United States, the manufacturer or export warehouse proprietor making the removal shall forward a copy of the notice of removal, Form 5200.14, to the officer at the base or installation authorized to receive the articles described on the notice of removal. Upon execution by the armed forces receiving officer of the certificate of receipt on the copy of the notice of removal, he shall return such copy to the manufacturer or export warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 53, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.203" NODE="27:2.0.1.1.3.11.114.24" TYPE="SECTION">
<HEAD>§ 44.203   To noncontiguous foreign countries and possessions of the United States.</HEAD>
<P>Where tobacco products, or cigarette papers or tubes are removed from a factory or an export warehouse for direct delivery to a vessel or aircraft for transportation to a noncontiguous foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, the manufacturer or export warehouse proprietor making the shipment shall file two copies of the notice of removal, Form 5200.14, with the office of the district director of customs at the port where the shipment is to be laden. Such copies of the notice of removal should be filed with the related shipper's export declaration, Commerce Form 7525-V. In the event the copies of the notice of removal are not filed with the shipper's export declaration, when the copies of the notice are filed with the district director of customs they shall show all particulars necessary to enable that officer to associate the notice with the related shipper's export declaration and any other documents filed with his office in connection with the shipment. After the vessel or aircraft on which the shipment has been laden clears or departs from the port of lading the customs authority shall execute the certificate of exportation on both copies of the notice of removal, retain one copy for his records, and deliver or transmit the other copy to the manufacturer or export warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9493, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.204" NODE="27:2.0.1.1.3.11.114.25" TYPE="SECTION">
<HEAD>§ 44.204   To a Federal department or agency.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse and are destined for ultimate delivery in a noncontiguous foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, but the shipment is to be delivered to a Federal department or agency, or to an authorized dispatch agent, transportation officer, or port director of such a department or agency for forwarding on to the place of destination of the shipment, the manufacturer or export warehouse proprietor making the shipment shall furnish a copy of the notice of removal, Form 5200.14, to the Federal department or agency, or an officer thereof at the port, receiving the shipment for ultimate transmittal to the place of destination, in order that such department, agency, or officer can properly execute the certificate of receipt on such notice to evidence receipt of the shipment for transmittal to a place beyond the jurisdiction of the internal revenue laws of the United States. After completing such certificate, the Federal department, agency, or officer shall return the copy of the notice of removal, so executed, to the manufacturer or export warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 53, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.205" NODE="27:2.0.1.1.3.11.114.26" TYPE="SECTION">
<HEAD>§ 44.205   To contiguous foreign countries.</HEAD>
<P>(a) Where tobacco products, or cigarette papers or tubes are removed from a factory or an export warehouse for export to a contiguous foreign country, the manufacturer or export warehouse proprietor making the shipment shall—
</P>
<P>(1) Furnish to the district director of customs at the port of exit two copies of the notice of removal, Form 5200.14, together with the related shipper's export declaration, Commerce Form 7525-V (if required); and,
</P>
<P>(2) If copies of the notice of removal are not filed with the shippers export declaration, or if a shipment is for the armed forces of the United States in the contiguous foreign country and a shipper's export declaration is not required, show all the information on the notice of removal when it is filed so that the customs officer is able to associate the notice with the related shipper's export declaration (if any) or other documents filed with U.S. Customs and Border Protection (CBP) for the shipment.
</P>
<P>(b) When a shipment has been cleared by CBP from the United States, and when the customs officer at the port of exit is satisfied that the products have departed from the United States, that officer shall—
</P>
<P>(1) Complete the certificate of exportation on both copies of the notice of removal;
</P>
<P>(2) Retain one copy of the notice of removal for his records; and,
</P>
<P>(3) Return the other copy to the manufacturer or export warehouse proprietor making the shipment for filing with the appropriate TTB officer. 
</P>
<P>(c) The customs officer may, when he considers it necessary to establish that the merchandise was actually exported, require a landing certificate before he completes the certificate of exportation specified in paragraph (b)(1) of this section. If practical, the customs officer will give advance notice to the manufacturer or export warehouse proprietor of the type of transactions for which a landing certificate will be required. However, failure to notify the manufacturer or proprietor in advance will not prevent the customs officer from requiring a landing certificate for specific exportations when he considers it necessary to protect the revenue. In any case, the customs officer will advise the manufacturer or proprietor before departure of the shipment from the United States as to those exports for which a landing certificate will be required.
</P>
<P>(d) The provisions of this section relating to landing certificates also apply when a Form 5200.14 is not required for each transaction (for example: When multiple exportations, individually documented by commercial records, are consolidated on a single Form 5200.14 pursuant to an approved alternate procedure under § 44.72). The provisions apply to each transaction, regardless of the manner in which it is documented, unless specifically provided otherwise in the alternate procedure.
</P>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1418; (26 U.S.C. 5704); Sec. 622, Act of June 17, 1930, 49 Stat. 759 (19 U.S.C. 1622))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-52, 43 FR 59287, Dec. 19, 1978, as amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999; T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.206" NODE="27:2.0.1.1.3.11.114.27" TYPE="SECTION">
<HEAD>§ 44.206   To Government vessels and aircraft for consumption as supplies.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse for direct delivery to a vessel or aircraft, engaged in an activity for the Government of the United States or a foreign government, for consumption as supplies beyond the jurisdiction of the internal revenue laws of the United States, the manufacturer or export warehouse proprietor making the shipment shall forward a copy of the notice of removal, Form 5200.14, to the officer of the vessel or aircraft authorized to receive the shipment. Upon execution by the receiving officer of the vessel or aircraft of the certificate of receipt on the copy of the notice of removal, he shall return such copy to the manufacturer or export warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 54, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.207" NODE="27:2.0.1.1.3.11.114.28" TYPE="SECTION">
<HEAD>§ 44.207   To commercial vessels and aircraft for consumption as supplies.</HEAD>
<P>Where tobacco products, or cigarette papers or tubes are removed from a factory or an export warehouse for delivery to a vessel or aircraft entitled to receive such articles for consumption as supplies beyond the jurisdiction of the internal revenue laws of the United States, the manufacturer or export warehouse proprietor making the shipment shall file two copies of the notice of removal, Form 5200.14, with the district director of customs at the port where the shipment is to be laden in sufficient time to permit delivery of the two copies of the notice of removal to the customs officer who will inspect the shipment and supervise its lading. After inspection and lading of the shipment the customs officer shall note on the copies of the notice of removal any discrepancy between the shipment inspected and laden under his supervision and that described on the notice of removal or any limitation on the quantity to be laden; complete and sign the certificate of inspection and lading; and return both copies of the notice of removal to the district director of customs. The district director of customs shall execute the certificate of clearance on both copies of the notice of removal, retain one copy for his records, and forward the other copy to the manufacturer or export warehouse proprietor making the shipment for filing with the appropriate TTB officer. Where the vessel or aircraft does not clear from the port at which the shipment is laden, the customs officer supervising the lading of the shipment shall require the person on board the vessel or aircraft authorized to receive the shipment to execute the certificate of receipt on both copies of the notice of removal to indicate the trade or activity in which the vessel or aircraft is engaged.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9493, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.207a" NODE="27:2.0.1.1.3.11.114.29" TYPE="SECTION">
<HEAD>§ 44.207a   To a foreign-trade zone.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse for delivery to a foreign-trade zone, under zone restricted status for the purpose of exportation or storage, the manufacturer or export warehouse proprietor making the shipment shall forward two copies of the notice of removal, Form 5200.14, to the customs officer in charge of the zone. Upon receipt of the shipment, the customs officer shall execute the certificate of receipt on each copy of the form, noting thereon any discrepancy, retain one copy for his records, and forward the other copy to the manufacturer or export warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(48 Stat. 999, as amended, 72 Stat. 1418, as amended; 19 U.S.C. 81c, 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 54, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.208" NODE="27:2.0.1.1.3.11.114.30" TYPE="SECTION">
<HEAD>§ 44.208   For export by parcel post.</HEAD>
<P>Where tobacco products, and cigarette papers and tubes are removed from a factory or an export warehouse, for export by parcel post, the manufacturer or export warehouse proprietor shall present one copy of the notice of removal, Form 5200.14, together with the shipping containers, to the postal authorities with the request that the postmaster or his agent execute the certificate of mailing on the form. Where the manufacturer or export warehouse proprietor so desires, he may cover under one notice of removal all the merchandise removed under this part for export by parcel post which is delivered at one time to the postal service for that purpose. The manufacturer or export warehouse proprietor shall immediately file the receipted copy of the notice of removal with the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 54, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="115" NODE="27:2.0.1.1.3.11.115" TYPE="SUBJGRP">
<HEAD>Miscellaneous Provisions</HEAD>


<DIV8 N="§ 44.209" NODE="27:2.0.1.1.3.11.115.31" TYPE="SECTION">
<HEAD>§ 44.209   Diversion of shipment to another consignee.</HEAD>
<P>If, after removal of a shipment from a factory or an export warehouse, the manufacturer or export warehouse proprietor desires to divert the shipment to another consignee, he shall so notify the appropriate TTB officer. The manufacturer or export warehouse proprietor shall describe the shipment, set forth the serial number and date of the notice of removal under which the shipment was removed from his factory or export warehouse, and furnish the name and address of the new consignee, who shall comply with all applicable provisions of this part.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[25 FR 4723, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 44.210" NODE="27:2.0.1.1.3.11.115.32" TYPE="SECTION">
<HEAD>§ 44.210   Return of shipment to factory or export warehouse.</HEAD>
<P>A manufacturer or export warehouse proprietor may return to his factory or export warehouse, without internal revenue supervision when so authorized by the appropriate TTB officer, tobacco products, and cigarette papers and tubes previously removed therefrom, under this part, but not yet exported. The manufacturer or export warehouse proprietor shall, prior to returning the articles to his factory or export warehouse, make application to the appropriate TTB officer for permission so to do, which application shall be accompanied by two copies of the notice of removal, Form 5200.14, under which the articles were originally removed. If less than the entire shipment is intended to be returned to the factory or export warehouse, the application shall set forth accurately the articles to be returned and shall show what disposition was made of the remainder of the original shipment and any other facts pertinent to such shipment. Where the appropriate TTB officer approves the application, he shall so indicate by endorsement to that effect on each of the copies of the notice of removal, set forth the articles for which return is approved, and return both copies of the notice of removal to the manufacturer or export warehouse proprietor concerned. Upon receipt of the copies of the notice of removal bearing the endorsement of the appropriate TTB officer, the manufacturer or export warehouse proprietor shall return the articles to his factory or export warehouse, properly modify and execute the certificate of receipt on each copy of the notice of removal, return one such copy to the appropriate TTB officer, and retain the other copy as a part of his records.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 54, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.211" NODE="27:2.0.1.1.3.11.115.33" TYPE="SECTION">
<HEAD>§ 44.211   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 44.212" NODE="27:2.0.1.1.3.11.115.34" TYPE="SECTION">
<HEAD>§ 44.212   Delay in lading at port of exportation.</HEAD>
<P>If, on arrival of tobacco products, and cigarette papers and tubes at the port of exportation, the vessel or aircraft for which they are intended is not prepared to receive the articles, they may be properly stored at the port for not more than 30 days. In the event of any further delay, the facts shall be reported by the manufacturer or export warehouse proprietor to the appropriate TTB officer and unless such officer approves an extension of time in which to effect lading and clearance of the shipment it must be returned to the factory or export warehouse.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 55, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1987; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-480, 67 FR 30802, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.213" NODE="27:2.0.1.1.3.11.115.35" TYPE="SECTION">
<HEAD>§ 44.213   Destruction of tobacco products, and cigarette papers and tubes.</HEAD>
<P>Where an export warehouse proprietor desires to destroy any of the tobacco products, or cigarette papers or tubes stored in his warehouse, he shall notify the appropriate TTB officer of the kind and quantity of such articles to be destroyed and the date on which he desires the destruction to take place in order that the appropriate TTB officer may assign an appropriate TTB officer to inspect the articles and supervise their destruction. The export warehouse proprietor shall prepare a notice of removal, Form 5200.14, describing the articles to be destroyed. After witnessing the destruction of the articles, the appropriate TTB officer shall certify to their destruction on two copies of the notice of removal and return them to the export warehouse proprietor, who shall retain one copy for his records and file the other copy with the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 55, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="K" NODE="27:2.0.1.1.3.12" TYPE="SUBPART">
<HEAD>Subpart K—Drawback of Tax</HEAD>


<DIV8 N="§ 44.221" NODE="27:2.0.1.1.3.12.116.1" TYPE="SECTION">
<HEAD>§ 44.221   Application of drawback of tax.</HEAD>
<P>Allowance of drawback of tax shall apply only to tobacco products, and cigarette papers and tubes, on which tax has been paid, when such articles are shipped to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States. Such drawback shall be allowed only to the person who paid the tax on such articles and who files claim and otherwise complies with the provisions of this subpart.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419, 68A Stat. 908; 26 U.S.C. 5706, 7653)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 55, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.222" NODE="27:2.0.1.1.3.12.116.2" TYPE="SECTION">
<HEAD>§ 44.222   Claim.</HEAD>
<P>Claim for allowance of drawback of tax, under this subpart, must be filed on Form 5620.7. Such claim must be filed in sufficient time to permit the appropriate TTB officer to detail an appropriate TTB officer to inspect the articles and supervise the affixture of a label or notice bearing the legend “For Export With Drawback of Tax.” Upon receipt of a claim supported by satisfactory bond, as required by this subpart, an appropriate TTB officer will proceed to the place where the articles involved are held and there perform the functions required in § 44.224. 
</P>
<CITA TYPE="N">[T.D. ATF-480, 67 FR 30803, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.223" NODE="27:2.0.1.1.3.12.116.3" TYPE="SECTION">
<HEAD>§ 44.223   Drawback bond.</HEAD>
<P>Each claim for allowance of drawback of tax, under this subpart, shall be accompanied by a bond, Form 5200.17, satisfactory to the appropriate TTB officer with whom the claim is filed. Such bond shall be in an amount not less than the amount of tax for which drawback is claimed, conditioned that the claimant shall furnish, within a reasonable time, evidence satisfactory to the appropriate TTB officer that the tobacco products, and cigarette papers and tubes have been landed at some port beyond the jurisdiction of the internal revenue laws of the United States, or that after clearance from the United States, the articles were lost (otherwise than by theft) or destroyed, by fire, casualty, or act of God, and have not been relanded within the limits of the United States. The provisions of §§ 44.121 and 44.122 are applicable with respect to any drawback bond required under this section.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5706)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 55, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-480, 67 FR 30803, May 8, 2002; T.D. TTB-196, 89 FR 87948, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 44.224" NODE="27:2.0.1.1.3.12.116.4" TYPE="SECTION">
<HEAD>§ 44.224   Inspection by an appropriate TTB officer.</HEAD>
<P>(a) <I>Examination.</I> An appropriate TTB officer will examine the tobacco products, and cigarette papers and tubes listed on TTB Form 5620.7. Such officer will verify the accuracy of the schedule of such articles on TTB Form 5620.7. 
</P>
<P>(b) <I>Label or notice.</I> If the tax on such articles has been paid by return, the appropriate TTB officer must be satisfied that the articles have in fact been taxpaid and each package bears the label or notice required by § 44.222. 
</P>
<P>(c) <I>Shipping containers.</I> The appropriate officer will supervise the packing of such articles in shipping containers. Each container must be numbered and have affixed to it the notice: 
</P>
<EXTRACT>
<P>Drawback of tax claimed on contents. 
</P>
<P>Sale, consumption, or use in U.S. prohibited.</P></EXTRACT>
<P>(d) <I>Disposition of TTB Form 5620.7.</I> After the appropriate TTB officer completes the report of inspection on TTB Form 5620.7, such officer will return two copies to the claimant and send a copy to the TTB office listed on the form. 
</P>
<P>(e) <I>Release.</I> After executing the report of inspection on TTB Form 5620.7, the appropriate TTB office will release the shipment to the claimant for delivery to the port of exportation.
</P>
<CITA TYPE="N">[T.D. ATF-480, 67 FR 30803, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.225" NODE="27:2.0.1.1.3.12.116.5" TYPE="SECTION">
<HEAD>§ 44.225   Delivery of tobacco products, or cigarette papers or tubes for export other than by parcel post.</HEAD>
<P>The claimant, upon release of the tobacco products, or cigarette papers or tubes by the appropriate TTB officer for exportation with benefit of drawback of tax under this subpart, shall be responsible for delivery of such articles to the port of exportation for customs inspection, supervision of lading, and clearance of the articles. The claimant shall file with the district director of customs at the port of exportation the two copies of Form 5620.7 returned to the claimant by the appropriate TTB officer in accordance with § 44.224. Such copies shall be filed in sufficient time prior to lading to permit customs inspection and supervision of lading of the tobacco products, or cigarette papers or tubes.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5706)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9493, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.226" NODE="27:2.0.1.1.3.12.116.6" TYPE="SECTION">
<HEAD>§ 44.226   Delivery of tobacco products, and cigarette papers and tubes for export by parcel post.</HEAD>
<P>Where the tobacco products, and cigarette papers and tubes are to be shipped by parcel post to a destination in a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, a waiver of his right to withdraw such articles from the mails shall be stamped or written on each shipping container and be signed by the claimant, after which the claimant shall present the shipment to the post office. The claimant shall request the postmaster or his agent to execute the certificate of mailing on the copy of the claim, Form 5620.7, returned to the claimant by the appropriate TTB officer in accordance with § 44.224. When so executed by the postal authorities, the Form 5620.7 shall be transmitted at once to the appropriate TTB officer with whom the form was previously filed.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5706)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 55, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.227" NODE="27:2.0.1.1.3.12.116.7" TYPE="SECTION">
<HEAD>§ 44.227   Customs procedure.</HEAD>
<P>The customs officer shall satisfy himself that the tobacco products, and cigarette papers and tubes described on the Form 5620.7 and those inspected by him are the same and shall note on the form any discrepancy. After having inspected the articles and supervised the lading thereof on the export carrier, the customs officer shall complete and sign the certificate of inspection and lading on both copies of Form 5620.7 and deliver or transmit such copies to the office of his district director of customs for further processing. After clearance from the port of the export carrier on which the articles are laden, the district director of customs shall execute the certificate of exportation on both copies of Form 5620.7. The district director of customs shall retain one copy of the form for his records and transmit the other copy to the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5706)
</SECAUTH>
<CITA TYPE="N">[T.D. 6961, 33 FR 9493, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-424, 64 FR 71933, Dec. 22, 1999; T.D. ATF-480, 67 FR 30803, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.228" NODE="27:2.0.1.1.3.12.116.8" TYPE="SECTION">
<HEAD>§ 44.228   Landing certificate.</HEAD>
<P>Each claimant for drawback under this subpart agrees in the bond filed by him that he will furnish, within a reasonable time, evidence satisfactory to the appropriate TTB officer that the tobacco products, and cigarette papers and tubes covered by his claim have been landed at some port beyond the jurisdiction of the internal revenue laws of the United States, or that after shipment from the United States the articles were lost, and have not been relanded within the limits of the United States. The landing certificate shall accurately describe the articles involved, so as to readily identify the drawback claim to which it relates. The landing certificate shall be signed by a revenue officer at the place of destination, unless it is shown that no such officer can furnish such landing certificate, in which case the certificate of landing shall be signed by the consignee, or by the vessel's agent at the place of landing, and shall be sworn to before a notary public or other officer authorized to administer oaths and having an official seal. The landing certificate shall be filed with the appropriate TTB officer, with whom the drawback claim was filed, within 6 months from the date of clearance of the tobacco products, and cigarette papers and tubes from the United States. A landing certificate prepared in a foreign language shall be accompanied by an accurate translation thereof in English.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5706)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 56, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.229" NODE="27:2.0.1.1.3.12.116.9" TYPE="SECTION">
<HEAD>§ 44.229   Collateral evidence as to landing.</HEAD>
<P>In case of inability to furnish the prescribed evidence of landing, application for relief shall be promptly made by the claimant to the appropriate TTB officer. Such application shall set forth the facts connected with the alleged exportation, and indicate the date of shipment, the kind, quantity, and value of tobacco products and cigarette papers and tubes shipped, the name of the consignee, the name of the vessel, the port or place of destination to which the shipment was made, and the date and amount of the bond covering such shipment. The application shall also state in what particular the provisions of this subpart, respecting the proofs of landing, have not been complied with, and the cause of failure to furnish such proofs; that such failure was not occasioned by any lack of diligence on the part of the claimant, or that of his agents; and that he is unable to furnish any other or better evidence than that furnished with his application. Each such application shall be supported by the best collateral evidence the claimant may be able to submit. The evidence may consist of the original or verified copies of letters from the consignee advising the claimant of the arrival or sale of the tobacco products, and cigarette papers and tubes, with such other statements respecting the failure to furnish the prescribed evidence of landing as may be obtained from the consignee or other persons having knowledge thereof. Such letters and other documents in a foreign language shall be accompanied by accurate translations thereof in English, and, when the letters fail to identify sufficiently the tobacco products, and cigarette papers and tubes, the original sales account must be produced.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5706)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 56, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-480, 67 FR 30803, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.230" NODE="27:2.0.1.1.3.12.116.10" TYPE="SECTION">
<HEAD>§ 44.230   Proof of loss.</HEAD>
<P>When the claimant is unable to procure a certificate of landing, in accordance with the provisions of § 44.228, in consequence of loss of the tobacco products, and cigarette papers and tubes, his application for relief shall set forth the extent of the loss and, if possible, the location and manner of shipwreck or other casualty and the time of its occurrence. When obtainable, affidavits of the vessel's owners should be furnished detailing the manner and extent of the loss and the time and location of the disaster. If the tobacco products, and cigarette papers and tubes were insured, the claimant shall furnish certificates by officers of the insurance companies that the insurance has been paid, and that, to the best of their knowledge and belief, the tobacco products, and cigarette papers and tubes were actually destroyed. The aforesaid proof shall be furnished to the appropriate TTB officer within 6 months from the date of clearance of the tobacco products, and cigarette papers and tubes from the United States.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5706)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 56, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 44.231" NODE="27:2.0.1.1.3.12.116.11" TYPE="SECTION">
<HEAD>§ 44.231   Extension of time.</HEAD>
<P>In case the claimant, from causes beyond his control, is unable to furnish the landing certificate or proof of loss, within the time prescribed therefor, he may make an application to the appropriate TTB officer for an extension of time in which to do so. Such application must state specifically the cause of failure to furnish the evidence. Two extensions of three months each may be granted by the appropriate TTB officer, provided the surety on the drawback bond of the claimant assents in writing thereto.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5706)
</SECAUTH>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 44.232" NODE="27:2.0.1.1.3.12.116.12" TYPE="SECTION">
<HEAD>§ 44.232   Allowance of claim.</HEAD>
<P>On receipt of the executed Form 5620.7 from the district director of customs, the appropriate TTB officer will allow or disallow the claim in accordance with existing law and regulations. If the claim is not allowed in full the appropriate TTB officer will notify the claimant, in writing, of the reasons for any disallowance.
</P>
<SECAUTH TYPE="N">(72 Stat. 1419; 26 U.S.C. 5706)
</SECAUTH>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-424, 64 FR 71933, Dec. 22, 1999]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:2.0.1.1.3.13" TYPE="SUBPART">
<HEAD>Subpart L—Withdrawal of Cigars From Customs Warehouses</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>25 FR 4725, May 28, 1960, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV8 N="§ 44.241" NODE="27:2.0.1.1.3.13.116.1" TYPE="SECTION">
<HEAD>§ 44.241   Shipment restricted.</HEAD>
<P>Cigars produced in a customs warehouse in accordance with customs laws and regulations may be withdrawn under this subpart, without payment of tax, for export or for delivery for subsequent exportation. Duties paid on the tobacco used in the manufacture of such cigars may not be recovered on the exportation of the cigars under this subpart.


</P>
</DIV8>


<DIV8 N="§ 44.242" NODE="27:2.0.1.1.3.13.116.2" TYPE="SECTION">
<HEAD>§ 44.242   Responsibility for tax on cigars.</HEAD>
<P>A customs warehouse proprietor who withdraws cigars for export under his bond, without payment of tax, in accordance with the provisions of this part, shall be responsible for payment of such tax until he is relieved of such responsibility by furnishing the appropriate TTB officer evidence satisfactory to the appropriate TTB officer of exportation or proper delivery, as required by this subpart, or satisfactory evidence of such other disposition as may be used as the lawful basis for such relief. Such evidence shall be furnished within 90 days of the date of withdrawal of the cigars: <I>Provided,</I> That this period may be extended for good cause shown.
</P>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-480, 67 FR 30803, May 8, 2002]


</CITA>
</DIV8>


<DIV7 N="116" NODE="27:2.0.1.1.3.13.116" TYPE="SUBJGRP">
<HEAD>Bonds</HEAD>


<DIV8 N="§ 44.243" NODE="27:2.0.1.1.3.13.116.3" TYPE="SECTION">
<HEAD>§ 44.243   Bond required.</HEAD>
<P>Where the customs warehouse proprietor desires to withdraw cigars from his warehouse, without payment of tax, under this subpart, he shall, prior to making the first withdrawal, file a bond, Form 2104 (5200.15), conditioned upon compliance with the provisions of 26 U.S.C. chapter 52, and regulations thereunder, including, but not limited to, the timely payment of taxes imposed by such chapter, for which he may be responsible to the United States, and penalties and interest in connection therewith. The provisions of §§ 44.121 and 44.122 are applicable to the bond required under this section. 
</P>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55856, Sept. 28, 1979; T.D. ATF-460, 66 FR 39093, July 27, 2001; T.D. ATF-480, 67 FR 30803, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.244" NODE="27:2.0.1.1.3.13.116.4" TYPE="SECTION">
<HEAD>§ 44.244   Amount of bond.</HEAD>
<P>The amount of the bond filed by the customs warehouse proprietor, as required by § 44.243, shall be not less than the estimated amount of tax which may at any time constitute a charge against the bond: <I>Provided,</I> That the amount of any such bond (or the total amount where original and strengthening bonds are filed) shall not exceed $25,000 nor be less than $1,000. The charges against such bond shall be subject to increase as withdrawals are made and decrease as required evidence of exportation is received by the appropriate TTB officer with respect to cigars withdrawn. When the limit of liability under a bond given in less than the maximum amount has been reached, further withdrawals shall not be made thereunder until a strengthening or superseding bond is filed as required by § 44.245 or § 44.246.


</P>
</DIV8>


<DIV8 N="§ 44.245" NODE="27:2.0.1.1.3.13.116.5" TYPE="SECTION">
<HEAD>§ 44.245   Strengthening bond.</HEAD>
<P>Where the appropriate TTB officer determines that the amount of the bond, under which the customs warehouse proprietor is withdrawing cigars for shipment under this subpart, no longer adequately protects the revenue, and such bond is in an amount of less than $25,000, the appropriate TTB officer may require the proprietor to file a strengthening bond in an appropriate amount with the same surety as that on the bond already in effect, in lieu of a superseding bond to cover the full liability on the basis of § 44.244. The appropriate TTB officer shall refuse to approve any strengthening bond where any notation is made thereon which is intended or which may be construed as a release of any former bond, or as limiting the amount of either bond to less than its full amount.


</P>
</DIV8>


<DIV8 N="§ 44.246" NODE="27:2.0.1.1.3.13.116.6" TYPE="SECTION">
<HEAD>§ 44.246   Superseding bond.</HEAD>
<P>The customs warehouse proprietor shall file a new bond to supersede his current bond, immediately when (a) the corporate surety on the current bond becomes insolvent, (b) the appropriate TTB officer approves a request from the surety on the current bond to terminate his liability under the bond, (c) payment of any liability under a bond is made by the surety thereon, or (d) the appropriate TTB officer considers such a superseding bond necessary for the protection of the revenue.


</P>
</DIV8>


<DIV8 N="§ 44.247" NODE="27:2.0.1.1.3.13.116.7" TYPE="SECTION">
<HEAD>§ 44.247   Termination of liability of surety under bond.</HEAD>
<P>The liability of a surety on any bond required by this subpart shall be terminated only as to operations on and after the effective date of a superseding bond, or the date of approval of the customs warehouse proprietor's request for termination, or otherwise, in accordance with the termination provisions of the bond. The surety shall remain bound in respect of any liability for unpaid taxes, penalties, and interest, not in excess of the amount of the bond, incurred by the proprietor while the bond is in force.


</P>
</DIV8>

</DIV7>


<DIV7 N="117" NODE="27:2.0.1.1.3.13.117" TYPE="SUBJGRP">
<HEAD>Packaging Requirements</HEAD>


<DIV8 N="§ 44.248" NODE="27:2.0.1.1.3.13.117.8" TYPE="SECTION">
<HEAD>§ 44.248   Packages.</HEAD>
<P>Cigars shall, before withdrawal under this part, be put up by the customs warehouse proprietor in packages which shall bear the label or notice, tax classification, and mark, as required by this subpart.
</P>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-40, 42 FR 5009, Jan. 26, 1977]


</CITA>
</DIV8>


<DIV8 N="§ 44.249" NODE="27:2.0.1.1.3.13.117.9" TYPE="SECTION">
<HEAD>§ 44.249   Lottery features.</HEAD>
<P>No certificate, coupon, or other device purporting to be or to represent a ticket, chance, share, or an interest in, or dependent on, the event of a lottery shall be contained in, attached to, or stamped, marked, written, or printed on any package of cigars withdrawn under this subpart.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723; 18 U.S.C. 1301)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.250" NODE="27:2.0.1.1.3.13.117.10" TYPE="SECTION">
<HEAD>§ 44.250   Indecent or immoral material.</HEAD>
<P>No indecent or immoral picture, print, or representation shall be contained in, attached to, or stamped, marked, written, or printed on any package of cigars withdrawn under this subpart.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.251" NODE="27:2.0.1.1.3.13.117.11" TYPE="SECTION">
<HEAD>§ 44.251   Mark.</HEAD>
<P>Every package of cigars shall, before withdrawal from the customs warehouse under this subpart, have adequately imprinted thereon, or on a label securely affixed thereto, the name and location of the manufacturer. There shall also be adequately stated on each such package the number of cigars contained in the package.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.252" NODE="27:2.0.1.1.3.13.117.12" TYPE="SECTION">
<HEAD>§ 44.252   Label or notice.</HEAD>
<P>Every package of cigars shall, before withdrawal from the customs warehouse under this subpart, have adequately imprinted thereon, or on a label securely affixed the words “Tax-exempt. For use outside U.S.” or the words “U.S. Tax-exempt. For use outside U.S.”, except where a stamp, sticker, or notice, required by a foreign country or a possession of the United States, which identifies such country or possession, is so imprinted or affixed.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)


</SECAUTH>
</DIV8>


<DIV8 N="§ 44.253" NODE="27:2.0.1.1.3.13.117.13" TYPE="SECTION">
<HEAD>§ 44.253   Tax classification for cigars.</HEAD>
<P>Before withdrawal of cigars from a customs warehouse under this subpart, every package of cigars shall have adequately imprinted on it, or on a label securely affixed to it—
</P>
<P>(a) The designation “cigars”;
</P>
<P>(b) The quantity of cigars contained in the package; and
</P>
<P>(c) For small cigars, the classification of the product for tax purposes (i.e., either “small” or “little”).
</P>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18312, Mar. 24, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 44.254" NODE="27:2.0.1.1.3.13.117.14" TYPE="SECTION">
<HEAD>§ 44.254   Shipping containers.</HEAD>
<P>Each shipping case, crate, or other container, in which cigars are to be withdrawn, under this subpart, shall bear a distinguishing number, such number to be assigned by the customs warehouse proprietor.


</P>
</DIV8>

</DIV7>


<DIV7 N="118" NODE="27:2.0.1.1.3.13.118" TYPE="SUBJGRP">
<HEAD>Consignment of Shipment</HEAD>


<DIV8 N="§ 44.255" NODE="27:2.0.1.1.3.13.118.15" TYPE="SECTION">
<HEAD>§ 44.255   Consignment of cigars.</HEAD>
<P>Cigars withdrawn from a customs warehouse, without payment of tax, under internal revenue bond and this part, shall be consigned in the same manner as provided by subpart J of this part with respect to the removal of tobacco products, and cigarette papers and tubes from a factory or an export warehouse.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 56, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="119" NODE="27:2.0.1.1.3.13.119" TYPE="SUBJGRP">
<HEAD>Notice of Removal of Shipment</HEAD>


<DIV8 N="§ 44.256" NODE="27:2.0.1.1.3.13.119.16" TYPE="SECTION">
<HEAD>§ 44.256   Preparation.</HEAD>
<P>For each shipment to be withdrawn under this subpart, the customs warehouse proprietor shall prepare a notice of removal, Form 5200.14. Each such notice shall be given a serial number by the proprietor in a series beginning with number 1, with respect to the first shipment withdrawn under this subpart and commencing again with number 1 on January 1 of each year thereafter.
</P>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.257" NODE="27:2.0.1.1.3.13.119.17" TYPE="SECTION">
<HEAD>§ 44.257   Disposition.</HEAD>
<P>After actual withdrawal from his warehouse of the shipment described on the notice of removal, Form 5200.14, the customs warehouse proprietor shall, except where the shipment is to be exported by parcel post, promptly forward one copy of the notice of removal to the appropriate TTB officer. A copy of each such notice shall be retained by the customs warehouse proprietor as a part of his records, for 3 years following the close of the calendar year in which the shipment was withdrawn, and shall be made available for inspection by any appropriate TTB officer upon his request. The proprietor shall dispose of the other copies of each notice of removal as required by this subpart.
</P>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999; T.D. ATF-480, 67 FR 30803, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.258" NODE="27:2.0.1.1.3.13.119.18" TYPE="SECTION">
<HEAD>§ 44.258   To officers of the armed forces for subsequent exportation.</HEAD>
<P>Where cigars are withdrawn from a customs warehouse for delivery to officers of the armed forces of the United States in this country for subsequent shipment to, and use by, the armed forces outside the United States, the customs warehouse proprietor making the shipment shall forward a copy of the notice of removal, Form 5200.14, to the officer at the base or installation authorized to receive the cigars described on the notice of removal. Upon execution by the armed forces receiving officer of the certificate of receipt on the copy of the notice of removal, he shall return such copy to the customs warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.259" NODE="27:2.0.1.1.3.13.119.19" TYPE="SECTION">
<HEAD>§ 44.259   To noncontiguous foreign countries and possessions of the United States.</HEAD>
<P>Where cigars are withdrawn from a customs warehouse for direct delivery to a vessel or aircraft for transportation to a noncontiguous foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, the customs warehouse proprietor making the withdrawal shall file two copies of the notice of removal, Form 5200.14, with the office of the district director of customs at the port where the shipment is to be laden. Such copies of the notice of removal should be filed with the related shipper's export declaration, Commerce Form 7525-V. In the event the copies of the notice of removal are not filed with the shipper's export declaration, when the copies of the notice are filed with the district director of customs they shall show all particulars necessary to enable that officer to associate the notice with the related shipper's export declaration and any other documents filed with his office in connection with the shipment. After the vessel or aircraft on which the shipment has been laden clears or departs from the port of lading the customs authority shall execute the certificate of exportation on both copies of the notice of removal, retain one copy for his records, and deliver or transmit the other copy to the customs warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. 6961, 33 FR 9494, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.260" NODE="27:2.0.1.1.3.13.119.20" TYPE="SECTION">
<HEAD>§ 44.260   To a Federal department or agency.</HEAD>
<P>Where cigars are withdrawn from a customs warehouse and are destined for ultimate delivery in a noncontiguous foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, but the shipment is to be delivered to a Federal department or agency, or to an authorized dispatch agent, transportation officer, or port director of such a department or agency for forwarding on to the place of destination of the shipment, the customs warehouse proprietor making the shipment shall furnish a copy of the notice of removal, Form 5200.14, to the Federal department or agency, or an officer thereof at the port, receiving the shipment for ultimate transmittal to the place of destination, in order that such department, agency, or officer, can properly execute the certificate of receipt on such notice to evidence receipt of the shipment for transmittal to a place beyond the jurisdiction of the internal revenue laws of the United States. After completing such certificate, the Federal department, agency, or officer, shall return the copy of the notice of removal, so executed, to the customs warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.261" NODE="27:2.0.1.1.3.13.119.21" TYPE="SECTION">
<HEAD>§ 44.261   To contiguous foreign countries.</HEAD>
<P>Where cigars are withdrawn from a customs warehouse for export to a contiguous foreign country, the customs warehouse proprietor making the shipment shall furnish to the district director of customs at the border or other port of exit two copies of the notice of removal, Form 5200.14, together with the related shipper's export declaration, Commerce Form 7525-V. In the event the copies of the notice of removal are not filed with the shipper's export declaration or, in the case of a shipment for the armed forces of the United States in the contiguous foreign country where no shipper's export declaration is required, the copies of the notice when filed with the district director of customs shall show all particulars necessary to enable that officer to associate the notice with the related shipper's export declaration, if any, and any other documents filed with his office in connection with the shipment. After the shipment has been cleared by customs from the United States, the customs authority at the port of exit shall complete the certificate of exportation on both copies of the notice of removal, retain one copy for his records, and transmit the other copy to the customs warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. 6961, 33 FR 9494, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.262" NODE="27:2.0.1.1.3.13.119.22" TYPE="SECTION">
<HEAD>§ 44.262   To Government vessels and aircraft for consumption as supplies.</HEAD>
<P>Where cigars are withdrawn from a customs warehouse for direct delivery to a vessel or aircraft, engaged in an activity for the Government of the United States or a foreign government, for consumption as supplies beyond the jurisdiction of the internal revenue laws of the United States, the customs warehouse proprietor making the shipment shall forward a copy of the notice of removal, Form 5200.14, to the officer of the vessel or aircraft authorized to receive the shipment. Upon execution by the receiving officer of the vessel or aircraft of the certificate of receipt on the copy of the notice of removal, he shall return such copy to the customs warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.263" NODE="27:2.0.1.1.3.13.119.23" TYPE="SECTION">
<HEAD>§ 44.263   To commercial vessels and aircraft for consumption as supplies.</HEAD>
<P>Where cigars are withdrawn from a customs warehouse for delivery to a vessel or aircraft entitled to receive such articles for consumption as supplies beyond the jurisdiction of the internal revenue laws of the United States, the customs warehouse proprietor making shipment shall file two copies of the notice of removal, Form 5200.14, with the district director of customs at the port where the shipment is to be laden in sufficient time to permit delivery of the two copies of the notice of removal to the customs officer who will inspect the shipment and supervise its lading. After inspection and lading of the shipment the customs officer shall note on the copies of the notice of removal any discrepancy between the shipment inspected and laden under his supervision and that described on the notice of removal or any limitation on the quantity to be laden; complete and sign the certificate of inspection and lading; and return both copies of the notice of removal to the district director of customs. The district director of customs shall execute the certificate of clearance on both copies of the notice of removal, retain one copy for his records, and forward the other copy to the customs warehouse proprietor making the shipment for filing with the appropriate TTB officer. Where the vessel or aircraft does not clear from the port at which the shipment is laden, the customs officer supervising the lading of the shipment shall require the person on board the vessel or aircraft authorized to receive the shipment to execute the certificate of receipt on both copies of the notice of removal to indicate the trade or activity in which the vessel or aircraft is engaged.
</P>
<CITA TYPE="N">[T.D. 6961, 33 FR 9494, June 28, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.264" NODE="27:2.0.1.1.3.13.119.24" TYPE="SECTION">
<HEAD>§ 44.264   To export warehouses.</HEAD>
<P>Where cigars are withdrawn from a customs warehouse for delivery to an export warehouse, the proprietor of the customs warehouse shall forward to the proprietor of the export warehouse three copies of the notice of removal, Form 5200.14, covering the shipment, for execution and disposition in accordance with procedure similar to that set forth in § 44.200 in connection with a shipment of tobacco products, and cigarette papers and tubes from a factory to an export warehouse. The executed copy of the notice of removal, Form 5200.14, returned to the customs warehouse proprietor by the export warehouse proprietor shall be filed with the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-48, 44 FR 55856, Sept. 28, 1979, as amended by T.D. ATF-232, 51 FR 28089, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-421, 64 FR 71926, Dec. 22, 1999; T.D. ATF-480, 67 FR 30803, May 8, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 44.264a" NODE="27:2.0.1.1.3.13.119.25" TYPE="SECTION">
<HEAD>§ 44.264a   To a foreign-trade zone.</HEAD>
<P>Where cigars are withdrawn from a customs warehouse for delivery to a foreign-trade zone, under zone restricted status for the purpose of exportation or storage, the customs warehouse proprietor making the shipment shall forward two copies of the notice of removal, Form 5200.14, to the customs officer in charge of the zone. Upon receipt of the shipment, the customs officer shall execute the certificate of receipt on each copy of the form, noting thereon any discrepancy, retain one copy for his records, and forward the other copy to the customs warehouse proprietor making the shipment for filing with the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. 6564, 26 FR 4362, May 19, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.265" NODE="27:2.0.1.1.3.13.119.26" TYPE="SECTION">
<HEAD>§ 44.265   For export by parcel post.</HEAD>
<P>Where cigars are withdrawn from a customs warehouse for export by parcel post, the customs warehouse proprietor shall present one copy of the notice of removal, Form 5200.14, together with the shipping containers, to the postal authorities with the request that the postmaster or his agent execute the certificate of mailing on the form. Where a customs warehouse proprietor so desires, he may cover under one notice of removal all the cigars removed under this part for export by parcel post which are delivered at one time to the postal service for that purpose. The customs warehouse proprietor shall immediately file the receipted copy of the notice of removal with the appropriate TTB officer.
</P>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="120" NODE="27:2.0.1.1.3.13.120" TYPE="SUBJGRP">
<HEAD>Return of Shipment</HEAD>


<DIV8 N="§ 44.266" NODE="27:2.0.1.1.3.13.120.27" TYPE="SECTION">
<HEAD>§ 44.266   Return of cigars from export warehouses.</HEAD>
<P>Where cigars are returned to a customs warehouse from an export warehouse, the officer in charge of the customs warehouse shall execute the certificate of receipt on each of the copies of the related Form 5200.14 received from the export warehouse proprietor, after checking the containers to determine whether all the cigars described on the notice have been received. Thereafter, both copies of the Form 5200.14 shall be turned over to the proprietor of the customs warehouse who shall return one copy to the export warehouse proprietor for disposition as provided in § 44.201. The customs warehouse proprietor shall retain the other copy of the notice of removal, as a part of his records, for 3 years following the close of the calendar year in which the shipment was received. Such copy shall be made available for inspection by any appropriate TTB officer upon his request.
</P>
<CITA TYPE="N">[T.D. ATF-48, 44 FR 55856, Sept. 28, 1979, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 44.267" NODE="27:2.0.1.1.3.13.120.28" TYPE="SECTION">
<HEAD>§ 44.267   Return of cigars from other sources.</HEAD>
<P>A customs warehouse proprietor may return to his warehouse cigars previously withdrawn therefrom, under this subpart, provided he promptly files with the appropriate TTB officer a copy of the Form 5200.14 under which the cigars were originally withdrawn, with the certificate of receipt properly modified and executed by the customs officer in charge of the warehouse to show return of the shipment. If less than the entire shipment is returned to the warehouse, the form shall state what disposition was made of the remainder of the original shipment and any other facts pertinent to such shipment. The customs warehouse proprietor shall retain a copy of such form as a part of his records for 3 years after the close of the calendar year in which the shipment was returned. Such copy shall be made available for inspection by any appropriate TTB officer upon request.
</P>
<CITA TYPE="N">[25 FR 4725, May 28, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-421, 64 FR 71926, Dec. 22, 1999]


</CITA>
</DIV8>

</DIV7>

</DIV6>

</DIV5>


<DIV5 N="45" NODE="27:2.0.1.1.4" TYPE="PART">
<HEAD>PART 45—REMOVAL OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES, WITHOUT PAYMENT OF TAX, FOR USE OF THE UNITED STATES
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5702-5705, 5723, 5741, 5751, 5762, 5763, 6109, 6313, 7212, 7342, 7606, 7805; 44 U.S.C. 3504(h).
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>Redesignated by T.D. ATF-469, 66 FR 56758, Nov. 13, 2001.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 45 appear by T.D. ATF-460, 66 FR 39093, July 27, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:2.0.1.1.4.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 45.1" NODE="27:2.0.1.1.4.1.121.1" TYPE="SECTION">
<HEAD>§ 45.1   Removal of tobacco products, and cigarette papers and tubes, without payment of tax, for use of the United States.</HEAD>
<P>This part contains the regulations relating to the removal of tobacco products, and cigarette papers and tubes, without payment of tax, for use of the United States.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 57, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.1.4.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 45.11" NODE="27:2.0.1.1.4.2.121.1" TYPE="SECTION">
<HEAD>§ 45.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, the following terms shall have the meanings given in this section, unless the context clearly indicates otherwise. Words in the plural form shall include the singular, and vice versa, and words indicating the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not listed which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.45, Delegation of the Administrator's Authorities in 27 CFR Part 45, Removal of Tobacco Products and Cigarette Papers and Tubes, Without Payment of Tax, for Use of the United States.
</P>
<P><I>Armed forces.</I> The Army, Navy (including the Marine Corps), Air Force, and Coast Guard.
</P>
<P><I>Charge of the United States.</I> A patient in a hospital or similar institution, or a Federal prisoner, if the hospital, institution, or prison is operated by a Federal agency and the support or care of such person results in a charge on, or an expense to, the United States Government.
</P>
<P><I>Chewing tobacco.</I> Any leaf tobacco that is not intended to be smoked.
</P>
<P><I>Cigar.</I> Any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of paragraph (2) of the definition for cigarette).
</P>
<P><I>Cigarette.</I> (1) Any roll of tobacco wrapped in paper or in any substance not containing tobacco, and
</P>
<P>(2) Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1) of this definition.
</P>
<P><I>Cigarette paper.</I> Paper, or any other material except tobacco, prepared for use as a cigarette wrapper.
</P>
<P><I>Cigarette tube.</I> Cigarette paper made into a hollow cylinder for use in making cigarettes.
</P>
<P><I>Factory.</I> The premises of a manufacturer of tobacco products or cigarette papers and tubes in which the manufacturer carries on such business.
</P>
<P><I>Federal agency.</I> A department or agency of the United States Government, including the American National Red Cross, and the U.S. Soldiers Home, Washington, D.C.
</P>
<P><I>Large cigarettes.</I> Cigarettes weighing more than three pounds per thousand.
</P>
<P><I>Large cigars.</I> Cigars weighing more than three pounds per thousand.
</P>
<P><I>Manufacturer of cigarette papers and tubes.</I> Any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for their own personal use or consumption. 
</P>
<P><I>Manufacturer of tobacco products.</I> Any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco but does not include:
</P>
<P>(1) A person who produces tobacco products solely for that person's own consumption or use; or
</P>
<P>(2) A proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse.
</P>
<P><I>Package.</I> The immediate container in which tobacco products, processed tobacco, or cigarette papers or tubes are put up by the manufacturer and offered for sale or delivery to the ultimate consumer. For purposes of this definition, a container of processed tobacco, the contents of which weigh 10 pounds or less (including any added non-tobacco ingredients or constituents), that is removed within the meaning of this part, is deemed to be a package offered for sale or delivery to the ultimate consumer.
</P>
<P><I>Person.</I> An individual, partnership, association, company, corporation, estate, or trust.
</P>
<P><I>Pipe tobacco.</I> Any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe.
</P>
<P><I>Removal or remove.</I> The removal of tobacco products or cigarette papers or tubes from the factory.
</P>
<P><I>Roll-your-own tobacco.</I> Any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes or cigars, or for use as wrappers thereof.
</P>
<P><I>Sale price.</I> The price for which large cigars are sold by the manufacturer or importer, determined in accordance with §§ 40.22 or 41.39 and used in computation of the tax.
</P>
<P><I>Small cigarettes.</I> Cigarettes weighing not more than three pounds per thousand.
</P>
<P><I>Small cigars.</I> Cigars weighing not more than three pounds per thousand.
</P>
<P><I>Smokeless tobacco.</I> Any chewing tobacco or snuff.
</P>
<P><I>Snuff.</I> Any finely cut, ground, or powdered tobacco that is not intended to be smoked.
</P>
<P><I>This chapter.</I> Chapter I, title 27, Code of Federal Regulations.
</P>
<P><I>Tobacco products.</I> Cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
</P>
<P><I>United States.</I> When used in a geographical sense shall include only the States and the District of Columbia.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13557, Mar. 31, 1978] 
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 45.11, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.1.4.3" TYPE="SUBPART">
<HEAD>Subpart C—Administrative Provisions</HEAD>


<DIV8 N="§ 45.21" NODE="27:2.0.1.1.4.3.121.1" TYPE="SECTION">
<HEAD>§ 45.21   Alternate methods or procedures.</HEAD>
<P>(a) A manufacturer, on specific approval by the appropriate TTB officer as provided in this section, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. The appropriate TTB officer may approve an alternate method or procedure, subject to stated conditions, when that officer finds that: 
</P>
<P>(1) Good cause has been shown for the use of the alternate method or procedure.
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue, and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law, and will not result in an increase in cost to the Government or hinder the effective administration of this part.
</P>
<P>(b) No alternate method or procedure relating to the giving of any bond or to the assessment, payment, or collection of tax, shall be authorized under this section. Where a manufacturer desires to employ an alternate method or procedure, the manufacturer must submit a written application to the appropriate TTB officer. The application shall specifically describe the proposed alternate method or procedure, and shall set forth the reasons therefor. Alternate methods or procedures shall not be employed until the application has been approved by the appropriate TTB officer. The manufacturer shall, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization for any alternate method or procedure may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered. The manufacturer shall retain, as part of their records, any authorization of the appropriate TTB officer under this section for three years following the close of the calendar year in which the operation under such authorization is concluded.
</P>
<CITA TYPE="N">[Redesignated by T.D. ATF-469, 66 FR 56758, Nov. 13, 2001, as amended by T.D. ATF-472, 67 FR 8880, Feb. 27, 2002; T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 45.22" NODE="27:2.0.1.1.4.3.121.2" TYPE="SECTION">
<HEAD>§ 45.22   Emergency variations from requirements.</HEAD>
<P>(a) The appropriate TTB officer may approve methods of operation other than as specified in this part, where that officer finds that an emergency exists and the proposed variations from the specified requirements are necessary, and the proposed variations:
</P>
<P>(1) Will afford the security and protection to the revenue intended by the prescribed specifications.
</P>
<P>(2) Will not hinder the effective administration of this part, and
</P>
<P>(3) Will not be contrary to any provision of law.
</P>
<P>(b) Variations from requirements granted under this section are conditioned on compliance with the procedures, conditions, and limitations set forth in the approval of the application. Failure to comply in good faith with such procedures, conditions, and limitations shall automatically terminate the authority for such variations and the manufacturer thereupon shall fully comply with the prescribed requirements of regulations from which the variations were authorized. Authority for any variations may be withdrawn whenever in the judgment of the appropriate TTB officer the revenue is jeopardized or the effective administration of this part is hindered by the continuation of such variation. Where a manufacturer desires to employ such variation, the manufacturer must submit a written application to the appropriate TTB officer. The application shall describe the proposed variations and set forth the reasons therefor. Variations shall not be employed until the application has been approved. The manufacturer shall retain, as part of their records, any authorization of the appropriate TTB officer under this section for three years following the close of the calendar year in which the operation under such authorization is concluded.
</P>
<CITA TYPE="N">[27 FR 4476, May 10, 1962. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-472, 67 FR 8880, Feb. 27, 2002; T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 45.23" NODE="27:2.0.1.1.4.3.121.3" TYPE="SECTION">
<HEAD>§ 45.23   Authority of appropriate TTB officers to enter premises.</HEAD>
<P>Any appropriate TTB officer may enter in the daytime any premises where tobacco products, or cigarette papers or tubes removed under this part are kept, so far as it may be necessary for the purpose of examining such articles. When such premises are open at night, any appropriate TTB officer may enter them, while so open, in the performance of their official duties. The owner of such premises, or person having the superintendence of the same, who refuses to admit any appropriate TTB officer or permit that officer to examine the articles removed under this part shall be liable to the penalties prescribed by law for the offense.
</P>
<SECAUTH TYPE="N">(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 57, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-472, 67 FR 8880, Feb. 27, 2002; T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 45.24" NODE="27:2.0.1.1.4.3.121.4" TYPE="SECTION">
<HEAD>§ 45.24   Interference with administration.</HEAD>
<P>Whoever, corruptly or by force or threats of force, endeavors to hinder or obstruct the administration of this part, or endeavors to intimidate or impede any appropriate TTB officer acting in their official capacity, or forcibly rescues or attempts to rescue or causes to be rescued any property, after it has been duly seized for forfeiture to the United States in connection with a violation of the internal revenue laws, shall be liable to the penalties prescribed by law.
</P>
<SECAUTH TYPE="N">(68A Stat. 855; 26 U.S.C. 7212)
</SECAUTH>
<CITA TYPE="N">[27 FR 4476, May 10, 1962. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-472, 67 FR 8880, Feb. 27, 2002; T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 45.25" NODE="27:2.0.1.1.4.3.121.5" TYPE="SECTION">
<HEAD>§ 45.25   Unlawful purchase, receipt, possession, or sale of tobacco products, or cigarette papers or tubes, after removal.</HEAD>
<P>Any person who, with intent to defraud the United States, purchases, receives, possesses, offers for sale, or sells or otherwise disposes of tobacco products, or cigarette papers or tubes which, after removal under this part, without payment of tax, have been diverted from the purpose or use specified in this part, shall be subject to the criminal penalties and provisions for forfeiture prescribed by law.
</P>
<SECAUTH TYPE="N">(72 Stat. 1424, 1425, as amended, 1426; 26 U.S.C. 5751, 5762, 5763)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 57, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 45.26" NODE="27:2.0.1.1.4.3.121.6" TYPE="SECTION">
<HEAD>§ 45.26   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.45, Delegation of the Administrator's Authorities in 27 CFR Part 45, Removal of Tobacco Products and Cigarette Papers and Tubes, Without Payment of Tax, for Use of the United States. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16955, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 45.27" NODE="27:2.0.1.1.4.3.121.7" TYPE="SECTION">
<HEAD>§ 45.27   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. You must furnish all of the information required by each form as indicated by the headings on the form and the instructions for the form, and as required by this part. You must file each form in accordance with its instructions. 
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov.</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-472, 67 FR 8880, Feb. 27, 2002, as amended by T.D. TTB-44, 71 FR 16955, Apr. 4, 2006; T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.1.4.4" TYPE="SUBPART">
<HEAD>Subpart D—Removals</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. 6871, 31 FR 57, Jan. 14, 1966, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV8 N="§ 45.31" NODE="27:2.0.1.1.4.4.121.1" TYPE="SECTION">
<HEAD>§ 45.31   Removals for delivery to a Federal agency.</HEAD>
<P>(a) <I>Removal of articles.</I> A manufacturer may remove tobacco products or cigarette papers and tubes without payment of tax, in accordance with this part, for delivery to a Federal agency if:
</P>
<P>(1) The removed articles were purchased by the Federal agency with funds appropriated by the Congress of the United States and are for gratuitous distribution under the supervision of the Federal agency;
</P>
<P>(2) The removed articles were purchased by a donor from the manufacturer, or donated directly by the manufacturer, for gratuitous distribution under the supervision of the Federal agency to:
</P>
<P>(i) Charges of the United States; or
</P>
<P>(ii) Patients in a hospital or institution operated by the Government of a State or the District of Columbia where the Federal agency maintains a program for distribution to members or veterans of the armed forces of the United States in the hospital or institution; or
</P>
<P>(3) The removed articles are intended for use by the Federal agency in an investigation or other Federal law enforcement activity.
</P>
<P>(b) <I>Sale prohibited.</I> Except in the case of articles described in paragraph (a)(3) of this section where a sale is incident to the Federal law enforcement activity, tobacco products and cigarette papers and tubes removed under this section may not be sold after their removal.
</P>
<CITA TYPE="N">[T.D. TTB-26, 70 FR 19890, Apr. 15, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 45.32" NODE="27:2.0.1.1.4.4.121.2" TYPE="SECTION">
<HEAD>§ 45.32   Under manufacturer's bond.</HEAD>
<P>Removals of tobacco products, and cigarette papers and tubes under this part shall be made under the bond filed by the manufacturer of such articles to cover the operations of their factory as required by section 5711, I.R.C., and regulations issued thereunder.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended, 1421, as amended; 26 U.S.C. 5704, 5711)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 57, as amended by T.D. ATF-243, 51 FR 28090, Aug. 5, 1986; 51 FR 43194, Dec. 1, 1986; T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 45.33" NODE="27:2.0.1.1.4.4.121.3" TYPE="SECTION">
<HEAD>§ 45.33   Return of shipment to factory.</HEAD>
<P>Tobacco products, and cigarette papers and tubes which have been removed, under this part, may be returned to the factory without internal revenue supervision.
</P>
<SECAUTH TYPE="N">(72 Stat. 1418, as amended; 26 U.S.C. 5704)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 57, as amended by T.D. ATF-243, 51 FR 28090, Aug. 5, 1986; 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 45.34" NODE="27:2.0.1.1.4.4.121.4" TYPE="SECTION">
<HEAD>§ 45.34   Loss or shortage in shipment.</HEAD>
<P>Immediately upon receipt of information of a loss of all or part of a shipment, or of a shortage therein, of tobacco products, or cigarette papers or tubes removed under this part, the manufacturer shall notify the appropriate TTB officer, furnish all pertinent details with respect to the loss or shortage, and either pay the tax due thereon in accordance with the provisions of § 45.36, or file claim for remission of the tax liability under the provisions of part 40 of this chapter, as the case may be.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417, 1419, as amended; 26 U.S.C. 5703, 5705)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 57, as amended by T.D. ATF-243, 51 FR 28090, Aug. 5, 1986; 51 FR 43194, Dec. 1, 1986; T.D. ATF-384, 61 FR 54096, Oct. 17, 1996; T.D. ATF-469, 66 FR 56758, Nov. 13, 2001; T.D. ATF-472, 67 FR 8880, Feb. 27, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 45.35" NODE="27:2.0.1.1.4.4.121.5" TYPE="SECTION">
<HEAD>§ 45.35   Liability for tax.</HEAD>
<P>The manufacturer who removes tobacco products, or cigarette papers or tubes under this part shall be liable for the taxes imposed thereon by 26 U.S.C. 5701, until such tobacco products, or cigarette papers or tubes are received by the Federal agency. Any person who possesses tobacco products, or cigarette papers or tubes in violation of 26 U.S.C. 5751(a)(1) or (2), shall be liable for a tax equal to the tax on such articles.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417, 1424; 26 U.S.C. 5703, 5751)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 57, Jan. 14, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55856, Sept. 28, 1979; T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 45.36" NODE="27:2.0.1.1.4.4.121.6" TYPE="SECTION">
<HEAD>§ 45.36   Payment of tax.</HEAD>
<P>Any tax which becomes due and payable on tobacco products, and cigarette papers and tubes removed under this part shall be paid to the appropriate TTB officer, with sufficient information to identify the taxpayer, the nature and purpose of the payment, and the articles covered by the payment: <I>Provided,</I> That a manufacturer of tobacco products or cigarette papers or tubes may pay any tax for which that person becomes liable under this part by an appropriate adjustment in their current tax return Form 5000.24. In paying the tax, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.
</P>
<CITA TYPE="N">[T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-251, 52 FR 19341, May 22, 1987; T.D. ATF-472, 67 FR 8880, Feb. 27, 2002; T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 45.37" NODE="27:2.0.1.1.4.4.121.7" TYPE="SECTION">
<HEAD>§ 45.37   Assessment.</HEAD>
<P>Whenever any person required by law to pay tax on tobacco products, and cigarette papers and tubes fails to pay such tax, the tax shall be ascertained and assessed against such person, subject to the limitations prescribed in 26 U.S.C. 6501. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. Except in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error, no such assessment shall be made until and after notice has been afforded such person to show cause against assessment. The person will be allowed 45 days from the date of such notice to show cause, in writing, against such assessment.
</P>
<SECAUTH TYPE="N">(72 Stat. 1417; 26 U.S.C. 5703)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 57, Jan. 14, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55856, Sept. 28, 1979; T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:2.0.1.1.4.5" TYPE="SUBPART">
<HEAD>Subpart E—Packaging Requirements</HEAD>


<DIV8 N="§ 45.41" NODE="27:2.0.1.1.4.5.121.1" TYPE="SECTION">
<HEAD>§ 45.41   Packages.</HEAD>
<P>All tobacco products, and cigarette papers and tubes shall, before removal under this part, be put up by the manufacturer in packages which shall be of such construction as will securely contain the articles therein and maintain the mark, notice, and label thereon, as required by this subpart. No package of tobacco products, or cigarette papers or tubes shall have contained therein, attached thereto, or stamped, marked, written, or printed thereon (a) any certificate, coupon, or other device purporting to be or to represent a ticket, chance, share, or an interest in, or dependent on, the event of a lottery, or (b) any indecent or immoral picture, print, or representation.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 58, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 45.42" NODE="27:2.0.1.1.4.5.121.2" TYPE="SECTION">
<HEAD>§ 45.42   Mark.</HEAD>
<P>Every package of tobacco products shall before removal from the factory under this part, have adequately imprinted thereon, or on a label securely affixed thereto, a mark as specified in this section. The mark may consist of the name of the manufacturer removing the product and the location (by city and State) of the factory from which the products are to be so removed, or may consist of the permit number of the factory from which the products are to be so removed. (Any trade name of the manufacturer approved as provided in § 40.65 of this chapter may be used in the mark as the name of the manufacturer.) As an alternative, where tobacco products are both packaged and removed by the same manufacturer, either at the same or different factories, the mark may consist of the name of such manufacturer if the factory where packaged is identified on or in the package by a means approved by the appropriate TTB officer. Before using the alternative, the manufacturer shall notify the appropriate TTB officer in writing of the name to be used as the name of the manufacturer and the means to be used for identifying the factory where packaged. If approved by the appropriate TTB officer, that officer shall return approved copies of the notice to the manufacturer. A copy of the approved notice shall be retained as part of the factory records at each of the factories operated by the manufacturer.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 58, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-472, 67 FR 8880, Feb. 27, 2002; T.D. TTB-196, 89 FR 87949, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 45.43" NODE="27:2.0.1.1.4.5.121.3" TYPE="SECTION">
<HEAD>§ 45.43   Notice for smokeless tobacco.</HEAD>
<P>(a) <I>Product designation.</I> Every package of chewing tobacco or snuff shall, before removal under this part, have adequately imprinted thereon, or on a label securely affixed thereto, the designation “chewing tobacco” or “snuff.” As an alternative, packages of chewing tobacco may be designated “Tax Class C,” and packages of snuff may be designated “Tax Class M.”
</P>
<P>(b) <I>Product weight.</I> Every package of chewing tobacco or snuff shall, before removal under this part, have adequately imprinted thereon, or on a label securely affixed thereto, a clear statement of the actual pounds and ounces of the product contained therein. As an alternative, the shipping cases containing packages of chewing tobacco or snuff may, before removal, have adequately imprinted thereon, or on a label securely affixed thereto, a clear statement, in pounds and ounces, of the total weight of the product, the tax class of the product, and the total number of the packages of product contained therein.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0502)
</APPRO>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-469, 66 FR 56758, Nov. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 45.44" NODE="27:2.0.1.1.4.5.121.4" TYPE="SECTION">
<HEAD>§ 45.44   Notice for cigars.</HEAD>
<P>Before removal under this part, every package of cigars shall have adequately imprinted on it, or on a label securely affixed to it—
</P>
<P>(a) The designation “cigars”;
</P>
<P>(b) The quantity of cigars contained in the package; and
</P>
<P>(c) For small cigars, the classification of the product for tax purposes (i.e., either “small” or “little”).
</P>
<SECAUTH TYPE="N">(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-80, 46 FR 18312, Mar. 24, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 45.45" NODE="27:2.0.1.1.4.5.121.5" TYPE="SECTION">
<HEAD>§ 45.45   Notice for cigarettes.</HEAD>
<P>Every package of cigarettes shall, before removal under this part, have adequately imprinted thereon, or on a label securely affixed thereto, the designation “cigarettes”, the quantity of such product contained therein, and the classification for tax purposes, i.e., for small cigarettes, either “small” or “Class A”, and for large cigarettes, either “large” or “Class B”.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[27 FR 4478, May 10, 1962. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>


<DIV8 N="§ 45.45a" NODE="27:2.0.1.1.4.5.121.6" TYPE="SECTION">
<HEAD>§ 45.45a   Notice for pipe tobacco.</HEAD>
<P>(a) <I>Product designation.</I> Every package of pipe tobacco shall, before removal subject to tax, have adequately imprinted thereon, or on a label securely affixed thereto, the designation “pipe tobacco.”
</P>
<P>(b) <I>Product weight.</I> Every package of pipe tobacco shall, before removal subject to tax, have adequately imprinted thereon, or on a label securely affixed thereto, a clear statement of the actual pounds and ounces of the product contained therein.
</P>
<CITA TYPE="N">[T.D. ATF-289, 54 FR 48842, Nov. 27, 1989, as amended by T.D. TTB-78, 74 FR 29420, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 45.45b" NODE="27:2.0.1.1.4.5.121.7" TYPE="SECTION">
<HEAD>§ 45.45b   Notice for roll-your-own tobacco.</HEAD>
<P>(a) <I>Product designation.</I> Every package of roll-your-own tobacco, before removal subject to tax, must have adequately imprinted on it, or on a label securely affixed to it, the applicable designation “roll-your-own tobacco”, “cigarette tobacco”, “cigar tobacco”, “cigarette wrapper”, or “cigar wrapper”.
</P>
<P>(b) <I>Product weight.</I> Before removal subject to tax, roll-your-own tobacco must have a clear statement of the actual weight in pounds and ounces of the product in the package. This statement must be adequately imprinted on, or on a label securely affixed to, the package. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0091)
</APPRO>
<CITA TYPE="N">[T.D. ATF-429, 65 FR 57547, Sept. 25, 2000, as amended by T.D. TTB-78, 74 FR 29420, June 22, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 45.45c" NODE="27:2.0.1.1.4.5.121.8" TYPE="SECTION">
<HEAD>§ 45.45c   Package use-up rule.</HEAD>
<P>(a) During the period from June 22, 2009, through March 23, 2010, a manufacturer of tobacco products may remove packages of pipe tobacco or roll-your-own tobacco that do not meet the requirements of § 45.45a(a) or § 45.45b(a), provided that such packages bear the designation “Tax Class L” (to designate pipe tobacco) or “Tax Class J” (to designate roll-your-own tobacco)) and were in use prior to June 22, 2009.
</P>
<P>(b) During the period from June 22, 2009, through March 23, 2010, a manufacturer may remove roll-your-own tobacco for which the applicable designation is “cigar tobacco,” “cigarette wrapper,” or “cigar wrapper” even if the packages of such products do not meet the requirements of § 45.45b.
</P>
<CITA TYPE="N">[T.D. TTB-81, 74 FR 48654, Sept. 24, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 45.46" NODE="27:2.0.1.1.4.5.121.9" TYPE="SECTION">
<HEAD>§ 45.46   Tax-exempt label.</HEAD>
<P>Except in the case of articles described in § 45.31(a)(3), every package of tobacco products, and cigarette papers and tubes removed under this part shall have the words “Tax-Exempt. For Use of U.S. Not To Be Sold.” adequately imprinted on the package or on a label securely affixed thereto.
</P>
<SECAUTH TYPE="N">(72 Stat. 1422; 26 U.S.C. 5723)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 58, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975; and amended by T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. TTB-26, 70 FR 19890, Apr. 15, 2005]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:2.0.1.1.4.6" TYPE="SUBPART">
<HEAD>Subpart F—Records</HEAD>


<DIV8 N="§ 45.51" NODE="27:2.0.1.1.4.6.121.1" TYPE="SECTION">
<HEAD>§ 45.51   Supporting records.</HEAD>
<P>(a) <I>Records of removals.</I> Every manufacturer who removes tobacco products, and cigarette papers and tubes under this part must, in addition to the records kept under part 40 of this chapter, keep a supporting record of such removals and must make appropriate entries therein at the time of removal. The supporting record for each removal must show:
</P>
<P>(1) The date of removal;
</P>
<P>(2) The name and address of the Federal agency to which shipped or delivered;
</P>
<P>(3) The kind and quantity and,
</P>
<P>(4) for large cigars, the sale price.
</P>
<P>(b) <I>Records of returns.</I> If any tobacco products, or cigarette papers or tubes removed under this part are returned to the factory, such returns must be noted in the supporting record.
</P>
<P>(c) <I>Commercial records.</I> Where the manufacturer keeps, at the factory, copies of invoices or other commercial records containing the information required as to each removal, in such manner that the information may be readily ascertained therefrom, such copies will be considered the supporting record required by this section.
</P>
<P>(d) <I>Retention period.</I> The manufacturer must retain the supporting record for 3 years following the close of the year covered therein. The record must be made available for inspection by any appropriate TTB officer upon request.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0363)
</APPRO>
<SECAUTH TYPE="N">(See 26 U.S.C. 5741)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71945, Dec. 22, 1999, as amended by T.D. ATF-472, Feb. 27, 2002]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="46" NODE="27:2.0.1.1.5" TYPE="PART">
<HEAD>PART 46—MISCELLANEOUS REGULATIONS RELATING TO TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>18 U.S.C. 2341-2346, 26 U.S.C. 5061, 5704, 5708, 5731-5734, 5751, 5754, 5761-5763, 6001, 6109, 6601, 6621, 6622, 7212, 7342, 7602, 7606, 7805; 44 U.S.C. 3504(h), 49 U.S.C. 782, unless otherwise noted.


</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>Redesignated by T.D. ATF-457, 66 FR 32220, June 14, 2001.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 46 appear by T.D. ATF-457, 66 FR 32220, 32221, June 14, 2001.</PSPACE></EDNOTE>
<CROSSREF>
<HED>Cross Reference:</HED>
<P>For exportation of tobacco materials, tobacco products, and cigarette papers and tubes, without payment of tax, or with drawback of tax, see part 44.</P></CROSSREF>

<DIV6 N="A" NODE="27:2.0.1.1.5.1" TYPE="SUBPART">
<HEAD>Subpart A—Application of 26 U.S.C. 6423, as Amended, to Refund or Credit of Tax on Tobacco Products, and Cigarette Papers and Tubes</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. 6395, 24 FR 599, Jan. 28, 1959, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV7 N="136" NODE="27:2.0.1.1.5.1.136" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 46.1" NODE="27:2.0.1.1.5.1.136.1" TYPE="SECTION">
<HEAD>§ 46.1   Scope of regulations in this subpart.</HEAD>
<P>The regulations in this subpart relate to the limitations imposed by 26 U.S.C. 6423, on the refund or credit of tax paid or collected in respect to any article of a kind subject to a tax imposed by 26 U.S.C. chapter 52.
</P>
<CITA TYPE="N">[T.D. ATF-48, 44 FR 55857, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 46.2" NODE="27:2.0.1.1.5.1.136.2" TYPE="SECTION">
<HEAD>§ 46.2   Meaning of terms.</HEAD>
<P>When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.46, Delegation of the Administrator's Authorities in 27 CFR Part 46, Miscellaneous Regulations Relating to Tobacco Products and Cigarette Papers and Tubes.
</P>
<P><I>Article.</I> The commodity in respect to which the amount claimed was paid or collected as a tax.
</P>
<P><I>Claimant.</I> Any person who files a claim for a refund or credit of tax under this subpart.
</P>
<P><I>Owner.</I> A person who, by reason of a proprietary interest in the article, furnished the amount claimed to the claimant for the purpose of paying the tax.
</P>
<P><I>Person.</I> An individual, a trust, estate, partnership, association, company, or corporation.
</P>
<P><I>Tax.</I> Any tax imposed by 26 U.S.C. chapter 52, or by any corresponding provision of prior internal revenue laws, and in the case of any commodity of a kind subject to a tax under such chapter, any tax equal to any such tax, any additional tax, or any floor stocks tax. The term includes an exaction denominated a “tax”, and any penalty, addition to tax, additional amount, or interest applicable to any such tax.
</P>
<CITA TYPE="N">[T.D. 6395, 24 FR 599, Jan. 28, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 46.2, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 46.3" NODE="27:2.0.1.1.5.1.136.3" TYPE="SECTION">
<HEAD>§ 46.3   Applicability to certain credits or refunds.</HEAD>
<P>The provisions of this subpart apply only where the credit or refund is claimed on the grounds that an amount of tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This subpart does not apply to:
</P>
<P>(a) Any claim for drawback,
</P>
<P>(b) Any claim made in accordance with any law expressly providing for credit or refund where an article is withdrawn from the market, returned to bond, lost, or destroyed, and
</P>
<P>(c) Any claim based solely on errors in computation of the quantity of an article subject to tax or on mathematical errors in computation of the amount of the tax due, or to any claim in respect of tax collected or paid on an article seized and forfeited, or destroyed, as contraband.
</P>
<CITA TYPE="N">[T.D. 6395, 24 FR 599, Jan. 28, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-42, 42 FR 8372, Feb. 10, 1977]


</CITA>
</DIV8>


<DIV8 N="§ 46.4" NODE="27:2.0.1.1.5.1.136.4" TYPE="SECTION">
<HEAD>§ 46.4   Ultimate burden.</HEAD>
<P>For the purposes of this subpart, the claimant, or owner, shall be treated as having borne the ultimate burden of an amount of tax only if:
</P>
<P>(a) He has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person,
</P>
<P>(b) No understanding or agreement exists for any such relief or shifting, and
</P>
<P>(c) If he has neither sold nor contracted to sell the articles involved in such claim, he agrees that there will be no such relief or shifting, and furnishes bond as provided in § 46.10.


</P>
</DIV8>


<DIV8 N="§ 46.5" NODE="27:2.0.1.1.5.1.136.5" TYPE="SECTION">
<HEAD>§ 46.5   Conditions to allowance of credit or refund.</HEAD>
<P>No credit or refund to which this subpart is applicable shall be allowed or made, pursuant to a court decision or otherwise, of any amount paid or collected as a tax unless a claim therefor has been filed, as provided in this subpart, by the person who paid the tax and the claimant, in addition to establishing that he is otherwise legally entitled to credit or refund of the amount claimed, establishes: 
</P>
<P>(a) That he bore the ultimate burden of the amount claimed, or
</P>
<P>(b) That he has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount, or
</P>
<P>(c) That (1) the owner of the article furnished him the amount claimed for payment of the tax, (2) he has filed with the appropriate TTB officer the written consent of such owner to the allowance to the claimant of the credit or refund, and (3) such owner satisfies the requirements of paragraph (a) or (b) of this section.
</P>
<CITA TYPE="N">[T.D. 6395, 24 FR 599, Jan. 28, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-472, 67 FR 8880, Feb. 27, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 46.6" NODE="27:2.0.1.1.5.1.136.6" TYPE="SECTION">
<HEAD>§ 46.6   Requirements for persons intending to file claim.</HEAD>
<P>Any person who, having paid the tax with respect to an article, desires to claim refund or credit of any amount of such tax to which the provisions of this subpart are applicable must:
</P>
<P>(a) File a claim, as provided in § 46.7,
</P>
<P>(b) Comply with any other provisions of law or regulations which may apply to the claim, and
</P>
<P>(c) If, at the time of filing the claim, neither he nor the owner has sold or contracted to sell the articles involved in the claim, file a bond on TTB Form 5620.10, as provided by § 46.10.
</P>
<CITA TYPE="N">[T.D. 6395, 24 FR 599, Jan. 28, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-472, 67 FR 8880, Feb. 27, 2002]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="137" NODE="27:2.0.1.1.5.1.137" TYPE="SUBJGRP">
<HEAD>Claim Procedure</HEAD>


<DIV8 N="§ 46.7" NODE="27:2.0.1.1.5.1.137.7" TYPE="SECTION">
<HEAD>§ 46.7   Execution and filing of claim.</HEAD>
<P>Claims to which this subpart is applicable must be executed on form TTB F 5620.8 in accordance with instructions for the form. (For provisions relating to hand-carried documents, see § 70.304 of this chapter.) The claim shall set forth each ground upon which the claim is made in sufficient detail to apprise the appropriate TTB officer of the exact basis therefor. Allegations pertaining to the bearing of the ultimate burden relate to additional conditions which must be established for a claim to be allowed and are not in themselves legal grounds for allowance of a claim. There shall also be attached to the form and made a part of the claim the supporting data required by § 46.8. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim.
</P>
<CITA TYPE="N">[T.D. 7008, 34 FR 3672, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55857, Sept. 28, 1979; T.D. ATF-251, 52 FR 19342, May 22, 1987; T.D. ATF-301, 55 FR 47658, Nov. 14, 1990; T.D. ATF-472, 67 FR 8880, Feb. 27, 2002; T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 46.8" NODE="27:2.0.1.1.5.1.137.8" TYPE="SECTION">
<HEAD>§ 46.8   Data to be shown in claim.</HEAD>
<P>Claims to which this subpart is applicable, in addition to the requirements of § 46.7, must set forth or contain the following:
</P>
<P>(a) A statement that the claimant paid the amount claimed as a “tax” as defined in this subpart.
</P>
<P>(b) Full identification (by specific reference to the form number, the date of filing, the place of filing, and the amount paid on the basis of the particular form or return) of the tax forms or returns covering the payments for which refund or credit is claimed.
</P>
<P>(c) The written consent of the owner to allow the refund or credit to the claimant (where the owner of the article on which the tax was paid has furnished the claimant the amount claimed for the purpose of paying the tax).
</P>
<P>(d) If the claimant or the owner, as the case may be, has neither sold nor contracted to sell the articles involved in the claim, a statement that the claimant or the owner, as the case may be, agrees not to shift, directly or indirectly in any manner whatsoever, the burden of the tax to any other person.
</P>
<P>(e) If the claim is for refund of a floor stocks tax, or of an amount resulting from an increase in rate of tax applicable to an article, a statement as to whether the price of the article was increased on or following the effective date of such floor stocks tax or rate increase, and, if so, the date of the increase, together with full information as to the amount of such price increase.
</P>
<P>(f) Specific evidence (such as relevant records, invoices, or other documents, or affidavits of individuals having personal knowledge of pertinent facts) which will satisfactorily establish the conditions of allowance set forth in § 46.5.
</P>
<FP>The appropriate TTB officer may require the claimant to furnish as a part of the claim such additional information as he may deem necessary.
</FP>
<CITA TYPE="N">[T.D. ATF-42, 42 FR 8372, Feb. 10, 1977, as amended by T.D. ATF-472a, 67 FR 63544, Oct. 15, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 46.9" NODE="27:2.0.1.1.5.1.137.9" TYPE="SECTION">
<HEAD>§ 46.9   Time for filing claim.</HEAD>
<P>No credit or refund of any amount of tax to which the provisions of this subpart apply shall be made unless the claimant files a claim therefor within the time prescribed by law and in accordance with the provisions of this subpart.
</P>
<CITA TYPE="N">[T.D. ATF-42, 42 FR 8373, Feb. 10, 1977]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="138" NODE="27:2.0.1.1.5.1.138" TYPE="SUBJGRP">
<HEAD>Bond</HEAD>


<DIV8 N="§ 46.10" NODE="27:2.0.1.1.5.1.138.10" TYPE="SECTION">
<HEAD>§ 46.10   Bond, Form 2490.</HEAD>
<P>Each claim for a refund or credit of tax on articles which the claimant or the owner, as the case may be, has neither sold nor contracted to sell at the time of filing of the claim must be accompanied by a bond on TTB Form 5620.10. The bond shall be executed by the claimant or the owner of the articles, as the case may be, in accordance with the provisions of this subpart and the instructions printed on the form. Such bond shall be conditioned that there will be no relief or shifting of the ultimate burden of the tax to any other person. The penal sum shall not be less than the amount of tax claimed on all articles which have not been sold or contracted for sale at the time of filing of the claim. Bonds required by this subpart shall be given with corporate surety or with collateral security. A separate bond must be filed for each claim.
</P>
<CITA TYPE="N">[T.D. 6395, 24 FR 599, Jan. 28, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-472, 67 FR 8880, Feb. 27, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 46.11" NODE="27:2.0.1.1.5.1.138.11" TYPE="SECTION">
<HEAD>§ 46.11   Corporate surety.</HEAD>
<P>(a) Surety bonds required under the provisions of this subpart may be given only with corporate sureties holding certificates of authority from the Secretary of the Treasury as acceptable sureties on Federal bonds. Limitations concerning corporate sureties are prescribed by the Secretary in the current revision of the Treasury Department Circular 570, Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies, as revised (see paragraph (c) of this section). The surety shall have no interest whatever in the business covered by the bond.
</P>
<P>(b) Each bond and each extension of coverage of bond shall at the time of filing be accompanied by a power of attorney authorizing the agent or officer who executed the bond to so act on behalf of the surety. The appropriate TTB officer who is authorized to approve the bond may, whenever he or she deems it necessary, require additional evidence of the authority of the agent or officer to execute the bond or extension of coverage of bond. The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed document, it shall be accompanied by a certificate of its validity.
</P>
<P>(c) Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46923, Sept. 23, 1981, as amended by T.D. ATF-472, 67 FR 8880, Feb. 27, 2002; T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 46.12" NODE="27:2.0.1.1.5.1.138.12" TYPE="SECTION">
<HEAD>§ 46.12   Deposit of securities in lieu of corporate surety.</HEAD>
<P>In lieu of corporate surety, the principal may pledge and deposit securities which are transferable and are guaranteed as to both interest and principal by the United States, in accordance with the provisions of 31 CFR part 225.


</P>
</DIV8>


<DIV8 N="§ 46.13" NODE="27:2.0.1.1.5.1.138.13" TYPE="SECTION">
<HEAD>§ 46.13   Authority to approve bonds.</HEAD>
<P>An appropriate TTB officer may approve all bonds required by this subpart.
</P>
<CITA TYPE="N">[T.D. ATF-472, 67 FR 8880, Feb. 27, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 46.14" NODE="27:2.0.1.1.5.1.138.14" TYPE="SECTION">
<HEAD>§ 46.14   Termination of liability.</HEAD>
<P>Bonds on TTB Form 5620.10 will be terminated by the appropriate TTB officer on receipt of satisfactory evidence that the person giving the bond has disposed of the articles covered by the bond and that he bore the ultimate burden of the amount claimed and that no understanding or agreement exists whereby he will be relieved of such burden or shift such burden to another person. 
</P>
<CITA TYPE="N">[T.D. 6395, 24 FR 599, Jan. 28, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-472, 67 FR 8880, Feb. 27, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 46.15" NODE="27:2.0.1.1.5.1.138.15" TYPE="SECTION">
<HEAD>§ 46.15   Release of pledged securities.</HEAD>
<P>Securities of the United States, pledged and deposited as provided by § 46.12, shall be released only in accordance with the provisions of 31 CFR part 225. When the appropriate TTB officer is satisfied that they may be released, he shall fix the date or dates on which a part or all of such securities may be released. At any time prior to the release of such securities, the appropriate TTB officer may, for proper cause, extend the date of release for such additional length of time as he deems necessary.
</P>
<CITA TYPE="N">[T.D. 6395, 24 FR 599, Jan. 28, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-472, 67 FR 8880, Feb. 27, 2002]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="139" NODE="27:2.0.1.1.5.1.139" TYPE="SUBJGRP">
<HEAD>Penalties</HEAD>


<DIV8 N="§ 46.16" NODE="27:2.0.1.1.5.1.139.16" TYPE="SECTION">
<HEAD>§ 46.16   Penalties.</HEAD>
<P>It is an offense punishable by fine and imprisonment for anyone to make or cause to be made any false or fraudulent claim upon the United States, or to make any false or fraudulent statements, or representations, in support of any claim, or to falsely or fraudulently execute any documents required by the provisions of the internal revenue laws, or any regulations made in pursuance thereof.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.1.5.2" TYPE="SUBPART">
<HEAD>Subpart B—Administrative Provisions</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-472, 67 FR 8880, Feb. 27, 2002, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 46.21" NODE="27:2.0.1.1.5.2.140.1" TYPE="SECTION">
<HEAD>§ 46.21   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.46, Delegation of the Administrator's Authorities in 27 CFR Part 46, Miscellaneous Regulations Relating to Tobacco Products and Cigarette Papers and Tubes. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16955, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 46.22" NODE="27:2.0.1.1.5.2.140.2" TYPE="SECTION">
<HEAD>§ 46.22   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. You must furnish all of the information required by each form as indicated by the headings on the form and the instructions for the form, and as required by this part. You must file each form in accordance with its instructions. 
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-472, 67 FR 8880, Feb. 27, 2002, as amended by T.D. TTB-44, 71 FR 16955, Apr. 4, 2006; T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.1.5.3" TYPE="SUBPART">
<HEAD>Subpart C—Disaster Loss Claims</HEAD>


<DIV8 N="§ 46.71" NODE="27:2.0.1.1.5.3.140.1" TYPE="SECTION">
<HEAD>§ 46.71   Scope of subpart.</HEAD>
<P>This subpart prescribes the requirements necessary to implement 26 U.S.C. 5708, concerning payments which may be made by the United States in respect to the internal revenue taxes paid or determined and customs duties paid on tobacco products, and cigarette papers and tubes removed, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of a disaster occurring in the United States on or after September 3, 1958.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 59, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55857, Sept. 28, 1979; T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV7 N="140" NODE="27:2.0.1.1.5.3.140" TYPE="SUBJGRP">
<HEAD>Definitions</HEAD>


<DIV8 N="§ 46.72" NODE="27:2.0.1.1.5.3.140.2" TYPE="SECTION">
<HEAD>§ 46.72   Meaning of terms.</HEAD>
<P>When used in this subpart, the following terms shall have the meanings given in this section, unless the context clearly indicates otherwise. Words in the plural form shall include the singular, and vice versa, and words indicating the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not listed which are in the same general class.
</P>
<P><I>Act.</I> The Excise Tax Technical Changes Act of 1958 (Pub. L. 85-859, 72 Stat. 1275), enacted September 2, 1958.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.46, Delegation of the Administrator's Authorities in 27 CFR Part 46, Miscellaneous Regulations Relating to Tobacco Products and Cigarette Papers and Tubes.
</P>
<P><I>Claimant.</I> The person who held the tobacco products or cigarette papers and tubes for sale at the time of the disaster and who files claim under this subpart.
</P>
<P><I>Commissioner of Customs.</I> The Commissioner of U.S. Customs and Border Protection, Department of Homeland Security, Washington, DC.
</P>
<P><I>Disaster.</I> A flood, fire, hurricane, earthquake, storm, or other catastrophe which has occurred in any part of the United States on and after the day following the date of enactment of the act and which the President of the United States has determined, under the Act of September 30, 1950 (64 Stat. 1109; 42 U.S.C. 1855), was a “major disaster” as defined in such Act.
</P>
<P><I>Duly authorized official.</I> Any Federal, State, or local government official in whom has been vested authority to condemn tobacco products and cigarette papers and tubes made the subject of a claim under this subpart.
</P>
<P><I>Duty or duties.</I> Any duty or duties paid under the customs laws of the United States.
</P>
<P><I>Removal or remove.</I> The removal of tobacco products or cigarette papers or tubes from the factory, or release of such articles from Customs custody.
</P>
<P><I>Sale price.</I> The price for which large cigars are sold by the manufacturer or importer, determined in accordance with §§ 40.22 or 41.39 and used in computation of the tax.
</P>
<P><I>Tax paid or determined.</I> The internal revenue tax on tobacco products and cigarette papers and tubes which has actually been paid, or which has been determined pursuant to 26 U.S.C. 5703(b), and regulations thereunder, at the time of their removal subject to tax payable on the basis of a return.
</P>
<P><I>Tobacco Products.</I> Cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
</P>
<P><I>United States.</I> When used in a geographical sense, includes only the States, and the District of Columbia.
</P>
<CITA TYPE="N">[T.D. 6392, 24 FR 5300, June 30, 1959]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 46.72, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV7>


<DIV7 N="141" NODE="27:2.0.1.1.5.3.141" TYPE="SUBJGRP">
<HEAD>Payments</HEAD>


<DIV8 N="§ 46.73" NODE="27:2.0.1.1.5.3.141.3" TYPE="SECTION">
<HEAD>§ 46.73   Circumstances under which payment may be made.</HEAD>
<P>An appropriate TTB officer shall allow payment (without interest) of an amount equal to the amount of tax paid or determined, and the Commissioner of Customs shall allow payment (without interest) of an amount equal to the amount of customs duty paid, on tobacco products, and cigarette papers and tubes removed, which are lost, rendered unmarketable, or condemned by a duly authorized official by reason of a disaster occurring in the United States on and after September 3, 1958. Such payments may be made only if, at the time of the disaster, such tobacco products, or cigarette papers or tubes were being held for sale by the claimant. No payment shall be made under this subpart with respect to any amount of tax or duty claimed or to be claimed under any other provision of law or regulations.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 59, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. ATF-232, 51 FR 28090, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-472, 67 FR 8881, Feb. 27, 2002]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="142" NODE="27:2.0.1.1.5.3.142" TYPE="SUBJGRP">
<HEAD>Claims Procedure</HEAD>


<DIV8 N="§ 46.74" NODE="27:2.0.1.1.5.3.142.4" TYPE="SECTION">
<HEAD>§ 46.74   Execution of claims.</HEAD>
<P>Disaster loss claims for tobacco products or cigarette papers or tubes must be executed on form TTB F 5620.8, Claim—Alcohol, Tobacco and Firearms Taxes, in accordance with the instructions on the form. If a claim involves taxes on both domestic and imported products, the quantities of each must be shown separately in the claim. Prepare a separate claim in respect of customs duties.
</P>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71945, Dec. 22, 1999, as amended by T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 46.75" NODE="27:2.0.1.1.5.3.142.5" TYPE="SECTION">
<HEAD>§ 46.75   Required information for claim.</HEAD>
<P>The claim should contain the following information:
</P>
<P>(a) That the tax on such tobacco products, or cigarette papers or tubes has been paid or determined and customs duty has been paid;
</P>
<P>(b) That such tobacco products, or cigarette papers or tubes were lost, rendered unmarketable, or condemned by a duly authorized official, by reason of a disaster;
</P>
<P>(c) The type and date of occurrence of the disaster and the location of the tobacco products, or cigarette papers or tubes at that time;
</P>
<P>(d) That the claimant was not indemnified by any valid claim of insurance or otherwise in respect of the tax, or tax and duty, on the tobacco products, or cigarette papers or tubes covered by the claim;
</P>
<P>(e) That no amount of internal revenue tax or customs duty claimed has been or will be otherwise claimed under any other provision of law or regulations,
</P>
<P>(f) That the claimant is entitled to payment under this subpart, and
</P>
<P>(g) The claim must set forth the quantity and kind of tobacco products and cigarette papers and tubes in sufficient detail to calculate the amount of tax and duty paid on these products, substantially as shown in the examples below:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_description">[Example using rates for 2002 and After]
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Quantity
</TH><TH class="gpotbl_colhed" scope="col">Article
</TH><TH class="gpotbl_colhed" scope="col">Rate of tax
</TH><TH class="gpotbl_colhed" scope="col">Amount
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">20,000</TD><TD align="left" class="gpotbl_cell">Small cigars</TD><TD align="left" class="gpotbl_cell">$1.828 per thousand</TD><TD align="right" class="gpotbl_cell">36.56
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1,000</TD><TD align="left" class="gpotbl_cell">Large cigars—sale price $100/thousand</TD><TD align="left" class="gpotbl_cell">20.719% of sale price</TD><TD align="right" class="gpotbl_cell">20.72
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">500</TD><TD align="left" class="gpotbl_cell">Large cigars—sale price $236/thousand</TD><TD align="left" class="gpotbl_cell">$48.75 per thousand</TD><TD align="right" class="gpotbl_cell">24.38
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">10,000</TD><TD align="left" class="gpotbl_cell">Small cigarettes</TD><TD align="left" class="gpotbl_cell">$19.50 per thousand</TD><TD align="right" class="gpotbl_cell">195.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5,000</TD><TD align="left" class="gpotbl_cell">Large cigarettes</TD><TD align="left" class="gpotbl_cell">$40.95 per thousand</TD><TD align="right" class="gpotbl_cell">204.75
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">199,975</TD><TD align="left" class="gpotbl_cell">Cigarette papers</TD><TD align="left" class="gpotbl_cell">$0.0122 per 50 papers</TD><TD align="right" class="gpotbl_cell">48.80
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1,000</TD><TD align="left" class="gpotbl_cell">Cigarette tubes</TD><TD align="left" class="gpotbl_cell">$0.0244 per 50 tubes</TD><TD align="right" class="gpotbl_cell">0.49
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">100 lbs</TD><TD align="left" class="gpotbl_cell">Chewing tobacco</TD><TD align="left" class="gpotbl_cell">$0.195 per pound</TD><TD align="right" class="gpotbl_cell">19.50
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">200 lbs</TD><TD align="left" class="gpotbl_cell">Snuff</TD><TD align="left" class="gpotbl_cell">$0.585 per pound</TD><TD align="right" class="gpotbl_cell">117.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">100 lbs</TD><TD align="left" class="gpotbl_cell">Pipe tobacco</TD><TD align="left" class="gpotbl_cell">$1.0969 per pound</TD><TD align="right" class="gpotbl_cell">109.69
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">300 lbs</TD><TD align="left" class="gpotbl_cell">Roll-your-own tobacco</TD><TD align="left" class="gpotbl_cell">$1.0969 per pound</TD><TD align="right" class="gpotbl_cell">329.07
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Total claimed</TD><TD align="left" class="gpotbl_cell"> </TD><TD align="left" class="gpotbl_cell"> </TD><TD align="right" class="gpotbl_cell">1,105.96</TD></TR></TABLE></DIV></DIV>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Example Using Rates for April 1, 2009 and After
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Quantity
</TH><TH class="gpotbl_colhed" scope="col">Article
</TH><TH class="gpotbl_colhed" scope="col">Rate of tax
</TH><TH class="gpotbl_colhed" scope="col">Amount
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">20,000</TD><TD align="left" class="gpotbl_cell">Small cigars</TD><TD align="left" class="gpotbl_cell">$50.33 per thousand</TD><TD align="right" class="gpotbl_cell">$1,006.60
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1,000</TD><TD align="left" class="gpotbl_cell">Large cigars—sale price $100/thousand</TD><TD align="left" class="gpotbl_cell">52.75% of sale price</TD><TD align="right" class="gpotbl_cell">52.75
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">500</TD><TD align="left" class="gpotbl_cell">Large cigars—sale price $0.77 per cigar</TD><TD align="left" class="gpotbl_cell">$0.4026 per cigar</TD><TD align="right" class="gpotbl_cell">201.30
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">10,000</TD><TD align="left" class="gpotbl_cell">Small cigarettes</TD><TD align="left" class="gpotbl_cell">$50.33 per thousand</TD><TD align="right" class="gpotbl_cell">503.30
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5,000</TD><TD align="left" class="gpotbl_cell">Large cigarettes</TD><TD align="left" class="gpotbl_cell">$105.69 per thousand</TD><TD align="right" class="gpotbl_cell">528.45
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">199,975</TD><TD align="left" class="gpotbl_cell">Cigarette papers</TD><TD align="left" class="gpotbl_cell">$0.0315 per 50 papers</TD><TD align="right" class="gpotbl_cell">126.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1,000</TD><TD align="left" class="gpotbl_cell">Cigarette tubes</TD><TD align="left" class="gpotbl_cell">$0.0630 per 50 tubes</TD><TD align="right" class="gpotbl_cell">1.26
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">100 lbs</TD><TD align="left" class="gpotbl_cell">Chewing tobacco</TD><TD align="left" class="gpotbl_cell">$0.5033 per pound</TD><TD align="right" class="gpotbl_cell">50.33
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">200 lbs</TD><TD align="left" class="gpotbl_cell">Snuff</TD><TD align="left" class="gpotbl_cell">$1.51 per pound</TD><TD align="right" class="gpotbl_cell">302.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">100 lbs</TD><TD align="left" class="gpotbl_cell">Pipe tobacco</TD><TD align="left" class="gpotbl_cell">$2.8311 per pound</TD><TD align="right" class="gpotbl_cell">283.11
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">300 lbs</TD><TD align="left" class="gpotbl_cell">Roll-your-own tobacco</TD><TD align="left" class="gpotbl_cell">$24.78 per pound</TD><TD align="right" class="gpotbl_cell">7,434.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Total claimed</TD><TD align="left" class="gpotbl_cell">10,489.10</TD><TD align="left" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71945, Dec. 22, 1999, as amended by T.D. TTB-75, 74 FR 14485, Mar. 31, 2009]



</CITA>
</DIV8>


<DIV8 N="§ 46.76" NODE="27:2.0.1.1.5.3.142.6" TYPE="SECTION">
<HEAD>§ 46.76   Supporting evidence.</HEAD>
<P>The claimant must support the claim with any available evidence (such as inventories, statements, invoices, bills, records, stamps, and labels), relating to the tobacco products or cigarette papers or tubes on hand at the time of the disaster and claimed to have been lost, rendered unmarketable, or condemned as a result thereof. If the claim is for refund of duty, the claimant must furnish, if practicable, the customs entry number, date of entry, and the name of the port of entry.
</P>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71946, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 46.77" NODE="27:2.0.1.1.5.3.142.7" TYPE="SECTION">
<HEAD>§ 46.77   Time and place of filing.</HEAD>
<P>Disaster loss claims must be filed within 6 months after the date on which the President makes the determination that the disaster has occurred. All forms, including claims for duty on imported products, must be filed with the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-420, 64 FR 71946, Dec. 22, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 46.78" NODE="27:2.0.1.1.5.3.142.8" TYPE="SECTION">
<HEAD>§ 46.78   Action by appropriate TTB officer.</HEAD>
<P>The appropriate TTB officer must act upon each claim for payment (without interest) of an amount equal to the tax paid or determined filed under this subpart and must notify the claimant. Claims and supporting data involving customs duties will be forwarded to the Commissioner of Customs with a summary statement of such officer's findings.
</P>
<CITA TYPE="N">[T.D. ATF-472, 67 FR 8881, Feb. 27, 2002]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="143" NODE="27:2.0.1.1.5.3.143" TYPE="SUBJGRP">
<HEAD>Destruction of Tobacco Products, and Cigarette Papers and Tubes</HEAD>


<DIV8 N="§ 46.79" NODE="27:2.0.1.1.5.3.143.9" TYPE="SECTION">
<HEAD>§ 46.79   Supervision.</HEAD>
<P>Before payment is made under this subpart in respect of the tax, or tax and duty, on tobacco products, or cigarette papers or tubes rendered unmarketable or condemned by a duly authorized official, such tobacco products, or cigarette papers or tubes must be destroyed by suitable means under the supervision of an appropriate TTB officer who will be assigned for that purpose by another appropriate TTB officer. However, if the destruction of such tobacco products, or cigarette papers or tubes has already occurred, and if the appropriate TTB officer who acts on the claim is satisfied with the supervision of such destruction, TTB supervision will not be required.
</P>
<CITA TYPE="N">[T.D. ATF-472, 67 FR 8881, Feb. 27, 2002]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="144" NODE="27:2.0.1.1.5.3.144" TYPE="SUBJGRP">
<HEAD>Penalties</HEAD>


<DIV8 N="§ 46.80" NODE="27:2.0.1.1.5.3.144.10" TYPE="SECTION">
<HEAD>§ 46.80   Penalties.</HEAD>
<P>Penalties are provided in 26 U.S.C. 7206 and 7207 for the execution under the penalties of perjury of any false or fraudulent statement in support of any claim and for the filing of any false or fraudulent document under this subpart. All provisions of law, including penalties, applicable in respect of internal revenue taxes on tobacco products, and cigarette papers and tubes shall, insofar as applicable and not inconsistent with this subpart, be applied in respect of the payments provided for in this subpart to the same extent as if such payments constituted refunds of such taxes.
</P>
<CITA TYPE="N">[T.D. 6871, 31 FR 60, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55857, Sept. 28, 1979; T.D. ATF-232, 51 FR 28092, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="145" NODE="27:2.0.1.1.5.3.145" TYPE="SUBJGRP">
<HEAD>Admimistrative Provisions</HEAD>


<DIV8 N="§ 46.81" NODE="27:2.0.1.1.5.3.145.11" TYPE="SECTION">
<HEAD>§ 46.81   [Reserved]</HEAD>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.1.5.4" TYPE="SUBPART">
<HEAD>Subpart D—Rules for Special (Occupational) Tax</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. TTB-79, 74 FR 37420, July 28, 2009, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 46.91" NODE="27:2.0.1.1.5.4.146.1" TYPE="SECTION">
<HEAD>§ 46.91   Scope of subpart.</HEAD>
<P>This subpart contains rules relating to special (occupational) taxes that must be paid by manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors.


</P>
</DIV8>


<DIV8 N="§ 46.92" NODE="27:2.0.1.1.5.4.146.2" TYPE="SECTION">
<HEAD>§ 46.92   Meaning of terms.</HEAD>
<P>As used in this subpart, the following terms shall have the meanings indicated unless either the context in which they are used requires a different meaning, or a different definition is prescribed for a particular section or portion of this subpart:
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.46, Delegation of the Administrator's Authorities in 27 CFR Part 46, Miscellaneous Regulations Relating to Tobacco Products and Cigarette Papers and Tubes.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Cigarette paper.</I> Paper, or any other material except tobacco, prepared for use as a cigarette wrapper.
</P>
<P><I>Cigarette tube.</I> Cigarette paper made into a hollow cylinder for use in making cigarettes.
</P>
<P><I>Export warehouse.</I> A bonded internal revenue warehouse for the storage of tobacco products and cigarette papers and tubes, upon which the internal revenue tax has not been paid, for subsequent shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States.
</P>
<P><I>Export warehouse proprietor.</I> Any person who operates an export warehouse.
</P>
<P><I>Manufacturer of cigarette papers and tubes.</I> Any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for their own personal use or consumption.
</P>
<P><I>Manufacturer of tobacco products.</I> Any person who manufactures tobacco products.
</P>
<P><I>Person.</I> An individual, a trust, estate, partnership, association or other unincorporated organization, fiduciary, company, or corporation, or the District of Columbia, a State, or a political subdivision thereof (including a city, county, or other municipality).
</P>
<P><I>Special tax.</I> The special (occupational) tax on manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors, imposed by 26 U.S.C. 5731.
</P>
<P><I>Tax year.</I> The period from July 1 of one calendar year through June 30 of the following calendar year.
</P>
<P><I>This chapter.</I> Chapter I of title 27 of the Code of Federal Regulations.
</P>
<P><I>Tobacco products.</I> Cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37420, July 28, 2009, as amended by T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 46.93" NODE="27:2.0.1.1.5.4.146.3" TYPE="SECTION">
<HEAD>§ 46.93   Multiple businesses of same ownership and location.</HEAD>
<P>(a) Where more than one type of taxable business is conducted by the same person at the same place, special tax for each business must be paid at the rates prescribed for each.
</P>
<P>(b) Where the same type of taxable business is conducted by the same person in different areas of the same premises, only one special tax payment is required.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5733)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.94" NODE="27:2.0.1.1.5.4.146.4" TYPE="SECTION">
<HEAD>§ 46.94   Relation to State and municipal law.</HEAD>
<P>(a) <I>General.</I> The payment of special (occupational) tax does not exempt any person from any penalty or punishment provided by the laws of any State for carrying on any trade or business within that State, nor does it authorize the commencement or continuance of any trade or business contrary to State law or in places prohibited by county or municipal law. Payment of this tax does not prohibit any State from placing an additional duty or tax on the same trade or business, for State or other purposes.
</P>
<P>(b) <I>Special tax stamps.</I> TTB officers are without authority to refuse to issue a special tax stamp to a person engaged in business in violation of State law. The stamp is not a Federal permit or license, but is merely a receipt for the tax. The stamp affords the holder no protection against prosecution for violation of State law.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5734)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.95" NODE="27:2.0.1.1.5.4.146.5" TYPE="SECTION">
<HEAD>§ 46.95   Liability of partners.</HEAD>
<P>Any number of persons carrying on one business in partnership at any one place during any tax year are required to pay only one special tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5733)


</SECAUTH>
</DIV8>


<DIV7 N="146" NODE="27:2.0.1.1.5.4.146" TYPE="SUBJGRP">
<HEAD>Payment of Special Tax</HEAD>


<DIV8 N="§ 46.101" NODE="27:2.0.1.1.5.4.146.6" TYPE="SECTION">
<HEAD>§ 46.101   Special tax returns.</HEAD>
<P>(a) <I>Preparation of TTB Form 5630.5t.</I> Every manufacturer of tobacco products, manufacturer of cigarette papers and tubes, and export warehouse proprietor is required to pay special (occupational) tax and file a return on TTB Form 5630.5t, “Special Tax Registration and Return—Tobacco.” TTB Form 5630.5t must be completed in accordance with the instructions on the form, and all of the information called for on the form must be provided, including the following:
</P>
<P>(1) Name of the taxpayer.
</P>
<P>(2) Trade name(s) (if any) of the business(es) subject to special (occupational) tax.
</P>
<P>(3) Employer identification number (see § 46.102).
</P>
<P>(4) Exact location of the place of business, by name and number of building or street, or if these do not exist, by some specific description in addition to the post office address. In the case of one return for two or more locations, the address to be shown must be the taxpayer's principal place of business (or principal office, in the case of a corporate taxpayer).
</P>
<P>(5) Class(es) of special tax to which the taxpayer is subject.
</P>
<P>(6) Ownership and control information. This consists of the name, position, and residence address of every owner of the business and of every person having power to control its management and policies with respect to the activity subject to special tax. “Owner of the business” includes every partner, if the taxpayer is a partnership, and every person owning 10 percent or more of its stock, if the taxpayer is a corporation. However, the ownership and control information required by this paragraph need not be stated if the same information has been previously provided to TTB in connection with a permit application and that previously provided information is still current.
</P>
<P>(b) <I>Multiple locations and/or classes of tax.</I> A taxpayer subject to special tax for the same period at more than one location or for more than one class of tax must—
</P>
<P>(1) File one special tax return, TTB Form 5630.5t, with payment of tax, to cover all such locations and classes of tax; and
</P>
<P>(2) Prepare, in duplicate, a list identified with the taxpayer's name, address (as shown on TTB Form 5630.5t), employer identification number, and period covered by the return. The list must show, by State, the name, address, and tax class of each location for which special tax is being paid. The original of the list must be filed with TTB as an attachment to TTB Form 5630.5t, and the copy must be retained at the taxpayer's principal place of business (or principal office, in the case of a corporate taxpayer) for a period of three years from the date of the return.
</P>
<P>(c) <I>Signing of TTB Form 5630.5t</I>—(1) <I>By principal.</I> The return of an individual proprietor must be signed by the individual. The return of a partnership must be signed by a general partner. The return of a corporation must be signed by an officer. In each case, the person signing the return must designate his or her capacity as “individual owner,” “member of firm,” or, in the case of a corporation, the officer's title.
</P>
<P>(2) <I>By fiduciary.</I> A receiver, trustee, assignee, executor, administrator, or other legal representative who continues the business of a bankrupt, insolvent, deceased, or otherwise incapacitated person must indicate the capacity in which the fiduciary acts.
</P>
<P>(3) <I>By agent or attorney in fact.</I> If a return is signed by an agent or attorney in fact, the signature must be preceded by the name of the principal and followed by the title of the agent or attorney in fact. A return signed by a person as agent will not be accepted unless there is filed, with the TTB office with which the return is required to be filed, a power of attorney authorizing the agent to perform the act.
</P>
<P>(d) <I>Perjury statement.</I> Each TTB Form 5630.5t must contain, or be verified by, a written declaration that the return has been executed under the penalties of perjury.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5732, 6061, 6065, 6151, 7011) 
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0112)


</APPRO>
</DIV8>


<DIV8 N="§ 46.102" NODE="27:2.0.1.1.5.4.146.7" TYPE="SECTION">
<HEAD>§ 46.102   Employer identification number.</HEAD>
<P>(a) <I>Requirement.</I> The employer identification number (as defined in 26 CFR 301.7701-12) of the taxpayer who has been assigned such a number must be shown on each special tax return, including each amended return, filed under this subpart. Failure of the taxpayer to include the employer identification number may result in the imposition of the penalty specified in § 70.113 of this chapter.
</P>
<P>(b) <I>Application for employer identification number.</I> Each taxpayer who files a special tax return and who has not already been assigned an employer identification number must file Internal Revenue Service (IRS) Form SS-4 to apply for one. The taxpayer must apply for and be assigned only one employer identification number, regardless of the number of places of business for which the taxpayer is required to file a special tax return. The taxpayer must apply for the employer identification number no later than 7 days after the filing of the taxpayer's first special (occupational) tax return. IRS Form SS-4 may be obtained from the director of an IRS service center, from any IRS district director, or from <I>https://www.irs.gov.</I>
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6109)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37420, July 28, 2009, as amended by T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 46.103" NODE="27:2.0.1.1.5.4.146.8" TYPE="SECTION">
<HEAD>§ 46.103   Time for filing return and paying tax.</HEAD>
<P>The return, along with remittance of special tax, must be filed on or before the date of commencing business as a manufacturer of tobacco products, manufacturer of cigarette papers or tubes, or export warehouse proprietor, and thereafter every year on or before July 1. If the return and applicable tax are received in the mail and the U.S. postmark on the cover shows that it was deposited in the mail in the United States within the time prescribed for filing in an envelope or other appropriate wrapper which was properly addressed with postage prepaid, the return will be considered as timely filed. If the postmark is not legible, the sender has the burden of proving the date when the postmark was made. When registered mail is used, the date of registration will be accepted as the postmark date. When certified mail is used, the date of the postmark on the sender's receipt of certified mail is treated as the postmark date.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5732, 6011, 6071)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.104" NODE="27:2.0.1.1.5.4.146.9" TYPE="SECTION">
<HEAD>§ 46.104   Method of payment.</HEAD>
<P>Payment of special tax must be made in cash, or by check or money order payable to Alcohol and Tobacco Tax and Trade Bureau. If a check or money order so tendered is not honored when presented for payment, the person who tendered the check or money order will remain liable for the payment of the special tax, and for all penalties and additions, to the same extent as if the check or money order had not been tendered. In addition, unless the person who tendered the check or money order can show that the check or money order was issued in good faith, and with reasonable cause to believe that it would be duly paid, there must be paid as penalty an amount equal to 1 percent of the amount of the check or money order, except that if the amount of the check or money order is less than $500, the penalty will be $5, or the amount of the check or money order, whichever is less.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6311, 6657)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.105" NODE="27:2.0.1.1.5.4.146.10" TYPE="SECTION">
<HEAD>§ 46.105   Receipt for taxes.</HEAD>
<P>Subject to § 46.106, the appropriate TTB officer will issue a receipt to a taxpayer if cash is received as a remittance in payment of special tax (including penalties and interest, if any), or for any type of remittance received if the taxpayer requests a receipt.


</P>
</DIV8>


<DIV8 N="§ 46.106" NODE="27:2.0.1.1.5.4.146.11" TYPE="SECTION">
<HEAD>§ 46.106   Receipt in lieu of stamp prohibited.</HEAD>
<P>No receipt will be issued in lieu of issuance of a special tax stamp under § 46.116. A receipt may be given only pending the issuance of a stamp, or where the tax liability relates to a prior tax year.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6314)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.107" NODE="27:2.0.1.1.5.4.146.12" TYPE="SECTION">
<HEAD>§ 46.107   Penalty for failure to file return or to pay tax.</HEAD>
<P>(a) <I>Failure to file return.</I> Any person required by this subpart to file a return on TTB Form 5630.5t who fails to file the return on or before the date for filing prescribed in § 46.103 must pay, in addition to the tax, a delinquency penalty, unless it is shown that such failure is due to reasonable cause and not due to willful neglect (see § 46.109). The delinquency penalty for failure to file the return on or before the last date prescribed will be 5 percent of the amount required to be shown as tax on the return if the failure to file is for not more than one month; with an additional 5 percent for each additional month or fraction thereof during which the delinquency continues, but not more than 25 percent in the aggregate.
</P>
<P>(b) <I>Failure to pay tax.</I> Any person who files a return on TTB Form 5630.5t under this subpart and who fails to pay the amount shown as tax on the return on or before the date prescribed in § 46.103 for payment of such tax, must pay a penalty, in addition to the tax, unless it is shown that such failure is due to reasonable cause and not due to willful neglect (see § 46.109). The penalty for failure to pay the tax on or before the date prescribed for payment is 0.5 percent of the amount shown as tax on the return if the failure to pay is not for more than one month; with an additional 0.5 percent for each additional month or fraction thereof during which the failure continues, but not more than 25 percent in the aggregate. Any person required to pay the special tax who willfully fails to pay the tax shall be fined not more than $5,000, or imprisoned not more than 2 years, or both, for each such offense.
</P>
<P>(c) <I>Limitations.</I> With respect to any return on Form 5630.5t, the amount of the addition under paragraph (a) of this section will be reduced by the amount of the addition under paragraph (b) of this section for any month to which an addition to tax applies under both paragraph (a) and paragraph (b) of this section. If the amount of tax required to be shown as tax on the return is less than the amount shown as tax on such return, the penalties prescribed in paragraphs (a) and (b) of this section will be applied by substituting that lower amount.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5731, 6651)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.108" NODE="27:2.0.1.1.5.4.146.13" TYPE="SECTION">
<HEAD>§ 46.108   Interest on unpaid tax.</HEAD>
<P>(a) <I>General.</I> Interest is due on unpaid special tax from the date the tax was required to be paid to the date paid. Interest will be charged for each day at the rate prescribed by law in effect on that day. Interest accruing after December 31, 1982, is compounded daily.
</P>
<P>(b) <I>Adjusted interest rates.</I> Adjusted interest rates, determined in accordance with the procedure prescribed by 26 U.S.C. 6621(b), are announced quarterly by the Commissioner of Internal Revenue. The appropriate TTB officer will provide information, when requested, regarding interest rates applicable to specific time periods.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6601, 6621)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.109" NODE="27:2.0.1.1.5.4.146.14" TYPE="SECTION">
<HEAD>§ 46.109   Waiver of penalties.</HEAD>
<P>In every case where a special tax return is not filed, or the tax is not paid, at the time prescribed in § 46.103, the delinquency penalties specified in § 46.107 for failure to file a return or for failure to pay the amount shown as tax on the return will be asserted and collected unless a reasonable cause for delay in filing the return or payment of the tax is clearly established. A taxpayer who believes the circumstances that delayed such taxpayer's filing of the return or payment of the tax are reasonable, and who desires to have the penalties waived, must submit with the return a written statement under the penalty of perjury, affirmatively showing all of the circumstances alleged as reasonable causes for delay. If the appropriate TTB officer determines that the delinquency was due to a reasonable cause and not to willful neglect or gross negligence, the addition to the tax will be waived. If the taxpayer exercised ordinary business care and prudence and was nevertheless unable to file the return within the prescribed time, or if the taxpayer made a satisfactory showing that the taxpayer exercised ordinary business care and prudence in providing for payment of the tax liability and was nevertheless either unable to pay the tax or would have suffered an undue hardship if the taxpayer had paid on the due date, then the delay is due to reasonable cause. Mere ignorance of the law will not be considered a reasonable cause.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6651)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="147" NODE="27:2.0.1.1.5.4.147" TYPE="SUBJGRP">
<HEAD>Special Tax Stamps</HEAD>


<DIV8 N="§ 46.116" NODE="27:2.0.1.1.5.4.147.15" TYPE="SECTION">
<HEAD>§ 46.116   Issuance, distribution, and examination of special tax stamps.</HEAD>
<P>(a) <I>Issuance of special tax stamps.</I> Upon filing a properly executed return on TTB Form 5630.5t together with the full tax remittance, the taxpayer will be issued an appropriately designated special tax stamp. If the return covers multiple locations, TTB will send to the taxpayer's principal place of business (or principal office in the case of a corporate taxpayer) one appropriately designated stamp for each location listed on the attachment to TTB Form 5630.5t required by § 46.101(b)(2).
</P>
<P>(b) <I>Distribution of special tax stamps for multiple locations.</I> On receipt of the special tax stamps, the taxpayer must verify that there is one stamp for each location listed on the attachment to TTB Form 5630.5t and that the information on each stamp is correct. The taxpayer must then forward each stamp to the place of business designated on the stamp. Incorrect stamps must be returned to the appropriate TTB officer as provided in § 46.120.
</P>
<P>(c) <I>Examination of special tax stamps.</I> Each stamp denoting payment of special tax must be kept available for inspection by an appropriate TTB officer during business hours at the location for which the stamp is designated.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5732)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.117" NODE="27:2.0.1.1.5.4.147.16" TYPE="SECTION">
<HEAD>§ 46.117   Lost or destroyed stamps.</HEAD>
<P>If a special tax stamp has been lost or destroyed, the taxpayer must immediately notify the TTB officer who issued the stamp. A “Certificate in Lieu of Lost or Destroyed Special Tax Stamp” will be issued to the taxpayer who submits an affidavit explaining to the satisfaction of the appropriate TTB officer that the stamp was lost or destroyed. The certificate must be kept available for inspection in the same manner as prescribed for a special tax stamp in § 46.116(c).


</P>
</DIV8>


<DIV8 N="§ 46.118" NODE="27:2.0.1.1.5.4.147.17" TYPE="SECTION">
<HEAD>§ 46.118   Certificate in lieu of lost or destroyed special tax stamp.</HEAD>
<P>The provisions of this subpart relating to special tax stamps apply as well to certificates in lieu of lost or destroyed special tax stamps issued to taxpayers under § 46.117.


</P>
</DIV8>


<DIV8 N="§ 46.119" NODE="27:2.0.1.1.5.4.147.18" TYPE="SECTION">
<HEAD>§ 46.119   Errors disclosed by taxpayers.</HEAD>
<P>On receipt of a special tax stamp, the taxpayer must examine it to ensure that the name and address are correctly stated; if not, the taxpayer must return the stamp to the TTB officer who issued it, with a statement showing the nature of the error and the correct name or address. The appropriate TTB officer, on receipt of such stamp and statement, will compare the data on the stamp with that of the Form 5630.5t in TTB files, correct the error if made in the TTB office, and return the stamp to the taxpayer. However, if the error was in the taxpayer's preparation of the Form 5630.5t, the appropriate TTB officer will require the taxpayer to file a new Form 5630.5t, designated “Amended Return,” setting forth the taxpayer's correct name and address, and a statement explaining the error on the original Form 5630.5t. On receipt of the amended Form 5630.5t and a satisfactory explanation of the error, the appropriate TTB officer will make the proper correction on the stamp and return it to the taxpayer.


</P>
</DIV8>


<DIV8 N="§ 46.120" NODE="27:2.0.1.1.5.4.147.19" TYPE="SECTION">
<HEAD>§ 46.120   Errors discovered on inspection.</HEAD>
<P>When a TTB officer discovers on a special tax stamp a material error in the name, ownership, or address of the taxpayer, that officer will require the taxpayer to surrender the erroneous tax stamp and prepare a new Form 5630.5t, designated “Amended Return,” showing correctly all of the information required in § 46.101 and containing, in the body of the form or in an attachment thereto, a statement of the reason for requesting correction of the stamp. On receipt of the amended return and an acceptable explanation for the error, the officer will make the proper correction on the stamp and return it to the taxpayer. However, if the error found by the TTB officer is on a special tax stamp issued as a result of a return on Form 5630.5t filed under § 46.101(b), that officer will instruct the taxpayer to return the stamp, with a statement showing the nature of the error and the correct data, to the TTB officer who issued the stamp, for correction in accordance with § 46.119.


</P>
</DIV8>

</DIV7>


<DIV7 N="148" NODE="27:2.0.1.1.5.4.148" TYPE="SUBJGRP">
<HEAD>Changes in Businesses Holding Special (Occupational) Tax Stamps</HEAD>


<DIV8 N="§ 46.126" NODE="27:2.0.1.1.5.4.148.20" TYPE="SECTION">
<HEAD>§ 46.126   Change in name or address.</HEAD>
<P>(a) <I>Change in name.</I> If there is a change in the corporate or firm name, or in the trade name, as shown on TTB Form 5630.5t, the taxpayer must file an amended special tax return as soon as practicable after the change, covering the new corporate or firm name, or trade name. No new special tax is required to be paid. The taxpayer must attach the special tax stamp for endorsement of the change in name.
</P>
<P>(b) <I>Change in location</I>—(1) <I>General.</I> If there is a change in location of a taxable place of business, the taxpayer must, within 30 days after the change, file with TTB an amended special tax return covering the new location. The taxpayer must attach the special tax stamp or stamps for endorsement of the change in location. No new special tax is required to be paid. However, if the taxpayer does not file the amended return within 30 days, the taxpayer is required to pay a new special tax and obtain a new special tax stamp.
</P>
<P>(2) <I>Procedure.</I> If the taxpayer's original return on TTB Form 5630.5t covered only one location, the taxpayer may deliver the amended return and the stamp at any TTB office, or to any TTB officer inspecting the business, in lieu of mailing them to TTB. If the taxpayer's original return covered multiple locations under the provisions of § 46.101(b), he or she must forward with the amended return an attachment showing both the old and new address of any place of business which has been relocated, and the special tax stamp covering the location from which the business was removed. The appropriate TTB officer receiving such return or stamp will, if the return is submitted within the 30-day period, enter the proper endorsement on the stamp and return it to the taxpayer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5733, 7011)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.127" NODE="27:2.0.1.1.5.4.148.21" TYPE="SECTION">
<HEAD>§ 46.127   Change in ownership.</HEAD>
<P>(a) <I>General.</I> A special tax stamp is a receipt for tax, personal to the one to whom issued, and is not transferable from one manufacturer of tobacco products, manufacturer of cigarette papers and tubes, or export warehouse proprietor to another. If there is a change in the ownership of a special-tax payer, the successor must pay a new special (occupational) tax and obtain the required special tax stamp(s). Examples of changes in ownership that require payment of a new special tax include, but are not limited to, the following:
</P>
<P>(1) Sale of business;
</P>
<P>(2) Formation of a partnership by two persons who have paid special tax;
</P>
<P>(3) Addition of a partner;
</P>
<P>(4) Incorporation of the business;
</P>
<P>(5) Creation of a new corporation to replace one or more corporations that have paid special tax; and
</P>
<P>(6) Stockholder continuing the business of a corporation after its dissolution.
</P>
<P>(b) <I>Changes that do not require payment of a new special tax.</I> The following changes do not require payment of a special tax:
</P>
<P>(1) Increase in capital stock of a corporation.
</P>
<P>(2) Change in ownership of any or all of the capital stock of a corporation.
</P>
<P>(c) <I>Exemption for certain successors.</I> Persons identified in paragraph (d) of this section as having the right of succession may carry on the business for the remainder of the tax year for which the special tax was paid, without paying a new special tax, if within 30 days after the date on which the successor begins to carry on the business, the successor files with TTB a special tax return on TTB Form 5630.5t showing the basis of succession. A person who is a successor to a business for which special tax has been paid, and who fails to register the succession, is liable for special tax computed from the first day of the calendar month in which the successor began to carry on the business.
</P>
<P>(d) <I>Persons having right of succession.</I> The right of succession referred to in paragraph (c) of this section will pass to the identified persons in the following circumstances:
</P>
<P>(1) <I>Death.</I> The surviving spouse or child, or the executor, administrator, or other legal representative, of a deceased taxpayer;
</P>
<P>(2) <I>Succession of spouse.</I> A husband or wife succeeding to the business of his or her living spouse;
</P>
<P>(3) <I>Insolvency.</I> A receiver or trustee in bankruptcy, or an assignee for the benefit of creditors;
</P>
<P>(4) <I>Withdrawal from firm.</I> The partner or partners remaining after the death or withdrawal of a member of a partnership.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5733)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="149" NODE="27:2.0.1.1.5.4.149" TYPE="SUBJGRP">
<HEAD>Stamps for Incorrect Period or Incorrect Liability</HEAD>


<DIV8 N="§ 46.131" NODE="27:2.0.1.1.5.4.149.22" TYPE="SECTION">
<HEAD>§ 46.131   General.</HEAD>
<P>If a taxpayer through error has filed a return and paid special tax for an incorrect period of liability or for an incorrect class of business, the taxpayer must prepare a corrected TTB Form 5630.5t, designated “Amended Return,” for each tax year involved and must submit the amended return, or returns, with remittance for the total applicable tax and additions to the tax (delinquency penalties and interest), to TTB in accordance with the instructions on the Form 5630.5t or, if the error is discovered by a TTB officer inspecting the premises, to that officer. Subject to the limitations imposed by 26 U.S.C. 6511, the incorrectly paid tax (including additions thereto) may be allowed as a credit against the correct tax (including any additions thereto), as provided in § 46.132, on surrender of the incorrect stamp or stamps, with the amended return or returns noted to show that credit is requested. Any incorrectly paid tax (including additions thereto) that is not credited as provided in § 46.132, including any creditable tax and additions thereto in excess of the correct tax (including additions thereto), may be refunded pursuant to §§ 46.136 through 46.138 if the taxpayer files a corrected return on Form 5630.5t with remittance of the correct amount of tax (including any additions thereto). A new stamp will be issued only for a current period of liability.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6011)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.132" NODE="27:2.0.1.1.5.4.149.23" TYPE="SECTION">
<HEAD>§ 46.132   Credit for incorrect stamp.</HEAD>
<P>(a) <I>General.</I> The appropriate TTB officer may credit the tax (including additions thereto) paid for an incorrect stamp if the taxpayer has filed an amended return showing the correct tax on TTB Form 5630.5t and has, with the amended return, surrendered the incorrect stamp for credit.
</P>
<P>(b) <I>Underpayment.</I> Where the correct tax (including any additions thereto) exceeds the incorrect tax paid, the appropriate TTB officer may credit the tax paid against the correct tax upon remittance of the difference between the tax paid and the correct tax plus any additions thereto.
</P>
<P>(c) <I>Overpayment.</I> Where the tax (and additions thereto) paid for the surrendered incorrect stamp exceeds the amount due, the appropriate TTB officer will advise the taxpayer to file a claim for refund of that excess on TTB Form 5620.8. Sections 46.136 through 46.138 apply to all claims for refund.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6402, 6511)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="150" NODE="27:2.0.1.1.5.4.150" TYPE="SUBJGRP">
<HEAD>Abatement or Refund of Special Taxes</HEAD>


<DIV8 N="§ 46.136" NODE="27:2.0.1.1.5.4.150.24" TYPE="SECTION">
<HEAD>§ 46.136   Claims.</HEAD>
<P>Claims for abatement of assessment of special tax (including penalties and interest), or for refund of an overpayment of special tax (including interest and penalties), must be filed on TTB Form 5620.8. The claim must be filed with the appropriate TTB officer. Each claim must set forth in detail each ground on which it is based and must contain facts sufficient to explain to the appropriate TTB officer the exact basis for the claim. If the claim is for refund of special tax for which a stamp was issued, either the stamp must be attached to and be made a part of the claim, or the claimant must include in the claim a satisfactory explanation of the reason why the stamp cannot be submitted.


</P>
</DIV8>


<DIV8 N="§ 46.137" NODE="27:2.0.1.1.5.4.150.25" TYPE="SECTION">
<HEAD>§ 46.137   Time limit on filing of claim for refund.</HEAD>
<P>No claim for the refund of a special tax or penalty will be allowed unless presented within 3 years after the filing of the related tax return or within 2 years after the payment of such tax or penalty, whichever of these periods expires later.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6511)


</SECAUTH>
</DIV8>


<DIV8 N="§ 46.138" NODE="27:2.0.1.1.5.4.150.26" TYPE="SECTION">
<HEAD>§ 46.138   Discontinuance of business.</HEAD>
<P>A dealer who for any reason discontinues business is not entitled to a refund of special tax for the unexpired portion of the tax year for which the special tax stamp was issued.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5732)


</SECAUTH>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:2.0.1.1.5.5" TYPE="SUBPART">
<HEAD>Subparts E-F [Reserved]</HEAD>

</DIV6>


<DIV6 N="G" NODE="27:2.0.1.1.5.6" TYPE="SUBPART">
<HEAD>Subpart G—Dealers in Tobacco Products</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. 6573, 26 FR 8202, Aug. 31, 1961, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.


</PSPACE></SOURCE>

<DIV8 N="§ 46.161" NODE="27:2.0.1.1.5.6.151.1" TYPE="SECTION">
<HEAD>§ 46.161   Scope of subpart.</HEAD>
<P>The regulations in this subpart relate to the purchase, receipt, possession, offering for sale, or sale or other disposition of tobacco products by dealers in such products.
</P>
<CITA TYPE="N">[T.D. 6871, 81 FR 60, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. ATF-232, 51 FR 28092, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 46.162" NODE="27:2.0.1.1.5.6.151.2" TYPE="SECTION">
<HEAD>§ 46.162   Territorial extent.</HEAD>
<P>The provisions of the regulations in this subpart shall apply in the several States of the United States and the District of Columbia.


</P>
</DIV8>


<DIV8 N="§ 46.163" NODE="27:2.0.1.1.5.6.151.3" TYPE="SECTION">
<HEAD>§ 46.163   Meaning of terms.</HEAD>
<P>When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, each of the following terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, words in the singular form shall include the plural, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.46, Delegation of the Administrator's Authorities in 27 CFR Part 46, Miscellaneous Regulations Relating to Tobacco Products and Cigarette Papers and Tubes.
</P>
<P><I>Dealer.</I> Any person who sells, or offers for sale, at wholesale or retail levels, any cigars or cigarettes after removal.
</P>
<P><I>Manufacturer of tobacco products.</I> Any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco but does not include:
</P>
<P>(1) A person who produces tobacco products solely for that person's own consumption or use; or
</P>
<P>(2) A proprietor of a Customs bonded manufacturing warehouse with respect to the operation of such warehouse.
</P>
<P><I>Package.</I> The container in which tobacco products are put up by the manufacturer or the importer and offered for delivery to the consumer.
</P>
<P><I>Person.</I> An individual, partnership, association, company, corporation, estate, or trust.
</P>
<P><I>Removal or remove.</I> The removal of tobacco products from the factory or release from Customs custody, including the smuggling or other unlawful importation of such articles into the United States.
</P>
<P><I>Tobacco Products.</I> Cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<CITA TYPE="N">[T.D. 6573, 26 FR 8202, Aug. 31, 1961, as amended by T.D. 6871, 31 FR 60, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 46.163, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 46.164" NODE="27:2.0.1.1.5.6.151.4" TYPE="SECTION">
<HEAD>§ 46.164   Authority of TTB officers to enter premises.</HEAD>
<P>Any appropriate TTB officer may enter in the daytime any premises where tobacco products are kept or stored, so far as it may be necessary for the purpose of examining such products. When such premises are open at night, any appropriate TTB officer may enter them, while so open, in the performance of his official duties. The owner of such premises, or person having the superintendence of the same, who refuses to admit any appropriate TTB officer or permit him to examine such products shall be liable to the penalties prescribed by law for the offense. Operators of vending machines shall make the tobacco products in their machines available for inspection upon the request of any appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 60, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. ATF-232, 51 FR 28092, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-472, 67 FR 8881, Feb. 27, 2002] 


</CITA>
</DIV8>


<DIV8 N="§ 46.165" NODE="27:2.0.1.1.5.6.151.5" TYPE="SECTION">
<HEAD>§ 46.165   Interference with administration.</HEAD>
<P>Whoever, corruptly or by force or threats of force, endeavors to hinder or obstruct the administration of this subpart, or endeavors to intimidate or impede any appropriate TTB officer acting in his official capacity, or forcibly rescues or attempts to rescue or causes to be rescued any property, after it has been duly seized for forfeiture to the United States in connection with a violation of the internal revenue laws, shall be liable to the penalties prescribed by law.
</P>
<SECAUTH TYPE="N">(68A Stat. 855; 26 U.S.C. 7212)
</SECAUTH>
<CITA TYPE="N">[T.D. 6573, 26 FR 8202, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-472, Feb. 27, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 46.166" NODE="27:2.0.1.1.5.6.151.6" TYPE="SECTION">
<HEAD>§ 46.166   Dealing in tobacco products.</HEAD>
<P>(a) All tobacco products purchased, received, possessed, offered for sale, sold or otherwise disposed of, by any dealer must be in proper packages which bear the mark or notice as prescribed in parts 40 and 41 of this chapter. Tobacco products may be sold, or offered for sale, at retail from such packages, provided the products remain in the packages until removed by the customer or in the presence of the customer. Where a vending machine is used, tobacco products must similarly be vended in proper packages or directly from such packages.
</P>
<P>(b) Tobacco products manufactured in the United States and labeled for exportation under chapter 52 of title 26, U.S.C. may not be sold or held for sale for domestic consumption in the United States unless such articles are removed from their export packaging and repackaged by the original manufacturer into new packaging that does not contain an export label. This applies to articles labeled for export even if the packaging or the appearance of such packaging to the consumer of such articles has been modified or altered by a person other than the original manufacturer so as to remove or conceal or attempt to remove or conceal (including by placement of a sticker over) the export label.
</P>
<P>(c) For penalty and forfeiture provisions applicable to the selling, relanding or receipt of articles which have been labeled or shipped for exportation, see § 41.83 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-465, 66 FR 45618, Aug. 29, 2001, as amended by T.D. TTB-16, 69 FR 52423, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 46.167" NODE="27:2.0.1.1.5.6.151.7" TYPE="SECTION">
<HEAD>§ 46.167   Liability to tax.</HEAD>
<P>Any dealer who, with intent to defraud the United States, possesses tobacco products (a) upon which the tax has not been paid or determined in the manner and at the time prescribed in parts 40 and 41 of this chapter or (b) which, after removal without payment of tax pursuant to section 5704, I.R.C., and regulations issued thereunder, have been diverted from the applicable purpose or use specified in that section or (c) which are not put up in packages prescribed in parts 40 and 41 of this chapter or are put up in packages not bearing the marks and notices prescribed in such regulations shall be liable for a tax equal to the tax on such products.
</P>
<SECAUTH TYPE="N">(72 Stat. 1424; 26 U.S.C. 5751)
</SECAUTH>
<CITA TYPE="N">[T.D. 6871, 31 FR 60, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-232, 51 FR 28092, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-460, 66 FR 390 93, July 27, 2001; T.D. TTB-16, 69 FR 52423, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 46.168" NODE="27:2.0.1.1.5.6.151.8" TYPE="SECTION">
<HEAD>§ 46.168   Liability to penalties and forfeitures.</HEAD>
<P>Any dealer who fails to comply with the provisions of this subpart becomes liable to the civil and criminal penalties, and forfeitures, provided by law.
</P>
<SECAUTH TYPE="N">(72 Stat. 1425, 1426; 26 U.S.C. 5761, 5762, and 5763)






</SECAUTH>
</DIV8>

</DIV6>

</DIV5>

</DIV4>


<DIV4 N="C" NODE="27:2.0.1.2" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER C—FIREARMS


</HEAD>

<DIV5 N="53" NODE="27:2.0.1.2.6" TYPE="PART">
<HEAD>PART 53—MANUFACTURERS EXCISE TAXES—FIREARMS AND AMMUNITION
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 4181, 4182, 4216-4219, 4221-4223, 4225, 6001, 6011, 6020, 6021, 6061, 6071, 6081, 6091, 6101-6104, 6109, 6151, 6155, 6161, 6301-6303, 6311, 6402, 6404, 6416, 7502, 7805.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-308, 56 FR 303, Jan. 3, 1991, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 53 appear by T.D. ATF-447, 66 FR 19088, Apr. 13, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:2.0.1.2.6.1" TYPE="SUBPART">
<HEAD>Subpart A—Introduction</HEAD>


<DIV8 N="§ 53.1" NODE="27:2.0.1.2.6.1.153.1" TYPE="SECTION">
<HEAD>§ 53.1   Introduction.</HEAD>
<P>The regulations in this part (part 53, subchapter C, chapter I, title 27, Code of Federal Regulations) are designated “Manufacturers Excise Taxes—Firearms and Ammunition.” The regulations relate to the tax on the sale of firearms and ammunition imposed by section 4181 of the Internal Revenue Code of 1986, and to certain related administrative provisions of chapter 32, subchapter F, of the Code. Chapter 32, subchapter D of the Code imposes taxes on the sale or use by the manufacturer, producer, or importer of certain recreational equipment specified in that chapter. References in the regulations in this part to the “Internal Revenue Code” or the “Code” are references to the Internal Revenue Code of 1986 (United States Code of 1986), as amended, unless otherwise indicated. References to a section or other provision of law are references to a section or other provision of the Internal Revenue Code of 1986, as amended, unless otherwise indicated.


</P>
</DIV8>


<DIV8 N="§ 53.2" NODE="27:2.0.1.2.6.1.153.2" TYPE="SECTION">
<HEAD>§ 53.2   Attachment of tax.</HEAD>
<P>(a) For purposes of this part, the manufacturers excise tax generally attaches when the title to the article sold passes from the manufacturer to a purchaser.
</P>
<P>(b) When title passes is dependent upon the intention of the parties as gathered from the contract of sale and the attendant circumstances. In the absence of expressed intention, the legal rules of presumption followed in the jurisdiction where the sale is made govern in determining when title passes.
</P>
<P>(c) In the case of a sale on credit, the tax attaches whether or not the purchase price is actually collected.
</P>
<P>(d) Where a consignor (such as a manufacturer) consigns articles to a consignee (such as a dealer), retaining ownership in them until they are disposed of by the consignee, title does not pass, and the tax does not attach until sale by the consignee. Where the relationship between a manufacturer and a dealer is that of principal and agent, title does not pass, and the tax does not attach, until sale by the dealer.
</P>
<P>(e) In the case of a lease, an installment sale, a conditional sale, or a chattel mortgage arrangement or similar arrangement creating a security interest, a proportionate part of the tax attaches to each payment. See section 4217 and §§ 53.103 and 53.104 for a limitation on the amount of tax payable on lease payments.
</P>
<P>(f) In the case of use by the manufacturer, the tax attaches at the time the use begins.


</P>
</DIV8>


<DIV8 N="§ 53.3" NODE="27:2.0.1.2.6.1.153.3" TYPE="SECTION">
<HEAD>§ 53.3   Exemption certificates.</HEAD>
<P>Several provisions of this part, relating to sales exempt from manufacturers excise tax, require the manufacturer to obtain an exemption certificate from the purchaser to substantiate the exempt character of the sale. Any form of exemption certificate will be acceptable if it includes all the information required by the provisions of this part. These certificates are available as preprinted forms, which are available for free download on the TTB website at <I>https://www.ttb.gov/forms,</I> or by request sent via postal mail to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202. The preprinted certificates may be reproduced as needed.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16957, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.2.6.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 53.11" NODE="27:2.0.1.2.6.2.153.1" TYPE="SECTION">
<HEAD>§ 53.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude other things not enumerated which are in the same general class or are otherwise within the scope thereof.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.53, Delegation of the Administrator's Authorities in 27 CFR Part 53, Manufacturers Excise Taxes—Firearms and Ammunition.
</P>
<P><I>Calendar quarter.</I> A period of 3 calendar months ending on March 31, June 30, September 30, or December 31.
</P>
<P><I>Calendar year.</I> The period which begins January 1 and ends on the following December 31.
</P>
<P><I>Chapter 32.</I> For purposes of this part chapter 32 means section 4181, chapter 32, of the Internal Revenue Code of 1986, as amended.
</P>
<P><I>Code.</I> Internal Revenue Code of 1986, as amended.
</P>
<P><I>Electronic fund transfer (EFT).</I> Any transfer of funds effected by a taxpayer's financial institution, either directly or through a correspondent banking relationship, via the Federal Reserve Communications System (FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank.
</P>
<P><I>Exportation.</I> The severance of an article from the mass of things belonging within the United States with the intention of uniting it with the mass of things belonging within some foreign country or within a possession of the United States.
</P>
<P><I>Exporter.</I> The person named as shipper or consignor in the export bill of lading.
</P>
<P><I>Financial institution.</I> A bank or other financial institution, whether or not a member of the Federal Reserve System, which has access to the Federal Reserve Communications Systems (FRCS) or Fedwire. The “FRCS” or “Fedwire” is a communications network that allows Federal Reserve System member financial institutions to effect a transfer of funds for their customers (or other financial institutions) to the Treasury Account at the Federal Reserve Bank.
</P>
<P><I>Firearms.</I> Any portable weapons, such as rifles, carbines, machine guns, shotguns, or fowling pieces, from which a shot, bullet, or other projectile may be discharged by an explosive.
</P>
<P><I>Importer.</I> Any person who brings a taxable article into the United States from a source outside the United States, or who withdraws such an article from a customs bonded warehouse for sale or use in the United States. If the nominal importer of a taxable article is not its beneficial owner (for example, the nominal importer is a customs broker engaged by the beneficial owner), the beneficial owner is the “importer” of the article for purposes of chapter 32 of the Code and is liable for tax on their sale or use of the article in the United States. See section 4219 of the Code and 27 CFR 53.121 for the circumstances under which sales by persons other than the manufacturer or importer are subject to the manufacturers excise tax.
</P>
<P><I>Knockdown condition.</I> A taxable article that is unassembled but complete as to all component parts.
</P>
<P><I>Manufacturer.</I> Includes any person who produces a taxable article from scrap, salvage, or junk material, or from new or raw material, by processing, manipulating, or changing the form of an article or by combining or assembling two or more articles. The term also includes a “producer” and an “importer.” Under certain circumstances, as where a person manufactures or produces a taxable article for another person who furnishes materials under an agreement whereby the person who furnished the materials retains title thereto and to the finished article, the person for whom the taxable article is manufactured or produced, and not the person who actually manufactures or produces it, will be considered the manufacturer.
</P>
<P>A manufacturer who sells a taxable article in a knockdown condition is liable for the tax as a manufacturer. Whether the person who buys such component parts or accessories and assembles a taxable article from them will be liable for tax as a manufacturer of a taxable article will depend on the relative amount of labor, material, and overhead required to assemble the completed article and on whether the article is assembled for business or personal use.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company, or corporation. When used in connection with penalties, seizures, and forfeitures, the term includes an officer or employee of a partnership, who as an officer, employee or member, is under a duty to perform the act in respect of which the violation occurs.
</P>
<P><I>Pistols.</I> Small projectile firearms which have a short one-hand stock or butt at an angle to the line of bore and a short barrel or barrels, and which are designed, made, and intended to be aimed and fired from one hand. The term does not include gadget devices, guns altered or converted to resemble pistols, or small portable guns erroneously referred to as pistols, as, for example, Nazi belt buckle pistols, glove pistols, or one-hand stock guns firing fixed shotgun or fixed rifle ammunition.
</P>
<P><I>Possession of the United States.</I> Includes Guam, the Midway Islands, Palmyra, the Panama Canal Zone, the Commonwealth of Puerto Rico, American Samoa, the Virgin Islands, and Wake Island.
</P>
<P><I>Purchaser.</I> Includes a lessee where the lessor is also the manufacturer of the article.
</P>
<P><I>Revolvers.</I> Small projectile firearms of the pistol type, having a breech-loading chambered cylinder so arranged that the cocking of the hammer or movement of the trigger rotates it and brings the next cartridge in line with the barrel for firing.
</P>
<P><I>Sale.</I> An agreement whereby the seller transfers the property (that is, the title or the substantial incidents of ownership in goods) to the buyer for a consideration called the price, which may consist of money, services, or other things.
</P>
<P><I>Secretary of the Treasury</I> or <I>Secretary.</I> The Secretary of the Treasury or a delegate of the Secretary.
</P>
<P><I>Shells and cartridges.</I> Include any article consisting of a projectile, explosive, and container that is designed, assembled, and ready for use without further manufacture in firearms, pistols or revolvers. A person who reloads used shell or cartridge casings is a manufacturer of shells or cartridges within the meaning of section 4181 if such reloaded shells or cartridges are sold by the reloader. However, the reloader is not a manufacturer of shells or cartridges if, in return for a fee and expenses, he reloads casings of shells or cartridges submitted by a customer and returns the reloaded shells or cartridges with the identical casings provided by the customer to that customer. Under such circumstances, the customer would be the manufacturer of the shells or cartridges and may be liable for tax on the sale of articles. See section 4218 of the Code and § 53.112.
</P>
<P><I>Taxable article.</I> Any article taxable under section 4181 of the Code.
</P>
<P><I>Treasury Account.</I> The Department of Treasury's General Account at the Federal Reserve Bank of New York.
</P>
<P><I>Vendor.</I> Includes a lessor where the lessor is also the manufacturer of the article.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. ATF-330, 57 FR 40325, Sept. 3, 1992; T.D. ATF-365, 60 FR 33670, June 28, 1995; T.D. ATF-404, 63 FR 52603, Oct. 1, 1998; T.D. ATF-447, 66 FR 19088, Apr. 13, 2001; T.D. TTB-44, 71 FR 16957, Apr. 4, 2006; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.2.6.3" TYPE="SUBPART">
<HEAD>Subpart C—Administrative and Miscellaneous Provisions</HEAD>


<DIV8 N="§ 53.20" NODE="27:2.0.1.2.6.3.153.1" TYPE="SECTION">
<HEAD>§ 53.20   Delegations of the Administrator.</HEAD>
<P>The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.53, Delegation of the Administrator's Authorities in 27 CFR Part 53, Manufacturers Excise Taxes—Firearms and Ammunition. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16957, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 53.21" NODE="27:2.0.1.2.6.3.153.2" TYPE="SECTION">
<HEAD>§ 53.21   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions on the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<P>(c) <I>Signature authorization.</I> An individual's signature on a return, statement, or other document made by or for a corporation or a partnership shall be prima facie evidence that the individual is authorized to sign the return, statement, or other document.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991. Redesignated in part by T.D. ATF-365, 60 FR 33670, June 28, 1995, as amended by T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-447, 66 FR 19088, Apr. 13, 2001; T.D. TTB-44, 71 FR 16957, Apr. 4, 2006; T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 53.22" NODE="27:2.0.1.2.6.3.153.3" TYPE="SECTION">
<HEAD>§ 53.22   Employer identification number.</HEAD>
<P>(a) <I>Requirement of application.</I> (1) Except for one-time or occasional filers, every person who makes a sale or use of an article with respect to which a tax is imposed by section 4181 of the Code, and who has not earlier been assigned an employer identification number or has not applied for one, shall make an application on Form SS-4 for an employer identification number. The application and any supplementary statement accompanying it shall be prepared in accordance with the applicable form, instructions, and regulations and shall set forth fully and clearly the data therein called for. Form SS-4 may be obtained from any internal revenue district office or internal revenue service center. The application shall be filed with the internal revenue officer designated in the instructions applicable to Form SS-4. The application shall be signed by:
</P>
<P>(i) The individual if the person is an individual;
</P>
<P>(ii) The president, vice-president, or other principal officer, if the person is a corporation;
</P>
<P>(iii) A responsible and duly authorized member or officer having knowledge of its affairs, if the person is a partnership or other unincorporated organization; or
</P>
<P>(iv) The fiduciary, if the person is a trust or estate.
</P>
<P>An employer identification number will be assigned to the person in due course upon the basis of information reported on the application required under this section.
</P>
<P>(2) <I>Time for filing Form SS-4.</I> The application for an employer identification number shall be filed no later than the seventh day after the date of the first sale or use of an article with respect to which a tax is imposed by chapter 32 of the Code. However, the application should be filed far enough in advance of the first required use of such number to permit issuance of the number in time for compliance with such requirement.
</P>
<P>(3) <I>One-time or occasional filers.</I> A person who files a return under the provisions of section 53.151(a)(5) is not required to make application for an employer identification number. Such persons may use their social security number on any return, statement or other document submitted to TTB by that person in lieu of an employer identification number.
</P>
<P>(b) <I>Use of employer identification number.</I> The employer identification number assigned to a person liable for a tax imposed by chapter 32 of the Code shall be shown on any return, statement, or other document submitted to TTB by the person.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-365, 60 FR 33670, June 28, 1995; T.D. ATF-447, 66 FR 19088, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 53.23" NODE="27:2.0.1.2.6.3.153.4" TYPE="SECTION">
<HEAD>§ 53.23   Alternate methods or procedures.</HEAD>
<P>(a) A taxpayer, on specific approval by the appropriate TTB officer as provided in this section, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. The appropriate TTB officer may approve an alternate method or procedure, subject to stated conditions, when—
</P>
<P>(1) Good cause has been shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue; and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law and will not result in an increase in cost to the Government or hinder the effective administration of this part. No alternate method or procedure relating to the assessment, payment, or collection of tax shall be authorized under this paragraph.
</P>
<P>(b) Where the taxpayer desires to employ an alternate method or procedure, a written application to do so must be submitted. The application must specifically describe the proposed alternate method or procedure and must set forth the reasons therefor. Alternate methods or procedures must not be employed until the appropriate TTB officer has approved the application. The taxpayer must, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization for any alternate method or procedure may be withdrawn whenever, in the judgment of the appropriate TTB officer, the revenue is jeopardized or the effective administration of this part is hindered by the continuation of such authorization.
</P>
<CITA TYPE="N">[T.D. ATF-365, 60 FR 33670, June 28, 1995, as amended by T.D. ATF-447, 66 FR 19088, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 53.24" NODE="27:2.0.1.2.6.3.153.5" TYPE="SECTION">
<HEAD>§ 53.24   Records.</HEAD>
<P>(a) <I>In general</I>—(1) <I>Form of records.</I> The records required by the regulations in this part shall be kept accurately, but no particular form is required for keeping the records. Such forms and systems of accounting shall be used as will enable appropriate TTB officers to ascertain whether liability for tax is incurred and, if so, the amount thereof.
</P>
<P>(2) [Reserved]
</P>
<P>(b) <I>Copies of returns, schedules, and statements.</I> Every person who is required, by the regulations in this part or by instructions applicable to any form prescribed thereunder, to keep any copy of any return, schedule, statement, or other document, shall keep such copy as a part of the records.
</P>
<P>(c) <I>Records of claimants.</I> Any person who, pursuant to the regulations in this part, claims a refund, credit, or abatement, shall keep a complete and detailed record with respect to the tax, interest, addition to the tax, additional amount, or assessable penalty to which the claim relates. Such record shall include any records required of the claimant by paragraph (b) of this section and subpart L of this part.
</P>
<P>(d) <I>Place and period for keeping records.</I> (1) All records required by this part shall be prepared and kept by the person required to keep them, at one or more convenient and safe locations accessible to appropriate TTB officers, and shall at all times be immediately available for inspection by such officers.
</P>
<P>(2) Except as otherwise provided in this subparagraph, every person required by the regulations in this part to keep records in respect of a tax shall maintain such records for at least three years after the due date of such tax for the return period to which the records relate, or the date such tax is paid, whichever is later. The records of claimants required by paragraph (c) of this section shall be maintained for a period of at least three years after the date the claim is filed.
</P>
<P>(e) <I>Reproduction of original records.</I> (1) General books of account, such as cash books, journals, voucher registers, ledgers, etc., shall be maintained and preserved in their original form. However, reproductions of supporting records of details, such as invoices, vouchers, production reports, sales records, certificates, proofs of exportation, etc., may be kept in lieu of the original records. Any process may be used which accurately and timely reproduces the original record, and which forms a durable medium for reproducing and preserving the original record.
</P>
<P>(2) <I>Copies of records treated as original records.</I> Whenever records are reproduced under this section, the reproduced records shall be preserved in conveniently accessible files, and provisions shall be made for examining, viewing, and using the reproduced records the same as if they were the original record. Such reproduced records shall be treated and considered for all purposes as though they were the original record. All provisions of law and regulations applicable to the original record are applicable to the reproduced record.
</P>
<CITA TYPE="N">[T.D. ATF-365, 60 FR 33670, June 28, 1995, as amended by T.D. ATF-447, 66 FR 19088, Apr. 13, 2001]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.2.6.4" TYPE="SUBPART">
<HEAD>Subparts D-F [Reserved]</HEAD>

</DIV6>


<DIV6 N="G" NODE="27:2.0.1.2.6.5" TYPE="SUBPART">
<HEAD>Subpart G—Tax Rates</HEAD>


<DIV8 N="§ 53.61" NODE="27:2.0.1.2.6.5.153.1" TYPE="SECTION">
<HEAD>§ 53.61   Imposition and rates of tax.</HEAD>
<P>(a) <I>Imposition of tax.</I> Section 4181 of the Code imposes a tax on the sale of the following articles by the manufacturer, producer, or importer thereof:
</P>
<P>(1) Pistols;
</P>
<P>(2) Revolvers;
</P>
<P>(3) Firearms (other than pistols and revolvers); and
</P>
<P>(4) Shells and cartridges.
</P>
<P>(b) <I>Parts or accessories</I>—(1) <I>In general.</I> No tax is imposed by section 4181 of the Code on the sale of parts or accessories of firearms, pistols, revolvers, shells, and cartridges when sold separately or when sold with a complete firearm for use as spare parts or accessories. The tax does attach, however, to sales of completed firearms, pistols, revolvers, shells, and cartridges, and to sale of such articles that, although in knockdown condition, are complete as to all component parts.
</P>
<P>(2) <I>Component parts.</I> Component parts are items that would ordinarily be attached to a firearm during use and, in the ordinary course of trade, are packaged with the firearm at the time of sale by the manufacturer or importer. All component parts for firearms are includible in the price for which the article is sold.
</P>
<P>(3) <I>Nontaxable parts.</I> Parts sold with firearms that duplicate component parts that are not includible in the price for which the article is sold.
</P>
<P>(4) <I>Nontaxable accessories.</I> Items that are not designed to be attached to a firearm during use or that are not, in the ordinary course of trade, provided with the firearm at the time of the sale by the manufacturer or importer are not includible in the price for which the article is sold.
</P>
<P>(5) <I>Examples</I>—(i) <I>In general.</I> The following examples are provided as guidelines and are not meant to be all inclusive.
</P>
<P>(ii) <I>Component parts.</I> Component parts include items such as a frame or receiver, breech mechanism, trigger mechanism, barrel, buttstock, forestock, handguard, grips, buttplate, fore end cap, trigger guard, sight or set of sights (iron or optical), sight mount or set of sight mounts, a choke, a flash hider, a muzzle brake, a magazine, a set of sling swivels, and/or an attachable ramrod for muzzle loading firearms when provided by the manufacturer or importer for use with the firearm in the ordinary course of commercial trade. Component parts also include any part provided with the firearm that would affect the tax status of the firearm, such as an attachable shoulder stock.
</P>
<P>(iii) <I>Nontaxable parts.</I> Nontaxable parts include items such as extra barrels, extra sights, optical sights and mounts (in addition to iron sights), spare magazines, spare cylinders, extra choke tubes, and spare pins.
</P>
<P>(iv) <I>Nontaxable accessories.</I> Nontaxable accessories include items such as cleaning equipment, slings, slip on recoil pads (in addition to standard buttplate), tools, gun cases for storage or transportation, separate items such as knives, belt buckles, or medallions. Nontaxable accessories also include optional items purchased by the customer at the time of retail sale that do not change the tax classification of the firearm, such as telescopic sights and mounts, recoil pads, slings, sling swivels, chokes, and flash hiders/muzzle brakes of a type not provided by the manufacturer or importer of the firearm in the ordinary course of commercial trade.
</P>
<P>(c) <I>Rates of tax.</I> Tax is imposed on the sale of the articles specified in section 4181 of the Code at the rates indicated below.
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col"> 
</TH><TH class="gpotbl_colhed" scope="col">Percent
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(1) Pistols</TD><TD align="right" class="gpotbl_cell">10
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(2) Revolvers</TD><TD align="right" class="gpotbl_cell">10
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(3) Firearms (other than pistols and revolvers)</TD><TD align="right" class="gpotbl_cell">11
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">(4) Shells and cartridges</TD><TD align="right" class="gpotbl_cell">11</TD></TR></TABLE></DIV></DIV>
<P>(d) <I>Computation of tax.</I> The tax is computed by applying to the price for which the article is sold the applicable rate. For definition of the term “price” see section 4216 of the Code and the regulations contained in subpart J of this part.
</P>
<P>(e) <I>Liability for tax.</I> The tax imposed by section 4181 of the Code is payable by the manufacturer, producer, or importer making the sale.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-404, 63 FR 52603, Oct. 1, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 53.62" NODE="27:2.0.1.2.6.5.153.2" TYPE="SECTION">
<HEAD>§ 53.62   Exemptions.</HEAD>
<P>(a) <I>Firearms subject to the National Firearms Act.</I> Section 4182(a) provides that the tax imposed by section 4181 of the Code shall not attach to the sale of any firearms on which the tax imposed by section 5811 of the Code (relating to tax on the transfer of machine guns, short-barreled firearms, and other weapons) has been paid. Any manufacturer, producer, or importer claiming such an exemption from the tax imposed by section 4181 of the Code must maintain such records and be prepared to produce such evidence as will establish the right to the exemption.
</P>
<P>(b) <I>Sales to Defense Department or to U.S. Coast Guard</I>—(1) <I>Military department.</I> Section 4182(b) of the Code provides that the tax imposed by section 4181 of the Code shall not attach to the sale of firearms, pistols, revolvers, shells, or cartridges that are purchased with funds appropriated for a military department of the United States. For this purpose, the term “military department” means the Department of the Army, the Department of the Navy, and Department of the Air Force. Included in the Department of the Navy are naval aviation and the Marine Corps.
</P>
<P>(2) <I>Coast Guard.</I> Section 655, title 14, U.S.C., provides that no tax on the sale or transfer of firearms, pistols, revolvers, shells, or cartridges may be imposed on such articles when bought with funds appropriated for the United States Coast Guard.
</P>
<P>(3) <I>Supporting evidence.</I> Any manufacturer, producer, or importer claiming an exemption from the tax imposed by section 4181 of the Code by reason of section 4182(b) and section 655, title 14 of the Code must maintain such records and be prepared to produce such evidence as will establish the right to the exemption. Generally, clearly identified orders or contracts of a military department signed by an authorized officer of the military department will be sufficient to establish the right to the exemption. In the absence of such orders or contracts, a statement, signed by an authorized officer of a military department or the Coast Guard, that the prescribed articles were purchased with funds appropriated for that military department or the Coast Guard will constitute satisfactory evidence of the right to an exemption.
</P>
<P>(c) <I>Small manufacturers, producers, and importers</I>—(1) <I>Exemption.</I> Section 4182(c) of the Code provides that the tax imposed by section 4181 of the Code shall not attach to any pistol, revolver, or firearm manufactured, produced, or imported by a person who manufactures, produces, and imports less than an aggregate of 50 of those articles during the calendar year, regardless of when the articles are sold.
</P>
<P>(2) <I>Controlled groups.</I> All persons treated as a single employer for purposes of subsection (a) or (b) of section 52 of the Code are treated as one person for purposes of paragraph (c)(1) of this section.
</P>
<P>(3) <I>Applicability.</I> The exemption described in paragraph (c)(1) of this section applies to articles sold by the manufacturer, producer, or importer after September 30, 2005. Application of this exemption is based on the calendar year in which the manufacture, production, or importation of the articles in question took place and does not depend on when the sale occurs. In addition, each calendar year stands alone for purposes of applying the exemption.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. TTB-62, 72 FR 51711, Sept. 11, 2007]


</CITA>
</DIV8>


<DIV8 N="§ 53.63" NODE="27:2.0.1.2.6.5.153.3" TYPE="SECTION">
<HEAD>§ 53.63   Other tax-free sales.</HEAD>
<P>For provisions relating to tax-free sales of firearms and ammunition see:
</P>
<P>(a) Section 4221 and 27 CFR 53.131, “Tax-free sales; general rule”.
</P>
<P>(b) Section 4223 and 27 CFR 53.132, “Tax-free sale of articles to be used for, or resold for, further manufacture”.
</P>
<P>(c) Section 4222 and 27 CFR 53.140, “Registration”.


</P>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:2.0.1.2.6.6" TYPE="SUBPART">
<HEAD>Subparts H-I [Reserved]</HEAD>

</DIV6>


<DIV6 N="J" NODE="27:2.0.1.2.6.7" TYPE="SUBPART">
<HEAD>Subpart J—Special Provisions Applicable to Manufacturers Taxes</HEAD>


<DIV8 N="§ 53.91" NODE="27:2.0.1.2.6.7.153.1" TYPE="SECTION">
<HEAD>§ 53.91   Charges to be included in sale price.</HEAD>
<P>(a) <I>In general.</I> The “price” for which an article is sold includes the total consideration paid for the article, whether that consideration is in the form of money, services, or other things. However, for purposes of the taxes imposed under chapter 32 of the Code, certain collateral charges made in connection with the sale of a taxable article must be included in the taxable sale price, whereas others may be excluded. Any charge which is required by a manufacturer, producer, or importer to be paid as a condition of its sale of a taxable article and which is not attributable to an expense falling within one of the exclusions provided in section 4216 of the Code or the regulations thereunder is includable in the taxable sale price. It is immaterial for this purpose that the charge may be paid to a person other than the manufacturer, producer, or importer, or that it may be separately billed to the purchaser as a charge earmarked for expenses incurred or to be incurred in his behalf, such as charges for demonstration or display of the article, for sales promotion programs, or otherwise. With respect to the rules relating to exclusion of charges for local advertising of a manufacturer's products, see section 4216(e) of the Code and § 53.100. In the case of sales on credit, a carrying, finance, or service charge is excludable from the sale price if it is reasonably related to the costs of carrying the deferred portion of the sale price (such as interest on the deferred portion of the sale price, expenses of bookkeeping necessary to keep the records of such sales, and expenses of correspondence and other communication in connection with collection).
</P>
<P>(b) <I>Tools and dies.</I> Separate charges for tools and dies used in the manufacture or production of a taxable article are to be included, in whole or in part, in the sale price on which the tax is based. It is immaterial whether the charges for such items are billed in a lump sum or are amortized or allocated to each of the taxable articles. If, at the termination of a contract to manufacture taxable articles, the tools and dies used in production pass to the purchaser, only the amount of depreciation of the tools and dies incurred in production, computed on a “production output” basis, should be included in the sale price. If the purchaser furnishes the tools and dies, the amount of the cost thereof, to the extent that such cost has been depreciated in the production of the taxable articles (computed on a “production output” basis), shall be included in determining the sale price of the articles for purposes of computing the tax.
</P>
<P>(c) <I>Charges for warranty.</I> A charge for a warranty of an article which the manufacturer, producer, or importer requires the purchaser to pay in order to obtain the article shall be included in the sale price of the article on which the tax is computed. On the other hand, a charge for a warranty of a taxable article paid at the purchaser's option shall not be included in the sale price for purposes of computing tax thereon.
</P>
<P>(d) <I>Charges for coverings, containers, and packing.</I> Any charge by the manufacturer, producer, or importer for coverings and containers of whatever nature used to pack an article for shipment shall be included as part of the sale price for the purpose of computing the tax, whether or not the charges are identified as such on the invoice or are billed separately. Even though there is an agreement that the manufacturer, producer, or importer will repay all or a portion of the charge for the coverings or containers upon the return thereof, the full charge nevertheless shall be included in the sale price. It is immaterial whether the charge made at the time of sale is more or less than the actual value of the covering or container. See § 53.173(b)(4) for provisions relating to the claiming of a credit or refund in the case of a price readjustment due to the return or repossession of a covering or container. Packing charges are to be included in the sale price whether the charges cover normal packing or special packing services, such as for extra protection of the article or for odd-lot quantities. This rule shall apply whether the packing services are initiated by the manufacturer, producer, or importer or are furnished at the request of the purchaser and whether the packing is performed by the manufacturer, producer, or importer or by another person at his request. If the purchaser supplies packing materials, the fair market value of such materials must be included in the tax base when computing tax liability on the sale of the article.
</P>
<P>(e) <I>Taxable and nontaxable articles sold as a unit.</I> Where a taxable article and a nontaxable article are sold by the manufacturer as a unit, the tax attaches to that portion of the manufacturer's sale price of the unit which is properly allocable to the taxable article. Normally, the taxable portion of such a unit may be determined by applying to the manufacturer's sale price of the unit the ratio which the manufacturer's separate sale price of the taxable article bears to the sum of the sale prices of both the taxable and nontaxable articles, if such articles are sold separately by the manufacturer. Where the articles (or either one of them) are not sold separately by the manufacturer and do not have established sale prices, the taxable portion is to be determined from a comparison of the actual costs of the articles to the manufacturer. Thus, if the cost of the taxable article represents four-fifths of the total cost of the complete unit, the tax applies to four-fifths of the price charged by the manufacturer for the unit.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.92" NODE="27:2.0.1.2.6.7.153.2" TYPE="SECTION">
<HEAD>§ 53.92   Exclusions from sale price.</HEAD>
<P>(a) <I>Tax</I>—(1) <I>Tax not part of taxable sale price.</I> The tax imposed by chapter 32 of the Code on the sale of an article is not part of the taxable sale price of the article. Thus, if a manufacturer computes the tax on a sale price which is determined without regard to the tax, and it charges the proper tax as a separate item, the amount of tax so charged does not become a part of the taxable sale price and no tax is due on the tax so charged. Where no separate charge is made as tax, it will be presumed that the price charged to the purchaser for the article includes the proper tax, and the proper percentage of such price will be allocated to the tax.
</P>
<P>(2) <I>Computation of tax.</I> If an article subject to tax at the rate of 10 percent is sold for $100 and an additional item of $10 is billed as tax, $100 is the taxable selling price and $10 is the amount of tax due thereon. However, if the article is sold for $100 with no separate billing or indication of the amount of the tax, it will be presumed that the tax is included in the $100, and a computation will be necessary to determine what portion of the total amount represents the sale price of the article and what portion represents the tax. The computation is as follows:
</P>
<MATH BORDER="NODRAW" DEEP="30" HTYPE="CENTER" POSITION="NOFLOAT" ROTATION="P" SPAN="2" STRIP="YES">
<img src="/graphics/er25se06.035.gif"/></MATH>
<FP>Thus, if the tax rate is 10 percent and the sale price including tax is $100, the taxable sale price is $90.91 (that is, $100 divided by (100+10)), and the tax is 10 percent of $90.91, or $9.09.
</FP>
<P>(b) <I>Transportation, delivery, insurance, or installation charges</I>—(1) <I>Charges incurred pursuant to sale.</I> Charges for transportation, delivery, insurance, installation, and other expenses actually incurred in connection with the delivery of an article to a purchaser pursuant to a bona fide sale shall be excluded from the sale price in computing the tax. Such charges include all items of transportation, delivery, insurance, installation, and similar expense incurred after shipment to a customer begins, in response to the customer's order, pursuant to a bona fide sale. However, costs of such nature incurred by a manufacturer, producer, or importer in transporting, in the normal course of business and for its benefit and convenience, articles from a factory or port of entry to a warehouse or other facility (regardless of the location of such warehouse or facility) are not considered as being incurred in connection with the delivery of an article to a purchaser pursuant to a bona fide sale, and charges therefor cannot be excluded from the sale price in computing tax liability. Similarly, an allowance granted by a manufacturer as reimbursement for expenses incurred by the purchaser in shipping used articles to the manufacturer for credit against the purchase price of taxable articles shall not be excluded from the sale price when computing tax due on the sale of the taxable articles. In any event, no charge may be excluded from the sale price unless the conditions set forth in paragraph (b)(2) of this section are complied with. Said conditions are prescribed under the authority granted the Secretary in section 4216(a) of the Code.
</P>
<P>(2) <I>Only actual expenses to be excluded.</I> Where a separate charge is made for transportation or other expenses incurred in connection with the delivery of an article to the purchaser pursuant to a bona fide sale, there shall be excluded in arriving at the sale price subject to tax only that portion of the charge which represents the actual expenses incurred for the transportation or other excludable expenses. Where a separate charge is less than the actual expense, the difference is presumed to be included in the billed price. Such difference, together with the separate charge, shall be excluded in arriving at the sale price on which the tax is computed. Similarly, where no separate charge is made but the manufacturer, producer, or importer incurs an expense of the type to which this paragraph has application, the amount of such expense actually incurred shall be excluded from the sale price on which the tax is computed. Where transportation expense is incurred in conjunction with a shipment composed of both taxable and nontaxable articles, only the portion of the expense allocable to the taxable articles shall be excludable. In general, unless the taxpayer establishes to the satisfaction of the appropriate TTB officer that another method reasonably apportions such freight expense between taxable and nontaxable articles, such expense should be apportioned on the basis of the relative weights (or, if available, the relative published tariff rates) applicable to the taxable and nontaxable articles. Where it is not feasible to apportion such expense on the basis of relative weights or tariff rates, the expense shall be apportioned on another reasonable basis; for example, in the case of a shipment including both taxable and nontaxable articles which are subject to the same tariff rate, it may be appropriate to apportion the transportation expense on the basis of the relative sale prices. A charge for insurance in connection with the delivery of an article to a purchaser is considered to represent an expense actually incurred only to the extent that an amount equivalent to such charge is paid or payable by the manufacturer to a person authorized to assume such insurance risk.
</P>
<P>(3) <I>Transportation, delivery, or installation services performed by manufacturer.</I> For purposes of computing the taxable sale price of articles, it is immaterial whether the transportation, delivery, or other services of the type to which this paragraph has application are performed by a common carrier or independent agency for or on behalf of the manufacturer, producer, or importer, or are performed by the manufacturer, producer, or importer with the use of its own vehicles or other facilities. Thus, where a manufacturer, producer, or importer performs the transportation, delivery, or other services with its equipment, tools, employees, etc., the cost of such services allocable to the sale of the taxable article shall be excluded. In determining whether an expense is an excludable transportation or delivery expense, only those expenses incurred by reason of the fact that the purchaser accepts delivery at some point other than the manufacturer's place of business shall be considered excludable transportation or delivery expenses. All expenses incurred in placing an article packed, ready for shipment on the loading dock at the manufacturer's factory are not excludable transportation or delivery expenses. An allowance granted by the manufacturer, producer, or importer to the purchaser for transportation, delivery, or other expenses incurred or to be incurred by the purchaser in connection with the sale shall be excluded in computing the taxable sale price, if charges for similar expenses would be excludable if incurred by the manufacturer.
</P>
<P>(4) <I>Records in support of exclusion.</I> Every manufacturer, producer, or importer making sales of taxable articles shall keep records which will disclose the amount of transportation, delivery, insurance, installation or other expense actually incurred by it in connection with the delivery of a taxable article to a purchaser pursuant to a bona fide sale.
</P>
<P>(c) <I>Other charges.</I> A charge or expense not within the scope of paragraph (a) or (b) of this section, whether or not separately stated, may not be excluded in computing the taxable sale price unless it can be shown by adequate records that the charge or expense is not properly included as a manufacturing or selling expense or is in no way incidental to placing the article in condition packed ready for shipment. Commissions to manufacturers' agents, or allowances, payments, or adjustments made to, and for the benefit of, persons other than the purchaser may not be excluded or deducted, under any condition, in computing the sale price upon which the tax is computed.


</P>
</DIV8>


<DIV8 N="§ 53.93" NODE="27:2.0.1.2.6.7.153.3" TYPE="SECTION">
<HEAD>§ 53.93   Other items relating to tax on sale price.</HEAD>
<P>(a) <I>Exchanges.</I> If, in connection with the sale of an article subject to a tax imposed under chapter 32 of the Code on the price for which sold, a manufacturer receives from its vendee another article in exchange, the tax on the manufacturer's sale shall be computed on the basis of the amount allowed for the article received from the vendee, plus any additional amount charged the vendee.
</P>
<P>(b) <I>Replacements under warranty.</I> If an article, subject to a tax imposed under chapter 32 of the Code on the price for which sold, is returned to the manufacturer by reason of the failure of the article under a warranty as to its quality or service, and a new article is given by the manufacturer, free, or at a reduced price, the tax on the new article shall be computed on the actual amount, if any, to be paid to the manufacturer for the new article. See § 53.174(b) for the circumstances under which the allowance made by the manufacturer, producer, or importer upon the return of the first article constitutes a price readjustment of the sale price of the first article and the extent, if any, to which a credit may be allowed, or refund made, of the tax paid by the manufacturer, producer, or importer on the sale of the first article.
</P>
<P>(c) <I>Readjustments in sale price.</I> Readjustment in sale price (such as allowable discounts, rebates, bonuses, etc.) cannot be anticipated. The tax must be based upon the original price unless the readjustments have actually been made prior to the close of the period for which the tax upon the sale is returned. However, if the price upon which the tax was computed is subsequently readjusted, credit may be taken against the tax due on a subsequent return or a claim for refund filed as provided by section 6416(b)(1) of the Code and §§ 53.174-53.176.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-344, 58 FR 40354, July 28, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 53.94" NODE="27:2.0.1.2.6.7.153.4" TYPE="SECTION">
<HEAD>§ 53.94   Constructive sale price; scope and application.</HEAD>
<P>(a) <I>In general.</I> Section 4216(b) of the Code pertains to those taxes imposed under chapter 32 of the Code that are based on the price for which an article is sold, and contains the provisions for constructing a tax base other than the actual sale price of the article, under certain defined conditions.
</P>
<P>(b) <I>Specific applications.</I> (1) Section 4216(b)(1) of the Code applies to:
</P>
<P>(i) Arm's-length sales at retail or on consignment, other than those sales at retail and to retailers to which section 4216(b)(2) of the Code and § 53.96 apply; and
</P>
<P>(ii) Sales otherwise than at arm's length, and at less than fair market price.
</P>
<P>(2) Section 4216(b)(2) of the Code applies generally to arm's-length sales of an article at retail or to retailers, or both, where the manufacturer also sells the same article to wholesale distributors.
</P>
<P>(3) Section 4216(b)(3) of the Code provides a formula for determining a constructive sale price for sales of taxable articles between members of an affiliated group of corporations (as “affiliated group” is defined in section 1504(a) of the Code) in those instances where the purchasing corporation regularly resells to retailers but does not regularly resell to wholesale distributors, and except for situations where section 4216(b)(4) of the Code applies.
</P>
<P>(4) Section 4216(b)(4) of the Code provides a special method for computing a constructive sale price for sales of taxable articles between affiliated corporations where the purchasing corporation sells only to retailers, and the normal method of selling within the industry is for manufacturers to sell to wholesale distributors.
</P>
<P>(c) <I>Definitions.</I> For purposes of section 4216(b) of the Code and §§ 53.94-53.97 and unless otherwise indicated:
</P>
<P>(1) <I>Sale at retail.</I> A “sale at retail,” or a “retail sale”, is a sale of an article to a purchaser who intends to use or lease the article rather than resell it. The fact that articles are sold in wholesale lots, or at wholesale prices, will not change the character of such sales as “sales at retail” if the purchaser is not engaged in the business of reselling such articles, and acquires them for the purpose of using them rather than reselling them.
</P>
<P>(2) <I>Retail dealers.</I> A “retail dealer”, or “retailer”, is a person engaged in the business of selling articles at retail.
</P>
<P>(3) <I>Wholesale distributor.</I> The term “wholesale distributor” means a person engaged in the business of selling articles to persons engaged in the business of reselling such articles.


</P>
</DIV8>


<DIV8 N="§ 53.95" NODE="27:2.0.1.2.6.7.153.5" TYPE="SECTION">
<HEAD>§ 53.95   Constructive sale price; basic rules.</HEAD>
<P>(a) <I>In general.</I> Section 4216(b)(1) of the Code sets forth the conditions that require the Secretary to construct a sale price on which to compute a tax imposed under chapter 32 of the Code on the price for which an article is sold. The section requires a constructive sale price to be established where a taxable article is:
</P>
<P>(1) Sold at retail;
</P>
<P>(2) Sold while on consignment; or,
</P>
<P>(3) Sold otherwise than through an arm's-length transaction at less than fair market price.
</P>
<P>(b) <I>Sales at retail.</I> Section 4216(b)(1)(A) of the Code relates to the determination of a constructive sale price for sales of taxable articles sold at arm's-length and at retail. In the case of such sales, the constructive sale price is the highest price for which such articles are sold to wholesale distributors, in the ordinary course of trade, by manufacturers or producers thereof, as determined by the Secretary. If the constructive sale price is less than the actual sale price, the constructive sale price shall be used as the tax base. If the constructive sale price is not less than the actual sale price, the actual sale price shall be considered as not less than fair market, and shall be used as the tax base. In determining the highest price for which articles are sold by manufacturers to wholesale distributors, there must be taken into consideration the normal industry practices with respect to inclusions and exclusions under section 4216(a) of the Code. However, once a constructive sale price has been determined by the Secretary, no further adjustment of such price shall be made. The provisions of section 4216(b)(1)(A) of the Code and this paragraph shall not apply in those instances where the provisions of section 4216(b)(2) of the Code and § 53.96 apply.
</P>
<P>(c) <I>Sales on consignment.</I> As in the case of sales at retail, the constructive sale price for sales on consignment shall be the price for which such articles are sold, in the ordinary course for trade, by manufacturers or producers thereof, as determined by the Secretary. For purposes of section 4216(b)(1)(B) of the Code and this paragraph, an article is considered to be sold on consignment if it is sold while it is on consignment to a person which has the right to sell, and does sell, such article in its own name, but never receives title to the article from the manufacturer. Ordinarily, the constructive sale price of an article sold on consignment is the net price received by the manufacturer from the consignee. The provisions of section 4216(b)(1)(B) of the Code and this paragraph shall not apply if the provisions of section 4216(b)(2) of the Code and § 53.96 apply.
</P>
<P>(d) <I>Sales not at arm's-length.</I> For purposes of section 4216(b)(1)(C) of the Code and this paragraph, a sale is considered to be made under circumstances otherwise than at “arm's-length” if:
</P>
<P>(1) One of the parties is controlled (in law or in fact) by the other, or there is common control, whether or not such control is actually exercised to influence the sale price, or
</P>
<P>(2) The sale is made pursuant to special arrangements between a manufacturer and a purchaser.
</P>
<FP>In case of an article sold otherwise than at arm's-length, and at less than fair market price, the constructive sale price shall be the price for which such articles are sold, in the ordinary course of trade, by manufacturers or producers thereof, as determined by the Secretary. Once such a constructive sale price has been determined, no further adjustment of such price shall be made. See sections 4216(b) (3) and (4) of the Code, and § 53.97, for specific methods for determining constructive sale prices for intercompany sales under certain defined conditions.


</FP>
</DIV8>


<DIV8 N="§ 53.96" NODE="27:2.0.1.2.6.7.153.6" TYPE="SECTION">
<HEAD>§ 53.96   Constructive sale price; special rule for arm's-length sales.</HEAD>
<P>(a) <I>In general.</I> Section 4216(b)(2) of the Code provides a special rule under which a manufacturer shall determine a constructive sale price for this sale of taxable articles at retail, and to retail dealers, under certain conditions. The rule is applicable where:
</P>
<P>(1) The manufacturer regularly sells such articles at retail, or to retailers, or both, as the case may be,
</P>
<P>(2) The manufacturer also regularly sells such articles to one or more wholesale distributors in arm's-length transactions, and the manufacturer establishes that its prices in such cases are determined without regard to any benefit to be derived under section 4216(b)(2) of the Code, and
</P>
<P>(3) The transactions are arm's-length transactions.
</P>
<P>(4) A manufacturer meeting the foregoing requirements shall base its tax liability for sales at retail and sales to retailers on the lower of its actual sale price or the highest price for which it sells the same articles under the same conditions to wholesale distributors.
</P>
<P>(b) <I>Definitions.</I> For purposes of section 4216(b)(2) of the Code and this section:
</P>
<P>(1) <I>Actual sale price.</I> “Actual sale price” means the actual selling price for an article determined in the same manner as sale price is determined for a taxable sale. Accordingly, such price must reflect the inclusions and exclusions set forth in sections 4216(a) and (e) of the Code, and any price adjustments described in section 6416(b)(1) of the Code.
</P>
<P>(2) <I>Highest price to wholesale distributors.</I> The “highest price” charged wholesale distributors for an article by a manufacturer, producer, or importer thereof, is the highest price at which the manufacturer, producer, or importer sells the article to wholesale distributors, determined without regard to quantity. Such price shall be determined in the same manner as sale price is determined for a taxable sale with respect to the inclusions and exclusions under sections 4216(a) and (e) of the Code; however, since the price is to be a “highest” price, no further adjustment may be made for price readjustments under section 6416(b)(1) of the Code.
</P>
<P>(3) <I>Regular sales.</I> An article is considered to be sold “regularly” at retail or to retailers if sales are made at retail or to retailers periodically and recurringly as a regular part of the seller's business. If a seller makes only isolated or casual sales of an article at retail or to retailers, it is not considered to be selling “regularly” at retail or to retailers. Similarly, a manufacturer is considered to be making regular sales of an article to one or more distributors if it sells the article to at least one distributor periodically and recurringly as a regular part of its business.
</P>
<P>(4) <I>Normal method of sales in industry.</I> In the absence of a showing to the appropriate TTB officer of a more appropriate manner of determining the normal method of sales within an industry which is practical in application, the normal method of sales within an industry shall be regarded as not being at retail or to retailers, or both, if the industry dollar volume of sales which are at retail or to retailers, or both, is less than half the total industry dollar volume of sales at all levels of distribution by manufacturers, producers, or importers, including sales to other manufacturers, producers, or importers.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 53.97" NODE="27:2.0.1.2.6.7.153.7" TYPE="SECTION">
<HEAD>§ 53.97   Constructive sale price; affiliated corporations.</HEAD>
<P>(a) <I>In general.</I> Sections 4216(b) (3) and (4) of the Code establish procedures for determining a constructive sale price under section 4216(b)(1)(C) of the Code for sales between corporations that are members of the same “affiliated group”, as that term is defined in section 1504(a) of the Code.
</P>
<P>(b) <I>Sales to which section 4216(b)(3) of the Code applies.</I> Section 4216(b)(3) of the Code provides a procedure for determining a constructive sale price under section 4216(b)(1)(C) of the Code in those instances where:
</P>
<P>(1) A manufacturer, producer or importer regularly sells a taxable article to a wholesale distributor which is a member of the same affiliated group as the manufacturer, producers or importer, and
</P>
<P>(2) The wholesale distributor regularly sells such article to one or more independent retailers, but does not regularly sell to wholesale distributors. Under such circumstances the constructive sale price for the article shall be an amount equal to 90 percent of the lowest price for which the distributor regularly sells the article in arm's-length transactions to such independent retailers. Once the constructive sale price has been determined, no adjustment shall be made for inclusions or exclusions under section 4216(a) of the Code or price readjustments under section 6416(b)(1) of the Code. If both sections 4216(b)(3) and 4216(b)(4) of the Code apply with respect to the sale of an article, the constructive sale price for such article shall be the lower of the prices computed under sections 4216(b)(3) and 4216(b)(4).
</P>
<P>(c) <I>Sales to which section 4216(b)(4) of the Code applies.</I> Section 4216(b)(4) of the Code provides a procedure for determining a constructive sale price under section 4216(b)(1)(C) of the Code in those instance where:
</P>
<P>(1) A manufacturer, producer, or importer regularly sells (except for tax-free sales) a taxable article only to a wholesale distributor which is a member of the same affiliated group as the manufacturer, producer, or importer,
</P>
<P>(2) The distributor regularly sells (except for tax-free sales) such article only to retail dealers, and
</P>
<P>(3) The normal method of sales for such articles within the industry is to sell such articles in arm's-length transactions to wholesale distributors.
</P>
<P>(4) Under section 4216(b)(4) of the Code, the constructive sale price of such article shall be the median price at which the distributor, at the time of the sale by the manufacturer, resells the article to retail dealers, reduced by a percentage of such price equal to the percentage which:
</P>
<P>(i) The difference between the median price for which comparable articles are sold to wholesale distributors, in the ordinary course of trade, by manufacturers of producers thereof, and the median price at which such wholesale distributors in arm's-length transactions sell such comparable articles to retailers, is of
</P>
<P>(ii) The median price at which such wholesale distributors in arm's-length transactions sell such comparable articles to retailers.
</P>
<P>(iii) For purposes of this paragraph, the “median price” for which an article is sold at a particular level of distribution is the price midway between the highest and lowest prices charged vendees at the particular level of distribution. Where only one price is charged at a level of distribution, “median price” is equivalent to “actual price”. All sale prices referred to in paragraphs (c) and (d) of this section are prices that must reflect the inclusions and exclusions set forth in section 4216(a) of the Code. However, once a constructive sale price has been determined under these paragraphs, no further adjustment of such price is allowed.
</P>
<P>(d) <I>Application of section 4216(b)(4) of the Code.</I> The application of section 4216(b)(4) of the Code and paragraph (c) of this section may be illustrated by the following example:
</P>
<EXAMPLE>
<HED>Example.</HED><PSPACE>M, a corporation engaged in the manufacture of article X, sold 100 of such articles at $10.00 per article to a wholesale distributor N, a corporation engaged in the business of selling X articles to independent retail dealers. N is a member of the same affiliated group of corporations as M. M sells X articles only to N. The normal method of manufacturers' sales of X articles in the industry is to sell to independent wholesale distributors. N corporation sells X articles to retailers for $15.00 each. The price for which comparable X articles are sold to wholesale distributors in the ordinary course of trade by manufacturers thereof is $12.00 per article. Wholesale distributors sell X articles to retailers in the ordinary course of trade for $16.00 per article. Under the foregoing facts the constructive sale price determined under section 4216(b)(4) of the Code and this paragraph is $11.25, computed as follows:
</PSPACE>
<img src="/graphics/ec05oc91.020.gif"/></EXAMPLE>
<P>(e) <I>Determination of “lowest price”.</I> In addition to other considerations, in determining a “lowest price” for purposes of sections 4216(b) (1) and (3) of the Code and § 53.97, such price shall be determined:
</P>
<P>(1) Without requiring that a given percentage of sales be made at that price (provided that the volume of sales made at that price is great enough to indicate that those sales have not been engaged in primarily to establish a lower tax base), and
</P>
<P>(2) Without including any charge for a fixed amount that the purchaser has an unconditional right to recover on the basis of a contractual arrangement existing at the time of sale.
</P>
<P>(f) <I>Definitions.</I> For purposes of this section and paragraphs (3) and (4) of section 4216(b) of the Code, the term “regularly sells” has the same meaning as that accorded the term “regular sales” in § 53.96(b)(3), and the term “normal method of sales in the industry” has the same meaning as accorded that term in § 53.96(b)(4).
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.98" NODE="27:2.0.1.2.6.7.153.8" TYPE="SECTION">
<HEAD>§ 53.98   Computation of tax on leases and installment sales.</HEAD>
<P>(a) <I>Leases.</I> When a taxable article is leased by a manufacturer, producer, or importer, liability for tax is incurred, except as provided by section 4217(b) of the Code and § 53.104, on each payment made with respect to such lease. Tax is payable on each lease payment as long as the article is leased by the manufacturer, producer, or importer. The tax payable with respect to each lease payment is a percentage of each payment based on the rate of tax, if any, in effect on the date the lease payment is due. If the article is subsequently sold by the manufacturer, producer, or importer, the tax applies also to such sale, without regard to the tax paid when the article was leased. For definition of the term “lease”, see § 53.103.
</P>
<P>(b) <I>Installment sales.</I> When a taxable article is sold under an installment payment contract with title reserved in the seller, or under a conditional sale contract, chattel mortgage arrangement or other arrangement creating a security interest with payments to be made in installments, tax shall be computed and paid on each payment made by the purchaser. The tax payable with each payment is a percentage of each payment based on the rate of tax, if any, in effect on the date the payment is due. The part of each payment that is subject to tax is that portion of the payment equal to the percentage of the total portion of the payment equal to the percentage of the total charge for the article that is subject to tax. For example, if the total charge for the article is $1,000, and of the total amount charged only 90 percent thereof, or $900, is subject to tax by reason of exclusions, then only 90 percent of the installment payment is subject to tax. If the tax base is a constructive sale price computed under section 4216(b) of the Code that is less than the actual sale price of the article, the portion of each payment subject to tax is the percentage of such payment equal to the percentage that the constructive sale price bears to the actual sale price. For example, if an article is sold at retail for $100, and the constructive sale price for such an article computed under the provisions of section 4216(b)(1)(A) of the Code is $75, the percentage which the constructive sale price bears to the actual sale price is 75 percent. Accordingly, only 75 percent of each installment payment is subject to tax.
</P>
<P>(c) <I>Sales on credit.</I> Where articles are sold on credit under conditions other than those specified in paragraph (b) of this section, the entire tax shall be reported and paid with the return covering the period in which the sale is made, even though the price may not be paid to the manufacturer, producer, or importer until a later date, or not paid at all.


</P>
</DIV8>


<DIV8 N="§ 53.99" NODE="27:2.0.1.2.6.7.153.9" TYPE="SECTION">
<HEAD>§ 53.99   Sales of installment accounts.</HEAD>
<P>(a) <I>In general.</I> Except as provided in paragraph (d) of this section, in case of a sale or other disposition by a manufacturer, producer, or importer of an installment account of the type specified in section 4216(c) of the Code, the tax shall not apply to subsequent installment payments on such account. Instead, there shall be paid an amount equal to the difference between the tax previously paid on such installment account and the total tax computed by applying:
</P>
<P>(1) To each installment due before the sale of the installment account, the rate of tax applicable at the time payment thereof was due, and
</P>
<P>(2) To each installment, the time for payment of which has not arrived, the rate of tax which, under the provisions of chapter 32 of the Code as in effect on the date of the sale of the installment account, is (or is to be) in effect on the date such installment is due. However, see paragraph (b) of this section if the sale is made in a bankruptcy or insolvency proceeding. The tax due under this paragraph shall be included in the return for the period in which the account is sold.
</P>
<P>(b) <I>Sale in bankruptcy or insolvency proceeding.</I> In the case of a sale of an installment account of a manufacturer, producer, or importer pursuant to the order of, or subject to the approval of, a court of competent jurisdiction in a bankruptcy or insolvency proceeding, the amount of tax due shall be computed and paid as provided in paragraph (a) of this section but shall not exceed the amount of tax computed by multiplying:
</P>
<P>(1) The proportionate share of the amount for which such accounts are sold which is allocable to each unpaid installment payment, by
</P>
<P>(2) The rate of tax which, under the provisions of chapter 32 of the Code as in effect on the date of the sale of the installment account, is (or is to be) in effect on the date such payment is due.
</P>
<P>(c) <I>Collection of installment accounts on behalf of the manufacturer.</I> Where a manufacturer, producer, or importer retains title to an installment account but turns it over to another person for collection on a fee basis, no sale of such account (or other disposition as contemplated in section 4216(d) of the Code) has been made. The tax shall continue to be paid as provided by section 4216(c) of the Code.
</P>
<P>(d) <I>Returned installment accounts.</I> Where an installment account which has been sold or otherwise disposed of is returned to the manufacturer, producer, or importer who sold it under an agreement under which the account was sold, and credit or refund has been allowed under section 6416(b)(5) of the Code and § 53.183, the manufacturer, producer, or importer shall pay tax as provided by section 4216(c) of the Code and § 53.98 on any subsequent payments made on such returned installment account until such time as there shall have been paid the total tax liability with respect to the account as computed under paragraph (a) of this section.
</P>
<P>(e) <I>Limitation.</I> The sum of the amounts payable under this section and § 53.98 or an installment account shall not exceed the total amount of tax which would be payable if such installment account had not been sold or otherwise disposed of (computed as provided in subsection (c)).


</P>
</DIV8>


<DIV8 N="§ 53.100" NODE="27:2.0.1.2.6.7.153.10" TYPE="SECTION">
<HEAD>§ 53.100   Exclusion of local advertising charges from sale price.</HEAD>
<P>(a) <I>In general.</I> Section 4216(e) of the Code deals with the treatment to be accorded charges made by a manufacturer for, and reimbursements by a manufacturer or expenditures in connection with the advertising of certain articles subject to excise tax under chapter 32 of the Code. Section 4216(e) of the Code provides an exclusion (which is in addition to the exclusions provided by section 4216(a) of the Code and § 53.92) in respect of charges for local advertising, as defined in paragraph (b) of this section, for purposes of determining the price for which an article is sold. See paragraph (c) of this section. The exclusion provided by section 4216(e) of the Code and paragraph (c) of this section has application only if the advertising is broadcast over a radio or television station, appears in a newspaper or magazine, or is displayed by means of an outdoor advertising sign or poster. Section 4216(e) of the Code also provides an overall limitation in respect of the sum of the amount of the exclusions from price as charges for local advertising and the amount of the readjustments authorized under section 6416(b)(1) of the Code (relating to credits or refunds for price readjustments) in respect of reimbursements by a manufacturer of expenditures for local advertising. See § 53.101. For provisions prohibiting exclusion from price or readjustment of price in respect of charges for, and reimbursements of expenditures for, advertising other than local advertising, see § 53.102.
</P>
<P>(b) <I>Definition of local advertising</I>—(1) <I>In general.</I> For purposes of the regulations under sections 4216(e) and 6416(b)(1) of the Code (§§ 53.100-53.102 and 53.173-53.176), the term “local advertising” means advertising which relates to an article with respect to which tax is imposed under chapter 32 of the Code on the price for which sold and which:
</P>
<P>(i) Is initiated or obtained by the purchaser or any subsequent vendee,
</P>
<P>(ii) Names the article for which the price is determinable under section 4216 and states the location at which such article may be purchased at retail, and
</P>
<P>(iii) Is broadcast over a radio station or television station, appears in a newspaper or magazine, or is displayed by means of an outdoor advertising sign or poster.
</P>
<P>(2) <I>Initiating or obtaining advertising.</I> For purposes of paragraph (b)(1) of this section, the advertising must be initiated or obtained by one or more of the persons in the chain of distribution of the article (wholesale distributor, jobber, dealer, etc.) who purchased the article for resale. For purposes of this subparagraph, the manufacturer is not considered to be one of the persons in the chain of distribution of the article. In general, advertising of an article is considered to be initiated or obtained by one or more persons in the chain of distribution of the article if any such person:
</P>
<P>(i) Takes an active part in the actual planning and development, or in the arrangements or negotiations leading to the development, of the form and content of the advertising, or
</P>
<P>(ii) Contracts for the placement of the advertising.
</P>
<FP>The participation by the manufacturer of the article in the planning, development, or placement of the advertising is immaterial provided the advertising is in fact initiated or obtained by one or more persons in the chain of distribution of the article. Furthermore, it is immaterial whether or not the advertising is subject to the approval of the manufacturer of the article. However, if no person in the chain of distribution of the article takes an active part in the actual planning and development, or in the arrangements or negotiations leading to the development, of the form and content of the advertising, but, rather, all such planning, development, arrangements, and negotiations are accomplished by the manufacturer of the article, then such manufacturer is considered to have initiated the advertising, and if he also contracts for the placement of the advertising, such advertising does not qualify as “local advertising”.
</FP>
<P>(3) <I>Identification of article and sales location.</I> To meet the requirements of paragraph (b)(1) of this section, the advertising must identify the article for which the price is determinable under section 4216 of the Code and give the location or locations at which the article may be purchased at retail. All products taxable at the same rate under the same section of chapter 32 of the Code shall be considered to be an “article” for purposes of the preceding sentence. No specific method or means of identification is prescribed. The identification of the article may be made through the use of the name of the manufacturer or the use of an established trade-mark, such as a seal, picture, letter or letters, etc., or a combination thereof. The advertising must identify the particular retail establishment or establishments at which the article may be purchased at retail but need not specify the location of any such establishment in terms of the number by which the premises are designated or the name of the street on which the retail premises are situated. However, the location of the retail premises must be described sufficiently, as, for example, by reference to a particular named shopping area or shopping center, to enable customers to find the retail establishment.
</P>
<P>(4) <I>Determination of costs of local advertising.</I> Where an advertisement identifies more than one article, and all such articles are not taxable, or are not taxable at the same rate under the same section of chapter 32 of the Code, a reasonable allocation of the cost of the advertisement must be made among:
</P>
<P>(i) Articles taxable at the same rate under the same section of the Code, and
</P>
<P>(ii) Articles which are not taxable under chapter 32 of the Code.
</P>
<FP>For example, in the case of a single page newspaper or magazine advertisement, an allocation of costs reflecting the lineage or space devoted to the specified categories will be considered to reflect a reasonable allocation of the cost of advertising the different articles. As a general rule, only the cost of the “spot” portion identifying the retail establishment is considered “local advertising” in the case of national television or radio programs.
</FP>
<P>(5) <I>Meaning of “newspaper”.</I> The term <I>newspaper,</I> as used in paragraph (b)(1) of this section, is limited to those publications which are commonly understood to be newspapers and which are printed and distributed periodically at daily, weekly, or other short intervals for the dissemination of news of a general character and of a general interest. The term does not include handbills, circulars, flyers, or the like, unless printed and distributed as a part of a publication which constitutes a newspaper within the meaning of this subparagraph. Neither does the term include any publication which is issued to supply information on certain subjects of interest to particular groups unless such publication otherwise qualifies as a newspaper within the meaning of this subparagraph. For purposes of this subparagraph, advertising is not considered to be news of a general character and of a general interest.
</P>
<P>(6) <I>Meaning of “magazine”.</I> The term <I>magazine,</I> as used in paragraph (b)(1) of this section, is limited to those publications which are:
</P>
<P>(i) Commonly understood to be magazines,
</P>
<P>(ii) Printed and distributed periodically at least twice a year, and
</P>
<P>(iii) Published for the dissemination of information of a general nature or of special interest to particular groups.
</P>
<P>(iv) The term does not include handbills, circulars, flyers or the like, unless printed and distributed as a part of a publication which constitutes a magazine within the meaning of this subparagraph. For purposes of this subparagraph, advertising is not considered to be information of a general nature or information of special interest to particular groups within the contemplation of paragraph (b)(6)(iii) of this section.
</P>
<P>(7) <I>Meaning of “outdoor advertising sign or poster”.</I> The term “outdoor advertising sign or poster”, as used in paragraph (b)(1) of this section, means a sign or poster displaying advertising matter, which is located outside of a roofed enclosure. This term includes both signs or posters on billboards, whether placed on or affixed to land, buildings, or other structures, and those which are displayed on or attached to moving objects, provided the signs or posters are located outside of a roofed enclosure. The term “roofed enclosure” means a roof structure which is enclosed on more than one-half of its sides by walls, fences, or other barriers.
</P>
<P>(c) <I>Exclusion</I>—(1) <I>Conditions and limitations.</I> A charge for local advertising which is required by a manufacturer to be paid as a condition to his sale of an article is not a part of the taxable price of the article, to the extent that such charge meets each of the following conditions and limitations:
</P>
<P>(i) Such charge does not exceed 5 percent of the difference between:
</P>
<P>(A) An amount which would constitute the taxable price of the article (computed at the time of the sale of the article) if no part of any charge for local advertising were excludable in computing taxable price, and
</P>
<P>(B) The amount of any separate charge for local advertising, whatever the amount of such charge may be,
</P>
<P>(ii) Such charge is specifically shown as a separate charge for local advertising on the invoice or statement covering the sale of the article.
</P>
<P>(iii) Such charge is billed by the manufacturer with the intention on his part of repaying the amount of the charge to the person purchasing the article from him, or to any person who subsequently purchases the article for resale, in reimbursement of costs incurred for local advertising of such article or some other article or articles taxable at the same rate under the same section of the Code. In the absence of evidence to the contrary, the fact of such intention will be assumed in all cases where the manufacturer and his vendees are parties to an advertising plan which calls for such repayments, or the manufacturer can otherwise establish that the vendees to whom he bills such charges understand and expect that such repayments will be made.
</P>
<P>(2) <I>When exclusion ceases to apply.</I> To the extent that charges for local advertising meet the conditions and limitations stated in paragraph (c)(1) of this section, such charge is excludable in computing the taxable price of the article in respect of which the charge was made. However, the exclusion will cease to apply in respect of any part of such charge which the manufacturer fails to repay before May 1 of the calendar year following the calendar year in which the article was sold, to the person who purchased the article from him, or to some other person who subsequently purchases the article for resale, in reimbursement of costs incurred for local advertising of such article or some other article or articles taxable at the same rate under the same section of the Code. If, before such May 1, any part of the charge so excluded has not been so repaid, the manufacturer becomes liable for tax on such May 1 in the same manner as if an article taxable under such section of the Code had been sold by him on such May 1 at a taxable price equivalent to that part of the charge not so repaid. However, see paragraph (b)(2) of § 53.175, relating to price readjustments in cases where local advertising charges are not repaid before such May 1 but are subsequently paid over by the manufacturer to his vendees in reimbursement of costs for local advertising. For provisions relating to the method of determining whether a payment by a manufacturer is or is not attributable to an excluded local advertising charge, see paragraph (b)(3) of § 53.101. In any case where the payment is determined to be attributable to such a charge, the date of the sale in connection with which the charge was made shall be determined on a first-in-first-out basis in respect of the vendee to whom the charge was billed by the manufacturer.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.101" NODE="27:2.0.1.2.6.7.153.11" TYPE="SECTION">
<HEAD>§ 53.101   Limitation on aggregate of exclusions and price readjustments.</HEAD>
<P>(a) <I>In general.</I> The sum of the amount excluded from taxable price in respect of charges for local advertising, as provided in section 4216(e)(1) of the Code and § 53.100, plus the amount of the readjustments for which credits or refunds may be claimed in respect of local advertising, as provided in section 6416(b)(1) of the Code and § 53.175, is subject to an overall 5 percent limitation. This limitation applies to each manufacturer, as of the close of each calendar quarter, in respect of all articles taxable under the same section of chapter 32 of the Code which were sold by such manufacturer in such quarter (and the preceding quarter or quarters, if any, in the calendar year).
</P>
<P>(b) <I>Computation of overall 5 percent limitation</I>—(1) <I>In general.</I> The limitation prescribed by section 4216(e)(2) of the Code (the “overall 5 percent limitation” referred to in paragraph (a) of this section) as to the total of the exclusions from price and readjustments of price which may be claimed for local advertising in respect of all articles taxable under the same section of Chapter 32 of the Code shall be computed as of the close of each calendar quarter of the calendar year. The overall 5 percent limitation is 5 percent of the difference between:
</P>
<P>(i) The amount which would constitute the total taxable price (computed at the time of sale) of all articles taxable under the same section of chapter 32 of the Code sold by the manufacturer during the elapsed calendar quarters of the calendar year, if no part of any charge for local advertising were excludable in computing taxable price, and
</P>
<P>(ii) The total of all amounts billed as separate charges for local advertising of such articles (whatever the amount of any single charge of the total of all charges).
</P>
<P>(iii) In making the computations under paragraphs (b)(1) (i) and (ii) of this section, credits or refunds under section 6416(b) of the Code of tax paid on the sale of any such articles are to be disregarded and articles sold tax-free by the manufacturer are to be excluded. The amount by which the overall 5 percent limitation computed as of the close of a particular calendar quarter in respect of articles taxable under the same section of chapter 32 of the Code exceeds the sum of the charges for local advertising excluded in computing the taxable price and the amount of reimbursements for local advertising of such articles made during the elapsed calendar quarters of the calendar year, in respect of which credit or refund has been claimed, represents the unused portion of the overall 5 percent limitation. Such unused portion is the maximum amount of reimbursements for local advertising in respect of which credit or refund may be claimed at the close of the particular calendar quarter, subject to the applicable conditions and limitations governing the right to claim a credit or refund in respect of local advertising (see § 53.175). The unused portion of the overall 5 percent limitation as of the close of the fourth calendar quarter of a calendar year in respect of which credit or refund may not be claimed as of the close of such quarter must be disregarded in computing the overall 5 percent limitation for any subsequent calendar quarter. Moreover, the amount of any reimbursements for local advertising made by a manufacturer in a calendar year which is in excess of the amount of such reimbursements in respect of which credit or refund may be claimed, within the overall limitation, as of the close of the calendar year, may not subsequently serve as the basis for a credit or refund.
</P>
<P>(2) <I>Alternative method of computation in certain cases.</I> If during the portion of the calendar year ending with the date as of which the overall 5 percent limitation is being computed the amount of the local advertising charge separately billed by the manufacturer has not, in respect of any sale of any articles taxable under the same section of chapter 32 of the Code, exceeded the amount excludable pursuant to § 53.100 in computing taxable price, the overall 5 percent limitation as of the close of a particular calendar quarter in respect of articles taxable under such section is 5 percent of the total taxable price (computed at the time of the sale) of all such articles sold taxpaid during the calendar year.
</P>
<P>(3) <I>Allocation of amounts paid in reimbursement of expenditures for local advertising.</I> If a manufacturer makes contributions to a local advertising program in connection with which he makes excludable local advertising charges, it is necessary that reimbursements by the manufacturer for local advertising be attributed to the charges for local advertising, to the manufacturer's contributions, or allocated between them. Whether an amount paid by a manufacturer in reimbursement of expenses for local advertising is or is not a repayment of a local advertising charge which was excluded from taxable price under section 4216(e)(1) of the Code and § 53.100, shall be determined on the basis of an allocation made under the agreement between the manufacturer and his vendee (or any subsequent vendee).
</P>
<P>(c) <I>Examples.</I> The application of paragraphs (a) and (b) of this section may be illustrated by the following examples:
</P>
<EXAMPLE>
<HED>Example (1).</HED><PSPACE>During the first and second calendar quarters of the year, a manufacturer makes sales of articles taxable under section 4181 to his distributors. The total charges for such sales, exclusive of the tax, transportation charges, delivery charges, or other charges which are excludable, pursuant to section 4216(a) of the Code, in computing taxable price, are as follows:
</PSPACE>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">First Quarter:
</TD><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">Articles taxable under Section 4181</TD><TD align="right" class="gpotbl_cell">$100,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">Local advertising charges</TD><TD align="right" class="gpotbl_cell">3,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 6em">Total Charges</TD><TD align="right" class="gpotbl_cell">103,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Second Quarter:
</TD><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">Articles taxable under Section 4181</TD><TD align="right" class="gpotbl_cell">$150,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">Local advertising charges</TD><TD align="right" class="gpotbl_cell">4,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 6em">Total Charges</TD><TD align="right" class="gpotbl_cell">154,000</TD></TR></TABLE></DIV></DIV><PSPACE>Assume further that the manufacturer contributes to the advertising plan and that the manufacturer pays $5,500 and $1,000 during the first and second calendar quarters of the year, respectively, to his distributors in reimbursement of expenses incurred by them for local advertising of the articles purchased from the manufacturer.
</PSPACE>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">Computation as of close of first calendar quarter:
</TD><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">1. Amount which would constitute total taxable price (computed at time of sale) if no part of any charge for local advertising were excludable in computing taxable price</TD><TD align="right" class="gpotbl_cell">$103,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">2. Amounts billed as separate charges for local advertising</TD><TD align="right" class="gpotbl_cell">−3,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">3. Difference</TD><TD align="right" class="gpotbl_cell">100,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">4. Overall 5 percent limitation (5 percent of item 3)</TD><TD align="right" class="gpotbl_cell">$5,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">5. Amount excluded in computing taxable price</TD><TD align="right" class="gpotbl_cell">−3,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">6. Unused portion of limitation</TD><TD align="right" class="gpotbl_cell">2,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">7. Allocation, pursuant to agreement, of $5,500 paid to distributors:
</TD><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Charges for local advertising</TD><TD align="right" class="gpotbl_cell">$3,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Contributions by manufacturer</TD><TD align="right" class="gpotbl_cell">$2,500</TD></TR></TABLE></DIV></DIV><PSPACE>Readjustment may be claimed in respect of that portion of the total amount repaid to the distributors which is allocated to the manufacturer's contribution ($2,500) to the extent that such portion does not exceed the unused portion of the overall 5 percent limitation ($2,000). Accordingly, as of the close of the first calendar quarter the manufacturer may claim credit or refund in respect of a readjustment of price in the amount of $2,000.
</PSPACE>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">Computation as of close of second calendar quarter:
</TD><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">1. Amount which would constitute total taxable price (computed at time of sale) if no part of any charge for local advertising were excludable in computing taxable price ($103,000+$154,000)</TD><TD align="right" class="gpotbl_cell">$257,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">2. Amounts billed as separate charges for local advertising ($3,000+$4,000)</TD><TD align="right" class="gpotbl_cell">−7,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">3. Difference</TD><TD align="right" class="gpotbl_cell">250,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">4. Overall 5 percent limitation (5 percent of item 3)</TD><TD align="right" class="gpotbl_cell">$12,500
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">5. Amount excluded in computing taxable price ($3,000+$4,000) plus readjustment claimed at end of first calendar quarter ($2,000)</TD><TD align="right" class="gpotbl_cell">−9,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">6. Unused portion of limitation</TD><TD align="right" class="gpotbl_cell">3,500
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">7. Allocation, pursuant to agreement, of $6,500 ($5,500+$1,000) paid to distributors:
</TD><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Charges for local advertising</TD><TD align="right" class="gpotbl_cell">$3,500
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Contributions by manufacturer</TD><TD align="right" class="gpotbl_cell">$3,000</TD></TR></TABLE></DIV></DIV><PSPACE>Although the total reimbursements for local advertising expenses attributable to contributions by the manufacturer ($3,000) does not exceed the unused portion of the overall 5 percent limitation ($3,500), the manufacturer, having taken, at the close of the first calendar quarter, a price readjustment in the amount of $2,000 in respect to his contributions, is entitled at the close of the second calendar quarter to claim credit or refund in respect of a price readjustment in the amount of $1,000 ($3,000−$2,000).</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example (2).</HED><PSPACE>During the first calendar quarter of the year, a manufacturer sold articles taxable under section 4181 to his distributors at a total charge of $106,000, exclusive of the tax, transportation charges, delivery charges, or other charges which are excludable, pursuant to section 4216(a) of the Code, in computing taxable price. This total charge of $106,000 was billed as follows:
</PSPACE>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">Total Charge:
</TD><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">Articles taxable under Section 4181</TD><TD align="right" class="gpotbl_cell">$100,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">Local advertising charges</TD><TD align="right" class="gpotbl_cell">6,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 6em">Total charges</TD><TD align="right" class="gpotbl_cell">106,000</TD></TR></TABLE></DIV></DIV><PSPACE>Assume further that the manufacturer contributes to the advertising plan and that the manufacturer pays $3,000 during the first calendar quarter of the year to his distributors in reimbursement of expenses incurred by them for local advertising of the articles purchased from the manufacturer.
</PSPACE>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="center" class="gpotbl_cell" scope="row">Computation as of close of first calendar quarter:
</TD><TD align="right" class="gpotbl_cell"/></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">1. Amount which would constitute total taxable price (computed at time of sale) if no part of any charge for local advertising were excludable in computing taxable price</TD><TD align="right" class="gpotbl_cell">$106,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">2. Amounts billed as separate charges for local advertising</TD><TD align="right" class="gpotbl_cell">−6,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">d. Difference</TD><TD align="right" class="gpotbl_cell">100,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">4. Overall 5 percent limitation (5 percent of item 3)</TD><TD align="right" class="gpotbl_cell">5,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">5. Amount excluded in computing taxable price (see paragraph (c) of § 53.100</TD><TD align="right" class="gpotbl_cell">−5,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">6. Unused portion of limitation</TD><TD align="right" class="gpotbl_cell">0
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 2em">7. Allocation, pursuant to agreement, of $3,000 paid to distributors:</TD><TD align="right" class="gpotbl_cell"></TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Charges for local advertising</TD><TD align="right" class="gpotbl_cell">2,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row" style="padding-left: 4em">Contributions by manufacturer</TD><TD align="right" class="gpotbl_cell">1,000</TD></TR></TABLE></DIV></DIV><PSPACE>Credit or refund may not be claimed in respect of that portion of the total amount repaid to the distributors ($3,000) which is allocated to the manufacturer's contribution ($1,000) since the amount excluded in computing taxable price is equal to the overall 5 percent limitation.</PSPACE></EXAMPLE>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.102" NODE="27:2.0.1.2.6.7.153.12" TYPE="SECTION">
<HEAD>§ 53.102   No exclusion or readjustment for other advertising charges or reimbursements.</HEAD>
<P>(a) <I>Exclusions from price.</I> No exclusion in computing the taxable price of any article sold by the manufacturer may be allowed in respect of any charge for advertising if, and to the extent that, such charge:
</P>
<P>(1) Is for advertising which does not qualify as local advertising within the meaning of section 4216(e)(4) of the Code and paragraphs (a) and (b) of § 53.100, or
</P>
<P>(2) Does not satisfy all of the conditions and limitations stated in section 4216(e)(1) of the Code and paragraph (c) of § 53.100.
</P>
<P>(b) <I>Readjustments of price.</I> No credit or refund under section 6416(b)(1) of the Code may be allowed in respect of any amount which was included in the taxable price of an article sold by the manufacturer and which was later paid by him to his vendee in reimbursement of costs incurred for advertising, if, and to the extent that, the amount so paid:
</P>
<P>(1) Is for advertising which does not qualify as local advertising within the meaning of section 4216(e)(4) of the Code and paragraph (b) of § 53.100, or
</P>
<P>(2) Is not within the limitation provided in section 4216(e)(2) of the Code, as computed in accordance with § 53.101, as of the close of the calendar quarter in which the amount is so paid over or as of the close of any subsequent calendar quarter in the same calendar year. See, however, § 53.175, relating to redetermination of price readjustments in cases where local advertising charges excluded from taxable price in one calendar year become taxable as of May 1 of the following calendar year.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.103" NODE="27:2.0.1.2.6.7.153.13" TYPE="SECTION">
<HEAD>§ 53.103   Lease considered as sale.</HEAD>
<P>For purposes of chapter 32 of the Code, the lease of an article by a manufacturer, producer, or importer shall be considered a sale of the article. The term <I>lease</I> means a contract or agreement, written or verbal, which gives the lessee an exclusive, continuous right to the possession or use of a particular article for a period of time. The term includes any renewal or extension of a lease or any subsequent lease of the article.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991; T.D. 372, 61 FR 20724, May 8, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 53.104" NODE="27:2.0.1.2.6.7.153.14" TYPE="SECTION">
<HEAD>§ 53.104   Limitation on amount of tax applicable to certain leases.</HEAD>
<P>(a) <I>Conditions for eligibility.</I> Section 4217(b) of the Code provides for a limitation on the amount of tax that shall apply to the lease, any renewal, or further lease, of an article which, if sold, would be subject to tax on the basis of sale price. Such limitation on the amount of the tax applies with respect to the lease of an article only if, at the time of making the lease, the lessor is engaged in the business of selling in arm's length transactions the same type and model of article. In case of a lease to which section 4217(b) of the Code does not apply, tax shall be computed and paid as provided in section 4216(c) of the Code and paragraph (a) of § 53.98.
</P>
<P>(b) <I>Lessor engaged in business of selling.</I> The lessor will be regarded as being engaged in the business of selling in arm's length transactions the same type and model of an article as the one being leased if it periodically and recurringly makes bona fide offers for sale of such articles in the regular course of operation of its business, which offers if accepted would constitute sales at arm's length. Whether the offers are bona fide shall be determined on the basis of the facts in each case, such as sales actually made, the nature of the advertising, sales literature, and other means used to effectuate sales. It is not necessary that the offers for sale be made to the same class of purchasers as those to whom the article is being leased.
</P>
<P>(c) <I>Same type and model of article.</I> To qualify as the “same type and model of article”, the article offered for sale must be an unused article essentially the same in size, design, and function as the article being leased. Slight differences in appearance or accessories will not render articles dissimilar which are identical in all other respects.
</P>
<P>(d) <I>Basis for tax</I>—(1) <I>Tax payable until total tax in paid.</I> In case of a lease of an article to which section 4217(b) of the Code applies, tax shall be paid on each lease payment in an amount computed by applying to such lease payment a percentage equal to the rate of tax in effect on the date of the lease payment. Such tax payments shall continue to be made under such lease, or any subsequent lease of the article, until the cumulative total of the tax payments equals the total tax. Lease payments made thereafter with respect to that article shall not be subject to tax. For definition of the term “total tax,” see paragraph (e) of this section.
</P>
<P>(2) <I>Changes in tax rates.</I> If the rate of tax is increased or decreased during a lease period, the new rate shall apply to the lease payments made on and after the date of the change, but the amount of the total tax shall remain the same.
</P>
<P>(e) <I>Total tax.</I> For purposes of this section, the term “total tax” means the amount of tax, computed at the rate in effect on the date of the first lease of the article to which section 4217(b) of the Code applies, which would be due on the constructive sale price of the article as determined under section 4216(b) of the Code and § 53.95, as if the article had been sold by a manufacturer at retail on such date.
</P>
<P>(f) <I>Sale of article before total tax becomes payable.</I> If the lessor sells the article before the total tax has become payable, the tax payable on the sale shall be the lesser of the following amounts:
</P>
<P>(1) The difference between:
</P>
<P>(i) The total tax, and
</P>
<P>(ii) The aggregate tax applicable to lease payments already received; or
</P>
<P>(2) A tax computed, at the rate in effect on the date of the sale, on the price for which the article is sold. For purposes of (f)(2) of this section, the provisions of section 4216(b) of the Code for determining a constructive sale price shall not apply if the sale is at arm's length. If the sale is not at arm's length, the tax referred to in (f)(2) of this section shall be computed on a constructive sale price as provided in § 53.95.
</P>
<P>(g) <I>Sale of article after total tax has become payable.</I> If the lessor sells an article after the total tax has become payable, the tax imposed under chapter 32 of the Code shall not apply to such sale.


</P>
</DIV8>


<DIV7 N="153" NODE="27:2.0.1.2.6.7.153" TYPE="SUBJGRP">
<HEAD>Use by Manufacturer or Importer Considered Sale</HEAD>


<DIV8 N="§ 53.111" NODE="27:2.0.1.2.6.7.153.15" TYPE="SECTION">
<HEAD>§ 53.111   Tax on use by manufacturer, producer, or importer.</HEAD>
<P>(a) <I>In general.</I> Section 4218 of the Code imposes tax in respect of certain uses of articles by the actual manufacturer, producer, or importer thereof. This section also applies in respect of the use of articles by any other person who, pursuant to a provision of chapter 32 of the Code, is considered to be, or is treated as, the manufacturer or producer of the articles. See, for example, section 4223 of the Code relating to articles purchased tax free for use in further manufacture.
</P>
<P>(b) <I>Taxable articles in general</I>—(1) <I>Application of tax.</I> If the manufacturer, producer, or importer of an article taxable under chapter 32 of the Code uses the article for any purpose other than that indicated in paragraph (b) (3) of this section, he shall be liable for tax with respect to the use of such article in the same manner as if the article were sold by him.
</P>
<P>(2) <I>Taxable use in manufacturer of nontaxable articles</I>—(i) <I>In general.</I> In the case of an article to which paragraph (b)(1) of this section applies, tax attaches when the manufacturer, producer, or importer of the articles uses it as material in the manufacture or production of, or as a component part of, another article which is not taxable under chapter 32 of the Code, regardless of the disposition made of such other article. (See paragraph (c) of § 53.115 for computation of tax on such use.)
</P>
<P>(ii) <I>Types of use in manufacture of nontaxable articles.</I> Taxable use may consist of the incorporation of a taxable article into a nontaxable article. Taxable use may also result from the combining of a taxable article (or the components thereof) with a nontaxable article (or the components of a nontaxable article) resulting in a combination end article which itself is not taxable. Although the taxable article may not be a completely separable unit, within the contemplation of the law a taxable article has been produced and incorporated in the combination end article.
</P>
<P>(3) <I>Nontaxable use in manufacturer of taxable articles.</I> The tax on the use of an article to which paragraph (b)(1) of this section has application shall not apply if the article is used by the manufacturer, producer, or importer thereof as material in the manufacturer or production of, or as a component part of, another article taxable under chapter 32 of the Code to be manfactured or produced by him. It is immaterial what disposition is made of such other article.
</P>
<P>(c) <I>Use after lease.</I> If the manufacturer, producer, or importer of a taxable article leases such article and thereafter uses the article, he incurs liability for tax on such use as provided in these regulations to the same extent as if the article were sold after being leased. See section 4217 of the Code and the regulations thereunder in this subpart for application and computation of tax in case of leased articles.
</P>
<P>(d) <I>Time of application of tax.</I> In the case of a taxable use of an article by the manufacturer, producer, or importer thereof, the tax attaches at the time such use begins. If tax applies by reason of the sale of an article by the manufacturer, producer, or importer thereof on or in connection with his sale of another article, the tax attaches at the time of the sale of such other article.
</P>
<P>(e) <I>Exemptions because of other statutory provisions.</I> Tax does not apply on the use of an article by the manufacturer, producer, or importer thereof if under the applicable provisions of the Code the sale of the article for a similar use would not be subject to tax. Also, tax need not be paid with respect to the use of an article by the manufacturer, producer, or importer thereof if such use would qualify, under the provisions of section 6416(b) of the Code, for credit or refund of the tax paid.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.112" NODE="27:2.0.1.2.6.7.153.16" TYPE="SECTION">
<HEAD>§ 53.112   Business or personal use of articles.</HEAD>
<P>(a) <I>Business use.</I> Section 4218 of the Code applies to the use by a person, in the operation of any business in which he is engaged, of a taxable article which has been manufactured, produced, or imported by him or his agent.
</P>
<P>(b) <I>Personal use.</I> The tax on use of a taxable article does not attach in cases where an individual incidentially manufacturers, produces, or imports a taxable article for his personal use or causes a taxable article to be manufactured, produced, or imported for his personal use.


</P>
</DIV8>


<DIV8 N="§ 53.113" NODE="27:2.0.1.2.6.7.153.17" TYPE="SECTION">
<HEAD>§ 53.113   Events subsequent to taxable use of article.</HEAD>
<P>Liability for tax incurred on the use of an article is not extinguished or reduced because of any subsequent sale or lease of the article even if such sale or lease would have been exempt if the article had been so sold or leased prior to use. If a manufacturer, producer, or importer of an article incurs liability for tax on his use thereof, and thereafter sells or leases the article in a transaction which otherwise would be subject to tax, liability for tax is not incurred on such sale or lease.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.114" NODE="27:2.0.1.2.6.7.153.18" TYPE="SECTION">
<HEAD>§ 53.114   Use in further manufacture.</HEAD>
<P>For purposes of section 4218 and § 53.111, an article is used as material in the manufacture or production of, or as a component part of, another article, if it is incorporated in, or is a part or accessory of, the other article. In addition, an article is considered to be used as material in the manufacturer of another article if it is partly or entirely consumed in testing such other article; for example, shells or cartridges used in testing new firearms. Similarly, if an article is partly or wholly consumed in quality testing a production run of like articles, such article is also considered to have been used as material in the manufacture of another article. However, if a taxable article that has been used tax free and only partly consumed in testing is later sold, or put to a taxable use by the manufacturer, tax attaches to such sale or use. An article that is consumed in the manufacturing process other than in testing, so that it is not a physical part of the manufactured article, is not used as material in the manufacture or production of or as a component part of, such other article.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.115" NODE="27:2.0.1.2.6.7.153.19" TYPE="SECTION">
<HEAD>§ 53.115   Computation of tax.</HEAD>
<P>(a) <I>Tax based on price.</I> Tax liability incurred on the use of an article shall be computed on the price at which such or similar articles are sold in the ordinary course of trade by manufacturers, producers, or importers thereof and in the absence of special arrangements. For additional provisions applicable in computing the tax in the case of the use of an article by a manufacturer and producer who purchased the article free of tax under section 4221(a)(1) of the Code for use by him in further manufacture, see section 4223(b) of the Code and the regulations thereunder (§ 53.143).
</P>
<P>(b) <I>Articles regularly sold by manufacturer.</I> If the manufacturer, producer, or importer of an article regularly sells such articles at wholesale in arm's length transactions, tax liability on his use of any such article shall be computed on his lowest established wholesale price for such articles in effect at the time of the taxable use. In establishing such price, there shall be included and excluded, as applicable, the charges and readjustments specified in sections 4216(a) and 6416(b)(1) of the Code, as in effect at the time tax liability on the use of the article is incurred, and the regulations thereunder contained in this subpart and subpart L (§§ 53.91-53.94 and 53.173-53.176). If the manufacturer, producer, or importer of an article does not regularly sell such articles at wholesale in arm's length transactions, a constructive price on which the use tax shall be computed will be determined by the appropriate TTB officer. This price will be established after considering the selling practices and price structures of manfacturers, producers, and importers of similar articles.
</P>
<P>(c) <I>Articles governed by section 4218(a) used in manufacture of nontaxable combination articles.</I> If the manufacturer, producer, or importer of an article to which section 4218(a) of the Code applies does not regularly sell such article separately but uses it as material in the manufacture or production of, or as a component part of, a nontaxable combination article consisting of a taxable and nontaxable article, liability for tax on his use shall be computed on the constructive price of the taxable article at the time of use. To determine the constructive price of the taxable article in such case, the combination article is considered to be composed of:
</P>
<P>(1) Parts used exclusively in the functioning of the taxable article in the combination;
</P>
<P>(2) Parts used exclusively in the functioning of the nontaxable article in the combination, and
</P>
<P>(3) Parts, called common parts, which serve a dual function in connection with the parts in both paragraphs (c) (1) and (2) of this section.
</P>
<FP>The ratio which the cost of the parts in paragraph (c)(1) of this section bears to the sum of the cost of such parts and the parts in paragraph (c)(2) of this section is applied to the lowest established wholesale price for which like combination articles are at the time of the taxable use being sold by the manufacturer or producer in the ordinary course of trade. The resulting amount is the constructive sale price for the taxable article on which tax is to be computed. The cost of the common parts is allocable to the parts in paragraphs (c) (1) and (2) of this section in the same ratio, and, therefore, need not be taken into account in the computation since the inclusion and allocation of the cost of such parts in the determination would not result in a different ratio. In determining the lowest establishment wholesale price for the combination article, there shall be included and excluded, as applicable, the charges and readjustments specified in sections 4216(a) and 6416(b)(1) of the Code, as in effect at the time tax liability on the use of the taxable article is incurred, and the regulations thereunder contained in this subpart and subpart L of this part (§§ 53.91-53.94 and §§ 53.173-53.176). The tax applicable to the use of the article for which a constructive sale price has been computed is not affected by any charges or readjustments of the price for which the nontaxable combination article is sold, whether by reason of the return or repossession of the nontaxable article or its covering or container, or by a bona fide discount, rebate, allowance, or other factor.
</FP>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="154" NODE="27:2.0.1.2.6.7.154" TYPE="SUBJGRP">
<HEAD>Application of Tax in Case of Sales by Other Than Manufacturer or Importer</HEAD>


<DIV8 N="§ 53.121" NODE="27:2.0.1.2.6.7.154.20" TYPE="SECTION">
<HEAD>§ 53.121   Sales of taxable articles by a person other than the manufacturer, producer, or importer.</HEAD>
<P>(a) <I>General rule.</I> If the title to, or ownership of, an article taxable under chapter 32 of the Code is transferred from the manufacturer, producer, or importer thereof, and, under the law, no tax attaches to such transfer, the subsequent sale, lease, or use of such article by the transferee is subject to tax to the same extent and manner as if such transferee were the manufacturer, producer, or importer of the article. The following examples illustrate this rule:
</P>
<P>(1) The surviving spouse, child or children, executors or administrators, or other legal representatives, as the case may be, of a deceased manufacturer, producer, or importer of taxable articles, incur liability for tax on all such articles sold by them.
</P>
<P>(2) A receiver or trustee in bankruptcy who under a court order conducts or liquidates the business of a manufacturer, producer, or importer of taxable articles, incurs liability for tax on all taxable articles sold by him, regardless of whether the articles were manufactured, produced, or imported before or after he took charge of the business.
</P>
<P>(3) An assignee for the benefit of creditors of a manufacturer, producer, or importer incurs liability for tax with respect to all taxable articles sold by him as such assignee.
</P>
<P>(4) If one or more member of a partnership withdraw, or if new partners are admitted, the new partnership so constituted incurs liability for tax on all taxable articles sold by it regardless of when such articles were manufactured, produced, or imported.
</P>
<P>(5) A person who acquires title to taxable articles as a result of default of the manufacturer, producer, or importer pursuant to an agreement under the terms of which the articles were pledged as collateral incurs liability for tax with respect to his sale of the articles so acquired.
</P>
<P>(6) A person who succeeds to the business of a manufacturer, producer, or importer of taxable articles, such as:
</P>
<P>(i) A corporation which results from a consolidation, merger, or reorganization;
</P>
<P>(ii) A corporation which acquires the business of an individual or partnership; or
</P>
<P>(iii) A stockholder in a corporation who, after its dissolution, continues the business;
</P>
<FP>incurs liability for the tax on all taxable articles sold by such person. However, where a manufacturer, producer, or importer sells only his assets, rather than ownership of his business, he incurs liability for tax on the sale of any taxable articles included in such assets.
</FP>
<P>(b) <I>Transfer of title to damaged articles.</I> If title to a damaged taxable article is transferred by the manufacturer, producer, or importer thereof to a carrier or insurance company in adjustment of a damage claim, such transfer is not considered a taxable sale of the article. If the article is usable, even though damaged, the carrier or insurance company incurs liability for tax on its sale, lease, or use of the article. Where the article has been damaged to the extent that its only value is as scrap, and it is not restored to usable condition, sale thereof by the carrier or insurance company is not subject to tax.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="K" NODE="27:2.0.1.2.6.8" TYPE="SUBPART">
<HEAD>Subpart K—Exemptions, Registration, Etc.</HEAD>


<DIV8 N="§ 53.131" NODE="27:2.0.1.2.6.8.155.1" TYPE="SECTION">
<HEAD>§ 53.131   Tax-free sales; general rule.</HEAD>
<P>(a) <I>In general.</I> Section 4221(a) of the Code sets forth the following exempt purposes for which an article subject to tax under chapter 32 of the Code may be sold tax-free by the manufacturer, producer, or importer:
</P>
<P>(1) For use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by such second purchaser in further manufacture,
</P>
<P>(2) For export, or for resale by the purchaser to a second purchaser for export,
</P>
<P>(3) For use by the purchaser as supplies for vessels or aircraft,
</P>
<P>(4) To a State or local government for the exclusive use of a State or local government, and
</P>
<P>(5) To a nonprofit educational organization for its exclusive use.
</P>
<FP>Section 4221(a) of the Code applies only in those cases where the exportation or use referred to is to occur before any other use, and where the seller, first purchaser, and second purchaser, as may be appropriate, have registered as required under section 4222 of the Code and paragraph (a) of § 53.140. See paragraph (c) of this section for provisions relating to evidence required in support of tax-free sales. See § 53.141 for exceptions to the requirement for registration. Where tax is paid on the sale of an article, but the article is used or resold for use for an exempt purpose, a claim for credit or refund may be filed in accordance with and to the extent provided in sections 6402(a) and 6416 of the Code, and the regulations thereunder (§§ 53.161 and 53.171-53.186).
</FP>
<P>(b) <I>Manufacturer relieved of liability in certain cases</I>—(1) <I>General rule.</I> Under the provisions of section 4221(c) of the Code, if an article subject to tax under Chapter 32 of the Code is sold free of tax by the manufacturer of the article for an exempt purpose referred to in section 4221(c) of the Code and paragraph (b)(2) of this section, the manufacturer shall be relieved of any tax liability under chapter 32 of the Code with respect to such sale if the manufacturer in good faith accepts a proper certification by the purchaser that the article or articles will be used by the purchaser in the stated exempt manner. See paragraph (b)(2) of this section for a list of the exempt purposes referred to in section 4221(c) of the Code.
</P>
<P>(2) <I>Situations wherein section 4221(c) of the Code is applicable.</I> The following are situations wherein section 4221(c) of the Code is applicable with respect to sales made tax free on the assumption that one of the following sections of the Code provides exemption for such sales:
</P>
<P>(i) Section 4221(a)(1) of the Code, to the extent that it relates to sales for further manufacture by a first purchaser (see § 53.132),
</P>
<P>(ii) Section 4221(a)(3) of the Code, relating to supplies for vessels and aircraft (see § 53.134),
</P>
<P>(iii) Section 4221(a)(4) of the Code, relating to sales to State or local governments (see § 53.135),
</P>
<P>(iv) Section 4221(a)(5) of the Code, relating to sales to nonprofit educational organizations (see § 53.136).
</P>
<P>(3) <I>Situations wherein section 4221(c) of the Code is not applicable.</I> The relief from liability for the payment of tax provided by section 4221(c) of the Code is not applicable with respect to sales made tax free on the assumption that one of the following sections of the Code provides exemption for such sales:
</P>
<P>(i) Section 4221(a)(1) of the Code, to the extent that it relates to sales for resale to a second purchaser for use by the second purchaser in further manufacture (see § 53.132),
</P>
<P>(ii) Section 4221(a)(2) of the Code, relating to sales for export (see § 53.133).
</P>
<P>(4) <I>Duty of seller to ascertain validity of tax-free sale.</I> If the manufacturer at the time of its sale has reason to believe that the article sold by it is not intended for the exempt purpose indicated by the purchaser, or that the purchaser has failed to register as required, the manufacturer is not considered to have accepted certification from the purchaser in good faith, and is not relieved from liability under the provisions of section 4221(c) of the Code.
</P>
<P>(5) <I>Information to be furnished to purchaser.</I> A manufacturer selling articles free of tax under this section shall indicate to the purchaser that:
</P>
<P>(i) Certain articles normally subject to tax are being sold tax free, and
</P>
<P>(ii) The purchaser is obtaining those articles tax free for an exempt purpose under an exemption certificate or its equivalent.
</P>
<P>(6) The manufacturer may transmit this information by any convenient means, such as coding of sales invoices, provided that the information is presented with sufficient particularity so that the purchaser is informed that he has obtained the articles tax free and:
</P>
<P>(i) The purchaser can compute and remit the tax due if an article sold tax free for further manufacture is diverted to a taxable use,
</P>
<P>(ii) The manufacturer can remit the tax due with respect to an article purchased tax free for resale for use in further manufacture or for export if, within the 6-month period described in § 53.132(c) or § 53.133(c), the manufacturer does not receive proof that the article has been exported or resold for use in further manufacturer, or
</P>
<P>(iii) The purchaser can notify the manufacturer if an article otherwise purchased tax free is diverted to a taxable use.
</P>
<P>(c) <I>Evidence required in support of tax-free sales</I>—(1) <I>Purchasers required to be registered.</I> Every purchaser who is required to be registered (see § 53.140) shall furnish to the seller, as evidence in support of each tax-free sale made by the seller to such purchaser, the exempt purpose for which the article or articles are being purchased and the registration number of the purchaser. Such information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with each sale.
</P>
<P>(2) <I>Purchasers not required to be registered.</I> For the evidence which purchasers not required to register must furnish to the seller in support of each tax-free sale made by the seller to such purchasers, see paragraph (b) of § 53.133 for sales or resales to a foreign purchaser for export, paragraph (d) of § 53.134 for sales of supplies to vessels or aircraft, paragraph (c) of § 53.135 for sales to State and local governments, and paragraph (c) of § 53.141 for sales and purchases by the United States.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-380, 61 FR 37005, July 16, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 53.132" NODE="27:2.0.1.2.6.8.155.2" TYPE="SECTION">
<HEAD>§ 53.132   Tax-free sale of articles to be used for, or resold for, further manufacture.</HEAD>
<P>(a) <I>Further manufacture</I>—(1) <I>In general.</I> Under prescribed conditions, an article subject to tax under Chapter 32 of the Code may be sold tax free by the manufacturer, pursuant to section 4221(a)(1) of the Code, for use by the purchaser in further manufacture, or for resale by the purchaser to a second purchaser for use by the second purchaser in further manufacture. See section 4221(d) (6) of the Code and paragraph (b) of this section for the circumstances under which an article is considered to have been sold for use in further manufacture. See section 6416(b)(3) of the Code and § 53.180 for the circumstances under which credit or refund is available when tax-paid articles are used in further manufacture.
</P>
<P>(2) <I>Proof of resale for use in further manufacture.</I> See section 4221(b)(1) of the Code and paragraph (c) of this section for provisions under which the exemption provided in section 4221(a)(1) of the Code shall cease to apply in the case of an article sold by the manufacturer to a purchaser for resale to a second purchaser for use in further manufacture unless the manufacturer receives timely proof of resale for further manufacture.
</P>
<P>(b) <I>Circumstances under which an article is considered to have been sold for use in further manufacture.</I> (1) For purposes of the exemption from the manufacturers excise tax provided by section 4221(a)(1) of the Code, an article shall be treated as sold for use in further manufacture if the article is sold for use by the purchaser as material in the manufacture or production of, or as a component part of, another article taxable under chapter 32 of the Code;
</P>
<P>(2) An article is used as material in the manufacture or production of, or as a component of, another article if it is incorporated in, or is a part or accessory of, the other article when the other article is sold by the manufacturer. In addition, an article is considered to be used as material in the manufacture of another article if it is consumed in whole or in part in testing such other article; for example, shells or cartridges that are used by the manufacturer of firearms to test new firearms. However, an article that is consumed in the manufacturing process other than in testing, so that it is not a physical part of the manufactured article, is not considered to have been used as material in the manufacture of, or as a component part of, another article.
</P>
<P>(c) <I>Proof of resale for further manufacture</I>—(1) <I>Cessation of exemption.</I> The exemption provided in section 4221(a)(1) of the Code and described in paragraph (a) of this section in respect of an article sold by the manufacturer to a purchaser for resale to a second purchaser for use by the second purchaser in further manufacture shall cease to apply on the first day following the close of the 6-month period which begins on the date of the sale of such article by the manufacturer, or the date of shipment of the article by the manufacturer, whichever is earlier, unless, within such 6-month period, the manufacturer receives proof, in the form prescribed by paragraph (c)(2) of this section, that the article was actually resold by the purchaser to a second purchaser for such use. If, on the first day following the close of the 6-month period, such proof has not been received, the manufacturer shall become liable for tax at that time at the rate in effect when the sale was made but otherwise in the same manner as if the article had been sold by it on such first day at a taxable price equivalent to that at which the article was actually sold. If the manufacturer later obtains such proof, it may file a claim for refund or credit of this tax. The payment of this tax by the manufacturer is not considered an overpayment by the subsequent manufacturer or producer for which the subsequent manufacturer or producer is entitled to a credit or refund under section 6416(b)(3) of the Code. See section 4221(d)(6) of the Code and paragraph (b) of this section for the circumstances under which an article is considered to have been sold for use in further manufacture.
</P>
<P>(2) <I>Proof of resale</I>—(i) <I>Certificate of purchaser.</I> The proof of resale to be received by the manufacturer, as required under section 4221(b)(1) of the Code, may consist of either a copy of the invoice of the manufacturer's vendee directed to his purchaser which discloses the certificate of registry number held by each party or a statement described in this paragraph. In the case of an invoice of manufacturer's vendee, it must appear from such invoice (or by statement attached thereto) that the article was in fact resold for use in further manufacture. In lieu of such an invoice, proof of resale may consist of a statement, executed and signed by the manufacturer's vendee which includes the following:
</P>
<P>(A) Date statement was executed.
</P>
<P>(B) Name and address of manufacturer's vendee (if other than the person executing statement).
</P>
<P>(C) Certificate of registry number held by vendee.
</P>
<P>(D) Specify article(s) purchased tax-free, by whom purchased, certificate of registry number of second purchaser, date of purchase(s), whether articles were purchased as material in the manufacture or production of, or as a component part or parts of, an article or articles taxable under Chapter 32 of the Code.
</P>
<P>(E) Statement that person executing statement or manufacturer's vendee possesses proof of tax-free resale of the article(s) in the form of purchase orders and sales invoices and identifying the person who will maintain custody of such proof for 3 years from the date of the statement and will make such proof available for inspection by TTB during such 3 year period.
</P>
<P>(F) Statement that a previous statement has not been executed in respect of such certificate of resale and that the person signing the statement is aware that fraudulent use of the statement may subject the person signing the statement and all parties making fraudulent use of the statement to all applicable criminal penalties under the Code.
</P>
<P>(G) Name, signature, and title of individual executing statement.
</P>
<P>(ii) <I>Period covered.</I> Any statement executed and signed by the manufacturer's vendee, as provided in paragraph (c)(2)(i) of this section, may be executed with respect to any one or more articles purchased tax free from a manufacturer and resold for use in further manufacture within the 6-month period prescribed in section 4221(a)(1) of the Code and paragraph (c)(1) of this section. Such statement (or other prescribed proof of resale) must be retained for inspection by the appropriate TTB officer as provided in section 6001 of the Code.
</P>
<P>(iii) <I>TTB F 5600.37.</I> A preprinted statement, TTB F 5600.37, Statement of Manufacturer's Vendee, which is available as provided in § 53.21(b), when completed, contains all necessary information for a properly executed statement. Extra copies of TTB F 5600.37 may be reproduced as needed.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-380, 61 FR 37005, July 16, 1996; T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 53.133" NODE="27:2.0.1.2.6.8.155.3" TYPE="SECTION">
<HEAD>§ 53.133   Tax-free sale of articles for export, or for resale by the purchaser to a second purchaser for export.</HEAD>
<P>(a) <I>In general.</I> (1) An article subject to tax under chapter 32 of the Code may be sold tax free by the manufacturer, pursuant to section 4221(a)(2) of the Code and this section, for export, or for resale by the purchaser to a second purchaser for export. See § 53.11 for the meaning of the term “exportation”. An article may be sold tax free by the manufacturer under the provisions of this section only if the person to whom the manufacturer sells the article intends either to export the article or to resell it to a person who intends to export it. An article may not be sold tax free under the provisions of this section by a manufacturer to a purchaser for resale to a second purchaser which does not intend to export the article itself but plans to resell it to a third purchaser for export. See section 6416(b)(2)(A) of the Code and § 53.177 for the circumstances under which credit or refund of tax is available where tax-paid articles are exported from the United States.
</P>
<P>(2) If an article, otherwise taxable under chapter 32 of the Code:
</P>
<P>(i) Is sold tax free by the manufacturer pursuant to section 4221(a)(2) of the Code and this section, and
</P>
<P>(ii) Is returned subsequently to the United States in an unused and undamaged condition,
</P>
<FP>then the importer is liable for the tax imposed by chapter 32 of the Code on the subsequent sale or use of the article in the United States. The provisions of this paragraph (a)(2) of this section may be illustrated by the following examples:
</FP>
<EXAMPLE>
<HED>Example (1).</HED><PSPACE>Q, a U.S. manufacturer of shells and cartridges, previously sold shells and cartridges to R, a company in Canada. The sale was tax free under section 4221(a)(2). Prior to use, R sold the shells and cartridges to S, who imports the articles into the United States and sells them. The sale of the shells and cartridges subjects S to an excise tax liability under section 4181.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example (2).</HED><PSPACE>X, a U.S. firearms manufacturer, sold a rifle to Y company in France. The sale was tax free under section 4221(a)(2). The rifle was sold by Y to W, an individual in the City of Nice, France. After initial use, W resold the rifle to X. X returned the rifle to the United States where it was resold. The resale of the rifle by X does not subject X to an excise tax liability under section 4181.</PSPACE></EXAMPLE>
<P>(b) <I>Sales or resales to a foreign purchaser for export.</I> In the case of sales or resales to a foreign purchaser for export, if the first or the second purchaser is located in a foreign country or possession of the United States, such purchaser is not required to register as provided in section 4222(a) of the Code and § 53.140. To establish the right to sell articles tax free for export to a purchaser who is not registered and who is located in a foreign country or a possession of the United States, the manufacturer must obtain from such purchaser at the time title to the article passes or at the time of shipment, whichever is earlier, either:
</P>
<P>(1) A written order or contract of sale showing that the manufacturer is to ship the article to a foreign destination; or
</P>
<P>(2) Where delivery by the manufacturer is to be made within the United States, a statement from the purchaser showing:
</P>
<P>(i) That the article is purchased either to fill existing or future orders for delivery to a foreign destination or for resale to another person engaged in the business of exporting who will export the article, and
</P>
<P>(ii) That such article will be transported to its foreign destination in due course prior to use or further manufacture and prior to any resale except for export. See section 4221(b) of the Code and paragraphs (c) and (d) of this section for requirements as to timely proof of exportation and cessation of the exemption for export unless the evidence to show actual exportation has been received by the manufacturer.
</P>
<P>(c) <I>Cessation of exemption.</I> The exemption provided in section 4221(a)(2) of the Code and paragraph (a) of this section for an article sold by the manufacturer for export or for resale by the purchaser to a second purchaser for export shall cease to apply on the first day following the close of the 6-month period which begins on the date of the sale of the article by the manufacturer, or the date of shipment of the article by the manufacturer, whichever is earlier, unless within the 6-month period the manufacturer receives proof, in the form prescribed by paragraph (d) of this section, that the article was actually exported. If, on the first day following the close of the 6-month period, the proof has not been received, the manufacturer shall become liable for tax at that time at the rate in effect when the sale was made but otherwise in the same manner as if the article had been sold by it on such first day at a taxable price equivalent to that at which the article was actually sold.
</P>
<P>(d) <I>Proof of exportation.</I> (1) Exportation may be evidenced by:
</P>
<P>(i) A copy of the export bill of lading issued by the delivering carrier,
</P>
<P>(ii) A certificate by the agent or representative of the export carrier showing actual exportation of the article,
</P>
<P>(iii) A certificate of landing signed by a customs officer of the foreign country to which the article is exported,
</P>
<P>(iv) Where the foreign country has no customs administration, a statement of the foreign consignee showing receipt of the article, or
</P>
<P>(v) Where a department or agency of the United States Government is unable to furnish any one of the foregoing four types of proof of exportation, a statement or certification on the department or agency stationery, executed by an authorized officer, that the listed or identified articles have, in fact, been exported.
</P>
<P>(2) In any case where the manufacturer is not the exporter, the manufacturer must have in its possession a statement from the vendee to whom the manufacturer sold the article stating the following:
</P>
<P>(i) Date statement was executed.
</P>
<P>(ii) Name and address of manufacturer's vendee (if other than the person executing statement).
</P>
<P>(iii) Certificate of registry number held by vendee.
</P>
<P>(iv) Specify article(s) purchased tax-free, by whom purchased, and date of purchase.
</P>
<P>(v) Statement that article(s) was either exported in due course by the vendee or was sold to another person who in due course exported the article(s).
</P>
<P>(vi) Name and address of vendee who will maintain possession of the proof of exportation documents, description of the documents, and statement that vendee will maintain documents for 3 years and make them available to TTB for inspection.
</P>
<P>(vii) Statement that a previous statement has not been executed in respect of the articles covered by this statement and that fraudulent use of this statement may subject person executing statement and all parties making fraudulent use of statement to all applicable criminal penalties under the Code.
</P>
<P>(viii) Name, signature, title, and address of individual executing certificate.
</P>
<P>(3) The statement executed and signed by the manufacturer's vendee, as provided in paragraph (d)(2) of this section, may be executed with respect to any one or more articles purchased tax free from a manufacturer and exported within the 6-month period prescribed in section 4221(b)(2) of the Code and paragraph (c) of this section. Such statement shall be kept for inspection by the appropriate TTB officer as provided in section 6001 of the Code.
</P>
<P>(4) <I>TTB F 5600.36.</I> A preprinted statement, TTB F 5600.36, Statement of Manufacturer's Vendee, which is available as provided in § 53.21(b), when completed, contains all necessary information for a properly executed statement. Extra copies of TTB F 5600.36 may be reproduced as needed.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-380, 61 FR 37006, July 16, 1996; T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 53.134" NODE="27:2.0.1.2.6.8.155.4" TYPE="SECTION">
<HEAD>§ 53.134   Tax-free sale of articles for use by the purchaser as supplies for vessels or aircraft.</HEAD>
<P>(a) <I>Supplies for vessels or aircraft</I>—(1) <I>In general.</I> An article subject to tax under chapter 32 of the Code may be sold tax free by the manufacturer, pursuant to section 4221(a)(3) of the Code and this section, for use by the purchaser as supplies for vessels or aircraft. See paragraph (b) of this section for the meaning of the term “supplies for vessels or aircraft.” An article may be sold tax free under the provisions of this section only in those cases where the sale of an article by the manufacturer is made directly to the owner, officer, charterer, or authorized agent of a vessel or aircraft for use as supplies for the vessel or aircraft. No sale may be made tax free to a dealer for resale for use as supplies for vessels or aircraft, even though it is known at the time of sale by the manufacturer that the article will be so resold. See section 6416(b)(2)(B) of the Code and paragraph (c) of § 53.178 for circumstances under which credit or refund of tax is available where tax-paid articles are used, or sold for use, as supplies for vessels or aircraft. An article may not be sold tax free under the provisions of this section by the manufacturer to passengers or members of the crew of a vessel or aircraft.
</P>
<P>(2) <I>Civil aircraft of foreign registry.</I> In the case of any article sold by the manufacturer for use by the purchaser as supplies for civil aircraft of foreign registry employed in foreign trade or in trade between the United States and any of its possessions, the provisions of this paragraph apply only if the reciprocity requirements of section 4221(e)(1) of the Code are met. See paragraph (c) of this section.
</P>
<P>(b) <I>Meaning of terms</I>—(1) <I>Supplies for vessels or aircraft.</I> The term “supplies for vessels or aircraft” means fuel supplies, ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or of any foreign nation, vessels employed in the fisheries or in the whaling business, or vessels actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions.
</P>
<P>(2) <I>Fuel supplies, ships' stores, and legitimate equipment.</I> The terms “fuel supplies”, “ships' stores”, and “legitimate equipment” include all articles, materials, supplies, and equipment necessary for the navigation, propulsion, and upkeep of vessels of war of the United States or of any foreign nation, vessels employed in the fisheries or in the whaling business, or vessels actually engaged in foreign trade or in trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions, even though such vessels may make intermediate stops in the United States. The term does not include supplies for vessels engaged in trade:
</P>
<P>(i) Between domestic ports in the Atlantic Ocean and the Gulf of Mexico,
</P>
<P>(ii) Between domestic ports on the Pacific Ocean,
</P>
<P>(iii) Between domestic ports on the Great Lakes, or
</P>
<P>(iv) On the inland waterways of the United States.
</P>
<P>(3) <I>Sea stores.</I> The term <I>sea stores</I> includes any article purchased for use or consumption by the passengers or crew, or both, of a vessel during its voyage.
</P>
<P>(4) <I>Vessel.</I> The term <I>vessel</I> includes:
</P>
<P>(i) Every description of watercraft or other contrivance used, or capable of being used, as a means of transportation on water,
</P>
<P>(ii) Civil aircraft registered in the United States and employed in foreign trade or in trade between the United States and any of its possessions, and
</P>
<P>(iii) Civil aircraft registered in a foreign country and employed in foreign trade or trade between the U.S. and its possessions.
</P>
<P>(5) <I>Vessels of war of the United States or of any foreign nation.</I> The term <I>vessels of war of the United States or of any foreign nation</I> includes:
</P>
<P>(i) Every description of watercraft or other contrivance used, or capable of being used, as a means of transportation on water and constituting equipment of the armed forces (including the U.S. Coast Guard and U.S. National Guard) of the United States or of a foreign nation, and
</P>
<P>(ii) Aircraft owned by the United States or by any foreign nation and constituting equipment of the armed forces thereof.
</P>
<P>(iii) For purposes of this section, vessels or aircraft owned by armed forces are not considered to be equipment of such armed forces while on lease or loan to an organization that is not part of the armed forces.
</P>
<P>(6) <I>Vessels used in fisheries or whaling business.</I> The exemption provided by section 4221(a)(3) of the Code and paragraph (a) of this section in the case of articles sold for the prescribed use on vessels employed in the fisheries or whaling business is limited to articles sold by the manufacturer for such use on vessels while employed, and to the extent employed, exclusively in the fisheries or in the whaling business. For purposes of this section, vessels engaged in sport fishing are not considered to be employed in the fisheries business.
</P>
<P>(7) <I>Civil aircraft.</I> The exemption provided by section 4221(a)(3) of the Code and paragraph (a) of this section relating to supplies for vessels or aircraft, with respect to civil aircraft, extends only to civil aircraft when employed in foreign trade, or in trade between the United States and any of its possessions. Sales of supplies to civil aircraft when engaged in trade between the Atlantic and the Pacific ports of the United States are not exempt from the tax imposed under chapter 32 of the Code. See section 4221(e)(1) of the Code and paragraph (c) of this section for requirement of reciprocal exemption in the case of a civil aircraft registered in a foreign country.
</P>
<P>(8) <I>Trade.</I> The term “trade” includes the transportation of persons or property for hire and the making of the necessary preparations for such transportation. The term “trade” also includes the transportation of property on a vessel or aircraft owned or chartered by the owner of the property in connection with the purchase, sale, or exchange of the property in a commercial business operation. However, a vessel owned or chartered by a company and used in the transportation of personnel or property of such company to or from its business properties located in a foreign country, or in a possession of the United States, is not engaged in “trade”.
</P>
<P>(c) <I>Reciprocity required in the case of civil aircraft.</I> The exemption provided by section 4221(a)(3) of the Code and paragraph (a) of this section with respect to the sales of supplies for civil aircraft registered in a foreign country is further limited in that the privilege of exemption may be granted only if the Secretary of Commerce advises the Secretary of the Treasury that the foreign country allows, or will allow, substantially the same reciprocal privileges. If a foreign country discontinues the allowance of such substantially reciprocal exemption, the exemption allowed by the United States will not apply after the Secretary of the Treasury is notified by the Secretary of Commerce of the discontinuance of the exemption allowed by the foreign country.
</P>
<P>(d) <I>Evidence required to establish</I>—(1) <I>In general.</I> The exemption provided in section 4221(a)(3) of the Code and paragraph (a) of this section for articles sold for use by the purchaser as supplies for vessels or aircraft applies only:
</P>
<P>(i) If both the manufacturer and purchaser are registered under the provisions of section 4222 of the Code, or
</P>
<P>(ii) The purchaser or both the manufacturer and the purchaser are not registered but have satisfied the provisions of paragraph (d)(2) of this section.
</P>
<FP>See paragraph (c) of § 53.131 for the evidence required to establish exemption where the purchaser is registered pursuant to section 4222 of the Code and § 53.140.
</FP>
<P>(2) <I>Exemption certificates for use in support of tax-free sales of supplies for vessels and aircraft.</I> (i) In order to establish exemption from tax under section 4221(a)(3) of the Code in those instances where the purchaser or both the manufacturer and purchaser are not registered under section 4222 of the Code, the manufacturer must obtain (prior to or at the time of the sale) from the owner, charterer, or authorized agent of the vessel or aircraft and retain in the manufacturer's possession a properly executed exemption certificate in the form prescribed by paragraph (d)(2)(iii) of this section. If articles are sold tax-free for use as supplies for civil aircraft employed in foreign trade or in trade between the United States and any of its possessions, the exemption certificate must show the name of the country in which the aircraft is registered.
</P>
<P>(ii) Where only occasional sales of articles are made to a purchaser for use as supplies for vessels or aircraft, a separate exemption certificate shall be furnished for each order. However, where sales are regularly or frequently made to a purchaser for such exempt use, a certificate covering all orders for a specified period not to exceed 12 calendar quarters will be acceptable. Such certificates and proper records of invoices, orders, etc., relative to tax-free sales must be kept for inspection by the appropriate TTB officer as provided in section 6001 of the Code.
</P>
<P>(iii) <I>Acceptable form of exemption certificate.</I> A certificate of exemption to support tax-free sales under this section must include the following:
</P>
<P>(A) Name of owner, charterer, or authorized agent.
</P>
<P>(B) Name of company and vessel.
</P>
<P>(C) List article(s) covered by the certificate or beginning and ending dates during which orders will be placed (not to exceed 12 calendar quarters).
</P>
<P>(D) Statement that articles will be used only for fuel supplies, ships' stores, sea stores, or legitimate equipment on a vessel belonging to one of the class of vessels to which section 4221 of the Code applies. Identify class of vessel certificate covers (see paragraphs (a) and (b) of this section).
</P>
<P>(E) If articles are purchased for use on civil aircraft engaged in foreign trade or trade between the United States and any of its possessions, state the country in which the aircraft is registered.
</P>
<P>(F) Statement that it is understood that if any articles are used for any purpose other than as stated in the certificate, or are resold or otherwise disposed of, the person executing the certificate must notify the manufacturer.
</P>
<P>(G) Statement that the certificate shall not be used to purchase tax-free articles for use as supplies, etc. on pleasure vessels or any type of aircraft except:
</P>
<P>(<I>1</I>) Civil aircraft employed in foreign trade or trade between the United States and any of its possessions;
</P>
<P>(<I>2</I>) Aircraft owned by the United States or any foreign country and constituting a part of the armed forces thereof.
</P>
<P>(H) Statement that it is understood that any fraudulent use of the certificate may subject person executing certificate and all parties making fraudulent use of the certificate to all applicable criminal penalties under the Code.
</P>
<P>(I) Statement that person executing certificate is prepared to establish by satisfactory evidence the purpose for which the article(s) was used.
</P>
<P>(J) Date, name, signature, and address of person executing the certificate.
</P>
<P>(iv) <I>TTB F 5600.34.</I> A preprinted certificate, TTB F 5600.34, Exemption Certificate, which is available as provided in § 53.21(b), when completed, contains all necessary information for a properly executed certificate. Extra copies of TTB F 5600.34 may be reproduced as needed.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-380, 61 FR 37006, July 16, 1996; T.D. TTB-44, 71 FR 16957, Apr. 4, 2006; T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 53.135" NODE="27:2.0.1.2.6.8.155.5" TYPE="SECTION">
<HEAD>§ 53.135   Tax-free sale of articles to State and local governments for their exclusive use.</HEAD>
<P>(a) <I>In general.</I> An article subject to tax under Chapter 32 of the Code may be sold tax free by the manufacturer, pursuant to section 4221(a)(4) of the code and this section, to a State or local government for the exclusive use of such State or local government. See paragraph (b) of this section for the meaning of the term “State or local government”. An article may be sold tax free by the manufacturer under this paragraph only in those cases where the sale is made directly to a State or local government for its exclusive use. Accordingly, no sale may be made tax free to a dealer for resale to a State or local government for its exclusive use, even though it is known at the time of sale by the manufacturer that the article will be so resold. A sale of an article to a State or local government for resale is not considered to be a sale for the “exclusive use” of the State or local government, within the meaning of section 4221(a)(4) of the Code, and, therefore, such sales may not be made tax free. Such sales are not exempt regardless of whether the resales are made to government employees, or the fact that the article is an item of equipment the employee is required to possess in carrying out his duties. For example, pistols or revolvers may not be sold tax free to a State or local government for resale to its police officers. See section 6416(b)(2)(C) of the Code, and paragraph (d) of § 53.178, for the circumstances under which credit or refund of tax is available where tax-paid articles are sold for the exclusive use of a State or local government.
</P>
<P>(b) <I>State or local government.</I> The term <I>State or local government</I> includes any State, the District of Columbia, and any political subdivision of any of the foregoing. <I>See,</I> section 7871(a)(2)(B) of the Code and 26 CFR 305.7701-1 <I>et seq.,</I> which provide that an Indian tribal government shall be treated as a State for purposes of exemption from an excise tax imposed by chapter 32. Section 7871(b) of the Code provides that the exemption from tax applies only if the transaction involves the exercise of an essential governmental function of the Indian tribal government.
</P>
<P>(c) <I>Evidence required in support of tax-free sales to State or local governments.</I> (1) In the case of a State or local government which is registered (see § 53.141 for provisions under which a State or local government may register if it so desires), the provisions of paragraph (c) of § 53.131 have application as to the evidence required in support of tax-free sales. If a State or local government is not registered, the evidence required in support of a tax-free sale to the State or local government shall, except as provided in paragraph (c)(2) of this section, consist of a certificate, executed and signed by an officer or employee authorized by the State or local government to execute and sign the certificate. If it is impracticable to furnish a separate certificate for each order or contract because of frequency of purchases, a certificate covering all orders between given dates (such period not to exceed 12 calendar quarters) will be acceptable. The certificates and proper records of invoices, orders, etc., relative to tax-free sales must be retained by the manufacturer as provided in § 53.24(d). A certificate of exemption to support tax-free sales under this section must contain the following:
</P>
<P>(i) Title of official executing certificate, branch of government, date executed, and statement that official is authorized to execute certificate.
</P>
<P>(ii) List articles covered by the certificate or beginning and ending dates during which orders will be placed by the purchaser (period not to exceed 12 calendar quarters).
</P>
<P>(iii) Name of manufacturer from which articles purchased.
</P>
<P>(iv) Governmental unit purchasing articles.
</P>
<P>(v) Statement that is understood that articles purchased under this certificate of exemption are limited to use exclusively by the purchasing governmental entity.
</P>
<P>(vi) Statement that is understood that any fraudulent use of this certificate may subject the person executing the certificate and all parties making fraudulent use of the certificate to all applicable criminal penalties under the Code.
</P>
<P>(vii) Name, address, and signature of person executing the certificate.
</P>
<P>(2) A purchase order, provided that all of the information required by paragraph (c)(1) of this section is included therein, is acceptable in lieu of a separate exemption certificate.
</P>
<P>(3) <I>TTB F 5600.35.</I> A preprinted certificate, TTB F 5600.35, Exemption Certificate, which is available as provided in § 53.21(b), when completed, contains all necessary information for a properly executed certificate. Extra copies of TTB F 5600.35 may be reproduced as needed.
</P>
<P>(d) <I>Resale of articles purchased tax free by a State or local government.</I> If articles purchased tax free for the exclusive use of a State or local government (whether on the basis of a registration number or an exemption certificate) are, prior to use by the State or local government, resold under circumstances that do not amount to an exclusive use by the State or local government (such as pistols or revolvers that are resold by a police department to its police officers), the parties responsible in the State or local government are required to inform the manufacturer, producer, or importer from whom the articles were purchased that they were disposed of in a manner that did not amount to an exclusive use by the State or local government. A willful failure to supply the manufacturer, producer, or importer with the information required by this subparagraph will subject responsible parties to the penalties provided by section 7203 of the Code.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-380, 61 FR 37006, July 16, 1996; T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 53.136" NODE="27:2.0.1.2.6.8.155.6" TYPE="SECTION">
<HEAD>§ 53.136   Tax-free sales of articles to nonprofit educational organizations.</HEAD>
<P>(a) <I>In general.</I> An article subject to tax under chapter 32 of the Code may be sold tax free by the manufacturer, pursuant to section 4221(a)(5) of the Code and this section, to a nonprofit educational organization for its exclusive use. See paragraph (b) of this section for the meaning of the term “nonprofit educational organization”. An article may be sold tax free by the manufacturer under this paragraph only in those cases where the sale of an article by the manufacturer is made directly to a nonprofit educational organization for its exclusive use. Accordingly, no sale may be made tax free to a dealer for resale to a nonprofit educational organization for its exclusive use even though it is known at the time of sale by the manufacturer that the article will be so resold. See section 6416(b)(2)(D) of the Code, and paragraph (e) of § 53.178, for the circumstances under which credit or refund of tax is available where tax-paid articles are sold for the exclusive use of a nonprofit educational organization.
</P>
<P>(b) <I>Nonprofit educational organization.</I> The term “nonprofit educational organization” means an organization described in section 170(b)(1)(A)(ii) of the Code that is exempt from income tax under section 501(a) of the Code. Section 170(b)(1)(A)(ii) describes an “educational organization” as one that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. The term also includes a school operated as an activity of an organization described in section 501(c)(3) of the Code which is exempt from income tax under section 501(a) of the Code, provided the primary function of such school is the presentation of formal instruction and provided such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.
</P>
<P>(c) <I>Evidence required in support of tax-free sales to nonprofit educational organizations.</I> Every nonprofit educational organization purchasing tax free under section 4221(a)(5) of the Code must furnish the following information to the seller:
</P>
<P>(1) The tax exempt purpose for which the article or articles are being purchased, and
</P>
<P>(2) Its registration number. Such information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with each sale “except that a single notification containing the information described in this paragraph may cover all sales by the seller to the purchaser made during a designated period not to exceed 12 successive calendar quarters.”. See paragraph (c) of § 53.131 for the evidence required to establish exemption.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-447, 66 FR 19088, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§§ 53.137-53.139" NODE="27:2.0.1.2.6.8.155.7" TYPE="SECTION">
<HEAD>§§ 53.137-53.139   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 53.140" NODE="27:2.0.1.2.6.8.155.8" TYPE="SECTION">
<HEAD>§ 53.140   Registration.</HEAD>
<P>(a) <I>General rule.</I> Except as provided in § 53.141, tax-free sales under section 4221 of the Code may be made only if the manufacturer, first purchaser, and second purchaser, as the case may be, have registered as required by this section. To secure a Certificate of Registry, the applicant must furnish the information required in paragraph (b) of this section.
</P>
<P>(b) <I>Information to be submitted.</I> Except as provided in § 53.141, any person who is eligible to sell or purchase articles free of a tax imposed by section 4181 of the Code and who has not registered with the Commissioner of the Internal Revenue Service prior to January 1, 1991 or with TTB in accordance with the provisions of this section shall, prior to making a tax-free sale or purchase, file TTB Form 5300.28, in duplicate, executed in accordance with the instructions contained on the reverse of TTB Form 5300.28. The person who receives an approved Certificate of Registry shall be considered to be registered for purposes of selling or purchasing articles tax free as provided in this section. In the case of a nonprofit educational organization, information shall be furnished showing that the organization is an educational organization described in section 170(b)(1)(A)(ii) of the Code that is exempt from income tax under section 501(a) of the Code, or is a school operated as an activity of an organization described in section 501(c)(3) that is exempt from income tax under section 501(a).
</P>
<P>(c) <I>Evidence required in support of tax-free sales.</I> See § 53.131(c)(1) for evidence required in support of tax-free sales to purchasers who are required to be registered.
</P>
<P>(d) <I>Failure to register.</I> If either the seller or purchaser is not registered as required by this section of the regulations, tax-free sales may not be made, except as indicated in § 53.141.
</P>
<P>(e) <I>Cross references.</I> (1) For exceptions to the requirement for registration, see section 4222(b) of the Code and § 53.141.
</P>
<P>(2) For revocation or suspension of registration, see § 53.142.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by ATF-447, 66 FR 19088, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 53.141" NODE="27:2.0.1.2.6.8.155.9" TYPE="SECTION">
<HEAD>§ 53.141   Exceptions to the requirement for registration.</HEAD>
<P>(a) <I>State and local governments.</I> (1) A State or local government purchasing articles direct from the manufacturer for its exclusive use may, but is not required to, register as provided in § 53.140. To establish the right to sell articles tax free to a State or local government that is not registered, the manufacturer must obtain from an authorized official of the State or local government and retain in the manufacturer's possession either a properly executed exemption certificate, or a purchase order that contains the same information required to be furnished in an exemption certificate. See § 53.135(c) for the information necessary to substantiate a tax-free sale under such circumstances.
</P>
<P>(2) Each State requesting registration will be assigned one Certificate of Registry. The registration number shown on this certificate may be used by all agencies, boards, and commissions of the State that are authorized by the State to make purchases for the exclusive use of the State. However, the registration number assigned to a State may not be used by any political subdivision of that State, such as a county or municipality. Each political subdivision of a State desiring to obtain a Certificate of Registry must obtain a separate registration number.
</P>
<P>(b) <I>Sales or resales to foreign purchasers for export.</I> Persons whose principal place of business is not within the United States may, but are not required to, register in order to purchase articles tax free for export. To establish the right to sell articles tax free for export to a purchaser who is not registered and who is located in a foreign country or a possession of the United States, the manufacturer must obtain the evidence required by § 53.133(b).
</P>
<P>(c) <I>United States.</I> The registration requirements of the regulations in this part do not apply to purchases and sales by the United States or any of its agencies or instrumentalities. The evidence required in support of such tax-free purchases and sales is a notation on the purchase order or other document furnished to the seller clearly indicating that the article or articles are being purchased tax free as authorized by chapter 32 of the Code.
</P>
<P>(d) <I>Supplies for vessels and aircraft.</I> An article subject to an excise tax imposed by chapter 32 of the Code may be sold tax free by the manufacturer under the provisions of § 53.134 for use by the purchaser as supplies for a vessel or aircraft if both the manufacturer and the purchaser are registered under the provisions of § 53.140. The article also may be sold tax free for such use even though neither the manufacturer nor the purchaser is so registered if the provisions of paragraph (d) of § 53.134 are satisfied.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.142" NODE="27:2.0.1.2.6.8.155.10" TYPE="SECTION">
<HEAD>§ 53.142   Denial, revocation or suspension of registration.</HEAD>
<P>(a) The appropriate TTB officer is authorized to deny, revoke or temporarily suspend, upon written notice, the registration of any person and the right of such person to sell or purchase articles tax free under section 4221 of the Code in any case in which he finds that:
</P>
<P>(1) The registrant is not a bona fide manufacturer, or a purchaser reselling direct to manufacturers or exporters;
</P>
<P>(2) The registrant is for some other reason not eligible under these regulations to retain a Certificate of Registry; or
</P>
<P>(3) The registrant has used his registration to avoid payment of the tax imposed by section 4181 of the Code, or to postpone or interfere in any manner with the collection of such tax;
</P>
<P>(4) Such denial, revocation, or suspension is necessary to protect the revenue; or
</P>
<P>(5) The registrant failed to comply with the requirements of paragraph (c) of § 53.140, relating to the evidence required to support a tax-free sale.
</P>
<P>(b) The denial, revocation, or suspension of registration is in addition to any other penalty that may apply under the law for any act or failure to act.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-365, 60 FR 33671, June 28, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 53.143" NODE="27:2.0.1.2.6.8.155.11" TYPE="SECTION">
<HEAD>§ 53.143   Special rules relating to further manufacture.</HEAD>
<P>(a) <I>Purchasing manufacturer to be treated as the manufacturer.</I> For purposes of Chapter 32 of the Code, a manufacturer or producer to whom an article is sold or resold tax free under section 4221(a)(1) of the Code for use by it in further manufacture shall be treated as the manufacturer or producer of such article. If a manufacturer who purchases an article tax free for further manufacture does not use the article for further manufacture, the sale of the article by it, or its use of the article other than in further manufacture, shall, for purposes of the taxes imposed by chapter 32 of the Code, be treated as a sale or use of the article by the manufacturer thereof. See paragraphs (b) and (c) of this section for determination of taxable sale price where an article purchased tax free for further manufacture is resold, or used other than in further manufacture.
</P>
<P>(b) <I>Computation of tax.</I> Except as provided in paragraph (c) of this section, the tax liability referred to in paragraph (a) of this section shall be based on the price for which the article was sold by the purchasing manufacturer, or, where the manufacturer uses the article for a purpose other than that for which it was purchased, the tax shall be based on the price at which such or similar articles are sold, in the ordinary course of trade, by manufacturers, producers, or importers thereof. See section 4218(e) of the Code and § 53.115.
</P>
<P>(c) <I>Election.</I> (1) Instead of computing the tax as described under paragraph (b) of this section, the purchasing manufacturer who has incurred liability for tax on its sale or use of an article as provided by paragraph (a) of this section may compute the tax incurred under chapter 32 of the Code by using as the tax base either the price for which the article was sold to it by the first purchaser, if any, or the price for which such article was sold by the actual manufacturer, producer, or importer of such article. The purchasing manufacturer must have in its possession information upon which to substantiate such basis for tax. For purposes of this paragraph, the price for which the article was sold by the actual manufacturer or by the first purchaser shall be determined as provided in section 4216 of the Code and §§ 53.91-53.102. However, such price shall not be adjusted for any discount, rebate, allowance, return, or repossession of a container or covering, or otherwise.
</P>
<P>(2) The election under this paragraph shall be in the form of a statement attached to the return reporting the tax applicable to the sale or use of the article which gave rise to such tax liability. Such election, once made, may not be revoked.


</P>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:2.0.1.2.6.9" TYPE="SUBPART">
<HEAD>Subpart L—Refunds and Other Administrative Provisions of Special Application to Manufacturers Taxes</HEAD>


<DIV8 N="§ 53.151" NODE="27:2.0.1.2.6.9.155.1" TYPE="SECTION">
<HEAD>§ 53.151   Returns.</HEAD>
<P>(a) <I>In general.</I> (1) Liability for tax imposed under chapter 32 of the Code shall be reported on TTB Form 5300.26, Federal Firearms and Ammunition Excise Tax Return. Except as provided in paragraphs (a)(2) and (b) of this section, a return on Form 5300.26 shall be filed for a period of one calendar quarter.
</P>
<P>(2) <I>Return periods after September 30, 1992.</I> For return periods after September 30, 1992, every person required to make a return on TTB Form 5300.26 who does not incur any firearms and ammunition excise tax liability in a given calendar quarter shall not be required to file a return on TTB Form 5300.26 for that calendar quarter. Except as provided in paragraph (a)(5) of this section, every person required to make a return on TTB Form 5300.26 who does not incur any firearms and ammunition excise tax liability for the entire calendar year and who has not filed a final return in accordance with § 53.152 shall file an annual return on TTB Form 5300.26.
</P>
<P>(3) <I>Return periods prior to October 1, 1992.</I> For return periods prior to October 1, 1992, every person required to make a return on TTB Form 5300.26 shall make a return for each calendar quarter (whether or not liability was incurred for any tax reportable on the return for the return period) until the person has filed a final return in accordance with § 53.152.
</P>
<P>(4) <I>Forms, etc.</I> Each return required under the regulations in this part, together with any prescribed copies, records, or supporting data, shall be completed in accordance with the applicable forms, instructions, and regulations.
</P>
<P>(5) <I>Special rule for one-time or occasional filings for return periods on or after July 1, 1995.</I> One-time or occasional filers are not required to file quarterly or annual returns pursuant to paragraph (a)(2) of this section if the person reporting tax does not engage in any activity with respect to which tax is reportable on the return in the course of a trade or business. Such persons shall file and pay tax for periods only when liability is incurred. See § 53.159(b)(2), providing that a deposit of taxes is not required for a one-time or occasional filing.
</P>
<P>(b) <I>Monthly and semimonthly returns</I>—(1) <I>Requirement.</I> If the appropriate TTB officer determines that any taxpayer who is required to deposit taxes under the provision of §§ 53.157 or 53.159 has failed to make deposits of those taxes, the taxpayer shall be required, if so notified in writing by the appropriate TTB officer, to file a monthly or semimonthly return on TTB Form 5300.26. Every person so notified by the appropriate TTB officer shall file a return for the calendar month or semimonthly period in which the notice is received and for each calendar month or semimonthly period thereafter until the person has filed a final return in accordance with § 53.152 or is required to file returns on the basis of a different return period pursuant to notification as provided in paragraph (b)(2) of this section.
</P>
<P>(2) <I>Change of requirement.</I> The appropriate TTB officer may require the taxpayer, by notice in writing, to file a quarterly or monthly return, if the taxpayer has been filing returns for a semimonthly period, or may require the taxpayer to file a quarterly or semimonthly return, if the taxpayer has been filing monthly returns.
</P>
<P>(3) <I>Return for period change takes effect.</I> (i) If a taxpayer who has been filing quarterly returns receives notice to file a monthly or semimonthly return, or a taxpayer who has been filing monthly returns receives notice to file a semimonthly return, the first return required pursuant to the notice shall be filed for the month or semimonthly period in which the notice is received and all months or semimonthly periods which are not includable in an earlier period for which the taxpayer is required to file a return.
</P>
<P>(ii) If a taxpayer who has been filing monthly or semimonthly returns receives notice to file a quarterly return, the last month or semimonthly period for which a return shall be filed is the last month or semimonthly period of the calendar quarter in which the notice is received.
</P>
<P>(iii) If a taxpayer who has been filing semimonthly returns receives notice to file a monthly return, the last semimonthly period for which a return shall be made is the last semimonthly period of the month in which the notice is received.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-330, 57 FR 40325, Sept. 3, 1992; T.D. ATF-365, 60 FR 33671, June 28, 1995; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 53.152" NODE="27:2.0.1.2.6.9.155.2" TYPE="SECTION">
<HEAD>§ 53.152   Final returns.</HEAD>
<P>(a) <I>In general.</I> Any person who is required to make a return on TTB Form 5300.26 pursuant to § 53.151 and who in any return period ceases operations in respect of which the person is required to make a return on the form, shall make the return for that return period as a final return. A return made as a final return shall be marked “Final Return” by the person filing the return. A taxpayer who has only temporarily ceased to incur liability for tax required to be reported on TTB Form 5300.26 because of temporary or seasonal suspension of business or for other reasons, shall not make a final return until such operations are permanently ceased.
</P>
<P>(b) <I>Statement to accompany final return.</I> Each final return shall have attached a statement showing the address at which the records required by the regulations in this part will be kept, the name of the person keeping the records, and, if the business of the taxpayer has been sold or otherwise transferred to another person, the name and address of that person and the date on which the sale or transfer took place. If no sale or transfer occurred or if the taxpayer does not know the name of the person to whom the business was sold or transferred, that fact should be included in the statement.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-330, 57 FR 40325, Sept. 3, 1992. Redesignated in part by T.D. ATF-365, 60 FR 33670, June 28, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 53.153" NODE="27:2.0.1.2.6.9.155.3" TYPE="SECTION">
<HEAD>§ 53.153   Time for filing returns.</HEAD>
<P>(a) <I>Quarterly returns.</I> Each return required to be made under § 53.151(a) for a return period of one calendar quarter shall be filed on or before the last day of the first calendar month following the close of the period for which it is made. However, a return may be filed on or before the 10th day of the second calendar month following the close of the period if timely deposits under section 6302(c) of the Code and § 53.157 have been made in full payment of the taxes due for the period. For purposes of the preceding sentence, a deposit which is not required by regulations in respect of the return period may be made on or before the last day of the first calendar month following the close of the period.
</P>
<P>(b) <I>Monthly, semimonthly and annual returns</I>—(1) <I>Monthly returns.</I> Each return required to be made under § 53.151(b) for a monthly period shall be filed not later than the 15th day of the month following the close of the period for which it is made.
</P>
<P>(2) <I>Semimonthly returns.</I> Each return required to be made under § 53.151(b) for a semimonthly period shall be filed not later than the 10th day of the semimonthly period following the close of the period for which it is made.
</P>
<P>(3) <I>Annual returns.</I> Each return filed under the provisions of § 53.151(a) for a return period of one calendar year shall be filed not later than the 31st day following the close of the calendar year.
</P>
<P>(c) <I>Last day for filing.</I> If the due date falls on a Saturday, Sunday, or legal holiday, the return and remittance shall be due on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For purposes of this section, “legal holiday” is defined by section 7503 of the Code and 26 CFR 301.7503(b).
</P>
<P>(d) <I>Late filing.</I> The taxpayer is subject to a penalty for failure to file a return or to pay tax within the prescribed time as imposed by section 6651 of the Code, if the return and remittance are not filed before the close of business on the prescribed last day of filing. For additions to the tax in the case of failure to file a return within the prescribed time, see 27 CFR 70.96.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-330, 57 FR 40325, Sept. 3, 1992]


</CITA>
</DIV8>


<DIV8 N="§ 53.154" NODE="27:2.0.1.2.6.9.155.4" TYPE="SECTION">
<HEAD>§ 53.154   Manner of filing returns.</HEAD>
<P>(a) Each return on TTB Form 5300.26 shall be filed with TTB, in accordance with the instructions on the form.
</P>
<P>(b) When the taxpayer sends the return on TTB Form 5300.26 by U.S. Mail, the official postmark of the U.S. Postal Service stamped on the cover in which the return was mailed shall be considered the date of delivery of the return. When the postmark on the cover is illegible, the burden of proving when the postmark was made will be on the taxpayer. When the taxpayer sends the return with or without remittance by registered mail or by certified mail, the date of registry or the date of the postmark on the sender's receipt of certified mail, as the case may be, shall be treated as the date of delivery of the return and, if accompanied, of the remittance.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-330, 57 FR 40325, Sept. 3, 1992]


</CITA>
</DIV8>


<DIV8 N="§ 53.155" NODE="27:2.0.1.2.6.9.155.5" TYPE="SECTION">
<HEAD>§ 53.155   Extension of time for filing returns.</HEAD>
<P>(a) <I>In general.</I> Ordinarily, no extension of time will be granted for filing any return statement or other document required with respect to the taxes impose by chapter 32, because the information required for the filing of those documents is under normal circumstances readily available. However, if because of temporary conditions beyond the taxpayer's control, a taxpayer believes an extension of time for filing is justified, the taxpayer may apply to the appropriate TTB officer for an extension. An extension of time for filing a return does not operate to extend the time for payment of the tax or any part of the tax unless so specified in the extension. For extensions of time for payment of the tax, see § 53.156.
</P>
<P>(b) <I>Application for extension of time.</I> The application for an extension of time for filing the return shall be addressed to the appropriate TTB officer with whom the return is to be filed and must contain a full recital of the causes for the delay. It should be made on or before the due date of the return, and failure to do so many indicate negligence and constitute sufficient cause for denial. It should, where possible, be made sufficiently early to permit consideration of the matter and reply before what otherwise would be the due date of the return.
</P>
<P>(c) <I>Filing the return.</I> If an extension of time for filing the return is granted, a return shall be filed before the expiration of the period of extension.


</P>
</DIV8>


<DIV8 N="§ 53.156" NODE="27:2.0.1.2.6.9.155.6" TYPE="SECTION">
<HEAD>§ 53.156   Extension of time for paying tax shown on return.</HEAD>
<P>(a) <I>In general.</I> (1) Ordinarily, no extensions of time will be granted for payment of any tax imposed by Chapter 32 of the Code, and shown or required to be shown on any return. However, if because of temporary conditions beyond the taxpayer's control a taxpayer believes an extension of time for payment is justified, the taxpayer may apply for an extension filing TTB Form 5600.38. The period of an extension shall not be in excess of 6 months from the date fixed for payment of the tax, except that if the taxpayer is abroad the period of the extension may be in excess of 6 months.
</P>
<P>(2) The granting of an extension of time for filing a return does not operate to extend the time for the payment of the tax or any part of the tax unless so specified in the extension. See § 53.155.
</P>
<P>(b) <I>Undue hardship required for extension.</I> An extension of the time for payment shall be granted only upon a satisfactory showing that payment on the due date of the amount with respect to which the extension is desired will result in an undue hardship. The extension will not be granted upon a general statement of hardship. The term “undue hardship” means more than an inconvenience to the taxpayer. It must appear that substantial financial loss, for example, loss due to the sale of property at a sacrifice price, will result to the taxpayer from making payment on the due date of the amount with respect to which the extension is desired. If a market exists, the sale of property at the current market price is not ordinarily considered as resulting in an undue hardship.
</P>
<P>(c) <I>Application for extension.</I> An application for an extension of time for payment of the tax shown or required to be shown on any return shall be made on TTB Form 5600.38, Application for Extension of Time for Payment of Tax, and shall be accompanied by evidence showing the undue hardship that would result to the taxpayer if the extension were refused. The application shall also be accompanied by a statement of the assets and liabilities of the taxpayer and an itemized statement showing all receipts and disbursements for each of the 3 months immediately preceding the due date of the amount to which the application relates. The application, with supporting documents, must be filed on or before the date prescribed for payment of the amount with respect to which the extension is desired. The application will be examined, and within 30 days, if possible, will be denied, granted, or tentatively granted subject to certain conditions of which the taxpayer will be notified. If an additional extension is desired, the request for it must be made on or before the expiration of the period for which the prior extension is granted.
</P>
<P>(d) <I>Payment pursuant to extension.</I> If an extension of time for payment is granted, the payment shall be made on or before the expiration of the period of the extension without the necessity of notice and demand. The granting of an extension of time for payment of the tax does not relieve the taxpayer from liability for the payment of interest on the tax during the period of the extension. See section 6601 of the Code and 26 CFR 301.6601-1.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991; T.D. ATF-447, 66 FR 19088, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 53.157" NODE="27:2.0.1.2.6.9.155.7" TYPE="SECTION">
<HEAD>§ 53.157   Deposit requirement for deposits made for calendar quarters prior to July 1, 1995.</HEAD>
<NOTE>
<HED>Note:</HED>
<P>For deposit requirement for deposits made for calendar quarters beginning on or after July 1, 1995, see § 53.159.</P></NOTE>
<P>(a) <I>Monthly deposits.</I> Except as provided in paragraph (b) of this section, if for any calendar month (other than the last month of a calendar quarter) any person required to file a quarterly excise tax return on TTB Form 5300.26 has a total liability under this part of more than $100 for all excise taxes reportable on that form, the amount of liability for taxes shall be deposited by the person in accordance with the instructions on TTB Form 5300.27 on or before the last day of the month following the calendar month.
</P>
<P>(b) <I>Semimonthly deposits.</I> (1) If any person required to file an excise tax return on TTB Form 5300.26 for any calendar quarter has a total liability under this part of more than $2,000 for all excise taxes reportable on that form for any calendar month in the preceding calendar quarter, the amount of that liability for taxes under this part for any semimonthly period (as defined in paragraph (d)(1) of this section) in the succeeding calendar quarter shall be deposited by the person in accordance with the instructions on TTB Form 5300.27 on or before the depositary date (as defined in paragraph (d)(2) of this section) applicable to the semimonthly period.
</P>
<P>(2) A person will be considered to have complied with the requirements of paragraph (b)(1) of this section for a semimonthly period if—
</P>
<P>(i)(A) The person's deposit for the semimonthly period is not less than 90 percent of the total amount of the excise taxes reportable by the person on TTB Form 5300.26 for the period, and
</P>
<P>(B) If the semimonthly period occurs in a calendar month other than the last month in a calendar quarter, the person deposits any underpayment for the month by the 9th day of the second month following the calendar month; or
</P>
<P>(ii)(A) The person's deposit for each semimonthly period in the calendar month is not less than 45 percent of the total amount of the excise taxes reportable by the person on TTB Form 5300.26 for the month, and
</P>
<P>(B) If such month is other than the last month in a calendar quarter, the person deposits any underpayment for such month by the 9th day of the second month following the calendar month; or
</P>
<P>(iii)(A) The person's deposit for each semimonthly period in the calendar month is not less than 50 percent of the total amount of the excise taxes reportable by the person on TTB Form 5300.26 for the second preceding calendar month, and
</P>
<P>(B) If such month is other than the last month in a calendar quarter, the person deposits any underpayment for such month by the 9th day of the second month following the calendar month; or
</P>
<P>(iv)(A) The requirements of paragraph (b)(2) (i)(A), (ii)(A), or (iii)(A) of this section are satisfied for the first semimonthly period of a calendar month after December 1990,
</P>
<P>(B) If the person's deposit for the second semimonthly period of the calendar month is, when added to the deposit for the first semimonthly period, not less than 90 percent of the total amount of the excise taxes reportable by the person on TTB Form 5300.26 for the calendar month, and
</P>
<P>(C) If the semimonthly periods occur in a calendar month other than the last month in a calendar quarter, the person deposits any underpayment for the month by the 9th day of the second month following the calendar month.
</P>
<P>(3)(i) Paragraph (b)(2) (ii) and (iii) of this section shall not apply to any person who normally incurs in the first semimonthly period in each calendar month more than 75 percent of the person's total excise tax liability under this part for the month.
</P>
<P>(ii) Persons who make their deposits in accordance with paragraph (b)(2) (ii), (iii), or (iv) of this section will find it unnecessary to keep their books and records on a semimonthly basis.
</P>
<P>(c) <I>Deposit of certain excess undeposited amounts.</I> Notwithstanding paragraphs (a) and (b) of this section, if any person required to file an excise tax return on TTB Form 5300.26 for any calendar quarter beginning after December 31, 1990, has a total liability under this part for all excise taxes reportable on the form for the calendar quarter which exceeds by more than $100 the total amount of taxes deposited by the person pursuant to paragraph (a) or (b) of this section for the calendar quarter, the person shall, on or before the last day of the calendar month following the calendar quarter for which the return is required to be filed, deposit in accordance with the instructions on TTB Form 5300.27 the full amount by which the person's liability for all excise taxes reportable on the return for that calendar quarter exceeds the amount of excise taxes previously deposited by the person for that calendar quarter.
</P>
<P>(d) <I>Definitions</I>—(1) <I>Semimonthly period.</I> The term <I>semimonthly period</I> means the first 15 days of a calendar month or the portion of a calendar month following the 15th day of that month.
</P>
<P>(2) <I>Depositary date.</I> The term <I>depositary date</I> means, in the case of deposits for semimonthly periods beginning after December 31, 1990, the 9th day of the semimonthly period following the semimonthly period for which the taxes are reportable.
</P>
<P>(3) <I>Lockbox financial institution.</I> The term <I>lockbox financial institution</I> means the financial institution designated as a depository for the payment of excise taxes on TTB Form 5300.27, Federal Firearms and Ammunition Excise Tax Deposit form.
</P>
<P>(e) <I>Depositary forms and procedures</I>—(1) <I>In general.</I> Each remittance of amounts required to be deposited for periods beginning after December 31, 1990 shall be accompanied by an TTB Form 5300.27, Federal Firearms and Ammunition Excise Tax Deposit form, or TTB Form 5300.26, Federal Firearms and Ammunition Excise Tax Return, which shall be prepared in accordance with the applicable instructions. Taxpayers electing to remit deposits by EFT pursuant to § 53.158 shall prepare and submit TTB Form 5300.26 or TTB Form 5300.27 in accordance with the instructions on the form. The timeliness of the deposit will be determined by the date it is received (or is deemed received under section 7502(e) and 26 CFR 301.7502-1) by the lockbox financial institution, or the TTB officer designated on TTB Form 5300.27 or TTB Form 5300.26 accompanying the deposit, or when made by electronic fund transfer, the Treasury Account. Amounts deposited pursuant to this paragraph shall be considered to be paid on the last day prescribed for filing the return in respect of the tax (determined without regard to any extension of time for filing the returns), or at the time deposited, whichever is later.
</P>
<P>(2) <I>Number of remittances.</I> A person required by this section to make deposits may make one or more remittances with respect to the amount required to be deposited. An amount of tax which is not otherwise required by this section to be deposited may, nevertheless, be deposited if the person liable for the tax so desires.
</P>
<P>(3) <I>Information required.</I> Each person making deposits pursuant to this section shall report on the return for the period with respect to which the deposits are made information regarding the deposits in accordance with the instructions applicable to the return and pay (or deposits by the due date of the return) the balance, if any, of the taxes due for the period.
</P>
<P>(4) <I>Procurement of prescribed forms.</I> Copies of the Federal Firearms and Ammunition Excise Tax Deposit form will be furnished, so far as possible, to persons required to make deposits under this section. Such a person will not be excused from making a deposit, however, by the fact that no form has been furnished. A person not supplied with the form is required to apply for it in ample time to make the required deposits within the time prescribed, supplying with the application the person's name, employer identification number, address, and the taxable period to which the deposits will relate. Copies of the Federal Firearms and Ammunition Excise Tax Deposit form are available as provided in § 53.21(b).
</P>
<P>(f) <I>Nonapplication to certain taxes.</I> This section does not apply to taxes for:
</P>
<P>(1) Any month or semimonthly period in which the taxpayer receives notice pursuant to § 53.151(b) to file TTB Form 5300.26 or
</P>
<P>(2) Any subsequent month or semimonthly period for which a return on TTB Form 5300.26 is required.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991; T.D. ATF-330, 57 FR 40325, Sept. 3, 1992; T.D. ATF-365, 60 FR 33671, June 28, 1995; T.D. ATF-447, 66 FR 19088, Apr. 13, 2001; T.D. TTB-44, 71 FR 16958, Apr. 4, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 53.158" NODE="27:2.0.1.2.6.9.155.8" TYPE="SECTION">
<HEAD>§ 53.158   Payment of tax by electronic fund transfer.</HEAD>
<P>(a) <I>In general.</I> For return periods after September 30, 1992, any taxpayer liable for firearms and ammunition excise taxes incurred under this part may elect to remit payments and deposits of the taxes (taxpayments) by electronic fund transfer (EFT). A taxpayer who elects to make remittance by EFT must use that method of remitting excise taxes on firearms and ammunition for a minimum of four consecutive calendar quarters. A taxpayer who makes remittance by EFT for a calendar quarter may not use any other method of remitting and ammunition excise taxes for that quarter.
</P>
<P>(b) <I>Requirements.</I> (1) On or before the 10th day of the calendar quarter preceding the calendar quarter in which the taxpayer will begin remitting taxes by EFT, each taxpayer who elects to make remittances by EFT of firearms and ammunition excise taxes incurred under this part shall give written notice to the appropriate TTB officer, indicating that remittances will be paid by EFT. Taxpayers who gave written notification in a previous calendar quarter electing to make remittances of tax by EFT are not required to give additional written notifications to continue remitting tax by EFT for succeeding calendar quarters.
</P>
<P>(2) For each deposit made or return filed in accordance with this subpart, the taxpayer shall direct the taxpayer's financial institution to make an EFT in the amount of the taxpayment to the Treasury Account as provided in paragraph (e) of this section. The request will be made to the financial institution early enough for the transfer of funds to be made to the Treasury Account no later than the close of business on the last day for making the deposit or filing the return as prescribed in §§ 53.157 or 53.159, and 53.153. The request will take into account any time limit established by the financial institution.
</P>
<P>(3) Taxpayers who elect to discontinue making remittances by EFT of firearms and ammunition excise taxes may make such election at any time following four consecutive calendar quarters in which tax is remitted by EFT. Taxpayers electing to discontinue making remittances by EFT shall remit the tax with the next deposit or return as prescribed in §§ 53.157 or 53.159, and 53.151 for remittances not made by EFT and notify the appropriate TTB officer by attaching a written notification to the tax deposit form or return stating that remittance of firearms and ammunition excise taxes will no longer be made by EFT.
</P>
<P>(c) <I>Remittance.</I> (1) Taxpayers who elect to make firearms and ammunition excise taxpayments by EFT shall file the deposit form and/or return with TTB in accordance with the applicable instructions on the forms.
</P>
<P>(2) Remittances will be considered as made when the taxpayment by EFT is received by the Treasury Account when it is paid to a Federal Reserve Bank.
</P>
<P>(3) When the taxpayer directs the financial institution to effect an electronic fund transfer message as required by paragraph (b)(2) of this section, the transfer data record furnished to the taxpayer through normal banking procedures will serve as the record of payment and will be retained as part of the required records.
</P>
<P>(d) <I>Failure to make a taxpayment by EFT.</I> The taxpayer is subject to penalties imposed by 26 U.S.C. 6651 and 6656, as applicable, for failure to make a payment or deposit of tax by EFT on or before the close of business on the prescribed last day for making such payment or deposit.
</P>
<P>(e) <I>Procedure.</I> Upon the notification required under paragraph (b)(1) of this section, the appropriate TTB officer will issue to the taxpayer an TTB Procedure entitled Payment of Tax by Electronic Fund Transfer. This publication outlines the procedure a taxpayer follows when preparing deposits, returns and EFT remittances in accordance with this subpart.
</P>
<CITA TYPE="N">[T.D. ATF-330, 57 FR 40326, Sept. 3, 1992, as amended by T.D. ATF-365, 60 FR 33671, June 28, 1995; T.D. ATF-447, 66 FR 19088, Apr. 13, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 53.159" NODE="27:2.0.1.2.6.9.155.9" TYPE="SECTION">
<HEAD>§ 53.159   Deposit requirement for deposits made for calendar quarters beginning on or after July 1, 1995.</HEAD>
<P>(a) <I>Definitions</I>—(1) <I>Definition of tax liability.</I> For purposes of this section, the term “tax liability” means the total tax liability for the specified period plus or minus any allowable adjustments made in accordance with the instructions applicable to the form on which the return is made.
</P>
<P>(2) <I>Semimonthly period.</I> Except as provided in paragraph (c)(4)(ii) of this section, the term “semimonthly period” means the first 15 days of a calendar month or the remaining portion of a calendar month following the 15th day of that month.
</P>
<P>(b) <I>In general</I>—(1) <I>Semimonthly deposits.</I> Except as provided in paragraphs (b)(2), (c)(2), and (j) of this section, any person required to file a quarterly excise tax return on TTB Form 5300.26 must make a deposit of tax for each semimonthly period as prescribed in paragraph (c) of this section.
</P>
<P>(2) <I>One-time or occasional filings.</I> No deposit is required in the case of any taxes reportable on a one-time or occasional filing (as defined in § 53.151(a)(5)).
</P>
<P>(c) <I>Amount of deposit</I>—(1) <I>In general.</I> Except as provided in paragraphs (c)(2), (c)(3) and (c)(6) of this section, the deposit of tax for each semimonthly period must be equal to the amount of tax liability incurred during that semimonthly period. Except as provided in paragraph (c)(3) of this section, no deposit is required for any semimonthly period in which no tax liability is incurred.
</P>
<P>(2) <I>De minimis exception.</I> Except as provided in paragraph (c)(3) of this section, any person who has a tax liability for the current calendar quarter of $2,000 or less is not required to make deposits for that quarter. However, semimonthly deposits of tax are required beginning with the semimonthly period in which unpaid tax liability exceeds $2,000 and for every semimonthly period thereafter in which tax liability is incurred. The first deposit for the current quarter shall be equal to the unpaid tax liability; thereafter, deposits shall be equal to the amount of tax liability incurred during that semimonthly period.
</P>
<P>(3) <I>Amount of deposit; safe harbor rule based on look-back quarter liability</I>; <I>In general.</I> Except as provided in paragraph (c)(6) of this section, any person who made a return of tax on TTB Form 5300.26 reporting taxes for the second preceding calendar quarter (the “look-back quarter”), or who did not file a return for the look-back quarter because of the provisions of § 53.151(a)(2), is considered to have complied with the requirement for deposit of taxes for the current calendar quarter if—
</P>
<P>(i) The deposit of taxes for each semimonthly period in the current calendar quarter is an amount equal to not less than 
<FR>1/6</FR> (16.67 percent) of the total tax liability incurred for the look-back quarter;
</P>
<P>(ii) Each deposit is made on time; and
</P>
<P>(iii) The amount of any underpayment of taxes for the current calendar quarter is paid by the due date of the return.
</P>
<P>(4) <I>Modification for third calendar quarter.</I> The safe harbor rule in paragraph (c)(3) of this section does not apply for the third calendar quarter unless—
</P>
<P>(i) The deposit of taxes for the semimonthly period July 1-September 15 meets the requirements of paragraph (c)(3) of this section; and
</P>
<P>(ii) Each deposit of taxes for the periods September 16-25 and September 26-30 is not less than 1/12th (8.34 percent) of the total tax liability incurred for the look-back quarter.
</P>
<P>(5) <I>Modification for tax rate increase</I>—(i) <I>Application.</I> The safe harbor rule as prescribed in paragraph (c)(3) is modified for the first and second calendar quarters beginning on or after the effective date of an increase in the rate of any tax prescribed by 26 U.S.C. 4181 to which this part 53 applies.
</P>
<P>(ii) <I>Modification.</I> The amount of deposit for calendar quarters referred to in paragraph (c)(3) of this section must be adjusted so that the deposit of taxes for each semimonthly period in the calendar quarter is not less than 
<FR>1/6</FR> (16.67 percent) of the tax liability the person would have had with respect to the tax for the look-back quarter if the increased rate of tax had been in effect for that look-back quarter.
</P>
<P>(6) <I>First time filers.</I> Any person who did not file a return of tax on TTB Form 5300.26 for the first and second preceding calendar quarters because they were not engaged in any activity with respect to which tax is reportable on the return in the course of a trade or business, is considered to have complied with the requirement for deposit of taxes for the current calendar quarter if—
</P>
<P>(i) The deposit of taxes for each semimonthly period in the calendar quarter is not less than 95 percent of the tax liability incurred with respect to those taxes during the semimonthly period;
</P>
<P>(ii) Each deposit is made on time; and
</P>
<P>(iii) The amount of any underpayment of taxes for the current calendar quarter is paid by the due date of the return.
</P>
<P>(d) <I>Failure to comply with deposit requirements.</I> (1) If a person fails to make deposits as required under this part, the appropriate TTB officer may withdraw the person's right to use the safe harbor rule provided by paragraph (c)(3) of this section.
</P>
<P>(2) <I>Cross reference.</I> The appropriate TTB officer may also require a taxpayer who fails to make deposits of tax to file a monthly or semimonthly return, see § 53.151(b)(1).
</P>
<P>(e) <I>Time for making deposit.</I> Except for deposits for the period September 16-25, each deposit required to be made by this section shall be made not later than the 9th day of the semimonthly period following the close of the period for which it is made. The deposit for the period September 16-25 shall be made not later than September 28. The deposit for the period September 26-30, is due not later than October 9.
</P>
<P>(f) <I>Last day for filing.</I> (1) Except as provided by paragraph (f)(2) of this section, if the due date of the deposit falls on a Saturday, Sunday, or legal holiday, the deposit and remittance shall be due on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For purposes of this section, “legal holiday” is defined by section 7503 of the Code and 27 CFR 70.306(b) of this chapter.
</P>
<P>(2) If the required due date of the deposit for the period September 16-25 falls on a Saturday, the deposit and remittance shall be due on the preceding day. If such required due date falls on a Sunday, the return and remittance shall be due on the following day.
</P>
<P>(g) <I>Forms and procedures.</I> Each remittance of amounts required to be deposited shall be accompanied by Form 5300.27, Federal Firearms and Ammunition Excise Tax Deposit form, or Form 5300.26, Federal Firearms and Ammunition Excise Tax Return, which shall be prepared in accordance with the applicable instructions. Taxpayers electing to remit deposits by EFT pursuant to § 53.158 shall prepare and submit Form 5300.26 or Form 5300.27 in accordance with the instructions contained in Procedure 92-1, Publication 5000.11. The timeliness of the deposit will be determined by the date it is received by the lockbox financial institution, or the TTB officer designated on the form accompanying the deposit, or the Treasury Account, when made by EFT. In order for deposits of less than $20,000 made by U.S. Mail to be considered received timely, the date of mailing must be on or before the second day preceding the due date of the deposit as evidenced by the official postmark of the U.S. Postal Service stamped on the cover in which the deposit was mailed. When the postmark on the cover is illegible, the burden of proving when the postmark was made will be on the taxpayer. When the taxpayer sends the deposit by registered mail or by certified mail, the date of registry or the date of the postmark on the sender's receipt of certified mail, as the case may be, shall be treated as the date of delivery of the deposit. Any deposit of $20,000 or more must be received by the last day prescribed for making such deposit, regardless of when mailed. Amounts deposited pursuant to this paragraph shall be considered to be paid on the last day prescribed for filing the return in respect of the tax (determined without regard to any extension of time for filing the returns), or at the time deposited, whichever is later.
</P>
<P>(h) <I>Number of remittances.</I> A person required by this section to make deposits shall make one deposit for a semimonthly period.
</P>
<P>(i) <I>Procurement of prescribed forms.</I> Copies of the Federal Firearms and Ammunition Excise Tax Deposit form will be furnished, so far as possible, to persons required to make deposits under this section. Such a person will not be excused from making a deposit however, by the fact that no form has been furnished. A person not supplied with the form is required to obtain the form in ample time to make the required deposits within the time prescribed. Copies of the Federal Firearms and Ammunition Excise Tax Deposit form are available as provided in § 53.21(b).
</P>
<P>(j) <I>Taxpayers required to file monthly or semimonthly returns.</I> This section does not apply to taxes for:
</P>
<P>(1) Any month or semimonthly period in which the taxpayer receives notice pursuant to section 53.151(b) to file TTB Form 5300.26; or
</P>
<P>(2) Any subsequent month or semimonthly period for which a return on TTB Form 5300.26 is required.
</P>
<P>(3) Taxpayers required to file monthly returns shall make semimonthly deposits of 100 percent of the liability incurred during each semimonthly period by the 9th day of the month following the last day of the semimonthly period. Taxpayers required to file semimonthly returns shall pay any tax due for the semimonthly period with each return.
</P>
<P>(k) <I>Examples.</I>
</P>
<EXAMPLE>
<HED>Example 1. One-time filing or occasional filing.</HED><PSPACE>(1) <I>Facts.</I> On October 18, 1995, A, an individual who lives in the United States purchases a custom made rifle outside the United States and imports it into the United States. A uses the rifle on October 20, 1995. A is liable for the firearms excise tax imposed by sections 4181 and 4218(a). Since A does not regularly sell rifles in arm's length transactions, a constructive sale price of $20,000 is determined (§ 53.115(b)). The amount of A's tax liability is $2200, 11 percent of the constructive sale price of the rifle. The liability is incurred during the fourth calendar quarter of 1995, the quarter during which the rifle is used (§ 53.111(d)). A did not import the rifle in the course of its trade or business and does not engage in any activities with respect to which tax is reportable on TTB Form 5300.26 in the course of a trade or business.
</PSPACE><P>(2) <I>Filing requirement.</I> A must file a return on Form 5300.26 (§ 53.151(a)) for the fourth calendar quarter of 1995 reporting A's $2200 firearms excise tax liability. The Form 5300.26 is due by January 31, 1996, the last day of the first month following the calendar quarter (§ 53.153(a)). Because A did not import the firearm in the course of its trade or business and does not engage in any activities with respect to which tax is reportable in the course of a trade or business, the return is a one-time filing or occasional filing.
</P><P>(3) <I>Payment requirement.</I> Because A's Form 5300.26 is a one-time filing, A is not required to make deposits of tax (§ 53.159(b)(2)). Instead, A pays the $2200 of tax with the return.</P></EXAMPLE>
<EXAMPLE>
<HED>Example 2. Deposit requirement; based on look-back quarter liability.</HED><PSPACE>(1) <I>Facts.</I> B is a manufacturer of firearms. B sells 75 pistols which have a taxable sale price of $500 each during the second calendar quarter of 1996. B sold 50 of the pistols in the first semimonthly period of May, 1996, and the other 25 pistols in the second semimonthly period of April, 1996. B did not incur tax liability in any other semimonthly period in the second quarter. The amount of B's tax liability for the second calendar quarter is $3,750, 10 percent of the taxable sale price of the pistols. B filed Form 5300.26 for the second preceding calendar quarter, the look-back quarter, on January 31, 1996 reporting tax liability in the amount of $2,700.
</PSPACE><P>(2) <I>Deposit requirement.</I> B is required to make deposits of tax for each semimonthly period in the calendar quarter because B has incurred more than $2,000 in liability for the current quarter. B may use the safe harbor rule based on look-back quarter liability to determine the amount of the required deposits (§ 53.159(c)(3)). Under this safe harbor rule, B's deposit for each semimonthly period must equal at least $450.00, 
<FR>1/6</FR> (16.67 percent) of the tax liability incurred for the look-back quarter. B's deposit must be timely and B must pay the amount of any underpayment by the due date of the return. Accordingly, B meets the deposit requirement if B makes the following deposits:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Semimonthly period
</TH><TH class="gpotbl_colhed" scope="col">Deposit due by
</TH><TH class="gpotbl_colhed" scope="col">Amount of deposit
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">April 1-15</TD><TD align="left" class="gpotbl_cell">April 24, 1996</TD><TD align="right" class="gpotbl_cell">$450.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">April 16-31</TD><TD align="left" class="gpotbl_cell">May 9, 1996</TD><TD align="right" class="gpotbl_cell">450.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">May 1-15</TD><TD align="left" class="gpotbl_cell">May 24, 1996</TD><TD align="right" class="gpotbl_cell">450.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">May 16-30</TD><TD align="left" class="gpotbl_cell">June 10, 1996</TD><TD align="right" class="gpotbl_cell">450.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">June 1-15</TD><TD align="left" class="gpotbl_cell">June 24, 1996</TD><TD align="right" class="gpotbl_cell">450.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">June 16-30</TD><TD align="left" class="gpotbl_cell">July 9, 1996</TD><TD align="right" class="gpotbl_cell">450.00</TD></TR></TABLE></DIV></DIV><PSPACE>The deposit due on June 10, 1996, would ordinarily be due on June 9, 1996. However, because June 9, 1996 is a Sunday, under section 7503, B has an additional day to make the required deposit.
</PSPACE><P>(3) <I>Filing requirement.</I> B must file a return on Form 5300.26 for the second calendar quarter of 1996 reporting B's $3750 tax liability (§ 53.151(a)). The form 5300.26 is due by July 31, 1996, the last day of the first month following the calendar quarter (§ 53.153(a)). B must also pay $1050.00, the underpayment amount by which the total tax liability for the second calendar quarter exceeds the total tax liability for the look-back quarter, by the due date of the return.</P></EXAMPLE>
<EXAMPLE>
<HED>Example 3. Deposit amount; no liability in look-back quarter.</HED><PSPACE>(1) <I>Facts.</I> C, a manufacturer of ammunition, filed returns for the first, second and third quarters of 1995 reporting C's tax liability. During the fourth quarter of 1995, C did not make any taxable sales of shells or cartridges, thereby incurring no tax liability for that return period. C did not file Form 5300.26 for the fourth calendar quarter since no tax liability was incurred (§ 53.151(a)(2)). C made taxable sales in the second quarter of 1996 amounting to $25,500.00, incurring a tax liability of $2805.
</PSPACE><P>(2) <I>Deposit requirement.</I> Ordinarily, C would be required to make deposits of tax for each semimonthly period in the calendar quarter because C's total liability for the current calendar quarter exceeds $2,000. However, since C incurred a tax liability of $0 in the second preceding calendar quarter (the look-back quarter) (§ 53.159(c)(3)), under the safe harbor rule, C is not required to make deposits of tax.
</P><P>(3) <I>Filing requirement.</I> C is required to file a return on Form 5300.26 reporting C's $2805 ammunition excise tax liability. The form 5300.26 is due by July 31, 1996.
</P><P>(4) <I>Payment requirement.</I> C must pay the $2805 tax with the return.</P></EXAMPLE>
<EXAMPLE>
<HED>Example 4. Deposit requirement; First time Filer.</HED><PSPACE>(1) <I>Facts.</I> D, a manufacturer of firearms, began business on 2/16/96. D sold 300 shotguns which had a taxable sales price of $210 each during the first quarter of 1996. D sold 70 shotguns in the second semimonthly period of February, 1996, 130 shotguns in the first semimonthly period of March, 1996 and 100 shotguns in the second semimonthly period of March, 1996. The amount of D's tax liability for the first quarter of 1996 is $6,930, 11 percent of the taxable sale price of the shotguns.
</PSPACE><P>(2) <I>Deposit requirement.</I> D is required to make a deposit of tax when D's tax liability exceeds $2,000 (§ 53.159(c)(2)). Therefore, D must make a deposit of tax beginning with the first semimonthly period in March, the semimonthly period in which D's unpaid tax liability exceeded $2,000. Because D, a first time filer, does not have an established look-back quarter, D's deposit of tax must be at least 95 percent of the incurred tax liability. D is required to make deposits of at least 95 percent of incurred tax liability for every semimonthly period in the quarter thereafter. D's deposits must be timely and any underpayment of tax must be paid by the due date of the return. Accordingly, D meets the deposit requirement if D makes the following deposits:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Semimonthly period
</TH><TH class="gpotbl_colhed" scope="col">Deposit due by
</TH><TH class="gpotbl_colhed" scope="col">Amount of deposit 
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Feb. 16-29</TD><TD align="left" class="gpotbl_cell">March 11, 1996</TD><TD align="right" class="gpotbl_cell">$0
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">March 1-15</TD><TD align="left" class="gpotbl_cell">March 25, 1996</TD><TD align="right" class="gpotbl_cell">4,389
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">March 16-31</TD><TD align="left" class="gpotbl_cell">April 9, 1996</TD><TD align="right" class="gpotbl_cell">2,194.50</TD></TR></TABLE></DIV></DIV><PSPACE>The deposits due on March 11, 1996, and March 25, 1996, would ordinarily be due on March 9, 1996, and March 24, 1996, respectively. However, because March 9, 1996, is a Saturday, and March 24, 1996, is a Sunday, under section 7503, D has until March 11, 1996, to make the deposit due on March 9, 1996, and until March 25, 1996, to make the deposit due on March 24, 1996.
</PSPACE><P>(3) <I>Filing requirement.</I> D must file a return on Form 5300.26 for the first calendar quarter of 1996 reporting D's $6,930 tax liability (§ 53.151(a)). The form 5300.26 is due by April 30, 1996, the last day of the first month following the calendar quarter (§ 53.153(a)). D must also pay $346.50, the amount by which the tax liability for the quarter was underpaid, by the due date of the return.</P></EXAMPLE>
<EXAMPLE>
<HED>Example 5. Deposit amount; third calendar quarter.</HED><PSPACE>(1) <I>Facts.</I> E, a manufacturer of firearms, is a semimonthly depositor who makes deposits of tax using the safe harbor rule based on the look-back quarter to determine the amount of tax required to be deposited for the third calendar quarter of 1995. E incurred a tax liability amounting to $38,000 for the third quarter. E filed Form 5300.26 for the second preceding calendar quarter, the look-back quarter on May 1, 1995, reporting tax liability in the amount of $30,000.
</PSPACE><P>(2) <I>Deposit requirement.</I> Because E has incurred more than $2,000 in liability and has chosen to make deposits of tax based on the look-back quarter, E is required to make deposits of tax equal to $5,000, 
<FR>1/6</FR> (16.67 percent) of the tax liability incurred in the look-back quarter, for each semimonthly period in the calendar quarter. However, because of the special rule which modifies the safe harbor rule for deposits of tax for the month of September (§ 53.159(c)(4)), E must make deposits equal to $2500.00 each, 1/12th (8.34 percent) of the tax liability incurred in the look-back quarter for the periods September 16-25 and September 26-30. E's deposits must be timely and E must pay the amount of any underpayment by the due date of the return. Accordingly, E meets the deposit requirement if E makes the following deposits:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Semimonthly period
</TH><TH class="gpotbl_colhed" scope="col">Deposit due by
</TH><TH class="gpotbl_colhed" scope="col">Amount of deposit
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">July 1-15</TD><TD align="left" class="gpotbl_cell">July 24, 1995</TD><TD align="right" class="gpotbl_cell">$5000.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">July 16-31</TD><TD align="left" class="gpotbl_cell">August 9, 1995</TD><TD align="right" class="gpotbl_cell">5000.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Aug. 1-15</TD><TD align="left" class="gpotbl_cell">August 24, 1995</TD><TD align="right" class="gpotbl_cell">5000.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Aug. 16-31</TD><TD align="left" class="gpotbl_cell">Sept. 11, 1995</TD><TD align="right" class="gpotbl_cell">5000.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sept. 1-15</TD><TD align="left" class="gpotbl_cell">Sept. 25, 1995</TD><TD align="right" class="gpotbl_cell">5000.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sept. 16-25</TD><TD align="left" class="gpotbl_cell">Sept. 28, 1995</TD><TD align="right" class="gpotbl_cell">2500.00
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Sept. 26-30</TD><TD align="left" class="gpotbl_cell">October 9, 1995</TD><TD align="right" class="gpotbl_cell">2500.00</TD></TR></TABLE></DIV></DIV><PSPACE>The deposits due on September 11, 1995, and September 25, 1995, would ordinarily be due on September 9, 1995, and September 24, 1995, respectively. However, because September 9, 1995, is a Saturday, and September 24, 1995, is a Sunday, under section 7503, D has until September 11, 1995, to make the deposit due on September 9, 1995, and until September 25, 1995, to make the deposit due on September 24, 1995.
</PSPACE><P>(3) <I>Filing requirement.</I> E must file a return on Form 5300.26 for the third calendar quarter of 1995 reporting E's $38,000 tax liability (§ 53.153(a)). E must also pay $8,000, the underpayment amount by which the total tax liability for the third calendar quarter exceeds the total tax liability for the look-back quarter, by the due date of the return.</P></EXAMPLE>
<CITA TYPE="N">[T.D. ATF-365, 60 FR 33671, June 28, 1995, as amended by T.D. ATF-447, 66 FR 19089, Apr. 13, 2001; T.D. TTB-44, 71 FR 16958, Apr. 4, 2006]


</CITA>
</DIV8>


<DIV8 N="§ 53.161" NODE="27:2.0.1.2.6.9.155.10" TYPE="SECTION">
<HEAD>§ 53.161   Authority to make credits or refunds.</HEAD>
<P>For provisions relating to credits and refunds of certain taxes on sales and services see section 6416 of the Code and §§ 53.171-53.186. For regulations under section 6402 of the Code of general application in respect of credits or refunds, see 27 CFR 70.122, 70.123, and 70.124 (Procedure and Administration).


</P>
</DIV8>


<DIV8 N="§ 53.162" NODE="27:2.0.1.2.6.9.155.11" TYPE="SECTION">
<HEAD>§ 53.162   Abatements.</HEAD>
<P>For regulations under section 6404 of the Code of general application in respect of abatements of assessments to tax, see 27 CFR 70.125 (Procedure and Administration).


</P>
</DIV8>


<DIV8 N="§§ 53.163-53.170" NODE="27:2.0.1.2.6.9.155.12" TYPE="SECTION">
<HEAD>§§ 53.163-53.170   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 53.171" NODE="27:2.0.1.2.6.9.155.13" TYPE="SECTION">
<HEAD>§ 53.171   Claims for credit or refund of overpayments of manufacturers taxes.</HEAD>
<P>Any claims for credit or refund of an overpayment of a tax imposed by chapter 32 of the Code shall be made in accordance with the applicable provisions of this subpart and the applicable provisions of 27 CFR 70.123 (Procedure and Administration). A claim on TTB Form 2635 (5620.8) is not required in the case of a claim for credit, but the amount of the credit shall be claimed by entering that amount as a credit on a return of tax under this subpart filed by the person making the claim. In this regard, see § 53.185.


</P>
</DIV8>


<DIV8 N="§ 53.172" NODE="27:2.0.1.2.6.9.155.14" TYPE="SECTION">
<HEAD>§ 53.172   Credit or refund of manufacturers tax under chapter 32.</HEAD>
<P>(a) <I>Overpayment not described in section 6416(b)(2) of the Code</I>—(1) <I>Claims included.</I> This paragraph applies only to claims for credit or refund of an overpayment of manufacturers tax imposed by Chapter 32. It does not apply, however, to a claim for credit or refund on any overpayment described in paragraph (b) of this section which arises by reason of the application of section 6416(b)(2) of the Code.
</P>
<P>(2) <I>Supporting evidence required.</I> No credit or refund of any overpayment to which this paragraph (a) applies shall be allowed unless the person who paid the tax submits with the claim a written consent of the ultimate purchaser to the allowance of the credit or refund, or submits with the claim a statement, supported by sufficient available evidence, asserting that:
</P>
<P>(i) The person has neither included the tax in the price of the article with respect to which it was imposed nor collected the amount of the tax from a vendee, and identifying the nature of the evidence available to establish these facts, or
</P>
<P>(ii) The person has repaid the amount of the tax to the ultimate purchaser of the article.
</P>
<P>(3) <I>Ultimate purchaser</I>—(i) <I>General rule.</I> The term “ultimate purchaser”, as used in paragraph (a)(2) of this section, means the person who purchased the article for consumption, or for use in the manufacture of other articles and not for resale in the form in which purchased.
</P>
<P>(ii) <I>Special rule under section 6416(a)(3)</I>—(A) <I>Conditions to be met.</I> If tax under chapter 32 of the Code is paid in respect of an article and the appropriate TTB officer determines that the article is not subject to tax under chapter 32, the term “ultimate purchaser”, as used in paragraph (a)(2) of this section, includes any wholesaler, jobber, distributor, or retailer who, on the 15th day after the date of the determination holds for sale any such article with respect to which tax has been paid, if the claim for credit or refund of the overpayment in respect of the articles held for sale by wholesaler, jobber, distributor, or retailer is filed on or before the date on which the person who paid the tax is required to file a return for the period ending with the first calendar quarter which begins more than 60 days after the date of the determination by the appropriate TTB officer.
</P>
<P>(B) <I>Supporting statement.</I> A claim for credit or refund of an overpayment of tax in respect of an article as to which a wholesaler, jobber, distributor, or retailer is the ultimate purchaser, as provided in this paragraph (a)(3)(ii), must be supported by a statement that the person filing the claim has a statement, by each wholesaler, jobber, distributor, or retailer whose articles are covered by the claim, showing total inventory, by model number and quantity, of all such articles purchased tax-paid and held for sale as of 12:01 a.m. of the 15th day after the date of the determination by the appropriate TTB officer that the article is not subject to tax under chapter 32 of the Code.
</P>
<P>(C) <I>Inventory requirement.</I> The inventory shall not include any such article, title to which, or possession of which, has previously been transferred to any person for purposes of consumption unless the entire purchase price was repaid to the person or credited to the person's account and the sale was rescinded or any such article purchased by the wholesaler, jobber, distributor, or retailer as a component part of, or on or in connection with, another article. An article in transit at the first moment of the 15th day after the date of the determination is regarded as being held by the person to whom it was shipped, except that if title to the article does not pass until delivered to the person the article is deemed to be held by the shipper.
</P>
<P>(b) <I>Overpayments described in section 6416(b)(2) of the Code</I>—(1) <I>Claims included.</I> This paragraph applies only to claims for credit or refund of amounts paid as tax under chapter 32 of the Code that are determined to be overpayments by reason of section 6416(b)(2) of the Code (relating to tax payments in respect of certain uses, sales, or resales of a taxable article).
</P>
<P>(2) <I>Supporting evidence required.</I> No credit or refund of an overpayment to which this paragraph (b) applies shall be allowed unless the person who paid the tax submits with the claim a statement, supported by sufficient available evidence, asserting that:
</P>
<P>(i) The person neither included the tax in the price of the article with respect to which it was imposed nor collected the amount of the tax from a vendee, and identifying the nature of the evidence available to establish these facts, or
</P>
<P>(ii) The person repaid, or agreed to repay, the amount of the tax to the ultimate vendor of the article, or
</P>
<P>(iii) The person has secured, and will submit upon request of the appropriate TTB officer, the written consent of the ultimate vendor to the allowance of the credit or refund.
</P>
<P>(3) <I>Ultimate vendor—General rule.</I> The term <I>ultimate vendor,</I> as used in paragraph (b)(2) of this section, means the seller making the sale which gives rise to the overpayment or which last precedes the exportation or use which has given rise to the overpayment.
</P>
<P>(c) <I>Overpayments not included.</I> This section does not apply to any overpayment determined under section 6416(b)(1) of the Code (relating to price readjustments), section 6416(b)(3)(A) of the Code (relating to certain cases in which refund or credit is allowable to the manufacturer who uses, in the further manufacture of a second article, a taxable article purchased by the manufacturer taxpaid), or section 6416(b)(5) of the Code (relating to the return to the seller of certain installment accounts which the seller had previously sold). In this regard, see §§ 53.173, 53.180, and 53.183.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.173" NODE="27:2.0.1.2.6.9.155.15" TYPE="SECTION">
<HEAD>§ 53.173   Price readjustments causing overpayments of manufacturers tax.</HEAD>
<P>In the case of any payment of tax under chapter 32 of the Code that is determined to be an overpayment by reason of a price readjustment within the meaning of section 6416(b)(1) of the Code and § 53.174 or § 53.175, the person who paid the tax may file a claim for refund of the overpayment or may claim credit for the overpayment on any return of tax under this subpart which the person subsequently files. Price readjustments may not be anticipated. However, if the readjustment has actually been made before the return is filed for the period in which the sale was made, the tax to be reported in respect of the sale may, at the election of the taxpayer, be based either:
</P>
<P>(a) On the price as so readjusted, or
</P>
<P>(b) On the original sale price and a credit or refund claimed in respect of the price readjustment.
</P>
<FP>A price readjustment will be deemed to have been made at the time when the amount of the readjustment has been refunded to the vendor or the vendor has been informed that the vendor's account has been credited with the amount. No interest shall be paid on any credit or refund allowed under this section. For provisions relating to the evidence required in support of a claim for credit or refund, see 27 CFR 70.123 (Procedure and Administration), § 53.172(a)(2) and § 53.176. For provisions authorizing the taking of a credit in lieu of filing a claim for refund, see section 6416(d) of the Code and § 53.185.
</FP>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.174" NODE="27:2.0.1.2.6.9.155.16" TYPE="SECTION">
<HEAD>§ 53.174   Determination of price readjustments.</HEAD>
<P>(a) <I>In general</I>—(1) <I>Rules of usual application</I>—(i) <I>Amount treated as overpayment.</I> If the tax imposed by chapter 32 of the Code has been paid and thereafter the price of the article on which the tax was based is readjusted, that part of the tax which is proportionate to the part of the price which is repaid or credited to the purchaser is considered to be an overpayment. A readjustment of price to the purchaser may occur by reason of:
</P>
<P>(A) The return of the article,
</P>
<P>(B) The repossession of the article,
</P>
<P>(C) The return or repossession of the covering or container of the article, or
</P>
<P>(D) A bona fide discount, rebate, or allowance against the price at which the article was sold.
</P>
<P>(ii) <I>Requirements of price readjustment.</I> A price readjustment will not be deemed to have been made unless the person who paid the tax either:
</P>
<P>(A) Repays part or all of the purchase price in cash to the vendee,
</P>
<P>(B) Credits the vendee's account for part or all of the purchase price, or
</P>
<P>(C) Directly or indirectly reimburses a third party for part or all of the purchase price for the direct benefit of the vendee.
</P>
<FP>In addition, to be deemed a price readjustment, the payment or credit must be contractually or economically related to the taxable sale that the payment or credit purports to adjust. Thus, commissions or bonuses paid to a manufacturer's own agents or salesperson for selling the manufacturer's taxable products are not price readjustments for purposes of this section, since those commissions or bonuses are not paid or credited either to the manufacturer's vendee or to a third party for the vendee's benefit. On the other hand, a bonus paid by the manufacturer to a dealer's salesperson for negotiating the sale of a taxable article previously sold to the dealer by the manufacturer is considered to be a readjustment of the price on the original sale of the taxable article, regardless of whether the payment to the salesperson is made directly by the manufacturer or to the salesperson through the dealer. In such a case, the payment is related to the sale of a taxable article and is made for the benefit of the dealer because it is made to the dealer's salesperson to encourage the sale of a product owned by the dealer. Similarly, payments or credits made by a manufacturer to a vendee as reimbursement of interest expense incurred by the vendee in connection with a so-called “free flooring” arrangement for the purchase of taxable articles is a price readjustment, regardless of whether the payment or credit is made directly to the vendee or to the vendee's creditor on behalf of the vendee.
</FP>
<P>(iii) <I>Limitation on credit or refund.</I> The credit or refund allowable by reason of a price readjustment in respect of the sale of a taxable article may not exceed an amount which bears the same ratio to the total tax originally due and payable on the article as the amount of the tax-included readjustment bears to the original tax-included sale price of the article.
</P>
<P>(2) <I>Rules of special application</I>—(i) <I>Constructive sale price.</I> If, in the case of a taxable sale, the tax imposed by chapter 32 of the Code is based on a constructive sale price determined under any paragraph of section 4216(b) of the Code and §§ 53.94-53.97, as determined without reference to section 4218 of the Code, then any price readjustment made with respect to the sale may be taken into account under this section only to the extent that the price readjustment reduces the actual sale price of the article below the constructive sale price.
</P>
<EXAMPLE>
<HED>Examples:</HED><PSPACE>(A) A manufacturer sells a taxable article at retail for $110 tax included. Under section 4216(b)(1) of the Code the constructive sale price (tax included) of the article is determined to be $93. Thereafter, the manufacturer grants an allowance of $10 to the purchaser, which reduces the actual selling price (tax included) to $100. Since the readjustment price exceeds the amount of the constructive sale price, this readjustment is not recognized as a price readjustment under this section.
</PSPACE><P>(B) Subsequently, the manufacturer extends to the purchaser an additional price allowance of $10, thereby reducing the actual sale price to $90. Since the actual sale price is now $3 less than the constructive sale price of $93, the manufacturer has overpaid by the amount of tax attributable to the $3. Assuming the tax rate involved is 10 percent, and the prices involved are tax-included, the overpayment of tax would be $0.27, determined as follows:
</P>
<MATH BORDER="NODRAW" DEEP="22" HTYPE="CENTER" POSITION="NOFLOAT" ROTATION="P" SPAN="2" STRIP="YES">
<img src="/graphics/ec05oc91.021.gif"/></MATH></EXAMPLE>
<P>(ii) <I>Price determined under section 4223(b)(2) of the Code.</I> If a manufacturer (within the meaning of section 4223(a) of the Code) to whom an article is sold or resold free of tax in accordance with the provisions of section 4221(a)(1) of the Code for use in further manufacture diverts the article to a taxable use or sells it in a taxable sale, and pursuant to the provisions of section 4223(b)(2) of the Code computes the tax liability in respect of the use or sale on the price for which the article was sold to the manufacturer or on the price at which the article was sold by the actual manufacturer, a reduction of the price on which the tax was based does not result in an overpayment within the meaning of section 6416(b)(1) of the Code of this section. Moreover, if a manufacturer purchases an article tax free and computes the tax in respect of a subsequent sale of the article pursuant to the provisions of section 4223(b)(2) of the Code, an overpayment does not arise by reason of readjustment of the price for which the article was sold by the manufacturer except where the readjustment results from the return or repossession of the article by the manufacturer, and all of the purchase price is refunded by the manufacturer. See, however, paragraph (b)(4) of this section as to repurchased articles.
</P>
<P>(b) <I>Return of an article</I>—(1) <I>Price readjustment.</I> If a taxable article is returned to the manufacturer who paid the tax imposed by Chapter 32 of the Code on the sale of the article, a price readjustment giving rise to an overpayment results:
</P>
<P>(i) If the article is returned before use, and all of the purchase price is repaid to the vendee or credited to the vendee's account, or
</P>
<P>(ii) If the article is returned under an express or implied warranty as to quality or service, and all or a part of the purchase price is repaid to the vendee or credited to the vendee's account, or
</P>
<P>(iii) If title is still in the seller, as, for example, in the case of certain installment sales contracts, and all or a part of the purchase price is repaid to the vendee or credited to the vendee's account.
</P>
<P>(2) <I>Return of purchase price.</I> For purposes of paragraph (b)(1) of this section, if all of the purchase price of an article has been returned to the vendee, except for an amount retained by the manufacturer pursuant to contract as reimbursement of expense incurred in connection with the sale (such as a handling or restocking charge), all of the purchase price is considered to have been returned to the vendee.
</P>
<P>(3) <I>Taxability of subsequent sale or use.</I> If, under any of the conditions described in paragraph (b)(1) of this section, an article is returned to the manufacturer who paid the tax and all of the purchase price is returned to the vendee, the sale is considered to have been rescinded. Any subsequent sale or use of the article by the manufacturer will be considered to be an original sale or use of the article by the manufacturer which is subject to tax under Chapter 32 of the Code unless otherwise exempt. If under any such condition an article is returned to the manufacturer who paid the tax and only part of the purchase price is returned to the vendee, a subsequent sale of the article by the manufacturer will be subject to tax to the extent that the sale price exceeds the adjusted sale price of the first taxable sale.
</P>
<P>(4) <I>Treatment of other transactions as repurchases.</I> Except as provided in paragraph (b)(1) of this section, a price readjustment will not result when a taxable article is returned to the manufacturer who paid the tax on the sale of the article, even though all or a part of the purchase price is repaid to the vendee or credited to the vendee's account, since such a transaction will be considered to be a repurchase of the article by the manufacturer.
</P>
<P>(c) <I>Repossession of an article.</I> If a taxable article is repossessed by the manufacturer who paid the tax imposed by chapter 32 of the Code on the sale of the article, and all or a part of the purchase price is repaid to the vendee or credited to the vendee's account, a price readjustment giving rise to an overpayment will result. However, if the manufacturer later resells the repossessed article for a price in excess of the original adjusted sale price, the manufacturer will be liable for tax under chapter 32 of the Code to the extent that the resale price exceeds the original adjusted sale price.
</P>
<P>(d) <I>Return or repossession of covering or container.</I> If the covering or container of a taxable article is returned to, or repossessed by the manufacturer who paid the tax imposed by chapter 32 of the Code on the sale of the article, and all or a portion of the purchase price is repaid to the vendee or credited to the vendee's account by reason of the return or repossession of the covering or container, a price adjustment giving rise to an overpayment will result. If a taxable article is considered to have been repurchased, as provided in paragraph (b)(4) of this section, and the covering or container accompanies the taxable article as part of the transaction, the covering or container will also be considered to have been repurchased.
</P>
<P>(e) <I>Bona fide discounts, rebates, or allowances</I>—(1) <I>In general.</I> Except as provided in § 53.175 (relating to readjustments in respect of local advertising), the basic consideration in determining, for purposes of this section, whether a bona fide discount, rebate, or allowance has been made is whether the price actually by, or charged against, the purchaser has in fact been reduced by subsequent transactions between the parties. Generally, the price will be considered to have been readjusted by reason of a bona fide discount, rebate, or allowance, only if the manufacturer who made the taxable sale repays a part of the purchase price in cash to the vendee, or credits the vendee's account, or directly or indirectly reimburses a third party for part or all of the purchase price for the direct benefit of the vendee, in consideration of factors which, if taken into account at the time of the original transaction, would have resulted at that time in a lower sale price. For example, a price readjustment will be considered to have been made when a bona fide discount, rebate, or allowance is given in consideration of such factors as prompt payment, quantity buying over a specified period, the vendee's inventory of an article when new models are introduced, or a general price reduction affecting articles held in stock by the vendee as of a certain date. On the other hand, repayments made to the vendee do not effectuate price readjustments if given in consideration of circumstances under which the vendee has incurred, or is required to incur, an expense which, if treated as a separate item in the original transaction, would have been incudable in the price of the article for purposes of computing the tax.
</P>
<P><I>Examples.</I> The provisions of paragraph (e)(1) of this section may be illustrated by the following examples:
</P>
<EXAMPLE>
<HED>Example (1).</HED><PSPACE>B, a manufacturer of shotguns, bills its distributors in a specified amount per shotgun purchased by them. Thereafter, B issues to each distributor a credit memorandum in the amount of X dollars for each demonstration by the distributor of the shotguns at a sporting goods exhibition. The credit which B allows the distributor for demonstration of B's product does not effect a readjustment of price.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example (2).</HED><PSPACE>C, a manufacturer of firearms, bills its dealers in a specified amount per firearm purchased by them. Thereafter, C remits to the dealer X dollars of the original sale price for each firearm sold by the dealer. An additional amount of Y dollars is paid to the dealer upon a showing by the dealer that the dealer has paid Y dollars to the salesperson who made the sale. In this case, the X dollars paid to the dealer by C constitutes a bona fide discount, rebate, or allowance since payment of such amount is in the nature of a price reduction. In addition, the Y dollars paid to the dealer in reimbursement for the amount paid by the dealer to the salesperson who made the sale, also constitutes a bona fide discount, rebate, or allowance.</PSPACE></EXAMPLE>
<P>(2) <I>Inability to collect price.</I> A charge-off of an amount outstanding in an open account, due to inability to collect, is not a bona fide discount, rebate, or allowance and does not, in and of itself, give rise to a price readjustment within the meaning of this section.
</P>
<P>(3) <I>Loss or damage in transit.</I> If title to an article has passed to the vendee, the subsequent loss, damage, or destruction of the article while in the possession of a carrier for delivery to the vendee does not, in and of itself, affect the price at which the article was sold. However, if the article was sold under a contract providing that, if the article was lost, damaged, or destroyed in transit, title would revert to the vendor and the vendor would reimburse the vendee in full for the sale price, then the original sale is considered to have been rescinded. The vendor is entitled to credit or refund of the tax paid upon reimbursement of the full tax-included sale price to the vendee.


</P>
</DIV8>


<DIV8 N="§ 53.175" NODE="27:2.0.1.2.6.9.155.17" TYPE="SECTION">
<HEAD>§ 53.175   Readjustment for local advertising charges.</HEAD>
<P>(a) <I>In general.</I> If a manufacturer has paid the tax imposed by chapter 32 of the Code on the price of any article sold by the manufacturer and thereafter has repaid a portion of the price to the purchaser or any subsequent vendee in reimbursement of expenses for local advertising of the article or any other article sold by the manufacturer which is taxable at the same rate under the same section of chapter 32 of the Code, the reimbursement will be considered a price readjustment constituting an overpayment which the manufacturer may claim as a credit or refund. The amount of the reimbursement may not, however, exceed the limitation provided by section 4216(e)(2) of the Code and § 53.101, determined as of the close of the calendar quarter in which the reimbursement is made or as of the close of any subsequent calendar quarter of the same calendar year in which it is made. The term “local advertising,” as used in this section, has the same meaning as prescribed by section 4216(e)(4) of the Code and includes generally, advertising which is broadcast over a radio station or television station, or appears in a newspaper or magazine, or is displayed by means of an outdoor advertising sign or poster.
</P>
<P>(b) <I>Local advertising charges excluded from taxable price in one year but repaid in following year</I>—(1) <I>Determination of price readjustments for year in which charge is repaid.</I> If the tax imposed by chapter 32 of the Code was paid with respect to local advertising charges that were excluded in computing the taxable price of an article sold in any calendar year but are not repaid to the manufacturer's purchaser or any subsequent vendee before May 1 of the following calendar year, the subsequent repayment of those charges by the manufacturer in reimbursement of expenses for local advertising will be considered a price readjustment constituting an overpayment which the manufacturer may claim as a credit or refund. The amount of the reimbursement may not, however, exceed the limitation provided by section 4216(e)(2) of the Code and § 53.101, determined as of the close of the calendar quarter in which the reimbursement is made or as of the close of any subsequent calendar quarter of the same calendar year in which it is made.
</P>
<P>(2) <I>Redetermination of price readjustments for year in which charge was made.</I> If the tax imposed by chapter 32 of the Code was paid with respect to local advertising charges that were excluded in computing the taxable price of an article sold in any calendar year but are not repaid to the manufacturer's purchaser or any subsequent vendor before May 1 of the following calendar year, the manufacturer may make a redetermination, in respect of the calendar year in which the charge was made, of the price readjustments constituting an overpayment which the manufacturer may claim as a credit or refund. This redetermination may be made by excluding the local advertising charges made in the calendar year that became taxable as of May 1 of the following calendar year.


</P>
</DIV8>


<DIV8 N="§ 53.176" NODE="27:2.0.1.2.6.9.155.18" TYPE="SECTION">
<HEAD>§ 53.176   Supporting evidence required in case of price readjustments.</HEAD>
<P>No credit or refund of an overpayment arising by reason of a price readjustment described in § 53.174 or § 53.175 shall be allowed unless the manufacturer who paid the tax submits a statement, supported by sufficient available evidence:
</P>
<P>(a) Describing the circumstances which gave rise to the price readjustment,
</P>
<P>(b) Identifying the article in respect of which the price readjustment was allowed,
</P>
<P>(c) Showing the price at which the article was sold, the amount of tax paid in respect of the article, and the date on which the tax was paid,
</P>
<P>(d) Giving the name and address of the purchaser to whom the article was sold, and
</P>
<P>(e) Showing the amount repaid to the purchaser or credited to the purchaser's account.


</P>
</DIV8>


<DIV8 N="§ 53.177" NODE="27:2.0.1.2.6.9.155.19" TYPE="SECTION">
<HEAD>§ 53.177   Certain exportations, uses, sales, or resales causing overpayments of tax.</HEAD>
<P>In the case of any payment of tax under chapter 32 of the Code that is determined to be an overpayment by reason of certain exportations, uses, sales, or resales described in section 6416(b)(2) of the Code and § 53.178, the person who paid the tax may file a claim for refund of the overpayment or, in the case of overpayments under chapter 32 of the Code, may claim credit for the overpayment on any return of tax under this subpart which the person subsequently files. However, under the circumstances described in section 6416(c) of the Code and § 53.184, the overpayments under chapter 32 may be refunded to an exporter or shipper. No interest shall be paid on any credit or refund allowed under this section. For provisions relating to the evidence required in support of a claim for credit or refund under this section, see 27 CFR 70.123 (Procedure and Administration) and 53.179. For provisions authorizing the taking of a credit in lieu of filing a claim for refund, see section 6416(d) of the Code and § 53.185.


</P>
</DIV8>


<DIV8 N="§ 53.178" NODE="27:2.0.1.2.6.9.155.20" TYPE="SECTION">
<HEAD>§ 53.178   Exportations, uses, sales, and resales included.</HEAD>
<P>(a) <I>In general.</I> The payment of tax imposed by chapter 32 of the Code on the sale of any article, will be considered to be an overpayment by reason of any exportation, use, sale, or resale described in any one of paragraphs (b) to (e), inclusive, of this section. This section applies only in those cases where the exportation, use, sale, or resale (or any combination thereof) referred to in any one or more of these paragraphs occurs before any other use. If any article is sold or resold for a use described in any one of these paragraphs and is not in fact so used, the paragraph is treated in all respects as inapplicable.
</P>
<P>(b) <I>Exportation of tax-paid articles.</I> A payment of tax under chapter 32 of the Code on the sale of any article will be considered to be an overpayment under section 6416(b)(2)(A) of the Code if the article is by any person exported to a foreign country or shipped to a possession of the United States. It is immaterial for purposes of this paragraph, whether the person who made the taxable sale had knowledge at the time of the sale that the article was being purchased for export to a foreign country or shipment to a possession of the United States. See § 53.184 for the circumstances under which a claim for refund by reason of the exportation of an article may be claimed by the exporter or shipper, rather than by the person who paid the tax. For definition of the term “possession of the United States”, see § 53.11.
</P>
<P>(c) <I>Supplies for vessels or aircraft.</I> A payment of tax under chapter 32 of the Code on the sale of any article, will be considered to be an overpayment under section 6416(b)(2)(B) of the Code if the article is used by any person, or is sold by any person for use by the purchaser, as supplies for vessels or aircraft. The term “supplies for vessels or aircraft”, as used in this paragraph, has the same meaning as when used in sections 4221(a)(3), 4221(d)(3), and 4221(e)(1) of the Code, and the regulations thereunder (§ 53.134(b)(1)).
</P>
<P>(d) <I>Use by State or local government.</I> A payment of tax under chapter 32 of the Code on the sale of any article will be considered to be an overpayment under section 6416(b)(2)(C) of the Code if the article is sold by any person to a State, any political subdivision thereof, or the District of Columbia for the exclusive use of a State, any political subdivision thereof, or the District of Columbia. For provisions relating to tax-free sales to a State, any political subdivision thereof, or the District of Columbia, see section 4221(a)(4) of the Code and § 53.131.
</P>
<P>(e) <I>Use by nonprofit educational organization.</I> A payment of tax under chapter 32 of the Code on the sale of any article will be considered to be an overpayment under section 6416(b)(2)(D) of the Code if the article is sold by any person to a nonprofit educational organization for its exclusive use. The term “nonprofit educational organization”, as used in this paragraph (e), has the same meaning as when used in section 4221 (a)(5) or (d)(5) of the Code, whichever applies, and the regulations under § 53.136.


</P>
</DIV8>


<DIV8 N="§ 53.179" NODE="27:2.0.1.2.6.9.155.21" TYPE="SECTION">
<HEAD>§ 53.179   Supporting evidence required in case of manufacturers tax involving exportations, uses, sales, or resales.</HEAD>
<P>(a) <I>Evidence to be submitted by claimant.</I> No claim for credit or refund of an overpayment, within the meaning of section 6416(b)(2) of the Code and § 53.178, of tax under chapter 32 of the Code shall be allowed unless the person who paid the tax submits with the claim the evidence required by § 53.172(b)(2) and a statement, supported by sufficient available evidence:
</P>
<P>(1) Showing the amount claimed in respect of each category of exportations, uses, sales, or resales on which the claim is based and which give rise to a right of credit or refund under section 6416(b)(2) of the Code and § 53.177,
</P>
<P>(2) Identifying the article, both as to nature and quantity, in respect of which credit or refund is claimed,
</P>
<P>(3) Showing the amount of tax paid in respect of the article or articles and the dates of payment, and
</P>
<P>(4) Indicating that the person claiming a credit or refund possesses evidence (as set forth in paragraph (b)(1) of this section) that the article has been exported, or has been used, sold, or resold in a manner or for a purpose which gives rise to an overpayment within the meaning of section 6416(b)(2) of the Code and § 53.178.
</P>
<P>(b) <I>Evidence required to be in possession of claimant</I>—(1) <I>Evidence required under paragraph (a)(4)</I>—(i) <I>In general.</I> The evidence required to be retained by the person who paid the tax, as provided in paragraph (a)(4) of this section, must, in the case of an article exported, consist of proof of exportation in the form prescribed in § 53.133 or must, in the case of other articles sold tax-paid by that person, consist of a certificate, executed and signed by the ultimate purchaser of the article, in the form prescribed in paragraph (b)(1)(ii) of this section. However, if the article to which the claim relates has passed through a chain of sales from the person who paid the tax to the ultimate purchaser, the evidence required to be retained by the person who paid the tax may consist of a certificate, executed and signed by the ultimate vendor of the article, in the form provided in paragraph (b)(1)(iii) of this section, rather than the proof of exportation itself or the certificate of the ultimate purchaser.
</P>
<P>(ii) <I>Certificate of ultimate purchaser.</I> (A) The certificate executed and signed by the ultimate purchaser of the article to which the claim relates must identify the article, both as to nature and quantity; show the address of the ultimate purchaser of the article, and the name and address of the ultimate vendor of the article; and describe the use actually made of the article in sufficient detail to establish that credit or refund is due, except that the use to be made of the article must be described in lieu of actual use if the claim is made by reason of the sale or resale of an article for a specified use which gives rise to the overpayment.
</P>
<P>(B) If the certificate sets forth the use to be made of any article, rather than its actual use, it must show that the ultimate purchaser has agreed to notify the claimant if the article is not in fact used as specified in the certificate.
</P>
<P>(C) The certificate must also contain a statement that the ultimate purchaser understands that the ultimate purchaser and any other party may, for fraudulent use of the certificate, be subject to all applicable criminal penalties under the Internal Revenue Code.
</P>
<P>(D) A purchase order will be acceptable in lieu of a separate certificate of the ultimate purchaser if it contains all the information required by this paragraph.
</P>
<P>(iii) <I>Certificate of ultimate vendor.</I> Any certificate executed and signed by an ultimate vendor as evidence to be retained by the person who paid the tax as provided in paragraph (a)(4) of this section may be executed with respect to any one or more overpayments by the person which arose under section 6416(b)(2) and § 53.178 by reason of exportations, uses, sales or resales, occurring within any period of not more than 12 consecutive calendar quarters, the beginning and ending dates of which are specified in the certificate. A certificate supporting a claim for credit or refund under this section shall contain the following:
</P>
<P>(A) Name of ultimate vendor if other than person executing the certificate.
</P>
<P>(B) Statement that article(s) was purchased by the ultimate vendor tax-paid and was thereafter exported, used, sold, or resold.
</P>
<P>(C) Description of proof which supports exportation or certificate as to use executed by ultimate purchaser.
</P>
<P>(D) Statement that ultimate vendor retains such proof for 3 years from the date of the statement and will, upon request, supply such proof at any time within such 3 year period to the taxpayer to establish that credit or refund is due in respect of the article.
</P>
<P>(E) Statement that to the best knowledge and belief of the person executing the certificate, no statement in respect of the proof of exportation or certificate has previously been executed and that the person executing the certificate understands that any fraudulent use of the certificate may subject the person executing the certificate or any other party to all applicable criminal penalties under the Code.
</P>
<P>(F) Name, title, address and signature of person executing certificate and date signed.
</P>
<P>(G) Description of all articles covered by the certificate, with the corresponding vendor's invoice number, date of resale of article, quantity, whether articles were exported or used and the use made of article or to be made of article.
</P>
<P>(iv) <I>TTB F 5600.33.</I> TTB F 5600.33, Statement of Ultimate Vendor, which is available as provided in § 53.21(b), when completed, contains all necessary information for a properly executed certificate. Additional copies may be reproduced as needed.
</P>
<P>(2) <I>Repayment or consent of ultimate vendor.</I> If the person claiming credit or refund or an overpayment to which this section applies has repaid, or agreed to repay, the amount of the overpayment to the ultimate vendor or if the ultimate vendor consents to the allowance of the credit or refund, a statement to that effect, signed by the ultimate vendor, must be shown on, or made a part of, the supporting evidence required under this section to be retained by the person claiming the credit or refund. In this regard, see § 53.172(b)(2).
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-380, 61 FR 37007, July 16, 1996; T.D. TTB-44, 71 FR 16958, Apr. 4, 2006; T.D. TTB-196, 89 FR 87950, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 53.180" NODE="27:2.0.1.2.6.9.155.22" TYPE="SECTION">
<HEAD>§ 53.180   Tax-paid articles used for further manufacture and causing overpayments of tax.</HEAD>
<P>In the case of any payment of tax under chapter 32 of the Code that is determined to be an overpayment under section 6416(b)(3) of the Code and § 53.181 by reason of the sale of an article, directly or indirectly, by the manufacturer of the article to a subsequent manufacturer who uses the article in further manufacture of a second article or who sells the article with, or as a part of, the second article manufactured or produced by the subsequent manufacturer, the subsequent manufacturer may file claim for refund of the overpayment or may claim credit for the overpayment on any return of tax under this subpart subsequently filed. No interest shall be paid on any credit or refund allowed under this section. For provisions relating to the evidence required in support of a claim for credit or refund, see 27 CFR § 70.123 (Procedure and Administration), 53.172 and 53.182. For provisions authorizing the taking of a credit in lieu of filing a claim for refund, see section 6416(d) of the Code and § 53.185.


</P>
</DIV8>


<DIV8 N="§ 53.181" NODE="27:2.0.1.2.6.9.155.23" TYPE="SECTION">
<HEAD>§ 53.181   Further manufacture included.</HEAD>
<P>(a) <I>In general.</I> The payment of tax imposed by chapter 32 of the Code on the sale of any article by a manufacturer of the article will be considered to be an overpayment by reason of any use in further manufacture, or sale as part of a second manufactured article, described in paragraph (b) of this section. This section applies in those cases where the exportation, use, or sale (or any combination of those activities) referred to in this paragraph occurs before any other use.
</P>
<P>(b) <I>Use of tax-paid articles in further manufacture described in section 6416(b)(3)(A) of the Code.</I> A payment of tax under chapter 32 of the Code on the sale of any article, directly or indirectly, by the manufacturer of the article to a subsequent manufacturer will be considered to be an overpayment under section 6416(b)(3)(A) of the Code if the article is used by the subsequent manufacturer as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the subsequent manufacturer which is taxable under chapter 32 of the Code. For this purpose it is immaterial whether the second article is sold or otherwise disposed of, or if sold, whether the sale is a taxable sale. Any article to which this paragraph applies which would have been used in the manufacture or production of a second article, except for the fact that it was broken or rendered useless in the process of manufacturing or producing the second article, will be considered to have been used as a component part of the second article.
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31084, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.182" NODE="27:2.0.1.2.6.9.155.24" TYPE="SECTION">
<HEAD>§ 53.182   Supporting evidence required in case of tax-paid articles used for further manufacture.</HEAD>
<P>(a) <I>Evidence to be submitted by claimant.</I> No claim for credit or refund of an overpayment, within the meaning of section 6416(b)(3) of the Code and § 53.181 shall be allowed unless the subsequent manufacturer submits with the claim the evidence required by § 53.132 and a statement, supported by sufficient available evidence:
</P>
<P>(1) Showing the amount claimed in respect of each category of exportations, uses, or sales on which the claim is based and which give rise to a right of credit or refund under section 6416(b)(3) of the Code and § 53.180,
</P>
<P>(2) Showing the name and address of the manufacturer, producer, or importer of the article in respect of which credit or refund is claimed,
</P>
<P>(3) Identifying the article, both as to nature and quantity, in respect of which credit or refund is claimed,
</P>
<P>(4) Showing the amount of tax paid in respect of the article by the manufacturer or producer of the article and the date of payment.
</P>
<P>(5) Indicating that the article was used by the claimant as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the manufacturer or was sold on or in connection with, or with the sale of, a second article manufactured or produced by the manufacturer, and
</P>
<P>(6) Identifying the second article, both as to nature and quantity.
</P>
<P>(b) <I>Evidence required to be in possession of claimant</I>—(1) <I>Certificate of ultimate purchaser of second article.</I> The certificate executed and signed by the ultimate purchaser of the second article must contain the same information as that required in § 53.179(b)(1)(ii), except that the information must be furnished in respect of the second article, rather than the article to which the claim relates.
</P>
<P>(2) <I>Certificate of ultimate vendor of second article.</I> Any certificate executed and signed by an ultimate vendor as evidence to be retained by the person claiming credit or refund must be executed in the same form and manner as that provided in § 53.179(b)(2)(iii).
</P>
<P>(3) <I>Repayment or consent of ultimate vendor.</I> If the person claiming credit or refund of an overpayment to which this section applies has repaid, or agreed to repay, the amount of the overpayment to the ultimate vendor or if the ultimate vendor consents to the allowance of the credit or refund, a statement to that effect, signed by the ultimate vendor, must be shown on, or made a part of, the evidence required to be retained by the person claiming the credit or refund. In this regard, see § 53.172(b)(2).
</P>
<CITA TYPE="N">[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-312, 56 FR 31085, July 9, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 53.183" NODE="27:2.0.1.2.6.9.155.25" TYPE="SECTION">
<HEAD>§ 53.183   Return of installment accounts causing overpayments of tax.</HEAD>
<P>(a) <I>In general.</I> In the case of any payment of tax under section 4216(d)(1) of the Code in respect of the sale of any installment account that is determined to be an overpayment under section 6416(b)(5) of the Code and paragraph (b) of this section upon return of the installment account, the person who paid the tax may file a claim for refund of the overpayment or may claim credit for the overpayment on any return of tax under this subpart which that person subsequently files. No interest shall be paid on any credit or refund allowed under this section. For provisions relating to the evidence required in support of a claim for credit or refund under this section, see 27 CFR 70.123 (Procedure and Administration) and paragraph (c) of this section. For provisions authorizing the taking of a credit in lieu of filing a claim for refund, see section 6416(d) of the Code and § 53.185.
</P>
<P>(b) <I>Overpayment of tax allocable to repaid consideration.</I> The payment of tax imposed by section 4216(d)(1) of the Code on the sale of an installment account by the manufacturer will be considered to be an overpayment under section 6416(b)(5) of the Code to the extent of the tax allocable to any consideration repaid or credited to the purchaser of the installment account upon the return of the account to the manufacturer pursuant to the agreement under which the account originally was sold, if the readjustment of the consideration occurs pursuant to the provisions of the agreement. The tax allocable to the repaid or credited consideration is the amount which bears the same ratio to the total tax paid under section 4216(d)(1) of the Code with respect to the installment account as the amount of consideration repaid or credited to the purchaser bears to the total consideration for which the account was sold. This paragraph (b) does not apply where an installment account is originally sold pursuant to the order of, or subject to the approval of, a court of competent jurisdiction in a bankruptcy or insolvency proceeding.
</P>
<P>(c) <I>Evidence to be submitted by claimant.</I> No claim for credit or refund of an overpayment, within the meaning of section 6416(b)(5) of the Code and paragraph (b) of this section, of tax under section 4216(d)(1) of the Code shall be allowed unless the person who paid the tax submits with the claim a statement, supported by sufficient available evidence, indicating:
</P>
<P>(1) The name and address of the person to whom the installment account was sold,
</P>
<P>(2) The amount of tax due under section 4216(d)(1) of the Code by reason of the sale of the installment account, the amount of the tax paid under section 4216(d)(1) with respect to the sale, and the date of payment,
</P>
<P>(3) The amount for which the installment account was sold,
</P>
<P>(4) The amount which was repaid or credited to the purchaser of the account by reason of the return of the account to the person claiming the credit or refund, and
</P>
<P>(5)(i) The fact that the amount repaid or credited to the purchaser of the account was so repaid or credited pursuant to the agreement under which the account was sold, and
</P>
<P>(ii) The fact that the account was returned to the manufacturer pursuant to that agreement.


</P>
</DIV8>


<DIV8 N="§ 53.184" NODE="27:2.0.1.2.6.9.155.26" TYPE="SECTION">
<HEAD>§ 53.184   Refund to exporter or shipper.</HEAD>
<P>(a) <I>In general.</I> Any payment of tax imposed by chapter 32 of the Code that is determined to be an overpayment within the meaning of section 6416(b)(2)(A) of the Code and §§ 53.178 and 53.179, by reason of the exportation of any article may be refunded to the exporter or shipper of the article pursuant to section 6416(c) of the Code, if:
</P>
<P>(1) The exporter or shipper files a claim for refund of the overpayment, and
</P>
<P>(2) The person who paid the tax waives the right to claim credit or refund of the tax.
</P>
<FP>No interest shall be paid on any refund allowed under this section. For provisions relating to the evidence required in support of a claim under this paragraph, see 27 CFR 70.123 (Procedure and Administration) and paragraph (b) of this section.
</FP>
<P>(b) <I>Supporting evidence required.</I> No claim for refund of any overpayment of tax to which this section applies shall be allowed unless the exporter or shipper submits with that claim proof of exportation in the form prescribed by § 53.133, and a statement, signed by the person who paid the tax, showing:
</P>
<P>(1) That the person who paid the tax waives the right to claim credit or refund of the tax, and
</P>
<P>(2) The amount of tax paid on the sale of the article and the date of payment.


</P>
</DIV8>


<DIV8 N="§ 53.185" NODE="27:2.0.1.2.6.9.155.27" TYPE="SECTION">
<HEAD>§ 53.185   Credit on returns.</HEAD>
<P>Any person entitled to claim refund of any overpayment of tax imposed by chapter 32 of the Code may, in lieu of claiming refund of the overpayment, claim credit for the overpayment on any return of tax under this subpart subsequently filed. Any such credit claimed on a return must be supported by the evidence prescribed in the applicable regulations in this subpart and 27 CFR 70.123 (Procedure and Administration).


</P>
</DIV8>


<DIV8 N="§ 53.186" NODE="27:2.0.1.2.6.9.155.28" TYPE="SECTION">
<HEAD>§ 53.186   Accounting procedures for like articles.</HEAD>
<P>(a) <I>Identification of manufacturer.</I> In applying section 6416 of the Code and the regulations thereunder, a person who has purchased like articles from various manufacturers may determine the particular manufacturer from whom that person purchased any one of those articles by a first-in, first-out (FIFO) method, by a last-in, first-out (LIFO) method, or by any other consistent method approved by the appropriate TTB officer. For the first year for which a person makes a determination under this section, the person may adopt any one of the following methods without securing prior approval by the appropriate TTB officer.
</P>
<P>(1) FIFO method.
</P>
<P>(2) LIFO method.
</P>
<P>(3) Any method by which the actual manufacturer of the article is in fact identified.
</P>
<P>(4) Any other method of determining the manufacturer of a particular article must be approved by the appropriate TTB officer before its adoption. After any method for identifying the manufacturer has been properly adopted, it may not be changed without first securing the consent of the appropriate TTB officer.
</P>
<P>(b) <I>Determining amount of tax paid.</I> In applying section 6416 and §§ 53.171-53.186, if the identity of the manufacturer of any article has been determined by a person pursuant to a method prescribed in paragraph (a) of this section, that manufacturer of the article must determine the tax paid under Chapter 32 of the Code with respect to that article consistently with the method used in identifying the manufacturer.


</P>
</DIV8>


<DIV8 N="§ 53.187" NODE="27:2.0.1.2.6.9.155.29" TYPE="SECTION">
<HEAD>§ 53.187   OMB control numbers.</HEAD>
<P>(a) <I>Purpose.</I> This section collects and displays the control numbers assigned to collections of information in this part by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1980. TTB intends that this section comply with the requirements of §§ 1320.12, 1320.13, and 1320.14 of 5 CFR part 1320 (OMB regulations implementing the Paperwork Reduction Act), for the display of control numbers assigned by OMB to collections of information in the regulations in this part.
</P>
<P>(b) <I>Display.</I>
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">27 CFR part 53
<br/>section number
</TH><TH class="gpotbl_colhed" scope="col">OMB control number(s)
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.1</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.3</TD><TD align="left" class="gpotbl_cell">1545-0685
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.11</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.92</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.93</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.99</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.131</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.132</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.133</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.134</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.136</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.140</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.141</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.142</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.143</TD><TD align="left" class="gpotbl_cell">1545-0023
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.151</TD><TD align="left" class="gpotbl_cell">1545-0023, 1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.152</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.153</TD><TD align="left" class="gpotbl_cell">1545-0257, 1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.155</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.157</TD><TD align="left" class="gpotbl_cell">1545-0257
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.171</TD><TD align="left" class="gpotbl_cell">1545-0023, 1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.172</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.173</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.174</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.175</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.176</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.177</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.178</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.179</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.180</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.181</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.182</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.183</TD><TD align="left" class="gpotbl_cell">1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.184</TD><TD align="left" class="gpotbl_cell">1545-0023, 1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.185</TD><TD align="left" class="gpotbl_cell">1545-0023, 1545-0723
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">§ 53.186</TD><TD align="left" class="gpotbl_cell">1545-0723</TD></TR></TABLE></DIV></DIV>
</DIV8>

</DIV6>

</DIV5>

</DIV4>


<DIV4 N="S D" NODE="27:2.0.1.3" TYPE="SUBCHAP">
<HEAD>SUBCHAPTERS D-E [RESERVED]


</HEAD>
</DIV4>


<DIV4 N="F" NODE="27:2.0.1.4" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER F—PROCEDURES AND PRACTICES


</HEAD>

<DIV5 N="70" NODE="27:2.0.1.4.7" TYPE="PART">
<HEAD>PART 70—PROCEDURE AND ADMINISTRATION
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>5 U.S.C. 301 and 552; 26 U.S.C. 4181, 4182, 5123, 5203, 5207, 5275, 5367, 5415, 5504, 5555, 5684(a), 5741, 5761(b), 5802, 6020, 6021, 6064, 6102, 6109, 6155, 6159, 6201, 6203, 6204, 6301, 6303, 6311, 6313, 6314, 6321, 6323, 6325, 6326, 6331-6343, 6401-6404, 6407, 6416, 6423, 6501-6503, 6511, 6513, 6514, 6532, 6601, 6602, 6611, 6621, 6622, 6651, 6653, 6656-6658, 6665, 6671, 6672, 6701, 6723, 6801, 6862, 6863, 6901, 7011, 7101, 7102, 7121, 7122, 7207, 7209, 7214, 7304, 7401, 7403, 7406, 7423, 7424, 7425, 7426, 7429, 7430, 7432, 7502, 7503, 7505, 7506, 7513, 7601-7606, 7608-7610, 7622, 7623, 7653, 7805.




</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, unless otherwise noted.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 70 appear by T.D. ATF-450, 66 FR 29022-29030, May 29, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:2.0.1.4.7.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 70.1" NODE="27:2.0.1.4.7.1.191.1" TYPE="SECTION">
<HEAD>§ 70.1   General.</HEAD>
<P>(a) The regulations in Subparts C, D, and E of this part set forth the procedural and administrative rules of the Alcohol and Tobacco Tax and Trade Bureau for:
</P>
<P>(1) The issuance and enforcement of summonses, examination of books of account and witnesses, administration of oaths, entry of premises for examination of taxable objects, granting of rewards for information, canvass for taxable objects and persons, and authority of TTB officers.
</P>
<P>(2) The use of commercial banks for payment of excise taxes imposed by 26 U.S.C. Subtitles E and F.
</P>
<P>(3) The preparing or executing of returns; deposits; payment on notice and demand; assessment; abatements, credits and refunds; limitations on assessment; limitations on credit or refund; periods of limitation in judicial proceedings; interest; additions to tax, additional amounts, and assessable penalties; enforced collection activities; authority for establishment, alteration, and distribution of stamps, marks, or labels; jeopardy assessment of alcohol, tobacco, and firearms taxes, registration of dealers in alcohol fit for beverage use, and registration of persons paying a special tax.
</P>
<P>(4) Distilled spirits, wines, beer, tobacco products, cigarette papers and tubes, firearms, ammunition, and explosives.
</P>
<P>(b) The regulations in Subpart F of this part relate to the limitations imposed by 26 U.S.C. 6423, on the refund or credit of tax paid or collected in respect to any article of a kind subject to a tax imposed by Part I, Subchapter A of Chapter 51, I.R.C., or by any corresponding provision of prior internal revenue laws.
</P>
<P>(c) The regulations in Subpart G of this part implement 26 U.S.C. 5064, which permits payments to be made by the United States for amounts equal to the internal revenue taxes paid or determined and customs duties paid on distilled spirits, wines, and beer, previously withdrawn, that were lost, made unmarketable, or condemned by a duly authorized official as a result of disaster, vandalism, or malicious mischief. This subpart applies to disasters or other specified causes of loss, occurring on or after February 1, 1979. This subpart does not apply to distilled spirits, wines, and beer manufactured in Puerto Rico and brought into the United States.
</P>
<CITA TYPE="N">[T.D. ATF-376, 61 FR 31031, June 19, 1996, as amended by T.D. TTB-44, 71 FR 16958, Apr. 4, 2006; T.D. TTB-79, 74 FR 37424, July 28, 2009; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 70.2" NODE="27:2.0.1.4.7.1.191.2" TYPE="SECTION">
<HEAD>§ 70.2   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. ATF-376, 61 FR 31031, June 19, 1996, as amended by T.D. ATF-450, 66 FR 29022, May 29, 2001; T.D. TTB-44, 71 FR 16959, Apr. 4, 2006; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.3" NODE="27:2.0.1.4.7.1.191.3" TYPE="SECTION">
<HEAD>§ 70.3   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.70, Delegation of the Administrator's Authorities in 27 CFR Part 70, Procedure and Administration. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16959, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.4.7.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 70.11" NODE="27:2.0.1.4.7.2.191.1" TYPE="SECTION">
<HEAD>§ 70.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words imparting the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.70, Delegation of the Administrator's Authorities in 27 CFR Part 70, Procedure and Administration.
</P>
<P><I>Bureau.</I> The Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Commercial bank.</I> A bank, whether or not a member of the Federal Reserve System, which has access to the Federal Reserve Communications System (FRCS) or Fedwire. The “FRCS” or “Fedwire” is a communications network that allows Federal Reserve System member banks to effect a transfer of funds for their customers (or other commercial banks) to the Treasury Account at the Federal Reserve Bank of New York.
</P>
<P><I>Electronic fund transfer or EFT.</I> Any transfer of funds effected by a taxpayer's commercial bank, either directly or through a correspondent banking relationship, via the Federal Reserve Communications System (FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of New York.
</P>
<P><I>Enforced collection.</I> Collection of taxes when a taxpayer neglects or refuses to pay voluntarily. Includes such administrative measures as liens and levies.
</P>
<P><I>IRC.</I> IRC refers to the Internal Revenue Code of 1986, as amended (codified in 26 U.S.C.).
</P>
<P><I>Levy.</I> The taking of property by seizure and sale or by collection of money due to the debtor, such as wages.
</P>
<P><I>Lien.</I> A charge upon real or personal property for the satisfaction of some debt or performance of an obligation.
</P>
<P><I>Person.</I> An individual, a trust, estate, partnership, association or other unincorporated organization, fiduciary, company, or corporation, or the District of Columbia, a State, or a political subdivision thereof (including a city, county, or other municipality).
</P>
<P><I>Provisions of 26 U.S.C. enforced and administered by the Bureau.</I> Sections 4181 and 4182 of the IRC; subchapters F and G of chapter 32 of the IRC insofar as they relate to activities administered and enforced with respect to sections 4181 and 4182 of the IRC; chapters 51 and 52 of subtitle E of the IRC; and subtitle F of the IRC insofar as it relates to any of the foregoing.
</P>
<P><I>Secretary of the Treasury or Secretary.</I> The Secretary of the Treasury or a delegate of the Secretary.
</P>
<P><I>Seizure.</I> The act of taking possession of property to satisfy a tax liability or by virtue of an execution.
</P>
<P><I>Treasury Account.</I> The Department of the Treasury's General Account at the Federal Reserve Bank of New York.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, Ch. 736, 68A Stat. 775 (26 U.S.C. 6301); June 29, 1956, Ch. 462, 70 Stat. 391 (26 U.S.C. 6301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13535, Mar. 31, 1978; 44 FR 55841, Sept. 28,979, as amended by T.D. ATF-77, 46 FR 3002, Jan. 13, 1981; T.D. ATF-301, 55 FR 47608, Nov. 14, 1990; T.D. ATF-331, 57 FR 40327, Sept. 3, 1992; T.D. ATF-378, 61 FR 29955, June 13, 1996; T.D. ATF-450, 66 FR 29022, May 29, 2001; T.D. TTB-44, 71 FR 16959, Apr. 4, 2006; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.4.7.3" TYPE="SUBPART">
<HEAD>Subpart C—Discovery of Liability and Enforcement of Laws</HEAD>


<DIV7 N="191" NODE="27:2.0.1.4.7.3.191" TYPE="SUBJGRP">
<HEAD>Examination and Inspection</HEAD>


<DIV8 N="§ 70.21" NODE="27:2.0.1.4.7.3.191.1" TYPE="SECTION">
<HEAD>§ 70.21   Canvass for taxable persons and objects.</HEAD>
<P>Each appropriate TTB officer shall, to the extent deemed practicable, cause officers or employees under the appropriate TTB officer's supervision and control to proceed, from time to time, and inquire after and concerning all persons therein who may be liable to pay any tax, imposed under provisions of 26 U.S.C. enforced and administered by the Bureau, and all persons owning or having the care and management of any objects with respect to which such tax is imposed.
</P>
<CITA TYPE="N">[T.D. ATF-331, 57 FR 40327, Sept. 3, 1992, as amended by T.D. ATF-450, 66 FR 29023, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.22" NODE="27:2.0.1.4.7.3.191.2" TYPE="SECTION">
<HEAD>§ 70.22   Examination of books and witnesses.</HEAD>
<P>(a) <I>In general.</I> For the purpose of ascertaining the correctness of any return, making a return where none has been made, determining the liability of any person for any tax (including any interest, additional amount, addition to the tax, or civil penalty) imposed under provisions of the IRC enforced and administered by the Bureau or the liability at law or in equity of any transferee or fiduciary of any person in respect of any such tax, or collecting any such liability, or inquiring into any offense connected with the administration or enforcement of the internal revenue laws that are administered and enforced by the Bureau, any appropriate TTB officer may examine any books, papers, records or other data which may be relevant or material to such inquiry; and take such testimony of the person concerned, under oath, as may be relevant to such inquiry.
</P>
<P>(b) <I>Summonses.</I> For the purposes described in paragraph (a) of this section the appropriate TTB officers are authorized to summon the person liable for tax or required to perform the act, or any officer or employee of such person, or any person having possession, custody, or care of books of accounts containing entries relating to the business of the person liable for tax or required to perform the act, or any person deemed proper, to appear before a designated officer or employee of the Bureau at a time and place named in the summons and to produce such books, papers, records, or other data, and to give such testimony, under oath, as may be relevant or material to such inquiry; and take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry. Such TTB officer may designate an appropriate TTB officer as the individual before whom a person summoned pursuant to 26 U.S.C. 7602 shall appear. Any such officer, when so designated in a summons, is authorized to take testimony under oath of the person summoned and to receive and examine books, papers, records, or other data produced in compliance with the summons. The authority to issue a summons may not be redelegated. See § 70.302 of this part for rules concerning payments to certain persons who are summoned to give information to the Bureau under 26 U.S.C. 7602 and this section.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, Chapter 736, 68A Stat. 901; (26 U.S.C. 7602))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-42, 42 FR 8367, Feb. 10, 1977; T.D. ATF-301, 55 FR 47608, Nov. 14, 1990; T.D. ATF-331, 57 FR 40328, Sept. 3, 1992; T.D. ATF-450, 66 FR 29023, May 29, 2001; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 70.23" NODE="27:2.0.1.4.7.3.191.3" TYPE="SECTION">
<HEAD>§ 70.23   Service of summonses.</HEAD>
<P>(a) <I>In general.</I> A summons issued under 26 U.S.C. 7602 shall be served by an attested copy delivered in hand to the person to whom it is directed, or left at his last and usual place of abode. The certificate of service signed by the person serving the summons shall be evidence of the facts it states on the hearing of an application for the enforcement of the summons. When the summons requires the production of books, papers, records, or other data, it shall be sufficient if such books, papers, records, or other data are described with reasonable certainty.
</P>
<P>(b) <I>Persons who may serve summonses.</I> Any appropriate TTB officer may serve a summons issued under 26 U.S.C. 7602. 
</P>
<SECAUTH TYPE="N">(68A Stat. 902, as amended (26 U.S.C. 7603); 26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and sec. 38, Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744), 27 U.S.C. 205, 22 U.S.C. 2778, 26 U.S.C. 7602, and 5 U.S.C. 301)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978; T.D. ATF-201, 50 FR 12533, Mar. 29, 1985; T.D. ATF-249, 52 FR 5961, Feb. 27, 1987; T.D. ATF-301, 55 FR 47608, Nov. 14, 1990; T.D. ATF-450, 66 FR 29023, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.24" NODE="27:2.0.1.4.7.3.191.4" TYPE="SECTION">
<HEAD>§ 70.24   Enforcement of summonses.</HEAD>
<P>(a) <I>In general.</I> Whenever any person summoned under 26 U.S.C. 7602 neglects or refuses to obey such summons, or to produce books, papers, records, or other data, or to give testimony, as required, application may be made to the judge of the district court or to a U.S. magistrate for the district within which the person so summoned resides or is found for an attachment against him as for a contempt.
</P>
<P>(b) <I>Persons who may apply for an attachment.</I> Appropriate TTB officers are authorized to apply for an attachment as provided in paragraph (a) of this section. The authority to apply for an attachment for the enforcement of a summons may not be redelegated.
</P>
<SECAUTH TYPE="N">(68A Stat. 902, as amended (26 U.S.C. 7604))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973; 38 FR 33767, Dec. 7, 1973, as amended by T.D. ATF-450, 66 FR 29023, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.25" NODE="27:2.0.1.4.7.3.191.5" TYPE="SECTION">
<HEAD>§ 70.25   Special procedures for third-party summonses.</HEAD>
<P>(a) When the Bureau summons the records of persons defined by 26 U.S.C. 7609(a)(3) as “third-party recordkeepers”, the person about whom information is being gathered must be notified in advance, except when:
</P>
<P>(1) The summons is served on the person about whom information is being gathered, or any officer or employee of such person, or
</P>
<P>(2) The summons is served to determine whether or not records of the business transactions or affairs of an identified person have been made or kept, or
</P>
<P>(3) The summons does not identify the person with respect to whose liability the summons is issued (a “John Doe” summons issued under the provisions of 26 U.S.C. 7609(f)), or
</P>
<P>(4) The appropriate TTB officer petitions, and the court determines, on the basis of the facts and circumstances alleged, that there is reasonable cause to believe the giving of notice may lead to attempts to conceal, destroy, or alter records relevant to the examination, to prevent the communication of information from other persons through intimidation, bribery, or collusion, or to flee to avoid prosecution, testifying or production of records.
</P>
<P>(b) Within 3 days of the day on which the summons was served, the notice required by paragraph (a) of this section shall be served upon the person entitled to notice, or mailed by certified or registered mail to the last known address of such person, or, in the absence of a last known address, left with the person summoned. No examination of any records required to be produced under a summons as to which notice is required under paragraph (a) of this section may be made:
</P>
<P>(1) Before the close of the 23rd day after the day notice with respect to the summons is given in the manner provided in this paragraph, or
</P>
<P>(2) Where a proceeding under paragraph (c) of this section was begun within the 20-day period referred to in that paragraph and the requirements of paragraph (c) of this section have been met, expect in accordance with an order of the court having jurisdiction of such proceeding or with the consent of the person beginning the proceeding to quash.
</P>
<P>(c) If the person about whom information is being gathered has been given notice, that person has the right to institute, until and including the 20th day following the day such notice was served on or mailed, by certified or registered mail, to such notified person, a proceeding to quash the summons. During the time the validity of the summons is being litigated, the statutes of limitation are suspended under 26 U.S.C. 7609(e). Title 26 U.S.C. 7609 does not restrict the authority under 26 U.S.C. 7602 (or under any other provision of law) to examine records and witnesses without serving a summons and without giving notice of an examination.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7609)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47608, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.26" NODE="27:2.0.1.4.7.3.191.6" TYPE="SECTION">
<HEAD>§ 70.26   Third-party recordkeepers.</HEAD>
<P>(a) <I>Definitions</I>—(1) <I>Accountant.</I> A person is an “accountant” under 26 U.S.C. 7609(a)(3)(F) for purposes of determining whether that person is a third-party recordkeeper if the person is registered, licensed, or certified under State law as an accountant.
</P>
<P>(2) <I>Attorney.</I> A person is an “attorney” under 26 U.S.C. 7609(a)(3)(E) for purposes of determining whether that person is a third-party recordkeeper if the person is admitted to the bar of a State or the District of Columbia.
</P>
<P>(3) <I>Credit cards</I>—(i) <I>Person extending credit through credit cards.</I> The term “person extending credit through credit cards or similar devices” under 26 U.S.C. 7609(a)(3)(C) generally includes any person who issues a credit card. It does not include a seller of goods or services that honors credit cards issued by other parties but does not extend credit on the basis of credit cards or similar devices issued by itself.
</P>
<P>(ii) [Reserved]
</P>
<P>(iii) <I>Similar devices to credit cards.</I> An object is a “similar device” to a credit card under 26 U.S.C. 7609(a)(3)(C) only if it is physical in nature, such as a coupon book, a charge plate, or a letter of credit. Thus, a person who extends credit by requiring credit customers to sign sales slips without requiring use of physical objects issued by that person is not a third-party recordkeeper under 26 U.S.C. 7609(a)(3)(C).
</P>
<P>(b) <I>When third-party recordkeeper status arises.</I> A person is a “third-party recordkeeper” with respect to a given set of records only if the person made or kept the records in the person's capacity as a third-party recordkeeper. Thus, for instance, an accountant is not a third-party recordkeeper (by reason of being an accountant) with respect to the accountant's records of a sale of property by the accountant to another person. Similarly, a credit card issuer is not a third-party recordkeeper (by reason of being a person extending credit through the use of credit cards or similar devices) with respect to:
</P>
<P>(1) Records relating to noncredit card transactions, such as a cash sale by the issuer to a holder of the issuer's credit card; or
</P>
<P>(2) Records relating to transactions involving the use of another issuer's credit card.
</P>
<P>(c) <I>Duty of third-party recordkeeper</I>—(1) <I>In General.</I> Upon receipt of a summons, the third-party recordkeeper (“recordkeeper”) must begin to assemble the summoned records. The recordkeeper must be prepared to produce the summoned records on the date which the summons states the records are to be examined regardless of the institution or anticipated institution of a proceeding to quash or the recordkeeper's intervention (as allowed under 26 U.S.C. 7609(a)(3)(C)) into a proceeding to quash.
</P>
<P>(2) <I>Disclosing recordkeepers not liable</I>—(i) <I>In general.</I> A recordkeeper, or an agent or employee thereof, who makes a disclosure of records as required by this section, in good faith reliance on the “Certificate of the Secretary” (as defined in paragraph (c)(2)(ii) of this section) or an order of a court requiring production of records, will not be liable for such disclosure to any customer, or to any party with respect to whose tax liability the summons was issued, or to any other person.
</P>
<P>(ii) <I>Certificate of the Secretary.</I> The appropriate TTB officer may issue to the recordkeeper a “Certificate of the Secretary” stating both:
</P>
<P>(A) That the 20-day period, within which a notified person may institute a proceeding to quash the summons has expired; and
</P>
<P>(B) That no proceeding has been properly instituted within that period.
</P>
<FP>The appropriate TTB officer may also issue a “Certificate of the Secretary” to the recordkeeper if the taxpayer, with respect to whose tax liability the summons was issued, expressly consents to the examination of the records summoned.
</FP>
<P>(3) <I>Reimbursement of costs.</I> Recordkeepers may be entitled to reimbursement of their costs of assembling and preparing to produce summoned records, to the extent allowed by 26 U.S.C. 7610, even if the summons ultimately is not enforced.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7609)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47608, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.27" NODE="27:2.0.1.4.7.3.191.7" TYPE="SECTION">
<HEAD>§ 70.27   Right to intervene; right to institute a proceeding to quash.</HEAD>
<P>(a) <I>Notified person.</I> Under 26 U.S.C. 7609(a), the Bureau must give a notice of summons to any person, other than the person summoned, who is identified in the description of the books and records contained in the summons in order that such person may contest the right of the Bureau to examine the summoned records by instituting a proceeding to quash the summons. Thus, if the Bureau issues a summons to a bank requesting checking account records of more than one person all of whom are identified in the description of the records contained in the summons, then all such persons are notified persons entitled to notice under 26 U.S.C. 7609(a). Therefore, if the Bureau requests the records of a joint bank account of A and B, both of whom are named in the summons, then both A and B are notified persons entitled to notice under 26 U.S.C. 7609(a).
</P>
<P>(b) <I>Right to institute a proceeding to quash</I>—(1) <I>In general.</I> Title 26 U.S.C. 7609(b) grants a notified person the right to institute a proceeding to quash the summons in the United States district court for the district within which the person summoned resides or is found. Jurisdiction of the court is based on 26 U.S.C. 7609(b). The act of filing a petition in district court does not in and of itself institute a proceeding to quash under 26 U.S.C. 7609(b)(2). Rather, the filing of the petition must be coupled with notice as required by 26 U.S.C. 7609(b)(2)(B).
</P>
<P>(2) <I>Elements of institution of a proceeding to quash.</I> In order to institute a proceeding to quash a summons, the notified person (or the notified person's agent, nominee, or other person acting under the direction or control of the notified person) must, not later than the 20th day following the day the notice of the summons was served on or mailed to such notified person:
</P>
<P>(i) File a petition to quash in the name of the notified person in a district court having jurisdiction.
</P>
<P>(ii) Notify the Bureau by sending a copy of that petition by registered or certified mail to the Bureau employee and office designated to receive the copy in the notice of summons that was given to the notified person, and
</P>
<P>(iii) Notify the recordkeeper by sending to that recordkeeper by registered or certified mail a copy of the petition.
</P>
<FP>Failure to give timely notice to either the summoned party or the Bureau in the manner described in this paragraph means that the notified person has failed to institute a proceeding to quash and the district court has no jurisdiction to hear the proceeding. Thus, for example, if the notified person mails a copy of the petition to the summoned person but not to the designated Bureau employee and office, the notified person has failed to institute a proceeding to quash. Similarly, if the notified person mails a copy of such petition to the summoned person, but instead of sending a copy of the petition by registered or certified mail to the designated employee and office, the notified person gives the designated employee and office the petition by some other means, the notified person has failed to institute a proceeding to quash.
</FP>
<P>(3) <I>Failure to institute a proceeding to quash.</I> If the notified person fails to institute a proceeding to quash within 20 days following the day the notice was served on or mailed to such notified person, the Bureau may examine the summoned records following the 23rd day after notice of the summons was served on or mailed to the notified person (see 26 U.S.C. 7609(d)(1)).
</P>
<P>(c) <I>Presumption no notice has been mailed.</I> Title 26 U.S.C. 7609(b)(2)(B) permits a notified person to institute a proceeding to quash by filing a petition in district court and notifying both the Bureau and the summoned person. Unless the notified person has notified both the Bureau and the summoned person in the appropriate manner, the notified person has failed to institute a proceeding to quash. If the copy of the petition has not been delivered to the summoned person or the person and office designated to receive the notice on behalf of the Bureau within 3 days from the close of the 20-day period allowed to institute a proceeding to quash, it is presumed that the notification has not been timely mailed.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7609)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47609, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.28" NODE="27:2.0.1.4.7.3.191.8" TYPE="SECTION">
<HEAD>§ 70.28   Summonses excepted from 26 U.S.C. 7609 procedures.</HEAD>
<P>(a) <I>In aid of the collection of certain liabilities</I>—(1) <I>In general.</I> Title 26 U.S.C. 7609(c)(2)(B) contains an exception to the general notice requirement when a summons is issued to a third-party recordkeeper. That section excepts summonses issued in aid of the collection of the liability of any person against whom an assessment has been made or judgment rendered or the liability at law or in equity of any transferee of such a person.
</P>
<P>(2) <I>Examples.</I> Examples of summonses referred to in paragraph (a)(1) of this section are:
</P>
<P>(i) Summonses issued to determine the amount held in a bank in the name of a person against whom an assessment has been made or judgment rendered;
</P>
<P>(ii) Summonses issued to enforce transferee liability for a tax which has been assessed.
</P>
<P>(b) <I>Numbered account (or similar arrangement).</I> Under 26 U.S.C. 7609(c)(2), a summons issued solely to determine the identity of a person having a numbered account (or similar arrangement) with a bank or other institution is excepted from the requirements of 26 U.S.C. 7609. A “numbered account (or similar arrangement)” under 26 U.S.C. 7609(c)(2) is an account through which a person may authorize transactions solely through the use of a number, symbol, code name, or other device not involving the disclosure of the person's identity. A “person having a numbered account (or similar arrangement)” includes the person who opened the account and any person authorized to use the account or to receive records or statements concerning it.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7609)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47610, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.29" NODE="27:2.0.1.4.7.3.191.9" TYPE="SECTION">
<HEAD>§ 70.29   Suspension of statutes of limitations.</HEAD>
<P>(a) <I>Suspension while a proceeding under 26 U.S.C. 7609(b) is pending.</I> Under 26 U.S.C. 7609(e)(1), the statutes of limitations of 26 U.S.C. 6501 and 6531 are suspended if a notified person with respect to whose liability a summons is issued, or the notified person's agent, nominee, or other person acting under the direction or control of the notified person, takes any action as provided in 26 U.S.C. 7609(b).
</P>
<P>(1) <I>Agent, nominee, etc.</I> A person is a notified person's agent, nominee, or other person acting under the direction or control of a notified person for purposes of 26 U.S.C. 7609(e) if the person with respect to whose liability the summons is issued has the ability in fact or at law to cause the agent, etc., to take the actions permitted under 26 U.S.C. 7609(b). Thus, in the case of a corporation, direction or control by the notified person may exist even though less than 50 percent of the voting power of the corporation is held by the notified person.
</P>
<P>(2) <I>Period during which a proceeding, etc., is pending.</I> Under 26 U.S.C. 7609(e), the statute of limitations shall be suspended for the period during which a proceeding and any appeals regarding the enforcement of such summons is pending. This period begins on the date the petition to quash the summons is filed in district court. The period continues until all appeals are disposed of, or until the expiration of the period in which an appeal may be taken or a request for a rehearing may be made. Full compliance, partial compliance, and noncompliance have no effect on the suspension provisions. The periods of limitations which are suspended under 26 U.S.C. 7609(e) are those which apply to the taxable periods to which the summons relates.
</P>
<P>(3) <I>Taking of action as provided in 26 U.S.C. 7609(b).</I> Title 26 U.S.C. 7609(b) allows intervention by a notified person as a matter of right upon compliance with the Federal Rules of Civil Procedure. The phrase “takes any action as provided in subsection (b)”, found in 26 U.S.C. 7609(e), includes any intervention whether or not 26 U.S.C. 7609(b) is specifically mentioned in the order of the court allowing intervention. The phrase also includes the fulfilling of only part of the requirements of 26 U.S.C. 7609(b)(2), relating to the right of a person to institute a proceeding to quash. Thus, for instance, if a notified person notifies a person who has been summoned by sending a copy of the petition by registered or certified mail but does not mail a copy of that notice to the appropriate person and office under 26 U.S.C. 7609(b)(2)(B), the notified person has taken an action under 26 U.S.C. 7609(e).
</P>
<P>(b) <I>Suspension after 6 months of service of summons.</I> In the absence of the resolution of the third-party recordkeeper's response to the summons described in 26 U.S.C. 7609(c) or the summoned party's response to a summons described in 26 U.S.C. 7609(f) the running of any period of limitations under 26 U.S.C. 6501 or under 26 U.S.C. 6531 with respect to any person with respect to whose liability the summons is issued (other than a person taking action as provided in 26 U.S.C. 7609(b)) shall be suspended for the period:
</P>
<P>(1) Beginning on the date which is 6 months after the service of such summons, and
</P>
<P>(2) Ending with the final resolution of such response.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7609)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47610, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.30" NODE="27:2.0.1.4.7.3.191.10" TYPE="SECTION">
<HEAD>§ 70.30   Time and place of examination.</HEAD>
<P>(a) <I>Time and place.</I> The time and place of examination pursuant to the provisions of 26 U.S.C. 7602 must be such time and place as may be fixed by an appropriate TTB officer and as are reasonable under the circumstances. The date fixed for appearance shall not be less than 10 days from the date of the summons. 
</P>
<P>(b) <I>Restrictions on examination of taxpayer.</I> No taxpayer is to be subjected to unnecessary examination or investigations, and only one inspection of a taxpayer's books of account shall be made for each taxable year unless the taxpayer requests otherwise or unless an authorized internal revenue or an appropriate TTB officer, after investigation, notifies the taxpayer in writing that an additional inspection is necessary. 
</P>
<SECAUTH TYPE="N">(68A Stat. 902, as amended (26 U.S.C. 7605)) 
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-450, 66 FR 29023, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.31" NODE="27:2.0.1.4.7.3.191.11" TYPE="SECTION">
<HEAD>§ 70.31   Entry of premises for examination of taxable objects.</HEAD>
<P>(a) <I>General.</I> An appropriate TTB officer may, in the performance of his or her duty, enter in the daytime any building or place where any articles or objects subject to tax are made, produced, or kept, so far as it may be necessary for the purpose of examining said articles or objects and also enter at night any such building or place, while open, for a similar purpose. 
</P>
<P>(b) <I>Distilled spirits plants.</I> Any appropriate TTB officer may, at all times, as well by night as by day, enter any plant or any other premises where distilled spirits are produced or rectified, or structure or place used in connection therewith for storage or other purposes; to make examination of the materials, equipment and facilities thereon; and make such gauges and inventories as such officer deems necessary. Whenever any appropriate TTB officer, having demanded admittance, and having declared his or her name and office, is not admitted to such premises by the proprietor or other person having charge thereof, such officer may at all times, use such force as is necessary for such officer to gain entry to such premises. 
</P>
<P>(c) <I>Authority to break up grounds.</I> An appropriate TTB officer, and any person acting in his or her aid, may break up the ground on any part of a distilled spirits plant, or any other premises where spirits are produced or rectified, or any ground adjoining or near to such plant or premises, or any wall or partition thereof, or belonging thereto, or other place, to search for any pipe, cock, private conveyance, or utensil; and, upon finding any such pipe or conveyance leading therefrom or thereto, to break up any ground, house, wall, or other place through or into which such pipe or other conveyance leads, and to break or cut away such pipe or other conveyance, and turn any cock, or to determine whether such pipe or other conveyance conveys or conceals any spirits, mash, wort, or beer, or other liquor, from the sight or view of the appropriate TTB officer, so as to prevent or hinder such officer from taking a true account thereof. 
</P>
<SECAUTH TYPE="N">(68A Stat. 903, 72 Stat. 1357 (26 U.S.C. 7606, 5203)) 
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-450, 66 FR 29023, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.32" NODE="27:2.0.1.4.7.3.191.12" TYPE="SECTION">
<HEAD>§ 70.32   Examination of records and objects.</HEAD>
<P>Any appropriate TTB officer may enter, during business hours, the premises of any regulated establishment for the purpose of inspecting and examining any records, articles, or other objects required to be kept by such establishment under 18 U.S.C. chapter 40 or 44, or provisions of 26 U.S.C. enforced and administered by the Bureau, or regulations issued pursuant thereto.
</P>
<SECAUTH TYPE="N">(68A Stat. 715, as amended, 903, 72 Stat. 1348, 1361, 1373, 1381, 1390, 1391, 1395, 82 Stat. 231, as amended, 84 Stat. 955; (26 U.S.C. 5741, 7606, 5146, 5207, 5275, 5367, 5415, 5504, 5555, 18 U.S.C. 923, 843))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-331, 57 FR 40328, Sept. 3, 1992, as amended by T.D. ATF-450, 66 FR 29023, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.33" NODE="27:2.0.1.4.7.3.191.13" TYPE="SECTION">
<HEAD>§ 70.33   Authority of enforcement officers of the Bureau.</HEAD>
<P>Appropriate TTB officers may perform the following functions: 
</P>
<P>(a) Carry firearms;
</P>
<P>(b) Execute and serve search warrants and arrest warrants, and serve subpoenas and summonses issued under authority of the United States;
</P>
<P>(c) In respect to the performance of such duty, make arrests without warrant for any offense against the United States committed in their presence, or for any felony cognizable under the laws of the United States if they have reasonable grounds to believe that the person to be arrested has committed, or is committing, such felony; and
</P>
<P>(d) In respect to the performance of such duty, make seizures of property subject to forfeiture to the United States.
</P>
<SECAUTH TYPE="N">(53 Stat. 1291, 62 Stat. 840, 68 Stat. 848, as amended, 72 Stat. 1429, as amended, 82 Stat. 233, as amended, 84 Stat. 956 (49 U.S.C. 782, 18 U.S.C. 3615, 22 U.S.C. 1934, 26 U.S.C. 7608, 18 U.S.C. 924, 844); 26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and sec. 38, Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990; T.D. ATF-450, 66 FR 29023, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.34" NODE="27:2.0.1.4.7.3.191.14" TYPE="SECTION">
<HEAD>§ 70.34   Listing by appropriate TTB officers of taxable objects owned by nonresidents.</HEAD>
<P>Whenever there are any articles in any internal revenue district subject to tax, which are not owned or possessed by, or under the care or control of, any person within such district, and of which no list has been transmitted to the appropriate TTB officer, as required by law or by regulations prescribed pursuant to law, an appropriate TTB officer shall enter the premises where such articles are situated, make such inspection of the articles as may be necessary, and make lists of the same according to the forms prescribed. Such lists, being subscribed by the appropriate TTB officer, are sufficient lists of such articles for all purposes. 
</P>
<CITA TYPE="N">[T.D. ATF-450, 66 FR 29023, May 29, 2001]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="192" NODE="27:2.0.1.4.7.3.192" TYPE="SUBJGRP">
<HEAD>General Powers and Duties</HEAD>


<DIV8 N="§ 70.40" NODE="27:2.0.1.4.7.3.192.15" TYPE="SECTION">
<HEAD>§ 70.40   Authority to administer oaths and certify.</HEAD>
<P>Appropriate TTB officers are authorized to administer such oaths or affirmations and to certify to such papers as may be necessary under the tax laws administered by the Bureau, the Federal Alcohol Administration Act, or regulations issued thereunder, except that the authority to certify must not be construed as applying to those papers or documents the certification of which is authorized by separate order or directive. 
</P>
<SECAUTH TYPE="N">(68A Stat. 904 (26 U.S.C. 7622)) 
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-450, 66 FR 29023, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.41" NODE="27:2.0.1.4.7.3.192.16" TYPE="SECTION">
<HEAD>§ 70.41   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 70.42" NODE="27:2.0.1.4.7.3.192.17" TYPE="SECTION">
<HEAD>§ 70.42   Returns prepared or executed by appropriate TTB officers.</HEAD>
<P>(a) <I>Preparation of returns</I>—(1) <I>General.</I> If any person, required by provisions of 26 U.S.C. enforced and administered by the Bureau or by the regulations prescribed thereunder to make a return, fails to make such return, it may be prepared by an appropriate TTB officer provided the person required to make the return consents to disclose all information necessary for the preparation of such return. The return upon being signed by the person required to make it must be received by the appropriate TTB officer, as the return of such person. 
</P>
<P>(2) <I>Responsibility of person for whom return is prepared.</I> A person for whom a return is prepared in accordance with paragraph (a)(1) of this section shall for all legal purposes remain responsible for the correctness of the return to the same extent as if the return had been prepared by such person.
</P>
<P>(b) <I>Execution of returns</I>—(1) <I>General.</I> If any person, required by provisions of 26 U.S.C. enforced and administered by the Bureau or by the regulations prescribed thereunder to make a return, fails to make a return at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the appropriate TTB officer must make such return from such officer's own knowledge and from such information as the officer can obtain through testimony or otherwise. 
</P>
<P>(2) <I>Status of returns.</I> Any return made in accordance with paragraph (b)(1) of this section and subscribed by the appropriate TTB officer is prima facie good and sufficient for all legal purposes. 
</P>
<P>(c) <I>Cross references.</I> (1) For provisions that the return executed by an appropriate TTB officer will not start the running of the period of limitations on assessment and collection, see 26 U.S.C. 6501(b)(3) and § 70.222(b) of this part. 
</P>
<P>(2) For additions to the tax and additional amounts for failure to file returns, see section 6651 of the Internal Revenue Code.
</P>
<P>(3) For additions to the tax for failure to pay tax, see sections 5684, 5761, and 6653 of the Internal Revenue Code.
</P>
<P>(4) For failure to make deposit of taxes or overstatement of deposit claims, see section 6656 of the Internal Revenue Code.
</P>
<P>(5) For an additional penalty for tendering a bad check or money order, see section 6657 of the Internal Revenue Code.
</P>
<P>(6) For certain failures to pay tax with respect to cases pending under Title 11 of the United States Code, see section 6658 of the Internal Revenue Code.
</P>
<P>(7) For failure to supply identifying numbers, see section 6676 of the Internal Revenue Code.
</P>
<P>(8) For penalties for aiding and abetting understatement of tax liability, see section 6701 of the Internal Revenue Code.
</P>
<P>(9) For criminal penalties for willful failure to make returns, see sections 7201, 7202, and 7203 of the Internal Revenue Code.
</P>
<P>(10) For criminal penalties for willfully making false or fraudulent returns, see sections 7206 and 7207 of the Internal Revenue Code.
</P>
<P>(11) For authority to examine books and witnesses, see section 7602 of the Internal Revenue Code and § 70.22.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6020)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47610, Nov. 14, 1990; T.D. ATF-450, 66 FR 29024, May 29, 2001]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.4.7.4" TYPE="SUBPART">
<HEAD>Subpart D—Collection of Excise and Special (Occupational) Tax</HEAD>


<DIV7 N="193" NODE="27:2.0.1.4.7.4.193" TYPE="SUBJGRP">
<HEAD>Collection—General Provisions</HEAD>


<DIV8 N="§ 70.51" NODE="27:2.0.1.4.7.4.193.1" TYPE="SECTION">
<HEAD>§ 70.51   Collection authority.</HEAD>
<P>The taxes imposed by provisions of 26 U.S.C. enforced and administered by the Bureau must be collected by appropriate TTB officers. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6301) 
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-450, 66 FR 29024, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.52" NODE="27:2.0.1.4.7.4.193.2" TYPE="SECTION">
<HEAD>§ 70.52   Signature presumed authentic.</HEAD>
<P>An individual's name signed to a return, statement, or other document shall be prima facie evidence for all purposes that the return, statement or other document was actually signed by that individual.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6064)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47611, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="194" NODE="27:2.0.1.4.7.4.194" TYPE="SUBJGRP">
<HEAD>Receipt of Payment</HEAD>


<DIV8 N="§ 70.61" NODE="27:2.0.1.4.7.4.194.3" TYPE="SECTION">
<HEAD>§ 70.61   Payment by check or money order.</HEAD>
<P>(a) <I>Authority to Receive</I>—(1) <I>General.</I> (i) The appropriate TTB officer may accept checks drawn on any bank or trust company incorporated under the laws of the United States or under the laws of any State, Territory, or possession of the United States, or money orders in payment for internal revenue taxes, provided such checks or money orders are collectible in U.S. currency at par, and subject to the further provisions contained in this section. The appropriate TTB officer may accept such checks or money orders in payment for internal revenue stamps (authorized under Subtitle E of the Internal Revenue Code or any provision of Subtitle F which relates to Subtitle E) to the extent and under the conditions prescribed in paragraph (a)(2) of this section. A check or money order in payment for internal revenue taxes or internal revenue stamps should be made payable to the Alcohol and Tobacco Tax and Trade Bureau. A check or money order is payable at par only if the full amount thereof is payable without any deduction for exchange or other charges. As used in this section, the term “money order” means:
</P>
<P>(A) U.S. postal, bank, express, or telegraph money order; and
</P>
<P>(B) Money order issued by a domestic building and loan association (as defined in section 7701(a)(19) of the Internal Revenue Code) or by a similar association incorporated under the laws of a possession of the United States;
</P>
<P>(C) A money order issued by such other organization as the appropriate TTB officer may designate; and
</P>
<P>(D) A money order described in paragraph (a)(1)(ii) of this section in cases therein described. However, the appropriate TTB officers may refuse to accept any personal check whenever there is good reason to believe that such check will not be honored upon presentment.
</P>
<P>(ii) An American citizen residing in a country with which the United States maintains direct exchange of money orders on a domestic basis may pay his/her tax by postal money order of such country. For a list of such countries, see section 171.27 of the Postal Manual of the United States.
</P>
<P>(iii) If one check or money order is remitted to cover two or more persons' taxes, the remittance should be accompanied by a letter of transmittal clearly identifying—
</P>
<P>(A) Each person whose tax is to be paid by the remittance;
</P>
<P>(B) The amount of the payment on account of each such person; and
</P>
<P>(C) The kind of tax paid.
</P>
<P>(2) <I>Payment for internal revenue stamps—In general.</I> The appropriate TTB officer may accept checks and money orders described in paragraph (a)(1) of this section, in payment for internal revenue stamps authorized under Subtitle E of the Internal Revenue Code or under any provision of Subtitle F which relates to Subtitle E. However, the appropriate TTB officer may refuse to accept any personal check whenever there is good reason to believe that the check will not be honored upon presentment.
</P>
<P>(3) <I>Payment of tax on distilled spirits, wine, beer, tobacco products, pistols, revolvers, firearms (other than pistols and revolvers), shells and cartridges; proprietor in default.</I> Where a check or money order tendered in payment for taxes on distilled spirits, wine or beer products (imposed under Chapter 51 of the Internal Revenue Code), or tobacco products (imposed under chapter 52 of the Internal Revenue Code), or pistols, revolvers, firearms (other than pistols and revolvers), shells and cartridges (imposed under chapter 32 of the Internal Revenue Code) is not paid on presentment, or where a taxpayer is otherwise in default in payment of such taxes, any remittance for such taxes made during the period of such default, and until the appropriate TTB officers finds that the revenue will not be jeopardized by the acceptance of personal checks, shall be in cash, or shall be in the form of a certified, cashier's, or treasurer's check, drawn on any bank or trust company incorporated under the laws of the United States, or under the laws of any State or possession of the United States, or a money order as described in paragraph (a)(1) of this section.
</P>
<P>(b) <I>Checks or money orders not paid</I>—(1) <I>Ultimate liability.</I> The person who tenders any check (whether certified or uncertified, cashier's, treasurer's, or other form of check) or money order in payment for taxes is not released from liability until the check or money order is paid; and, if the check or money order is not duly paid, the person shall also be liable for all legal penalties and additions, to the same extent as if such check or money order had not been tendered. For the penalty in case a check or money order is not duly paid, see section 6657 of the Internal Revenue Code. For assessment of the amount of a check or money order not duly paid see section 6201(a)(2)(B) of the Internal Revenue Code.
</P>
<P>(2) <I>Liability of banks and others.</I> If any certified, treasurer's, or cashier's check (or other guaranteed draft) or money order is not duly paid, the United States shall have a lien for the amount of such check upon all assets of the bank or trust company on which drawn or for the amount of such money order upon the assets of the issuer thereof. The unpaid amount shall be paid out of such assets in preference to any other claims against such bank or issuer except the necessary costs and expenses of administration and the reimbursement of the United States for the amount expended in the redemption of the circulating notes of such bank. In addition, the Government has the right to exact payment from the person required to make the payment.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6311)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990; T.D. ATF-331, 57 FR 40328, Sept. 3, 1992; T.D. ATF-353, 59 FR 2522, Jan. 18, 1994]


</CITA>
</DIV8>


<DIV8 N="§ 70.62" NODE="27:2.0.1.4.7.4.194.4" TYPE="SECTION">
<HEAD>§ 70.62   Fractional parts of a cent.</HEAD>
<P>In the payment of any tax, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent. Fractional parts of a cent shall not be disregarded in the computation of taxes.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6313)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.63" NODE="27:2.0.1.4.7.4.194.5" TYPE="SECTION">
<HEAD>§ 70.63   Computations on returns or other documents.</HEAD>
<P>(a) <I>Amounts shown on forms.</I> To the extent permitted by any TTB form or instructions prescribed for use with respect to any TTB return, declaration, statement, or other document, or supporting schedules, any amount required to be reported in such form may be entered at the nearest whole dollar amount. The extent to which, and the conditions under which, such whole dollar amounts may be entered on any form will be set forth in the instructions issued with respect to such form. For the purpose of the computation to the nearest dollar, a fractional part of a dollar shall be disregarded unless it amounts to one-half dollar or more, in which case the amount (determined without regard to the fractional part of a dollar) shall be increased by $1. The following illustrates the application of this paragraph:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Exact amount
</TH><TH class="gpotbl_colhed" scope="col">To be reported as
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">$18.49</TD><TD align="right" class="gpotbl_cell">$18
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">$18.50</TD><TD align="right" class="gpotbl_cell">19
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">$18.51</TD><TD align="right" class="gpotbl_cell">19</TD></TR></TABLE></DIV></DIV>
<P>(b) <I>Election not to use whole dollar amounts</I>—(1) <I>Method of election.</I> Where any TTB form, or the instructions issued with respect to such form, provide that whole dollar amounts shall be reported, any person making a return, declaration, statement, or other document on such form may elect not to use whole dollar amounts by reporting thereon all amounts in full, including cents.
</P>
<P>(2) <I>Time of election.</I> The election not to use whole dollar amounts must be made at the time of filing the return, declaration, statement, or other document. Such election may not be revoked after the time prescribed for filing such return, declaration, statement, or other document, including extensions of time granted for such filing. Such election may be made on any return, declaration, statement, or other document which is filed after the time prescribed for filing (including extensions of time), and such an election is irrevocable.
</P>
<P>(3) <I>Effect of election.</I> The taxpayer's election shall be binding only on the return, declaration, statement, or other document filed for a taxable year or period, and a new election may be made on the return, declaration, statement, or other document filed for a subsequent taxable year or period.
</P>
<P>(4) <I>Fractional part of a cent.</I> For treatment of the fractional part of a cent in the payment of taxes, see 26 U.S.C. 6313 and § 70.62 of this part.
</P>
<P>(c) <I>Inapplicability to computation of amount.</I> The provisions of paragraph (a) of this section apply only to amounts required to be reported on a return, declaration, statement, or other document. They do not apply to items which must be taken into account in making the computations necessary to determine such amounts. For example, each item of liability must be taken into account at its exact amount, including cents, in computing the amount of total liability required to be reported on a tax return or supporting schedule. It is the amount of total liability, so computed, which is to be reported at the nearest whole dollar on the return or supporting schedule.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6102)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47611, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.64" NODE="27:2.0.1.4.7.4.194.6" TYPE="SECTION">
<HEAD>§ 70.64   Receipt for taxes.</HEAD>
<P>The appropriate TTB officer must, upon request, issue a receipt for each tax payment made (other than a payment for stamps sold or delivered). In addition, an appropriate TTB officer or employee must issue a receipt for each payment of 1 dollar or more made in cash, whether or not requested. In the case of payments made by check, the canceled check is usually a sufficient receipt. No receipt shall be issued in lieu of a stamp representing a tax, whether the payment is in cash or otherwise.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6314)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47611, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29024, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.65" NODE="27:2.0.1.4.7.4.194.7" TYPE="SECTION">
<HEAD>§ 70.65   Use of commercial banks.</HEAD>
<P>For provisions relating to the use of commercial banks and electronic fund transfer of taxpayment to the Treasury Account, see the regulations relating to the particular tax.
</P>
<SECAUTH TYPE="N">(Aug. 16, 1954, ch. 736, 68A Stat. 775 (26 U.S.C. 6301); June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-77, 46 FR 3002, Jan. 13, 1981. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="195" NODE="27:2.0.1.4.7.4.195" TYPE="SUBJGRP">
<HEAD>Assessment</HEAD>


<DIV8 N="§ 70.71" NODE="27:2.0.1.4.7.4.195.8" TYPE="SECTION">
<HEAD>§ 70.71   Assessment authority.</HEAD>
<P>The appropriate TTB officers are authorized and required to make all inquiries necessary to the determination and assessment of all taxes imposed under the provisions of 26 U.S.C. enforced and administered by the Bureau. The appropriate TTB officers are further authorized and required to make the determinations and the assessments of such taxes. The term “taxes” includes interest, additional amounts, additions to the taxes, and assessable penalties. The authority of the appropriate TTB officers to make assessment includes the following:
</P>
<P>(a) <I>Taxes shown on return.</I> The appropriate TTB officer shall assess all taxes determined by the taxpayer or by the appropriate TTB officer and disclosed on a return or list.
</P>
<P>(b) <I>Unpaid taxes payable by stamp.</I> (1) If without use of the proper stamp:
</P>
<P>(i) Any article upon which a tax is required to be paid by means of a stamp is sold or removed for sale or use by the manufacturer thereof, or
</P>
<P>(ii) Any transaction or act upon which a tax is required to be paid by means of a stamp occurs, the appropriate TTB officer, upon such information as can be obtained, must estimate the amount of the tax which has not been paid and the appropriate TTB officer must make assessment therefor upon the person the appropriate TTB officer determines to be liable for the tax. However, the appropriate TTB officer may not assess any tax which is payable by stamp unless the taxpayer fails to pay such tax at the time and in the manner provided by law or regulations.
</P>
<P>(2) If a taxpayer gives a check or money order as a payment for stamps but the check or money order is not paid upon presentment, then the appropriate TTB officer shall assess the amount of the check or money order against the taxpayer as if it were a tax due at the time the check or money order was received by appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6201)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47611, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.72" NODE="27:2.0.1.4.7.4.195.9" TYPE="SECTION">
<HEAD>§ 70.72   Method of assessment.</HEAD>
<P>The assessment shall be made by an appropriate TTB officer signing the summary record of assessment. The summary record, through supporting records, shall provide identification of the taxpayer, the character of the liability assessed, the taxable period, if applicable, and the amount of the assessment. The amount of the assessment shall, in the case of tax shown on a return by the taxpayer, be the amount so shown, and in all other cases the amount of the assessment shall be the amount shown on the supporting list or record. The date of the assessment is the date the summary record is signed by an appropriate TTB officer. If the taxpayer requests a copy of the record of assessment, the taxpayer shall be furnished a copy of the pertinent parts of the assessment which set forth the name of the taxpayer, the date of assessment, the character of the liability assessed, the taxable period, if applicable, and the amounts assessed.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6203)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47612, Nov. 14, 1990; T.D. ATF-450, 66 FR 29025, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.73" NODE="27:2.0.1.4.7.4.195.10" TYPE="SECTION">
<HEAD>§ 70.73   Supplemental assessments.</HEAD>
<P>If any assessment is incomplete or incorrect in any material respect, the appropriate TTB officer, subject to the applicable period of limitation, may make a supplemental assessment for the purpose of correcting or completing the original assessment.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6204)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47612, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.74" NODE="27:2.0.1.4.7.4.195.11" TYPE="SECTION">
<HEAD>§ 70.74   Request for prompt assessment.</HEAD>
<P>(a) Except as otherwise provided in § 70.223 of this part, any tax for which a return is required and for which:
</P>
<P>(1) A decedent or an estate of a decedent may be liable, or
</P>
<P>(2) A corporation which is contemplating dissolution, is in the process of dissolution, or has been dissolved, may be liable, shall be assessed, or a proceeding in court without assessment for the collection of such tax shall be begun, within 18 months after the receipt of a written request for prompt assessment thereof.
</P>
<P>(b) The executor, administrator, or other fiduciary representing the estate of the decedent, or the corporation, or the fiduciary representing the dissolved corporation, as the case may be, shall, after the return in question has been filed, file the request for prompt assessment in writing with the appropriate TTB officer. The request, in order to be effective, must be transmitted separately from any other document, must set forth the classes of tax and the taxable periods for which the prompt assessment is requested, and must clearly indicate that it is a request for prompt assessment under the provisions of 26 U.S.C. 6501(d). The effect of such a request is to limit the time in which an assessment of tax may be made, or a proceeding in court without assessment for collection of tax may be begun, to a period of 18 months from the date the request is filed with the appropriate TTB officer. The request does not extend the time within which an assessment may be made, or a proceeding in court without assessment shall be begun, after the expiration of 3 years from the date the return was filed. This special period of limitations will not apply to any return filed after a request for prompt assessment has been made unless an additional request is filed in the manner provided herein.
</P>
<P>(c) In the case of a corporation the 18-month period shall not apply unless:
</P>
<P>(1) The written request notifies the appropriate TTB officer that the corporation contemplates dissolution at or before the expiration of such 18-month period; the dissolution is in good faith begun before the expiration of such 18-month period; and the dissolution so begun is completed either before or after the expiration of such 18-month period; or
</P>
<P>(2) The written request notifies the appropriate TTB officer that a dissolution has in good faith begun, and the dissolution is completed either before or after the expiration of such 18-month period; or
</P>
<P>(3) A dissolution has been completed at the time the written request is made.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6501(d))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47612, Nov. 14, 1990, as amended by T.D. ATF-353, 59 FR 2522, Jan. 18, 1994]


</CITA>
</DIV8>


<DIV8 N="§ 70.75" NODE="27:2.0.1.4.7.4.195.12" TYPE="SECTION">
<HEAD>§ 70.75   Jeopardy assessment of alcohol, tobacco, and firearms taxes.</HEAD>
<P>(a) If the appropriate TTB officer believes that the collection of any tax imposed under provisions of 26 U.S.C. enforced and administered by the Bureau will be jeopardized by delay, the appropriate TTB officer must, whether or not the time otherwise prescribed by law for filing the return or paying such tax has expired, immediately assess such tax, together with all interest, additional amounts and additions to the tax provided by law. An appropriate TTB officer will make an assessment under this section if collection is determined to be in jeopardy because at least one of the following conditions exists. 
</P>
<P>(1) The taxpayer is or appears to be designing quickly to depart from the United States or to conceal himself or herself.
</P>
<P>(2) The taxpayer is or appears to be designing quickly to place the taxpayer's property beyond the reach of the Government either by removing it from the United States, by concealing it, or by dissipating it, or by transferring it to other persons.
</P>
<P>(3) The taxpayer's financial solvency is or appears to be threatened.
</P>
<P>(b) The tax, interest, additional amounts, and additions to the tax will, upon assessment, become immediately due and payable, and the appropriate TTB officer shall, without delay, issue a notice and demand for payment thereof in full.
</P>
<P>(c) See 26 U.S.C. 7429 with respect to requesting the appropriate TTB officer to review the making of the jeopardy assessment.
</P>
<P>(d) For provisions relating to stay of collection of jeopardy assessments, see § 70.76 of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6862 and 6863)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47612, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.76" NODE="27:2.0.1.4.7.4.195.13" TYPE="SECTION">
<HEAD>§ 70.76   Stay of collection of jeopardy assessment; bond to stay collection.</HEAD>
<P>(a) The collection of taxes assessed under 26 U.S.C. 6862 (referred to as a “jeopardy assessment” for purposes of this section) of any tax may be stayed by filing with the appropriate TTB officer a bond on the form to be furnished by TTB upon request.
</P>
<P>(b) The bond may be filed:
</P>
<P>(1) At any time before the time collection by levy is authorized under 26 U.S.C. 6331(a), or
</P>
<P>(2) After collection by levy is authorized and before levy is made on any property or rights to property, or
</P>
<P>(3) In the discretion of the appropriate TTB officer, after any such levy has been made and before the expiration of the period of limitations on collection.
</P>
<P>(c) The bond must be in an amount equal to the portion (including interest thereon to the date of payment as calculated by the appropriate TTB officer) of the jeopardy assessment collection of which is sought to be stayed. See 26 U.S.C. 7101 and § 70.281, relating to the form of bond and the sureties thereon. The bond shall be conditioned upon the payment of the amount (together with interest thereon), for which the collection is stayed, at the time at which, but for the making of the jeopardy assessment, such amount would be due.
</P>
<P>(d) Upon the filing of a bond in accordance with this section, the collection of so much of the assessment as is covered by the bond will be stayed. The taxpayer may at any time waive the stay of collection of the whole or of any part of the amount covered by the bond. If as a result of such waiver any part of the amount covered by the bond is paid, or if any portion of the jeopardy assessment is abated by the appropriate TTB officer, then the bond shall (at the request of the taxpayer) be proportionately reduced.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6863)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47613, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.77" NODE="27:2.0.1.4.7.4.195.14" TYPE="SECTION">
<HEAD>§ 70.77   Collection of jeopardy assessment; stay of sale of seized property pending court decision.</HEAD>
<P>(a) <I>General rule.</I> In the case of an assessment under 26 U.S.C. 6862, and property seized for the collection of such assessment shall not (except as provided in paragraph (b) of this section) be sold until the latest of the following occurs:
</P>
<P>(1) The period provided in 26 U.S.C. 7429(a)(2) to request the appropriate TTB officer to review the action taken expires.
</P>
<P>(2) The period provided in 26 U.S.C. 7429(b)(1) to file an action in U.S. District Court expires if a request for redetermination is made to the appropriate TTB officer.
</P>
<P>(3) The U.S. District Court judgment in such action becomes final, if a civil action is begun in accordance with 26 U.S.C. 7429(b).
</P>
<P>(b) <I>Exceptions.</I> Notwithstanding the provisions of paragraph (a) of this section, any property seized may be sold:
</P>
<P>(1) If the taxpayer files with the appropriate TTB officer a written consent to the sale, or
</P>
<P>(2) If the appropriate TTB officer determines that the expenses of conservation and maintenance of the property will greatly reduce the net proceeds from the sale of such property, or
</P>
<P>(3) If the property is of a type to which 26 U.S.C. 6336 (relating to sale of perishable goods) is applicable.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6863)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47613, Nov. 14, 1990, as amended by T.D. ATF-353, 59 FR 2522, Jan. 18, 1994]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="196" NODE="27:2.0.1.4.7.4.196" TYPE="SUBJGRP">
<HEAD>Notice and Demand</HEAD>


<DIV8 N="§ 70.81" NODE="27:2.0.1.4.7.4.196.15" TYPE="SECTION">
<HEAD>§ 70.81   Notice and demand for tax.</HEAD>
<P>(a) <I>General rule.</I> Where it is not otherwise provided by provisions of 26 U.S.C. enforced and administered by the Bureau, the appropriate TTB officer shall, after the making of an assessment of a tax pursuant to § 70.71 of this part, give notice to each person liable for the unpaid tax, stating the basis for the tax due, the amount of tax, interest, additional amounts, additions to the tax and assessable penalties, and demanding payment thereof. Such notice shall be given as soon as possible and within 60 days. However, the failure to give notice within 60 days does not invalidate the notice. Such notice shall be left at the dwelling or usual place of business of such person, or shall be sent by mail to such person's last known address.
</P>
<P>(b) <I>Assessment prior to last date for payment.</I> If any tax is assessed prior to the last date prescribed for payment of such tax, demand that such tax be paid will not be made before such last date, except where it is believed collection would be jeopardized by delay.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6303 and 7521)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47613, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.82" NODE="27:2.0.1.4.7.4.196.16" TYPE="SECTION">
<HEAD>§ 70.82   Payment on notice and demand.</HEAD>
<P>Upon receipt of notice and demand from the appropriate TTB officer, there shall be paid at the place and time stated in such notice the amount of any tax (including any interest, additional amounts, additions to the tax, and assessable penalties) stated in such notice and demand.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6155)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47613, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="197" NODE="27:2.0.1.4.7.4.197" TYPE="SUBJGRP">
<HEAD>Interest</HEAD>


<DIV8 N="§ 70.90" NODE="27:2.0.1.4.7.4.197.17" TYPE="SECTION">
<HEAD>§ 70.90   Interest on underpayments.</HEAD>
<P>(a) <I>General rule.</I> Interest at the underpayment rate referred to in § 70.93 of this part shall be paid on any unpaid amount of tax from the last date prescribed for payment of the tax (determined without regard to any extension of time for payment) to the date on which payment is received.
</P>
<P>(b) <I>Interest on penalties, additional amounts, or additions to the tax</I>—(1) <I>General.</I> Interest shall be imposed on any assessable penalty, additional amount, or addition to the tax (other than an addition to tax imposed under section 6651(a)(1) of the Internal Revenue Code) only if such assessable penalty, additional amount, or addition to the tax is not paid within 10 days from the date of notice and demand therefor, and in such case interest shall be imposed only for the period from the date of the notice and demand to the date of payment.
</P>
<P>(2) <I>Interest on certain additions to tax.</I> Interest shall be imposed under this section on any addition to tax imposed by section 6651(a)(1) of the Internal Revenue Code for the period which (i) begins on the date on which the return of the tax with respect to which such addition to tax is imposed is required to be filed (including any extensions), and (ii) ends on the date of payment of such addition to tax.
</P>
<P>(c) <I>Payments made within 10 days after notice and demand.</I> If notice and demand is made for payment of any amount, and if such amount is paid within 10 days after the date of such notice and demand, interest under this section on the amount so paid shall not be imposed for the period after the date of such notice and demand.
</P>
<P>(d) <I>Satisfaction by credits.</I> If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under section 6601 of the Internal Revenue Code on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowable with respect to such overpayment.
</P>
<P>(e) <I>Last date prescribed for payment.</I> (1) In determining the last date prescribed for payment, any extension of time granted for payment of tax shall be disregarded. The granting of an extension of time for the payment of tax does not relieve the taxpayer from liability for the payment of interest thereon during the period of the extension. Thus, except as provided in paragraph (d) of this section, interest at the underpayment rate referred to in § 70.93 of this part is payable on any unpaid portion of the tax for the period during which such portion remains unpaid by reason of an extension of time for the payment thereof.
</P>
<P>(2) In the case of taxes payable by stamp and in all other cases where the last date for payment of the tax is not otherwise prescribed, such last date for the purpose of the interest computation shall be deemed to be the date on which the liability for the tax arose. However, such last date shall in no event be later than the date of issuance of a notice and demand for the tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6601)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-301, 55 FR 47613, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.91" NODE="27:2.0.1.4.7.4.197.18" TYPE="SECTION">
<HEAD>§ 70.91   Interest on erroneous refund recoverable by suit.</HEAD>
<P>Any portion of an internal revenue tax (or any interest, assessable penalty, additional amount, or addition to tax) which has been erroneously refunded, and which is recoverable by a civil action pursuant to 26 U.S.C. 7405, shall bear interest at the underpayment rate referred to in § 70.93 of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6602)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47614, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.92" NODE="27:2.0.1.4.7.4.197.19" TYPE="SECTION">
<HEAD>§ 70.92   Interest on overpayments.</HEAD>
<P>(a) <I>General rule.</I> Except as otherwise provided, interest shall be allowed on any overpayment of any tax at the overpayment rate referred to in § 70.93 of this part from the date of overpayment of the tax.
</P>
<P>(b) <I>Date of overpayment.</I> Except as provided in section 6401(a) of the Internal Revenue Code, relating to assessment and collection after the expiration of the applicable period of limitation, there can be no overpayment of tax until the entire tax liability has been satisfied. Therefore, the dates of overpayment of any tax are the date of payment of the first amount which (when added to previous payments) is in excess of the tax liability (including any interest, addition to the tax, or additional amount) and the dates of payment of all amounts subsequently paid with respect to such tax liability.
</P>
<P>(c) <I>Period for which interest is allowable in case of refunds.</I> If an overpayment of tax is refunded, interest shall be allowed from the date of the overpayment to a date determined by the appropriate TTB officer which shall not be more than 30 days prior to the date of the refund check. The acceptance of a refund check shall not deprive the taxpayer of the right to make a claim for any additional overpayment and interest thereon, provided the claim is made within the applicable period of limitation. However, if a taxpayer does not accept a refund check, no additional interest on the amount of the overpayment included in such check shall be allowed.
</P>
<P>(d) <I>Period for which interest allowable in case of credits</I>—(1) <I>General rule.</I> If an overpayment of tax is credited, interest shall be allowed from the date of overpayment to the due date (as determined under paragraph (d)(2) of this section of the amount against which such overpayment is credited.
</P>
<P>(2) <I>Determination of due date</I>—(i) <I>General.</I> The term <I>due date,</I> as used in this section, means the last day fixed by law or regulations for the payment of the tax (determined without regard to any extension of time), and not the date on which the appropriate TTB officer makes demand for the payment of the tax. Therefore, the due date of the tax is the date fixed for the payment of the tax;
</P>
<P>(ii) <I>Tax not due yet.</I> If a taxpayer agrees to the crediting of an overpayment against tax and the schedule of allowance is signed prior to the date on which such tax would otherwise become due, then the due date of such tax shall be the date on which such schedule is signed;
</P>
<P>(iii) <I>Interest.</I> In the case of a credit against interest that accrues for any period ending prior to January 1, 1983, the due date is the earlier of the date of assessment of such interest or December 31, 1982. In the case of a credit against interest that accrues from any period beginning on or after December 31, 1982, such interest is due as it economically accrues on a daily basis, rather than when it is assessed.
</P>
<P>(iv) <I>Additional amount, addition to the tax, or assessable penalty.</I> In the case of a credit against an additional amount, addition to the tax, or assessable penalty, the due date is the earlier of the date of assessment or the date from which such amount would bear interest if not satisfied by payment or credit.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6611)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-301, 55 FR 47614, Nov. 14, 1990; T.D. ATF-358, 59 FR 29367, June 7, 1994]


</CITA>
</DIV8>


<DIV8 N="§ 70.93" NODE="27:2.0.1.4.7.4.197.20" TYPE="SECTION">
<HEAD>§ 70.93   Interest rate.</HEAD>
<P>(a) <I>In general.</I> The interest rate established under 26 U.S.C. 6621(a)(2) shall be:
</P>
<P>(1) On amounts outstanding before July 1, 1975, 6 percent per annum.
</P>
<P>(2) On amounts outstanding:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">After
</TH><TH class="gpotbl_colhed" scope="col">And before
</TH><TH class="gpotbl_colhed" scope="col">Rate per annum (percent)
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">June 30, 1975</TD><TD align="left" class="gpotbl_cell">Feb. 1, 1976</TD><TD align="right" class="gpotbl_cell">9
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Jan. 31, 1976</TD><TD align="left" class="gpotbl_cell">Feb. 1, 1978</TD><TD align="right" class="gpotbl_cell">7
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Jan. 31, 1978</TD><TD align="left" class="gpotbl_cell">Feb. 1, 1980</TD><TD align="right" class="gpotbl_cell">6
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Jan. 31, 1980</TD><TD align="left" class="gpotbl_cell">Feb. 1, 1982</TD><TD align="right" class="gpotbl_cell">12
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Jan. 31, 1982</TD><TD align="left" class="gpotbl_cell">Jan. 1, 1983</TD><TD align="right" class="gpotbl_cell">20</TD></TR></TABLE></DIV></DIV>
<P>(3) On amounts outstanding after December 31, 1982, the adjusted rates for overpayment and underpayment established by the Commissioner of Internal Revenue under 26 U.S.C. 6621. These adjusted rates shall be published by the Commissioner in a Revenue Ruling. See § 70.94 of this part for application of daily compounding in determining interest accruing after December 31, 1982. Because interest accruing after December 31, 1982, accrues at the prescribed rate per annum compounded daily, the effective annual percentage rate of interest will exceed the prescribed rate of interest.
</P>
<P>(b) <I>Applicability of interest rates</I>—(1) <I>Computation.</I> Interest and additions to tax on any amount outstanding on a specific day shall be computed at the annual rate applicable on such day.
</P>
<P>(2) <I>Additions to tax.</I> Additions to tax under any section of the Internal Revenue Code that refers to the annual rate established under 26 U.S.C. 6621, shall be computed at the same rate per annum as the interest rate set forth under paragraph (a) of this section.
</P>
<P>(3) <I>Interest.</I> Interest provided for under any section of the Internal Revenue Code that refers to the annual rate established under this section, including 26 U.S.C. 6332(d)(1), 6343(c), 6601(a), 6602, 6611(a), 7426(g), and 28 U.S.C. 1961(c)(1) or 2411, shall be computed at the rate per annum set forth under paragraph (a) of this section.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47614, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.94" NODE="27:2.0.1.4.7.4.197.21" TYPE="SECTION">
<HEAD>§ 70.94   Interest compounded daily.</HEAD>
<P>(a) <I>General rule.</I> Effective for interest accruing after December 31, 1982, in computing the amount of any interest required to be paid under any provision of 26 U.S.C. or under 28 U.S.C. 1961(c)(1) or 2411, by the appropriate TTB officer or by the taxpayer, or in computing any other amount determined by reference to such amount of interest, or by reference to the interest rate established under 26 U.S.C. 6621, such interest or such other amount shall be compounded daily by dividing such rate of interest by 365 (366 in a leap year) and compounding such daily interest rate each day.
</P>
<P>(b) <I>Applicability to unpaid amounts on December 31, 1982.</I> The unpaid interest (or other amount) that shall be compounded daily includes the interest (or other amount) accrued but unpaid on December 31, 1982.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6622)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47614, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="198" NODE="27:2.0.1.4.7.4.198" TYPE="SUBJGRP">
<HEAD>Additions to the Tax, Additional Amounts, and Assessable Penalties</HEAD>

<HD2>Additions to the Tax and Additional Amounts


</HD2>

<DIV8 N="§ 70.95" NODE="27:2.0.1.4.7.4.198.22" TYPE="SECTION">
<HEAD>§ 70.95   Scope.</HEAD>
<P>For purposes of the administration of excise taxes by the Alcohol and Tobacco Tax and Trade Bureau in accordance with Title 26 of the United States Code, the penalties prescribed in §§ 70.96 through 70.107 shall apply.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-301, 55 FR 47614, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.96" NODE="27:2.0.1.4.7.4.198.23" TYPE="SECTION">
<HEAD>§ 70.96   Failure to file tax return or to pay tax.</HEAD>
<P>(a) <I>Addition to the tax</I>—(1) <I>Failure to file tax return.</I> In the case of failure to file a return required under authority of:
</P>
<P>(i) Title 26 U.S.C. 61, relating to returns and records;
</P>
<P>(ii) Title 26 U.S.C. 51, relating to distilled spirits, wines and beer;
</P>
<P>(iii) Title 26 U.S.C. 52, relating to tobacco products, and cigarette papers and tubes; or
</P>
<P>(iv) Title 26 U.S.C. 53, relating to machine guns, destructive devices, and certain other firearms; and the regulations thereunder, on or before the date prescribed for filing (determined with regard to any extension of time for such filing), there shall be added to the tax required to be shown on the return the amount specified below unless the failure to file the return within the prescribed time is shown to the satisfaction of the appropriate TTB officer to be due to reasonable cause and not to willful neglect. The amount to be added to the tax is 5 percent thereof if the failure is not for more than one month, with an additional 5 percent for each additional month or fraction thereof during which the failure continues, but not to exceed 25 percent in the aggregate. The amount of any addition under paragraph (a)(1) of this section shall be reduced by the amount of the addition under paragraph (a)(2) of this section for any month to which an addition to tax applies under both paragraphs (a)(1) and (a)(2) of this section.
</P>
<P>(2) <I>Failure to pay tax shown on return.</I> In case of failure to pay the amount shown as tax on any return required to be filed after December 31, 1969 (without regard to any extension of time for filing thereof), specified in paragraph (a)(1) of this section, on or before the date prescribed for payment of such tax (determined with regard to any extension of time for payment), there shall be added to the tax shown on the return the amount specified below unless the failure to pay the tax within the prescribed time is shown to the satisfaction of the appropriate TTB officer to be due to reasonable cause and not to willful neglect. The amount to be added to the tax is 0.5 percent of the amount of tax shown on the return if the failure is for not more than 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which the failure continues, but not to exceed 25 percent in the aggregate.
</P>
<P>(3) <I>Failure to pay tax not shown on return.</I> In case of failure to pay any amount in respect of any tax required to be shown on a return specified in paragraph (a)(1) of this section, which is not so shown (including an assessment made pursuant to 26 U.S.C. 6213(b)) within 10 days from the date of the notice and demand therefor, there shall be added to the amount shown in the notice and demand the amount specified below unless the failure to pay the tax within the prescribed time is shown to the satisfaction of the appropriate TTB officer to be due to reasonable cause and not to willful neglect. The amount to be added to the tax is 0.5 percent of the amount stated in the notice and demand if the failure is for not more than one month, with an additional 0.5 percent for each additional month or fraction thereof during which the failure continues, but not to exceed 25 percent in the aggregate. The maximum amount of the addition permitted under this subparagraph shall be reduced by the amount of the addition under paragraph (a)(1) of this section, which is attributable to the tax for which the notice and demand is made and which is not paid within 10 days from the date of notice and demand. The preceding sentence applies to amounts assessed on or before December 31, 1986.
</P>
<P>(4) <I>Increases in penalties in certain cases.</I> For increases in penalties for failure to file a return or pay tax in certain cases, see 26 U.S.C. 6651(d) or (f).
</P>
<P>(b) <I>Month defined.</I> (1) If the date prescribed for filing the return or paying tax is the last day of a calendar month, each succeeding calendar month or fraction thereof during which the failure to file or pay tax continues shall constitute a month for purposes of section 6651.
</P>
<P>(2) If the date prescribed for filing the return or paying tax is a date other than the last day of a calendar month, the period which terminates with the date numerically corresponding thereto in the succeeding calendar month and each such successive period shall constitute a month for purposes of section 6651. If, in the month of February, there is no date corresponding to the date prescribed for filing the return or paying tax, the period from such date in January through the last day of February shall constitute a month for purposes of section 6651. Thus, if a return is due on January 30, the first month shall end on February 28 (or 29 if a leap year), and the succeeding months shall end on March 30, April 30, etc.
</P>
<P>(3) If a return is not timely filed or tax is not timely paid, the fact that the date prescribed for filing the return or paying tax, or the corresponding date in any succeeding calendar month, falls on a Saturday, Sunday, or legal holiday is immaterial in determining the number of months for which the addition to the tax under section 6651 applies.
</P>
<P>(c) <I>Showing of reasonable cause.</I> A taxpayer who wishes to avoid the addition to the tax for failure to file a tax return or pay tax must make an affirmative showing of all facts alleged as a reasonable cause for the taxpayers failure to file such return or pay such tax on time in the form of a written statement containing a declaration that it is made under penalties of perjury. Such statement should be filed with the appropriate TTB officer. In addition, where special tax returns are delivered to an appropriate TTB officer, such statement may be delivered with the return. If the appropriate TTB officer determines that the delinquency was due to a reasonable cause and not to willful neglect, the addition to the tax will not be assessed. If the taxpayer exercised ordinary business care and prudence and was nevertheless unable to file the return within the prescribed time, then the delay is due to a reasonable cause. A failure to pay will be considered to be due to reasonable cause to the extent that the taxpayer has made a satisfactory showing that the taxpayer exercised ordinary business care and prudence in providing for payment of the tax liability and was nevertheless either unable to pay the tax or would suffer an undue hardship (as described in 26 CFR 1.6161-1(b)) if paid on the due date. In determining whether the taxpayer was unable to pay the tax in spite of the exercise of ordinary business care and prudence in providing for payment of a tax liability, consideration will be given to all the facts and circumstances of the taxpayer's financial situation, including the amount and nature of the taxpayer's expenditures in light of the income (or other amounts) the taxpayer could, at the time of such expenditures, reasonably expect to receive prior to the date prescribed for the payment of the tax. Thus, for example, a taxpayer who incurs lavish or extravagant living expenses in an amount such that the remainder of assets and anticipated income will be insufficient to pay the tax, has not exercised ordinary business care and prudence in providing for the payment of a tax liability. Further, a taxpayer who invests funds in speculative or illiquid assets has not exercised ordinary business care and prudence in providing for the payment of a tax liability unless, at the time of the investment, the remainder of the taxpayer's assets and estimated income will be sufficient to pay the tax or it can be reasonably foreseen that the speculative or illiquid investment made by the taxpayer can be utilized (by sale or as security for a loan) to realize sufficient funds to satisfy the tax liability. A taxpayer will be considered to have exercised ordinary business care and prudence if such taxpayer made reasonable efforts to conserve sufficient assets in marketable form to satisfy a tax liability and nevertheless was unable to pay all or a portion of the tax when it became due.
</P>
<P>(d) <I>Penalty imposed on net amount due</I>—(1) <I>Credits against the tax.</I> The amount of tax required to be shown on the return for purposes of section 6651(a)(1) and the amount shown as tax on the return for purposes of section 6651(a)(2) shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed on the return.
</P>
<P>(2) <I>Partial payments.</I> (i) The amount of tax required to be shown on the return for purposes of section 6651(a)(2) of the Internal Revenue Code shall, for the purpose of computing the addition for any month, be reduced by the amount of any part of the tax which is paid after the date prescribed for payment and on or before the first day of such month, and
</P>
<P>(ii) The amount of tax stated in the notice and demand for purposes of section 6651(a)(3) of the Internal Revenue Code shall, for the purpose of computing the addition for any month, be reduced by the amount of any part of the tax which is paid before the first day of such month.
</P>
<P>(e) <I>No addition to tax if fraud penalty assessed.</I> No addition to the tax under section 6651 of the Internal Revenue Code shall be assessed with respect to an underpayment of tax if an addition to the tax for fraud is assessed with respect to the same underpayment under section 6653(b). See section 6653(d) of the Internal Revenue Code.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6651)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D ATF-301, 55 FR 47614, Nov. 14, 1990; T.D. ATF-353, 59 FR 2522, Jan. 18, 1994; T.D. ATF-450, 66 FR 29025, May 29, 2001; T.D. TTB-79, 74 FR 37424, July 28, 2009; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.97" NODE="27:2.0.1.4.7.4.198.24" TYPE="SECTION">
<HEAD>§ 70.97   Failure to pay tax.</HEAD>
<P>(a) <I>Negligence</I>—(1) <I>General.</I> If any part of any underpayment (as defined in paragraph (d) of this section) is due to negligence or disregard of rules or regulations, there shall be added to the tax an amount equal to the sum of 5 percent of the underpayment, and an amount equal to 50 percent of the interest payable under section 6601 of the Internal Revenue Code with respect to the portion of such underpayment which is attributable to negligence for the period beginning on the last date prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax (or if earlier, the date or the payment of the tax).
</P>
<P>(2) Underpayment taken into account reduced by a portion attributable to fraud. There shall not be taken into account under paragraph (a) of this section any portion of an underpayment attributable to fraud with respect to which a penalty is imposed under paragraph (b) of this section.
</P>
<P>(3) <I>Negligence.</I> For purposes of paragraph (a) of this section, the term “negligence” includes any failure to make a reasonable attempt to comply with the provisions of the Internal Revenue Code, and the term “disregard” includes any careless, reckless, or intentional disregard.
</P>
<P>(4) The provisions of paragraph (a) apply to returns the due date for which (determined without regard to extensions) is after December 31, 1986.
</P>
<P>(b) <I>Fraud</I>—(1) <I>General.</I> If any part of any underpayment (as defined in paragraph (d) of this section) of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the portion of the underpayment which is attributable to fraud and an amount equal to 50 percent of the interest payable under section 6601 of the Internal Revenue Code with respect to such portion for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax or, if earlier, the date of the payment of the tax.
</P>
<P>(2) The provisions of paragraph (b) of this section, apply to returns the due date for which (determined without regard to extensions) is on or before December 31, 1986.
</P>
<P>(c) <I>Fraud</I>—(1) <I>General.</I> If any part of any underpayment (as defined in paragraph (d) of this section) of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to the sum of 75 percent of the portion of the underpayment which is attributable to fraud and an amount equal to 50 percent of the interest payable under section 6601 of the Internal Revenue Code with respect to such portion for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax or, if earlier, the date of the payment of the tax.
</P>
<P>(2) Determination of portion attributable to fraud. If the appropriate TTB officer establishes that any portion of an underpayment is attributable to fraud, the entire underpayment shall be treated as attributable to fraud, except with respect to any portion of the underpayment which the taxpayer establishes is not attributable to fraud.
</P>
<P>(3) The provisions of this paragraph (c) apply to returns the due date for which (determined without regard to extensions) is after December 31, 1986.
</P>
<P>(d) <I>Definition of underpayment.</I> For purposes of this section, the term <I>underpayment</I> means the amount by which such tax imposed by the Internal Revenue Code exceeds the excess of—
</P>
<P>(1) The sum of,
</P>
<P>(i) The amount shown as the tax by the taxpayer upon the taxpayers return (determined without regard to any credit for an overpayment for any prior period, and without regard to any adjustment under authority of sections 6205(a) and 6413(a) of the Internal Revenue Code), if a return was made by the taxpayer within the time prescribed for filing such return (determined with regard to any extension of time for such filing) and an amount was shown as the tax by the taxpayer thereon, plus;
</P>
<P>(ii) Any amount, not shown on the return, paid in respect of such tax, over—
</P>
<P>(2) <I>The amount of rebates made.</I> For purposes of paragraph (d) of this section, the term <I>rebate</I> means so much of an abatement, credit, refund, or other repayment, as was made on the ground that the tax imposed was less than the excess of the amount specified in paragraph (d)(1) of this section over the rebates previously made.
</P>
<P>(e) <I>No delinquency penalty if fraud assessed.</I> If any penalty is assessed under paragraph (b) or (c) of this section (relating to fraud) for an underpayment of tax which is required to be shown on a return, no penalty under section 6651 of the Internal Revenue Code (relating to failure to file such return or pay tax) shall be assessed with respect to the portion of the underpayment which is attributable to fraud.
</P>
<P>(f) <I>Failure to pay stamp tax.</I> Any person who willfully fails to pay any tax which is payable by stamp or willfully attempts in any manner to evade or defeat any such tax or payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty of 50 percent of the total amount of the underpayment of the tax.
</P>
<P>(g) <I>Additional penalty.</I> For additional penalty for failure to pay certain liquor and tobacco taxes, see 27 CFR 70.102.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6653)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-353, 59 FR 2522, Jan. 18, 1994]


</CITA>
</DIV8>


<DIV8 N="§ 70.98" NODE="27:2.0.1.4.7.4.198.25" TYPE="SECTION">
<HEAD>§ 70.98   Penalty for underpayment of deposits.</HEAD>
<P>(a) <I>General rule.</I> If any person is required by the provisions of 26 U.S.C. enforced and administered by the Bureau or regulations prescribed thereunder to deposit any tax in a government depository that is authorized under 26 U.S.C. 6302(c) to receive the deposit, and fails to deposit the tax within the time prescribed therefor, a penalty shall be imposed on such person unless the failure is shown to be due to reasonable cause and not due to willful neglect. The penalty shall be:
</P>
<P>(1) For penalties assessed before October 22, 1986, 5 percent of the amount of the underpayment without regard to the period during which the underpayment continues.
</P>
<P>(2) For penalties assessed after October 21, 1986, on deposits of taxes required to be made before January 1, 1990, 10 percent of the amount of the underpayment without regard to the period during which the underpayment continues.
</P>
<P>(3) For deposits of taxes required to be made after December 31, 1989.
</P>
<P>(i) 2 percent of the amount of the underpayment if the failure is for not more than 5 days,
</P>
<P>(ii) 5 percent of the amount of the underpayment if the failure is for more than 5 days but not more than 15 days,
</P>
<P>(iii) 10 percent of the amount of the underpayment if the failure is for more than 15 days,
</P>
<P>(iv) 15 percent of the amount of the underpayment if the tax is not deposited before the earlier of:
</P>
<P>(A) The day 10 days after the date of the first delinquency notice to the taxpayer under section 6303, or
</P>
<P>(B) The day on which notice and demand for immediate payment is given under 26 U.S.C. 6862 or the last sentence of 26 U.S.C. 6331(a).
</P>
<FP>For purposes of this section, the term “underpayment” means the amount of tax required to be deposited less the amount, if any, that was deposited on or before the date prescribed therefor. Section 7502(e) of the Internal Revenue Code applies in determining the date a deposit is made.
</FP>
<P>(b) <I>Assertion of reasonable cause.</I> To show that the underpayment was due to reasonable cause and not due to willful neglect, a taxpayer must make an affirmative showing of all facts alleged as a reasonable cause in a written statement containing a declaration that it is made under the penalties of perjury. The statement must be filed with the appropriate TTB officer. If the appropriate TTB officer determines that the underpayment was due to reasonable cause and not due to willful neglect, the penalty will not be imposed.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6656)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-301, 55 FR 47615, Nov. 14, 1990; T.D. ATF-353, 59 FR 2523, Jan. 18, 1994]


</CITA>
</DIV8>


<DIV8 N="§ 70.100" NODE="27:2.0.1.4.7.4.198.26" TYPE="SECTION">
<HEAD>§ 70.100   Penalty for fraudulently claiming drawback.</HEAD>
<P>Whenever any person fraudulently claims or seeks to obtain an allowance of drawback on goods, wares, or merchandise on which no internal revenue tax shall have been paid, or fraudulently claims any greater allowance of drawback than the tax actually paid, that person shall forfeit triple the amount wrongfully or fraudulently claimed or sought to be obtained, or the sum of $500, at the election of the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7304)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47615, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.101" NODE="27:2.0.1.4.7.4.198.27" TYPE="SECTION">
<HEAD>§ 70.101   Bad checks.</HEAD>
<P>If any check or money order in payment of any amount receivable under Title 26 of the United States Code is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered such check, upon notice and demand, in the same manner as tax, an amount equal to 1 percent of the amount of such check, except that if the amount of such check is less than $500, the penalty under this section shall be $5 or the amount of such check, whichever is the lesser. This section shall not apply if the person establishes to the satisfaction of the appropriate TTB officer that such check was tendered in good faith and that such person had reasonable cause to believe that such check would be duly paid.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6657)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47615, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.102" NODE="27:2.0.1.4.7.4.198.28" TYPE="SECTION">
<HEAD>§ 70.102   Coordination with title 11.</HEAD>
<P>(a) <I>Certain failures to pay tax.</I> No addition to the tax shall be made under section 6651 of the Internal Revenue Code for failure to make timely payment of tax with respect to a period during which a case is pending under Title 11 of the United States Code—
</P>
<P>(1) If such tax was incurred by the estate and the failure occurred pursuant to an order of the court finding probable insufficiency of funds of the estate to pay administrative expenses, or
</P>
<P>(2) If such tax was incurred by the debtor before the earlier of the order for relief or (in the involuntary case) the appointment of a trustee and
</P>
<P>(i) The petition was filed before the due date prescribed by law (including extensions) for filing a return of such tax, or
</P>
<P>(ii) The date for making the addition to the tax occurs on or after the day on which the petition was filed.
</P>
<P>(b) <I>Exception for collected taxes.</I> Paragraph (a) of this section shall not apply to any liability for an addition to the tax which arises from the failure to pay or deposit a tax withheld or collected from others and required to be paid to the United States.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6658)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.103" NODE="27:2.0.1.4.7.4.198.29" TYPE="SECTION">
<HEAD>§ 70.103   Failure to pay tax.</HEAD>
<P>Whoever fails to pay any tax imposed by Part I of Subchapter A of Chapter 51 of the Internal Revenue Code (liquor taxes) or by Chapter 52 (tobacco taxes) at the time prescribed shall, in addition to any other penalty provided in the Internal Revenue Code, be liable to a penalty of 5 percent of the tax due but unpaid. For additional penalties for failure to pay tax, see 27 CFR 70.97.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5684(a) and 5761(b))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]
</CITA>
<HD2>Assessable Penalties


</HD2>
</DIV8>


<DIV8 N="§ 70.111" NODE="27:2.0.1.4.7.4.198.30" TYPE="SECTION">
<HEAD>§ 70.111   Rules for application of assessable penalties.</HEAD>
<P>(a) <I>Penalty assessed as tax.</I> The penalties and liabilities provided by Subchapter B, Chapter 68, of the Internal Revenue Code shall be assessed and collected in the same manner as taxes. Except as otherwise provided, any reference in the Internal Revenue Code to “tax” imposed thereunder shall also be deemed to refer to the penalties and liabilities provided by Subchapter B of Chapter 68.
</P>
<P>(b) <I>Person defined.</I> For purposes of Subchapter B of Chapter 68 of the Internal Revenue Code, the term “person” includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6671)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.112" NODE="27:2.0.1.4.7.4.198.31" TYPE="SECTION">
<HEAD>§ 70.112   Failure to collect and pay over tax, or attempt to evade or defeat tax.</HEAD>
<P>Any person required to collect, truthfully account for, and pay over any tax imposed by the Internal Revenue Code who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. The penalty imposed by section 6672 of the Internal Revenue Code applies only to the collection, accounting for, or payment over of taxes imposed on a person other than the person who is required to collect, account for, and pay over such taxes. No penalty under section 6653 of the Internal Revenue Code, relating to failure to pay tax, shall be imposed for any offense to which this section is applicable.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6672)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.113" NODE="27:2.0.1.4.7.4.198.32" TYPE="SECTION">
<HEAD>§ 70.113   Penalty for failure to supply taxpayer identification number.</HEAD>
<P>(a) <I>In general.</I> Except as provided in paragraph (b) of this section, any person who is required by the regulations under section 6109 of the Internal Revenue Code to include the taxpayer identification number in any return, statement, or other document, fails to comply with such requirement at the time prescribed by such regulations, such person shall pay a penalty of $50 for each such failure, except that the total amount imposed on such person for all such failures during any calendar year shall not exceed $100,000. For returns having a due date (determined without regard to extensions) after December 31, 1986, the total amount imposed on such person for all such failures during any calendar year shall not exceed $100,000. Such penalty shall be paid in the same manner as tax upon the issuance of a notice and demand therefor.
</P>
<P>(b) <I>Reasonable cause.</I> If any person who is required by the regulations under section 6109 of the Internal Revenue Code to supply a taxpayer identification number fails to comply with such requirement at the time prescribed by such regulations, but establishes to the satisfaction of the appropriate TTB officer that such failure was due to reasonable cause, the penalty set forth in paragraph (a) of this section shall not apply.
</P>
<P>(c) <I>Persons required to supply taxpayer identification numbers.</I> For regulations under section 6109 of the Internal Revenue Code relating to persons required to supply an identifying number, see the regulations relating to the particular tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6723)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47615, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.114" NODE="27:2.0.1.4.7.4.198.33" TYPE="SECTION">
<HEAD>§ 70.114   Penalties for aiding and abetting understatement of tax liability.</HEAD>
<P>(a) <I>Imposition of penalty.</I> Any person—(1) Who aids or assists in, procures, or advises with respect to, the preparation or presentation of any portion of a return, affidavit, claim, or other document in connection with any matter arising under the internal revenue laws,
</P>
<P>(2) Who knows that such portion will be used in connection with any material matter arising under the internal revenue laws, and
</P>
<P>(3) Who knows that such portion (if so used) will result in an understatement of the liability for tax of another person, shall pay a penalty with respect to each such document in the amount determined under paragraph (b).
</P>
<P>(b) <I>Amount of penalty</I>—(1) <I>General.</I> Except as provided in paragraph (b)(2) of this section, the amount of the penalty imposed by paragraph (a) of this section shall be $1,000.
</P>
<P>(2) <I>Corporations.</I> If the return, affidavit, claim, or other document relates to the tax liability of a corporation, the amount of the penalty imposed by paragraph (a) of this section shall be $10,000.
</P>
<P>(3) <I>Only one penalty per person per period.</I> If any person is subject to a penalty under paragraph (a) of this section with respect to any document relating to any taxpayer for any taxable period (or where there is no taxable period, any taxable event), such person shall not be subject to a penalty under paragraph (a) of this section with respect to any other document relating to such taxpayer for such taxable period (or event).
</P>
<P>(c) <I>Activities of subordinates</I>—(1) <I>General.</I> For purpose of paragraph (a) of this section, the term “procures” includes,
</P>
<P>(i) Ordering (or otherwise causing) a subordinate to do an act, and
</P>
<P>(ii) Knowing of, and not attempting to prevent, participation by a subordinate in an act.
</P>
<P>(2) For purposes of paragraph (c)(1) of this section, the term “subordinate” means any other person (whether or not a director, officer, employee, or agent of the taxpayer involved) over whose activities the person has direction, supervision, or control.
</P>
<P>(d) <I>Taxpayer not required to have knowledge.</I> Paragraph (a) shall apply whether or not the understatement is with the knowledge or consent of the persons authorized or required to present the return, affidavit, claim, or other document.
</P>
<P>(e) <I>Certain actions not treated as aid or assistance.</I> For purposes of paragraph (a)(1) of this section, a person furnishing typing, reproducing, or other mechanical assistance with respect to a document shall not be treated as having aided or assisted in the preparation of such document by reason of such assistance.
</P>
<P>(f) <I>Penalty in addition to other penalties.</I> The penalty imposed by this section shall be in addition to any other penalty provided by law.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6701)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="199" NODE="27:2.0.1.4.7.4.199" TYPE="SUBJGRP">
<HEAD>Abatements, Credits and Refunds</HEAD>

<HD2>Procedure in General


</HD2>

<DIV8 N="§ 70.121" NODE="27:2.0.1.4.7.4.199.34" TYPE="SECTION">
<HEAD>§ 70.121   Amounts treated as overpayments.</HEAD>
<P>(a) The term <I>overpayment</I> includes any payment of any internal revenue tax which is assessed or collected after the expiration of the period of limitation applicable thereto.
</P>
<P>(b) An amount paid as tax shall not be considered not to constitute an overpayment solely by reason of the fact that there was no tax liability in respect of which such amount was paid.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6401)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.122" NODE="27:2.0.1.4.7.4.199.35" TYPE="SECTION">
<HEAD>§ 70.122   Authority to make credits or refunds.</HEAD>
<P>The appropriate TTB officer, within the applicable period of limitations, may credit any overpayment of tax, including interest thereon, against any outstanding liability for any tax (or for any interest, additional amount, addition to the tax, or assessable penalty) owed by the person making the overpayment and the balance, if any, shall be refunded, subject to 26 U.S.C. 6402 (c) and (d) and the regulations thereunder, to such person by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6402)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47615, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.123" NODE="27:2.0.1.4.7.4.199.36" TYPE="SECTION">
<HEAD>§ 70.123   Claims for credit or refund.</HEAD>
<P>(a) <I>Requirement that claim be filed.</I> (1) Credits or refunds of overpayments may not be allowed or made after the expiration of the statutory period of limitation properly applicable unless, before the expiration of such period, a claim therefor has been filed by the taxpayer. Furthermore, under section 7422 of the Internal Revenue Code, a civil action for refund may not be instituted unless a claim has been filed within the properly applicable period of limitation.
</P>
<P>(2) All claims relating to provisions of 26 U.S.C. enforced and administered by the Bureau, together with appropriate supporting evidence, shall be filed with the appropriate TTB officer. As to interest in the case of credits or refunds, see section 6611 of the Internal Revenue Code. See section 7502 for provisions treating timely mailing as timely filing and section 7503 for time for filing claim when the last day falls on a Saturday, Sunday, or legal holiday.
</P>
<P>(b) <I>Grounds set forth in claim.</I> (1) No refund or credit will be allowed after the expiration of the statutory period of limitation applicable to the filing of a claim therefor except upon one or more of the grounds set forth in a claim filed before the expiration of such period. The claim must set forth in detail each ground upon which credit or refund is claimed and facts sufficient to apprise the appropriate TTB officer of the exact basis thereof. The statement of the grounds and facts must be verified by a written declaration that it is made under the penalties of perjury. A claim which does not comply with this paragraph will not be considered for any purpose as a claim for the refund or credit.
</P>
<P>(2) The appropriate TTB officers do not have authority to refund on equitable grounds penalties or other amounts legally collected.
</P>
<P>(c) <I>Form for filing claim.</I> All claims by taxpayers for the refunding of taxes, interest, penalties, and additions to tax shall be made on Form 2635 (5620.8).
</P>
<P>(d) <I>Proof of representative capacity.</I> If a return is filed by an individual and, after the individual's death, a refund claim is filed by a legal representative, certified copies of the letters testamentary, letters of administration, or other similar evidence must be annexed to the claim, to show the authority of the legal representative to file the claim. If an executor, administrator, guardian, trustee, receiver, or other fiduciary files a return and thereafter a refund claim is filed by the same fiduciary, documentary evidence to establish the legal authority of the fiduciary need not accompany the claim, provided a statement is made in the claim showing that the return was filed by the fiduciary and that the latter is still acting. In such cases, if a refund is to be paid, letters testamentary, letters of administration, or other evidence may be required, but should be submitted only upon the receipt of a specific request therefor. If a claim is filed by a fiduciary other than the one by whom the return was filed, the necessary documentary evidence should accompany the claim. A claim may be executed by an agent of the person assessed, but in such case a power of attorney must accompany the claim.
</P>
<P>(e) <I>Mailing of refund check.</I> (1) Checks in payment of claims allowed will be drawn in the names of the persons entitled to the money and, except as provided in paragraph (e)(2) of this section, the checks may be sent direct to the claimant or to such person in care of an attorney or agent who has filed a power of attorney specifically authorizing the attorney or agent to receive such checks.
</P>
<P>(2) Checks in payment of claims which have either been reduced to judgment or settled in the course or as a result of litigation will be drawn in the name of the person or persons entitled to the money and will be sent to the Assistant Attorney General, Tax Division, Department of Justice, for delivery to the taxpayer or the counsel of record in the court proceeding.
</P>
<P>(3) For restrictions on the assignment of claims, see 31 U.S.C. 3727.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0141)
</APPRO>
<SECAUTH TYPE="N">(26 U.S.C. 6402)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47615, Nov. 14, 1990; T.D. ATF-450, 66 FR 29025, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.124" NODE="27:2.0.1.4.7.4.199.37" TYPE="SECTION">
<HEAD>§ 70.124   Payments in excess of amounts shown on return.</HEAD>
<P>In certain cases, the taxpayer's payments in respect of a tax liability, made before the filing of the taxpayer's return, may exceed the amount of tax shown on the return. In any case in which the appropriate TTB officer determines that the payments by the taxpayer (made within the period prescribed for payment and before the filing of the return) are in excess of the amount of tax shown on the return, the appropriate TTB officer may make credit or refund of such overpayment without awaiting examination of the completed return and without awaiting filing of a claim for refund. However, the provisions of § 70.123 of this part are applicable to such overpayment, and taxpayers should submit claims for refund to protect themselves in the event the appropriate TTB officer fails to make such determination and credit or refund.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0141)
</APPRO>
<SECAUTH TYPE="N">(26 U.S.C. 6402)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47616, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.125" NODE="27:2.0.1.4.7.4.199.38" TYPE="SECTION">
<HEAD>§ 70.125   Abatements.</HEAD>
<P>(a) The appropriate TTB officer may abate the unpaid portion of any assessment or liability, if the assessment is in excess of the correct tax liability, if the assessment is made subsequent to the expiration of the period of limitation applicable thereto, or if the assessment has been erroneously or illegally made. 
</P>
<P>(b) If more than the correct amount of tax, interest, additional amount, addition to the tax, or assessable penalty is assessed but not paid to TTB, the person against whom the assessment is made may file a claim for abatement of such overassessment. Each claim for abatement under this section shall be made on form TTB F 5620.8, Claim—Alcohol, Tobacco and Firearms Taxes, in accordance with the instructions on the form. All such claims must be filed with the appropriate TTB officer who made demand for the amount assessed.
</P>
<P>(c) The appropriate TTB officer may issue uniform instructions to abate amounts the collection of which is not warranted because of the administration and collection costs. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0141)
</APPRO>
<SECAUTH TYPE="N">(26 U.S.C. 6404)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.126" NODE="27:2.0.1.4.7.4.199.39" TYPE="SECTION">
<HEAD>§ 70.126   Date of allowance of refund or credit.</HEAD>
<P>The date on which the appropriate TTB officer, first certifies the allowance of an overassessment in respect of any internal revenue tax imposed by the provisions of 26 U.S.C. enforced and administered by the Bureau shall be considered as the date of allowance of refund or credit in respect of such tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6407)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.127" NODE="27:2.0.1.4.7.4.199.40" TYPE="SECTION">
<HEAD>§ 70.127   Overpayment of installment.</HEAD>
<P>If any installment of tax is overpaid, the overpayment shall first be applied against any outstanding installments of such tax. If the overpayment exceeds the correct amount of tax due, the overpayment shall be credited or refunded as provided in §§ 70.122 to 70.124 of this part, inclusive.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6403)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47616, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="200" NODE="27:2.0.1.4.7.4.200" TYPE="SUBJGRP">
<HEAD>Rule of Special Application</HEAD>


<DIV8 N="§ 70.131" NODE="27:2.0.1.4.7.4.200.41" TYPE="SECTION">
<HEAD>§ 70.131   Conditions to allowance.</HEAD>
<P>(a) For regulations under section 6416 of the Internal Revenue Code, see part 53 of this chapter, relating to manufacturers excise taxes on firearms and ammunition.
</P>
<P>(b) For regulations under section 6423 of the Internal Revenue Code, see part 29 of this chapter, relating to distilled spirits, wine, and beer; and part 46 of this chapter, relating to tobacco products, and cigarette papers and tubes.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6416 and 6423)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-331, 57 FR 40328, Sept. 3, 1992, as amended by T.D. ATF-457, 66 FR 32219, June 14, 2001; T.D. ATF-462, 66 FR 42737, Aug. 15, 2001]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="201" NODE="27:2.0.1.4.7.4.201" TYPE="SUBJGRP">
<HEAD>Lien for Taxes</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>Sections 70.141 through 70.151 added by T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 70.141" NODE="27:2.0.1.4.7.4.201.42" TYPE="SECTION">
<HEAD>§ 70.141   Lien for taxes.</HEAD>
<P>If any person liable to pay any tax under provisions of 26 U.S.C. enforced and administered by the Bureau neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, tangible or intangible, belonging to such person. The lien attaches to all property and rights to property belonging to such person at any time during the period of the lien, including any property or rights to property acquired by such person after the lien arises. Solely for purposes of this section and §§ 70.161 and 70.162 of this part, any interest in restricted land held in trust by the United States for an individual noncompetent Indian (and not for a tribe) shall not be deemed to be property, or a right to property, belonging to such Indian.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6321)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.142" NODE="27:2.0.1.4.7.4.201.43" TYPE="SECTION">
<HEAD>§ 70.142   Scope of definitions.</HEAD>
<P>Except as otherwise provided by § 70.143 of this part, the definitions provided by §§ 70.143 apply for purposes of § 70.142 through 70.149 and §§ 70.231 through 70.234 of this part.


</P>
</DIV8>


<DIV8 N="§ 70.143" NODE="27:2.0.1.4.7.4.201.44" TYPE="SECTION">
<HEAD>§ 70.143   Definitions.</HEAD>
<P>(a) <I>Security interest</I>—(1) <I>In general.</I> The term <I>security interest</I> means any interest in property acquired by contract for the purpose of securing payment or performance of an obligation or indemnifying against loss or liability. A security interest exists at any time:
</P>
<P>(i) If, at such time, the property is in existence and the interest has become protected under local law against a subsequent judgment lien (as provided in paragraph (a)(2) of this section) arising out of an unsecured obligation; and
</P>
<P>(ii) To the extent that, at such time, the holder has parted with money or money's worth (as defined in paragraph (a)(3) of this section). For purposes of paragraph (a)(1) of this section, a contract right (as defined in § 70.232(c)(2)(i) of this part) is in existence when the contract is made. An account receivable (as defined in § 70.232(c)(2)(ii) of this part) is in existence when, and to the extent, a right to payment is earned by performance. A security interest must be in existence, within the meaning of paragraph (a) of this section, at the time as of which its priority against a tax lien is determined. For example, to be afforded priority under the provisions of § 70.145(a) of this part, a security interest must be in existence within the meaning of paragraph (a) of this section before a notice of lien is filed.
</P>
<P>(2) <I>Protection against a subsequent judgment lien.</I> For purposes of paragraph (a) of this section, a security interest is deemed to be protected against a subsequent judgment lien on:
</P>
<P>(i) The date on which all actions required under local law to establish the priority of a security interest against a judgment lien have been taken, or
</P>
<P>(ii) If later, the date on which all required actions are deemed effective, under local law, to establish the priority of the security interest against a judgment lien.
</P>
<FP>For purposes of paragraph (a)(2) of this section, the dates described in paragraphs (a)(2) (i) and (ii) of this section shall be determined without regard to any rule or principle of local law which permits the relation back or the making of any requisite action retroactive to a date earlier than the date on which the action is actually performed. For purposes of paragraph (a) of this section, a judgment lien is a lien held by a judgment lien creditor as defined in paragraph (g) of this section.
</FP>
<P>(3) <I>Money or money's worth.</I> For purposes of paragraph (a) of this section, the term “money or money's worth” includes money, a security (as defined in paragraph (d) of this section), tangible or intangible property, services, and other consideration reducible to a money value. Money or money's worth also includes any consideration which otherwise would constitute money or money's worth under the preceding sentence which was parted with before the security interest would otherwise exist if, under local law, past consideration is sufficient to support an agreement giving rise to a security interest. A relinquishing or promised relinquishment of dower, curtesy, or of a statutory estate created in lieu of dower or curtesy, or of other marital rights is not a consideration in money or money's worth. Nor is love and affection, promise of marriage, or any other consideration not reducible to a money value a consideration in money or money's worth.
</P>
<P>(4) <I>Holder of a security interest.</I> For purposes of paragraph (a) of this section, the holder of a security interest is the person in whose favor there is a security interest. For provisions relating to the treatment of a purchaser of commercial financing security as a holder of a security interest, see § 70.232(e) of this part.
</P>
<P>(b) <I>Mechanic's lienor.</I> The term <I>mechanic's lienor</I> means any person who under local law has a lien on real property (or on the proceeds of a contract relating to real property) for services, labor, or materials furnished in connection with the construction or improvement (including demolition) of the property. A mechanic's lienor is treated as having a lien on the later of:
</P>
<P>(1) The date on which the mechanic's lien first becomes valid under local law against subsequent purchasers of the real property without actual notice, or
</P>
<P>(2) The date on which the mechanic's lienor begins to furnish the services, labor, or materials.
</P>
<P>(c) <I>Motor vehicle.</I> (1) The term <I>motor vehicle</I> means a self-propelled vehicle which is registered for highway use under the laws of any State, the District of Columbia, or a foreign country.
</P>
<P>(2) A motor vehicle is “registered for highway use” at the time of a sale if immediately prior to the sale it is so registered under the laws of any State, the District of Columbia, or a foreign country. Where immediately prior to the sale of a motor vehicle by a dealer, the dealer is permitted under local law to operate it under a dealer's tag, license, or permit issued to the dealer, the motor vehicle is considered to be registered for highway use in the name of the dealer at the time of the sale.
</P>
<P>(d) <I>Security.</I> The term <I>security</I> means any bond, debenture, note, or certificate or other evidence of indebtedness, issued by a corporation or a government or political subdivision thereof, with interest coupons or in registered form, share of stock, voting trust certificate, or any certificate of interest or participation in, certificate of deposit or receipt for, temporary or interim certificate for, or warrant or right to subscribe to or purchase, any of the foregoing; negotiable instrument; or money.
</P>
<P>(e) <I>Tax lien filing.</I> The term <I>tax lien filing</I> means the filing of notice of the lien imposed by 26 U.S.C. 6321 in accordance with § 70.148 of this part.
</P>
<P>(f) <I>Purchaser</I>—(1) <I>In general.</I> The term <I>purchaser</I> means a person who, for adequate and full consideration in money or money's worth (as defined in paragraph (f)(3) of this section), acquires an interest (other than a lien or security interest) in property which is valid under local law against subsequent purchasers without actual notice.
</P>
<P>(2) <I>Interest in property.</I> For purposes of paragraph (f) of this section, each of the following interests is treated as an interest in property, if it is not a lien or security interest:
</P>
<P>(i) A lease of property,
</P>
<P>(ii) A written executory contract to purchase or lease property,
</P>
<P>(iii) An option to purchase or lease property and any interest therein, or
</P>
<P>(iv) An option to renew or extend a lease of property.
</P>
<P>(3) <I>Adequate and full consideration in money or money's worth.</I> For purposes of paragraph (f) of this section, the term “adequate and full consideration in money or money's worth” means a consideration in money or money's worth having a reasonable relationship to the true value of the interest in property acquired. See paragraph (a)(3) of this section for definition of the term “money or money's worth.” Adequate and full consideration in money or money's worth may include the consideration in a bona fide bargain purchase. The term also includes the consideration in a transaction in which the purchaser has not completed performance of an obligation, such as the consideration in an installment purchase contract where the purchaser has not completed the installment payments.
</P>
<P>(g) <I>Judgment lien creditor.</I> The term <I>judgment lien creditor</I> means a person who has obtained a valid judgment, in a court of record and of competent jurisdiction, for the recovery of specifically designated property or for a certain sum of money. In the case of a judgment for the recovery of a certain sum of money, a judgment lien creditor is a person who has perfected a lien under the judgment on the property involved. A judgment lien is not perfected until the identity of the lienor, the property subject to the lien, and the amount of the lien are established. Accordingly, a judgment lien does not include an attachment or garnishment lien until the lien has ripened into judgment, even though under local law the lien of the judgment relates back to an earlier date. If recording or docketing is necessary under local law before a judgment becomes effective against third parties acquiring liens on real property, a judgment lien under such local law is not perfected with respect to real property until the time of such recordation or docketing. If, under local law, levy or seizure is necessary before a judgment lien becomes effective against third parties acquiring liens on personal property, then a judgment lien under such local law is not perfected until levy or seizure of the personal property involved. The term “judgment” does not include the determination of a quasi-judicial body or of an individual acting in a quasi-judicial capacity such as the action of State taxing authorities.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6323)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.144" NODE="27:2.0.1.4.7.4.201.45" TYPE="SECTION">
<HEAD>§ 70.144   Special rules.</HEAD>
<P>(a) <I>Actual notice or knowledge.</I> For purposes of 26 U.S.C. 6321 through 6327, an organization is deemed, in any transaction, to have actual notice or knowledge of any fact from the time the fact is brought to the attention of the individual conducting the transaction, and in any event from the time the fact would have been brought to the individual's attention if the organization had exercised due diligence. An organization exercises due diligence if it maintains reasonable routines for communicating significant information to the person conducting the transaction and there is reasonable compliance with the routines. Due diligence does not require an individual acting for the organization to communicate information unless such communication is part of the individual's regular duties or unless the individual has reason to know of the transaction and that the transaction would be materially affected by the information.
</P>
<P>(b) <I>Subrogation:</I> Where, under local law, one person is subrogated to the rights of another with respect to a lien or interest, such person shall be subrogated to such rights for purposes of any lien imposed by 26 U.S.C. 6321 or 6324. Thus, if a tax lien imposed by 26 U.S.C. 6321 or 6324 is not valid with respect to a particular interest as against the holder of that interest, then the tax lien also is not valid with respect to that interest as against any person who, under local law, is a successor in interest to the holder of that interest.
</P>
<P>(c) <I>Disclosure of amount of outstanding lien.</I> If a notice of lien has been filed (see § 70.148 of this part), the amount of the outstanding obligation secured by the lien is authorized to be disclosed as a matter of public record on TTB Form 5651.2 “Notice of Federal Tax Lien Under Internal Revenue Laws.” The amount of the outstanding obligation secured by the lien remaining unpaid at the time of an inquiry is authorized to be disclosed to any person who has a proper interest in determining this amount. Any person who has a right in the property or intends to obtain a right in the property by purchase or otherwise will, upon presentation of satisfactory evidence, be considered to have a proper interest. Any person desiring this information may make a request to the office of the Bureau named on the notice of lien with respect to which the request is made. The request should clearly describe the property subject to the lien, identify the applicable lien, and give the reasons for requesting the information.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6323)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.145" NODE="27:2.0.1.4.7.4.201.46" TYPE="SECTION">
<HEAD>§ 70.145   Purchasers, holders of security interests, mechanic's lienors, and judgment lien creditors.</HEAD>
<P>(a) <I>Invalidity of lien without notice.</I> The lien imposed by 26 U.S.C. 6321 is not valid against any purchaser (as defined in § 70.143(f) of this part), holder of a security interest (as defined in § 70.143(a) of this part), mechanic's lienor (as defined in § 70.143(b) of this part), or judgment lien creditor (as defined in § 70.143(g) of this part) until a notice of lien is filed in accordance with § 70.148 of this part. Except as provided by 26 U.S.C. 6323, if a person becomes a purchaser, holder of a security interest, mechanic's lienor, or judgment lien creditor after a notice of lien is filed in accordance with § 70.148 of this part, the interest acquired by such person is subject to the lien imposed by 26 U.S.C. 6321. 
</P>
<P>(b) <I>Cross references.</I> For provisions relating to the protection afforded a security interest arising after tax lien filing, which interest is covered by a commercial transactions financing agreement, real property construction or improvement financing agreement, or an obligatory disbursement agreement, see §§ 70.232, 70.233, and 70.234 of this part, respectively. For provisions relating to the protection afforded to a security interest coming into existence by virtue of disbursements, made before the 46th day after the date of tax lien filing, see § 70.146 of this part. For provisions relating to priority afforded to interest and certain other expenses with respect to a lien or security interest having priority over the lien imposed by 26 U.S.C. 6321, see § 70.147 of this part. For provisions relating to certain other interests arising after tax lien filing, see § 70.231 of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6323)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.146" NODE="27:2.0.1.4.7.4.201.47" TYPE="SECTION">
<HEAD>§ 70.146   45-day period for making disbursements.</HEAD>
<P>Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.149 of this part, the lien is not valid with respect to a security interest which comes into existence, after tax lien filing, by reason of disbursements made before the 46th day after the date of tax lien filing, or if earlier, before the person making the disbursements has actual notice or knowledge of the tax lien filing, but only if the security interest is:
</P>
<P>(a) In property which is subject, at the time of tax lien filing, to the lien imposed by 26 U.S.C. 6321 and which is covered by the terms of a written agreement entered into before tax lien filing, and
</P>
<P>(b) Protected under local law against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation.
</P>
<FP>For purposes of paragraph (a) of this section, a contract right (as defined in § 70.232(c)(2)(i) of this part) is subject, at the time of tax lien filing, to the lien imposed by 26 U.S.C. 6321 if the contract has been made by such time. An account receivable (as defined in § 70.232(c)(2)(ii) of this part) is subject, at the time of tax lien filing, to the lien imposed by 26 U.S.C. 6321 if, and to the extent, a right to payment has been earned by performance at such time. For purposes of paragraph (b) of this section, a judgment lien is a lien held by a judgment lien creditor as defined in § 70.143(g) of this part. For purposes of this section, it is immaterial that the written agreement provides that the disbursements are to be made at the option of the person making the disbursements. See § 70.143 (a) and (e) of this part for definitions of the terms “security interest” and “tax lien filing,” respectively. See § 70.144(a) of this part for certain circumstances under which a person is deemed to have actual notice or knowledge of a fact.
</FP>
<SECAUTH TYPE="N">(26 U.S.C. 6323)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.147" NODE="27:2.0.1.4.7.4.201.48" TYPE="SECTION">
<HEAD>§ 70.147   Priority of interest and expenses.</HEAD>
<P>(a) <I>In general.</I> If the lien imposed by 26 U.S.C. 6321 is not valid as against another lien or security interest, the priority of the other lien or security interest also extends to each of the following items to the extent that under local law the item has the same priority as the lien or security interest to which it relates:
</P>
<P>(1) Any interest or carrying charges (including finance, service, and similar charges) upon the obligation secured,
</P>
<P>(2) The reasonable charges and expenses of an indenture trustee (including, for example, the trustee under a deed of trust) or agent holding the security interest for the benefit of the holder of the security interest,
</P>
<P>(3) The reasonable expenses, including reasonable compensation for attorneys, actually incurred in collecting or enforcing the obligation secured,
</P>
<P>(4) The reasonable costs of insuring, preserving, or repairing the property to which the lien or security interest relates,
</P>
<P>(5) The reasonable costs of insuring payment of the obligation secured (including amounts paid by the holder of the security interest for mortgage insurance, such as that issued by the Federal Housing Administration), and
</P>
<P>(6) Amounts paid to satisfy any lien on the property to which the lien or security interest relates, but only if the lien so satisfied is entitled to priority over the lien imposed by 26 U.S.C. 6321.
</P>
<P>(b) <I>Collection expenses.</I> The reasonable expenses described in paragraph (a)(3) of this section include expenditures incurred by the protected holder of the lien or security interest to establish the priority of the holder's interest or to collect, by foreclosure or otherwise, the amount due the holder from the property subject to the protected holder's lien. Accordingly, the amount of the encumbrance which is protected is increased by the amounts so expended by the holder of the security interest.
</P>
<P>(c) <I>Costs of insuring, preserving, etc.</I> The reasonable costs of insuring, preserving, or repairing described in paragraph (a)(4) of this section include expenditures by the holder of a security interest for fire and casualty insurance on the property subject to the security interest and amounts paid by the holder of the lien or security interest to repair the property. Such reasonable costs also include the amounts paid by the holder of the lien or security interest in a leasehold to the lessor of the leasehold to preserve the leasehold subject to the lien or security interest. Accordingly, the amount of the lien or security interest which is protected is increased by the amounts so expended by the holder of the lien or security interest.
</P>
<P>(d) <I>Satisfaction of liens.</I> The amounts described in paragraph (a)(6) of this section include expenditures incurred by the protected holder of a lien or security interest to discharge a statutory lien for State sales taxes on the property subject to the lien or security interest if both the lien or security interest and the sales tax lien have priority over a Federal tax lien. Accordingly, the amount of the lien or security interest is increased by the amounts so expended by the holder of the lien or security interest even though under local law the holder of the lien or security interest is not subrogated to the rights of the holder of the State sales tax lien. However, if the holder of the lien or security interest is subrogated, within the meaning of § 70.144(b) of this part, to the rights of the holder of the sales tax lien, the holder of the lien or security interest will also be entitled to any additional protection afforded by 26 U.S.C. 6323(i)(2)
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6323).


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.148" NODE="27:2.0.1.4.7.4.201.49" TYPE="SECTION">
<HEAD>§ 70.148   Place for filing notice; form.</HEAD>
<P>(a) <I>Place for filing.</I> The notice of lien referred to in § 70.145 of this part shall be filed as follows:
</P>
<P>(1) <I>Under State laws</I>—(i) <I>Real property.</I> In the case of real property, notice shall be filed in one office within the State (or the county or other governmental subdivision), as designated by the laws of the State, in which the property subject to the lien is deemed situated under the provisions of paragraph (b)(1) of this section.
</P>
<P>(ii) <I>Personal property.</I> In the case of personal property, whether tangible or intangible, the notice shall be filed in one office within the State (or the county or other governmental subdivision), as designated by the laws of the State, in which the property subject to the lien is deemed situated under the provision of paragraph (b)(2) of this section, except that State law merely conforming to or reenacting Federal law establishing a national filing system does not constitute a second office for filing as designated by the laws of such State.
</P>
<P>(2) <I>With the clerk of the United States district court.</I> Whenever a State has not by law designated one office which meets the requirements of paragraph (a)(1) (i) or (ii) of this section, the notice shall be filed in the office of the clerk of the U.S. district court for the judicial district in which the property subject to the lien is deemed situated under the provisions of paragraph (b) of this section. For example, a State has not by law designated one office meeting the requirements of paragraph (a)(1)(i) of this section, if more than one office is designated within the State, county, or other governmental subdivision for filing notices with respect to all property located in such State, county or other governmental subdivision. A State has not by law designated one office meeting the requirements of paragraph (a)(1)(ii) of this section, if more than one office is designated in the State, county, or other governmental subdivision for filing notices with respect to all of the personal property of a particular taxpayer.
</P>
<P>(3) <I>With the Recorder of Deeds of the District of Columbia.</I> If the property subject to the lien imposed by 26 U.S.C. 6321 is deemed situated, under the provision of paragraph (b) of this section, in the District of Columbia, the notice shall be filed in the office of the Recorder of Deeds of the District of Columbia.
</P>
<P>(b) <I>Situs of property subject to lien.</I> For purposes of paragraph (a) of this section, property is deemed situated as follows:
</P>
<P>(1) <I>Real property.</I> Real property is deemed situated at its physical location.
</P>
<P>(2) <I>Personal property.</I> Personal property, whether tangible or intangible, is deemed situated at the residence of the taxpayer at the time the notice of lien is filed.
</P>
<FP>For purposes of paragraph (b)(2) of this section, the residence of a corporation or partnership is deemed to be the place at which the principal executive office of the business is located, and the residence of a taxpayer whose residence is not within the United States is deemed to be in the District of Columbia.
</FP>
<P>(c) <I>Form</I>—(1) <I>In general.</I> The notice referred to in § 70.145 of this part shall be filed on TTB Form 5651.2, “Notice of Federal Tax Lien under Internal Revenue Laws”. Such notice is valid notwithstanding any other provision of law regarding the form or content of a notice of lien. For example, omission from the notice of lien of a description of the property subject to the lien does not affect the validity thereof even though State law may require that the notices contain a description of the property subject to the lien.
</P>
<P>(2) <I>TTB Form 5651.2 defined.</I> The term “TTB Form 5651.2” generally means a paper form. However, if a State in which a notice referred to in § 70.145 of this part is filed permits a notice of Federal tax lien to be filed by the use of an electronic or magnetic medium the term “TTB Form 5651.2” includes a TTB Form 5651.2 filed by the use of any electronic or magnetic medium permitted by that State. A TTB Form 5651.2 must identify the taxpayer, the tax liability giving rise to the lien, and the date the assessment arose regardless of the method used to file the notice of Federal tax lien.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6323)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5481, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 70.149" NODE="27:2.0.1.4.7.4.201.50" TYPE="SECTION">
<HEAD>§ 70.149   Refiling of notice of tax lien.</HEAD>
<P>(a) <I>In general</I>—(1) <I>Requirement to refile.</I> In order to continue the effect of a notice of lien, the notice must be refiled in the place described in paragraph (b) of this section during the required refiling period (described in paragraph (c) of this section). In the event that two or more notices of lien are filed with respect to a particular tax assessment, the failure to comply with the provision of paragraphs (b)(1) (i) and (c) of this section in respect of one of the notices of lien does not affect the effectiveness of the refiling of any other notice of lien. Except for the filing of a notice of lien required by paragraph (b)(1)(ii) of this section (relating to a change of residence), the validity of any refiling of a notice of lien is not affected by the refiling or nonrefiling of any other notice of lien.
</P>
<P>(2) <I>Effect of refiling.</I> A timely refiled notice of lien is effective as of the date on which the notice of lien to which it relates was effective.
</P>
<P>(3) <I>Effect of failure to refile.</I> Except as provided below, if the appropriate TTB officer fails to refile a notice of lien in the manner described in paragraphs (b) and (c) of this section, the notice of lien is not effective, after the expiration of the required refiling period, as against any person without regard to when the interest of the person in the property subject to the lien was acquired. However, the failure of the appropriate TTB officer to refile a notice of lien during the required refiling period will not, following the expiration of the refiling period, affect the effectiveness of the notice with respect to:
</P>
<P>(i) Property which is the subject matter of a suit, to which the United States is a party, commenced prior to the expiration of the required refiling period, or
</P>
<P>(ii) Property which has been levied upon by the United States prior to the expiration of the refiling period. However, if a suit or levy referred to in the preceding sentence is dismissed or released, respectively, and property is subject to the lien at such time, a notice of lien with respect to the property is not effective after the suit or levy is dismissed or released unless refiled during the required refiling period. Failure to refile a notice of lien does not affect the existence of the lien.
</P>
<P>(4) <I>Filing of new notice.</I> If a notice of lien is not refiled, and if the lien remains in existence, the Bureau may nevertheless file a new lien either on the prescribed form for the filing of a notice of lien or on the form prescribed for refiling a notice of lien. This new filing must meet the requirements of 26 U.S.C. 6323(f) and § 70.148 of this part and is effective from the date on which such filing is made.
</P>
<P>(b) <I>Place for refiling notice of lien</I>—(1) <I>In general.</I> A notice of lien refiled during the required refiling period (described in paragraph (c) of this section) shall be effective only:
</P>
<P>(i) If the notice of lien is refiled in the office in which the prior notice of lien (including a refiled notice) was filed under the provisions of 26 U.S.C. 6323; and
</P>
<P>(ii) In any case in which 90 days or more prior to the date the refiling of the notice of lien under paragraph (a)(1)(i) of this section is completed, the Bureau receives written information (in the manner described in paragraph (b)(2) of this section) concerning a change in the taxpayer's residence, if a notice of such lien is also filed in accordance with 26 U.S.C. 6323(f)(1)(A)(ii) in the State in which such new residence is located (or, if such new residence is located in the District of Columbia or outside the United States, in the District of Columbia).
</P>
<FP>A notice of lien is considered as refiled in the office in which the prior notice or refiled notice was filed under the provisions of 26 U.S.C. 6323 if it is refiled in the office which, pursuant to a change in the applicable local law, assumed the functions of the office in which the prior notice or refiled notice was filed. If on or before the 90th day referred to in paragraph (b)(1)(ii) of this section, more than one written notice is received concerning a change in the taxpayer's residence, a notice of lien is required by this subdivision to be filed only with respect to the residence shown on the written notice received on the most recent date. Paragraph (b)(1)(ii) of this section is applicable regardless of whether the taxpayer resides at the new residence on the date the refiling of notice of lien under paragraph (b)(l)(i) of this section is completed.
</FP>
<P>(2) <I>Notice of change of taxpayer's residence</I>—(i) <I>In general.</I> For purposes of this section, a notice of change of a taxpayer's residence will be effective only if it:
</P>
<P>(A) Is received, in writing, from the taxpayer or the taxpayer's representative by the appropriate TTB officer who filed the original notice of lien.
</P>
<P>(B) Relates to an unpaid tax liability of the taxpayer, and
</P>
<P>(C) States the taxpayer's name and the address of the taxpayer's new residence.
</P>
<FP>Although it is not necessary that a written notice contain the taxpayer's identifying number authorized by section 6109, it is preferable that it include such number. A return or amended return filed by the taxpayer with the Bureau which on its face indicates that there is a change in the taxpayer's address and correctly states the taxpayer's name, the address of the taxpayer's new residence, and the taxpayer's identifying number required by 26 U.S.C. 6109 is sufficient notice under this paragraph.
</FP>
<P>(ii) <I>Other rules applicable.</I> Except as provided in paragraph (b)(2)(i) of this section, no communication (either written or oral) to the Bureau will be considered effective as notice of a change of a taxpayer's residence under this section, whether or not the Bureau has actual notice or knowledge of the taxpayer's new residence. For the purpose of determining the date on which a notice of change of a taxpayer's residence is received under this section, the notice shall be treated as received on the date it is actually received by the Bureau without reference to the provisions of 26 U.S.C. 7502.
</P>
<P>(c) <I>Required refiling period.</I> For the purpose of this section, the term “required refiling period” means:
</P>
<P>(1) The 1-year period ending 30 days after the expiration of 6 years after the date of the assessment of the tax, and
</P>
<P>(2) The 1-year period ending with the expiration of 6 years after the close of the preceding required refiling period for such notice of lien.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6323)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.150" NODE="27:2.0.1.4.7.4.201.51" TYPE="SECTION">
<HEAD>§ 70.150   Release of lien or discharge of property.</HEAD>
<P>(a) <I>Release of lien.</I> An appropriate TTB officer is charged with releasing liens or discharging property from liens. The appropriate TTB officer must issue a certificate of release of a lien imposed with respect to any tax imposed by a provision of 26 U.S.C. enforced and administered by the Bureau, not later than 30 days after the day on which either: 
</P>
<P>(1) The appropriate TTB officer finds that the entire liability for the tax has been satisfied or has become unenforceable as a matter of law (and not merely uncollectible or unenforceable as a matter of fact). Tax liabilities frequently are unenforceable in fact for the time being, due to the temporary nonpossession by the taxpayer of discoverable property or property rights. In all cases the liability for the payment of the tax continues until satisfaction of the tax in full or until the expiration of the statutory period for collection, including such extension of the period for collection as may be agreed upon in writing by the taxpayer and the appropriate TTB officer.
</P>
<P>(2) The appropriate TTB officer is furnished and accepts a bond that is conditioned upon the payment of the amount assessed (together with all interest in respect thereof and any expenses to which the Government has been put in the matter), within the time agreed upon in the bond, but not later than 6 months before the expiration of the statutory period for collection, including any period for collection agreed upon in writing by the appropriate TTB officer and the taxpayer. For provisions relating to bonds, see 26 U.S.C. 7101 and 7102 and §§ 70.281 and 70.282 of this part.
</P>
<P>(b) <I>Discharge of specific property from the lien</I>—(1) <I>Property double the amount of the liability.</I> The appropriate TTB officer may, in that officer's discretion, issue a certificate of discharge of any part of the property subject to a lien imposed under 26 U.S.C. 64 if the Bureau determines that the fair market value of that part of the property remaining subject to the lien is at least double the sum of the amount of the unsatisfied liability secured by the lien and of the amount of all other liens upon the property which have priority over the lien. In general, fair market value is that amount which one ready and willing but not compelled to buy would pay to another ready and willing but not compelled to sell the property.
</P>
<P>(2) <I>Part payment; interest of United States valueless</I>—(<I>i</I>) <I>Part payment.</I> The appropriate TTB officer may, in that officer's discretion, issue a certificate of discharge of any part of the property subject to a lien imposed under 26 U.S.C. 64 if there is paid over to the Bureau in partial satisfaction of the liability secured by the lien an amount determined by the Bureau to be not less than the value of the interest of the United States in the property to be so discharged. In determining the amount to be paid, the appropriate TTB officer will take into consideration all the facts and circumstances of the case, including the expenses to which the Government has been put in the matter. In no case shall the amount to be paid be less than the value of the interest of the United States in the property with respect to which the certificate of discharge is to be issued.
</P>
<P>(ii) <I>Interest of the United States valueless.</I> The appropriate TTB officer may, in that official's discretion, issue a certificate of discharge of any part of the property subject to the lien if the Bureau determines that the interest of the United States in the property to be so discharged has no value.
</P>
<P>(iii) <I>Valuation of interest of United States.</I> For purposes of this paragraph (b)(2), in determining the value of the interest of the United States in the property, or any part thereof, with respect to which the certificate of discharge is to be issued, the appropriate TTB officer shall give consideration to the value of the property and the amount of all liens and encumbrances thereon having priority over the Federal tax lien. In determining the value of the property, the appropriate TTB officer may, in that official's discretion, give consideration to the forced sale value of the property in appropriate cases.
</P>
<P>(3) <I>Discharge of property by substitution of proceeds of sale.</I> The appropriate TTB officer may, in that officer's discretion, issue a certificate of discharge of any part of the property subject to a lien imposed under 26 U.S.C. 64 if such part of the property is sold and, pursuant to a written agreement with the appropriate TTB officer, the proceeds of the sale are held, as a fund subject to the liens and claims of the United States, in the same manner and with the same priority as the lien or claim had with respect to the discharged property. This subparagraph does not apply unless the sale divests the taxpayer of all right, title, and interest in the property sought to be discharged. Any reasonable and necessary expenses incurred in connection with the sale of the property and the administration of the sale proceeds shall be paid by the applicant or from the proceeds of the sale before satisfaction of any lien or claim of the United States.
</P>
<P>(4) <I>Application for certificate of discharge.</I> Any person desiring a certificate of discharge under this paragraph shall submit an application in writing to the appropriate TTB officer. The application shall contain such information as the appropriate TTB officer may require.
</P>
<P>(c) <I>Subordination of lien</I>—(1) <I>By payment of the amount subordinated.</I> The appropriate TTB officer may, in that officer's discretion, issue a certificate of subordination of a lien imposed under 26 U.S.C. 64 upon any part of the property subject to the lien if there is paid over to the appropriate TTB officer an amount equal to the amount of the lien or interest to which the certificate subordinates the lien of the United States. For this purpose, the tax lien may be subordinated to another lien or interest on a dollar-for-dollar basis. For example, if a notice of a Federal tax lien is filed and a delinquent taxpayer secures a mortgage loan on a part of the property subject to the tax lien and pays over the proceeds of the loan to the appropriate TTB officer after an application for a certificate of subordination is approved, the appropriate TTB officer will issue a certificate of subordination. This certificate will have the effect of subordinating the tax lien to the mortgage.
</P>
<P>(2) <I>To facilitate tax collection.</I> The appropriate TTB officer may, in that officer's discretion, issue a certificate of subordination of a lien imposed under 26 U.S.C. 64 upon any part of the property subject to the lien if the appropriate TTB officer believes that the subordination of the lien will ultimately result in an increase in the amount realized by the United States from the property subject to lien and will facilitate the ultimate collection of the tax liability.
</P>
<P>(3) <I>Application for certificate of subordination.</I> Any person desiring a certificate of subordination under this paragraph shall submit an application therefor in writing to the appropriate TTB officer. The application shall contain such information as the appropriate TTB officer may require.
</P>
<P>(d) <I>Nonattachment of lien.</I> If the appropriate TTB officer determines that, because of confusion of names or otherwise, any person (other than the person against whom the tax was assessed) is or may be injured by the appearance that a notice of lien filed in accordance with § 70.148 of this part refers to such person, the appropriate TTB officer may issue a certificate of nonattachment. Such certificate shall state that the lien, notice of which has been filed, does not attach to the property of such person. Any person desiring a certificate of nonattachment under this paragraph shall submit an application therefor in writing to the appropriate TTB officer. The application shall contain such information as the appropriate TTB officer may require.
</P>
<P>(e) <I>Effect of certificate</I>—(1) <I>Conclusiveness.</I> Except as provided in paragraphs (e) (2) and (3) of this section, if a certificate is issued under 26 U.S.C. 6325 by the appropriate TTB officer and the certificate is filed in the same office as the notice of lien to which it relates (if the notice of lien has been filed), the certificate shall have the following effect:
</P>
<P>(i) In the case of a certificate of release issued under paragraph (a) of this section, the certificate shall be conclusive that the tax lien referred to in the certificate is extinguished;
</P>
<P>(ii) In the case of a certificate of discharge issued under paragraph (b) of this section, the certificate shall be conclusive that the property covered by the certificate is discharged from the tax lien;
</P>
<P>(iii) In the case of a certificate of subordination issued under paragraph (c) of this section, the certificate shall be conclusive that the lien or interest to which the Federal tax lien is subordinated is superior to the tax lien; and
</P>
<P>(iv) In the case of a certificate of nonattachment issued under paragraph (d) of this section, the certificate shall be conclusive that the lien of the United States does not attach to the property of the person referred to in the certificate.
</P>
<P>(2) <I>Revocation of certificate of release or nonattachment</I>—(i) <I>In general.</I> If the appropriate TTB officer determines that either:
</P>
<P>(A) A certificate of release or a certificate of nonattachment of the general tax lien imposed by 26 U.S.C. 6321 was issued erroneously or improvidently, or
</P>
<P>(B) A certificate of release of such lien was issued in connection with a compromise agreement under 26 U.S.C. 7122 which has been breached, and if the period of limitation on collection after assessment of the tax liability has not expired, the appropriate TTB officer may revoke the certificate and reinstate the tax lien.
</P>
<P>(ii) <I>Method of revocation and reinstatement.</I> The revocation and reinstatement described in paragraph (e)(2)(i) of this section is accomplished by:
</P>
<P>(A) Mailing notice of the revocation to the taxpayer at the taxpayer's last known address, and
</P>
<P>(B) Filing notice of the revocation of the certificate in the same office in which the notice of lien to which it relates was filed (if the notice of lien has been filed).
</P>
<P>(iii) <I>Effect of reinstatement</I>—(A) <I>Effective date.</I> A tax lien reinstated in accordance with the provisions of this paragraph (e)(2) is effective on and after the date the notice of revocation is mailed to the taxpayer in accordance with the provisions of paragraph (e)(2)(ii)(A) of this section, but the reinstated lien is not effective before the filing of notice of revocation, in accordance with the provisions of paragraph (e)(2)(ii)(B) of this section, if the filing is required by reason of the fact that a notice of the lien had been filed.
</P>
<P>(B) <I>Treatment of reinstated lien.</I> As of the effective date of reinstatement, a reinstated lien has the same force and effect as a general tax lien imposed by 26 U.S.C. 6321 which arises upon assessment of a tax liability. The reinstated lien continues in existence until the liability is satisfied or until the expiration of the period of limitation on collection after assessment of the tax liability to which it relates. The reinstatement of the lien does not retroactively reinstate a previously filed notice of lien. The reinstated lien is not valid against any holder of a lien or interest described in § 70.145 of this part until notice of the reinstated lien has been filed in accordance with the provisions of § 70.148 of this part subsequent to or concurrent with the time the reinstated lien became effective.
</P>
<P>(3) <I>Certificates void under certain conditions.</I> Notwithstanding any other provisions of 26 U.S.C. subtitle F, any lien for Federal taxes attaches to any property with respect to which a certificate of discharge has been issued if the person liable for the tax reacquires the property after the certificate has been issued. Thus, if property subject to a Federal tax lien is discharged therefrom and is later reacquired by the delinquent taxpayer at a time when the lien is still in existence, the tax lien attaches to the reacquired property and is enforceable against it as in the case of after-acquired property generally.
</P>
<P>(f) <I>Filing of certificates and notices.</I> If a certificate or notice described in this section may not be filed in the office designated by State law in which the notice of lien imposed by 26 U.S.C. 6321 (to which the certificate or notice relates) is filed, the certificate or notice is effective if filed in the office of the clerk of the United States district court for the judicial district in which the State office where the notice of lien is filed is situated.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6325)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001] 


</CITA>
</DIV8>


<DIV8 N="§ 70.151" NODE="27:2.0.1.4.7.4.201.52" TYPE="SECTION">
<HEAD>§ 70.151   Administrative appeal of the erroneous filing of notice of Federal tax lien.</HEAD>
<P>(a) <I>In general.</I> Any person may appeal to the officer who filed the Federal tax lien on the property or rights to property of such person for a release of lien alleging an error in the filing of notice of lien. Such appeal may be used only for the purpose of correcting the erroneous filing of a notice of lien, not to challenge the underlying tax liability that led to the imposition of a lien.
</P>
<P>(b) <I>Certificate of Release.</I> If the officer who filed the lien determines that the filing of the notice of any lien was erroneous that officer shall expeditiously, and to the extent practicable, within 14 days after such determination, issue a certificate of release of lien. The certificate of release of such lien shall include a statement that the filing of notice of lien was erroneous.
</P>
<P>(c) <I>Appeal alleging an error in the filing of notice of lien.</I> For purposes of paragraph (a) of this section, an appeal of the filing of notice of Federal tax lien must be based on any one of the following allegations:
</P>
<P>(1) The tax liability that gave rise to the lien, plus any interest and additions to tax associated with said liability, was satisfied prior to the filing of notice of lien;
</P>
<P>(2) The tax liability that gave rise to the lien was assessed in violation of title 11 of the United States Code (the Bankruptcy Code); or
</P>
<P>(3) The statutory period for collection of the tax liability that gave rise to the lien expired prior to the filing of notice of Federal tax lien.
</P>
<P>(d) <I>Notice of Federal tax lien that lists multiple liabilities.</I> When a notice of Federal tax lien lists multiple liabilities, a person may appeal the filing of notice of lien with respect to one or more of the liabilities listed in the notice, if the notice was erroneously filed with respect to such liabilities. If a notice of Federal tax lien was erroneously filed with respect to one or more liabilities listed in the notice, the officer who filed the Federal tax lien shall issue a certificate of release with respect to such liabilities.
</P>
<P>(e) <I>Procedures for appeal</I>—(1) <I>Manner.</I> An appeal of the filing of notice of Federal tax lien shall be made in writing to the officer who filed the lien.
</P>
<P>(2) <I>Form.</I> The appeal shall include the following information and documents:
</P>
<P>(i) Name, current address, and taxpayer identification number of the person appealing the filing of notice of Federal tax lien;
</P>
<P>(ii) A copy of the notice of Federal tax lien affecting the property, if available; and
</P>
<P>(iii) The grounds upon which the filing of notice of Federal tax lien is being appealed.
</P>
<P>(A) If the ground upon which the filing of notice is being appealed is that the tax liability in question was satisfied prior to the filing, proof of full payment as defined in paragraph (f) of this section must be provided.
</P>
<P>(B) If the ground upon which the filing of notice is being appealed is that the tax liability that gave rise to the lien was assessed in violation of title 11 of the United States Code (the Bankruptcy Code), the appealing party must provide the identity of the court, the district in which the bankruptcy petition was filed, a docket number and the date of filing of the bankruptcy petition.
</P>
<P>(3) <I>Time.</I> An administrative appeal of the erroneous filing of notice of Federal tax lien shall be made within 1 year after the taxpayer becomes aware of the erroneously filed tax lien.
</P>
<P>(f) <I>Proof of full payment.</I> As used in paragraph (e)(2)(iii)(A) of this section, the term “proof of full payment” means:
</P>
<P>(1) An Alcohol and Tobacco Tax and Trade Bureau, receipt reflecting full payment of the tax liability in question prior to the date the Federal tax lien was filed;
</P>
<P>(2) A cancelled check payable to the Alcohol and Tobacco Tax and Trade Bureau in an amount which was sufficient to satisfy the tax liability for which release is being sought; or
</P>
<P>(3) Any other manner of proof acceptable to the officer who filed the lien.
</P>
<P>(g) <I>Exception.</I> Whenever necessary to protect the interests of the government, an appropriate TTB officer other than the officer who filed the lien, may receive and act on an administrative appeal of a lien in accordance with this section.
</P>
<P>(h) <I>Exclusive remedy.</I> The appeal established by section 6326 of the Internal Revenue Code and by this section shall be the exclusive administrative remedy with respect to the erroneous filing of a notice of Federal tax lien.
</P>
<CITA TYPE="N">[T.D. ATF-316, 56 FR 55079, Oct. 24, 1991]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="202" NODE="27:2.0.1.4.7.4.202" TYPE="SUBJGRP">
<HEAD>Seizure of Property for Collection of Taxes</HEAD>


<DIV8 N="§ 70.161" NODE="27:2.0.1.4.7.4.202.53" TYPE="SECTION">
<HEAD>§ 70.161   Levy and distraint.</HEAD>
<P>(a) <I>Authority to levy</I>—(1) <I>In general.</I> If any person liable to pay any tax neglects or refuses to pay the tax within 10 days after notice and demand, the appropriate TTB officer who initiated the assessment may proceed to collect the tax by levy, provided the taxpayer has been furnished the notice described in § 70.162(a) of this part. The appropriate TTB officer may levy upon any property, or rights to property, whether real or personal, tangible or intangible, belonging to the taxpayer. The appropriate TTB officer may also levy upon property with respect to which there is a lien provided by 26 U.S.C. 6321 for the payment of the tax. For exemption of certain property from levy, see 26 U.S.C. 6334 and §§ 70.241 through 70.245 of this part. For exemption of certain property from levy, see 26 U.S.C. 6334 and §§ 70.241 through 70.245 of this part. As used in 26 U.S.C. 6331 and this section, the term “tax” includes any interest, additional amount, addition to tax, or assessable penalty, together with costs and expenses. Property subject to a Federal tax lien which has been sold or otherwise transferred by the taxpayer may be seized while in the hands of the transferee or any subsequent transferee. However, see 26 U.S.C. 6323(i)(2) and § 70.144 of this part concerning the subrogation rights of certain transferees. Levy may be made by serving a Notice of Levy on any person in possession of, or obligated with respect to, property or rights to property subject to levy, including receivables, bank accounts, evidences of debt, securities, and salaries, wages, commissions, or other compensation. Except as provided in § 70.162(c) of this part with regard to a levy on salary or wages, a levy extends only to property possessed and obligations which exist at the time of the levy. Obligations exist when the liability of the obligor is fixed and determinable although the right to receive payment thereof may be deferred until a later date. For example, if on the first day of the month a delinquent taxpayer sold personal property subject to an agreement that the buyer remit the purchase price on the last day of the month, a levy made on the buyer on the 10th day of the month would reach the amount due on the sale, although the buyer need not satisfy the levy by paying over the amount to the appropriate TTB officer until the last day of the month. Similarly, a levy only reaches property in the possession of the person levied upon at the time the levy is made. For example, a levy made on a bank with respect to the account of a delinquent taxpayer is satisfied if the bank surrenders the amount of the taxpayer's balance at the time the levy is made, including interest thereon to the date of surrender. The levy has no effect upon any subsequent deposit made in the bank by the taxpayer. Subsequent deposits may be reached only by a subsequent levy on the bank.
</P>
<P>(2) <I>Jeopardy cases.</I> If the appropriate TTB officer finds that the collection of any tax is in jeopardy, that officer may make notice and demand for immediate payment of such tax and, upon failure or refusal to pay such tax, collection thereof by levy shall be lawful without regard to the 10-day period provided in 26 U.S.C. 6331(a) or the 30-day period provided in 26 U.S.C. 6331(d).
</P>
<P>(3) <I>Bankruptcy or receivership cases.</I> During a bankruptcy proceeding or a receivership proceeding in either a Federal or a State court, the assets of the taxpayer are in general under the control of the court in which such proceeding is pending. Taxes cannot be collected by levy upon assets in the custody of a court, whether or not such custody is incident to a bankruptcy or receivership proceeding, except where the proceeding has progressed to such a point that the levy would not interfere with the work of the court or where the court grants permission to levy. Any assets which under applicable provisions of law are not under the control of the court may be levied upon, for example, property exempt from court custody under State law or the bankrupt's earnings and property acquired after the date of bankruptcy. However, levy upon such property is not mandatory and the Government may rely upon payment of taxes in the proceeding.
</P>
<P>(4) <I>Certain types of compensation</I>—(i) <I>Federal employees.</I> Levy may be made upon the salary or wages of any officer or employee (including members of the Armed Forces), or elected or appointed official, of the United States, the District of Columbia, or any agency or instrumentality of either, by serving a notice of levy on the employer of the delinquent taxpayer. As used in this paragraph, the term “employer” means:
</P>
<P>(A) The officer or employee of the United States, the District of Columbia, or of the agency or instrumentality of the United States or the District of Columbia, who has control of the payment of the wages, or
</P>
<P>(B) Any other officer or employee designated by the head of the branch, department, or agency, or instrumentality of the United States or of the District of Columbia as the party upon whom service of the notice of levy may be made.
</P>
<FP>If the head of such branch, department, agency or instrumentality designates an officer or employee other than one who has control of the payment of the wages, as the party upon whom service of the notice of levy may be made, such head shall promptly notify the appropriate TTB officer of the name and address of each officer or employee so designated and the scope or extent of the authority of such designee.
</FP>
<P>(ii) <I>State and municipal employees.</I> Salaries, wages, or other compensation of any officer, employee, or elected or appointed official of a State or Territory, or of any agency, instrumentality, or political subdivision thereof, are also subject to levy to enforce collection of any Federal tax.
</P>
<P>(iii) <I>Seamen.</I> Notwithstanding the provisions of section 12 of the Seamen's Act of 1915 (46 U.S.C. 601), wages of seamen, apprentice seamen, or fishermen employed on fishing vessels are subject to levy. See 26 U.S.C. 6334(c).
</P>
<P>(5) <I>Noncompetent Indians.</I> Solely for purposes of 26 U.S.C. 6321 and 6331, any interest in restricted land held in trust by the United States for an individual noncompetent Indian (and not for a tribe) shall not be deemed to be property, or a right to property, belonging to such Indian.
</P>
<P>(b) <I>Successive seizures.</I> Whenever any property or rights to property upon which a levy has been made are not sufficient to satisfy the claim of the United States for which the levy is made, the appropriate TTB officer may thereafter, and as often as may be necessary, proceed to levy in like manner upon any other property or rights to property subject to levy of the person against whom such claim exists or on which there is a lien imposed by 26 U.S.C. 6321 (or the corresponding provision of prior law) for the payment of such claim until the amount due from such person, together with all costs and expenses, is fully paid.
</P>
<P>(c) <I>Service of notice of levy by mail.</I> A notice of levy may be served by mailing the notice to the person upon whom the service of a notice of levy is authorized under paragraph (a)(1) of this section. In such a case the date and time the notice is delivered to the person to be served is the date and time the levy is made. If the notice is sent by certified or registered mail, return receipt requested, the date of delivery on the receipt is treated as the date the levy is made. If, after receipt of a notice of levy, an officer or other person authorized to act on behalf of the person served signs and notes the date and time of receipt on the notice of levy, the date and time so noted will be presumed to be, in the absence of proof to the contrary, the date and time of delivery. Any person may upon written notice to the appropriate TTB officer, have all notices of levy by mail sent to one designated office. After such a notice is received by the appropriate TTB officer, notices of levy by mail will sent to the designated office until a written notice withdrawing the request or a written notice designating a difference office is received by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6331 and 6332)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973,as amended by T.D. ATF-450, 66 FR 29026, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] 




</CITA>
</DIV8>


<DIV8 N="§ 70.162" NODE="27:2.0.1.4.7.4.202.54" TYPE="SECTION">
<HEAD>§ 70.162   Levy and distraint on salary and wages.</HEAD>
<P>(a) <I>Notice of intent to levy.</I> Levy may be made for any unpaid tax only after the appropriate TTB officer has notified the taxpayer in writing of the intent to levy. The notice must be given in person, left at the dwelling or usual place of business of the taxpayer, or be sent by certified or registered mail to the taxpayer's last known address, no less than 30 days before the day of levy. The notice of intent to levy is in addition to, and may be given at the same time as, the notice and demand described in § 70.161 of this part.
</P>
<P>(b) <I>Jeopardy.</I> Paragraph (a) of this section does not apply to a levy if the appropriate TTB officer has made a finding under § 70.161(a)(2) of this part that the collection of tax is in jeopardy.
</P>
<P>(c) <I>Continuing effect of levy on salary or wages.</I> A levy on salary or wages is continuous from the time of the levy until the liability out of which the levy arose is released under 26 U.S.C. 6343 and § 70.167 of this part. For this purpose, the term “salary or wages” includes compensation for services paid in the form of fees, commissions, bonuses, and similar items. The levy attaches to both salary or wages earned but not yet paid at the time of the levy, and salary or wages earned and becoming payable (or paid in the form of an advance) subsequent to the date of the levy, until the levy is released pursuant to paragraph (d) of this section. In general, salaries or wages that are the subject of a continuing levy, if not exempt from levy under 26 U.S.C. 6334(a) (8) or (9), become payable to the officer who made the levy as the payor would otherwise be obligated to pay over the money to the taxpayer. For example, if the wage earner is paid on the Wednesday following the close of each workweek, a levy made upon the taxpayer's employer on any Monday would reach both the wages due for the prior workweek and the wages for succeeding workweeks as such wages become payable. In such a case the levy would be satisfied if the employer, on the first Wednesday after the levy and on each Wednesday thereafter, pays over to the officer who made the levy wages which would otherwise be paid to the employee on such Wednesday, until the employer receives a notice of release from levy described in paragraph (d) of this section. See, however, § 70.245(d) of this part for rules which permit a delayed payment to the officer who made the levy in certain cases where amounts payable to the taxpayer are exempt from levy under 26 U.S.C. 6334 (a)(9) and (d).
</P>
<P>(d) <I>Release and notice of release from levy.</I> The officer who made the levy will promptly release a continuing levy on salary or wages when the conditions of 26 U.S.C. 6343 are met. The officer who made the levy will also promptly notify the person upon whom the levy was made that it has been released.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6331)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.163" NODE="27:2.0.1.4.7.4.202.55" TYPE="SECTION">
<HEAD>§ 70.163   Surrender of property subject to levy.</HEAD>
<P>(a) <I>Requirement</I>—(1) <I>In general.</I> Except as otherwise provided in 26 U.S.C. 6332, relating to levy in the case of banks or life insurance and endowment contracts, any person in possession of (or obligated with respect to) property or rights to property subject to levy and upon which a levy has been made shall, upon demand of the officer who made the levy, surrender the property or rights (or discharge the obligation) to the officer who made the levy, except that part of the property or rights (or obligation) which, at the time of the demand, is actually or constructively under the jurisdiction of a court because of an attachment or execution under any judicial process.
</P>
<P>(2) <I>Property held by banks.</I> (i) Any bank shall surrender any deposits (including interest thereon) in such bank only after 21 days after service of levy.
</P>
<P>(ii) Notwithstanding paragraph (a)(1) of this section, if a levy has been made upon property or rights to property subject to levy which a bank engaged in the banking business in the United States or a possession of the United States is in possession of (or obligated with respect to), an appropriate TTB officer shall not enforce the levy with respect to any deposits held in an office of the bank outside the United States or a possession of the United States, unless the notice of levy specifies that such officer intends to reach such deposits. The notice of levy must not specify that such officer intends to reach such deposits unless that officer making such levy believes:
</P>
<P>(A) That the taxpayer is within the jurisdiction of a U.S. court at the time the levy is made and that the bank is in possession of (or obligated with respect to) deposits of the taxpayer in an office of the bank outside the United States or a possession of the United States; or
</P>
<P>(B) That the taxpayer is not within the jurisdiction of a U.S. court at the time the levy is made, that the bank is in possession of (or obligated with respect to) deposits of the taxpayer in an office outside the United States or a possession of the United States, and that such deposits consist, in whole or in part, of funds transferred from the United States or a possession of the United States in order to hinder or delay the collection of a tax imposed by provisions of 26 U.S.C. enforced and administered by the Bureau.
</P>
<P>(b) <I>Enforcement of levy</I>—(1) <I>Extent of personal liability.</I> Any person who, upon demand of the appropriate TTB officer, fails or refuses to surrender any property or right to property subject to levy is liable in his/her own person and estate in a sum equal to the value of the property or rights not so surrendered, together with costs and interests. The liability, however, may not exceed the amount of the taxes for the collection of which the levy was made. Interest is to be computed at the annual rate referred to in regulations under 26 U.S.C. 6221 from the date of the levy, or, in the case of a continuing levy on salary or wages (see 26 U.S.C. 6331(e)), from the date the person would otherwise have been obligated to pay over the wages or salary to the taxpayer. Any amount recovered, other than cost, will be credited against the tax liability for the collection of which the levy was made.
</P>
<P>(2) <I>Penalty for violation.</I> In addition to the personal liability described in paragraph (b)(1) of this section, any person who is required to surrender property or rights to property and who fails or refuses to surrender them without reasonable cause is liable for a penalty equal to 50 percent of the amount recoverable under 26 U.S.C. 6332(d)(2). No part of the penalty described in this subparagraph shall be credited against the tax liability for the collection of which the levy was made. The penalty described in this subparagraph is not applicable in cases where a bona fide dispute exists concerning the amount of the property to be surrendered pursuant to a levy or concerning the legal effectiveness of the levy. However, if a court in a later enforcement suit sustains the levy, then reasonable cause would usually not exist to refuse to honor a later levy made under similar circumstances.
</P>
<P>(c) <I>Effect of honoring levy.</I> Any person in possession of, or obligated with respect to, property or rights to property subject to levy and upon which a levy has been made who, upon demand by the appropriate TTB officer, surrenders the property or rights to property, or discharges the obligation, to that officer, or who pays a liability described in paragraph (b)(1) of this section, is discharged from any obligation or liability to the delinquent taxpayer with respect to the property or rights to property arising from the surrender or payment. If an insuring organization satisfies a levy with respect to a life insurance or endowment contract in accordance with § 70.164 of this part, the insuring organization is discharged from any obligation or liability to any beneficiaries of the contract arising from the surrender or payment. Also, it is discharged from any obligation or liability to the insured or other owner. Any person who mistakenly surrenders to the United States property or rights to property not properly subject to levy is not relieved from liability to a third party who owns the property. The owners of mistakenly surrendered property may, however, secure from the United States the administrative relief provided for in 26 U.S.C. 6343(b) or may bring suit to recover the property under 26 U.S.C. 7426.
</P>
<P>(d) <I>Person defined.</I> In addition to the definition given in § 70.11 of this part, the term “person,” as used in 26 U.S.C.A 6332(a) and this section, includes an officer or employee of a corporation or a member or employee of a partnership, who is under a duty to surrender the property or rights to property or to discharge the obligation. In the case of a levy upon the salary or wages of an officer, employee, or elected or appointed official of the United States, the District of Columbia, or any agency or instrumentality of either, the term “person” includes the officer or employee of the United States, of the District of Columbia, or of such agency or instrumentality who is under a duty to discharge the obligation. As to the officer or employee who is under such duty, see § 70.161(a)(4)(i) of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6332)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-450, 66 FR 29026, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.164" NODE="27:2.0.1.4.7.4.202.56" TYPE="SECTION">
<HEAD>§ 70.164   Surrender of property subject to levy in the case of life insurance and endowment contracts.</HEAD>
<P>(a) <I>In general.</I> This section provides special rules relating to the surrender of property subject to levy in the case of life insurance and endowment contracts. The provisions of § 70.163 of this part which relate generally to the surrender of property subject to levy apply, to the extent not inconsistent with the special rules set forth in this section, to a levy in the case of life insurance and endowment contracts.
</P>
<P>(b) <I>Effect of service of notice of levy</I>—(1) <I>In general.</I> A notice of levy served by an appropriate TTB officer on an insuring organization with respect to a life insurance or endowment contract issued by the organization shall constitute:
</P>
<P>(i) A demand by the officer who made the levy for the payment of the cash loan value of the contract adjusted in accordance with paragraph (c) of this section, and
</P>
<P>(ii) The exercise of the right of the person against whom the tax is assessed to the advance of such cash loan value.
</P>
<FP>It is unnecessary for the official who made the levy to surrender the contract document to the insuring organization upon which the levy is made. However, the notice of levy will include a certification by the official who made the levy that a copy of the notice of levy has been mailed to the person against whom the tax is assessed at that person's last known address. At the time of service of the notice of levy, the levy is effective with respect to the cash loan value of the insurance contract, subject to the condition that if the levy is not satisfied or released before the 90th day after the date of service, the levy can be satisfied only by payment of the amount described in paragraph (c) of this section. Other than satisfaction or release of the levy, no event during the 90-day period subsequent to the date of service of the notice of levy shall release the cash loan value from the effect of the levy. For example, the termination of the policy by the taxpayer or by the death of the insured during such 90-day period shall not release the levy. For the rules relating to the time when the insuring organization is to pay over the required amount, see paragraph (c) of this section.
</FP>
<P>(2) <I>Notification of amount subject to levy</I>—(i) <I>Full payment before the 90th day.</I> In the event that the unpaid liability to which the levy relates is satisfied at any time during the 90-day period subsequent to the date of service of the notice of levy, the officer who filed the notice of levy will promptly give the insuring organization written notification that the levy is released.
</P>
<P>(ii) <I>Notification after the 90th day.</I> In the event that notification is not given under paragraph (b)(2)(i) of this section, the officer who filed the notice of levy will, promptly following the 90th day after service of the notice of levy, give the insuring organization written notification of the current status of all accounts listed on the notice of levy, and of the total payments received since service of the notice of levy. This notification will be given to the insuring organization whether or not there has been any change in the status of the accounts.
</P>
<P>(c) <I>Satisfaction of levy.</I> The levy described in paragraph (b) of this section with respect to a life insurance or endowment contract shall be deemed to be satisfied if the insuring organization pays over to the officer who made the levy the amount which the person against whom the tax is assessed could have had advanced by the organization on the 90th day after service of the notice of levy on the organization. However, this amount is increased by the amount of any advance (including contractual interest thereon), generally called a policy loan, made to the person on or after the date the organization has actual notice or knowledge, within the meaning of 26 U.S.C. 6323(i)(1), of the existence of the tax lien with respect to which the levy is made. The insuring organization may, nevertheless, make an advance (including contractual interest thereon), generally called an automatic premium loan, made automatically to maintain the contract in force under an agreement entered into before the organization has such actual notice or knowledge. In any event, the amount paid to the appropriate TTB officer by the insuring organization is not to exceed the amount of the unpaid liability shown on the notification described in paragraph (b)(2) of this section. The amount determined in accordance with the provisions of this section, subject to the levy, shall be paid to the appropriate TTB officer by the insuring organization promptly after receipt of the notification described in paragraph (b)(2) of this section. The satisfaction of a levy with respect to a life insurance or endowment contract will not discharge the contract from the tax lien. However, see 26 U.S.C. 6323(b)(9)(C) and § 70.231(i) of this part concerning the liability of an insurance company after satisfaction of a levy with respect to a life insurance or endowment contract. If the person against whom the tax is assessed so directs, the insuring organization, on a date before the 90th day after service of the notice of levy, may satisfy the levy by paying over an amount computed in accordance with the provisions of this subparagraph substituting such date for the 90th day. In the event of termination of the policy by the taxpayer or by the death of the insured on a date before the 90th day after service of the notice of levy, the amount to be paid over to the appropriate TTB officer by the insuring organization in satisfaction of the levy shall be an amount computed in accordance with the provisions of this subparagraph substituting the date of termination of the policy or the date of death for the 90th day.
</P>
<P>(d) <I>Other enforcement proceedings.</I> The satisfaction of the levy described in paragraph (b) of this section by an insuring organization shall be without prejudice to any civil action for the enforcement of any Federal tax lien with respect to a life insurance or endowment contract. Thus, this levy procedure is not the exclusive means of subjecting the life insurance and endowment contracts of the person against whom a tax is assessed to the collection of the person's unpaid assessment. The United States may choose to foreclose the tax lien in any case where it is appropriate, as, for example, to reach the cash surrender value (as distinguished from cash loan value) of a life insurance or endowment contract.
</P>
<P>(e) <I>Cross references.</I> (1) For provisions relating to priority of certain advances with respect to a life insurance or endowment contract after satisfaction of a levy pursuant to 26 U.S.C. 6332(b), see 26 U.S.C. 6323(b)(9) and § 70.231(i) of this part.
</P>
<P>(2) For provisions relating to the issuance of a certificate of discharge of a life insurance or endowment contract subject to a tax lien, see 26 U.S.C. 6325(b) and § 70.150(b) of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6332)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.165" NODE="27:2.0.1.4.7.4.202.57" TYPE="SECTION">
<HEAD>§ 70.165   Production of books.</HEAD>
<P>If a levy has been made or is about to be made on any property or rights to property, any person, having custody or control of any books or records containing evidence or statements relating to the property or rights to property subject to levy, shall, upon demand of the appropriate TTB officer who has made or is about to make the levy, exhibit such books or records to such officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6333)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.167" NODE="27:2.0.1.4.7.4.202.58" TYPE="SECTION">
<HEAD>§ 70.167   Authority to release levy and return property.</HEAD>
<P>(a) <I>Release of levy</I>—(1) <I>Authority.</I> An appropriate TTB officer may release the levy upon all or part of the property or rights to property levied upon as provided in paragraphs (a)(2), (3) and (4) of this section. A levy may be released under paragraph (a)(3) of this section only if the delinquent taxpayer complies with such of the conditions thereunder as an appropriate TTB officer may require and if the appropriate TTB officer determines that such action will facilitate the collection of the liability.
</P>
<P>(2) <I>Conditions for mandatory release.</I> (i) An appropriate TTB officer shall release the levy as authorized under paragraph (a)(1) of this section, if any of the following conditions exist:
</P>
<P>(A) The liability for which such levy was made is satisfied or becomes unenforceable by reason of lapse of time,
</P>
<P>(B) Release of such levy will facilitate the collection of such liability,
</P>
<P>(C) The taxpayer has entered into an agreement under 26 U.S.C. 6159 to satisfy such liability by means of installment payments, unless such agreement provides otherwise (an appropriate TTB officer is not required to release the levy in this case if release of such levy would jeopardize the secured creditor status of the United States). 
</P>
<P>(D) An appropriate TTB officer has determined that such levy is creating an economic hardship due to the financial condition of the taxpayer, or 
</P>
<P>(E) The fair market value of the property exceeds such liability and release of the levy on a part of such property could be made without hindering the collection of such liability.
</P>
<P>(ii) In the case of any tangible personal property essential in carrying on the trade or business of the taxpayer, the appropriate TTB officer shall provide for an expedited determination under paragraph (a)(2)(i) if levy on such tangible personal property would prevent the taxpayer from carrying on such trade or business.
</P>
<P>(3) <I>Conditions for discretionary release.</I> An appropriate TTB officer may release the levy as authorized under paragraph (a)(1) of this section, if:
</P>
<P>(i) <I>Escrow arrangement.</I> The delinquent taxpayer offers a satisfactory arrangement, which is accepted by an appropriate TTB officer, for placing property in escrow to secure the payment of the liability (including the expenses of levy) which is the basis of the levy.
</P>
<P>(ii) <I>Bond.</I> The delinquent taxpayer delivers an acceptable bond to an appropriate TTB officer conditioned upon the payment of the liability (including the expenses of levy) which is the basis of the levy. Such bond shall be in the form provided in 26 U.S.C. 7101 and § 70.281 of this part.
</P>
<P>(iii) <I>Payment of amount of U.S. interest in the property.</I> There is paid to an appropriate TTB officer an amount determined by TTB to be equal to the interest of the United States in the seized property or the part of the seized property to be released.
</P>
<P>(iv) <I>Assignment of salaries and wages.</I> The delinquent taxpayer executes an agreement directing the taxpayer's employer to pay to an appropriate TTB officer amounts deducted from the employee's wages on a regular, continuing, or periodic basis, in such manner and in such amount as is agreed upon with an appropriate TTB officer, until the full amount of the liability is satisfied, and such agreement is accepted by the employer.
</P>
<P>(v) <I>Extension of statute of limitations.</I> The delinquent taxpayer executes an agreement to extend the statute of limitations in accordance with 26 U.S.C. 6502(a)(2) and § 70.224 of this part.
</P>
<P>(4) Release where value of interest of United States is insufficient to meet expenses of sale. An appropriate TTB officer may release the levy as authorized under paragraph (a)(1) of this section if that officer determines that the value of the interest of the United States in the seized property, or in the part of the seized property to be released is insufficient to cover the expenses of the sale of such property. 
</P>
<P>(b) <I>Return of property</I>—(1) <I>General rule.</I> If an appropriate TTB officer determines that property has been wrongfully levied upon, the appropriate TTB officer may return: 
</P>
<P>(i) The specific property levied upon,
</P>
<P>(ii) An amount of money equal to the amount of money levied upon (together with interest thereon at the overpayment rate from the date TTB receives the money to a date not more than 30 days before the date of return), or
</P>
<P>(iii) An amount of money equal to the amount of money received by the United States from a sale of the property (together with interest thereon at the overpayment rate from the date of the sale of the property to a date not more than 30 days before the date of return).
</P>
<FP>If the United States is in possession of specific property, the property may be returned at any time. An amount equal to the amount of money levied upon or received from a sale of the property may be returned at any time before the expiration of 9 months from the date of the levy. When a request described in paragraph (b)(2) of this section is filed for the return of property before the expiration of 9 months from the date of levy, an amount of money may be returned after a reasonable period of time subsequent to the expiration of the 9-month period if necessary for the investigation and processing of such request. In cases where money is specifically identifiable, as in the case of a coin collection which may be worth substantially more than its face value, the money will be treated as specific property and, whenever possible, this specific property will be returned. For purposes of paragraph (b)(1)(iii) of this section, if property is declared purchased by the United States at a sale pursuant to 26 U.S.C. 6335(e), the United States is treated as having received an amount of money equal to the minimum price determined by the appropriate TTB officer before the sale or, if larger, the amount received by the United States from the resale of the property.
</FP>
<P>(2) <I>Request for return of property.</I> A written request for the return of property wrongfully levied upon shall be addressed to the officer who authorized the levy. The written request shall contain the following information:
</P>
<P>(i) The name and address of the person submitting the request,
</P>
<P>(ii) A detailed description of the property levied upon,
</P>
<P>(iii) A description of the claimant's basis for claiming an interest in the property levied upon, and
</P>
<P>(iv) The name and address of the taxpayer, the originating TTB office, and the date of lien or levy as shown on the Notice of Tax Lien, Notice of Levy, or, in lieu thereof, a statement of the reasons why such information cannot be furnished.
</P>
<P>(3) <I>Inadequate request.</I> A request shall not be considered adequate unless it is a written request containing the information required by paragraph (b)(2) of this section. However, unless a notification is mailed by the officer who received the request to the claimant within 30 days of receipt of the request to inform the claimant of the inadequacies, any written request shall be considered adequate. If the officer who received the request timely notifies the claimant of the inadequacies of the request, the claimant shall have 30 days from the receipt of the notification of inadequacy to supply in writing any omitted information. Where the omitted information is so supplied within the 30-day period, the request shall be considered to be adequate from the time the original request was made for purposes of determining the applicable period of limitation upon suit under 26 U.S.C. 6532(c).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6343)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-450, 66 FR 29026, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.168" NODE="27:2.0.1.4.7.4.202.59" TYPE="SECTION">
<HEAD>§ 70.168   Redemption of property.</HEAD>
<P>(a) <I>Before sale.</I> Any person whose property has been levied upon shall have the right to pay the amount due, together with costs and expenses of the proceeding, if any, to the appropriate TTB officer at any time prior to the sale of the property. Upon such payment the appropriate TTB officer shall restore such property to the owner and all further proceedings in connection with the levy on such property shall cease from the time of such payment.
</P>
<P>(b) <I>Redemption of real estate after sale</I>—(1) <I>Period.</I> The owner of any real estate sold as provided in 26 U.S.C. 6335, the owner's heirs, executors, or administrators, or any person having any interest therein, or a lien thereon, or any person in their behalf, shall be permitted to redeem the property sold, or any particular tract of such property, at any time within 180 days after the sale thereof.
</P>
<P>(2) <I>Price.</I> Such property or tract of property may be redeemed upon payment to the purchaser, or in case the purchaser cannot be found in the county in which the property to be redeemed is situated, then to the appropriate TTB officer, for the use of the purchaser, the purchaser's heirs, or assigns, the amount paid by such purchaser and interest thereon at the rate of 20 percent per annum. In case real and personal property (or several tracts of real property) are purchased in the aggregate, the redemption price of the real property (or of each of the several tracts) shall be determined on the basis of the ratio, as of the time of sale, of the value of the real property (or tract) to the value of the total property purchased. For this purpose the minimum price or the highest bid price, whichever is higher, offered for the property separately or in groups shall be treated as the value.
</P>
<P>(c) <I>Record.</I> When any real property is redeemed, the appropriate TTB officer must cause entry of the fact to be made upon the record of sale kept in accordance with 26 U.S.C. 6340 and § 70.187 of this part, and such entry is evidence of such redemption. The party who redeems the property must notify the appropriate TTB officer of the date of such redemption and of the transfer of the certificate of sale, the amount of the redemption price, and the name of the party to whom such redemption price was paid. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6337)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-450, 66 FR 29026, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.169" NODE="27:2.0.1.4.7.4.202.60" TYPE="SECTION">
<HEAD>§ 70.169   Expense of levy and sale.</HEAD>
<P>The appropriate TTB officer shall determine the expenses to be allowed in all cases of levy and sale. Such expenses shall include the expenses of protection and preservation of the property during the period subsequent to the levy, as well as the actual expenses incurred in connection with the sale thereof. In case real and personal property (or several tracts of real property) are sold in the aggregate, the appropriate TTB officer shall properly apportion the expenses to the real property (or to each tract).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6341)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.170" NODE="27:2.0.1.4.7.4.202.61" TYPE="SECTION">
<HEAD>§ 70.170   Application of proceeds of levy.</HEAD>
<P>(a) <I>Collection of liability.</I> Any money realized by proceedings under 26 U.S.C. 6331 through 6344, or by sale of property redeemed by the United States (if the interest of the United States in the property was a lien arising under the provisions of 26 U.S.C. enforced and administered by the Bureau), is applied in the manner specified in paragraphs (a)(1), (2), and (3) of this section. Money realized by proceedings under 26 U.S.C. 6331 through 6344, includes money realized by seizure, by sale of seized property, or by surrender under 26 U.S.C. 6332 except money realized by the imposition of a 50 percent penalty pursuant to 26 U.S.C. 6332(d)(2)).
</P>
<P>(1) <I>Expense of levy and sale.</I> First, against the expenses of the proceedings or sale, including expenses allowable under 26 U.S.C. 6341 and amounts paid by the United States to redeem property.
</P>
<P>(2) <I>Specific tax liability on seized property.</I> If the property seized and sold is subject to a tax imposed by any provision of 26 U.S.C. which has not been paid, the amount remaining after applying paragraph (a)(1) of this section, shall then be applied against such tax liability (and, if such tax was not previously assessed, it shall then be assessed):
</P>
<P>(3) <I>Liability of delinquent taxpayer.</I> The amount, if any, remaining after applying paragraphs (a)(1) and (2) of this section, shall then be applied against the liability in respect of which the levy was made or the sale of redeemed property was conducted.
</P>
<P>(b) <I>Surplus proceeds.</I> Any surplus proceeds remaining after the application of paragraph (a) of this section shall, upon application and satisfactory proof in support thereof, be credited or refunded by the appropriate TTB officer to the person or persons legally entitled thereto. The delinquent taxpayer is the person entitled to the surplus proceeds unless another person establishes a superior claim thereto.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6342)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="203" NODE="27:2.0.1.4.7.4.203" TYPE="SUBJGRP">
<HEAD>Disposition of Property</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>Sections 70.181 through 70.188 added by T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 70.181" NODE="27:2.0.1.4.7.4.203.62" TYPE="SECTION">
<HEAD>§ 70.181   Disposition of seized property.</HEAD>
<P>(a) <I>Notice of seizure.</I> As soon as practicable after seizure of property, the appropriate TTB officer seizing the property shall give notice in writing to the owner of the property (or, in the case of personal property, to the possessor thereof). The written notice shall be delivered to the owner (or to the possessor, in the case of personal property) or left at the owner's usual place of abode or business, if located within the TTB region where the seizure is made. If the owner cannot be readily located, or has no dwelling or place of business within such region, the notice may be mailed to the owner's last known address. Such notice shall specify the sum demanded and shall contain, in the case of personal property, a list sufficient to identify the property seized and, in the case of real property, a description with reasonable certainty of the property seized.
</P>
<P>(b) <I>Notice of sale.</I> (1) As soon as practicable after seizure of the property, the appropriate TTB officer shall give notice of sale in writing to the owner. Such notice shall be delivered to the owner or left at the owner's usual place of abode or business if located. If the owner cannot be readily located, or has no dwelling or place of business, the notice may be mailed to the owner's last known address. The notice shall specify the property to be sold, and the time, place, manner, and conditions of the sale thereof, and shall expressly state that only the right, title, and interest of the delinquent taxpayer in and to such property is to be offered for sale. The notice shall also be published in some newspaper published in the county wherein the seizure is made or in a newspaper generally circulated in that county. For example, if a newspaper of general circulation in a county but not published in that county will reach more potential bidders for the property to be sold than a newspaper published within the county, or if there is a newspaper of general circulation within the county but no newspaper published within the county, the appropriate TTB officer may cause public notice of the sale to be given in the newspaper of general circulation within the county. If there is no newspaper published or generally circulated in the county, the notice shall be posted at the post office nearest the place where the seizure is made, and in not less than two other public places.
</P>
<P>(2) The appropriate TTB officer may use other methods of giving notice of sale and of advertising seized property in addition to those referred to in paragraph (b)(1) of this section, when the appropriate TTB officer believes that the nature of the property to be sold is such that a wider or more specialized advertising coverage will enhance the possibility of obtaining a higher price for the property.
</P>
<P>(3) Whenever levy is made without regard to the 10-day period provided in 26 U.S.C. 6331(a) (relating to cases in which collection is in jeopardy), a public notice of sale of the property seized shall not be made within such 10-day period unless 26 U.S.C. 6336 (relating to perishable goods) is applicable.
</P>
<P>(c) <I>Time, place, manner, and conditions of sale.</I> The time, place, manner, and conditions of sale of property seized by levy shall be as follows:
</P>
<P>(1) <I>Time and place of sale</I>—(i) <I>In general.</I> The time of sale shall not be less than 10 days nor more than 40 days from the time of giving public notice under 26 U.S.C. 6335(b) (see paragraph (b) of this section). The place of sale shall be within the county in which the property is seized, except that if it appears to the appropriate TTB officer under whose supervision the seizure was made that substantially higher bids may be obtained for the property if the sale is held at a place outside such county, the appropriate TTB officer may order that the sale be held in such other place. The sale shall be held at the time and place stated in the notice of sale.
</P>
<P>(ii) <I>Right to request sale of seized property within 60 days.</I> The owner of any property seized by levy may request that the appropriate TTB officer sell such property within 60 days after such request (or within such longer period as may be specified by the owner). The appropriate TTB officer shall comply with such request unless it is determined (and the owner is notified within such period) that such compliance would not be in the best interests of the United States.
</P>
<P>(2) <I>Adjournment of sale.</I> When it appears to the appropriate TTB officer that an adjournment of the sale will best serve the interest of the United States or that of the taxpayer, the appropriate TTB officer may adjourn the sale from time to time, but the date of the sale shall not be later than one month after the date fixed in the original notice of sale.
</P>
<P>(3) <I>Minimum price.</I> (i) Before the sale of property seized by levy, the appropriate TTB officer shall determine:
</P>
<P>(A) A minimum price, taking into account the expenses of levy and sale, for which the property shall be sold, and
</P>
<P>(B) Whether the purchase of such property by the United States at such minimum price would be in the best interest of the United States.
</P>
<FP>If, at the sale, one or more persons offer to purchase such property for not less than the amount of the minimum price, the property shall be declared to be sold to the highest bidder. If no person offers for such property at the sale the amount of the minimum price and the appropriate TTB officer has determined that the purchase of such property by the United States would be in the best interest of the United States, the property shall be declared to be sold to the United States at such minimum price. If, at the sale, the property is not declared sold to the highest bidder or the United States, the property shall be released to the owner thereof and the expense of the levy and sale shall be added to the amount of tax for the collection of which the levy was made. Any property released to the owner under these circumstances shall remain subject to any lien imposed by 26 U.S.C. chapter 64, subchapter C.
</FP>
<P>(ii) The appropriate TTB officer conducting the sale shall either announce the minimum price before the sale begins or defer announcement of the minimum price until after the receipt of the highest bid, and, if the highest bid is greater than the minimum price, no announcement of the minimum price shall be made.
</P>
<P>(4) <I>Offering of property</I>—(i) <I>Sale of indivisible property.</I> If any property levied upon is not divisible, so as to enable the appropriate TTB officer by sale of a part thereof to raise the whole amount of the tax and expenses of levy and sale, the whole of such property shall be sold. For application of surplus proceeds of sale, see 26 U.S.C. 6342(b).
</P>
<P>(ii) <I>Separately, in groups, or in the aggregate.</I> The seized property may be offered for sale:
</P>
<P>(A) As separate items, or
</P>
<P>(B) As groups of items, or
</P>
<P>(C) In the aggregate, or
</P>
<P>(D) Both as separate items (or in groups) and in the aggregate. In such cases, the property shall be sold under the method which produces the highest aggregate amount.
</P>
<FP>The appropriate TTB officer shall select whichever of the foregoing methods of offering the property for sale as is most feasible under all the facts and circumstances of the case, except that if the property to be sold includes both real and personal property, only the personal property may be grouped for the purpose of offering such property for sale. However, real and personal property may be offered for sale in the aggregate, provided the real property, as separate items, and the personal as a group, or as groups, or as separate items, are first offered separately.
</FP>
<P>(iii) <I>Condition of title and of property.</I> Only the right, title, and interest of the delinquent taxpayer in and to the property seized shall be offered for sale, and such interest shall be offered subject to any prior outstanding mortgages, encumbrances, or other liens in favor of third parties which are valid as against the delinquent taxpayer and are superior to the lien of the United States. All seized property shall be offered for sale “as is” and “where is” and without recourse against the United States. No guaranty or warranty, express or implied, shall be made by the appropriate TTB officer offering the property for sale, as to the validity of the title, quality, quantity, weight, size, or condition of any of the property, or its fitness for any use or purpose. No claim shall be considered for allowance or adjustment or for rescission of the sale based upon failure of the property to conform with any representation, express or implied.
</P>
<P>(iv) <I>Terms of payment.</I> The property shall be offered for sale upon whichever of the following terms is fixed by the appropriate TTB officer in the public notice of sale:
</P>
<P>(A) Payment in full upon acceptance of the highest bid, without regard to the amount of such bid, or
</P>
<P>(B) If the aggregate price of all property purchased by a successful bidder at the sale is more than $200, an initial payment of $200 or 20 percent of the purchase price, whichever is the greater, and payment of the balance (including all costs incurred for the protection or preservation of the property subsequent to the sale and prior to final payment) within a specified period, not to exceed 1 month from the date of the sale.
</P>
<P>(5) <I>Method of sale.</I> The appropriate TTB officer shall sell the property either:
</P>
<P>(i) At public auction, at which open competitive bids shall be received, or
</P>
<P>(ii) At public sale under sealed bids. The following rules, in addition to the other rules provided in this paragraph, shall be applicable to public sale under sealed bids:
</P>
<P>(A) <I>Invitation to bidders.</I> Bids shall be solicited through a public notice of sale.
</P>
<P>(B) <I>Form for use by bidders.</I> A bid shall be submitted on a form which will be furnished by the appropriate TTB officer upon request. The form shall be completed in accordance with the instructions thereon.
</P>
<P>(C) <I>Remittance with bid.</I> If the total bid is $200 or less, the full amount of the bid shall be submitted therewith. If the total bid is more than $200, 20 percent of such bid or $200, whichever is greater, shall be submitted therewith. (In the case of alternative bids submitted by the same bidder for items of property offered separately, or groups, or in the aggregate, the bidder shall remit the full amount of the highest alternative bid submitted, if the bid is $200 or less. If the highest alternative bid submitted is more than $200, the bidder shall remit 20 percent of the highest alternative bid or $200, whichever is greater.) Such remittance shall be by a certified, cashier's, or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or under the laws of any State, Territory, or possession of the United States, or by a U.S. postal, bank, express, or telegraph money order.
</P>
<P>(D) <I>Time for receiving and opening bids.</I> Each bid shall be submitted in a securely sealed envelope. The bidder shall indicate in the upper left hand corner of the envelope the bidder's name and address and the time and place of sale as announced in the public notice of sale. A bid will not be considered unless it is received by the officer conducting the sale prior to the opening of the bids. The bids will be opened at the time and place stated in the notice or sale, or at the time fixed in the announcement of the adjournment of the sale.
</P>
<P>(E) <I>Consideration of bids.</I> The public notice of sale shall specify whether the property is to be sold separately, by groups, or in the aggregate or by a combination of these methods, as provided in paragraph (c)(4)(ii) of this section. If the notice specifies an alternative method, bidders may submit bids under one or more of the alternatives. In case of error in the extension of prices in any bid, the unit price will govern. The officer conducting the sale shall have the right to waive any technical defects in a bid. In the event two or more highest bids are equal in amount, the officer conducting the sale shall determine the successful bidder by drawing lots. After the opening, examination, and consideration of all bids, the officer conducting the sale shall announce the amount of the highest bid or bids and the name of the successful bidder or bidders. Any remittance submitted in connection with an unsuccessful bid shall be returned at the conclusion of the sale.
</P>
<P>(F) <I>Withdrawal of bids.</I> A bid may be withdrawn on written or telegraphic request received from the bidder prior to the time fixed for opening the bids. A technical defect in a bid confers no right on the bidder for the withdrawal of his bid after it has been opened.
</P>
<P>(6) <I>Payment of bid price.</I> All payments for property sold under this section shall be made by cash or by a certified, cashier's, or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States, or under the laws of any State, Territory, or possession of the United States, or by a U.S. postal, bank, express, or telegraph money order. If payment in full is required upon acceptance of the highest bid, the payment shall be made at such time. If deferred payment is permitted, the initial payment shall be made upon acceptance of the bid, and the balance shall be paid on or before the date fixed for payment thereof. Any remittance submitted with a successful sealed bid shall be applied toward the purchase price.
</P>
<P>(7) <I>Delivery and removal of personal property.</I> Responsibility of the United States for the protection or preservation of seized personal property shall cease immediately upon acceptance of the highest bid. The risk of loss is on the purchaser of personal property upon acceptance of his bid. Possession of any personal property shall not be delivered to the purchaser until the purchase price has been paid in full. If payment of part of the purchase price for personal property is deferred, the United States will retain possession of such property as security for the payment of the balance of the purchase price and, as agent for the purchaser, will cause the property to be cared for until the purchase price has been paid in full or the sale is declared null and void for failure to make full payment of the purchase price. In such case, all charges and expenses incurred in caring for the property after the acceptance of the bid shall be borne by the purchaser.
</P>
<P>(8) <I>Default in payment.</I> If payment in full is required upon acceptance of the bid and is not then and there paid, the officer conducting the sale shall forthwith proceed again to sell the property in the manner provided in 26 U.S.C. 6335(e) and this section. If the conditions of the sale permit part of the payment to be deferred, and if such part is not paid within the prescribed period, suit may be instituted against the purchaser for the purchase price or such part thereof as has not been paid, together with interest at the rate of 6 percent per annum from the date of the sale; or, in the discretion of the appropriate TTB officer, the sale may be declared by the appropriate TTB officer to be null and void for failure to make full payment of the purchase price and the property may again be advertised and sold as provided in 26 U.S.C. 6335(b), (c), and (e) and this section. In the event of such readvertisement and sale, any new purchaser shall receive such property or rights to property free and clear of any claim or right of the former defaulting purchaser, of any nature whatsoever, and the amount paid upon the bid price by such defaulting purchaser shall be forfeited to the United States.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6335)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.182" NODE="27:2.0.1.4.7.4.203.63" TYPE="SECTION">
<HEAD>§ 70.182   Disposition of personal property acquired by the United States.</HEAD>
<P>(a) <I>Sale</I>—(1) <I>In general.</I> Any personal property (except bonds, notes, checks, and other securities) acquired by the United States in payment of or as security for debts arising under the internal revenue laws may be sold by the appropriate TTB officer who acquired such property for the United States. United States saving bonds shall not be sold by the appropriate TTB officer, but shall be transferred to the appropriate office of the Treasury Department for redemption. Other bonds, notes, checks, and other securities shall be disposed of in accordance with instructions issued by the appropriate TTB officer.
</P>
<P>(2) <I>Time, place, manner and terms of sale.</I> The time, place, manner and terms of sale of personal property acquired for the United States shall be as follows:
</P>
<P>(i) <I>Time, notice, and place of sale.</I> The property may be sold at any time after it has been acquired by the United States. A public notice of sale shall be posted at the post office nearest the place of sale and in at least two other public places. The notice shall specify the property to be sold and the time, place, manner, and conditions of sale. In addition, the appropriate TTB officer may use such other methods of advertising as such officer believes will result in obtaining the highest price for the property. Generally, the place of sale will be within the area where the property was originally acquired by the United States. However, if the appropriate TTB officer believes that a substantially higher price may be obtained, the sale may be held outside such area. 
</P>
<P>(ii) <I>Rejection of bids and adjournment of sale.</I> The officer conducting the sale reserves the right to reject any and all bids and withdraw the property from the sale. When it appears to the officer conducting the sale that an adjournment of the sale will best serve the interest of the United States, that officer may order the sale adjourned from time to time. If the sale is adjourned for more than 30 days in the aggregate, public notice of the sale must again be given in accordance with paragraph (a)(2)(i) of this section.
</P>
<P>(iii) <I>Liquidated damages.</I> The notice shall state whether, in the case of default in payment of the bid price, any amount deposited with the United States will be retained as liquidated damages. In case liquidated damages are provided, the amount thereof shall not exceed $200.
</P>
<P>(3) <I>Agreement to bid.</I> The appropriate TTB officer may, before giving notice of sale, solicit offers from prospective bidders and enter into agreements with such persons that they will bid at least a specified amount in case the property is offered for sale. In such cases, the appropriate TTB officer may also require such persons to make deposits to secure the performance of their agreements. Any such deposit, but not more than $200, shall be retained as liquidated damages in case such person fails to bid the specified amount and the property is not sold for as much as the amount specified in such agreement.
</P>
<P>(4) <I>Terms of payment.</I> The property shall be offered for sale upon whichever of the following terms is fixed by the appropriate TTB officer in the public notice of sale:
</P>
<P>(i) Payment in full upon acceptance of the highest bid, without regard to the amount of such bid, or
</P>
<P>(ii) If the aggregate price of all property purchased by a successful bidder at the sale is more than $200, an initial payment of $200 or 20 percent of the purchase price, whichever is the greater, and payment of the balance (including all costs incurred for the protection or preservation of the property subsequent to the sale and prior to final payment) within a specified period, not to exceed one month from the date of the sale.
</P>
<P>(5) <I>Method of sale.</I> The property may be sold either:
</P>
<P>(i) At public auction, at which open competitive bids shall be received, or
</P>
<P>(ii) At public sale under sealed bids.
</P>
<P>(6) <I>Sales under sealed bids.</I> The following rules, in addition to the other rules provided in this paragraph, shall be applicable to public sales under sealed bids.
</P>
<P>(i) <I>Invitation to bidders.</I> Bids shall be solicited through a public notice of sale.
</P>
<P>(ii) <I>Form for use by bidders.</I> A bid shall be submitted on a form which will be furnished by the appropriate TTB officer upon request. The form shall be completed in accordance with the instructions thereon.
</P>
<P>(iii) <I>Remittance with bid.</I> If the total bid is $200 or less, the full amount of the bid shall be submitted therewith. If the total bid is more than $200, 20 percent of such bid or $200, whichever is greater, shall be submitted therewith. Such remittance shall be by a certified, cashier's, or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or under the laws of any State, Territory, or possession of the United States, or by a U.S. postal, bank, express, or telegraph money order.
</P>
<P>(iv) <I>Time for receiving and opening bids.</I> Each bid shall be submitted in a securely sealed envelope. The bidder shall indicate in the upper left hand corner of the envelope the bidder's name and address and the time and place of sale as announced in the public notice of sale. A bid will not be considered unless it is received by the officer conducting the sale prior to the opening of the bids. The bids will be opened at the time and place stated in the notice of sale, or at the time fixed in the announcement of the adjournment of the sale.
</P>
<P>(v) <I>Consideration of bids.</I> The officer conducting the sale shall have the right to waive any technical defects in a bid. After the opening, examination, and consideration of all bids, the officer conducting the sale shall announce the amount of the highest bid or bids and the name of the successful bidder or bidders, unless in the opinion of the officer a higher price can be obtained for the property than has been bid. In the event the highest bids are equal in amount (and unless in the opinion of the officer conducting the sale a higher price can be obtained for the property than has been bid), the officer shall determine the successful bidder by drawing lots. Any remittance submitted in connection with an unsuccessful bid shall be returned to the bidder at the conclusion of the sale.
</P>
<P>(vi) <I>Withdrawal of bids.</I> A bid may be withdrawn on written or telegraphic request received from the bidder prior to the time fixed for opening the bids. A technical defect in a bid confers no right on the bidder for the withdrawal of the bid after it has been opened.
</P>
<P>(7) <I>Payment of bid price.</I> All payments for property sold pursuant to this section shall be made by cash or by a certified, cashier's or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or under the laws of any State, Territory, or possession of the United States, or by a U.S. postal, bank, express, or telegraph money order. If payment in full is required upon acceptance of the highest bid, the payment shall be made at such time. If payment in full is not made at such time, the officer conducting the sale may forthwith proceed again to sell the property in the manner provided in paragraph (a)(5) of this section. If deferred payment is permitted, the initial payment shall be made upon acceptance of the bid, and the balance shall be paid on or before the date fixed for payment thereof. Any remittance submitted with a successful sealed bid shall be applied toward the purchase price.
</P>
<P>(8) <I>Delivery and removal of personal property.</I> The risk of loss is on the purchaser of the property upon acceptance of the purchaser's bid. Possession of any property shall not be delivered to the purchaser until the purchase price has been paid in full. If payment of part of the purchase price for the property is deferred, the United States will retain possession of such property as security for the payment of the balance of the purchase price and, as agent for the purchaser, will cause the property to be cared for until the purchase price has been paid is full or the sale in declared null and void for failure to make full payment of the purchase price. In such case, all charges and expenses incurred in caring for the property after acceptance of the bid shall be borne by the purchaser.
</P>
<P>(9) <I>Certificate of sale.</I> The officer conducting the sale shall issue a certificate of sale to the purchaser upon payment in full of the purchase price.
</P>
<P>(b) <I>Accounting.</I> In case of the resale of such property, the proceeds of the sale shall be paid into the Treasury as internal revenue collections and there shall be rendered by the appropriate TTB officer a distinct account of all charges incurred in such sale. For additional accounting rules, see 26 U.S.C. 7809.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7505)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.183" NODE="27:2.0.1.4.7.4.203.64" TYPE="SECTION">
<HEAD>§ 70.183   Administration and disposition of real estate acquired by the United States.</HEAD>
<P>(a) <I>Persons charged with.</I> The appropriate TTB officer shall have charge of all real estate which has been or shall be assigned, set off, or otherwise conveyed by purchase or otherwise to the United States in payment of debts or penalties arising under provisions of 26 U.S.C. enforced and administered by the Bureau or which has been or shall be vested in the United States by mortgage, or other security for payment of such debts, or which has been redeemed by the United States, or which has been or shall be acquired by the United States for payment of or as security for debts arising under provisions of 26 U.S.C. enforced and administered by the Bureau, and of all trusts created for the use of the United States in payment of such debts due the United States.
</P>
<P>(b) <I>Sale.</I> The appropriate TTB officer may sell any real estate owned or held by the United States as aforesaid, subject to the following rules:
</P>
<P>(1) <I>Property purchased at sale under levy.</I> If the property was acquired as a result of being declared purchased for the United States at a sale under 26 U.S.C. 6335, relating to sale of seized property, the property shall not be sold until after the expiration of 180 days after such sale under levy.
</P>
<P>(2) <I>Notice of sale.</I> A notice of sale shall be published in some newspaper published or generally circulated within the county where the property is situated, or a notice shall be posted at the post office nearest the place where the property is situated and in at least two other public places. The notice shall specify the property to be sold and the time, place, manner and conditions of sale. In addition, the appropriate TTB officer may use other methods of advertising and of giving notice of the sale if the appropriate TTB officer believes such methods will enhance the possibility of obtaining a higher price for the property.
</P>
<P>(3) <I>Time and place of sale.</I> The time of the sale shall be not less than 20 days from the date of giving public notice of sale under paragraph (b)(2) of this section. The place of sale shall be within the county where the property is situated. However, if the appropriate TTB officer believes a substantially better price may be obtained, the sale may be held outside such county.
</P>
<P>(4) <I>Rejection of bids and adjournment of sale.</I> The officer conducting the sale reserves the right to reject any and all bids and withdraw the property from the sale. When it appears to the officer conducting the sale that an adjournment of the sale will best serve the interest of the United States, that officer may order the sale adjourned from time to time. If the sale is adjourned for more than 30 days in the aggregate, public notice of the sale must be given again in accordance with paragraph (b)(2) of this section.
</P>
<P>(5) <I>Liquidated damages.</I> The notice shall state whether, in the case of default in payment of the bid price, any amount deposited with the United States will be retained as liquidated damages. In case liquidated damages are provided, the amount thereof shall not exceed $200.
</P>
<P>(6) <I>Agreement to bid.</I> The appropriate TTB officer may, before giving notice of sale, solicit offers from prospective bidders and enter into agreements with such persons that they will bid at least a specified amount in case the property is offered for sale. In such cases, the appropriate TTB officer may also require such persons to make deposits to secure the performance of their agreements. Any such deposit, but not more than $200, shall be retained as liquidated damages in case such person fails to bid the specified amount and the property is not sold for as much as the amount specified in such agreement.
</P>
<P>(7) <I>Terms.</I> The property shall be offered for sale upon whichever of the following terms is fixed by the appropriate TTB officer in the public notice of sale:
</P>
<P>(i) Payments in full upon acceptance of the highest bid, or
</P>
<P>(ii) If the price of the property purchased by a successful bidder at the sale is more than $200, an initial payment of $200 or 20 percent of the purchase price, whichever is the greater, and payment of the balance within a specified period, not to exceed one month from the date of the sale.
</P>
<P>(8) <I>Method of sale.</I> The property may be sold either:
</P>
<P>(i) At public auction, at which open competitive bids shall be received, or
</P>
<P>(ii) At public sale under sealed bids.
</P>
<P>(9) <I>Sales under sealed bids.</I> The following rules, in addition to the other rules provided in this paragraph (b), shall be applicable to public sales under sealed bids.
</P>
<P>(i) <I>Invitation to bidders.</I> Bids shall be solicited through a public notice of sale.
</P>
<P>(ii) <I>Form for use by bidders.</I> A bid shall be submitted on a form which will be furnished by the appropriate TTB officer upon request. The form shall be completed in accordance with the instructions thereon.
</P>
<P>(iii) <I>Remittance with bid.</I> If the total bid is $200 or less, the full amount of the bid shall be submitted therewith. If the total bid is more than $200, 20 percent of such bid or $200, whichever is greater, shall be submitted therewith. Such remittance shall be by a certified, cashier's, or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or under the laws of any State, Territory, or possession of the United States, or by a U.S. postal, bank, express, or telegraph money order.
</P>
<P>(iv) <I>Time for receiving and opening bids.</I> Each bid shall be submitted in a securely sealed envelope. The bidder shall indicate in the upper left hand corner of the envelope the bidder's name and address and the time and place of sale as announced in the public notice of sale. A bid shall not be considered unless it is received by the officer conducting the sale prior to the opening of the bids. The bids will be opened at the time and place stated in the notice of sale, or at the time fixed in the announcement of the adjournment of the sale.
</P>
<P>(v) <I>Consideration of bids.</I> The officer conducting the sale shall have the right to waive any technical defects in a bid. After the opening, examination, and consideration of all bids, the officer conducting the sale shall announce the amount of the highest bid or bids and the name of the successful bidder or bidders, unless in the opinion of the officer a higher price can be obtained for the property than has been bid. In the event the highest bids are equal in amount (and unless in the opinion of the officer conducting the sale a higher price can be obtained for the property than has been bid), the officer shall determine the successful bidder by drawing lots. Any remittance submitted in connection with an unsuccessful bid shall be returned to the bidder at the conclusion of the sale.
</P>
<P>(vi) <I>Withdrawal of bid.</I> A bid may be withdrawn on written or telegraphic request received from the bidder prior to the time fixed for opening the bids. A technical defect in a bid confers no right on the bidder for the withdrawal of the bid after it has been opened.
</P>
<P>(10) <I>Payment of bid price.</I> All payments for property sold pursuant to this section shall be made by cash or by a certified cashier's or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or under the laws of any State, Territory, or possession of the United States, or by a U.S. postal, bank, express, or telegraph money order. If payment in full is required upon acceptance of the highest bid, the payment shall be made at such time. If payment in full is not made at such time, the officer conducting the sale may forthwith proceed again to sell the property in the manner provided in paragraph (b)(8) of this section. If deferred payment is permitted, the initial payment shall be made upon acceptance of the bid, and the balance shall be paid on or before the date fixed for payment thereof. Any remittance submitted with a successful sealed bid shall be applied toward the purchase price.
</P>
<P>(11) <I>Deed.</I> Upon payment in full of the purchase price, the appropriate TTB officer shall execute a quitclaim deed to the purchaser.
</P>
<P>(c) <I>Lease.</I> Until real estate is sold, the appropriate TTB officer may lease such property.
</P>
<P>(d) <I>Release to debtor.</I> In cases where real estate has or may become the property of the United States by conveyance or otherwise, in payment of or as security for a debt arising under the laws relating to internal revenue, and such debt shall have been paid, together with the interest thereon (at the rate of 1 percent per month), to the United States within 2 years from the date of the acquisition of such real estate, the appropriate TTB officer may release by deed or otherwise convey such real estate to the debtor from whom it was taken, or to the debtor's heirs or other legal representatives. If property is declared purchased by the United States under 26 U.S.C. 6335, then, for the purpose of this paragraph, the date of such declaration shall be deemed to be the date of acquisition of such real estate.
</P>
<P>(e) <I>Accounting.</I> The appropriate TTB officer shall, in accordance with 26 U.S.C. 7809, account for the proceeds of all sales or leases of the property and all expenses connected with the maintenance, sale, or lease of the property.
</P>
<P>(f) <I>Authority of appropriate TTB officer.</I> Notwithstanding the other paragraphs of this section, the appropriate TTB officer may, when such officer deems it advisable, take charge of, and assume responsibility for, any real estate to which this section is applicable. In such case, such officer will notify in writing the appropriate TTB officer from whom he or she is taking charge and assuming responsibility. Also, in any case where a single parcel of real estate is situated in an area in which more than one officer has jurisdiction, the appropriate TTB officer may designate in writing one officer who is to be in charge of, and responsible for, the entire property. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7506)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.184" NODE="27:2.0.1.4.7.4.203.65" TYPE="SECTION">
<HEAD>§ 70.184   Disposition of perishable goods.</HEAD>
<P>(a) <I>Appraisal of certain seized property.</I> If the appropriate TTB officer determines that any property seized by levy is liable to perish or become greatly reduced in price or value by keeping, or that such property cannot be kept without great expense, the appropriate TTB officer shall appraise the value of such property and return it to the owner if the owner complies with the conditions prescribed in paragraph (b) of this section or, if the owner does not comply with such conditions, dispose of the property in accordance with paragraph (c) of this section.
</P>
<P>(b) <I>Return to owner.</I> If the owner of the property can be readily found, the appropriate TTB officer shall give the owner written notice of the appropriate TTB officer's determination of the appraised value of the property. However, if the appropriate TTB officer determines that the circumstances require immediate action, the appropriate TTB officer may give the owner an oral notice of the determination of the appraised value of the property, which notice shall be confirmed in writing prior to sale. The property shall be returned to the owner if, within the time specified in the notice, the owner:
</P>
<P>(1) Pays to the appropriate TTB officer an amount equal to the appraised value, or
</P>
<P>(2) Gives an acceptable bond as prescribed by 26 U.S.C. 7101 and § 70.281 of this part. Such bond shall be in an amount not less than the appraised value of the property and shall be conditioned upon the payment of such amount at such time as the appropriate TTB officer determines to be appropriate in the circumstances.
</P>
<P>(c) <I>Immediate sale.</I> If the owner does not pay the amount of the appraised value of the seized property within the time specified in the notice, or furnish bond as provided in paragraph (b) of this section within such time, the appropriate TTB officer shall as soon as practicable make public sale of the property in accordance with the following terms and conditions:
</P>
<P>(1) <I>Notice of sale.</I> If the owner can readily be found, a notice shall be given to the owner. A notice of sale also shall be posted in two public places in the county which the property is to be sold. The notice shall specify the time and place of sale, the property to be sold, and the manner and conditions of sale. The appropriate TTB officer may give such other notice and in such other manner as the appropriate TTB officer deems advisable under the circumstances.
</P>
<P>(2) <I>Sale.</I> The property shall be sold at public auction to the higher bidder.
</P>
<P>(3) <I>Terms.</I> The purchase price shall be paid in full upon acceptance of the highest bid. The payment shall be made by cash, or by a certified, cashier's or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or under the laws of any State, Territory, or possession of the United States, or by a U.S. postal, bank, express, or telegraph money order.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6336)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.185" NODE="27:2.0.1.4.7.4.203.66" TYPE="SECTION">
<HEAD>§ 70.185   Certificate of sale; deed of real property.</HEAD>
<P>(a) <I>Certificate of sale.</I> In the case of property sold as provided in 26 U.S.C. 6335 (relating to sale of seized property), the appropriate TTB officer shall give to the purchaser a certificate of sale upon payment in full of the purchase price. A certificate of sale of real property shall set forth the real property purchased, for whose taxes the same was sold, the name of the purchaser, and the price paid therefor.
</P>
<P>(b) <I>Deed to real property.</I> In case of any real property sold as provided in 26 U.S.C. 6335 and not redeemed in the manner and within the time prescribed in 26 U.S.C. 6337, the appropriate TTB officer shall execute (in accordance with the laws of the State in which the real property is situated pertaining to sales of real property under execution) to the purchaser of such real property at the sale or his assigns, upon surrender of the certificate of sale, a deed of the real property so purchased, reciting the facts set forth in the certificate.
</P>
<P>(c) <I>Deed to real property purchased by the United States.</I> If real property is declared purchased by the United States at a sale pursuant to 26 U.S.C. 6335, the appropriate TTB officer shall at the proper time execute a deed therefor and shall, without delay, cause the deed to be duly recorded in the proper registry of deeds.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6338)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.186" NODE="27:2.0.1.4.7.4.203.67" TYPE="SECTION">
<HEAD>§ 70.186   Legal effect of certificate of sale of personal property and deed of real property.</HEAD>
<P>(a) <I>Certificate of sale of property other than real property.</I> In all cases of sale pursuant to 26 U.S.C. 6335 of property (other than real property), the certificate of such sale:
</P>
<P>(1) <I>As evidence.</I> Shall be prima facie evidence of the right of the officer to make such sale, and conclusive evidence of the regularity of the officer's proceedings in making the sale; and
</P>
<P>(2) <I>As conveyance.</I> Shall transfer to the purchaser all right, title, and interest of the party delinquent in and to the property sold; and
</P>
<P>(3) <I>As authority for transfer of corporate stock.</I> If such property consists of corporate stocks, shall be notice, when received, to any corporation, company, or association of such transfer, and shall be authority to such corporation, company, or association to record the transfer on its books and records in the same manner as if the stocks were transferred or assigned by the party holding the stock certificate, in lieu of any original or prior certificate, which shall be void, whether canceled or not; and
</P>
<P>(4) <I>As receipts.</I> If the subject of sale is securities or other evidence of debt, shall be a good and valid receipt to the person holding the certificate of sale as against any person holding or claiming to hold possession of such securities or other evidences of debt; and
</P>
<P>(5) <I>As authority for transfer of title to motor vehicle.</I> If such property consists of a motor vehicle, shall be notice, when received, to any public officer charged with the registration of title to motor vehicles, of such transfer and shall be authority to such officer to record the transfer on his books and records in the same manner as if the certificate of title to such motor vehicle were transferred or assigned by the party holding the certificate of title, in lieu of any original or prior certificate, which shall be null and void, whether canceled or not.
</P>
<P>(b) <I>Deed to real property.</I> In the case of the sale of real property pursuant to 26 U.S.C. 6335:
</P>
<P>(1) <I>Deed as evidence.</I> The deed of sale given pursuant to 26 U.S.C. 6338 shall be prima facie evidence of the facts therein stated; and
</P>
<P>(2) <I>Deed as conveyance of title.</I> If the proceedings of the appropriate TTB officer as set forth have been substantially in accordance with the provisions of law, such deed shall be considered and operate as a conveyance of all the right, title, and interest the party delinquent had in and to the real property thus sold at the time the lien of the United States attached thereto.
</P>
<P>(c) <I>Effect of junior encumbrances.</I> A certificate of sale of personal property given or a deed to real property executed pursuant to 26 U.S.C. 6338 discharges the property from all liens, encumbrances, and titles over which the lien of the United States, with respect to which the levy was made, has priority. For example, a mortgage on real property executed after a notice of a Federal tax lien has been filed is extinguished when the appropriate TTB officer executes a deed to the real property to a purchaser thereof at a sale pursuant to 26 U.S.C. 6335 following the seizure of the property by the United States. The proceeds of such a sale are distributed in accordance with priority of the liens, encumbrances, or titles. <I>See</I> 26 U.S.C. 6342(b) and 7426(a)(2) and §§ 70.170 and 70.207(a)(2) of this part with respect to surplus proceeds.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6339)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.187" NODE="27:2.0.1.4.7.4.203.68" TYPE="SECTION">
<HEAD>§ 70.187   Records of sale.</HEAD>
<P>(a) <I>Requirement.</I> Each appropriate TTB officer shall make a record of all sales under 26 U.S.C. 6335 of real property situated within his or her jurisdiction and of redemptions of such property. The records shall set forth the tax for which any such sale was made, the dates of seizures and sale, the name of the party assessed and all proceedings in making such sale, the amount of expenses, the names of the purchasers, and the date of the deed. In the case of redemption of the property, the records shall additionally set forth the date of such redemption and of the transfer of the certificate of sale, the amount of the redemption price, and the name of the party to whom such redemption price was paid. The original record shall be retained by the appropriate TTB officer.
</P>
<P>(b) <I>Copy as evidence.</I> A copy of such record, or any part thereof, certified by the appropriate TTB officer shall be evidence in any court of the truth of the facts therein stated.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6340)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.188" NODE="27:2.0.1.4.7.4.203.69" TYPE="SECTION">
<HEAD>§ 70.188   Expense of levy and sale.</HEAD>
<P>The appropriate TTB officer shall determine the expenses to be allowed in all cases of levy and sale. Such expenses shall include the expenses of protection and preservation of the property during the period subsequent to the levy, as well as the actual expenses incurred in connection with the sale thereof. In case real and personal property (or several tracts of real property) are sold in the aggregate, the appropriate TTB officer shall properly apportion the expenses to the real property (or to each tract).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6341)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="204" NODE="27:2.0.1.4.7.4.204" TYPE="SUBJGRP">
<HEAD>Judicial Proceedings</HEAD>

<HD2>Civil Action by the United States
</HD2>
<SOURCE>
<HED>Source:</HED><PSPACE>Sections 70.191 through 70.193 added by T.D. ATF-301, 55 FR 47633, Nov. 14, 1990.


</PSPACE></SOURCE>

<DIV8 N="§ 70.191" NODE="27:2.0.1.4.7.4.204.70" TYPE="SECTION">
<HEAD>§ 70.191   Authorization.</HEAD>
<P>(a) <I>In general.</I> A civil action for the collection or recovery of taxes, or of any fine, penalty, or forfeiture (with respect to the provisions of 26 U.S.C. enforced and administered by the Bureau) will be commenced when the appropriate TTB officer, directs that the action be commenced.
</P>
<P>(b) <I>Property held by banks.</I> The appropriate TTB officer shall not authorize or sanction any civil action for the collection or recovery of taxes, or of any fine, penalty, or forfeiture, from any deposits held in a foreign office of a bank engaged in the banking business in the United States or a possession of the United States unless the appropriate TTB officer believes:
</P>
<P>(1) That the taxpayer is within the jurisdiction of a U.S. court at the time the civil action is authorized or sanctioned and that the bank is in possession of (or obligated with respect to) deposits of the taxpayer in an office of the bank outside the United States or a possession of the United States; or
</P>
<P>(2) That the taxpayer is not within the jurisdiction of a U.S. court at the time the civil action is authorized or sanctioned, that the bank is in possession of (or obligated with respect to) deposits of the taxpayer in an office of the bank outside the United States or a possession of the United States, and that such deposits consist, in whole or in part, of funds transferred from the United States or a possession of the United States in order to hinder or delay the collection of a tax imposed by the provisions of 26 U.S.C. enforced and administered by the Bureau.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7401)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47633, Nov. 14, 1990, as amended by 66 FR 29027, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.192" NODE="27:2.0.1.4.7.4.204.71" TYPE="SECTION">
<HEAD>§ 70.192   Action to enforce lien or to subject property to payment of tax.</HEAD>
<P>(a) <I>Civil actions.</I> In any case where there has been a refusal or neglect to pay any tax (with respect to the provisions of 26 U.S.C. enforced and administered by the Bureau) or to discharge any liability in respect thereof, whether or not levy has been made, the Attorney General or designated delegate at the request of the appropriate TTB officer, may direct a civil action to be filed in any court of the United States to enforce the lien of the United States under the Internal Revenue Code with respect to such tax or liability or to subject any property, of whatever nature, of the delinquent, or in which the delinquent has any right, title or interest, to the payment of such tax or liability. In any such proceeding, at the instance of the United States, the court may appoint a receiver to enforce the lien, or, upon certification by the appropriate TTB officer during the pendency of such proceedings that it is in the public interest, may appoint a receiver with all the powers of a receiver in equity. 
</P>
<P>(b) <I>Bid by the United States.</I> If property is sold to satisfy a first lien held by the United States, the United States may bid at the sale a sum which does not exceed the amount of its lien and the expenses of the sale. See also 31 U.S.C. 3715.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7403)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47633, Nov. 14, 1990, as amended by 66 FR 29027, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.193" NODE="27:2.0.1.4.7.4.204.72" TYPE="SECTION">
<HEAD>§ 70.193   Disposition of judgments and moneys recovered.</HEAD>
<P>All judgments and moneys recovered or received for taxes, costs, forfeitures, and penalties (with respect to the provisions of 26 U.S.C. enforced and administered by the Bureau) shall be paid to the Bureau as collections of taxes imposed under the provisions of 26 U.S.C. enforced and administered by the Bureau.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7406)
</SECAUTH>
<HD2>Proceedings by Taxpayers and Third Parties
</HD2>
</DIV8>

<SOURCE>
<HED>Source:</HED><PSPACE>Sections 70.202 through 70.213 added by T.D. ATF-301, 55 FR 47634, Nov. 14, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 70.202" NODE="27:2.0.1.4.7.4.204.73" TYPE="SECTION">
<HEAD>§ 70.202   Intervention.</HEAD>
<P>If the United States is not a party to a civil action or suit, the United States may intervene in such action or suit to assert any lien arising under provisions of 26 U.S.C. enforced and administered by the Bureau on the property which is the subject of such action or suit. The provisions of 28 U.S.C. 2410 (except subsection (b)) and of 28 U.S.C. 1444 shall apply in any case in which the United States intervenes as if the United States had originally been named a defendant in such action or suit. If the application of the United States to intervene is denied, the adjudication in such civil action or suit shall have no effect upon such lien.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7424)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.203" NODE="27:2.0.1.4.7.4.204.74" TYPE="SECTION">
<HEAD>§ 70.203   Discharge of liens; scope and application; judicial proceedings.</HEAD>
<P>(a) <I>In general.</I> A tax lien of the United States, or a title derived from the enforcement of a tax lien of the United States, may be discharged or divested under local law only in the manner prescribed in 28 U.S.C. 2410 or in the manner prescribed in 26 U.S.C. 7425. Title 26 U.S.C. 7425(a) contains provisions relating to the discharge of a lien when the United States is not joined as a party in the judicial proceedings described in subsection (a) of 28 U.S.C. 2410. These judicial proceedings are plenary in nature and proceed on formal pleadings. Title 26 U.S.C. 7425(b) contains provisions relating to the discharge of a lien or a title derived from the enforcement of a lien in the event of a nonjudicial sale with respect to the property involved. Title 26 U.S.C. 7425(c) contains special rules relating to the notice of sale requirements contained in 26 U.S.C. 7425(b).
</P>
<P>(b) <I>Judicial proceedings</I>—(1) <I>In general.</I> Title 26 U.S.C. 7425(a) provides rules, where the United States is not joined as a party, to determine the effect of a judgment in any civil action or suit described in subsection (a) of 28 U.S.C. 2410 (relating to joinder of the United States in certain proceedings), or a judicial sale pursuant to such a judgment, with respect to property on which the United States has or claims a lien under the provisions of 26 U.S.C. If the United States is improperly named as a party to a judicial proceeding, the effect is the same as if the United States were not joined.
</P>
<P>(2) <I>Notice of lien filed when the proceeding is commenced.</I> Where the United States is not properly joined as a party in the court proceeding and a notice of lien has been filed in accordance with 26 U.S.C. 6323(f) or (g) in the place provided by law for such filing at the time the action or suit is commenced, a judgment or judicial sale pursuant to such a judgment shall be made subject to and without disturbing the lien of the United States.
</P>
<P>(3) <I>Notice of lien not filed when the proceeding is commenced.</I> Where the United States is not joined as a party in the court proceeding and either a notice of lien has not been filed in accordance with 26 U.S.C. 6323(f) or (g) in the place provided by law for such filing at the time the action or suit is commenced, or the law makes no provision for that filing, a judgment or judicial sale pursuant to such a judgment shall have the same effect with respect to the discharge or divestment of the lien of the United States as may be provided with respect to these matters by the local law of the place where the property is situated.
</P>
<P>(4) <I>Proceeds of a judicial sale.</I> If a judicial sale of property pursuant to a judgment in any civil action or suit to which the United States is not a party discharges a lien of the United States arising under the provisions of 26 U.S.C., the United States may claim the proceeds of the sale (exclusive of costs) prior to the time that distribution of the proceeds is ordered. The claim of the United States in such a case is treated as having the same priority with respect to the proceeds as the lien had with respect to the property which was discharged from the lien by the judicial sale.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7425(a))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.204" NODE="27:2.0.1.4.7.4.204.75" TYPE="SECTION">
<HEAD>§ 70.204   Discharge of liens; nonjudicial sales.</HEAD>
<P>(a) <I>In general.</I> Title 26 U.S.C. 7425(b) contains provisions with respect to the effect on the interest of the United States in property in which the United States has or claims a lien, or a title derived from the enforcement of a lien, of a sale made pursuant to:
</P>
<P>(1) An instrument creating a lien on the property sold.
</P>
<P>(2) A confession of judgment on the obligation secured by an instrument creating a lien on the property sold, or
</P>
<P>(3) A statutory lien on the property sold.
</P>
<P>For purposes of this section, such a sale is referred to as a “nonjudicial sale.” The term “nonjudicial sale” includes, but is not limited to, the divestment of the taxpayer's interest in property which occurs by operation of law, by public or private sale, by forfeiture, or by termination under provisions contained in a contract for a deed or a conditional sales contract. Under 26 U.S.C. 7425(b)(1), if a notice of lien is filed in accordance with 26 U.S.C. 6323(f) or (g), or the title derived from the enforcement of a lien is recorded as provided by local law, more than 30 days before the date of sale and the appropriate TTB officer is not given notice of the sale (in the manner prescribed in § 70.205 of this part), the sale shall be made subject to and without disturbing the lien or title of the United States. Under 26 U.S.C. 7425(b)(2)(C), in any case in which notice of the sale is given to the appropriate TTB officer not less than 25 days prior to the date of sale (in the manner prescribed in 26 U.S.C. 7425(c)(1)), the sale shall have the same effect with respect to the discharge or divestment of the lien or title as may be provided by local law with respect to other junior liens or other titles derived from the enforcement of junior liens. A nonjudicial sale pursuant to a lien which is junior to a tax lien does not divest the tax lien, even though notice of the nonjudicial sale is given to the appropriate TTB officer. However, under the provisions of 26 U.S.C. 6325(b) and § 70.150 of this part, designated officers may discharge the property from a tax lien, including a tax lien which is senior to another lien upon the property.
</P>
<P>(b) <I>Date of sale.</I> In the case of a nonjudicial sale subject to the provisions of 26 U.S.C. 7425(b), in order to compute any period of time determined with reference to the date of sale, the date of sale shall be determined in accordance with the following rules:
</P>
<P>(1) In the case of divestment of junior liens on property resulting directly from a public sale, the date of sale is deemed to be the date the public sale is held, regardless of the date under local law on which junior liens on the property are divested or the title to the property is transferred.
</P>
<P>(2) In the case of divestment of junior liens on property resulting directly from a private sale, the date of sale is deemed to be the date title to the property is transferred, regardless of the date junior liens on the property are divested under local law, and
</P>
<P>(3) In the case of divestment of junior liens on property not resulting directly from a public or private sale, the date of sale is deemed to be the date on which junior liens on the property are divested under local law. For provisions relating to the right of redemption of the United States, see 26 U.S.C. 7425(d) and § 70.206 of this part.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7425(b))


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.205" NODE="27:2.0.1.4.7.4.204.76" TYPE="SECTION">
<HEAD>§ 70.205   Discharge of liens; special rules.</HEAD>
<P>(a) <I>Notice of sale requirements</I>—(1) <I>In general.</I> Except in the case of the sale of perishable goods described in paragraph (c) of this section, a notice (as described in paragraph (d) of this section) of a nonjudicial sale shall be given, in writing by registered or certified mail or by personal service, not less than 25 days prior to the date of sale (determined under the provisions of § 70.204(b) of this part), to the appropriate TTB officer. The provisions of 26 U.S.C. 7502 (relating to timely mailing treated as timely filing) and 7503 (relating to time for performance of acts where the last day falls on Saturday, Sunday, or legal holiday) apply in the case of notices required to be made under this paragraph.
</P>
<P>(2) <I>Postponement of scheduled sale</I>—(i) <I>Where notice of sale is given.</I> In the event that notice of a sale is given in accordance with paragraph (a)(1) of this section, with respect to a scheduled sale which is postponed to a later time or date, the seller of the property is required to give notice of the postponement to the appropriate TTB officer, in the same manner as is required under local law with respect to other secured creditors. For example, assume that in State M local law requires that in the event of a postponement of a scheduled foreclosure sale of real property, an oral announcement of the postponement at the place and time of the scheduled sale constitutes sufficient notice to secured creditors of the postponement. Accordingly, if at the place and time of a scheduled sale in State M an oral announcement of the postponement is made, the Bureau is considered to have notice of the postponement for the purpose of this paragraph (a)(2).
</P>
<P>(ii) <I>Where notice of sale is not given.</I> In the event that:
</P>
<P>(A) Notice of a nonjudicial sale would not be required under paragraph (a)(1) of this section, if the sale were held on the originally scheduled date,
</P>
<P>(B) Because of a postponement of the scheduled sale, more than 30 days elapse between the originally scheduled date of the sale and the date of the sale, and
</P>
<P>(C) A notice of lien with respect to the property to be sold is filed more than 30 days before the date of the sale, notice of the sale is required to be given to the appropriate TTB officer in accordance with the provisions of paragraph (a)(1) of this section. In any case in which notice of sale is required to be given with respect to a scheduled sale, and notice of the sale is not given, any postponement of the scheduled sale does not affect the rights of the United States under 26 U.S.C. 7425(b).
</P>
<P>(b) <I>Consent to sale</I>—(1) <I>In general.</I> Notwithstanding the notice of sale provisions of paragraph (a) of this section a nonjudicial sale of property shall discharge or divest the property of the lien or title of the United States if the appropriate TTB officer consents to the sale of the property free of the lien or title. Pursuant to 26 U.S.C. 7425(c)(2), where adequate protection is afforded the lien or title of the United States, the appropriate TTB officer may, in that officer's discretion, consent with respect to the sale of property in appropriate cases. Such consent shall be effective only if given in writing and shall be subject to such limitations and conditions as the appropriate TTB officer may require. However, the appropriate TTB officer may not consent to a sale of property under this section after the date of sale, as determined under § 70.204(b) of this part. For provisions relating to releasing a lien or discharging property subject to a tax lien, <I>see</I> 26 U.S.C. 6325 and § 70.150 of this part.
</P>
<P>(2) <I>Application for consent.</I> Any person desiring the appropriate TTB officer's consent to sell property free of a tax lien or a title derived from the enforcement of a tax lien of the United States in the property shall submit to the appropriate TTB officer a written application, in triplicate, declaring that it is made under penalties of perjury, and requesting that such consent be given. The application shall contain the information required in the case of a notice of sale, as set forth in paragraph (d)(1) of this section, and, in addition, shall contain a statement of the reasons why the consent is desired.
</P>
<P>(c) <I>Sale of perishable goods</I>—(1) <I>In general.</I> A notice (as described in paragraph (d) of this section) of a nonjudicial sale of perishable goods (as defined in paragraph (c)(2) of this section) shall be given in writing, by registered or certified mail or delivered by personal service, at any time before the sale, to the appropriate TTB officer. If a notice of a nonjudicial sale is timely given in the manner described in this paragraph the nonjudicial sale shall discharge or divest the tax lien, or a title derived from the enforcement of a tax lien, of the United States in the property. The provisions of 26 U.S.C. 7502 (relating to timely mailing treated as timely filing) and 7503 (relating to time for performance of acts where the last days falls on Saturday, Sunday, or a legal holiday) apply in the case of notices required to be made under this paragraph. The seller of the perishable goods shall hold the proceeds (exclusive of costs) of the sale as a fund, for not less than 30 days after the date of the sale, subject to the liens and claims of the United States, in the same manner and with the same priority as the liens and claims of the United States had with respect to the property sold. If the seller fails to hold the proceeds of the sale in accordance with the provisions of this paragraph and if the appropriate TTB officer asserts a claim to the proceeds within 30 days after the date of sale, the seller shall be personally liable to the United States for an amount equal to the value of the interest of the United States in the fund. However, even if the proceeds of the sale are not so held by the seller, but all the other provisions of this paragraph are satisfied, the buyer of the property at the sale takes the property free of the liens and claims of the United States. In the event of a postponement of the scheduled sale of perishable goods, the seller is not required to notify the appropriate TTB officer of the postponement. For provisions relating to releasing a lien or discharging property subject to a tax lien, see 26 U.S.C. 6325 and § 70.150 of this part.
</P>
<P>(2) <I>Definition of perishable goods.</I> For the purpose of this paragraph, the term “perishable goods” means any tangible personal property which, in the reasonable view of the person selling the property, is liable to perish or become greatly reduced in price or value by keeping, or cannot be kept without great expense.
</P>
<P>(d) <I>Forfeiture of land sales contract.</I> For purposes of paragraph (a) of this section, a nonjudicial sale of property includes any forfeiture of a land sales contract.
</P>
<P>(e) <I>Content of notice of sale</I>—(1) <I>In general.</I> With respect to a notice of sale described in paragraph (a) or (c) of this section, the notice will be considered adequate if it contains the information described in paragraph (d)(1) (i), (ii), (iii), and (iv) of this section.
</P>
<P>(i) The name and address of the person submitting the notice of sale;
</P>
<P>(ii) A copy of each Notice of Federal Tax Lien (TTB Form 5651.2) affecting the property to be sold, or the following information as shown on each such Notice of Federal Tax Lien:
</P>
<P>(A) The initiating office named thereon,
</P>
<P>(B) The name and address of the taxpayer, and
</P>
<P>(C) The date and place of filing of the notice;
</P>
<P>(iii) With respect to the property to be sold the following information:
</P>
<P>(A) A detailed description, including location of the property affected by the notice (in the case of real property, the street address, city, and State and the legal description contained in the title or deed to the property and, if available, a copy of the abstract of title),
</P>
<P>(B) The date, time, place, and terms of proposed sale of the property, and
</P>
<P>(C) In case of a sale of perishable property described in paragraph (c) of this section, a statement of the reasons why the property is believed to be perishable; and
</P>
<P>(iv) The approximate amount of the principal obligation, including interest, secured by the lien sought to be enforced and a description of the other expenses (such as legal expenses, selling costs, etc.) which may be charged against the sale proceeds.
</P>
<P>(2) <I>Inadequate notice.</I> Except as otherwise provided in this subparagraph, a notice of sale described in paragraph (a) of this section which does not contain the information described in paragraph (d)(1) of this section shall be considered inadequate by the appropriate TTB officer. If the appropriate TTB officer determines that the notice is inadequate, that officer will give written notification of the items of information which are inadequate to the person who submitted the notice. A notice of sale which does not contain the name and address of the person submitting such notice shall be considered to be inadequate for all purposes without notification of any specific inadequacy. In any case where a notice of sale, does not contain the information required under paragraph (d)(1)(ii) of this section with respect to a Notice of Federal Tax Lien, the appropriate TTB officer may give written notification of such omission without specification of any other inadequacy and such notice of sale shall be considered inadequate for all purposes. In the event the appropriate TTB officer gives notification that the notice of sale is inadequate, a notice complying with the provisions of this section (including the requirement that the notice be given not less than 25 days prior to the sale in the case of a notice described in paragraph (a) of this section) must be given. However, in accordance with the provisions of paragraph (b)(1) of this section, in such a case the appropriate TTB officer may, in that officer's discretion, consent to the sale of the property free of the lien or title of the United States even though notice of the sale is given less than 25 days prior to the sale. In any case where the person who submitted a timely notice which indicates the person's name and address does not receive, more than 5 days prior to the date of the sale, written notification from the appropriate TTB officer that the notice is inadequate, the notice shall be considered adequate for purposes of this section.
</P>
<P>(3) <I>Acknowledgment of notice.</I> If a notice of sale described in paragraph (a) or (c) of this section is submitted in duplicate to the appropriate TTB officer with a written request that receipt of the notice be acknowledged and returned to the person giving the notice, this request will be honored by the appropriate TTB officer. The acknowledgment by the appropriate TTB officer will indicate the date and time of the receipt of the notice.
</P>
<P>(4) <I>Disclosure of adequacy of notice.</I> The appropriate TTB officer is authorized to disclose, to any person who has a proper interest, whether an adequate notice of sale was given under paragraph (d)(1) of tis section insofar as disclosure is authorized under 26 U.S.C. 6103. Any person desiring this information should submit to the appropriate TTB officer a written request which clearly describes the property sold or to be sold, identifies the applicable notice of lien, gives the reasons for requesting the information, and states the name and address of the person making the request.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7425(c))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47634, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.206" NODE="27:2.0.1.4.7.4.204.77" TYPE="SECTION">
<HEAD>§ 70.206   Discharge of liens; redemption by United States.</HEAD>
<P>(a) <I>Right to redeem</I>—(1) <I>In general.</I> In the case of a nonjudicial sale of real property to satisfy a lien prior to the tax lien or a title derived from the enforcement of a tax lien, the appropriate TTB officer may redeem the property within the redemption period (as described in paragraph (a)(2) of this section). The right of redemption of the United States exists under 26 U.S.C. 7425(d) even though a consent to the sale has been made under 26 U.S.C. 7425(c)(2) and § 70.205(b) of this part. For purposes of this section, the term “nonjudicial sale” shall have the same meaning as used in § 70.204(a) of this part.
</P>
<P>(2) <I>Redemption period.</I> For purposes of this section, the redemption period shall be:
</P>
<P>(i) The period beginning with the date of the sale (as determined under § 70.204(b)) and ending with the 120th day after such date, or
</P>
<P>(ii) The period for redemption of real property allowable with respect to other secured creditors, under the local law of the place where the real property is located, whichever expires later.
</P>
<FP>Which ever period is applicable, 26 U.S.C. 7425 and this section shall govern the amount to be paid and the procedure to be followed.
</FP>
<P>(3) <I>Limitations.</I> In the event a sale does not ultimately discharge the property from tax lien (whether by reason of local law or the provisions of 26 U.S.C. 7425(b)), the provisions of this section do not apply because the tax lien will continue to attach to the property after the sale. In a case in which the Bureau is not entitled to a notice of sale under 26 U.S.C. 7425(b) and § 70.205 of this part, the United States does not have a right of redemption under 26 U.S.C. 7425(d). However, in such a case, if a tax lien has attached to the property at the time of sale, the United States has the same right of redemption, if any, which is afforded similar creditors under the local law of the place in which the property is situated.
</P>
<P>(b) <I>Amount to be paid</I>—(1) <I>In general.</I> In any case in which an appropriate TTB officer exercises the right to redeem real property under 26 U.S.C. 7425(d), the amount to be paid is the sum of the following amounts:
</P>
<P>(i) The actual amount paid for the property (as determined under paragraph (b)(2) of this section) being redeemed (which, in the case of a purchaser who is the holder of the lien being foreclosed, shall include the amount of the obligation secured by such lien to the extent legally satisfied by reason of the sale);
</P>
<P>(ii) Interest on the amount paid (described in paragraph (b)(1)(i) of this section) at the sale by the purchaser of the real property computed at the rate of 6 percent per annum for the period from the date of the sale (as determined under § 70.204(b) of this part) to the date of redemption;
</P>
<P>(iii) The amount, if any, equal to the excess of the expenses necessarily incurred to maintain such property (as determined under paragraph (b)(3) of this section) by the purchaser (and the purchaser's successor in interest, if any) over the income from such property realized by the purchaser (and the purchaser's successor in interest, if any) plus a reasonable rental value of such property (to the extent the property is used by or with the consent of the purchaser or the purchaser's successor in interest or is rented at less than its reasonable rental value); and
</P>
<P>(iv) The amounts, if any, of a payment made by the purchaser or the purchaser's successor in interest after the foreclosure sale to a holder of a senior lien (to the extent provided under paragraph (b)(4) of this section).
</P>
<P>(2) <I>Actual amount paid.</I> (i) The actual amount paid for property by a purchaser, other than holder of the lien being foreclosed, is the amount paid by the purchaser at the sale. For purposes of this paragraph, the amount paid by the purchaser at the sale includes deferred payments upon the bid price. The actual amount paid does not include costs and expenses incurred prior to the foreclosure sale by the purchaser except to the extent such expenses are included in the amount bid and paid for the property. For example, the actual amount paid does not normally include the expenses of the purchaser such as title searches, professional fees, or interest on debt incurred to obtain funds to purchase the property.
</P>
<P>(ii) In the case of a purchaser who is the holder of the lien being foreclosed, the actual amount paid is the sum of:
</P>
<P>(A) The amount of the obligation secured by such lien to the extent legally satisfied by reason of the sale and
</P>
<P>(B) Any additional amount bid and paid at the sale.
</P>
<FP>For purposes of this section, a purchaser who acquires title as a result of a nonjudicial foreclosure sale is treated as the holder of the lien being foreclosed if a lien (or any interest reserved, created, or conveyed as security for the payment of a debt or fulfillment of other obligation) held by the purchaser is partially or fully satisfied by reason of the foreclosure sale. For example, a person whose title is derived from a tax deed issued under local law shall be treated as a purchaser who is the holder of the lien foreclosed in a case where a tax certificate, evidencing a lien on the property arising from the payment of property taxes, ripens into title. The amount paid by a purchaser at the sale includes deferred payments upon any portion of the bid price which is in excess of the amount of the lien being foreclosed. The actual amount paid does not include costs and expenses incurred prior to the foreclosure sale by the purchaser except to the extent such expenses are included in the amount of the lien being foreclosed which is legally satisfied by reason of the sale or in the amount bid and paid at the sale. Where the lien being foreclosed attaches to other property not subject to the foreclosure sale, the amount legally satisfied by reason of the sale does not include the amount of such lien that attaches to the other property. However, for purposes of the preceding sentences, the amount of the lien that attaches to the other property shall be considered to be equal to the amount by which the value of the other property exceeds the amount of any other senior lien on that property. Where, after the sale, the holder of the lien being foreclosed has the right to the unpaid balance of the amount due the holder, the amount legally satisfied by reason of the sale does not include the amount of such lien to the extent a deficiency judgment may be obtained therefor. However, for purposes of the preceding sentence, an amount, with respect to which the holder of the lien being foreclosed would otherwise have a right to a deficiency judgment, shall be considered to be legally satisfied by reason of the foreclosure sale to the extent that the holder has waived the holder's right to a deficiency judgment prior to the foreclosure sale. For this purpose, the waiver must be in writing and legally binding upon the foreclosing lienholder as of the time the sale is concluded. If, prior to the foreclosure, payments have been made by the foreclosing lienholder to a holder of a superior lien, the payments are included in the actual amount paid to the extent they give rise to an interest which is legally satisfied by reason of the foreclosure sale.
</FP>
<P>(3) <I>Excess expenses incurred by purchaser.</I> (i) Expenses necessarily incurred in connection with the property after the foreclosure sale and before redemption by the United States are taken into account in determining if there are excess expenses payable under paragraph (b)(1)(iii) of this section. Expenses incurred by the purchaser prior to the foreclosure sale are not considered under paragraph (b)(3) of this section. (See paragraph (b)(2)(ii) of this section for circumstances under which such expenses may be included in the amount to be paid.) Expenses necessarily incurred in connection with the property include, for example, rental agent commissions, repair and maintenance expenses, utilities expenses, legal fees incurred after the foreclosure sale and prior to redemption in defending the title acquired through the foreclosure sale, and a proportionate amount of casualty insurance premiums and ad valorem taxes. Improvements made to the property are not considered as an expense unless the amounts incurred for such improvements are necessarily incurred to maintain the property.
</P>
<P>(ii) At any time prior to the expiration of the redemption period applicable under paragraph (a)(2) of this section, the appropriate TTB officer may, by certified or registered mail or hand delivery, request a written itemized statement of the amount claimed by the purchaser or the purchaser's successor in interest to be payable under paragraph (b)(1)(iii) of this section. Unless the purchaser or the purchaser's successor in interest furnishes the written itemized statement within 15 days after the request is made by the appropriate TTB officer, it shall be presumed that no amount is payable for expenses in excess of income and the Bureau shall tender only the amount otherwise payable under paragraph (b)(1) of this section. If a purchaser or the purchaser's successor in interest has failed to furnish the written itemized statement within 15 days after the request therefor is made by the appropriate TTB officer, or there is a disagreement as to the amount properly payable under paragraph (b)(1)(iii) of this section, a payment for excess expenses shall be made after the redemption within a reasonable time following the verification by the appropriate TTB officer of a written itemized statement submitted by the purchaser or the purchaser's successor in interest or the resolution of the disagreement as to the amount properly payable for excess expenses.
</P>
<P>(4) <I>Payments made by purchaser or the purchaser's successor in interest to a senior lienor.</I> (i) The amount to be paid upon a redemption by the United States shall include the amount of a payment made by the purchaser or the purchaser's successor in interest to a holder of a senior lien to the extent a request for the reimbursement thereof (made in accordance with paragraph (b)(4)(ii) of this section) is approved as provided under paragraph (b)(4)(iii) of this section. This paragraph applies only to a payment made after the foreclosure sale and before the redemption to a holder of a lien that was, immediately prior to the foreclosure sale, superior to the lien foreclosed. A payment of principal or interest to a senior lienor shall be taken into account. Generally, the portion, if any, of a payment which is to be held in escrow for the payment of an expense, such as hazard insurance or real property taxes, is not considered under this paragraph. However, a payment by the escrow agent of a real property tax or special assessment lien, which was senior to the lien foreclosed, shall be considered to be a payment made by the purchaser or the purchaser's successor in interest for purposes of this paragraph. With respect to real property taxes assessed after the foreclosure sale, see paragraph (b)(3)(i) of this section, relating to excess expenses incurred by the purchaser.
</P>
<P>(ii) Before the expiration of the redemption period applicable under paragraph (a)(2) of this section, the appropriate TTB officer shall, in any case where a redemption is contemplated, send notice to the purchaser (or the purchaser's successor in interest of record) by certified or registered mail or hand delivery of the right under paragraph (b)(4) of this section to request reimbursement (payable in the event the right to redeem under 26 U.S.C. 7425(d) is exercised) for a payment made to a senior lienor. No later than 15 days after the notice from the appropriate TTB officer is sent, the request for reimbursement shall be mailed or delivered to the office specified in such notice and shall consist of:
</P>
<P>(A) A written itemized statement, signed by the claimant, of the amount claimed with respect to a payment made to a senior lienor, together with the supporting evidence requested in the notice from the appropriate TTB officer, and
</P>
<P>(B) A waiver or other document that will be effective upon redemption by the United States to discharge the property from, or transfer to the United States, any interest in or lien on the property that may arise under local law with respect to the payment made to a senior lienor. 
</P>
<FP>Upon a showing of reasonable cause, an appropriate TTB officer may, in that official's discretion and at any time before the expiration of the applicable period for redemption, grant an extension for a reasonable period of time to submit, amend, or supplement a request for reimbursement. Unless a request for reimbursement is timely submitted (determined with regard to any extension of time granted), no amount shall be payable to the purchaser or the purchaser's successor in interest on account of a payment made to a senior lienor if the right to redeem under 26 U.S.C. 7425(d) is exercised. A waiver or other document submitted pursuant to paragraph (b)(4)(ii) of this section shall be treated as effective only to the extent of the amount included in the redemption price under this paragraph. If the right to redeem is not exercised or a request for reimbursement is withdrawn, the appropriate TTB officer shall, by certified or registered mail or hand delivery, return to the purchaser or the purchaser's successor any waiver or other document submitted pursuant to paragraph (b)(4)(ii) of this section as soon as is practicable.
</FP>
<P>(iii) A request for reimbursement submitted in accordance with paragraph (b)(4)(ii) of this section shall be considered to be approved for the total amount claimed by the purchaser, and payable in the event the right to redeem is exercised, unless the appropriate TTB officer sends notice to the claimant, by certified or registered mail or hand delivery, of the denial of the amount claimed within 30 days after receipt of the request of 15 days before expiration of the applicable period for redemption, whichever is later. The notification of denial shall state the grounds for denial. If such notice of denial is given, the request for reimbursement for a payment made to a senior lienor shall be treated as having been withdrawn by the purchaser or the purchaser's successor and the Bureau shall tender only the amount otherwise payable under paragraph (b)(1) of this section. If a request for reimbursement is treated as having been withdrawn under the preceding sentence, payment for amounts described in paragraph (b)(4) of this section may, in the discretion of the appropriate TTB officer, be made after the redemption upon the resolution of the disagreement as to the amount properly payable under paragraph (b)(1)(iv) of this section.
</P>
<P>(c) <I>Certificate of redemption</I>—(1) <I>In general.</I> If an appropriate TTB officer exercises the right of redemption of the United States described in paragraph (a) of this section, the appropriate TTB officer shall apply to the officer designated by local law, if any, for the documents necessary to evidence the fact of redemption and to record title to the redeemed property in the name of the United States. If no such officer has been designated by local law, or if the officer designated by local law fails to issue the necessary documents, the appropriate TTB officer is authorized to issue a certificate of redemption for the property redeemed by the United States. 
</P>
<P>(2) <I>Filing.</I> The appropriate TTB officer shall, without delay, cause either the documents issued by the local officer or the certificate of redemption executed by the appropriate TTB officer to be filed with the local office where certificates of redemption are generally filed. If a certificate of redemption is issued by the appropriate TTB officer and if the State in which the real property redeemed by the United States is situated has no office with which certificates of redemption may be filed, the appropriate TTB officer shall file the certificate of redemption in the office of the clerk of the United States district court for the judicial district in which the redeemed property is situated.
</P>
<P>(3) <I>Effect of certificate of redemption.</I> A certificate of redemption executed pursuant to paragraph (c)(1) of this section, shall constitute prima facie evidence of the regularity of the redemption. When a certificate of redemption is recorded, it shall transfer to the United States all the rights, title, and interest in and to the redeemed property acquired by the person, from whom the appropriate TTB officer redeemed the property, by virtue of the sale of the property. Therefore, if under local law the purchaser takes title free of liens junior to the lien of the foreclosing lienholder, the United States takes the title free of such junior liens upon redemption of the property. If a certificate of redemption has been erroneously prepared and filed because the redemption was not effective, the appropriate TTB officer shall issue a document revoking such certificate of redemption and such document shall be conclusively binding upon the United States against a purchaser of the property or a holder of a lien upon the property.
</P>
<P>(4) Application for release of right of redemption. Upon application of a party with a proper interest in the real property sold in a nonjudicial sale described in 26 U.S.C. 7425(b) and § 70.204 of this part, which real property is subject to the right of redemption of the United States described in this section, the appropriate TTB officer may, in that officer's discretion, release the right of redemption with respect to the property. The application for the release must be submitted in writing to an appropriate TTB officer and must contain such information as the appropriate TTB officer may require. If the appropriate TTB officer determines that the right of redemption of the United States is without value, no amount shall be required to be paid with respect to the release of the right of redemption. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7425(d))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47634, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.207" NODE="27:2.0.1.4.7.4.204.78" TYPE="SECTION">
<HEAD>§ 70.207   Civil actions by persons other than taxpayers.</HEAD>
<P>(a) <I>Actions permitted</I>—(1) <I>Wrongful levy.</I> If a levy has been made on property, or property has been sold pursuant to a levy, any person (other than the person against whom is assessed the tax out of which such levy arose) may bring a civil action against the United States in a district court of the United States based upon such person's claim:
</P>
<P>(i) That the person has an interest in, or a lien on, such property which is senior to the interest of the United States; and
</P>
<P>(ii) That such property was wrongfully levied upon.
</P>
<FP>No action is permitted under 26 U.S.C. 7426(a)(1) unless there has been a levy upon the property claimed.
</FP>
<P>(2) <I>Surplus proceeds.</I> If property has been sold pursuant to levy, any person (other than the person against whom is assessed the tax out of which such levy arose) may bring a civil action against the United States in a district court of the United States based upon the claim that the person:
</P>
<P>(i) Has an interest in or lien on such property junior to that of the United States; and
</P>
<P>(ii) Is entitled to the surplus proceeds of such sale.
</P>
<P>(3) <I>Substituted sale proceeds.</I> Any person who claims to be legally entitled to all or any part of the amount which is held as a fund from the sale of property pursuant to an agreement described in 26 U.S.C. 6325(b)(3) may bring a civil action against the United States in a district court of the United States to obtain the relief provided by 26 U.S.C. 7426(b)(4). It is not necessary that the claimant be a party to the agreement which provides for the substitution of the sale proceeds for the property subject to the lien.
</P>
<P>(b) <I>Adjudication</I>—(1) <I>Wrongful levy.</I> If the court determines that property has been wrongfully levied upon, the court may:
</P>
<P>(i) Grant an injunction to prohibit the enforcement of such levy or to prohibit a sale of such property if such sale would irreparably injure rights in the property which are superior to the rights of the United States in such property; or
</P>
<P>(ii) Order the return of specific property if the United States is in possession of such property; or
</P>
<P>(iii) Grant a judgment for the amount of money levied upon, with interest thereon at the overpayment rate established under 26 U.S.C. 6621 from the date that the officer who made the levy receives the money wrongfully levied upon to the date of payment of such judgment, or
</P>
<P>(iv) Grant a judgment for an amount not exceeding the amount received by the United States from the sale of such property (which, in the case of property declared purchased by the United States at a sale, shall be the greater of the minimum amount determined pursuant to 26 U.S.C. 6335(e) or the amount received by the United States from the resale of such property), or the fair market value of such property immediately before the levy, with interest thereon at the overpayment rate established under 26 U.S.C. 6621 from the date of the sale of the property to the date of payment of such judgment.
</P>
<FP>For purposes of paragraph (b)(1) of this section, a levy is wrongful against a person (other than the taxpayer against whom the assessment giving rise to the levy is made), if the levy is upon property exempt from levy under 26 U.S.C. 6334, or the levy is upon property in which the taxpayer had no interest at the time the lien arose or thereafter, or the levy is upon property with respect to which such person is a purchaser against whom the lien is invalid under 26 U.S.C. 6323 or 6324(a)(2) or (b), or the levy or sale pursuant to levy will or does effectively destroy or otherwise irreparably injure such person's interest in the property which is senior to the Federal tax lien. A levy may be wrongful against a holder of a senior lien upon the taxpayer's property under certain circumstances although legal rights to enforce the holder's interest survive the levy procedure. For example, the levy may be wrongful against such a person if the property is an obligation which is collected pursuant to the levy rather than sold and nothing thereafter remains for the senior lienholder, or the property levied upon is of such a nature that when it is sold at a public sale the property subject to the senior lien is not available for the senior lienholder as a realistic source for the enforcement of the holder's interest. Some of the factors which should be taken into account in determining whether property remains or will remain a realistic source from which the senior lienholder may realize collection are: The nature of the property, the number of purchasers, the value of each unit sold or to be sold, whether, as a direct result of the distraint sale, the costs of realizing collection from the security have or will be so substantially increased as to render the security substantially valueless as a source of collection, and whether the property subject to the distraint sale constitutes substantially all of the property available as security for the payment of the indebtedness to the senior lienholder.
</FP>
<P>(2) <I>Surplus proceeds.</I> If the court determines that the interest or lien of any party to an action under 26 U.S.C. 7426 was transferred to the proceeds of a sale of the property, the court may grant a judgment in an amount equal to all or any part of the amount of the surplus proceeds of such sale. The term “surplus proceeds” means property remaining after application of the provisions of 26 U.S.C. 6342(a).
</P>
<P>(3) <I>Substituted sale proceeds.</I> If the court determines that a party has an interest in or lien on the amount held as a fund pursuant to an agreement described in 26 U.S.C. 6325(b)(3), the court may grant a judgment in an amount equal to all or any part of the amount of such fund.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7426)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.208" NODE="27:2.0.1.4.7.4.204.79" TYPE="SECTION">
<HEAD>§ 70.208   Review of jeopardy assessment or jeopardy levy procedures; information to taxpayer.</HEAD>
<P>Not later than 5 days after the day on which an assessment is made under 26 U.S.C. 6862 or when a levy is made less than 30 days after the notice and demand described in 26 U.S.C 6331(a), the officer who authorized the assessment or levy shall provide the taxpayer a written statement setting forth the information upon which that official relies in authorizing such assessment or levy.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7429(a)(1))


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.209" NODE="27:2.0.1.4.7.4.204.80" TYPE="SECTION">
<HEAD>§ 70.209   Review of jeopardy assessment or levy procedures; administrative review.</HEAD>
<P>(a) <I>Request for administrative review.</I> Any request for the review of a jeopardy assessment or levy provided for by 26 U.S.C. 7429(a)(2) shall be filed with the officer who authorized the assessment or levy, within 30 days after the statement described in § 70.208 of this part is given to the taxpayer. However, if no statement is given within the 5-day period described in § 70.208, any request for review of the jeopardy assessment shall be filed within 35 days after the date the assessment is made. Such request shall be in writing, shall state fully the reasons for the request, and shall be supported by such evidence as will enable the reviewing officer to make the redetermination described in 26 U.S.C. 7429(a)(3).
</P>
<P>(b) <I>Administrative review.</I> In determining whether the assessment or levy is reasonable and the amount assessed appropriate, the reviewing officer shall take into account not only information available at the time the assessment is made but also information which subsequently becomes available.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7429(a)(2))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.210" NODE="27:2.0.1.4.7.4.204.81" TYPE="SECTION">
<HEAD>§ 70.210   Review of jeopardy assessment or levy procedures; judicial action.</HEAD>
<P>(a) <I>Time for bringing judicial action.</I> An action for judicial review described in 26 U.S.C. 7429(b) may be instituted by the taxpayer during the period beginning on the earlier of:
</P>
<P>(1) The date of the reviewing officer notifies the taxpayer of the determination described in 26 U.S.C. 7429(a)(3); or
</P>
<P>(2) The 16th day after the request described in 26 U.S.C. 7429(a)(2) was made by the taxpayer; and ending on the 90th day thereafter.
</P>
<P>(b) Extension of the period for judicial review. The U.S. Government may not seek an extension of the 20-day period described in 26 U.S.C. 7429(b)(2), but it may join with the taxpayer in seeking such an extension.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7429)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.213" NODE="27:2.0.1.4.7.4.204.82" TYPE="SECTION">
<HEAD>§ 70.213   Repayments to officers or employees.</HEAD>
<P>The appropriate TTB officer is authorized to repay to any officer or employee of the Bureau the full amount of such sums of money as may be recovered against such officer or employee in any court for any taxes imposed under provisions of 26 U.S.C. enforced and administered by the Bureau collected by such officer or employee with the cost and expense of suit, and all damages and costs recovered against any officer or employee of the Bureau in any suit brought against such officer or employee by reason of anything done in the official performance of duties under the provisions of 26 U.S.C. enforced and administered by the Bureau.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7423)


</SECAUTH>
</DIV8>

</DIV7>


<DIV7 N="205" NODE="27:2.0.1.4.7.4.205" TYPE="SUBJGRP">
<HEAD>Limitations</HEAD>

<HD2>Limitations on Assessment and Collection


</HD2>

<DIV8 N="§ 70.221" NODE="27:2.0.1.4.7.4.205.83" TYPE="SECTION">
<HEAD>§ 70.221   Period of limitations upon assessment.</HEAD>
<P>(a) The amount of any tax imposed by the Internal Revenue Code (other than a tax collected by means of stamps) shall be assessed within 3 years after the return was filed. For rules applicable in cases where the return is filed prior to the due date thereof, see section 6501(b) of the Internal Revenue Code. In the case of taxes payable by stamps, assessment shall be made at any time after the tax becomes due and before the expiration of 3 years after the date on which any part of the tax was paid. For exceptions and additional rules, see subsections (b) and (c) of section 6501 of the Internal Revenue Code.
</P>
<P>(b) No proceeding in court without assessment for the collection of any tax shall be begun after the expiration of the applicable period for the assessment of such tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6501)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.222" NODE="27:2.0.1.4.7.4.205.84" TYPE="SECTION">
<HEAD>§ 70.222   Time return deemed filed for purposes of determining limitations.</HEAD>
<P>(a) <I>Early Return.</I> Any return filed prior to the last day prescribed by law or regulations for the filing thereof (determined without regard to any extension of time for filing) shall be considered as filed on such last day.
</P>
<P>(b) <I>Returns executed by appropriate TTB officers.</I> The execution of a return by an appropriate TTB officer under the authority of section 6020(b) of the Internal Revenue Code does not start the running of the statutory period of limitations on assessment and collection. 
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6501)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990; T.D. ATF-450, 66 FR 29028, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.223" NODE="27:2.0.1.4.7.4.205.85" TYPE="SECTION">
<HEAD>§ 70.223   Exceptions to general period of limitations on assessment and collection.</HEAD>
<P>(a) <I>False return.</I> In the case of a false or fraudulent return with intent to evade any tax, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time after such false or fraudulent return is filed.
</P>
<P>(b) <I>Willful attempt to evade tax.</I> In the case of a willful attempt in any manner to defeat or evade any tax imposed by provisions of 26 U.S.C. enforced and administered by the Bureau, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.
</P>
<P>(c) <I>No return.</I> In the case of a failure to file a return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time after the date prescribed for filing the return.
</P>
<P>(d) <I>Extension by agreement.</I> The time prescribed by 26 U.S.C. 6501 for the assessment of any tax imposed by provisions of 26 U.S.C. enforced and administered by the Bureau may, prior to the expiration of such time, be extended for any period of time agreed upon in writing by the taxpayer and the appropriate TTB officer. The extension shall become effective when the agreement has been executed by both parties. The period agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6501)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47641, Nov. 14, 1990; T.D. ATF-331, 57 FR 40328, Sept. 3, 1992]


</CITA>
</DIV8>


<DIV8 N="§ 70.224" NODE="27:2.0.1.4.7.4.205.86" TYPE="SECTION">
<HEAD>§ 70.224   Collection after assessment.</HEAD>
<P>(a) <I>Length of period</I>—(1) <I>General rule.</I> In any case in which a tax has been assessed within the statutory period of limitation properly applicable thereto, a proceeding in court to collect such tax may be begun, or levy for the collection of such tax may be made, within 10 years after the assessment thereof. 
</P>
<P>(2) <I>Extension by agreement.</I> (i) The 10-year period of limitation on collection after assessment of any tax may, prior to the expiration thereof, be extended for any period of time agreed upon in writing by the taxpayer and the appropriate TTB officer. Whenever necessary to protect the revenue, such officer may also execute a written agreement with the taxpayer to extend the period of limitation. The extension becomes effective upon execution of the agreement by both the taxpayer and such officer.
</P>
<P>(ii) The period of limitation on collection after assessment of any tax (including any extension of such period) may be extended after the expiration thereof if there has been a levy on any part of the taxpayer's property prior to such expiration and if the extension is agreed upon in writing prior to a release of the levy under the provisions of 26 U.S.C. 6343. An extension under this paragraph has the same effect as an agreement made prior to the expiration of the period of limitation on collection after assessment, and during the period of the extension collection may be enforced as to all property or rights to property owned by the taxpayer whether or not seized under the levy which was released.
</P>
<P>(iii) Any period agreed upon under the provisions of paragraph (a)(1) of this section may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
</P>
<P>(3) If a timely proceeding in court for the collection of a tax is commenced, the period during which such tax may be collected by levy shall be extended and shall not expire until the liability for the tax (or a judgment against the taxpayer arising from such liability) is satisfied or becomes unenforceable.
</P>
<P>(b) <I>Date when levy is considered made.</I> The date on which a levy on property or rights to property is made is the date on which the notice of seizure provided in 26 U.S.C. 6335(a) is given.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6502)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47641, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.225" NODE="27:2.0.1.4.7.4.205.87" TYPE="SECTION">
<HEAD>§ 70.225   Suspension of running of period of limitation; assets of taxpayer in control or custody of court.</HEAD>
<P>Where all or substantially all of the assets of a taxpayer are in the control or custody of the court in any proceeding before any court of the United States, or any State of the United States, or the District of Columbia, the period of limitations on collection after assessment prescribed in 26 U.S.C. 6502 is suspended with respect to the outstanding amount due on the assessment for the period such assets are in the control or custody of the court, and for 6 months thereafter.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6503)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47642, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.226" NODE="27:2.0.1.4.7.4.205.88" TYPE="SECTION">
<HEAD>§ 70.226   Suspension of running of period of limitation; taxpayer outside of United States.</HEAD>
<P>The running of the period of limitations on collection after assessment prescribed in 26 U.S.C. 6502 (relating to collection after assessment) is suspended for the period during which the taxpayer is absent from the United States if such period is a continuous period of absence from the United States extending for 6 months or more. In a case where the running of the period of limitations has been suspended under the first sentence of this paragraph and at the time of the taxpayer's return to the United States the period of limitations would expire before the expiration of 6 months from the date of the taxpayer's return, the period of limitations shall not expire until after 6 months from the date of the taxpayer's return. The taxpayer will be deemed to be absent from the United States for purposes of this section if the taxpayer is generally and substantially absent from the United States, even though the taxpayer makes casual temporary visits during the period.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6503)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47642, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.227" NODE="27:2.0.1.4.7.4.205.89" TYPE="SECTION">
<HEAD>§ 70.227   Suspension of running of period of limitation; wrongful seizure of property of third party.</HEAD>
<P>The running of the period of limitations on collection after assessment prescribed in 26 U.S.C. 6502 (relating to collection after assessment) shall be suspended for a period equal to a period beginning on the date property (including money) is wrongfully seized or received by an appropriate TTB officer and ending on the date 30 days after the date on which the appropriate TTB officer returns the property pursuant to 26 U.S.C. 6343(b) (relating to authority to return property) or the date 30 days after the date on which a judgment secured pursuant to 26 U.S.C. 7426 (relating to civil actions by persons other than taxpayers) with respect to such property becomes final. The running of the period of limitations on collection after assessment shall be suspended under this section only with respect to the amount of such assessment which is equal to the amount of money or the value of specific property returned.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6503)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47642, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001]
</CITA>
<HD2>Limitations on Liens
</HD2>
</DIV8>

<SOURCE>
<HED>Source:</HED><PSPACE>Sections 70.231 through 70.234 added by T.D. ATF-301, 55 FR 47642, Nov. 14, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 70.231" NODE="27:2.0.1.4.7.4.205.90" TYPE="SECTION">
<HEAD>§ 70.231   Protection for certain interests even though notice filed.</HEAD>
<P>(a) <I>Securities.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid with respect to a security (as defined in § 70.143(d) of this part) against:
</P>
<P>(1) A purchaser (as defined in § 70.143(f) of this part) of the security who at the time of purchase did not have actual notice or knowledge (as defined in § 70.144(a) of this part) of the existence of the lien;
</P>
<P>(2) A holder of a security interest (as defined in § 70.143(a) of this part) in the security who did not have actual notice or knowledge (as defined in § 70.144(a) of this part) of the existence of the lien at the time the security interest came into existence or at the time such security interest was acquired from a previous holder for a consideration in money or money's worth (as defined in § 70.143(a) of this part); or
</P>
<P>(3) A transferee of an interest protected under paragraph (a) (1) or (2) of this section to the same extent the lien is invalid against the transferor to the transferee. For purposes of this paragraph, no person can improve that person's position with respect to the lien by reacquiring the interest from an intervening purchaser or holder of a security interest against whom the lien is invalid.
</P>
<P>(b) <I>Motor vehicles</I>—(1) <I>In general.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid against a purchaser (as defined in § 70.143(f) of this part) of a motor vehicle (as defined in § 70.143(c) of this part) if:
</P>
<P>(i) At the time of purchase, the purchaser did not have actual notice or knowledge (as defined in § 70.144(a) of this part) of the existence of the lien, and
</P>
<P>(ii) Before the purchaser obtains such notice or knowledge, the purchaser has acquired actual possession of the motor vehicle and has not thereafter relinquished actual possession to the seller or seller's agent.
</P>
<P>(2) <I>Cross reference.</I> For provisions relating to additional circumstances in which the lien imposed by 26 U.S.C. 6321 may not be valid against the purchaser of tangible personal property (including a motor vehicle) purchased at retail, see paragraph (c) of this section.
</P>
<P>(c) <I>Personal property purchased at retail</I>—(1) <I>In general.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed (with respect to any tax imposed under the provisions of 26 U.S.C. enforced and administered by the Bureau) in accordance with § 70.148 of this part, the lien is not valid against a purchaser (as defined in § 70.143(f) of this part) of tangible personal property purchased at a retail sale (as defined in paragraph (c)(2) of this section) unless at the time of purchase the purchaser intends the purchase to (or knows that the purchase will) hinder, evade, or defeat the collection of any tax imposed by the provisions of 26 U.S.C. enforced and administered by the Bureau.
</P>
<P>(2) <I>Definition of retail sale.</I> For purposes of paragraph (c) of this section, the term “retail sale” means a sale, made in the ordinary course of the seller's trade or business, of tangible personal property of which the seller is the owner. Such term includes a sale in customary retail quantities by a seller who is going out of business, but does not include a bulk sale or an auction sale in which goods are offered in quantities substantially greater than are customary in the ordinary course of the seller's trade or business or an auction sale of goods the owner of which is not in the business of selling such goods.
</P>
<P>(d) <I>Personal property purchased in casual sale</I>—(1) <I>In general.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid against a purchaser (as defined in § 70.143(f) of this part) of household goods, personal effects, or other tangible personal property of a type described in § 70.241 of this part (which includes wearing apparel, school books, fuel, provisions, furniture, arms for personal use, livestock, and poultry (whether or not the seller is the head of a family); and books and tools of a trade, business, or profession (whether or not the trade, business, or profession of the seller)), purchased, other than for resale, in a casual sale for less than $250 (excluding interest and expenses described in § 70.147 of this part). For purposes of this paragraph, a casual sale is a sale not made in the ordinary course of the seller's trade or business.
</P>
<P>(2) <I>Limitation.</I> This paragraph applies only if the purchaser does not have actual notice or knowledge (as defined in § 70.144(a) of this part):
</P>
<P>(i) Of the existence of the tax lien, or
</P>
<P>(ii) That the sale is one of a series of sales.
</P>
<FP>For purposes of paragraph (d)(2)(ii) of this section, a sale is one of a series of sales if the seller plans to dispose of, in separate transactions, substantially all of the seller's household goods, personal effects, and other tangible personal property described in § 70.241 of this part.
</FP>
<P>(e) <I>Personal property subject to possessory liens.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid against a holder of a lien on tangible personal property which under local law secures the reasonable price of the repair or improvement of the property if the property is, and has been, continuously in the possession of the holder of the lien from the time the possessory lien arose. For example, if local law gives an automobile mechanic the right to retain possession of an automobile the mechanic has repaired as security for payment of the repair bill and the mechanic retains continuous possession of the automobile until such lien is satisfied, a tax lien filed in accordance with 26 U.S.C 6323(f)(1) which has attached to the automobile will not be valid to the extent of the reasonable price of the repairs. It is immaterial that the notice of tax lien was filed before the mechanic undertook the work or that the mechanic knew of the lien before undertaking the work.
</P>
<P>(f) <I>Real property tax and special assessment liens.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid against the holder of another lien upon the real property (regardless of when such other lien arises), if such other lien is entitled under local law to priority over security interests in real property which are prior in time and if such other lien on real property secures payment of:
</P>
<P>(1) A tax of general application levied by any taxing authority based upon the value of the property, or
</P>
<P>(2) A special assessment imposed directly upon the property by any taxing authority, if the assessment is imposed for the purpose of defraying the cost of any public improvement; or
</P>
<P>(3) Charges for utilities or public services furnished to the property by the United States, a State or political subdivision thereof, or an instrumentality of any one or more of the foregoing.
</P>
<P>(g) <I>Residential property subject to a mechanic's lien for certain repairs and improvements.</I> Even though a notice of lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid against a mechanic's lienor (as defined in § 70.143(b) of this part) who holds a lien for the repair or improvement of a personal residence if:
</P>
<P>(1) The residence is occupied by the owner and contains no more than four dwelling units, and
</P>
<P>(2) The contract price on the prime contract with the owner for the repair or improvement (excluding interest and expenses described in § 70.147 of this part) is not more than $1,000. For purposes of this paragraph, the amounts of subcontracts under the prime contract with the owner are not to be taken into consideration for purposes of computing the $1,000 prime contract price. It is immaterial that the notice of tax lien was filed before the contractor undertakes the work or that the contractor knew of the lien before undertaking the work.
</P>
<P>(h) <I>Attorney's liens</I>—(1) <I>In general.</I> Even though notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid against an attorney who, under local law, holds a lien upon, or a contract enforceable against, a judgment or other amount in settlement of a claim or of a cause of action. The priority afforded an attorney's lien under this paragraph shall not exceed the amount of the attorney's reasonable compensation for obtaining the judgment or procuring the settlement. For purposes of this paragraph, reasonable compensation means the amount customarily allowed under local law for an attorney's service for litigating or settling a similar case or administrative claim. However, reasonable compensation shall be determined on the basis of the facts and circumstances of each individual case. It is immaterial that the notice of tax lien is filed before the attorney undertakes the work or that the attorney knows of the tax lien before undertaking the work. This paragraph does not apply to an attorney's lien which may arise from the defense of a claim or cause of action against a taxpayer except to the extent such lien is held upon a judgment or other amount arising from the adjudication or settlement of a counterclaim in favor of the taxpayer. In case of suits against the taxpayer, see § 70.150(d)(2) of this part for rules relating to the subordination of the tax lien to facilitate tax collection.
</P>
<P>(2) <I>Claim or cause of action against the United States.</I> Paragraph (h)(1) of this section does not apply to an attorney's lien with respect to:
</P>
<P>(i) Any judgment or other fund resulting from the successful litigation or settlement of an administrative claim or cause of action against the United States to the extent that the United States, under any legal or equitable right, offsets its liability under the judgment or settlement against any liability of the taxpayer to the United States, or
</P>
<P>(ii) Any amount credited against any liability of the taxpayer in accordance with 26 U.S.C. 6402.
</P>
<P>(i) <I>Certain insurance contracts.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 (with respect to any tax imposed under the provisions of 26 U.S.C. enforced and administered by the Bureau) is filed in accordance with § 70.148 of this part, the lien is not valid with respect to a life insurance, endowment, or annuity contract, against an organization which is the insurer under the contract, at any time:
</P>
<P>(1) Before the insuring organization has actual notice or knowledge (as defined in § 70.144(a) of this part) of the existence of the tax lien.
</P>
<P>(2) After the insuring organization has actual notice or knowledge of the lien (as defined in § 70.144(a) of this part) with respect to advances (including contractual interest thereon as provided in § 70.147(a) of this part) required to be made automatically to maintain the contract in force under an agreement entered into before the insuring organization had such actual notice or knowledge, or
</P>
<P>(3) After the satisfaction of a levy pursuant to 26 U.S.C. 6332(b), unless and until the appropriate TTB officer delivers to the insuring organization a notice (for example, another notice of levy, a letter, <I>etc.</I>), executed after the date of such satisfaction, that the lien exists.
</P>
<FP>Delivery of the notice described in paragraph (i)(3) of this section may be made by any means, including regular mail, and delivery of the notice shall be effective only from the time of actual receipt of the notification by the insuring organization. The provisions of this paragraph are applicable to matured as well as unmatured insurance contracts.
</FP>
<P>(j) <I>Passbook loans</I>—(1) <I>In general.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid against an institution described in 26 U.S.C. 581 or 591 to the extent of any loan made by the institution which is secured by a savings deposit, share, or other account evidenced by a passbook (as defined in paragraph (j)(2) of this section) if the institution has been continuously in possession of the passbook from the time the loan is made. This paragraph applies only to a loan made without actual notice or knowledge (as defined in § 70.144(a) of this part) of the existence of the lien. Even though an original passbook loan is made without actual notice or knowledge of the existence of the lien, this paragraph does not apply to any additional loan made after knowledge of the lien is acquired by the institution even if it continues to retain the passbook from the time the original passbook loan is made.
</P>
<P>(2) <I>Definition of passbook.</I> For purposes of paragraph (j) of this section, the term “passbook” includes:
</P>
<P>(i) Any tangible evidence of a savings deposit, share, or other account which, when in the possession of the bank or other savings institution, will prevent a withdrawal from the account to the extent of the loan balance, and
</P>
<P>(ii) Any procedure or system, such as an automatic data processing system, the use of which by the bank or other savings institution will prevent a withdrawal from the account to the extent of the loan balance.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6323)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.232" NODE="27:2.0.1.4.7.4.205.91" TYPE="SECTION">
<HEAD>§ 70.232   Protection for commercial transactions financing agreements.</HEAD>
<P>(a) <I>In general.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid with respect to a security interest which:
</P>
<P>(1) Comes into existence after the tax lien filing.
</P>
<P>(2) Is in qualified property covered by the terms of a commercial transactions financing agreement entered into before the tax lien filing, and
</P>
<P>(3) Is protected under local law against a judgment lien arising, as of the time of the tax lien filing, out of an unsecured obligation.
</P>
<FP>See § 70.143 (a) and (e) of this part for definitions of the terms “security interest” and “tax lien filing,” respectively. For purposes of this section, a judgment lien is a lien held by a judgment lien creditor as defined in § 70.143(g) of this part.
</FP>
<P>(b) <I>Commercial transactions financing agreement.</I> For purposes of this section, the term “commercial transactions financing agreement” means a written agreement entered into by a person in the course of such person's trade or business:
</P>
<P>(1) To make loans to the taxpayer (whether or not at the option of the person agreeing to make such loans) to be secured by commercial financing security acquired by the taxpayer in the ordinary course of the taxpayer's trade or business, or
</P>
<P>(2) To purchase commercial financing security, other than inventory, acquired by the taxpayer in the ordinary course of the taxpayer's trade or business.
</P>
<FP>Such an agreement qualifies as a commercial transactions financing agreement only with respect to loans or purchases made under the agreement before the 46th day after the date of tax lien filing or the time when the lender or purchaser has actual notice or knowledge (as defined in § 70.144(a) of this part) of the tax lien filing, if earlier. For purposes of this paragraph, a loan or purchase is considered to have been made in the course of the lender's or purchaser's trade or business if such person is in the business of financing commercial transactions (such as a bank or commercial factor) or if the agreement is incidental to the conduct of such person's trade or business. For example, if a manufacturer finances the accounts receivable of one of its customers, the manufacturer is considered to engage in such financing in the course of its trade or business. The extent of the priority of the lender or purchaser over the tax lien is the amount of the disbursement made before the 46th day after the date the notice of tax lien is filed, or made before the day (before such 46th day) on which the lender or purchaser has actual notice or knowledge of the filing of the notice of the tax lien.
</FP>
<P>(c) <I>Commercial financing security</I>—(1) <I>In general.</I> The term “commercial financing security” means:
</P>
<P>(i) Paper of a kind ordinarily arising in commercial transactions,
</P>
<P>(ii) Accounts receivable (as defined in paragraph (c)(2) of this section),
</P>
<P>(iii) Mortgages on real property, and
</P>
<P>(iv) Inventory.
</P>
<P>For purposes of this subparagraph, the term “paper of a kind ordinarily arising in commercial transactions” in general includes any written document customarily used in commercial transactions. For example, such written documents include paper giving contract rights (as defined in paragraph (c)(2) of this section), chattel paper, documents of title to personal property, and negotiable instruments or securities. The term “commercial financing security” does not include general intangibles such as patents or copyrights. A mortgage on real estate (including a deed of trust, contract for sale, and similar instrument) may be commercial financing security if the taxpayer has an interest in the mortgage as a mortgagee or assignee. The term “commercial financing security” does not include a mortgage when the taxpayer is the mortgagor of realty owned by the taxpayer. For purposes of this subparagraph, the term “inventory” includes raw materials and goods in process as well as property held by the taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or business.
</P>
<P>(2) <I>Definitions.</I> For purposes of §§ 70.143 and 70.146 of this part, and this section:
</P>
<P>(i) A contract right is any right to payment under a contract not yet earned by performance and not evidenced by an instrument or chattel paper, and
</P>
<P>(ii) An account receivable is any right to payment for goods sold or leased or for services rendered which is not evidenced by an instrument or chattel paper.
</P>
<P>(d) <I>Qualified property.</I> For purposes of paragraph (a) of this section, qualified property consists solely of commercial financing security acquired by the taxpayer-debtor before the 46th day after the date of tax lien filing. Commercial financing security acquired before such day may be qualified property even though it is acquired by the taxpayer after the lender received actual notice or knowledge of the filing of the tax lien. For example, although the receipt of actual notice or knowledge of the filing of the notice of the tax lien has the effect of ending the period within which protected disbursements may be made to the taxpayer, property which is acquired by the taxpayer after the lender receives actual notice or knowledge of such filing and before such 46th day, which otherwise qualifies as commercial financing security, becomes commercial financing security to which the priority of the lender extends for loans made before the lender received the actual notice or knowledge. An account receivable (as defined in paragraph (c)(2)(ii) of this section) is acquired by a taxpayer at the time, and to the extent, a right to payment is earned by performance. Chattel paper, documents of title, negotiable instruments, securities, and mortgages on real estate are acquired by a taxpayer when the taxpayer obtains rights in the paper or mortgage. Inventory is acquired by the taxpayer when title passes to the taxpayer. A contract right (as defined in paragraph (c)(2)(i) of this section) is acquired by a taxpayer when the contract is made. Identifiable proceeds, which arise from the collection or disposition of qualified property by the taxpayer, are considered to be acquired at the time such qualified property is acquired if the secured party has a continuously perfected security interest in the proceeds under local law. The term “proceeds” includes whatever is received when collateral is sold, exchanged, or collected. For purposes of this paragraph, the term “identifiable proceeds” does not include money, checks and the like which have been commingled with other cash proceeds. Property acquired by the taxpayer after the 45th day following tax lien filing, by the expenditure of proceeds, is not qualified property.
</P>
<P>(e) <I>Purchaser treated as acquiring security interest.</I> A person who purchases commercial financing security, other than inventory, pursuant to a commercial transactions financing agreement is treated, for purposes of this section, as having acquired a security interest in the commercial financing security. In the case of a bona fide purchase at a discount, a purchaser of commercial financing security who satisfies the requirements of this section has priority over the tax lien to the full extent of the security.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6323)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.233" NODE="27:2.0.1.4.7.4.205.92" TYPE="SECTION">
<HEAD>§ 70.233   Protection for real property construction or improvement financing agreements.</HEAD>
<P>(a) <I>In general.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid with respect to a security interest which:
</P>
<P>(1) Comes into existence after the tax lien filing,
</P>
<P>(2) Is on qualified property covered by the terms of a real property construction or improvement financing agreement entered into before the tax lien filing, and
</P>
<P>(3) Is protected under local law against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation.
</P>
<FP>For purposes of this section, it is immaterial that the holder of the security interest had actual notice or knowledge of the lien at the time disbursements are made pursuant to such an agreement. See § 70.143 (a) and (e) of this part for general definitions of the terms “security interest” and “tax lien filing.” For purposes of this section, a judgment lien is a lien held by a judgment lien creditor as defined in § 70.143(g) of this part.
</FP>
<P>(b) <I>Real property construction or improvement financing agreement.</I> For purposes of this section, the term “real property construction or improvement financing agreement” means any written agreement to make cash disbursements (whether or not at the option of the party agreeing to make such disbursements):
</P>
<P>(1) To finance the construction, improvement, or demolition of real property if the agreement provides for a security interest in the real property with respect to which the construction, improvement, or demolition has been or is to be made;
</P>
<P>(2) To finance a contract to construct or improve, or demolish real property if the agreement provides for a security interest in the proceeds of the contract; or
</P>
<P>(3) To finance the raising or harvesting of a farm crop or the raising of livestock or other animals if the agreement provides for a security interest in any property subject to the lien imposed by 26 U.S.C. 6321 at the time of tax lien filing, in the crop raised or harvested, or in the livestock or other animals raised.
</P>
<FP>For purposes of paragraphs (b) (1) and (2) of this section, construction or improvement may include demolition. For purposes of any agreement described in paragraph (b)(3) of this section, the furnishing of goods and services is treated as the disbursement of cash.
</FP>
<P>(c) <I>Qualified property.</I> For purposes of this section, the term “qualified property” includes only:
</P>
<P>(1) In the case of an agreement described in paragraph (b)(1) of this section, the real property with respect to which the construction or improvement has been or is to be made;
</P>
<P>(2) In the case of an agreement described in paragraph (b)(2) of this section, the proceeds of the contract to construct or improve real property; or
</P>
<P>(3) In the case of an agreement described in paragraph (b)(3) of this section, property subject to the lien imposed by 26 U.S.C. 6321 at the time of tax lien filing, the farm crop raised or harvested, or the livestock or other animals raised.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6323)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.234" NODE="27:2.0.1.4.7.4.205.93" TYPE="SECTION">
<HEAD>§ 70.234   Protection for obligatory disbursement agreements.</HEAD>
<P>(a) <I>In general.</I> Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.148 of this part, the lien is not valid with respect to security interest which:
</P>
<P>(1) Comes into existence after the tax lien filing,
</P>
<P>(2) Is in qualified property covered by the terms of an obligatory disbursement agreement entered into before the tax lien filing, and
</P>
<P>(3) Is protected under local law against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation.
</P>
<FP>See § 70.143 (a) and (e) of this part for definitions of the terms “security interest” and “tax lien filing.” For purposes of this section, a judgment lien creditor as defined in § 70.143(g) of this part.
</FP>
<P>(b) <I>Obligatory disbursement agreement.</I> For purposes of this section, the term “obligatory disbursement agreement” means a written agreement, entered into by a person in the course of the person's trade or business, to make disbursements. An agreement is treated as an obligatory disbursement agreement only with respect to disbursements which are required to be made by reason of the intervention of the rights of a person other than the taxpayer. The obligation to pay must be conditioned upon an event beyond the control of the obligor. For example, the provisions of this section are applicable where an issuing bank obligates itself to honor drafts or other demands for payment on a letter of credit and a bank, in good faith, relies upon that letter of credit in making advances. The provisions of this section are also applicable, for example, where a bonding company obligates itself to make payments to indemnify against loss or liability and, under the terms of the bond, makes a payment with respect to a loss. The priority described in this section is not applicable, for example, in the case of an accommodation endorsement by an endorser who assumes the obligation other than in the course of the endorser's trade or business.
</P>
<P>(c) <I>Qualified property.</I> Except as provided under paragraph (d) of this section, the term “qualified property,” for purposes of this section, means property subject to the lien imposed by 26 U.S.C. 6321 at the time of tax lien filing and, to the extent that the acquisition is directly traceable to the obligatory disbursement, property acquired by the taxpayer after tax lien filing.
</P>
<P>(d) <I>Special rule for surety agreements.</I> Where the obligatory disbursement agreement is an agreement insuring the performance of a contract of the taxpayer and another person, the term “qualified property” shall be treated as also including:
</P>
<P>(1) The proceeds of the contract the performance of which was insured, and
</P>
<P>(2) If the contract the performance of which was insured is a contract to construct or improve real property, to produce goods, or to furnish services, any tangible personal property used by the taxpayer in the performance of the insured contract.
</P>
<FP>For example, a surety company which holds a security interest, arising from cash disbursements made after tax lien filing under a payment or performance bond on a real estate construction project, has priority over the tax lien with respect to the proceeds of the construction contract and, in addition, with respect to any tangible personal property used by the taxpayer in the construction project if its security interest in the tangible personal property is protected under local law against a judgment lien arising, as of the time the tax lien was filed, out of an unsecured obligation.
</FP>
<SECAUTH TYPE="N">(26 U.S.C. 6323)
</SECAUTH>
<HD2>Limitations on Levies
</HD2>
</DIV8>

<SOURCE>
<HED>Source:</HED><PSPACE>Sections 70.241 through 70.245 added by T.D. ATF-301, 55 FR 47646, Nov. 14, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 70.241" NODE="27:2.0.1.4.7.4.205.94" TYPE="SECTION">
<HEAD>§ 70.241   Property exempt from levy.</HEAD>
<P>(a) <I>Enumeration.</I> There shall be exempt from levy:
</P>
<P>(1) <I>Wearing apparel and school books.</I> Such items of wearing apparel and such school books as are necessary for the taxpayer or for members of the taxpayer's family. Expensive items of wearing apparel, such as furs, which are luxuries and are not necessary for the taxpayer or for members of the taxpayer's family, are not exempt from levy.
</P>
<P>(2) <I>Fuel, provisions, furniture, and personal effects.</I> If the taxpayer is the head of a family, so much of the fuel, provisions, furniture, and personal effects in the taxpayer's household, and of the arms for personal use, livestock, and poultry of the taxpayer, as does not exceed $1,650 in value. For purposes of this provision, an individual who is the only remaining member of a family and who lives alone is not the head of a family.
</P>
<P>(3) <I>Books and tools of a trade, business or profession.</I> So many of the books and tools necessary for the trade, business, or profession of an individual taxpayer as do not exceed in the aggregate $1,100 in value.
</P>
<P>(4) <I>Unemployment benefits.</I> Any amount payable to an individual with respect to that individual's unemployment (including any portion thereof payable with respect to dependents) under an unemployment compensation law of the United States, of any State, or of the District of Columbia or of the Commonwealth of Puerto Rico.
</P>
<P>(5) <I>Undelivered mail.</I> Mail, addressed to any person, which has not been delivered to the addressee.
</P>
<P>(6) <I>Certain annuity and pension payments.</I> Annuity or pension payments under the Railroad Retirement Act (45 U.S.C. chapter 9), benefits under the Railroad Unemployment Insurance Act (45 U.S.C. chapter 11), special pension payments received by a person whose name has been entered on the Army, Navy, Air Force, and Coast Guard Medal of Honor roll (38 U.S.C. 562), and annuities based on retired or retainer pay under 10 U.S.C. chapter 73.
</P>
<P>(7) <I>Workmen's compensation.</I> Any amount payable to an individual as workmen's compensation (including any portion thereof payable with respect to dependents) under a workmen's compensation law of the United States, any State, the District of Columbia, or the Commonwealth of Puerto Rico.
</P>
<P>(8) <I>Judgments for support of minor children.</I> If the taxpayer is required under any type of order or decree (including an interlocutory decree or a decree of support pendente lite) of a court of competent jurisdiction, entered prior to the day of levy, to contribute to the support of such taxpayer's minor children, so much of the taxpayer's salary, wages, or other income as is necessary to comply with such order or decree. The taxpayer must establish the amount necessary to comply with the order or decree. The appropriate TTB officer is not required to release a levy until such time as that officer is satisfied that the amount to be released from levy will actually be applied in satisfaction of the support obligation. The appropriate TTB officer may make arrangements with a delinquent taxpayer to establish a specific amount of such taxpayer's salary, wage, or other income for each pay period which shall be exempt from levy. Any request for such an arrangement shall be directed to the appropriate TTB officer. Where the taxpayer has more than one source of income sufficient to satisfy the support obligation imposed by the order or decree, the amount exempt from levy may at the discretion of the appropriate TTB officer be allocated entirely to one salary, wage, or source of other income or be apportioned between the several salaries, wages, or other sources of income.
</P>
<P>(9) <I>Minimum exemption for wages, salary, and other income.</I> Amounts payable to or received by the taxpayer as wages or salary for personal services, or as other income, to the extent provided in §§ 70.242 through 70.245 of this part.
</P>
<P>(10) <I>Certain service-connected disability payments.</I> Any amount payable to an individual as a service-connected (within the meaning of 38 U.S.C. 101(16)) disability benefit under:
</P>
<P>(i) 38 U.S.C. chapter 11, subchapter II, III, IV, V, or VI, or
</P>
<P>(ii) 38 U.S.C. chapter 13, 21, 23, 31, 32, 34, 35, 37, or 39 shall be exempt from levy.
</P>
<P>(11) <I>Certain public assistance payments.</I> Any amount payable to an individual as a recipient of public assistance under:
</P>
<P>(i) Title 42 U.S.C. subchapter IV (relating to aid to families with dependent children) or 42 U.S.C. subchapter XVI (relating to supplemental security income for the aged, blind, and disabled), or
</P>
<P>(ii) State or local government public assistance or public welfare programs for which eligibility is determined by a needs or income test shall be exempt from levy.
</P>
<P>(12) <I>Assistance under job training partnership act.</I> Any amount payable to a participant under the Job Training Partnership Act (29 U.S.C. 1501 <I>et seq.</I>) from funds appropriated pursuant to such Act shall be exempt from levy.
</P>
<P>(13) <I>Principal residence exempt in absence of certain approval or jeopardy.</I> Except to the extent provided in § 70.166 of this part, the principal residence of the taxpayer (within the meaning of 26 U.S.C. 1034) is exempt from levy.
</P>
<P>(b) <I>Appraisal.</I> The TTB officer seizing property of the type described in 26 U.S.C. 6334(a) shall appraise and set aside to the owner the amount of such property declared to be exempt. If the taxpayer objects at the time of the seizure to the valuation fixed by the officer making the seizure, such officer shall summon three disinterested individuals who shall make the valuation.
</P>
<P>(c) <I>Other property.</I> No other property or rights to property are exempt from levy except the property specifically exempted by 26 U.S.C. 6334(a). No provisions of a State law may exempt property or rights to property from levy for the collection of any Federal tax. Thus, property exempt from execution under State personal or homestead exemption laws is, nevertheless, subject to levy by the United States for collection of its taxes.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6334)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.242" NODE="27:2.0.1.4.7.4.205.95" TYPE="SECTION">
<HEAD>§ 70.242   Wages, salary and other income.</HEAD>
<P>(a) <I>In general.</I> Under 26 U.S.C. 6334(a)(9) and (d) certain amounts payable to or received by a taxpayer as wages, salary or other income are exempt from levy. This section described the income of a taxpayer that is eligible for the exemption from levy (paragraph (b) of this section) and how exempt amounts are to be paid to the taxpayer (paragraph (c) of this section). Section 70.243 of this part describes the sum which will be exempt from levy for each of the taxpayer's payroll periods. Payroll periods are described in § 70.244 of this part. Amounts exempt from levy are determined in part by the number of persons claimed by the taxpayer as dependents. Section 70.245 of this part describes the manner in which the taxpayer is to claim any dependent exemptions and the manner in which the employer is to compute the exempt amount and pay the balance to the appropriate TTB officer.
</P>
<P>(b) <I>Eligible taxpayer income.</I> Only wages, salary or other income payable to the taxpayer after the levy is made on the payor may be exempt from levy under 26 U.S.C. 6334 (a)(9). No amount of wages, salary or other income which is paid to the taxpayer before levy is made on the payor will be so exempt from levy.
</P>
<P>(c) <I>Payment of exempt amounts to taxpayer</I>—(1) <I>From wages, salary or other income not subject to levy.</I> In the case of a taxpayer who has more than one source of wages, salary or other income, the appropriate TTB officer may elect to levy on only one or more such source while leaving other sources of salary or other income free from levy. If those wages, salary or other income which the appropriate TTB officer leaves free from levy equal or exceed the amount to which the taxpayer is entitled as an exemption from levy under 26 U.S.C. 6334(a)(9) and (d) and § 70.243 of this part (and ar not otherwise exempt), then no amount of the taxpayer's wages, salary or other income on which the appropriate TTB officer elects to levy is exempt from levy. The appropriate TTB officer shall notify the employer or other person subject to levy that no amount of the taxpayer's wages, salary or other income is exempt from levy.
</P>
<P>(2) <I>From wages, salary or other income subject to levy.</I> If the taxpayer's income upon which the appropriate TTB officer does not levy is less than that amount to which the taxpayer is entitled as an exemption, then an amount determined pursuant to § 70.243 of this part is to be paid to the taxpayer from those wages, salary or other income which are subject to levy. The appropriate TTB officer will designate those wages, salary or other income subject to levy from which such amount will be paid to the taxpayer. The appropriate TTB officer will generally make this designation by delivering to the employer, or other person levied upon, the form upon which the taxpayer is to claim any dependent exemption. The form will accompany the notice of levy. The person receiving the form from the appropriate TTB officer must promptly deliver it to the taxpayer. In the case of some employers having a large number of employees, however, the appropriate TTB officer will send the form upon which an employee is to claim any dependent exemption directly to the employee. In such a case, the notice of levy will indicate that the form for claiming dependent exemptions has been sent to the taxpayer. If a notice of levy is not accompanied by the form for claiming dependent exemptions and does not indicate that the form was sent directly to the taxpayer, then the person levied upon must make payment to the appropriate TTB officer without regard to amounts prescribed by § 70.243 of this part as exempt from levy. If a notice of levy is accompanied by the form for claiming dependent exemptions or indicates that the form was sent directly to the taxpayer, then the person levied upon is to pay over to the taxpayer, amounts determined to be exempt from levy pursuant to § 70.243 and § 70.245 (b) and (c) of this part (relating to the requirement that the taxpayer submit a claim for any dependent exemption). Amounts not exempt from levy are to be paid to the appropriate TTB officer in accordance with the terms of the levy.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6334)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.243" NODE="27:2.0.1.4.7.4.205.96" TYPE="SECTION">
<HEAD>§ 70.243   Exempt amount.</HEAD>
<P>Amount payable to the taxpayer as wages, salary, or other income for each payroll period described in § 70.244 of this part are exempt from levy as follows:
</P>
<P>(a) If the payroll period is weekly, an amount equal to:
</P>
<P>(1) The sum of:
</P>
<P>(i) The standard deduction, and
</P>
<P>(ii) The aggregate amount of the deductions for personal exemption allowed the taxpayer under 26 U.S.C. 151 in the taxable year in which such levy occurs, divided by
</P>
<P>(2) 52.
</P>
<P>(b) If the payroll period is not weekly, the amount exempt from levy shall be an amount which as nearly as possible will result in the same total exemption from levy for such individual over a period of time as such individual would have under paragraph (a) of this section if (during such period of time) the individual were paid or received such wages, salary or other income on a regular weekly basis.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6334)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.244" NODE="27:2.0.1.4.7.4.205.97" TYPE="SECTION">
<HEAD>§ 70.244   Payroll period.</HEAD>
<P>For purpose of determining the amount of wages, salary or other income exempt from levy under 26 U.S.C. 6334(a)(9):
</P>
<P>(a) <I>Regularly used calendar periods.</I> In the case of wages, salary or other income paid to the taxpayer on the basis of an established calendar period regularly used by the employer or other person levied upon for payroll or payment purpose (e.g., daily, weekly, biweekly, semimonthly, or monthly), that period is the taxpayer's payroll period.
</P>
<P>(b) <I>Amounts paid on recurrent but irregular basis.</I> In the case of wages, salary, or other income paid to the taxpayer on a recurrent but irregular basis, the first day of the taxpayer's payroll period is that day following the day upon which the wages, salary, or other income were last paid to the taxpayer. The last day of the payroll period is that day upon which the current payment becomes payable to him or her. However, in any case in which:
</P>
<P>(1) Amounts are paid to the taxpayer on a recurrent but irregular basis, and
</P>
<P>(2) The last payment was paid to the taxpayer more than 60 days before the current payment becomes payable, the current payment will be deemed a one-time payment (<I>see</I> paragraph (c) of this section).
</P>
<P>(c) <I>Nonrecurrent payments.</I> In the case of wages, salary or other income paid to the taxpayer on a one-time basis, the taxpayer's payroll period is deemed to be weekly (<I>i.e.,</I> the 1-week period ending on the day of payment).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6334)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.245" NODE="27:2.0.1.4.7.4.205.98" TYPE="SECTION">
<HEAD>§ 70.245   Computation of exempt amount and payment of amounts not exempt from levy to the appropriate TTB officer.</HEAD>
<P>(a) <I>General.</I> Unless advised by the appropriate TTB officer that no part of the money due to the taxpayer is exempt from levy, the employer or other person levied upon will compute the exempt amount, using the formula in § 70.243 of this part and the taxpayer's statement of exemptions and filing status described in paragraph (b) of this section.
</P>
<P>(b) <I>Statement of exemptions and filing status.</I> Unless the taxpayer submits a statement of exemptions and filing status to the employer or other person levied upon, the exempt amount will be applied as if the taxpayer were a married individual filing a separate return with only 1 personal exemption. A statement of exemptions and filing status shall be made by either:
</P>
<P>(1) Completion of the form provided for this purpose by the Bureau, or
</P>
<P>(2) A written statement that:
</P>
<P>(i) Gives the taxpayer's filing status for income tax purposes,
</P>
<P>(ii) Shows any additional standard deduction if the taxpayer or the taxpayer's spouse is at least 65 and/or blind,
</P>
<P>(iii) Identified by name and by relationship to the taxpayer each person for whom a dependent exemption is claimed,
</P>
<P>(iv) Is signed by the taxpayer, and
</P>
<P>(v) Contains a declaration that it is made under the penalties of perjury.
</P>
<P>(c) <I>Time for submission of statement.</I> The taxpayer must submit the statement of exemptions and filing status to the employer or other person levied upon no later than the later of:
</P>
<P>(1) The third day before the last day of the payroll period for which the exemption is claimed (that is, the third day before payday), or
</P>
<P>(2) If the appropriate TTB officer delivers the forms for the statement of exemption and filing status to the employer or other person levied upon (see § 70.242(c)(2) of this part), the second day after the date the taxpayer receives the form.
</P>
<FP>For purposes of paragraphs (c) (1) and (2) of this section, the term “day” does not include Saturdays, Sunday or a legal holiday within the meaning of 26 U.S.C. 7503. Failure on the part of the taxpayer to submit a timely statement of exemptions and filing status will result in the computation of the exempt amount as if the taxpayer were a married individual filing a separate return with only 1 personal exemption for the applicable pay period, except that the employer or other person levied upon may accept a statement of exemptions and filing status not timely submitted in accordance with this paragraph, and may prepare a disbursement to the taxpayer based upon the information properly verified therein, if payment to the appropriate TTB officer in accordance with the levy is not thereby delayed.
</FP>
<P>(d) <I>Payment of amounts not exempt from levy to the appropriate TTB officer</I>—(1) <I>In General.</I> Wages, Salary, or other income the subject of a levy are payable to the appropriate TTB officer on the date the payor is otherwise obligated to pay the taxpayer (<I>see</I> § 70.242(c) of this part).
</P>
<P>(2) <I>Delayed payment in certain cases.</I> If, however, as described in paragraph (c)(2) of this section, the taxpayer may submit a statement of exemptions and filing status after the third day before payday, amounts payable to the taxpayer on that payday, to the extent not exempt from levy, are payable to the appropriate TTB officer on the third day following the date on which the taxpayer may timely submit the statement of exemptions and filing status under paragraph (c)(2) of this section. For purposes of this rule, the term “day” does not include Saturday, Sunday or a legal holiday within the meaning of 26 U.S.C. 7503.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6334)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
<HD2>Periods of Limitation in Judicial Proceedings


</HD2>
</DIV8>


<DIV8 N="§ 70.251" NODE="27:2.0.1.4.7.4.205.99" TYPE="SECTION">
<HEAD>§ 70.251   Periods of limitation on suits by taxpayers.</HEAD>
<P>(a) No suit or proceeding under section 7422(a) of the Internal Revenue Code for the recovery of any internal revenue tax, penalty, or other sum shall be begun until whichever of the following first occurs:
</P>
<P>(1) The expiration of 6 months from the date of the filing of the claim for credit or refund, or
</P>
<P>(2) A decision is rendered on such claim prior to the expiration of 6 months after the filing thereof. Except as provided in paragraph (b) of this section, no suit or proceeding for the recovery of any tax, penalty, or other sum imposed under the provision of 26 U.S.C. enforced and administered by the Bureau may be brought after the expiration of 2 years from the date of mailing, by either registered or certified mail, by an appropriate TTB officer, to a taxpayer of a statutory notice of disallowance of the part of the claim to which the suit or proceeding relates.
</P>
<P>(b) The 2-year period described in paragraph (a) of this section may be extended if an agreement to extend the running of the period of limitations is executed. The agreement must be signed by the taxpayer or by an attorney, agent, trustee, or other fiduciary on behalf of the taxpayer. If the agreement is signed by a person other than the taxpayer, it shall be accompanied by an authenticated copy of the power of attorney or other legal evidence of the authority of such person to act on behalf of the taxpayer. If the taxpayer is a corporation, the agreement should be signed with the corporate name followed by the signature of a duly authorized officer of the corporation. The agreement will not be effective until signed by an appropriate officer.
</P>
<P>(c)(1) The taxpayer may sign a waiver of the requirement that the taxpayer be mailed a notice of disallowance. Such waiver is irrevocable and will commence the running of the 2-year period described in paragraph (a) of this section on the date the waiver is filed. The waiver shall set forth:
</P>
<P>(i) The type of tax and the taxable period covered by the taxpayer's claim for refund;
</P>
<P>(ii) The amount of the claim;
</P>
<P>(iii) The amount of the claim disallowed;
</P>
<P>(iv) A statement that the taxpayer agrees the filing of the waiver will commence the running of the 2-year period provided for in section 6532(a)(1) as if a notice of disallowance had been sent the taxpayer by either registered or certified mail.
</P>
<P>(2) The filing of such a waiver prior to the expiration of 6 months from the date the claim was filed does not permit the filing of a suit for refund prior to the time specified in section 6532(a)(1) and paragraph (a) of this section.
</P>
<P>(d) Any consideration, reconsideration, or other action with respect to a claim after the mailing, by either registered or certified mail, of a notice of disallowance or after the execution of a waiver referred to in paragraph (c) of this section, shall not extend the period for bringing suit or other proceeding under section 7422(a) of the Internal Revenue Code.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6532)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47648, Nov. 14, 1990; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.252" NODE="27:2.0.1.4.7.4.205.100" TYPE="SECTION">
<HEAD>§ 70.252   Periods of limitation on suits by the United States.</HEAD>
<P>The United States may not recover any erroneous refund by civil action under section 7405 of the Internal Revenue Code unless such action is begun within 2 years after the making of such refund. However, if any part of the refund was induced by fraud or misrepresentation of a material fact, the action to recover the erroneous refund may be brought at any time within 5 years from the date the refund was made.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6532)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.253" NODE="27:2.0.1.4.7.4.205.101" TYPE="SECTION">
<HEAD>§ 70.253   Periods of limitation on suits by persons other than taxpayers.</HEAD>
<P>(a) <I>General rule.</I> No suit or proceeding, except as otherwise provided in 26 U.S.C. 6532(c)(2) and paragraph (b) of this section, under 26 U.S.C. 7426 and § 70.207 of this part relating to civil actions by persons other than taxpayers, shall be begun after the expiration of 9 months from the date of levy or agreement under 26 U.S.C. 6325(b)(3) giving rise to such action.
</P>
<P>(b) <I>Period when claim is filed.</I> The 9-month period described in 26 U.S.C. 6532(c)(1) and paragraph (a) of this section shall be extended to the shorter of
</P>
<P>(1) 12 months from the date of filing by a third party of a written request under § 70.167(b)(2) of this part for the return of property wrongfully levied upon, or
</P>
<P>(2) 6 months from the date of mailing by registered or certified mail by the appropriate TTB officer to the party claimant of a notice of disallowance of the part of the request to which the action relates. A request which, under § 70.167(b)(3) of this part, is not considered adequate does not extend the 9-month period described in paragraph (a) of this section.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6532)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47648, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001]
</CITA>
<HD2>Limitations on Credit or Refund


</HD2>
</DIV8>


<DIV8 N="§ 70.261" NODE="27:2.0.1.4.7.4.205.102" TYPE="SECTION">
<HEAD>§ 70.261   Period of limitation on filing claim.</HEAD>
<P>(a) In the case of any tax (other than a tax payable by stamp):
</P>
<P>(1) If a return is filed, a claim for credit or refund of an overpayment must be filed by the taxpayer within 3 years from the time the return was filed or within 2 years from the time the tax was paid, whichever of such periods expires the later.
</P>
<P>(2) If no return is filed, the claim for credit or refund of an overpayment must be filed by the taxpayer within 2 years from the time the tax was paid.
</P>
<P>(b) In the case of any tax payable by means of a stamp, a claim for credit or refund of an overpayment of such tax must be filed by the taxpayer within 3 years from the time the tax was paid. For provisions relating to redemption of unused stamps, see section 6805 of the Internal Revenue Code.
</P>
<P>(c) For limitations on allowance of credit or refund, special rules, and exceptions, see subsections (b) and (c) of section 6511 of the Internal Revenue Code. For rules as to time return is deemed filed and tax considered paid, see section 6513 of the Internal Revenue Code.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6511)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.262" NODE="27:2.0.1.4.7.4.205.103" TYPE="SECTION">
<HEAD>§ 70.262   Limitations on allowance of credits and refunds.</HEAD>
<P>(a) <I>Effect of filing claim.</I> Unless a claim for credit or refund of an overpayment is filed within the period of limitation prescribed in section 6511(a), no credit or refund shall be allowed or made after the expiration of such period.
</P>
<P>(b) <I>Limit on amount to be credited or refunded.</I> In the case of any tax (other than a tax payable by stamp):
</P>
<P>(1) If a return was filed, and a claim is filed within 3 years from the time the return was filed, the amount of the credit or refund shall not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of time for filing the return.
</P>
<P>(2) If a return was filed, and a claim is filed after the 3 year period described in paragraph (b)(1) of this section, but within 2 years from the time the tax was paid, the amount of the credit or refund shall not exceed the portion of the tax paid within the 2 years immediately preceding the filing of the claim.
</P>
<P>(3) If no return was filed, but a claim is filed, the amount of the credit or refund shall not exceed the portion of the tax paid within the 2 years immediately preceding the filing of the claim.
</P>
<P>(4) If no claim is filed, the amount of the credit or refund allowed or made shall not exceed the amount that would have been allowable under the preceding subparagraphs if a claim had been filed on the date the credit or refund is allowed.
</P>
<P>(c) <I>In the case of a tax payable by stamp.</I> (1) If a claim is filed, the amount of the credit or refund shall not exceed the portion of the tax paid within the 3 years immediately preceding the filing of the claim.
</P>
<P>(2) If no claim is filed, the amount of the credit or refund allowed or made shall not exceed the portion of the tax paid within the 3 years immediately preceding the allowance of the credit or refund. For provisions relating to redemption of unused stamps, see section 6805 of the Internal Revenue Code.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6511)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47648, Nov. 14, 1990; T.D. ATF-450, 66 FR 29028, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.263" NODE="27:2.0.1.4.7.4.205.104" TYPE="SECTION">
<HEAD>§ 70.263   Special rules applicable in case of extension of time by agreement.</HEAD>
<P>(a) <I>Scope.</I> If, within the period prescribed in section 6511(a) of the Internal Revenue Code for the filing of a claim for credit or refund, an agreement extending the period for assessment of a tax has been made in accordance with the provisions of section 6501(c)(4) of the Internal Revenue Code, the special rules provided in this section become applicable. This section shall not apply to any claim filed, or credit or refund allowed if no claim is filed, either (1) prior to the execution of an agreement extending the period in which assessment may be made, or (2) more than 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof.
</P>
<P>(b) <I>Period in which claim may be filed.</I> Claim for credit or refund of an overpayment may be filed, or credit or refund may be allowed if no claim is filed, at any time within which an assessment may be made pursuant to an agreement, or any extension thereof, under section 6501(c)(4), and for 6 months thereafter.
</P>
<P>(c) <I>Limit on amount to be credited or refunded.</I> (1) If a claim is filed within the time prescribed in paragraph (b) of this section, the amount of the credit or refund allowed or made shall not exceed the portion of the tax paid after the execution of the agreement and before the filing of the claim, plus the amount that could have been properly credited or refunded under the provisions of section 6511(b)(2) if a claim had been filed on the date of the execution of the agreement.
</P>
<P>(2) If no claim is filed, the amount of credit or refund allowed or made within the time prescribed in paragraph (b) of this section shall not exceed the portion of the tax paid after the execution of the agreement and before the making of the credit or refund, plus the amount that could have been properly credited or refunded under the provisions of section 6511(b)(2) if a claim had been filed on the date of the execution of the agreement.
</P>
<P>(d) <I>Effective date of agreement.</I> The agreement referred to in this section shall become effective when signed by the taxpayer and the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6511)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.264" NODE="27:2.0.1.4.7.4.205.105" TYPE="SECTION">
<HEAD>§ 70.264   Time return deemed filed and tax considered paid.</HEAD>
<P>For purposes of section 6511 of the Internal Revenue Code, a return filed before the last day prescribed by law or regulations for the filing thereof shall be considered as filed on such last day. For purposes of section 6511(b) (2) and (c), payment of any portion of the tax made before the last day prescribed for payment shall be considered made on such last day. An extension of time for filing a return or for paying any tax shall not be given any effect in determining under this section the last day prescribed for filing a return or paying any tax.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6513)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.265" NODE="27:2.0.1.4.7.4.205.106" TYPE="SECTION">
<HEAD>§ 70.265   Credits or refunds after period of limitation.</HEAD>
<P>(a) A refund of any portion of any internal revenue tax (or any interest, additional amount, addition to the tax, or assessable penalty) shall be considered erroneous and a credit of any such portion shall be considered void:
</P>
<P>(1) If made after the expiration of the period of limitation prescribed by section 6511 of the Internal Revenue Code for filing claim therefor, unless prior to the expiration of such period claim was filed, or
</P>
<P>(2) In the case of a timely claim, if the credit or refund was made after the expiration of the period of limitation prescribed by section 6532(a) for the filing of suit, unless prior to the expiration of such period, suit was begun.
</P>
<P>(b) For procedure by the United States to recover erroneous refunds, see sections 6532(b) and 7405 of the Internal Revenue Code.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6514)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.266" NODE="27:2.0.1.4.7.4.205.107" TYPE="SECTION">
<HEAD>§ 70.266   Credit against barred liability.</HEAD>
<P>Any credit against a liability in respect of any taxable year shall be void if the collection of such liability would be barred by the applicable statute of limitations at the time such credit is made.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6514)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="206" NODE="27:2.0.1.4.7.4.206" TYPE="SUBJGRP">
<HEAD>Transferees</HEAD>


<DIV8 N="§ 70.271" NODE="27:2.0.1.4.7.4.206.108" TYPE="SECTION">
<HEAD>§ 70.271   Procedure in the case of transferred assets.</HEAD>
<P>(a) <I>Method of collection.</I> (1) The liability, at law or in equity, of a transferee of property of any person liable in respect of any tax imposed under provisions of 26 U.S.C. enforced and administered by the Bureau, in any case where the liability of the transferee arises on the liquidation of a corporation or partnership, or a corporate reorganization within the meaning of 26 U.S.C. 368(a), shall be assessed against such transferee and paid and collected in the same manner and subject to the same provisions and limitations as in the case of the tax with respect to which such liability is incurred, except as hereinafter provided.
</P>
<P>(2) <I>Applicable provisions.</I> The provisions of 26 U.S.C. made applicable by 26 U.S.C. 6901(a) to the liability of a transferee referred to in paragraph (a)(1) of this section, include the provisions relating to:
</P>
<P>(i) Delinquency in payment after notice and demand and the amount of interest attaching because of such delinquency;
</P>
<P>(ii) The authorization of distraint and proceedings in court for collection; and
</P>
<P>(iii) The prohibition of claims and suits for refund.
</P>
<FP>For detailed provisions relating to assessments, collections, and refunds, see 26 U.S.C. chapters 63, 64, and 65, respectively.
</FP>
<P>(b) <I>Definition of transferee.</I> As used in this section, the term “transferee” includes the shareholder of a dissolved corporation, the assignee or donee of an insolvent person, the successor of a corporation, a party to a reorganization as defined in 26 U.S.C. 368, and all other classes of distributees.
</P>
<P>(c) <I>Period of limitations on assessment.</I> The period of limitations for assessment of the liability of a transferee is as follows:
</P>
<P>(1) <I>Initial transferee.</I> In the case of the liability of an initial transferee, 1 year after the expiration of the period of limitations for assessment against the transferor.
</P>
<P>(2) <I>Transferee of transferee.</I> In the case of the liability of a transferee of a transferee, 1 year after the expiration of the period of limitations for assessment against the preceding transferee, or 3 years after the expiration of the period of limitations for assessment against the taxpayer, whichever of such periods first expires.
</P>
<P>(3) <I>Court proceeding against taxpayer or last preceding transferee.</I> If, before the expiration of the period specified in paragraph (c)(1) or (2) of this section, (whichever is applicable), a court proceeding against the taxpayer or last preceding transferee for the collection of the tax or liability in respect thereof, respectively, has been begun within the period of limitation for the commencement of such proceeding, then within 1 year after the return of execution in such proceeding.
</P>
<P>(d) <I>Extension by agreement</I>—(1) <I>Extension of time for assessment.</I> The time prescribed by 26 U.S.C. 6901 for the assessment of the liability of a transferee may, prior to the expiration of such time, be extended for any period of time agreed upon in writing by the transferee and the appropriate TTB officer. The extension shall become effective when the agreement has been executed by both parties. The period agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
</P>
<P>(2) <I>Extension of times for credit or refund.</I> (i) For the purposes of determining the period of limitations on credit or refund to the transferee of overpayments made by such transferee or overpayments made by the taxpayer to which such transferee may be legally entitled to credit or refund, an agreement and any extension thereof referred to in paragraph (d)(1) of this section, shall be deemed an agreement and extension thereof for purposes of 26 U.S.C. 6511(c) (relating to limitations on credit or refund in case of extension of time by agreement).
</P>
<P>(ii) For the purpose of determining the limit specified in 26 U.S.C. 6511(c)(2) on the amount of the credit or refund, if the agreement is executed after the expiration of the period of limitations for assessment against the taxpayer with reference to whom the liability of such transferee arises, the periods specified in 26 U.S.C. 6511(b)(2) shall be increased by the period from the date of such expiration to the date the agreement is executed.
</P>
<P>(e) <I>Period of assessment against taxpayer.</I> For the purpose of determining the period of limitations for assessment against a transferee, if the taxpayer is deceased, or, in the case of a corporation, has terminated its existence, the period of limitations for assessment against the taxpayer shall be the period that would be in effect had the termination of existence not occurred.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6901)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47648, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="207" NODE="27:2.0.1.4.7.4.207" TYPE="SUBJGRP">
<HEAD>Bonds</HEAD>


<DIV8 N="§ 70.281" NODE="27:2.0.1.4.7.4.207.109" TYPE="SECTION">
<HEAD>§ 70.281   Form of bond and security required.</HEAD>
<P>(a) <I>In general.</I> Any person required to furnish a bond under the provisions of this part shall execute such bond:
</P>
<P>(1) On the appropriate form prescribed by the Bureau and
</P>
<P>(2) With satisfactory surety.
</P>
<P>For provisions as to what will be considered “satisfactory surety”, see paragraph (b) of this section. The bonds referred to in this paragraph shall be drawn in favor of the United States.
</P>
<P>(b) <I>Satisfactory surety</I>—(1) <I>Approved surety company or bonds or notes of the United States.</I> For purposes of paragraph (a) of this section, a bond shall be considered executed with satisfactory surety if:
</P>
<P>(i) It is executed by a surety company holding a certificate of authority from the Secretary as an acceptable surety on Federal bonds; or
</P>
<P>(ii) It is secured by bonds or notes of the United States as provided in by 31 U.S.C. 9303.
</P>
<P>(2) <I>Other surety.</I> Unless otherwise expressly provided in 26 U.S.C. or this part, a bond may, in the discretion of the appropriate TTB officer, be considered executed with satisfactory surety if, in lieu of being executed or secured as provided in paragraph (b)(1) of this section, it is:
</P>
<P>(i) Executed by a corporate surety (other than a surety company) provided such corporate surety establishes that it is within its corporate powers to act as surety for another corporation or an individual;
</P>
<P>(ii) Executed by two or more individual sureties, provided such individual sureties meet the conditions contained in paragraph (b)(3) of this section;
</P>
<P>(iii) Secured by a mortgage on real or personal property;
</P>
<P>(iv) Secured by a certified, cashier's, or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or any State, Territory, or possession of the United States, or by a U.S. postal, bank, express or telegraph money order;
</P>
<P>(v) Secured by corporate bonds or stocks, or by bonds issued by a State or political subdivision thereof, of recognized stability; or
</P>
<P>(vi) Secured by any other acceptable collateral. Collateral shall be deposited with the appropriate TTB officer or, in that officer's discretion, with a responsible financial institution acting as escrow agent.
</P>
<P>(3) <I>Conditions to be met by individual sureties.</I> If a bond is executed by two or more individual sureties, the following conditions must be met by each such individual surety:
</P>
<P>(i) The surety must reside within the State in which the principal place of business or legal residence of the primary obligor is located;
</P>
<P>(ii) The surety must have property subject to execution of a current market value, above all encumbrances, equal to at least the penalty of the bond;
</P>
<P>(iii) All real property which the surety offers as security must be located in the State in which the principal place of business or legal residence of the primary obligor is located;
</P>
<P>(iv) The surety must agree not to mortgage, or otherwise encumber, any property offered as security while the bond continues in effect without first securing the permission of the officer with whom the bond is filed; and
</P>
<P>(v) The surety must file with the bond, and annually thereafter so long as the bond continues in effect, an affidavit as to the adequacy of the security, executed on the appropriate form furnished by the appropriate TTB officer.
</P>
<FP>Partners may not act as sureties upon bonds of their partnership. Stockholders of a corporate principal may be accepted as sureties provided their qualifications as such are independent of their holdings of the stock of the corporation.
</FP>
<P>(4) <I>Adequacy of surety.</I> No surety or security shall be accepted if it does not adequately protect the interest of the United States.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7101)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47649, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.282" NODE="27:2.0.1.4.7.4.207.110" TYPE="SECTION">
<HEAD>§ 70.282   Single bond in lieu of multiple bonds.</HEAD>
<P>In the case of bonds required under this part, a single bond will not be accepted in lieu of two or more bonds.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7102)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47650, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="208" NODE="27:2.0.1.4.7.4.208" TYPE="SUBJGRP">
<HEAD>Miscellaneous Provisions</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>Sections 70.301 through 70.306 added by T.D. ATF-301, 55 FR 47650, Nov. 14, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 70.301" NODE="27:2.0.1.4.7.4.208.111" TYPE="SECTION">
<HEAD>§ 70.301   Reproduction of returns and other documents.</HEAD>
<P>(a) <I>In general.</I> The appropriate TTB officer may contract with any Federal agency or any person to have such agency or person process films and other photoimpressions of any return, statement, document, or of any card, record, or other matter required under the provisions of 26 U.S.C. enforced and administered by the Bureau, and make reproductions from such films and photoimpressions.
</P>
<P>(b) <I>Safeguards</I>—(1) <I>By private contractor.</I> Any person entering into a contract with the Bureau for the performance of any of the services described in paragraph (a) of this section shall agree to comply, and to assume responsibility for compliance by that person's employees, with the following requirements:
</P>
<P>(i) The films or photoimpressions, and reproductions made therefrom, shall be used only for the purpose of carrying out the provisions of the contract, and information contained in such material shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of the contract;
</P>
<P>(ii) All the services shall be performed under the supervision of the person with whom the contract is made or that person's responsible employees;
</P>
<P>(iii) All material received for processing and all processed and reproduced material shall be kept in a locked and fireproof compartment in a secure place when not being worked upon;
</P>
<P>(iv) All spoilage of reproductions made from the film or photoimpressions supplied to the contractor shall be destroyed, and a statement under the penalties of perjury shall be submitted to the Bureau that such destruction has been accomplished; and
</P>
<P>(v) All film, photoimpressions, and reproductions made therefrom, shall be transmitted to the Bureau by personal delivery, first-class mail, parcel post, or express.
</P>
<P>(2) <I>By Federal agency.</I> Any Federal agency entering into a contract with the Bureau for the performance of any services described in paragraph (a) of this section, shall treat as confidential all material processed or reproduced pursuant to such contract.
</P>
<P>(3) <I>Inspection.</I> The Bureau shall have the right to send its officers and employees into the office and plants of Federal agencies and other contractors for inspection of the facilities and operations provided for the performance of any work contracted or to be contracted for under this section.
</P>
<P>(4) <I>Criminal sanctions.</I> For penalty provisions relating to the unauthorized use and disclosure of information in violation of the provisions of this section, <I>see</I> 26 U.S.C. 7213(c).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7513)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.302" NODE="27:2.0.1.4.7.4.208.112" TYPE="SECTION">
<HEAD>§ 70.302   Fees and costs for witnesses.</HEAD>
<P>(a) <I>Introduction.</I> Title 26 U.S.C. 7610 provides that the Bureau may make payments to certain persons who are summoned to give information to the Bureau under 26 U.S.C. 7602 and § 70.22 of this part. Under 26 U.S.C. 7610 witnesses generally will not be reimbursed for actual expenses incurred but instead will be paid in accordance with the payment rates established by regulations. Paragraph (b) of this section contains elaborations of certain terms found in 26 U.S.C. 7610 and definitions of other terms used in the regulations under 26 U.S.C. 7610 (a) and (b); and paragraphs (c) and (d) of this section contain rules and rates applicable to payments under 26 U.S.C. 7610.
</P>
<P>(b) <I>Definitions</I>—(1) <I>Directly incurred costs.</I> Directly incurred costs are costs incurred solely, immediately, and necessarily as a consequence of searching for, reproducing, or transporting records in order to comply with a summons. They do not include a proportionate allocation of fixed costs, such as overhead, equipment depreciation, etc. However, where a third party's records are stored at an independent storage facility that charges the third party a search fee to search for, reproduce, or transport particular records requested, these fees are considered to be directly incurred by the summoned third party.
</P>
<P>(2) <I>Reproduction cost.</I> Reproduction costs are costs incurred in making copies or duplicates of summoned documents, transcripts, and other similar material.
</P>
<P>(3) <I>Search costs.</I> Search costs include only the total cost of personnel time directly incurred in searching for records or information and the cost of retrieving information stored by computer. Salaries of persons locating and retrieving summoned material are not included in search costs. Also, search costs do not include salaries, fees, or similar expenditures for analysis of material or for managerial or legal advice, expertise, or research, or time spent for these activities.
</P>
<P>(4) <I>Third party.</I> A third party is any person served with a summons, other than a person with respect to whose liability a summons is issued, or an officer, employee, agent, accountant, or attorney of that person.
</P>
<P>(5) <I>Third party records.</I> Third party records are books, papers, records, or other data in which the person with respect to whose liability a summons is issued does not have a proprietary interest at the time the summons is served.
</P>
<P>(6) <I>Transportation costs.</I> Transportation costs include only costs incurred to transport personnel to search for records or information requested and costs incurred solely by the need to transport the summoned material to the place of examination. These costs do not include the cost of transporting the summoned witness for appearance at the place of examination. See paragraph (c)(2) of this section for payment of travel expenses.
</P>
<P>(c) <I>Conditions and rates of payments</I>—(1) <I>Basis for payment.</I> Payment for search, reproduction, and transportation costs will be made only to third parties served with a summons to produce third party records or information and only for material requested by the summons. Payment will be made only for those costs both directly incurred and reasonably necessary. No payment will be made until the third party has satisfactorily complied with the summons and has submitted an itemized bill or invoice showing specific details concerning the costs to the Bureau employee before whom the third party was summoned. If a third party charges any other person for any cost for which the third party is seeking payment from the Bureau, the amount charged to the other person must be subtracted from the amount the Bureau must pay.
</P>
<P>(2) <I>Payment rates.</I> The following rates are established.
</P>
<P>(i) <I>Search costs.</I> (A) For the total amount of personnel time required to locate records or information, $8.50 per person hour.
</P>
<P>(B) For retrieval of information stored by computer in the format in which it is normally produced, actual costs, based on computer time and necessary supplies, except that personnel time for computer search is payable only under paragraph (c)(2)(i)(A) of this section.
</P>
<P>(ii) <I>Reproduction costs.</I> (A) For copies of documents $.20 per page.
</P>
<P>(B) For photographers, films and other materials, actual cost, except that personnel time is payable only under paragraph (a)(2)(i)(A) of this section.
</P>
<P>(iii) <I>Transportation costs.</I> For transportation costs, actual cost, except that personnel time is payable only under paragraph (c)(2)(i)(A) of this section.
</P>
<P>(d) <I>Appearance fees and allowances</I>—(1) <I>In general.</I> Under 26 U.S.C. 7610(a)(1) and this paragraph, the Bureau shall pay a summoned person certain fees and allowances. No payments will be made until after the party summoned appears and has submitted any necessary receipts or other evidence of costs to the Bureau employee before whom the person was summoned.
</P>
<P>(2) <I>Attendance fees.</I> A summoned person shall be paid an attendance fee for each day's attendance. A summoned person shall also be paid the attendance fee for the time necessarily occupied in going to and returning from the place of attendance at the beginning and end of the attendance or at any time during the attendance. The attendance fee is the higher of $30 per day or the amount paid under 28 U.S.C. 1821(b) to witnesses in attendance at courts of the United States at the time of the summoned person's appearance.
</P>
<P>(3) <I>Travel allowances.</I> A summoned person who travels by common carrier shall be paid for the actual expenses of travel on the basis of the means of transportation reasonably utilized and the distance necessarily traveled to and from the summoned person's residence by the shortest practical route in going to and returning from the place of attendance. Such a summoned person shall utilize a common carrier at the most economical rate reasonably available. A receipt or other evidence of actual cost shall be furnished. A travel allowance equal to the mileage allowance which the Administrator of General Services has prescribed, under 5 U.S.C. 5704, for official travel of employees of the Federal Government shall be paid to each summoned person who travels by privately owned vehicle. Computation of mileage under this paragraph shall be made on the basis of a uniform table of distances adopted by the Administrator of General Services. Toll charges for toll roads, bridges, tunnels and ferries, taxicab fares between places of lodging and carrier terminals, and parking fees (upon presentation of a valid parking receipt) shall be paid in full to a summoned person incurring those expenses.
</P>
<P>(4) <I>Subsistence allowances.</I> A subsistence allowance shall be paid to a summoned person (other than a summoned person who is incarcerated) when an overnight stay is required at the place of attendance because the place is so far removed from the residence of the summoned person as to prohibit return thereto from day to day. A subsistence allowance for a summoned person shall be paid in an amount not to exceed the maximum allowance prescribed by the Administrator of General Services, under 5 U.S.C. 5702(a), for official travel in the area of attendance by employees of the Federal Government. An alien who has been paroled into the United States by the Attorney General, under 8 U.S.C. 1182(d)(5)(A), or an alien who either has admitted belonging to a class of aliens who are deportable or has been determined under 8 U.S.C. 1252(b) to be deportable, shall be ineligible to receive the fees or allowances provided for under 26 U.S.C. 7610(a)(1).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7610)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.303" NODE="27:2.0.1.4.7.4.208.113" TYPE="SECTION">
<HEAD>§ 70.303   Rules and regulations.</HEAD>
<P>(a) <I>Issuance.</I> The Administrator, with the approval of the Secretary, shall prescribe all needful rules and regulations for the enforcement of provisions of 26 U.S.C. enforced and administered by the Bureau (except where this authority is expressly given by 26 U.S.C. to any other person other than an officer or employee of the Treasury Department), including all rules and regulations as may be necessary by reason of any alteration of law in relation to taxes within the Administrator's jurisdiction.
</P>
<P>(b) <I>Retroactivity.</I> The Administrator, with the approval of the Secretary, may prescribe the extent, if any, to which any regulation or Treasury decision relating to the laws within the Administrator's jurisdiction shall be applied without retroactive effect. The Administrator may prescribe the extent, if any, to which any ruling relating to the laws within the Administrator's jurisdiction, issued by or pursuant to authorization from the Administrator, shall be applied without retroactive effect.
</P>
<P>(c) <I>Preparation and distribution of regulations, forms, stamps, and other matters.</I> The Administrator, under the direction of the Secretary, shall prepare and distribute all the instructions, regulations, directions, forms, blanks, stamps, and other matters pertaining to the assessment and collection of taxes within the Administrator's jurisdiction.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7805)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.304" NODE="27:2.0.1.4.7.4.208.114" TYPE="SECTION">
<HEAD>§ 70.304   Place for filing documents other than returns.</HEAD>
<P>(a) If a document, other than a return, is required to be filed with a TTB office, such document may be hand delivered to such office. 
</P>
<P>(b) For purposes of this section, a return or document will be considered to be hand carried if it is brought to a TTB supervisor of the TTB office by the person required to file the return or other document, or by the person's agent. Examples of persons who will be considered to be agents, for purposes of the preceding sentence, are: Members of the taxpayer's family, an employee of the taxpayer, the taxpayer's attorney, accountant, or tax advisor, and messengers employed by the taxpayer. A return or document will not be considered to be hand carried if it is sent to the Bureau through the U.S. Mail.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6091)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-305, 55 FR 47650, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.305" NODE="27:2.0.1.4.7.4.208.115" TYPE="SECTION">
<HEAD>§ 70.305   Timely mailing treated as timely filing.</HEAD>
<P>(a) <I>General rule.</I> Title 26 U.S.C. 7502 provides that, if the requirements of such section are met, a document shall be deemed to be filed on the date of the postmark stamped on the cover in which such document was mailed. Thus, if the cover containing such document bears a timely postmark, the document will be considered filed timely although it is received after the last date, or the last day of the period, prescribed for filing such document. Title 26 U.S.C. 7502 is applicable only to those documents which come within the definition of such term provided by paragraph (b) of this section and only if the document is mailed in accordance with paragraph (c) of this section and is delivered in accordance with paragraph (d) of this section.
</P>
<P>(b) <I>Document defined.</I> The term <I>document,</I> as used in this section, means any return, claim, statement, or other document required to be filed within a prescribed period or on or before a prescribed date under authority of any provisions of 26 U.S.C. enforced and administered by the Bureau.
</P>
<P>(c) <I>Mailing requirements.</I> (1) Title 26 U.S.C. 7502 is not applicable unless the document is mailed in accordance with the following requirements:
</P>
<P>(i) The document must be contained in an envelope or other appropriate wrapper, properly addressed to the agency, officer, or office with which the document is required to be filed.
</P>
<P>(ii) The document must be deposited within the prescribed time in the mail in the United States with sufficient postage prepaid. For this purpose, a document is deposited in the mail in the United States when it is deposited with the domestic mail service of the U.S. Postal Service, as defined by the postal regulations (39 CFR Part 2). Title 26 U.S.C. 7502 does not apply to any document which is deposited with the mail service of any other country.
</P>
<P>(iii)(A) If the postmark on the envelope or wrapper is made by the U.S. Postal Service, such postmark must bear a date on or before the last date, or the last day of the period, prescribed for filing the document. If the postmark does not bear a date on or before the last date, or the last day of the period, prescribed for filing the document, the document will be considered not to be filed timely, regardless of when the document is deposited in the mail. Accordingly, the sender who relies upon the applicability of 26 U.S.C. 7502 assumes the risk that the postmark will bear a date on or before the last date, or the last day of the period, prescribed for filing the document, but see paragraph (c)(2) of this section, with respect to the use of registered mail or certified mail to avoid this risk. If the postmark on the envelope or wrapper is not legible, the person who is required to file the document has the burden of proving the time when the postmark was made. Furthermore, in case the cover containing a document bearing a timely postmark made by the U.S. Postal Service is received after the time when a document postmarked and mailed at such time would ordinarily be received, the sender may be required to prove that it was timely mailed.
</P>
<P>(B) If the postmark on the envelope or wrapper is made other than by the U.S. Postal Service, the postmark so made must bear a date on or before the last date, or the last day of the period, prescribed for filing the document, and the document must be received by the agency, officer, or office with which it is required to be filed not later than the time when a document contained in an envelope or other appropriate wrapper which is properly addressed and mailed and sent by the same class of mail would ordinarily be received if it were postmarked at the same point of origin by the U.S. Postal Service on the last date, or the last day of the period, prescribed for filing the document. However, in case the document is received after the time when a document so mailed and so postmarked by the U.S. Postal Service would ordinarily be received, such document will be treated as having been received at the time when a document so mailed and so postmarked would ordinarily be received, if the person who is required to file the document establishes that it was actually deposited in the mail before the last collection of the mail from the place of deposit which was postmarked (except for the metered mail) by the U.S. Postal Service on or before the last date, or the last day of the period, prescribed for filing the document, that the delay in receiving the document was due to a delay in the transmission of the mail, and the cause of such delay. If the envelope has a postmark made by the U.S. Postal Service in addition to the postmark not so made, the postmark which was not made by the U.S. Postal Service shall be disregarded, and whether the envelope was mailed in accordance with this section shall be determined solely by applying the rules of paragraph (c)(1)(iii)(A) of this section.
</P>
<P>(2) If the document is sent by U.S. registered mail, the date of registration of the document shall be treated as the postmark date. If the document is sent by U.S. certified mail and the sender's receipt is postmarked by the postal employee to whom such document is presented, the date of the U.S. postmark on such receipt shall be treated as the postmark date of the document. Accordingly, the risk that the document will not be postmarked on the day that it is deposited in the mail may be overcome by the use of registered mail or certified mail.
</P>
<P>(3) As used in this section, the term “the last date, or the last day of the period, prescribed for filing the document” includes any extension of time granted for such filing. Except as provided in 26 U.S.C. 5061 for the filing of returns and payment of a tax under 26 U.S.C. subtitle E, when the last date, or the last day of the period, prescribed for filing the document falls on a Saturday, Sunday, or legal holiday, 26 U.S.C. 7503 is also applicable, so that, in applying the rules of this paragraph, the next succeeding day which is not a Saturday, Sunday, or legal holiday, shall be treated as the last date, or the last day of the period, prescribed for filing the document.
</P>
<P>(d) <I>Delivery.</I> (1) Title 26 U.S.C. 7502 is not applicable unless the document is delivered by U.S. mail to the agency, officer, or office with which it is required to be filed. However, if the document is sent by registered mail or certified mail, proof that the document was properly registered or that a postmarked certified mail sender's receipt was properly issued therefor, and that the envelope or wrapper was properly addressed to such agency, officer or office shall constitute prima facie evidence that the document was delivered to such agency, officer or office.
</P>
<P>(2) Title 26 U.S.C. 7502 is applicable only when the document is delivered after the last date, or the last day of the period, prescribed for filing the document.
</P>
<P>(e) <I>Exceptions.</I> This section shall not apply with respect to:
</P>
<P>(1) The filing of a document in, or the making of a payment to, any court,
</P>
<P>(2) Currency or other medium of payment unless actually received and accounted for, or
</P>
<P>(3) Returns, claims, statements, or other documents, or payments, which are required under any provision of 26 U.S.C. enforced and administered by the Bureau or the regulations thereunder to be delivered by any method other than by mailing.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5061 and 7503)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.306" NODE="27:2.0.1.4.7.4.208.116" TYPE="SECTION">
<HEAD>§ 70.306   Time for performance of acts other than payment of tax or filing of any return when the last day falls on Saturday, Sunday, or legal holiday.</HEAD>
<P>(a) <I>In general.</I> Title 26 U.S.C. 7503 provides that when the last day prescribed under provisions of 26 U.S.C. enforced and administered by the Bureau, for the performance of any act falls on a Saturday, Sunday, or legal holiday, such act shall be considered performed timely if performed on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For this purpose, any authorized extension of time shall be included in the determining of the last day for performance of any act. Title 26 U.S.C. 7503 is not applicable to the filing of returns and payment of tax under 26 U.S.C. subtitle E. Title 26 U.S.C. 7503 is applicable only in case an act is required under authority of any provisions of 26 U.S.C. enforced and administered by the Bureau to be performed on or before a prescribed date or within a prescribed period. Title 26 U.S.C. 7503 applies to acts to be performed by the taxpayer (such as the filing of a claim for credit or refund of tax) and acts to be performed by the appropriate TTB officer, (such as, the giving of any notice with respect to, or making any demand for the payment of, any tax; the assessment or collection of any tax). For rules concerning the payment of any tax or the filing of any return required under the authority of 26 U.S.C. 4181 and 4182 relating to firearms and ammunition or subtitle E relating to alcohol, tobacco products, and cigarette papers and tubes, see 26 U.S.C. 5061, 5703, and 6302 and the regulations covering the specific commodity.
</P>
<P>(b) <I>Legal holidays.</I> (1) For the purpose of 26 U.S.C. 7503, the term “legal holiday” includes the legal holidays in the District of Columbia. Such legal holidays found in 5 U.S.C. 6103(a), as enacted and made effective by the Act of November 2, 1983 (97 Stat. 917), are:
</P>
<P>(i) January 1, New Year's Day,
</P>
<P>(ii) Third Monday in January, Birthday of Martin Luther King, Jr.,
</P>
<P>(iii) January 20, when such day is Inauguration Day,
</P>
<P>(iv) Third Monday in February, Washington's Birthday,
</P>
<P>(v) Last Monday in May, Memorial Day,
</P>
<P>(vi) July 4, Independence Day,
</P>
<P>(vii) First Monday in September, Labor Day,
</P>
<P>(viii) Second Monday in October, Columbus Day,
</P>
<P>(ix) November 11, Veterans' Day,
</P>
<P>(x) Fourth Thursday in November, Thanksgiving Day, and
</P>
<P>(xi) December 25, Christmas Day.
</P>
<FP>When a legal holiday in the District of Columbia falls on a Sunday, the next day is a legal holiday in the District of Columbia. For the purpose of 26 U.S.C. 7503, when a legal holiday in the District of Columbia (other than Inauguration Day) falls on a Saturday it shall be treated as falling on the preceding Friday.
</FP>
<P>(2) In the case of any statement or other document required to be filed, or any other act required under the authority of provisions of 26 U.S.C. enforced and administered by the Bureau to be performed at any office of the Bureau or any other office or agency of the United States, located outside the District of Columbia, the term “legal holiday” includes, in addition to the legal holidays enumerated in paragraph (b)(1) of this section, any statewide legal holiday of the State where the act is required to be performed. If the act is performed in accordance with law at an office of the Bureau or any other office or agency of the United States located in a Territory or possession of the United States, the term “legal holiday” includes, in addition to the legal holidays described in paragraph (b)(1) of this section, any legal holiday which is recognized throughout the Territory or possession in which the office is located.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5061 and 7503)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-365, 60 FR 33674, June 28, 1995; T.D. ATF-450, 66 FR 29028, May 29, 2001; T.D. TTB-89, 76 FR 3515, Jan. 20, 2011; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="209" NODE="27:2.0.1.4.7.4.209" TYPE="SUBJGRP">
<HEAD>General Provisions Relating to Stamps, Marks or Labels</HEAD>


<DIV8 N="§ 70.311" NODE="27:2.0.1.4.7.4.209.117" TYPE="SECTION">
<HEAD>§ 70.311   Authority for establishment, alteration, and distribution of stamps, marks, or labels.</HEAD>
<P>The appropriate TTB officer may establish, and from time to time alter, renew, replace, or change the form, style, character, material, and device of any stamp, mark, or label under any provision of the law relating to Subtitle E of the Internal Revenue Code (or to any provision of Subtitle F which relates to Subtitle E).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6801)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="210" NODE="27:2.0.1.4.7.4.210" TYPE="SUBJGRP">
<HEAD>Registration</HEAD>


<DIV8 N="§ 70.321" NODE="27:2.0.1.4.7.4.210.118" TYPE="SECTION">
<HEAD>§ 70.321   Registration of persons paying a special tax.</HEAD>
<P>(a) <I>Persons required to register.</I> Every person engaged in a trade or business in respect of which a special tax is imposed by one of the following sections of the Internal Revenue Code is required to register with the Alcohol and Tobacco Tax and Trade Bureau.
</P>
<P>(1)-(5) [Reserved]
</P>
<P>(6) Section 5731 (relating to special tax on manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors); or
</P>
<P>(7) Section 5802 (relating to importers, manufacturers and dealers of National Firearms Act weapons).
</P>
<P>(b) <I>Procedure for registration.</I> The registration required of a person by reason of the person being engaged in a trade or business, in respect of which one of the special taxes listed in paragraph (a) of this section is imposed, shall be accomplished by timely executing and filing, in accordance with the instructions relating thereto, TTB Form 5630.5, Special Tax Registration and Return.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5802, 7011)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-271, 53 FR 17549, May 17, 1988. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47653, Nov. 14, 1990; T.D. ATF-379, 61 FR 31426, June 20, 1996; T.D. TTB-79, 74 FR 37424, July 28, 2009]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="211" NODE="27:2.0.1.4.7.4.211" TYPE="SUBJGRP">
<HEAD>Crimes, Other Offenses and Forfeitures</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>Sections 70.331 through 70.333 added by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 70.331" NODE="27:2.0.1.4.7.4.211.119" TYPE="SECTION">
<HEAD>§ 70.331   Fraudulent returns, statements, or other documents.</HEAD>
<P>Any person who willfully delivers or discloses to any officer or employee of the Bureau any list, return, account, statement, or other document, known by him to be fraudulent or to be false as to any material matter, shall be fined not more than $10,000 ($50,000 in the case of a corporation) or imprisoned not more than 1 year, or both.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7207)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.332" NODE="27:2.0.1.4.7.4.211.120" TYPE="SECTION">
<HEAD>§ 70.332   Unauthorized use or sale of stamps.</HEAD>
<P>Any person who buys, sells, offers for sale, uses, transfers, takes or gives in exchange, or pledges or gives in pledge, except as authorized in the Internal Revenue Code or in regulations made pursuant thereto, any stamp, coupon, ticket, book, or other device prescribed by the Administrator under provisions of 26 U.S.C. enforced and administered by the Bureau for the collection or payment of any tax imposed thereunder, shall, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 6 months, or both.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7209)


</SECAUTH>
</DIV8>


<DIV8 N="§ 70.333" NODE="27:2.0.1.4.7.4.211.121" TYPE="SECTION">
<HEAD>§ 70.333   Offenses by officers and employees of the United States.</HEAD>
<P>Any officer or employee of the United States acting in connection with any provisions of 26 U.S.C. enforced and administered by the Bureau required to make a written report under the provisions of 26 U.S.C. 7214(a)(8) shall submit such report to the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7214)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:2.0.1.4.7.5" TYPE="SUBPART">
<HEAD>Subpart E—Procedural Rules Relating to Alcohol, Tobacco, Firearms, and Explosives</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-251, 52 FR 19325, May 22, 1987, unless otherwise noted. Redesignated by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990.


</PSPACE></SOURCE>

<DIV7 N="212" NODE="27:2.0.1.4.7.5.212" TYPE="SUBJGRP">
<HEAD>Provisions Relating to Distilled Spirits, Wines, and Beer</HEAD>


<DIV8 N="§ 70.411" NODE="27:2.0.1.4.7.5.212.1" TYPE="SECTION">
<HEAD>§ 70.411   Imposition of taxes, qualification requirements, and regulations.</HEAD>
<P>(a) <I>Imposition of taxes.</I> Subchapter A of Chapter 51 of the IRC imposes taxes on distilled spirits (including alcohol), wine and beer. 
</P>
<P>(b) <I>Qualification requirements.</I> Distillers, winemakers, brewers, warehousemen, rectifiers, bottlers, dealers in specially denatured alcohol, users of tax-free and specially denatured alcohol, and wholesalers and importers of liquors, are required to qualify with TTB usually by filing notice or application and bond with, and procuring permit from, the appropriate TTB officer. Dealers in alcohol products fit for beverage use and manufacturers of nonbeverage products who claim drawback under section 5114 of the Internal Revenue Code must register. Detailed information respecting such qualification and registration, including the forms to be used and the procedure to be followed, is contained in the respective regulations described in paragraph (c) of this section.
</P>
<P>(c) <I>Regulations.</I> The procedural requirements with respect to matters relating to distilled spirits, wines, and beer which are within the jurisdiction of TTB are published in the regulations described in this paragraph. These regulations contain full information as to the general course and method by which the functions concerning liquors are channeled and determined, including the nature and requirements of formal and informal procedures, the forms, records, reports, and other documents required, and the contents of applications, notices, registrations, permits, bonds, and other documents. Forms prescribed by this part are available as provided in § 70.2(b). The following is a brief description of the several regulations arranged according to the principal subjects and operations concerned:
</P>
<P>(1) <I>Establishment and operation of distilled spirits plants.</I> Part 19 of title 27 CFR contains the regulations relating to the location, qualification, construction, arrangement, equipment, and operations (including activities incident thereto) of distilled spirits plants for the production and/or warehousing (including denaturation), and bottling (including bottling in bond) of distilled spirits. Part 19 also contains the regulations relating to distilled spirits for fuel use and the production of vinegar by the vaporizing process.
</P>
<P>(2) <I>Miscellaneous liquor transactions.</I> Part 29 of 27 CFR contains miscellaneous regulations relative to the manufacture, removal, and use of stills and condensers, and to the notice, registration, and recordkeeping requirements therefor.
</P>
<P>(3) [Reserved]
</P>
<P>(4) <I>Gauging of distilled spirits.</I> Part 30 of title 27 CFR contains the regulations that prescribe the gauging instruments, and methods or techniques to be used in measuring distilled spirits (including denatured spirits). Tables are provided for use in making the necessary computation from gauge data.
</P>
<P>(5) <I>Rules of practice in permit proceedings.</I> Part 71 of title 27 CFR contains the rules governing the procedure and practice in connection with the disapproval of applications for basic permits, and for the issuance of citations for the suspension, revocation, and annulment of such permits under sections 3 and 4 of the Federal Alcohol Administration Act (27 U.S.C. 201 <I>et seq.</I>), and disapproval, suspension, and revocation of industrial use, operating, withdrawal, and tobacco permits under the Internal Revenue Code. Such rules also govern, insofar as applicable, any adversary proceeding involving adjudication required by statute to oe determined on the record, after opportunity for hearing, under laws administered by the Alcohol and Tobacco Tax and Trade Bureau.
</P>
<P>(6) <I>Basic permit requirements under the Federal Alcohol Administration Act.</I> 27 CFR part 1, subpart C, issued pursuant to the Federal Alcohol Administration Act, as amended, contains the requirements relative to the issuance under the Act of basic permits to producers, rectifiers, blenders, bottlers, warehousemen, importers, and wholesalers of distilled spirits, wine, or beer, and the amendment, duration, revocation, suspension, or annulment of such permits.
</P>
<P>(7) <I>Bulk sales and bottling of distilled spirits.</I> 27 CFR part 1, subpart E, issued under the Federal Alcohol Administration Act, as amended, contains the requirements relative to bulk sales and bottling of distilled spirits under the Federal Alcohol Administration Act, including the terms of warehouse receipts for distilled spirits in bulk.
</P>
<P>(8) <I>Labeling and advertising of distilled spirits.</I> 27 CFR part 5, issued under the Federal Alcohol Administration Act, as amended, contains the requirements relative to the labeling and advertising of distilled spirits under the Federal Alcohol Administration Act, including standards of identity for distilled spirits, standards of fill for bottles of distilled spirits, withdrawal of bottled imported distilled spirits from customs custody, and the issuance of certificates of label approval and certificates of exemption from label approval.
</P>
<P>(9) <I>American viticultural areas.</I> Part 9 of title 27 CFR contains the regulations that relate to American viticultural areas. The viticultural areas described in these regulations are approved for use as appellations of origin in accordance with 27 CFR part 4.
</P>
<P>(10) <I>Production and removal of wine.</I> Part 24 of title 27 CFR contains the regulations relative to the establishment and operation of bonded wine cellars, including bonded wineries, for the production, cellar treatment, and storage of wines, including amelioration, sweetening, addition of volatile fruit flavor concentrates, addition of wine spirits (including distillates containing aldehydes), blending, and other cellar treatment; removals; taxpayment; return of taxpaid wine; use of wine for distilling material and manufacture of vinegar; and record and report requirements.
</P>
<P>(11) <I>Bottling or Packaging of taxpaid wine.</I> Part 24 of title 27 CFR contains the regulations relative to the establishment, qualification, and operations of taxpaid wine bottling houses on premises other than those of a plant operated under part 19 of title 27 CFR, and to the bottling and packaging of taxpaid United States and foreign wines at such premises.
</P>
<P>(12) <I>Nonindustrial use of distilled spirits and wine.</I> 27 CFR part 1, subpart D, issued under the Federal Alcohol Administration Act, as amended, specifies what uses of distilled spirits and wine are considered “nonindustrial,” as that term is used in section 17 of the Federal Alcohol Administration Act.
</P>
<P>(13) <I>Labeling and advertising of wine.</I> 27 CFR part 4, issued under the Federal Alcohol Administration Act, as amended, contains the requirements relative to the labeling and advertising of wine under the Federal Alcohol Administration Act, including standards of identity for wine, standards of fill for containers of wine, the withdrawal of imported wine from customs custody, and the issuance of certificates of label approval and certificates of exemption from label approval.
</P>
<P>(14) <I>Establishment and operations of breweries and experimental breweries.</I> Part 25 of title 27 CFR contains the regulations relating to the production (including concentration and reconstitution incident thereto) and removal of beer and cereal beverages. The regulations cover the location, construction, equipment, and operations of breweries; and the qualification of such establishments, including the ownership, control, and management thereof, and the establishment and operations of experimental breweries.
</P>
<P>(15) <I>Labeling and advertising of malt beverages.</I> 27 CFR part 7, issued under the Federal Alcohol Administration Act, as amended, contains the requirements relative to the labeling and advertising of malt beverages (beer) under the Federal Alcohol Administration Act, including withdrawal of imported malt beverages from customs custody, and the issuance of certificates of label approval.
</P>
<P>(16) <I>Liquor dealers.</I> Part 31 of title 27 CFR contains the regulations relative to the registration requirement imposed on wholesale and retail dealers in liquors and wholesale and retail dealers in beer; restrictions on purchases of distilled spirits; reuse or refilling of liquor bottles; sale or possession of refilled or used liquor bottles; repackaging of alcohol for industrial use; recordkeeping and reporting requirements; and provisions relating to entry of premises and inspection of records.
</P>
<P>(17) <I>Drawback of tax on spirits used in nonbeverage products.</I> Part 17 of title 27 CFR contains the regulations which relate to obtaining drawback of internal revenue tax on distilled spirits used in the manufacture or production of medicines, medicinal preparations, food products, flavors, or flavoring extracts, which are unfit for beverage purposes.
</P>
<P>(18) <I>Production of volatile fruit-flavor concentrates.</I> Part 18 of title 27 CFR contains the regulations relating to the manufacture, removal, sale, storage, transfer in bond, transportation, recordkeeping and reporting requirements, and use of volatile fruit flavor concentrates. It includes provisions regarding the location, qualification, use, and operations of concentrate plants.
</P>
<P>(19) <I>Tied-House.</I> 27 CFR part 6, issued under the Federal Alcohol Administration Act, as amended, specifies practices which are prohibited by subsection (b) of section 5 of the Act and provides the exception to these prohibitions. This part applies only to transactions between industry members and retailers.
</P>
<P>(20) <I>Exclusive outlets.</I> 27 CFR part 8, issued under the Federal Alcohol Administration Act, as amended, specifies practices which are prohibited by subsection (a) of section 5 of the Act. This part applies only to transactions between industry members and retailers.
</P>
<P>(21) <I>Commercial bribery.</I> 27 CFR part 10, issued under the Federal Alcohol Administration Act, as amended, specifies practices which are prohibited by subsection (c) of section 5 of the Act. This part applies to transactions between industry members and employees, officers, or representatives of trade buyers.
</P>
<P>(22) <I>Consignment sales.</I> 27 CFR part 11, issued under the Federal Alcohol Administration Act, as amended, specifies sales arrangements prohibited by subsection (d) of section 5 of the Act and contains guidelines concerning the return of distilled spirits, wines, and malt beverages from a trade buyer. The regulations in this part apply to transactions between industry members and trade buyers.
</P>
<P>(23) <I>Distribution and use of denatured alcohol and rum.</I> Part 20 of title 27 CFR contains the regulations relating to the procurement, use, disposition, and recovery of denatured alcohol, specially denatured rum, and articles containing denatured spirits; and includes requirements in respect to industrial use and withdrawal permits; and the packaging, labeling, sales, rebottling, and reprocessing of articles containing specially denatured spirits.
</P>
<P>(24) <I>Formulas for denatured alcohol and rum.</I> Part 21 of title 27 CFR contains the regulations relating to the formulation of completely denatured alcohol, specially denatured alcohol, and specially denatured rum; to the use of specially denatured spirits; and to the specifications for denaturants. The procedural requirements relative to the production of denatured alcohol and specially denatured rum are prescribed in part 19 of title 27 CFR, and those relative to the distribution and use of denatured alcohol and specially denatured rum are prescribed in part 20 of title 27 CFR.
</P>
<P>(25) <I>Distribution and use of tax-free alcohol.</I> Part 22 of title 27 CFR contains the regulations relating to tax-free alcohol and covers the procurement, storage, use, and recovery of such alcohol; and included requirements in respect to industrial use and withdrawal permits.
</P>
<P>(26) <I>Liquors and articles from Puerto Rico and the Virgin Islands.</I> Part 26 of title 27 CFR contains the regulations relating to the production, bonded warehousing, and withdrawal of distilled spirits, and denatured spirits, and the manufacture of articles in Puerto Rico and the Virgin Islands to be brought into the United States free of tax and the collection of internal revenue taxes on taxable alcoholic products coming into the United States from Puerto Rico and the Virgin Islands. Regulations respecting spirits produced in Puerto Rico or the Virgin Islands and brought into the United States and transferred from customs custody to distilled spirits plants are also contained in this part.
</P>
<P>(27) <I>Importation of liquors.</I> Part 27 of title 27 CFR contains the substantive and procedural requirements relative to the importation of distilled spirits, wines, and beer into the United States from foreign countries including commodity taxes, permits, marking, branding, and labeling of containers and packages.
</P>
<P>(28) <I>Exportation of liquors.</I> Part 28 of title 27 CFR contains the regulations relating to exportation including, where applicable, lading for use on vessels and aircraft, transfer to a foreign-trade zone, or transfer to a manufacturing bonded warehouse, Class 6, of distilled spirits (including specially denatured spirits), beer (including beer concentrate), and wine, and transfer of distilled spirits and wine for deposit in a customs bonded warehouse, whether without payment of tax, free of tax, or with benefit of drawback. It includes requirements with respect to removal, shipment, lading, deposit, evidence of exportation, losses, claims, and bonds.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987] 
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 70.411, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 70.412" NODE="27:2.0.1.4.7.5.212.2" TYPE="SECTION">
<HEAD>§ 70.412   Excise taxes.</HEAD>
<P>(a) <I>Collection.</I> Taxes on distilled spirits, wines, and beer are paid by returns. Depending on the circumstances, the person responsible for paying the taxes may be eligible to file semimonthly, quarterly, or annual returns, with proper remittances, to cover the taxes incurred on distilled spirits, wines, and beer during the semimonthly, quarterly, or annual period. Payment must accompany the return unless required to be made by electronic fund transfer (EFT). If the taxpayer is not qualified to defer taxpayment, or has been placed on a prepayment basis, the taxpayer must prepay the tax on the distilled spirits, wines, or beer. Distilled spirits, wines, and beer tax returns are filed in accordance with the instruction on the return forms, which are furnished to industry members by TTB. Detailed information respecting the payment of tax on liquors, including the forms to be used and procedures to be followed, is contained in the respective regulations described in § 70.411(c).
</P>
<P>(b) <I>Assessment.</I> If additional or delinquent tax liability is disclosed by an investigation, or by an examination of records, of a qualified plant or permittee, a notice (except where delay may jeopardize collection of the tax, or where the amount involved is nominal or the result of an evident mathematical error) is sent to the taxpayer advising of the basis and amount of the liability and affording the taxpayer an opportunity to submit a protest, with supporting facts, or to request a conference.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987, as amended by T.D. ATF-271, 53 FR 17549, May 17, 1988. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47653, Nov. 14, 1990; T.D. ATF-450, 66 FR 29028, May 29, 2001; T.D. TTB-41, 71 FR 5605, Feb. 2, 2006; T.D. TTB-79, 74 FR 37424, July 28, 2009; T.D. TTB-89, 76 FR 3515, Jan. 20, 2011; T.D. TTB-159, 85 FR 33542, June 2, 2020]


</CITA>
</DIV8>


<DIV8 N="§ 70.413" NODE="27:2.0.1.4.7.5.212.3" TYPE="SECTION">
<HEAD>§ 70.413   Claims.</HEAD>
<P>(a) <I>Claims for remission.</I> When distilled spirits (including distilling material and denatured spirits), wine, or beer on which the tax has not been paid or determined is lost, and the person liable for payment of the tax thereon desires to be relieved from such liability, such person may file claim on Form 5620.8 for remission of tax on the quantity that was lost. The appropriate TTB officer may, in any event, require such a claim to be filed, and will require it if circumstances indicate that the loss was caused by theft or, in the case of distilled spirits (including distilling material), unauthorized voluntary destruction. On receipt of a claim the appropriate TTB officer makes a factual determination, and notifies the claimant of allowance or rejection of the claim. If the claim is rejected, and circumstances so warrant, the appropriate TTB officer will take appropriate steps to collect the tax.
</P>
<P>(b) <I>Claims for abatement.</I> When the tax on distilled spirits, wines, or beer is assessed and the taxpayer thinks that the tax is not due under the law, such taxpayer may file a claim for abatement of the tax on TTB Form 5620.8 with the officer who made demand for the tax. Such officer may call upon the taxpayer to file a bond in double the amount of the tax in order to insure collection of the tax if the claim is rejected. When the claim is acted upon, the taxpayer is notified of the allowance or rejection of the claim. If the claim is rejected, such officer, will initiate action to collect the tax. 
</P>
<P>(c) <I>Claims for refund</I>—(1) <I>Taxes illegally, erroneously, or excessively collected.</I> A claim for refund of taxes illegally, erroneously, or excessively collected may be filed by the taxpayer with the officer who collected the tax. Such claim must be filed within three years (two years under certain circumstances) after the date of payment of the tax. If the claim is rejected, the taxpayer is notified of the rejection by registered or certified mail, and the taxpayer may then bring suit in the U.S. District Court or the Court of Claims for recovery of the tax. Such suits must be filed generally within two years from the date of mailing of the rejection notice. If the claim is allowed, a check for the amount of the refund and allowable interest is forwarded to the taxpayer; however, if there are other unpaid taxes outstanding against the taxpayer, the overpayment may be applied to the outstanding taxes and the balance, if any, refunded.
</P>
<P>(2) <I>Taxes on liquors lost, destroyed, returned to bond, or taken as samples by the United States.</I> A taxpayer may, subject to the conditions in the appropriate regulations, file claim on Form 5620.8 for refund of tax paid on:
</P>
<P>(i) Spirits returned to bonded premises, lost by accident or disaster, or taken as samples by the United States, or
</P>
<P>(ii) Wine returned to bond or lost by disaster, or
</P>
<P>(iii) Beer returned to a brewery or voluntarily destroyed, or lost, whether by theft or otherwise, or destroyed or otherwise rendered unmerchantable by fire, casualty, or act of God. If the claim is allowed, a check for the amount of the refund is forwarded to the claimant; except, that where there are any unpaid taxes outstanding against the claimant, the refund may be applied to the outstanding taxes and a check for the balance, if any, forwarded to the claimant. If the claim is rejected, a copy of the claim giving the reasons for rejection is forwarded to the claimant.
</P>
<P>(d) <I>Claims for allowance, credit, or relief.</I> A qualified permittee, manufacturer, or proprietor may, subject to the conditions in the appropriate regulations, file claim on Form 5620.8 for allowance of loss, credit of tax, or relief from tax liability, as applicable, on
</P>
<P>(1) Spirits returned to bonded premises, lost or destroyed on bonded premises, or in transit thereto, or lost by accident or disaster;
</P>
<P>(2) Wine lost or destroyed on bonded premises or in transit thereto and wine returned to bond;
</P>
<P>(3) Beer returned to a brewery or voluntarily destroyed, or lost, whether by theft or otherwise, or destroyed or otherwise rendered unmerchantable by fire, casualty, or act of God;
</P>
<P>(4) Denatured spirits lost or destroyed in bond, or lost on the premises of a qualified dealer or user or in transit to such premises; and
</P>
<P>(5) Tax-free spirits lost on the premises of a qualified user or in transit to such premises.
</P>
<P>(e) <I>Claims for payment-disaster losses.</I> When distilled spirits, wines, rectified products, or beer held or intended for sale is lost, rendered unmarketable, or condemned by a duly authorized official by reason of a “major disaster” as determined by the President of the United States, the person holding such product for sale at that time may, subject to the conditions in the appropriate regulations, file a claim on form TTB F 5620.8 for payment of an amount equal to the internal revenue taxes paid or determined and any customs duties paid thereon. Claims must be filed within 6 months from the date on which the President makes the determination that the disaster has occurred. The determination date is construed to mean the date the Director, Office of Emergency Preparedness, identifies the specific disaster area.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1513-0030)
</APPRO>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47653, Nov. 14, 1990; T.D. ATF-450, 66 FR 29028, May 29, 2001; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011; T.D. TTB-130, 80 FR 55249, Sept. 15, 2015]


</CITA>
</DIV8>


<DIV8 N="§ 70.414" NODE="27:2.0.1.4.7.5.212.4" TYPE="SECTION">
<HEAD>§ 70.414   Preparation and filing of claims.</HEAD>
<P>(a) <I>Distilled spirits at distilled spirits plants.</I> Procedural instructions in respect of claims for remission, abatement, credit, or refund of tax on spirits (including denatured spirits) lost or destroyed on or lost in transit to, or on spirits returned to, the premises of a distilled spirits plant are contained in Part 19 of Title 27 CFR. It is not necessary to file a claim for credit of tax on taxpaid samples taken by appropriate TTB officers from distilled spirits plants, as the appropriate TTB officer will allow credit, without claim, for tax on such samples.
</P>
<P>(b) <I>Specially denatured spirits.</I> Procedural instructions in respect of claims for allowance of loss on specially denatured spirits lost on the premises of a dealer or user, or while in transit to such premises, are contained in part 20 of title 27 CFR.
</P>
<P>(c) <I>Tax-free alcohol.</I> Procedural instructions in respect of claims for allowance of loss on tax-free alcohol lost on the premises of a qualified user, or while in transit to such premises, are contained in part 22 of title 27 CFR.
</P>
<P>(d) <I>Wine spirits and wine at bonded wine cellar.</I> Procedural instructions in respect of claims for:
</P>
<P>(1) Remission of tax on wine spirits lost on the premises of a bonded wine cellar or in transit thereto,
</P>
<P>(2) Allowance of losses of wine in bond, and
</P>
<P>(3) Credit or refund of tax paid on wine returned to bond are contained in part 24 of title 27 CFR.
</P>
<P>(e) <I>Beer.</I> Procedural instructions in respect of claims for refund or credit of tax which has been paid (or allowance, credit, or relief of tax liability if the tax has not been paid) on domestic beer returned to a brewery or voluntarily destroyed; or lost, whether by theft or otherwise, or destroyed or otherwise rendered unmerchantable by fire, casualty, or act of God are contained in part 25 of title 27 CFR.
</P>
<P>(f) <I>Distilled spirits, wines, or beer for export.</I> Procedural instructions in respect of claims for:
</P>
<P>(1) Drawback of internal revenue tax on distilled spirits, wines, or beer for export, use as supplies on certain vessels or aircraft, or deposit in a foreign-trade zone, or deposit of distilled spirits or wine in a customs bonded warehouse, and
</P>
<P>(2) Remission of tax on distilled spirits, specially denatured spirits, wines, or beer, withdrawn without payment or free of tax and lost during transportation to the port of export, customs bonded warehouse (distilled spirits and wine only), manufacturing bonded warehouse, vessel or aircraft, or foreign-trade zone, as applicable, are contained in part 28 of title 27 CFR. Procedural instructions as to claims respecting export with benefit of drawback of tax on domestic distilled spirits products containing spirits from Puerto Rico or the Virgin Islands are contained in parts 19 and 28 of title 27 CFR.
</P>
<P>(g) <I>Miscellaneous.</I> Procedural instructions are contained in 27 CFR Part 70, subparts F and G in respect of claims for—
</P>
<P>(1) Refund or credit of tax on distilled spirits, wines or beer where such refund or credit is claimed on the grounds that tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive, and where such refund or credit is subject to the limitations imposed by section 6423 of the Internal Revenue Code.
</P>
<P>(2) Payment of an amount equal to the internal revenue tax paid or determined and customs duties paid on distilled spirits, wines, rectified products, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of a major disaster occurring in the United States after June 30, 1959.
</P>
<P>(h) [Reserved]
</P>
<P>(i) <I>Low wines at vinegar plants.</I> Procedural instructions in respect of claims for remission of tax on low wines (distilled spirits) lost at vinegar plants producing vinegar by the vaporizing process are contained in part 19 of title 27 CFR.
</P>
<P>(j) <I>Distilled spirits used in nonbeverage products.</I> Procedural instructions in respect of claims for drawback of excise tax, submitted by persons using distilled spirits in the manufacture of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which are unfit for beverage purposes, are contained in part 17 of title 27 CFR.
</P>
<P>(k) <I>Reopening claims.</I> A claimant who wishes to have a rejected claim reopened must, within the applicable statutory period of limitations, submit a written application to the officer who originally rejected the claim for reconsideration of the claim. Such application must show that the additional evidence to be presented is new and material, and that such evidence was unknown to the claimant, or unobtainable by the claimant, when the claim was previously under consideration.
</P>
<P>(l) <I>Claimant's rights under law and regulations.</I> Before final action has been taken on a claim, a claimant who, by reason of an oversight, misunderstanding of law and regulations, miscalculation, or other cause, did not claim the full amount of abatement, refund, credit, or drawback, as the case may be, of tax to which the claimant is legitimately entitled, may amend a valid claim, and statements filed in support thereof, in instances where such a claim is deficient in establishing the claimants eligibility to the rights extended to such claimant under law and regulations.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 70.414, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 70.415" NODE="27:2.0.1.4.7.5.212.5" TYPE="SECTION">
<HEAD>§ 70.415   Offers in compromise.</HEAD>
<P>Procedure in the case of offers in compromise of liabilities under 26 U.S.C. chapter 51 and of penalties for violation of the Federal Alcohol Administration Act, is set forth in §§ 70.482 through 70.484.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47654, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.416" NODE="27:2.0.1.4.7.5.212.6" TYPE="SECTION">
<HEAD>§ 70.416   Application for approval of interlocking directors and officers under section 8 of the Federal Alcohol Administration Act.</HEAD>
<P>Any person who is an officer or director of a corporation now engaged in business as a distiller, rectifier, or blender of distilled spirits, or of an affiliate thereof, who desires to take office in other companies similarly engaged, must obtain permission to do so from the appropriate TTB officer. Applications for such permission to take office must be prepared and filed in accordance with instructions available from the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-450, 66 FR 29029, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.417" NODE="27:2.0.1.4.7.5.212.7" TYPE="SECTION">
<HEAD>§ 70.417   Rulings.</HEAD>
<P>The procedure for rulings in alcohol tax matters is set forth in § 70.471.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47654, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.418" NODE="27:2.0.1.4.7.5.212.8" TYPE="SECTION">
<HEAD>§ 70.418   Conferences.</HEAD>
<P>Any person desiring a conference with TTB, relative to any matter arising in connection with such person's operations, will be accorded such a conference upon request. No formal requirements are prescribed for such conference.
</P>
<CITA TYPE="N">[T.D. ATF-450, 66 FR 29029, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.419" NODE="27:2.0.1.4.7.5.212.9" TYPE="SECTION">
<HEAD>§ 70.419   Representatives.</HEAD>
<P>Title 31 CFR part 8 is applicable to all representatives of the taxpayer, for any conference with TTB.
</P>
<CITA TYPE="N">[T.D. ATF-450, 66 FR 29029, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.420" NODE="27:2.0.1.4.7.5.212.10" TYPE="SECTION">
<HEAD>§ 70.420   Forms.</HEAD>
<P>For forms to be used, <I>see</I> § 70.411(c).
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47654, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.421" NODE="27:2.0.1.4.7.5.212.11" TYPE="SECTION">
<HEAD>§ 70.421   Alcohol dealer registration.</HEAD>
<P>Every person who sells, or offers for sale, any alcohol product (distilled spirits, wines, or beer) fit for beverage use must register with the Alcohol and Tobacco Tax and Trade Bureau. The specific requirements are contained in the following regulations:
</P>
<P>(a) For proprietors of distilled spirits plants, parts 19 and 31 of this chapter;
</P>
<P>(b) For bonded wineries, bonded wine cellars, bonded wine warehouses, and taxpaid wine bottling houses, parts 24 and 31 of this chapter;
</P>
<P>(c) For brewers, parts 25 and 31 of this chapter;
</P>
<P>(d) For persons bringing distilled spirits, wines, or beer from Puerto Rico and the Virgin Islands to the United States, parts 26 and 31 of this chapter;
</P>
<P>(e) For importers of distilled spirits, wines, or beer, parts 27 and 31 of this chapter; and
</P>
<P>(f) For wholesalers and retailers of distilled spirits, wines, or beer, part 31 of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37424, July 28, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 70.422" NODE="27:2.0.1.4.7.5.212.12" TYPE="SECTION">
<HEAD>§ 70.422   Registration of manufacturers of nonbeverage products.</HEAD>
<P>For provisions regarding the registration of persons claiming drawback on distilled spirits used in the manufacture of certain nonbeverage products, see part 17 of this chapter.
</P>
<CITA TYPE="N">[T.D. TTB-79, 74 FR 37424, July 28, 2009]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="213" NODE="27:2.0.1.4.7.5.213" TYPE="SUBJGRP">
<HEAD>Provisions Relating to Tobacco Products, and Cigarette Papers and Tubes</HEAD>


<DIV8 N="§ 70.431" NODE="27:2.0.1.4.7.5.213.13" TYPE="SECTION">
<HEAD>§ 70.431   Imposition of taxes; regulations.</HEAD>
<P>(a) <I>Taxes.</I> Subchapter A of chapter 52 of the IRC imposes taxes on tobacco products, and cigarette papers and tubes manufactured in or imported into the United States. Occupational taxes are imposed by manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors. Subchapter D of chapter 78 of the Internal Revenue Code imposes a tax (equal to the internal revenue tax imposed in the United States upon the like articles of merchandise of domestic manufacture) on tobacco products, and cigarette papers and tubes of Puerto Rican and Virgin Islands manufacture brought into the United States and withdrawn for consumption or sale.
</P>
<P>(b) <I>Regulations.</I> The procedural requirements with respect to matters relating to tobacco products, cigarette papers and tubes, and processed tobacco are contained in the regulations listed below:
</P>
<P>(1) Part 71 of title 27 CFR relates to the procedure and practice in connection with the disapproval of applications for permits, and the suspension and revocation of permits, under chapter 52 of the Internal Revenue Code.
</P>
<P>(2) Part 40 of title 27 CFR relates to the manufacture of tobacco products, cigarette papers and tubes, and processed tobacco, the payment of internal revenue taxes imposed by chapter 52 of the Internal Revenue Code on manufacturers of tobacco products and of cigarette papers and tubes, and the qualification of and operations by manufacturers of tobacco products, cigarette papers and tubes, and processed tobacco.
</P>
<P>(3) Part 41 of title 27 CFR relates to tobacco products, cigarette papers and tubes, and processed tobacco imported into the United States from a foreign country or brought into the United States from Puerto Rico, the Virgin Islands, or a possession of the United States; the removal of cigars from a customs bonded manufacturing warehouse, Class 6; and the release of tobacco products, and cigarette papers and tubes from customs custody, without payment of internal revenue tax or customs duty attributable to the internal revenue tax.
</P>
<P>(4) [Reserved]
</P>
<P>(5) Part 44 of title 27 CFR relates to the exportation (including supplies for vessels and aircraft and transfers to a foreign-trade zone) of tobacco products, and cigarette papers and tubes, without payment of tax, or with benefit of drawback of tax, and the qualification of and operations by export warehouse proprietors.
</P>
<P>(6) Part 45 of title 27 CFR relates to the removal of tobacco products, and cigarette papers and tubes, without payment of tax, for use of the United States.
</P>
<P>(7) Part 46 of title 27 CFR relates to the provisions of a miscellaneous nature or not of continuing application. Included are regulations relating to:
</P>
<P>(i) Limitations imposed by section 6423 of the Internal Revenue Code on the refund or credit of tax paid or collected on tobacco products, and cigarette papers and tubes;
</P>
<P>(ii) Losses of tobacco products, and cigarette papers and tubes caused by disasters occurring in the United States on or after September 3, 1958; 
</P>
<P>(iii) Purchase, receipt, possession, offering for sale, or sale or other disposition of tobacco products by dealers in such products; and
</P>
<P>(iv) Liability for special (occupational) tax, filing special tax returns, issuance and examination of special tax stamps, and notification of changes to special tax stamps.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987] 
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 70.431, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 70.432" NODE="27:2.0.1.4.7.5.213.14" TYPE="SECTION">
<HEAD>§ 70.432   Qualification and bonding requirements.</HEAD>
<P>(a) <I>Manufacturers of tobacco products and proprietors of export warehouses.</I> Every person, before commencing business as a manufacturer of tobacco products or as a proprietor of an export warehouse, is required to qualify with the Alcohol and Tobacco Tax and Trade Bureau by making application for a permit and filing bond and other required documents and obtaining a permit.
</P>
<P>(b) <I>Manufacturers of cigarette papers and tubes.</I> Every person, before commencing business as a manufacturer of cigarette papers and tubes, is required to qualify with the Alcohol and Tobacco Tax and Trade Bureau by filing bond and other required documents.
</P>
<P>(c) <I>Puerto Rican manufacturers of tobacco products.</I> Every manufacturer of tobacco products in Puerto Rico who desires to defer payment in Puerto Rico of the internal revenue tax imposed by section 7652(a) of the Internal Revenue Code on tobacco products of Puerto Rican manufacture coming into the United States must file a bond with the appropriate TTB officer. Such bond is conditioned on the principal's paying, at the time and in the manner prescribed in the regulations, the full amount of tax computed on the tobacco products which are released for shipment to the United States. No bond is required if the tax is prepaid.
</P>
<P>(d) <I>Proprietors of customs warehouses.</I> Every proprietor of a customs bonded manufacturing warehouse, Class 6, who desires to remove under part 44 tax-exempt cigars for exportation (including supplies for vessels and aircraft), or for delivery for subsequent exportation, is required to file a bond. However, removal of cigars for sale or consumption in the United States is subject to customs regulations.
</P>
<P>(e) <I>Drawback of tax.</I> Taxpaid tobacco products, and cigarette papers and tubes may be exported with benefit of drawback of tax. Drawback may be allowed only to the person who paid the tax on such articles and who files a claim and otherwise complies with the provisions contained in the applicable regulations referred to in § 70.431. As a condition precedent to the allowance of any drawback claim, the claimant is required to file a bond in an amount not less than the amount of tax covered in the claim.
</P>
<P>(f) <I>General.</I> Detailed information relating to the qualification and bonding requirements, including the forms to be used and the procedure to be followed, is fully set forth in the regulations referred to in § 70.431.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47654, Nov. 14, 1990; T.D. ATF-450, 66 FR 29029, May 29, 2001; T.D. ATF-464, 66 FR 43480, Aug. 20, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.433" NODE="27:2.0.1.4.7.5.213.15" TYPE="SECTION">
<HEAD>§ 70.433   Collection of taxes.</HEAD>
<P>(a) <I>Tobacco products.</I> Taxes on tobacco products are paid by the manufacturer on the basis of a return. If the manufacturer has filed a proper bond, such manufacturer may defer payment at the time of removal and file semimonthly returns to cover the taxes. If the manufacturer has not filed such a bond or if the manufacturer has defaulted in any way in paying the taxes, the manufacturer is required to file a prepayment return prior to removal of such products, and to continue so doing until the appropriate TTB officer finds that the revenue will not be jeopardized by deferred payment. Tax returns, with remittances, are filed by the domestic manufacturer in accordance with instructions on the appropriate TTB form. Taxes on cigars produced in a customs bonded manufacturing warehouse, Class 6, are paid on the basis of a return to the director of customs in accordance with customs procedures and regulations. Taxes on tobacco products imported or brought into the United States from a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States are paid by the importer to the director of customs on the basis of a return made on the customs form by which release from customs custody is to be effected. However, taxes on tobacco products manufactured in Puerto Rico and brought into the United States may be prepaid in Puerto Rico on the basis of a return. If a Puerto Rican manufacturer has filed a proper bond, such manufacturer may defer payment at the time of release for shipment to the United States and file a semimonthly return to cover the taxes. If the manufacturer has not filed such a bond or if such manufacturer has defaulted in any way in payment of taxes, the manufacturer must file a prepayment return prior to removal of such products for shipment to the United States, and continue to do so until the appropriate TTB officer finds that the revenue will not be jeopardized by deferred payment. Tax returns, with remittances, are filed by the domestic manufacturer in accordance with instructions on the appropriate TTB form. 
</P>
<P>(b) <I>Cigarette papers and tubes.</I> Taxes on cigarette papers and tubes are paid by the manufacturer on the basis of a semimonthly return. Such returns, with remittances, are filed in accordance with the instructions on the appropriate TTB form. Taxes on cigarette papers and tubes imported or brought into the United States from a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States are paid to the director of customs before removal on the basis of a return made on the customs form by which release from customs custody is effected. However, taxes on cigarette papers and tubes of Puerto Rican manufacture which are to be shipped to the United States may be prepaid in Puerto Rico on the basis of a return.
</P>
<P>(c) <I>Special tax.</I> Special (occupational) taxes are paid by manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors on the basis of a return. Special tax stamps are issued to denote the payment of special (occupational) taxes.
</P>
<P>(d) <I>General.</I> Detailed information about the payment of taxes on tobacco products, and cigarette papers and tubes, including the forms to be used, records to be kept, and reports and inventories to be filed, is contained in the respective regulations referred to in § 70.431.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987, as amended by T.D. ATF-271, 53 FR 17549, May 17, 1988. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47654, Nov. 14, 1990; T.D. ATF-450, 66 FR 29029, May 29, 2001; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]






</CITA>
</DIV8>


<DIV8 N="§ 70.434" NODE="27:2.0.1.4.7.5.213.16" TYPE="SECTION">
<HEAD>§ 70.434   Assessments.</HEAD>
<P>When additional or delinquent tax liability on tobacco products, and cigarette papers and tubes is disclosed by an investigation or by an examination of the taxpayer's records, a notice (except where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error) is forwarded to the taxpayer indicating the basis for, and amount of, the liability and affording the taxpayer an opportunity to show cause, in writing, against assessment.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.435" NODE="27:2.0.1.4.7.5.213.17" TYPE="SECTION">
<HEAD>§ 70.435   Claims.</HEAD>
<P>(a) <I>General.</I> Detailed requirements, including the procedure to be followed in the filing of a claim, the form to be used, the supporting documents which must be submitted, the time within which a claim must be filed, and any other limitations or instructions are contained in the applicable regulations referred to in § 70.431.
</P>
<P>(b) <I>Abatement of assessment.</I> Abatement of the unpaid portion of an assessment of any tax on tobacco products, and cigarette papers and tubes, or any liability in respect thereof, may be allowed to the extent that such assessment is excessive in amount, is assessed after expiration of the applicable period of limitation, or is erroneously or illegally assessed.
</P>
<P>(c) <I>Allowance of tax.</I> Relief from the payment of tax on tobacco products, and cigarette papers and tubes may be extended to a manufacturer by approval of a claim for allowance where such articles, after removal from the factory upon determination of tax and prior to the time for payment of such tax, are lost (otherwise than by theft) or destroyed by fire, casualty, or act of God, while in the possession or ownership of the manufacturer who removed such articles, or are withdrawn by the manufacturer from the market.
</P>
<P>(d) <I>Remission of tax liability.</I> Remission of the tax liability on tobacco products, and cigarette papers and tubes may be extended to a manufacturer or export warehouse proprietor liable for the tax, where such articles in bond are lost (otherwise than by theft) or destroyed by fire, casualty, or act of God, while in the possession or ownership of the manufacturer or export warehouse proprietor.
</P>
<P>(e) <I>Refund of tax.</I> Taxes paid on tobacco products, cigarette papers and tubes lost (otherwise than by theft) or destroyed by fire, casualty, or act of God, while in the possession or ownership of the manufacturer, importer, or export warehouse proprietor, or withdrawn from the market, may be refunded. Refunds may also be made within certain limitations for overpayments of tax on tobacco products, and cigarette papers and tubes.
</P>
<P>(f) <I>Losses caused by disaster.</I> Payment of an amount equal to the amount of internal revenue taxes paid or determined and customs duties paid on tobacco products, and cigarette papers and tubes removed from the factory or released from customs custody, which are lost, rendered unmarketable, or condemned by a duly authorized official by reason of a “major disaster” as determined by the President of the United States may be made only if, at the time of the disaster, such articles were being held for sale by the claimant. Claims must be filed within 6 months from the date on which the President makes the determination that the disaster has occurred. The determination date is construed to mean the date the Director, Office of Emergency Preparedness, identifies the specific disaster area.
</P>
<P>(g) <I>Drawback of tax.</I> Drawback may be allowed to the person who paid the tax on tobacco products, and cigarette papers and tubes which are shipped to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States.
</P>
<P>(h) <I>Credit of tax.</I> Taxes paid on tobacco products, and cigarette papers and tubes lost (otherwise than by theft) or destroyed by fire, casualty, or act of God, while in the possession or ownership of the manufacturer, or withdrawn from the market, may be credited upon approval of a claim.
</P>
<P>(i) <I>Reopening claims.</I> A claimant who wishes to have a rejected claim reopened must, within the applicable statutory period of limitations, submit a written application to the appropriate TTB officer for reconsideration of the claim. Such application must show that the additional evidence to be presented is new and material, and that such evidence was unknown to the claimant, or unobtainable by the claimant, when the claim was previously under consideration.
</P>
<P>(j) <I>Claimant's rights under law and regulations.</I> Before final action has been taken on a claim, a claimant who, by reason of an oversight, misunderstanding of law and regulations, miscalculation, or other cause, did not claim the full amount of abatement, refund, credit, or drawback, as the case may be, of tax to which the claimant is legitimately entitled, may amend a valid claim, and statements filed in support thereof, in instances where such a claim is deficient in establishing the claimants eligibility to rights extended under law and regulations.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47654, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.436" NODE="27:2.0.1.4.7.5.213.18" TYPE="SECTION">
<HEAD>§ 70.436   Offers in compromise.</HEAD>
<P>Procedure in the case of offers in compromise of liabilities under 26 U.S.C. chapter 52 is set forth in §§ 70.482 through 70.484.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47654, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.437" NODE="27:2.0.1.4.7.5.213.19" TYPE="SECTION">
<HEAD>§ 70.437   Rulings.</HEAD>
<P>The procedure for rulings in tobacco tax matters is set forth in § 70.471.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47654, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.438" NODE="27:2.0.1.4.7.5.213.20" TYPE="SECTION">
<HEAD>§ 70.438   Forms.</HEAD>
<P>Detailed information as to all forms prescribed for use in connection with tobacco taxes is contained in the regulations referred to in § 70.431(b).
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29029, May 29, 2001]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="214" NODE="27:2.0.1.4.7.5.214" TYPE="SUBJGRP">
<HEAD>Provisions Relating to Firearms, Shells and Cartridges, and Explosives</HEAD>


<DIV8 N="§ 70.441" NODE="27:2.0.1.4.7.5.214.21" TYPE="SECTION">
<HEAD>§ 70.441   Applicable laws.</HEAD>
<P>(a) Chapter 53 of the Internal Revenue Code (26 U.S.C. 5801-5872), the provisions of which are derived from the National Firearms Act Amendments of 1968 (82 Stat. 1227), imposes a tax on the making and transfer in the United States of machine guns, destructive devices, and certain other types of firearms, and an occupational tax upon every importer and manufacturer of, and dealer in, such firearms. Section 1(b) (2) of the act of August 9, 1939 (52 Stat. 1291; 49 U.S.C. 781-788), makes provision for the seizure and forfeiture of vessels, vehicles, and aircraft which are used to transport, carry, or possess, or to facilitate the same, any firearms with respect to which there has been committed any violation of the National Firearms Act or any regulations issued pursuant thereto.
</P>
<P>(b) Title I, State Firearms Control Assistance (18 U.S.C., Chapter 44), of the Gun Control Act of 1968 (82 Stat. 1213), as amended by Pub. L. 99-308 (100 Stat. 449), Pub. L. 99-360 (100 Stat. 766) and Pub. L. 99-408 (100 Stat. 920), provides for the licensing of manufacturers and importers of firearms and ammunition, collectors of firearms, and dealers in firearms, and establishes controls for firearms and ammunition acquisitions and dispositions.
</P>
<P>(c) Title I, State Firearms Control Assistance (18 U.S.C. Chapter 44), of the Gun Control Act of 1968 (82 Stat. 1213) as amended by Pub. L. 99-308 (100 Stat. 449) and Pub. L. 99-360 (100 Stat. 766), provides that no person may ship or transport any firearms or ammunition in interstate or foreign commerce, or receive any firearms or ammunition which has been shipped or transported in interstate or foreign commerce, or possess any firearms or ammunition in or affecting commerce, who (1) has been convicted of a crime punishable by imprisonment for a term exceeding 1 year, (2) is a fugitive from justice, (3) is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act, 21 U.S.C. 802), (4) has been adjudicated as a mental defective or has been committed to a mental institution, (5) is an alien illegally or unlawfully in the United States, (6) has been discharged from the Armed Forces under dishonorable conditions, or (7) having been a citizen of the United States, has renounced citizenship.
</P>
<P>(d) Section 38 of the Arms Export Control Act (22 U.S.C. 2778) and regulations thereunder and 27 CFR part 447 are applicable to the registration and licensing of persons engaged in the business of manufacturing, importing or exporting arms, ammunition, or implements of war. The Secretary of the Treasury is authorized to control, in furtherance of world peace and the security and foreign policy of the United States, the import of articles enumerated on the U.S. Munitions Import List.
</P>
<P>(e) Title XI, Regulation of Explosives (18 U.S.C. chapter 40) of the Organized Crime Control Act of 1970 (84 Stat. 922) provides for the licensing of manufacturers, importers, and limited manufacturers of, and dealers in, explosives in interstate or foreign commerce, and for issuance of permits for users who buy or transport explosives in interstate or foreign commerce.
</P>
<P>(f) Chapter 32 of the Internal Revenue Code (26 U.S.C. 4181), imposes a tax upon the sale by the manufacturer, producer, or importer of pistols, revolvers, firearms (other than pistols and revolvers), and shells and cartridges.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, as amended by T.D. ATF-331, 57 FR 40328, Sept. 3, 1992; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 70.442" NODE="27:2.0.1.4.7.5.214.22" TYPE="SECTION">
<HEAD>§ 70.442   Taxes relating to machine guns, destructive devices, and certain other firearms.</HEAD>
<P>Part 479 of title 27 CFR contains the regulations relative to the:
</P>
<P>(a) Payment of special (occupational) taxes by manufacturers and importers of and dealers in, machine guns, destructive devices, and certain other types of firearms,
</P>
<P>(b) Payment of the tax on the making or transfer of such firearms,
</P>
<P>(c) Registration, identification, importation, and exportation of such firearms,
</P>
<P>(d) Keeping of books and records and rendering of returns, and
</P>
<P>(e) The forfeiture and disposition of seized firearms under the provisions of the National Firearms Act.
</P>
<CITA TYPE="N">[T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5481, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 70.443" NODE="27:2.0.1.4.7.5.214.23" TYPE="SECTION">
<HEAD>§ 70.443   Firearms and ammunition.</HEAD>
<P>(a) <I>Commerce in firearms and ammunition.</I> (1) 27 CFR part 478 contains the regulations relative to:
</P>
<P>(i) The licensing of importers and manufacturers of firearms and ammunition, collectors of firearms, and dealers in firearms,
</P>
<P>(ii) The identification of firearms,
</P>
<P>(iii) The acquisition and disposition of firearms and ammunition,
</P>
<P>(iv) The records required to be kept by licensees, and
</P>
<P>(v) The forfeiture and disposition of seized firearms and ammunition, under the provisions of title I of the Gun Control Act of 1968, as amended, and also
</P>
<P>(vi) The restrictions regarding the receipt, possession, or transportation of firearms by certain persons.
</P>
<P>(b) <I>Firearms and ammunition excise taxes.</I> (1) 27 CFR part 53 contains the regulations relative to:
</P>
<P>(i) Payment of excise tax on the sale of pistols, revolvers, firearms (other than pistols and revolvers), shells and cartridges,
</P>
<P>(ii) Establishing constructive sales price,
</P>
<P>(iii) Registration for tax free sales,
</P>
<P>(iv) Keeping of records and rendering of returns, and
</P>
<P>(v) The exportation or use in further manufacture of tax-paid articles.
</P>
<CITA TYPE="N">[T.D. ATF-331, 57 FR 40328, Sept. 3, 1992, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 70.444" NODE="27:2.0.1.4.7.5.214.24" TYPE="SECTION">
<HEAD>§ 70.444   Importation of arms, ammunition, and implements of war.</HEAD>
<P>Part 447 of title 27 CFR implements Executive Order 11958 and supplements the import provisions contained in parts 478 and 479 of title 27 CFR. Part 447 establishes the U.S. Munitions Import List and contains the regulations relative to:
</P>
<P>(a) The registration of importers in arms, ammunition, and implements of war,
</P>
<P>(b) Import permit requirements,
</P>
<P>(c) Import certification and verification,
</P>
<P>(d) Import restrictions applicable to certain countries, and
</P>
<P>(e) The forfeiture of seized arms, ammunition, and implements of war under the Arms Export Control Act.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 70.445" NODE="27:2.0.1.4.7.5.214.25" TYPE="SECTION">
<HEAD>§ 70.445   Commerce in explosives.</HEAD>
<P>Part 555 of title 27 CFR contains the regulations relative to:
</P>
<P>(a) Licensing of manufacturers, importers, and limited manufacturers of, and dealers in, explosives,
</P>
<P>(b) Permits for users who buy or transport explosives in interstate or foreign commerce,
</P>
<P>(c) Construction of different types of storage facilities for three classes of explosive material,
</P>
<P>(d) The identification of explosives,
</P>
<P>(e) The acquisition and disposition of explosives,
</P>
<P>(f) The records required to be kept by licensees and permittees,
</P>
<P>(g) The forfeiture and disposition of seized explosive material, under the provision of Title XI of the Organized Crime Control Act of 1970,
</P>
<P>(h) Operations by licensees or permittees and hearings procedure after denial or revocation of license or permit, and also
</P>
<P>(i) Restrictions regarding the receipt, possession, or transportation of explosives by certain persons under the provisions of Title XI of the Organized Crime Control Act of 1970.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 70.446" NODE="27:2.0.1.4.7.5.214.26" TYPE="SECTION">
<HEAD>§ 70.446   Rulings.</HEAD>
<P>The procedure for rulings in the firearms and explosives area is set forth in § 70.471.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47654, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.447" NODE="27:2.0.1.4.7.5.214.27" TYPE="SECTION">
<HEAD>§ 70.447   Assessments.</HEAD>
<P>Where the evidence disclosed by investigation establishes that additional or delinquent tax liability has been incurred and not paid, the appropriate TTB officer will list the tax as an assessment. Notification and demand for payment of assessed taxes will be issued to the taxpayer by the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47654, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.448" NODE="27:2.0.1.4.7.5.214.28" TYPE="SECTION">
<HEAD>§ 70.448   Claims.</HEAD>
<P>(a) The procedures applicable to the filing of claims under chapter 53 of the Internal Revenue Code are set forth below:
</P>
<P>(1) Claims for refund of the making and transfer taxes, and of occupational taxes, whether paid pursuant to assessment or voluntarily paid, and claims for redemption of “National Firearms Act” stamps, are prepared and filed in accordance with the procedures set forth in 27 CFR part 479.
</P>
<P>(2) Claims for abatement of making and transfer taxes, and claims for abatement of occupational taxes and penalties erroneously assessed, are prepared and filed in accordance with the procedures set forth in § 70.413(b).
</P>
<P>(3) Claims may be reopened or amended in accordance with the provisions of § 70.414 (k) and (l).
</P>
<P>(b) The procedures applicable to the filing of claims relating to the tax imposed by section 4181 of the Internal Revenue Code are set forth below:
</P>
<P>(1) Claims for credit or refund of manufacturers taxes, whether paid pursuant to assessment of voluntarily paid, are prepared and filed in accordance with the procedures set forth in § 70.123 and 27 CFR 53.171 through 53.186. For regulations under section 6416 of the Internal Revenue Code, relating to conditions to allowance and other procedural requirements, see 27 CFR 53.172 through 53.186.
</P>
<P>(2) Claims for abatement of manufacturers taxes are to be prepared and filed in accordance with § 70.125.
</P>
<P>(3) Claims may be reopened or amended in accordance with the provisions of § 70.414 (k) and (l).
</P>
<CITA TYPE="N">[T.D. ATF-331, 57 FR 40328, Sept. 3, 1992, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 70.449" NODE="27:2.0.1.4.7.5.214.29" TYPE="SECTION">
<HEAD>§ 70.449   Offers in compromise.</HEAD>
<P>The procedures in the case of offers in compromise of liabilities under 26 U.S.C. 4181 and chapter 53 are set forth in §§ 70.482 and 70.484.
</P>
<CITA TYPE="N">[T.D. ATF-331, 57 FR 40329, Sept. 3, 1992]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="215" NODE="27:2.0.1.4.7.5.215" TYPE="SUBJGRP">
<HEAD>Seized Property</HEAD>


<DIV8 N="§ 70.450" NODE="27:2.0.1.4.7.5.215.30" TYPE="SECTION">
<HEAD>§ 70.450   Seizure and forfeiture of personal property.</HEAD>
<P>Part 72 of title 27 CFR contains the regulations relative to the personal property seized by officers of the Bureau of Alcohol, Tobacco and Firearms as subject to forfeiture as being used, or intended to be used, to violate certain Federal laws; the remission or mitigation of such forfeiture; and the administrative sale or other disposition, pursuant to forfeiture, of such seized property other than firearms seized under the National Firearms Act and firearms and ammunition seized under Title I of the Gun Control Act of 1968, as amended. For disposal of firearms under the National Firearms Act, see 26 U.S.C. 5872(b). For disposal of firearms and ammunition under Title I of the Gun Control Act of 1968, see 18 U.S.C. 924(d). For disposal of explosives under Title XI of Organized Crime Control Act of 1970, see 18 U.S.C. 844(c).


</P>
</DIV8>

</DIV7>


<DIV7 N="216" NODE="27:2.0.1.4.7.5.216" TYPE="SUBJGRP">
<HEAD>Possessions</HEAD>


<DIV8 N="§ 70.461" NODE="27:2.0.1.4.7.5.216.31" TYPE="SECTION">
<HEAD>§ 70.461   Shipments to the United States.</HEAD>
<P>For regulations under 26 U.S.C. 7652, see 27 CFR part 26 relating to liquors and articles from Puerto Rico and the Virgin Islands; and 27 CFR part 41 relating to cigars, cigarettes, and cigarette papers and tubes.
</P>
<SECAUTH TYPE="N">(68A Stat. 907, as amended (26 U.S.C. 7652))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990, as amended by T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. TTB-16, 69 FR 52423, Aug. 26, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 70.462" NODE="27:2.0.1.4.7.5.216.32" TYPE="SECTION">
<HEAD>§ 70.462   Shipments from the United States.</HEAD>
<P>For regulations under 26 U.S.C. 7653, see 27 CFR part 28 relating to exportation of liquors; and 27 CFR part 44, relating to exportation of cigars, cigarettes, and cigarette papers and tubes.
</P>
<SECAUTH TYPE="N">(68A Stat. 908, as amended; (26 U.S.C. 7653))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990; T.D. ATF-464, 66 FR 43480, Aug. 20, 2001; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="217" NODE="27:2.0.1.4.7.5.217" TYPE="SUBJGRP">
<HEAD>Rulings</HEAD>


<DIV8 N="§ 70.471" NODE="27:2.0.1.4.7.5.217.33" TYPE="SECTION">
<HEAD>§ 70.471   Rulings.</HEAD>
<P>(a) <I>Requests for rulings.</I> Any person who is in doubt as to any matter arising in connection with the following may request a ruling thereon by addressing a letter to the appropriate TTB officer:
</P>
<P>(1) Operations or transactions in the alcohol tax area (26 U.S.C. chapter 51), the Federal Alcohol Administration Act (27 U.S.C. chapter 8, including the Alcohol Beverage Labeling Act of 1988), or the Webb-Kenyon Act (27 U.S.C. 122);
</P>
<P>(2) Operations or transactions in the tobacco tax area (26 U.S.C. chapter 52);
</P>
<P>(3) Operations or transactions in the firearms and ammunition manufacturers excise tax area (26 U.S.C. 4181-4182);
</P>
<P>(4) Subchapters F and G of chapter 32 of the IRC insofar as they relate to activities administered and enforced with respect to sections 4181 and 4182 of the IRC; and
</P>
<P>(5) Subtitle F of the IRC insofar as it relates to any of the foregoing.
</P>
<P>(b) <I>Routine requests for information.</I> Routine requests for information should be addressed to the appropriate TTB officer.
</P>
<P>(c) <I>Matters under ATF jurisdiction.</I> For rulings on matters under the jurisdiction of the Bureau of Alcohol, Tobacco, Firearms and Explosives (Department of Justice), contact the Bureau of Alcohol, Tobacco, Firearms and Explosives, Office of Public and Governmental Affairs, 99 New York Avenue, NE., Washington, DC 20226, or view the contact information posted online at <I>https://www.atf.gov/contact.</I>
</P>
<CITA TYPE="N">[T.D. TTB-91, 76 FR 5482, Feb. 1, 2011, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="218" NODE="27:2.0.1.4.7.5.218" TYPE="SUBJGRP">
<HEAD>Administrative Remedies</HEAD>


<DIV8 N="§ 70.481" NODE="27:2.0.1.4.7.5.218.34" TYPE="SECTION">
<HEAD>§ 70.481   Agreements for payment of liability in installments.</HEAD>
<P>(a) <I>Authorization of agreements.</I> The appropriate TTB officer, is authorized to enter into written agreements with any taxpayer under which such taxpayer is allowed to satisfy liability for payment of any tax in installment payments if the appropriate TTB officer determines that such agreement will facilitate collection of such liability.
</P>
<P>(b) <I>Extent to which agreements remain in effect</I>—(1) <I>In general.</I> Except as otherwise provided in this paragraph (b), any agreement under paragraph (a) of this section shall remain in effect for the term of the agreement.
</P>
<P>(2) <I>Inadequate information or jeopardy.</I> The officer who entered into an installment agreement under paragraph (a) of this section may terminate such agreement if:
</P>
<P>(i) Information which the taxpayer provided prior to the date such agreement was entered into was inaccurate or incomplete, or
</P>
<P>(ii) The appropriate TTB officer believes that collection of any tax to which an agreement under this section relates is in jeopardy.
</P>
<P>(3) <I>Subsequent change in financial conditions</I>—(i) <I>In general.</I> If the officer who entered into an installment agreement under paragraph (a) of this section makes a determination that the financial condition of the taxpayer has significantly changed, the officer may alter, modify, or terminate such agreement.
</P>
<P>(ii) <I>Notice.</I> Action may be taken by the appropriate TTB officer under paragraph (b)(3)(i) of this section only if:
</P>
<P>(A) Notice of such determination is provided to the taxpayer no later than 30 days prior to the date of such action, and
</P>
<P>(B) Such notice includes the reasons why the officer believes a significant change in the financial condition of the taxpayer has occurred.
</P>
<P>(4) <I>Failure to pay an installment or any other tax liability when due or to provide requested financial information.</I> The officer who entered into an installment agreement under paragraph (a) of this section may alter, modify, or terminate such agreement in the case of the failure of the taxpayer:
</P>
<P>(i) To pay an installment at the time such installment payment is due under such agreement,
</P>
<P>(ii) To pay any other tax liability at the time such liability is due, or
</P>
<P>(iii) To provide a financial condition update as requested by the appropriate TTB officer.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6159)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47655, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29029, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.482" NODE="27:2.0.1.4.7.5.218.35" TYPE="SECTION">
<HEAD>§ 70.482   Offers in compromise of liabilities (other than forfeiture) under 26 U.S.C.</HEAD>
<P>(a) <I>In general.</I> The appropriate TTB officer may compromise any civil or criminal liability arising under the provisions of 26 U.S.C. enforced and administered by TTB prior to reference of a case involving such liability to the Department of Justice for prosecution or defense. (For compromise of forfeiture liability, see § 70.484 of this part.) Any such liability may be compromised only upon one or both of the following two grounds:
</P>
<P>(1) Doubt as to liability; or
</P>
<P>(2) Doubt as to collectability.
</P>
<FP>No such liability will be compromised if the liability has been established by a valid judgment or is certain, and there is no doubt as to the ability of the Government to collect the amounts owing with respect to such liability.
</FP>
<P>(b) <I>Scope of compromise agreement.</I> A compromise agreement may relate to civil or criminal liability for taxes, interest, ad valorem penalties, or specific penalties. However, a criminal liability may be compromised only if it involves a violation of a regulatory provision of 26 U.S.C., or a related statute, and then only if such violation was not deliberately committed with an intent to defraud.
</P>
<P>(c) <I>Effect of compromise agreement.</I> A compromise agreement relates to the entire liability of the taxpayer (including taxes, ad valorem penalties, and interest) with respect to which the offer in compromise is submitted and all questions of such liability are conclusively settled thereby. Specific penalties, however, shall be compromised separately and not in connection with taxes, interest, or ad valorem penalties. Neither the taxpayer nor the Government shall, upon acceptance of an offer in compromise, be permitted to reopen the case except by reason of falsification or concealment of assets by the taxpayer, or mutual mistake of a material fact sufficient to cause a contract to be reformed or set aside. However, acceptance of an offer in compromise of a civil liability does not remit a criminal liability, nor does acceptance of an offer in compromise of a criminal liability remit a civil liability.
</P>
<P>(d) <I>Procedure with respect to offers in compromise</I>—(1) <I>Submission of offers.</I> (i) Offers in compromise under this section shall be submitted on TTB Form 5640.1, along with any additional information required by the officer authorized to accept or reject the offer. If the offer in compromise is based on inability to pay, the proponent must submit any financial statement required by such officer.
</P>
<P>(ii) The offer should generally be accompanied by a remittance representing the amount of the compromise offer or a deposit if the offer provides for future installment payments. When final action has been taken, the proponent is notified of the acceptance or rejection of the offer.
</P>
<P>(2) <I>Stay of collection.</I> The submission of an offer in compromise shall not automatically operate to stay the collection of any tax liability. However, enforcement of collection may be deferred if the interests of the United States will not be jeopardized thereby.
</P>
<P>(3) <I>Acceptance.</I> An offer in compromise shall be considered accepted only when the proponent thereof is so notified in writing. As a condition to accepting an offer in compromise, the taxpayer may be required to enter into any collateral agreement or to post any security which is deemed necessary for the protection of the interests of the United States. If the final payment on an accepted offer is contingent upon the immediate or simultaneous release of a tax lien in whole or in part, such payment must be in cash, or in the form of a certified, cashier's, or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or any State, Territory, or possession of the United States, or by a U.S. postal, bank, express, or telegraph money order.
</P>
<P>(4) <I>Withdrawal or rejection.</I> An offer in compromise may be withdrawn by the proponent at any time prior to its acceptance. In the event an offer is rejected, the proponent shall be promptly notified in writing. Frivolous offers or offers submitted for the purpose of delaying the collection of tax liabilities shall be immediately rejected. If an offer in compromise is withdrawn or rejected, the amount tendered with the offer, including all installments paid, shall be refunded without interest, unless the taxpayer has stated or agreed that the amount tendered may be applied to the liability with respect to which the offer was submitted.
</P>
<P>(e) <I>Record.</I> Except as otherwise provided in this paragraph, if an offer in compromise is accepted, there shall be placed on file the opinion of counsel for the Bureau with respect to such compromise, with the reason therefor, and including a statement of:
</P>
<P>(1) The amount of tax assessed,
</P>
<P>(2) The amount of interest, additional amount, addition to the tax, or assessable penalty, imposed by law on the person against whom the tax is assessed, and
</P>
<P>(3) The amount actually paid in accordance with the terms of the compromise.
</P>
<FP>However, no such opinion shall be required with respect to the offer in compromise of any civil case in which the unpaid amount of tax assessed (including any interest, additional amount, addition to the tax, or assessable penalty is less than $50,000. However, such compromise shall be subject to continuing quality review by the Secretary. 
</FP>
<P>(f) <I>Requirement with respect to statute of limitations.</I> No offer in compromise shall be accepted unless the taxpayer waives the running of the statutory period of limitations on both or either assessment or collection of the tax liability involved for the period during which the offer is pending, or the period during which any installment remains unpaid, and for one year thereafter.
</P>
<P>(g) <I>Inspection with respect to accepted offers in compromise.</I> For provisions relating to the inspection of returns and accepted offers in compromise, <I>see</I> 26 U.S.C. 6103(k)(l).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7122)
</SECAUTH>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1512-0472)
</APPRO>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47655, Nov. 14, 1990, as amended by T.D. ATF-331, 57 FR 40329, Sept. 3, 1992; T.D. ATF-450, 66 FR 29029, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.483" NODE="27:2.0.1.4.7.5.218.36" TYPE="SECTION">
<HEAD>§ 70.483   Offers in compromise of violations of Federal Alcohol Administration Act.</HEAD>
<P>The Federal Alcohol Administration Act provides penalties for violations of its provisions. The appropriate TTB officer is authorized to compromise such liabilities. Persons desiring to submit offers in compromise may submit such offers on Form 5640.2. When the offer is acted upon, the proponent is notified of the acceptance or rejection of the offer. If the offer is rejected, the sum submitted with the offer in compromise is returned to the proponent. If the offer is accepted, the proponent is notified and the case is closed.
</P>
<CITA TYPE="N">[T.D. ATF-450, 66 FR 29029, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.484" NODE="27:2.0.1.4.7.5.218.37" TYPE="SECTION">
<HEAD>§ 70.484   Offers in compromise of forfeiture liabilities.</HEAD>
<P>The appropriate TTB officer is authorized to compromise liabilities to administrative forfeiture of personal property seized under the laws administered and enforced by the Bureau. Persons desiring to submit offers in compromise of such liabilities may submit such offers on Form 656-E to the appropriate TTB officer. When the offer is acted upon, the proponent is notified of the acceptance or rejection of the offer. If the offer is rejected, the sum submitted with the offer in compromise is returned to the proponent. If the offer is accepted, the proponent is notified and the case is closed. Acceptance of an offer in compromise of civil liabilities does not remit criminal liabilities, nor does acceptance of an offer in compromise of criminal liabilities remit civil liabilities.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47655, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29030, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.485" NODE="27:2.0.1.4.7.5.218.38" TYPE="SECTION">
<HEAD>§ 70.485   Closing agreements.</HEAD>
<P>(a) <I>In general.</I> The appropriate TTB officer may enter into a written agreement with any person relating to the liability of such person (or of the person or estate for whom the person acts) in respect of any tax imposed under the provisions of 26 U.S.C. enforced and administered by the Bureau for any taxable period ending prior or subsequent to the date of such agreement. A closing agreement may be entered into in any case in which there appears to be an advantage in having the case permanently and conclusively closed, or if good and sufficient reasons are shown by the taxpayer for desiring a closing agreement and it is determined by the appropriate TTB officer that the United States will sustain no disadvantage through consummation of such an agreement.
</P>
<P>(b) <I>Scope of closing agreement</I>—(1) <I>In general.</I> A closing agreement may be executed even though under the agreement the taxpayer is not liable for any tax for the period to which the agreement relates. There may be a series of closing agreements relating to the tax liability for a single period.
</P>
<P>(2) <I>Taxable periods ended prior to date of closing agreement.</I> Closing agreements with respect to taxable periods which ended prior to the date of the agreement may relate to the total tax liability of the taxpayer or to one or more separate items affecting the tax liability of the taxpayer.
</P>
<P>(3) <I>Taxable periods ending subsequent to date of closing agreement.</I> Closing agreements with respect to taxable periods ending subsequent to the date of the agreement may relate to one or more separate items affecting the tax liability of the taxpayer.
</P>
<P>(c) <I>Finality.</I> A closing agreement which is approved within such time as may be stated in such agreement, or later agreed to, shall be final and conclusive, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact:
</P>
<P>(1) The case shall not be reopened as to the matters agreed upon or the agreement modified by any officer, employee, or agent of the United States, and
</P>
<P>(2) In any suit, action, or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded.
</P>
<FP>However, a closing agreement with respect to a taxable period ending subsequent to the date of the agreement is subject to any change in, or modification of, the law enacted subsequent to the date of the agreement and made applicable to such taxable period, and each closing agreement shall so recite.
</FP>
<P>(d) <I>Procedure with respect to closing agreements</I>—(1) <I>Submission of request.</I> A request for a closing agreement which relates to a prior taxable period may be submitted at any time before a case with respect to the tax liability involved is filed with a court of the United States. The procedure with respect to requests for closing agreements shall be under such rules as may be prescribed from time to time by the Administrator in accordance with the regulations under this section.
</P>
<P>(2) <I>Collection, credit, or refund.</I> Any tax or deficiency in tax determined pursuant to a closing agreement shall be assessed and collected, and any overpayment determined pursuant thereto shall be credited or refunded, in accordance with the applicable provisions of law.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7121)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47655, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 70.486" NODE="27:2.0.1.4.7.5.218.39" TYPE="SECTION">
<HEAD>§ 70.486   Managerial review.</HEAD>
<P>If at any step in the collection process a taxpayer does not agree with a TTB employee under the authority of the appropriate TTB officer, the taxpayer has the right to discuss the matter with the employee's immediate supervisor. The TTB employee will give the taxpayer the name and telephone number of the person to be contacted.
</P>
<CITA TYPE="N">[T.D. ATF-301, 55 FR 47655, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="F" NODE="27:2.0.1.4.7.6" TYPE="SUBPART">
<HEAD>Subpart F—Application of Section 6423, Internal Revenue Code of 1954, as Amended, to Refund or Credit of Tax on Distilled Spirits, Wines, and Beer</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-376, 61 FR 31031, June 19, 1996, unless otherwise noted.


</PSPACE></SOURCE>

<DIV7 N="219" NODE="27:2.0.1.4.7.6.219" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 70.501" NODE="27:2.0.1.4.7.6.219.1" TYPE="SECTION">
<HEAD>§ 70.501   Meaning of terms.</HEAD>
<P>When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section.
</P>
<P><I>Article.</I> The commodity in respect to which the amount claimed was paid or collected as a tax.
</P>
<P><I>Claimant.</I> Any person who files a claim for a refund or credit of tax under this subpart.
</P>
<P><I>District director of customs.</I> The district director of customs at a headquarters port of the district (except the district of New York, N.Y.); the area directors of customs in the district of New York, N.Y.; and the port director at a port not designated as a headquarters port.
</P>
<P><I>I.R.C.</I> Internal Revenue Code of 1986, as amended.
</P>
<P><I>Owner.</I> A person who, by reason of a proprietary interest in the article, furnished the amount claimed to the claimant for the purpose of paying the tax.
</P>
<P><I>Person.</I> An individual, a trust, estate, partnership, association, company, or corporation.
</P>
<P><I>Tax.</I> Any tax imposed by 26 U.S.C. 5001-5066, or by any corresponding provision of prior internal revenue laws, and in the case of any commodity of a kind subject to a tax under any such sections, any tax equal to any such tax, any additional tax, or any floor stocks tax. The term includes an extraction denominated a “tax”, and any penalty, addition to tax, additional amount, or interest applicable to any such tax.


</P>
</DIV8>


<DIV8 N="§ 70.502" NODE="27:2.0.1.4.7.6.219.2" TYPE="SECTION">
<HEAD>§ 70.502   Applicability to certain credits or refunds.</HEAD>
<P>The provisions of this subpart apply only where the credit or refund is claimed on the grounds that an amount of tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This subpart does not apply to:
</P>
<P>(a) Any claim for drawback,
</P>
<P>(b) Any claim made in accordance with any law expressly providing for credit or refund where an article is withdrawn from the market, returned to bond, or lost or destroyed, and
</P>
<P>(c) Any claim based solely on errors in computation of the quantity of an article subject to tax or on mathematical errors in computation of the amount of the tax due, or to any claim in respect of tax collected or paid on an article seized and forfeited, or destroyed, as contraband.


</P>
</DIV8>


<DIV8 N="§ 70.503" NODE="27:2.0.1.4.7.6.219.3" TYPE="SECTION">
<HEAD>§ 70.503   Ultimate burden.</HEAD>
<P>For the purposes of this subpart, the claimant, or owner, shall be treated as having borne the ultimate burden of an amount of tax only if:
</P>
<P>(a) The claimant or owner has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person,
</P>
<P>(b) No understanding or agreement exists for any such relief or shifting, and
</P>
<P>(c) If the claimant or owner has neither sold nor contracted to sell the articles involved in such claim, such claimant or owner agrees that there will be no such relief or shifting.


</P>
</DIV8>


<DIV8 N="§ 70.504" NODE="27:2.0.1.4.7.6.219.4" TYPE="SECTION">
<HEAD>§ 70.504   Conditions to allowance of credit or refund.</HEAD>
<P>No credit or refund to which this subpart is applicable shall be allowed or made, pursuant to a court decision or otherwise, of any amount paid or collected as a tax unless a claim therefor has been filed, as provided in this subpart, by the person who paid the tax and the claimant, in addition to establishing that such claimant is otherwise legally entitled to credit or refund of the amount claimed, establishes:
</P>
<P>(a) That the claimant bore the ultimate burden of the amount claimed, or
</P>
<P>(b) That the claimant has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount, or
</P>
<P>(c) That:
</P>
<P>(1) The owner of the article furnished the claimant the amount claimed for payment of the tax;
</P>
<P>(2) The claimant has filed with the appropriate TTB officer the written consent of such owner to the allowance to the claimant of the credit or refund; and 
</P>
<P>(3) Such owner satisfies the requirements of paragraph (a) or (b) of this section.


</P>
</DIV8>


<DIV8 N="§ 70.505" NODE="27:2.0.1.4.7.6.219.5" TYPE="SECTION">
<HEAD>§ 70.505   Requirements on persons intending to file claim.</HEAD>
<P>Any person who, having paid the tax with respect to an article, desires to claim refund or credit of any amount of such tax to which the provisions of this subpart are applicable must:
</P>
<P>(a) File a claim, as provided in § 70.506, and
</P>
<P>(b) Comply with any other provisions of law or regulations which may apply to the claim.


</P>
</DIV8>

</DIV7>


<DIV7 N="220" NODE="27:2.0.1.4.7.6.220" TYPE="SUBJGRP">
<HEAD>Claim Procedure</HEAD>


<DIV8 N="§ 70.506" NODE="27:2.0.1.4.7.6.220.6" TYPE="SECTION">
<HEAD>§ 70.506   Execution and filing of claim.</HEAD>
<P>Claims to which this subpart is applicable must be executed on Form 2635 (5620.8) in accordance with the instructions on the form. (For provisions relating to handcarried documents, see 27 CFR 70.304). Claims for credit or refund of taxes collected by district directors of customs, to which the provisions of section 6423, I.R.C., are applicable and which Customs regulations (19 CFR Part 24—Customs Financial and Accounting Procedure) require to be filed with the appropriate TTB officer, must be executed and filed in accordance with applicable Customs regulations and this subpart. The claim must set forth each ground upon which the claim is made in sufficient detail to apprise the appropriate TTB officer of the exact basis therefor. Allegations pertaining to the bearing of the ultimate burden relate to additional conditions which must be established for a claim to be allowed and are not in themselves legal grounds for allowance of a claim. There shall also be attached to the form and made part of the claim the supporting data required by § 70.507. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim.
</P>
<CITA TYPE="N">[T.D.ATF-376, 61 FR 31031, June 19, 1996, as amended by T.D. ATF-450, 66 FR 29030, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.507" NODE="27:2.0.1.4.7.6.220.7" TYPE="SECTION">
<HEAD>§ 70.507   Data to be shown in claim.</HEAD>
<P>Claims to which this subpart is applicable, in addition to the requirements of § 70.506 must set forth or contain the following:
</P>
<P>(a) A statement that the claimant paid the amount claimed as a “tax” as defined in this subpart.
</P>
<P>(b) Full identification (by specific reference to the form number, the date of filing, the place of filing, and the amount paid on the basis of the particular form or return) of the tax forms or returns covering the payments for which refund or credit is claimed.
</P>
<P>(c) The written consent of the owner to the allowance of the refund or credit to the claimant (where the owner of the article in respect of which the tax was paid furnished the claimant the amount claimed for the purpose of paying the tax).
</P>
<P>(d) If the claimant (or owner, as the case may be) has neither sold nor contracted to sell the articles involved in the claim, a statement that the claimant (or owner, as the case may be) agrees not to shift, directly or indirectly in any manner whatsoever, the burden of the tax to any other person.
</P>
<P>(e) If the claim is for refund of a floor stocks tax, or of an amount resulting from an increase in rate of tax applicable to an article, a statement as to whether the price of the article was increased on or following the effective date of such floor stocks tax or rate increase, and if so, the date of the increase, together with full information as to the amount of such price increase.
</P>
<P>(f) Specific evidence (such as relevant records, invoices, or other documents, or affidavits of individuals having personal knowledge of pertinent facts) which will satisfactorily establish the conditions to allowance set forth in § 70.504.
</P>
<P>(g) The appropriate TTB officer may require the claimant to furnish as a part of the claim such additional information as may be deemed necessary.


</P>
</DIV8>


<DIV8 N="§ 70.508" NODE="27:2.0.1.4.7.6.220.8" TYPE="SECTION">
<HEAD>§ 70.508   Time for filing claim.</HEAD>
<P>No credit or refund of any amount of tax to which the provisions of this subpart apply shall be made unless the claimant files a claim therefor within the time prescribed by law and in accordance with the provisions of this subpart.


</P>
</DIV8>

</DIV7>


<DIV7 N="221" NODE="27:2.0.1.4.7.6.221" TYPE="SUBJGRP">
<HEAD>Penalties</HEAD>


<DIV8 N="§ 70.509" NODE="27:2.0.1.4.7.6.221.9" TYPE="SECTION">
<HEAD>§ 70.509   Penalties.</HEAD>
<P>It is an offense punishable by fine and imprisonment for anyone to make or cause to be made any false or fraudulent claim upon the United States, or to make any false or fraudulent statements, or representations, in support of any claim, or to falsely or fraudulently execute any documents required by the provisions of the internal revenue laws, or any regulations made in pursuance thereof.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:2.0.1.4.7.7" TYPE="SUBPART">
<HEAD>Subpart G—Losses Resulting From Disaster, Vandalism, or Malicious Mischief</HEAD>


<DIV7 N="222" NODE="27:2.0.1.4.7.7.222" TYPE="SUBJGRP">
<HEAD>Definitions</HEAD>

<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-376, 61 FR 31033, June 19, 1996, unless otherwise noted.


</PSPACE></SOURCE>

<DIV8 N="§ 70.601" NODE="27:2.0.1.4.7.7.222.1" TYPE="SECTION">
<HEAD>§ 70.601   Meaning of terms.</HEAD>
<P>When used in this subpart, terms are defined as follows in this section. Words in the plural shall include the singular, and vice versa, and words indicating the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude other things not named which are in the same general class or are otherwise within the scope of the term defined.
</P>
<P><I>Alcoholic liquors or liquors.</I> Distilled spirits, wines, and beer lost, made unmarketable, or condemned, as provided in this subpart.
</P>
<P><I>Beer.</I> Beer, ale, porter, stout, and other similar fermented beverages (including sake, or other similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume on which the internal revenue tax has been paid or determined, and if imported, on which duties have been paid.
</P>
<P><I>Claimant.</I> The person who held the liquors for sale at the time of the disaster or other specified cause of loss and who files a claim under this subpart.
</P>
<P><I>Commissioner of Customs.</I> The Commissioner of U.S. Customs and Border Protection, Department of Homeland Security, Washington, DC.
</P>
<P><I>Distilled spirits, or spirits.</I> Ethyl alcohol and other distillates such as whisky, brandy, rum, gin, vodka, in any form (including all dilutions and mixtures thereof, from whatever source or by whatever process produced), on which the internal revenue tax has been paid or determined and, if imported, on which duties have been paid.
</P>
<P><I>Duly authorized official.</I> Any Federal, State or local government official who is authorized to condemn liquors on which a claim is filed under this subpart.
</P>
<P><I>Duty or duties.</I> Any duty or duties paid under the customs laws of the United States.
</P>
<P><I>Major Disaster.</I> A flood, fire, hurricane, earthquake, storm, or other catastrophe defined as a “major disaster” under the Disaster Relief Act (42 U.S.C. 5122(2)), which occurs in any part of the United States and which the President has determined causes sufficient damage to warrant “major disaster” assistance under that Act.
</P>
<P><I>Tax.</I> (1) With respect to distilled spirits, “tax” means the internal revenue tax that is paid or determined on spirits.
</P>
<P>(2) With respect to wines, “tax” means the internal revenue tax that is paid or determined on the wine.
</P>
<P>(3) With respect to beer, “tax” means the internal revenue tax that is paid or determined on the beer.
</P>
<P><I>United States.</I> When used in a geographical sense includes only the States and the District of Columbia.
</P>
<P><I>Wines.</I> All still wines, effervescent wines, and flavored wines, on which internal revenue wine tax has been paid or determined, and if imported, on which duty has been paid.
</P>
<CITA TYPE="N">[T.D. ATF-376, 61 FR 31033, June 19, 1996, as amended by T.D. ATF-450, 66 FR 29030, May 29, 2001; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="223" NODE="27:2.0.1.4.7.7.223" TYPE="SUBJGRP">
<HEAD>Payments</HEAD>


<DIV8 N="§ 70.602" NODE="27:2.0.1.4.7.7.223.2" TYPE="SECTION">
<HEAD>§ 70.602   Circumstances under which payment may be made.</HEAD>
<P>(a) <I>Major disasters.</I> The appropriate TTB officer shall allow payment (without interest) of an amount equal to the tax paid or determined, and the Commissioner of Customs shall allow payment (without interest) of an amount equal to the duty paid, on distilled spirits, wines, and beer previously withdrawn, if the liquors are lost, made unmarketable, or condemned by a duly authorized official as the result of a major disaster (as defined in § 70.601).
</P>
<P>(b) <I>Other causes of loss</I>—(1) <I>Payment.</I> The appropriate TTB officer shall allow payment (without interest) of an amount equal to the tax paid or determined, and the Commissioner of Customs shall allow payment (without interest) of an amount equal to the duty paid, on distilled spirits, wines, and beer previously withdrawn, if the liquors are lost, made unmarketable, or condemned by a duly authorized official as a result of:
</P>
<P>(i) Fire, flood, casualty, or other disaster; or
</P>
<P>(ii) Breakage, destruction, or other damage (excluding theft) resulting from vandalism or malicious mischief.
</P>
<P>(2) <I>Minimum claim.</I> No claim of less than $250 will be allowed for losses resulting from any disaster or damage described in paragraph (b)(1) of this section.
</P>
<P>(c) <I>General.</I> Payment under this section may be made only if:
</P>
<P>(1) The disaster or other specified cause of loss occurred in the United States;
</P>
<P>(2) At the time of the disaster or other specified cause of loss, the liquors were being held for sale by the claimant;
</P>
<P>(3) Refund or credit of the amount claimed, or any part of the amount claimed, has not or will not be claimed for the same liquors under any other law or regulations; and
</P>
<P>(4) The claimant was not indemnified by any valid claim of insurance or otherwise for the tax and/or duty on the liquors covered by the claim.


</P>
</DIV8>

</DIV7>


<DIV7 N="224" NODE="27:2.0.1.4.7.7.224" TYPE="SUBJGRP">
<HEAD>Claims Procedures</HEAD>


<DIV8 N="§ 70.603" NODE="27:2.0.1.4.7.7.224.3" TYPE="SECTION">
<HEAD>§ 70.603   Execution and filing of claim.</HEAD>
<P>(a) <I>General.</I> (1) Claims under this subpart must be filed on Form 2635 (5620.8).
</P>
<P>(2) The claim shall include all the facts on which the claim is based, and be accompanied by a record of inventory of the liquors lost, made unmarketable, or condemned. (See § 70.604.)
</P>
<P>(3) The claim shall contain a statement that no other claim for refund or credit of the amount claimed, or for any part of the amount claimed, has been or will be filed under any other law or regulations.
</P>
<P>(b) <I>Major disasters.</I> Claims for refund of tax and/or duty on liquors which were lost, became unmarketable, or were condemned as a result of a major disaster must be filed not later than 6 months from the day on which the President determines that a major disaster has occurred.
</P>
<P>(c) <I>Other causes of loss.</I> (1) Claims for amounts of $250 or more for refund of tax and/or duty on liquors which were lost, became unmarketable, or were condemned as the result of:
</P>
<P>(i) Fire, flood, casualty, or other disaster; or
</P>
<P>(ii) Damage (excluding theft) resulting from vandalism or malicious mischief, must be filed within 6 months after the date on which the disaster or damage occurred.
</P>
<P>(2) Claims for amounts less than $250 will not be allowed.
</P>
<CITA TYPE="N">[T.D. ATF-376, 61 FR 31033, June 19, 1996, as amended by T.D. ATF-450, 66 FR 29030, May 29, 2001]


</CITA>
</DIV8>


<DIV8 N="§ 70.604" NODE="27:2.0.1.4.7.7.224.4" TYPE="SECTION">
<HEAD>§ 70.604   Record of inventory to support claims.</HEAD>
<P>(a) <I>Claims relating to distilled spirits.</I> The record of inventory of distilled spirits lost, made unmarketable, or condemned, which is required to support claims filed under § 70.603, shall show the following information:
</P>
<P>(1) Name and business address of claimant (as shown on claim, Form 2635 (5620.8)).
</P>
<P>(2) Address where the spirits were lost, became unmarketable, or were condemned, if different from the business address.
</P>
<P>(3) Kind of spirits.
</P>
<P>(4) Brand name.
</P>
<P>(5) For full cases, show:
</P>
<P>(i) Number of cases;
</P>
<P>(ii) Serial numbers;
</P>
<P>(iii) Bottles per case;
</P>
<P>(iv) Size of bottles;
</P>
<P>(v) Wine gallons per case;
</P>
<P>(vi) Proof; and
</P>
<P>(vii) Proof gallons.
</P>
<P>(6) For bottles not in cases, show:
</P>
<P>(i) Total number;
</P>
<P>(ii) Size of bottles;
</P>
<P>(iii) Wine gallons;
</P>
<P>(iv) Proof; and
</P>
<P>(v) Total proof gallons.
</P>
<P>(7) Total proof gallons for all items.
</P>
<P>(b) <I>Claims relating to wines.</I> The record of inventory of wines lost, made unmarketable, or condemned, which is required to support claims filed under § 70.603, shall show the following information:
</P>
<P>(1) Name and business address of claimant (as shown on claim, Form 2635 (5620.8)).
</P>
<P>(2) Address where the wines were lost, became unmarketable, or were condemned, if different from the business address.
</P>
<P>(3) Kind of wine.
</P>
<P>(4) Percent of alcohol by volume.
</P>
<P>(5) Number of barrels or kegs.
</P>
<P>(6) Kind and number of other bulk containers.
</P>
<P>(7) Number of full cases and bottles per case.
</P>
<P>(8) Size of bottles.
</P>
<P>(9) Number of bottles not in cases and wine gallons.
</P>
<P>(10) Total wine gallons.
</P>
<P>(c) <I>Claims relating to beer.</I> The record of inventory of beer lost, made unmarketable, or condemned, which is required to support claims filed under § 70.603, shall show the following information:
</P>
<P>(1) Name and business address of claimant (as shown on claim, Form 2635 (5620.8)).
</P>
<P>(2) Address where the beer was lost, became unmarketable, or was condemned, if different from the business address.
</P>
<P>(3) Number and size of barrels.
</P>
<P>(4) <I>For full cases, show:</I>
</P>
<P>(i) Number of cases;
</P>
<P>(ii) Bottles or cans per case; and
</P>
<P>(iii) Size (in ounces) of bottles or cans.
</P>
<P>(5) Number and size of bottles and cans not in cases.
</P>
<P>(6) Quantity in terms of 31-gallon barrels.
</P>
<P>(7) Total quantity.
</P>
<P>(d) <I>Special instructions.</I> (1) Inventories of domestic liquors, imported liquors, and liquors manufactured in the Virgin Islands shall be reported separately.
</P>
<P>(2) Liquors manufactured in Puerto Rico may not be included in claims filed under this subpart. Claims for losses of Puerto Rican liquors shall be filed with the Secretary of the Treasury of Puerto Rico under the laws of Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 70.605" NODE="27:2.0.1.4.7.7.224.5" TYPE="SECTION">
<HEAD>§ 70.605   Claims relating to imported, domestic, and Virgin Islands liquors.</HEAD>
<P>(a) Claims involving taxes on domestic liquors, imported liquors, and liquors manufactured in the Virgin Islands must show the quantities of each separately in the claim.
</P>
<P>(b) A separate claim on Form 2635 (5620.8) must be filed for customs duties.


</P>
</DIV8>


<DIV8 N="§ 70.606" NODE="27:2.0.1.4.7.7.224.6" TYPE="SECTION">
<HEAD>§ 70.606   Claimant to furnish proof.</HEAD>
<P>The claimant shall furnish proof to the satisfaction of the appropriate TTB officer regarding the following:
</P>
<P>(a) That the tax on the liquors, or the tax and duty if imported, was fully paid; or the tax, if not paid, was fully determined.
</P>
<P>(b) That the liquors were lost, made unmarketable, or condemned by a duly authorized official, by reason of damage sustained as a result of a disaster or other cause of loss specified in this subpart.
</P>
<P>(c) The type and date of occurrence of the disaster or other specified cause of loss, and the location of the liquors at the time.
</P>
<P>(d) That the claimant was not indemnified by a valid claim of insurance or otherwise for the tax, or tax and duty, on the liquors covered by the claim.
</P>
<P>(e) That the claimant is entitled to payment under this subpart.


</P>
</DIV8>


<DIV8 N="§ 70.607" NODE="27:2.0.1.4.7.7.224.7" TYPE="SECTION">
<HEAD>§ 70.607   Supporting evidence.</HEAD>
<P>(a) The claimant shall support the claim with any evidence (such as inventories, statements, invoices, bills, records, labels, formulas, stamps) that is available to submit, relating to the quantities and identities of the liquors, on which duty has been paid or tax has been paid or determined, that were on hand at the time of the disaster or other specified cause of loss and alleged to have been lost, made unmarketable, or condemned as a result of it.
</P>
<P>(b) If the claim is for refund of duty, the claimant shall furnish, if possible:
</P>
<P>(1) The customs number;
</P>
<P>(2) The date of entry; and
</P>
<P>(3) The name of the port of entry.


</P>
</DIV8>


<DIV8 N="§ 70.608" NODE="27:2.0.1.4.7.7.224.8" TYPE="SECTION">
<HEAD>§ 70.608   Action on claims.</HEAD>
<P>The appropriate TTB officer shall date stamp and examine each claim filed under this subpart and will determine the validity of the claim. Claims and supporting data involving customs duties will be forwarded to the Commissioner of Customs with a summary statement by the appropriate TTB officer regarding his or her findings.


</P>
</DIV8>

</DIV7>


<DIV7 N="225" NODE="27:2.0.1.4.7.7.225" TYPE="SUBJGRP">
<HEAD>Destruction of Liquors</HEAD>


<DIV8 N="§ 70.609" NODE="27:2.0.1.4.7.7.225.9" TYPE="SECTION">
<HEAD>§ 70.609   Supervision.</HEAD>
<P>When allowance has been made under this subpart for the tax and/or duty on liquors condemned by a duly authorized official or made unmarketable, the liquors shall be destroyed by suitable means under supervision satisfactory to the appropriate TTB officer, unless the liquors were previously destroyed under supervision satisfactory to the appropriate TTB officer. The Commissioner of Customs will notify the appropriate TTB officer as to allowance under this subpart of claims for duty on unmarketable or condemned liquors.


</P>
</DIV8>

</DIV7>


<DIV7 N="226" NODE="27:2.0.1.4.7.7.226" TYPE="SUBJGRP">
<HEAD>Penalties</HEAD>


<DIV8 N="§ 70.610" NODE="27:2.0.1.4.7.7.226.10" TYPE="SECTION">
<HEAD>§ 70.610   Penalties.</HEAD>
<P>(a) Penalties are provided in 26 U.S.C. 7206 for making any false or fraudulent statement under the penalties of perjury in support of any claim.
</P>
<P>(b) Penalties are provided in 26 U.S.C. 7207 for filing any false or fraudulent document under this subpart.
</P>
<P>(c) All laws and regulations, including penalties, which apply to internal revenue taxes on liquors shall, when appropriate, apply to payments made under this subpart the same as if the payments were actual refunds of internal taxes on liquors.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="H" NODE="27:2.0.1.4.7.8" TYPE="SUBPART">
<HEAD>Subpart H—Rules, Regulations and Forms</HEAD>


<DIV8 N="§ 70.701" NODE="27:2.0.1.4.7.8.227.1" TYPE="SECTION">
<HEAD>§ 70.701   Rules and regulations.</HEAD>
<P>(a) <I>Formulation.</I> (1) Alcohol, tobacco, and firearms rules take various forms. The most important rules are issued as Treasury decisions, prescribed by the Administrator, and approved by the Secretary. Other rules may be issued over the signature of the Administrator or the signature of any appropriate TTB officer. The channeling of rules varies with the circumstances. Treasury decisions are prepared within the appropriate TTB offices. After approval by the Administrator, Treasury decisions are forwarded to the Secretary for further consideration and final approval. 
</P>
<P>(2) Where required by 5 U.S.C. 553, the Administrator publishes in the <E T="04">Federal Register</E> general notice of proposed rules unless all persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law. Notice may also be published in the <E T="04">Federal Register</E> in such other instances as may be desirable. This notice includes (i) a statement of the time, place, and nature of public rulemaking proceedings; (ii) reference to the authority under which the rule is proposed; and (iii) either the terms or substance of the proposed rule or a description of the subjects and issues involved. Interested persons may participate in the rulemaking by submitting written data, views, or arguments. Persons may also submit requests for a public hearing. However, the Bureau reserves the right to determine, in the light of all circumstances, whether a public hearing should be held.
</P>
<P>(3) If the Bureau determines that the public good will be served thereby, it may hold a public hearing for discussion of the issues raised by the proposed regulations. Such a hearing is announced by a notice in the <E T="04">Federal Register,</E> stating the time and place where the hearing is to be held. The following rules govern the conduct of the public hearing only if incorporated by reference in the notice announcing the hearing:
</P>
<P>(i) A person wishing to make oral comments at a public hearing shall submit, within the time prescribed in the notice of hearing, an outline of the topics he wishes to discuss, and the time he wishes to devote to each topic. Ordinarily, a period of 10 minutes is the time allotted to each person for making his oral comments.
</P>
<P>(ii) A person making oral comments should be prepared to answer questions not only on the topics listed in his outline but also on matters relating to any written comments which he has submitted.
</P>
<P>(iii) At the conclusion of the presentation of comments of persons listed in the agenda, to the extent time permits, other comments will be received.
</P>
<P>(iv) Written comments submitted prior to the hearing shall be available at the hearing for inspection. Any request for copies of such written comments is treated as a request for records under 27 CFR 70.802(g).
</P>
<P>(v) To the extent resources permit, the public hearings to which this paragraph applies may be transcribed.
</P>
<P>(vi) In unusual circumstances or for good cause shown, the application of rules contained in this paragraph may be waived.
</P>
<P>(b) <I>Comments on proposed rules.</I> Interested persons may submit data, views, or arguments with respect to a notice of proposed rulemaking published pursuant to 5 U.S.C. 553. Procedures are provided in § 70.802(g) for members of the public to inspect and obtain copies of written comments submitted in response to proposed rules. All such comments are open in their entirety to public inspection. Therefore, the Bureau does not recognize any designation of material in comments as confidential or not to be disclosed, and any material that the commenter considers to be confidential or inappropriate for disclosure to the public should not be included in his comments. The name of any person submitting comments or requesting a public hearing, the issues which may be discussed at the hearing, and outlines relating to the hearing are open to public disclosure. (See paragraph (a)(3) of this section for rules relating to hearing outlines.)
</P>
<P>(c) <I>Petition to change rules.</I> Interested persons may petition for the issuance, amendment, or repeal of a rule. A petition for the issuance of a rule shall identify the section or sections of law involved; and a petition for the amendment or repeal of a rule shall set forth the section or sections of the regulations involved. The petition shall set forth the reasons for the requested action. Such petitions shall be given careful consideration, and the petitioner shall be advised of the action taken thereon. Petitions must be addressed to the Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005. A petition to establish a new American viticultural area or to modify an existing American viticultural area is subject to the rules in part 9 of this chapter.
</P>
<P>(d) <I>Publication of rules and regulations</I>—(1) <I>General.</I> All Alcohol and Tobacco Tax and Trade Bureau regulations and amendments thereto are published as Treasury Decisions which appear in the <E T="04">Federal Register,</E> the Code of Federal Regulations, and the quarterly Alcohol and Tobacco Tax and Trade Bureau (TTB) Bulletin. The TTB Bulletin is the authoritative instrument of the Bureau for announcing Treasury decisions, legislation, administrative matters, and other items of general interest. The Bulletin incorporates, into one publication, all matters of the Bureau which are of public record. It is the policy of the Bureau to publish in the Bulletin all substantive rulings necessary to promote a uniform application of all laws administered by the Bureau as well as rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin (including those published prior to July 1, 1972, in the Internal Revenue Bulletin). Procedures relating solely to matters of internal management are not published; however, regulations appearing in internal management documents and statements of internal practices and procedures that affect the rights and duties of the public are published. Rulings and procedures reported in the Bulletin do not have the force and effect of Department of the Treasury Regulations, but they may be used as precedents. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered. Concerned parties are cautioned against reaching the same conclusion in other cases unless the facts and circumstances are substantially the same. The Bulletin is published quarterly and may be obtained, on a subscription basis, from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.
</P>
<P>(2) <I>Objectives and standards for publication of TTB Rulings and TTB Procedures in the Alcohol, Tobacco and Firearms Bulletin.</I> (i)(A) A “TTB Ruling” is an official interpretation by the Bureau that has been published in the Bulletin for the information and guidance of taxpayers, Bureau officers, and others concerned. TTB Rulings represent the conclusions of the Bureau on the application of the law to the entire state of facts involved. In those that are based on positions taken in rulings to industry members or technical advice to Bureau field offices, identifying details and confidential information are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements concerning disclosure of information obtained from the public.
</P>
<P>(B) A “TTB Procedure” is a statement of procedure that affects the rights or duties of taxpayers or other members of the public under law and regulations administered by the Bureau or information that, although not necessarily affecting the rights and duties of the public, should be a matter of public knowledge. TTB Procedures establish methods for performing operations in compliance with the requirements of law and regulations. It is Bureau practice to publish as much of the internal management document or communication as is necessary for an understanding of the procedure. TTB Procedures may also be based on internal management documents which should be a matter of public knowledge even though not necessarily affecting the rights or duties of the public.
</P>
<P>(ii) It is the policy of the Bureau to publish in the Bulletin all rulings and other communications to members of the public or to Bureau field offices involving substantive law, procedures affecting taxpayer's rights or duties, or industry regulations, except those involving:
</P>
<P>(A) Issues specifically and clearly covered by statute or regulations;
</P>
<P>(B) Issues specifically covered by rulings, procedures, opinions, or court decisions previously published in the Bulletin;
</P>
<P>(C) Issues not likely to arise again because of unique or specific facts;
</P>
<P>(D) Determinations of fact rather than interpretations of law;
</P>
<P>(E) Acceptability under the law and regulations of containers, labels, and advertising involving alcoholic beverages;
</P>
<P>(F) Tobacco operations, such as the disposition of abandoned, seized, or condemned tobacco products;
</P>
<P>(G) Informers and informers' rewards; or
</P>
<P>(H) Disclosure of secret formulas, processes, business practices, and other similar information.
</P>
<P>(iii)(A) It is the practice of the Bureau to publish as much of the ruling or communication as is necessary for an understanding of the position stated. However, in order to prevent unwarranted invasions of personal privacy and to comply with statutory provisions, such as 18 U.S.C. 1905 and 26 U.S.C 6103 and 7213, dealing with disclosure of information obtained from members of the public, identifying details, including the names and addresses of persons involved, and information of a confidential nature are deleted from the ruling.
</P>
<P>(B) TTB Rulings published in the Bulletin do not have the force and effect of Department of the Treasury Regulations (including amendatory Treasury decisions) but are published to provide precedents to be used in the disposition of other cases, and may be cited and relied upon for that purpose. No unpublished ruling or decision may be relied on, used, or cited by any officer or employee of the Bureau as a precedent in the disposition of other cases.
</P>
<P>(C) Concerned persons generally may rely upon TTB Rulings published in the Bulletin in determining the Bureau treatment of their own transactions and need not request specific rulings applying the principles of a published TTB Ruling to the facts of their particular cases. However, since each TTB Ruling represents the conclusion of the Bureau as to the application of the law to the entire state of facts involved, taxpayers, Bureau personnel, and others concerned are cautioned against reaching the same conclusion in other cases unless the facts and circumstances are substantially the same. They should consider the effect of subsequent legislation, regulations, court decisions and TTB Rulings.
</P>
<P>(D) Comments and suggestions from taxpayers or other concerned persons on TTB Rulings being prepared for publication in the Bulletin may be solicited, if justified by special circumstances. Conferences on TTB Rulings being prepared for publication will not be granted except where the Bureau determines that such action is justified by special circumstances.
</P>
<P>(iv)(A) The appropriate TTB officer is responsible for administering the program for the publication of TTB Rulings and TTB Procedures in the Bulletin including the standards for style and format.
</P>
<P>(B) In accordance with the standards set forth in paragraph (d)(2)(ii) of this section, each appropriate TTB officer is responsible for the preparation and appropriate referral for publication of TTB Rulings reflecting interpretations of substantive law made by her or his office and communicated in writing to members of the public or field offices. In this connection, the Chief Counsel is responsible for the referral to the appropriate TTB officer, for consideration for publication as TTB rulings, of interpretations of substantive law made by her or his office.
</P>
<P>(C) In accordance with the standards set forth in paragraph (d)(2)(ii) of this section, the appropriate TTB officers and the Chief Counsel are responsible for determining whether procedures established by an office under their jurisdiction should be published as TTB Procedures and for the initiation, content, and appropriate referral for publication of such TTB Procedures.
</P>
<CITA TYPE="N">[T.D. ATF-47, 43 FR 10687, Mar. 15, 1978, as amended by T.D. ATF-201, 50 FR 12533, Mar. 29, 1985; T.D. ATF-249, 52 FR 5962, Feb. 27, 1987; Redesignated and amended by T.D. ATF-378, 61 FR 29955, June 13, 1996; T.D. ATF-432, 65 FR 69253, Nov. 16, 2000; T.D. ATF-450, 66 FR 29030, May 29, 2001; TTB-90, 76 FR 3502, Jan. 20, 2011; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.702" NODE="27:2.0.1.4.7.8.227.2" TYPE="SECTION">
<HEAD>§ 70.702   Forms and instructions.</HEAD>
<P>(a) <I>Tax return forms and instructions.</I> Tax forms and instructions are developed by the Bureau to explain the requirements of Chapters 32, 51, 52, and 53 of Title 26 of the United States Code or regulations issued thereunder, and are issued for the assistance of taxpayers in exercising their rights and discharging their duties under such laws and regulations. The tax return forms are the instruments through which taxes are collected.
</P>
<P>(b) <I>Other forms and instructions.</I> The Bureau provides other necessary or appropriate forms for assisting the public in complying with the technical requirements of the laws and regulations administered by the Bureau. The material contained in the forms and instructions, and the arrangement thereof, is carefully considered and is designed to lead the preparer step-by-step through an orderly accumulation of data to an accurate report of the information required.
</P>
<P>(c) <I>Procurement of forms and instructions.</I> Forms prescribed by this part are available as provided in § 70.2(b).
</P>
<CITA TYPE="N">[T.D. ATF-47, 43 FR 10687, Mar. 15, 1978, as amended by T.D. ATF-92, 46 FR 46914, Sept. 23, 1981; T.D. ATF-249, 52 FR 5962, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996. Redesignated and amended by T.D. ATF-378, 61 FR 29955, June 13, 1996]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:2.0.1.4.7.9" TYPE="SUBPART">
<HEAD>Subpart I—Disclosure</HEAD>


<DIV8 N="§ 70.801" NODE="27:2.0.1.4.7.9.227.1" TYPE="SECTION">
<HEAD>§ 70.801   Publicity of information.</HEAD>
<P>For information relating to the disclosure of records that is not contained in this subpart, see 31 CFR part 1 and the appendix of that part relating to the Alcohol and Tobacco Tax and Trade Bureau. Direct further questions to the Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street, Box 12, Washington, DC 20005; telephone (202) 453-2265.
</P>
<CITA TYPE="N">[T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.802" NODE="27:2.0.1.4.7.9.227.2" TYPE="SECTION">
<HEAD>§ 70.802   Rules for disclosure of certain specified matters.</HEAD>
<P>(a) <I>Accepted offers in compromise.</I> For each offer in compromise submitted and accepted pursuant to 26 U.S.C. 7122 in any case arising under Chapter 32 (relating to firearms and ammunition excise taxes) and Subtitle E (relating to alcohol, tobacco, and certain other excise taxes) of Title 26 of the United States Code, under section 107 of the Federal Alcohol Administration Act (27 U.S.C. 207) in any case arising under that Act, or in connection with property seized under Title I of the Gun Control Act of 1968 (18 U.S.C., Chapter 44) or title XI of the Organized Crime Control Act of 1970 (18 U.S.C., Chapter 40), a copy of the abstract and statement relating to the offer shall be kept available for public inspection, for a period of 1 year from the date of acceptance, with the appropriate TTB officer, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005. Information may not be disclosed, however, concerning any trade secrets, processes, operations, style of work, apparatus, confidential data, or any other matter within the prohibition of 18 U.S.C. 1905. “Return information” (defined at 26 U.S.C. 6103 (b)) may not be disclosed except as provided by 26 U.S.C. 6103 (k) (1).
</P>
<P>(b) <I>Information regarding liquor permits</I>—(1) <I>Applications for permits.</I> Information with respect to the handling of applications for basic permits under the Federal Alcohol Administration Act (27 U.S.C. 204) is maintained for public inspection until the expiration of 1 year following final action on these applications. See § 1.59 of this chapter for more details.
</P>
<P>(c) <I>List of plants and permittees.</I> Upon request, the appropriate TTB officer shall furnish a list of any type of qualified proprietor or permittee if the disclosure is not prohibited by law. 
</P>
<P>(d) <I>Information relating to certificates of label approval for distilled spirits, wine, and malt beverages.</I> Upon written request, the appropriate TTB officer, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005, shall furnish information as to the issuance, pursuant to section 105(e) of the Federal Alcohol Administration Act (27 U.S.C. 205(e)) and Part 4, 5, or 7 of this chapter, of certificates of label approval, or of exemption from label approval, for distilled spirits, wine, or malt beverages. The request must identify the class and type and brand name of the product and the name and address of the bottler or importer thereof or of the person to whom the certificate was issued. The person making the request may obtain reproductions or certified copies of such certificates upon payment of the established fees prescribed by 31 CFR 1.7. Information will not be disclosed, however, concerning any trade secrets, processes, operations, style of work, apparatus, confidential data, or any other matter prohibited by statutes such as but not limited to 18 U.S.C. 1905 or 26 U.S.C. 6103.
</P>
<P>(e) <I>True identity of companies authorized to use trade names.</I> Information regarding the true identity (name and address) of companies authorized to use trade names is available from the appropriate TTB officer, for disclosure upon request to any member of the public.
</P>
<P>(f) <I>Information relating to the tax classification of a roll of tobacco wrapped in reconstituted tobacco.</I> Upon written request, the appropriate TTB officer, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005, shall furnish information as to a Bureau determination of the tax classification of a roll of tobacco wrapped in reconstituted tobacco. The request must identify the brand name of the product and the name and address of the manufacturer or importer. Information may not be disclosed, however, concerning any trade secrets, processes, operations, apparatus, confidential data, or any other matter prohibited by statutes such as but not limited to 26 U.S.C. 6103 or 18 U.S.C. 1905.
</P>
<P>(g) <I>Comments received in response to a notice of proposed rulemaking.</I> (1) The Bureau will post written comments received in response to a notice of proposed rulemaking to the appropriate rulemaking docket on the Regulations.gov website at <I>https://www.regulations.gov.</I> The Bureau reserves the right not to post lengthy paper comments or attachments requiring scanning, although a notice regarding the receipt of any such non-posted comments or attachments will be made to Regulations.gov. TTB will not post duplicate or anonymous comments to Regulations.gov.
</P>
<P>(2) All comments and attachments received in response to a notice of proposed rulemaking may be inspected by any person in the Bureau's public reading room by appointment during normal business hours. Copies of comments (or portions therefore) also may be obtained. Appointment and copy requests may be addressed to the appropriate TTB officer in writing to the Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005 or by telephone at 202-453-2265. A person requesting copies should allow a reasonable time for processing the request. The provisions of 31 CFR 1.7, relating to fees, apply to requests made in accordance with this paragraph.
</P>
<CITA TYPE="N">[T.D. ATF-47, 43 FR 10687, Mar. 15, 1978, as amended by T.D. ATF-57, 44 FR 20794, May 9, 1979; T.D. ATF-201, 50 FR 12533, Mar. 29, 1985; T.D. ATF-249, 52 FR 5961, Feb. 27, 1987. Redesignated and amended by T.D. ATF-378, 61 FR 29955, 29956, June 13, 1996; T.D. ATF-450, 66 FR 29030, May 29, 2001; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 70.803" NODE="27:2.0.1.4.7.9.227.3" TYPE="SECTION">
<HEAD>§ 70.803   Requests or demands for disclosure in testimony and in related matters.</HEAD>
<P>(a) <I>Authority.</I> The provisions of this section are prescribed under the authority of 5 U.S.C. 301; section 2 of Reorganization Plan No. 26 of 1950 (64 Stat. 1280); 12 U.S.C. 3412; 18 U.S.C. 1905; section 2(g) of the Federal Alcohol Administration Act (27 U.S.C. 202(c)); and sections 5274, 6103, 7213, 7803 and 7805 of the Internal Revenue Code of 1954 (26 U.S.C. 5274, 6103, 7213, 7803 and 7805).
</P>
<P>(b) <I>Definitions.</I> The following definitions apply whenever the defined terms appear in this section.
</P>
<P>(1) <I>TTB officer or employee.</I> The terms <I>TTB officer</I> and <I>TTB employee</I> mean all officers and employees of the United States, engaged in the administration and enforcement of laws administered by the Alcohol and Tobacco Tax and Trade Bureau, and appointed or employed by, or subject to the directions, instructions or orders of, the Secretary of the Treasury or a delegate of the Secretary.
</P>
<P>(2) <I>TTB records or information.</I> The terms <I>TTB records</I> and <I>TTB information</I> mean any records (including copies thereof) or information, made or obtained by, furnished to, or coming to the knowledge of, any TTB officer or employee while acting in their official capacity, or because of their official status, with respect to the administration of laws administered by or concerning the Alcohol and Tobacco Tax and Trade Bureau.
</P>
<P>(3) <I>Demand.</I> The term <I>demand</I> means any subpoena, notice of deposition either upon oral examination or written interrogatory, or other order, of any court, administrative agency, or other authority.
</P>
<P>(c) <I>Disclosure of TTB records or information prohibited without prior approval of the appropriate TTB officer.</I> The disclosure, including the production, of TTB records or information to any person outside the Department of the Treasury or to any court, administrative agency, or other authority, in response to any request or demand for the disclosure of such records or information shall be made only with the prior approval of the appropriate TTB officer. However, nothing in this section restricts the disclosure of TTB records or information for which the appropriate TTB officer has determined that the disclosure is authorized under any provision of statute, Executive order, or regulations, or for which a procedure has been established by the Administrator. For example, this section does not restrict the disclosure of TTB records or information under § 71.22, nor does it restrict the disclosure of TTB records or information which is requested by U.S. attorneys or attorneys of the Department of Justice for use in cases which arise under the laws administered by or concerning the Alcohol and Tobacco Tax and Trade Bureau and which are referred by the Department of the Treasury to the Department of Justice for prosecution or defense.
</P>
<P>(d) <I>Delegation of authority to determine disclosure and establish procedures.</I> The appropriate TTB officer is hereby authorized to determine whether or not TTB officers and employees will be permitted to disclose TTB records or information in response to: 
</P>
<P>(1) A request by any court, administrative agency, or other authority, or by any person, for the disclosure of such records or information; or
</P>
<P>(2) A demand for the disclosure of such records or information. 
</P>
<P>(3) The Administrator is also authorized to establish such other procedures as he or she may deem necessary with respect to the disclosure of TTB records or information by TTB officers and employees. Any determination by the appropriate TTB officer as to whether TTB records or information will be disclosed, or any procedure established by the Administrator in connection therewith, must be made in accordance with applicable statutes, Executive orders, regulations, and any instructions that may be issued by the Secretary. Notwithstanding the preceding provisions of this paragraph, the appropriate TTB officer shall, where either the Secretary or such officer deems it appropriate, refer the opposing of a request or demand for disclosure of TTB records or information to the Secretary. 
</P>
<P>(e) <I>Procedure in the event of a request or demand for TTB records or information</I>—(1) <I>Request procedure.</I> Any TTB officer or employee who receives a request for TTB records or information, the disposition of which is not covered by a procedure established by the Administrator, must promptly communicate the contents of the request to the appropriate TTB officer. The officer or employee must await instructions from the appropriate TTB officer concerning the response to the request.
</P>
<P>(2) <I>Demand procedure.</I> Any TTB officer or employee who is served with a demand for TTB records or information, the disposition of which is not covered by a procedure established by the Administrator, must promptly, and without awaiting appearance before the court, administrative agency, or other authority, communicate the contents of the demand to the appropriate TTB officer. The TTB officer or employee must await instructions from the appropriate TTB officer concerning the response to the demand. If it is determined by the appropriate TTB officer that the demand should be opposed, the U.S. attorney, his or her assistant, or other appropriate legal representative shall be requested to respectfully inform the court, administrative agency, or other authority that the appropriate TTB officer has instructed the TTB officer or employee to refuse to disclose the TTB records or information sought. If instructions have not been received from the appropriate TTB officer at the time when the TTB officer or employee is required to appear before the court, administrative agency, or other authority in response to the demand, the U.S. attorney, his or her assistant, or other appropriate legal representative must be requested to appear with the TTB officer or employee upon whom the demand has been served and request additional time in which to receive such instructions. In the event the court, administrative agency, or other authority rules adversely with respect to the refusal to disclose the records or information pursuant to the instructions of the appropriate TTB officer, or declines to defer a ruling until instructions from the appropriate TTB officer have been received, the TTB officer or employee upon whom the demand has been served must, pursuant to this section, respectfully decline to disclose the TTB records or information sought. 
</P>
<P>(3) <I>Affidavit required for testimony.</I> If testimony of a TTB officer or employee is sought by a request or demand on behalf of a party other than a State in any case or matter in which the United States is not a party, an affidavit, or if that is not feasible, a statement shall be submitted. The affidavit or statement shall be prepared by the party (or party's attorney) seeking the testimony, and shall set forth a summary of the testimony sought and its relevance to the proceedings. The affidavit or statement must be submitted before permission to testify may be granted. The appropriate TTB officer may, upon request and for good cause shown, waive the requirement of this paragraph. 
</P>
<P>(4) <I>Time limit for serving request or demand.</I> The request or demand, together with the affidavit or statement (if required by paragraph (e)(3) of this section), must be served at least 5 working days prior to the scheduled date of testimony or disclosure of records, in order to ensure that the appropriate TTB officer has adequate time to consider whether to grant the request or demand. The appropriate TTB officer may, upon request and for good cause shown, waive the requirement of this paragraph. 
</P>
<P>(5) <I>Factors to be considered in determining whether a request or demand will be granted.</I> The appropriate TTB officer must consider whether granting the request or demand would be appropriate under the relevant rules of procedure and substantive law concerning privilege. Among the requests or demands that will not be granted are those that would, if granted, result in— 
</P>
<P>(i) The violation of a statute, such as 26 U.S.C. 6103 or 7213, or a rule of procedure, such as the grand jury secrecy rule (F.R.Cr.P. Rule 6(e)), or a specific regulation; 
</P>
<P>(ii) The disclosure of classified information; 
</P>
<P>(iii) The disclosure of a confidential source or informant, unless the TTB officer or employee and the source or informant, have no objection; 
</P>
<P>(iv) The disclosure of investigative records compiled for law enforcement purposes if enforcement proceedings would thereby be impeded, or of investigative techniques and procedures whose effectiveness would thereby be impaired, unless the appropriate TTB officer determines that the administration of justice requires disclosure; 
</P>
<P>(v) The disclosure of trade secrets without the owner's consent; or 
</P>
<P>(vi) Testimony in a case in which TTB has no interest, records or other official information. 
</P>
<P>(f) <I>State cases.</I> The appropriate TTB officer, may, in the interest of Federal and State law enforcement, upon receipt of demands or requests of State authorities, and at the expense of the State, authorize employees under their supervision to attend trials and administrative hearings in liquor, tobacco, firearms, or explosives cases in which the State is a party or on behalf of the State in any criminal case, to produce records, and to testify as to facts coming to their knowledge in their official capacities. However, in cases where a defendant in a criminal case requests or demands testimony or the production of TTB records or information, authorization from the appropriate TTB officer is required. Production or testimony may not divulge information contrary to 26 U.S.C. 6103 and 7213, or 12 U.S.C. 3412. See also 18 U.S.C. 1905.
</P>
<P>(g) <I>Penalties.</I> Any TTB officer or employee who disobeys the provisions of this section will be subject to dismissal and may incur criminal liability.
</P>
<CITA TYPE="N">[T.D ATF-57, 44 FR 27094, May 9, 1979, as amended by T.D. ATF-302, 55 FR 47325, Nov. 13, 1990. Redesignated by T.D. ATF-378, 61 FR 29955, June 13, 1996, as amended by T.D. ATF-446a, 66 FR 19089, Apr. 13, 2001; T.D. ATF-450, 66 FR 29030, May 29, 2001; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="71" NODE="27:2.0.1.4.8" TYPE="PART">
<HEAD>PART 71—RULES OF PRACTICE IN PERMIT PROCEEDINGS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>5 U.S.C. 551-559, 26 U.S.C. 5171, 5181, 5271, 5712, 5713, 7805, 27 U.S.C. 204.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>21 FR 1441, Mar. 6, 1956, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. ATF-463, 66 FR 42734, Aug. 15, 2001.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 71 appear by T.D. ATF-414, 64 FR 49084, Sept. 10, 1999, and T.D. ATF-463, 66 FR 42734, 42735, Aug. 15, 2001.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:2.0.1.4.8.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope and Construction of Regulations</HEAD>


<DIV8 N="§ 71.1" NODE="27:2.0.1.4.8.1.244.1" TYPE="SECTION">
<HEAD>§ 71.1   Scope of part.</HEAD>
<P>The regulations in this part govern the procedure and practice in connection with the disapproval of applications for basic permits, and for the suspension, revocation and annulment of such permits under sections 3 and 4 of the Federal Alcohol Administration Act (27 U.S.C. 201 <I>et seq.</I>) and disapproval, suspension, and revocation of permits under title 26 of the U.S. Code. The regulations in this part shall also govern, insofar as applicable, any adversary proceeding involving adjudication required by statute to be determined on the record after opportunity for hearing, under laws administered by the Alcohol and Tobacco Tax and Trade Bureau.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956, as amended by T.D. 6389, 24 FR 4790, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 71.1, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 71.2" NODE="27:2.0.1.4.8.1.244.2" TYPE="SECTION">
<HEAD>§ 71.2   Liberal construction.</HEAD>
<P>The regulations in this part shall be liberally construed to secure just, expeditious, and efficient determination of the issues presented. The Rules of Civil Procedure for the U.S. District Courts (28 U.S.C. appendix), where applicable, shall be a guide in any situation not provided for or controlled by this part but shall be liberally construed or relaxed when necessary.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46917, Sept. 23, 1981, as amended by  T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 71.3" NODE="27:2.0.1.4.8.1.244.3" TYPE="SECTION">
<HEAD>§ 71.3   Forms prescribed.</HEAD>
<P>(a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part.
</P>
<P>(b) Forms prescribed by this part are available for printing through the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46918, Sept. 23, 1981, as amended by T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. TTB-44, 71 FR 16964, Apr. 4, 2006; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 71.4" NODE="27:2.0.1.4.8.1.244.4" TYPE="SECTION">
<HEAD>§ 71.4   Delegations of the Administrator.</HEAD>
<P>Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.71, Delegation of the Administrator's Authorities in 27 CFR Part 71, Rules of Practice in Permit Proceedings. You may obtain a copy of this order by accessing the TTB Web site (<I>https://www.ttb.gov</I>) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 8970, Cincinnati, OH 45202.
</P>
<CITA TYPE="N">[T.D. TTB-44, 71 FR 16964, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.4.8.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 71.5" NODE="27:2.0.1.4.8.2.244.1" TYPE="SECTION">
<HEAD>§ 71.5   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this subpart. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “include” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>Administrative law judge.</I> The person appointed pursuant to 5 U.S.C. 3105, designated to preside over any administrative proceedings under this part.
</P>
<P><I>Administrator.</I> The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC.
</P>
<P><I>Applicant.</I> Any person who has filed an initial application for a permit under the Federal Alcohol Administration Act or the Internal Revenue Code (26 U.S.C.).
</P>
<P><I>Application.</I> Any application for a permit under the Federal Alcohol Administration Act or the Internal Revenue Code (26 U.S.C.) for operations not covered by an existing permit.
</P>
<P><I>Appropriate TTB officer.</I> An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.71, Delegation of the Administrator's Authorities in 27 CFR Part 71, Rules of Practice in Permit Proceedings.
</P>
<P><I>Attorney for the Government.</I> The attorney in the appropriate office of Chief Counsel authorized to represent the appropriate TTB officer in the proceeding.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Citation.</I> Includes any notice contemplating the disapproval of an application or any order to show cause why a permit should not be suspended, revoked or annulled.
</P>
<P><I>Initial decision.</I> The decision of the appropriate TTB officer or administrative law judge in a proceeding on the suspension, revocation or annulment of a permit.
</P>
<P><I>Other term.</I> Any other term defined in the Federal Alcohol Administration Act (27 U.S.C. 201), the Internal Revenue Code (26 U.S.C.) or the Administrative Procedure Act (5 U.S.C. 551), where used in this part, shall have the meaning assigned to it therein.
</P>
<P><I>Permit</I>—(a) <I>Alcohol fuel permit.</I> The document issued under 26 U.S.C. 5181, authorizing the person named therein to engage in the business described therein.
</P>
<P>(b) <I>Basic permit.</I> The document authorizing the person named therein to engage in a designated business or activity under the Federal Alcohol Administration Act.
</P>
<P>(c) <I>Industrial use permit.</I> The document issued under 26 U.S.C. 5271(a), authorizing the person named therein to withdraw and use distilled spirits free of tax in accordance with part 22 of this chapter, or withdraw and deal in or use specially denatured spirits in accordance with part 20 of this chapter, as described therein.
</P>
<P>(d) <I>Operating permit.</I> The document issued under 26 U.S.C. 5171, authorizing the person named therein to engage in the business described therein.
</P>
<P>(e) <I>Tobacco permit.</I> The document issued under 26 U.S.C. 5713(a), authorizing the person named therein to engage in the business described therein.
</P>
<P><I>Permittee.</I> Any person holding a basic permit under the Federal Alcohol Administration Act or the Internal Revenue Code (26 U.S.C.).
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company, or corporation.
</P>
<P><I>Recommended decision.</I> The advisory decision of the administrative law judge in any proceeding on an initial application for a permit.
</P>
<P><I>Respondent.</I> Any person holding a permit against which an order has been issued to show cause why such permit should not be suspended, revoked or annulled.
</P>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13543, Mar. 31, 1978; 44 FR 55845, Sept. 28, 1978, and amended by T.D. ATF-62, 44 FR 71696, Dec. 11, 1979; T.D. ATF-199, 50 FR 9196, Mar. 6, 1985; T.D ATF-244, 51 FR 45762, Dec. 22, 1986; T.D. ATF-374, 61 FR 29956, June 13, 1996; T.D. ATF-414, 64 FR 49084, Sept. 10, 1999; T.D. TTB-44, 71 FR 16964, Apr. 4, 2006; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.4.8.3" TYPE="SUBPART">
<HEAD>Subpart C—General</HEAD>


<DIV8 N="§ 71.25" NODE="27:2.0.1.4.8.3.244.1" TYPE="SECTION">
<HEAD>§ 71.25   Communications and pleadings.</HEAD>
<P>All communications to the Government regarding the procedures set forth in this part and all pleadings, such as answers, motions, requests, or other papers or documents required or permitted to be filed under this part, relating to a proceeding pending before an administrative law judge, shall be addressed to the administrative law judge, at his post of duty or to the administrative law judge, in care of the appropriate TTB officer to be forwarded to the examiner. Communications concerning proceedings not pending before an administrative law judge, should be addressed to the appropriate TTB officer or the Administrator, as the case may be. All pleadings should be filed in quadruplicate.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.26" NODE="27:2.0.1.4.8.3.244.2" TYPE="SECTION">
<HEAD>§ 71.26   Service on applicant or respondent.</HEAD>
<P>All orders, notices, citations, motions and other formal documents, except subpoenas, required to be served under the regulations in this part may be served by mailing a signed duplicate original copy thereof to the permittee or applicant by registered mail, with request for return receipt card, at the address stated in his permit or application or at his last known address, or by delivery of such original copy to the permittee or applicant personally, or in the case of a corporation, partnership, or other unincorporated association, by delivering the same to an officer, or manager, or general agent thereof, or to its attorney of record. Such personal service may be made by any employee of the Alcohol and Tobacco Tax and Trade Bureau or by any employee of the Treasury Department designated by the Secretary. A certificate of mailing and the return receipt card, or certificate of service signed by the person making such service, shall be filed as a part of the record.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55846, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 71.27" NODE="27:2.0.1.4.8.3.244.3" TYPE="SECTION">
<HEAD>§ 71.27   Service on the appropriate TTB officer or Administrator.</HEAD>
<P>Pleadings, motions, notices, and other formal documents, except subpoenas, may be served, by registered mail or personally, on the appropriate TTB officer (or upon the attorney for the Government on behalf of the appropriate TTB officer, or on the Administrator, if the proceeding is before him or her for review on appeal).
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV7 N="244" NODE="27:2.0.1.4.8.3.244" TYPE="SUBJGRP">
<HEAD>Time</HEAD>


<DIV8 N="§ 71.28" NODE="27:2.0.1.4.8.3.244.4" TYPE="SECTION">
<HEAD>§ 71.28   Computation.</HEAD>
<P>In computing any period of time prescribed or allowed by this part, the day of the act, event or default after which the designated period of time is to run, is not to be included. The last day of the period to be computed is to be included, unless it be a Saturday, Sunday or legal holiday, in which event the period runs until the next day which is neither a Saturday, Sunday or legal holiday. Pleading, requests, or other papers or documents required or permitted to be filed under this part must be received for filing at the appropriate office within the time limits, if any, for such filing.


</P>
</DIV8>


<DIV8 N="§ 71.29" NODE="27:2.0.1.4.8.3.244.5" TYPE="SECTION">
<HEAD>§ 71.29   Continuances and extensions.</HEAD>
<P>For good cause shown, the administrative law judge, Administrator, or the appropriate TTB officer, as the case may be, may grant continuances and as to all matters pending before him or her extend any time limit prescribed by the regulations in this part (except where the time limit is statutory).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and Sec. 38, Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744))
</SECAUTH>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978; T.D. ATF-374, 61 FR 29957, June 13, 1996; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="245" NODE="27:2.0.1.4.8.3.245" TYPE="SUBJGRP">
<HEAD>Representation at Hearings</HEAD>


<DIV8 N="§ 71.30" NODE="27:2.0.1.4.8.3.245.6" TYPE="SECTION">
<HEAD>§ 71.30   Personal representation.</HEAD>
<P>Any individual or member of a partnership may after adequate identification, appear for himself, or such partnership, and a corporation or association may be represented by a bona fide officer of such corporation or association, upon showing of adequate authorization. 


</P>
</DIV8>


<DIV8 N="§ 71.31" NODE="27:2.0.1.4.8.3.245.7" TYPE="SECTION">
<HEAD>§ 71.31   Attorneys and other representatives.</HEAD>
<P>A respondent or applicant may be represented by an attorney, certified public accountant, or other person enrolled to practice before the Alcohol and Tobacco Tax and Trade Bureau under 31 CFR part 8—Practice before the Alcohol and Tobacco Tax and Trade Bureau. The representative shall file in the proceeding a duly executed power of attorney to represent the applicant or respondent. See 26 CFR 601.501 through 601.527 (conference and practice requirements). The appropriate TTB officer shall be represented in proceedings under this part by the attorney for the Government who is authorized to execute and file motions, briefs, and other papers in the proceeding, on behalf of the appropriate TTB officer, in his own name as “Attorney for the Government”.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-48, 44 FR 55846, Sept. 28, 1979, as amended by T.D. ATF-92, 46 FR 46918, Sept. 23, 1981; T.D. ATF-374, 61 FR 29957, June 13, 1996; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.4.8.4" TYPE="SUBPART">
<HEAD>Subpart D—Compliance and Settlement</HEAD>


<DIV8 N="§ 71.35" NODE="27:2.0.1.4.8.4.246.1" TYPE="SECTION">
<HEAD>§ 71.35   Opportunity for compliance.</HEAD>
<P>Except in proceedings involving willfulness or those in which the public interest requires otherwise, and the appropriate TTB officer so alleges in his citation, stating his reasons therefor, no permit shall be suspended, revoked or annulled, unless, prior to the institution of proceedings, facts or conduct warranting such action shall have been called to the attention of the permittee by the appropriate TTB officer, in writing, and the permittee shall have been accorded an opportunity to demonstrate or achieve compliance with all lawful requirements, as set forth in section 9(b) of the Administrative Procedure Act. If the permittee fails to meet the requirements of the law and regulations within such reasonable time as may be specified by the appropriate TTB officer, proceedings for suspension, revocation or annulment of the permit shall be initiated.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9196, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV7 N="246" NODE="27:2.0.1.4.8.4.246" TYPE="SUBJGRP">
<HEAD>Informal Settlement</HEAD>


<DIV8 N="§ 71.36" NODE="27:2.0.1.4.8.4.246.2" TYPE="SECTION">
<HEAD>§ 71.36   General.</HEAD>
<P>In all proceedings in which a permittee is cited to show cause why the permit should not be suspended, revoked or annulled, the permittee shall be afforded opportunity for the submission and consideration of facts, arguments, offers of settlement, or proposals of adjustment, where time, the nature of the proceeding, and the public interest permit. Such submittals should be made to the appropriate TTB officer, but may be made through the attorney for the Government. Where necessary, the date of the hearing may be postponed, pending consideration of such proposals, when they are made in good faith and not for the purpose of delay. If proposals of settlement are submitted, and they are considered unsatisfactory, the appropriate TTB officer may reject the proposals and may, either directly or through the attorney for the Government, inform the permittee of any conditions on which the alleged violations may be settled. If the proposals of settlement are considered satisfactory to the appropriate TTB officer, the permittee shall be notified thereof and the proceeding shall be dismissed, unless such proposals of settlement include a monetary offer in compromise considered satisfactory to the appropriate TTB officer, in which event the proceeding shall be held in abeyance pending final action on such monetary offer in compromise.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45762, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.37" NODE="27:2.0.1.4.8.4.246.3" TYPE="SECTION">
<HEAD>§ 71.37   Notice of contemplated action.</HEAD>
<P>Where the appropriate TTB officer believes that the matter may be settled informally, i.e., without formal administrative proceedings, he shall, in accordance with section 5 (b) of the Administrative Procedure Act, prior to the issuance of a citation, inform the permittee of the contemplated issuance of an order to show cause why his permit should not be suspended, revoked or annulled, and that he is being given an opportunity for the submission and consideration of facts, arguments, offers of settlement, or proposals of adjustment. The notice should inform the permittee of the charges on which the citation would be based, if issued, and afford him a period of 10 days from the date of the notice, or such longer period as the appropriate TTB officer deems necessary, in which to submit proposals of settlement to the appropriate TTB officer. Where informal settlement is not reached promptly because of inaction of the permittee or proposals are made for the purpose of delay, a citation shall be issued in accordance with §§ 71.55 and 71.56.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9196, Mar. 6, 1985; T.D. ATF-244, 51 FR 45763, Dec. 22, 1986; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.38" NODE="27:2.0.1.4.8.4.246.4" TYPE="SECTION">
<HEAD>§ 71.38   Limitation on informal settlement.</HEAD>
<P>Where the evidence is conclusive and the nature of the violation is such as to preclude any settlement short of suspension, revocation or annulment, or the violation is of a continuing character that necessitates immediate action to protect the public interest, or where the appropriate TTB officer believes that any informal settlement of the alleged violation will not insure future compliance with the laws and regulations, or in any similar case where the circumstances are such as to clearly preclude informal settlement, and the appropriate TTB officer so finds and states his reasons therefor as provided in § 71.35, he may restrict settlement to that provided in § 71.71.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:2.0.1.4.8.5" TYPE="SUBPART">
<HEAD>Subpart E—Grounds for Citation</HEAD>


<DIV8 N="§ 71.45" NODE="27:2.0.1.4.8.5.247.1" TYPE="SECTION">
<HEAD>§ 71.45   Basic permits.</HEAD>
<P>Whenever the appropriate TTB officer has reason to believe that any person has willfully violated any of the conditions of his basic permit, or has not in fact or in good faith engaged in the operations authorized by such permit for a period of more than two years, or that such permit was procured through fraud, misrepresentation or concealment of material facts, he shall issue a citation for the suspension, revocation or annulment of such permit, as the case may be.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956, as amended by T.D. 6389, 24 FR 4790, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.46" NODE="27:2.0.1.4.8.5.247.2" TYPE="SECTION">
<HEAD>§ 71.46   Suspension and revocation of tobacco permits.</HEAD>
<P>Whenever the appropriate TTB officer has reason to believe that any person has not in good faith complied with any of the provisions of 26 U.S.C. chapter 52 or regulations issued thereunder, or has not complied with any provision of 26 U.S.C. which involves intent to defraud, or has violated any of the conditions of his permit, or has failed to disclose any material information required, or has made any materially false statement, in the application for his permit, or has failed to maintain his premises in such manner as to protect the revenue, or is, by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with 26 U.S.C. chapter 52, or has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, the appropriate TTB officer shall issue a citation for the revocation or suspension of such permit.
</P>
<SECAUTH TYPE="N">(72 Stat 1421, as amended; 26 U.S.C. 5713)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14491, Mar. 31, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 71.48" NODE="27:2.0.1.4.8.5.247.3" TYPE="SECTION">
<HEAD>§ 71.48   Operating permits and industrial use permits.</HEAD>
<P>Whenever the appropriate TTB officer has reason to believe that any person who has an operating permit or an industrial use permit:
</P>
<P>(a) Has not in good faith complied with the provisions of 26 U.S.C. chapter 51 or enabling regulations; or
</P>
<P>(b) Has violated the conditions of such permit; or
</P>
<P>(c) Has made any false statement as to any material fact in his application therefor; or 
</P>
<P>(d) Has failed to disclose any material information required to be furnished; or
</P>
<P>(e) Has violated or conspired to violate any law of the United States relating to intoxicating liquor or has been convicted of any offense under 26 U.S.C. punishable as a felony or of any conspiracy to commit such an offense; or
</P>
<P>(f) Is (in the case of any person who has a permit to procure or use distilled spirits free of tax for nonbeverage purposes and not for resale or use in the manufacture of any product for sale, or to procure, deal in, or use specially denatured distilled spirits) by reason of his operations, no longer warranted in procuring or using the distilled spirits or specially denatured distilled spirits authorized by his permit; or
</P>
<P>(g) Has, in the case of any person who has a permit to procure, deal in, or use specially denatured distilled spirits, manufactured articles which do not correspond to the descriptions and limitation prescribed by law and regulations; or
</P>
<P>(h) Has not engaged in any of the operations authorized by the permit for a period of more than 2 years;
</P>
<FP>He may issue a citation for the revocation or suspension of such permit.
</FP>
<SECAUTH TYPE="N">(72 Stat. 1349, 1370; 26 U.S.C. 5171, 5271)
</SECAUTH>
<CITA TYPE="N">[T.D. 6389, 24 FR 4790, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55846, Sept. 28, 1979; T.D. ATF-199, 50 FR 9196, 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.49" NODE="27:2.0.1.4.8.5.247.4" TYPE="SECTION">
<HEAD>§ 71.49   Applications for basic permits.</HEAD>
<P>If, upon examination of any application (including a renewal application) for a basic permit, the appropriate TTB officer has reason to believe that the applicant is not entitled to such permit he shall issue a citation for the contemplated disapproval of the application.
</P>
<CITA TYPE="N">[T.D. 6954, 33 FR 6814, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.49a" NODE="27:2.0.1.4.8.5.247.5" TYPE="SECTION">
<HEAD>§ 71.49a   Applications for operating permits and industrial use permits.</HEAD>
<P>If, on examination of an application for an operating permit or an industrial use permit, the appropriate TTB officer has reason to believe:
</P>
<P>(a) In case of an application to withdraw and use distilled spirits free of tax, the applicant is not authorized by law or regulations issued pursuant thereto to withdraw or use such distilled spirits; or
</P>
<P>(b) The applicant (including in the case of a corporation, any officer, administrator, or principal stockholder and, in the case of a partnership, a partner) is, by reason of the applicant's business experience, financial standing, or trade connections, not likely to maintain operations in compliance with 26 U.S.C. chapter 51 or implementing regulations; or
</P>
<P>(c) The applicant has failed to disclose any material information required, or has made any false statement as to any material fact, in connection with his application; or
</P>
<P>(d) The premises on which the applicant proposes to conduct the business are not adequate to protect the revenue;
</P>
<FP>He may issue a citation for the contemplated disapproval of the application.
</FP>
<SECAUTH TYPE="N">(72 Stat. 1349, 1370; 26 U.S.C. 5171, 5271)
</SECAUTH>
<CITA TYPE="N">[T.D. 6389, 24 FR 4791, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55846, Sept. 28, 1979; T.D. ATF-199, 50 FR 9196, 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 71.49b" NODE="27:2.0.1.4.8.5.247.6" TYPE="SECTION">
<HEAD>§ 71.49b   Denial of application for tobacco permit.</HEAD>
<P>The appropriate TTB officer may issue a citation for the contemplated disapproval of an application for a tobacco permit provided for in 26 U.S.C. 5713, if the appropriate TTB officer on examination of the application has reason to believe—
</P>
<P>(a) The premises on which it is proposed to conduct the business are not adequate to protect the revenue;
</P>
<P>(b) The applicant for a permit does not meet the minimum manufacturing and activity requirements in § 40.61 of this chapter; or
</P>
<P>(c) The applicant (including, in the case of a corporation, any officer, administrator, or principal stockholder and, in the case of a partnership, a partner) is, by reason of his business experience, financial standing, or trade connections, or by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with 26 U.S.C. chapter 52, or has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, or has failed to disclose any material information required or made any material false statement in the application.
</P>
<SECAUTH TYPE="N">(72 Stat. 1421, as amended; 26 U.S.C. 5712)
</SECAUTH>
<CITA TYPE="N">[T.D. TTB-75, 74 FR 14491, Mar. 31, 2009]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:2.0.1.4.8.6" TYPE="SUBPART">
<HEAD>Subpart F—Hearing Procedure</HEAD>


<DIV7 N="247" NODE="27:2.0.1.4.8.6.247" TYPE="SUBJGRP">
<HEAD>Citations</HEAD>


<DIV8 N="§ 71.55" NODE="27:2.0.1.4.8.6.247.1" TYPE="SECTION">
<HEAD>§ 71.55   Content.</HEAD>
<P>(a) Citation for the suspension, revocation or annulment of a permit shall be issued by the appropriate TTB officer and shall set forth (1) the sections of law and regulations relied upon for authority and jurisdiction, (2) in separate paragraphs, the matters of fact constituting the violations specified, dates, places, section of law and regulations violated, and (3) the permittee has 15 days within which to request a hearing before an administrative law judge.
</P>
<P>(b) Citations for the disapproval of an application for a permit shall set forth (1) the sections of law and regulations relied upon for authority and jurisdiction, (2) in separate paragraphs, the matters of fact and law relied upon for the contemplated disapproval of the application, and (3) that the application will be disapproved unless a hearing is requested within 15 days.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45763, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.56" NODE="27:2.0.1.4.8.6.247.2" TYPE="SECTION">
<HEAD>§ 71.56   Form.</HEAD>
<P>Citations shall be issued on the following forms:
</P>
<P>(a) Form 5000.6. “Order To Show Cause”, shall be used for all citations for the suspension, revocation, or annulment, as the case may be, of permits under the Internal Revenue Code or the Federal Alcohol Administration Act.
</P>
<P>(b) Forms 5000.17. “Notice of Contemplated Disapproval of Application For Basic Permit,” shall be used to issue notice of contemplated disapproval of applications for permit.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 71.56, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 71.57" NODE="27:2.0.1.4.8.6.247.3" TYPE="SECTION">
<HEAD>§ 71.57   Execution and disposition.</HEAD>
<P>Forms 5000.6 and 5000.17 shall be executed in quintuplicate. A signed duplicated original shall be served on the permittee. If a hearing is requested, one copy shall be sent to the administrative law judge designated to conduct the hearing. The original copy containing the certificate of service shall be placed in the official record of the proceeding; and the remaining copies shall be retained by the appropriate TTB officer.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45763, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.58" NODE="27:2.0.1.4.8.6.247.4" TYPE="SECTION">
<HEAD>§ 71.58   Designated place of hearing.</HEAD>
<P>The designated place of hearing shall be such as meets the convenience and necessity of the parties.
</P>
<CITA TYPE="N">[T.D. 6389, 24 FR 4791, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="248" NODE="27:2.0.1.4.8.6.248" TYPE="SUBJGRP">
<HEAD>Request for Hearing</HEAD>


<DIV8 N="§ 71.59" NODE="27:2.0.1.4.8.6.248.5" TYPE="SECTION">
<HEAD>§ 71.59   Application cases.</HEAD>
<P>If the applicant for a permit desires a hearing, he shall file a request therefor, in writing, with the appropriate TTB officer within fifteen days after receipt of notice of the contemplated disapproval, in whole or in part, of his application.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.60" NODE="27:2.0.1.4.8.6.248.6" TYPE="SECTION">
<HEAD>§ 71.60   Suspension, revocation, or annulment proceedings.</HEAD>
<P>(a) If a hearing is desired, the respondent shall file a request, in writing, with the appropriate TTB officer within 15 days after receipt of the citation or within such time as the appropriate TTB officer may allow.
</P>
<P>(b) Where a respondent requests a hearing, the appropriate TTB officer shall forward a copy of the request together with a copy of the citation to the Administrator for the assignment of an administrative law judge.
</P>
<P>(c) After the Administrator notifies the appropriate TTB officer of the assignment of the administrative law judge, the appropriate TTB officer shall serve a notice of designation of the administrative law judge on the respondent.
</P>
<P>(d) The administrative law judge shall set a time and place for a hearing and shall serve notice thereof on the parties at least 10 days in advance of the hearing date.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45763, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.61" NODE="27:2.0.1.4.8.6.248.7" TYPE="SECTION">
<HEAD>§ 71.61   Notice of hearing.</HEAD>
<P>In case a request for a hearing is filed by the applicant within the required time, the appropriate TTB officer shall refer the matter to the administrative law judge and the administrative law judge shall set a time and place for a hearing and shall serve notice thereof upon the parties at least ten days in advance of the hearing date.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="249" NODE="27:2.0.1.4.8.6.249" TYPE="SUBJGRP">
<HEAD>Non-Request for Hearing</HEAD>


<DIV8 N="§ 71.62" NODE="27:2.0.1.4.8.6.249.8" TYPE="SECTION">
<HEAD>§ 71.62   Application.</HEAD>
<P>In the case of an application, if the applicant does not request a hearing within the time specified in § 71.59, or within such further time as the appropriate TTB officer may in his discretion allow, the appropriate TTB officer will by order, stating the findings upon which it is based, disapprove the application, and will serve signed duplicate original of such order on the applicant.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.63" NODE="27:2.0.1.4.8.6.249.9" TYPE="SECTION">
<HEAD>§ 71.63   Suspension, revocation, or annulment proceedings.</HEAD>
<P>If the respondent does not request a hearing within the time specified in § 71.60, and does not file an answer as required in § 71.64, the appropriate TTB officer shall make the initial decision in the case in accordance with § 71.79.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45763, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="250" NODE="27:2.0.1.4.8.6.250" TYPE="SUBJGRP">
<HEAD>Answers</HEAD>


<DIV8 N="§ 71.64" NODE="27:2.0.1.4.8.6.250.10" TYPE="SECTION">
<HEAD>§ 71.64   When required.</HEAD>
<P>(a) Where the respondent requests a hearing in accordance with § 71.60, a written answer shall be filed with the administrative law judge and served on the appropriate TTB officer within 15 days after service of the designation of the administrative law judge.
</P>
<P>(b) Where no hearing is requested, the respondent shall file a written answer with the appropriate TTB officer within 15 days after service of a citation.
</P>
<P>(c) An answer shall contain a concise statement of the facts that constitute his grounds for defense. The hearing may be limited to the issues contained in the citation and the answer. The administrative law judge, or appropriate TTB officer as the case may be, may, as a matter of discretion, waive any requirement of this section.
</P>
<P>(d) Answers need not be filed in application proceedings.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45763, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.65" NODE="27:2.0.1.4.8.6.250.11" TYPE="SECTION">
<HEAD>§ 71.65   Answer admitting facts.</HEAD>
<P>If the respondent desires to waive the hearing on the allegations of fact set forth in the order to show cause, and does not contest the facts, the answer may consist of a statement that the respondent admits all material allegations of fact charged in the citation to be true. The appropriate TTB officer shall thereupon base the decision on the citation and such answer although such an answer shall not affect the respondent's right to submit proposed findings of fact and conclusions of law, or the right to appeal.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45763, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996] 


</CITA>
</DIV8>


<DIV8 N="§ 71.66" NODE="27:2.0.1.4.8.6.250.12" TYPE="SECTION">
<HEAD>§ 71.66   Prehearing conferences.</HEAD>
<P>In any proceeding the administrative law judge may, upon his own motion or upon the motion of one of the parties or their qualified representatives, in his discretion direct the parties or their qualified representatives to appear at a specified time and place for a conference to consider:
</P>
<P>(a) The simplifications of the issues;
</P>
<P>(b) The necessity of amendments to the pleadings;
</P>
<P>(c) The possibility of obtaining stipulations, admissions of facts and of documents;
</P>
<P>(d) The limitation of the number of expert witnesses; and
</P>
<P>(e) Such other matters as may aid in the disposition of the proceeding. As soon as practicable after such conference, the administrative law judge shall issue an order which recites the action taken thereat, the amendments allowed to the pleadings and the agreements made by the parties or their qualified representatives as to any of the matters considered, and which limits the issues for hearing to those not disposed of by admission or agreement; and such order shall control the subsequent course of the proceedings, unless modified for good cause by a subsequent order.


</P>
</DIV8>

</DIV7>


<DIV7 N="251" NODE="27:2.0.1.4.8.6.251" TYPE="SUBJGRP">
<HEAD>Failure To Appear</HEAD>


<DIV8 N="§ 71.67" NODE="27:2.0.1.4.8.6.251.13" TYPE="SECTION">
<HEAD>§ 71.67   Applications.</HEAD>
<P>Where the applicant on an application for a permit has requested a hearing and does not appear at the appointed time and place, and evidence has not been offered to refute or explain the grounds upon which disapproval of the application is contemplated, this shall be construed as a waiver of the hearing, a default will be entered and the administrative law judge shall recommend disapproval of said application.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 71.68" NODE="27:2.0.1.4.8.6.251.14" TYPE="SECTION">
<HEAD>§ 71.68   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 71.69" NODE="27:2.0.1.4.8.6.251.15" TYPE="SECTION">
<HEAD>§ 71.69   Suspension, revocation, or annulment.</HEAD>
<P>If on the date set for the hearing respondent does not appear and no evidence has been offered, the attorney for the Government will proceed ex parte and offer for the record sufficient evidence to make a prima facie case. At such hearing, documents, statements and affidavits may be submitted in lieu of testimony of witnesses.


</P>
</DIV8>

</DIV7>


<DIV7 N="252" NODE="27:2.0.1.4.8.6.252" TYPE="SUBJGRP">
<HEAD>Waiver of Hearing</HEAD>


<DIV8 N="§ 71.70" NODE="27:2.0.1.4.8.6.252.16" TYPE="SECTION">
<HEAD>§ 71.70   Application proceedings.</HEAD>
<P>At any time prior to final action thereon the applicant may, by filing written notice with the appropriate TTB officer, withdraw his application. If such a notice is filed after referral to the administrative law judge of a proceeding on an application for a permit and prior to issuance of his recommended decision or decision thereon, the appropriate TTB officer shall move the administrative law judge to dismiss the proceedings as moot. If such a notice is filed while the proceeding is before the appropriate TTB officer and prior to final action thereon, that is, either (a) after issuance of a notice of contemplated disapproval and before referral of the proceeding to the administrative law judge or (b) after issuance by the administrative law judge of his recommended decision and prior to the appropriate TTB officer's order disapproving the application, the appropriate TTB officer shall, by order, dismiss the proceeding.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.71" NODE="27:2.0.1.4.8.6.252.17" TYPE="SECTION">
<HEAD>§ 71.71   Adjudication based upon written submissions.</HEAD>
<P>The respondent may waive the hearing before the administrative law judge, and stipulate that the matter will be adjudicated by the appropriate TTB officer based upon written submissions. Written submissions may include stipulations of law or facts, proposed findings of fact and conclusions of law, briefs, or any other documentary material. The pleadings together with the written submissions of both the attorneys for the Government and the respondent shall constitute the record on which the initial decision shall be based. The election to contest the citation without a hearing under this section does not affect the respondent's right to appeal.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45763, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="253" NODE="27:2.0.1.4.8.6.253" TYPE="SUBJGRP">
<HEAD>Surrender of Permit</HEAD>


<DIV8 N="§ 71.72" NODE="27:2.0.1.4.8.6.253.18" TYPE="SECTION">
<HEAD>§ 71.72   Before citation.</HEAD>
<P>If a respondent surrenders the permit before citation, the appropriate TTB officer may accept the surrender. But if the evidence, in the opinion of the appropriate TTB officer, warrants citation for suspension, revocation or annulment, the surrender shall be refused and the appropriate TTB officer shall issue the citation.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45764, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.73" NODE="27:2.0.1.4.8.6.253.19" TYPE="SECTION">
<HEAD>§ 71.73   After citation.</HEAD>
<P>If a respondent surrenders the permit after citation and prior to an initial decision, the appropriate TTB officer may accept the surrender of the permit and dismiss the proceeding as moot. If, however, in the opinion of the appropriate TTB officer, the evidence is such as to warrant suspension, revocation or annulment, as the case may be, the surrender of the permit shall be refused, and the proceeding shall continue.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45764, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="254" NODE="27:2.0.1.4.8.6.254" TYPE="SUBJGRP">
<HEAD>Motions</HEAD>


<DIV8 N="§ 71.74" NODE="27:2.0.1.4.8.6.254.20" TYPE="SECTION">
<HEAD>§ 71.74   General.</HEAD>
<P>All motions shall be made and addressed to the officer before whom the proceeding is pending, and copies of all motion papers shall be served upon the other party or parties. Such officer may dispose of any motion without oral argument, but he may, if he so desires, set it down for hearing and request argument. He may dispose of such motion prior to the hearing on the merits or he may postpone the disposition until the hearing on the merits. No appeal may be taken from any ruling on a motion until the whole record is certified for review. Examples of typical motions may be found in the Rules of Civil Procedure referred to in § 71.2.


</P>
</DIV8>


<DIV8 N="§ 71.75" NODE="27:2.0.1.4.8.6.254.21" TYPE="SECTION">
<HEAD>§ 71.75   Prior to hearing.</HEAD>
<P>All motions which should be made prior to the hearing, such as motion directed to the sufficiency of the pleadings or of preliminary orders, shall be filed in writing with the appropriate TTB officer issuing the citation or the administrative law judge if the matter has been referred to him, and shall briefly state the order or relief applied for and the grounds for such motion, and shall be filed within 15 days after service of the citation.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.76" NODE="27:2.0.1.4.8.6.254.22" TYPE="SECTION">
<HEAD>§ 71.76   At hearing.</HEAD>
<P>Motions at the hearing may be made in writing to the administrative law judge or stated orally on the record.


</P>
</DIV8>

</DIV7>


<DIV7 N="255" NODE="27:2.0.1.4.8.6.255" TYPE="SUBJGRP">
<HEAD>Hearing</HEAD>


<DIV8 N="§ 71.77" NODE="27:2.0.1.4.8.6.255.23" TYPE="SECTION">
<HEAD>§ 71.77   General.</HEAD>
<P>If a hearing is requested, it shall be held at the time and place stated in the notice of hearing unless otherwise ordered by the administrative law judge.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45764, Dec. 22, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 71.78" NODE="27:2.0.1.4.8.6.255.24" TYPE="SECTION">
<HEAD>§ 71.78   Applications.</HEAD>
<P>The administrative law judge who presides at the hearing on applications shall recommend a decision to the appropriate TTB officer who shall make the initial decision as provided in § 71.107. The applicant may be directed by the appropriate TTB officer to produce such records as may be deemed necessary for examination. All hearings on applications shall be open to the public subject to such restrictions and limitations as may be consistent with orderly procedure.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.79" NODE="27:2.0.1.4.8.6.255.25" TYPE="SECTION">
<HEAD>§ 71.79   Suspension, revocation, or annulment.</HEAD>
<P>(a) The administrative law judge who presides at the hearing in proceedings for the suspension, revocation and annulment of permits shall make the initial decision.
</P>
<P>(b) If no hearing is requested, the appropriate TTB officer shall make the initial decision.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45764, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="256" NODE="27:2.0.1.4.8.6.256" TYPE="SUBJGRP">
<HEAD>Burden of Proof</HEAD>


<DIV8 N="§ 71.80" NODE="27:2.0.1.4.8.6.256.26" TYPE="SECTION">
<HEAD>§ 71.80   Applications.</HEAD>
<P>In hearings on the contemplated disapproval of applications there may be incorporated in the record sufficient testimony, reports, affidavits and other documents to be considered only for the limited purpose of establishing probable cause for the issuance of the notice of contemplated disapproval by showing that the appropriate TTB officer had reason to believe that the applicant is not entitled to a permit. The burden of proof shall be upon the applicant to produce evidence to show he is entitled to a permit. The appropriate TTB officer may, instead of following the aforementioned procedure, assume the burden of going forward.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.81" NODE="27:2.0.1.4.8.6.256.27" TYPE="SECTION">
<HEAD>§ 71.81   Suspension, revocation, or annulment.</HEAD>
<P>In hearings on the suspension, revocation, or annulment of a permit, the burden of proof is on the Government.
</P>
<CITA TYPE="N">[T.D. ATF-199, 50 FR 9197, Mar. 6, 1985]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="257" NODE="27:2.0.1.4.8.6.257" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 71.82" NODE="27:2.0.1.4.8.6.257.28" TYPE="SECTION">
<HEAD>§ 71.82   Stipulations at hearing.</HEAD>
<P>If there has been no prehearing conference under § 71.66, the administrative law judge shall at the beginning of the hearing, require that the parties attempt to arrive at such stipulations as will eliminate the necessity of taking evidence with respect to allegations of fact concerning which there is no substantial dispute. The administrative law judge should take similar action, where it appears appropriate, throughout the hearing and should call and conduct any conferences which he deems advisable with a view to the simplification, clarification, and disposition of any of the issues involved.


</P>
</DIV8>


<DIV8 N="§ 71.83" NODE="27:2.0.1.4.8.6.257.29" TYPE="SECTION">
<HEAD>§ 71.83   Evidence.</HEAD>
<P>Any evidence which would be admissible under the rules of evidence governing proceedings in matters not involving trial by jury in the Courts of the United States, shall be admissible and controlling as far as possible: <I>Provided,</I> That the administrative law judge may relax such rules in any hearing when in his judgment such relaxation would not impair the rights of either party and would more speedily conclude the hearing, or would better serve the ends of justice. Except as provided in § 71.81, the proponent of an order shall have the burden of proof. Every party shall have the right to present his case or defense by oral or documentary evidence, depositions, duly authenticated copies of records and documents, to submit rebuttal evidence, and to conduct such reasonable cross-examination as may be required for a full and true disclosure of the facts. The administrative law judge shall have the right in his discretion to limit the number of witnesses whose testimony may be merely cumulative and shall, as a matter of policy, not only exclude irrelevant, immaterial, or unduly repetitious evidence but shall also limit the cross-examination of witnesses to reasonable bounds so as not to unnecessarily prolong the hearing and unduly burden the record. Material and relevant evidence shall not be excluded, because it is not the best evidence, unless its authenticity is challenged, in which case reasonable time shall be given to establish its authenticity. When portions only of a document are to be relied upon, the offering party shall prepare the pertinent excerpts, adequately identified, and shall supply copies of such excerpts, together with a statement indicating the purpose for which such materials will be offered, to the administrative law judge and to the other parties. Only the excerpts, so prepared and submitted, shall be received in the record. However, the whole of the original document should be made available for examination and for use by opposing counsel for purposes of cross-examination. Compilations, charts, summaries of data and photostatic copies of documents may be admitted in evidence if the proceedings will thereby be expedited, and if the material upon which they are based is available for examination by the parties. Objections to the evidence shall be in short form, stating the grounds relied upon. The transcript shall not include argument or debate on objections, except as ordered by the administrative law judge, but shall include the rulings thereon.


</P>
</DIV8>


<DIV8 N="§ 71.84" NODE="27:2.0.1.4.8.6.257.30" TYPE="SECTION">
<HEAD>§ 71.84   Closing of hearings; arguments, briefs and proposed findings.</HEAD>
<P>Before closing a hearing, the administrative law judge shall inquire of each party whether he has any further evidence to offer, which inquiry and the response thereto shall be shown in the record. The administrative law judge may hear arguments of counsel and may limit the time of such arguments at his discretion, and may, in his discretion, allow briefs to be filed on behalf of either party but shall closely limit the time within which the briefs for both parties shall be filed, so as to avoid unreasonable delay. The administrative law judge shall also ascertain whether the parties desire to submit proposed findings and conclusions, together with supporting reasons, and if so a period of not more than 15 days (unless extended by the administrative law judge)—after the close of the hearing or receipt of a copy of the record, if one is requested—will be allowed for such purpose.


</P>
</DIV8>


<DIV8 N="§ 71.85" NODE="27:2.0.1.4.8.6.257.31" TYPE="SECTION">
<HEAD>§ 71.85   Reopening of the hearing.</HEAD>
<P>The Administrator, the appropriate TTB officer, or the administrative law judge, as the case may be, may, as to all matters pending before that official, in his or her discretion reopen the hearing (a) in case of default where applicant failed to request a hearing or to appear after one was set, upon petition setting forth reasonable grounds for such failure, and (b) in case any party desires leave to adduce additional evidence upon petition summarizing such evidence, establishing its materiality and stating reasonable grounds why such party with due diligence was unable to produce such evidence at the hearing.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978; 44 FR 55846, Sept. 28, 1979; T.D. ATF-374, 61 FR 29957, June 13, 1996; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="258" NODE="27:2.0.1.4.8.6.258" TYPE="SUBJGRP">
<HEAD>Record of Testimony</HEAD>


<DIV8 N="§ 71.86" NODE="27:2.0.1.4.8.6.258.32" TYPE="SECTION">
<HEAD>§ 71.86   Stenographic record.</HEAD>
<P>A stenographic record shall be made of the testimony and proceedings, including stipulations and admissions of fact (but not arguments of counsel unless otherwise ordered by the administrative law judge) in all proceedings. A transcript of the evidence and proceedings at the hearing shall be made in all cases.


</P>
</DIV8>


<DIV8 N="§ 71.87" NODE="27:2.0.1.4.8.6.258.33" TYPE="SECTION">
<HEAD>§ 71.87   Oath of reporter.</HEAD>
<P>The reporter making the stenographic record shall subscribe an oath before the administrative law judge, to be filed in the record of the case, that he will truly and correctly report the oral testimony and proceedings at such hearing and accurately transcribe the same to the best of his ability.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:2.0.1.4.8.7" TYPE="SUBPART">
<HEAD>Subpart G—Administrative Law Judges</HEAD>


<DIV8 N="§ 71.95" NODE="27:2.0.1.4.8.7.259.1" TYPE="SECTION">
<HEAD>§ 71.95   Responsibilities of administrative law judges.</HEAD>
<P>Administrative law judges shall be under the administrative control of the Administrator. They shall be responsible for the conduct of hearings and shall render their decisions as soon as is reasonably possible after the hearing is closed. Administrative law judges shall also be responsible for the preparation, certification and forwarding of reports of hearings, and the administrative work relating thereto, and, by arrangement with the appropriate TTB officer and representatives of the Chief Counsel, shall have access to facilities and temporary use of personnel at such times and places as are needed in the prompt dispatch of official business.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978; 44 FR 55846, Sept. 28, 1979; T.D. ATF-374, 61 FR 29957, June 13, 1996] 




</CITA>
</DIV8>


<DIV8 N="§ 71.96" NODE="27:2.0.1.4.8.7.259.2" TYPE="SECTION">
<HEAD>§ 71.96   Disqualification.</HEAD>
<P>An administrative law judge shall, at any time, withdraw from any proceeding if he or she deems him or herself disqualified; and upon the filing in good faith by the applicant or respondent, or by the attorney for the Government, of a timely and sufficient affidavit of facts showing personal bias or otherwise warranting the disqualification of any administrative law judge, the Administrator shall upon appeal as provided in § 71.115, if the administrative law judge fails to disqualify him or herself, determine the matter as a part of the record and decision in the proceeding. If the Administrator decides the administrative law judge should have declared him or herself disqualified, the Administrator will remand the record for hearing de novo before another administrative law judge. If the Administrator should decide against the disqualification of the administrative law judge, the proceeding will be reviewed on its merits.
</P>
<CITA TYPE="N">[89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 71.97" NODE="27:2.0.1.4.8.7.259.3" TYPE="SECTION">
<HEAD>§ 71.97   Powers.</HEAD>
<P>Administrative law judges shall have authority to:
</P>
<P>(a) Administer oaths and affirmations;
</P>
<P>(b) Issue subpoenas authorized by law;
</P>
<P>(c) Rule upon offers of proof and receive relevant evidence;
</P>
<P>(d) Take or cause depositions to be taken whenever the ends of justice would be served thereby;
</P>
<P>(e) Regulate the course of the hearing;
</P>
<P>(f) Hold conferences for the settlement or simplification of the issues by consent of the parties;
</P>
<P>(g) Dispose of procedural requests or similar matters;
</P>
<P>(h) Render recommended decisions in proceedings on applications for permits, and initial decisions in suspension, revocation, or annulment proceedings against permits;
</P>
<P>(i) Call, examine and cross-examine witnesses, including hostile or adverse witnesses when they deem such action to be necessary to a just disposition of the cause, and introduce into the record documentary or other evidence; and
</P>
<P>(j) Take any other action authorized by rule of the Alcohol and Tobacco Tax and Trade Bureau consistent with the Administrative Procedure Act.
</P>
<CITA TYPE="N">[T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 71.98" NODE="27:2.0.1.4.8.7.259.4" TYPE="SECTION">
<HEAD>§ 71.98   Separation of functions.</HEAD>
<P>Administrative law judges shall perform no duties inconsistent with their duties and responsibilities as such. Administrative law judges may be assigned duties not inconsistent with the performance of their functions as administrative law judges. Save to the extent required for the disposition of ex parte matters as required by law, no administrative law judge shall consult any person or party as to any fact in issue unless upon notice and opportunity for all parties to participate. The functions of the administrative law judge shall be entirely separated from the general investigative functions of the agency. No officer, employee, or agent engaged in the performance of investigative or prosecuting functions in any proceeding shall, in that or a factually related proceeding, participate or advise in the administrative law judge's or Administrator's decision, or in the agency review on appeal, except as a witness or counsel in the proceedings. The administrative law judge may not informally obtain advice or opinions from the parties or their counsel, or from any officer or employee of the Alcohol and Tobacco Tax and Trade Bureau, as to the facts or the weight or interpretation to be given to the evidence. He may, however, informally obtain advice on matters of law from officers or employees who were not engaged in the performance of investigative or prosecuting functions in that or a factually related proceeding. This limitation does not apply to the Administrator, and the administrative law judge may, at any time, consult with and obtain instructions from him on questions of law and policy.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978; 44 FR 55846, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 71.99" NODE="27:2.0.1.4.8.7.259.5" TYPE="SECTION">
<HEAD>§ 71.99   Conduct of hearing.</HEAD>
<P>The administrative law judge is charged with the duty of conducting a fair and impartial hearing and of maintaining order in form and manner consistent with dignity. In the event that counsel or any person or witness in any proceeding shall refuse to obey the orders of the administrative law judge, or be guilty of disorderly or contemptuous language or conduct in connection with any hearing, the administrative law judge may, for good cause stated in the record, suspend the hearing, and, in the case of an attorney, recommend that the Administrator report the matter to the Administrator of Practice for disciplinary action. The refusal of a witness to answer any question which has been ruled to be proper shall be considered by the administrative law judge in determining the weight to be given all the testimony of that witness.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978; 44 FR 55846, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 71.100" NODE="27:2.0.1.4.8.7.259.6" TYPE="SECTION">
<HEAD>§ 71.100   Unavailability of administrative law judge.</HEAD>
<P>In the event that the administrative law judge designated to conduct a hearing becomes unavailable before the filing of his findings and decision or recommended decision, the Administrator may assign the case to another administrative law judge for the continuance of the proceeding, in accordance with the regulations in this part in the same manner as if he had been designated administrative law judge at the commencement of the proceeding.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978; 44 FR 55846, Sept. 28, 1979]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:2.0.1.4.8.8" TYPE="SUBPART">
<HEAD>Subpart H—Decisions</HEAD>


<DIV8 N="§ 71.105" NODE="27:2.0.1.4.8.8.259.1" TYPE="SECTION">
<HEAD>§ 71.105   Administrative law judge's finding and decision or recommended decision.</HEAD>
<P>Within a reasonable time after the conclusion of the hearing, and as expeditiously as possible, the administrative law judge shall render his decision or recommended decision, as the case may be. All decisions shall become a part of the record and, if proposed findings and conclusions have been filed, shall show the administrative law judge's ruling upon each of such proposed findings and conclusions. Decisions shall consist of (a) a brief statement of the issues of fact involved in the proceeding; (b) the administrative law judge's findings and conclusions, as well as the reasons or basis therefor with record references, upon all the material issues of fact, law or discretion presented on the record (including, when appropriate, comment as to the credibility and demeanor of the witnesses); and (c) the administrative law judge's determination or recommended determination on the record. Where the administrative law judge determines that the imposition of a period of suspension of the permit is appropriate, his decision shall state the length of such period of suspension, to commence at such time as the appropriate TTB officer shall specify.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.106" NODE="27:2.0.1.4.8.8.259.2" TYPE="SECTION">
<HEAD>§ 71.106   Certification and transmittal of record and decision.</HEAD>
<P>After reaching his decision, the administrative law judge shall certify to the complete record of the proceeding before him and (a) in proceedings on an application, shall immediately forward the complete certified record together with four copies of his recommended decision to the appropriate TTB officer for initial decision, or (b) in revocation, suspension or annulment proceedings, shall immediately forward the complete certified record, together with two copies of his decision, to the appropriate TTB officer, serve one copy of his decision on the respondent or his counsel and transmit a copy of his decision to the attorney for the Government.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV7 N="259" NODE="27:2.0.1.4.8.8.259" TYPE="SUBJGRP">
<HEAD>Action by the Appropriate TTB Officer</HEAD>


<DIV8 N="§ 71.107" NODE="27:2.0.1.4.8.8.259.3" TYPE="SECTION">
<HEAD>§ 71.107   Application proceedings.</HEAD>
<P>If, upon receipt of the record and the recommended decision of the administrative law judge, the appropriate TTB officer decides that the permit should be issued, he shall thereupon approve the application briefly stating, for the record, his reasons therefor, but if he contemplates the disapproval of the application he shall serve a copy of the administrative law judge's recommended decision on the applicant, informing the applicant of his contemplated action and affording the applicant not more than 10 days in which to submit proposed findings and conclusions or exceptions to the recommended decision with reasons in support thereof. If the appropriate TTB officer, after consideration of the record of the hearing and of any proposed findings, conclusions or exceptions filed with him by the applicant, approves the findings, conclusions and recommended decision of the administrative law judge, he shall by order approve or disapprove of the application in accordance therewith. If, after such consideration, he disapproves of the findings, conclusions and recommended decision of the administrative law judge, in whole or in part, he shall by order make such findings and conclusions as in his opinion are warranted by the law and facts in the record. Any decision of the appropriate TTB officer ordering the disapproval of an application for a permit shall state the findings and conclusions upon which it is based, including his ruling upon each proposed finding, conclusion and exception to the administrative law judge's recommended decision, together with a statement of his findings and conclusions, and reasons or basis therefor, upon all material issues of fact, law or discretion presented on the record. A signed duplicate original of the decision shall be served upon the applicant and the original copy containing certificate of service shall be placed in the official record of the proceeding.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.107a" NODE="27:2.0.1.4.8.8.259.4" TYPE="SECTION">
<HEAD>§ 71.107a   Appropriate TTB officer's decision.</HEAD>
<P>(a) When the appropriate TTB officer issues an initial decision in accordance with § 71.79, the decision shall become a part of the record. The decision shall consist of 
</P>
<P>(1) A brief statement of the issues involved in the proceedings;
</P>
<P>(2) The appropriate TTB officer's findings and conclusions, as well as the reasons therefor; and 
</P>
<P>(3) The appropriate TTB officer's determination on the record.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45764, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.108" NODE="27:2.0.1.4.8.8.259.5" TYPE="SECTION">
<HEAD>§ 71.108   Suspension, revocation, or annulment proceedings.</HEAD>
<P>(a) Upon receipt of the complete certified record of the hearing the appropriate TTB officer shall enter an order suspending, revoking, or annulling the permit (on TTB F 5000.5) or dismissing the proceedings in accordance with the administrative law judge's findings and decision, unless he disagrees with such findings and decision and files a petition with the Administrator, for review thereof, as provided in § 71.115. If the appropriate TTB officer files such petition, he shall withhold issuance of the order, pending the decision of the Administrator, upon receipt of which he shall issue the order in accordance therewith. A signed duplicate original of the order of the appropriate TTB officer shall be served upon the respondent and the original copy containing certificate of service shall be placed in the official record of the proceeding. In all proceedings in which a suspension is imposed, the appropriate TTB officer's order shall state the time when the suspension period set forth in the administrative law judge's decision shall commence and terminate.
</P>
<P>(b) In a case where the initial decision is made by the appropriate TTB officer in accordance with § 71.79, the appropriate TTB officer will also issue an order suspending, revoking or annulling the permit (on Form 5000.5), or dismissing the proceedings in accordance with his initial decision. A signed duplicated original of the decision and order of the appropriate TTB officer shall be served upon the respondent and the original copy placed in the official record of the proceeding. In all proceedings in which a suspension is imposed, the appropriate TTB officer's order shall state the time when the suspension period set forth in the initial decision shall commence and terminate.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9196, 9197, Mar. 6, 1985; T.D. ATF-244, 51 FR 45764, Dec. 22, 1986; T.D. ATF-374, 61 FR 29957, June 13, 1996; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011]


</CITA>
</DIV8>


<DIV8 N="§ 71.109" NODE="27:2.0.1.4.8.8.259.6" TYPE="SECTION">
<HEAD>§ 71.109   Notice to Administrator.</HEAD>
<P>When the appropriate TTB officer makes an order suspending, revoking or annulling a permit, he will furnish a copy of the order and of the decision on which it is based to the Administrator. Should such order be subsequently set aside on review by the courts, the appropriate TTB officer will so advise the Administrator.
</P>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="I" NODE="27:2.0.1.4.8.9" TYPE="SUBPART">
<HEAD>Subpart I—Review</HEAD>


<DIV8 N="§ 71.115" NODE="27:2.0.1.4.8.9.260.1" TYPE="SECTION">
<HEAD>§ 71.115   Appeal on petition to the Administrator.</HEAD>
<P>An appeal to the Administrator is required prior to application to the Federal courts for review. An appeal may be taken by the applicant or respondent or by the appropriate TTB officer. Such appeal shall be taken by filing a petition for review on appeal with the Administrator within 15 days of the service of the order disapproving an application for a permit or the initial decision suspending, revoking or annulling a permit. The petition must set forth facts tending to show action of an arbitrary nature, or action without reasonable warrant in fact, or action contrary to law and regulations. A copy of the petition shall be filed with the appropriate TTB officer or served on the respondent or applicant as the case may be. In the event of such appeal, the appropriate TTB officer shall immediately certify and forward the complete original record, by certified mail, to the Administrator, for his or her consideration and review.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45764, Dec. 22, 1986, as amended by T.D. ATF-374, 61 FR 29957, June 13, 1996; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 71.116" NODE="27:2.0.1.4.8.9.260.2" TYPE="SECTION">
<HEAD>§ 71.116   Review by the Administrator.</HEAD>
<P>The Administrator, on appeal on petition for review, shall afford a reasonable opportunity for the submission of proposed findings, conclusions, or exceptions with reasons in support thereof and an opportunity for oral argument. The Administrator may alter or modify any finding of the administrative law judge (or of the appropriate TTB officer in application proceedings) and may affirm, reverse, or modify the decision of the administrative law judge (or of the appropriate TTB officer in initial application proceedings), or the Administrator may remand the case for further hearing, but the Administrator shall not consider evidence which is not a part of the record. Appeals and petitions for review shall not be decided by the Administrator in any proceeding in which she or he has engaged in investigation or prosecution, and in such event the Administrator shall so state their disqualification in writing and refer the record to the Assistant Secretary for Tax Policy for appropriate action. The Assistant Secretary for Tax Policy may designate a principal aide to consider any proceeding instead of the Administrator. The original copy of the decision on review shall be placed in the official record of the proceeding, a signed duplicate original shall be served upon the applicant or respondent and a copy shall be transmitted to the appropriate TTB officer. When, on appeal, the Administrator affirms the decision of the appropriate TTB officer or the administrative law judge, as the case may be, disapproving an application or suspending, revoking, or annulling a permit, such action shall not supersede the decision of the appropriate TTB officer or the administrative law judge and such decision shall be final.
</P>
<CITA TYPE="N">[T.D. TTB-196, 89 FR 87953, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 71.117" NODE="27:2.0.1.4.8.9.260.3" TYPE="SECTION">
<HEAD>§ 71.117   Permit privileges, exceptions.</HEAD>
<P>Pending final determination of any timely appeal in revocation, suspension, or annulment proceeding to the Administrator, the permit involved shall continue in force and effect except that, in the case of industrial use permits, any time after a citation has been issued withdrawals of tax-free spirits or specially denatured spirits by such permittee may, in the discretion of the appropriate TTB officer or Administrator, be restricted to the quantity which, together with the quantity then on hand, is necessary to carry on legitimate operations under such permit. The appropriate TTB officer may, in restricting the permittee to his legitimate needs, refuse to issue any withdrawal permit.
</P>
<CITA TYPE="N">[T.D. 6389, 24 FR 4791, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975; T.D. ATF-199, 50 FR 9197, Mar. 6, 1985; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.118" NODE="27:2.0.1.4.8.9.260.4" TYPE="SECTION">
<HEAD>§ 71.118   Court review.</HEAD>
<P>If an applicant or respondent files an appeal in Federal court of the Administrator's decision, the Administrator, upon notification that an appeal has been taken, shall prepare the record for submission to the court in accordance with the applicable court rules.
</P>
<CITA TYPE="N">[T.D. ATF-244, 51 FR 45764, Dec. 22, 1986]


</CITA>
</DIV8>


<DIV8 N="§ 71.119" NODE="27:2.0.1.4.8.9.260.5" TYPE="SECTION">
<HEAD>§ 71.119   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:2.0.1.4.8.10" TYPE="SUBPART">
<HEAD>Subpart J—Miscellaneous</HEAD>


<DIV8 N="§ 71.125" NODE="27:2.0.1.4.8.10.260.1" TYPE="SECTION">
<HEAD>§ 71.125   Depositions.</HEAD>
<P>The administrative law judge may take or order the taking of depositions by either party to the proceeding at such time and place as he may designate before a person having the power to administer oaths, upon application therefor and notice to the parties to the action. The testimony shall be reduced to writing by the person taking the deposition, or under his direction, and the deposition shall be subscribed by the deponent unless subscribing thereof is waived in writing by the parties. Any person may be subpoenaed to appear and depose and to produce documentary evidence in the same manner as witnesses at hearings.


</P>
</DIV8>


<DIV8 N="§ 71.126" NODE="27:2.0.1.4.8.10.260.2" TYPE="SECTION">
<HEAD>§ 71.126   Subpoenas.</HEAD>
<P>On written application by a party to a proceeding, the attendance and testimony of any person, or the production of documentary evidence in proceedings instituted under this part may be required by personal subpoena (Form 5600.10) or by subpoena duces tecum (Form 5600.11). Application should be addressed to, and subpoenas should be issued by, the administrative law judge before whom the proceedings are pending, but may be issued by the appropriate TTB officer or by the Administrator, if the administrative law judge is unavailable. Both the application and the subpoena shall set forth the title of the proceedings, the name and address of the person whose attendance is required, the date and place of his attendance and, if documents are to be produced, a description thereof; and the application must have reasonable scope and specify as exactly as possible the documents required, if any, and show their general relevance. Subpoenas shall be served in person. When issued on behalf of the United States, service shall be made by an officer, employee, or agent of the Treasury Department; when issued on behalf of a permittee or applicant, service shall be made by any person who is not a party to the proceeding and is not less than 18 years of age.
</P>
<SECAUTH TYPE="N">(49 Stat. 977, 72 Stat. 1372; 27 U.S.C. 202, 26 U.S.C. 5274)
</SECAUTH>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956, as amended by T.D. 6389, 24 FR 4791, June 12, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-244, 51 FR 45764, Dec. 22, 1986; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>


<DIV8 N="§ 71.127" NODE="27:2.0.1.4.8.10.260.3" TYPE="SECTION">
<HEAD>§ 71.127   Witnesses and fees.</HEAD>
<P>Witnesses summoned before the administrative law judge may be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses whose depositions are taken and the persons taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the United States. Witness fees and mileage shall be paid by the party at whose instance the witnesses appear and the person taking the deposition shall be paid by the party at whose instance the deposition is taken.


</P>
</DIV8>


<DIV7 N="260" NODE="27:2.0.1.4.8.10.260" TYPE="SUBJGRP">
<HEAD>Record</HEAD>


<DIV8 N="§ 71.128" NODE="27:2.0.1.4.8.10.260.4" TYPE="SECTION">
<HEAD>§ 71.128   What constitutes record.</HEAD>
<P>The transcript of testimony, pleadings and exhibits, all papers and requests filed in the proceeding, together with all findings, decisions and orders, shall constitute the exclusive record. Where the decision rests on official notice of material fact not appearing in the record, the administrative law judge shall so state in his findings and any party shall, on timely request, be afforded an opportunity to show facts to the contrary.


</P>
</DIV8>


<DIV8 N="§ 71.129" NODE="27:2.0.1.4.8.10.260.5" TYPE="SECTION">
<HEAD>§ 71.129   Availability.</HEAD>
<P>A copy of the record shall be available for inspection by the parties to the proceedings during business hours at the office of the administrative law judge or the appropriate TTB officer or, pending administrative review, at the office of the Administrator. Copies of the record desired by the respondent or applicant may be purchased from the contract reporter or may be obtained in accordance with part 71 of this chapter.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a) (80 Stat. 383, as amended))
</SECAUTH>
<CITA TYPE="N">[21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-92, 46 FR 46918, Sept. 23, 1981; T.D. ATF-374, 61 FR 29957, June 13, 1996]


</CITA>
</DIV8>

</DIV7>

</DIV6>

</DIV5>


<DIV5 N="72" NODE="27:2.0.1.4.9" TYPE="PART">
<HEAD>PART 72—DISPOSITION OF SEIZED PERSONAL PROPERTY
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>18 U.S.C. 921, 1261; 19 U.S.C. 1607, 1610, 1612, 1613, 1618; 26 U.S.C. 7101, 7322-7325, 7326, 7805; 31 U.S.C. 9301, 9303, 9304, 9306; 40 U.S.C. 304(k); 49 U.S.C. 784, 788.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:2.0.1.4.9.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 72.1" NODE="27:2.0.1.4.9.1.261.1" TYPE="SECTION">
<HEAD>§ 72.1   Procedures relating to personal property and carriers.</HEAD>
<P>Regulations in this part shall relate to personal property and carriers seized by alcohol, tobacco and firearms officers as subject to forfeiture as being involved, used, or intended to be used, as the case may be, in any violation of Federal laws.


</P>
</DIV8>


<DIV8 N="§ 72.2" NODE="27:2.0.1.4.9.1.261.2" TYPE="SECTION">
<HEAD>§ 72.2   Forms prescribed.</HEAD>
<P>(a) The Director is authorized to prescribe all forms required by this part, or necessary for its administration. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part.
</P>
<P>(b) “Public Use Forms” (ATF Publication 1322.1) is a numerical listing of forms issued or used by the Bureau of Alcohol, Tobacco and Firearms. This publication is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.
</P>
<P>(c) Requests for forms should be mailed to the ATF Distribution Center, 7943 Angus Court, Springfield, Virginia 22153.
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46914, Sept. 23, 1981, as amended by T.D. ATF-249, 52 FR 5962, Feb. 27, 1987]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.4.9.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 72.11" NODE="27:2.0.1.4.9.2.261.1" TYPE="SECTION">
<HEAD>§ 72.11   Meaning of terms.</HEAD>
<P>As used in this part, unless the context otherwise requires, terms shall have the meanings ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class.
</P>
<P><I>ATF Officer.</I> An officer or employee of the Bureau of Alcohol, Tobacco, and Firearms (ATF) duly authorized to perform any function relating to the administration or enforcement of this part.
</P>
<P><I>Appraised value.</I> The value placed upon seized property or carriers by the appraiser or appraisers designated for the purpose of determining whether the property or carriers may be forfeited administratively.
</P>
<P><I>Carrier.</I> A vessel, vehicle, or aircraft seized under 49 U.S.C. Chapter 11 for having been used to transport, carry, or conceal a contraband firearm or contraband cigarettes. Vessels, vehicles, or aircraft seized under other provisions of applicable laws shall be considered personal property.
</P>
<P><I>Commercial crimes.</I> Any of the following types of crimes (Federal or State): Offenses against the revenue laws; burglary; counterfeiting; forgery; kidnapping; larceny; robbery; illegal sale or possession of deadly weapons; prostitution (including soliciting, procuring, pandering, white slaving, keeping house of ill fame, and like offenses); extortion; swindling and confidence games; and attempting to commit, conspiring to commit, or compounding any of the foregoing crimes. Addiction to narcotic drugs and use of marihuana will be treated as if such were commercial crime.
</P>
<P><I>Contraband cigarettes.</I> Any quantity of cigarettes in excess of 60,000, if:
</P>
<P>(a) The cigarettes bear no evidence of the payment of applicable State cigarette taxes in the State where the cigarettes are found;
</P>
<P>(b) The State in which the cigarettes are found requires a stamp, impression, or other indication to be placed on packages or other containers of cigarettes to evidence payment of cigarette taxes; and
</P>
<P>(c) The cigarettes are in the possession of any person other than any person who is:
</P>
<P>(1) Holding a permit issued under 26 U.S.C. Chapter 52 as a manufacturer of tobacco products or as an export warehouse proprietor;
</P>
<P>(2) Operating a customs bonded warehouse under 19 U.S.C. 1311 or 1555;
</P>
<P>(3) An agent of a tobacco products manufacturer, an export warehouse proprietor, or an operator of a customs bonded warehouse;
</P>
<P>(4) A common or contract carrier transporting the cigarettes involved under a proper bill of lading or freight bill which states the quantity, source, and destination of the cigarettes;
</P>
<P>(5) Licensed or otherwise authorized by the State where the cigarettes are found to account for and pay cigarette taxes imposed by that State; and who has complied with the accounting and payment requirements relating to the license or authorization with respect to the cigarettes involved; or
</P>
<P>(6) An agent of the United States, of an individual State, or of a political subdivision of a State and having possession of cigarettes in connection with the performance of official duties.
</P>
<P>(7) Operating within a foreign-trade zone, established under 19 U.S.C. 81b, when the cigarettes involved have been entered into the foreign-trade zone under zone-restricted status or when foreign cigarettes have been admitted into the foreign-trade zone but have not been entered into the United States.
</P>
<P><I>Contraband firearm.</I> A firearm with respect to which there has been committed a violation of the National Firearms Act (26 U.S.C., Chapter 53) or any regulation issued thereunder.
</P>
<P><I>Director.</I> The Director, Bureau of Alcohol, Tobacco, and Firearms, the Department of the Treasury, Washington, DC.
</P>
<P><I>Equity.</I> As used in administrative action on petitions for remission or mitigation of forfeitures, shall mean that interest which a petitioner has in the personal property or carrier petitioned for at the time of final administrative action on the petition, but such interest shall not be considered to include any unearned finance charges from the date of seizure or the date of default, if later; any amount rebatable on account of paid insurance premiums; attorney's fees for collection; any amount identified as dealer's reserve; or any amount in the nature of liquidated damages that may have been agreed upon by the buyer and the petitioner.
</P>
<P><I>Person.</I> An individual, trust, estate, partnership, association, company or a corporation.
</P>
<P><I>Re-appraisal.</I> An up-to-date statutory appraisal to determine the present value of the property or carrier involved in a petition for remission or mitigation of forfeiture made in the same manner as the original appraisal, and performed at the written request of the petitioner whose petition in regard to the property or carrier has been allowed and who, for reasonable cause, is not satisfied that the original appraisal represents the present value of the property or carrier.
</P>
<P><I>Region.</I> A Bureau of Alcohol, Tobacco, and Firearms Region.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13535, Mar. 31, 1978; 44 FR 55841, Sept. 28, 1979, as amended by T.D. ATF-65, 45 FR 8593, Feb. 8, 1980; T.D. ATF-183, 49 FR 37061, Sept. 21, 1984]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.4.9.3" TYPE="SUBPART">
<HEAD>Subpart C—Seizures and Forfeitures</HEAD>


<DIV8 N="§ 72.21" NODE="27:2.0.1.4.9.3.261.1" TYPE="SECTION">
<HEAD>§ 72.21   Personal property and carriers subject to seizure.</HEAD>
<P>(a) Personal property may be seized by duly authorized ATF officers for forfeiture to the United States when involved, used, or intended to be used, in violation of the laws of the United States which ATF officers are empowered to enforce, including Title 18 U.S.C. Chapters 40 (explosives), 44 (firearms), 59 (liquor traffic), 114 (contraband cigarettes), 229 (liquor); Title 26 U.S.C. Chapters 51 (distilled spirits), 52 (tobacco), 53 (firearms); and Title 27 U.S.C. 206 (liquor). Carriers, as defined in § 72.11, similarly may be seized when used in violation of Title 49 U.S.C. App., Chapter 11 (transportation, et cetera) of contraband firearms or contraband cigarettes.
</P>
<P>(b) Any action or proceeding for the forfeiture of firearms or ammunition seized under 18 U.S.C. Chapter 44 shall be commenced within 120 days of such seizure.
</P>
<P>(c) Upon acquittal of the owner or possessor, or the dismissal of the criminal charges against such person other than upon motion of the Government prior to trial, or lapse of or court termination of the restraining order to which such person is subject, firearms or ammunition seized or relinquished under 18 U.S.C. Chapter 44 shall be returned forthwith to the owner or possessor or to a person delegated by the owner or possessor unless the return of the firearms or ammunition would place the owner or possessor or his delegate in violation of law.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10489, Mar. 31, 1988, as amended by T.D. ATF-363, 60 FR 17449, Apr. 6, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 72.22" NODE="27:2.0.1.4.9.3.261.2" TYPE="SECTION">
<HEAD>§ 72.22   Forfeiture of seized personal property and carriers.</HEAD>
<P>(a) <I>Administrative forfeiture.</I> (1) Personal property seized as subject to forfeiture under Title 26 U.S.C. which has an appraised value of $100,000.00 or less, and any carrier appraised by the seizing officer at $100,000.00 or less under the customs laws, shall be forfeited to the United States in administrative or summary forfeiture proceedings.
</P>
<P>(2) In respect of personal property seized as subject to forfeiture under title 26 U.S.C. which, in the opinion of the seizing officer, has an appraised value of $100,000.00 or less, such officer shall cause a list containing a particular description of the seized property to be prepared and an appraisement thereof to be made by three sworn appraisers, selected by the seizing officer, who shall be respectable and disinterested citizens of the United States residing within the internal revenue district wherein the seizure was made. Such list and appraisement shall be properly attested to by the seizing officer and such appraisers.
</P>
<P>(3) In respect of personal property seized as subject to forfeiture under title 26 U.S.C. and found by the appraisers to have a value of $100,000.00 or less, the Director or his delegate shall publish a notice once a week for three consecutive weeks, in some newspaper of the judicial district where the seizure was made, describing the articles and stating the time, place, and cause of their seizure, and requiring any person claiming them to make such claim within 30 days from the date of the first publication of such notice.
</P>
<P>(4) In respect of carriers seized as subject to forfeiture under the customs laws which, in the opinion of the seizing officer, have an appraised value of $100,000.00 or less, such officer shall cause a list containing a particular description of the seized carriers to be prepared and the seizing officer shall make the appraisement thereof. Such list and appraisement shall be properly attested to by the seizing officer.
</P>
<P>(5) In respect of carriers seized as subject to forfeiture under the customs laws and appraised by the seizing officer as having a value of $100,000.00 or less, the Director or his delegate shall publish a notice of seizure in the same manner as required by paragraph (a)(3) of this section; provided that the time for making claim shall be within 20 days from the date of first publication. (19 U.S.C. 1608).
</P>
<P>(6) Any person claiming the personal property or carrier so seized, within the time specified in the notice, may file with the Director a claim stating the interest in the articles or carrier seized, and may execute a bond to the United States, conditioned that, in case of condemnation of the articles or carrier so seized, the obligators shall pay all the costs and expenses of the proceedings to obtain such condemnation. The amount of the cost bond is $2,500.00, unless the seized property is a vehicle, vessel, or aircraft seized for a violation of 49 U.S.C. App., Chapter 11, in which case the cost bond shall be in the amount of $2,500 or ten percent of the value of the claimed property, whichever is lower, but not less than $250.00. Both the claim and the cost bond shall be executed in quadruplicate.
</P>
<P>(b) <I>Judicial condemnation.</I> The Chief Counsel of the Bureau of Alcohol, Tobacco and Firearms, shall authorize institution of forfeiture proceedings in those instances where the appraised value of the seized personal property or carrier exceeds $100,000.00 or where a claim and cost bond are filed.
</P>
<SECAUTH TYPE="N">(Sec. 111, Pub. L. 95-410, 92 Stat. 897, as amended (19 U.S.C. 1607, 1610, 1612))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-65, 45 FR 8593, Feb. 8, 1980; T.D. ATF-183, 49 FR 37061, Sept. 21, 1984; T.D. ATF-241, 51 FR 39613, Oct. 29, 1986; T.D. ATF-270, 53 FR 10489, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 72.23" NODE="27:2.0.1.4.9.3.261.3" TYPE="SECTION">
<HEAD>§ 72.23   Type and conditions of cost bond.</HEAD>
<P>The cost bond delivered by a claimant to effect removal of the forfeiture status of the property or carrier claimed to the jurisdiction of the Federal court for adjudication shall be a corporate surety bond: <I>Provided, however,</I> That upon a showing to the satisfaction of the Director or his delegate that the claimant is unable to furnish a corporate surety bond such claimant may deliver a cost bond with individual sureties acceptable to the Director or his delegate: <I>Provided further,</I> That in lieu of a cost bond with corporate or individual sureties the claimant may deposit collateral as provided in § 72.25. The cost bond shall be conditioned that in the case of the condemnation of the property the obligators shall pay all costs and expenses of the proceedings to obtain such condemnation.
</P>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-183, 49 FR 37061, Sept. 21, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 72.24" NODE="27:2.0.1.4.9.3.261.4" TYPE="SECTION">
<HEAD>§ 72.24   Corporate surety bonds.</HEAD>
<P>(a) Corporate surety bonds may be given only with surety companies holding certificates of authority from the Secretary of the Treasury as acceptable sureties on Federal bonds, subject to the limitations prescribed by Treasury Department Circular 570 (Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies), and subject to such amendments as may be issued from time to time.
</P>
<P>(b) <I>How to find an approved surety.</I> The Department of the Treasury publishes a list of approved corporate surety companies in Treasury Department Circular 570, Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies. Treasury Department Circular 570 is published in the <E T="04">Federal Register</E> annually on the first business day in July, and supplemental changes are published periodically thereafter (see <I>https://www.federalregister.gov</I>). The most recent circular and any supplemental changes to it may be viewed on the Bureau of the Fiscal Service website (see <I>https://fiscal.treasury.gov</I>).
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46914, Sept. 23, 1981, as amended by T.D. TTB-196, 89 FR 87953, Nov. 6, 2024]




</CITA>
</DIV8>


<DIV8 N="§ 72.25" NODE="27:2.0.1.4.9.3.261.5" TYPE="SECTION">
<HEAD>§ 72.25   Deposit of collateral.</HEAD>
<P>(a) Bonds or notes of the United States, or other obligations which are unconditionally guaranteed as to both interest and principal by the United States, may be pledged and deposited by claimants as collateral security in lieu of corporate sureties in accordance with the provisions of Treasury Department Circular No. 154 (31 CFR Part 225—Acceptance of Bonds, Notes or Other Obligations Issued or Guaranteed by the United States as Security in Lieu of Surety or Sureties on Penal Bonds). Alternatively, cash, postal money orders, and certified or cashiers' or treasurers' checks may be furnished by claimants as collateral security in lieu of corporate sureties.
</P>
<P>(b) Treasury Department Circular No. 154 is periodically revised and contains the provisions of 31 CFR Part 225 and the forms prescribed in 31 CFR Part 225. Copies of the circular may be obtained from the Audit Staff, Bureau of Government Financial Operations, Department of the Treasury, Washington, DC 20226.
</P>
<SECAUTH TYPE="N">(July 30, 1947, Ch. 390, 61 Stat. 650 (6 U.S.C. 15); Aug. 16, 1954, Ch. 736, 68A Stat. 847, as amended (26 U.S.C. 7101))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46914, Sept. 23, 1981]


</CITA>
</DIV8>


<DIV8 N="§ 72.26" NODE="27:2.0.1.4.9.3.261.6" TYPE="SECTION">
<HEAD>§ 72.26   Bond for return of seized perishable goods.</HEAD>
<P>The proceedings to enforce forfeiture of perishable goods shall be in the nature of a proceeding in rem in the district court of the United States for the district wherein such seizure is made. Whenever such property is liable to perish or become greatly reduced in price or value by keeping, or when it cannot be kept without great expense, the Director or his delegate shall advise the owner, when known, of the seizure thereof. The owner may apply to the Director or his delegate to have the property examined any time prior to referral of the property to the U.S. Marshal for disposition, and if in the opinion of the Director or his delegate it shall be necessary to sell such property to prevent waste or expense, the Director or his delegate shall cause the property to be appraised. Thereupon the owner shall have the property returned to him upon giving a corporate surety bond (see § 72.24) in an amount equal to the appraised value of the property, which bond shall be conditioned to abide the final order, decree, or judgment of the court having cognizance of the case, and to pay the amount of the appraised value to the Director or his delegate, the U.S. Marshal, or otherwise, as may be ordered and directed by the court, which bond shall be filed by the Director or his delegate officer with the U.S. Attorney for the district in which the proceedings may be commenced. If the owner of such property neglects or refuses to give such bond within a reasonable time considering the condition of the property the Director or his delegate shall request the U.S. Marshal to proceed to sell the property at public sale as soon as practicable and to pay the proceeds of sale, less reasonable costs of the seizure and sale, to the court to abide its final order, decree, or judgment.
</P>
<SECAUTH TYPE="N">(68A Stat. 869, 870, as amended; 26 U.S.C. 7322, 7323, 7324)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-183, 49 FR 37061, Sept. 21, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 72.27" NODE="27:2.0.1.4.9.3.261.7" TYPE="SECTION">
<HEAD>§ 72.27   Summary destruction of explosives subject to forfeiture.</HEAD>
<P>(a) Notwithstanding the provisions of 27 CFR 555.166, in the case of the seizure of any explosive materials for any offense for which the materials would be subject to forfeiture in which it would be impracticable or unsafe to remove the materials to a place of storage or would be unsafe to store them, the seizing officer may destroy the explosive materials forthwith. Any destruction under this paragraph shall be in the presence of at least 1 credible witness.
</P>
<P>(b) Within 60 days after any destruction made pursuant to paragraph (a) of this section, the owner of the property and any other persons having an interest in the property so destroyed may make application to the Director for reimbursement of the value of the property in accordance with the instructions contained in ATF Publication 1850.1 (9-93), Information to Claimants. ATF P 1850.1 is available at no cost upon request from the ATF Distribution Center, P.O. Box 5950, Springfield, Virginia 22150-5950. The Director shall make an allowance to the claimant not exceeding the value of the property destroyed, if the claimant establishes to the satisfaction of the Director that—
</P>
<P>(1) The property has not been used or involved in a violation of law; or
</P>
<P>(2) Any unlawful involvement or use of the property was without the claimant's knowledge, consent, or willful blindness.
</P>
<CITA TYPE="N">[T.D. ATF-363, 60 FR 17449, Apr. 6, 1995, as amended by  T.D. TTB-196, 89 FR 87953, Nov. 6, 2024]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.4.9.4" TYPE="SUBPART">
<HEAD>Subpart D—Remission or Mitigation of Forfeitures</HEAD>


<DIV8 N="§ 72.31" NODE="27:2.0.1.4.9.4.261.1" TYPE="SECTION">
<HEAD>§ 72.31   Laws applicable.</HEAD>
<P>Remission or mitigation of forfeitures shall be governed by the applicable customs laws.
</P>
<SECAUTH TYPE="N">(Sec. 613, 618, 46 Stat. 756, as amended, 757, as amended, sec. 4, 53 Stat. 1292, sec. 7327, 68A Stat. 871; 19 U.S.C. 1613, 1618, 49 U.S.C. 784, 26 U.S.C. 7327)


</SECAUTH>
</DIV8>


<DIV8 N="§ 72.32" NODE="27:2.0.1.4.9.4.261.2" TYPE="SECTION">
<HEAD>§ 72.32   Interest claimed.</HEAD>
<P>Any person claiming an interest in property, including carriers, seized by alcohol, tobacco and firearms officers as subject to administrative forfeiture may file a petition addressed to the Director, for remission or mitigation of the forfeiture of such property.


</P>
</DIV8>


<DIV8 N="§ 72.33" NODE="27:2.0.1.4.9.4.261.3" TYPE="SECTION">
<HEAD>§ 72.33   Form of the petition.</HEAD>
<P>There is no set or standardized form provided or required by the Department for use in filing a petition for remission or mitigation of forfeiture. However, it is preferable that the petition be typewritten on legal size paper; and it is necessary that the petition be executed under oath, prepared in triplicate and addressed to the Director, and that all copies of original documents submitted as exhibits in support of allegations of the petition be certified as true and accurate copies of originals. Each copy of the petition must contain a complete set of exhibits.


</P>
</DIV8>


<DIV8 N="§ 72.34" NODE="27:2.0.1.4.9.4.261.4" TYPE="SECTION">
<HEAD>§ 72.34   Contents of the petition.</HEAD>
<P>(a) <I>Description of the property.</I> The petition should contain such a description of the property or carrier and such facts of the seizure as will enable the alcohol, tobacco and firearms officers concerned to identify the property or carrier.
</P>
<P>(b) <I>Statement regarding knowledge of seizure.</I> In the event the petition is filed for the restoration of the proceeds derived from sale of the property or carrier pursuant to summary forfeiture, it should also contain, or be supported by, satisfactory proof that the petitioner did not know of the seizure prior to the declaration or condemnation of forfeiture, and that he was in such circumstances as prevented him from knowing of the same. (See also § 72.35.)
</P>
<P>(c) <I>Interest of petitioner.</I> The petitioner should state in clear and concise terms the nature and amount of the present interest of the petitioner in the property or carrier, and the facts relied upon to show that the forfeiture was incurred without willful negligence or without any intention upon the part of the petitioner to defraud the revenue or to violate the law, or such other mitigating circumstances as, in the opinion of the petitioner, would justify the remission or mitigation of the forfeiture.
</P>
<P>(d) <I>Petitioner innocent party.</I> If the petitioner is not the one who in person committed the act which caused the seizure the petition should state how the property or carrier came into the possession of such other person, and that the petitioner had no knowledge or reason to believe, if such be the fact, that the property or carrier would be used in violation of law. If known to the petitioner, at the time the petition is filed, that such other person had either a record or a reputation, or both, as a violator in the field of commercial crime, the petition should state whether the petitioner had actual knowledge of such record or reputation, or both, before the petitioner acquired his interest in the property or carrier, before such other person acquired his right in the property or carrier, whichever occurred later. When personal property is seized for violation of the liquor laws, the determining factor will be whether the person dealt with by the petitioner had either a record or a reputation, or both, as a violator of the liquor laws.
</P>
<P>(e) <I>Documents supporting claim.</I> The petition should also be accompanied by copies, certified by the petitioner under oath as correct, of contracts, bills of sale, chattel mortgages, reports of investigators or credit reporting agencies, affidavits, and any other papers or documents that would tend to support the claims made in the petition.
</P>
<P>(f) <I>Costs.</I> The petition should also contain an undertaking to pay the costs, if costs are assessed as a condition of allowance of the petition. Costs shall include all the expenses incurred in seizing and storing the property or carrier; the costs borne or to be borne by the United States; the taxes, if any, payable by the petitioner or imposed in respect of the property or carrier to which the petition relates; the penalty, if any, asserted by the Director; and, if the property or carrier has been sold, or is in the course of being sold, the expenses so incurred.


</P>
</DIV8>


<DIV8 N="§ 72.35" NODE="27:2.0.1.4.9.4.261.5" TYPE="SECTION">
<HEAD>§ 72.35   Time of filing petition.</HEAD>
<P>A petition may be filed at any time prior to the sale or other disposition of the property or carrier involved pursuant to administrative forfeiture, but a petition in regard to property or a carrier which has already been sold or otherwise disposed of pursuant to administrative forfeiture must be filed within three months from the date of sale, and must contain the proof defined in § 72.34(b). Acquisition for official use is equivalent to sale so far as remission or mitigation of any forfeiture is concerned.
</P>
<SECAUTH TYPE="N">(Sec. 306, 49 Stat. 880; 40 U.S.C. 304k)


</SECAUTH>
</DIV8>


<DIV8 N="§ 72.36" NODE="27:2.0.1.4.9.4.261.6" TYPE="SECTION">
<HEAD>§ 72.36   Place of filing.</HEAD>
<P>The petition should be filed in triplicate with the Director or his delegate for the region in which the seizure was made.
</P>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-183, 49 FR 37061, Sept. 21, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 72.37" NODE="27:2.0.1.4.9.4.261.7" TYPE="SECTION">
<HEAD>§ 72.37   Discontinuance of administrative proceedings.</HEAD>
<P>If the petition is filed prior to administrative sale or retention for official use, proceedings to effect such sale or retention will be discontinued.


</P>
</DIV8>


<DIV8 N="§ 72.38" NODE="27:2.0.1.4.9.4.261.8" TYPE="SECTION">
<HEAD>§ 72.38   Return of defective petition.</HEAD>
<P>If the petition is defective in some correctable respect, the original of the petition will be returned by letter to the petitioner for his submission of a corrected petition, in triplicate, within a reasonable time.


</P>
</DIV8>


<DIV8 N="§ 72.39" NODE="27:2.0.1.4.9.4.261.9" TYPE="SECTION">
<HEAD>§ 72.39   Final action.</HEAD>
<P>(a) <I>Petitions for remission or mitigation of forfeiture.</I> (1) The Director shall take final action on any petition filed pursuant to these regulations. Such final action shall consist either of the allowance or denial of the petition. In the case of allowance, the Director shall state the conditions of the allowance.
</P>
<P>(2) In the case of an allowed petition, the Director may order the property or carrier returned to the petitioner, sold for the account of the petitioner, or, pursuant to agreement, acquired for official use.
</P>
<P>(3) The Director or his delegate shall notify the petitioner of the allowance or denial of the petition and, in the case of allowance, the terms and conditions under which the Director allowed the petition.
</P>
<P>(b) <I>Offers in compromise of liability to forfeiture.</I> The Director or his delegate shall take final action on any offer in compromise of the liability to forfeiture of personal property, including carriers, seized as provided in § 72.21. Such action shall consist either of the acceptance or rejection of the offer.
</P>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-183, 49 FR 37061, Sept. 21, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 72.40" NODE="27:2.0.1.4.9.4.261.10" TYPE="SECTION">
<HEAD>§ 72.40   Acquisition for official use and sale for account of petitioner in allowed petitions.</HEAD>
<P>(a) <I>Acquisition for official use.</I> The property or carrier may be purchased by the United States pursuant to agreement and retained for official use. Where the petitioner is the owner, the purchase price is the appraised value of the property or carrier less all costs. Where the petitioner is a creditor, the purchase price is whichever one of these amounts is the smaller: (1) The petitioner's equity, or (2) the appraised value of the property or carrier less the amount of all costs incident to the seizure and forfeiture.
</P>
<P>(b) <I>Sale for account of petitioner.</I> The petitioner may elect not to comply with the condition on which the property or carrier may be returned. In this event, the Director or his delegate is authorized to sell it. Where the petitioner is the owner of the property or carrier, there is deducted from the proceeds of the sale all costs incident to the seizure, forfeiture, and sale, and the Director or his delegate pays to the petitioner, out of the proper appropriation, an amount equal to the balance, if any. Where the petitioner is a creditor, there is deducted from the proceeds of the sale all costs incident to the seizure, forfeiture, and sale, and the Director or his delegate pays to the petitioner, out of the proper appropriation, an amount equal to the balance, if any, of the selling price after deduction of all costs incident to the seizure, forfeiture, or sale: <I>Provided,</I> That if the amount of such balance exceeds the amount of the equity of the petitioner, only the latter amount is paid to the petitioner.
</P>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-183, 49 FR 37061, Sept. 21, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 72.41" NODE="27:2.0.1.4.9.4.261.11" TYPE="SECTION">
<HEAD>§ 72.41   Re-appraisal of property involved in an allowed petition.</HEAD>
<P>In determining the nature and extent of the relief to be afforded a petitioner pursuant to allowance of his petition, the value of the property or carrier involved in the allowed petition shall be considered to mean the value placed on said property or carrier pursuant to official appraisal thereof immediately following seizure: <I>Provided, however,</I> That if the petitioner desires an up-to-date re-appraisal made of the property or carrier, after notification as to the terms of allowance of the petition, and makes written request therefor, undertaking in said request to pay, or to be liable for, the total costs of such re-appraisal, the property or carrier shall be re-appraised officially in the same manner in which the original appraisal was made, and the terms and conditions of allowance shall stand modified to the extent required by such re-appraisal.


</P>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:2.0.1.4.9.5" TYPE="SUBPART">
<HEAD>Subpart E—Appraiser's Fees</HEAD>


<DIV8 N="§ 72.51" NODE="27:2.0.1.4.9.5.261.1" TYPE="SECTION">
<HEAD>§ 72.51   Rate of compensation.</HEAD>
<P>Each appraiser selected under § 72.22(a)(2) shall receive compensation at a reasonable fee not to exceed $15.00 per hour or portion thereof for the performance of his or her duties in appraising property seized as subject to forfeiture under Title 26 U.S.C.
</P>
<SECAUTH TYPE="N">(Act of Aug. 16, 1954, Ch. 736, 68A Stat. 870, as amended; 26 U.S.C. 7325)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-8, 46 FR 18536, Mar. 25, 1981]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:2.0.1.4.9.6" TYPE="SUBPART">
<HEAD>Subpart F—Administrative Sale or Disposition of Personal Property</HEAD>


<DIV8 N="§ 72.61" NODE="27:2.0.1.4.9.6.261.1" TYPE="SECTION">
<HEAD>§ 72.61   Alternative methods of sale.</HEAD>
<P>(a) <I>Sale by auction or competitive bid.</I> When personal property or a carrier. When personal property or a carrier forfeited administratively may be sold, the Director or his delegate shall cause a notice of sale to be placed in a newspaper of general circulation published in the judicial district wherein the seizure was made. The sale shall not occur in less than 10 days from the date of the publication of the notice. At the discretion of the Director or his delegate based upon which method in his sound judgment is most advantageous to the best interests of the United States, the forfeited personal property or carrier may be advertised for sale, and sold, at public auction to the highest bidder on open, competitive bids, or to the highest bidder on sealed, competitive bids.
</P>
<P>(b) <I>Sale by General Services Administration.</I> When a vessel, vehicle, or aircraft seized under 49 U.S.C. App., Chapter 11 is forfeited administratively, the Director may authorize the General Services Administration to conduct the sale pursuant to such conditions as the Director deems proper.
</P>
<SECAUTH TYPE="N">(68A Stat. 870, as amended; 26 U.S.C. 7325)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-183, 49 FR 37061, Sept. 21, 1984; T.D. ATF-241, 51 FR 39613, Oct. 29, 1986; T.D. ATF-270, 53 FR 10489, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 72.62" NODE="27:2.0.1.4.9.6.261.2" TYPE="SECTION">
<HEAD>§ 72.62   All bids on unit basis.</HEAD>
<P>All competitive bids, whether sealed or otherwise, shall be on a unit basis, i.e. if a number of forfeited automobiles are advertised for sale at the same date, hour and place, whether or not in the same notice of sale, there shall be a separate, individual bid required as to each automobile, and it shall not be permissible to accept one blanket bid to cover the entire group of cars offered for sale.


</P>
</DIV8>


<DIV8 N="§ 72.63" NODE="27:2.0.1.4.9.6.261.3" TYPE="SECTION">
<HEAD>§ 72.63   Conditions of sale.</HEAD>
<P>(a) <I>No recourse.</I> All personal property and carriers to be sold shall be offered for sale “as is” and without recourse against the United States.
</P>
<P>(b) <I>No guarantee.</I> No guarantee or warranty, expressed or implied, shall be given or understood in respect of any forfeited property or carrier offered for sale.
</P>
<P>(c) <I>No sale.</I> (1) The United States reserves the right to reject any and all bids received at public auction and in sealed, competitive bid sales.
</P>
<P>(2) When “no sale” is declared for property other than cigars, cigarettes, and cigarette papers and tubes, the Director or his delegate shall re-advertise the property for sale.
</P>
<P>(3) When “no sale” is declared for cigars, cigarettes, or cigarette papers or tubes, such property shall be destroyed or, if fit for human consumption, be given to a Federal or State hospital or institution.
</P>
<P>(d) <I>One bid.</I> When only one bid is received for a single unit of property or a carrier offered at public auction or in a sealed, competitive bid sale, such bid shall be considered to be and treated as the highest bid received for that property or carrier.
</P>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-183, 49 FR 37061, Sept. 21, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 72.64" NODE="27:2.0.1.4.9.6.261.4" TYPE="SECTION">
<HEAD>§ 72.64   Terms of sale.</HEAD>
<P>The terms of sale shall be cash, cashier's check, certified check, or postal money order, in the amount of the accepted bid.


</P>
</DIV8>


<DIV8 N="§ 72.65" NODE="27:2.0.1.4.9.6.261.5" TYPE="SECTION">
<HEAD>§ 72.65   Sale of forfeited tobacco products and cigarette papers and tubes.</HEAD>
<P>All tobacco products and cigarette papers and tubes forfeited under the internal revenue laws shall be sold at a price which will include the tax due and payable on those forfeited articles. Written, timely notice shall be given by the Director or his delegate to the manufacturer of any such forfeited articles offered for sale.
</P>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-65, 45 FR 8593, Feb. 8, 1980; T.D. ATF-183, 49 FR 37061, Sept. 21, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 72.66" NODE="27:2.0.1.4.9.6.261.6" TYPE="SECTION">
<HEAD>§ 72.66   Purchaser entitled to bill of sale.</HEAD>
<P>Each purchaser of administratively forfeited property, including carriers, shall be entitled to receive a suitable and authentic bill of sale on a form to be provided for the purpose.


</P>
</DIV8>


<DIV8 N="§ 72.67" NODE="27:2.0.1.4.9.6.261.7" TYPE="SECTION">
<HEAD>§ 72.67   Sale on open, competitive bids.</HEAD>
<P>If the personal property or carrier is to be sold at public auction to the highest bidder on open, competitive bids, the notice of sale shall so specify, and state the date, hour, and place of sale.


</P>
</DIV8>


<DIV8 N="§ 72.68" NODE="27:2.0.1.4.9.6.261.8" TYPE="SECTION">
<HEAD>§ 72.68   Sale on sealed, competitive bids.</HEAD>
<P>If the property or carrier is to be sold to the highest bidder on sealed, competitive bids, the notice of sale shall so specify, and shall state the date, hour, and place of sale, and the date, hour, and place before the sale when and where the property, including carriers, may be viewed by prospective sealed bidders, and necessary information obtained. All sealed bids must be filed with the Director or his delegate before the sale. No bids will be accepted after the sale starts. At the appointed date, hour, and place of sale, all sealed bids timely filed shall be opened in the presence of all bidders attending the sale, who shall have the privilege of inspecting the bids if they so desire.
</P>
<CITA TYPE="N">[T.D. ATF-9, 39 FR 9954, Mar. 15, 1974, as amended by T.D. ATF-183, 49 FR 37061, Sept. 21, 1984]


</CITA>
</DIV8>


<DIV8 N="§ 72.69" NODE="27:2.0.1.4.9.6.261.9" TYPE="SECTION">
<HEAD>§ 72.69   Alternative disposition of seized carriers.</HEAD>
<P>(a) <I>State or local proceedings.</I> The Director may discontinue forfeiture proceedings instituted under the Customs laws for seizures of carriers under 49 U.S.C. App., Chapter 11 in favor of the institution of forfeiture proceedings by State or local authorities under an appropriate State or local statute. If such forfeiture proceedings are discontinued or dismissed, the Director may transfer the seized property to the appropriate State or local official, and notice of discontinuance or dismissal shall be provided to all known interested parties.
</P>
<P>(b) <I>Transfer to State or local law enforcement agency.</I> Any carrier forfeited under the Customs laws for seizures under 49 U.S.C. App., Chapter 11 may be transferred by the Director to any State or local law enforcement agency which participated directly in the seizure or forfeiture of the property.
</P>
<SECAUTH TYPE="N">(19 U.S.C. 1616)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10489, Mar. 31, 1988]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:2.0.1.4.9.7" TYPE="SUBPART">
<HEAD>Subpart G—Disposal of Forfeited Firearms, Ammunition, Explosive Materials, or Contraband Cigarettes</HEAD>


<DIV8 N="§ 72.81" NODE="27:2.0.1.4.9.7.261.1" TYPE="SECTION">
<HEAD>§ 72.81   Authority for disposal.</HEAD>
<P>Forfeited firearms, aummunition, explosive materials, or contraband cigarettes, not the subject of an allowed petition, may only be disposed of in accordance with the provisions of 26 U.S.C. 5872(b).
</P>
<CITA TYPE="N">[T.D. ATF-65, 45 FR 8593, Feb. 8, 1980]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="73" NODE="27:2.0.1.4.10" TYPE="PART">
<HEAD>PART 73—ELECTRONIC SIGNATURES; ELECTRONIC SUBMISSION OF FORMS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 6011(f), 6061(b), 7502(c); 44 U.S.C. 3504 Note.


</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>68 FR 58601, Oct. 10, 2003, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:2.0.1.4.10.1" TYPE="SUBPART">
<HEAD>Subpart A—General Provisions</HEAD>


<DIV7 N="263" NODE="27:2.0.1.4.10.1.263" TYPE="SUBJGRP">
<HEAD>Scope</HEAD>


<DIV8 N="§ 73.1" NODE="27:2.0.1.4.10.1.263.1" TYPE="SECTION">
<HEAD>§ 73.1   What does this part do?</HEAD>
<P>(a) This part provides the conditions under which we will allow you to:
</P>
<P>(1) Use electronic signatures or digital signatures executed to electronic forms instead of traditional handwritten signatures executed on paper forms; and
</P>
<P>(2) Electronically submit certain forms to TTB or, where applicable, to other agencies.
</P>
<P>(b) This part does not require you to submit forms to us electronically.
</P>
<CITA TYPE="N">[68 FR 58601, Oct. 10, 2003, as amended at 79 FR 17033, Mar. 27, 2014]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="264" NODE="27:2.0.1.4.10.1.264" TYPE="SUBJGRP">
<HEAD>Definitions</HEAD>


<DIV8 N="§ 73.3" NODE="27:2.0.1.4.10.1.264.2" TYPE="SECTION">
<HEAD>§ 73.3   What terms must I know to understand this part?</HEAD>
<P>You need to know the following terms to understand this part:
</P>
<P><I>27 CFR.</I> Title 27 of the Code of Federal Regulations, chapter I.
</P>
<P><I>Biometrics.</I> A method of verifying an individual's identity based on measurement of the individual's physical feature(s) or repeatable action(s) where those features and/or actions are both unique to that individual and measurable.
</P>
<P><I>Digital signature.</I> An electronic signature based upon cryptographic methods of originator authentication, computed by using a set of rules and a set of parameters such that the identity of the signer and the integrity of the data can be verified. A signer creates a digital signature by using public-key encryption to transform a message digest of an electronic message. If a recipient of the digital signature has an electronic message, message digest function, and the signer's public key, the recipient can verify:
</P>
<P>(1) Whether the transformation was accomplished with the private key that corresponds to the signer's public key; and
</P>
<P>(2) Whether the electronic message has been altered since the transformation was made.
</P>
<P><I>Electronic document receiving system.</I> Any set of apparatus, procedures, software, records, or documentation used to receive documents communicated to it via a telecommunications network.
</P>
<P><I>Electronic signature.</I> A computer data compilation of any symbol or series of symbols executed, adopted, or authorized by an individual to be the legally binding equivalent of the individual's handwritten signature, and that:
</P>
<P>(1) Identifies and authenticates a particular person as the source of the electronic message; and
</P>
<P>(2) Indicates such person's approval of the information contained in the electronic message.
</P>
<P><I>Form(s).</I> The term form(s), when used in this part, includes all documents required by 27 CFR, chapter I, to be submitted to TTB or any other agency.
</P>
<P><I>Handwritten signature.</I> The scripted name or legal mark of an individual handwritten by that individual and executed or adopted with the present intention to authenticate a writing in a permanent form. The act of signing with a writing or marking instrument such as a pen or stylus is preserved. The scripted name or legal mark, while conventionally applied to paper, may also be applied to other materials or devices that capture the name or mark.
</P>
<P><I>Paper format.</I> A paper document.
</P>
<P><I>TTB.</I> Refers to the Alcohol and Tobacco Tax and Trade Bureau within the Department of the Treasury.
</P>
<P><I>You and I.</I> “You” and “I” refer to the organization or person who must maintain records or submit documents to TTB to satisfy the requirements of 27 CFR, chapter I.
</P>
<CITA TYPE="N">[68 FR 58601, Oct. 10, 2003, as amended at 79 FR 52199, Sept. 3, 2014]




</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="B" NODE="27:2.0.1.4.10.2" TYPE="SUBPART">
<HEAD>Subpart B—Electronic Signatures</HEAD>


<DIV8 N="§ 73.10" NODE="27:2.0.1.4.10.2.265.1" TYPE="SECTION">
<HEAD>§ 73.10   What does subpart B cover?</HEAD>
<P>This subpart provides the conditions under which TTB will allow you to use electronic signatures executed to electronic forms instead of traditional handwritten signatures executed on paper forms. Where electronic signatures and their associated electronic forms meet the requirements of this part, TTB will consider the electronic signatures to be the equivalent of full handwritten signatures, initials, and other general signings this chapter requires.


</P>
</DIV8>


<DIV8 N="§ 73.11" NODE="27:2.0.1.4.10.2.265.2" TYPE="SECTION">
<HEAD>§ 73.11   What are the required components and controls for acceptable electronic signatures?</HEAD>
<P>(a) <I>Electronic signatures not based on biometrics.</I> If you use electronic signatures that are not based upon biometrics you must:
</P>
<P>(1) Employ at least two distinct identification components such as an identification code and a password;
</P>
<P>(2) Use both identification components when executing an electronic signature to an electronic document; and
</P>
<P>(3) Ensure that the electronic signature can only be used by the authorized user.
</P>
<P>(b) <I>Electronic signatures based on biometrics.</I> If you use electronic signatures based upon biometrics, they must be designed to ensure that they cannot be used by anyone other than their genuine owners.


</P>
</DIV8>


<DIV8 N="§ 73.12" NODE="27:2.0.1.4.10.2.265.3" TYPE="SECTION">
<HEAD>§ 73.12   What security controls must I use for identification codes and passwords?</HEAD>
<P>If you use electronic signatures based upon use of identification codes in combination with passwords, you must employ controls to ensure their security and integrity. These controls must include:
</P>
<P>(a) Maintaining the uniqueness of each combined identification code and password, such that no two individuals have the same combination of identification code and password;
</P>
<P>(b) Ensuring that identification code and password issuances are periodically checked, recalled, or revised (<I>e.g.,</I> to cover such events as password aging);
</P>
<P>(c) Following loss management procedures to electronically deauthorize lost, stolen, missing, or otherwise potentially compromised tokens, cards, or other devices that bear or generate identification code or password information, and to issue temporary or permanent replacements using suitable, rigorous controls;
</P>
<P>(d) Using transaction safeguards to prevent unauthorized use of passwords and/or identification codes, and to detect and report in an immediate and urgent manner any attempts at their unauthorized use to the system security unit and, as appropriate, to organizational management; and
</P>
<P>(e) Initial and periodic testing of devices, such as tokens or cards, that bear or generate identification code or password information to ensure that they function properly and have not been altered in any unauthorized manner.


</P>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:2.0.1.4.10.3" TYPE="SUBPART">
<HEAD>Subpart C—Electronic Filing of Documents with TTB</HEAD>


<DIV8 N="§ 73.30" NODE="27:2.0.1.4.10.3.265.1" TYPE="SECTION">
<HEAD>§ 73.30   What does subpart C cover?</HEAD>
<P>This subpart provides the conditions under which TTB will allow you to satisfy certain requirements to submit forms in this chapter by submitting forms electronically to TTB.
</P>
<CITA TYPE="N">[79 FR 17033, Mar. 27, 2014]




</CITA>
</DIV8>


<DIV8 N="§ 73.31" NODE="27:2.0.1.4.10.3.265.2" TYPE="SECTION">
<HEAD>§ 73.31   May I submit forms electronically to TTB?</HEAD>
<P>Yes; to satisfy any requirement to submit forms in this chapter (including a requirement to submit an original form or copies), you may submit an electronic form or you may submit, by electronic means, a copy of an original form, but only if:
</P>
<P>(a) You submit the form through an electronic document receiving system that TTB has designated for the receipt of that specific form and for which you have registered if so required; and
</P>
<P>(b) The conditions in any one of the following paragraphs apply:
</P>
<P>(1) It is an electronic form that bears valid electronic signatures, as provided in subpart B of this part, to the same extent that the paper submission for which it substitutes would bear handwritten signatures;
</P>
<P>(2) It is a copy of an original form that requires the signature of a third party who is not the person required to submit the form (such as a bond form or a power of attorney form) or a corporate seal; you submit the copy of the form electronically along with a certification that the copy is an exact copy of the original; the original bears all signatures of all required parties and any required corporate seal; and you maintain the original along with any other records required by TTB and make it available or submit it to TTB upon request; or
</P>
<P>(3) It is a copy of a TTB form that is not available in an electronic format or it is a document other than a TTB form (that is, other than a document issued by TTB that bears an Office of Management and Budget control number) that is required to be submitted to TTB; you submit the copy electronically along with a certification that the copy is an exact copy of the original; and you maintain the original along with any other records required by TTB and make it available or submit it to TTB upon request.
</P>
<CITA TYPE="N">[79 FR 17033, Mar. 27, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 73.32" NODE="27:2.0.1.4.10.3.265.3" TYPE="SECTION">
<HEAD>§ 73.32   May I electronically sign forms I submit electronically to TTB?</HEAD>
<P>You may electronically sign the electronic form you submit to us if:
</P>
<P>(a) You have registered with TTB to do so and have certified, prior to the time of such use, that the electronic signatures or digital signatures in your system are intended to be the legally binding equivalent of traditional handwritten signatures;
</P>
<P>(b) The electronic or digital signature meets the standards of this part and is authorized by TTB in accordance with this part; and
</P>
<P>(c) The electronic or digital signature is sufficiently trustworthy and reliable that the signing party may not repudiate the signature.


</P>
</DIV8>


<DIV8 N="§ 73.33" NODE="27:2.0.1.4.10.3.265.4" TYPE="SECTION">
<HEAD>§ 73.33   Am I legally bound by a form I sign electronically?</HEAD>
<P>Yes; by electronically signing a form you submit to us, you are agreeing to be legally bound to the same extent as if you applied a traditional handwritten signature on a paper document submitted to satisfy the same requirement. Persons using electronic signatures shall, upon TTB's request, provide additional certification or testimony that a specific electronic signature is the legally binding equivalent of the signer's handwritten signature.
</P>
<CITA TYPE="N">[68 FR 58601, Oct. 10, 2003, as amended at 79 FR 17034, Mar. 27, 2014]




</CITA>
</DIV8>


<DIV8 N="§ 73.34" NODE="27:2.0.1.4.10.3.265.5" TYPE="SECTION">
<HEAD>§ 73.34   When is an electronically submitted form considered timely filed?</HEAD>
<P>If you submit a form to our electronic document receiving system, the document will be considered filed on the date of the electronic postmark given by that system.
</P>
<CITA TYPE="N">[68 FR 58601, Oct. 10, 2003, as amended at 79 FR 17034, Mar. 27, 2014]




</CITA>
</DIV8>


<DIV8 N="§ 73.35" NODE="27:2.0.1.4.10.3.265.6" TYPE="SECTION">
<HEAD>§ 73.35   Do I need to keep paper copies of forms I submit to TTB electronically?</HEAD>
<P>Nothing in this part alters any other regulatory or statutory requirement that records be maintained in paper format. If the regulations in this chapter require you to keep paper copies of certain forms, you must continue to do so unless TTB otherwise authorizes you to maintain electronic copies of these documents through an approved alternate method or procedure.
</P>
<CITA TYPE="N">[68 FR 58601, Oct. 10, 2003, as amended at 79 FR 17034, Mar. 27, 2014]




</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:2.0.1.4.10.4" TYPE="SUBPART">
<HEAD>Subpart D—Electronic Filing of Documents With Other Agencies</HEAD>


<DIV8 N="§ 73.40" NODE="27:2.0.1.4.10.4.265.1" TYPE="SECTION">
<HEAD>§ 73.40   May I satisfy TTB requirements to submit forms to other agencies by submitting those forms electronically?</HEAD>
<P>You may satisfy any requirement in the TTB regulations to submit a form (as that term is defined in § 73.3) to another agency by submitting such form to such agency by electronic means, as long as the agency provides for, and authorizes, the electronic submission of such form and you satisfy any registration or related requirement by that agency for that electronic submission. The submission of a form electronically to another agency does not alter any requirement regarding copies you must maintain.
</P>
<CITA TYPE="N">[79 FR 17034, Mar. 27, 2014, as amended at 79 FR 52199, Sept. 3, 2014]

 




</CITA>
</DIV8>

</DIV6>

</DIV5>

</DIV4>


<DIV4 N="S G" NODE="27:2.0.1.5" TYPE="SUBCHAP">
<HEAD>SUBCHAPTERS G-L [RESERVED]


</HEAD>
</DIV4>


<DIV4 N="M" NODE="27:2.0.1.6" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER M—ALCOHOL, TOBACCO AND OTHER EXCISE TAXES


</HEAD>

<DIV5 N="194-399" NODE="27:2.0.1.6.11" TYPE="PART">
<HEAD>PARTS 194-399 [RESERVED]


</HEAD>
</DIV5>

</DIV4>

</DIV3>

</DIV1>

</ECFRBRWS>
<ECFRBRWS>
<AMDDATE>July 6, 2026
</AMDDATE>

<DIV1 N="3" NODE="27:3" TYPE="TITLE">

<HEAD>Title 27—Alcohol, Tobacco Products, and Firearms--Volume 3</HEAD>
<CFRTOC>
<PTHD>Part
</PTHD>
<CHAPTI>
<SUBJECT><E T="04">chapter ii</E>—Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice
</SUBJECT>
<PG>447
</PG></CHAPTI>
<ABBR>
<HED>Abbreviations Used in This Chapter:</HED>
<P>ATF = <I>Alcohol, Tobacco and Firearms.</I> 
</P>
<P>TD = <I>Treasury Decision.</I>
</P>
<P>TTB = <I>Alcohol and Tobacco Tax and Trade Bureau.</I>


</P></ABBR></CFRTOC>

<DIV3 N="II" NODE="27:3.0.1" TYPE="CHAPTER">

<HEAD> CHAPTER II—BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES, DEPARTMENT OF JUSTICE</HEAD>

<DIV4 N="A [RESERVED]   " NODE="27:3.0.1.1" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER A [RESERVED]


</HEAD>
</DIV4>


<DIV4 N="B" NODE="27:3.0.1.2" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER B—FIREARMS AND AMMUNITION


</HEAD>

<DIV5 N="400-446" NODE="27:3.0.1.2.1" TYPE="PART">
<HEAD>PARTS 400-446 [RESERVED]


</HEAD>
</DIV5>


<DIV5 N="447" NODE="27:3.0.1.2.2" TYPE="PART">
<HEAD>PART 447—IMPORTATION OF ARMS, AMMUNITION AND IMPLEMENTS OF WAR
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>22 U.S.C. 2778; E.O. 13637, 78 FR 16129 (Mar. 8, 2013).
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, unless otherwise noted. Redesignated by T.D. ATF-487, 68 FR 3747, Jan. 24, 2003.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 447 appear by T.D. ATF-487, 68 FR 3748, Jan. 24, 2003.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:3.0.1.2.2.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope</HEAD>


<DIV8 N="§ 447.1" NODE="27:3.0.1.2.2.1.1.1" TYPE="SECTION">
<HEAD>§ 447.1   General.</HEAD>
<P>The regulations in this part relate to that portion of section 38 of the Arms Export Control Act of 1976, as amended, authorizing the President to designate defense articles and defense services as part of the United States Munitions List (USML) for purposes of import and export controls. To distinguish the list of defense articles and defense services controlled in this part for purposes of permanent import from the list of defense articles and defense services controlled by the Secretary of State for purposes of export and temporary import, this part shall refer to the defense articles and defense services controlled for purposes of permanent import as the U.S. Munitions Import List (USMIL) and shall refer to the export and temporary import control list set out by the Department of State in its International Traffic in Arms Regulations as the USML. Part 447 contains the USMIL and includes procedural and administrative requirements relating to registration of importers, permits, articles in transit, import certification, delivery verification, import restrictions applicable to certain countries, exemptions, U.S. military firearms and ammunition, penalties, seizures, and forfeitures. The President's delegation of permanent import control authorities to the Attorney General provides the Attorney General the authority to assess whether controls are justified, but in designating the defense articles and defense services set out in the USMIL the Attorney General shall be guided by the views of the Secretary of State on matters affecting world peace and the external security and foreign policy of the United States. All designations and changes in designations of defense articles and defense services subject to permanent import control under this part must have the concurrence of the Secretary of State and the Secretary of Defense, with notice given to the Secretary of Commerce.
</P>
<CITA TYPE="N">[ATF-50F, 78 FR 23676, Apr. 22, 2013]


</CITA>
</DIV8>


<DIV8 N="§ 447.2" NODE="27:3.0.1.2.2.1.1.2" TYPE="SECTION">
<HEAD>§ 447.2   Relation to other laws and regulations.</HEAD>
<P>(a) All of those items on the U.S. Munitions Import List (see § 447.21) which are “firearms” or “ammunition” as defined in 18 U.S.C. 921(a) are subject to the interstate and foreign commerce controls contained in Chapter 44 of Title 18 U.S.C. and 27 CFR Part 478 and if they are “firearms” within the definition set out in 26 U.S.C. 5845(a) are also subject to the provisions of 27 CFR Part 479. Any person engaged in the business of importing firearms or ammunition as defined in 18 U.S.C. 921(a) must obtain a license under the provisions of 27 CFR Part 478, and if he imports firearms which fall within the definition of 26 U.S.C. 5845(a) must also register and pay special tax pursuant to the provisions of 27 CFR Part 479. Such licensing, registration and special tax requirements are in addition to registration under subpart D of this part.
</P>
<P>(b) The permit procedures of subpart E of this part are applicable to all importations of articles on the U.S. Munitions Import List not subject to controls under 27 CFR Part 478 or 479. U.S. Munitions Import List articles subject to controls under 27 CFR Part 478 or 27 CFR Part 479 are subject to the import permit procedures of those regulations if imported into the United States (within the meaning of 27 CFR Parts 478 and 479).
</P>
<P>(c) Articles on the U.S. Munitions Import List imported for the United States or any State or political subdivision thereof are exempt from the import controls of 27 CFR Part 478 but are not exempt from control under Section 38, Arms Export Control Act of 1976, unless imported by the United States or any agency thereof. All such importations not imported by the United States or any agency thereof shall be subject to the import permit procedures of subpart E of this part.
</P>
<P>(d) For provisions requiring the registration of persons engaged in the business of brokering activities with respect to the importation of any defense article or defense service, see Department of State regulations in 22 CFR part 129.
</P>
<CITA TYPE="N">[T.D. ATF-215, 50 FR 42158, Oct. 18, 1985, as amended by T.D. ATF-426, 65 FR 38197, June 20, 2000]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:3.0.1.2.2.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 447.11" NODE="27:3.0.1.2.2.2.1.1" TYPE="SECTION">
<HEAD>§ 447.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words imparting the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude other things not enumerated which are in the same general class or are otherwise within the scope thereof.
</P>
<P><I>Appropriate ATF officer.</I> An officer or employee of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) specified by ATF Order 1130.34, Delegation of the Director's Authorities in 27 CFR Part 447, Importation of Arms, Ammunition and Implements of War. 
</P>
<P><I>Article.</I> Any of the defense articles enumerated in the U.S. Munitions Import List (USMIL).
</P>
<P><I>Bureau.</I> Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Justice.
</P>
<P><I>Carbine.</I> A short-barrelled rifle whose barrel is generally not longer than 22 inches and is characterized by light weight.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Chemical agent.</I> A substance useful in war which, by its ordinary and direct chemical action, produces a powerful physiological effect.
</P>
<P><I>Defense articles.</I> Any item designated in § 447.21 or § 447.22. This term includes models, mockups, and other such items which reveal technical data directly relating to § 447.21 or § 447.22. 
</P>
<P><I>Defense services.</I> (a) The furnishing of assistance, including training, to foreign persons in the design, engineering, development, production, processing, manufacture, use, operation, overhaul, repair, maintenance, modification, or reconstruction of defense articles, whether in the United States or abroad; or
</P>
<P>(b) The furnishing to foreign persons of any technical data, whether in the United States or abroad.
</P>
<P><I>Director.</I> The Director, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Justice, Washington, DC 20226.
</P>
<P><I>Executed under the penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the application, form, or other document or, where no form of declaration is prescribed, with the declaration: “I declare under the penalties of perjury that this ______ (insert type of document such as statement, certificate, application, or other document), including the documents submitted in support thereof, has been examined by me and, to best of my knowledge and belief, is true, correct, and complete.”
</P>
<P><I>Firearms.</I> A weapon, and all components and parts therefor, not over .50 caliber which will or is designed to or may be readily converted to expel a projectile by the action of an explosive, but shall not include BB and pellet guns, and muzzle loading (black powder) firearms (including any firearm with a matchlock, flintlock, percussion cap, or similar type of ignition system) or firearms covered by Category I(a) established to have been manufactured in or before 1898.
</P>
<P><I>Frame or receiver.</I> The term “frame or receiver” shall have the same meaning as in 27 CFR 478.12.
</P>
<P><I>Import or importation.</I> Bringing into the United States from a foreign country any of the articles on the Import List, but shall not include intransit, temporary import or temporary export transactions subject to Department of State controls under Title 22, Code of Federal Regulations.
</P>
<P><I>Import List.</I> The list of articles contained in § 447.21 and identified therein as “The U.S. Munitions Import List”.
</P>
<P><I>Machinegun.</I> A “machinegun,” “machine pistol,” “submachinegun,” or “automatic rifle” is a firearm which shoots, is designed to shoot, or can be readily restored to shoot, automatically more than one shot, without manual reloading, by a single function of the trigger. The term shall also include the frame or receiver of any such weapon, any part designed and intended solely and exclusively, or combination of parts designed and intended, for use in converting a weapon into a machinegun, and any combination of parts from which a machinegun can be assembled if such parts are in the possession or under the control of a person. 
</P>
<P><I>Permit.</I> The same as “license” for purposes of 22 U.S.C. 1934(c).
</P>
<P><I>Person.</I> A partnership, company, association, or corporation, as well as a natural person.
</P>
<P><I>Pistol.</I> A hand-operated firearm having a chamber integral with, or permanently aligned with, the bore.
</P>
<P><I>Privately made firearm.</I> The term “privately made firearm” shall have the same meaning as in 27 CFR 478.11.
</P>
<P><I>Revolver.</I> A hand-operated firearm with a revolving cylinder containing chambers for individual cartridges.
</P>
<P><I>Rifle.</I> A shoulder firearm discharging bullets through a rifled barrel at least 16 inches in length, including combination and drilling guns.
</P>
<P><I>Sporting type sight including optical.</I> A telescopic sight suitable for daylight use on a rifle, shotgun, pistol, or revolver for hunting or target shooting.
</P>
<P><I>This chapter.</I> Title 27, Code of Federal Regulations, Chapter II (27 CFR Chapter II).
</P>
<P><I>United States.</I> When used in the geographical sense, includes the several States, the Commonwealth of Puerto Rico, the insular possessions of the United States, the District of Columbia, and any territory over which the United States exercises any powers of administration, legislation, and jurisdiction.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and sec. 38, Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13535, Mar. 31, 1978; 44 FR 55840, Sept. 28, 1979, as amended by T.D. ATF-202, 50 FR 14382, Apr. 12, 1985; T.D. ATF-215, 50 FR 42158, Oct. 18, 1985; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002; ATF-9F, 72 FR 72938, Dec. 26, 2007; ATF-50F, 78 FR 23677, Apr. 22, 2013; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014; ATF 2018R-22F, 83 FR 66553, Dec. 26, 2018; ATF-2021R-05F, 87 FR 24734, Apr. 26, 2022; ATF-2024R-01F, 91 FR 24352, May 6, 2026]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:3.0.1.2.2.3" TYPE="SUBPART">
<HEAD>Subpart C—The U.S. Munitions Import List</HEAD>


<DIV8 N="§ 447.21" NODE="27:3.0.1.2.2.3.1.1" TYPE="SECTION">
<HEAD>§ 447.21   The U.S. Munitions Import List.</HEAD>
<P>The following defense articles and defense services, designated pursuant to section 38(a) of the Arms Export Control Act, 22 U.S.C. 2778(a), and E.O. 13637 are subject to controls under this part. For purposes of this part, the list shall be known as the U.S. Munitions Import List (USMIL):
</P>
<EXTRACT>
<HD1>The U.S. Munitions Import List
</HD1>
<HD1>category i—firearms
</HD1>
<P>(a) Nonautomatic and semiautomatic firearms, to caliber .50 inclusive, combat shotguns, and shotguns with barrels less than 18 inches in length, and all components and parts for such firearms.
</P>
<P>(b) Automatic firearms and all components and parts for such firearms to caliber .50 inclusive.
</P>
<P>(c) Insurgency-counterinsurgency type firearms of other weapons having a special military application (e.g. close assault weapons systems) regardless of caliber and all components and parts for such firearms.
</P>
<P>(d) Firearms silencers and suppressors, including flash suppressors.
</P>
<P>(e) [Reserved]
</P>
<NOTE>
<HED>Note:</HED>
<P>Rifles, carbines, revolvers, and pistols, to caliber .50 inclusive, combat shotguns, and shotguns with barrels less than 18 inches in length are included under Category I(a). Machineguns, submachineguns, machine pistols and fully automatic rifles to caliber .50 inclusive are included under Category I(b).</P></NOTE>
<HD1>category ii—artillery projectors
</HD1>
<P>(a) Guns over caliber .50, howitzers, mortars, and recoiless rifles.
</P>
<P>(b) Military flamethrowers and projectors.
</P>
<P>(c) Components, parts, accessories, and attachments for the articles in paragraphs (a) and (b) of this category, including but not limited to mounts and carriages for these articles.
</P>
<HD1>category iii—ammunition
</HD1>
<P>(a) Ammunition for the arms in Categories I and II of this section.
</P>
<P>(b) Components, parts, accessories, and attachments for articles in paragraph (a) of this category, including but not limited to cartridge cases, powder bags, bullets, jackets, cores, shells (excluding shotgun shells), projectiles, boosters, fuzes and components therefor, primers, and other detonating devices for such ammunition.
</P>
<P>(c)-(d) [Reserved]
</P>
<NOTE>
<HED>Note:</HED>
<P>Cartridge and shell casings are included under Category III unless, prior to their importation, they have been rendered useless beyond the possibility of restoration for use as a cartridge or shell casing by means of heating, flame treatment, mangling, crushing, cutting, or popping.</P></NOTE>
<HD1>category iv—launch vehicles, guided missiles, ballistic missiles, rockets, torpedoes, bombs and mines
</HD1>
<P>(a) Rockets (including but not limited to meteorological and other sounding rockets), bombs, grenades, torpedoes, depth charges, land and naval mines, as well as launchers for such defense articles, and demolition blocks and blasting caps.
</P>
<P>(b) Launch vehicles and missile and anti-missile systems including but not limited to guided, tactical and strategic missiles, launchers, and systems.
</P>
<P>(c) Apparatus, devices, and materials for the handling, control, activation, monitoring, detection, protection, discharge, or detonation of the articles in paragraphs (a) and (b) of this category. Articles in this category include, but are not limited to, the following: Fuses and components for the items in this category, bomb racks and shackles, bomb shackle release units, bomb ejectors, torpedo tubes, torpedo and guided missile boosters, guidance system equipment and parts, launching racks and projectors, pistols (exploders), igniters, fuze arming devices, intervalometers, guided missile launchers and specialized handling equipment, and hardened missile launching facilities.
</P>
<P>(d) Missile and space vehicle powerplants.
</P>
<P>(e) Military explosive excavating devices.
</P>
<P>(f) [Reserved]
</P>
<P>(g) Non/nuclear warheads for rockets and guided missiles.
</P>
<P>(h) All specifically designed components or modified components, parts, accessories, attachments, and associated equipment for the articles in this category.
</P>
<NOTE>
<HED>Note:</HED>
<P>Military demolition blocks and blasting caps referred to in Category IV(a) do not include the following articles:
</P>
<P>(a) Electric squibs.
</P>
<P>(b) No. 6 and No. 8 blasting caps, including electric ones.
</P>
<P>(c) Delay electric blasting caps (including No. 6 and No. 8 millisecond ones).
</P>
<P>(d) Seismograph electric blasting caps (including SSS, Static-Master, Vibrocap SR, and SEISMO SR).
</P>
<P>(e) Oil well perforating devices.</P></NOTE>
<HD1>category v <E T="01">[Reserved]</E>
</HD1>
<HD1>category vi—vessels of war and special naval equipment
</HD1>
<P>(a) Vessels of War, if they are armed and equipped with offensive or defensive weapon systems, including but not limited to amphibious warfare vessels, landing craft, mine warfare vessels, patrol vessels, auxiliary vessels, service craft, experimental types of naval ships, and any vessels specifically designed or modified for military purposes or other surface vessels equipped with offensive or defensive military systems.
</P>
<P>(b) Turrets and gun mounts, special weapons systems, protective systems, and other components, parts, attachments, and accessories specifically designed or modified for such articles on combatant vessels.
</P>
<P>(c)-(d) [Reserved]
</P>
<P>(e) Naval nuclear propulsion plants, their land prototypes and special facilities for their construction, support and maintenance. This includes any machinery, device, component, or equipment specifically developed or designed or modified for use in such plants or facilities.
</P>
<NOTE>
<HED>Note:</HED>
<P>The term “vessels of war” includes, but is not limited to, the following, if armed and equipped with offensive or defensive weapons systems:”.
</P>
<P>(a) Combatant vessels:
</P>
<P>(1) Warships (including nuclear-powered versions):
</P>
<P>(i) Aircraft carriers (CV, CVN)
</P>
<P>(ii) Battleships (BB)
</P>
<P>(iii) Cruisers (CA, CG, CGN)
</P>
<P>(iv) Destroyers (DD, DDG)
</P>
<P>(v) Frigates (FF, FFG)
</P>
<P>(vi) Submarines (SS, SSN, SSBN, SSG, SSAG).
</P>
<P>(2) Other Combatant Classifications:
</P>
<P>(i) Patrol Combatants (PC, PHM)
</P>
<P>(ii) Amphibious Helicopter/Landing Craft Carriers (LHA, LPD, LPH)
</P>
<P>(iii) Amphibious Landing Craft Carriers (LKA, LPA, LSD, LST)
</P>
<P>(iv) Amphibious Command Ships (LCC)
</P>
<P>(v) Mine Warfare Ships (MSO).
</P>
<P>(b) Auxiliaries:
</P>
<P>(1) Mobile Logistics Support:
</P>
<P>(i) Under way Replenishment (AD, AF, AFS, AO, AOE, AOR)
</P>
<P>(ii) Material Support (AD, AR, AS).
</P>
<P>(2) Support Ships:
</P>
<P>(i) Fleet Support Ships (ARS, ASR, ATA, ATF, ATS)
</P>
<P>(ii) Other Auxiliaries (AG, AGDS, AGF, AGM, AGOR, AGOS, AGS, AH, AK, AKR, AOG, AOT, AP, APB, ARC, ARL, AVM, AVT).
</P>
<P>(c) Combatant Craft:
</P>
<P>(1) Patrol Craft:
</P>
<P>(i) Coastal Patrol Combatants (PB, PCF, PCH, PTF)
</P>
<P>(ii) River, Roadstead Craft (ATC, PBR).
</P>
<P>(2) Amphibious Warfare Craft:
</P>
<P>(i) Landing Craft (AALC, LCAC, LCM, LCPL, LCPR, LCU, LWT, SLWT)
</P>
<P>(ii) Special Warfare Craft (LSSC, MSSC, SDV, SWCL, SWCM).
</P>
<P>(3) Mine Warfare Craft:
</P>
<P>(i) Mine Countermeasures Craft (MSB, MSD, MSI, MSM, MSR).
</P>
<P>(d) Support and Service Craft:
</P>
<P>(1) Tugs (YTB, YTL, YTM)
</P>
<P>(2) Tankers (YO, YOG, YW)
</P>
<P>(3) Lighters (YC, YCF, YCV, YF, YFN, YFNB, YFNX, YFR, YFRN, YFU, YG, YGN, YOGN, YON, YOS, YSR, YWN)
</P>
<P>(4) Floating Dry Docks (AFDB, AFDL, AFDM, ARD, ARDM, YFD)
</P>
<P>(5) Miscellaneous (APL, DSRV, DSV, IX, NR, YAG, YD, YDT, YFB, YFND, YEP, YFRT, YHLC, YM, YNG, YP, YPD, YR, YRB, YRBN, YRDH, YRDM, YRR, YRST, YSD).
</P>
<P>(e) Coast Guard Patrol and Service Vessels and Craft:
</P>
<P>(1) Coast Guard Cutters (CGC, WHEC, WMEC)
</P>
<P>(2) Patrol Craft (WPB)
</P>
<P>(3) Icebreakers (WAGB)
</P>
<P>(4) Oceanography Vessels (WAGO)
</P>
<P>(5) Special Vessels (WIX)
</P>
<P>(6) Buoy Tenders (WLB, WLM, WLI, WLR, WLIC)
</P>
<P>(7) Tugs (WYTM, WYTL)
</P>
<P>(8) Light Ships (WLV).</P></NOTE>
<HD1>category vii—tanks and military vehicles
</HD1>
<P>(a) Military type armed or armored vehicles, military railway trains, and vehicles specifically designed or modified to accommodate mountings for arms or other specialized military equipment or fitted with such items.
</P>
<P>(b) Military tanks, combat engineer vehicles, bridge launching vehicles, halftracks and gun carriers.
</P>
<P>(c) Self-propelled guns and howitzers.
</P>
<P>(d)-(e) [Reserved]
</P>
<P>(f) Amphibious vehicles.
</P>
<P>(g) [Reserved]
</P>
<P>(h) Tank and military vehicle parts, components, accessories, attachments, and associated equipment for offensive or defensive systems for the articles in this category, as follows:
</P>
<P>(1) Armored hulls, armored turrets and turret support rings;
</P>
<P>(2) Active protection systems (i.e., defensive systems that actively detect and track incoming threats and launch a ballistic, explosive, energy or electromagnetic countermeasure(s) to neutralize the threat prior to contact with a vehicle);
</P>
<P>(3) Composite armor parts and components;
</P>
<P>(4) Spaced armor components and parts, including slat armor parts and components;
</P>
<P>(5) Reactive armor and components;
</P>
<P>(6) Electromagnetic armor parts and components, including pulsed power;
</P>
<P>(7) Gun mount, stabilization, turret drive, and automatic elevating systems;
</P>
<P>(8) Kits specifically designed to convert a vehicle in this category into either an unmanned or a driver-optional vehicle. For a kit to be controlled by this paragraph it must include all of the following:
</P>
<P>(i) Remote or autonomous steering;
</P>
<P>(ii) Acceleration and braking; and
</P>
<P>(iii) A control system;
</P>
<P>(9) Fire control computers, stored management systems, armaments control processors, vehicle weapon interface units and computers;
</P>
<P>(10) Electro-optical sighting systems; and
</P>
<P>(11) Laser rangefinder or target designating devices.
</P>
<P>(i) Other ground vehicles having all of the following:
</P>
<P>(1) Manufactured or fitted with materials or components to provide ballistic protection to level III (NIJ 0108.01, September 1985) or better;
</P>
<P>(2) A transmission to provide drive to both front and rear wheels simultaneously, including those vehicles having additional wheels for load bearing purposes whether driven or not;
</P>
<P>(3) Gross Vehicle Weight Rating (GVWR) greater than 4,500 kg; and
</P>
<P>(4) Designed or modified for off-road use.
</P>
<NOTE>
<HED>Note:</HED>
<P>An “amphibious vehicle” in Category VII(f) is a vehicle or chassis that is equipped to meet special military requirements, and that is designed or adapted for operation on or under water, as well as on land.</P></NOTE>
<NOTE>
<HED>Note:</HED>
<P>Engines and engine parts are not included in paragraph (h) of Category VII.</P></NOTE>
<NOTE>
<HED>Note:</HED>
<P>Paragraph (i) of Category VII does not apply to civil vehicles designed or modified for transporting money or valuables.</P></NOTE>
<HD1>category viii—aircraft and associated equipment
</HD1>
<P>(a) Aircraft, including but not limited to helicopters, non-expansive balloons, drones and lighter-than-air aircraft, which are specifically designed, modified, or equipped for military purposes. This includes but is not limited to the following military purposes: gunnery, bombing, rocket or missile launching, electronic and other surveillance, reconnaissance, refueling, aerial mapping, military liaison, cargo carrying or dropping, personnel dropping, airborne warning and control, and military training.
</P>
<P>(b) [Reserved]
</P>
<NOTE>
<HED>Note:</HED>
<P>In Category VIII, “aircraft” means aircraft designed, modified, or equipped for a military purpose, including aircraft described as “demilitarized.” All aircraft bearing an original military designation are included in Category VIII. However, the following aircraft are not so included so long as they have not been specifically equipped, reequipped, or modified for military operations:
</P>
<P>(a) Cargo aircraft bearing “C” designations and numbered C-45 through C-118 inclusive, and C-121 through C-125 inclusive, and C-131, using reciprocating engines only.
</P>
<P>(b) Trainer aircraft bearing “T” designations and using reciprocating engines or turboprop engines with less than 600 horsepower (s.h.p.).
</P>
<P>(c) Utility aircraft bearing “U” designations and using reciprocating engines only.
</P>
<P>(d) All liaison aircraft bearing an “L” designation.
</P>
<P>(e) All observation aircraft bearing “O” designations and using reciprocating engines.</P></NOTE>
<HD1>categories ix-xiii <E T="01">[Reserved]</E>
</HD1>
<HD1>category xiv—toxicological agents and equipment and radiological equipment
</HD1>
<P>(a) Chemical agents, including but not limited to lung irritants, vesicants, lachrymators, and tear gases (except tear gas formulations containing 1% or less CN or CS), sternutators and irritant smoke, and nerve gases and incapacitating agents.
</P>
<P>(b) [Reserved]
</P>
<P>(c) All specifically designed or modified equipment, including components, parts, accessories, and attachments for disseminating the articles in paragraph (a) of this category.
</P>
<P>(d)-(e)[Reserved]
</P>
<NOTE>
<HED>Note:</HED>
<P>A chemical agent in Category XIV(a) is a substance having military application which by its ordinary and direct chemical action produces a powerful physiological effect. The term “chemical agent” includes, but is not limited to, the following chemical compounds:
</P>
<P>(a) Lung irritants:
</P>
<P>(1) Diphenylcyanoarsine (DC).
</P>
<P>(2) Fluorine (but not fluorene).
</P>
<P>(3) Trichloronitro methane (chloropicrin PS).
</P>
<P>(b) Vesicants:
</P>
<P>(1) B-Chlorovinyldichloroarsine (Lewisite, L).
</P>
<P>(2) Bis(dichlorethyl) sulphide (Mustard Gas, HD or H).
</P>
<P>(3) Ethyldichloroarsine (ED).
</P>
<P>(4) Methyldichloroarsine (MD).
</P>
<P>(c) Lachrymators and tear gases:
</P>
<P>(1) A-Brombenzyl cyanide (BBC).
</P>
<P>(2) Chloroacetophenone (CN).
</P>
<P>(3) Dibromodimethyl ether.
</P>
<P>(4) Dichlorodimethyl ether (ClCi).
</P>
<P>(5) Ethyldibromoarsine.
</P>
<P>(6) Phenylcarbylamine chloride.
</P>
<P>(7) Tear gas solutions (CNB and CNS).
</P>
<P>(8) Tear gas orthochlorobenzalmalononitrile (CS).
</P>
<P>(d) Sternutators and irritant smokes:
</P>
<P>(1) Diphenylamine chloroarsine (Adamsite, DM).
</P>
<P>(2) Diphenylchloroarsine (BA).
</P>
<P>(3) Liquid pepper.
</P>
<P>(e) Nerve agents, gases, and aerosols. These are toxic compounds which affect the nervous system, such as:
</P>
<P>(1) Dimethylaminoethoxycyanophosphine oxide (GA).
</P>
<P>(2) Methylisopropoxyfluorophosphine oxide (GB).
</P>
<P>(3) Methylpinacolyloxyfluoriphosphine oxide (GD).
</P>
<P>(f) Antiplant chemicals, such as: Butyl 2-chloro-4-fluorophenoxyacetate (LNF).</P></NOTE>
<HD1>category xv <E T="01">[Reserved]</E>
</HD1>
<HD1>category xvi—nuclear weapons design and test equipment
</HD1>
<P>(a)[Reserved]
</P>
<P>(b) Modeling or simulation tools that model or simulate the environments generated by nuclear detonations or the effects of these environments on systems, subsystems, components, structures, or humans.
</P>
<NOTE>
<HED>Note:</HED>
<P>Category XVI does not include equipment, technical data, or services controlled by the Department of Energy pursuant to the Atomic Energy Act of 1954, as amended, and the Nuclear Non-Proliferation Act of 1978, as amended, or are government transfers authorized pursuant to these Acts.</P></NOTE>
<HD1>category xvii-xix <E T="01">[Reserved]</E>
</HD1>
<HD1>category xx—submersible vessels, oceanographic and associated equipment
</HD1>
<P>(a) Submersible vessels, manned and unmanned, designed or modified for military purposes or having independent capability to maneuver vertically or horizontally at depths below 1,000 feet, or powered by nuclear propulsion plants.
</P>
<P>(b) Submersible vessels, manned or unmanned, designed or modified in whole or in part from technology developed by or for the U.S. Armed Forces.
</P>
<P>(c) Any of the articles in Category VI and elsewhere in this part specifically designed or modified for use with submersible vessels, and oceanographic or associated equipment assigned a military designation.
</P>
<P>(d) Equipment, components, parts, accessories, and attachments specifically designed for any of the articles in paragraphs (a) and (b) of this category.
</P>
<HD1>category xxi—miscellaneous articles
</HD1>
<P>Any defense article or defense service not specifically enumerated in the other categories of the USMIL that has substantial military applicability and that has been specifically designed or modified for military purposes. The decision as to whether any article may be included in this category shall be made by the Attorney General with the concurrence of the Secretary of State and the Secretary of Defense.</P></EXTRACT>
<CITA TYPE="N">[T.D. ATF-215, 50 FR 42158, Oct. 18, 1985; 50 FR 46647, Nov. 12, 1985, as amended by T.D. ATF-426, 65 FR 38197, June 20, 2000; ATF-9F, 72 FR 72938, Dec. 26, 2007; ATF-50F, 78 FR 23677, Apr. 22, 2013; ATF-25I, 79 FR 17028, Mar. 27, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 447.22" NODE="27:3.0.1.2.2.3.1.2" TYPE="SECTION">
<HEAD>§ 447.22   Forgings, castings, and machined bodies.</HEAD>
<P>Articles on the U.S. Munitions Import List include articles in a partially completed state (such as forgings, castings, extrusions, and machined bodies) which have reached a stage in manufacture where they are clearly identifiable as defense articles. If the end-item is an article on the U.S. Munitions Import List, (including components, accessories, attachments and parts) then the particular forging, casting, extrusion, machined body, etc., is considered a defense article subject to the controls of this part, except for such items as are in normal commercial use.
</P>
<CITA TYPE="N">[T.D. ATF-215, 50 FR 42160, Oct. 18, 1985]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:3.0.1.2.2.4" TYPE="SUBPART">
<HEAD>Subpart D—Registration</HEAD>


<DIV8 N="§ 447.31" NODE="27:3.0.1.2.2.4.1.1" TYPE="SECTION">
<HEAD>§ 447.31   Registration requirement.</HEAD>
<P>Persons engaged in the business, in the United States, of importing articles enumerated on the U.S. Munitions Import List must register by making an application on ATF Form 4587.
</P>
<CITA TYPE="N">[T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 447.32" NODE="27:3.0.1.2.2.4.1.2" TYPE="SECTION">
<HEAD>§ 447.32   Application for registration and refund of fee.</HEAD>
<P>(a) Application for registration must be filed on ATF Form 4587 and must be accompanied by the registration fee at the rate prescribed in this section. The appropriate ATF officer will approve the application and return the original to the applicant. 
</P>
<P>(b) Registration may be effected for periods of from 1 to 5 years at the option of the registrant by identifying on Form 4587 the period of registration desired. The registration fees are as follows:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TD align="left" class="gpotbl_cell" scope="row">1 year</TD><TD align="right" class="gpotbl_cell">$250
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">2 years</TD><TD align="right" class="gpotbl_cell">500
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">3 years</TD><TD align="right" class="gpotbl_cell">700
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">4 years</TD><TD align="right" class="gpotbl_cell">850
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5 years</TD><TD align="right" class="gpotbl_cell">1,000</TD></TR></TABLE></DIV></DIV>
<P>(c) Fees paid in advance for whole future years of a multiple year registration will be refunded upon request if the registrant ceases to engage in importing articles on the U.S. Munitions Import List. A request for a refund must be submitted to the appropriate ATF officer at the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Martinsburg, WV 25405, prior to the beginning of any year for which a refund is claimed. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0009)
</APPRO>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 FR 42161, Oct. 18, 1985; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002; ATF-11F, 73 FR 57240, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 447.33" NODE="27:3.0.1.2.2.4.1.3" TYPE="SECTION">
<HEAD>§ 447.33   Notification of changes in information furnished by registrants.</HEAD>
<P>Registered persons shall notify the appropriate ATF officer in writing, in duplicate, of significant changes in the information set forth in their registration
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0009)
</APPRO>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 FR 42161, Oct. 18, 1985; ATF-11F, 73 FR 57240, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 447.34" NODE="27:3.0.1.2.2.4.1.4" TYPE="SECTION">
<HEAD>§ 447.34   Maintenance of records by persons required to register as importers of Import List articles.</HEAD>
<P>(a) Registrants under this part engaged in the business of importing articles subject to controls under 27 CFR Parts 478 and 479 shall maintain records in accordance with the applicable provisions of those parts.
</P>
<P>(b) Registrants under this part engaged in importing articles on the U.S. Munitions Import List subject to the permit procedures of subpart E of this part must maintain for a period of 6 years records bearing on such articles imported, including records concerning their acquisition and disposition, including Forms 6 and 6A. The appropriate ATF officer may prescribe a longer or shorter period in individual cases as such officer deems necessary. See § 478.129 of this chapter for articles subject to import control under part 478 of this chapter.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0032)
</APPRO>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. ATF-215, 50 FR 42161, Oct. 18, 1985; T.D. ATF-426, 65 FR 38197, June 20, 2000; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002; ATF-11F, 73 FR 57240, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 447.35" NODE="27:3.0.1.2.2.4.1.5" TYPE="SECTION">
<HEAD>§ 447.35   Forms prescribed.</HEAD>
<P>(a) The appropriate ATF officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form. 
</P>
<P>(b) Forms may be requested from the ATF Distribution Center (<I>http://www.atf.gov</I>) or by calling (202) 648-6420.
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46914, Sept. 23, 1981, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987; T.D. ATF-426, 65 FR 38197, June 20, 2000; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002; ATF-11F, 73 FR 57240, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:3.0.1.2.2.5" TYPE="SUBPART">
<HEAD>Subpart E—Permits</HEAD>


<DIV8 N="§ 447.41" NODE="27:3.0.1.2.2.5.1.1" TYPE="SECTION">
<HEAD>§ 447.41   Permit requirement.</HEAD>
<P>(a) Articles on the U.S. Munitions Import List will not be imported into the United States except pursuant to a permit under this subpart. For articles subject to control under parts 478 or 479 of this chapter, a separate permit is not necessary.
</P>
<P>(b) Articles on the U.S. Munitions Import List intended for the United States or any State or political subdivision thereof, or the District of Columbia, which are exempt from import controls of 27 CFR 478.115 shall not be imported into the United States, except by the United States or agency thereof, without first obtaining a permit under this subpart.
</P>
<P>(c) A permit is not required for the importation of—
</P>
<P>(1)(i) The U.S. Munitions Import List articles from Canada, except articles enumerated in Categories I, II, III, IV, VI(e), VIII(a), XVI, and XX; and
</P>
<P>(ii) Nuclear weapons strategic delivery systems and all specifically designed components, parts, accessories, attachments, and associated equipment thereof (see Category XXI); or
</P>
<P>(2) Minor components and parts for Category I(a) and I(b) firearms, except barrels, cylinders, receivers (frames) or complete breech mechanisms, when the total value does not exceed $100 wholesale in any single transaction.
</P>
<CITA TYPE="N">[T.D. ATF-215, 50 FR 42161, Oct. 18, 1985, as amended by T.D. ATF-426, 65 FR 38197, June 20, 2000; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 447.42" NODE="27:3.0.1.2.2.5.1.2" TYPE="SECTION">
<HEAD>§ 447.42   Application for permit.</HEAD>
<P>(a)(1) Persons required to obtain a permit as provided in § 447.41 must file a Form 6—Part I. The application must be signed and dated and must contain the information requested on the form, including:
</P>
<P>(i) The name, address, telephone number, license and registration number, if any (including expiration date) of the importer;
</P>
<P>(ii) The country from which the defense article is to be imported;
</P>
<P>(iii) The name and address of the foreign seller and foreign shipper;
</P>
<P>(iv) A description of the defense article to be imported, including—
</P>
<P>(A) The name and address of the manufacturer of the defense article, or “privately made firearm” (if a firearm privately made in the United States);
</P>
<P>(B) The type (e.g., rifle, shotgun, pistol, revolver, aircraft, vessel, and in the case of ammunition only, ball, wadcutter, shot, etc.);
</P>
<P>(C) The caliber, gauge, or size;
</P>
<P>(D) The model;
</P>
<P>(E) The length of barrel, if any (in inches);
</P>
<P>(F) The overall length, if a firearm (in inches);
</P>
<P>(G) The serial number, if known;
</P>
<P>(H) Whether the defense article is new or used;
</P>
<P>(I) The quantity;
</P>
<P>(J) The unit cost of the firearm, firearm barrel, ammunition, or other defense article to be imported;
</P>
<P>(K) The category of U.S. Munitions Import List under which the article is regulated;
</P>
<P>(v) The specific purpose of importation, including final recipient information if different from the importer; and
</P>
<P>(vi) Certification of origin.
</P>
<P>(2)(i) If the appropriate ATF officer approves the application, such approved application will serve as the permit to import the defense article described therein, and importation of such defense article may continue to be made by the licensed/registered importer (if applicable) under the approved application (permit) during the period specified thereon. The appropriate ATF officer will furnish the approved application (permit) to the applicant and retain two copies thereof for administrative use.
</P>
<P>(ii) If the Director disapproves the application, the licensed/registered importer (if applicable) will be notified of the basis for the disapproval.
</P>
<P>(b) For additional requirements relating to the importation of plastic explosives into the United States on or after April 24, 1997, see § 555.183 of this title.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0005)
</APPRO>
<CITA TYPE="N">[T.D. ATF-215, 50 FR 42161, Oct. 18, 1985, as amended by T.D. ATF-387, 62 FR 8376, Feb. 25, 1997; T.D. ATF-426, 65 FR 38197, June 20, 2000;T.D. ATF-484, 67 FR 64526, Oct. 21, 2002; ATF-11F, 73 FR 57240, Oct. 2, 2008; ATF-2021R-05F, 87 FR 24734, Apr. 26, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 447.43" NODE="27:3.0.1.2.2.5.1.3" TYPE="SECTION">
<HEAD>§ 447.43   Terms of permit.</HEAD>
<P>(a) Import permits issued under this subpart are valid for two years  from their issuance date unless a different period of validity is stated thereon. They are not transferable.
</P>
<P>(b) If shipment cannot be completed during the period of validity of the permit, another application must be submitted for permit to cover the unshipped balance. Such an application shall make reference to the previous permit and may include materials in addition to the unshipped balance.
</P>
<P>(c) No amendments or alteration of a permit may be made, except by the appropriate ATF officer.
</P>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-325, 57 FR 29787, July 7, 1992; T.D. ATF-426, 65 FR 38197, June 20, 2000; ATF-26F, 79 FR 7396, Feb. 7, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 447.44" NODE="27:3.0.1.2.2.5.1.4" TYPE="SECTION">
<HEAD>§ 447.44   Permit denial, revocation or suspension.</HEAD>
<P>(a) Import permits under this subpart may be denied, revoked, suspended or revised without prior notice whenever the appropriate ATF officer finds the proposed importation to be inconsistent with the purpose or in violation of section 38, Arms Export Control Act of 1976 or the regulations in this part.
</P>
<P>(b) Whenever, after appropriate consideration, a permit application is denied or an outstanding permit is revoked, suspended, or revised, the applicant or permittee shall be promptly advised in writing of the appropriate ATF officer's decision and the reasons therefor.
</P>
<P>(c) Upon written request made within 30 days after receipt of an adverse decision, the applicant or permittee shall be accorded an opportunity to present additional information and to have a full review of his case by the appropriate ATF officer.
</P>
<P>(d) Unused, expired, suspended, or revoked permits must be returned immediately to the appropriate ATF officer.
</P>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 FR 42161, Oct. 18, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 447.45" NODE="27:3.0.1.2.2.5.1.5" TYPE="SECTION">
<HEAD>§ 447.45   Importation.</HEAD>
<P>(a) Articles subject to the import permit procedures of this subpart imported into the United States may be released from Customs custody to the person authorized to import same upon his showing that he has a permit for the importation of the article or articles to be released. For articles in Categories I and III imported by a registered importer, the importer will also submit to Customs a copy of the export license authorizing the export of the article or articles from the exporting country. If the exporting country does not require issuance of an export license, the importer must submit a certification, under penalty of perjury, to that effect.
</P>
<P>(1) In obtaining the release from Customs custody of an article imported pursuant to a permit, the permit holder will prepare and file Form 6A according to its instructions. 
</P>
<P>(2) The ATF Form 6A must contain the information requested on the form, including:
</P>
<P>(i) The name, address, and license number (if any) of the importer;
</P>
<P>(ii) The name of the manufacturer of the defense article, or “privately made firearm” (if a firearm privately made in the United States);
</P>
<P>(iii) The country of manufacture;
</P>
<P>(iv) The type;
</P>
<P>(v) The model;
</P>
<P>(vi) The caliber, gauge, or size;
</P>
<P>(vii) The serial number in the case of firearms, if known; and
</P>
<P>(viii) The number of defense articles released.
</P>
<P>(b) Within 15 days of the date of their release from Customs custody, the importer of the articles released will forward to the address specified on the form a copy of Form 6A on which will be reported any error or discrepancy appearing on the Form 6A certified by Customs and serial numbers if not previously provided on ATF Form 6A.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0007)
</APPRO>
<CITA TYPE="N">[T.D. ATF-215, 50 FR 42161, Oct. 18, 1985, as amended by T.D. ATF-426, 65 FR 38197, June 20, 2000; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002; ATF-11F, 73 FR 57240, Oct. 2, 2008; ATF-2021R-05F, 87 FR 24734, Apr. 26, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 447.46" NODE="27:3.0.1.2.2.5.1.6" TYPE="SECTION">
<HEAD>§ 447.46   Articles in transit.</HEAD>
<P>Articles subject to the import permit procedures of this subpart which enter the United States for temporary deposit pending removal therefrom and such articles which are temporarily taken out of the United States for return thereto are regarded as in transit and considered neither imported nor exported under this part. Such transactions are subject to the Intransit or Temporary Export License procedures of the Department of State (see 22 CFR part 123) or the entry clearance requirements for temporary imports maintained by the Department of Commerce (see 15 CFR 758.10).
</P>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 FR 42161, Oct. 18, 1985; ATF-2020R-03D, 91 FR 24356, May 6, 2026]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:3.0.1.2.2.6" TYPE="SUBPART">
<HEAD>Subpart F—Miscellaneous Provisions</HEAD>


<DIV8 N="§ 447.51" NODE="27:3.0.1.2.2.6.1.1" TYPE="SECTION">
<HEAD>§ 447.51   Import certification and delivery verification.</HEAD>
<P>Pursuant to agreement with the United States, certain foreign countries are entitled to request certification of legality of importation of articles on the U.S. Munitions Import List. Upon request of a foreign government, the appropriate ATF officer will certify the importation, on Form ITA-645P/ATF-4522/DSP53, for the U.S. importer. Normally, the U.S. importer will submit this form at the time he applies for an import permit. This document will serve as evidence to the government of the exporting company that the U.S. importer has complied with import regulations of the U.S. Government and is prohibited from diverting, transshipping, or reexporting the material described therein without the approval of the U.S. Government. Foreign governments may also require documentation attesting to the delivery of the material into the United States. When such delivery certification is requested by a foreign government, the U.S. importer may obtain directly from the U.S. District Director of Customs the authenticated Delivery Verification Certificate (U.S. Department of Commerce Form ITA-647P) for this purpose.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 0625-0064)
</APPRO>
<CITA TYPE="N">[T.D. ATF-215, 50 FR 42162, Oct. 18, 1985, as amended by T.D. ATF-484, 67 FR 64526, Oct. 21, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 447.52" NODE="27:3.0.1.2.2.6.1.2" TYPE="SECTION">
<HEAD>§ 447.52   Import restrictions applicable to certain countries.</HEAD>
<P>(a) It is the policy of the United States to deny licenses and other approvals with respect to defense articles and defense services originating in certain countries or areas. This policy applies to Afghanistan, Belarus (one of the states composing the former Soviet Union), Cuba, Iran, Iraq, Libya, Mongolia, North Korea, Sudan, Syria, and Vietnam. This policy applies to countries or areas with respect to which the United States maintains an arms embargo (e.g., Burma, China, the Democratic Republic of the Congo, Haiti, Liberia, Rwanda, Somalia, Sudan, and UNITA (Angola)). It also applies when an import would not be in furtherance of world peace and the security and foreign policy of the United States.
</P>
<NOTE>
<HED>Note:</HED>
<P>Changes in foreign policy may result in additions to and deletions from the above list of countries. The ATF will publish changes to this list in the <E T="04">Federal Register.</E> Contact the Firearms and Explosives Imports Branch at (304) 616-4550 for current information.</P></NOTE>
<P>(b) Notwithstanding paragraph (a) of this section, the appropriate ATF officer shall deny applications to import into the United States the following firearms and ammunition:
</P>
<P>(1) Any firearm located or manufactured in Georgia, Kazakstan, Kyrgyzstan, Moldova, Russian Federation, Turkmenistan, Ukraine, or Uzbekistan, and any firearm previously manufactured in the Soviet Union, that is not one of the models listed below:
</P>
<P>(i) Pistols/Revolvers:
</P>
<P>(A) German Model P08 Pistol.
</P>
<P>(B) IZH 34M, .22 caliber Target Pistol.
</P>
<P>(C) IZH 35M, .22 caliber Target Pistol.
</P>
<P>(D) Mauser Model 1896 Pistol.
</P>
<P>(E) MC-57-1 Pistol.
</P>
<P>(F) MC-1-5 Pistol.
</P>
<P>(G) Polish Vis Model 35 Pistol.
</P>
<P>(H) Soviet Nagant Revolver.
</P>
<P>(I) TOZ 35, .22 caliber Target Pistol.
</P>
<P>(ii) Rifles:
</P>
<P>(A) BARS-4 Bolt Action Carbine.
</P>
<P>(B) Biathlon Target Rifle, .22LR caliber.
</P>
<P>(C) British Enfield Rifle.
</P>
<P>(D) CM2, .22 caliber Target Rifle (also known as SM2, 22 caliber).
</P>
<P>(E) German Model 98K Rifle.
</P>
<P>(F) German Model G41 Rifle.
</P>
<P>(G) German Model G43 Rifle.
</P>
<P>(H) IZH-94.
</P>
<P>(I) LOS-7 Bolt Action Rifle.
</P>
<P>(J) MC-7-07.
</P>
<P>(K) MC-18-3.
</P>
<P>(L) MC-19-07.
</P>
<P>(M) MC-105-01.
</P>
<P>(N) MC-112-02.
</P>
<P>(O) MC-113-02.
</P>
<P>(P) MC-115-1.
</P>
<P>(Q) MC-125/127.
</P>
<P>(R) MC-126.
</P>
<P>(S) MC-128.
</P>
<P>(T) Saiga Rifle.
</P>
<P>(U) Soviet Model 38 Carbine.
</P>
<P>(V) Soviet Model 44 Carbine.
</P>
<P>(W) Soviet Model 91/30 Rifle.
</P>
<P>(X) TOZ 18, .22 caliber Bolt Action Rifle.
</P>
<P>(Y) TOZ 55.
</P>
<P>(Z) TOZ 78.
</P>
<P>(AA) Ural Target Rifle, .22LR caliber.
</P>
<P>(BB) VEPR Rifle.
</P>
<P>(CC) Winchester Model 1895, Russian Model Rifle;
</P>
<P>(2) Ammunition located or manufactured in Georgia, Kazakstan, Kyrgyzstan, Moldova, Russian Federation, Turkmenistan, Ukraine, or Uzbekistan, and ammunition previously manufactured in the Soviet Union, that is 7.62 × 25mm caliber (also known as 7.63 × 25mm caliber or .30 Mauser); or
</P>
<P>(3) A type of firearm the manufacture of which began after February 9, 1996.
</P>
<P>(c) The provisions of paragraph (b) of this section shall not affect the fulfillment of contracts with respect to firearms or ammunition entered or withdrawn from warehouse for consumption in the United States on or before February 9, 1996.
</P>
<P>(d) A defense article authorized for importation under this part may not be shipped on a vessel, aircraft or other means or conveyance which is owned or operated by, or leased to or from, any of the countries or areas covered by paragraph (a) of this section.
</P>
<P>(e) Applications for permits to import articles that were manufactured in, or have been in, a country or area proscribed under this section may be approved where the articles are covered by Category I(a) of the Import List (other than those subject to the provisions of 27 CFR Part 479), are importable as curios or relics under the provisions of 27 CFR 478.118, and meet the following criteria:
</P>
<P>(1) The articles were manufactured in a proscribed country or area prior to the date, as established by the Department of State, the country or area became proscribed, or, were manufactured in a non-proscribed country or area; and
</P>
<P>(2) The articles have been stored for the five year period immediately prior to importation in a non-proscribed country or area.
</P>
<P>(f) Applicants desiring to import articles claimed to meet the criteria specified in paragraph (e) of this section shall explain, and certify to, how the firearms meet the criteria. The certification statement will be prepared in letter form, executed under the penalties of perjury, and should be submitted with the application for an import permit. The certification statement must be accompanied by documentary information on the country or area of original manufacture and on the country or area of storage for the five year period immediately prior to importation. Such information may, for example, include a verifiable statement in the English language of a government official or any other person having knowledge of the date and place of manufacture and/or the place of storage; a warehouse receipt or other document which provides the required history of storage; and any other document that the applicant believes substantiates the place and date of manufacture and the place of storage. The appropriate ATF officer, however, reserves the right to determine whether documentation is acceptable. Applicants shall, when required by the appropriate ATF officer, furnish additional documentation as may be necessary to determine whether an import permit application should be approved.
</P>
<CITA TYPE="N">[T.D. ATF-202, 50 FR 14382, Apr. 12, 1985, as amended by T.D. ATF-215, 50 FR 42162, Oct. 18, 1985; T.D. ATF-287, 54 FR 13681, Apr. 5, 1989; T.D. ATF-323, 57 FR 24189, June 8, 1992; T.D. ATF-349, 58 FR 47831, Sept. 13, 1993; T.D. ATF-367, 60 FR 47866, Sept. 15, 1995; T.D. ATF-396, 62 FR 61234, Nov. 17, 1997; T.D. ATF-484, 67 FR 64526, Oct. 21, 2002; ATF-9F, 72 FR 72938, Dec. 26, 2007]


</CITA>
</DIV8>


<DIV8 N="447.53" NODE="27:3.0.1.2.2.6.1.3" TYPE="SECTION">
<HEAD>447.53   Exemptions.</HEAD>
<P>(a) The provisions of this part are not applicable to:
</P>
<P>(1) Importing by the United States or any agency thereof;
</P>
<P>(2) Importing components for items being manufactured under contract for the Department of Defense; or
</P>
<P>(3) Importing articles (other than those which would be “firearms” as defined in 18 U.S.C. 921(a)(3)) manufactured in foreign countries for persons in the United States pursuant to Department of State or Department of Commerce approval.
</P>
<P>(b) Any person seeking to import articles on the U.S. Munitions Import List as exempt under paragraph (a)(2) or (3) of this section may obtain release of such articles from Customs and Border Protection (“CBP”) custody by submitting, to the CBP officer with authority to release, a statement claiming the exemption accompanied by satisfactory proof of eligibility. Such proof may be in the form of a letter from the Departments of Defense, State, or Commerce, as the case may be, confirming that the person has met the conditions of the claimed exemption.
</P>
<CITA TYPE="N">[ATF-2020R-03D, 91 FR 24357, May 6, 2026]


</CITA>
</DIV8>


<DIV8 N="§ 447.54" NODE="27:3.0.1.2.2.6.1.4" TYPE="SECTION">
<HEAD>§ 447.54   Administrative procedures inapplicable.</HEAD>
<P>The functions conferred under section 38, Arms Export Control Act of 1976, as amended, are excluded from the operation of Chapter 5, Title 5, United States Code, with respect to Rule Making and Adjudication, 5 U.S.C. 553 and 554.
</P>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 FR 42162, Oct. 18, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 447.55" NODE="27:3.0.1.2.2.6.1.5" TYPE="SECTION">
<HEAD>§ 447.55   Departments of State and Defense consulted.</HEAD>
<P>The administration of the provisions of this part will be subject to the guidance of the Secretaries of State and Defense on matters affecting world peace and the external security and foreign policy of the United States.


</P>
</DIV8>


<DIV8 N="§ 447.56" NODE="27:3.0.1.2.2.6.1.6" TYPE="SECTION">
<HEAD>§ 447.56   Authority of Customs officers.</HEAD>
<P>(a) Officers of the U.S. Customs Service are authorized to take appropriate action to assure compliance with this part and with 27 CFR Parts 478 and 479 as to the importation or attempted importation of articles on the U.S. Munitions Import List, whether or not authorized by permit.
</P>
<P>(b) Upon the presentation to him of a permit or written approval authorizing importation of articles on the U.S. Munitions Import List, the Customs officer who has authority to release same may require, in addition to such documents as may be required by Customs regulations, the production of other relevant documents relating to the proposed importation, including, but not limited to, invoices, orders, packing lists, shipping documents, correspondence, and instructions.
</P>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 FR 42162, Oct. 18, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 447.57" NODE="27:3.0.1.2.2.6.1.7" TYPE="SECTION">
<HEAD>§ 447.57   U.S. military defense articles.</HEAD>
<P>(a)(1) Notwithstanding any other provision of this part or of parts 478 or 479 of this chapter, no military defense article of United States manufacture may be imported into the United States if such article was furnished to a foreign government under a foreign assistance or foreign military sales program of the United States.
</P>
<P>(2) The restrictions in paragraph (a)(1) of this section cover defense articles which are advanced in value or improved in condition in a foreign country, but do not include those which have been substantially transformed as to become, in effect, articles of foreign manufacture.
</P>
<P>(b) Paragraph (a) of this section will not apply if:
</P>
<P>(1) The applicant submits with the ATF Form 6—Part I application written authorization from the Department of State to import the defense article; and
</P>
<P>(2) In the case of firearms, such firearms are curios or relics under 18 U.S.C. 925(e) and the person seeking to import such firearms provides a certification of a foreign government that the firearms were furnished to such government under a foreign assistance or foreign military sales program of the United States and that the firearms are owned by such foreign government. (See § 478.118 of this chapter providing for the importation of certain curio or relic handguns, rifles and shotguns.)
</P>
<P>(c) For the purpose of this section, the term “military defense article” includes all defense articles furnished to foreign governments under a foreign assistance or foreign military sales program of the United States as set forth in paragraph (a) of this section.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under OMB Control No. 1140-0005)
</APPRO>
<CITA TYPE="N">[T.D. ATF-287, 54 FR 13681, Apr. 5, 1989, as amended by T.D. ATF-393, 62 FR 61235, Nov. 17, 1997; T.D. ATF-426, 65 FR 38198, June 20, 2000; ATF-11F, 73 FR 57240, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 447.58" NODE="27:3.0.1.2.2.6.1.8" TYPE="SECTION">
<HEAD>§ 447.58   Delegations of the Director.</HEAD>
<P>The regulatory authorities of the Director contained in this part are delegated to appropriate ATF officers. These ATF officers are specified in ATF O 1130.34, Delegation of the Director's Authorities in 27 CFR Part 447. ATF delegation orders, such as ATF O 1130.34, are available to any interested party by submitting a request to the ATF Distribution Center (<I>http://www.atf.gov</I>) or by calling (202) 648-6420 
</P>
<CITA TYPE="N">[T.D. ATF-484, 67 FR 64526, Oct. 21, 2002, as amended by ATF-11F, 73 FR 57240, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:3.0.1.2.2.7" TYPE="SUBPART">
<HEAD>Subpart G—Penalties, Seizures and Forfeitures</HEAD>


<DIV8 N="§ 447.61" NODE="27:3.0.1.2.2.7.1.1" TYPE="SECTION">
<HEAD>§ 447.61   Unlawful importation.</HEAD>
<P>Any person who willfully:
</P>
<P>(a) Imports articles on the U.S. Munitions Import List without a permit;
</P>
<P>(b) Engages in the business of importing articles on the U.S. Munitions Import List without registering under this part; or
</P>
<P>(c) Otherwise violates any provisions of this part;
</P>
<FP>Shall upon conviction be fined not more than $1,000,000 or imprisoned not more than 10 years, or both.
</FP>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended at 39 FR 4760, Feb. 7, 1974; T.D. ATF-215, 50 FR 42162, Oct. 18, 1985; T.D. ATF-287, 54 FR 13681, Apr. 5, 1989]


</CITA>
</DIV8>


<DIV8 N="§ 447.62" NODE="27:3.0.1.2.2.7.1.2" TYPE="SECTION">
<HEAD>§ 447.62   False statements or concealment of facts.</HEAD>
<P>Any person who willfully, in a registration or permit application, makes any untrue statement of a material fact or fails to state a material fact required to be stated therein or necessary to make the statements therein not misleading, shall upon conviction be fined not more than $1,000,000, or imprisoned not more than 10 years, or both.
</P>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 FR 42162, Oct. 18, 1985; T.D. ATF-287, 54 FR 13681, Apr. 5, 1989]


</CITA>
</DIV8>


<DIV8 N="§ 447.63" NODE="27:3.0.1.2.2.7.1.3" TYPE="SECTION">
<HEAD>§ 447.63   Seizure and forfeiture.</HEAD>
<P>Whoever knowingly imports into the United States contrary to law any article on the U.S. Munitions Import List; or receives, conceals, buys, sells, or in any manner facilitates its transportation, concealment, or sale after importation, knowing the same to have been imported contrary to law, shall be fined not more than $10,000 or imprisoned not more than 5 years, or both; and the merchandise so imported, or the value thereof shall be forfeited to the United States.
</P>
<SECAUTH TYPE="N">(18 U.S.C. 545)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-8, 39 FR 3251, Jan. 25, 1974, as amended by T.D. ATF-215, 50 FR 42162, Oct. 18, 1985]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="478" NODE="27:3.0.1.2.3" TYPE="PART">
<HEAD>PART 478—COMMERCE IN FIREARMS AND AMMUNITION
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>5 U.S.C. 552(a); 18 U.S.C. 847, 921-931; 44 U.S.C. 3504(h).
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>33 FR 18555, Dec. 14, 1968, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. ATF-487, 68 FR 3750, Jan. 24, 2003. 
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 478 appear by T.D. ATF-411, 64 FR 17291, Apr. 9, 1999, T.D. ATF-487, 68 FR 3750, Jan. 24, 2003, and ATF-11F, 73 FR 57240, Oct. 2, 2008.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:3.0.1.2.3.1" TYPE="SUBPART">
<HEAD>Subpart A—Introduction</HEAD>


<DIV8 N="§ 478.1" NODE="27:3.0.1.2.3.1.1.1" TYPE="SECTION">
<HEAD>§ 478.1   Scope of regulations.</HEAD>
<P>(a) <I>General.</I> The regulations contained in this part relate to commerce in firearms and ammunition and are promulgated to implement Title I, State Firearms Control Assistance (18 U.S.C. Chapter 44), of the Gun Control Act of 1968 (82 Stat. 1213) as amended by Pub. L. 99-308 (100 Stat. 449), Pub. L. 99-360 (100 Stat. 766), Pub. L. 99-408 (100 Stat. 920), Pub. L. 103-159 (107 Stat. 1536), Pub. L. 103-322 (108 Stat. 1796), Pub. L. 104-208 (110 Stat. 3009), and Pub. L. 105-277 (112 Stat. 2681). 
</P>
<P>(b) <I>Procedural and substantive requirements.</I> This part contains the procedural and substantive requirements relative to:
</P>
<P>(1) The interstate or foreign commerce in firearms and ammunition;
</P>
<P>(2) The licensing of manufacturers and importers of firearms and ammunition, collectors of firearms, and dealers in firearms;
</P>
<P>(3) The conduct of business or activity by licensees;
</P>
<P>(4) The importation of firearms and ammunition;
</P>
<P>(5) The records and reports required of licensees;
</P>
<P>(6) Relief from disabilities under this part;
</P>
<P>(7) Exempt interstate and foreign commerce in firearms and ammunition; and
</P>
<P>(8) Restrictions on armor piercing ammunition.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10490, Mar. 31, 1988, as amended by T.D. ATF-354, 59 FR 7112, Feb. 14, 1994; T.D. ATF-363, 60 FR 17450, Apr. 6, 1995; T.D. ATF-401, 63 FR 35522, June 30, 1998; T.D. ATF-471, 67 FR 5425, Feb. 5, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 478.2" NODE="27:3.0.1.2.3.1.1.2" TYPE="SECTION">
<HEAD>§ 478.2   Relation to other provisions of law.</HEAD>
<P>The provisions in this part are in addition to, and are not in lieu of, any other provision of law, or regulations, respecting commerce in firearms or ammunition. For regulations applicable to traffic in machine guns, destructive devices, and certain other firearms, see Part 479 of this chapter. For statutes applicable to the registration and licensing of persons engaged in the business of manufacturing, importing or exporting arms, ammunition, or implements of war, see section 38 of the Arms Export Control Act (22 U.S.C. 2778) and regulations thereunder and Part 447 of this chapter. For statutes applicable to nonmailable firearms, see 18 U.S.C. 1715 and regulations thereunder.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10490, Mar. 31, 1988]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:3.0.1.2.3.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 478.11" NODE="27:3.0.1.2.3.2.1.1" TYPE="SECTION">
<HEAD>§ 478.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in this subpart. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude other things not enumerated which are in the same general class or are otherwise within the scope thereof.
</P>
<P><I>Act.</I> 18 U.S.C. Chapter 44.
</P>
<P><I>Adjudicated as a mental defective.</I> (a) A determination by a court, board, commission, or other lawful authority that a person, as a result of marked subnormal intelligence, or mental illness, incompetency, condition, or disease:
</P>
<P>(1) Is a danger to himself or to others; or
</P>
<P>(2) Lacks the mental capacity to contract or manage his own affairs.
</P>
<P>(b) The term shall include—
</P>
<P>(1) A finding of insanity by a court in a criminal case; and
</P>
<P>(2) Those persons found incompetent to stand trial or found not guilty by reason of lack of mental responsibility pursuant to articles 50a and 72b of the Uniform Code of Military Justice, 10 U.S.C. 850a, 876b.
</P>
<P><I>Admitted to the United States for lawful hunting or sporting purposes.</I> (a) Is entering the United States to participate in a competitive target shooting event sponsored by a national, State, or local organization, devoted to the competitive use or other sporting use of firearms; or 
</P>
<P>(b) Is entering the United States to display firearms at a sports or hunting trade show sponsored by a national, State, or local firearms trade organization, devoted to the competitive use or other sporting use of firearms. 
</P>
<P><I>Alien.</I> Any person not a citizen or national of the United States. 
</P>
<P><I>Alien illegally or unlawfully in the United States.</I> Aliens who are unlawfully in the United States are not in valid immigrant, nonimmigrant or parole status. The term includes any alien—
</P>
<P>(a) Who unlawfully entered the United States without inspection and authorization by an immigration officer and who has not been paroled into the United States under section 212(d)(5) of the Immigration and Nationality Act (INA);
</P>
<P>(b) Who is a nonimmigrant and whose authorized period of stay has expired or who has violated the terms of the nonimmigrant category in which he or she was admitted;
</P>
<P>(c) Paroled under INA section 212(d)(5) whose authorized period of parole has expired or whose parole status has been terminated; or
</P>
<P>(d) Under an order of deportation, exclusion, or removal, or under an order to depart the United States voluntarily, whether or not he or she has left the United States.
</P>
<P><I>Ammunition.</I> Ammunition or cartridge cases, primers, bullets, or propellent powder designed for use in any firearm other than an antique firearm. The term shall not include (a) any shotgun shot or pellet not designed for use as the single, complete projectile load for one shotgun hull or casing, nor (b) any unloaded, non-metallic shotgun hull or casing not having a primer.
</P>
<P><I>Antique firearm.</I> (1) Any firearm (including any firearm with a matchlock, flintlock, percussion cap, or similar type of ignition system) manufactured in or before 1898;
</P>
<P>(2) Any replica of any firearm described in paragraph (a) of this definition if such replica:
</P>
<P>(i) Is not designed or redesigned for using rimfire or conventional centerfire fixed ammunition; or
</P>
<P>(ii) Uses rimfire or conventional centerfire fixed ammunition that is no longer manufactured in the United States and that is not readily available in the ordinary channels of commercial trade; or
</P>
<P>(3) Any muzzle loading rifle, muzzle loading shotgun, or muzzle loading pistol that is designed to use black powder, or a black powder substitute, and that cannot use fixed ammunition. For purposes of this paragraph (3), the term “antique firearm” does not include any weapon that incorporates a firearm frame or receiver, any firearm that is converted into a muzzle loading weapon, or any muzzle loading weapon that can be readily converted to fire fixed ammunition by replacing the barrel, bolt, breechblock, or any combination thereof.
</P>
<P><I>Armor piercing ammunition.</I> Projectiles or projectile cores which may be used in a handgun and which are constructed entirely (excluding the presence of traces of other substances) from one or a combination of tungsten alloys, steel, iron, brass, bronze, beryllium copper, or depleted uranium; or full jacketed projectiles larger than .22 caliber designed and intended for use in a handgun and whose jacket has a weight of more than 25 percent of the total weight of the projectile. The term does not include shotgun shot required by Federal or State environmental or game regulations for hunting purposes, frangible projectiles designed for target shooting, projectiles which the Director finds are primarily intended to be used for sporting purposes, or any other projectiles or projectile cores which the Director finds are intended to be used for industrial purposes, including charges used in oil and gas well perforating devices.
</P>
<P><I>ATF officer.</I> An officer or employee of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) authorized to perform any function relating to the administration or enforcement of this part.
</P>
<P><I>Business premises.</I> The property on which the manufacturing or importing of firearms or ammunition or the dealing in firearms is or will be conducted. A private dwelling, no part of which is open to the public, shall not be recognized as coming within the meaning of the term.
</P>
<P><I>Chief, Federal Firearms Licensing Center (FFLC).</I> The ATF official responsible for the issuance and renewal of licenses under this part.
</P>
<P><I>Collector.</I> Any person who acquires, holds, or disposes of firearms as curios or relics.
</P>
<P><I>Collection premises.</I> The premises described on the license of a collector as the location at which he maintains his collection of curios and relics.
</P>
<P><I>Commerce.</I> Travel, trade, traffic, commerce, transportation, or communication among the several States, or between the District of Columbia and any State, or between any foreign country or any territory or possession and any State or the District of Columbia, or between points in the same State but through any other State or the District of Columbia or a foreign country.
</P>
<P><I>Committed to a mental institution.</I> A formal commitment of a person to a mental institution by a court, board, commission, or other lawful authority. The term includes a commitment to a mental institution involuntarily. The term includes commitment for mental defectiveness or mental illness. It also includes commitments for other reasons, such as for drug use. The term does not include a person in a mental institution for observation or a voluntary admission to a mental institution.
</P>
<P><I>Complete muffler or silencer device.</I> A firearm muffler or firearm silencer that contains all component parts necessary to function, whether or not assembled or operable.
</P>
<P><I>Complete weapon.</I> A firearm other than a firearm muffler or firearm silencer that contains all component parts necessary to function, whether or not assembled or operable.
</P>
<P><I>Controlled substance.</I> A drug or other substance, or immediate precursor, as defined in section 102 of the Controlled Substances Act, 21 U.S.C. 802. The term includes, but is not limited to, marijuana, depressants, stimulants, and narcotic drugs. The term does not include distilled spirits, wine, malt beverages, or tobacco, as those terms are defined or used in Subtitle E of the Internal Revenue Code of 1986, as amended.
</P>
<P><I>Crime punishable by imprisonment for a term exceeding 1 year.</I> Any Federal, State or foreign offense for which the maximum penalty, whether or not imposed, is capital punishment or imprisonment in excess of 1 year. The term shall not include (a) any Federal or State offenses pertaining to antitrust violations, unfair trade practices, restraints of trade, or other similar offenses relating to the regulation of business practices or (b) any State offense classified by the laws of the State as a misdemeanor and punishable by a term of imprisonment of 2 years or less. What constitutes a conviction of such a crime shall be determined in accordance with the law of the jurisdiction in which the proceedings were held. Any conviction which has been expunged or set aside or for which a person has been pardoned or has had civil rights restored shall not be considered a conviction for the purposes of the Act or this part, unless such pardon, expunction, or restoration of civil rights expressly provides that the person may not ship, transport, possess, or receive firearms, or unless the person is prohibited by the law of the jurisdiction in which the proceedings were held from receiving or possessing any firearms.
</P>
<P><I>Curios or relics.</I> Firearms which are of special interest to collectors by reason of some quality other than is associated with firearms intended for sporting use or as offensive or defensive weapons. To be recognized as curios or relics, firearms must fall within one of the following categories:
</P>
<P>(a) Firearms which were manufactured at least 50 years prior to the current date, but not including replicas thereof;
</P>
<P>(b) Firearms which are certified by the curator of a municipal, State, or Federal museum which exhibits firearms to be curios or relics of museum interest; and
</P>
<P>(c) Any other firearms which derive a substantial part of their monetary value from the fact that they are novel, rare, bizarre, or because of their association with some historical figure, period, or event. Proof of qualification of a particular firearm under this category may be established by evidence of present value and evidence that like firearms are not available except as collector's items, or that the value of like firearms available in ordinary commercial channels is substantially less.
</P>
<P><I>Customs officer.</I> Any officer of U.S. Customs and Border Protection, any commissioned, warrant, or petty officer of the Coast Guard, or any agent or other person authorized by law to perform the duties of a customs officer.
</P>
<P><I>Dating relationship.</I> A relationship between individuals who have or have recently had a continuing serious relationship of a romantic or intimate nature. A casual acquaintanceship or ordinary fraternization in a business or social context does not constitute a dating relationship. Whether a relationship constitutes a dating relationship shall be determined based on consideration of—
</P>
<P>(1) The length of the relationship;
</P>
<P>(2) The nature of the relationship; and
</P>
<P>(3) The frequency and type of interaction between the individuals involved in the relationship.
</P>
<P><I>Dealer.</I> Any person engaged in the business of selling firearms at wholesale or retail; any person engaged in the business of repairing firearms or of making or fitting special barrels, stocks, or trigger mechanisms to firearms; or any person who is a pawnbroker. The term shall include any person who engages in such business or occupation on a part-time basis. The term shall include such activities wherever, or through whatever medium, they are conducted, such as at a gun show or event, flea market, auction house, or gun range or club; at one's home; by mail order; over the internet (<I>e.g.,</I> online broker or auction); through the use of other electronic means (<I>e.g.,</I> text messaging service, social media raffle, or website); or at any other domestic or international public or private marketplace or premises.
</P>
<P><I>Destructive device.</I> (a) Any explosive, incendiary, or poison gas (1) bomb, (2) grenade, (3) rocket having a propellant charge of more than 4 ounces, (4) missile having an explosive or incendiary charge of more than one-quarter ounce, (5) mine, or (6) device similar to any of the devices described in the preceding paragraphs of this definition; (b) any type of weapon (other than a shotgun or a shotgun shell which the Director finds is generally recognized as particularly suitable for sporting purposes) by whatever name known which will, or which may be readily converted to, expel a projectile by the action of an explosive or other propellant, and which has any barrel with a bore of more than one-half inch in diameter; and (c) any combination of parts either designed or intended for use in converting any device into any destructive device described in paragraph (a) or (b) of this section and from which a destructive device may be readily assembled. The term shall not include any device which is neither designed nor redesigned for use as a weapon; any device, although originally designed for use as a weapon, which is redesigned for use as a signalling, pyrotechnic, line throwing, safety, or similar device; surplus ordnance sold, loaned, or given by the Secretary of the Army pursuant to the provisions of section 4684(2), 4685, or 4686 of title 10, United States Code; or any other device which the Director finds is not likely to be used as a weapon, is an antique, or is a rifle which the owner intends to use solely for sporting, recreational, or cultural purposes.
</P>
<P><I>Director.</I> The Director, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Justice, Washington, DC.
</P>
<P><I>Director of Industry Operations.</I> The principal ATF official in a Field Operations division responsible for administering regulations in this part.
</P>
<P><I>Discharged under dishonorable conditions.</I> Separation from the U.S. Armed Forces resulting from a dishonorable discharge or dismissal adjudged by a general court-martial. The term does not include any separation from the Armed Forces resulting from any other discharge, e.g., a bad conduct discharge. 
</P>
<P><I>Division.</I> A Bureau of Alcohol, Tobacco, Firearms, and Explosives Division.
</P>
<P><I>Drug trafficking crime.</I> (1) Any felony punishable under the Controlled Substances Act (21 U.S.C. 801 <I>et seq.</I>), the Controlled Substances Import and Export Act (21 U.S.C. 951 <I>et seq.</I>), or 46 U.S.C. chapter 705; and
</P>
<P>(2) Any felony punishable under the law of a State for which the conduct constituting the offense would constitute a felony punishable under the statutes cited in paragraph (1) of this definition.
</P>
<P><I>Engaged in the business</I>—(1) <I>Manufacturer of firearms.</I> A person who devotes time, attention, and labor to manufacturing firearms as a regular course of trade or business with the principal objective of livelihood and profit through the sale or distribution of the firearms manufactured;
</P>
<P>(2) <I>Manufacturer of ammunition.</I> A person who devotes time, attention, and labor to manufacturing ammunition as a regular course of trade or business with the principal objective of livelihood and profit through the sale or distribution of the ammunition manufactured;
</P>
<P>(3) <I>Dealer in firearms other than a gunsmith or a pawnbroker.</I> The term “engaged in the business as a dealer in firearms other than a gunsmith or a pawnbroker” shall have the same meaning as in § 478.13.
</P>
<P>(4) <I>Gunsmith.</I> A person who, as a service performed on existing firearms not for sale or distribution, devotes time, attention, and labor to repairing or customizing firearms, making or fitting special barrels, stocks, or trigger mechanisms to firearms, or placing marks of identification on privately made firearms in accordance with this part, as a regular course of trade or business with the principal objective of livelihood and profit, but such term shall not include a person who occasionally repairs or customizes firearms (including identification), or occasionally makes or fits special barrels, stocks, or trigger mechanisms to firearms. In the case of firearms for purposes of sale or distribution, such term shall include a person who performs repairs (<I>e.g.,</I> by replacing worn or broken parts) on complete weapons, or places marks of identification on privately made firearms, but shall not include a person who manufactures firearms (<I>i.e.,</I> frames or receivers or complete weapons) by completion, assembly, or applying coatings, or otherwise making them suitable for use, requiring a license as a manufacturer;
</P>
<P>(5) <I>Importer of firearms.</I> A person who devotes time, attention, and labor to importing firearms as a regular course of trade or business with the principal objective of livelihood and profit through the sale or distribution of the firearms imported; and,
</P>
<P>(6) <I>Importer of ammunition.</I> A person who devotes time, attention, and labor to importing ammunition as a regular course of trade or business with the principal objective of livelihood and profit through the sale or distribution of the ammunition imported.
</P>
<P>(7) <I>Related definitions.</I> For purposes of this definition—
</P>
<P>(i) The term “purchase” (and derivative terms thereof) means the act of obtaining a firearm in an agreed exchange for something of value;
</P>
<P>(ii) The term “sale” (and derivative terms thereof) means the act of disposing of a firearm in an agreed exchange for something of value, and the term “resale” means selling a firearm, including a stolen firearm, after it was previously sold by the original manufacturer or any other person; and
</P>
<P>(iii) The term “something of value” includes money, credit, personal property (<I>e.g.,</I> another firearm or ammunition), a service, a controlled substance, or any other medium of exchange or valuable consideration, legal or illegal.
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the return form, or other document or, where no form of declaration is prescribed, with the declaration:
</P>
<EXTRACT>
<P>“I declare under the penalties of perjury that this—(insert type of document, such as, statement, application, request, certificate), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete.”</P></EXTRACT>
<P><I>Federal crime of terrorism.</I> Any offense as defined under 18 U.S.C. 2332b(g)(5).
</P>
<P><I>Federal Firearms Act.</I> 15 U.S.C. Chapter 18.
</P>
<P><I>Felony.</I> Any offense under Federal or State law punishable by imprisonment for a term exceeding one year.
</P>
<P><I>Firearm.</I> Any weapon, including a starter gun, which will or is designed to or may readily be converted to expel a projectile by the action of an explosive; the frame or receiver of any such weapon; any firearm muffler or firearm silencer; or any destructive device; but the term shall not include an antique firearm. In the case of a licensed collector, the term shall mean only curios and relics. The term shall include a weapon parts kit that is designed to or may readily be completed, assembled, restored, or otherwise converted to expel a projectile by the action of an explosive. The term shall not include a weapon, including a weapon parts kit, in which the frame or receiver of such weapon is destroyed as described in the definition “frame or receiver”.
</P>
<P><I>Firearm muffler or firearm silencer.</I> Any device for silencing, muffling, or diminishing the report of a portable firearm, including any combination of parts, designed or redesigned, and intended for use in assembling or fabricating a firearm silencer or firearm muffler, and any part intended only for use in such assembly or fabrication.
</P>
<P><I>Former licensee inventory.</I> Firearms that were in the business inventory of a licensee at the time the license was terminated. Such firearms differ from a personal collection and other personal firearms in that they were purchased repetitively before the license was terminated as part of a licensee's business inventory with the predominant intent to earn a profit.
</P>
<P><I>Frame or receiver.</I> The term “frame or receiver” shall have the same meaning as in § 478.12.
</P>
<P><I>Friendly foreign government.</I> Any government with whom the United States has diplomatic relations and whom the United States has not identified as a State sponsor of terrorism. 
</P>
<P><I>Fugitive from justice.</I> Any person who has fled from any State to avoid prosecution for a felony or a misdemeanor; or any person who leaves the State to avoid giving testimony in any criminal proceeding. The term also includes any person who knows that misdemeanor or felony charges are pending against such person and who leaves the State of prosecution.
</P>
<P><I>Handgun.</I> (a) Any firearm which has a short stock and is designed to be held and fired by the use of a single hand; and
</P>
<P>(b) Any combination of parts from which a firearm described in paragraph (a) can be assembled.
</P>
<P><I>Hunting license or permit lawfully issued in the United States.</I> A license or permit issued by a State for hunting which is valid and unexpired. 
</P>
<P><I>Identification document.</I> A document containing the name, residence address, date of birth, and photograph of the holder and which was made or issued by or under the authority of the United States Government, a State, political subdivision of a State, a foreign government, political subdivision of a foreign government, an international governmental or an international quasi- governmental organization which, when completed with information concerning a particular individual, is of a type intended or commonly accepted for the purpose of identification of individuals.
</P>
<P><I>Importation.</I> The bringing of a firearm or ammunition into the United States; except that the bringing of a firearm or ammunition from outside the United States into a foreign-trade zone for storage pending shipment to a foreign country or subsequent importation into this country, pursuant to this part, shall not be deemed importation.
</P>
<P><I>Importer.</I> Any person engaged in the business of importing or bringing firearms or ammunition into the United States. The term shall include any person who engages in such business on a part-time basis.
</P>
<P><I>Importer's or manufacturer's serial number.</I> The serial number placed by a licensee on a firearm, including any full or abbreviated license number, any such identification on a privately made firearm, or a serial number issued by the Director. For purposes of 18 U.S.C. 922(k) and § 478.34, the term shall include any associated licensee name, or licensee city or State placed on a frame or receiver.
</P>
<P><I>Indictment.</I> Includes an indictment or information in any court, under which a crime punishable by imprisonment for a term exceeding 1 year (as defined in this section) may be prosecuted, or in military cases to any offense punishable by imprisonment for a term exceeding 1 year which has been referred to a general court-martial. An information is a formal accusation of a crime, differing from an indictment in that it is made by a prosecuting attorney and not a grand jury.
</P>
<P><I>Interstate or foreign commerce.</I> Includes commerce between any place in a State and any place outside of that State, or within any possession of the United States (not including the Canal Zone) or the District of Columbia. The term shall not include commerce between places within the same State but through any place outside of that State.
</P>
<P><I>Intimate partner.</I> With respect to a person, the spouse of the person, a former spouse of the person, an individual who is a parent of a child of the person, and an individual who cohabitates or has cohabitated with the person.
</P>
<P><I>Large capacity ammunition feeding device.</I> A magazine, belt, drum, feed strip, or similar device for a firearm manufactured after September 13, 1994, that has a capacity of, or that can be readily restored or converted to accept, more than 10 rounds of ammunition. The term does not include an attached tubular device designed to accept, and capable of operating only with, .22 caliber rimfire ammunition, or a fixed device for a manually operated firearm, or a fixed device for a firearm listed in 18 U.S.C. 922, appendix A.
</P>
<P><I>Licensed collector.</I> A collector of curios and relics only and licensed under the provisions of this part.
</P>
<P><I>Licensed dealer.</I> A dealer licensed under the provisions of this part.
</P>
<P><I>Licensed importer.</I> An importer licensed under the provisions of this part.
</P>
<P><I>Licensed manufacturer.</I> A manufacturer licensed under the provisions of this part.
</P>
<P><I>Local law enforcement authority.</I> A bureau, office, department, or other authority of a State or local government or Tribe that has jurisdiction to investigate a violation or potential violation of, or enforce, a State, local, or Tribal law.
</P>
<P><I>Machine gun.</I> Any weapon which shoots, is designed to shoot, or can be readily restored to shoot, automatically more than one shot, without manual reloading, by a single function of the trigger. The term shall also include the frame or receiver of any such weapon, any part designed and intended solely and exclusively, or combination of parts designed and intended, for use in converting a weapon into a machine gun, and any combination of parts from which a machine gun can be assembled if such parts are in the possession or under the control of a person. 
</P>
<P><I>Manufacturer.</I> Any person engaged in the business of manufacturing firearms or ammunition. The term shall include any person who engages in such business on a part-time basis.
</P>
<P><I>Mental institution.</I> Includes mental health facilities, mental hospitals, sanitariums, psychiatric facilities, and other facilities that provide diagnoses by licensed professionals of mental retardation or mental illness, including a psychiatric ward in a general hospital.
</P>
<P><I>Misdemeanor crime of domestic violence.</I> (1) Is a Federal, State or local offense that:
</P>
<P>(i) Is a misdemeanor under Federal, State, Tribal, or local law or, in States which do not classify offenses as misdemeanors, is an offense punishable by imprisonment for a term of one year or less, and includes offenses that are punishable only by a fine. (This is true whether or not the State statute specifically defines the offense as a “misdemeanor” or as a “misdemeanor crime of domestic violence.” The term includes all such misdemeanor convictions in Indian Courts established pursuant to 25 CFR part 11.);
</P>
<P>(ii) Has, as an element, the use or attempted use of physical force (e.g., assault and battery), or the threatened use of a deadly weapon; and
</P>
<P>(iii) Was committed by a current or former spouse, parent, or guardian of the victim; by a person with whom the victim shares a child in common; by a person who is cohabiting with or has cohabited with the victim as a spouse, parent, or guardian, (<I>e.g.,</I> the equivalent of a “common law” marriage even if such relationship is not recognized under the law); by a person similarly situated to a spouse, parent, or guardian of the victim (<I>e.g.,</I> two persons who are residing at the same location in an intimate relationship with the intent to make that place their home would be similarly situated to a spouse); or by a person who has a current or recent former dating relationship with the victim.
</P>
<P>(2) A person shall not be considered to have been convicted of such an offense for purposes of this part unless:
</P>
<P>(i) The person is considered to have been convicted by the jurisdiction in which the proceedings were held.
</P>
<P>(ii) The person was represented by counsel in the case, or knowingly and intelligently waived the right to counsel in the case; and
</P>
<P>(iii) In the case of a prosecution for which a person was entitled to a jury trial in the jurisdiction in which the case was tried, either
</P>
<P>(A) The case was tried by a jury, or
</P>
<P>(B) The person knowingly and intelligently waived the right to have the case tried by a jury, by guilty plea or otherwise.
</P>
<P>(3) A person shall not be considered to have been convicted of such an offense for purposes of this part if the conviction has been expunged or set aside, or is an offense for which the person has been pardoned or has had civil rights restored (if the law of the jurisdiction in which the proceedings were held provides for the loss of civil rights upon conviction for such an offense) unless the pardon, expunction, or restoration of civil rights expressly provides that the person may not ship, transport, possess, or receive firearms, and the person is not otherwise prohibited by the law of the jurisdiction in which the proceedings were held from receiving or possessing any firearms.
</P>
<P>(4)(i) Subject to paragraphs (4)(ii) and (iii) of this definition, a person shall not be considered to have been convicted of a misdemeanor crime of domestic violence against an individual in a dating relationship if the conviction was entered before June 25, 2022, has been expunged or set aside, or is an offense for which the person has been pardoned or has had firearm rights restored, unless the expungement, pardon, or restoration of rights expressly provides that the person may not ship, transport, possess, or receive firearms.
</P>
<P>(ii) In the case of a person who has not more than one conviction of a misdemeanor crime of domestic violence against an individual in a dating relationship, and is not otherwise prohibited under 18 U.S.C. chapter 44, the person shall not be disqualified from shipping, transport, possession, receipt, or purchase of a firearm under 18 U.S.C. chapter 44 if:
</P>
<P>(A) Five years have elapsed from the later of the judgment of conviction or the completion of the person's custodial or supervisory sentence, if any; and
</P>
<P>(B) The person has not subsequently been convicted of another such offense, or any misdemeanor under Federal, State, local, or Tribal law that has, as an element, the use or attempted use of physical force, or the threatened use of a deadly weapon, or any other offense that would disqualify the person under 18 U.S.C. 922(g).
</P>
<P>(iii) Restoration under paragraph (4)(ii) of this definition only removes the disqualification from shipping, transport, possession, receipt, or purchase of a firearm under this part. Restoration under paragraph (4)(ii) is not available for a current or former spouse, parent, or guardian of the victim; a person with whom the victim shares a child in common; a person who is cohabiting with or has cohabited with the victim as a spouse, parent, or guardian; or a person similarly situated to a spouse, parent, or guardian of the victim.
</P>
<P><I>National Firearms Act.</I> 26 U.S.C. Chapter 53.
</P>
<P><I>NICS.</I> The National Instant Criminal Background Check System established by the Attorney General pursuant to 18 U.S.C. 922(t).
</P>
<P><I>Nonimmigrant alien.</I> An alien in the United States in a nonimmigrant classification as defined by section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)). 
</P>
<P><I>Nonimmigrant visa.</I> A visa properly issued to an alien as an eligible nonimmigrant by a competent officer as provided in the Immigration and Nationality Act, 8 U.S.C. 1101 <I>et seq.</I>
</P>
<P><I>Pawnbroker.</I> Any person whose business or occupation includes the taking or receiving, by way of pledge or pawn, of any firearm as security for the payment or repayment of money. The term shall include any person who engages in such business on a part-time basis.
</P>
<P><I>Permanently inoperable.</I> A firearm which is incapable of discharging a shot by means of an explosive and incapable of being readily restored to a firing condition. An acceptable method of rendering most firearms permanently inoperable is to fusion weld the chamber closed and fusion weld the barrel solidly to the frame. Certain unusual firearms require other methods to render the firearm permanently inoperable. Contact ATF for instructions.
</P>
<P><I>Person.</I> Any individual, corporation, company, association, firm, partnership, society, or joint stock company.
</P>
<P><I>Personal collection (or personal collection of firearms, or personal firearms collection)</I>—(1) <I>General definition.</I> Personal firearms that a person accumulates for study, comparison, exhibition (<I>e.g.,</I> collecting curios or relics, or collecting unique firearms to exhibit at gun club events), or for a hobby (<I>e.g.,</I> noncommercial, recreational activities for personal enjoyment, such as hunting, skeet, target, or competition shooting, historical re-enactment, or noncommercial firearms safety instruction). The term shall not include any firearm purchased for the purpose of resale with the predominant intent to earn a profit (<I>e.g.,</I> primarily for a commercial purpose or financial gain, as distinguished from personal firearms a person accumulates for study, comparison, exhibition, or for a hobby, but which the person may also intend to increase in value). In addition, the term shall not include firearms accumulated primarily for personal protection: <I>Provided,</I> that nothing in this definition shall be construed as precluding a person from lawfully acquiring firearms for self-protection or other lawful personal use.
</P>
<P>(2) <I>Personal collection of licensee.</I> In the case of a firearm imported, manufactured, or otherwise acquired by a licensed manufacturer, licensed importer, or licensed dealer, the term shall include only a firearm described in paragraph (1) of this definition that was—
</P>
<P>(i) Acquired or transferred without the intent to willfully evade the restrictions placed upon licensees under 18 U.S.C. chapter 44;
</P>
<P>(ii) Recorded by the licensee as an acquisition in the licensee's acquisition and disposition record in accordance with § 478.122(a), § 478.123(a), or § 478.125(e) (unless acquired prior to licensure and not intended for sale);
</P>
<P>(iii) Recorded as a disposition from the licensee's business inventory to the licensee's personal collection or otherwise as a personal firearm in accordance with § 478.122(a), § 478.123(a), or § 478.125(e) (unless acquired prior to licensure and not intended for sale);
</P>
<P>(iv) Maintained in such personal collection or otherwise as a personal firearm (whether on or off the business premises) for at least one year from the date the firearm was so transferred, in accordance with 18 U.S.C. 923(c) and 27 CFR 478.125a; and
</P>
<P>(v) Stored separately from, and not commingled with the business inventory. When stored or displayed on the business premises, the personal collection and other personal firearms shall be appropriately identified as “not for sale” (<I>e.g.,</I> by attaching a tag).
</P>
<P><I>Pistol.</I> A weapon originally designed, made, and intended to fire a projectile (bullet) from one or more barrels when held in one hand, and having (a) a chamber(s) as an integral part(s) of, or permanently aligned with, the bore(s); and (b) a short stock designed to be gripped by one hand and at an angle to and extending below the line of the bore(s).
</P>
<P><I>Predominantly earn a profit.</I> The term “predominantly earn a profit” shall have the same meaning as in § 478.13.
</P>
<P><I>Principal objective of livelihood and profit.</I> The intent underlying the sale or disposition of firearms is predominantly one of obtaining livelihood and pecuniary gain, as opposed to other intents such as improving or liquidating a personal firearms collection: <I>Provided,</I> That proof of profit shall not be required as to a person who engages in the regular and repetitive purchase and disposition of firearms for criminal purposes or terrorism.
</P>
<P><I>Privately made firearm (PMF).</I> A firearm, including a frame or receiver, completed, assembled, or otherwise produced by a person other than a licensed manufacturer, and without a serial number placed by a licensed manufacturer at the time the firearm was produced. The term shall not include a firearm identified and registered in the National Firearms Registration and Transfer Record pursuant to chapter 53, title 26, United States Code, or any firearm manufactured or made before October 22, 1968 (unless remanufactured or remade after that date).
</P>
<P><I>Published ordinance.</I> A published law of any political subdivision of a State which the Director determines to be relevant to the enforcement of this part and which is contained on a list compiled by the Director, which list is incorporated by reference in the <E T="04">Federal Register,</E> revised annually, and furnished to licensees under this part.
</P>
<P><I>Readily.</I> A process, action, or physical state that is fairly or reasonably efficient, quick, and easy, but not necessarily the most efficient, speediest, or easiest process, action, or physical state. With respect to the classification of firearms, factors relevant in making this determination include the following:
</P>
<P>(1) Time, <I>i.e.,</I> how long it takes to finish the process;
</P>
<P>(2) Ease, <I>i.e.,</I> how difficult it is to do so;
</P>
<P>(3) Expertise, <I>i.e.,</I> what knowledge and skills are required;
</P>
<P>(4) Equipment, <I>i.e.,</I> what tools are required;
</P>
<P>(5) Parts availability, <I>i.e.,</I> whether additional parts are required, and how easily they can be obtained;
</P>
<P>(6) Expense, <I>i.e.,</I> how much it costs;
</P>
<P>(7) Scope, <I>i.e.,</I> the extent to which the subject of the process must be changed to finish it; and
</P>
<P>(8) Feasibility, <I>i.e.,</I> whether the process would damage or destroy the subject of the process, or cause it to malfunction.
</P>
<P><I>Renounced U.S. citizenship.</I> (a) A person has renounced his U.S. citizenship if the person, having been a citizen of the United States, has renounced citizenship either—
</P>
<P>(1) Before a diplomatic or consular officer of the United States in a foreign state pursuant to 8 U.S.C. 1481(a)(5); or
</P>
<P>(2) Before an officer designated by the Attorney General when the United States is in a state of war pursuant to 8 U.S.C. 1481(a)(6).
</P>
<P>(b) The term shall not include any renunciation of citizenship that has been reversed as a result of administrative or judicial appeal.
</P>
<P><I>Responsible person.</I> Any individual possessing, directly or indirectly, the power to direct or cause the direction of the management and policies of a sole proprietorship, corporation, company, partnership, or association, insofar as they pertain to firearms.
</P>
<P><I>Revolver.</I> A projectile weapon, of the pistol type, having a breechloading chambered cylinder so arranged that the cocking of the hammer or movement of the trigger rotates it and brings the next cartridge in line with the barrel for firing.
</P>
<P><I>Rifle.</I> A weapon designed or redesigned, made or remade, and intended to be fired from the shoulder, and designed or redesigned and made or remade to use the energy of an explosive to fire only a single projectile through a rifled bore for each single pull of the trigger.
</P>
<P>(1) For purposes of this definition, the term “designed or redesigned, made or remade, and intended to be fired from the shoulder” shall include a weapon that is equipped with an accessory, component, or other rearward attachment (<I>e.g.,</I> a “stabilizing brace”) that provides surface area that allows the weapon to be fired from the shoulder, provided other factors, as described in paragraph (2), indicate that the weapon is designed, made, and intended to be fired from the shoulder.
</P>
<P>(2) When a weapon provides surface area that allows the weapon to be fired from the shoulder, the following factors shall also be considered in determining whether the weapon is designed, made, and intended to be fired from the shoulder:
</P>
<P>(i) Whether the weapon has a weight or length consistent with the weight or length of similarly designed rifles;
</P>
<P>(ii) Whether the weapon has a length of pull, measured from the center of the trigger to the center of the shoulder stock or other rearward accessory, component or attachment (including an adjustable or telescoping attachment with the ability to lock into various positions along a buffer tube, receiver extension, or other attachment method), that is consistent with similarly designed rifles;
</P>
<P>(iii) Whether the weapon is equipped with sights or a scope with eye relief that require the weapon to be fired from the shoulder in order to be used as designed;
</P>
<P>(iv) Whether the surface area that allows the weapon to be fired from the shoulder is created by a buffer tube, receiver extension, or any other accessory, component, or other rearward attachment that is necessary for the cycle of operations;
</P>
<P>(v) The manufacturer's direct and indirect marketing and promotional materials indicating the intended use of the weapon; and
</P>
<P>(vi) Information demonstrating the likely use of the weapon in the general community.
</P>
<P><I>Secure gun storage or safety device.</I> (1) A device that, when installed on a firearm, is designed to prevent the firearm from being operated without first deactivating the device;
</P>
<P>(2) A device incorporated into the design of the firearm that is designed to prevent the operation of the firearm by anyone not having access to the device; or
</P>
<P>(3) A safe, gun safe, gun case, lock box, or other device that is designed to be or can be used to store a firearm and that is designed to be unlocked only by means of a key, a combination, or other similar means.
</P>
<P><I>Semiautomatic assault weapon.</I> (a) Any of the firearms, or copies or duplicates of the firearms in any caliber, known as:
</P>
<P>(1) Norinco, Mitchell, and Poly Technologies Avtomat Kalashnikovs (all models),
</P>
<P>(2) Action Arms Israeli Military Industries UZI and Galil,
</P>
<P>(3) Beretta Ar70 (SC-70),
</P>
<P>(4) Colt AR-15,
</P>
<P>(5) Fabrique National FN/FAL, FN/LAR, and FNC,
</P>
<P>(6) SWD M-10, M-11, M-11/9, and M-12,
</P>
<P>(7) Steyr AUG,
</P>
<P>(8) INTRATEC TEC-9, TEC-DC9 and TEC-22, and
</P>
<P>(9) Revolving cylinder shotguns, such as (or similar to) the Street Sweeper and Striker 12;
</P>
<P>(b) A semiautomatic rifle that has an ability to accept a detachable magazine and has at least 2 of—
</P>
<P>(1) A folding or telescoping stock,
</P>
<P>(2) A pistol grip that protrudes conspicuously beneath the action of the weapon,
</P>
<P>(3) A bayonet mount,
</P>
<P>(4) A flash suppressor or threaded barrel designed to accommodate a flash suppressor, and
</P>
<P>(5) A grenade launcher;
</P>
<P>(c) A semiautomatic pistol that has an ability to accept a detachable magazine and has at least 2 of—
</P>
<P>(1) An ammunition magazine that attaches to the pistol outside of the pistol grip,
</P>
<P>(2) A threaded barrel capable of accepting a barrel extender, flash suppressor, forward handgrip, or silencer,
</P>
<P>(3) A shroud that is attached to, or partially or completely encircles, the barrel and that permits the shooter to hold the firearm with the nontrigger hand without being burned,
</P>
<P>(4) A manufactured weight of 50 ounces or more when the pistol is unloaded, and
</P>
<P>(5) A semiautomatic version of an automatic firearm; and
</P>
<P>(d) A semiautomatic shotgun that has at least 2 of—
</P>
<P>(1) A folding or telescoping stock,
</P>
<P>(2) A pistol grip that protrudes conspicuously beneath the action of the weapon,
</P>
<P>(3) A fixed magazine capacity in excess of 5 rounds, and
</P>
<P>(4) An ability to accept a detachable magazine.
</P>
<P><I>Semiautomatic pistol.</I> Any repeating pistol which utilizes a portion of the energy of a firing cartridge to extract the fired cartridge case and chamber the next round, and which requires a separate pull of the trigger to fire each cartridge.
</P>
<P><I>Semiautomatic rifle.</I> Any repeating rifle which utilizes a portion of the energy of a firing cartridge to extract the fired cartridge case and chamber the next round, and which requires a separate pull of the trigger to fire each cartridge.
</P>
<P><I>Semiautomatic shotgun.</I> Any repeating shotgun which utilizes a portion of the energy of a firing cartridge to extract the fired cartridge case and chamber the next round, and which requires a separate pull of the trigger to fire each cartridge.
</P>
<P><I>Short-barreled rifle.</I> A rifle having one or more barrels less than 16 inches in length, and any weapon made from a rifle, whether by alteration, modification, or otherwise, if such weapon, as modified, has an overall length of less than 26 inches.
</P>
<P><I>Short-barreled shotgun.</I> A shotgun having one or more barrels less than 18 inches in length, and any weapon made from a shotgun, whether by alteration, modification, or otherwise, if such weapon as modified has an overall length of less than 26 inches.
</P>
<P><I>Shotgun.</I> A weapon designed or redesigned, made or remade, and intended to be fired from the shoulder, and designed or redesigned and made or remade to use the energy of an explosive to fire through a smooth bore either a number of ball shot or a single projectile for each single pull of the trigger.
</P>
<P><I>State.</I> A State of the United States. The term shall include the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States (not including the Canal Zone).
</P>
<P><I>State of residence.</I> The State in which an individual resides. An individual resides in a State if he or she is present in a State with the intention of making a home in that State. If an individual is on active duty as a member of the Armed Forces, the individual's State of residence is the State in which his or her permanent duty station is located, as stated in 18 U.S.C. 921(b). The following are examples that illustrate this definition:
</P>
<EXAMPLE>
<HED>Example 1.</HED><PSPACE>A maintains a home in State X. A travels to State Y on a hunting, fishing, business, or other type of trip. A does not become a resident of State Y by reason of such trip.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 2.</HED><PSPACE>A maintains a home in State X and a home in State Y. A resides in State X except for weekends or the summer months of the year and in State Y for the weekends or the summer months of the year. During the time that A actually resides in State X, A is a resident of State X, and during the time that A actually resides in State Y, A is a resident of State Y.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 3.</HED><PSPACE>A, an alien, travels to the United States on a three-week vacation to State X. A does not have a state of residence in State X because A does not have the intention of making a home in State X while on vacation. This is true regardless of the length of the vacation.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 4.</HED><PSPACE>A, an alien, travels to the United States to work for three years in State X. A rents a home in State X, moves his personal possessions into the home, and his family resides with him in the home. A intends to reside in State X during the 3-year period of his employment. A is a resident of State X.</PSPACE></EXAMPLE>
<P><I>Terrorism.</I> For purposes of the definitions “predominantly earn a profit” and “principal objective of livelihood and profit,” the term “terrorism” means activity, directed against United States persons, which—
</P>
<P>(1) Is committed by an individual who is not a national or permanent resident alien of the United States;
</P>
<P>(2) Involves violent acts or acts dangerous to human life which would be a criminal violation if committed within the jurisdiction of the United States; and
</P>
<P>(3) Is intended—
</P>
<P>(i) To intimidate or coerce a civilian population;
</P>
<P>(ii) To influence the policy of a government by intimidation or coercion; or
</P>
<P>(iii) To affect the conduct of a government by assassination or kidnapping.
</P>
<P><I>Unlawful user of or addicted to any controlled substance.</I> (1) A person who uses a controlled substance and demonstrates a pattern of compulsively using the controlled substance, characterized by impaired control over use, is addicted to a controlled substance.
</P>
<P>(2) A person who regularly uses a controlled substance over an extended period of time continuing into the present, without a lawful prescription or in a manner substantially different from that prescribed by a licensed physician, is an unlawful user of a controlled substance.
</P>
<P>(i) Such unlawful use is not limited to using a controlled substance on a particular day, or within a matter of days before shipping, transporting, possessing, or receiving a firearm. Rather, unlawful use requires evidence that the person has unlawfully used the substance with sufficient regularity and recency to indicate that the individual is actively engaged in such conduct. A person may be an unlawful current user of a controlled substance even though the substance is not being used at the precise time the person seeks to acquire, ship, transport, receive, or possess the firearm.
</P>
<P>(ii) A person is not an unlawful user of a controlled substance if the person has ceased regularly unlawfully using the substance, or if the person's unlawful use is isolated or sporadic or does not otherwise demonstrate a pattern of ongoing use. A person is also not an unlawful user if the person, while using a lawfully prescribed controlled substance, deviates slightly or immaterially from the instructions of the prescribing physician.
</P>
<P><I>Unserviceable firearm.</I> A firearm which is incapable of discharging a shot by means of an explosive and is incapable of being readily restored to a firing condition.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a), 80 Stat. 383, as amended; 18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13536, Mar. 31, 1978; 44 FR 55842, Sept. 28, 1979]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 478.11, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>


<DIV8 N="§ 478.12" NODE="27:3.0.1.2.3.2.1.2" TYPE="SECTION">
<HEAD>§ 478.12   Definition of Frame or Receiver.</HEAD>
<P>(a) Except as otherwise provided in this section, the term “frame or receiver” means the following—
</P>
<P>(1) The term “frame” means the part of a handgun, or variants thereof, that provides housing or a structure for the component (<I>i.e.,</I> sear or equivalent) designed to hold back the hammer, striker, bolt, or similar primary energized component prior to initiation of the firing sequence, even if pins or other attachments are required to connect such component (<I>i.e.,</I> sear or equivalent) to the housing or structure.
</P>
<P>(2) The term “receiver” means the part of a rifle, shotgun, or projectile weapon other than a handgun, or variants thereof, that provides housing or a structure for the primary component designed to block or seal the breech prior to initiation of the firing sequence (<I>i.e.,</I> bolt, breechblock, or equivalent), even if pins or other attachments are required to connect such component to the housing or structure.
</P>
<P>(3) The terms “variant” and “variants thereof” mean a weapon utilizing a similar frame or receiver design irrespective of new or different model designations or configurations, characteristics, features, components, accessories, or attachments. For example, an AK-type firearm with a short stock (<I>i.e.,</I> pistol grip) is a pistol variant of an AK-type rifle, an AR-type firearm with a short stock (<I>i.e.,</I> pistol grip) is a pistol variant of an AR-type rifle, and a revolving cylinder shotgun is a shotgun variant of a revolver.
</P>
<P>(4) The following are nonexclusive examples that illustrate the above definitions:
</P>
<P>(i) <I>Hinged or single framed revolvers:</I> The frame is the part of the revolver that provides a structure designed to hold the sear.
</P>
<img src="/graphics/er26ap22.001.gif"/>
<P>(ii) <I>Colt 1911, Beretta/Browning/FN Herstal/Heckler &amp; Koch/Ruger/Sig Sauer/Smith &amp; Wesson/Taurus hammer-fired semiautomatic pistols:</I> The frame is the lower portion of the pistol, or grip, that provides housing for the sear.
</P>
<img src="/graphics/er26ap22.002.gif"/>
<P>(iii) <I>Glock variant striker-fired semiautomatic pistols:</I> The frame is the lower portion of the pistol, or grip, that provides housing for the sear.
</P>
<img src="/graphics/er26ap22.003.gif"/>
<P>(iv) <I>Sig Sauer P250/P320 variant semiautomatic pistols:</I> The frame is the internal removable chassis of the pistol that provides housing for the sear or equivalent component.
</P>
<img src="/graphics/er26ap22.004.gif"/>
<P>(v) <I>Bolt action rifles:</I> The receiver is the part of the rifle that provides a structure for the bolt.
</P>
<img src="/graphics/er26ap22.005.gif"/>
<P>(vi) <I>Break action, lever action, or pump action rifles and shotguns:</I> The receiver is the part of the rifle or shotgun that provides housing for the bolt, breechblock, or equivalent.
</P>
<img src="/graphics/er26ap22.006.gif"/>
<P>(vii) <I>AK variant firearms:</I> The receiver is the part of the weapon that provides housing for the bolt.
</P>
<img src="/graphics/er26ap22.007.gif"/>
<P>(viii) <I>Steyr AUG variant firearms:</I> The receiver is the central part of the weapon that provides housing for the bolt.
</P>
<img src="/graphics/er26ap22.008.gif"/>
<P>(ix) <I>Thompson machineguns and semiautomatic variants, and L1A1, FN FAL, FN FNC, MP38, MP40, and SIG 550 firearms, and HK machineguns and semiautomatic variants:</I> The receiver is the upper part of the weapon that provides housing for the bolt.
</P>
<img src="/graphics/er26ap22.009.gif"/>
<P>(x) <I>Sten, Sterling, and Kel-Tec SUB-2000 firearms:</I> The receiver is the central part of the weapon, or tube, that provides housing for the bolt.
</P>
<img src="/graphics/er26ap22.010.gif"/>
<P>(b) <I>Firearm muffler or silencer frame or receiver.</I> The terms “frame” and “receiver” shall mean, in the case of a firearm muffler or firearm silencer, the part of the firearm, such as an outer tube or modular piece, that provides housing or a structure for the primary internal component designed to reduce the sound of a projectile (<I>i.e.,</I> baffles, baffling material, expansion chamber, or equivalent). In the case of a modular firearm muffler or firearm silencer device with more than one such part, the terms shall mean the principal housing attached to the weapon that expels a projectile, even if an adapter or other attachments are required to connect the part to the weapon. The terms shall not include a removable end cap of an outer tube or modular piece.
</P>
<P>(c) <I>Partially complete, disassembled, or nonfunctional frame or receiver.</I> The terms “frame” and “receiver” shall include a partially complete, disassembled, or nonfunctional frame or receiver, including a frame or receiver parts kit, that is designed to or may readily be completed, assembled, restored, or otherwise converted to function as a frame or receiver, <I>i.e.,</I> to house or provide a structure for the primary energized component of a handgun, breech blocking or sealing component of a projectile weapon other than a handgun, or internal sound reduction component of a firearm muffler or firearm silencer, as the case may be. The terms shall not include a forging, casting, printing, extrusion, unmachined body, or similar article that has not yet reached a stage of manufacture where it is clearly identifiable as an unfinished component part of a weapon (<I>e.g.,</I> unformed block of metal, liquid polymer, or other raw material). When issuing a classification, the Director may consider any associated templates, jigs, molds, equipment, tools, instructions, guides, or marketing materials that are sold, distributed, or possessed with the item or kit, or otherwise made available by the seller or distributor of the item or kit to the purchaser or recipient of the item or kit. The following are nonexclusive examples that illustrate the definitions:
</P>
<EXAMPLE>
<HED>Example 1 to paragraph <E T="01">(c)</E>—Frame or receiver:</HED><PSPACE>A frame or receiver parts kit containing a partially complete or disassembled billet or blank of a frame or receiver that is sold, distributed, or possessed with a compatible jig or template is a frame or receiver, as a person with online instructions and common hand tools may readily complete or assemble the frame or receiver parts to function as a frame or receiver.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 2 to paragraph <E T="01">(c)</E>—Frame or receiver:</HED><PSPACE>A partially complete billet or blank of a frame or receiver with one or more template holes drilled or indexed in the correct location is a frame or receiver, as a person with common hand tools may readily complete the billet or blank to function as a frame or receiver.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 3 to paragraph <E T="01">(c)</E>—Frame or receiver:</HED><PSPACE>A complete frame or receiver of a weapon that has been disassembled, damaged, split, or cut into pieces, but not destroyed in accordance with paragraph (e), is a frame or receiver.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 4 to paragraph <E T="01">(c)</E>—Not a receiver:</HED><PSPACE>A billet or blank of an AR-15 variant receiver without critical interior areas having been indexed, machined, or formed that is not sold, distributed, or possessed with instructions, jigs, templates, equipment, or tools such that it may readily be completed is not a receiver.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 5 to paragraph <E T="01">(c)</E>—Not a receiver:</HED><PSPACE>A flat blank of an AK variant receiver without laser cuts or indexing that is not sold, distributed, or possessed with instructions, jigs, templates, equipment, or tools is not a receiver, as a person cannot readily fold the flat to provide housing or a structure for the primary component designed to block or seal the breech prior to initiation of the firing sequence.</PSPACE></EXAMPLE>
<P>(d) <I>Multi-piece frame or receiver.</I> The term “multi-piece frame or receiver” shall mean a frame or receiver that may be disassembled into multiple modular subparts, <I>i.e.,</I> standardized units that may be replaced or exchanged. The term shall not include the internal frame of a pistol that is a complete removable chassis that provides housing for the sear or equivalent component, unless the chassis itself may be disassembled. The modular subpart(s) identified in accordance with § 478.92 with an importer's or manufacturer's serial number shall be presumed, absent an official determination by the Director or other reliable evidence to the contrary, to be part of the frame or receiver of a weapon or device.
</P>
<P>(e) <I>Destroyed frame or receiver.</I> The terms “frame” and “receiver” shall not include a frame or receiver that is destroyed. For purposes of these definitions, the term “destroyed” means that the frame or receiver has been permanently altered such that it may not readily be completed, assembled, restored, or otherwise converted to function as a frame or receiver. Acceptable methods of destruction include completely melting, crushing, or shredding the frame or receiver, or other method approved by the Director.
</P>
<P>(f)(1) <I>Frame or receiver classifications based on which part of the weapon was classified as such before</I> April 26, 2022. Except as provided in paragraph (f)(2) of this section, the terms “frame” and “receiver” shall include the specific part of a complete weapon, including variants thereof, determined (classified) by the Director to be defined as a firearm frame or receiver prior to April 26, 2022. Any such part that is identified with an importer's or manufacturer's serial number shall be presumed, absent an official determination by the Director or other reliable evidence to the contrary, to be the frame or receiver of the weapon. The following is a nonexclusive list of such weapons and the specific part determined by the Director to be the firearm frame or receiver as they existed on that date:
</P>
<P>(i) <I>AR-15/M-16 variant firearms:</I> The receiver is the lower part of the weapon that provides housing for the trigger mechanism and hammer (<I>i.e.,</I> lower receiver).
</P>
<img src="/graphics/er26ap22.011.gif"/>
<P>(ii) <I>Ruger Mark IV pistol:</I> The frame is the upper part of the weapon that provides housing for the bolt or breechblock.
</P>
<img src="/graphics/er26ap22.012.gif"/>
<P>(iii) <I>Benelli 121 M1 Shotgun:</I> The receiver is the lower part of the weapon that provides housing for the trigger mechanism.
</P>
<img src="/graphics/er26ap22.013.gif"/>
<P>(iv) <I>Vickers/Maxim, Browning 1919, M2, and box-type machineguns and semiautomatic variants:</I> The receiver is the side plate of the weapon that is designed to hold the charging handle.
</P>
<img src="/graphics/er26ap22.014.gif"/>
<P>(2) <I>Frame or receiver classifications of partially complete, disassembled, or nonfunctional frames or receivers before</I> April 26, 2022. Prior determinations by the Director that a partially complete, disassembled, or nonfunctional frame or receiver, including a parts kit, was not, or did not include, a “firearm frame or receiver” under § 478.11, or “frame or receiver” under § 479.11 of this subchapter, as those terms were defined prior to April 26, 2022, shall not continue to be valid or authoritative after that date. Such determinations shall include those in which the Director determined that the item or parts kit had not yet reached a stage of manufacture to be, or include, a “firearm frame or receiver” under § 478.11, or “frame or receiver” under § 479.11 of this subchapter, as those terms were defined prior to April 26, 2022.
</P>
<CITA TYPE="N">[ATF-2021R-05F, 87 FR 24735, Apr. 26, 2022; 87 FR 51249, 51250, Aug. 22, 2022]




</CITA>
</DIV8>


<DIV8 N="§478.13" NODE="27:3.0.1.2.3.2.1.3" TYPE="SECTION">
<HEAD>§478.13   Definition of “engaged in the business as a dealer in firearms other than a gunsmith or a pawnbroker.”</HEAD>
<P>(a) <I>Definition.</I> A person who devotes time, attention, and labor to dealing in firearms as a regular course of trade or business to predominantly earn a profit through the repetitive purchase and resale of firearms. The term shall not include a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of the person's personal collection of firearms. In addition, the term shall not include an auctioneer who provides only auction services on commission to assist in liquidating firearms at an estate-type auction; <I>provided,</I> that the auctioneer does not purchase the firearms, or take possession of the firearms for sale on consignment.
</P>
<P>(b) <I>Fact-specific inquiry.</I> Whether a person is engaged in the business as a dealer under paragraph (a) of this section is a fact-specific inquiry. Selling large numbers of firearms or engaging or offering to engage in frequent transactions may be highly indicative of business activity. However, there is no minimum threshold number of firearms purchased or sold that triggers the licensing requirement. Similarly, there is no minimum number of transactions that determines whether a person is “engaged in the business” of dealing in firearms. For example, even a single firearm transaction or offer to engage in a transaction, when combined with other evidence (<I>e.g.,</I> where a person represents to others a willingness and ability to purchase more firearms for resale), may require a license; whereas, a single isolated firearm transaction without such evidence would not require a license. At all times, the determination of whether a person is engaged in the business of dealing in firearms is based on the totality of the circumstances.
</P>
<P>(c) <I>Presumptions that a person is engaged in the business as a dealer.</I> In civil and administrative proceedings, a person shall be presumed to be engaged in the business of dealing in firearms as defined in paragraph (a) of this section, absent reliable evidence to the contrary, when it is shown that the person—
</P>
<P>(1) Resells or offers for resale firearms, and also represents to potential buyers or otherwise demonstrates a willingness and ability to purchase and resell additional firearms (<I>i.e.,</I> to be a source of additional firearms for resale);
</P>
<P>(2) Repetitively purchases for the purpose of resale, or repetitively resells or offers for resale, firearms—
</P>
<P>(i) Through straw or sham businesses, or individual straw purchasers or sellers; or
</P>
<P>(ii) That cannot lawfully be purchased, received, or possessed under Federal, State, local, or Tribal law, including:
</P>
<P>(A) Stolen firearms (<I>e.g.,</I> 18 U.S.C. 922(j));
</P>
<P>(B) Firearms with the licensee's serial number removed, obliterated, or altered, or not identified as required by law (<I>e.g.,</I> 18 U.S.C. 922(k) or 26 U.S.C. 5861(i));
</P>
<P>(C) Firearms imported in violation of law (<I>e.g.,</I> 18 U.S.C. 922(l), 22 U.S.C. 2778, or 26 U.S.C. 5844, 5861(k)); or
</P>
<P>(D) Machineguns or other weapons defined as firearms under 26 U.S.C. 5845(b) that cannot lawfully be possessed (<I>e.g.,</I> 18 U.S.C. 922(o); 26 U.S.C. 5861(d));
</P>
<P>(3) Repetitively resells or offers for resale firearms—
</P>
<P>(i) Within 30 days after the person purchased the firearms; or
</P>
<P>(ii) Within one year after the person purchased the firearms if they are—
</P>
<P>(A) New, or like new in their original packaging; or
</P>
<P>(B) The same make and model, or variants thereof;
</P>
<P>(4) As a former licensee (or responsible person acting on behalf of the former licensee), resells or offers for resale to a person (other than a licensee in accordance with § 478.57 or § 478.78) firearms that were in the business inventory of the former licensee at the time the license was terminated (<I>i.e.,</I> license revocation, denial of license renewal, license expiration, or surrender of license), whether or not such firearms were transferred to a responsible person of the former licensee after the license was terminated in accordance with § 478.57(b)(2) or § 478.78(b)(2); or
</P>
<P>(5) As a former licensee (or responsible person acting on behalf of the former licensee), resells or offers for resale firearms that were transferred to the licensee's personal collection or otherwise as personal firearms in accordance with 18 U.S.C. 923(c) and 27 CFR 478.125a(a) prior to the time the license was terminated, unless:
</P>
<P>(i) The firearms were received and transferred without any intent to willfully evade the restrictions placed on licensees by 18 U.S.C. chapter 44; and
</P>
<P>(ii) One year has passed from the date of transfer to the licensee's personal collection or otherwise as personal firearms.
</P>
<P>(d) <I>Predominantly earn a profit</I>—(1) <I>Definition.</I> The intent underlying the sale or disposition of firearms is predominantly one of obtaining pecuniary gain, as opposed to other intents, such as improving or liquidating a personal firearms collection: <I>Provided,</I> that proof of profit, including the intent to profit, shall not be required as to a person who engages in the regular and repetitive purchase and disposition of firearms for criminal purposes or terrorism. For purposes of this section, a person may have the intent to profit even if the person does not actually obtain the intended pecuniary gain from the sale or disposition of firearms.
</P>
<P>(2) <I>Presumptions that a person has intent to predominantly earn a profit.</I> In civil and administrative proceedings, a person shall be presumed to have the intent to predominantly earn a profit through the repetitive purchase and resale of firearms as defined in paragraph (d)(1) of this section, absent reliable evidence to the contrary, when it is shown that the person—
</P>
<P>(i) Repetitively or continuously advertises, markets, or otherwise promotes a firearms business (<I>e.g.,</I> advertises or posts firearms for resale, including through the internet or other digital means, establishes a website to offer their firearms for resale, makes available business cards, or tags firearms with sales prices), regardless of whether the person incurs expenses or only promotes the business informally;
</P>
<P>(ii) Repetitively or continuously purchases, rents, or otherwise exchanges (directly or indirectly) something of value to secure permanent or temporary physical space to display firearms they offer for resale, including part or all of a business premises, a table or space at a gun show, or a display case;
</P>
<P>(iii) Makes and maintains records to document, track, or calculate profits and losses from firearms repetitively purchased for resale;
</P>
<P>(iv) Purchases or otherwise secures merchant services as a business (<I>e.g.,</I> credit card transaction services, digital wallet for business) through which the person intends to repetitively accept payments for firearms transactions;
</P>
<P>(v) Formally or informally purchases, hires, or otherwise secures business security services (<I>e.g.,</I> a central station-monitored security system registered to a business, or guards for security) to protect firearms assets and repetitive firearms transactions;
</P>
<P>(vi) Formally or informally establishes a business entity, trade name, or online business account, including an account using a business name on a social media or other website, through which the person makes, or offers to make, repetitive firearms transactions; or
</P>
<P>(vii) Secures or applies for a State or local business license to purchase for resale or to resell merchandise that includes firearms.
</P>
<P>(e) <I>Conduct that does not support a presumption.</I> A person shall not be presumed to be engaged in the business of dealing in firearms when reliable evidence shows that the person is only reselling or otherwise transferring firearms—
</P>
<P>(1) As bona fide gifts;
</P>
<P>(2) Occasionally to obtain more valuable, desirable, or useful firearms for the person's personal collection;
</P>
<P>(3) Occasionally to a licensee or to a family member for lawful purposes;
</P>
<P>(4) To liquidate (without restocking) all or part of the person's personal collection; or
</P>
<P>(5) To liquidate firearms—
</P>
<P>(i) That are inherited; or
</P>
<P>(ii) Pursuant to a court order; or
</P>
<P>(6) To assist in liquidating firearms as an auctioneer when providing auction services on commission at an estate-type auction.
</P>
<P>(f) <I>Rebuttal evidence.</I> Reliable evidence of the conduct set forth in paragraph (e) of this section may be used to rebut any presumption in paragraph (c) or (d)(2) of this section that a person is engaged in the business of dealing in firearms, or intends to predominantly earn a profit through the repetitive purchase and resale of firearms.
</P>
<P>(g) <I>Presumptions, conduct, and rebuttal evidence not exhaustive.</I> The activities set forth in the rebuttable presumptions in paragraphs (c) and (d)(2) of this section, and the activities and rebuttal evidence set forth in paragraphs (e) and (f) of this section, are not exhaustive of the conduct or evidence that may be considered in determining whether a person is engaged in the business of dealing in firearms, or has the intent to predominantly earn a profit through the repetitive purchase and resale of firearms.
</P>
<P>(h) <I>Criminal proceedings.</I> The rebuttable presumptions in paragraphs (c) and (d)(2) of this section shall not apply to any criminal case, although they may be useful to courts in criminal cases, for example, when instructing juries regarding permissible inferences.
</P>
<CITA TYPE="N">[ATF 2022R-17, 89 FR 29090, Apr. 19, 2024]






</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:3.0.1.2.3.3" TYPE="SUBPART">
<HEAD>Subpart C—Administrative and Miscellaneous Provisions</HEAD>


<DIV8 N="§ 478.21" NODE="27:3.0.1.2.3.3.1.1" TYPE="SECTION">
<HEAD>§ 478.21   Forms prescribed.</HEAD>
<P>(a) The Director is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part.
</P>
<P>(b) Requests for forms should be submitted to the ATF Distribution Center (<I>http://www.atf.gov</I>) or made by calling (202) 648-6420.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a); 80 Stat. 383, as amended)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46915, Sept. 23, 1981, as amended by T.D. ATF-249, 52 FR 5962, Feb. 27, 1987; T.D. ATF-270, 53 FR 10492, Mar. 31, 1988; T.D. 372, 61 FR 20724, May 8, 1996; ATF-11F, 73 FR 57240, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 478.22" NODE="27:3.0.1.2.3.3.1.2" TYPE="SECTION">
<HEAD>§ 478.22   Alternate methods or procedures; emergency variations from requirements.</HEAD>
<P>(a) <I>Alternate methods or procedures.</I> The licensee, on specific approval by the Director as provided in this paragraph, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. The Director may approve an alternate method or procedure, subject to stated conditions, when it is found that:
</P>
<P>(1) Good cause is shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure and that the alternate method or procedure is substantially equivalent to that specifically prescribed method or procedure; and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law and will not result in an increase in cost to the Government or hinder the effective administration of this part. Where the licensee desires to employ an alternate method or procedure, a written application shall be submitted to the appropriate Director of Industry Operations, for transmittal to the Director. The application shall specifically describe the proposed alternate method or procedure and shall set forth the reasons for it. Alternate methods or procedures may not be employed until the application is approved by the Director. The licensee shall, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization of any alternate method or procedure may be withdrawn whenever, in the judgment of the Director, the effective administration of this part is hindered by the continuation of the authorization.
</P>
<P>(b) <I>Emergency variations from requirements.</I> The Director may approve a method of operation other than as specified in this part, where it is found that an emergency exists and the proposed variation from the specified requirements are necessary and the proposed variations (1) will not hinder the effective administration of this part, and (2) will not be contrary to any provisions of law. Variations from requirements granted under this paragraph are conditioned on compliance with the procedures, conditions, and limitations set forth in the approval of the application. Failure to comply in good faith with the procedures, conditions, and limitations shall automatically terminate the authority for the variations, and the licensee shall fully comply with the prescribed requirements of regulations from which the variations were authorized. Authority for any variation may be withdrawn whenever, in the judgment of the Director, the effective administration of this part is hindered by the continuation of the variation. Where the licensee desires to employ an emergency variation, a written application shall be submitted to the appropriate Director of Industry Operations for transmittal to the Director. The application shall describe the proposed variation and set forth the reasons for it. Variations may not be employed until the application is approved.
</P>
<P>(c) <I>Retention of approved variations.</I> The licensee shall retain, as part of the licensee's records, available for examination by ATF officers, any application approved by the Director under this section.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10492, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.23" NODE="27:3.0.1.2.3.3.1.3" TYPE="SECTION">
<HEAD>§ 478.23   Right of entry and examination.</HEAD>
<P>(a) Except as provided in paragraph (b), any ATF officer, when there is reasonable cause to believe a violation of the Act has occurred and that evidence of the violation may be found on the premises of any licensed manufacturer, licensed importer, licensed dealer, or licensed collector, may, upon demonstrating such cause before a Federal magistrate and obtaining from the magistrate a warrant authorizing entry, enter during business hours (or, in the case of a licensed collector, the hours of operation) the premises, including places of storage, of any such licensee for the purpose of inspecting or examining:
</P>
<P>(1) Any records or documents required to be kept by such licensee under this part and
</P>
<P>(2) Any inventory of firearms or ammunition kept or stored by any licensed manufacturer, licensed importer, or licensed dealer at such premises or any firearms curios or relics or ammunition kept or stored by any licensed collector at such premises.
</P>
<P>(b) Any ATF officer, without having reasonable cause to believe a violation of the Act has occurred or that evidence of the violation may be found and without demonstrating such cause before a Federal magistrate or obtaining from the magistrate a warrant authorizing entry, may enter during business hours the premises, including places of storage, of any licensed manufacturer, licensed importer, or licensed dealer for the purpose of inspecting or examining the records, documents, ammunition and firearms referred to in paragraph (a) of this section:
</P>
<P>(1) In the course of a reasonable inquiry during the course of a criminal investigation of a person or persons other than the licensee,
</P>
<P>(2) For insuring compliance with the recordkeeping requirements of this part:
</P>
<P>(i) Not more than once during any 12-month period, or
</P>
<P>(ii) At any time with respect to records relating to a firearm involved in a criminal investigation that is traced to the licensee, or
</P>
<P>(3) When such inspection or examination may be required for determining the disposition of one or more particular firearms in the course of a bona fide criminal investigation.
</P>
<P>(c) Any ATF officer, without having reasonable cause to believe a violation of the Act has occurred or that evidence of the violation may be found and without demonstrating such cause before a Federal magistrate or obtaining from the magistrate a warrant authorizing entry, may enter during hours of operation the premises, including places of storage, of any licensed collector for the purpose of inspecting or examining the records, documents, firearms, and ammunition referred to in paragraph (a) of this section (1) for ensuring compliance with the recordkeeping requirements of this part not more than once during any 12-month period or (2) when such inspection or examination may be required for determining the disposition of one or more particular firearms in the course of a bona fide criminal investigation. At the election of the licensed collector, the annual inspection permitted by this paragraph shall be performed at the ATF office responsible for conducting such inspection in closest proximity to the collectors premises.
</P>
<P>(d) The inspections and examinations provided by this section do not authorize an ATF officer to seize any records or documents other than those records or documents constituting material evidence of a violation of law. If an ATF officer seizes such records or documents, copies shall be provided the licensee within a reasonable time.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10492, Mar. 31, 1988, as amended by T.D. ATF-363, 60 FR 17450, Apr. 6, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 478.24" NODE="27:3.0.1.2.3.3.1.4" TYPE="SECTION">
<HEAD>§ 478.24   Compilation of State laws and published ordinances.</HEAD>
<P>(a) The Director shall annually revise and furnish Federal firearms licensees with a compilation of State laws and published ordinances which are relevant to the enforcement of this part. The Director annually revises the compilation and publishes it as “State Laws and Published Ordinances—Firearms” which is furnished free of charge to licensees under this part. Where the compilation has previously been furnished to licensees, the Director need only furnish amendments of the relevant laws and ordinances to such licensees.
</P>
<P>(b) “State Laws and Published Ordinances—Firearms” is incorporated by reference in this part. It is ATF Publication 5300.5, revised yearly. The current edition is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. It is also available for inspection at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: <I>http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.</I> This incorporation by reference was approved by the Director of the Federal Register.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988, as amended by 69 FR 18803, Apr. 9, 2004]


</CITA>
</DIV8>


<DIV8 N="§ 478.25" NODE="27:3.0.1.2.3.3.1.5" TYPE="SECTION">
<HEAD>§ 478.25   Disclosure of information.</HEAD>
<P>The Director of Industry Operations may make available to any Federal, State or local law enforcement agency any information which is obtained by reason of the provisions of the Act with respect to the identification of persons prohibited from purchasing or receiving firearms or ammunition who have purchased or received firearms or ammunition, together with a description of such firearms or ammunition. Upon the request of any Federal, State or local law enforcement agency, the Director of Industry Operations may provide such agency any information contained in the records required to be maintained by the Act or this part.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.25a" NODE="27:3.0.1.2.3.3.1.6" TYPE="SECTION">
<HEAD>§ 478.25a   Responses to requests for information.</HEAD>
<P>Each licensee shall respond immediately to, and in no event later than 24 hours after the receipt of, a request by an ATF officer at the National Tracing Center for information contained in the records required to be kept by this part for determining the disposition of one or more firearms in the course of a bona fide criminal investigation. The requested information shall be provided orally to the ATF officer within the 24-hour period. Verification of the identity and employment of National Tracing Center personnel requesting information may be established at the time the requested information is provided by telephoning the toll-free number 1-800-788-7132 or using the toll-free facsimile (FAX) number 1-800-788-7133.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0032)
</APPRO>
<CITA TYPE="N">[T.D. ATF-363, 60 FR 17451, Apr. 6, 1996, as amended by T.D. ATF-396, 63 FR 12646, Mar. 16, 1998; ATF-11F, 73 FR 57240, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.26" NODE="27:3.0.1.2.3.3.1.7" TYPE="SECTION">
<HEAD>§ 478.26   Curio and relic determination.</HEAD>
<P>Any person who desires to obtain a determination whether a particular firearm is a curio or relic shall submit a written request, in duplicate, for a ruling thereon to the Director. Each such request shall be executed under the penalties of perjury and shall contain a complete and accurate description of the firearm, and such photographs, diagrams, or drawings as may be necessary to enable the Director to make a determination. The Director may require the submission of the firearm for examination and evaluation. If the submission of the firearm is impractical, the person requesting the determination shall so advise the Director and designate the place where the firearm will be available for examination and evaluation.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.27" NODE="27:3.0.1.2.3.3.1.8" TYPE="SECTION">
<HEAD>§ 478.27   Destructive device determination.</HEAD>
<P>The Director shall determine in accordance with 18 U.S.C. 921(a)(4) whether a device is excluded from the definition of a destructive device. A person who desires to obtain a determination under that provision of law for any device which he believes is not likely to be used as a weapon shall submit a written request, in triplicate, for a ruling thereon to the Director. Each such request shall be executed under the penalties of perjury and contain a complete and accurate description of the device, the name and address of the manufacturer or importer thereof, the purpose of and use for which it is intended, and such photographs, diagrams, or drawings as may be necessary to enable the Director to make his determination. The Director may require the submission to him, of a sample of such device for examination and evaluation. If the submission of such device is impracticable, the person requesting the ruling shall so advise the Director and designate the place where the device will be available for examination and evaluation.


</P>
</DIV8>


<DIV8 N="§ 478.28" NODE="27:3.0.1.2.3.3.1.9" TYPE="SECTION">
<HEAD>§ 478.28   Transportation of destructive devices and certain firearms.</HEAD>
<P>(a) The Director may authorize a person to transport in interstate or foreign commerce any destructive device, machine gun, short-barreled shotgun, or short-barreled rifle, if he finds that such transportation is reasonably necessary and is consistent with public safety and applicable State and local law. A person who desires to transport in interstate or foreign commerce any such device or weapon shall submit a written request so to do, in duplicate, to the Director. The request shall contain:
</P>
<P>(1) A complete description and identification of the device or weapon to be transported;
</P>
<P>(2) A statement whether such transportation involves a transfer of title;
</P>
<P>(3) The need for such transportation;
</P>
<P>(4) The approximate date such transportation is to take place;
</P>
<P>(5) The present location of such device or weapon and the place to which it is to be transported;
</P>
<P>(6) The mode of transportation to be used (including, if by common or contract carrier, the name and address of such carrier); and
</P>
<P>(7) Evidence that the transportation or possession of such device or weapon is not inconsistent with the laws at the place of destination.
</P>
<P>(b) No person shall transport any destructive device, machine gun, short-barreled shotgun, or short-barreled rifle in interstate or foreign commerce under the provisions of this section until he has received specific authorization so to do from the Director. Authorization granted under this section does not carry or import relief from any other statutory or regulatory provision relating to firearms.
</P>
<P>(c) This section shall not be construed as requiring licensees to obtain authorization to transport destructive devices, machine guns, short-barreled shotguns, and short-barreled rifles in interstate or foreign commerce: <I>Provided,</I> That in the case of a licensed importer, licensed manufacturer, or licensed dealer, such a licensee is qualified under the National Firearms Act (see also Part 479 of this chapter) and this part to engage in the business with respect to the device or weapon to be transported, and that in the case of a licensed collector, the device or weapon to be transported is a curio or relic.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16385, Apr. 15, 1975, and amended by T.D. ATF-138, 48 FR 35399, Aug. 4, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 478.29" NODE="27:3.0.1.2.3.3.1.10" TYPE="SECTION">
<HEAD>§ 478.29   Out-of-State acquisition of firearms by nonlicensees.</HEAD>
<P>No person, other than a licensed importer, licensed manufacturer, licensed dealer, or licensed collector, shall transport into or receive in the State where the person resides (or if a corporation or other business entity, where it maintains a place of business) any firearm purchased or otherwise obtained by such person outside that State: <I>Provided,</I> That the provisions of this section:
</P>
<P>(a) Shall not preclude any person who lawfully acquires a firearm by bequest or intestate succession in a State other than his State of residence from transporting the firearm into or receiving it in that State, if it is lawful for such person to purchase or possess such firearm in that State,
</P>
<P>(b) Shall not apply to the transportation or receipt of a rifle or shotgun obtained from a licensed manufacturer, licensed importer, licensed dealer, or licensed collector in a State other than the transferee's State of residence in an over-the-counter transaction at the licensee's premises obtained in conformity with the provisions of § 478.96(c) and
</P>
<P>(c) Shall not apply to the transportation or receipt of a firearm obtained in conformity with the provisions of §§ 478.30 and 478.97.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.29a" NODE="27:3.0.1.2.3.3.1.11" TYPE="SECTION">
<HEAD>§ 478.29a   Acquisition of firearms by nonresidents.</HEAD>
<P>No person, other than a licensed importer, licensed manufacturer, licensed dealer, or licensed collector, who does not reside in any State shall receive any firearms unless such receipt is for lawful sporting purposes.
</P>
<CITA TYPE="N">[T.D. ATF-363, 60 FR 17451, Apr. 6, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 478.30" NODE="27:3.0.1.2.3.3.1.12" TYPE="SECTION">
<HEAD>§ 478.30   Out-of-State disposition of firearms by nonlicensees.</HEAD>
<P>No nonlicensee shall transfer, sell, trade, give, transport, or deliver any firearm to any other nonlicensee, who the transferor knows or has reasonable cause to believe does not reside in (or if the person is a corporation or other business entity, does not maintain a place of business in) the State in which the transferor resides: <I>Provided,</I> That the provisions of this section:
</P>
<P>(a) shall not apply to the transfer, transportation, or delivery of a firearm made to carry out a bequest of a firearm to, or any acquisition by intestate succession of a firearm by, a person who is permitted to acquire or possess a firearm under the laws of the State of his residence; and
</P>
<P>(b) shall not apply to the loan or rental of a firearm to any person for temporary use for lawful sporting purposes.
</P>
<CITA TYPE="N">[T.D. ATF-313, 56 FR 32508, July 17, 1991; 57 FR 1205, Jan. 10, 1992]


</CITA>
</DIV8>


<DIV8 N="§ 478.31" NODE="27:3.0.1.2.3.3.1.13" TYPE="SECTION">
<HEAD>§ 478.31   Delivery by common or contract carrier.</HEAD>
<P>(a) No person shall knowingly deliver or cause to be delivered to any common or contract carrier for transportation or shipment in interstate or foreign commerce to any person other than a licensed importer, licensed manufacturer, licensed dealer, or licensed collector, any package or other container in which there is any firearm or ammunition without written notice to the carrier that such firearm or ammunition is being transported or shipped: <I>Provided,</I> That any passenger who owns or legally possesses a firearm or ammunition being transported aboard any common or contract carrier for movement with the passenger in interstate or foreign commerce may deliver said firearm or ammunition into the custody of the pilot, captain, conductor or operator of such common or contract carrier for the duration of that trip without violating any provision of this part.
</P>
<P>(b) No common or contract carrier shall require or cause any label, tag, or other written notice to be placed on the outside of any package, luggage, or other container indicating that such package, luggage, or other container contains a firearm.
</P>
<P>(c) No common or contract carrier shall transport or deliver in interstate or foreign commerce any firearm or ammunition with knowledge or reasonable cause to believe that the shipment, transportation, or receipt thereof would be in violation of any provision of this part: <I>Provided, however,</I> That the provisions of this paragraph shall not apply in respect to the transportation of firearms or ammunition in in-bond shipment under Customs laws and regulations.
</P>
<P>(d) No common or contract carrier shall knowingly deliver in interstate or foreign commerce any firearm without obtaining written acknowledgement of receipt from the recipient of the package or other container in which there is a firearm: <I>Provided,</I> That this paragraph shall not apply with respect to the return of a firearm to a passenger who places firearms in the carrier's custody for the duration of the trip.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16385, Apr. 15, 1975, and amended by T.D. ATF-354, 59 FR 7112, Feb. 14, 1994; T.D. ATF-361, 60 FR 10786, Feb. 27, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 478.32" NODE="27:3.0.1.2.3.3.1.14" TYPE="SECTION">
<HEAD>§ 478.32   Prohibited shipment, transportation, possession, purchase, or receipt of firearms and ammunition by certain persons.</HEAD>
<P>(a) No person may ship or transport any firearm or ammunition in interstate or foreign commerce, or receive any firearm or ammunition which has been shipped or transported in interstate or foreign commerce, or possess any firearm or ammunition in or affecting commerce, who:
</P>
<P>(1) Has been convicted in any court of a crime punishable by imprisonment for a term exceeding 1 year,
</P>
<P>(2) Is a fugitive from justice,
</P>
<P>(3) Is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act, 21 U.S.C. 802),
</P>
<P>(4) Has been adjudicated as a mental defective or has been committed to a mental institution,
</P>
<P>(5) Being an alien—
</P>
<P>(i) Is illegally or unlawfully in the United States; or 
</P>
<P>(ii) Except as provided in paragraph (f) of this section, has been admitted to the United States under a nonimmigrant visa: <I>Provided,</I> That the provisions of this paragraph (a)(5)(ii) do not apply to any alien who has been lawfully admitted to the United States under a nonimmigrant visa, if that alien is—
</P>
<P>(A) Admitted to the United States for lawful hunting or sporting purposes or is in possession of a hunting license or permit lawfully issued in the United States; 
</P>
<P>(B) An official representative of a foreign government who is either accredited to the United States Government or the Government's mission to an international organization having its headquarters in the United States or is en route to or from another country to which that alien is accredited. This exception only applies if the firearm or ammunition is shipped, transported, possessed, or received in the representative's official capacity; 
</P>
<P>(C) An official of a foreign government or a distinguished foreign visitor who has been so designated by the Department of State. This exception only applies if the firearm or ammunition is shipped, transported, possessed, or received in the official's or visitor's official capacity, except if the visitor is a private individual who does not have an official capacity; or 
</P>
<P>(D) A foreign law enforcement officer of a friendly foreign government entering the United States on official law enforcement business, 
</P>
<P>(6) Has been discharged from the Armed Forces under dishonorable conditions,
</P>
<P>(7) Having been a citizen of the United States, has renounced citizenship,
</P>
<P>(8) Is subject to a court order that—
</P>
<P>(i) Was issued after a hearing of which such person received actual notice, and at which such person had an opportunity to participate;
</P>
<P>(ii) Restrains such person from harassing, stalking, or threatening an intimate partner of such person or child of such intimate partner or person, or engaging in other conduct that would place an intimate partner in reasonable fear of bodily injury to the partner or child; and
</P>
<P>(iii)(A) Includes a finding that such person represents a credible threat to the physical safety of such intimate partner or child; or
</P>
<P>(B) By its terms explicitly prohibits the use, attempted use, or threatened use of physical force against such intimate partner or child that would reasonably be expected to cause bodily injury, or
</P>
<P>(9) Has been convicted of a misdemeanor crime of domestic violence.
</P>
<P>(b) No person who is under indictment for a crime punishable by imprisonment for a term exceeding one year may ship or transport any firearm or ammunition in interstate or foreign commerce or receive any firearm or ammunition which has been shipped or transported in interstate or foreign commerce.
</P>
<P>(c) Any individual, who to that individual's knowledge and while being employed by any person described in paragraph (a) of this section, may not in the course of such employment receive, possess, or transport any firearm or ammunition in commerce or affecting commerce or receive any firearm or ammunition which has been shipped or transported in interstate or foreign commerce.
</P>
<P>(d) No person may sell or otherwise dispose of any firearm or ammunition to any person knowing or having reasonable cause to believe that such person, including as a juvenile:
</P>
<P>(1) Is under indictment for, or has been convicted in any court of, a crime punishable by imprisonment for a term exceeding 1 year;
</P>
<P>(2) Is a fugitive from justice;
</P>
<P>(3) Is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act, 21 U.S.C. 802);
</P>
<P>(4) Has been adjudicated as a mental defective or has been committed to a mental institution at 16 years of age or older;
</P>
<P>(5) Being an alien—
</P>
<P>(i) Is illegally or unlawfully in the United States; or 
</P>
<P>(ii) Except as provided in paragraph (f) of this section, has been admitted to the United States under a nonimmigrant visa: <I>Provided,</I> That the provisions of this paragraph (d)(5)(ii) do not apply to any alien who has been lawfully admitted to the United States under a nonimmigrant visa, if that alien is—
</P>
<P>(A) Admitted to the United States for lawful hunting or sporting purposes or is in possession of a hunting license or permit lawfully issued in the United States; 
</P>
<P>(B) An official representative of a foreign government who is either accredited to the United States Government or the Government's mission to an international organization having its headquarters in the United States or en route to or from another country to which that alien is accredited. This exception only applies if the firearm or ammunition is shipped, transported, possessed, or received in the representative's official capacity; 
</P>
<P>(C) An official of a foreign government or a distinguished foreign visitor who has been so designated by the Department of State. This exception only applies if the firearm or ammunition is shipped, transported, possessed, or received in the official's or visitor's official capacity, except if the visitor is a private individual who does not have an official capacity; or 
</P>
<P>(D) A foreign law enforcement officer of a friendly foreign government entering the United States on official law enforcement business; 
</P>
<P>(6) Has been discharged from the Armed Forces under dishonorable conditions;
</P>
<P>(7) Having been a citizen of the United States, has renounced citizenship;
</P>
<P>(8) Is subject to a court order that restrains such person from harassing, stalking, or threatening an intimate partner of such person or child of such intimate partner or person, or engaging in other conduct that would place an intimate partner in reasonable fear of bodily injury to the partner or child: <I>Provided,</I> That the provisions of this paragraph shall only apply to a court order that—
</P>
<P>(i) Was issued after a hearing of which such person received actual notice, and at which such person had the opportunity to participate; and
</P>
<P>(ii)(A) Includes a finding that such person represents a credible threat to the physical safety of such intimate partner or child; or
</P>
<P>(B) By its terms explicitly prohibits the use, attempted use, or threatened use of physical force against such intimate partner or child that would reasonably be expected to cause bodily injury;
</P>
<P>(9) Has been convicted of a misdemeanor crime of domestic violence;
</P>
<P>(10) Intends to sell or otherwise dispose of the firearm or ammunition in furtherance of a felony, a Federal crime of terrorism, or a drug trafficking offense; or
</P>
<P>(11) Intends to sell or otherwise dispose of the firearm or ammunition to a person described in any of paragraphs (d)(1) through (10) of this section.
</P>
<P>(e) The actual notice required by paragraphs (a)(8)(i) and (d)(8)(i) of this section is notice expressly and actually given, and brought home to the party directly, including service of process personally served on the party and service by mail. Actual notice also includes proof of facts and circumstances that raise the inference that the party received notice including, but not limited to, proof that notice was left at the party's dwelling house or usual place of abode with some person of suitable age and discretion residing therein; or proof that the party signed a return receipt for a hearing notice which had been mailed to the party. It does not include notice published in a newspaper.
</P>
<P>(f) Pursuant to 18 U.S.C. 922(y)(3), any individual who has been admitted to the United States under a nonimmigrant visa may receive a waiver from the prohibition contained in paragraph (a)(5)(ii) of this section if the Attorney General approves a petition for the waiver.
</P>
<P>(g) No person may knowingly purchase or conspire to purchase any firearm in or otherwise affecting interstate or foreign commerce for, or on behalf of, or at the request or demand of any other person, knowing or having reasonable cause to believe that such other person:
</P>
<P>(1) Meets the criteria of 1 or more subsections of 18 U.S.C. 922(d);
</P>
<P>(2) Intends to use, carry, possess, or sell or otherwise dispose of the firearm in furtherance of a felony, a Federal crime of terrorism, or a drug trafficking crime; or
</P>
<P>(3) Intends to sell or otherwise dispose of the firearm to a person described in paragraph (g)(1) or (2) of this section.
</P>
<P>(h) No person may:
</P>
<P>(1) Ship, transport, transfer, cause to be transported, or otherwise dispose of, any firearm to another person in or otherwise affecting interstate or foreign commerce, knowing or having reasonable cause to believe that it would constitute a felony for the recipient to use, carry, or possess a firearm;
</P>
<P>(2) Receive from another person any firearm in or otherwise affecting interstate or foreign commerce if the recipient knows or has reasonable cause to believe that receiving the firearm would constitute a felony; or
</P>
<P>(3) Attempt or conspire to commit the conduct described in paragraph (h)(1) or (2) of this section.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10493, Mar. 31, 1988, as amended by T.D. ATF-363, 60 FR 17451, Apr. 6, 1995; T.D. ATF-391, 62 FR 34639, June 27, 1997; T.D. ATF-401, 63 FR 35522, June 30, 1998; T.D. ATF-471, 67 FR 5425, Feb. 5, 2002; ATF-24F, 77 FR 33629, June 7, 2012; ATF 2022R-09, 89 FR 28631, Apr. 19, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 478.33" NODE="27:3.0.1.2.3.3.1.15" TYPE="SECTION">
<HEAD>§ 478.33   Stolen firearms and ammunition.</HEAD>
<P>No person shall transport or ship in interstate or foreign commerce any stolen firearm or stolen ammunition knowing or having reasonable cause to believe that the firearm or ammunition was stolen, and no person shall receive, possess, conceal, store, barter, sell, or dispose of any stolen firearm or stolen ammunition, or pledge or accept as security for a loan any stolen firearm or stolen ammunition, which is moving as, which is a part of, which constitutes, or which has been shipped or transported in, interstate or foreign commerce, either before or after it was stolen, knowing or having reasonable cause to believe that the firearm or ammunition was stolen.
</P>
<CITA TYPE="N">[T.D. ATF-363, 60 FR 17451, Apr. 6, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 478.33a" NODE="27:3.0.1.2.3.3.1.16" TYPE="SECTION">
<HEAD>§ 478.33a   Theft of firearms.</HEAD>
<P>No person shall steal or unlawfully take or carry away from the person or the premises of a person who is licensed to engage in the business of importing, manufacturing, or dealing in firearms, any firearm in the licensee's business inventory that has been shipped or transported in interstate or foreign commerce.
</P>
<CITA TYPE="N">[T.D. ATF-354, 59 FR 7112, Feb. 14, 1994]


</CITA>
</DIV8>


<DIV8 N="§ 478.34" NODE="27:3.0.1.2.3.3.1.17" TYPE="SECTION">
<HEAD>§ 478.34   Removed, obliterated, or altered serial number.</HEAD>
<P>No person shall knowingly transport, ship, or receive in interstate or foreign commerce any firearm which has had the importer's or manufacturer's serial number removed, obliterated, or altered, or possess or receive any firearm which has had the importer's or manufacturer's serial number removed, obliterated, or altered and has, at any time, been shipped or transported in interstate or foreign commerce.
</P>
<CITA TYPE="N">[T.D. ATF-313, 56 FR 32508, July 17, 1991]


</CITA>
</DIV8>


<DIV8 N="§ 478.35" NODE="27:3.0.1.2.3.3.1.18" TYPE="SECTION">
<HEAD>§ 478.35   Skeet, trap, target, and similar shooting activities.</HEAD>
<P>Licensing and recordkeeping requirements, including permissible alternate records, for skeet, trap, target, and similar organized activities shall be determined by the Director of Industry Operations on a case by case basis.


</P>
</DIV8>


<DIV8 N="§ 478.36" NODE="27:3.0.1.2.3.3.1.19" TYPE="SECTION">
<HEAD>§ 478.36   Transfer or possession of machine guns.</HEAD>
<P>No person shall transfer or possess a machine gun except:
</P>
<P>(a) A transfer to or by, or possession by or under the authority of, the United States, or any department or agency thereof, or a State, or a department, agency, or political subdivision thereof. (See Part 479 of this chapter); or
</P>
<P>(b) Any lawful transfer or lawful possession of a machine gun that was lawfully possessed before May 19, 1986 (See Part 479 of this chapter).
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.37" NODE="27:3.0.1.2.3.3.1.20" TYPE="SECTION">
<HEAD>§ 478.37   Manufacture, importation and sale of armor piercing ammunition.</HEAD>
<P>No person shall manufacture or import, and no manufacturer or importer shall sell or deliver, armor piercing ammunition, except:
</P>
<P>(a) The manufacture or importation, or the sale or delivery by any manufacturer or importer, of armor piercing ammunition for the use of the United States or any department or agency thereof or any State or any department, agency or political subdivision thereof;
</P>
<P>(b) The manufacture, or the sale or delivery by a manufacturer or importer, of armor piercing ammunition for the purpose of exportation; or
</P>
<P>(c) The sale or delivery by a manufacturer or importer of armor piercing ammunition for the purposes of testing or experimentation as authorized by the Director under the provisions of § 478.149.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.38" NODE="27:3.0.1.2.3.3.1.21" TYPE="SECTION">
<HEAD>§ 478.38   Transportation of firearms.</HEAD>
<P>Notwithstanding any other provision of any law or any rule or regulation of a State or any political subdivision thereof, any person who is not otherwise prohibited by this chapter from transporting, shipping, or receiving a firearm shall be entitled to transport a firearm for any lawful purpose from any place where such person may lawfully possess and carry such firearm to any other place where such person may lawfully possess and carry such firearm if, during such transportation the firearm is unloaded, and neither the firearm nor any ammunition being transported is readily accessible or is directly accessible from the passenger compartment of such transporting vehicle: <I>Provided,</I> That in the case of a vehicle without a compartment separate from the driver's compartment the firearm or ammunition shall be contained in a locked container other than the glove compartment or console.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.39" NODE="27:3.0.1.2.3.3.1.22" TYPE="SECTION">
<HEAD>§ 478.39   Assembly of semiautomatic rifles or shotguns.</HEAD>
<P>(a) No person shall assemble a semiautomatic rifle or any shotgun using more than 10 of the imported parts listed in paragraph (c) of this section if the assembled firearm is prohibited from importation under section 925(d)(3) as not being particularly suitable for or readily adaptable to sporting purposes.
</P>
<P>(b) The provisions of this section shall not apply to:
</P>
<P>(1) The assembly of such rifle or shotgun for sale or distribution by a licensed manufacturer to the United States or any department or agency thereof or to any State or any department, agency, or political subdivision thereof; or
</P>
<P>(2) The assembly of such rifle or shotgun for the purposes of testing or experimentation authorized by the Director under the provisions of § 478.151; or
</P>
<P>(3) The repair of any rifle or shotgun which had been imported into or assembled in the United States prior to November 30, 1990, or the replacement of any part of such firearm.
</P>
<P>(c) For purposes of this section, the term <I>imported parts</I> are:
</P>
<FP-1>(1) Frames, receivers, receiver castings, forgings or stampings
</FP-1>
<FP-1>(2) Barrels
</FP-1>
<FP-1>(3) Barrel extensions
</FP-1>
<FP-1>(4) Mounting blocks (trunions)
</FP-1>
<FP-1>(5) Muzzle attachments
</FP-1>
<FP-1>(6) Bolts
</FP-1>
<FP-1>(7) Bolt carriers
</FP-1>
<FP-1>(8) Operating rods
</FP-1>
<FP-1>(9) Gas pistons
</FP-1>
<FP-1>(10) Trigger housings
</FP-1>
<FP-1>(11) Triggers
</FP-1>
<FP-1>(12) Hammers
</FP-1>
<FP-1>(13) Sears
</FP-1>
<FP-1>(14) Disconnectors
</FP-1>
<FP-1>(15) Buttstocks
</FP-1>
<FP-1>(16) Pistol grips
</FP-1>
<FP-1>(17) Forearms, handguards
</FP-1>
<FP-1>(18) Magazine bodies
</FP-1>
<FP-1>(19) Followers
</FP-1>
<FP-1>(20) Floorplates
</FP-1>
<CITA TYPE="N">[T.D. ATF-346, 58 FR 40589, July 29, 1993]


</CITA>
</DIV8>


<DIV8 N="§ 478.39a" NODE="27:3.0.1.2.3.3.1.23" TYPE="SECTION">
<HEAD>§ 478.39a   Reporting theft or loss of firearms.</HEAD>
<P>(a)(1) Each licensee shall report the theft or loss of a firearm from the licensee's inventory (including any firearm which has been transferred from the licensee's inventory to a personal collection and held as a personal firearm for at least 1 year), or from the collection of a licensed collector, within 48 hours after the theft or loss is discovered.
</P>
<P>(2) When a firearm is stolen or lost in transit on a common or contract carrier (which for purposes of this paragraph includes the U.S. Postal Service), it is considered stolen or lost from the transferor/sender licensee's inventory for reporting purposes. Therefore, the transferor/sender of the stolen or lost firearm shall report the theft or loss of the firearm within 48 hours after the transferor/sender discovers the theft or loss.
</P>
<P>(b) Each licensee shall report the theft or loss by telephoning ATF at 1-888-930-9275 (nationwide toll-free number), and by preparing and submitting to ATF a Federal Firearms Licensee Theft/Loss Report, ATF Form 3310.11, in accordance with the instructions on the form. The original of the report shall be retained by the licensee as part of the licensee's required records.
</P>
<P>(c) When a licensee submits to ATF a Federal Firearms Licensee Theft/Loss Report, ATF Form 3310.11, for the theft or loss of a firearm registered under the National Firearms Act, this report also satisfies the notification requirement under § 479.141 of this chapter.
</P>
<P>(d) Theft or loss of any firearm shall also be reported to the appropriate local authorities. If the location of the theft or loss is known, the local law enforcement agency at that location would be the appropriate local authority. Otherwise, the report should be made to the local law enforcement authorities at the licensee's location or business premises.
</P>
<P>(e) Licensees shall reflect the theft or loss of a firearm as a disposition entry in the Record of Acquisition and Disposition required by subpart H of this part not later than 7 days following discovery of the theft or loss. The disposition entry shall record whether the incident is a theft or loss, the ATF-Issued Incident Number, and the Incident Number provided by the local law enforcement agency.
</P>
<P>(f) Licensees who report the theft or loss of a firearm and later discover its whereabouts shall advise ATF at 1-888-930-9275 (nationwide toll-free number) that the firearm has been located, and shall re-enter the firearm in the Record of Acquisition and Disposition as an acquisition or disposition entry as appropriate.


</P>
<CITA TYPE="N">[ATF 40F, 81 FR 1318, Jan. 12, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 478.40" NODE="27:3.0.1.2.3.3.1.24" TYPE="SECTION">
<HEAD>§ 478.40   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:3.0.1.2.3.4" TYPE="SUBPART">
<HEAD>Subpart D—Licenses</HEAD>


<DIV8 N="§ 478.41" NODE="27:3.0.1.2.3.4.1.1" TYPE="SECTION">
<HEAD>§ 478.41   General.</HEAD>
<P>(a) Each person intending to engage in business as an importer or manufacturer of firearms or ammunition, or a dealer in firearms shall, before commencing such business, obtain the license required by this subpart for the business to be operated. Each person who desires to obtain a license as a collector of curios or relics may obtain such a license under the provisions of this subpart.
</P>
<P>(b) Each person intending to engage in business as a firearms or ammunition importer or manufacturer, or dealer in firearms shall file an application, with the required fee (see § 478.42), with ATF in accordance with the instructions on the form (see § 478.44), and, pursuant to § 478.47, receive the license required for such business from the Chief, Federal Firearms Licensing Center. Except as provided in § 478.50, a license must be obtained for each business and each place at which the applicant is to do business. A license as an importer or manufacturer of firearms or ammunition, or a dealer in firearms shall, subject to the provisions of the Act and other applicable provisions of law, entitle the licensee to transport, ship, and receive firearms and ammunition covered by such license in interstate or foreign commerce and to engage in the business specified by the license, at the location described on the license, and for the period stated on the license. However, it shall not be necessary for a licensed importer or a licensed manufacturer to also obtain a dealer's license in order to engage in business on the licensed premises as a dealer in the same type of firearms authorized by the license to be imported or manufactured. Payment of the license fee as an importer or manufacturer of destructive devices, ammunition for destructive devices or armor piercing ammunition or as a dealer in destructive devices includes the privilege of importing or manufacturing firearms other than destructive devices and ammunition for other than destructive devices or ammunition other than armor piercing ammunition, or dealing in firearms other than destructive devices, as the case may be, by such a licensee at the licensed premises.
</P>
<P>(c) Each person seeking the privileges of a collector licensed under this part shall file an application, with the required fee (see § 478.42), with ATF in accordance with the instructions on the form (see § 478.44), and pursuant to § 478.47, receive from the Chief, Federal Firearms Licensing Center, the license covering the collection of curios and relics. A separate license may be obtained for each collection premises, and such license shall, subject to the provisions of the Act and other applicable provisions of law, entitle the licensee to transport, ship, receive, and acquire curios and relics in interstate or foreign commerce, and to make disposition of curios and relics in interstate or foreign commerce, to any other person licensed under the provisions of this part, for the period stated on the license.
</P>
<P>(d) The collector license provided by this part shall apply only to transactions related to a collector's activity in acquiring, holding or disposing of curios and relics. A collector's license does not authorize the collector to engage in a business required to be licensed under the Act or this part. Therefore, if the acquisitions and dispositions of curios and relics by a collector bring the collector within the definition of a manufacturer, importer, or dealer under this part, he shall qualify as such. (See also § 478.93 of this part.)
</P>
<SECAUTH TYPE="N">(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))
</SECAUTH>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-270, 53 FR 10494, Mar. 31, 1988; T.D. ATF-290, 54 FR 53054, Dec. 27, 1989] 


</CITA>
</DIV8>


<DIV8 N="§ 478.42" NODE="27:3.0.1.2.3.4.1.2" TYPE="SECTION">
<HEAD>§ 478.42   License fees.</HEAD>
<P>Each applicant shall pay a fee for obtaining a firearms license or ammunition license, a separate fee being required for each business or collecting activity at each place of such business or activity, as follows:
</P>
<P>(a) For a manufacturer:
</P>
<P>(1) Of destructive devices, ammunition for destructive devices or armor piercing ammunition—$1,000 per year.
</P>
<P>(2) Of firearms other than destructive devices—$50 per year.
</P>
<P>(3) Of ammunition for firearms other than ammunition for destructive devices or armor piercing ammunition—$10 per year.
</P>
<P>(b) For an importer:
</P>
<P>(1) Of destructive devices, ammunition for destructive devices or armor piercing ammunition—$1,000 per year.
</P>
<P>(2) Of firearms other than destructive devices or ammunition for firearms other than destructive devices or ammunition other than armor piercing ammunition—$50 per year.
</P>
<P>(c) For a dealer:
</P>
<P>(1) In destructive devices—$1,000 per year.
</P>
<P>(2) Who is not a dealer in destructive devices—$200 for 3 years, except that the fee for renewal of a valid license shall be $90 for 3 years.
</P>
<P>(d) For a collector of curios and relics—$10 per year.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988, as amended by T.D. ATF-354, 59 FR 7112, Feb. 14, 1994]


</CITA>
</DIV8>


<DIV8 N="§ 478.43" NODE="27:3.0.1.2.3.4.1.3" TYPE="SECTION">
<HEAD>§ 478.43   License fee not refundable.</HEAD>
<P>No refund of any part of the amount paid as a license fee shall be made where the operations of the licensee are, for any reason, discontinued during the period of an issued license. However, the license fee submitted with an application for a license shall be refunded if that application is denied or withdrawn by the applicant prior to being acted upon.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10494, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.44" NODE="27:3.0.1.2.3.4.1.4" TYPE="SECTION">
<HEAD>§ 478.44   Original license.</HEAD>
<P>(a)(1) Any person who intends to engage in business as a firearms or ammunition importer or manufacturer, or firearms dealer, or who has not previously been licensed under the provisions of this part to so engage in business, or who has not timely submitted an application for renewal of the previous license issued under this part, must file an application for license, ATF Form 7 (Firearms), in duplicate, with ATF in accordance with the instructions on the form. The application must: 
</P>
<P>(i) Be executed under the penalties of perjury and the penalties imposed by 18 U.S.C. 924; 
</P>
<P>(ii) Include a photograph and fingerprints as required in the instructions on the form; 
</P>
<P>(iii) If the applicant (including, in the case of a corporation, partnership, or association, any individual possessing, directly or indirectly, the power to direct or cause the direction of the management and policies of the corporation, partnership, or association) is an alien who has been admitted to the United States under a nonimmigrant visa, applicable documentation demonstrating that the alien falls within an exception specified in 18 U.S.C. 922(y)(2) (e.g., a hunting license or permit lawfully issued in the United States) or has obtained a waiver as specified in 18 U.S.C. 922(y)(3); and
</P>
<P>(iv) Include the appropriate fee in the form of money order or check made payable to the “Bureau of Alcohol, Tobacco, Firearms, and Explosives”.
</P>
<P>(2) ATF Form 7 may be obtained by contacting the ATF Distribution Center (See § 478.21).
</P>
<P>(b) Any person who desires to obtain a license as a collector under the Act and this part, or who has not timely submitted an application for renewal of the previous license issued under this part, shall file an application, ATF Form 7CR (Curios and Relics), with ATF in accordance with the instructions on the form.  If the applicant (including, in the case of a corporation, partnership, or association, any individual possessing, directly or indirectly, the power to direct or cause the direction of the management and policies of the corporation, partnership, or association) is an alien who has been admitted to the United States under a nonimmigrant visa, the application must include applicable documentation demonstrating that the alien falls within an exception specified in 18 U.S.C. 922(y)(2) (e.g., a hunting license or permit lawfully issued in the United States) or has obtained a waiver as specified in 18 U.S.C. 922(y)(3). The application must be executed under the penalties of perjury and the penalties imposed by 18 U.S.C. 924. The application shall include the appropriate fee in the form of a money order or check made payable to the Bureau of Alcohol, Tobacco, Firearms, and Explosives. ATF Form 7CR (Curios and Relics) may be obtained by contacting the ATF Distribution Center (See § 478.21).
</P>
<APPRO TYPE="N">(Paragraphs (a) and (b) approved by the Office of Management and Budget under control number 1140-0060)
</APPRO>
<CITA TYPE="N">[T.D. ATF-363, 60 FR 17453, Apr. 6, 1995, as amended by T.D. ATF-471, 67 FR 5425, Feb. 5, 2002; ATF-11F, 73 FR 57240, Oct. 2, 2008; ATF-24F, 77 FR 33629, June 7, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 478.45" NODE="27:3.0.1.2.3.4.1.5" TYPE="SECTION">
<HEAD>§ 478.45   Renewal of license.</HEAD>
<P>If a licensee intends to continue the business or activity described on a license issued under this part during any portion of the ensuing year, the licensee shall, unless otherwise notified in writing by the Chief, Federal Firearms Licensing Center, execute and file with ATF prior to the expiration of the license an application for a license renewal, ATF Form 8 Part II, in accordance with the instructions on the form, and the required fee. If the applicant is an alien who has been admitted to the United States under a nonimmigrant visa, the application must include applicable documentation demonstrating that the alien falls within an exception specified in 18 U.S.C. 922(y)(2) (e.g., a hunting license or permit lawfully issued in the United States) or has obtained a waiver as specified in 18 U.S.C. 922(y)(3). The Chief, Federal Firearms Licensing Center may, in writing, require the applicant for license renewal to also file completed ATF Form 7 or ATF Form 7CR in the manner required by § 478.44. In the event the licensee does not timely file an ATF Form 8 Part II, the licensee must file an ATF Form 7 or ATF Form 7CR as required by § 478.44, and obtain the required license before continuing business or collecting activity. If an ATF Form 8 Part II is not timely received through the mails, the licensee should so notify the Chief, Federal Firearms Licensing Center.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0060)
</APPRO>
<CITA TYPE="N">[ATF-11F, 73 FR 57241, Oct. 2, 2008, as amended by ATF-24F, 77 FR 33629, June 7, 2012]


</CITA>
</DIV8>


<DIV8 N="§ 478.46" NODE="27:3.0.1.2.3.4.1.6" TYPE="SECTION">
<HEAD>§ 478.46   Insufficient fee.</HEAD>
<P>If an application is filed with an insufficient fee, the application and any fee submitted will be returned to the applicant.
</P>
<SECAUTH TYPE="N">(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-200, 50 FR 10498, Mar. 15, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 478.47" NODE="27:3.0.1.2.3.4.1.7" TYPE="SECTION">
<HEAD>§ 478.47   Issuance of license.</HEAD>
<P>(a) Upon receipt of a properly executed application for a license on ATF Form 7, ATF Form 7CR, or ATF Form 8 Part II, the Chief, Federal Firearms Licensing Center, shall, upon finding through further inquiry or investigation, or otherwise, that the applicant is qualified, issue the appropriate license. Each license shall bear a unique license number and such number may be assigned to the licensee to whom issued for so long as the licensee maintains continuity of renewal in the same location (State).
</P>
<P>(b) The Chief, Federal Firearms Licensing Center, shall approve a properly executed application for license on ATF Form 7, ATF Form 7CR, or ATF Form 8 Part II, if:
</P>
<P>(1) The applicant is 21 years of age or over;
</P>
<P>(2) The applicant (including, in the case of a corporation, partnership, or association, any individual possessing, directly or indirectly, the power to direct or cause the direction of the management and policies of the corporation, partnership, or association) is not prohibited under the provisions of the Act from shipping or transporting in interstate or foreign commerce, or possessing in or affecting commerce, any firearm or ammunition, or from receiving any firearm or ammunition which has been shipped or transported in interstate or foreign commerce;
</P>
<P>(3) The applicant has not willfully violated any of the provisions of the Act or this part;
</P>
<P>(4) The applicant has not willfully failed to disclose any material information required, or has not made any false statement as to any material fact, in connection with his application; and
</P>
<P>(5) The applicant has in a State (i) premises from which he conducts business subject to license under the Act or from which he intends to conduct such business within a reasonable period of time, or (ii) in the case of a collector, premises from which he conducts his collecting subject to license under the Act or from which he intends to conduct such collecting within a reasonable period of time. 
</P>
<P>(c) The Chief, Federal Firearms Licensing Center, shall approve or the Director of Industry Operations shall deny an application for a license within the 60-day period beginning on the date the properly executed application was received: <I>Provided,</I> That when an applicant for license renewal is a person who is, pursuant to the provisions of § 478.78, § 478.143, or § 478.144, conducting business or collecting activity under a previously issued license, action regarding the application will be held in abeyance pending the completion of the proceedings against the applicant's existing license or license application, final determination of the applicant's criminal case, or final action by the Director on an application for relief submitted pursuant to § 478.144, as the case may be.
</P>
<P>(d) When the Director of Industry Operations or the Chief, Federal Firearms Licensing Center fails to act on an application for a license within the 60-day period prescribed by paragraph (c) of this section, the applicant may file an action under section 1361 of title 28, United States Code, to compel ATF to act upon the application.
</P>
<SECAUTH TYPE="N">(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))
</SECAUTH>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-135, 48 FR 24068, May 31, 1983; T.D. ATF-241, 51 FR 39619, Oct. 29, 1986; T.D. ATF-270, 53 FR 10495, Mar. 31, 1988; T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; T.D. ATF-363, 60 FR 17453, Apr. 6, 1995; ATF-11F, 73 FR 57241, Oct. 2, 2008; ATF-2021R-05F; 87 FR 24741, Apr. 26, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 478.48" NODE="27:3.0.1.2.3.4.1.8" TYPE="SECTION">
<HEAD>§ 478.48   Correction of error on license.</HEAD>
<P>(a) Upon receipt of a license issued under the provisions of this part, each licensee shall examine same to ensure that the information contained thereon is accurate. If the license is incorrect, the licensee shall return the license to the Chief, Federal Firearms Licensing Center, with a statement showing the nature of the error. The Chief, Federal Firearms Licensing Center, shall correct the error, if the error was made in his office, and return the license. However, if the error resulted from information contained in the licensee's application for the license, the Chief, Federal Firearms Licensing Center, shall require the licensee to file an amended application setting forth the correct information and a statement explaining the error contained in the application. Upon receipt of the amended application and a satisfactory explanation of the error, the Chief, Federal Firearms Licensing Center, shall make the correction on the license and return same to the licensee.
</P>
<P>(b) When the Chief, Federal Firearms Licensing Center, finds through any means other than notice from the licensee that an incorrect license has been issued, the Chief, Federal Firearms Licensing Center, may require the holder of the incorrect license to (1) return the license for correction, and (2) if the error resulted from information contained in the licensee's application for the license, the Chief, Federal Firearms Licensing Center, shall require the licensee to file an amended application setting forth the correct information, and a statement explaining the error contained in the application. The Chief, Federal Firearms Licensing Center, then shall make the correction on the license and return same to the licensee.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989]


</CITA>
</DIV8>


<DIV8 N="§ 478.49" NODE="27:3.0.1.2.3.4.1.9" TYPE="SECTION">
<HEAD>§ 478.49   Duration of license.</HEAD>
<P>The license entitles the person to whom issued to engage in the business or activity specified on the license, within the limitations of the Act and the regulations contained in this part, for a three year period, unless terminated sooner.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10495, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.50" NODE="27:3.0.1.2.3.4.1.10" TYPE="SECTION">
<HEAD>§ 478.50   Locations covered by license.</HEAD>
<P>The license covers the class of business or the activity specified in the license at the address specified therein. A separate license must be obtained for each location at which a firearms or ammunition business or activity requiring a license under this part is conducted except:
</P>
<P>(a) No license is required to cover a separate warehouse used by the licensee solely for storage of firearms or ammunition if the records required by this part are maintained at the licensed premises served by such warehouse, or if such warehouse is used by the licensee for the storage of records as provided in § 478.129;
</P>
<P>(b) A licensed collector may acquire curios and relics at any location, and dispose of curios or relics to any licensee or to other persons who are residents of the State where the collector's license is held and the disposition is made;
</P>
<P>(c) A licensee may conduct business at a gun show pursuant to the provision of § 478.100; or
</P>
<P>(d) A licensed importer, manufacturer, or dealer may engage in the business of dealing in curio or relic firearms with another licensee at any location pursuant to the provisions of § 478.100.
</P>
<CITA TYPE="N">[T.D. ATF-191, 49 FR 46890, Nov. 29, 1984, as amended by T.D. ATF-401, 63 FR 35523, June 30, 1998; ATF-2021R-05F; 87 FR 24741, Apr. 26, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 478.51" NODE="27:3.0.1.2.3.4.1.11" TYPE="SECTION">
<HEAD>§ 478.51   License not transferable.</HEAD>
<P>Licenses issued under this part are not transferable. In the event of the lease, sale, or other transfer of the operations authorized by the license, the successor must obtain the license required by this part prior to commencing such operations. However, for rules on right of succession, see § 478.56.


</P>
</DIV8>


<DIV8 N="§ 478.52" NODE="27:3.0.1.2.3.4.1.12" TYPE="SECTION">
<HEAD>§ 478.52   Change of address.</HEAD>
<P>(a) Licensees may during the term of their current license remove their business or activity to a new location at which they intend regularly to carry on such business or activity by filing an Application for an Amended Federal Firearms License, ATF Form 5300.38, in duplicate, not less than 30 days prior to such removal with the Chief, Federal Firearms Licensing Center. The ATF Form 5300.38 shall be completed in accordance with the instructions on the form. The application must be executed under the penalties of perjury and penalties imposed by 18 U.S.C. 924. The application shall be accompanied by the licensee's original license. The Chief, Federal Firearms Licensing Center, may, in writing, require the applicant for an amended license to also file completed ATF Form 7 or ATF Form 7CR, or portions thereof, in the manner required by § 478.44.
</P>
<P>(b) Upon receipt of a properly executed application for an amended license, the Chief, Federal Firearms Licensing Center, shall, upon finding through further inquiry or investigation, or otherwise, that the applicant is qualified at the new location, issue the amended license, and return it to the applicant. The license shall be valid for the remainder of the term of the original license. The Chief, Federal Firearms Licensing Center, shall, if the applicant is not qualified, refer the application for amended license to the Director of Industry Operations for denial in accordance with § 478.71.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0040)
</APPRO>
<CITA TYPE="N">[T.D. ATF-363, 60 FR 17453, Apr. 6, 1995, as amended by ATF-11F, 73 FR 57241, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.53" NODE="27:3.0.1.2.3.4.1.13" TYPE="SECTION">
<HEAD>§ 478.53   Change in trade name.</HEAD>
<P>A licensee continuing to conduct business at the location shown on his license is not required to obtain a new license by reason of a mere change in trade name under which he conducts his business: <I>Provided,</I> That such licensee furnishes his license for endorsement of such change to the Chief, Federal Firearms Licensing Center within 30 days from the date the licensee begins his business under the new trade name.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-290, 54 FR 53055, Dec. 27, 1989] 


</CITA>
</DIV8>


<DIV8 N="§ 478.54" NODE="27:3.0.1.2.3.4.1.14" TYPE="SECTION">
<HEAD>§ 478.54   Change of control.</HEAD>
<P>In the case of a corporation or association holding a license under this part, if actual or legal control of the corporation or association changes, directly or indirectly, whether by reason of change in stock ownership or control (in the licensed corporation or in any other corporation), by operations of law, or in any other manner, the licensee shall, within 30 days of such change, give written notification thereof, executed under the penalties of perjury, to the Chief, Federal Firearms Licensing Center. Upon expiration of the license, the corporation or association must file a Form 7 (Firearms) as required by § 478.44.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989]


</CITA>
</DIV8>


<DIV8 N="§ 478.55" NODE="27:3.0.1.2.3.4.1.15" TYPE="SECTION">
<HEAD>§ 478.55   Continuing partnerships.</HEAD>
<P>Where, under the laws of the particular State, the partnership is not terminated on death or insolvency of a partner, but continues until the winding up of the partnership affairs is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, such surviving partner may continue to operate the business under the license of the partnership. If such surviving partner acquires the business on completion of the settlement of the partnership, he shall obtain a license in his own name from the date of acquisition, as provided in § 478.44. The rule set forth in this section shall also apply where there is more than one surviving partner.


</P>
</DIV8>


<DIV8 N="§ 478.56" NODE="27:3.0.1.2.3.4.1.16" TYPE="SECTION">
<HEAD>§ 478.56   Right of succession by certain persons.</HEAD>
<P>(a) Certain persons other than the licensee may secure the right to carry on the same firearms or ammunition business at the same address shown on, and for the remainder of the term of, a current license. Such persons are:
</P>
<P>(1) The surviving spouse or child, or executor, administrator, or other legal representative of a deceased licensee; and
</P>
<P>(2) A receiver or trustee in bankruptcy, or an assignee for benefit of creditors.
</P>
<P>(b) In order to secure the right provided by this section, the person or persons continuing the business shall furnish the license for that business for endorsement of such succession to the Chief, Federal Firearms Licensing Center, within 30 days from the date on which the successor begins to carry on the business.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-290, 54 FR 53055, Dec. 27, 1989; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014] 


</CITA>
</DIV8>


<DIV8 N="§ 478.57" NODE="27:3.0.1.2.3.4.1.17" TYPE="SECTION">
<HEAD>§ 478.57   Discontinuance of business.</HEAD>
<P>(a) Where a firearm or ammunition business is either discontinued or succeeded by a new owner, the owner of the business discontinued or succeeded shall within 30 days thereof furnish to the Chief, Federal Firearms Licensing Center notification of the discontinuance or succession. (See also § 478.127.)
</P>
<P>(b) Upon termination of a license (<I>i.e.,</I> license revocation, denial of license renewal, license expiration, or surrender of license), the former licensee shall within 30 days, or such additional period approved by the Director for good cause, either:
</P>
<P>(1) Liquidate the former licensee inventory by selling or otherwise disposing of the firearms to a licensed importer, licensed manufacturer, or licensed dealer for sale, auction, or pawn redemption in accordance with this part; or
</P>
<P>(2) Transfer the former licensee inventory to a responsible person of the former licensee to whom the receipt, possession, sale, or other disposition is not prohibited by law. Any such transfer, however, does not negate the fact that the firearms were repetitively purchased, and were purchased with the predominant intent to earn a profit by repetitive purchase and resale.
</P>
<P>(c) Transfers of former licensee inventory to a licensee or responsible person in accordance with paragraph (b)(1) or (2) of this section shall be appropriately recorded as dispositions, in accordance with § 478.122(b), § 478.123(b), or § 478.125(e), prior to delivering the records after discontinuing business consistent with § 478.127. Except for liquidation of former licensee inventory to a licensee within 30 days (or approved period) in accordance with paragraph (b)(1) of this section, or occasional sale of a firearm from such inventory thereafter to a licensee, a former licensee (or responsible person of such licensee) who resells any such inventory, including former licensee inventory transferred in accordance with paragraph (b)(2) of this section, is subject to the presumptions in § 478.13 (definition of “engaged in the business as a dealer in firearms other than a gunsmith or pawnbroker”) that apply to a person who repetitively purchased those firearms for the purpose of resale.
</P>
<P>(d) The former licensee shall not continue to engage in the business of importing, manufacturing, or dealing in firearms by importing or manufacturing additional firearms for purposes of sale or distribution, or purchasing additional firearms for resale (<I>i.e.,</I> “restocking”).
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-290, 54 FR 53055, Dec. 27, 1989; T.D. ATF-363, 60 FR 17453, Apr. 6, 1995; T.D. ATF-383, 61 FR 39321, July 29, 1996; ATF 2014R-42, 84 FR 12094, Apr. 1, 2019; ATF 2022R-17, 89 FR 29092, Apr. 19, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 478.58" NODE="27:3.0.1.2.3.4.1.18" TYPE="SECTION">
<HEAD>§ 478.58   State or other law.</HEAD>
<P>A license issued under this part confers no right or privilege to conduct business or activity contrary to State or other law. The holder of such a license is not by reason of the rights and privileges granted by that license immune from punishment for operating a firearm or ammunition business or activity in violation of the provisions of any State or other law. Similarly, compliance with the provisions of any State or other law affords no immunity under Federal law or regulations.


</P>
</DIV8>


<DIV8 N="§ 478.59" NODE="27:3.0.1.2.3.4.1.19" TYPE="SECTION">
<HEAD>§ 478.59   Abandoned application.</HEAD>
<P>Upon receipt of an incomplete or improperly executed application on ATF form 7 (5310.12), or ATF Form 8 (5310.11) Part II, the applicant shall be notified of the deficiency in the application. If the application is not corrected and returned within 30 days following the date of notification, the application shall be considered as having been abandoned and the license fee returned.
</P>
<CITA TYPE="N">[T.D. ATF-135, 48 FR 24068, May 31, 1983]


</CITA>
</DIV8>


<DIV8 N="§ 478.60" NODE="27:3.0.1.2.3.4.1.20" TYPE="SECTION">
<HEAD>§ 478.60   Certain continuances of business.</HEAD>
<P>A licensee who furnishes his license to the Chief, Federal Firearms Licensing Center for correction or endorsement in compliance with the provisions contained in this subpart may continue his operations while awaiting its return.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:3.0.1.2.3.5" TYPE="SUBPART">
<HEAD>Subpart E—License Proceedings</HEAD>


<DIV8 N="§ 478.71" NODE="27:3.0.1.2.3.5.1.1" TYPE="SECTION">
<HEAD>§ 478.71   Denial of an application for license.</HEAD>
<P>Whenever the Director has reason to believe that an applicant is not qualified to receive a license under the provisions of § 478.47, he may issue a notice of denial, on Form 4498, to the applicant. The notice shall set forth the matters of fact and law relied upon in determining that the application should be denied, and shall afford the applicant 15 days from the date of receipt of the notice in which to request a hearing to review the denial. If no request for a hearing is filed within such time, the application shall be disapproved and a copy, so marked, shall be returned to the applicant.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-270, 53 FR 10495, Mar. 31, 1988; ATF-27P, 74 FR 1878, Jan. 14, 2009]


</CITA>
</DIV8>


<DIV8 N="§ 478.72" NODE="27:3.0.1.2.3.5.1.2" TYPE="SECTION">
<HEAD>§ 478.72   Hearing after application denial.</HEAD>
<P>If the applicant for an original or renewal license desires a hearing to review the denial of his application, he shall file a request therefor, in duplicate, with the Director of Industry Operations within 15 days after receipt of the notice of denial. The request should include a statement of the reasons therefor. On receipt of the request, the Director of Industry Operations shall, as expeditiously as possible, make the necessary arrangements for the hearing and advise the applicant of the date, time, location, and the name of the officer before whom the hearing will be held. Such notification shall be made not less than 10 days in advance of the date set for the hearing. During the hearing the applicant will have the opportunity to submit facts and arguments for review and consideration; offers of settlement will not be entertained at the hearing but may be made before or after the hearing.

 On conclusion of the hearing and consideration of all relevant facts and circumstances presented by the applicant or his representative, the Director shall render his decision confirming or reversing the denial of the application. A copy of the application, marked “Disapproved,” will be returned to the applicant. If the decision is that the license applied for should be issued, the applicant shall be so notified, in writing, and the license shall be issued as provided by § 478.47.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968, as amended by ATF-27P, 74 FR 1878, Jan. 14, 2009; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014; ATF 2008R-15P; 81 FR 32235, May 23, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 478.73" NODE="27:3.0.1.2.3.5.1.3" TYPE="SECTION">
<HEAD>§ 478.73   Notice of revocation, suspension, or imposition of civil fine.</HEAD>
<P>(a) <I>Basis for action.</I> Whenever the Director has reason to believe that a licensee has willfully violated any provision of the Act or this part, a notice of revocation of the license, ATF Form 4500, may be issued. In addition, a notice of revocation of the license, on ATF Form 4500, may be issued whenever the Director has reason to believe that a licensee fails to have secure gun storage or safety devices available at any place in which firearms are sold under the license to persons who are not licensees (except in any case in which a secure gun storage or safety device is temporarily unavailable because of theft, casualty loss, consumer sales, backorders from a manufacturer, or any other similar reason beyond the control of the licensee). In addition, pursuant to 18 U.S.C. 922(t)(5) and 18 U.S.C. 924(p), a notice of revocation, suspension, or imposition of a civil fine may be issued on ATF Form 4500 whenever the Director has reason to believe that a licensee has knowingly transferred a firearm to an unlicensed person and knowingly failed to comply with the requirements of 18 U.S.C. 922(t)(1) with respect to the transfer and, at the time that the transferee most recently proposed the transfer, the national instant criminal background check system was operating and information was available to the system demonstrating that transfer to the transferee or their receipt of a firearm would violate 18 U.S.C. 922(d), 922(g), or 922(n) (as applicable), or State, local, or Tribal law; or that a licensee has violated 18 U.S.C. 922(z)(1) by selling, delivering, or transferring any handgun to any person other than a licensee, unless the transferee was provided with a secure gun storage or safety device for that handgun.
</P>
<P>(b) <I>Issuance of notice.</I> The notice shall set forth the matters of fact constituting the violations specified, dates, places, and the sections of law and regulations violated. The Director shall afford the licensee 15 days from the date of receipt of the notice in which to request a hearing prior to suspension or revocation of the license, or imposition of a civil fine. If the licensee does not file a timely request for a hearing, the Director shall issue a final notice of suspension or revocation and/or imposition of a civil fine on ATF Form 5300.13, as provided in § 478.74.
</P>
<CITA TYPE="N">[T.D. ATF-415, 63 FR 58278, Oct. 29, 1998, as amended by ATF-27P, 74 FR 1878, Jan. 14, 2009; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014; ATF 2008R-15P, 81 FR 32235, May 23, 2016; ATF 24P, 87 FR 193, Jan. 4, 2022; ATF 2022R-09, 89 FR 28631, Apr. 19, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 478.74" NODE="27:3.0.1.2.3.5.1.4" TYPE="SECTION">
<HEAD>§ 478.74   Request for hearing after notice of suspension, revocation, or imposition of civil fine.</HEAD>
<P>If a licensee desires a hearing after receipt of a notice of suspension or revocation of a license, or imposition of a civil fine, the licensee shall file a request, in duplicate, with the Director of Industry Operations within 15 days after receipt of the notice of suspension or revocation of a license, or imposition of a civil fine. On receipt of such request, the Director of Industry Operations shall, as expeditiously as possible, make necessary arrangements for the hearing and advise the licensee of the date, time, location and the name of the officer before whom the hearing will be held. Such notification shall be made no less than 10 days in advance of the date set for the hearing. On conclusion of the hearing and consideration of all the relevant presentations made by the licensee or the licensee's representative, the Director shall render a decision and shall prepare a brief summary of the findings and conclusions on which the decision is based. If the decision is that the license should be revoked, or, in actions under 18 U.S.C. 922(t)(5) or 924(p), that the license should be revoked or suspended, or that a civil fine should be imposed, a certified copy of the summary shall be furnished to the licensee with the final notice of revocation, suspension, or imposition of a civil fine on ATF Form 5300.13. If the decision is that the license should not be revoked, or in actions under 18 U.S.C. 922(t)(5) or 924(p), that the license should not be revoked or suspended, and a civil fine should not be imposed, the licensee shall be notified in writing. During the hearing the licensee will have the opportunity to submit facts and arguments for review and consideration; offers of settlement will not be entertained at the hearing but may be made before or after the hearing.
</P>
<CITA TYPE="N">[T.D. ATF-415, 63 FR 58278, Oct. 29, 1998, as amended by ATF-27P, 74 FR 1878, Jan. 14, 2009; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014; ATF 2008R-15P, 81 FR 32235, May 23, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 478.75" NODE="27:3.0.1.2.3.5.1.5" TYPE="SECTION">
<HEAD>§ 478.75   Service on applicant or licensee.</HEAD>
<P>All notices and other documents required to be served on an applicant or licensee under this subpart shall be served by certified mail or by personal delivery. Where service is by certified mail, a signed duplicate original copy of the formal document shall be mailed, with return receipt requested, to the applicant or licensee at the address stated in his application or license, or at his last known address. Where service is by personal delivery, a signed duplicate original copy of the formal document shall be delivered to the applicant or licensee, or, in the case of a corporation, partnership, or association, by delivering it to an officer, manager, or general agent thereof, or to its attorney of record.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. ATF-241, 51 FR 39619, Oct. 29, 1986; T.D. ATF-270, 53 FR 10496, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.76" NODE="27:3.0.1.2.3.5.1.6" TYPE="SECTION">
<HEAD>§ 478.76   Representation at a hearing.</HEAD>
<P>Applicants or licensees may represent themselves or be represented by an attorney, a certified public accountant, or any other person, specifically designated in a duly executed power of attorney that shall be filed in the proceeding by the applicant or licensee. The applicant or licensee shall file waivers, if applicable, under the Privacy Act of 1974 and 26 U.S.C. 6103(c) (confidentiality and disclosure of returns and return information). The Director of Industry Operations may be represented in proceedings under §§ 478.72 and 478.74 by an attorney in the Office of Chief Counsel who is authorized to execute and file motions, briefs, and other papers in the proceeding, on behalf of the Director of Industry Operations, in the attorney's own name as “Attorney for the Government.”
</P>
<CITA TYPE="N">[ATF 33F, 84 FR 64743, Nov. 25, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 478.77" NODE="27:3.0.1.2.3.5.1.7" TYPE="SECTION">
<HEAD>§ 478.77   Designated place of hearing.</HEAD>
<P>The designated place of the hearing shall be a location convenient to the aggrieved party.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10496, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.78" NODE="27:3.0.1.2.3.5.1.8" TYPE="SECTION">
<HEAD>§ 478.78   Operations by licensee after notice.</HEAD>
<P>(a) In any case where denial, suspension, or revocation proceedings are pending before the Bureau of Alcohol, Tobacco, Firearms, and Explosives, or notice of denial, suspension, or revocation has been served on the licensee and he has filed timely request for a hearing, the license in the possession of the licensee shall remain in effect even though such license has expired, or the suspension or revocation date specified in the notice of revocation on Form 4500 served on the licensee has passed: <I>Provided,</I> That with respect to a license that has expired, the licensee has timely filed an application for the renewal of his license. If a licensee is dissatisfied with a posthearing decision revoking or suspending the license or denying the application or imposing a civil fine, as the case may be, he may, pursuant to 18 U.S.C. 923(f)(3), within 60 days after receipt of the final notice denying the application or revoking or suspending the license or imposing a civil fine, file a petition for judicial review of such action. Such petition should be filed with the U.S. district court for the district in which the applicant or licensee resides or has his principal place of business. In such case, when the Director finds that justice so requires, he may postpone the effective date of suspension or revocation of a license or authorize continued operations under the expired license, as applicable, pending judicial review.
</P>
<P>(b) Upon final disposition of license proceedings to disapprove or terminate a license (<I>i.e.,</I> by revocation or denial of renewal), the former licensee shall within 30 days, or such additional period approved by the Director for good cause, either:
</P>
<P>(1) Liquidate the former licensee inventory by selling or otherwise disposing of the firearms to a licensed importer, licensed manufacturer, or licensed dealer for sale, auction, or pawn redemption in accordance with this part; or
</P>
<P>(2) Transfer the former licensee inventory to a responsible person of the former licensee to whom the receipt, possession, sale, or other disposition is not prohibited by law. Any such transfer, however, does not negate the fact that the firearms were repetitively purchased, and were purchased with the predominant intent to earn a profit by repetitive purchase and resale.
</P>
<P>(c) Transfers of former licensee inventory to a licensee or responsible person in accordance with paragraph (b)(1) or (2) of this section shall be appropriately recorded as dispositions, in accordance with § 478.122(b), § 478.123(b), or § 478.125(e), prior to delivering the records after discontinuing business consistent with § 478.127. Except for the sale of former licensee inventory to a licensee within 30 days (or approved period) in accordance with paragraph (b)(1) of this section, or occasional sale of a firearm from such inventory thereafter to a licensee, a former licensee (or responsible person of such former licensee) who resells any such inventory, including former licensee inventory transferred in accordance with paragraph (b)(2) of this section, is subject to the presumptions in § 478.13 (definition of “engaged in the business as a dealer in firearms other than a gunsmith or pawnbroker”) that apply to a person who repetitively purchased those firearms for the purpose of resale.
</P>
<P>(d) The former licensee shall not continue to engage in the business of importing, manufacturing, or dealing in firearms by importing or manufacturing additional firearms for purposes of sale or distribution, or purchasing additional firearms for resale (<I>i.e.,</I> “restocking”).
</P>
<CITA TYPE="N">[T.D. ATF-415, 63 FR 58278, Oct. 29, 1998, as amended by ATF-27P, 74 FR 1878, Jan. 14, 2009; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014; ATF 2022R-17, 89 FR 29092, Apr. 19, 2024]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:3.0.1.2.3.6" TYPE="SUBPART">
<HEAD>Subpart F—Conduct of Business</HEAD>


<DIV8 N="§ 478.91" NODE="27:3.0.1.2.3.6.1.1" TYPE="SECTION">
<HEAD>§ 478.91   Posting of license.</HEAD>
<P>Any license issued under this part shall be kept posted and kept available for inspection on the premises covered by the license.


</P>
</DIV8>


<DIV8 N="§ 478.92" NODE="27:3.0.1.2.3.6.1.2" TYPE="SECTION">
<HEAD>§ 478.92   Identification of firearms and armor piercing ammunition by licensed manufacturers and licensed importers.</HEAD>
<P>(a)(1) <I>Firearms manufactured or imported by licensees.</I> Except as otherwise provided in this section, licensed manufacturers and licensed importers of firearms must legibly identify each firearm they manufacture or import as follows:
</P>
<P>(i) <I>Serial number, name, place of business.</I> By engraving, casting, stamping (impressing), or otherwise conspicuously placing or causing to be engraved, cast, stamped (impressed) or otherwise placed on the frame or receiver thereof, an individual serial number, in a manner not susceptible of being readily obliterated, altered, or removed. The serial number must not duplicate any serial number placed by the licensee on any other firearm. The frame or receiver must also be marked with either: their name (or recognized abbreviation), and city and State (or recognized abbreviation) where they maintain their place of business; or their name (or recognized abbreviation) and the serial number beginning with their abbreviated Federal firearms license number, which is the first three and last five digits, as a prefix to the unique identification number, followed by a hyphen, <I>e.g.,</I> “12345678-[unique identification number]”; and
</P>
<P>(ii) <I>Model, caliber or gauge, foreign manufacturer, country of manufacture.</I> By engraving, casting, stamping (impressing), or otherwise conspicuously placing or causing to be engraved, cast, stamped (impressed) or placed on the frame or receiver, or barrel or pistol slide (if applicable) thereof, certain additional information. This information must be placed in a manner not susceptible of being readily obliterated, altered, or removed. The additional information shall include:
</P>
<P>(A) The model, if such designation has been made;
</P>
<P>(B) The caliber or gauge;
</P>
<P>(C) When applicable, the name of the foreign manufacturer; and
</P>
<P>(D) In the case of an imported firearm, the name of the country in which it was manufactured. For additional requirements relating to imported firearms, see Customs regulations at 19 CFR part 134.
</P>
<P>(iii) <I>Multi-piece frame or receiver.</I> In the case of a multi-piece frame or receiver, the modular subpart that is the outermost housing or structure designed to house, hold, or contain either the sear or equivalent component of a handgun, breech blocking or sealing component of a projectile weapon other than a handgun, or internal sound reduction component of a firearm muffler or firearm silencer, as the case may be, shall be the subpart of the multi-piece frame or receiver identified in accordance with this section. If more than one subpart is similarly designed to house, hold, or contain such primary component (<I>e.g.,</I> left and right halves), each of those subparts must be identified with the same serial number and associated licensee information not duplicated on any other frame or receiver. The identified subpart(s) of a complete (assembled or unassembled) multi-piece frame or receiver shall not be removed and replaced (<I>see</I> § 478.34, 18 U.S.C. 922(k), and 26 U.S.C. 5861(g) and (h)), unless—
</P>
<P>(A) The subpart replacement is not a firearm under 26 U.S.C. 5845;
</P>
<P>(B) The subpart replacement is identified by the licensed manufacturer of the original subpart with the same serial number and associated licensee information in the manner prescribed by this section; and
</P>
<P>(C) The original subpart is destroyed under the licensed manufacturer's control or direct supervision prior to such placement.
</P>
<P>(iv) <I>Frame or receiver, machinegun conversion part, or muffler or silencer part disposed of separately.</I> Each part defined as a frame or receiver or modular subpart thereof described in paragraph (a)(1)(iii) of this section, machinegun, or firearm muffler or firearm silencer that is not a component part of a complete weapon or complete muffler or silencer device at the time it is sold, shipped, or otherwise disposed of by the licensee must be identified as required by this section with an individual serial number not duplicated on any other firearm and all additional identifying information, except that the model designation and caliber or gauge may be omitted if that information is unknown at the time the part is identified.
</P>
<P>(v) <I>Size and depth of markings.</I> The engraving, casting, or stamping (impressing) of the serial number and additional information must be to a minimum depth of .003 inch, and the serial number and any associated license number in a print size no smaller than 
<FR>1/16</FR> inch. The size of the serial and license number is measured as the distance between the latitudinal ends of the character impression bottoms (bases). The depth of all markings required by this section is measured from the flat surface of the metal and not the peaks or ridges.
</P>
<P>(vi) <I>Period of time to identify firearms.</I> Licensed manufacturers shall identify firearms they manufacture within the period of time set forth in the following subparagraphs (A) and (B), and licensed importers must identify firearms they import within the period prescribed in § 478.112. For purposes of these subparagraphs, firearms awaiting materials, parts, or equipment repair to be completed are presumed, absent reliable evidence to the contrary, to be in the manufacturing process.
</P>
<P>(A) <I>Complete non-National Firearms Act weapons, and frames or receivers of such weapons.</I> Complete weapons not defined as firearms under 26 U.S.C. 5845 shall be identified not later than the seventh day following the date the entire manufacturing process has ended for the weapon, or prior to disposition, whichever is sooner. Each part, including a replacement part, defined as a frame or receiver or modular subpart thereof described in paragraph (a)(1)(iii) of this section (other than a machinegun or firearm muffler or firearm silencer) that is not a component part of a complete weapon at the time it is sold, shipped, or otherwise disposed of shall be identified not later than the seventh day following the date the entire manufacturing process has ended for the frame or receiver or modular subpart, or prior to disposition, whichever is sooner.
</P>
<P>(B) <I>Complete National Firearms Act weapons and devices, and machinegun and muffler or silencer parts.</I> Complete weapons defined as firearms under 26 U.S.C. 5845, and complete muffler or silencer devices, shall be identified not later than close of the next business day following the date the entire manufacturing process has ended for the weapon or device, or prior to disposition, whichever is sooner. Each part or modular subpart defined as a machinegun (<I>i.e.,</I> frame or receiver or conversion part), or firearm muffler or firearm silencer, that is not a component part of a complete weapon or complete firearm muffler or silencer device at the time it is sold, shipped, or otherwise disposed of shall be identified not later than close of the next business day following the date the entire manufacturing process has ended for the part, or prior to disposition, whichever is sooner.
</P>
<P>(2) <I>Privately made firearms (PMFs).</I> Unless previously identified by another licensee in accordance with, and except as otherwise provided by, this section, licensees must legibly and conspicuously identify each privately made firearm or “PMF” received or otherwise acquired (including from a personal collection) not later than the seventh day following the date of receipt or other acquisition, or before the date of disposition (including to a personal collection), whichever is sooner. PMFs must be identified by placing, or causing to be placed under the licensee's direct supervision, an individual serial number on the frame or receiver, which must not duplicate any serial number placed by the licensee on any other firearm. The serial number must begin with the licensee's abbreviated Federal firearms license number, which is the first three and last five digits, as a prefix to a unique identification number, followed by a hyphen, <I>e.g.,</I> “12345678-[unique identification number]”. The serial number must be placed in a manner otherwise in accordance with this section, including the requirements that the serial number be at the minimum size and depth, and not susceptible of being readily obliterated, altered, or removed. An acceptable method of identifying a PMF is by placing the serial number on a metal plate that is permanently embedded into a polymer frame or receiver, or other method approved by the Director.
</P>
<P>(3) <I>Meaning of marking terms.</I> For purposes of this section, the term “identify” means placing marks of identification, the terms “legible” and “legibly” mean that the identification markings (including a unique identification number) use exclusively Roman letters (<I>e.g.,</I> A, a, B, b, C, c) and Arabic numerals (<I>e.g.,</I> 1, 2, 3), or solely Arabic numerals, and may include a hyphen, and the terms “conspicuous” and “conspicuously” mean that the identification markings are capable of being easily seen with the naked eye during normal handling of the firearm, and are unobstructed by other markings when the complete weapon or device is assembled.
</P>
<P>(4) <I>Exceptions</I>—(i) <I>Alternate means of identification.</I> The Director may authorize other means of identification to identify firearms upon receipt of a letter application or prescribed form from the licensee showing that such other identification is reasonable and will not hinder the effective administration of this part.
</P>
<P>(ii) <I>Destructive devices.</I> In the case of a destructive device, the Director may authorize other means of identification to identify that weapon upon receipt of a letter application or prescribed form from the licensee. The application shall show that engraving, casting, or stamping (impressing) such a weapon as required by this section would be dangerous or impracticable and that the alternate means of identification proposed will not hinder the effective administration of this part.
</P>
<P>(iii) <I>Adoption of identifying markings.</I> Licensees may adopt existing markings previously placed on a firearm and are not required to mark a serial number or other identifying markings in accordance with this section, as follows:
</P>
<P>(A) <I>Newly manufactured firearms.</I> Licensed manufacturers may adopt the serial number and other identifying markings previously placed on a firearm by another licensed manufacturer provided the firearm has not been sold, shipped, or otherwise disposed of to a person other than a licensee, and the serial number adopted is not duplicated on any other firearm.
</P>
<P>(B) <I>Remanufactured or imported firearms.</I> Licensed manufacturers and licensed importers may adopt the serial number or other identifying markings previously placed on a firearm that otherwise meets the requirements of this section that has been sold, shipped, or otherwise disposed of to a person other than a licensee provided that, within the period and in the manner herein prescribed, the licensee legibly and conspicuously places, or causes to be placed, on the frame or receiver either: Their name (or recognized abbreviation), and city and State (or recognized abbreviation) where they maintain their place of business; or their name (or recognized abbreviation) and abbreviated Federal firearms license number, which is the first three and last five digits, individually (<I>i.e.,</I> not as a prefix to the serial number adopted) after the letters “FFL”, in the following format: “FFL12345678”. The serial number adopted must not duplicate any serial number adopted or placed on any other firearm, except that if a licensed importer receives two or more firearms with the same foreign manufacturer's serial number, the importer may adopt the serial number by adding letters or numbers to that serial number, and may include a hyphen.
</P>
<P>(C) <I>Manufacturers performing gunsmithing services.</I> Licensed manufacturers may adopt the serial number or other identifying markings previously placed on a firearm by another licensee provided the manufacturer is performing services for a nonlicensee as a gunsmith (as defined in § 478.11) on existing firearms not for sale or distribution.
</P>
<P>(D) <I>Privately made firearms marked by nonlicensees.</I> Unless previously identified by another licensee in accordance with this section, licensees may adopt a unique identification number previously placed on a privately made firearm by an unlicensed person, but not duplicated on any other firearm of the licensee, that otherwise meets the identification requirements of this section provided that, within the period and in the manner herein prescribed, the licensee legibly and conspicuously places, or causes to be placed, on the frame or receiver thereof a serial number beginning with their abbreviated Federal firearms license number, which is the first three and last five digits, followed by a hyphen, before the existing unique identification number, <I>e.g.,</I> “12345678-[unique identification number]”.
</P>
<P>(iv)(A) <I>Firearm muffler or silencer parts transferred between qualified manufacturers for further manufacture or to complete new devices.</I> Licensed manufacturers qualified under 27 CFR part 479 may transfer a part defined as a firearm muffler or firearm silencer to another qualified manufacturer without immediately identifying or registering such part provided that it is for further manufacture (<I>i.e.,</I> machining, coating, <I>etc.</I>) or manufacturing a complete muffler or silencer device. Once the new device with such part is completed, the manufacturer who completes the device shall identify, record, and register it in the manner and within the period specified in this part for a complete muffler or silencer device.
</P>
<P>(B) <I>Firearm muffler or silencer replacement parts transferred to qualified manufacturers or dealers to repair existing devices.</I> Licensed manufacturers qualified under part 479 may transfer a replacement part defined as a firearm muffler or firearm silencer other than a frame or receiver to a qualified manufacturer or dealer without identifying or registering such part provided that it is for repairing a complete muffler or silencer device that was previously identified, recorded, and registered in accordance with this part and part 479.
</P>
<P>(v) <I>Frames or receivers designed before August 24, 2022.</I> Licensed manufacturers and licensed importers may continue to identify the same component of a firearm (other than a PMF) defined as a frame or receiver as it existed before August 24, 2022 with the same information required to be marked by paragraphs (a)(1)(i) and (a)(1)(ii) of this section that were in effect prior to that date, and any rules necessary to ensure such identification shall remain effective for that purpose. Any frame or receiver with a new design manufactured after August 24, 2022 must be marked with the identifying information and within the period prescribed by this section. For purposes of this paragraph, the term “new design” means that the design of the existing frame or receiver has been functionally modified or altered, as distinguished from performing a cosmetic process that adds to or changes the decoration of the frame or receiver (<I>e.g.,</I> painting or engraving), or by adding or replacing stocks, barrels, or accessories to the frame or receiver.
</P>
<P>(vi) <I>Privately made firearms acquired before August 24, 2022.</I> Licensees shall identify in the manner prescribed by this section, or cause another person to so identify, each privately made firearm received or otherwise acquired (including from a personal collection) by the licensee before August 24, 2022within sixty (60) days from that date, or prior to the date of final disposition (including to a personal collection), whichever is sooner. 
</P>
<P>(b) <I>Armor piercing ammunition</I>—(1) <I>Marking of ammunition.</I> Each licensed manufacturer or licensed importer of armor piercing ammunition shall identify such ammunition by means of painting, staining or dying the exterior of the projectile with an opaque black coloring. This coloring must completely cover the point of the projectile and at least 50 percent of that portion of the projectile which is visible when the projectile is loaded into a cartridge case.
</P>
<P>(2) <I>Labeling of packages.</I> Each licensed manufacturer or licensed importer of armor piercing ammunition shall clearly and conspicuously label each package in which armor piercing ammunition is contained, e.g., each box, carton, case, or other container. The label shall include the words “ARMOR PIERCING” in block letters at least 
<FR>1/4</FR> inch in height. The lettering shall be located on the exterior surface of the package which contains information concerning the caliber or gauge of the ammunition. There shall also be placed on the same surface of the package in block lettering at least 
<FR>1/8</FR> inch in height the words “FOR GOVERNMENTAL ENTITIES OR EXPORTATION ONLY.” The statements required by this subparagraph shall be on a contrasting background.
</P>
<P>(c) <I>Voluntary classification of firearms and armor piercing ammunition.</I> The Director may issue a determination (classification) to a person whether an item, including a kit, is a firearm or armor piercing ammunition as defined in this part upon receipt of a written request or form prescribed by the Director. Each such voluntary request or form submitted shall be executed under the penalties of perjury with a complete and accurate description of the item or kit, the name and address of the manufacturer or importer thereof, and a sample of such item or kit for examination. A firearm sample must include all accessories and attachments relevant to such classification as each classification is limited to the firearm in the configuration submitted. Each request for classification of a partially complete, disassembled, or nonfunctional item or kit must contain any associated templates, jigs, molds, equipment, or tools that are made available by the seller or distributor of the item or kit to the purchaser or recipient of the item or kit, and any instructions, guides, or marketing materials if they will be made available by the seller or distributor with the item or kit. Upon completion of the examination, the Director may return the sample to the person who made the request unless a determination is made that return of the sample would be or place the person in violation of law. Submissions of armor piercing ammunition with a projectile or projectile core constructed entirely from one or a combination of tungsten steel alloys, steel, iron, brass, bronze, beryllium copper, or depleted uranium must include a list of known handguns in which the ammunition may be used. Except for the classification of a specific component as the frame or receiver of a particular weapon, a determination made by the Director under this paragraph shall not be deemed by any person to be applicable to or authoritative with respect to any other sample, design, model, or configuration.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0050)
</APPRO>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10496, Mar. 31, 1988, as amended by T.D. ATF-363, 60 FR 17454, Apr. 6, 1995; T.D. ATF-383, 61 FR 39321, July 29, 1996; T.D. ATF-396, 63 FR 12646, Mar. 16, 1998; T.D. ATF-461, 66 FR 40600, Aug. 3, 2001; ATF-11F, 73 FR 57241, Oct. 2, 2008; ATF 2014R-42, 84 FR 12094, Apr. 1, 2019; ATF-2021R-05F; 87 FR 24741, Apr. 26, 2022; 87 FR 51250, Aug. 22, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 478.93" NODE="27:3.0.1.2.3.6.1.3" TYPE="SECTION">
<HEAD>§ 478.93   Authorized operations by a licensed collector.</HEAD>
<P>The license issued to a collector of curios or relics under the provisions of this part shall cover only transactions by the licensed collector in curios and relics. The collector's license is of no force or effect and a licensed collector is of the same status under the Act and this part as a nonlicensee with respect to (a) any acquisition or disposition of firearms other than curios or relics, or any transportation, shipment, or receipt of firearms other than curios or relics in interstate or foreign commerce, and (b) any transaction with a nonlicensee involving any firearm other than a curio or relic. (See also § 478.50.) A collectors license is not necessary to receive or dispose of ammunition, and a licensed collector is not precluded by law from receiving or disposing of armor piercing ammunition. However, a licensed collector may not dispose of any ammunition to a person prohibited from receiving or possessing ammunition (see § 478.99(c)). Any licensed collector who disposes of armor piercing ammunition must record the disposition as required by § 478.125 (a) and (b).
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10496, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.94" NODE="27:3.0.1.2.3.6.1.4" TYPE="SECTION">
<HEAD>§ 478.94   Sales or deliveries between licensees.</HEAD>
<P>A licensed importer, licensed manufacturer, or licensed dealer selling or otherwise disposing of firearms, and a licensed collector selling or otherwise disposing of curios or relics, to another licensee shall verify the identity and licensed status of the transferee prior to making the transaction. Verification shall be established by the transferee furnishing to the transferor a certified copy of the transferee's license and by such other means as the transferor deems necessary: <I>Provided,</I> That it shall not be required (a) for a transferee who has furnished a certified copy of its license to a transferor to again furnish such certified copy to that transferor during the term of the transferee's current license, (b) for a licensee to furnish a certified copy of its license to another licensee if a firearm is being returned either directly or through another licensee to such licensee and (c) for licensees of multilicensed business organizations to furnish certified copies of their licenses to other licensed locations operated by such organization: <I>Provided further,</I> That a multilicensed business organization may furnish to a transferor, in lieu of a certified copy of each license, a list, certified to be true, correct and complete, containing the name, address, license number, and the date of license expiration of each licensed location operated by such organization, and the transferor may sell or otherwise dispose of firearms as provided by this section to any licensee appearing on such list without requiring a certified copy of a license therefrom. A transferor licensee who has the certified information required by this section may sell or dispose of firearms to a licensee for not more than 45 days following the expiration date of the transferee's license.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0032)
</APPRO>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10496, Mar. 31, 1988, as amended by ATF-11F, 73 FR 57241, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.95" NODE="27:3.0.1.2.3.6.1.5" TYPE="SECTION">
<HEAD>§ 478.95   Certified copy of license.</HEAD>
<P>The license furnished to each person licensed under the provisions of this part contains a purchasing certification statement. This original license may be reproduced and the reproduction then certified by the licensee for use pursuant to § 478.94. If the licensee desires an additional copy of the license for certification (instead of making a reproduction of the original license), the licensee may submit a request, in writing, for a certified copy or copies of the license to the Chief, Federal Firearms Licensing Center. The request must set forth the name, trade name (if any) and address of the licensee, and the number of license copies desired. There is a charge of $1 for each copy. The fee paid for copies of the license must accompany the request for copies. The fee may be paid by cash, or money order or check made payable to the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0032)
</APPRO>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10497, Mar. 31, 1988, as amended by T.D. ATF-290, 54 FR 53055, Dec. 27, 1989; ATF-11F, 73 FR 57241, Oct. 2, 2008; ATF 2014R-42, 84 FR 12094, Apr. 1, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 478.96" NODE="27:3.0.1.2.3.6.1.6" TYPE="SECTION">
<HEAD>§ 478.96   Out-of-State and mail order sales.</HEAD>
<P>(a) The provisions of this section shall apply when a firearm is purchased by or delivered to a person not otherwise prohibited by the Act from purchasing or receiving it.
</P>
<P>(b) A licensed importer, licensed manufacturer, or licensed dealer may sell a firearm that is not subject to the provisions of § 478.102(a) to a nonlicensee who does not appear in person at the licensee's business premises if the nonlicensee is a resident of the same State in which the licensee's business premises are located, and the nonlicensee furnishes to the licensee the firearms transaction record, Form 4473, required by § 478.124. The nonlicensee shall attach to such record a true copy of any permit or other information required pursuant to any statute of the State and published ordinance applicable to the locality in which he resides. The licensee shall prior to shipment or delivery of the firearm, forward by registered or certified mail (return receipt requested) a copy of the record, Form 4473, to the chief law enforcement officer named on such record, and delay shipment or delivery of the firearm for a period of at least 7 days following receipt by the licensee of the return receipt evidencing delivery of the copy of the record to such chief law enforcement officer, or the return of the copy of the record to him due to the refusal of such chief law enforcement officer to accept same in accordance with U.S. Postal Service regulations. The original Form 4473, and evidence of receipt or rejection of delivery of the copy of the Form 4473 sent to the chief law enforcement officer shall be retained by the licensee as a part of the records required of him to be kept under the provisions of subpart H of this part.
</P>
<P>(c)(1) A licensed importer, licensed manufacturer, or licensed dealer may sell or deliver a rifle or shotgun, and a licensed collector may sell or deliver a rifle or shotgun that is a curio or relic to a nonlicensed resident of a State other than the State in which the licensee's place of business is located if—
</P>
<P>(i) The purchaser meets with the licensee in person at the licensee's premises to accomplish the transfer, sale, and delivery of the rifle or shotgun;
</P>
<P>(ii) The licensed importer, licensed manufacturer, or licensed dealer complies with the provisions of § 478.102;
</P>
<P>(iii) The purchaser furnishes to the licensed importer, licensed manufacturer, or licensed dealer the firearms transaction record, Form 4473, required by § 478.124; and
</P>
<P>(iv) The sale, delivery, and receipt of the rifle or shotgun fully comply with the legal conditions of sale in both such States.
</P>
<P>(2) For purposes of paragraph (c) of this section, any licensed manufacturer, licensed importer, or licensed dealer is presumed, in the absence of evidence to the contrary, to have had actual knowledge of the State laws and published ordinances of both such States.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0021)
</APPRO>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-241, 51 FR 39620, Oct. 29, 1986; T.D. ATF-270, 53 FR 10497, Mar. 31, 1988; T.D. ATF-354, 59 FR 7112, Feb. 14, 1994; T.D. ATF-415, 63 FR 58278, Oct. 29, 1998; ATF-11F, 73 FR 57241, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.97" NODE="27:3.0.1.2.3.6.1.7" TYPE="SECTION">
<HEAD>§ 478.97   Loan or rental of firearms.</HEAD>
<P>(a) A licensee may lend or rent a firearm to any person for temporary use off the premises of the licensee for lawful sporting purposes: <I>Provided,</I> That the delivery of the firearm to such person is not prohibited by § 478.99(b) or § 478.99(c), the licensee complies with the requirements of § 478.102, and the licensee records such loan or rental in the records required to be kept by him under Subpart H of this part.
</P>
<P>(b) A club, association, or similar organization temporarily furnishing firearms (whether by loan, rental, or otherwise) to participants in a skeet, trap, target, or similar shooting activity for use at the time and place such activity is held does not, unattended by other circumstances, cause such club, association, or similar organization to be engaged in the business of a dealer in firearms or as engaging in firearms transactions. Therefore, licensing and recordkeeping requirements contained in this part pertaining to firearms transactions would not apply to this temporary furnishing of firearms for use on premises on which such an activity is conducted.
</P>
<CITA TYPE="N">[T.D. ATF-415, 63 FR 58278, Oct. 29, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 478.98" NODE="27:3.0.1.2.3.6.1.8" TYPE="SECTION">
<HEAD>§ 478.98   Sales or deliveries of destructive devices and certain firearms.</HEAD>
<P>The sale or delivery by a licensee of any destructive device, machine gun, short-barreled shotgun, or short-barreled rifle, to any person other than another licensee who is licensed under this part to deal in such device or firearm, is prohibited unless the person to receive such device or firearm furnishes to the licensee a sworn statement setting forth
</P>
<P>(a) The reasons why there is a reasonable necessity for such person to purchase or otherwise acquire the device or weapon; and
</P>
<P>(b) That such person's receipt or possession of the device or weapon would be consistent with public safety. Such sworn statement shall be made on the application to transfer and register the firearm required by Part 479 of this chapter. The sale or delivery of the device or weapon shall not be made until the application for transfer is approved by the Director and returned to the licensee (transferor) as provided in Part 479 of this chapter.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10497, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.99" NODE="27:3.0.1.2.3.6.1.9" TYPE="SECTION">
<HEAD>§ 478.99   Certain prohibited sales, purchases, or deliveries.</HEAD>
<P>(a) <I>Interstate sales or deliveries.</I> A licensed importer, licensed manufacturer, licensed dealer, or licensed collector shall not sell or deliver any firearm to any person not licensed under this part and who the licensee knows or has reasonable cause to believe does not reside in (or if a corporation or other business entity, does not maintain a place of business in) the State in which the licensee's place of business or activity is located: <I>Provided,</I> That the foregoing provisions of this paragraph (1) shall not apply to the sale or delivery of a rifle or shotgun (curio or relic, in the case of a licensed collector) to a resident of a State other than the State in which the licensee's place of business or collection premises is located if the requirements of § 478.96(c) are fully met, and (2) shall not apply to the loan or rental of a firearm to any person for temporary use for lawful sporting purposes (see § 478.97).
</P>
<P>(b) <I>Sales or deliveries to underaged persons.</I> A licensed importer, licensed manufacturer, licensed dealer, or licensed collector shall not sell or deliver (1) any firearm or ammunition to any individual who the importer, manufacturer, dealer, or collector knows or has reasonable cause to believe is less than 18 years of age, and, if the firearm, or ammunition, is other than a shotgun or rifle, or ammunition for a shotgun or rifle, to any individual who the importer, manufacturer, dealer, or collector knows or has reasonable cause to believe is less than 21 years of age, or (2) any firearm to any person in any State where the purchase or possession by such person of such firearm would be in violation of any State law or any published ordinance applicable at the place of sale, delivery, or other disposition, unless the importer, manufacturer, dealer, or collector knows or has reasonable cause to believe that the purchase or possession would not be in violation of such State law or such published ordinance.
</P>
<P>(c) <I>Sales or deliveries to prohibited categories of persons.</I> No person may sell or otherwise dispose of any firearm or ammunition to any person knowing or having reasonable cause to believe that such person, including as a juvenile:
</P>
<P>(1) Is, except as provided by § 478.143, under indictment for, or, except as provided by § 478.144, has been convicted in any court of a crime punishable by imprisonment for a term exceeding 1 year;
</P>
<P>(2) Is a fugitive from justice;
</P>
<P>(3) Is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substance Act, 21 U.S.C. 802);
</P>
<P>(4) Has been adjudicated as a mental defective or has been committed to a mental institution at 16 years of age or older;
</P>
<P>(5) Is an alien illegally or unlawfully in the United States or, except as provided in § 478.32(f), is an alien who has been admitted to the United States under a nonimmigrant visa: <I>Provided,</I> That the provisions of this paragraph (c)(5) do not apply to any alien who has been lawfully admitted to the United States under a nonimmigrant visa if that alien is—
</P>
<P>(i) Admitted to the United States for lawful hunting or sporting purposes or is in possession of a hunting license or permit lawfully issued in the United States; 
</P>
<P>(ii) An official representative of a foreign government who is either accredited to the United States Government or the Government's mission to an international organization having its headquarters in the United States or en route to or from another country to which that alien is accredited. This exception only applies if the firearm or ammunition is shipped, transported, possessed, or received in the representative's official capacity; 
</P>
<P>(iii) An official of a foreign government or a distinguished foreign visitor who has been so designated by the Department of State. This exception only applies if the firearm or ammunition is shipped, transported, possessed, or received in the official's or visitor's official capacity, except if the visitor is a private individual who does not have an official capacity; or 
</P>
<P>(iv) A foreign law enforcement officer of a friendly foreign government entering the United States on official law enforcement business; 
</P>
<P>(6) Has been discharged from the Armed Forces under dishonorable conditions;
</P>
<P>(7) Who, having been a citizen of the United States, has renounced citizenship;
</P>
<P>(8) Is subject to a court order that restrains such person from harassing, stalking, or threatening an intimate partner of such person or child of such intimate partner or person, or engaging in other conduct that would place an intimate partner in reasonable fear of bodily injury to the partner or child, except that this paragraph shall only apply to a court order that—
</P>
<P>(i) Was issued after a hearing of which such person received actual notice, and at which such person had the opportunity to participate; and
</P>
<P>(ii)(A) Includes a finding that such person represents a credible threat to the physical safety of such intimate partner or child; or
</P>
<P>(B) By its terms explicitly prohibits the use, attempted use, or threatened use of physical force against such intimate partner or child that would reasonably be expected to cause bodily injury;
</P>
<P>(9) Has been convicted of a misdemeanor crime of domestic violence;
</P>
<P>(10) Intends to sell or otherwise dispose of the firearm or ammunition in furtherance of a felony, a Federal crime of terrorism, or a drug trafficking offense; or
</P>
<P>(11) Intends to sell or otherwise dispose of the firearm or ammunition to a person described in any of paragraphs (c)(1) through (10) of this section.
</P>
<P>(d) <I>Manufacture, importation, and sale of armor piercing ammunition by licensed importers and licensed manufacturers.</I> A licensed importer or licensed manufacturer shall not import or manufacture armor piercing ammunition or sell or deliver such ammunition, except:
</P>
<P>(1) For use of the United States or any department or agency thereof or any State or any department, agency, or political subdivision thereof;
</P>
<P>(2) For the purpose of exportation; or
</P>
<P>(3) For the purpose of testing or experimentation authorized by the Director under the provisions of § 478.149.
</P>
<P>(e) <I>Transfer of armor piercing ammunition by licensed dealers.</I> A licensed dealer shall not willfully transfer armor piercing ammunition: <I>Provided,</I> That armor piercing ammunition received and maintained by the licensed dealer as business inventory prior to August 28, 1986, may be transferred to any department or agency of the United States or any State or political subdivision thereof if a record of such ammunition is maintained in the form and manner prescribed by § 478.125(c). Any licensed dealer who violates this paragraph is subject to license revocation. See subpart E of this part. For purposes of this paragraph, the Director shall furnish each licensed dealer information defining which projectiles are considered armor piercing. Such information may not be all-inclusive for purposes of the prohibition on manufacture, importation, or sale or delivery by a manufacturer or importer of such ammunition or 18 U.S.C. 929 relating to criminal misuse of such ammunition.
</P>
<P>(f) <I>Purchase for, or conspire to purchase for, or sell or otherwise dispose of firearms to certain prohibited persons.</I> It is unlawful for any person to knowingly purchase, or conspire to purchase, any firearm in or otherwise affecting interstate or foreign commerce for, on behalf of, or at the request or demand of any other person, knowing or having reasonable cause to believe that such other person:
</P>
<P>(1) Meets the criteria of one or more subsections of 18 U.S.C. 922(d);
</P>
<P>(2) Intends to use, carry, possess, or sell or otherwise dispose of, the firearm in furtherance of a felony, a Federal crime of terrorism, or a drug trafficking crime; or
</P>
<P>(3) Intends to sell or otherwise dispose of the firearm to a person described in paragraph (f)(1) or (2) of this section.
</P>
<P>(g) <I>Transfer, otherwise dispose of, or attempt or conspire to dispose of, ship, transport, or cause to be transported, firearms when use, carrying, possession, or receipt constitutes a felony.</I> It shall be unlawful for any person to:
</P>
<P>(1) Transfer, otherwise dispose of, ship, transport, or cause to be transported, any firearm to another person in or otherwise affecting interstate or foreign commerce, knowing or having reasonable cause to believe that it would constitute a felony for the recipient to use, carry, or possess a firearm;
</P>
<P>(2) Receive any firearm in or otherwise affecting interstate or foreign commerce if the recipient knows or has reasonable cause to believe that receiving the firearm would constitute a felony; or
</P>
<P>(3) Attempt or conspire to commit the conduct described in paragraph (g)(1) or (2) of this section.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10497, Mar. 31, 1988, as amended by T.D. ATF-363, 60 FR 17454, Apr. 6, 1995; T.D. ATF-401, 63 FR 35523, June 30, 1998; T.D. ATF-471, 67 FR 5426, Feb. 5, 2002; ATF-24F, 77 FR 33629, June 7, 2012; ATF 2022R-09, 89 FR 28631, Apr. 19, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 478.100" NODE="27:3.0.1.2.3.6.1.10" TYPE="SECTION">
<HEAD>§ 478.100   Conduct of business away from licensed premises.</HEAD>
<P>(a)(1) A licensee may conduct business temporarily at a gun show or event as defined in paragraph (b) if the gun show or event is located in the same State specified on the license: <I>Provided,</I> That such business shall not be conducted from any motorized or towed vehicle. The premises of the gun show or event at which the licensee conducts business shall be considered part of the licensed premises. Accordingly, no separate fee or license is required for the gun show or event locations. However, licensees shall comply with the provisions of § 478.91 relating to posting of licenses (or a copy thereof) while conducting business at the gun show or event.
</P>
<P>(2) A licensed importer, manufacturer, or dealer may engage in the business of dealing in curio or relic firearms with another licensee at any location.
</P>
<P>(b) A gun show or an event is a function sponsored by any national, State, or local organization, devoted to the collection, competitive use, or other sporting use of firearms, or an organization or association that sponsors functions devoted to the collection, competitive use, or other sporting use of firearms in the community.
</P>
<P>(c) Licensees conducting business at locations other than the premises specified on their license under the provisions of paragraph (a) of this section shall maintain firearms records in the form and manner prescribed by subpart H of this part. In addition, records of firearms transactions conducted at such locations shall include the location of the sale or other disposition, be entered in the acquisition and disposition records of the licensee, and retained on the premises specified on the license.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10498, Mar. 31, 1988, as amended by T.D. ATF-401, 63 FR 35523, June 30, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 478.101" NODE="27:3.0.1.2.3.6.1.11" TYPE="SECTION">
<HEAD>§ 478.101   Record of transactions.</HEAD>
<P>Every licensee shall maintain firearms and armor piercing ammunition records in such form and manner as is prescribed by subpart H of this part.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10498, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.102" NODE="27:3.0.1.2.3.6.1.12" TYPE="SECTION">
<HEAD>§ 478.102   Sales or deliveries of firearms on and after November 30, 1998.</HEAD>
<P>(a) <I>Background check.</I> Except as provided in paragraph (d) of this section, a licensed importer, licensed manufacturer, or licensed dealer (the licensee) shall not sell, deliver, or transfer a firearm to any other person who is not licensed under this part unless the licensee meets the following requirements:
</P>
<P>(1) Before the completion of the transfer, the licensee has contacted NICS;
</P>
<P>(2) The licensee has verified the identity of the transferee by examining the identification document presented in accordance with the provisions of § 478.124(c); and
</P>
<P>(3) NICS has responded to the licensee with one of the following results, or has not responded to the licensee and the required investigatory period has elapsed:
</P>
<P>(i) <I>Notification.</I> NICS provides the licensee with a “Proceed” notification and a unique identification number, at which time the transfer may proceed.
</P>
<P>(ii) <I>Initial investigatory period.</I> If NICS does not respond to the licensee as described in paragraph (a)(3)(i) of this section, the licensee must not proceed with the transfer for three business days (days on which State offices are open). If three business days have elapsed from the date the licensee contacted NICS, and NICS has not provided the licensee with a “Denied” notification, the licensee may proceed with the transfer unless the transferee is under 21 years old and paragraph (a)(3)(iii) of this section applies.
</P>
<EXAMPLE>
<HED>Example 1 to paragraph (a)(3)(ii):</HED><PSPACE>A licensee contacts NICS on Thursday and gets a “Delayed” response. The licensee does not get a further response from NICS of any kind. If State offices are not open on Saturday and Sunday, three business days would have elapsed on the following Tuesday. The licensee may transfer the firearm on the next day, Wednesday.</PSPACE></EXAMPLE>
<P>(iii) <I>Additional investigatory period in the case of a transferee who is under 21 years old (applies through September 30, 2032).</I> In the case of a transferee under 21 years of age, if NICS notifies the licensee within three business days from the date the licensee contacted NICS that cause exists for further investigation, the licensee may not proceed with the transfer until they receive a follow-up “Proceed” response from NICS or until another seven business days have expired, exclusive of the day on which the query is made (up to ten business days in total), whichever occurs first. If ten business days have elapsed from the date the licensee contacted NICS, and NICS has not notified the licensee that transfer to, or receipt of the firearm by, the transferee is “Denied,” the transfer may proceed.
</P>
<EXAMPLE>
<HED>Example 2 to paragraph (a)(3)(iii):</HED><PSPACE>A licensee contacts NICS on Thursday, the 10th and gets a “Delayed” response. If State offices are not open on Saturdays and Sundays, three business days would elapse on the following Tuesday, the 15th. If the transferee is a person 21 years of age or older, the FFL may transfer the firearm at 12:01 on Wednesday, the 16th. However, if the transferee is a person less than 21 years of age, and NICS notifies the licensee by Tuesday, the 15th, that cause exists for further investigation of a possibly disqualifying juvenile record, the licensee may not transfer the firearm the next day, the 16th. If the licensee does not get a further response from NICS by the end of the tenth business day denying the transfer, the licensee may transfer the firearm the next day. Ten business days would elapse on the Thursday of the following week, the 24th. The licensee may transfer the firearm on the next day, Friday, the 25th.</PSPACE></EXAMPLE>
<P>(b) <I>Transaction number.</I> In any transaction for which a licensee receives a transaction number from NICS (which shall include either a NICS transaction number or, in States where the State is recognized as a point of contact for NICS checks, a State transaction number), such number shall be recorded on a firearms transaction record, Form 4473, which shall be retained in the records of the licensee in accordance with the provisions of § 478.129. This applies regardless of whether the transaction is approved or denied by NICS, and regardless of whether the firearm is actually transferred.
</P>
<P>(c) <I>Time limitation on NICS checks.</I> A NICS check conducted in accordance with paragraph (a) of this section may be relied upon by the licensee only for use in a single transaction, and for a period not to exceed 30 calendar days from the date that NICS was initially contacted. If the transaction is not completed within the 30-day period, the licensee shall initiate a new NICS check prior to completion of the transfer.
</P>
<EXAMPLE>
<HED>Example 3 paragraph (c):</HED><PSPACE>A purchaser completes the Form 4473 on December 15, 1998, and a NICS check is initiated by the licensee on that date. The licensee is informed by NICS that the information available to the system does not indicate that receipt of the firearm by the transferee would be in violation of law, and a unique identification number is provided. However, the State imposes a 7-day waiting period on all firearms transactions, and the purchaser does not return to pick up the firearm until January 22, 1999. The licensee must conduct another NICS check before transferring the firearm to the purchaser.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 4 to paragraph (c):</HED><PSPACE>A purchaser completes the Form 4473 on January 25, 1999, and arranges for the purchase of a single firearm. A NICS check is initiated by the licensee on that date. The licensee is informed by NICS that the information available to the system does not indicate that receipt of the firearm by the transferee would be in violation of law, and a unique identification number is provided. The State imposes a 7-day waiting period on all firearms transactions, and the purchaser returns to pick up the firearm on February 15, 1999. Before the licensee executes the Form 4473, and the firearm is transferred, the purchaser decides to purchase an additional firearm. The transfer of these two firearms is considered a single transaction; accordingly, the licensee may add the second firearm to the Form 4473, and transfer that firearm without conducting another NICS check.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 5 to paragraph (c):</HED><PSPACE>A purchaser completes a Form 4473 on February 15, 1999. The licensee receives a unique identification number from NICS on that date, the Form 4473 is executed by the licensee, and the firearm is transferred. On February 20, 1999, the purchaser returns to the licensee's premises and wishes to purchase a second firearm. The purchase of the second firearm is a separate transaction; thus, a new NICS check must be initiated by the licensee.</PSPACE></EXAMPLE>
<P>(d) <I>Exceptions to NICS check.</I> The provisions of paragraph (a) of this section shall not apply if—
</P>
<P>(1) The transferee has presented to the licensee a valid permit or license that—
</P>
<P>(i) Allows the transferee to possess, acquire, or carry a firearm;
</P>
<P>(ii) Was issued not more than 5 years earlier by the State in which the transfer is to take place; and
</P>
<P>(iii) The law of the State provides that such a permit or license is to be issued only after an authorized government official has verified that the information available to such official does not indicate that possession of a firearm by the transferee would be in violation of Federal, State, or local law: <I>Provided,</I> That on and after November 30, 1998, the information available to such official includes the NICS;
</P>
<P>(2) The firearm is subject to the provisions of the National Firearms Act and has been approved for transfer under 27 CFR part 479; or
</P>
<P>(3) On application of the licensee, in accordance with the provisions of § 478.150, the Director has certified that compliance with paragraph (a)(1) of this section is impracticable.
</P>
<P>(e) The document referred to in paragraph (d)(1) of this section (or a copy thereof) shall be retained or the required information from the document shall be recorded on the firearms transaction record in accordance with the provisions of § 478.131.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0045)
</APPRO>
<CITA TYPE="N">[T.D. ATF-415, 63 FR 58279, Oct. 29, 1998, as amended by ATF-11F, 73 FR 57241, Oct. 2, 2008; ATF 2022R-09, 89 FR 28632, Apr. 19, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 478.103" NODE="27:3.0.1.2.3.6.1.13" TYPE="SECTION">
<HEAD>§ 478.103   Posting of signs and written notification to purchasers of handguns.</HEAD>
<P>(a) Each licensed importer, manufacturer, dealer, or collector who delivers a handgun to a nonlicensee shall provide such nonlicensee with written notification as described in paragraph (b) of this section.
</P>
<P>(b) The written notification (ATF I 5300.2) required by paragraph (a) of this section shall state as follows:
</P>
<P>(1) The misuse of handguns is a leading contributor to juvenile violence and fatalities.
</P>
<P>(2) Safely storing and securing firearms away from children will help prevent the unlawful possession of handguns by juveniles, stop accidents, and save lives.
</P>
<P>(3) Federal law prohibits, except in certain limited circumstances, anyone under 18 years of age from knowingly possessing a handgun, or any person from transferring a handgun to a person under 18.
</P>
<P>(4) A knowing violation of the prohibition against selling, delivering, or otherwise transferring a handgun to a person under the age of 18 is, under certain circumstances, punishable by up to 10 years in prison.
</P>
<EXTRACT>
<HD1>FEDERAL LAW
</HD1>
<P>The Gun Control Act of 1968, 18 U.S.C. Chapter 44, provides in pertinent part as follows:
</P>
<HD3>18 U.S.C. 922(x)
</HD3>
<P>(x)(1) It shall be unlawful for a person to sell, deliver, or otherwise transfer to a person who the transferor knows or has reasonable cause to believe is a juvenile—
</P>
<P>(A) a handgun; or
</P>
<P>(B) ammunition that is suitable for use only in a handgun.
</P>
<P>(2) It shall be unlawful for any person who is a juvenile to knowingly possess—
</P>
<P>(A) a handgun; or
</P>
<P>(B) ammunition that is suitable for use only in a handgun.
</P>
<P>(3) This subsection does not apply to—
</P>
<P>(A) a temporary transfer of a handgun or ammunition to a juvenile or to the possession or use of a handgun or ammunition by a juvenile if the handgun and ammunition are possessed and used by the juvenile—
</P>
<P>(i) in the course of employment, in the course of ranching or farming related to activities at the residence of the juvenile (or on property used for ranching or farming at which the juvenile, with the permission of the property owner or lessee, is performing activities related to the operation of the farm or ranch), target practice, hunting, or a course of instruction in the safe and lawful use of a handgun;
</P>
<P>(ii) with the prior written consent of the juvenile's parent or guardian who is not prohibited by Federal, State, or local law from possessing a firearm, except—
</P>
<P>(I) during transportation by the juvenile of an unloaded handgun in a locked container directly from the place of transfer to a place at which an activity described in clause (i) is to take place and transportation by the juvenile of that handgun, unloaded and in a locked container, directly from the place at which such an activity took place to the transferor; or
</P>
<P>(II) with respect to ranching or farming activities as described in clause (i) a juvenile may possess and use a handgun or ammunition with the prior written approval of the juvenile's parent or legal guardian and at the direction of an adult who is not prohibited by Federal, State, or local law from possessing a firearm;
</P>
<P>(iii) the juvenile has the prior written consent in the juvenile's possession at all times when a handgun is in the possession of the juvenile; and
</P>
<P>(iv) in accordance with State and local law;
</P>
<P>(B) a juvenile who is a member of the Armed Forces of the United States or the National Guard who possesses or is armed with a handgun in the line of duty;
</P>
<P>(C) a transfer by inheritance of title (but not possession) of a handgun or ammunition to a juvenile; or
</P>
<P>(D) the possession of a handgun or ammunition by a juvenile taken in defense of the juvenile or other persons against an intruder into the residence of the juvenile or a residence in which the juvenile is an invited guest.
</P>
<P>(4) A handgun or ammunition, the possession of which is transferred to a juvenile in circumstances in which the transferor is not in violation of this subsection shall not be subject to permanent confiscation by the Government if its possession by the juvenile subsequently becomes unlawful because of the conduct of the juvenile, but shall be returned to the lawful owner when such handgun or ammunition is no longer required by the Government for the purposes of investigation or prosecution.
</P>
<P>(5) For purposes of this subsection, the term “juvenile” means a person who is less than 18 years of age.
</P>
<P>(6)(A) In a prosecution of a violation of this subsection, the court shall require the presence of a juvenile defendant's parent or legal guardian at all proceedings.
</P>
<P>(B) The court may use the contempt power to enforce subparagraph (A).
</P>
<P>(C) The court may excuse attendance of a parent or legal guardian of a juvenile defendant at a proceeding in a prosecution of a violation of this subsection for good cause shown.
</P>
<HD3>18 U.S.C. 924(a)(6)
</HD3>
<P>(6)(A)(i) A juvenile who violates section 922(x) shall be fined under this title, imprisoned not more than 1 year, or both, except that a juvenile described in clause (ii) shall be sentenced to probation on appropriate conditions and shall not be incarcerated unless the juvenile fails to comply with a condition of probation.
</P>
<P>(ii) A juvenile is described in this clause if—
</P>
<P>(I) the offense of which the juvenile is charged is possession of a handgun or ammunition in violation of section 922(x)(2); and
</P>
<P>(II) the juvenile has not been convicted in any court of an offense (including an offense under section 922(x) or a similar State law, but not including any other offense consisting of conduct that if engaged in by an adult would not constitute an offense) or adjudicated as a juvenile delinquent for conduct that if engaged in by an adult would constitute an offense.
</P>
<P>(B) A person other than a juvenile who knowingly violates section 922(x)—
</P>
<P>(i) shall be fined under this title, imprisoned not more than 1 year, or both; and
</P>
<P>(ii) if the person sold, delivered, or otherwise transferred a handgun or ammunition to a juvenile knowing or having reasonable cause to know that the juvenile intended to carry or otherwise possess or discharge or otherwise use the handgun or ammunition in the commission of a crime of violence, shall be fined under this title, imprisoned not more than 10 years, or both.</P></EXTRACT>
<P>(c) This written notification shall be delivered to the nonlicensee on ATF I 5300.2, or in the alternative, the same written notification may be delivered to the nonlicensee on another type of written notification, such as a manufacturer's or importer's brochure accompanying the handgun; a manufacturer's or importer's operational manual accompanying the handgun; or a sales receipt or invoice applied to the handgun package or container delivered to a nonlicensee. Any written notification delivered to a nonlicensee other than on ATF I 5300.2 shall include the language set forth in paragraph (b) of this section in its entirety. Any written notification other than ATF I 5300.2 shall be legible, clear, and conspicuous, and the required language shall appear in type size no smaller than 10-point type.
</P>
<P>(d) Except as provided in paragraph (f) of this section, each licensed importer, manufacturer, or dealer who delivers a handgun to a nonlicensee shall display at its licensed premises (including temporary business locations at gun shows) a sign as described in paragraph (e) of this section. The sign shall be displayed where customers can readily see it. Licensed importers, manufacturers, and dealers will be provided with such signs by ATF. Replacement signs may be requested from the ATF Distribution Center.
</P>
<P>(e) The sign (ATF I 5300.1) required by paragraph (d) of this section shall state as follows:
</P>
<EXTRACT>
<P>(1) The misuse of handguns is a leading contributor to juvenile violence and fatalities.
</P>
<P>(2) Safely storing and securing firearms away from children will help prevent the unlawful possession of handguns by juveniles, stop accidents, and save lives.
</P>
<P>(3) Federal law prohibits, except in certain limited circumstances, anyone under 18 years of age from knowingly possessing a handgun, or any person from transferring a handgun to a person under 18.
</P>
<P>(4) A knowing violation of the prohibition against selling, delivering, or otherwise transferring a handgun to a person under the age of 18 is, under certain circumstances, punishable by up to 10 years in prison.</P></EXTRACT>
<NOTE>
<HED>Note:</HED>
<P>ATF I 5300.2 provides the complete language of the statutory prohibitions and exceptions provided in 18 U.S.C. 922(x) and the penalty provisions of 18 U.S.C. 924(a)(6). The Federal firearms licensee posting this sign will provide you with a copy of this publication upon request. Requests for additional copies of ATF I 5300.2 should be submitted to the ATF Distribution Center (<I>http://www.atf.gov</I>) or made by calling (202) 648-6420.</P></NOTE>
<P>(f) The sign required by paragraph (d) of this section need not be posted on the premises of any licensed importer, manufacturer, or dealer whose only dispositions of handguns to nonlicensees are to nonlicensees who do not appear at the licensed premises and the dispositions otherwise comply with the provisions of this part.
</P>
<CITA TYPE="N">[T.D. ATF-402, 63 FR 37742, July 13, 1998, as amended by ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 478.104" NODE="27:3.0.1.2.3.6.1.14" TYPE="SECTION">
<HEAD>§ 478.104   Secure gun storage or safety device.</HEAD>
<P>(a) Any person who applies to be a licensed firearms dealer must certify on ATF Form 7 (5310.12), Application for Federal Firearms License, that compatible secure gun storage or safety devices will be available at any place where firearms are sold under the license to nonlicensed individuals (subject to the exception that in any case in which a secure gun storage or safety device is temporarily unavailable because of theft, casualty, loss, consumer sales, backorders from a manufacturer, or any other similar reason beyond the control of the licensee, the dealer shall not be considered in violation of the requirement to make available such a device).
</P>
<P>(b) Any person who applies to be a licensed firearms importer or a licensed manufacturer and will be engaged in business on the licensed premises as a dealer in the same type of firearms authorized by the license to be imported or manufactured must make the certification required under paragraph (a) of this section.
</P>
<P>(c) Each licensee described in this section must have compatible secure gun storage or safety devices available at any place in which firearms are sold under the license to persons who are not licensees. However, such licensee shall not be considered to be in violation of this requirement if a secure gun storage or safety device is temporarily unavailable because of theft, casualty loss, consumer sales, backorders from a manufacturer, or any other similar reason beyond the control of the licensee.
</P>
<CITA TYPE="N">[ATF 24P, 87 FR 193, Jan. 4, 2022]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:3.0.1.2.3.7" TYPE="SUBPART">
<HEAD>Subpart G—Importation</HEAD>


<DIV8 N="§ 478.111" NODE="27:3.0.1.2.3.7.1.1" TYPE="SECTION">
<HEAD>§ 478.111   General.</HEAD>
<P>(a) Section 922(a)(3) of the Act makes it unlawful, with certain exceptions not pertinent here, for any person other than a licensee to transport into or receive in the State where the person resides any firearm purchased or otherwise obtained by the person outside of that State. However, section 925(a)(4) provides a limited exception for the transportation, shipment, receipt or importation of certain firearms and ammunition by certain members of the United States Armed Forces. Section 922(1) of the Act makes it unlawful for any person knowingly to import or bring into the United States or any possession thereof any firearm or ammunition except as provided by section 925(d) of the Act, which section provides standards for importing or bringing firearms or ammunition into the United States. Section 925(d) also provides standards for importing or bringing firearm barrels into the United States. Accordingly, no firearm, firearm barrel, or ammunition may be imported or brought into the United States except as provided by this part.
</P>
<P>(b) Where a firearm, firearm barrel, or ammunition is imported and the authorization for importation required by this subpart has not been obtained by the person importing same, such person shall:
</P>
<P>(1) Store, at the person's expense, such firearm, firearm barrel, or ammunition at a facility designated by U.S Customs or the Director of Industry Operations to await the issuance of the required authorization or other disposition; or
</P>
<P>(2) Abandon such firearm, firearm barrel, or ammunition to the U.S. Government; or
</P>
<P>(3) Export such firearm, firearm barrel, or ammunition.
</P>
<P>(c) Any inquiry relative to the provisions or procedures under this subpart, other than that pertaining to the payment of customs duties or the release from Customs custody of firearms, firearm barrels, or ammunition authorized by the Director to be imported, shall be directed to the Director of Industry Operations for reply.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10498, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.112" NODE="27:3.0.1.2.3.7.1.2" TYPE="SECTION">
<HEAD>§ 478.112   Importation by a licensed importer.</HEAD>
<P>(a) No firearm, firearm barrel, or ammunition shall be imported or brought into the United States by a licensed importer (as defined in § 478.11) unless the Director has authorized the importation of the firearm, firearm barrel, or ammunition.
</P>
<P>(b)(1) An application for a permit, ATF Form 6—Part I, to import or bring a firearm, firearm barrel, or ammunition into the United States or a possession thereof under this section must be filed, in triplicate, with the Director. The application must be signed and dated and must contain the information requested on the form, including:
</P>
<P>(i) The name, address, telephone number, and license number (including expiration date) of the importer;
</P>
<P>(ii) The country from which the firearm, firearm barrel, or ammunition is to be imported;
</P>
<P>(iii) The name and address of the foreign seller and foreign shipper;
</P>
<P>(iv) A description of the firearm, firearm barrel, or ammunition to be imported, including:
</P>
<P>(A) The name and address of the manufacturer;
</P>
<P>(B) The type (<I>e.g.,</I> rifle, shotgun, pistol, revolver and, in the case of ammunition only, ball, wadcutter, shot, etc.);
</P>
<P>(C) The caliber, gauge, or size;
</P>
<P>(D) The model;
</P>
<P>(E) The barrel length, if a firearm or firearm barrel (in inches);
</P>
<P>(F) The overall length, if a firearm (in inches);
</P>
<P>(G) The serial number, if known;
</P>
<P>(H) Whether the firearm is new or used;
</P>
<P>(I) The quantity;
</P>
<P>(J) The unit cost of the firearm, firearm barrel, or ammunition to be imported;
</P>
<P>(v) The specific purpose of importation, including final recipient information if different from the importer;
</P>
<P>(vi) Verification that if a firearm, it will be identified as required by this part; and
</P>
<P>(vii)(A) If a firearm or ammunition imported or brought in for scientific or research purposes, a statement describing such purpose; or
</P>
<P>(B) If a firearm or ammunition for use in connection with competition or training pursuant to Chapter 401 of Title 10, U.S.C., a statement describing such intended use; or
</P>
<P>(C) If an unserviceable firearm (other than a machine gun) being imported as a curio or museum piece, a description of how it was rendered unserviceable and an explanation of why it is a curio or museum piece; or
</P>
<P>(D) If a firearm other than a surplus military firearm, of a type that does not fall within the definition of a firearm under section 5845(a) of the Internal Revenue Code of 1986, and is for sporting purposes, an explanation of why the firearm is generally recognized as particularly suitable for or readily adaptable to sporting purposes; or
</P>
<P>(E) If ammunition being imported for sporting purposes, a statement why the ammunition is particularly suitable for or readily adaptable to sporting purposes; or
</P>
<P>(F) If a firearm barrel for a handgun, an explanation why the handgun is generally recognized as particularly suitable for or readily adaptable to sporting purposes.
</P>
<P>(2)(i) If the Director approves the application, such approved application will serve as the permit to import the firearm, firearm barrel, or ammunition described therein, and importation of such firearms, firearm barrels, or ammunition may continue to be made by the licensed importer under the approved application (permit) during the period specified thereon. The Director will furnish the approved application (permit) to the applicant and retain two copies thereof for administrative use.
</P>
<P>(ii) If the Director disapproves the application, the licensed importer will be notified of the basis for the disapproval.
</P>
<P>(c) A firearm, firearm barrel, or ammunition imported or brought into the United States or a possession thereof under the provisions of this section by a licensed importer may be released from Customs custody to the licensed importer upon showing that the importer has obtained a permit from the Director for the importation of the firearm, firearm barrel, or ammunition to be released. The importer will also submit to Customs a copy of the export license authorizing the export of the firearm, firearm barrel, or ammunition from the exporting country. If the exporting country does not require issuance of an export license, the importer must submit a certification, under penalty of perjury, to that effect.
</P>
<P>(1) In obtaining the release from Customs custody of a firearm, firearm barrel, or ammunition authorized by this section to be imported through the use of a permit, the licensed importer will prepare ATF Form 6A, in duplicate, and furnish the original ATF Form 6A to the Customs officer releasing the firearm, firearm barrel, or ammunition. The Customs officer will, after certification, forward the ATF Form 6A to the address specified on the form.
</P>
<P>(2) The ATF Form 6A must contain the information requested on the form, including:
</P>
<P>(i) The name, address, and license number of the importer;
</P>
<P>(ii) The name of the manufacturer of the firearm, firearm barrel, or ammunition;
</P>
<P>(iii) The country of manufacture;
</P>
<P>(iv) The type;
</P>
<P>(v) The model;
</P>
<P>(vi) The caliber, gauge, or size;
</P>
<P>(vii) The serial number in the case of firearms, if known; and
</P>
<P>(viii) The number of firearms, firearm barrels, or rounds of ammunition released.
</P>
<P>(d) Within 15 days of the date of release from Customs custody, the licensed importer must:
</P>
<P>(1) Forward to the address specified on the form a copy of ATF Form 6A on which must be reported any error or discrepancy appearing on the ATF Form 6A certified by Customs and serial numbers if not previously provided on ATF Form 6A;
</P>
<P>(2) Pursuant to § 478.92, place all required identification data on each imported firearm if same did not bear such identification data at the time of its release from Customs custody; and
</P>
<P>(3) Post in the records required to be maintained by the importer under subpart H of this part all required information regarding the importation.
</P>
<APPRO TYPE="N">(Paragraph (b) approved by the Office of Management and Budget under control number 1140-0005; paragraphs (c) and (d) approved by the Office of Management and Budget under control number 1140-0007)
</APPRO>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10498, Mar. 31, 1988, as amended by T.D. ATF-426, 65 FR 38198, June 20, 2000; ATF-11F, 73 FR 57241, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.113" NODE="27:3.0.1.2.3.7.1.3" TYPE="SECTION">
<HEAD>§ 478.113   Importation by other licensees.</HEAD>
<P>(a) No person other than a licensed importer (as defined in § 478.11) shall engage in the business of importing firearms or ammunition. Therefore, no firearm or ammunition shall be imported or brought into the United States or a possession thereof by any licensee other than a licensed importer unless the Director issues a permit authorizing the importation of the firearm or ammunition. No barrel for a handgun not generally recognized as particularly suitable for or readily adaptable to sporting purposes shall be imported or brought into the United States or a possession thereof by any person. Therefore, no firearm barrel shall be imported or brought into the United States or possession thereof by any licensee other than a licensed importer unless the Director issues a permit authorizing the importation of the firearm barrel.
</P>
<P>(b)(1) An application for a permit, ATF Form 6—Part I, to import or bring a firearm, firearm barrel, or ammunition into the United States or a possession thereof by a licensee, other than a licensed importer, must be filed, in triplicate, with the Director. The application must be signed and dated and must contain the information requested on the form, including:
</P>
<P>(i) The name, address, telephone number, and license number (including expiration date) of the applicant;
</P>
<P>(ii) The country from which the firearm, firearm barrel, or ammunition is to be imported;
</P>
<P>(iii) The name and address of the foreign seller and foreign shipper;
</P>
<P>(iv) A description of the firearm, firearm barrel, or ammunition to be imported, including:
</P>
<P>(A) The name and address of the manufacturer;
</P>
<P>(B) The type (e.g., rifle, shotgun, pistol, revolver and, in the case of ammunition only, ball, wadcutter, shot, etc.);
</P>
<P>(C) The caliber, gauge, or size;
</P>
<P>(D) The model;
</P>
<P>(E) The barrel length, if a firearm or firearm barrel (in inches);
</P>
<P>(F) The overall length, if a firearm (in inches);
</P>
<P>(G) The serial number, if known;
</P>
<P>(H) Whether the firearm is new or used;
</P>
<P>(I) The quantity;
</P>
<P>(J) The unit cost of the firearm, firearm barrel, or ammunition to be imported;
</P>
<P>(v) The specific purpose of importation, including final recipient information if different from the applicant; and
</P>
<P>(vi)(A) If a firearm or ammunition imported or brought in for scientific or research purposes, a statement describing such purpose; or
</P>
<P>(B) If a firearm or ammunition for use in connection with competition or training pursuant to Chapter 401 of Title 10, U.S.C., a statement describing such intended use; or
</P>
<P>(C) If an unserviceable firearm (other than a machine gun) being imported as a curio or museum piece, a description of how it was rendered unserviceable and an explanation of why it is a curio or museum piece; or
</P>
<P>(D) If a firearm other than a surplus military firearm, of a type that does not fall within the definition of a firearm under section 5845(a) of the Internal Revenue Code of 1986, and is for sporting purposes, an explanation of why the firearm is generally recognized as particularly suitable for or readily adaptable to sporting purposes; or
</P>
<P>(E) If ammunition being imported for sporting purposes, a statement why the ammunition is particularly suitable for or readily adaptable to sporting purposes; or
</P>
<P>(F) If a firearm barrel for a handgun, an explanation why the handgun is generally recognized as particularly suitable for or readily adaptable to sporting purposes.
</P>
<P>(2)(i) If the Director approves the application, such approved application will serve as the permit to import the firearm, firearm barrel, or ammunition described therein, and importation of such firearms, firearm barrels, or ammunition may continue to be made by the applicant under the approved application (permit) during the period specified thereon. The Director will furnish the approved application (permit) to the applicant and retain two copies thereof for administrative use.
</P>
<P>(ii) If the Director disapproves the application, the applicant will be notified of the basis for the disapproval.
</P>
<P>(c) A firearm, firearm barrel, or ammunition imported or brought into the United States or a possession thereof under the provisions of this section may be released from Customs custody to the licensee upon showing that the licensee has obtained a permit from the Director for the importation of the firearm, firearm barrel, or ammunition to be released.
</P>
<P>(1) In obtaining the release from Customs custody of a firearm, firearm barrel, or ammunition authorized by this section to be imported through the use of a permit, the licensee will prepare ATF Form 6A, in duplicate, and furnish the original ATF Form 6A to the Customs officer releasing the firearm, firearm barrel, or ammunition. The Customs officer will, after certification, forward the ATF Form 6A to the address specified on the form.
</P>
<P>(2) The ATF Form 6A must contain the information requested on the form, including:
</P>
<P>(i) The name, address, and license number of the licensee;
</P>
<P>(ii) The name of the manufacturer of the firearm, firearm barrel, or ammunition;
</P>
<P>(iii) The country of manufacture;
</P>
<P>(iv) The type;
</P>
<P>(v) The model;
</P>
<P>(vi) The caliber, gauge, or size;
</P>
<P>(vii) The serial number in the case of firearms; and
</P>
<P>(viii) The number of firearms, firearm barrels, or rounds of ammunition released.
</P>
<APPRO TYPE="N">(Paragraph (b) approved by the Office of Management and Budget under control number 1140-0005; paragraph (c) approved by the Office of Management and Budget under control number 1140-0007)
</APPRO>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10499, Mar. 31, 1988, as amended by T.D. ATF-426, 65 FR 38199, June 20, 2000; ATF-11F, 73 FR 57241, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.113a" NODE="27:3.0.1.2.3.7.1.4" TYPE="SECTION">
<HEAD>§ 478.113a   Importation of firearm barrels by nonlicensees.</HEAD>
<P>(a) A permit will not be issued for a firearm barrel for a handgun not generally recognized as particularly suitable for or readily adaptable to sporting purposes. No firearm barrel shall be imported or brought into the United States or possession thereof by any nonlicensee unless the Director issues a permit authorizing the importation of the firearm barrel.
</P>
<P>(b)(1) An application for a permit, ATF Form 6—Part I, to import or bring a firearm barrel into the United States or a possession thereof under this section must be filed, in triplicate, with the Director. The application must be signed and dated and must contain the information requested on the form, including:
</P>
<P>(i) The name, address, and telephone number of the applicant;
</P>
<P>(ii) The country from which the firearm barrel is to be imported;
</P>
<P>(iii) The name and address of the foreign seller and foreign shipper;
</P>
<P>(iv) A description of the firearm barrel to be imported, including:
</P>
<P>(A) The name and address of the manufacturer;
</P>
<P>(B) The type (e.g., rifle, shotgun, pistol, revolver);
</P>
<P>(C) The caliber, gauge, or size;
</P>
<P>(D) The model;
</P>
<P>(E) The barrel length (in inches);
</P>
<P>(F) The quantity;
</P>
<P>(G) The unit cost of the firearm barrel;
</P>
<P>(v) The specific purpose of importation, including final recipient information if different from the importer; and
</P>
<P>(vi) If a handgun barrel, an explanation of why the barrel is for a handgun that is generally recognized as particularly suitable for or readily adaptable to sporting purposes.
</P>
<P>(2)(i) If the Director approves the application, such approved application will serve as the permit to import the firearm barrel, and importation of such firearm barrels may continue to be made by the applicant under the approved application (permit) during the period specified thereon. The Director will furnish the approved application (permit) to the applicant and retain two copies thereof for administrative use.
</P>
<P>(ii) If the Director disapproves the application, the applicant will be notified of the basis for the disapproval.
</P>
<P>(c) A firearm barrel imported or brought into the United States or a possession thereof under the provisions of this section may be released from Customs custody to the person importing the firearm barrel upon showing that the person has obtained a permit from the Director for the importation of the firearm barrel to be released.
</P>
<P>(1) In obtaining the release from Customs custody of a firearm barrel authorized by this section to be imported through the use of a permit, the person importing the firearm barrel will prepare ATF Form 6A, in duplicate, and furnish the original ATF Form 6A to the Customs officer releasing the firearm barrel. The Customs officer will, after certification, forward the ATF Form 6A to the address specified on the form.
</P>
<P>(2) The ATF Form 6A must contain the information requested on the form, including:
</P>
<P>(i) The name and address of the person importing the firearm barrel;
</P>
<P>(ii) The name of the manufacturer of the firearm barrel;
</P>
<P>(iii) The country of manufacture;
</P>
<P>(iv) The type;
</P>
<P>(v) The model;
</P>
<P>(vi) The caliber or gauge of the firearm barrel so released; and
</P>
<P>(vii) The number of firearm barrels released.
</P>
<APPRO TYPE="N">(Paragraph (b) approved by the Office of Management and Budget under control number 1140-0005; paragraph (c) approved by the Office of Management and Budget under control number 1140-0007)
</APPRO>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10499, Mar. 31, 1988, as amended by T.D. ATF-426, 65 FR 38200, June 20, 2000; ATF-11F, 73 FR 57241, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.114" NODE="27:3.0.1.2.3.7.1.5" TYPE="SECTION">
<HEAD>§ 478.114   Importation by members of the U.S. Armed Forces.</HEAD>
<P>(a) The Director may issue a permit authorizing the importation of a firearm or ammunition into the United States to the place of residence of any military member of the U.S. Armed Forces who is on active duty outside the United States, or who has been on active duty outside the United States within the 60-day period immediately preceding the intended importation: <I>Provided,</I> That such firearm or ammunition is generally recognized as particularly suitable for or readily adaptable to sporting purposes and is intended for the personal use of such member.
</P>
<P>(1) An application for a permit, ATF Form 6—Part II, to import a firearm or ammunition into the United States under this section must be filed, in triplicate, with the Director. The application must be signed and dated and must contain the information requested on the form, including:
</P>
<P>(i) The name, current address, and telephone number of the applicant;
</P>
<P>(ii) Certification that the transportation, receipt, or possession of the firearm or ammunition to be imported would not constitute a violation of any provision of the Act or of any State law or local ordinance at the place of the applicant's residence;
</P>
<P>(iii) The country from which the firearm or ammunition is to be imported;
</P>
<P>(iv) The name and address of the foreign seller and foreign shipper;
</P>
<P>(v) A description of the firearm or ammunition to be imported, including:
</P>
<P>(A) The name and address of the manufacturer;
</P>
<P>(B) The type (e.g., rifle, shotgun, pistol, revolver and, in the case of ammunition only, ball, wadcutter, shot, etc.);
</P>
<P>(C) The caliber, gauge, or size;
</P>
<P>(D) The model;
</P>
<P>(E) The barrel length, if a firearm (in inches);
</P>
<P>(F) The overall length, if a firearm (in inches);
</P>
<P>(G) The serial number;
</P>
<P>(H) Whether the firearm is new or used;
</P>
<P>(I) The quantity;
</P>
<P>(J) The unit cost of the firearm or ammunition to imported;
</P>
<P>(vi) The specific purpose of importation, that is—
</P>
<P>(A) That the firearm or ammunition being imported is for the personal use of the applicant; and
</P>
<P>(B) If a firearm, a statement that it is not a surplus military firearm, that it does not fall within the definition of a firearm under section 5845(a) of the Internal Revenue Code of 1986, and an explanation of why the firearm is generally recognized as particularly suitable for or readily adaptable to sporting purposes; or
</P>
<P>(C) If ammunition, a statement why it is generally recognized as particularly suitable for or readily adaptable to sporting purposes; and 
</P>
<P>(vii) The applicant's date of birth;
</P>
<P>(viii) The applicant's rank or grade;
</P>
<P>(ix) The applicant's place of residence;
</P>
<P>(x) The applicant's present foreign duty station or last foreign duty station, as the case may be;
</P>
<P>(xi) The date of the applicant's reassignment to a duty station within the United States, if applicable; and
</P>
<P>(xii) The military branch of which the applicant is a member.
</P>
<P>(2)(i) If the Director approves the application, such approved application will serve as the permit to import the firearm or ammunition described therein. The Director will furnish the approved application (permit) to the applicant and retain two copies thereof for administrative use.
</P>
<P>(ii) If the Director disapproves the application, the applicant will be notified of the basis for the disapproval.
</P>
<P>(b) Except as provided in paragraph (b)(3) of this section, a firearm or ammunition imported into the United States under the provisions of this section by the applicant may be released from Customs custody to the applicant upon showing that the applicant has obtained a permit from the Director for the importation of the firearm or ammunition to be released.
</P>
<P>(1) In obtaining the release from Customs custody of a firearm or ammunition authorized by this section to be imported through the use of a permit, the military member of the U.S. Armed Forces will prepare ATF Form 6A and furnish the completed form to the Customs officer releasing the firearm or ammunition. The Customs officer will, after certification, forward the ATF Form 6A to the address specified on the form.
</P>
<P>(2) The ATF Form 6A must contain the information requested on the form, including:
</P>
<P>(i) The name and address of the military member;
</P>
<P>(ii) The name of the manufacturer of the firearm or ammunition;
</P>
<P>(iii) The country of manufacture;
</P>
<P>(iv) The type;
</P>
<P>(v) The model;
</P>
<P>(vi) The caliber, gauge, or size;
</P>
<P>(vii) The serial number in the case of firearms; and
</P>
<P>(viii) If applicable, the number of firearms or rounds of ammunition released.
</P>
<P>(3) When such military member is on active duty outside the United States, the military member may appoint, in writing, an agent to obtain the release of the firearm or ammunition from Customs custody for such member. Such agent will present sufficient identification of the agent and the written authorization to act on behalf of such military member to the Customs officer who is to release the firearm or ammunition.
</P>
<P>(c) Firearms determined by the Department of Defense to be war souvenirs may be imported into the United States by the military members of the U.S. Armed Forces under such provisions and procedures as the Department of Defense may issue.
</P>
<APPRO TYPE="N">(Paragraph (a) approved by the Office of Management and Budget under control number 1140-0006; paragraph (b) approved by the Office of Management and Budget under control number 1140-0007)
</APPRO>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10500, Mar. 31, 1988, as amended by T.D. ATF-426, 65 FR 38200, June 20, 2000; ATF-11F, 73 FR 57241, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.115" NODE="27:3.0.1.2.3.7.1.6" TYPE="SECTION">
<HEAD>§ 478.115   Exempt importation.</HEAD>
<P>(a) Firearms and ammunition may be brought into the United States or any possession thereof by any person who can establish to the satisfaction of Customs that such firearm or ammunition was previously taken out of the United States or any possession thereof by such person. Registration on Customs Form 4457 or on any other registration document available for this purpose may be completed before departure from the United States at any U.S. customhouse or any office of an Director of Industry Operations. A bill of sale or other commercial document showing transfer of the firearm or ammunition in the United States to such person also may be used to establish proof that the firearm or ammunition was taken out of the United States by such person. Firearms and ammunition furnished under the provisions of section 925(a)(3) of the Act to military members of the U.S. Armed Forces on active duty outside of the United States also may be imported into the United States or any possession thereof by such military members upon establishing to the satisfaction of Customs that such firearms and ammunition were so obtained.
</P>
<P>(b) Firearms, firearm barrels, and ammunition may be imported or brought into the United States by or for the United States or any department or agency thereof, or any State or any department, agency, or political subdivision thereof. A firearm, firearm barrel or ammunition imported or brought into the United States under this paragraph may be released from Customs custody upon a showing that the firearm, firearm barrel or ammunition is being imported or brought into the United States by or for such a governmental entity.
</P>
<P>(c) The provisions of this subpart shall not apply with respect to the importation into the United States of any antique firearm.
</P>
<P>(d) Firearms and ammunition are not imported into the United States, and the provisions of this subpart shall not apply, when such firearms and ammunition are brought into the United States by:
</P>
<P>(1) A nonresident of the United States for legitimate hunting or lawful sporting purposes, and such firearms and such ammunition as remains following such shooting activity are to be taken back out of the territorial limits of the United States by such person upon conclusion of the shooting activity;
</P>
<P>(2) Foreign military personnel on official assignment to the United States who bring such firearms or ammunition into the United States for their exclusive use while on official duty in the United States, and such firearms and unexpended ammunition are taken back out of the territorial limits of the United States by such foreign military personnel when they leave the United States; 
</P>
<P>(3) Official representatives of foreign governments who are accredited to the U.S. Government or are en route to or from other countries to which accredited, and such firearms and unexpended ammunition are taken back out of the territorial limits of the United States by such official representatives of foreign governments when they leave the United States; 
</P>
<P>(4) Officials of foreign governments and distinguished foreign visitors who have been so designated by the Department of State, and such firearms and unexpended ammunition are taken back out of the territorial limits of the United States by such officials of foreign governments and distinguished foreign visitors when they leave the United States; and 
</P>
<P>(5) Foreign law enforcement officers of friendly foreign governments entering the United States on official law enforcement business, and such firearms and unexpended ammunition are taken back out of the territorial limits of the United States by such foreign law enforcement officers when they leave the United States. 
</P>
<P>(e) Notwithstanding the provisions of paragraphs (d) (1), (2), (3), (4) and (5) of this section, the Secretary of the Treasury or his delegate may in the interest of public safety and necessity require a permit for the importation or bringing into the United States of any firearms or ammunition.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-58, 44 FR 32367, June 6, 1979; T.D. ATF-270, 53 FR 10500, Mar. 31, 1988; T.D. ATF-471, 67 FR 5426, Feb. 5, 2002]


</CITA>
</DIV8>


<DIV8 N="§ 478.116" NODE="27:3.0.1.2.3.7.1.7" TYPE="SECTION">
<HEAD>§ 478.116   Conditional importation.</HEAD>
<P>The Director shall permit the conditional importation or bringing into the United States or any possession thereof of any firearm, firearm barrel, or ammunition for the purpose of examining and testing the firearm, firearm barrel, or ammunition in connection with making a determination as to whether the importation or bringing in of such firearm, firearm barrel, or ammunition will be authorized under this part. An application on ATF Form 6 for such conditional importation shall be filed, in duplicate, with the Director. The Director may impose conditions upon any importation under this section including a requirement that the firearm, firearm barrel, or ammunition be shipped directly from Customs custody to the Director and that the person importing or bringing in the firearm, firearm barrel, or ammunition must agree to either export the firearm, firearm barrel, or ammunition or destroy same if a determination is made that the firearm, firearm barrel, or ammunition may not be imported or brought in under this part. A firearm, firearm barrel, or ammunition imported or brought into the United States or any possession thereof under the provisions of this section shall be released from Customs custody upon the payment of customs duties, if applicable, and in the manner prescribed in the conditional authorization issued by the Director.
</P>
<CITA TYPE="N">[T.D. ATF-383, 61 FR 39321, July 29, 1996, as amended by ATF 2014R-42, 84 FR 12094, Apr. 1, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 478.117" NODE="27:3.0.1.2.3.7.1.8" TYPE="SECTION">
<HEAD>§ 478.117   Function outside a customs territory.</HEAD>
<P>In the insular possessions of the United States outside customs territory, the functions performed by U.S. Customs officers under this subpart within a customs territory may be performed by the appropriate authorities of a territorial government or other officers of the United States who have been designated to perform such functions. For the purpose of this subpart, the term customs territory means the United States, the District of Columbia, and the Commonwealth of Puerto Rico.


</P>
</DIV8>


<DIV8 N="§ 478.118" NODE="27:3.0.1.2.3.7.1.9" TYPE="SECTION">
<HEAD>§ 478.118   Importation of certain firearms classified as curios or relics.</HEAD>
<P>Notwithstanding any other provision of this part, a licensed importer may import all rifles and shotguns classified by the Director as curios or relics, and all handguns classified by the Director as curios or relics that are determined to be generally recognized as particularly suitable for or readily adaptable to sporting purposes. The importation of such curio or relic firearms must be in accordance with the applicable importation provisions of this part and the importation provisions of 27 CFR part 447. Curios or relics which fall within the definition of “firearm” under 26 U.S.C. 5845(a) must also meet the importation provisions of 27 CFR part 479 before they may be imported.
</P>
<CITA TYPE="N">[T.D. ATF-202, 50 FR 14383, Apr. 12, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 478.119" NODE="27:3.0.1.2.3.7.1.10" TYPE="SECTION">
<HEAD>§ 478.119   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 478.120" NODE="27:3.0.1.2.3.7.1.11" TYPE="SECTION">
<HEAD>§ 478.120   Firearms or ammunition imported by or for a nonimmigrant alien.</HEAD>
<P>(a) <I>General.</I> A nonimmigrant alien temporarily importing or bringing firearms or ammunition into the United States for lawful hunting or sporting purposes must first obtain an approved ATF Form 6NIA (5330.3D).
</P>
<P>(b) <I>Aliens admitted to the United States under a nonimmigrant visa.</I> (1) Any alien lawfully admitted to the United States under a nonimmigrant visa who completes an ATF Form 6NIA to import firearms or ammunition into the United States, or any licensee who completes an ATF Form 6 to import firearms or ammunition for such nonimmigrant alien, must attach applicable documentation to the Form 6NIA or Form 6 establishing the nonimmigrant alien falls within an exception specified in 18 U.S.C. 922(y)(2) (e.g., a hunting license or permit lawfully issued in the United States) or has obtained a waiver as specified in 18 U.S.C. 922(y)(3).
</P>
<P>(2) Aliens admitted to the United States under a nonimmigrant visa importing or bringing firearms or ammunition into the United States must provide the United States Customs and Border Protection with applicable documentation (e.g., a hunting license or permit lawfully issued in the United States) establishing the nonimmigrant alien falls within an exception specified in 18 U.S.C. 922(y)(2) or has obtained a waiver as specified in 18 U.S.C. 922(y)(3) before the firearm or ammunition may be imported. This provision applies in all cases, whether or not a Form 6 is needed to bring the firearms or ammunition into the United States.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0060)
</APPRO>
<CITA TYPE="N">[ATF-24F, 77 FR 33629, June 7, 2012]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:3.0.1.2.3.8" TYPE="SUBPART">
<HEAD>Subpart H—Records</HEAD>


<DIV8 N="§ 478.121" NODE="27:3.0.1.2.3.8.1.1" TYPE="SECTION">
<HEAD>§ 478.121   General.</HEAD>
<P>(a) The records pertaining to firearms transactions prescribed by this part shall be retained on the licensed premises in the manner prescribed by this subpart and for the length of time prescribed by § 478.129. The records pertaining to ammunition prescribed by this part shall be retained on the licensed premises in the manner prescribed by § 478.125.
</P>
<P>(b) ATF officers may, for the purposes and under the conditions prescribed in § 478.23, enter the premises of any licensed importer, licensed manufacturer, licensed dealer, or licensed collector for the purpose of examining or inspecting any record or document required by or obtained under this part. Section 923(g) of the Act requires licensed importers, licensed manufacturers, licensed dealers, and licensed collectors to make such records available for such examination or inspection during business hours or, in the case of licensed collectors, hours of operation, as provided in § 478.23.
</P>
<P>(c) Each licensed importer, licensed manufacturer, licensed dealer, and licensed collector shall maintain such records of importation, production, shipment, receipt, sale, or other disposition, whether temporary or permanent, of firearms and such records of the disposition of ammunition as the regulations contained in this part prescribe. Section 922(m) of the Act makes it unlawful for any licensed importer, licensed manufacturer, licensed dealer, or licensed collector knowingly to make any false entry in, to fail to make appropriate entry in, or to fail to properly maintain any such record.
</P>
<P>(d) For recordkeeping requirements for sales by licensees at gun shows see § 478.100(c).
</P>
<APPRO TYPE="N">(Information collection requirements in paragraph (a) approved by the Office of Management and Budget under control number 1140-0020; information collection requirements in paragraphs (b) and (c) approved by the Office of Management and Budget under control number 1140-0032)
</APPRO>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-191, 49 FR 46891, Nov. 29, 1984; T.D. ATF-208, 50 FR 26703, June 28, 1985; T.D. ATF-270, 53 FR 10501, Mar. 31, 1988; ATF-11F, 73 FR 57241, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.122" NODE="27:3.0.1.2.3.8.1.2" TYPE="SECTION">
<HEAD>§ 478.122   Records maintained by importers.</HEAD>
<P>(a) Except for adjustment or repair of a firearm that is returned to the person from whom it was received on the same day, each licensed importer shall record the name of the importer and manufacturer, type, model, caliber or gauge, country or countries of manufacture (if imported), and serial number (including any associated license number either as a prefix, or if remanufactured or imported, separated by a semicolon) of each firearm imported or otherwise acquired (including a frame or receiver to be disposed of separately), the date of such importation or other acquisition, and if otherwise acquired, the name and address, or the name and license number of the person from whom it was received. Privately made firearms shall be recorded in accordance with § 478.125(i). The information required by this paragraph shall be recorded not later than 15 days following the date of importation or other acquisition in a format containing the applicable columns set forth in paragraph (b) of this section.
</P>
<P>(b) A record of each firearm disposed of by an importer and a separate record of armor piercing ammunition dispositions to governmental entities, for exportation, or for testing or experimentation authorized under the provisions of § 478.149 shall be maintained by the licensed importer on the licensed premises. The record shall show the date of such sale or other disposition, and the name and license number of the licensee to whom the firearm was transferred, or if disposed of to a nonlicensee, the name and address of the person, or the transaction number of the Firearms Transaction Record, Form 4473, if the licensee transferring the firearm sequentially numbers the Forms 4473 and files them numerically. In the event the licensee records a duplicate entry with the same firearm and acquisition information, whether to close out an old record book or for any other reason, the licensee shall record a reference to the date and location of the subsequent entry (<I>e.g.,</I> date of new entry, book name/number, page number, and line number) as the disposition. The information required by this paragraph (b) shall be entered in the proper record book not later than the seventh day following the date of the transaction. Such information shall be recorded in formats containing the applicable columns below, except that for armor piercing ammunition, the information and format shall also include the quantity of projectiles:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 1 to Paragraph (<E T="01">b</E>)—Firearms Importer or Manufacturer Acquisition and Disposition Record
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" colspan="6" scope="col">Description of firearm
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Import/manufacture/acquisition
</TH><TH class="gpotbl_colhed" colspan="3" scope="col">Disposition
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Importer,
<br/>manufacturer, and/or “privately made firearm” (PMF)
<br/>(if privately made in the U.S.)
</TH><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Model
</TH><TH class="gpotbl_colhed" scope="col">Caliber or gauge
</TH><TH class="gpotbl_colhed" scope="col">Country or countries of manufacture
<br/>(if imported)
</TH><TH class="gpotbl_colhed" scope="col">Serial No.
</TH><TH class="gpotbl_colhed" scope="col">Date of import,
<br/>manufacture, or acquisition
</TH><TH class="gpotbl_colhed" scope="col">Name and
<br/>address of nonlicensee; or if licensee, name and
<br/>license No.
<br/>(if acquired)
</TH><TH class="gpotbl_colhed" scope="col">Date of
<br/>disposition
</TH><TH class="gpotbl_colhed" scope="col">Name
</TH><TH class="gpotbl_colhed" scope="col">Address of nonlicensee;
<br/>license No. of licensee; or Form 4473 transaction No. if such forms filed
<br/>numerically
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/></TR></TABLE></DIV></DIV>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 2 to Paragraph (<E T="01">b</E>)—Armor Piercing Ammunition Importer or Manufacturer Disposition Record
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Date of
<br/>disposition
</TH><TH class="gpotbl_colhed" scope="col">Manufacturer
</TH><TH class="gpotbl_colhed" scope="col">Caliber or gauge
</TH><TH class="gpotbl_colhed" scope="col">Quantity of projectiles
</TH><TH class="gpotbl_colhed" scope="col">Transferee—name and address
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="left" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR></TABLE></DIV></DIV>
<P>(c) The Director may authorize alternate records to be maintained by a licensed importer to record the acquisition and disposition of firearms and armor piercing ammunition when it is shown by the licensed importer that such alternate records will accurately and readily disclose the information required by this section. A licensed importer who proposes to use alternate records shall submit a letter application to the Director and shall describe the proposed alternate records and the need therefor. Such alternate records shall not be employed by the licensed importer until approval in such regard is received from the Director.
</P>
<CITA TYPE="N">[ATF-2021R-05F, 87 FR 24743, Apr. 26, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 478.123" NODE="27:3.0.1.2.3.8.1.3" TYPE="SECTION">
<HEAD>§ 478.123   Records maintained by manufacturers.</HEAD>
<P>(a) Except for adjustment or repair of a firearm that is returned to the person from whom it was received on the same day, each licensed manufacturer shall record the name of the manufacturer and importer (if any), type, model, caliber or gauge, and serial number (including any associated license number either as a prefix, or if remanufactured or imported, separated by a semicolon) of each firearm manufactured or otherwise acquired (including a frame or receiver to be disposed of separately), the date of such manufacture or other acquisition, and if otherwise acquired, the name and address or the name and license number of the person from whom it was received. Privately made firearms shall be recorded in accordance with § 478.125(i). The information required by this paragraph shall, in the case of a firearm other than a firearm defined in 26 U.S.C. 5845, be recorded not later than the seventh day following the date of such manufacture or other acquisition. In the case of a firearm defined in 26 U.S.C. 5845, such information shall be recorded by close of the next business day following the date of such manufacture or other acquisition, except that, when a commercial record is held by the licensed manufacturer separately from other commercial documents and readily available for inspection, containing all acquisition information required for the record, the period for making the required entry into the record may be delayed not to exceed the seventh day following the date of receipt. The information required by this paragraph shall be recorded in a format containing the applicable columns prescribed by § 478.122.
</P>
<P>(b) A record of each firearm disposed of by a manufacturer and a separate record of armor piercing ammunition dispositions to governmental entities, for exportation, or for testing or experimentation authorized under the provisions of § 478.149 shall be maintained by the licensed manufacturer on the licensed premises. The record shall show the date of such sale or other disposition, and the name and license number of the licensee to whom the firearms were transferred, or if disposed of to a nonlicensee, the name and address of the person, or the transaction number of the Firearms Transaction Record, Form 4473, if the licensee transferring the firearm sequentially numbers the Forms 4473 and files them numerically. In the event the licensee records a duplicate entry with the same firearm and acquisition information, whether to close out an old record book or for any other reason, the licensee shall record a reference to the date and location of the subsequent entry (<I>e.g.,</I> date of new entry, book name/number, page number, and line number) as the disposition. The information required by this paragraph shall be entered in the proper record book not later than the seventh day following the date of the transaction. Such information shall be recorded in a format containing the applicable columns prescribed by § 478.122, except that for armor piercing ammunition, the information and format shall also include the quantity of projectiles.
</P>
<P>(c) The Director may authorize alternate records to be maintained by a licensed manufacturer to record the acquisition or disposition of firearms and armor piercing ammunition when it is shown by the licensed manufacturer that such alternate records will accurately and readily disclose the information required by this section. A licensed manufacturer who proposes to use alternate records shall submit a letter application to the Director and shall describe the proposed alternate record and the need therefor. Such alternate records shall not be employed by the licensed manufacturer until approval in such regard is received from the Director.
</P>
<CITA TYPE="N">[ATF-2021R-05F, 87 FR 24744, Apr. 26, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 478.124" NODE="27:3.0.1.2.3.8.1.4" TYPE="SECTION">
<HEAD>§ 478.124   Firearms transaction record.</HEAD>
<P>(a) A licensed importer, licensed manufacturer, or licensed dealer shall not sell or otherwise dispose, temporarily or permanently, of any firearm to any person, other than another licensee, unless the licensee records the transaction on a firearm transaction record, Form 4473: <I>Provided,</I> that a firearms transaction record, Form 4473, shall not be required to record the disposition made of a firearm delivered to a licensee for the sole purpose of repair or customizing when such firearm or a replacement firearm is returned to the person from whom received; <I>provided further,</I> that a firearms transaction record, Form 4473, shall not be used if the sale or other disposition is being made to another licensed importer, licensed manufacturer, or licensed dealer, or a curio or relic to a licensed collector, including a sole proprietor who transfers a firearm to their personal collection or otherwise as a personal firearm in accordance with § 478.125a. When a licensee transfers a firearm to another licensee, the licensee shall comply with the verification and recordkeeping requirements in § 478.94 and this subpart.
</P>
<P>(b) A licensed manufacturer, licensed importer, or licensed dealer shall retain in alphabetical (by name of purchaser), chronological (by date of disposition), or numerical (by transaction number) order, and as a part of the required records, each Form 4473 obtained in the course of transferring custody of the firearms.
</P>
<P>(c)(1) Prior to making an over-the-counter transfer of a firearm to a non-licensee who is a resident of the State in which the licensee's business premises is located, the licensed importer, licensed manufacturer, or licensed dealer so transferring the firearm shall obtain a Form 4473 from the transferee showing the transferee's name, sex, residence address (including county or similar political subdivision and whether they reside within city limits), and date and place of birth; the height, weight, and race of the transferee; the transferee's country of citizenship; the transferee's DHS-issued alien number or admission number; the transferee's State of residence; certification by the transferee that the transferee is not prohibited by the Act from transporting or shipping a firearm in interstate or foreign commerce or receiving a firearm which has been shipped or transported in interstate or foreign commerce or possessing a firearm in or affecting commerce; and certification that the transferee does not intend to purchase or acquire any firearm for sale or other disposition to a person so prohibited or in furtherance of any felony or other offense punishable by imprisonment for a term of more than one year, a Federal crime of terrorism, or a drug trafficking offense.
</P>
<P>(2) In order to facilitate the transfer of a firearm and enable NICS to verify the identity of the person acquiring the firearm, ATF Form 4473 also requests certain optional information. This information includes the transferee's social security number. Such information may help avoid the possibility of the transferee being misidentified as a felon or other prohibited person.
</P>
<P>(3) After the transferee has executed the Form 4473, the licensee:
</P>
<P>(i) Shall verify the identity of the transferee by examining the identification document (as defined in § 478.11) presented, and shall note on the Form 4473 the type of identification used;
</P>
<P>(ii) [Reserved]
</P>
<P>(iii) Must, in the case of a transferee who is an alien admitted to the United States under a nonimmigrant visa who states that he or she falls within an exception to, or has a waiver from, the prohibition in section 922(g)(5)(B) of the Act, have the transferee present applicable documentation establishing the exception or waiver, note on the Form 4473 the type of documentation provided, and attach a copy of the documentation to the Form 4473; and
</P>
<P>(iv) Shall comply with the requirements of § 478.102 and record on the form the date on which the licensee contacted the NICS, as well as any response provided by the system, including any identification number provided by the system.
</P>
<P>(4) The licensee shall identify the firearm to be transferred by listing on the Form 4473 the name of the manufacturer, the name of the importer (if any), the type, model, caliber or gauge, and the serial number (including any associated license number either as a prefix, or if remanufactured or imported, separated by a semicolon) of the firearm. Where no manufacturer name has been identified on a privately made firearm, the words “privately made firearm” (or abbreviation “PMF”) shall be recorded as the name of the manufacturer.
</P>
<P>(5) The licensee shall sign and date the form if the licensee does not know or have reasonable cause to believe that the transferee is disqualified by law from receiving the firearm and transfer the firearm described on the Form 4473.
</P>
<P>(d) Prior to making an over-the-counter transfer of a shotgun or rifle under the provisions contained in § 478.96(c) to a nonlicensee who is not a resident of the State in which the licensee's business premises is located, the licensee so transferring the shotgun or rifle, and such transferee, shall comply with the requirements of paragraph (c) of this section. 
</P>
<P>(e) Prior to making a transfer of a firearm to any nonlicensee who is not a resident of the State in which the licensee's business premises is located, and such nonlicensee is acquiring the firearm by loan or rental from the licensee for temporary use for lawful sporting purposes, the licensed importer, licensed manufacturer, or licensed dealer so furnishing the firearm, and such transferee, shall comply with the provisions of paragraph (c) of this section.
</P>
<P>(f) Form 4473 shall be submitted, in duplicate, to a licensed importer, licensed manufacturer, or licensed dealer by a transferee who is purchasing or otherwise acquiring a firearm by other than an over-the-counter transaction, who is not subject to the provisions of § 478.102(a), and who is a resident of the State in which the licensee's business premises are located. The Form 4473 shall show the transferee's name, sex, residence address (including county or similar political subdivision and whether they reside within city limits), and date and place of birth; the height, weight, and race of the transferee; the transferee's country of citizenship; the transferee's DHS-issued alien number or admission number; the transferee's State of residence; and the title, name, and address of the principal law enforcement officer of the locality to which the firearm will be delivered. The transferee shall also certify on the Form 4473 that the transferee does not intend to purchase or acquire any firearm for sale or other disposition to a person so prohibited or in furtherance of any felony or other offense punishable by imprisonment for a term of more than one year, a Federal crime of terrorism, or a drug trafficking offense. The licensee shall identify the firearm to be transferred by listing in the Forms 4473 the name of the manufacturer, the name of the importer (if any), the type, model, caliber or gauge, and the serial number of the firearm to be transferred. Where no manufacturer name has been identified on a privately made firearm, the words “privately made firearm” (or abbreviation “PMF”) shall be recorded as the name of the manufacturer. The licensee shall prior to shipment or delivery of the firearm to such transferee, forward by registered or certified mail (return receipt requested) a copy of the Form 4473 to the principal law enforcement officer named in the Form 4473 by the transferee, and shall delay shipment or delivery of the firearm to the transferee for a period of at least 7 days following receipt by the licensee of the return receipt evidencing delivery of the copy of the Form 4473 to such principal law enforcement officer, or the return of the copy of the Form 4473 to the licensee due to the refusal of such principal law enforcement officer to accept same in accordance with U.S. Postal Service regulations. The original Form 4473, and evidence of receipt or rejection of delivery of the copy of the Form 4473 sent to the principal law enforcement officer, shall be retained by the licensee as a part of the records required to be kept under this subpart.
</P>
<P>(g) A licensee who sells or otherwise disposes of a firearm to a nonlicensee who is other than an individual, shall obtain from the transferee the information required by this section from an individual authorized to act on behalf of the transferee. In addition, the licensee shall obtain from the individual acting on behalf of the transferee a written statement, executed under the penalties of perjury, that the firearm is being acquired for the use of and will be the property of the transferee, and showing the name and address of that transferee.
</P>
<P>(h) The requirements of this section shall be in addition to any other recordkeeping requirement contained in this part.
</P>
<P>(i) A licensee may obtain, upon request, an emergency supply of Forms 4473 from any Director of Industry Operations. For normal usage, a licensee should request a year's supply from the ATF Distribution Center (See § 478.21). 
</P>
<APPRO TYPE="N">(Paragraph (c) approved by the Office of Management and Budget under control numbers 1140-0045, 1140-0020, and 1140-0060; paragraph (f) approved by the Office of Management and Budget under control number 1140-0021; all other recordkeeping approved by the Office of Management and Budget under control number 1140-0020)
</APPRO>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968, as amended by T.D. ATF-172, 49 FR 14942, Apr. 16, 1984; T.D. ATF-241, 51 FR 39625, Oct. 29, 1986; T.D. ATF-270, 53 FR 10502, Mar. 31, 1988; T.D. ATF-389, 62 FR 19444, Apr. 21, 1997; T.D. ATF-415, 63 FR 58279, Oct. 29, 1998; T.D. ATF-471, 67 FR 5426, Feb. 5, 2002; ATF-11F, 73 FR 57241, Oct. 2, 2008; ATF-24F and 22I, 77 FR 33630, 33634, June 7, 2012; ATF-2021R-05F, 87 FR 24744, Apr. 26, 2022; ATF 2022R-17, 89 FR 29092, Apr. 19, 2024; ATF 2022R-09, 89 FR 28632, Apr. 19, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 478.125" NODE="27:3.0.1.2.3.8.1.5" TYPE="SECTION">
<HEAD>§ 478.125   Record of receipt and disposition.</HEAD>
<P>(a) <I>Armor piercing ammunition sales by licensed collectors to nonlicensees.</I> The sale or other disposition of armor piercing ammunition by licensed collectors shall be recorded in a bound record at the time a transaction is made. The bound record shall be maintained in chronological order by date of sale or disposition of the armor piercing ammunition, and shall be retained on the licensed premises of the licensee for a period not less than two years following the date of the recorded sale or disposition of the armor piercing ammunition. The bound record entry shall show:
</P>
<P>(1) The date of the transaction;
</P>
<P>(2) The name of the manufacturer;
</P>
<P>(3) The caliber or gauge;
</P>
<P>(4) The quantity of projectiles;
</P>
<P>(5) The name, address, and date of birth of the nonlicensee; and
</P>
<P>(6) The method used to establish the identity of the armor piercing ammunition purchaser.
</P>
<P>The format required for the bound record is as follows:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Disposition Record of Armor Piercing Ammunition
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Date
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Manufacturer
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Caliber or gauge
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Quantity of projectiles
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Purchaser
</TH><TH class="gpotbl_colhed" colspan="3" scope="col">Enter a (x) in the “known” column if purchaser is personally known to you. Otherwise, establish the purchaser's identification
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Name and address
</TH><TH class="gpotbl_colhed" scope="col">Date of birth
</TH><TH class="gpotbl_colhed" scope="col">Known
</TH><TH class="gpotbl_colhed" scope="col">Driver's license
</TH><TH class="gpotbl_colhed" scope="col">Other type (specify)
</TH></TR><TR><TD align="right" class="gpotbl_cell" colspan="9" scope="row"> </TD></TR></TABLE></DIV></DIV>
<FP>However, when a commercial record is made at the time a transaction is made, a licensee may delay making an entry into the bound record if the provisions of paragraph (d) of this section are complied with.
</FP>
<P>(b) <I>Armor piercing ammunition sales by licensed collectors to licensees.</I> Sales or other dispositions of armor piercing ammunition from a licensed collector to another licensee shall be recorded and maintained in the manner prescribed in § 478.122(b) for importers: <I>Provided,</I> That the license number of the transferee may be recorded in lieu of the transferee's address.
</P>
<P>(c) <I>Armor piercing ammunition sales by licensed dealers to governmental entities.</I> A record of armor piercing ammunition disposed of by a licensed dealer to a governmental entity pursuant to § 478.99(e) shall be maintained by the licensed dealer on the licensed premises and shall show the name of the manufacturer, the caliber or gauge, the quantity, the name and address of the entity to which the armor piercing ammunition was transferred, and the date of the transaction. Such information shall be recorded under the format prescribed by § 478.122(b). Each licensed dealer disposing of armor piercing ammunition pursuant to § 478.99(e) shall also maintain a record showing the date of acquisition of such ammunition which shall be filed in an orderly manner separate from other commercial records maintained and be readily available for inspection. The records required by this paragraph shall be retained on the licensed premises of the licensee for a period not less than two years following the date of the recorded sale or disposition of the armor piercing ammunition.
</P>
<P>(d) <I>Commercial records of armor piercing ammunition transactions.</I> When a commercial record is made at the time of sale or other disposition of armor piercing ammunition, and such record contains all information required by the bound record prescribed by paragraph (a) of this section, the licensed collector transferring the armor piercing ammunition may, for a period not exceeding 7 days following the date of such transfer, delay making the required entry into such bound record: <I>Provided,</I> That the commercial record pertaining to the transfer is:
</P>
<P>(1) Maintained by the licensed collector separate from other commercial documents maintained by such licensee, and
</P>
<P>(2) Is readily available for inspection on the licensed premises until such time as the required entry into the bound record is made.
</P>
<P>(e) <I>Firearms receipt and disposition by dealers.</I> Except for adjustment or repair of a firearm that is returned to the person from whom it was received on the same day, each licensed dealer shall enter into a record each receipt and disposition of firearms. In addition, before commencing or continuing a firearms business, each licensed dealer shall inventory the firearms possessed for such business and shall record the same in the record required by this paragraph. The record required by this paragraph shall be maintained in bound form in the format prescribed below. The purchase or other acquisition of a firearm shall, except as provided in paragraphs (g) and (i) of this section, be recorded not later than the close of the next business day following the date of such purchase or acquisition. The record shall show the date of receipt, the name and address or the name and license number of the person from whom received, the name of the manufacturer and importer (if any), the model, serial number (including any associated license number either as a prefix, or if remanufactured or imported, separated by a semicolon), type, and the caliber or gauge of the firearm. In the event the licensee records a duplicate entry with the same firearm and acquisition information, whether to close out an old record book or for any other reason, the licensee shall record a reference to the date and location of the subsequent entry (<I>e.g.,</I> date of new entry, book name/number, page number, and line number) as the disposition. The sale or other disposition of a firearm shall be recorded by the licensed dealer not later than seven days following the date of such transaction. When such disposition is made to a nonlicensee, the firearms transaction record, Form 4473, obtained by the licensed dealer shall be retained, until the transaction is recorded, separate from the licensee's Form 4473 file and be readily available for inspection. When such disposition is made to a licensee, the commercial record of the transaction shall be retained, until the transaction is recorded, separate from other commercial documents maintained by the licensed dealer, and be readily available for inspection. The record shall show the date of the sale or other disposition of each firearm, the name and address of the person to whom the firearm is transferred, or the name and license number of the person to whom transferred if such person is a licensee, or the firearms transaction record, Form 4473, transaction number if the licensed dealer transferring the firearm sequentially numbers the Forms 4473 and files them numerically. The format required for the record of receipt and disposition of firearms is as follows:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 2 to Paragraph (<E T="01">e</E>)—Firearms Dealer Acquisition and Disposition Record
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" colspan="5" scope="col">Description of firearm
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Receipt
</TH><TH class="gpotbl_colhed" colspan="3" scope="col">Disposition
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Manufacturer, importer (if any), or
<br/>“privately made firearm”
<br/>(PMF)
</TH><TH class="gpotbl_colhed" scope="col">Model
</TH><TH class="gpotbl_colhed" scope="col">Serial No.
</TH><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Caliber or gauge
</TH><TH class="gpotbl_colhed" scope="col">Date
</TH><TH class="gpotbl_colhed" scope="col">Name and address of nonlicensee;
<br/>or if licensee, name and license No.
</TH><TH class="gpotbl_colhed" scope="col">Date
</TH><TH class="gpotbl_colhed" scope="col">Name
</TH><TH class="gpotbl_colhed" scope="col">Address of nonlicensee; license No. of
<br/>licensee; or Form 4473 transaction No.
<br/>if such forms filed numerically
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR></TABLE></DIV></DIV>
<P>(f) <I>Firearms receipt and disposition by licensed collectors.</I> (1) Each licensed collector shall enter into a record each receipt and disposition of firearms curios or relics. The record required by this paragraph shall be maintained in bound form under the format prescribed below. The purchase or other acquisition of a curio or relic shall, except as provided in paragraphs (g) and (i) of this section, be recorded not later than the close of the next business day following the date of such purchase or other acquisition. The record shall show the date of receipt, the name and address or the name and license number of the person from whom received, the name of the manufacturer and importer (if any), the model, serial number (including any associated license number either as a prefix, or if remanufactured or imported, separated by a semicolon), type, and the caliber or gauge of the firearm curio or relic. In the event the licensee records a duplicate entry with the same firearm and acquisition information, whether to close out an old record book or for any other reason, the licensee shall record a reference to the date and location of the subsequent entry (<I>e.g.,</I> date of new entry, book name/number, page number, and line number) as the disposition. The sale or other disposition of a curio or relic shall be recorded by the licensed collector not later than seven days following the date of such transaction. When such disposition is made to a licensee, the commercial record of the transaction shall be retained, until the transaction is recorded, separate from other commercial documents maintained by the licensee, and be readily available for inspection. The record shall show the date of the sale or other disposition of each firearm curio or relic, the name and address of the person to whom the firearm curio or relic is transferred, or the name and license number of the person to whom transferred if such person is a licensee, and the date of birth of the transferee if other than a licensee. In addition, the licensee shall cause the transferee, if other than a licensee, to be identified in any manner customarily used in commercial transactions (<I>e.g.,</I> a driver's license), and note on the record the method used.
</P>
<P>(2) The format required for the record of receipt and disposition of firearms by collectors is as follows:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 3 to Paragraph (<E T="01">f</E>)(2)—Firearms Collector Acquisition and Disposition Record
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" colspan="5" scope="col">Description of firearm
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Receipt
</TH><TH class="gpotbl_colhed" colspan="4" scope="col">Disposition
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Manufacturer,
<br/>importer
<br/>(if any),
<br/>or “privately
<br/>made firearm”
<br/>(PMF)
</TH><TH class="gpotbl_colhed" scope="col">Model
</TH><TH class="gpotbl_colhed" scope="col">Serial No.
</TH><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Caliber or gauge
</TH><TH class="gpotbl_colhed" scope="col">Date
</TH><TH class="gpotbl_colhed" scope="col">Name and
<br/>address of
<br/>nonlicensee; or
<br/>if
<br/>licensee, name and
<br/>license No.
</TH><TH class="gpotbl_colhed" scope="col">Date
</TH><TH class="gpotbl_colhed" scope="col">Name and
<br/>address of
<br/>nonlicensee; or
<br/>if
<br/>licensee, name and
<br/>license No.
</TH><TH class="gpotbl_colhed" scope="col">Date of birth if
<br/>nonlicensee
</TH><TH class="gpotbl_colhed" scope="col">Driver's license No. or other identification if
<br/>nonlicensee
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/></TR></TABLE></DIV></DIV>
<P>(g) <I>Commercial records of firearms received.</I> When a commercial record is held by a licensed dealer or licensed collector showing the acquisition of a firearm or firearm curio or relic, and such record contains all acquisition information required by the bound record prescribed by paragraphs (e) and (f) of this section, the licensed dealer or licensed collector acquiring such firearm or curio or relic, may, for a period not exceeding 7 days following the date of such acquisition, delay making the required entry into such bound record: <I>Provided,</I> That the commercial record is, until such time as the required entry into the bound record is made, (1) maintained by the licensed dealer or licensed collector separate from other commercial documents maintained by such licensee, and (2) readily available for inspection on the licensed premises: <I>Provided further,</I> That when disposition is made of a firearm or firearm curio or relic not entered in the bound record under the provisions of this paragraph, the licensed dealer or licensed collector making such disposition shall enter all required acquisition information regarding the firearm or firearm curio or relic in the bound record at the time such transfer or disposition is made.
</P>
<P>(h) <I>Alternate records.</I> Notwithstanding the provisions of paragraphs (a), (e), and (f) of this section, the Director of Industry Operations may authorize alternate records to be maintained by a licensed dealer or licensed collector to record the acquisition and disposition of firearms or curios or relics and the disposition of armor piercing ammunition when it is shown by the licensed dealer or the licensed collector that such alternate records will accurately and readily disclose the required information. A licensed dealer or licensed collector who proposes to use alternate records shall submit a letter application, in duplicate, to the Director of Industry Operations and shall describe the proposed alternate records and the need therefor. Such alternate records shall not be employed by the licensed dealer or licensed collector until approval in such regard is received from the Director of Industry Operations.
</P>
<P>(i) <I>Privately made firearms.</I> Except for adjustment or repair of a firearm that is returned to the person from whom it was received on the same day, licensees must record each receipt or other acquisition (including from a personal collection) and disposition (including to a personal collection) of a privately made firearm within the timeframe required by paragraph (e) of this section for firearms. For purposes of this paragraph, the terms “receipt” and “acquisition” shall include same-day or on-the-spot placement of identifying markings unless another licensee is placing the markings for, and under the direct supervision of, the licensee who recorded the acquisition. In that case, the licensee placing the markings need not record an acquisition from the supervising licensee or disposition upon return. The serial number need not be immediately recorded if the firearm is being identified by the licensee, or under the licensee's direct supervision with the licensee's serial number, in accordance with § 478.92(a)(2). Once the privately made firearm is so identified, the licensee shall update the record of acquisition entry with the serial number, including the license number prefix, and shall record its disposition in accordance with this section. In this part and part 447, where no manufacturer name has been identified on a privately made firearm (if privately made in the United States), the words “privately made firearm” (or abbreviation “PMF”) shall be recorded as the name of the manufacturer.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0032)
</APPRO>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10503, Mar. 31, 1988, as amended by T.D. ATF-273, 53 FR 24687, June 30, 1988; T.D. ATF-313, 56 FR 32508, July 17, 1991; T.D. ATF-389, 62 FR 19445, Apr. 21, 1997; ATF-11F, 73 FR 57241, Oct. 2, 2008; ATF-22I, 77 FR 33634, June 7, 2012; ATF-19 F, 79 FR 45092, Aug. 4, 2014; ATF 2015R-26, 81 FR 38071, June 13, 2016; ATF-2021R-05F, 87 FR 24745, Apr. 26, 2022; 87 FR 51250, Aug. 22, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 478.125a" NODE="27:3.0.1.2.3.8.1.6" TYPE="SECTION">
<HEAD>§ 478.125a   Personal firearms collection.</HEAD>
<P>(a) Notwithstanding any other provision of this subpart, a licensed manufacturer, licensed importer, or licensed dealer is not required to comply with the provisions of § 478.102 or record on a firearms transaction record, Form 4473, the sale or other disposition of a firearm maintained as part of the licensee's personal firearms collection: <I>Provided,</I> That
</P>
<P>(1) The licensee has maintained the firearm as part of such collection for 1 year from the date the firearm was transferred from the business inventory into the personal collection or otherwise acquired as a personal firearm,
</P>
<P>(2) The licensee recorded in the bound record prescribed by § 478.122(a), § 478.123(a), or § 478.125(e) the receipt of the firearm into the business inventory or other acquisition,
</P>
<P>(3) The licensee recorded the firearm as a disposition in the bound record prescribed by § 478.122(a), § 478.123(a), or § 478.125(e) when the firearm was transferred from the business inventory into the personal firearms collection or otherwise acquired as a personal firearm, and
</P>
<P>(4) The licensee enters the sale or other disposition of the firearm from the personal firearms collection into a bound record, under the format prescribed below, identifying the firearm transferred by recording the name of the manufacturer and importer (if any), the model, serial number (including any associated license number either as a prefix, or if remanufactured or imported, separated by a semicolon), type, and the caliber or gauge, and showing the date of the sale or other disposition, the name and address of the transferee, or the name and business address of the transferee if such person is a licensee, and the date of birth of the transferee if other than a licensee. In addition, the licensee shall cause the transferee, if other than a licensee, to be identified in any manner customarily used in commercial transactions (e.g., a drivers license). Where no manufacturer name has been identified on a privately made firearm, the words “privately made firearm” (or abbreviation “PMF”) shall be recorded as the name of the manufacturer. The format required for the disposition record of personal firearms is as follows:
</P>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Table 1 to Paragraph (<E T="01">a</E>)(4)—Disposition Record of Personal Firearms
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" colspan="5" scope="col">Description of firearm
</TH><TH class="gpotbl_colhed" colspan="3" scope="col">Disposition
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Manufacturer, importer (if any), or “privately made
<br/>firearm” (PMF)
</TH><TH class="gpotbl_colhed" scope="col">Model
</TH><TH class="gpotbl_colhed" scope="col">Serial No.
</TH><TH class="gpotbl_colhed" scope="col">Type
</TH><TH class="gpotbl_colhed" scope="col">Caliber or gauge
</TH><TH class="gpotbl_colhed" scope="col">Date
</TH><TH class="gpotbl_colhed" scope="col">Name and address
<br/>(business address if licensee)
</TH><TH class="gpotbl_colhed" scope="col">Date of birth
<br/>if nonlicensee
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> </TD><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/><TD align="left" class="gpotbl_cell"/><TD align="right" class="gpotbl_cell"/></TR></TABLE></DIV></DIV>
<P>(b) Any licensed manufacturer, licensed importer, or licensed dealer selling or otherwise disposing of a firearm from the licensee's personal firearms collection under this section shall be subject to the restrictions imposed by the Act and this part on the dispositions of firearms by persons other than licensed manufacturers, licensed importers, and licensed dealers.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0032)
</APPRO>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10504, Mar. 31, 1988, as amended by T.D. ATF-313, 56 FR 32509, July 17, 1991; T.D. ATF-415, 63 FR 58280, Oct. 29, 1998; ATF-11F, 73 FR 57242, Oct. 2, 2008; ATF 2015R-26, 81 FR 38071, June 13, 2016; ATF-2021R-05F, 87 FR 24746, Apr. 26, 2022; ATF 2022R-17, 89 FR 29093, Apr. 19, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 478.126" NODE="27:3.0.1.2.3.8.1.7" TYPE="SECTION">
<HEAD>§ 478.126   Furnishing transaction information.</HEAD>
<P>(a) Each licensee shall, when required by letter issued by the Director of Industry Operations, and until notified to the contrary in writing by such officer, submit on Form 5300.5, Report of Firearms Transactions, for the periods and at the times specified in the letter issued by the Director of Industry Operations, all record information required by this subpart, or such lesser record information as the Director of Industry Operations in his letter may specify.
</P>
<P>(b) The Director of Industry Operations may authorize the information to be submitted in a manner other than that prescribed in paragraph (a) of this section when it is shown by a licensee that an alternate method of reporting is reasonably necessary and will not unduly hinder the effective administration of this part. A licensee who proposes to use an alternate method of reporting shall submit a letter application, in duplicate, to the Director of Industry Operations and shall describe the proposed alternate method of reporting and the need therefor. An alternate method of reporting shall not be employed by the licensee until approval in such regard is received from the Director of Industry Operations.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0032)
</APPRO>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14942, Apr. 16, 1984; ATF-11F, 73 FR 57242, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 478.126a" NODE="27:3.0.1.2.3.8.1.8" TYPE="SECTION">
<HEAD>§ 478.126a   Reporting multiple sales or other disposition of pistols and revolvers.</HEAD>
<P>Each licensee shall prepare a report of multiple sales or other disposition whenever the licensee sells or otherwise disposes of, at one time or during any five consecutive business days, two or more pistols, or revolvers, or any combination of pistols and revolvers totaling two or more, to an unlicensed person: <I>Provided,</I> That a report need not be made where pistols or revolvers, or any combination thereof, are returned to the same person from whom they were received. The report shall be prepared on Form 3310.4, Report of Multiple Sale or Other Disposition of Pistols and Revolvers. Not later than the close of business on the day that the multiple sale or other disposition occurs, the licensee shall forward two copies of Form 3310.4 to the ATF office specified thereon and one copy to the State police or to the local law enforcement agency in which the sale or other disposition took place. Where the State or local law enforcement officials have notified the licensee that a particular official has been designated to receive Forms 3310.4, the licensee shall forward such forms to that designated official. The licensee shall retain one copy of Form 3310.4 and attach it to the firearms transaction record, Form 4473, executed upon delivery of the pistols or revolvers.
</P>
<EXAMPLE>
<HED>Example. 1.</HED><PSPACE>A licensee sells a pistol and revolver in a single transaction to an unlicensed person. This is a multiple sale and must be reported not later than the close of business on the date of the transaction.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example. 2.</HED><PSPACE>A licensee sells a pistol on Monday and sells a revolver on the following Friday to the same unlicensed person. This is a multiple sale and must be reported not later than the close of business on Friday. If the licensee sells the same unlicensed person another pistol or revolver on the following Monday, this would constitute an additional multiple sale and must also be reported.</PSPACE></EXAMPLE>
<EXAMPLE>
<HED>Example 3.</HED><PSPACE>A licensee maintaining business hours on Monday through Saturday sells a revolver to an unlicensed person on Monday and sells another revolver to the same person on the following Saturday. This does not constitute a multiple sale and need not be reported since the sales did not occur during five consecutive business days.</PSPACE></EXAMPLE>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0003)
</APPRO>
<CITA TYPE="N">[T.D. ATF-16, 40 FR 19202, May 2, 1975, as amended by T.D. ATF-172, 49 FR 14942, Apr. 16, 1984; T.D. ATF-270, 53 FR 10505, Mar. 31, 1988; T.D. ATF-354, 59 FR 7113, Feb. 14, 1994; T.D. ATF-361, 60 FR 10787, Feb. 27, 1995; ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.127" NODE="27:3.0.1.2.3.8.1.9" TYPE="SECTION">
<HEAD>§ 478.127   Discontinuance of business.</HEAD>
<P>Where a licensed business is discontinued and succeeded by a new licensee, the records prescribed by this subpart shall appropriately reflect such facts and shall be delivered to the successor. Where discontinuance of the business is absolute, the records shall be delivered within 30 days following the business discontinuance to the ATF Out-of-Business Records Center, 244 Needy Road, Martinsburg, West Virginia 25405, or to any ATF office in the division in which the business was located: <I>Provided, however,</I> Where State law or local ordinance requires the delivery of records to other responsible authority, the Chief, Federal Firearms Licensing Center may arrange for the delivery of the records required by this subpart to such authority: <I>Provided further,</I> That where a licensed business is discontinued and succeeded by a new licensee, the records may be delivered within 30 days following the business discontinuance to the ATF Out-of-Business Records Center or to any ATF office in the division in which the business was located.
</P>
<CITA TYPE="N">[T.D. ATF-290, 54 FR 53055, Dec. 27, 1989, as amended by T.D. ATF-363, 60 FR 17455, Apr. 6, 1995; ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.128" NODE="27:3.0.1.2.3.8.1.10" TYPE="SECTION">
<HEAD>§ 478.128   False statement or representation.</HEAD>
<P>(a) Any person who knowingly makes any false statement or representation in applying for any license or exemption or relief from disability, under the provisions of the Act, shall be fined not more than $5,000 or imprisoned not more than 5 years, or both.
</P>
<P>(b) Any person other than a licensed manufacturer, licensed importer, licensed dealer, or licensed collector who knowingly makes any false statement or representation with respect to any information required by the provisions of the Act or this part to be kept in the records of a person licensed under the Act or this part shall be fined not more than $5,000 or imprisoned not more than 5 years, or both.
</P>
<P>(c) Any licensed manufacturer, licensed importer, licensed dealer, or licensed collector who knowingly makes any false statement or representation with respect to any information required by the provisions of the Act or this part to be kept in the records of a person licensed under the Act or this part shall be fined not more than $1,000 or imprisoned not more than 1 year, or both.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10505, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.129" NODE="27:3.0.1.2.3.8.1.11" TYPE="SECTION">
<HEAD>§ 478.129   Record retention.</HEAD>
<P>(a) <I>Records prior to Act.</I> Licensed importers and licensed manufacturers may dispose of records of sale or other disposition of firearms prior to December 16, 1968. Licensed dealers and licensed collectors may dispose of all records of firearms transactions that occurred prior to December 16, 1968.
</P>
<P>(b) <I>Firearms Transaction Record.</I> Licensees shall retain each Form 4473 until business or licensed activity is discontinued, either on paper, or in an electronic alternate method approved by the Director, at the business premises readily accessible for inspection under this part. Paper forms over 20 years of age may be stored at a separate warehouse, which shall be considered part of the business premises for this purpose and subject to inspection under this part. Forms 4473 shall be retained in the licensee's records as provided in § 478.124(b), provided that Forms 4473 with respect to which a sale, delivery, or transfer did not take place shall be separately retained in alphabetical (by name of transferee) or chronological (by date of transferee's certification) order.
</P>
<P>(c) <I>Statement of intent to obtain a handgun, reports of multiple sales or other disposition of pistols and revolvers, and reports of theft or loss of firearms.</I> Licensees shall retain each Form 5300.35 (Statement of Intent to Obtain a Handgun(s)) for a period of not less than 5 years after notice of the intent to obtain the handgun was forwarded to the chief law enforcement officer, as defined in § 478.150(c). Licensees shall retain each copy of Form 3310.4 (Report of Multiple Sale or Other Disposition of Pistols and Revolvers) for a period of not less than 5 years after the date of sale or other disposition. Licensees shall retain each copy of Form 3310.11 (Federal Firearms Licensee Theft/Loss Report) for a period of not less than 5 years after the date the theft or loss was reported to ATF.
</P>
<P>(d) <I>Records of importation and manufacture.</I> Licensees shall maintain records of the importation, manufacture, or other acquisition of firearms, including ATF Forms 6 and 6A as required by subpart G of this part, until business or licensed activity is discontinued. Licensed importers' records and licensed manufacturers' records of the sale or other disposition of firearms after December 15, 1968, shall be retained until business is discontinued, either on paper or in an electronic alternate method approved by the Director, at the business premises readily accessible for inspection under this part. Paper records that do not contain any open disposition entries and with no dispositions recorded within 20 years may be stored at a separate warehouse, which shall be considered part of the business premises for this purpose and subject to inspection under this part.
</P>
<P>(e) <I>Records of dealers and collectors.</I> The records prepared by licensed dealers and licensed collectors of the sale or other disposition of firearms and the corresponding record of receipt of such firearms shall be retained until business or licensed activity is discontinued, either on paper, or in an electronic alternate method approved by the Director, at the business or collection premises readily accessible for inspection under this part. Paper records that do not contain any open disposition entries and with no dispositions recorded within 20 years may be stored at a separate warehouse, which shall be considered part of the business or collection premises for this purpose and subject to inspection under this part.
</P>
<P>(f) <I>Retention of records of transactions in semiautomatic assault weapons.</I> The documentation required by §§ 478.40(c) and 478.132 shall be retained in the licensee's permanent records for a period of not less than 5 years after the date of sale or other disposition.
</P>
<APPRO TYPE="N">(Paragraph (b) approved by the Office of Management and Budget under control number 1512-0544; Paragraph (c) approved by the Office of Management and Budget under control numbers 1512-0520, 1512-0006, and 1512-0524; Paragraph (f) approved by the Office of Management and Budget under control number 1512-0526; all other recordkeeping approved by the Office of Management and Budget under control number 1512-0129)
</APPRO>
<CITA TYPE="N">[T.D. ATF-208, 50 FR 26704, June 28, 1985 and correctly designated at 50 FR 35081, Aug. 29, 1985, as amended by T.D. ATF-273, 53 FR 24687, June 30, 1988; T.D. ATF-361, 60 FR 10787, Feb. 27, 1995; T.D. ATF-363, 60 FR 17455, Apr. 6, 1995; T.D. ATF-415, 63 FR 58280, Oct. 29, 1998; T.D. ATF-426, 65 FR 38201, June 20, 2000; ATF-2021R-05F, 87 FR 24746, Apr. 26, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 478.131" NODE="27:3.0.1.2.3.8.1.12" TYPE="SECTION">
<HEAD>§ 478.131   Firearms transactions not subject to a NICS check.</HEAD>
<P>(a)(1) A licensed importer, licensed manufacturer, or licensed dealer whose sale, delivery, or transfer of a firearm is made pursuant to the alternative provisions of § 478.102(d) and is not subject to the NICS check prescribed by § 478.102(a) shall maintain the records required by paragraph (a) of this section.
</P>
<P>(2) If the transfer is pursuant to a permit or license in accordance with § 478.102(d)(1), the licensee shall either retain a copy of the purchaser's permit or license and attach it to the firearms transaction record, Form 4473, or record on the firearms transaction record, Form 4473, any identifying number, the date of issuance, and the expiration date (if provided) from the permit or license.
</P>
<P>(3) If the transfer is pursuant to a certification by ATF in accordance with §§ 478.102(d)(3) and 478.150, the licensee shall maintain the certification as part of the records required to be kept under this subpart and for the period prescribed for the retention of Form 5300.35 in § 478.129(c).
</P>
<P>(b) The requirements of this section shall be in addition to any other recordkeeping requirements contained in this part.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0045)
</APPRO>
<CITA TYPE="N">[T.D. ATF-415, 63 FR 58280, Oct. 29, 1998, as amended by ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.132" NODE="27:3.0.1.2.3.8.1.13" TYPE="SECTION">
<HEAD>§ 478.132   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 478.133" NODE="27:3.0.1.2.3.8.1.14" TYPE="SECTION">
<HEAD>§ 478.133   Records of transactions in semiautomatic assault weapons.</HEAD>
<P>The evidence specified in § 478.40(c), relating to transactions in semiautomatic assault weapons, shall be retained in the permanent records of the manufacturer or dealer and in the records of the licensee to whom the weapons are transferred.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0041)
</APPRO>
<CITA TYPE="N">[T.D. ATF-363, 60 FR 17455, Apr. 6, 1995, as amended by ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.134" NODE="27:3.0.1.2.3.8.1.15" TYPE="SECTION">
<HEAD>§ 478.134   Sale of firearms to law enforcement officers.</HEAD>
<P>(a) Law enforcement officers purchasing firearms for official use who provide the licensee with a certification on agency letterhead, signed by a person in authority within the agency (other than the officer purchasing the firearm), stating that the officer will use the firearm in official duties and that a records check reveals that the purchasing officer has no convictions for misdemeanor crimes of domestic violence are not required to complete Form 4473 or Form 5300.35. The law enforcement officer purchasing the firearm may purchase a firearm from a licensee in another State, regardless of where the officer resides or where the agency is located.
</P>
<P>(b)(1) The following individuals are considered to have sufficient authority to certify that law enforcement officers purchasing firearms will use the firearms in the performance of official duties:
</P>
<P>(i) In a city or county police department, the director of public safety or the chief or commissioner of police.
</P>
<P>(ii) In a sheriff's office, the sheriff.
</P>
<P>(iii) In a State police or highway patrol department, the superintendent or the supervisor in charge of the office to which the State officer or employee is assigned.
</P>
<P>(iv) In Federal law enforcement offices, the supervisor in charge of the office to which the Federal officer or employee is assigned.
</P>
<P>(2) An individual signing on behalf of the person in authority is acceptable, provided there is a proper delegation of authority.
</P>
<P>(c) Licensees are not required to prepare a Form 4473 or Form 5300.35 covering sales of firearm made in accordance with paragraph (a) of this section to law enforcement officers for official use. However, disposition to the officer must be entered into the licensee's permanent records, and the certification letter must be retained in the licensee's files.
</P>
<CITA TYPE="N">[T.D. ATF-401, 63 FR 35523, June 30, 1998]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:3.0.1.2.3.9" TYPE="SUBPART">
<HEAD>Subpart I—Exemptions, Seizures, and Forfeitures</HEAD>


<DIV8 N="§ 478.141" NODE="27:3.0.1.2.3.9.1.1" TYPE="SECTION">
<HEAD>§ 478.141   General.</HEAD>
<P>With the exception of §§ 478.32(a)(9) and (d)(9) and 478.99(c)(9), the provisions of this part shall not apply with respect to:
</P>
<P>(a) The transportation, shipment, receipt, possession, or importation of any firearm or ammunition imported for, sold or shipped to, or issued for the use of, the United States or any department or agency thereof or any State or any department, agency, or political subdivision thereof.
</P>
<P>(b) The shipment or receipt of firearms or ammunition when sold or issued by the Secretary of the Army pursuant to section 4308 of Title 10, U.S.C., and the transportation of any such firearm or ammunition carried out to enable a person, who lawfully received such firearm or ammunition from the Secretary of the Army, to engage in military training or in competitions.
</P>
<P>(c) The shipment, unless otherwise prohibited by the Act or any other Federal law, by a licensed importer, licensed manufacturer, or licensed dealer to a member of the U.S. Armed Forces on active duty outside the United States or to clubs, recognized by the Department of Defense, whose entire membership is composed of such members of the U.S. Armed Forces, and such members or clubs may receive a firearm or ammunition determined by the Director to be generally recognized as particularly suitable for sporting purposes and intended for the personal use of such member or club. Before making a shipment of firearms or ammunition under the provisions of this paragraph, a licensed importer, licensed manufacturer, or licensed dealer may submit a written request, in duplicate, to the Director for a determination by the Director whether such shipment would constitute a violation of the Act or any other Federal law, or whether the firearm or ammunition is considered by the Director to be generally recognized as particularly suitable for sporting purposes.
</P>
<P>(d) The transportation, shipment, receipt, possession, or importation of any antique firearm.
</P>
<CITA TYPE="N">[33 FR 18555, Dec. 14, 1968. Redesignated at 40 FR 10835, Apr. 15, 1975, and amended by T.D. ATF-241, 51 FR 39628, Oct. 29, 1986; T.D. ATF-270, 53 FR 10505, Mar. 31, 1988; T.D. ATF-313, 56 FR 32509, July 17, 1991; T.D. ATF-401, 63 FR 35523, June 30, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 478.142" NODE="27:3.0.1.2.3.9.1.2" TYPE="SECTION">
<HEAD>§ 478.142   Effect of pardons and expunctions of convictions.</HEAD>
<P>(a) A pardon granted by the President of the United States regarding a Federal conviction for a crime punishable by imprisonment for a term exceeding 1 year shall remove any disability which otherwise would be imposed by the provisions of this part with respect to that conviction.
</P>
<P>(b) A pardon granted by the Governor of a State or other State pardoning authority or by the pardoning authority of a foreign jurisdiction with respect to a conviction, or any expunction, reversal, setting aside of a conviction, or other proceeding rendering a conviction nugatory, or a restoration of civil rights shall remove any disability which otherwise would be imposed by the provisions of this part with respect to the conviction, unless:
</P>
<P>(1) The pardon, expunction, setting aside, or other proceeding rendering a conviction nugatory, or restoration of civil rights expressly provides that the person may not ship, transport, possess or receive firearms; or
</P>
<P>(2) The pardon, expunction, setting aside, or other proceeding rendering a conviction nugatory, or restoration of civil rights did not fully restore the rights of the person to possess or receive firearms under the law of the jurisdiction where the conviction occurred.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10505, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.143" NODE="27:3.0.1.2.3.9.1.3" TYPE="SECTION">
<HEAD>§ 478.143   Relief from disabilities incurred by indictment.</HEAD>
<P>A licensed importer, licensed manufacturer, licensed dealer, or licensed collector who is indicted for a crime punishable by imprisonment for a term exceeding 1 year may, notwithstanding any other provision of the Act, continue operations pursuant to his existing license during the term of such indictment and until any conviction pursuant to the indictment becomes final: <I>Provided,</I> That if the term of the license expires during the period between the date of the indictment and the date the conviction thereunder becomes final, such importer, manufacturer, dealer, or collector must file a timely application for the renewal of his license in order to continue operations. Such application shall show that the applicant is under indictment for a crime punishable by imprisonment for a term exceeding 1 year.




</P>
</DIV8>


<DIV8 N="§ 478.144" NODE="27:3.0.1.2.3.9.1.4" TYPE="SECTION">
<HEAD>§ 478.144   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 478.145" NODE="27:3.0.1.2.3.9.1.5" TYPE="SECTION">
<HEAD>§ 478.145   Research organizations.</HEAD>
<P>The provisions of § 478.98 with respect to the sale or delivery of destructive devices, machine guns, short-barreled shotguns, and short-barreled rifles shall not apply to the sale or delivery of such devices and weapons to any research organization designated by the Director to receive same. A research organization desiring such designation shall submit a letter application, in duplicate, to the Director. Such application shall contain the name and address of the research organization, the names and addresses of the persons directing or controlling, directly or indirectly, the policies and management of such organization, the nature and purpose of the research being conducted, a description of the devices and weapons to be received, and the identity of the person or persons from whom such devices and weapons are to be received.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.146" NODE="27:3.0.1.2.3.9.1.6" TYPE="SECTION">
<HEAD>§ 478.146   Deliveries by mail to certain persons.</HEAD>
<P>The provisions of this part shall not be construed as prohibiting a licensed importer, licensed manufacturer, or licensed dealer from depositing a firearm for conveyance in the mails to any officer, employee, agent, or watchman who, pursuant to the provisions of section 1715 of title 18, U.S.C., is eligible to receive through the mails pistols, revolvers, and other firearms capable of being concealed on the person, for use in connection with his official duties.


</P>
</DIV8>


<DIV8 N="§ 478.147" NODE="27:3.0.1.2.3.9.1.7" TYPE="SECTION">
<HEAD>§ 478.147   Return of firearm.</HEAD>
<P>A person not otherwise prohibited by Federal, State or local law may ship a firearm to a licensed importer, licensed manufacturer, or licensed dealer for any lawful purpose, and, notwithstanding any other provision of this part, the licensed manufacturer, licensed importer, or licensed dealer may return in interstate or foreign commerce to that person the firearm or a replacement firearm of the same kind and type. See § 478.124(a) for requirements of a Form 4473 prior to return. A person not otherwise prohibited by Federal, State or local law may ship a firearm curio or relic to a licensed collector for any lawful purpose, and, notwithstanding any other provision of this part, the licensed collector may return in interstate or foreign commerce to that person the firearm curio or relic.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.148" NODE="27:3.0.1.2.3.9.1.8" TYPE="SECTION">
<HEAD>§ 478.148   Armor piercing ammunition intended for sporting or industrial purposes.</HEAD>
<P>The Director may exempt certain armor piercing ammunition from the requirements of this part. A person who desires to obtain an exemption under this section for any such ammunition which is primarily intended for sporting purposes or intended for industrial purposes, including charges used in oil and gas well perforating devices, shall submit a written request to the Director. Each request shall be executed under the penalties of perjury and contain a complete and accurate description of the ammunition, the name and address of the manufacturer or importer, the purpose of and use for which it is designed and intended, and any photographs, diagrams, or drawings as may be necessary to enable the Director to make a determination. The Director may require that a sample of the ammunition be submitted for examination and evaluation.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.149" NODE="27:3.0.1.2.3.9.1.9" TYPE="SECTION">
<HEAD>§ 478.149   Armor piercing ammunition manufactured or imported for the purpose of testing or experimentation.</HEAD>
<P>The provisions of §§ 478.37 and 478.99(d) with respect to the manufacture or importation of armor piercing ammunition and the sale or delivery of armor piercing ammunition by manufacturers and importers shall not apply to the manufacture, importation, sale or delivery of armor piercing ammunition for the purpose of testing or experimentation as authorized by the Director. A person desiring such authorization to receive armor piercing ammunition shall submit a letter application, in duplicate, to the Director. Such application shall contain the name and addresses of the persons directing or controlling, directly or indirectly, the policies and management of the applicant, the nature or purpose of the testing or experimentation, a description of the armor piercing ammunition to be received, and the identity of the manufacturer or importer from whom such ammunition is to be received. The approved application shall be submitted to the manufacturer or importer who shall retain a copy as part of the records required by subpart H of this part.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 478.150" NODE="27:3.0.1.2.3.9.1.10" TYPE="SECTION">
<HEAD>§ 478.150   Alternative to NICS in certain geographical locations.</HEAD>
<P>(a) The provisions of § 478.102(d)(3) shall be applicable when the Director has certified that compliance with the provisions of § 478.102(a)(1) is impracticable because:
</P>
<P>(1) The ratio of the number of law enforcement officers of the State in which the transfer is to occur to the number of square miles of land area of the State does not exceed 0.0025;
</P>
<P>(2) The business premises of the licensee at which the transfer is to occur are extremely remote in relation to the chief law enforcement officer; and
</P>
<P>(3) There is an absence of telecommunications facilities in the geographical area in which the business premises are located.
</P>
<P>(b) A licensee who desires to obtain a certification under this section shall submit a written request to the Director. Each request shall be executed under the penalties of perjury and contain information sufficient for the Director to make such certification. Such information shall include statistical data, official reports, or other statements of government agencies pertaining to the ratio of law enforcement officers to the number of square miles of land area of a State and statements of government agencies and private utility companies regarding the absence of telecommunications facilities in the geographical area in which the licensee's business premises are located.
</P>
<P>(c) For purposes of this section and § 478.129(c), the “chief law enforcement officer” means the chief of police, the sheriff, or an equivalent officer or the designee of any such individual.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0045)
</APPRO>
<CITA TYPE="N">[T.D. ATF-415, 63 FR 58280, Oct. 29, 1998, as amended by ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.151" NODE="27:3.0.1.2.3.9.1.11" TYPE="SECTION">
<HEAD>§ 478.151   Semiautomatic rifles or shotguns for testing or experimentation.</HEAD>
<P>(a) The provisions of § 478.39 shall not apply to the assembly of semiautomatic rifles or shotguns for the purpose of testing or experimentation as authorized by the Director.
</P>
<P>(b) A person desiring authorization to assemble nonsporting semiautomatic rifles or shotguns shall submit a written request, in duplicate, to the Director. Each such request shall be executed under the penalties of perjury and shall contain a complete and accurate description of the firearm to be assembled, and such diagrams or drawings as may be necessary to enable the Director to make a determination. The Director may require the submission of the firearm parts for examination and evaluation. If the submission of the firearm parts is impractical, the person requesting the authorization shall so advise the Director and designate the place where the firearm parts will be available for examination and evaluation.
</P>
<APPRO TYPE="N">(Paragraph (b) approved by the Office of Management and Budget under control number 1140-0037)
</APPRO>
<CITA TYPE="N">[T.D. ATF-346, 58 FR 40590, July 29, 1993, as amended by ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 478.152" NODE="27:3.0.1.2.3.9.1.12" TYPE="SECTION">
<HEAD>§ 478.152   Seizure and forfeiture.</HEAD>
<P>(a) Any firearm or ammunition involved in or used in any knowing violation of subsections (a)(4), (a)(6), (f), (g), (h), (i), (j), or (k) of section 922 of the Act, or knowing importation or bringing into the United States or any possession thereof any firearm or ammunition in violation of section 922(l) of the Act, or knowing violation of section 924 of the Act, or willful violation of any other provision of the Act or of this part, or any violation of any other criminal law of the United States, or any firearm or ammunition intended to be used in any offense referred to in paragraph (c) of this section, where such intent is demonstrated by clear and convincing evidence, shall be subject to seizure and forfeiture, and all provisions of the Internal Revenue Code of 1986 relating to the seizure, forfeiture, and disposition of firearms, as defined in section 5845(a) of that Code, shall, so far as applicable, extend to seizures and forfeitures under the provisions of the Act: <I>Provided,</I> That upon acquittal of the owner or possessor, or dismissal of the charges against such person other than upon motion of the Government prior to trial, or lapse of or court termination of the restraining order to which he is subject, the seized or relinquished firearms or ammunition shall be returned forthwith to the owner or possessor or to a person delegated by the owner or possessor unless the return of the firearms or ammunition would place the owner or possessor or the delegate of the owner or possessor in violation of law. Any action or proceeding for the forfeiture of firearms or ammunition shall be commenced within 120 days of such seizure.
</P>
<P>(b) Only those firearms or quantities of ammunition particularly named and individually identified as involved in or used in any violation of the provisions of the Act or this part, or any other criminal law of the United States or as intended to be used in any offense referred to in paragraph (c) of this section, where such intent is demonstrated by clear and convincing evidence, shall be subject to seizure, forfeiture and disposition.
</P>
<P>(c) The offenses referred to in paragraphs (a) and (b) of this section for which firearms and ammunition intended to be used in such offenses are subject to seizure and forfeiture are:
</P>
<P>(1) Any crime of violence, as that term is defined in section 924(c)(3) of the Act;
</P>
<P>(2) Any offense punishable under the Controlled Substances Act (21 U.S.C. 801 <I>et seq.</I>) or the Controlled Substances Import and Export Act (21 U.S.C. 951 <I>et seq.</I>);
</P>
<P>(3) Any offense described in section 922(a)(1), 922(a)(3), 922(a)(5), or 922(b)(3) of the Act, where the firearm or ammunition intended to be used in such offense is involved in a pattern of activities which includes a violation of any offense described in section 922(a)(1), 922(a)(3), 922(a)(5), or 922(b)(3) of the Act;
</P>
<P>(4) Any offense described in section 922(d) of the Act where the firearm or ammunition is intended to be used in such offense by the transferor of such firearm or ammunition;
</P>
<P>(5) Any offense described in section 922(i), 922(j), 922(l), 922(n), or 924(b) of the Act; and
</P>
<P>(6) Any offense which may be prosecuted in a court of the United States which involves the exportation of firearms or ammunition.
</P>
<P>(d) Any person convicted of a violation of section 932 or 933 of the Act shall forfeit to the United States, irrespective of any provision of State law—
</P>
<P>(1) Any property constituting, or derived from, any proceeds the person obtained, directly or indirectly, as the result of such violation; and
</P>
<P>(2) Any of the person's property used, or intended to be used, in any manner or part, to commit, or to facilitate the commission of, such violation, except that for any forfeiture of any firearm or ammunition pursuant to this section, 18 U.S.C. 924(d) shall apply.
</P>
<P>(e) A defendant who derives profits or other proceeds from an offense under section 932 or 933 of the Act may be fined not more than the greater of—
</P>
<P>(1) The fine otherwise authorized by part I of title 18 of the U.S. Code; or
</P>
<P>(2) The amount equal to twice the gross profits or other proceeds of the offense under section 932 or 933.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988; Redesignated by T.D. ATF-354, 59 FR 7114, Feb. 14, 1994, and further redesignated by T.D. ATF-361, 60 FR 10788, Feb. 27, 1995; T.D. ATF-363, 60 FR 17455, Apr. 6, 1995; ATF 2022R-09, 89 FR 28632, Apr. 19, 2024]


</CITA>
</DIV8>


<DIV8 N="§ 478.153" NODE="27:3.0.1.2.3.9.1.13" TYPE="SECTION">
<HEAD>§ 478.153   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:3.0.1.2.3.10" TYPE="SUBPART">
<HEAD>Subpart J [Reserved]</HEAD>

</DIV6>


<DIV6 N="K" NODE="27:3.0.1.2.3.11" TYPE="SUBPART">
<HEAD>Subpart K—Exportation</HEAD>


<DIV8 N="§ 478.171" NODE="27:3.0.1.2.3.11.1.1" TYPE="SECTION">
<HEAD>§ 478.171   Exportation.</HEAD>
<P>Firearms and ammunition shall be exported in accordance with the applicable provisions of section 38 of the Arms Export Control Act (22 U.S.C. 2778) and regulations thereunder. However, licensed manufacturers, licensed importers, and licensed dealers exporting firearms shall maintain records showing the manufacture or acquisition of the firearms as required by this part and records showing the name and address of the foreign consignee of the firearms and the date the firearms were exported. Licensed manufacturers and licensed importers exporting armor piercing ammunition shall maintain records showing the name and address of the foreign consignee and the date the armor piercing ammunition was exported.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10507, Mar. 31, 1988; T.D. ATF-363, 60 FR 17456, Apr. 6, 1995; ATF 2014R-42, 84 FR 12094, Apr. 1, 2019; ATF 2019R-03, 84 FR 60334, Nov. 8, 2019]


</CITA>
</DIV8>

</DIV6>

</DIV5>


<DIV5 N="479" NODE="27:3.0.1.2.4" TYPE="PART">
<HEAD>PART 479—MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER FIREARMS
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>26 U.S.C. 5801-5822; 26 U.S.C. 7801; 26 U.S.C. 7805.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>36 FR 14256, Aug. 3, 1971, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. ATF-487, 68 FR 3752, Jan. 24, 2003.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 479 appear by T.D. ATF-487, 68 FR 3752, Jan. 24, 2003.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:3.0.1.2.4.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope of Regulations</HEAD>


<DIV8 N="§ 479.1" NODE="27:3.0.1.2.4.1.16.1" TYPE="SECTION">
<HEAD>§ 479.1   General.</HEAD>
<P>This part contains the procedural and substantive requirements relative to the importation, manufacture, making, exportation, identification and registration of, and the dealing in, machine guns, destructive devices and certain other firearms under the provisions of the National Firearms Act (26 U.S.C. Chapter 53).
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:3.0.1.2.4.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 479.11" NODE="27:3.0.1.2.4.2.16.1" TYPE="SECTION">
<HEAD>§ 479.11   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude other things not enumerated which are in the same general class or are otherwise within the scope thereof.
</P>
<P><I>Antique firearm.</I> Any firearm not designed or redesigned for using rim fire or conventional center fire ignition with fixed ammunition and manufactured in or before 1898 (including any matchlock, flintlock, percussion cap, or similar type of ignition system or replica thereof, whether actually manufactured before or after the year 1898) and also any firearm using fixed ammunition manufactured in or before 1898, for which ammunition is no longer manufactured in the United States and is not readily available in the ordinary channels of commercial trade.
</P>
<P><I>Any other weapon.</I> Any weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, a pistol or revolver having a barrel with a smooth bore designed or redesigned to fire a fixed shotgun shell, weapons with combination shotgun and rifle barrels 12 inches or more, less than 18 inches in length, from which only a single discharge can be made from either barrel without manual reloading, and shall include any such weapon which may be readily restored to fire. Such term shall not include a pistol or a revolver having a rifled bore, or rifled bores, or weapons designed, made, or intended to be fired from the shoulder and not capable of firing fixed ammunition.
</P>
<P><I>ATF officer.</I> An officer or employee of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) authorized to perform any function relating to the administration or enforcement of this part.
</P>
<P><I>Complete muffler or silencer device.</I> A muffler or silencer that contains all component parts necessary to function, whether or not assembled or operable.
</P>
<P><I>Complete weapon.</I> A firearm other than a muffler or silencer that contains all component parts necessary to function, whether or not assembled or operable.
</P>
<P><I>Customs officer.</I> Any officer of U.S. Customs and Border Protection, any commissioned, warrant, or petty officer of the Coast Guard, or any agent or other person authorized by law to perform the duties of a customs officer.
</P>
<P><I>Dealer.</I> Any person, not a manufacturer or importer, engaged in the business of selling, renting, leasing, or loaning firearms and shall include pawnbrokers who accept firearms as collateral for loans.
</P>
<P><I>Destructive device.</I> (a) Any explosive, incendiary, or poison gas (1) bomb, (2) grenade, (3) rocket having a propellent charge of more than 4 ounces, (4) missile having an explosive or incendiary charge of more than one-quarter ounce, (5) mine, or (6) similar device; (b) any type of weapon by whatever name known which will, or which may be readily converted to, expel a projectile by the action of an explosive or other propellant, the barrel or barrels of which have a bore of more than one-half inch in diameter, except a shotgun or shotgun shell which the Director finds is generally recognized as particularly suitable for sporting purposes; and (c) any combination of parts either designed or intended for use in converting any device into a destructive device as described in paragraphs (a) and (b) of this definition and from which a destructive device may be readily assembled. The term shall not include any device which is neither designed or redesigned for use as a weapon; any device, although originally designed for use as a weapon, which is redesigned for use as a signaling, pyrotechnic, line throwing, safety, or similar device; surplus ordnance sold, loaned, or given by the Secretary of the Army under 10 U.S.C. 4684(2), 4685, or 4686, or any device which the Director finds is not likely to be used as a weapon, or is an antique or is a rifle which the owner intends to use solely for sporting purposes.
</P>
<P><I>Director.</I> The Director, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Justice, Washington, DC.
</P>
<P><I>Director, Industry Operations.</I> The principal regional official responsible for administering regulations in this part.
</P>
<P><I>Director of the Service Center.</I> A director of an Internal Revenue Service Center in an internal revenue region.
</P>
<P><I>District director.</I> A district director of the Internal Revenue Service in an internal revenue district.
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the return, form, or other document or, where no form of declaration is prescribed, with the declaration:
</P>
<EXTRACT>
<P>“I declare under the penalties of perjury that this—(insert type of document, such as, statement, application, request, certificate), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete.”</P></EXTRACT>
<P><I>Exportation.</I> The severance of goods from the mass of things belonging to this country with the intention of uniting them to the mass of things belonging to some foreign country.
</P>
<P><I>Exporter.</I> Any person who exports firearms from the United States.
</P>
<P><I>Firearm.</I> (a) A shotgun having a barrel or barrels of less than 18 inches in length; (b) a weapon made from a shotgun if such weapon as modified has an overall length of less than 26 inches or a barrel or barrels of less than 18 inches in length; (c) a rifle having a barrel or barrels of less than 16 inches in length; (d) a weapon made from a rifle if such weapon as modified has an overall length of less than 26 inches or a barrel or barrels of less than 16 inches in length; (e) any other weapon, as defined in this subpart; (f) a machine gun; (g) a muffler or a silencer for any firearm whether or not such firearm is included within this definition; and (h) a destructive device. The term shall not include an antique firearm or any device (other than a machine gun or destructive device) which, although designed as a weapon, the Director finds by reason of the date of its manufacture, value, design, and other characteristics is primarily a collector's item and is not likely to be used as a weapon. For purposes of this definition, the length of the barrel having an integral chamber(s) on a shotgun or rifle shall be determined by measuring the distance between the muzzle and the face of the bolt, breech, or breech block when closed and when the shotgun or rifle is cocked. The overall length of a weapon made from a shotgun or rifle is the distance between the extreme ends of the weapon measured along a line parallel to the center line of the bore.
</P>
<P><I>Fixed ammunition.</I> That self-contained unit consisting of the case, primer, propellant charge, and projectile or projectiles.
</P>
<P><I>Frame or receiver.</I> The term “frame or receiver” shall have the same meaning as in § 478.12 of this subchapter.
</P>
<P><I>Importation.</I> The bringing of a firearm within the limits of the United States or any territory under its control or jurisdiction, from a place outside thereof (whether such place be a foreign country or territory subject to the jurisdiction of the United States), with intent to unlade. Except that, bringing a firearm from a foreign country or a territory subject to the jurisdiction of the United States into a foreign trade zone for storage pending shipment to a foreign country or subsequent importation into this country, under Title 26 of the United States Code, and this part, shall not be deemed importation.
</P>
<P><I>Importer.</I> Any person who is engaged in the business of importing or bringing firearms into the United States.
</P>
<P><I>Machine gun.</I> Any weapon which shoots, is designed to shoot, or can be readily restored to shoot, automatically more than one shot, without manual reloading, by a single function of the trigger. The term shall also include the frame or receiver of any such weapon, any part designed and intended solely and exclusively, or combination of parts designed and intended, for use in converting a weapon into a machine gun, and any combination of parts from which a machine gun can be assembled if such parts are in the possession or under the control of a person.
</P>
<P><I>Make.</I> This term and the various derivatives thereof shall include manufacturing (other than by one qualified to engage in such business under this part), putting together, altering, any combination of these, or otherwise producing a firearm.
</P>
<P><I>Manual reloading.</I> The inserting of a cartridge or shell into the chamber of a firearm either with the hands or by means of a mechanical device controlled and energized by the hands.
</P>
<P><I>Manufacturer.</I> Any person who is engaged in the business of manufacturing firearms.
</P>
<P><I>Muffler or silencer.</I> Any device for silencing, muffling, or diminishing the report of a portable firearm, including any combination of parts, designed or redesigned, and intended for the use in assembling or fabricating a firearm silencer or firearm muffler, and any part intended only for use in such assembly or fabrication.
</P>
<P><I>Person.</I> A partnership, company, association, trust, corporation, including each responsible person associated with such an entity; an estate; or an individual.
</P>
<P><I>Pistol.</I> A weapon originally designed, made, and intended to fire a projectile (bullet) from one or more barrels when held in one hand, and having (a) a chamber(s) as an integral part(s) of, or permanently aligned with, the bore(s); and (b) a short stock designed to be gripped by one hand and at an angle to and extending below the line of the bore(s).
</P>
<P><I>Privately made firearm (PMF).</I> The term “privately made firearm (PMF)” shall have the same meaning as in § 478.11 of this subchapter.
</P>
<P><I>Readily.</I> A process, action, or physical state that is fairly or reasonably efficient, quick, and easy, but not necessarily the most efficient, speediest, or easiest process, action, or physical state. With respect to the classification of firearms, factors relevant in making this determination include the following:
</P>
<P>(1) Time, <I>i.e.,</I> how long it takes to finish the process;
</P>
<P>(2) Ease, <I>i.e.,</I> how difficult it is to do so;
</P>
<P>(3) Expertise, <I>i.e.,</I> what knowledge and skills are required;
</P>
<P>(4) Equipment, <I>i.e.,</I> what tools are required;
</P>
<P>(5) Parts availability, <I>i.e.,</I> whether additional parts are required, and how easily they can be obtained;
</P>
<P>(6) Expense, <I>i.e.,</I> how much it costs;
</P>
<P>(7) Scope, <I>i.e.,</I> the extent to which the subject of the process must be changed to finish it; and
</P>
<P>(8) Feasibility, <I>i.e.,</I> whether the process would damage or destroy the subject of the process, or cause it to malfunction.
</P>
<P><I>Responsible person.</I> In the case of an unlicensed entity, including any trust, partnership, association, company (including any Limited Liability Company (LLC)), or corporation, any individual who possesses, directly or indirectly, the power or authority to direct the management and policies of the trust or entity to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on behalf of, the trust or legal entity. In the case of a trust, those persons with the power or authority to direct the management and policies of the trust include any person who has the capability to exercise such power and possesses, directly or indirectly, the power or authority under any trust instrument, or under State law, to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on behalf of, the trust. Examples of who may be considered a responsible person include settlors/grantors, trustees, partners, members, officers, directors, board members, or owners. An example of who may be excluded from this definition of responsible person is the beneficiary of a trust, if the beneficiary does not have the capability to exercise the powers or authorities enumerated in this section.
</P>
<P><I>Revolver.</I> A projectile weapon, of the pistol type, having a breechloading chambered cylinder so arranged that the cocking of the hammer or movement of the trigger rotates it and brings the next cartridge in line with the barrel for firing.
</P>
<P><I>Rifle.</I> A weapon designed or redesigned, made or remade, and intended to be fired from the shoulder and designed or redesigned and made or remade to use the energy of the explosive in a fixed cartridge to fire only a single projectile through a rifled bore for each single pull of the trigger, and shall include any such weapon which may be readily restored to fire a fixed cartridge.
</P>
<P>(1) For purposes of this definition, the term “designed or redesigned, made or remade, and intended to be fired from the shoulder” shall include a weapon that is equipped with an accessory, component, or other rearward attachment (<I>e.g.,</I> a “stabilizing brace”) that provides surface area that allows the weapon to be fired from the shoulder, provided other factors, as described in paragraph (2), indicate that the weapon is designed, made, and intended to be fired from the shoulder.
</P>
<P>(2) When a weapon provides surface area that allows the weapon to be fired from the shoulder, the following factors shall also be considered in determining whether the weapon is designed, made, and intended to be fired from the shoulder:
</P>
<P>(i) Whether the weapon has a weight or length consistent with the weight or length of similarly designed rifles;
</P>
<P>(ii) Whether the weapon has a length of pull, measured from the center of the trigger to the center of the shoulder stock or other rearward accessory, component or attachment (including an adjustable or telescoping attachment with the ability to lock into various positions along a buffer tube, receiver extension, or other attachment method), that is consistent with similarly designed rifles;
</P>
<P>(iii) Whether the weapon is equipped with sights or a scope with eye relief that require the weapon to be fired from the shoulder in order to be used as designed;
</P>
<P>(iv) Whether the surface area that allows the weapon to be fired from the shoulder is created by a buffer tube, receiver extension, or any other accessory, component, or other rearward attachment that is necessary for the cycle of operations;
</P>
<P>(v) The manufacturer's direct and indirect marketing and promotional materials indicating the intended use of the weapon; and
</P>
<P>(vi) Information demonstrating the likely use of the weapon in the general community.
</P>
<P><I>Shotgun.</I> A weapon designed or redesigned, made or remade, and intended to be fired from the shoulder and designed or redesigned and made or remade to use the energy of the explosive in a fixed shotgun shell to fire through a smooth bore either a number of projectiles (ball shot) or a single projectile for each pull of the trigger, and shall include any such weapon which may be readily restored to fire a fixed shotgun shell.
</P>
<P><I>Transfer.</I> This term and the various derivatives thereof shall include selling, assigning, pledging, leasing, loaning, giving away, or otherwise disposing of. For purposes of this part, the term shall not include the temporary conveyance of a lawfully possessed firearm to a manufacturer or dealer qualified under this part for the sole purpose of repair, identification, evaluation, research, testing, or calibration and return to the same lawful possessor.
</P>
<P><I>United States.</I> The States and the District of Columbia.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>Unserviceable firearm.</I> A firearm which is incapable of discharging a shot by means of an explosive and incapable of being readily restored to a firing condition.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and sec. 38, Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-48, 43 FR 13538, Mar. 31, 1978; 44 FR 55842, Sept. 28, 1979; T.D. ATF-241, 51 FR 39630, Oct. 29, 1986; T.D. ATF-270, 53 FR 10492, Mar. 31, 1988; T.D. ATF-396, 63 FR 12647, Mar. 16, 1998; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014; ATF-41F, 81 FR 2721, Jan. 15, 2016; ATF 2018R-22F, 83 FR 66554, Dec. 26, 2018; ATF-2021R-05F, 87 FR 24747, Apr. 26, 2022; 87 FR 51250, Aug. 22, 2022; ATF-2021R-08F, 88 FR 6575, Jan. 31, 2023; ATF-2024R-01F, 91 FR 24352, May 6, 2026]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:3.0.1.2.4.3" TYPE="SUBPART">
<HEAD>Subpart C—Administrative and Miscellaneous Provisions</HEAD>


<DIV8 N="§ 479.21" NODE="27:3.0.1.2.4.3.16.1" TYPE="SECTION">
<HEAD>§ 479.21   Forms prescribed.</HEAD>
<P>(a) The Director is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. Each form requiring that it be executed under penalties of perjury shall be executed under penalties of perjury.
</P>
<P>(b) Requests for forms should be submitted to the ATF Distribution Center (<I>http://www.atf.gov</I>) or made by calling (202) 648-6420.
</P>
<SECAUTH TYPE="N">(5 U.S.C. 552(a); 80 Stat. 383, as amended)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46916, Sept. 23, 1981, as amended by T.D. ATF-241, 51 FR 39630, Oct. 29, 1986; T.D. ATF-270, 53 FR 10508, Mar. 31, 1988; T.D. 372, 61 FR 20725, May 8, 1996; ATF-11F, 73 FR 57242, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 479.22" NODE="27:3.0.1.2.4.3.16.2" TYPE="SECTION">
<HEAD>§ 479.22   Right of entry and examination.</HEAD>
<P>Any ATF officer or employee of the Bureau of Alcohol, Tobacco, Firearms, and Explosives duly authorized to perform any function relating to the administration or enforcement of this part may enter during business hours the premises (including places of storage) of any importer or manufacturer of or dealer in firearms, to examine any books, papers, or records required to be kept pursuant to this part, and any firearms kept by such importer, manufacturer or dealer on such premises, and may require the production of any books, papers, or records necessary to determine any liability for tax under 26 U.S.C. Chapter 53, or the observance of 26 U.S.C. Chapter 53, and this part.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 479.23" NODE="27:3.0.1.2.4.3.16.3" TYPE="SECTION">
<HEAD>§ 479.23   Restrictive use of required information.</HEAD>
<P>No information or evidence obtained from an application, registration, or record required to be submitted or retained by a natural person in order to comply with any provision of 26 U.S.C. Chapter 53, or this part or section 207 of the Gun Control Act of 1968 shall be used, directly or indirectly, as evidence against that person in a criminal proceeding with respect to a violation of law occurring prior to or concurrently with the filing of the application or registration, or the compiling of the record containing the information or evidence: <I>Provided, however,</I> That the provisions of this section shall not preclude the use of any such information or evidence in a prosecution or other action under any applicable provision of law with respect to the furnishing of false information.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.24" NODE="27:3.0.1.2.4.3.16.4" TYPE="SECTION">
<HEAD>§ 479.24   Destructive device determination.</HEAD>
<P>The Director shall determine in accordance with 26 U.S.C. 5845(f), whether a device is excluded from the definition of a destructive device. A person who desires to obtain a determination under that provision of law for any device which he believes is not likely to be used as a weapon shall submit a written request, in triplicate, for a ruling thereon to the Director. Each such request shall be executed under the penalties of perjury and contain a complete and accurate description of the device, the name and address of the manufacturer or importer thereof, the purpose of and use for which it is intended, and such photographs, diagrams, or drawings as may be necessary to enable the Director to make his determination. The Director may require the submission to him, of a sample of such device for examination and evaluation. If the submission of such device is impracticable, the person requesting the ruling shall so advise the Director and designate the place where the device will be available for examination and evaluation.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.25" NODE="27:3.0.1.2.4.3.16.5" TYPE="SECTION">
<HEAD>§ 479.25   Collector's items.</HEAD>
<P>The Director shall determine in accordance with 26 U.S.C. 5845(a), whether a firearm or device, which although originally designed as a weapon, is by reason of the date of its manufacture, value, design, and other characteristics primarily a collector's item and is not likely to be used as a weapon. A person who desires to obtain a determination under that provision of law shall follow the procedures prescribed in § 479.24 relating to destructive device determinations, and shall include information as to date of manufacture, value, design and other characteristics which would sustain a finding that the firearm or device is primarily a collector's item and is not likely to be used as a weapon.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.26" NODE="27:3.0.1.2.4.3.16.6" TYPE="SECTION">
<HEAD>§ 479.26   Alternate methods or procedures; emergency variations from requirements.</HEAD>
<P>(a) <I>Alternate methods or procedures.</I> Any person subject to the provisions of this part, on specific approval by the Director as provided in this paragraph, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. The Director may approve an alternate method or procedure, subject to stated conditions, when it is found that:
</P>
<P>(1) Good cause is shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure and that the alternate method or procedure is substantially equivalent to that specifically prescribed method or procedure; and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law and will not result in an increase in cost to the Government or hinder the effective administration of this part. Where such person desires to employ an alternate method or procedure, a written application shall be submitted to the appropriate Director, Industry Operations, for transmittal to the Director. The application shall specifically describe the proposed alternate method or procedure and shall set forth the reasons for it. Alternate methods or procedures may not be employed until the application is approved by the Director. Such person shall, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization of any alternate method or procedure may be withdrawn whenever, in the judgment of the Director, the effective administration of this part is hindered by the continuation of the authorization.
</P>
<P>(b) <I>Emergency variations from requirements.</I> The Director may approve a method of operation other than as specified in this part, where it is found that an emergency exists and the proposed variation from the specified requirements are necessary and the proposed variations (1) will not hinder the effective administration of this part, and (2) will not be contrary to any provisions of law. Variations from requirements granted under this paragraph are conditioned on compliance with the procedures, conditions, and limitations set forth in the approval of the application. Failure to comply in good faith with the procedures, conditions, and limitations shall automatically terminate the authority for the variations, and the person granted the variance shall fully comply with the prescribed requirements of regulations from which the variations were authorized. Authority for any variation may be withdrawn whenever, in the judgment of the Director, the effective administration of this part is hindered by the continuation of the variation. Where a person desires to employ an emergency variation, a written application shall be submitted to the appropriate Director, Industry Operations for transmittal to the Director. The application shall describe the proposed variation and set forth the reasons for it. Variations may not be employed until the application is approved.
</P>
<P>(c) <I>Retention of approved variations.</I> The person granted the variance shall retain and make available for examination by ATF officers any application approved by the Director under this section.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10508 Mar. 31, 1988, as amended by ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:3.0.1.2.4.4" TYPE="SUBPART">
<HEAD>Subpart D—Special (Occupational) Taxes</HEAD>


<DIV8 N="§ 479.31" NODE="27:3.0.1.2.4.4.16.1" TYPE="SECTION">
<HEAD>§ 479.31   Liability for tax.</HEAD>
<P>(a) <I>General.</I> Every person who engages in the business of importing, manufacturing, or dealing in (including pawnbrokers) firearms in the United States shall pay a special (occupational) tax at a rate specified by § 479.32. The tax shall be paid on or before the date of commencing the taxable business, and thereafter every year on or before July 1. Special (occupational) tax shall not be prorated. The tax shall be computed for the entire tax year (July 1 through June 30), regardless of the portion of the year during which the taxpayer engages in business. Persons commencing business at any time after July 1 in any year are liable for the special (occupational) tax for the entire tax year.
</P>
<P>(b) <I>Each place of business taxable.</I> An importer, manufacturer, or dealer in firearms incurs special tax liability at each place of business where an occupation subject to special tax is conducted. A place of business means the entire office, plant or area of the business in any one location under the same proprietorship. Passageways, streets, highways, rail crossings, waterways, or partitions dividing the premises are not sufficient separation to require additional special tax, if the divisions of the premises are otherwise contiguous. See also §§ 479.38-479.39.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5143, 5801, 5846)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-271, 53 FR 17550, May 17, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.32" NODE="27:3.0.1.2.4.4.16.2" TYPE="SECTION">
<HEAD>§ 479.32   Special (occupational) tax rates.</HEAD>
<P>Except as provided in § 479.32a, the special (occupational) tax rates effective January 1, 1988, are as follows:
</P>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col"> 
</TH><TH class="gpotbl_colhed" scope="col">Per year or fraction thereof
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Class 1—Importer of firearms (including an importer only of weapons classified as “any other weapon”)</TD><TD align="right" class="gpotbl_cell">$1,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Class 2—Manufacturer of firearms (including a manufacturer only of weapons classified as “any other weapon”)</TD><TD align="right" class="gpotbl_cell">1,000
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Class 3—Dealer in firearms (including a dealer only of weapons classified as “any other weapon”)</TD><TD align="right" class="gpotbl_cell">500</TD></TR></TABLE></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-271, 53 FR 17550, May 17, 1988; ATF 2014R-42, 84 FR 12094, Apr. 1, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 479.32a" NODE="27:3.0.1.2.4.4.16.3" TYPE="SECTION">
<HEAD>§ 479.32a   Reduced rate of tax for small importers and manufacturers.</HEAD>
<P>(a) <I>General.</I> Effective January 1, 1988, 26 U.S.C. 5801(b) provides for a reduced rate of special tax with respect to any importer or manufacturer whose gross receipts (for the most recent taxable year ending before the first day of the taxable period to which the special tax imposed by § 479.32 relates) are less than $500,000. The rate of tax for such an importer or manufacturer is $500 per year or fraction thereof. The “taxable year” to be used for determining gross receipts is the taxpayer's income tax year. All gross receipts of the taxpayer shall be included, not just the gross receipts of the business subject to special tax. Proprietors of new businesses that have not yet begun a taxable year, as well as proprietors of existing businesses that have not yet ended a taxable year, who commence a new activity subject to special tax, quality for the reduced special (occupational) tax rate, unless the business is a member of a “controlled group”; in that case, the rules of paragraph (b) of this section shall apply.
</P>
<P>(b) <I>Controlled group.</I> All persons treated as one taxpayer under 26 U.S.C. 5061(e)(3) shall be treated as one taxpayer for the purpose of determining gross receipts under paragraph (a) of this section. “Controlled group” means a controlled group of corporations, as defined in 26 U.S.C. 1563 and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place they appear in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of this section.
</P>
<P>(c) <I>Short taxable year.</I> Gross receipts for any taxable year of less than 12 months shall be annualized by multiplying the gross receipts for the short period by 12 and dividing the result by the number of months in the short period, as required by 26 U.S.C. 448(c)(3).
</P>
<P>(d) <I>Returns and allowances.</I> Gross receipts for any taxable year shall be reduced by returns and allowances made during that year under 26 U.S.C. 448(c)(3).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 448, 5061, 5801)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-271, 53 FR 17550, May 17, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.33" NODE="27:3.0.1.2.4.4.16.4" TYPE="SECTION">
<HEAD>§ 479.33   Special exemption.</HEAD>
<P>(a) Any person required to pay special (occupational) tax under this part shall be relieved from payment of that tax if he establishes to the satisfaction of the Director that his business is conducted exclusively with, or on behalf of, the United States or any department, independent establishment, or agency thereof. The Director may relieve any person manufacturing firearms for or on behalf of the United States from compliance with any provision of this part in the conduct of the business with respect to such firearms.
</P>
<P>(b) The exemption in this section may be obtained by filing with the Director an application, in letter form, setting out the manner in which the applicant conducts his business, the type of firearm to be manufactured, and proof satisfactory to the Director of the existence of the contract with the United States, department, independent establishment, or agency thereof, under which the applicant intends to operate.


</P>
</DIV8>


<DIV8 N="§ 479.34" NODE="27:3.0.1.2.4.4.16.5" TYPE="SECTION">
<HEAD>§ 479.34   Special tax registration and return.</HEAD>
<P>(a) <I>General.</I> Special tax shall be paid by return. The prescribed return is ATF Form 5630.7, Special Tax Registration and Return. Special tax returns, with payment of tax, shall be filed with ATF in accordance with instructions on the form. Properly completing, signing, and timely filing of a return (Form 5630.7) constitutes compliance with 26 U.S.C. 5802.
</P>
<P>(b) <I>Preparation of ATF Form 5630.7.</I> All of the information called for on Form 5630.7 shall be provided, including:
</P>
<P>(1) The true name of the taxpayer.
</P>
<P>(2) The trade name(s) (if any) of the business(es) subject to special tax.
</P>
<P>(3) The employer identification number (see § 479.35).
</P>
<P>(4) The exact location of the place of business, by name and number of building or street, or if these do not exist, by some description in addition to the post office address. In the case of one return for two or more locations, the address to be shown shall be the taxpayer's principal place of business (or principal office, in the case of a corporate taxpayer).
</P>
<P>(5) The class(es) of special tax to which the taxpayer is subject.
</P>
<P>(6) Ownership and control information: That is, the name, position, and residence address of every owner of the business and of every person having power to control its management and policies with respect to the activity subject to special tax. “Owner of the business” shall include every partner, if the taxpayer is a partnership, and every person owning 10% or more of its stock, if the taxpayer is a corporation. However, the ownership and control information required by this paragraph need not be stated if the same information has been previously provided to ATF in connection with a license application under Part 478 of this chapter, and if the information previously provided is still current.
</P>
<P>(c) <I>Multiple locations and/or classes of tax.</I> A taxpayer subject to special tax for the same period at more than one location or for more than one class of tax shall—
</P>
<P>(1) File one special tax return, ATF Form 5630.7, with payment of tax, to cover all such locations and classes of tax; and
</P>
<P>(2) Prepare, in duplicate, a list identified with the taxpayer's name, address (as shown on ATF Form 5630.7), employer identification number, and period covered by the return. The list shall show, by States, the name, address, and tax class of each location for which special tax is being paid. The original of the list shall be filed with ATF in accordance with instructions on the return, and the copy shall be retained at the taxpayer's principal place of business (or principal office, in the case of a corporate taxpayer) for not less than 3 years.
</P>
<P>(d) <I>Signing of ATF Forms 5630.7</I>—(1) <I>Ordinary returns.</I> The return of an individual proprietor shall be signed by the individual. The return of a partnership shall be signed by a general partner. The return of a corporation shall be signed by any officer. In each case, the person signing the return shall designate his or her capacity as “individual owner,” “member of firm,” or, in the case of a corporation, the title of the officer.
</P>
<P>(2) <I>Fiduciaries.</I> Receivers, trustees, assignees, executors, administrators, and other legal representatives who continue the business of a bankrupt, insolvent, deceased person, etc., shall indicate the fiduciary capacity in which they act.
</P>
<P>(3) <I>Agent or attorney in fact.</I> If a return is signed by an agent or attorney in fact, the signature shall be preceded by the name of the principal and followed by the title of the agent or attorney in fact. A return signed by a person as agent will not be accepted unless there is filed, with the ATF office with which the return is required to be filed, a power of attorney authorizing the agent to perform the act.
</P>
<P>(4) <I>Perjury statement.</I> ATF Forms 5630.7 shall contain or be verified by a written declaration that the return has been executed under the penalties of perjury.
</P>
<P>(e) <I>Identification of taxpayer.</I> If the taxpayer is an individual, with the initial return such person shall securely attach to Form 5630.7 a photograph of the individual 2 × 2 inches in size, clearly showing a full front view of the features of the individual with head bare, with the distance from the top of the head to the point of the chin approximately 1
<FR>1/4</FR> inches, and which shall have been taken within 6 months prior to the date of completion of the return. The individual shall also attach to the return a properly completed FBI Form FD-258 (Fingerprint Card). The fingerprints must be clear for accurate classification and should be taken by someone properly equipped to take them: <I>Provided,</I> That the provisions of this paragraph shall not apply to individuals who have filed with ATF a properly executed Application for License under 18 U.S.C. Chapter 44, Firearms, ATF Form 7 (5310.12), as specified in § 478.44(a).
</P>
<SECAUTH TYPE="N">(26 U.S.C. 5142, 5802, 5846, 6061, 6065, 6151)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-271, 53 FR 17551, May 17, 1988, as amended by T.D. ATF-363, 60 FR 17456, Apr. 6, 1995; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 479.35" NODE="27:3.0.1.2.4.4.16.6" TYPE="SECTION">
<HEAD>§ 479.35   Employer identification number.</HEAD>
<P>(a) <I>Requirement.</I> The employer identification number (defined in 26 CFR 301.7701-12) of the taxpayer who has been assigned such a number shall be shown on each special tax return, including amended returns, filed under this subpart. Failure of the taxpayer to include the employer identification number may result in the imposition of the penalty specified in § 70.113 of this chapter.
</P>
<P>(b) <I>Application for employer identification number.</I> Each taxpayer who files a special tax return, who has not already been assigned an employer identification number, shall file IRS Form SS-4 to apply for one. The taxpayer shall apply for and be assigned only one employer identification number, regardless of the number of places of business for which the taxpayer is required to file a special tax return. The employer identification number shall be applied for no later than 7 days after the filing of the taxpayer's first special tax return. IRS Form SS-4 may be obtained from the director of an IRS service center or from any IRS district director.
</P>
<P>(c) <I>Preparation and filing of IRS Form SS-4.</I> The taxpayer shall prepare and file IRS Form SS-4, together with any supplementary statement, in accordance with the instructions on the form or issued in respect to it.
</P>
<SECAUTH TYPE="N">(26 U.S.C. 6109)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-271, 53 FR 17551, May 17, 1988, as amended by T.D. ATF-301, 55 FR 47657, Nov. 14, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 479.36" NODE="27:3.0.1.2.4.4.16.7" TYPE="SECTION">
<HEAD>§ 479.36   The special tax stamp, receipt for special (occupational) taxes.</HEAD>
<P>Upon filing a properly completed and executed return (Form 5630.7) accompanied by remittance of the full amount due, the taxpayer will be issued a special tax stamp as evidence of payment of the special (occupational) tax.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-363, 60 FR 17456, Apr. 6, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 479.37" NODE="27:3.0.1.2.4.4.16.8" TYPE="SECTION">
<HEAD>§ 479.37   Certificates in lieu of stamps lost or destroyed.</HEAD>
<P>When a special tax stamp has been lost or destroyed, such fact should be reported immediately to the Chief, National Firearms Act Branch who issued the stamp. A certificate in lieu of the lost or destroyed stamp will be issued to the taxpayer upon the submission of an affidavit showing to the satisfaction of the Chief, National Firearms Act Branch that the stamp was lost or destroyed.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 479.38" NODE="27:3.0.1.2.4.4.16.9" TYPE="SECTION">
<HEAD>§ 479.38   Engaging in business at more than one location.</HEAD>
<P>A person shall pay the special (occupational) tax for each location where he engages in any business taxable under 26 U.S.C. 5801. However, a person paying a special (occupational) tax covering his principal place of business may utilize other locations solely for storage of firearms without incurring special (occupational) tax liability at such locations. A manufacturer, upon the single payment of the appropriate special (occupational) tax, may sell firearms, if such firearms are of his own manufacture, at the place of manufacture and at his principal office or place of business if no such firearms, except samples, are kept at such office or place of business. When a person changes the location of a business for which he has paid the special (occupational) tax, he will be liable for another such tax unless the change is properly registered with the Chief, National Firearms Act Branch for the region in which the special tax stamp was issued, as provided in § 479.46.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-271, 53 FR 17551, May 17, 1988; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 479.39" NODE="27:3.0.1.2.4.4.16.10" TYPE="SECTION">
<HEAD>§ 479.39   Engaging in more than one business at the same location.</HEAD>
<P>If more than one business taxable under 26 U.S.C. 5801, is carried on at the same location during a taxable year, the special (occupational) tax imposed on each such business must be paid. This section does not require a qualified manufacturer or importer to qualify as a dealer if such manufacturer or importer also engages in business on his qualified premises as a dealer. However, a qualified manufacturer who engages in business as an importer must also qualify as an importer. Further, a qualified dealer is not entitled to engage in business as a manufacturer or importer.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-271, 53 FR 17551, May 17, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.40" NODE="27:3.0.1.2.4.4.16.11" TYPE="SECTION">
<HEAD>§ 479.40   Partnership liability.</HEAD>
<P>Any number of persons doing business in partnership at any one location shall be required to pay but one special (occupational) tax.


</P>
</DIV8>


<DIV8 N="§ 479.41" NODE="27:3.0.1.2.4.4.16.12" TYPE="SECTION">
<HEAD>§ 479.41   Single sale.</HEAD>
<P>A single sale, unattended by circumstances showing the one making the sale to be engaged in business, does not create special (occupational) tax liability.


</P>
</DIV8>


<DIV7 N="16" NODE="27:3.0.1.2.4.4.16" TYPE="SUBJGRP">
<HEAD>Change of Ownership</HEAD>


<DIV8 N="§ 479.42" NODE="27:3.0.1.2.4.4.16.13" TYPE="SECTION">
<HEAD>§ 479.42   Changes through death of owner.</HEAD>
<P>Whenever any person who has paid special (occupational) tax dies, the surviving spouse or child, or executors or administrators, or other legal representatives, may carry on this business for the remainder of the term for which tax has been paid and at the place (or places) for which the tax was paid, without any additional payment, subject to the following conditions. If the surviving spouse or child, or executor or administrator, or other legal representative of the deceased taxpayer continues the business, such person shall, within 30 days after the date on which the successor begins to carry on the business, file a new return, Form 5630.7, with ATF in accordance with the instructions on the form. The return thus executed shall show the name of the original taxpayer, together with the basis of the succession. (As to liability in case of failure to register, see § 479.49.)
</P>
<CITA TYPE="N">[T.D. ATF-70, 45 FR 33979, May 21, 1980, as amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-363, 60 FR 17456, Apr. 6, 1995]


</CITA>
</DIV8>


<DIV8 N="§ 479.43" NODE="27:3.0.1.2.4.4.16.14" TYPE="SECTION">
<HEAD>§ 479.43   Changes through bankruptcy of owner.</HEAD>
<P>A receiver or referee in bankruptcy may continue the business under the stamp issued to the taxpayer at the place and for the period for which the tax was paid. An assignee for the benefit of creditors may continue business under his assignor's special tax stamp without incurring additional special (occupational) tax liability. In such cases, the change shall be registered with ATF in a manner similar to that required by § 479.42.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987]


</CITA>
</DIV8>


<DIV8 N="§ 479.44" NODE="27:3.0.1.2.4.4.16.15" TYPE="SECTION">
<HEAD>§ 479.44   Change in partnership or unincorporated association.</HEAD>
<P>When one or more members withdraw from a partnership or an unincorporated association, the remaining member, or members, may, without incurring additional special (occupational) tax liability, carry on the same business at the same location for the balance of the taxable period for which special (occupational) tax was paid, provided any such change shall be registered in the same manner as required by § 479.42. Where new member(s) are taken into a partnership or an unincorporated association, the new firm so constituted may not carry on business under the special tax stamp of the old firm. The new firm must file a return, pay the special (occupational) tax and register in the same manner as a person who first engages in business is required to do under § 479.34 even though the name of the new firm may be the same as that of the old. Where the members of a partnership or an unincorporated association, which has paid special (occupational) tax, form a corporation to continue the business, a new special tax stamp must be taken out in the name of the corporation.


</P>
</DIV8>


<DIV8 N="§ 479.45" NODE="27:3.0.1.2.4.4.16.16" TYPE="SECTION">
<HEAD>§ 479.45   Changes in corporation.</HEAD>
<P>Additional special (occupational) tax is not required by reason of a mere change of name or increase in the capital stock of a corporation if the laws of the State of incorporation provide for such change or increase without the formation of a new corporation. A stockholder in a corporation who after its dissolution continues the business, incurs new special (occupational) tax liability.


</P>
</DIV8>

</DIV7>


<DIV7 N="17" NODE="27:3.0.1.2.4.4.17" TYPE="SUBJGRP">
<HEAD>Change of Business Location</HEAD>


<DIV8 N="§ 479.46" NODE="27:3.0.1.2.4.4.17.17" TYPE="SECTION">
<HEAD>§ 479.46   Notice by taxpayer.</HEAD>
<P>Whenever during the taxable year a taxpayer intends to remove his business to a location other than specified in his last special (occupational) tax return (see § 479.34), he shall file with ATF (a) a return, Form 5630.7, bearing the notation “Removal Registry,” and showing the new address intended to be used, (b) his current special tax stamp, and (c) a letter application requesting the amendment of his registration. The Chief, National Firearms Act Branch, upon approval of the application, shall return the special tax stamp, amended to show the new business location. Firearms operations shall not be commenced at the new business location by the taxpayer prior to the required approval of his application to so change his business location.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-363, 60 FR 17456, Apr. 6, 1995; ATF 2013R-9F, 79 FR 46693, Aug 11, 2014]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="18" NODE="27:3.0.1.2.4.4.18" TYPE="SUBJGRP">
<HEAD>Change of Trade Name</HEAD>


<DIV8 N="§ 479.47" NODE="27:3.0.1.2.4.4.18.18" TYPE="SECTION">
<HEAD>§ 479.47   Notice by taxpayer.</HEAD>
<P>Whenever during the taxable year a taxpayer intends to change the name of his business, he shall file with ATF (a) a return, Form 5630.7, bearing the notation “Amended,” and showing the trade name intended to be used, (b) his current special tax stamp, and (c) a letter application requesting the amendment of his registration. The Chief, National Firearms Act Branch, upon approval of the application, shall return the special tax stamp, amended to show the new trade name. Firearms operations shall not be commenced under the new trade name by the taxpayer prior to the required approval of his application to so change the trade name.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-363, 60 FR 17456, Apr. 6, 1995; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="19" NODE="27:3.0.1.2.4.4.19" TYPE="SUBJGRP">
<HEAD>Penalties and Interest</HEAD>


<DIV8 N="§ 479.48" NODE="27:3.0.1.2.4.4.19.19" TYPE="SECTION">
<HEAD>§ 479.48   Failure to pay special (occupational) tax.</HEAD>
<P>Any person who engages in a business taxable under 26 U.S.C. 5801, without timely payment of the tax imposed with respect to such business (see § 479.34) shall be liable for such tax, plus the interest and penalties thereon (see 26 U.S.C. 6601 and 6651). In addition, such person may be liable for criminal penalties under 26 U.S.C. 5871.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.49" NODE="27:3.0.1.2.4.4.19.20" TYPE="SECTION">
<HEAD>§ 479.49   Failure to register change or removal.</HEAD>
<P>Any person succeeding to and carrying on a business for which special (occupational) tax has been paid without registering such change within 30 days thereafter, and any taxpayer removing his business with respect to which special (occupational) tax has been paid to a place other than that for which tax was paid without obtaining approval therefor (see § 479.46), will incur liability to an additional payment of the tax, addition to tax and interest, as provided in sections 5801, 6651, and 6601, respectively, I.R.C., for failure to make return (see § 479.50) or pay tax, as well as criminal penalties for carrying on business without payment of special (occupational) tax (see section 5871 I.R.C.).


</P>
</DIV8>


<DIV8 N="§ 479.50" NODE="27:3.0.1.2.4.4.19.21" TYPE="SECTION">
<HEAD>§ 479.50   Delinquency.</HEAD>
<P>Any person liable for special (occupational) tax under section 5801, I.R.C., who fails to file a return (Form 5630.7), as prescribed, will be liable for a delinquency penalty computed on the amount of tax due unless a return (Form 5630.7) is later filed and failure to file the return timely is shown to the satisfaction of the Chief, National Firearms Act Branch, to be due to reasonable cause. The delinquency penalty to be added to the tax is 5 percent if the failure is for not more than 1 month, with an additional 5 percent for each additional month or fraction thereof during which failure continues, not to exceed 25 percent in the aggregate (section 6651, I.R.C.). However, no delinquency penalty is assessed where the 50 percent addition to tax is assessed for fraud (see § 479.51).
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-251, 52 FR 19334, May 22, 1987; T.D. ATF-363, 60 FR 17453, Apr. 6, 1996; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 479.51" NODE="27:3.0.1.2.4.4.19.22" TYPE="SECTION">
<HEAD>§ 479.51   Fraudulent return.</HEAD>
<P>If any part of any underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment, but no delinquency penalty shall be assessed with respect to the same underpayment (section 6653, I.R.C.).


</P>
</DIV8>

</DIV7>


<DIV7 N="20" NODE="27:3.0.1.2.4.4.20" TYPE="SUBJGRP">
<HEAD>Application of State Laws</HEAD>


<DIV8 N="§ 479.52" NODE="27:3.0.1.2.4.4.20.23" TYPE="SECTION">
<HEAD>§ 479.52   State regulations.</HEAD>
<P>Special tax stamps are merely receipts for the tax. Payment of tax under Federal law confers no privilege to act contrary to State law. One to whom a special tax stamp has been issued may still be punishable under a State law prohibiting or controlling the manufacture, possession or transfer of firearms. On the other hand, compliance with State law confers no immunity under Federal law. Persons who engage in the business of importing, manufacturing or dealing in firearms, in violation of the law of a State, are nevertheless required to pay special (occupational) tax as imposed under the internal revenue laws of the United States. For provisions relating to restrictive use of information furnished to comply with the provisions of this part see § 479.23.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="E" NODE="27:3.0.1.2.4.5" TYPE="SUBPART">
<HEAD>Subpart E—Tax on Making Firearms</HEAD>


<DIV8 N="§ 479.61" NODE="27:3.0.1.2.4.5.21.1" TYPE="SECTION">
<HEAD>§ 479.61   Making tax rate.</HEAD>
<P>(a) Except as provided in this subpart, the Director must levy and collect, and a person, upon making a firearm, must pay, a tax at the rate of—
</P>
<P>(1) $200 for each firearm made, in the case of a machine gun or a destructive device; and
</P>
<P>(2) $0 for any firearm made that is not described in paragraph (a)(1) of this section.
</P>
<P>(b) The Director must indicate that the maker paid the tax by adding a stamp of the proper denomination, bearing the words “National Firearms Act.” The Director maintains the stamps and must affix or apply one to each approved application form, as provided in this subpart. The stamps may be adhesive, in electronic form, or in another form designated by the Director.
</P>
<CITA TYPE="N">[ATF 2025R-45F, 91 FR 25117, May 8, 2026]


</CITA>
</DIV8>


<DIV7 N="21" NODE="27:3.0.1.2.4.5.21" TYPE="SUBJGRP">
<HEAD>Application To Make a Firearm</HEAD>


<DIV8 N="§ 479.62" NODE="27:3.0.1.2.4.5.21.2" TYPE="SECTION">
<HEAD>§ 479.62   Applying to make.</HEAD>
<P>(a) <I>General.</I> No person shall make a firearm unless the person has filed with the Director a completed application on ATF Form 1 (5320.1), Application to Make and Register a Firearm, in duplicate, executed under the penalties of perjury, to make and register the firearm and has received the approval of the Director to make the firearm, which approval shall effectuate registration of the firearm to the applicant. If the applicant is not a licensed manufacturer, importer, or dealer qualified under this part and is a partnership, company (including a Limited Liability Company (LLC)), association, trust, or corporation, all information on the Form 1 application shall be furnished for each responsible person of the applicant
</P>
<P>(b) <I>Preparation of ATF Form 1.</I> All of the information called for on Form 1 shall be provided, including:
</P>
<P>(1) Type of application, <I>i.e.,</I> tax-paid or tax-exempt. If making the firearm is taxable, the applicant must remit $200 with the application for a machine gun or destructive device, or $0 for all other firearms, in accordance with the instructions on the form;
</P>
<P>(2) The identity of the applicant. If an individual, the applicant shall provide the applicant's name, address, and date of birth, and also comply with the identification requirements prescribed in § 479.63(a). If other than an individual, the applicant shall provide its name, address, and employer identification number, if any, as well as the name and address of each responsible person. Each responsible person of the applicant also shall comply with the identification requirements prescribed in § 479.63(b);
</P>
<P>(3) A description of the firearm to be made by type; caliber, gauge, or size; model; length of barrel; serial number; other marks of identification; and the name and address of the original manufacturer (if the applicant is not the original manufacturer);
</P>
<P>(4) The applicant's Federal firearms license number (if any);
</P>
<P>(5) The applicant's special (occupational) tax stamp (if applicable); and
</P>
<P>(6) If the applicant (including, if other than an individual, any responsible person) is an alien admitted under a nonimmigrant visa, applicable documentation demonstrating that the nonimmigrant alien falls within an exception to 18 U.S.C. 922(g)(5)(B) under 18 U.S.C. 922(y)(2), or has obtained a waiver of that provision under 18 U.S.C. 922(y)(3).
</P>
<P>(c) <I>Notification of chief law enforcement officer.</I> Prior to the submission of the application to the Director, all applicants and responsible persons shall forward a completed copy of Form 1 or a completed copy of Form 5320.23, respectively, to the chief law enforcement officer of the locality in which the applicant or responsible person is located. The chief law enforcement officer is the local chief of police, county sheriff, head of the State police, or State or local district attorney or prosecutor. If the applicant is not a licensed manufacturer, importer, or dealer qualified under this part and is a partnership, company, association, or corporation, for purposes of this section, it is considered located at its principal office or principal place of business; if a trust, for purposes of this section, it is considered located at the primary location at which the firearm will be maintained.
</P>
<P>(d) <I>Approval of Form 1.</I> If the application is approved, the Director will affix a National Firearms Act stamp to the original application in the space provided therefor and properly cancel the stamp (<I>see</I> § 479.67). The approved application will then be returned to the applicant.
</P>
<CITA TYPE="N">[ATF-41F, 81 FR 2721, Jan. 15, 2016, as amended by ATF 2025R-45F, 91 FR 25118, May 8, 2026]


</CITA>
</DIV8>


<DIV8 N="§ 479.63" NODE="27:3.0.1.2.4.5.21.3" TYPE="SECTION">
<HEAD>§ 479.63   Identification of applicant.</HEAD>
<P>(a) If the applicant is an individual, the applicant shall:
</P>
<P>(1) Securely attach to each copy of the Form 1, in the space provided on the form, a 2 x 2-inch photograph of the applicant, clearly showing a full front view of the features of the applicant with head bare, with the distance from the top of the head to the point of the chin approximately 1
<FR>1/4</FR> inches, and which shall have been taken within 1 year prior to the date of the application; and
</P>
<P>(2) Attach to the application two properly completed FBI Forms FD-258 (Fingerprint Card). The fingerprints must be clear for accurate classification and should be taken by someone properly equipped to take them.
</P>
<P>(b) If the applicant is not a licensed manufacturer, importer, or dealer qualified under this part and is a partnership, company (including a Limited Liability Company (LLC)), association, trust, or corporation, the applicant shall:
</P>
<P>(1) Be identified on the Form 1 by the name and exact location of the place of business, including the name and number of the building and street, and the name of the county in which the business is located or, in the case of a trust, the primary location at which the firearm will be maintained. In the case of two or more locations, the address shown shall be the principal place of business (or principal office, in the case of a corporation) or, in the case of a trust, the primary location at which the firearm will be maintained;
</P>
<P>(2) Except as provided in paragraph (c) of this section, attach to the application—
</P>
<P>(i) Documentation evidencing the existence and validity of the entity, which includes complete and unredacted copies of partnership agreements, articles of incorporation, corporate registration, and declarations of trust, with any trust schedules, attachments, exhibits, and enclosures;
</P>
<P>(ii) A completed ATF Form 5320.23 for each responsible person. Form 5320.23 requires certain identifying information, including each responsible person's full name, position, home address, date of birth, and country of citizenship if other than the United States;
</P>
<P>(iii) In the space provided on Form 5320.23, a 2 x 2-inch photograph of each responsible person, clearly showing a full front view of the features of the responsible person with head bare, with the distance from the top of the head to the point of the chin approximately 1
<FR>1/4</FR> inches, and which shall have been taken within 1 year prior to the date of the application;
</P>
<P>(iv) Two properly completed FBI Forms FD-258 (Fingerprint Card) for each responsible person. The fingerprints must be clear for accurate classification and should be taken by someone properly equipped to take them.
</P>
<P>(c) If the applicant entity has had an application approved as a maker or transferee within the preceding 24 months, and there has been no change to the documentation previously provided, the entity may provide a certification that the information has not been changed since the prior approval and shall identify the application for which the documentation had been submitted by form number, serial number, and date approved.
</P>
<CITA TYPE="N">[ATF-41F, 81 FR 2721, Jan. 15, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 479.64" NODE="27:3.0.1.2.4.5.21.4" TYPE="SECTION">
<HEAD>§ 479.64   Action on making application.</HEAD>
<P>(a) A person who intends to make a firearm must submit the application to make a firearm, Form 1, directly, in duplicate, to the Director in accordance with the instructions on the form. The Director will consider the application for approval or disapproval. If the application is approved, the Director will return the original to the applicant and retain the duplicate.
</P>
<P>(b) In addition to any other records checks the Director may conduct to determine whether the applicant would be violating the law by making or possessing a firearm, the Director must contact the National Instant Criminal Background Check System.
</P>
<P>(c) Upon receiving the approved application, the maker may make the described firearm. The maker must not, under any circumstances, make the firearm until the Director has approved and returned the application with the National Firearms Act stamp affixed.
</P>
<P>(d) If the Director disapproves the application, the Director will return to the applicant the original Form 1 and the remittance submitted by the applicant and will include on the form the reason for disapproving the application.
</P>
<CITA TYPE="N">[ATF-2025R-21F, 91 FR 24364, May 6, 2026]


</CITA>
</DIV8>


<DIV8 N="§ 479.65" NODE="27:3.0.1.2.4.5.21.5" TYPE="SECTION">
<HEAD>§ 479.65   Denial of application.</HEAD>
<P>An application to make a firearm shall not be approved by the Director if the making or possession of the firearm would place the person making the firearm in violation of law.


</P>
</DIV8>


<DIV8 N="§ 479.66" NODE="27:3.0.1.2.4.5.21.6" TYPE="SECTION">
<HEAD>§ 479.66   Subsequent transfer of firearms.</HEAD>
<P>Where a firearm which has been made in compliance with 26 U.S.C. 5821, and the regulations contained in this part, is to be transferred subsequently, the transfer provisions of the firearms laws and regulations must be complied with. (See subpart F of this part).
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.67" NODE="27:3.0.1.2.4.5.21.7" TYPE="SECTION">
<HEAD>§ 479.67   Cancellation of stamp.</HEAD>
<P>The person affixing to a Form 1 (Firearms) a “National Firearms Act” stamp shall cancel it by writing or stamping thereon, in ink, his initials, and the day, month and year, in such manner as to render it unfit for reuse. The cancellation shall not so deface the stamp as to prevent its denomination and genuineness from being readily determined.


</P>
</DIV8>

</DIV7>


<DIV7 N="22" NODE="27:3.0.1.2.4.5.22" TYPE="SUBJGRP">
<HEAD>Exceptions to Tax on Making Firearms</HEAD>


<DIV8 N="§ 479.68" NODE="27:3.0.1.2.4.5.22.8" TYPE="SECTION">
<HEAD>§ 479.68   Qualified manufacturer.</HEAD>
<P>A manufacturer qualified under this part to engage in such business may make firearms without payment of the making tax. However, such manufacturer shall report and register each firearm made in the manner prescribed by this part.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-271, 53 FR 17551, May 17, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.69" NODE="27:3.0.1.2.4.5.22.9" TYPE="SECTION">
<HEAD>§ 479.69   Making a firearm for the United States.</HEAD>
<P>A firearm may be made by, or on behalf of, the United States or any department, independent establishment, or agency thereof without payment of the making tax. However, if a firearm is to be made on behalf of the United States, the maker must file an application, in duplicate, on Form 1 (Firearms) and obtain the approval of the Director in the manner prescribed in § 479.62.


</P>
</DIV8>


<DIV8 N="§ 479.70" NODE="27:3.0.1.2.4.5.22.10" TYPE="SECTION">
<HEAD>§ 479.70   Certain government entities.</HEAD>
<P>A firearm may be made without payment of the making tax by, or on behalf of, any State, or possession of the United States, any political subdivision thereof, or any official police organization of such a government entity engaged in criminal investigations. Any person making a firearm under this exemption shall first file an application, in duplicate, on Form 1 (Firearms) and obtain the approval of the Director as prescribed in § 479.62.


</P>
</DIV8>

</DIV7>


<DIV7 N="23" NODE="27:3.0.1.2.4.5.23" TYPE="SUBJGRP">
<HEAD>Registration</HEAD>


<DIV8 N="§ 479.71" NODE="27:3.0.1.2.4.5.23.11" TYPE="SECTION">
<HEAD>§ 479.71   Proof of registration.</HEAD>
<P>The approval by the Director of an application, Form 1 (Firearms), to make a firearm under this subpart shall effectuate registration of the firearm described in the Form 1 (Firearms) to the person making the firearm. The original Form 1 (Firearms) showing approval by the Director shall be retained by the maker to establish proof of his registration of the firearm described therein, and shall be made available to any ATF officer on request.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="F" NODE="27:3.0.1.2.4.6" TYPE="SUBPART">
<HEAD>Subpart F—Transfer Tax</HEAD>


<DIV8 N="§ 479.81" NODE="27:3.0.1.2.4.6.24.1" TYPE="SECTION">
<HEAD>§ 479.81   Tax scope.</HEAD>
<P>Except as otherwise provided in this part, each NFA firearm transfer in the United States is subject to a transfer tax. The Director indicates that the transferor has paid the tax and ATF has approved the application by adding a stamp of the proper denomination, bearing the words “National Firearms Act.” The Director maintains the stamps and must affix or apply one to each approved application form, as provided in this subpart. The stamps may be adhesive, in electronic form, or in another form designated by the Director.
</P>
<CITA TYPE="N">[ATF 2025R-45F, 91 FR 25118, May 8, 2026]




</CITA>
</DIV8>


<DIV8 N="§ 479.82" NODE="27:3.0.1.2.4.6.24.2" TYPE="SECTION">
<HEAD>§ 479.82   Transfer tax rate.</HEAD>
<P>(a) The transfer tax imposed with respect to NFA firearms transferred within the United States is at the rate of—
</P>
<P>(1) $200 for each firearm transferred, in the case of a machine gun or a destructive device; and
</P>
<P>(2) $0 for any firearm transferred that is not described in paragraph (a)(1) of this section.
</P>
<P>(b) The transferor must pay the transfer tax.
</P>
<CITA TYPE="N">[ATF 2025R-45F, 91 FR 25118, May 8, 2026]




</CITA>
</DIV8>


<DIV8 N="§ 479.83" NODE="27:3.0.1.2.4.6.24.3" TYPE="SECTION">
<HEAD>§ 479.83   Transfer tax in addition to import duty.</HEAD>
<P>The transfer tax imposed by section 5811, I.R.C., is in addition to any import duty.


</P>
</DIV8>


<DIV7 N="24" NODE="27:3.0.1.2.4.6.24" TYPE="SUBJGRP">
<HEAD>Application and Order for Transfer of Firearm</HEAD>


<DIV8 N="§ 479.84" NODE="27:3.0.1.2.4.6.24.4" TYPE="SECTION">
<HEAD>§ 479.84   Applying to transfer.</HEAD>
<P>(a) <I>General.</I> Except as otherwise provided in this subpart, no firearm may be transferred in the United States unless an application, Form 4 (5320.4), Application for Tax Paid Transfer and Registration of Firearm, in duplicate, executed under the penalties of perjury, to transfer the firearm and register it to the transferee has been filed with and approved by the Director. The application shall be filed by the transferor. If the transferee is not a licensed manufacturer, importer, or dealer qualified under this part and is a partnership, company (including a Limited Liability Company (LLC)), association, trust, or corporation, all information on the Form 4 application shall be furnished for each responsible person of the transferee.
</P>
<P>(b) <I>Preparation of ATF Form 4.</I> All of the information called for on Form 4 shall be provided, including:
</P>
<P>(1) Type of firearm being transferred. The applicant must remit $200 with the application for a machine gun or destructive device, or $0 for all other firearms, in accordance with the instructions on the form;
</P>
<P>(2) The identity of the transferor by name and address and, if the transferor is other than a natural person, the title or legal status of the person executing the application in relation to the transferor;
</P>
<P>(3) The transferor's Federal firearms license number (if any);
</P>
<P>(4) The transferor's special (occupational) tax stamp (if any);
</P>
<P>(5) The identity of the transferee by name and address and, if the transferee is a person not qualified as a manufacturer, importer, or dealer under this part, the transferee shall be further identified in the manner prescribed in § 479.85;
</P>
<P>(6) The transferee's Federal firearms license number (if any);
</P>
<P>(7) The transferee's special (occupational) tax stamp (if applicable); and
</P>
<P>(8) A description of the firearm to be transferred by name and address of the manufacturer or importer (if known); caliber, gauge, or size; model; serial number; in the case of a short-barreled shotgun or a short-barreled rifle, the length of the barrel; in the case of a weapon made from a rifle or shotgun, the overall length of the weapon and the length of the barrel; and any other identifying marks on the firearm. In the event the firearm does not bear a serial number, the applicant shall obtain a serial number from ATF and shall stamp (impress) or otherwise conspicuously place such serial number on the firearm in a manner not susceptible of being readily obliterated, altered, or removed.
</P>
<P>(9) If the transferee (including, if other than an individual, any responsible person) is an alien admitted under a nonimmigrant visa, applicable documentation demonstrating that the nonimmigrant alien falls within an exception to 18 U.S.C. 922(g)(5)(B) under 18 U.S.C. 922(y)(2), or has obtained a waiver of that provision under 18 U.S.C. 922(y)(3).
</P>
<P>(c) <I>Notification of chief law enforcement officer.</I> Prior to the submission of the application to the Director, all transferees and responsible persons shall forward a completed copy of Form 4 or a completed copy of Form 5320.23, respectively, to the chief law enforcement officer of the locality in which the transferee or responsible person is located. The chief law enforcement officer is the local chief of police, county sheriff, head of the State police, State or local district attorney or prosecutor. If the transferee is not a licensed manufacturer, importer, or dealer qualified under this part and is a partnership, company, association, or corporation, for purposes of this section, it is considered located at its principal office or principal place of business; if the transferee is not a licensed manufacturer, importer, or dealer qualified under this part and is a trust, for purposes of this section, it is considered located at the primary location at which the firearm will be maintained.
</P>
<P>(d) <I>Approval of Form 4.</I> If the application is approved, the Director will affix a National Firearms Act stamp to the original application in the space provided therefor and properly cancel the stamp (<I>see</I> § 479.87). The approved application will then be returned to the transferor.
</P>
<CITA TYPE="N">[ATF-41F, 81 FR 2722, Jan. 15, 2016, as amended by ATF 2025R-45F, 91 FR 25118, May 8, 2026]


</CITA>
</DIV8>


<DIV8 N="§ 479.85" NODE="27:3.0.1.2.4.6.24.5" TYPE="SECTION">
<HEAD>§ 479.85   Identification of transferee.</HEAD>
<P>(a) If the transferee is an individual, such person shall:
</P>
<P>(1) Securely attach to each copy of the Form 4, in the space provided on the form, a 2 x 2-inch photograph of the applicant, clearly showing a full front view of the features of the applicant with head bare, with the distance from the top of the head to the point of the chin approximately 1
<FR>1/4</FR> inches, and which shall have been taken within 1 year prior to the date of the application; and
</P>
<P>(2) Attach to the application two properly completed FBI Forms FD-258 (Fingerprint Card). The fingerprints must be clear for accurate classification and should be taken by someone properly equipped to take them.
</P>
<P>(b) If the transferee is not a licensed manufacturer, importer, or dealer qualified under this part and is a partnership, company, association, trust, or corporation, such person shall:
</P>
<P>(1) Be identified on the Form 4 by the name and exact location of the place of business, including the name and number of the building and street, and the name of the county in which the business is located or, in the case of a trust, the primary location at which the firearm will be maintained. In the case of two or more locations, the address shown shall be the principal place of business (or principal office, in the case of a corporation) or, in the case of a trust, the primary location at which the firearm will be maintained;
</P>
<P>(2) Except as provided in paragraph (c) of this section, attach to the application—
</P>
<P>(i) Documentation evidencing the existence and validity of the entity, which includes complete and unredacted copies of partnership agreements, articles of incorporation, corporate registration, and declarations of trust, with any trust schedules, attachments, exhibits, and enclosures;
</P>
<P>(ii) A completed ATF Form 5320.23 for each responsible person. Form 5320.23 requires certain identifying information, including the responsible person's full name, position, home address, date of birth, and country of citizenship if other than the United States;
</P>
<P>(iii) In the space provided on Form 5320.23, a 2 x 2-inch photograph of each responsible person, clearly showing a full front view of the features of the responsible person with head bare, with the distance from the top of the head to the point of the chin approximately 1
<FR>1/4</FR> inches, and which shall have been taken within 1 year prior to the date of the application; and
</P>
<P>(iv) Two properly completed FBI Forms FD-258 (Fingerprint Card) for each responsible person. The fingerprints must be clear for accurate classification and should be taken by someone properly equipped to take them.
</P>
<P>(c) If the applicant entity has had an application approved as a maker or transferee within the preceding 24 months, and there has been no change to the documentation previously provided, the entity may provide a certification that the information has not been changed since the prior approval and shall identify the application for which the documentation had been submitted by form number, serial number, and date approved.
</P>
<CITA TYPE="N">[ATF-41F, 81 FR 2722, Jan. 15, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 479.86" NODE="27:3.0.1.2.4.6.24.6" TYPE="SECTION">
<HEAD>§ 479.86   Action on application.</HEAD>
<P>The Director will consider a completed and properly executed application, Form 4 (Firearms), to transfer a firearm. If the application is approved, the Director will affix the appropriate National Firearms Act stamp, cancel it, and return the original application showing approval to the transferor who may then transfer the firearm to the transferee along with the approved application. The approval of an application, Form 4 (Firearms), by the Director will effectuate registration of the firearm to the transferee. The transferee shall not take possession of a firearm until the application, Form 4 (Firearms), for the transfer filed by the transferor has been approved by the Director and registration of the firearm is effectuated to the transferee. The transferee shall retain the approved application as proof that the firearm described therein is registered to the transferee, and shall make the approved Form 4 (Firearms) available to any ATF officer on request. If the application, Form 4 (Firearms), to transfer a firearm is disapproved by the Director, the original application and the remittance for purchase of the stamp will be returned to the transferor with reasons for the disapproval stated on the application. An application, Form 4 (Firearms), to transfer a firearm shall be denied if the transfer, receipt, or possession of a firearm would place the transferee in violation of law. In addition to any other records checks that may be conducted to determine whether the transfer, receipt, or possession of a firearm would place the transferee in violation of law, the Director shall contact the National Instant Criminal Background Check System.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10509, Mar. 31, 1988, as amended by T.D. ATF-415, 63 FR 58281, Oct. 29, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 479.87" NODE="27:3.0.1.2.4.6.24.7" TYPE="SECTION">
<HEAD>§ 479.87   Cancellation of stamp.</HEAD>
<P>The method of cancellation of the stamp required by this subpart as prescribed in § 479.67 shall be used.


</P>
</DIV8>

</DIV7>


<DIV7 N="25" NODE="27:3.0.1.2.4.6.25" TYPE="SUBJGRP">
<HEAD>Exemptions Relating to Transfers of Firearms</HEAD>


<DIV8 N="§ 479.88" NODE="27:3.0.1.2.4.6.25.8" TYPE="SECTION">
<HEAD>§ 479.88   Special (occupational) taxpayers.</HEAD>
<P>(a) A firearm registered to a person qualified under this part to engage in business as an importer, manufacturer, or dealer may be transferred by that person without payment of the transfer tax to any other person qualified under this part to manufacture, import, or deal in firearms.
</P>
<P>(b) The exemption provided in paragraph (a) of this section shall be obtained by the transferor of the firearm filing with the Director an application, Form 3 (Firearms), Application for Tax-exempt Transfer of Firearm and Registration to Special (Occupational) Taxpayer, in duplicate, executed under the penalties of perjury. The application, Form 3 (Firearms), shall (1) show the name and address of the transferor and of the transferee, (2) identify the Federal firearms license and special (occupational) tax stamp of the transferor and of the transferee, (3) show the name and address of the manufacturer and the importer of the firearm, if known, (4) show the type, model, overall length (if applicable), length of barrel, caliber, gauge or size, serial number, and other marks of identification of the firearm, and (5) contain a statement by the transferor that he is entitled to the exemption because the transferee is a person qualified under this part to manufacture, import, or deal in firearms. If the Director approves an application, Form 3 (Firearms), he shall return the original Form 3 (Firearms) to the transferor with the approval noted thereon. Approval of an application, Form 3 (Firearms), by the Director shall remove registration of the firearm reported thereon from the transferor and shall effectuate the registration of that firearm to the transferee. Upon receipt of the approved Form 3 (Firearms), the transferor shall deliver same with the firearm to the transferee. The transferor shall not transfer the firearm to the transferee until his application, Form 3 (Firearms), has been approved by the Director and the original thereof has been returned to the transferor. If the Director disapproves the application, Form 3 (Firearms), he shall return the original Form 3 (Firearms) to the transferor with the reasons for the disapproval stated thereon.
</P>
<P>(c) The transferor shall be responsible for establishing the exempt status of the transferee before making a transfer under the provisions of this section. Therefore, before engaging in transfer negotiations with the transferee, the transferor should satisfy himself as to the claimed exempt status of the transferee and the bona fides of the transaction. If not fully satisfied, the transferor should communicate with the Director, report all circumstances regarding the proposed transfer, and await the Director's advice before making application for the transfer. An unapproved transfer or a transfer to an unauthorized person may subject the transferor to civil and criminal liabilities. (See 26 U.S.C. 5852, 5861, and 5871.)
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-271, 53 FR 17551, May 17, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.89" NODE="27:3.0.1.2.4.6.25.9" TYPE="SECTION">
<HEAD>§ 479.89   Transfers to the United States.</HEAD>
<P>A firearm may be transferred to the United States or any department, independent establishment or agency thereof without payment of the transfer tax. However, the procedures for the transfer of a firearm as provided in § 479.90 shall be followed in a tax-exempt transfer of a firearm under this section, unless the transferor is relieved of such requirement under other provisions of this part.


</P>
</DIV8>


<DIV8 N="§ 479.90" NODE="27:3.0.1.2.4.6.25.10" TYPE="SECTION">
<HEAD>§ 479.90   Certain government entities.</HEAD>
<P>(a) A firearm may be transferred without payment of the transfer tax to or from any State, possession of the United States, any political subdivision thereof, or any official police organization of such a governmental entity engaged in criminal investigations.
</P>
<P>(b) The exemption provided in paragraph (a) of this section shall be obtained by the transferor of the firearm filing with the Director an application, Form 5 (Firearms), Application for Tax-exempt Transfer and Registration of Firearm, in duplicate, executed under the penalties of perjury. The application shall (1) show the name and address of the transferor and of the transferee, (2) identify the Federal firearms license and special (occupational) tax stamp, if any, of the transferor and of the transferee, (3) show the name and address of the manufacturer and the importer of the firearm, if known, (4) show the type, model, overall length (if applicable), length of barrel, caliber, gauge or size, serial number, and other marks of identification of the firearm, and (5) contain a statement by the transferor that the transferor is entitled to the exemption because either the transferor or the transferee is a governmental entity coming within the purview of paragraph (a) of this section. In the case of a transfer of a firearm by a governmental entity to a transferee who is a person not qualified as a manufacturer, importer, or dealer under this part, the transferee shall be further identified in the manner prescribed in § 479.85. If the Director approves an application, Form 5 (Firearms), the original Form 5 (Firearms) shall be returned to the transferor with the approval noted thereon. Approval of an application, Form 5 (Firearms), by the Director shall effectuate the registration of that firearm to the transferee. Upon receipt of the approved Form 5 (Firearms), the transferor shall deliver same with the firearm to the transferee. The transferor shall not transfer the firearm to the transferee until the application, Form 5 (Firearms), has been approved by the Director and the original thereof has been returned to the transferor. If the Director disapproves the application, Form 5 (Firearms), the original Form 5 (Firearms) shall be returned to the transferor with the reasons for the disapproval stated thereon. An application by a governmental entity to transfer a firearm shall be denied if the transfer, receipt, or possession of a firearm would place the transferee in violation of law.
</P>
<P>(c) The transferor shall be responsible for establishing the exempt status of the transferee before making a transfer under the provisions of this section. Therefore, before engaging in transfer negotiations with the transferee, the transferor should satisfy himself of the claimed exempt status of the transferee and the bona fides of the transaction. If not fully satisfied, the transferor should communicate with the Director, report all circumstances regarding the proposed transfer, and await the Director's advice before making application for transfer. An unapproved transfer or a transfer to an unauthorized person may subject the transferor to civil and criminal liabilities. (See 26 U.S.C. 5852, 5861, and 5871.)
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-241, 51 FR 39632, Oct. 29, 1986; T.D. ATF-270, 53 FR 10510, Mar. 31, 1988; ATF-41F, 81 FR 2723, Jan. 15, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 479.90a" NODE="27:3.0.1.2.4.6.25.11" TYPE="SECTION">
<HEAD>§ 479.90a   Estates.</HEAD>
<P>(a) The executor, administrator, personal representative, or other person authorized under State law to dispose of property in an estate (collectively “executor”) may possess a firearm registered to a decedent during the term of probate without such possession being treated as a “transfer” as defined in § 479.11. No later than the close of probate, the executor must submit an application to transfer the firearm to beneficiaries or other transferees in accordance with this section. If the transfer is to a beneficiary, the executor shall file an ATF Form 5 (5320.5), Application for Tax Exempt Transfer and Registration of Firearm, to register a firearm to any beneficiary of an estate in accordance with § 479.90. The executor will identify the estate as the transferor, and will sign the form on behalf of the decedent, showing the executor's title (<I>e.g.,</I> executor, administrator, personal representative, etc.) and the date of filing. The executor must also provide the documentation prescribed in paragraph (c) of this section.
</P>
<P>(b) If there are no beneficiaries of the estate or the beneficiaries do not wish to possess the registered firearm, the executor will dispose of the property outside the estate (<I>i.e.,</I> to a non-beneficiary). The executor shall file an ATF Form 4 (5320.4), Application for Tax Paid Transfer and Registration of Firearm, in accordance with § 479.84. The executor, administrator, personal representative, or other authorized person must also provide documentation prescribed in paragraph (c) of this section.
</P>
<P>(c) The executor, administrator, personal representative, or other person authorized under State law to dispose of property in an estate shall submit with the transfer application documentation of the person's appointment as executor, administrator, personal representative, or as an authorized person, a copy of the decedent's death certificate, a copy of the will (if any), any other evidence of the person's authority to dispose of property, and any other document relating to, or affecting the disposition of firearms from the estate.
</P>
<CITA TYPE="N">[ATF-41F, 81 FR 2723, Jan. 15, 2016]


</CITA>
</DIV8>


<DIV8 N="§ 479.91" NODE="27:3.0.1.2.4.6.25.12" TYPE="SECTION">
<HEAD>§ 479.91   Unserviceable firearms.</HEAD>
<P>An unserviceable firearm may be transferred as a curio or ornament without payment of the transfer tax. However, the procedures for the transfer of a firearm as provided in § 479.90 shall be followed in a tax-exempt transfer of a firearm under this section, except a statement shall be entered on the transfer application, Form 5 (Firearms), by the transferor that he is entitled to the exemption because the firearm to be transferred is unservicable and is being transferred as a curio or ornament. An unapproved transfer, the transfer of a firearm under the provisions of this section which is in fact not an unserviceable firearm, or the transfer of an unserviceable firearm as something other than a curio or ornament, may subject the transferor to civil and criminal liabilities. (See 26 U.S.C. 5811, 5852, 5861, and 5871.)
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.92" NODE="27:3.0.1.2.4.6.25.13" TYPE="SECTION">
<HEAD>§ 479.92   Transportation of firearms to effect transfer.</HEAD>
<P>Notwithstanding any provision of § 478.28 of this chapter, it shall not be required that authorization be obtained from the Director for the transportation in interstate or foreign commerce of a firearm in order to effect the transfer of a firearm authorized under the provisions of this subpart.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10510, Mar. 31, 1988]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="26" NODE="27:3.0.1.2.4.6.26" TYPE="SUBJGRP">
<HEAD>Other Provisions</HEAD>


<DIV8 N="§ 479.93" NODE="27:3.0.1.2.4.6.26.14" TYPE="SECTION">
<HEAD>§ 479.93   Transfers of firearms to certain persons.</HEAD>
<P>Where the transfer of a destructive device, machine gun, short-barreled shotgun, or short-barreled rifle is to be made by a person licensed under the provisions of Title I of the Gun Control Act of 1968 (82 Stat. 1213) to a person not so licensed, the sworn statement required by § 478.98 of this chapter shall be attached to and accompany the transfer application required by this subpart.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:3.0.1.2.4.7" TYPE="SUBPART">
<HEAD>Subpart G—Registration and Identification of Firearms</HEAD>


<DIV8 N="§ 479.101" NODE="27:3.0.1.2.4.7.27.1" TYPE="SECTION">
<HEAD>§ 479.101   Registration of firearms.</HEAD>
<P>(a) The Director shall maintain a central registry of all firearms in the United States which are not in the possession of or under the control of the United States. This registry shall be known as the National Firearms Registration and Transfer Record and shall include:
</P>
<P>(1) Identification of the firearm as required by this part;
</P>
<P>(2) Date of registration; and
</P>
<P>(3) Identification and address of person entitled to possession of the firearm as required by this part.
</P>
<P>(b) Each manufacturer, importer, and maker shall register each firearm he manufactures, imports, or makes in the manner prescribed by this part. Each firearm transferred shall be registered to the transferee by the transferor in the manner prescribed by this part. No firearm may be registered by a person unlawfully in possession of the firearm except during an amnesty period established under section 207 of the Gun Control Act of 1968 (82 Stat. 1235).
</P>
<P>(c) A person shown as possessing firearms by the records maintained by the Director pursuant to the National Firearms Act (26 U.S.C. Chapter 53) in force on October 31, 1968, shall be considered to have registered the firearms in his possession which are disclosed by that record as being in his possession on October 31, 1968.
</P>
<P>(d) The National Firearms Registration and Transfer Record shall include firearms registered to the possessors thereof under the provisions of section 207 of the Gun Control Act of 1968.
</P>
<P>(e) A person possessing a firearm registered to him shall retain proof of registration which shall be made available to any ATF officer upon request.
</P>
<P>(f) A firearm not identified as required by this part shall not be registered.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.102" NODE="27:3.0.1.2.4.7.27.2" TYPE="SECTION">
<HEAD>§ 479.102   Identification of firearms.</HEAD>
<P>(a) <I>Identification required.</I> Except as otherwise provided in this section, you, as a manufacturer, importer, or maker of a firearm, must legibly identify the firearm as follows:
</P>
<P>(1) <I>Serial number, name, place of business.</I> By engraving, casting, stamping (impressing), or otherwise conspicuously placing or causing to be engraved, cast, stamped (impressed) or otherwise placed on the frame or receiver thereof, an individual serial number, in a manner not susceptible of being readily obliterated, altered, or removed. The serial number must not duplicate any serial number placed by you on any other firearm. The frame or receiver must also be marked with either: Your name (or recognized abbreviation), and city and State (or recognized abbreviation) where you as a manufacturer or importer maintain your place of business, or in the case of a maker, where you made the firearm; or if a manufacturer or importer, your name (or recognized abbreviation) and the serial number that begins with your abbreviated Federal firearms license number, which is the first three and last five digits, as a prefix to a unique identification number, followed by a hyphen, <I>e.g.,</I> “12345678-[unique identification number]”; and
</P>
<P>(2) <I>Model, caliber or gauge, foreign manufacturer, country of manufacture.</I> By engraving, casting, stamping (impressing), or otherwise conspicuously placing or causing to be engraved, cast, stamped (impressed) or placed on the frame or receiver, or barrel or pistol slide (if applicable) thereof certain additional information. This information must be placed in a manner not susceptible of being readily obliterated, altered, or removed. The additional information shall include:
</P>
<P>(i) The model, if such designation has been made;
</P>
<P>(ii) The caliber or gauge;
</P>
<P>(iii) When applicable, the name of the foreign manufacturer or maker; and
</P>
<P>(iv) In the case of an imported firearm, the name of the country in which it was manufactured. For additional requirements relating to imported firearms, see Customs regulations at 19 CFR part 134.
</P>
<P>(3) <I>Multi-piece frame or receiver.</I> In the case of a multi-piece frame or receiver, the modular subpart that is the outermost housing or structure designed to house, hold, or contain either the primary energized component of a handgun, breech blocking or sealing component of a projectile weapon other than a handgun, or internal sound reduction component of a firearm muffler or firearm silencer, as the case may be, shall be the subpart of a multi-piece frame or receiver identified in accordance with this section. If more than one subpart is similarly designed to house, hold, or contain such primary component (<I>e.g.,</I> left and right halves), each of those subparts must be identified with the same serial number and associated licensee information not duplicated on any other frame or receiver. The identified subpart(s) of a complete (assembled or unassembled) multi-piece frame or receiver shall not be removed and replaced (<I>see</I> § 478.34 of this subchapter, 18 U.S.C. 922(k), and 26 U.S.C. 5861(g) and (h)), unless—
</P>
<P>(i) The subpart replacement is not a firearm under 26 U.S.C. 5845;
</P>
<P>(ii) The subpart replacement is identified by the qualified manufacturer of the original subpart with the same serial number and associated licensee information in the manner prescribed by this section; and
</P>
<P>(iii) The original subpart is destroyed under the manufacturer's control or direct supervision prior to such placement.
</P>
<P>(4) <I>Frame or receiver, machine gun conversion part, or silencer part disposed of separately.</I> Each part defined as a frame or receiver or modular subpart thereof described in paragraph (a)(3) of this section, machinegun, or firearm muffler or firearm silencer that is not a component part of a complete weapon or complete muffler or silencer device at the time it is sold, shipped, or otherwise disposed of by you must be identified as required by this section with an individual serial number not duplicated on any other firearm and all additional identifying information, except that the model designation and caliber or gauge may be omitted if that information is unknown at the time the part is identified.
</P>
<P>(5) <I>Size and depth of markings.</I> The engraving, casting, or stamping (impressing) of the serial number and additional information must be to a minimum depth of .003 inch, and the serial number and any associated license number in a print size no smaller than 
<FR>1/16</FR> inch. The size of the serial and license number is measured as the distance between the latitudinal ends of the character impression bottoms (bases). The depth of all markings required by this section is measured from the flat surface of the metal and not the peaks or ridges.
</P>
<P>(6) <I>Period of time to identify firearms.</I> You, as a manufacturer, shall identify a complete weapon or complete muffler or silencer device no later than close of the next business day following the date the entire manufacturing process has ended for the weapon or device, or prior to disposition, whichever is sooner. You must identify each part or modular subpart defined as a machine gun (frame or receiver, or conversion part) or muffler or silencer that is not a component part of a complete weapon or complete muffler or silencer device at the time it is sold, shipped, or otherwise disposed of no later than close of the next business day following the date the entire manufacturing process has ended for the part, or prior to disposition, whichever is sooner. For purposes of this paragraph, firearms awaiting materials, parts, or equipment repair to be completed are presumed, absent reliable evidence to the contrary, to be in the manufacturing process. Importers must identify imported firearms within the period prescribed in § 478.112 of this subchapter.
</P>
<P>(7) <I>Meaning of marking terms.</I> For purposes of this section, the term “identify” means placing marks of identification, the terms “legible” and “legibly” mean that the identification markings (including any unique identification number) use exclusively Roman letters (<I>e.g.,</I> A, a, B, b, C, c) and Arabic numerals (<I>e.g.,</I> 1, 2, 3), or solely Arabic numerals, and may include a hyphen, and the terms “conspicuous” and “conspicuously” mean that the identification markings are capable of being easily seen with the naked eye during normal handling of the firearm and are unobstructed by other markings when the complete weapon or device is assembled.
</P>
<P>(b) <I>Exceptions</I>—(1) <I>Alternate means of identification.</I> The Director may authorize other means of identification to identify firearms upon receipt of a letter application or prescribed form from you showing that such other identification is reasonable and will not hinder the effective administration of this part.
</P>
<P>(2) <I>Destructive devices.</I> In the case of a destructive device, the Director may authorize other means of identification to identify that weapon upon receipt of a letter application or prescribed form from you. The application shall show that engraving, casting, or stamping (impressing) such a weapon as required by this section would be dangerous or impracticable and that the alternate means of identification proposed will not hinder the effective administration of this part.
</P>
<P>(3) <I>Adoption of identifying markings.</I> You may adopt existing markings and are not required to mark a serial number or other identifying markings previously placed on a firearm in accordance with this section, as follows:
</P>
<P>(i) <I>Newly manufactured firearms.</I> Manufacturers may adopt the serial number and other identifying markings previously placed on a firearm by another manufacturer provided the firearm has not been sold, shipped, or otherwise disposed of to a person other than a qualified manufacturer, importer, or dealer, and the serial number adopted is not duplicated on any other firearm.
</P>
<P>(ii) <I>Remanufactured or imported firearms.</I> Manufacturers and importers may adopt the serial number or other identifying markings previously placed on a firearm that otherwise meets the requirements of this section that has been sold, shipped, or otherwise disposed of to a person other than a licensee provided that, within the period and in the manner herein prescribed, the manufacturer or importer legibly and conspicuously places, or causes to be placed, on the frame or receiver either: Their name (or recognized abbreviation), and city and State (or recognized abbreviation) where they maintain their place of business; or their name (or recognized abbreviation) and abbreviated Federal firearms license number, which is the first three and last five digits, individually (<I>i.e.,</I> not as a prefix to the serial number adopted) after the letters “FFL”, in the following format: “FFL12345678”. The serial number adopted must not duplicate any serial number adopted or placed on any other firearm, except that if an importer receives two or more firearms with the same foreign manufacturer's serial number, the importer may adopt the serial number by adding letters or numbers to that serial number, and may include a hyphen.
</P>
<P>(iii) <I>Manufacturers performing gunsmithing services.</I> Manufacturers may adopt the serial number or other identifying markings previously placed on a firearm by a qualified manufacturer, importer, or dealer, provided the manufacturer is performing services as a gunsmith (as defined in § 478.11 of this subchapter) on existing firearms not for sale or distribution.
</P>
<P>(4)(i) <I>Firearm muffler or silencer parts transferred between qualified manufacturers for further manufacture or to complete new devices.</I> Manufacturers qualified under this part may transfer a part defined as a muffler or silencer to another qualified manufacturer without immediately identifying or registering such part provided that it is for further manufacture (<I>i.e.,</I> machining, coating, <I>etc.</I>) or manufacturing a complete muffler or silencer device. Once the new device with such part is completed, the manufacturer who completes the device shall identify and register it in the manner and within the period specified in this part for a complete muffler or silencer device.
</P>
<P>(ii) <I>Firearm muffler or silencer replacement parts transferred to qualified manufacturers or dealers to repair existing devices.</I> Manufacturers qualified under this part may transfer a replacement part defined as a muffler or silencer other than a frame or receiver to a qualified manufacturer or dealer without identifying or registering such part provided that it is for repairing a complete muffler or silencer device that was previously identified and registered in accordance with this part and part 478.
</P>
<P>(5) <I>Frames or receivers designed before August 24, 2022.</I> Manufacturers and importers may continue to identify the same component of a firearm defined as a frame or receiver as it existed before August 24, 2022 with the same information required to be marked by paragraphs (a)(1) and (a)(2) of this section that were in effect prior to that date, and any rules necessary to ensure such identification shall remain effective for that purpose. Any frame or receiver with a new design manufactured after August 24, 2022 must be marked with the identifying information and within the period prescribed by this section. For purposes of this paragraph, the term “new design” means that the design of the existing frame or receiver has been functionally modified or altered, as distinguished from performing a cosmetic process that adds to or changes the decoration of the frame or receiver (<I>e.g.,</I> painting or engraving), or by adding or replacing stocks, barrels, or accessories to the frame or receiver.
</P>
<P>(c) <I>Voluntary classification of firearms.</I> The Director may issue a determination (classification) to a person whether an item, including a kit, is a firearm as defined in this part upon receipt of a written request or form prescribed by the Director. Each such voluntary request or form submitted shall be executed under the penalties of perjury with a complete and accurate description of the item or kit, the name and address of the manufacturer or importer thereof, and a sample of such item or kit for examination. A firearm sample must include all accessories and attachments relevant to such classification as each classification is limited to the firearm in the configuration submitted. Each request for classification of a partially complete, disassembled, or nonfunctional item or kit must contain any associated templates, jigs, molds, equipment, or tools that are made available by the seller or distributor of the item or kit to the purchaser or recipient of the item or kit, and any instructions, guides, or marketing materials if they will be made available by the seller or distributor with the item or kit. Upon completion of the examination, the Director may return the sample to the person who made the request unless a determination is made that return of the sample would be or place the person in violation of law. Except for the classification of a specific component as the frame or receiver of a particular weapon, a determination made by the Director under this paragraph shall not be deemed by any person to be applicable to or authoritative with respect to any other sample, design, model, or configuration.
</P>
<CITA TYPE="N">[ATF-2021R-05F, 87 FR 24747, Apr. 26, 2022; 87 FR 51250, Aug. 22, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 479.103" NODE="27:3.0.1.2.4.7.27.3" TYPE="SECTION">
<HEAD>§ 479.103   Registration of firearms manufactured.</HEAD>
<P>Each manufacturer qualified under this part shall file with the Director an accurate notice on Form 2 (Firearms), Notice of Firearms Manufactured or Imported, executed under the penalties of perjury, to show his manufacture of firearms. The notice shall set forth the name and address of the manufacturer, identify his special (occupational) tax stamp and Federal firearms license, and show the date of manufacture, the type, model, length of barrel, overall length, caliber, gauge or size, serial numbers, and other marks of identification of the firearms he manufactures, and the place where the manufactured firearms will be kept. Except as provided in § 479.102(b)(4), all firearms manufactured by him during a single day shall be included on one notice, Form 2 (Firearms), filed by the manufacturer no later than the close of the next business day. The manufacturer shall prepare the notice, Form 2 (Firearms), in duplicate, file the original notice as prescribed herein and keep the copy with the records required by subpart I of this part at the premises covered by his special (occupational) tax stamp. Receipt of the notice, Form 2 (Firearms), by the Director shall effectuate the registration of the firearms listed on that notice. The requirements of this part relating to the transfer of a firearm are applicable to transfers by qualified manufacturers.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by T.D. ATF-487, 68 FR 3752, Jan. 24, 2003, as amended by ATF-2021R-05F, 87 FR 24747, Apr. 26, 2022]


</CITA>
</DIV8>


<DIV8 N="§ 479.104" NODE="27:3.0.1.2.4.7.27.4" TYPE="SECTION">
<HEAD>§ 479.104   Registration of firearms by certain governmental entities.</HEAD>
<P>Any State, any political subdivision thereof, or any official police organization of such a government entity engaged in criminal investigations, which acquires for official use a firearm not registered to it, such as by abandonment or by forfeiture, will register such firearm with the Director by filing Form 10 (Firearms), Registration of Firearms Acquired by Certain Governmental Entities, and such registration shall become a part of the National Firearms Registration and Transfer Record. The application shall identify the applicant, describe each firearm covered by the application, show the location where each firearm usually will be kept, and, if the firearm is unserviceable, the application shall show how the firearm was made unserviceable. This section shall not apply to a firearm merely being held for use as evidence in a criminal proceeding. The Form 10 (Firearms) shall be executed in duplicate in accordance with the instructions thereon. Upon registering the firearm, the Director shall return the original Form 10 (Firearms) to the registrant with notification thereon that registration of the firearm has been made. The registration of any firearm under this section is for official use only and a subsequent transfer will be approved only to other governmental entities for official use.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-241, 51 FR 39633, Oct. 29, 1986; T.D. ATF-270, 53 FR 10510, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV7 N="27" NODE="27:3.0.1.2.4.7.27" TYPE="SUBJGRP">
<HEAD>Machine Guns</HEAD>


<DIV8 N="§ 479.105" NODE="27:3.0.1.2.4.7.27.5" TYPE="SECTION">
<HEAD>§ 479.105   Transfer and possession of machine guns.</HEAD>
<P>(a) <I>General.</I> As provided by 26 U.S.C. 5812 and 26 U.S.C. 5822, an application to make or transfer a firearm shall be denied if the making, transfer, receipt, or possession of the firearm would place the maker or transferee in violation of law. Section 922(o), Title 18, U.S.C., makes it unlawful for any person to transfer or possess a machine gun, except a transfer to or by, or possession by or under the authority of, the United States or any department or agency thereof or a State, or a department, agency, or political subdivision thereof; or any lawful transfer or lawful possession of a machine gun that was lawfully possessed before May 19, 1986. Therefore, notwithstanding any other provision of this part, no application to make, transfer, or import a machine gun will be approved except as provided by this section.
</P>
<P>(b) <I>Machine guns lawfully possessed prior to May 19, 1986.</I> A machine gun possessed in compliance with the provisions of this part prior to May 19, 1986, may continue to be lawfully possessed by the person to whom the machine gun is registered and may, upon compliance with the provisions of this part, be lawfully transferred to and possessed by the transferee.
</P>
<P>(c) <I>Importation and manufacture.</I> Subject to compliance with the provisions of this part, importers and manufacturers qualified under this part may import and manufacture machine guns on or after May 19, 1986, for sale or distribution to any department or agency of the United States or any State or political subdivision thereof, or for use by dealers qualified under this part as sales samples as provided in paragraph (d) of this section. The registration of such machine guns under this part and their subsequent transfer shall be conditioned upon and restricted to the sale or distribution of such weapons for the official use of Federal, State or local governmental entities. Subject to compliance with the provisions of this part, manufacturers qualified under this part may manufacture machine guns on or after May 19, 1986, for exportation in compliance with the Arms Export Control Act (22 U.S.C. 2778) and regulations prescribed thereunder by the Department of State.
</P>
<P>(d) <I>Dealer sales samples.</I> Subject to compliance with the provisions of this part, applications to transfer and register a machine gun manufactured or imported on or after May 19, 1986, to dealers qualified under this part will be approved if it is established by specific information the expected governmental customers who would require a demonstration of the weapon, information as to the availability of the machine gun to fill subsequent orders, and letters from governmental entities expressing a need for a particular model or interest in seeing a demonstration of a particular weapon. Applications to transfer more than one machine gun of a particular model to a dealer must also establish the dealer's need for the quantity of samples sought to be transferred.
</P>
<P>(e) <I>The making of machine guns on or after May 19, 1986.</I> Subject to compliance with the provisions of this part, applications to make and register machine guns on or after May 19, 1986, for the benefit of a Federal, State or local governmental entity (e.g., an invention for possible future use of a governmental entity or the making of a weapon in connection with research and development on behalf of such an entity) will be approved if it is established by specific information that the machine gun is particularly suitable for use by Federal, State or local governmental entities and that the making of the weapon is at the request and on behalf of such an entity.
</P>
<P>(f) <I>Discontinuance of business.</I> Since section 922(o), Title 18, U.S.C., makes it unlawful to transfer or possess a machine gun except as provided in the law, any qualified manufacturer, importer, or dealer intending to discontinue business shall, prior to going out of business, transfer in compliance with the provisions of this part any machine gun manufactured or imported after May 19, 1986, to a Federal, State or local governmental entity, qualified manufacturer, qualified importer, or, subject to the provisions of paragraph (d) of this section, dealer qualified to possess such, machine gun.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10510, Mar. 31, 1988]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="H" NODE="27:3.0.1.2.4.8" TYPE="SUBPART">
<HEAD>Subpart H—Importation and Exportation</HEAD>


<DIV7 N="28" NODE="27:3.0.1.2.4.8.28" TYPE="SUBJGRP">
<HEAD>Importation</HEAD>


<DIV8 N="§ 479.111" NODE="27:3.0.1.2.4.8.28.1" TYPE="SECTION">
<HEAD>§ 479.111   Procedure.</HEAD>
<P>(a) No firearm shall be imported or brought into the United States or any territory under its control or jurisdiction unless the person importing or bringing in the firearm establishes to the satisfaction of the Director that the firearm to be imported or brought in is being imported or brought in for:
</P>
<P>(1) The use of the United States or any department, independent establishment, or agency thereof or any State or possession or any political subdivision thereof; or
</P>
<P>(2) Scientific or research purposes; or
</P>
<P>(3) Testing or use as a model by a registered manufacturer or solely for use as a sample by a registered importer or registered dealer.
</P>
<FP>The burden of proof is affirmatively on any person importing or bringing the firearm into the United States or any territory under its control or jurisdiction to show that the firearm is being imported or brought in under one of the above paragraphs. Any person desiring to import or bring a firearm into the United States under this paragraph shall file with the Director an application on Form 6 (Firearms), Application and Permit for Importation of Firearms, Ammunition and Implements of War, in triplicate, executed under the penalties of perjury. The application shall show the information required by subpart G of Part 478 of this chapter. A detailed explanation of why the importation of the firearm falls within the standards set out in this paragraph shall be attached to the application. The person seeking to import or bring in the firearm will be notified of the approval or disapproval of his application. If the application is approved, the original Form 6 (Firearms) will be returned to the applicant showing such approval and he will present the approved application, Form 6 (Firearms), to the Customs officer at the port of importation. The approval of an application to import a firearm shall be automatically terminated at the expiration of two years from the date of approval unless, upon request, it is further extended by the Director. If the firearm described in the approved application is not imported prior to the expiration of the approval, the Director shall be so notified. Customs officers will not permit release of a firearm from Customs custody, except for exportation, unless covered by an application which has been approved by the Director and which is currently effective. The importation or bringing in of a firearm not covered by an approved application may subject the person responsible to civil and criminal liabilities. (26 U.S.C. 5861, 5871, and 5872.)
</FP>
<P>(b) Part 478 of this chapter also contains requirements and procedures for the importation of firearms into the United States. A firearm may not be imported into the United States under this part unless those requirements and procedures are also complied with by the person importing the firearm.
</P>
<P>(c) The provisions of this subpart shall not be construed as prohibiting the return to the United States or any territory under its control or jurisdiction of a firearm by a person who can establish to the satisfaction of Customs that (1) the firearm was taken out of the United States or any territory under its control or jurisdiction by such person, (2) the firearm is registered to that person, and (3) if appropriate, the authorization required by Part 478 of this chapter for the transportation of such a firearm in interstate or foreign commerce has been obtained by such person.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979; ATF-325, 57 FR 29787, July 7, 1992; ATF-26F, 79 FR 7396, Feb. 7, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 479.112" NODE="27:3.0.1.2.4.8.28.2" TYPE="SECTION">
<HEAD>§ 479.112   Registration of imported firearms.</HEAD>
<P>(a) Each importer shall file with the Director an accurate notice on Form 2 (Firearms), Notice of Firearms Manufactured or Imported, executed under the penalties of perjury, showing the importation of a firearm. The notice shall set forth the name and address of the importer, identify the importer's special (occupational) tax stamp and Federal firearms license, and show the import permit number, the date of release from Customs custody, the type, model, length of barrel, overall length, caliber, gauge or size, serial number, and other marks of identification of the firearm imported, and the place where the imported firearm will be kept. The Form 2 (Firearms) covering an imported firearm shall be filed by the importer no later than fifteen (15) days from the date the firearm was released from Customs custody. The importer shall prepare the notice, Form 2 (Firearms), in duplicate, file the original return as prescribed herein, and keep the copy with the records required by subpart I of this part at the premises covered by the special (occupational) tax stamp. The timely receipt by the Director of the notice, Form 2 (Firearms), and the timely receipt by the Director of the copy of Form 6A (Firearms), Release and Receipt of Imported Firearms, Ammunition and Implements of War, required by § 478.112 of this chapter, covering the weapon reported on the Form 2 (Firearms) by the qualified importer, shall effectuate the registration of the firearm to the importer.
</P>
<P>(b) The requirements of this part relating to the transfer of a firearm are applicable to the transfer of imported firearms by a qualified importer or any other person.
</P>
<P>(c) Subject to compliance with the provisions of this part, an application, Form 6 (Firearms), to import a firearm by an importer or dealer qualified under this part, for use as a sample in connection with sales of such firearms to Federal, State or local governmental entities, will be approved if it is established by specific information attached to the application that the firearm is suitable or potentially suitable for use by such entities. Such information must show why a sales sample of a particular firearm is suitable for such use and the expected governmental customers who would require a demonstration of the firearm. Information as to the availability of the firearm to fill subsequent orders and letters from governmental entities expressing a need for a particular model or interest in seeing a demonstration of a particular firearm would establish suitability for governmental use. Applications to import more than one firearm of a particular model for use as a sample by an importer or dealer must also establish the importer's or dealer's need for the quantity of samples sought to be imported.
</P>
<P>(d) Subject to compliance with the provisions of this part, an application, Form 6 (Firearms), to import a firearm by an importer or dealer qualified under this part, for use as a sample in connection with sales of such firearms to Federal, State or local governmental entities, will be approved if it is established by specific information attached to the application that the firearm is particularly suitable for use by such entities. Such information must show why a sales sample of a particular firearm is suitable for such use and the expected governmental customers who would require a demonstration of the firearm. Information as to the availability of the firearm to fill subsequent orders and letters from governmental entities expressing a need for a particular model or interest in seeing a demonstration of a particular firearm would establish suitability for governmental use. Applications to import more than one firearm of a particular model for use as a sample by an importer or dealer must also establish the importer's or dealer's need for the quantity of samples sought to be imported.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-241, 51 FR 39633, Oct. 29, 1986; T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.113" NODE="27:3.0.1.2.4.8.28.3" TYPE="SECTION">
<HEAD>§ 479.113   Conditional importation.</HEAD>
<P>The Director shall permit the conditional importation or bringing into the United States of any firearm for the purpose of examining and testing the firearm in connection with making a determination as to whether the importation or bringing in of such firearm will be authorized under this subpart. An application under this section shall be filed on Form 6 (Firearms), in triplicate, with the Director. The Director may impose conditions upon any importation under this section including a requirement that the firearm be shipped directly from Customs custody to the Director and that the person importing or bringing in the firearm must agree to either export the weapon or destroy it if a final determination is made that it may not be imported or brought in under this subpart. A firearm so imported or brought into the United States may be released from Customs custody in the manner prescribed by the conditional authorization of the Director.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="29" NODE="27:3.0.1.2.4.8.29" TYPE="SUBJGRP">
<HEAD>Exportation</HEAD>


<DIV8 N="§ 479.114" NODE="27:3.0.1.2.4.8.29.4" TYPE="SECTION">
<HEAD>§ 479.114   Application and permit for exportation of firearms.</HEAD>
<P>Any person desiring to export a firearm without payment of the transfer tax must file with the Director an application on Form 9 (Firearms), Application and Permit for Exportation of Firearms, in quadruplicate, for a permit providing for deferment of tax liability. Part 1 of the application shall show the name and address of the foreign consignee, number of firearms covered by the application, the intended port of exportation, a complete description of each firearm to be exported, the name, address, State Department license number (or date of application if not issued), and identification of the special (occupational) tax stamp of the transferor. Part 1 of the application shall be executed under the penalties of perjury by the transferor and shall be supported by a certified copy of a written order or contract of sale or other evidence showing that the firearm is to be shipped to a foreign designation. Where it is desired to make a transfer free of tax to another person who in turn will export the firearm, the transferor shall likewise file an application supported by evidence that the transfer will start the firearm in course of exportation, except, however, that where such transferor and exporter are registered special-taxpayers the transferor will not be required to file an application on Form 9 (Firearms).


</P>
</DIV8>


<DIV8 N="§ 479.115" NODE="27:3.0.1.2.4.8.29.5" TYPE="SECTION">
<HEAD>§ 479.115   Action by Director.</HEAD>
<P>If the application is acceptable, the Director will execute the permit, Part 2 of Form 9 (Firearms), to export the firearm described on the form and return three copies thereof to the applicant. Issuance of the permit by the Director will suspend assertion of tax liability for a period of six (6) months from the date of issuance. If the application is disapproved, the Director will indicate thereon the reason for such action and return the forms to the applicant.


</P>
</DIV8>


<DIV8 N="§ 479.116" NODE="27:3.0.1.2.4.8.29.6" TYPE="SECTION">
<HEAD>§ 479.116   Procedure by exporter.</HEAD>
<P>Shipment may not be made until the permit, Form 9 (Firearms), is received from the Director. If exportation is to be made by means other than by parcel post, two copies of the form must be addressed to the District Director of Customs at the port of exportation, and must precede or accompany the shipment in order to permit appropriate inspection prior to lading. If exportation is to be made by parcel post, one copy of the form must be presented to the postmaster at the office receiving the parcel who will execute Part 4 of such form and return the form to the exporter for transmittal to the Director. In the event exportation is not effected, all copies of the form must be immediately returned to the Director for cancellation.


</P>
</DIV8>


<DIV8 N="§ 479.117" NODE="27:3.0.1.2.4.8.29.7" TYPE="SECTION">
<HEAD>§ 479.117   Action by Customs.</HEAD>
<P>Upon receipt of a permit, Form 9 (Firearms), in duplicate, authorizing the exportation of firearms, the District Director of Customs may order such inspection as deemed necessary prior to lading of the merchandise. If satisfied that the shipment is proper and the information contained in the permit to export is in agreement with information shown in the shipper's export declaration, the District Director of Customs will, after the merchandise has been duly exported, execute the certificate of exportation (Part 3 of Form 9 (Firearms)). One copy of the form will be retained with the shipper's export declaration and the remaining copy thereof will be transmitted to the Director.


</P>
</DIV8>


<DIV8 N="§ 479.118" NODE="27:3.0.1.2.4.8.29.8" TYPE="SECTION">
<HEAD>§ 479.118   Proof of exportation.</HEAD>
<P>Within a six-month's period from date of issuance of the permit to export firearms, the exporter shall furnish or cause to be furnished to the Director (a) the certificate of exportation (Part 3 of Form 9 (Firearms)) executed by the District Director of Customs as provided in § 479.117, or (b) the certificate of mailing by parcel post (Part 4 of Form 9 (Firearms)) executed by the postmaster of the post office receiving the parcel containing the firearm, or (c) a certificate of landing executed by a Customs officer of the foreign country to which the firearm is exported, or (d) a sworn statement of the foreign consignee covering the receipt of the firearm, or (e) the return receipt, or a reproduced copy thereof, signed by the addressee or his agent, where the shipment of a firearm was made by insured or registered parcel post. Issuance of a permit to export a firearm and furnishing of evidence establishing such exportation under this section will relieve the actual exporter and the person selling to the exporter for exportation from transfer tax liability. Where satisfactory evidence of exportation of a firearm is not furnished within the stated period, the transfer tax will be assessed.


</P>
</DIV8>


<DIV8 N="§ 479.119" NODE="27:3.0.1.2.4.8.29.9" TYPE="SECTION">
<HEAD>§ 479.119   Transportation of firearms to effect exportation.</HEAD>
<P>Notwithstanding any provision of § 478.28 of this chapter, it shall not be required that authorization be obtained from the Director for the transportation in interstate or foreign commerce of a firearm in order to effect the exportation of a firearm authorized under the provisions of this subpart.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.120" NODE="27:3.0.1.2.4.8.29.10" TYPE="SECTION">
<HEAD>§ 479.120   Refunds.</HEAD>
<P>Where, after payment of tax by the manufacturer, a firearm is exported, and satisfactory proof of exportation (see § 479.118) is furnished, a claim for refund may be submitted on Form 843 (see § 479.172). If the manufacturer waives all claim for the amount to be refunded, the refund shall be made to the exporter. A claim for refund by an exporter of tax paid by a manufacturer should be accompanied by waiver of the manufacturer and proof of tax payment by the latter.


</P>
</DIV8>


<DIV8 N="§ 479.121" NODE="27:3.0.1.2.4.8.29.11" TYPE="SECTION">
<HEAD>§ 479.121   Insular possessions.</HEAD>
<P>Transfers of firearms to persons in the insular possessions of the United States are exempt from transfer tax, provided title in cases involving change of title (and custody or control, in cases not involving change of title), does not pass to the transferee or his agent in the United States. However, such exempt transactions must be covered by approved permits and supporting documents corresponding to those required in the case of firearms exported to foreign countries (see §§ 479.114 and 479.115), except that the Director may vary the requirements herein set forth in accordance with the requirements of the governing authority of the insular possession. Shipments to the insular possessions will not be authorized without compliance with the requirements of the governing authorities thereof. In the case of a nontaxable transfer to a person in such insular possession, the exemption extends only to such transfer and not to prior transfers.


</P>
</DIV8>

</DIV7>


<DIV7 N="30" NODE="27:3.0.1.2.4.8.30" TYPE="SUBJGRP">
<HEAD>Arms Export Control Act</HEAD>


<DIV8 N="§ 479.122" NODE="27:3.0.1.2.4.8.30.12" TYPE="SECTION">
<HEAD>§ 479.122   Requirements.</HEAD>
<P>(a) Persons engaged in the business of importing firearms are required by the Arms Export Control Act (22 U.S.C. 2778) to register with the Director. (See Part 447 of this chapter.)
</P>
<P>(b) Persons engaged in the business of exporting firearms caliber .22 or larger are subject to the requirements of a license issued by, or other authorization from, the Secretary of State or Secretary of Commerce. Prior to exporting such firearms, persons intending to export them should register with the Department of State, Directorate of Defense Trade Controls (DDTC), <I>https://www.pmddtc.state.gov,</I> or apply for an export license to the Department of Commerce, Bureau of Industry and Security, <I>https://www.bis.gov/,</I> depending on the relevant export control list. Any such person should also comply with the terms and conditions of an applicable Department of State exemption or Department of Commerce license exception prior to exporting such firearms.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-241, 51 FR 39634, Oct. 29, 1986; T.D. ATF-270, 53 FR 10511, Mar. 31, 1988; ATF-2020R-03D, 91 FR 24357, May 6, 2026]


</CITA>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="I" NODE="27:3.0.1.2.4.9" TYPE="SUBPART">
<HEAD>Subpart I—Records and Returns</HEAD>


<DIV8 N="§ 479.131" NODE="27:3.0.1.2.4.9.31.1" TYPE="SECTION">
<HEAD>§ 479.131   Records.</HEAD>
<P>For the purposes of this part, each manufacturer, importer, and dealer in firearms shall keep and maintain such records regarding the manufacture, importation, acquisition (whether by making, transfer, or otherwise), receipt, and disposition of firearms as are prescribed, and in the manner and place required, by part 478 of this chapter. In addition, each manufacturer, importer, and dealer shall maintain, in chronological order, at his place of business a separate record consisting of the documents required by this part showing the registration of any firearm to him. If firearms owned or possessed by a manufacturer, importer, or dealer are stored or kept on premises other than the place of business shown on his special (occupational) tax stamp, the record establishing registration shall show where such firearms are stored or kept. The records required by this part shall be readily accessible for inspection at all reasonable times by ATF officers.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0032)
</APPRO>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated by 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14942, Apr. 16, 1984; ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:3.0.1.2.4.10" TYPE="SUBPART">
<HEAD>Subpart J—Stolen or Lost Firearms or Documents</HEAD>


<DIV8 N="§ 479.141" NODE="27:3.0.1.2.4.10.31.1" TYPE="SECTION">
<HEAD>§ 479.141   Stolen or lost firearms.</HEAD>
<P>Whenever any registered firearm is stolen or lost, the person losing possession thereof will, immediately upon discovery of such theft or loss, make a report to the Director showing the following:
</P>
<P>(a) Name and address of the person in whose name the firearm is registered, (b) kind of firearm, (c) serial number, (d) model, (e) caliber, (f) manufacturer of the firearm, (g) date and place of theft or loss, and (h) complete statement of facts and circumstances surrounding such theft or loss.


</P>
</DIV8>


<DIV8 N="§ 479.142" NODE="27:3.0.1.2.4.10.31.2" TYPE="SECTION">
<HEAD>§ 479.142   Stolen or lost documents.</HEAD>
<P>When any Forms 1, 2, 3, 4, 5, 6A, or 10 (Firearms) evidencing possession of a firearm is stolen, lost, or destroyed, the person losing possession will immediately upon discovery of the theft, loss, or destruction report the matter to the Director. The report will show in detail the circumstances of the theft, loss, or destruction and will include all known facts which may serve to identify the document. Upon receipt of the report, the Director will make such investigation as appears appropriate and may issue a duplicate document upon such conditions as the circumstances warrant.


</P>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:3.0.1.2.4.11" TYPE="SUBPART">
<HEAD>Subpart K—Examination of Books and Records</HEAD>


<DIV8 N="§ 479.151" NODE="27:3.0.1.2.4.11.31.1" TYPE="SECTION">
<HEAD>§ 479.151   Failure to make returns: Substitute returns.</HEAD>
<P>If any person required by this part to make returns shall fail or refuse to make any such return within the time prescribed by this part or designated by the Director, then the return shall be made by an ATF officer upon inspection of the books, but the making of such return by an ATF officer shall not relieve the person from any default or penalty incurred by reason of failure to make such return.
</P>
<SECAUTH TYPE="N">(53 Stat. 437; 26 U.S.C. 6020)


</SECAUTH>
</DIV8>


<DIV8 N="§ 479.152" NODE="27:3.0.1.2.4.11.31.2" TYPE="SECTION">
<HEAD>§ 479.152   Penalties (records and returns).</HEAD>
<P>Any person failing to keep records or make returns, or making, or causing the making of, a false entry on any application, return or record, knowing such entry to be false, is liable to fine and imprisonment as provided in section 5871, I.R.C.


</P>
</DIV8>

</DIV6>


<DIV6 N="L" NODE="27:3.0.1.2.4.12" TYPE="SUBPART">
<HEAD>Subpart L—Distribution and Sale of Stamps</HEAD>


<DIV8 N="§ 479.161" NODE="27:3.0.1.2.4.12.31.1" TYPE="SECTION">
<HEAD>§ 479.161   National Firearms Act stamps.</HEAD>
<P>“National Firearms Act” stamps evidencing payment of the transfer tax or tax on the making of a firearm are maintained by the Director. The remittance for purchase of the appropriate tax stamp shall be submitted with the application. Upon approval of the application, the Director will cause the appropriate tax to be paid by affixing the appropriate stamp to the application.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.162" NODE="27:3.0.1.2.4.12.31.2" TYPE="SECTION">
<HEAD>§ 479.162   Stamps authorized.</HEAD>
<P>Adhesive stamps of the $5 and $200 denomination, bearing the words “National Firearms Act,” have been prepared and only such stamps shall be used for the payment of the transfer tax and for the tax on the making of a firearm.
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.163" NODE="27:3.0.1.2.4.12.31.3" TYPE="SECTION">
<HEAD>§ 479.163   Reuse of stamps prohibited.</HEAD>
<P>A stamp once affixed to one document cannot lawfully be removed and affixed to another. Any person willfully reusing such a stamp shall be subject to the penalty prescribed by 26 U.S.C. 7208.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated by 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="M" NODE="27:3.0.1.2.4.13" TYPE="SUBPART">
<HEAD>Subpart M—Redemption of or Allowance for Stamps or Refunds</HEAD>


<DIV8 N="§ 479.171" NODE="27:3.0.1.2.4.13.31.1" TYPE="SECTION">
<HEAD>§ 479.171   Redemption of or allowance for stamps.</HEAD>
<P>Where a National Firearms Act stamp is destroyed, mutilated or rendered useless after purchase, and before liability has been incurred, such stamp may be redeemed by giving another stamp in lieu thereof. Claim for redemption of the stamp should be filed on ATF Form 2635 (5620.8) with the Director. Such claim shall be accompanied by the stamp or by a satisfactory explanation of the reasons why the stamp cannot be returned, and shall be filed within 3 years after the purchase of the stamp.
</P>
<SECAUTH TYPE="N">(68A Stat. 830; 26 U.S.C. 6805)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10511, Mar. 31, 1988]


</CITA>
</DIV8>


<DIV8 N="§ 479.172" NODE="27:3.0.1.2.4.13.31.2" TYPE="SECTION">
<HEAD>§ 479.172   Refunds.</HEAD>
<P>As indicated in this part, the transfer tax or tax on the making of a firearm is ordinarily paid by the purchase and affixing of stamps, while special tax stamps are issued in payment of special (occupational) taxes. However, in exceptional cases, transfer tax, tax on the making of firearms, and/or special (occupational) tax may be paid pursuant to assessment. Claims for refunds of such taxes, paid pursuant to assessment, shall be filed on ATF Form 2635 (5620.8) within 3 years next after payment of the taxes. Such claims shall be filed with the Chief, National Firearms Act Branch serving the region in which the tax was paid. (For provisions relating to hand-carried documents and manner of filing, see 26 CFR 301.6091-1(b) and 301.6402-2(a).) When an applicant to make or transfer a firearm wishes a refund of the tax paid on an approved application where the firearm was not made pursuant to an approved Form 1 (Firearms) or transfer of the firearm did not take place pursuant to an approved Form 4 (Firearms), the applicant shall file a claim for refund of the tax on ATF Form 2635 (5620.8) with the Director. The claim shall be accompanied by the approved application bearing the stamp and an explanation why the tax liability was not incurred. Such claim shall be filed within 3 years next after payment of the tax.
</P>
<SECAUTH TYPE="N">(68A Stat. 808, 830; 26 U.S.C. 6511, 6805)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10512, Mar. 31, 1988,as amended by ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="N" NODE="27:3.0.1.2.4.14" TYPE="SUBPART">
<HEAD>Subpart N—Penalties and Forfeitures</HEAD>


<DIV8 N="§ 479.181" NODE="27:3.0.1.2.4.14.31.1" TYPE="SECTION">
<HEAD>§ 479.181   Penalties.</HEAD>
<P>Any person who violates or fails to comply with the requirements of 26 U.S.C. Chapter 53 shall, upon conviction, be subject to the penalties imposed under 26 U.S.C. 5871.
</P>
<CITA TYPE="N">[T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.182" NODE="27:3.0.1.2.4.14.31.2" TYPE="SECTION">
<HEAD>§ 479.182   Forfeitures.</HEAD>
<P>Any firearm involved in any violation of the provisions of 26 U.S.C. Chapter 53, shall be subject to seizure, and forfeiture under the internal revenue laws: <I>Provided, however,</I> That the disposition of forfeited firearms shall be in conformance with the requirements of 26 U.S.C. 5872. In addition, any vessel, vehicle or aircraft used to transport, carry, convey or conceal or possess any firearm with respect to which there has been committed any violation of any provision of 26 U.S.C. Chapter 53, or the regulations in this part issued pursuant thereto, shall be subject to seizure and forfeiture under the Customs laws, as provided by the act of August 9, 1939 (49 U.S.C. App., Chapter 11).
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10512, Mar. 31, 1988]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="O" NODE="27:3.0.1.2.4.15" TYPE="SUBPART">
<HEAD>Subpart O—Other Laws Applicable</HEAD>


<DIV8 N="§ 479.191" NODE="27:3.0.1.2.4.15.31.1" TYPE="SECTION">
<HEAD>§ 479.191   Applicability of other provisions of internal revenue laws.</HEAD>
<P>All of the provisions of the internal revenue laws not inconsistent with the provisions of 26 U.S.C. Chapter 53 shall be applicable with respect to the taxes imposed by 26 U.S.C. 5801, 5811, and 5821 (see 26 U.S.C. 5846).
</P>
<CITA TYPE="N">[T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.192" NODE="27:3.0.1.2.4.15.31.2" TYPE="SECTION">
<HEAD>§ 479.192   Commerce in firearms and ammunition.</HEAD>
<P>For provisions relating to commerce in firearms and ammunition, including the movement of destructive devices, machine guns, short-barreled shotguns, or short-barreled rifles, see 18 U.S.C. Chapter 44, and Part 478 of this chapter issued pursuant thereto.
</P>
<CITA TYPE="N">[36 FR 14256, Aug. 3, 1971. Redesignated by 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979]


</CITA>
</DIV8>


<DIV8 N="§ 479.193" NODE="27:3.0.1.2.4.15.31.3" TYPE="SECTION">
<HEAD>§ 479.193   Arms Export Control Act.</HEAD>
<P>For provisions relating to the registration and licensing of persons engaged in the business of manufacturing, importing or exporting arms, ammunition, or implements of war, see the Arms Export Control Act (22 U.S.C. 2778), and the regulations issued pursuant thereto. (See also Part 447 of this chapter.)
</P>
<CITA TYPE="N">[T.D. ATF-270, 53 FR 10512, Mar. 31, 1988]


</CITA>
</DIV8>

</DIV6>

</DIV5>

</DIV4>


<DIV4 N="C" NODE="27:3.0.1.3" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER C—EXPLOSIVES


</HEAD>

<DIV5 N="555" NODE="27:3.0.1.3.5" TYPE="PART">
<HEAD>PART 555—COMMERCE IN EXPLOSIVES
</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>18 U.S.C. 847.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, unless otherwise noted. Redesignated by T.D. ATF-487, 68 FR 3748, Jan. 24, 2003.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 555 appear by T.D. ATF-487, 68 FR 3748, Jan. 24, 2003.</PSPACE></EDNOTE>

<DIV6 N="A" NODE="27:3.0.1.3.5.1" TYPE="SUBPART">
<HEAD>Subpart A—Introduction</HEAD>


<DIV8 N="§ 555.1" NODE="27:3.0.1.3.5.1.31.1" TYPE="SECTION">
<HEAD>§ 555.1   Scope of regulations.</HEAD>
<P>(a) <I>In general.</I> The regulations contained in this part relate to commerce in explosives and implement Title XI, Regulation of Explosives (18 U.S.C. Chapter 40; 84 Stat. 952), of the Organized Crime Control Act of 1970 (84 Stat. 922), Pub. L. 103-322 (108 Stat. 1796), Pub. L. 104-132 (110 Stat. 1214), and Pub. L. 107-296 (116 Stat. 2135).
</P>
<P>(b) <I>Procedural and substantive requirements.</I> This part contains the procedural and substantive requirements relative to:
</P>
<P>(1) The interstate or foreign commerce in explosive materials;
</P>
<P>(2) The licensing of manufacturers and importers of, and dealers in, explosive materials;
</P>
<P>(3) The issuance of permits;
</P>
<P>(4) The conduct of business by licensees and operations by permittees;
</P>
<P>(5) The storage of explosive materials;
</P>
<P>(6) The records and reports required of licensees and permittees;
</P>
<P>(7) Relief from disabilities under this part;
</P>
<P>(8) Exemptions, unlawful acts, penalties, seizures, and forfeitures; and
</P>
<P>(9) The marking of plastic explosives.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-363, 60 FR 17449, Apr. 6, 1995; T.D. ATF-387, 62 FR 8376, Feb. 25, 1997; ATF No. 1, 68 FR 13780, Mar. 20, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 555.2" NODE="27:3.0.1.3.5.1.31.2" TYPE="SECTION">
<HEAD>§ 555.2   Relation to other provisions of law.</HEAD>
<P>The provisions in this part are in addition to, and are not in lieu of, any other provision of law, or regulations, respecting commerce in explosive materials. For regulations applicable to commerce in firearms and ammunition, see Part 478 of this chapter. For regulations applicable to traffic in machine guns, destructive devices, and certain other firearms, see Part 479 of this chapter. For statutes applicable to the registration and licensing of persons engaged in the business of manufacturing, importing or exporting arms, ammunition, or implements of war, see section 38 of the Arms Export Control Act (22 U.S.C. 2778), and regulations of Part 447 of this chapter and in Parts 121 through 128 of Title 22, Code of Federal Regulations. For statutes applicable to nonmailable materials, see 18 U.S.C. 1716 and implementing regulations. For statutes applicable to water quality standards, see 33 U.S.C. 1341.


</P>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:3.0.1.3.5.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 555.11" NODE="27:3.0.1.3.5.2.31.1" TYPE="SECTION">
<HEAD>§ 555.11   Meaning of terms.</HEAD>
<P>When used in this part, terms are defined as follows in this section. Words in the plural form include the singular, and vice versa, and words indicating the masculine gender include the feminine. The terms “includes” and “including” do not exclude other things not named which are in the same general class or are otherwise within the scope of the term defined.
</P>
<P><I>Act.</I> 18 U.S.C. Chapter 40.
</P>
<P><I>Adjudicated as a mental defective.</I> (a) A determination by a court, board, commission, or other lawful authority that a person, as a result of marked subnormal intelligence, or mental illness, incompetency, condition, or disease:
</P>
<P>(1) Is a danger to himself or to others; or
</P>
<P>(2) Lacks the mental capacity to contract or manage his own affairs.
</P>
<P>(b) The term will include—
</P>
<P>(1) A finding of insanity by a court in a criminal case; and
</P>
<P>(2) Those persons found incompetent to stand trial or found not guilty by reason of lack of mental responsibility by any court or pursuant to articles 50a and 76b of the Uniform Code of Military Justice, 10 U.S.C. 850a, 876b.
</P>
<P><I>Alien.</I> Any person who is not a citizen or national of the United States.
</P>
<P><I>Ammunition.</I> Small arms ammunition or cartridge cases, primers, bullets, or smokeless propellants designed for use in small arms, including percussion caps, and 
<FR>3/32</FR> inch and other external burning pyrotechnic hobby fuses. The term does not include black powder.
</P>
<P><I>Appropriate identifying information.</I> The term means, in relation to an individual:
</P>
<P>(a) The full name, date of birth, place of birth, sex, race, street address, State of residence, telephone numbers (home and work), country or countries of citizenship, and position at the employer's business or operations of responsible persons and employees authorized to possess explosive materials;
</P>
<P>(b) The business name, address, and license or permit number with which the responsible person or employee is affiliated;
</P>
<P>(c) If an alien, INS-issued alien number or admission number; and
</P>
<P>(d) Social security number, as optional information (this information is not required but is helpful in avoiding misidentification when a background check is conducted).
</P>
<P><I>Approved storage facility.</I> A place where explosive materials are stored, consisting of one or more approved magazines, conforming to the requirements of this part and covered by a license or permit issued under this part.
</P>
<P><I>Articles pyrotechnic.</I> Pyrotechnic devices for professional use similar to consumer fireworks in chemical composition and construction but not intended for consumer use. Such articles meeting the weight limits for consumer fireworks but not labeled as such and classified by U.S. Department of Transportation regulations in 49 CFR 172.101 as UN0431 or UN0432.
</P>
<P><I>Artificial barricade.</I> An artificial mound or revetted wall of earth of a minimum thickness of three feet, or any other approved barricade that offers equivalent protection.
</P>
<P><I>ATF.</I> The Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
</P>
<P><I>ATF officer.</I> An officer or employee of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Department of Justice authorized to perform any function relating to the administration or enforcement of this part.
</P>
<P><I>Authority having jurisdiction for fire safety.</I> The fire department having jurisdiction over sites where explosives are manufactured or stored.
</P>
<P><I>Barricaded.</I> The effective screening of a magazine containing explosive materials from another magazine, a building, a railway, or a highway, either by a natural barricade or by an artificial barricade. To be properly barricaded, a straight line from the top of any sidewall of the magazine containing explosive materials to the eave line of any other magazine or building, or to a point 12 feet above the center of a railway or highway, will pass through the natural or artificial barricade.
</P>
<P><I>Blasting agent.</I> Any material or mixture, consisting of fuel and oxidizer, that is intended for blasting and not otherwise defined as an explosive; if the finished product, as mixed for use or shipment, cannot be detonated by means of a number 8 test blasting cap when unconfined. A number 8 test blasting cap is one containing 2 grams of a mixture of 80 percent mercury fulminate and 20 percent potassium chlorate, or a blasting cap of equivalent strength. An equivalent strength cap comprises 0.40-0.45 grams of PETN base charge pressed in an aluminum shell with bottom thickness not to exceed to 0.03 of an inch, to a specific gravity of not less than 1.4 g/cc., and primed with standard weights of primer depending on the manufacturer.
</P>
<P><I>Bulk salutes.</I> Salute components prior to final assembly into aerial shells, and finished salute shells held separately prior to being packed with other types of display fireworks.
</P>
<P><I>Bullet-sensitive explosive materials.</I> Explosive materials that can be exploded by 150-grain M2 ball ammunition having a nominal muzzle velocity of 2700 fps (824 mps) when fired from a .30 caliber rifle at a distance of 100 ft (30.5 m), measured perpendicular. The test material is at a temperature of 70 to 75 degrees F (21 to 24 degrees C) and is placed against a 
<FR>1/2</FR> inch (12.4 mm) steel backing plate.
</P>
<P><I>Bureau.</I> The Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
</P>
<P><I>Business premises.</I> When used with respect to a manufacturer, importer, or dealer, the property on which explosive materials are manufactured, imported, stored or distributed. The premises include the property where the records of a manufacturer, importer, or dealer are kept if different than the premises where explosive materials are manufactured, imported, stored or distributed. When used with respect to a user of explosive materials, the property on which the explosive materials are received or stored. The premises includes the property where the records of the users are kept if different than the premises where explosive materials are received or stored.
</P>
<P><I>Chief, Firearms and Explosives Licensing Center.</I> The ATF official responsible for the issuance and renewal of licenses and permits under this part.
</P>
<P><I>Committed to a mental institution.</I> A formal commitment of a person to a mental institution by a court, board, commission, or other lawful authority. The term includes a commitment to a mental institution involuntarily. The term includes commitment for mental defectiveness or mental illness. It also includes commitments for other reasons, such as for drug use. The term does not include a person in a mental institution for observation or a voluntary admission to a mental institution.
</P>
<P><I>Common or contract carrier.</I> Any individual or organization engaged in the business of transporting passengers or goods.
</P>
<P><I>Consumer fireworks.</I> Any small firework device designed to produce visible effects by combustion and which must comply with the construction, chemical composition, and labeling regulations of the U.S. Consumer Product Safety Commission, as set forth in title 16, Code of Federal Regulations, parts 1500 and 1507. Some small devices designed to produce audible effects are included, such as whistling devices, ground devices containing 50 mg or less of explosive materials, and aerial devices containing 130 mg or less of explosive materials. Consumer fireworks are classified as fireworks UN0336, and UN0337 by the U.S. Department of Transportation at 49 CFR 172.101. This term does not include fused setpieces containing components which together exceed 50 mg of salute powder.
</P>
<P><I>Controlled substance.</I> A drug or other substance, or immediate precursor, as defined in section 102 of the Controlled Substances Act, 21 U.S.C. 802. The term includes, but is not limited to, marijuana, depressants, stimulants, and narcotic drugs. The term does not include distilled spirits, wine, malt beverages, or tobacco, as those terms are defined or used in Subtitle E of the Internal Revenue Code of 1986, as amended.
</P>
<P><I>Crime punishable by imprisonment for a term exceeding one year.</I> Any offense for which the maximum penalty, whether or not imposed, is capital punishment or imprisonment in excess of one year. The term does not include (a) any Federal or State offenses pertaining to antitrust violations, unfair trade practices, restraints of trade, or (b) any State offense (other than one involving a firearm or explosive) classified by the laws of the State as a misdemeanor and punishable by a term of imprisonment of two years or less.
</P>
<P><I>Customs officer.</I> Any officer of U.S. Customs and Border Protection, any commissioned, warrant, or petty officer of the Coast Guard, or any agent or other person authorized by law to perform the duties of a customs officer.
</P>
<P><I>Dealer.</I> Any person engaged in the 

business of distributing explosive materials 

at wholesale or retail.
</P>
<P><I>Detonator.</I> Any device containing a detonating charge that is used for initiating detonation in an explosive. The term includes, but is not limited to, electric blasting caps of instantaneous and delay types, blasting caps for use with safety fuses, detonating-cord delay connectors, and nonelectric instantaneous and delay blasting caps.
</P>
<P><I>Director.</I> The Director, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice.
</P>
<P><I>Director, Industry Operations.</I> The principal field division official responsible for administering regulations in this part.
</P>
<P><I>Discharged under dishonorable conditions.</I> Separation from the U.S. Armed Forces resulting from a dishonorable discharge or dismissal adjudged by general court-martial. The term does not include any separation from the Armed Forces resulting from any other discharge, <I>e.g.,</I> a bad conduct discharge.
</P>
<P><I>Display fireworks.</I> Large fireworks designed primarily to produce visible or audible effects by combustion, deflagration, or detonation. This term includes, but is not limited to, salutes containing more than 2 grains (130 mg) of explosive materials, aerial shells containing more than 40 grams of pyrotechnic compositions, and other display pieces which exceed the limits of explosive materials for classification as “consumer fireworks.” Display fireworks are classified as fireworks UN0333, UN0334 or UN0335 by the U.S. Department of Transportation at 49 CFR 172.101. This term also includes fused setpieces containing components which together exceed 50 mg of salute powder.
</P>
<P><I>Distribute.</I> To sell, issue, give, transfer, or otherwise dispose of. The term does not include a mere change of possession from a person to his agent or employee in connection with the agency or employment.
</P>
<P><I>Executed under penalties of perjury.</I> Signed with the required declaration under the penalties of perjury as provided on or with respect to the return, form, or other document or, where no form of declaration is required, with the declaration:
</P>
<EXTRACT>
<P>“I declare under the penalties of perjury that this—(insert type of document, such as, statement, application, request, certificate), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete”.</P></EXTRACT>
<P><I>Explosive actuated device.</I> Any tool or special mechanized device which is actuated by explosives, but not a propellent actuated device.
</P>
<P><I>Explosive materials.</I> Explosives, blasting agents, water gels and detonators. Explosive materials include, but are not limited to, all items in the “List of Explosive Materials” provided for in § 555.23.
</P>
<P><I>Explosives.</I> Any chemical compound, mixture, or device, the primary or common purpose of which is to function by explosion. The term includes, but is not limited to, dynamite and other high explosives, black powder, pellet powder, initiating explosives, detonators, safety fuses, squibs, detonating cord, igniter cord, and igniters.
</P>
<P><I>Fireworks.</I> Any composition or device designed to produce a visible or an audible effect by combustion, deflagration, or detonation, and which meets the definition of “consumer fireworks” or “display fireworks” as defined by this section.
</P>
<P><I>Fireworks mixing building.</I> Any building or area used for mixing and blending pyrotechnic compositions except wet sparkler mix.
</P>
<P><I>Fireworks nonprocess building.</I> Any office building or other building or area in a fireworks plant where no fireworks, pyrotechnic compositions or explosive materials are processed or stored.
</P>
<P><I>Fireworks plant.</I> All land and buildings thereon used for or in connection with the assembly or processing of fireworks, including warehouses used with or in connection with fireworks plant operations.
</P>
<P><I>Fireworks plant warehouse.</I> Any building or structure used exclusively for the storage of materials which are neither explosive materials nor pyrotechnic compositions used to manufacture or assemble fireworks.
</P>
<P><I>Fireworks process building.</I> Any mixing building; any building in which pyrotechnic compositions or explosive materials is pressed or otherwise prepared for finished and assembly; or any finishing or assembly building.
</P>
<P><I>Fireworks shipping building.</I> A building used for the packing of assorted display fireworks into shipping cartons for individual public displays and for the loading of packaged displays for shipment to purchasers.
</P>
<P><I>Flash powder.</I> An explosive material intended to produce an audible report and a flash of light when ignited which includes but is not limited to oxidizers such as potassium chlorate or potassium perchlorate, and fuels such as sulfur or aluminum powder.
</P>
<P><I>Fugitive from justice.</I> Any person who has fled from the jurisdiction of any court of record to avoid prosecution for any crime or to avoid giving testimony in any criminal proceeding. The term also includes any person who has been convicted of any crime and has fled to avoid imprisonment.
</P>
<P><I>Hardwood.</I> Oak, maple, ash, hickory, or other hard wood, free from loose knots, spaces, or similar defects.
</P>
<P><I>Highway.</I> Any public street, public alley, or public road, including a privately financed, constructed, or maintained road that is regularly and openly traveled by the general public.
</P>
<P><I>Identification document.</I> A document containing the name, residence address, date of birth, and photograph of the holder and which was made or issued by or under the authority of the United States Government, a State, political subdivision of a State, a foreign government, a political subdivision of a foreign government, an international governmental or an international quasi-governmental organization which, when completed with information concerning a particular individual, is of a type intended or commonly accepted for the purpose of identification of individuals.
</P>
<P><I>Importer.</I> Any person engaged in the business of importing or bringing explosive materials into the United States for purposes of sale or distribution.
</P>
<P><I>Indictment.</I> Includes an indictment or information in any court under which a crime punishable by imprisonment for a term exceeding one year may be prosecuted.
</P>
<P><I>Inhabited building.</I> Any building regularly occupied in whole or in part as a habitation for human beings, or any church, schoolhouse, railroad station, store, or other structure where people are accustomed to assemble, except any building occupied in connection with the manufacture, transportation, storage, or use of explosive materials.
</P>
<P><I>Interstate or foreign commerce.</I> Commerce between any place in a State and any place outside of that State, or within any possession of the United States or the District of Columbia, and commerce between places within the same State but through any place outside of that State.
</P>
<P><I>Licensed dealer.</I> A dealer licensed under this part.
</P>
<P><I>Licensed importer.</I> An importer licensed under this part.
</P>
<P><I>Licensed manufacturer.</I> A manufacturer licensed under this part to engage in the business of manufacturing explosive materials for purposes of sale or distribution or for his own use.
</P>
<P><I>Licensee.</I> Any importer, manufacturer, or dealer licensed under this part.
</P>
<P><I>Limited permit.</I> A permit issued to a person authorizing him to receive for his use explosive materials from a licensee or permittee in his state of residence on no more than 6 occasions during the 12-month period in which the permit is valid. A limited permit does not authorize the receipt or transportation of explosive materials in interstate or foreign commerce.
</P>
<P><I>Magazine.</I> Any building or structure, other than an explosives manufacturing building, used for storage of explosive materials.
</P>
<P><I>Manufacturer.</I> Any person engaged in the business of manufacturing explosive materials for purposes of sale or distribution or for his own use.
</P>
<P><I>Mass detonation (mass explosion).</I> Explosive materials mass detonate (mass explode) when a unit or any part of a larger quantity of explosive material explodes and causes all or a substantial part of the remaining material to detonate or explode.
</P>
<P><I>Mental institution.</I> Includes mental health facilities, mental hospitals, sanitariums, psychiatric facilities, and other facilities that provide diagnoses by licensed professionals of mental retardation or mental illness, including a psychiatric ward in a general hospital.
</P>
<P><I>Natural barricade.</I> Natural features of the ground, such as hills, or timber of sufficient density that the surrounding exposures which require protection cannot be seen from the magazine when the trees are bare of leaves.
</P>
<P><I>Number 8 test blasting cap.</I> (See definition of “blasting agent.”)
</P>
<P><I>Permittee.</I> Any user of explosives for a lawful purpose who has obtained either a user permit or a limited permit under this part.
</P>
<P><I>Person.</I> Any individual, corporation, company, association, firm, partnership, society, or joint stock company.
</P>
<P><I>Plywood.</I> Exterior, construction grade (laminated wood) plywood.
</P>
<P><I>Propellant actuated device.</I> (a) Any tool or special mechanized device or gas generator system that is actuated by a propellant or which releases and directs work through a propellant charge.
</P>
<P>(b) The term does not include—
</P>
<P>(1) Hobby rocket motors consisting of ammonium perchlorate composite propellant, black powder, or other similar low explosives, regardless of amount; and
</P>
<P>(2) Rocket-motor reload kits that can be used to assemble hobby rocket motors containing ammonium perchlorate composite propellant, black powder, or other similar low explosives, regardless of amount.
</P>
<P><I>Pyrotechnic compositions.</I> A chemical mixture which, upon burning and without explosion, produces visible, brilliant displays, bright lights, or sounds.
</P>
<P><I>Railway.</I> Any steam, electric, or other railroad or railway which carries passengers for hire.
</P>
<P><I>Region.</I> A geographical region of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice.
</P>
<P><I>Renounced U.S. citizenship.</I> (a) A person has renounced his U.S. citizenship if the person, having been a citizen of the United States, has renounced citizenship either—
</P>
<P>(1) Before a diplomatic or consular officer of the United States in a foreign state pursuant to 8 U.S.C. 1481(a)(5); or
</P>
<P>(2) Before an officer designated by the Attorney General when the United States is in a state of war pursuant to 8 U.S.C. 1481(a)(6).
</P>
<P>(b) The term will not include any renunciation of citizenship that has been reversed as a result of administrative or judicial appeal.
</P>
<P><I>Responsible person.</I> An individual who has the power to direct the management and policies of the applicant pertaining to explosive materials. Generally, the term includes partners, sole proprietors, site managers, corporate officers and directors, and majority shareholders.
</P>
<P><I>Salute.</I> An aerial shell, classified as a display firework, that contains a charge of flash powder and is designed to produce a flash of light and a loud report as the pyrotechnic effect.
</P>
<P><I>Screen barricade.</I> Any barrier that will contain the embers and debris from a fire or deflagration in a process building, thus preventing propagation of fire to other buildings or areas. Such barriers shall be constructed of metal roofing, 
<FR>1/4</FR> to 
<FR>1/2</FR> inch (6 to 13 mm) mesh screen, or equivalent material. The barrier extends from floor level to a height such that a straight line from the top of any side wall of the donor building to the eave line of any exposed building intercepts the screen at a point not less than 5 feet (1.5 m) from the top of the screen. The top 5 feet (1.5 m) of the screen is inclined towards the donor building at an angle of 30 to 45 degrees.
</P>
<P><I>Softwood.</I> Fir, pine, or other soft wood, free from loose knots, spaces, or similar defects.
</P>
<P><I>State.</I> A State of the United States. The term includes the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States.
</P>
<P><I>State of residence.</I> The State in which an individual regularly resides or maintains his home. Temporary stay in a State does not make the State of temporary stay the State of residence.
</P>
<P><I>Theatrical flash powder.</I> Flash powder commercially manufactured in premeasured kits not exceeding 1 ounce and mixed immediately prior to use and intended for use in theatrical shows, stage plays, band concerts, magic acts, thrill shows, and clown acts in circuses.
</P>
<P><I>Unlawful user of or addicted to any controlled substance.</I> A person who uses a controlled substance and has lost the power of self-control with reference to the use of a controlled substance; and any person who is a current user of a controlled substance in a manner other than as prescribed by a licensed physician. Such use is not limited to the use of drugs on a particular day, or within a matter of days or weeks before possession of the explosive materials, but rather that the unlawful use has occurred recently enough to indicate that the individual is actively engaged in such conduct. A person may be an unlawful current user of a controlled substance even though the substance is not being used at the precise time the person seeks to acquire explosive materials or receives or possesses explosive materials. An inference of current use may be drawn from evidence of a recent use or possession of a controlled substance or a pattern of use or possession that reasonably covers the present time, <I>e.g.,</I> a conviction for use or possession of a controlled substance within the past year; multiple arrests for such offenses within the past 5 years if the most recent arrest occurred within the past year; or persons found through a drug test to use a controlled substance unlawfully, provided that the test was administered within the past year. For a current or former member of the Armed Forces, an inference of current use may be drawn from recent disciplinary or other administrative action based on confirmed drug use, <I>e.g.,</I> court-martial conviction, nonjudicial punishment, or an administrative discharge based on drug use or drug rehabilitation failure.
</P>
<P><I>U.S.C.</I> The United States Code.
</P>
<P><I>User-limited permit.</I> A user permit valid only for a single purchase transaction, a new permit being required for a subsequent purchase transaction.
</P>
<P><I>User permit.</I> A permit issued to a person authorizing him (a) to acquire for his own use explosive materials from a licensee in a State other than the State in which he resides or from a foreign country, and (b) to transport explosive materials in interstate or foreign commerce.
</P>
<P><I>Water gels.</I> Explosives or blasting agents that contain a substantial proportion of water.
</P>
<SECAUTH TYPE="N">(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226)
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981]
</CITA>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>For <E T="04">Federal Register</E> citations affecting § 555.11, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at <I>www.govinfo.gov.</I></PSPACE></EDNOTE>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:3.0.1.3.5.3" TYPE="SUBPART">
<HEAD>Subpart C—Administrative and Miscellaneous Provisions</HEAD>


<DIV8 N="§ 555.21" NODE="27:3.0.1.3.5.3.31.1" TYPE="SECTION">
<HEAD>§ 555.21   Forms prescribed.</HEAD>
<P>(a) The Director is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part.
</P>
<P>(b) Requests for forms should be submitted to the ATF Distribution Center (<I>http://www.atf.gov</I>) or made by calling (202) 648-6420.
</P>
<CITA TYPE="N">[T.D. ATF-92, 46 FR 46916, Sept. 23, 1981, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996; ATF-11F, 73 FR 57242, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.22" NODE="27:3.0.1.3.5.3.31.2" TYPE="SECTION">
<HEAD>§ 555.22   Alternate methods or procedures; emergency variations from requirements.</HEAD>
<P>(a) <I>Alternate methods or procedures.</I> The permittee or licensee, on specific approval by the Director as provided by this paragraph, may use an alternate method or procedure in lieu of a method or procedure specifically prescribed in this part. The Director may approve an alternate method or procedure, subject to stated conditions, when he finds that:
</P>
<P>(1) Good cause is shown for the use of the alternate method or procedure;
</P>
<P>(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure and that the alternate method or procedure is substantially equivalent to that specifically prescribed method or procedure; and
</P>
<P>(3) The alternate method or procedure will not be contrary to any provision of law and will not result in an increase in cost to the Government or hinder the effective administration of this part.
</P>
<FP>Where the permittee or licensee desires to employ an alternate method or procedure, he shall submit a written application to the Director, Industry Operations, for transmittal to the Director. The application shall specifically describe the proposed alternate method or procedure and shall set forth the reasons for it. Alternate methods or procedures may not be employed until the application is approved by the Director. The permittee or licensee shall, during the period of authorization of an alternate method or procedure, comply with the terms of the approved application. Authorization of any alternate method or procedure may be withdrawn whenever, in the judgment of the Director, the effective administration of this part is hindered by the continuation of the authorization. As used in this paragraph, alternate methods or procedures include alternate construction or equipment.
</FP>
<P>(b) <I>Emergency variations from requirements.</I> The Director may approve construction, equipment, and methods of operation other than as specified in this part, where he finds that an emergency exists and the proposed variations from the specified requirements are necessary and the proposed variations:
</P>
<P>(1) Will afford security and protection that are substantially equivalent to those prescribed in this part;
</P>
<P>(2) Will not hinder the effective administration of this part; and
</P>
<P>(3) Will not be contrary to any provisions of law.
</P>
<FP>Variations from requirements granted under this paragraph are conditioned on compliance with the procedures, conditions, and limitations set forth in the approval of the application. Failure to comply in good faith with the procedures, conditions, and limitations shall automatically terminate the authority for the variations and the licensee or permittee shall fully comply with the prescribed requirements of regulations from which the variations were authorized. Authority for any variation may be withdrawn whenever, in the judgment of the Director, the effective administration of this part is hindered by the continuation of the variation. Where the licensee or permittee desires to employ an emergency variation, he shall submit a written application to the Director, Industry Operations for transmittal to the Director. The application shall describe the proposed variation and set forth the reasons for it. Variations may not be employed until the application is approved, except when the emergency requires immediate action to correct a situation that is threatening to life or property. Corrective action may then be taken concurrent with the filing of the application and notification of the Director via telephone.
</FP>
<P>(c) <I>Retention of approved variations.</I> The licensee or permittee shall retain, as part of his records available for examination by ATF officers, any application approved by the Director under this section.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.23" NODE="27:3.0.1.3.5.3.31.3" TYPE="SECTION">
<HEAD>§ 555.23   List of explosive materials.</HEAD>
<P>The Director shall compile a list of explosive materials, which shall be published and revised at least annually in the <E T="04">Federal Register.</E> The “List of Explosive Materials” (ATF Publication 5400.8) is available at no cost upon request from the ATF Distribution Center (See § 555.21).
</P>
<CITA TYPE="N">[T.D. ATF-290, 54 FR 53054, Dec. 27, 1989, as amended by T.D. ATF-446, 66 FR 16602, Mar. 27, 2001; ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 555.24" NODE="27:3.0.1.3.5.3.31.4" TYPE="SECTION">
<HEAD>§ 555.24   Right of entry and examination.</HEAD>
<P>(a) Any ATF officer may enter during business hours the premises, including places of storage, of any licensee or holder of a user permit for the purpose of inspecting or examining any records or documents required to be kept under this part, and any facilities in which explosive materials are kept or stored.
</P>
<P>(b) Any ATF officer may inspect the places of storage for explosive materials of an applicant for a limited permit or, in the case of a holder of a limited permit, at the time of renewal of such permit.
</P>
<P>(c) The provisions of paragraph (b) of this section do not apply to an applicant for the renewal of a limited permit if an ATF officer has, within the preceding 3 years, verified by inspection that the applicant's place of storage for explosive materials meets the requirements of subpart K of this part.
</P>
<CITA TYPE="N">[ATF No. 1, 68 FR 13781, Mar. 20, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 555.25" NODE="27:3.0.1.3.5.3.31.5" TYPE="SECTION">
<HEAD>§ 555.25   Disclosure of information.</HEAD>
<P>Upon receipt of written request from any State or any political subdivision of a State, the Director, Industry Operations may make available to the State or political subdivision any information which the Director, Industry Operations may obtain under the Act with respect to the identification of persons within the State or political subdivision, who have purchased or received explosive materials, together with a description of the explosive materials. 
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.26" NODE="27:3.0.1.3.5.3.31.6" TYPE="SECTION">
<HEAD>§ 555.26   Prohibited shipment, transportation, receipt, possession, or distribution of explosive materials.</HEAD>
<P>(a) <I>General.</I> No person, other than a licensee or permittee knowingly may transport, ship, cause to be transported, or receive any explosive materials: <I>Provided,</I> That the provisions of this paragraph (a) do not apply to the lawful purchase by a nonlicensee or nonpermittee of commercially manufactured black powder in quantities not to exceed 50 pounds, if the black powder is intended to be used solely for sporting, recreational, or cultural purposes in antique firearms as defined in 18 U.S.C. 921(a)(16), or in antique devices as exempted from the term “destructive device” in 18 U.S.C. 921(a)(4).
</P>
<P>(b) <I>Holders of a limited permit.</I> No person who is a holder of a limited permit may—
</P>
<P>(1) Transport, ship, cause to be transported, or receive in interstate or foreign commerce any explosive materials;
</P>
<P>(2) Receive explosive materials from a licensee or permittee, whose premises are located outside the State of residence of the limited permit holder; or
</P>
<P>(3) Receive explosive materials on more than 6 separate occasions, during the period of the permit, from one or more licensees or permittees whose premises are located within the State of residence of the limited permit holder. (See § 555.105(b) for the definition of “6 separate occasions.”)
</P>
<P>(c) <I>Possession by prohibited persons.</I> No person may ship or transport any explosive material in or affecting interstate or foreign commerce or receive or possess any explosive materials which have been shipped or transported in or affecting interstate or foreign commerce who:
</P>
<P>(1) Is under indictment or information for, or who has been convicted in any court of, a crime punishable by imprisonment for a term exceeding one year;
</P>
<P>(2) Is a fugitive from justice;
</P>
<P>(3) Is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802) and § 555.11);
</P>
<P>(4) Has been adjudicated as a mental defective or has been committed to a mental institution;
</P>
<P>(5) Is an alien, other than an alien who—
</P>
<P>(i) Is lawfully admitted for permanent residence (as that term is defined in section 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101)); or
</P>
<P>(ii) Is in lawful nonimmigrant status, is a refugee admitted under section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or is in asylum status under section 208 of the Immigration and Nationality Act (8 U.S.C. 1158), and—
</P>
<P>(A) Is a foreign law enforcement officer of a friendly foreign government, as determined by the Attorney General in consultation with the Secretary of State, entering the United States on official law enforcement business, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of this official law enforcement business;
</P>
<P>(B) Is a person having the power to direct or cause the direction of the management and policies of a corporation, partnership, or association licensed pursuant to section 843(a) of the Act, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of such power;
</P>
<P>(C) Is a member of a North Atlantic Treaty Organization (NATO) or other friendly foreign military force, as determined by the Attorney General in consultation with the Secretary of Defense, (whether or not admitted in a nonimmigrant status) who is present in the United States under military orders for training or other military purpose authorized by the United States, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of the military purpose; or
</P>
<P>(D) Is lawfully present in the United States in cooperation with the Director of Central Intelligence, and the shipment, transportation, receipt, or possession of the explosive materials is in furtherance of such cooperation;
</P>
<P>(6) Has been discharged from the armed forces under dishonorable conditions; or
</P>
<P>(7) Having been a citizen of the United States, has renounced citizenship.
</P>
<P>(d) <I>Distribution to prohibited persons.</I> No person may knowingly distribute explosive materials to any individual who:
</P>
<P>(1) Is under twenty-one years of age;
</P>
<P>(2) Is under indictment or information for, or who has been convicted in any court of, a crime punishable by imprisonment for a term exceeding one year;
</P>
<P>(3) Is a fugitive from justice;
</P>
<P>(4) Is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802) and § 555.11);
</P>
<P>(5) Has been adjudicated as a mental defective or has been committed to a mental institution;
</P>
<P>(6) Is an alien, other than an alien who—
</P>
<P>(i) Is lawfully admitted for permanent residence (as that term is defined in section 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101)); or
</P>
<P>(ii) Is in lawful nonimmigrant status, is a refugee admitted under section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or is in asylum status under section 208 of the Immigration and Nationality Act (8 U.S.C. 1158), and—
</P>
<P>(A) Is a foreign law enforcement officer of a friendly foreign government, as determined by the Attorney General in consultation with the Secretary of State, entering the United States on official law enforcement business, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of this official law enforcement business;
</P>
<P>(B) Is a person having the power to direct or cause the direction of the management and policies of a corporation, partnership, or association licensed pursuant to section 843(a) of the Act, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of such power;
</P>
<P>(C) Is a member of a North Atlantic Treaty Organization (NATO) or other friendly foreign military force, as determined by the Attorney General in consultation with the Secretary of Defense, (whether or not admitted in a nonimmigrant status) who is present in the United States under military orders for training or other military purpose authorized by the United States, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of the military purpose; or
</P>
<P>(D) Is lawfully present in the United States in cooperation with the Director of Central Intelligence, and the shipment, transportation, receipt, or possession of the explosive materials is in furtherance of such cooperation;
</P>
<P>(7) Has been discharged from the armed forces under dishonorable conditions; or
</P>
<P>(8) Having been a citizen of the United States, has renounced citizenship.
</P>
<P>(e) See § 555.180 for regulations concerning the prohibited manufacture, importation, exportation, shipment, transportation, receipt, transfer, or possession of plastic explosives that do not contain a detection agent.
</P>
<CITA TYPE="N">[ATF No. 1, 68 FR 13781, Mar. 20, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 555.27" NODE="27:3.0.1.3.5.3.31.7" TYPE="SECTION">
<HEAD>§ 555.27   [Reserved]</HEAD>
</DIV8>


<DIV8 N="§ 555.28" NODE="27:3.0.1.3.5.3.31.8" TYPE="SECTION">
<HEAD>§ 555.28   Stolen explosive materials.</HEAD>
<P>No person shall receive, conceal, transport, ship, store, barter, sell, or dispose of any stolen explosive materials knowing or having reasonable cause to believe that the explosive materials were stolen.


</P>
</DIV8>


<DIV8 N="§ 555.29" NODE="27:3.0.1.3.5.3.31.9" TYPE="SECTION">
<HEAD>§ 555.29   Unlawful storage.</HEAD>
<P>No person shall store any explosive materials in a manner not in conformity with this part.


</P>
</DIV8>


<DIV8 N="§ 555.30" NODE="27:3.0.1.3.5.3.31.10" TYPE="SECTION">
<HEAD>§ 555.30   Reporting theft or loss of explosive materials.</HEAD>
<P>(a) Any licensee or permittee who has knowledge of the theft or loss of any explosive materials from his stock shall, within 24 hours of discovery, report the theft or loss by telephoning 1-800-461-8841 (nationwide toll free number) and on ATF F 5400.5 in accordance with the instructions on the form. Theft or loss of any explosive materials shall also be reported to appropriate local authorities.
</P>
<P>(b) Any other person, except a carrier of explosive materials, who has knowledge of the theft or loss of any explosive materials from his stock shall, within 24 hours of discovery, report the theft or loss by telephoning 1-800-461-8841 (nationwide toll free number) and in writing to the nearest ATF office. Theft or loss shall be reported to appropriate local authorities.
</P>
<P>(c) Reports of theft or loss of explosive materials under paragraphs (a) and (b) of this section must include the following information, if known:
</P>
<P>(1) The manufacturer or brand name.
</P>
<P>(2) The manufacturer's marks of identification (date and shift code).
</P>
<P>(3) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, etc.).
</P>
<P>(4) Description (dynamite, blasting agents, detonators, etc.) and United Nations (UN) identification number, hazard division number, and classification letter, e.g., 1.1D, as classified by the U.S. Department of Transportation at 49 CFR 172.101 and 173.52.
</P>
<P>(5) Size (length and diameter).
</P>
<P>(d) A carrier of explosive materials who has knowledge of the theft or loss of any explosive materials shall, within 24 hours of discovery, report the theft or loss by telephoning 1-800-461-8841 (nationwide toll free number). Theft or loss shall also be reported to appropriate local authorities. Reports of theft or loss of explosive materials by carriers shall include the following information, if known:
</P>
<P>(1) The manufacturer or brand name.
</P>
<P>(2) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, etc.).
</P>
<P>(3) Description (United Nations (UN) identification number, hazard division number, and classification letter, e.g., 1.1D) as classified by the U.S. Department of Transportation at 49 CFR 172.101 and 173.52.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 FR 45002, Aug. 24, 1998; ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.31" NODE="27:3.0.1.3.5.3.31.11" TYPE="SECTION">
<HEAD>§ 555.31   Inspection of site accidents or fires; right of entry.</HEAD>
<P>Any ATF officer may inspect the site of any accident or fire in which there is reason to believe that explosive materials were involved. Any ATF officer may enter into or upon any property where explosive materials have been used, are suspected of having been used, or have been found in an otherwise unauthorized location.


</P>
</DIV8>


<DIV8 N="§ 555.32" NODE="27:3.0.1.3.5.3.31.12" TYPE="SECTION">
<HEAD>§ 555.32   Special explosive devices.</HEAD>
<P>The Director may exempt certain explosive actuated devices, explosive actuated tools, or similar devices from the requirements of this part. A person who desires to obtain an exemption under this section for any special explosive device, which as designed does not constitute a public safety or security hazard, shall submit a written request to the Director. Each request shall be executed under the penalties of perjury and contain a complete and accurate description of the device, the name and address of the manufacturer or importer, the purpose of and use for which it is intended, and any photographs, diagrams, or drawings as may be necessary to enable the Director to make a determination. The Director may require that a sample of the device be submitted for examination and evaluation. If it is not possible to submit the device, the person requesting the exemption shall advise the Director and designate the place where the device will be available for examination and evaluation.


</P>
</DIV8>


<DIV8 N="§ 555.33" NODE="27:3.0.1.3.5.3.31.13" TYPE="SECTION">
<HEAD>§ 555.33   Background checks and clearances.</HEAD>
<P>(a) <I>Background checks.</I> (1) If the Director receives from a licensee or permittee the names and appropriate identifying information of responsible persons and employees who will be authorized by the employer to possess explosive materials in the course of employment with the employer, the Director will conduct a background check in accordance with this section.
</P>
<P>(2) The Director will determine whether the responsible person or employee is one of the persons described in any paragraph of section 842(i) of the Act (see § 555.26). In making such determination, the Director may take into account a letter or document issued under paragraph (a)(3) of this section.
</P>
<P>(3)(i) If the Director determines that the responsible person or the employee is not one of the persons described in any paragraph of section 842(i) of the Act (see § 555.26), the Director will notify the employer in writing or electronically of the determination and issue, to the responsible person or employee, as the case may be, a letter of clearance which confirms the determination.
</P>
<P>(ii) If the Director determines that the responsible person or employee is one of the persons described in any paragraph of section 842(i) of the Act (see § 555.26), ATF will notify the employer in writing or electronically of the determination and issue to the responsible person or the employee, as the case may be, a document that confirms the determination; explains the grounds for the determination; provides information on how the disability may be relieved; and explains how the determination may be appealed. The employer will retain the notification as part of his permanent records in accordance with § 555.121. The employer will take immediate steps to remove the responsible person from his position directing the management or policies of the business or operations as they relate to explosive materials or, as the case may be, to remove the employee from a position requiring the possession of explosive materials. Also, if the employer has listed the employee as a person authorized to accept delivery of explosive materials, as specified in § 555.103 or § 555.105, the employer must remove the employee from such list and immediately, and in no event later than the second business day after such change, notify distributors of such change.
</P>
<P>(b) <I>Appeals and correction of erroneous system information</I>—(1) <I>In general.</I> A responsible person or employee may challenge the adverse determination set out in the letter of denial, in writing and within 45 days of issuance of the determination, by directing his or her challenge to the basis for the adverse determination, or to the accuracy of the record upon which the adverse determination is based, to the Director. The appeal request must include appropriate documentation or record(s) establishing the legal and/or factual basis for the challenge. Any record or document of a court or other government entity or official furnished in support of an appeal must be certified by the court or other government entity or official as a true copy. In the case of an employee, or responsible person who did not submit fingerprints, such appeal must be accompanied by two properly completed FBI Forms FD-258 (fingerprint card). The Director will advise the individual in writing of his decision and the reasons for the decision.
</P>
<P>(2) <I>Employees.</I> The letter of denial, among other things, will advise an employee who elects to challenge an adverse determination to submit the fingerprint cards as described above. The employee also will be advised of the agency name and address that originated the record containing the information causing the adverse determination (“originating agency”). At that time, and where appropriate, an employee is encouraged to apply to the originating agency to challenge the accuracy of the record(s) upon which the denial is based. The originating agency may respond to the individual's application by addressing the individual's specific reasons for the challenge, and by indicating whether additional information or documents are required. If the record is corrected as a result of the application to the originating agency, the individual may so notify ATF which will, in turn, verify the record correction with the originating agency and take all necessary steps to contact the agency responsible for the record system and correct the record. The employee may provide to ATF additional and appropriate documentation or record(s) establishing the legal and/or factual basis for the challenge to ATF's decision to uphold the initial denial. If ATF does not receive such additional documentation or record(s) within 45 days of the date of the decision upholding the initial denial, ATF will close the appeal.
</P>
<P>(3) <I>Responsible persons.</I> The letter of denial, among other things, will advise a responsible person of the agency name and address which originated the record containing the information causing the adverse determination (“originating agency”). A responsible person who elects to challenge the adverse determination, where appropriate, is encouraged to apply to the originating agency to challenge the accuracy of the record(s) upon which the denial is based. The originating agency may respond to the individual's application by addressing the individual's specific reasons for the challenge, and by indicating whether additional information or documents are required. If the record is corrected as a result of the application to the originating agency, the individual may so notify ATF which will, in turn, verify the record correction with the originating agency and take all necessary steps to contact the agency responsible for the record system and correct the record. A responsible person may provide additional documentation or records as specified for employees in paragraph (b)(2) of this section.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0081)
</APPRO>
<CITA TYPE="N">[ATF No. 1, 68 FR 13783, Mar. 20, 2003, as amended by ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.34" NODE="27:3.0.1.3.5.3.31.14" TYPE="SECTION">
<HEAD>§ 555.34   Replacement of stolen or lost ATF Form 5400.30 (Intrastate Purchase of Explosives Coupon (IPEC)).</HEAD>
<P>When any Form 5400.30 is stolen, lost, or destroyed, the person losing possession will, upon discovery of the theft, loss, or destruction, immediately, but in all cases before 24 hours have elapsed since discovery, report the matter to the Director by telephoning 1-888-ATF-BOMB (nationwide toll free number). The report will explain in detail the circumstances of the theft, loss, or destruction and will include all known facts that may serve to identify the document. Upon receipt of the report, the Director will make such investigation as appears appropriate and may issue a duplicate document upon such conditions as the circumstances warrant.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0077)
</APPRO>
<CITA TYPE="N">[ATF No. 1, 68 FR 13783, Mar. 20, 2003]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="D" NODE="27:3.0.1.3.5.4" TYPE="SUBPART">
<HEAD>Subpart D—Licenses and Permits</HEAD>


<DIV8 N="§ 555.41" NODE="27:3.0.1.3.5.4.31.1" TYPE="SECTION">
<HEAD>§ 555.41   General.</HEAD>
<P>(a) [Reserved]
</P>
<P>(b) <I>Licenses and permits issued on and after May 24, 2003</I>—(1) <I>In general.</I> (i) Each person intending to engage in business as an importer or manufacturer of, or a dealer in, explosive materials, including black powder, must, before commencing business, obtain the license required by this subpart for the business to be operated.
</P>
<P>(ii) Each person who intends to acquire for use explosive materials within the State in which he resides on no more than 6 separate occasions during the 12-month period in which the permit is valid must obtain a limited permit under this subpart. (See § 555.105(b) for definition of “6 separate occasions.”)
</P>
<P>(iii) Each person who intends to acquire for use explosive materials from a licensee or permittee in a State other than the State in which he resides, or from a foreign country, or who intends to transport explosive materials in interstate or foreign commerce, or who intends to acquire for use explosive materials within the State in which he resides on more than 6 separate occasions during a 12-month period, must obtain a user permit under this subpart.
</P>
<P>(iv) It is not necessary to obtain a permit if the user intends only to lawfully purchase commercially manufactured black powder in quantities not to exceed 50 pounds, intended to be used solely for sporting, recreational, or cultural purposes in antique firearms or in antique devices.
</P>
<P>(2) <I>Importers, manufacturers, and dealers.</I> Each person intending to engage in business as an explosive materials importer, manufacturer, or dealer must file an application, with the required fee (<I>see</I> § 555.42), with ATF in accordance with the instructions on the form (<I>see</I> § 555.45). A license will, subject to law, entitle the licensee to transport, ship, and receive explosive materials in interstate or foreign commerce, and to engage in the business specified by the license, at the location described on the license. A separate license must be obtained for each business premises at which the applicant is to manufacture, import, or distribute explosive materials except under the following circumstances:
</P>
<P>(i) A separate license will not be required for storage facilities operated by the licensee as an integral part of one business premises or to cover a location used by the licensee solely for maintaining the records required by this part.
</P>
<P>(ii) A separate license will not be required of a licensed manufacturer with respect to his on-site manufacturing.
</P>
<P>(iii) It will not be necessary for a licensed importer or a licensed manufacturer (for purposes of sale or distribution) to also obtain a dealer's license in order to engage in business on his licensed premises as a dealer in explosive materials. No licensee will be required to obtain a user permit to lawfully transport, ship, or receive explosive materials in interstate or foreign commerce.
</P>
<P>(iv) A separate license will not be required of licensed manufacturers with respect to their on-site manufacture of theatrical flash powder.
</P>
<P>(3) <I>Users of explosive materials.</I> (i) A limited permit will, subject to law, entitle the holder of such permit to receive for his use explosive materials from a licensee or permittee in his state of residence on no more than 6 separate occasions during the 12-month period in which the permit is valid. A limited permit does not authorize the receipt or transportation of explosive materials in interstate or foreign commerce. Holders of limited permits who need to receive explosive materials on more than 6 separate occasions during a 12-month period must obtain a user permit in accordance with this subpart.
</P>
<P>(ii) Each person intending to acquire explosive materials from a licensee in a State other than a State in which he resides, or from a foreign country, or who intends to transport explosive materials in interstate or foreign commerce, must file an application for a user permit, with the required fee (<I>see</I> § 555.43), with ATF in accordance with the instructions on the form (<I>see</I> § 555.45). A user permit will, subject to law, entitle the permittee to transport, ship, and receive in interstate or foreign commerce explosive materials. Only one user permit per person is required under this part, irrespective of the number of locations relating to explosive materials operated by the holder of the user permit.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0083)
</APPRO>
<CITA TYPE="N">[ATF No. 1, 68 FR 13783, Mar. 20, 2003, as amended by ATF 5F, 70 FR 30633, May 27, 2005; ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.42" NODE="27:3.0.1.3.5.4.31.2" TYPE="SECTION">
<HEAD>§ 555.42   License fees.</HEAD>
<P>(a) Each applicant shall pay a fee for obtaining a three year license, a separate fee being required for each business premises, as follows:
</P>
<P>(1) Manufacturer—$200.
</P>
<P>(2) Importer—$200.
</P>
<P>(3) Dealer—$200.
</P>
<P>(b) Each applicant for a renewal of a license shall pay a fee for a three year license as follows:
</P>
<P>(1) Manufacturer—$100.
</P>
<P>(2) Importer—$100.
</P>
<P>(3) Dealer—$100. 
</P>
<CITA TYPE="N">[T.D. ATF-400, 63 FR 45002, Aug. 24, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 555.43" NODE="27:3.0.1.3.5.4.31.3" TYPE="SECTION">
<HEAD>§ 555.43   Permit fees.</HEAD>
<P>(a) Each applicant must pay a fee for obtaining a permit as follows:
</P>
<P>(1) User—$100 for a three-year period.
</P>
<P>(2) User-limited (nonrenewable)—$75.
</P>
<P>(3) Limited—$25 for a one-year period.
</P>
<P>(b)(1) Each applicant for renewal of a user permit must pay a fee of $50 for a three-year period.
</P>
<P>(2) Each applicant for renewal of a limited permit must pay a fee of $12 for a one-year period.
</P>
<CITA TYPE="N">[ATF No. 1, 68 FR 13785, Mar. 20, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 555.44" NODE="27:3.0.1.3.5.4.31.4" TYPE="SECTION">
<HEAD>§ 555.44   License or permit fee not refundable.</HEAD>
<P>No refund of any part of the amount paid as a license or permit fee will be made where the operations of the licensee or permittee are, for any reason, discontinued during the period of an issued license or permit. However, the license or permit fee submitted with an application for a license or permit will be refunded if that application is denied, withdrawn, or abandoned, or if a license is cancelled subsequent to having been issued through administrative error.


</P>
</DIV8>


<DIV8 N="§ 555.45" NODE="27:3.0.1.3.5.4.31.5" TYPE="SECTION">
<HEAD>§ 555.45   Original license or permit.</HEAD>
<P>(a)-(b) [Reserved]
</P>
<P>(c) <I>Licenses and permits issued on and after May 24, 2003</I>—(1) <I>License.</I> Any person who intends to engage in the business as an importer of, manufacturer of, or dealer in explosive materials, or who has not timely submitted an application for renewal of a previous license issued under this part, must file an application for License, Explosives, ATF F 5400.13, with ATF in accordance with the instructions on the form. ATF Form 5400.13 may be obtained by contacting any ATF office. The application must:
</P>
<P>(i) Be executed under the penalties of perjury and the penalties imposed by 18 U.S.C. 844(a);
</P>
<P>(ii) Include appropriate identifying information concerning each responsible person;
</P>
<P>(iii) Include a photograph and fingerprints for each responsible person;
</P>
<P>(iv) Include the names of and appropriate identifying information regarding all employees who will be authorized by the applicant to possess explosive materials by submitting ATF F 5400.28 for each employee; and
</P>
<P>(v) Include the appropriate fee in the form of money order or check made payable to the Bureau of Alcohol, Tobacco, Firearms and Explosives.
</P>
<P>(2) <I>User permit and limited permit.</I> Except as provided in § 555.41(b)(1)(iv), any person who intends to acquire explosive materials in the State in which that person resides or acquire explosive materials from a licensee or holder of a user permit in a State other than the State in which that person resides, or from a foreign country, or who intends to transport explosive materials in interstate or foreign commerce, or who has not timely submitted an application for renewal of a previous permit issued under this part, must file an application for Permit, Explosives, ATF F 5400.16 or Permit, User Limited Display Fireworks, ATF F 5400.21 with ATF in accordance with the instructions on the form. ATF Form 5400.16 and ATF Form 5400.21 may be obtained by contacting any ATF office. The application must:
</P>
<P>(i) Be executed under the penalties of perjury and the penalties imposed by 18 U.S.C. 844(a);
</P>
<P>(ii) Include a photograph, fingerprints, and appropriate identifying information for each responsible person;
</P>
<P>(iii) Include the names of and appropriate identifying information regarding all employees who will be authorized by the applicant to possess explosive materials by submitting ATF F 5400.28 for each employee; and
</P>
<P>(iv) Include the appropriate fee in the form of money order or check made payable to the Bureau of Alcohol, Tobacco, Firearms and Explosives.
</P>
<P>(3) The Chief, Federal Explosives Licensing Center, will conduct background checks on responsible persons and employees authorized by the applicant to possess explosive materials in accordance with § 555.33. If it is determined that any responsible person or employee is described in any paragraph of section 842(i) of the Act, the applicant must submit an amended application indicating removal or reassignment of that person before the license or permit will be issued.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0083)
</APPRO>
<SECAUTH TYPE="N">(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-200, 50 FR 10497, Mar. 15, 1985, as amended by T.D. ATF-400, 63 FR 45002, Aug. 24, 1998; ATF No. 1, 68 FR 13785, Mar. 20, 2003; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014; ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.46" NODE="27:3.0.1.3.5.4.31.6" TYPE="SECTION">
<HEAD>§ 555.46   Renewal of license or permit.</HEAD>
<P>(a) If a licensee or permittee intends to continue the business or operation described on a license or permit issued under this part after the expiration date of the license or permit, he shall, unless otherwise notified in writing by the Chief, Federal Explosives Licensing Center, execute and file prior to the expiration of his license or permit an application for license renewal, ATF F 5400.14 (Part III), or an application for permit renewal, ATF F 5400.15 (Part III), accompanied by the required fee, with ATF in accordance with the instructions on the form. In the event the licensee or permittee does not timely file a renewal application, he shall file an original application as required by § 555.45, and obtain the required license or permit in order to continue business or operations.
</P>
<P>(b) A user-limited permit is not renewable and is valid for a single purchase transaction. Applications for all user-limited permits must be filed on ATF F 5400.16 or ATF F 5400.21, as required by § 555.45.
</P>
<SECAUTH TYPE="N">(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-200, 50 FR 10497, Mar. 15, 1985; T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; T.D. ATF-400, 63 FR 45002, Aug. 24, 1998; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.47" NODE="27:3.0.1.3.5.4.31.7" TYPE="SECTION">
<HEAD>§ 555.47   Insufficient fee.</HEAD>
<P>If an application is filed with an insufficient fee, the application and fee submitted will be returned to the applicant.
</P>
<SECAUTH TYPE="N">(18 U.S.C. 847 (84 Stat. 959); 18 U.S.C. 926 (82 Stat. 1226))
</SECAUTH>
<CITA TYPE="N">[T.D. ATF-200, 50 FR 10498, Mar. 15, 1985]


</CITA>
</DIV8>


<DIV8 N="§ 555.48" NODE="27:3.0.1.3.5.4.31.8" TYPE="SECTION">
<HEAD>§ 555.48   Abandoned application.</HEAD>
<P>Upon receipt of an incomplete or improperly executed application, the applicant will be notified of the deficiency in the application. If the application is not corrected and returned within 30 days following the date of notification, the application will be considered as having been abandoned and the license or permit fee returned.


</P>
</DIV8>


<DIV8 N="§ 555.49" NODE="27:3.0.1.3.5.4.31.9" TYPE="SECTION">
<HEAD>§ 555.49   Issuance of license or permit.</HEAD>
<P>(a) [Reserved]
</P>
<P>(b) <I>Issuance of license or permit on and after May 24, 2003.</I> (1) The Chief, Federal Explosives Licensing Center, will issue a license or permit if:
</P>
<P>(i) A properly executed application for the license or permit is received; and
</P>
<P>(ii) Through further inquiry or investigation, or otherwise, it is found that the applicant is entitled to the license or permit.
</P>
<P>(2) The Chief, Federal Explosives Licensing Center, will approve a properly executed application for a license or permit, if:
</P>
<P>(i) The applicant (or, if the applicant is a corporation, partnership, or association, each responsible person with respect to the applicant) is not a person described in any paragraph of section 842(i) of the Act;
</P>
<P>(ii) The applicant has not willfully violated any provisions of the Act or this part;
</P>
<P>(iii) The applicant has not knowingly withheld information or has not made any false or fictitious statement intended or likely to deceive, in connection with his application;
</P>
<P>(iv) The applicant has in a State, premises from which he conducts business or operations subject to license or permit under the Act or from which he intends to conduct business or operations;
</P>
<P>(v) The applicant has storage for the class (as described in § 555.202) of explosive materials described on the application;
</P>
<P>(vi) The applicant has certified in writing that he is familiar with and understands all published State laws and local ordinances relating to explosive materials for the location in which he intends to do business;
</P>
<P>(vii) The applicant for a license has submitted the certificate required by section 21 of the Federal Water Pollution Control Act, as amended (33 U.S.C. 1341);
</P>
<P>(viii) None of the employees of the applicant who will be authorized by the applicant to possess explosive materials is a person described in any paragraph of section 842(i) of the Act; and
</P>
<P>(ix) In the case of an applicant for a limited permit, the applicant has certified in writing that the applicant will not receive explosive materials on more than 6 separate occasions during the 12-month period for which the limited permit is valid.
</P>
<P>(3) The Chief, Federal Explosives Licensing Center, will approve or the Director, Industry Operations will deny any application for a license or permit within the 90-day period beginning on the date a properly executed application was received. However, when an applicant for license or permit renewal is a person who is, under the provisions of § 555.83 or § 555.142, conducting business or operations under a previously issued license or permit, action regarding the application will be held in abeyance pending the completion of the proceedings against the applicant's existing license or permit, or renewal application, or final action by the Director on an application for relief submitted under § 555.142, as the case may be.
</P>
<P>(4) The license or permit and one copy will be forwarded to the applicant, except that in the case of a user-limited permit, the original only will be issued.
</P>
<P>(5) Each license or permit will bear a serial number and this number may be assigned to the licensee or permittee to whom issued for as long as he maintains continuity of renewal in the same region.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0082)
</APPRO>
<CITA TYPE="N">[ATF No. 1, 68 FR 13785, Mar. 20, 2003, as amended by ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014; ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.50" NODE="27:3.0.1.3.5.4.31.10" TYPE="SECTION">
<HEAD>§ 555.50   Correction of error on license or permit.</HEAD>
<P>(a) Upon receipt of a license or permit issued under this part, each licensee or permittee shall examine the license or permit to insure that the information on it is accurate. If the license or permit is incorrect, the licensee or permittee shall return the license or permit to the Chief, Federal Explosives Licensing Center, with a statement showing the nature of the error. The Chief, Federal Explosives Licensing Center, shall correct the error, if the error was made in his office, and return the license or permit. However, if the error resulted from information contained in the licensee's or permittee's application for the license or permit, the Chief, Federal Explosives Licensing Center, shall require the licensee or permittee to file an amended application setting forth the correct information and a statement explaining the error contained in the application. Upon receipt of the amended application and a satisfactory explanation of the error, the Chief, Federal Explosives Licensing Center, shall make the correction on the license or permit and return it to the licensee or permittee.
</P>
<P>(b) When the Chief, Federal Explosives Licensing Center, finds through any means other than notice from the licensee or permittee that an incorrect license or permit has been issued, (1) the Chief, Federal Explosives Licensing Center, may require the holder of the incorrect license or permit to return the license or permit for correction, and (2) if the error resulted from information contained in the licensee's or permittee's application for the license or permit, the Chief, Federal Explosives Licensing Center, shall require the licensee or permittee to file an amended application setting forth the correct information, and a statement satisfactorily explaining the error contained in the application. The Chief, Federal Explosives Licensing Center, then shall make the correction on the license or permit and return it to the licensee or permittee.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.51" NODE="27:3.0.1.3.5.4.31.11" TYPE="SECTION">
<HEAD>§ 555.51   Duration of license or permit.</HEAD>
<P>(a) [Reserved]
</P>
<P>(b) <I>On and after May 24, 2003.</I> (1) An original license or user permit is issued for a period of three years. A renewal license or user permit is also issued for a period of three years. However, a user-limited permit is valid only for a single purchase transaction.
</P>
<P>(2) A limited permit is issued for a period of one year. A renewal limited permit is also issued for a period of one year.
</P>
<CITA TYPE="N">[ATF No. 1, 68 FR 13786, Mar. 20, 2003, as amended by ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.52" NODE="27:3.0.1.3.5.4.31.12" TYPE="SECTION">
<HEAD>§ 555.52   Limitations on license or permit.</HEAD>
<P>(a) The license covers the business of explosive materials specified in the license at the licensee's business premises (see § 555.41(b)).
</P>
<P>(b) The permit is valid with respect to the type of operations of explosive materials specified in the permit.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 FR 8376, Feb. 25, 1997; ATF 5F, 70 FR 30633, May 27, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 555.53" NODE="27:3.0.1.3.5.4.31.13" TYPE="SECTION">
<HEAD>§ 555.53   License and permit not transferable.</HEAD>
<P>Licenses and permits issued under this part are not transferable to another person. In the event of the lease, sale, or other transfer of the business or operations covered by the license or permit, the successor must obtain the license or permit required by this part before commencing business or operations. However, for rules on right of succession, see § 555.59. 


</P>
</DIV8>


<DIV8 N="§ 555.54" NODE="27:3.0.1.3.5.4.31.14" TYPE="SECTION">
<HEAD>§ 555.54   Change of address.</HEAD>
<P>(a) During the term of a license or permit, a licensee or permittee may move his business or operations to a new address at which he intends to regularly carry on his business or operations, without procuring a new license or permit. However, in every case, the licensee or permittee shall—
</P>
<P>(1) Give notification of the new location of the business or operations to the Chief, Federal Explosives Licensing Center at least 10 days before the move; and
</P>
<P>(2) Submit the license or permit to the Chief, Federal Explosives Licensing Center. The Chief, Federal Explosives Licensing Center will issue an amended license or permit, which will contain the new address (and new license or permit number, if any).
</P>
<P>(b) Licensees and permittees whose mailing address will change must notify the Chief, Federal Explosives Licensing Center, at least 10 days before the change.
</P>
<APPRO TYPE="N">(Paragraph (b) approved by the Office of Management and Budget under control number 1140-0080)
</APPRO>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; ATF No. 1, 68 FR 13786, Mar. 20, 2003; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.56" NODE="27:3.0.1.3.5.4.31.15" TYPE="SECTION">
<HEAD>§ 555.56   Change in trade name.</HEAD>
<P>A licensee or permittee continuing to conduct business or operations at the location shown on his license or permit is not required to obtain a new license or permit by reason of a mere change in trade name under which he conducts his business or operations. However, the licensee or permittee shall furnish his license or permit and any copies furnished with the license or permit for endorsement of the change to the Chief, Federal Explosives Licensing Center, within 30 days from the date the licensee or permittee begins his business or operations under the new trade name.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.57" NODE="27:3.0.1.3.5.4.31.16" TYPE="SECTION">
<HEAD>§ 555.57   Change of control, change in responsible persons, and change of employees.</HEAD>
<P>(a) In the case of a corporation or association holding a license or permit under this part, if actual or legal control of the corporation or association changes, directly or indirectly, whether by reason of change in stock ownership or control (in the corporation holding a license or permit or in any other corporation), by operation of law, or in any other manner, the licensee or permittee shall, within 30 days of the change, give written notification executed under the penalties of perjury, to the Chief, Federal Explosives Licensing Center. Upon expiration of the license or permit, the corporation or association shall file an ATF F 5400.13 or an ATF F 5400.16 as required by § 555.45, and pay the fee prescribed in § 555.42(b) or § 555.43(b).
</P>
<P>(b) Each person holding the license or permit must report to the Chief, Federal Explosives Licensing Center, any change in responsible persons or employees authorized to possess explosive materials. Such report must be submitted within 30 days of the change and must include appropriate identifying information for each responsible person. Reports relating to newly hired employees authorized to possess explosive materials must be submitted on ATF F 5400.28 for each employee.
</P>
<P>(c) Upon receipt of a report, the Chief, Federal Explosives Licensing Center, will conduct a background check, if appropriate, in accordance with § 555.33.
</P>
<P>(d) The reports required by paragraph (b) of this section must be retained as part of a licensee's or permittee's permanent records for the period specified in § 555.121.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0074)
</APPRO>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; ATF No. 1, 68 FR 13786, Mar. 20, 2003; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014; ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.58" NODE="27:3.0.1.3.5.4.31.17" TYPE="SECTION">
<HEAD>§ 555.58   Continuing partnerships.</HEAD>
<P>Where, under the laws of the particular State, the partnership is not terminated on death or insolvency of a partner, but continues until the winding up of the partnership affairs is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, the surviving partner may continue to conduct the business or operations under the license or permit of the partnership. If the surviving partner acquires the business or operations on completion of settlement of the partnership, he shall obtain a license or permit in his own name from the date of acquisition, as provided in § 555.45. The rule set forth in this section will also apply where there is more than one surviving partner.


</P>
</DIV8>


<DIV8 N="§ 555.59" NODE="27:3.0.1.3.5.4.31.18" TYPE="SECTION">
<HEAD>§ 555.59   Right of succession by certain persons.</HEAD>
<P>(a) Certain persons other than the licensee or permittee may secure the right to carry on the same explosive materials business or operations at the same business premises for the remainder of the term of license or permit. These persons are:
</P>
<P>(1) The surviving spouse or child, or executor, administrator, or other legal representative of a deceased licensee or permittee; and
</P>
<P>(2) A receiver or trustee in bankruptcy, or an assignee for benefit of creditors.
</P>
<P>(b) In order to secure the right of succession, the person or persons continuing the business or operations shall submit the license or permit and all copies furnished with the license or permit for endorsement of the succession to the Chief, Federal Explosives Licensing Center, within 30 days from the date on which the successor begins to carry on the business or operations.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; ATF 2013R-9F, 79 FR 46693, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.60" NODE="27:3.0.1.3.5.4.31.19" TYPE="SECTION">
<HEAD>§ 555.60   Certain continuances of business or operations.</HEAD>
<P>A licensee or permittee who furnishes his license or permit to the Chief, Federal Explosives Licensing Center, for correction, amendment, or endorsement, as provided in this subpart, may continue his business or operations while awaiting its return.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.61" NODE="27:3.0.1.3.5.4.31.20" TYPE="SECTION">
<HEAD>§ 555.61   Discontinuance of business or operations.</HEAD>
<P>Where an explosive materials business or operations is either discontinued or succeeded by a new owner, the owner of the business or operations discontinued or succeeded shall, within 30 days, furnish notification of the discontinuance or succession and submit his license or permit and any copies furnished with the license or permit to the Chief, Federal Explosives Licensing Center. (See also § 555.128.)
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.62" NODE="27:3.0.1.3.5.4.31.21" TYPE="SECTION">
<HEAD>§ 555.62   State or other law.</HEAD>
<P>A license or permit issued under this part confers no right or privilege to conduct business or operations, including storage, contrary to State or other law. The holder of a license or permit issued under this part is not, by reason of the rights and privileges granted by that license or permit, immune from punishment for conducting an explosive materials business or operations in violation of the provisions of any State or other law. Similarly, compliance with the provisions of any State or other law affords no immunity under Federal law or regulations.


</P>
</DIV8>


<DIV8 N="§ 555.63" NODE="27:3.0.1.3.5.4.31.22" TYPE="SECTION">
<HEAD>§ 555.63   Explosives magazine changes.</HEAD>
<P>(a) <I>General.</I> (1) The requirements of this section are applicable to magazines used for other than temporary (under 24 hours) storage of explosives.
</P>
<P>(2) A magazine is considered suitable for the storage of explosives if the construction requirements of this part are met during the time explosives are stored in the magazine.
</P>
<P>(3) A magazine is considered suitable for the storage of explosives if positioned in accordance with the applicable table of distances as specified in this part during the time explosives are stored in the magazine.
</P>
<P>(4) For the purposes of this section, notification of the Director, Industry Operations may be by telephone or in writing. However, if notification of the Director, Industry Operations is in writing it must be at least three business days in advance of making changes in construction to an existing magazine or constructing a new magazine, and at least five business days in advance of using any reconstructed magazine or added magazine for the storage of explosives.
</P>
<P>(b) <I>Exception.</I> Mobile or portable type 5 magazines are exempt from the requirements of paragraphs (c) and (d) of this section, but must otherwise be in compliance with paragraphs (a) (2) and (3) of this section during the time explosives are stored in such magazines.
</P>
<P>(c) <I>Changes in magazine construction.</I> A licensee or permittee who intends to make changes in construction of an existing magazine shall notify the Director, Industry Operations describing the proposed changes prior to making any changes. Unless otherwise advised by the Director, Industry Operations, changes in construction may commence after explosives are removed from the magazine. Explosives may not be stored in a reconstructed magazine before the Director, Industry Operations has been notified in accordance with paragraph (a)(4) of this section that the changes have been completed.
</P>
<P>(d) <I>Magazines acquired or constructed after permit or license is issued.</I> A licensee or permittee who intends to construct or acquire additional magazines shall notify the Director, Industry Operations in accordance with paragraph (a)(4) of this section describing the additional magazines and the class and quantity of explosives to be stored in the magazine. Unless otherwise advised by the Director, Industry Operations, additional magazines may be constructed, or acquired magazines may be used for the storage of explosives. Explosives must not be stored in a magazine under construction. The Director, Industry Operations must be notified that construction has been completed.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 FR 45002, Aug. 24, 1998; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:3.0.1.3.5.5" TYPE="SUBPART">
<HEAD>Subpart E—License and Permit Proceedings</HEAD>


<DIV8 N="§ 555.71" NODE="27:3.0.1.3.5.5.31.1" TYPE="SECTION">
<HEAD>§ 555.71   Opportunity for compliance.</HEAD>
<P>Except in cases of willfulness or those in which the public interest requires otherwise, and the Director, Industry Operations so alleges in the notice of denial of an application or revocation of a license or permit, no license or permit will be revoked or renewal application denied without first calling to the attention of the licensee or permittee the reasons for the contemplated action and affording him an opportunity to demonstrate or achieve compliance with all lawful requirements and to submit facts, arguments, or proposals of adjustment. The notice of contemplated action, ATF F 5400.12, will afford the licensee or permittee 15 days from the date of receipt of the notice to respond. If no response is received within the 15 days, or if after consideration of relevant matters presented by the licensee or permittee, the Director, Industry Operations finds that the licensee or permittee is not likely to abide by the law and regulations, he will proceed as provided in § 555.74.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7 1981, as amended by T.D. ATF-446, 66 FR 16602, Mar. 27, 2001; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.72" NODE="27:3.0.1.3.5.5.31.2" TYPE="SECTION">
<HEAD>§ 555.72   Denial of initial application.</HEAD>
<P>Whenever the Director, Industry Operations has reason to believe that an applicant for an original license or permit is not eligible to receive a license or permit under the provisions of § 555.49, he shall issue a notice of denial on ATF F 5400.11. The notice will set forth the matters of fact and law relied upon in determining that the application should be denied, and will afford the applicant 15 days from the date of receipt of the notice in which to request a hearing to review the denial. If no request for a hearing is filed within that time, a copy of the application, marked “Disapproved”, will be returned to the applicant.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.73" NODE="27:3.0.1.3.5.5.31.3" TYPE="SECTION">
<HEAD>§ 555.73   Hearing after initial application is denied.</HEAD>
<P>If the applicant for an original license or permit desires a hearing, he shall file a request with the Director, Industry Operations within 15 days after receipt of the notice of denial. The request should include a statement of the reasons for a hearing. On receipt of the request, the Director, Industry Operations shall refer the matter to an administrative law judge who shall set a time and place (see § 555.77) for a hearing and shall serve notice of the hearing upon the applicant and the Director, Industry Operations at least 10 days in advance of the hearing date. The hearing will be conducted in accordance with the hearing procedures prescribed in part 771 of this chapter (see § 555.82). Within a reasonable time after the conclusion of the hearing, and as expeditiously as possible, the administrative law judge shall render his recommended decision. He shall certify to the complete record of the proceedings before him and shall immediately forward the complete certified record, together with four copies of his recommended decision, to the Director, Industry Operations for decision.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014; ATF 33F, 84 FR 64744, Nov. 25, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.74" NODE="27:3.0.1.3.5.5.31.4" TYPE="SECTION">
<HEAD>§ 555.74   Denial of renewal application or revocation of license or permit.</HEAD>
<P>If following the opportunity for compliance under § 555.71, or without opportunity for compliance under § 555.71, as circumstances warrant, the Director, Industry Operations finds that the licensee or permittee is not likely to comply with the law or regulations or is otherwise not eligible to continue operations authorized under his license or permit, the Director, Industry Operations shall issue a notice of denial of the renewal application or revocation of the license or permit, ATF F 5400.11 or ATF F 5400.10, as appropriate. In either case, the notice will set forth the matters of fact constituting the violations specified, dates, places, and the sections of law and regulations violated. The notice will, in the case of revocation of a license or permit, specify the date on which the action is effective, which date will be on or after the date the notice is served on the licensee or permittee. The notice will also advise the licensee or permittee that he may, within 15 days after receipt of the notice, request a hearing and, if applicable, a stay of the effective date of the revocation of his license or permit.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.75" NODE="27:3.0.1.3.5.5.31.5" TYPE="SECTION">
<HEAD>§ 555.75   Hearing after denial of renewal application or revocation of license or permit.</HEAD>
<P>If a licensee or permittee whose renewal application has been denied or whose license or permit has been revoked desires a hearing, he shall file a request for a hearing with the Director, Industry Operations. In the case of the revocation of a license or permit, he may include a request for a stay of the effective date of the revocation. On receipt of the request the Director, Industry Operations shall advise the licensee or permittee whether the stay of the effective date of the revocation is granted. If the stay of the effective date of the revocation is granted, the Director, Industry Operations shall refer the matter to an administrative law judge who shall set a time and place (see § 555.77) for a hearing and shall serve notice of the hearing upon the licensee or permittee and the Director, Industry Operations at least 10 days in advance of the hearing date. If the stay of the effective date of the revocation is denied, the licensee or permittee may request an immediate hearing. In this event, the Director, Industry Operations shall immediately refer the matter to an administrative law judge who shall set a date and place for a hearing, which date shall be no later than 10 days from the date the licensee or permittee requested an immediate hearing. The hearing will be held in accordance with the applicable provisions of part 771 of this chapter. Within a reasonable time after the conclusion of the hearing, and as expeditiously as possible, the administrative law judge shall render his decision. He shall certify to the complete record of the proceeding before him and shall immediately forward the complete certified record, together with two copies of his decision, to the Director, Industry Operations, serve one copy of his decision on the licensee or permittee or his counsel, and transmit a copy to the attorney for the Government.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014; ATF 33F, 84 FR 64744, Nov. 25, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.76" NODE="27:3.0.1.3.5.5.31.6" TYPE="SECTION">
<HEAD>§ 555.76   Action by Director, Industry Operations.</HEAD>
<P>(a) <I>Initial application proceedings.</I> If, upon receipt of the record and the recommended decision of the administrative law judge, the Director, Industry Operations decides that the license or permit should be issued, the Director, Industry Operations shall cause the application to be approved, briefly stating, for the record, his reasons. If he contemplates that the denial should stand, he shall serve a copy of the administrative law judge's recommended decision on the applicant, informing the applicant of his contemplated action and affording the applicant not more than 10 days in which to submit proposed findings and conclusions or exceptions to the recommended decision with supporting reasons. If the Director, Industry Operations, after consideration of the record of the hearing and of any proposed findings, conclusions, or exceptions filed with him by the applicant, approves the findings, conclusions and recommended decision of the administrative law judge, the Director, Industry Operations shall cause the license or permit to be issued or disapproved the application accordingly. If he disapproves the findings, conclusions, and recommendation of the administrative law judge, in whole or in part, he shall by order make such findings and conclusions as in his opinion are warranted by the law and the facts in the record. Any decision of the Director, Industry Operations ordering the disapproval of an initial application for a license or permit shall state the findings and conclusions upon which it is based, including his ruling upon each proposed finding, conclusion, and exception to the administrative law judge's recommended decision, together with a statement of his findings and conclusions, and reasons or basis for his findings and conclusions, upon all material issues of fact, law or discretion presented on the record. A signed duplicate original of the decision will be served upon the applicant and the original copy containing certificate of service will be placed in the official record of the proceedings. If the decision of the Director, Industry Operations is in favor of the applicant, he shall issue the license or permit, to be effective on issuance.
</P>
<P>(b) <I>Renewal application and revocation proceedings.</I> Upon receipt of the complete certified records of the hearing, the Director, Industry Operations shall enter an order confirming the revocation of the license or permit, or disapproving the application, in accordance with the administrative law judge's findings and decision, unless he disagrees with the findings and decision. A signed duplicate original of the order, ATF F 5400.9, will be served upon the licensee or permittee and the original copy containing certificate of service will be placed in the official record of the proceedings. If the Director, Industry Operations disagrees with the findings and decision of the administrative law judge, he shall file a petition with the Director for review of the findings and decision, as provided in § 555.79. In either case, if the renewal application denial is sustained, a copy of the application marked “Disapproved” will be returned to the applicant. If the renewal application denial is reversed, a license or permit will be issued to become effective on expiration of the license or permit being renewed, or on the date of issuance, whichever is later. If the proceedings involve the revocation of a license or permit which expired before a decision is in favor of the licensee or permittee, the Director, Industry Operations shall:
</P>
<P>(1) If renewal application was timely filed and a stay of the effective date of the revocation was granted, cause to be issued a license or permit effective on the date of issuance;
</P>
<P>(2) If renewal application was not timely filed but a stay of the effective date of the revocation had been granted, request that a renewal application be filed and, following that, cause to be issued a license or permit to be effective on issuance; or
</P>
<P>(3) If a stay of the effective date of the revocation had not been granted, request that an application be filed as provided in § 555.45, and process it in the same manner as for an application for an original license or permit.
</P>
<P>(c) <I>Curtailment of stay of revocation effective date.</I> If, after approval of a request for a stay of the effective date of an order revoking a license or permit but before actions are completed under this subpart, the Director, Industry Operations finds that it is contrary to the public interest for the licensee or permittee to continue the operations or activities covered by his license or permit, the Director, Industry Operations may issue a notice of withdrawal of the approval, effective on the date of issuance. Notice of withdrawal will be served upon the licensee or permittee in the manner provided in § 555.81.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.77" NODE="27:3.0.1.3.5.5.31.7" TYPE="SECTION">
<HEAD>§ 555.77   Designated place of hearing.</HEAD>
<P>The designated place of hearing set as provided in § 555.73 or § 555.75, will be at the location convenient to the aggrieved party.


</P>
</DIV8>


<DIV8 N="§ 555.78" NODE="27:3.0.1.3.5.5.31.8" TYPE="SECTION">
<HEAD>§ 555.78   Representation at a hearing.</HEAD>
<P>An applicant, licensee, or permittee may represent himself, or be represented by an attorney, a certified public accountant, or any other person, specifically designated in a duly executed power of attorney that shall be filed in the proceeding by the applicant, licensee, or permittee. The applicant, licensee, or permittee shall file waivers, if applicable, under the Privacy Act of 1974 and 26 U.S.C. 6103(c) (confidentiality and disclosure of returns and return information). The Director of Industry Operations may be represented in proceedings under §§ 555.73 and 555.75 by an attorney in the Office of Chief Counsel who is authorized to execute and file motions, briefs and other papers in the proceeding, on behalf of the Director of Industry Operations, in the attorney's own name as “Attorney for the Government.”
</P>
<CITA TYPE="N">[ATF 33F, 84 FR 64744, Nov. 25, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.79" NODE="27:3.0.1.3.5.5.31.9" TYPE="SECTION">
<HEAD>§ 555.79   Appeal on petition to the Director.</HEAD>
<P>An appeal to the Director is not required prior to filing an appeal with the U.S. Court of Appeals for judicial review. An appeal may be taken by the applicant, licensee, or permittee to the Director from a decision resulting from a hearing under § 555.73 or § 555.75. An appeal may also be taken by a Director, Industry Operations from a decision resulting from a hearing under § 555.75 as provided in § 555.76(b). The appeal shall be taken by filing a petition for review on appeal with the Director within 15 days of the service of an administrative law judge's decision or an order. The petition will set forth facts tending to show action of an arbitrary nature, action without reasonable warrant in fact, or action contrary to law and regulations. A copy of the petition will be filed with the Director, Industry Operations or served on the applicant, licensee, or permittee, as the case may be. In the event of appeal, the Director, Industry Operations shall immediately forward the complete original record, by certified mail, to the Director for his consideration, review, and disposition as provided in subpart I of part 771 of this chapter. When, on appeal, the Director affirms the initial decision of the Director, Industry Operations or the administrative law judge, as the case may be, the initial decision will be final.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014; ATF 33F, 84 FR 64744, Nov. 25, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.80" NODE="27:3.0.1.3.5.5.31.10" TYPE="SECTION">
<HEAD>§ 555.80   Court review.</HEAD>
<P>An applicant, licensee, or permittee may, within 60 days after receipt of the decision of the administrative law judge or the final order of the Director, Industry Operations or the Director, file a petition for a judicial review of the decision, with the U.S. Court of Appeals for the district in which he resides or has his principal place of business. The Director, upon notification that a petition has been filed, shall have prepared a complete transcript of the record of the proceedings. The Director, Industry Operations or the Director, as the case may be, shall certify to the correctness of the transcript of the record, forward one copy to the attorney for the Government in the review of the case, and file the original record of the proceedings with the original certificate in the U.S. Court of Appeals.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.81" NODE="27:3.0.1.3.5.5.31.11" TYPE="SECTION">
<HEAD>§ 555.81   Service on applicant, licensee, or permittee.</HEAD>
<P>All notices and other formal documents required to be served on an applicant, licensee, or permittee under this subpart will be served by certified mail or by personal delivery. Where service is by personal delivery, the signed duplicate original copy of the formal document will be delivered to the applicant, licensee, or permittee, or, in the case of a corporation, partnership, or association, by delivering it to an officer, manager, or general agent, or to its attorney of record.


</P>
</DIV8>


<DIV8 N="§ 555.82" NODE="27:3.0.1.3.5.5.31.12" TYPE="SECTION">
<HEAD>§ 555.82   Rules of practice in license and permit proceedings.</HEAD>
<P>Regulations governing the procedure and practice for disapproval of applications for explosives licenses and permits and for the denial of renewal or revocation of such licenses and permits under the Act are contained in part 771 of this chapter.
</P>
<CITA TYPE="N">[ATF 33F, 84 FR 64744, Nov. 25, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.83" NODE="27:3.0.1.3.5.5.31.13" TYPE="SECTION">
<HEAD>§ 555.83   Operations by licensees or permittees after notice of denial or revocation.</HEAD>
<P>In any case where a notice of revocation has been issued and a request for a stay of the effective date of the revocation has not been granted, the licensee or permittee shall not engage in the activities covered by the license or permit pending the outcome of proceedings under this subpart. In any case where notice of revocation has been issued but a stay of the effective date of the revocation has been granted, the licensee or permittee may continue to engage in the activities covered by his license or permit unless, or until, formally notified to the contrary: <I>Provided,</I> That in the event the license or permit would have expired before proceedings under this subpart are completed, timely renewal application must have been filed to continue the license or permit beyond its expiration date. In any case where a notice of denial of a renewal application has been issued, the licensee or permittee may continue to engage in the activities covered by the existing license or permit after the date of expiration of the license or permit until proceedings under this subpart are completed.


</P>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:3.0.1.3.5.6" TYPE="SUBPART">
<HEAD>Subpart F—Conduct of Business or Operations</HEAD>


<DIV8 N="§ 555.101" NODE="27:3.0.1.3.5.6.31.1" TYPE="SECTION">
<HEAD>§ 555.101   Posting of license or user permit.</HEAD>
<P>A license or user permit issued under this part, or a copy of a license or user permit, will be posted and available for inspection on the business premises at each place where explosive materials are manufactured, imported, or distributed.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981. Redesignated by T.D. ATF-487, 68 FR 3748, Jan. 24, 2003, as amended by ATF No. 1, 68 FR 13786, Mar. 20, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 555.102" NODE="27:3.0.1.3.5.6.31.2" TYPE="SECTION">
<HEAD>§ 555.102   Authorized operations by permittees.</HEAD>
<P>(a) <I>In general.</I> A permit issued under this part does not authorize the permittee to engage in the business of manufacturing, importing, or dealing in explosive materials. Accordingly, if a permittee's operations bring him within the definition of manufacturer, importer, or dealer under this part, he shall qualify for the appropriate license.
</P>
<P>(b) <I>Distributions of surplus stocks.</I> Permittees are not authorized to engage in the business of sale or distribution of explosive materials. However, permittees may dispose of surplus stocks of explosive materials to other licensees or permittees in accordance with § 555.103 and § 555.105.
</P>
<CITA TYPE="N">[T.D. ATF-400, 63 FR 45002, Aug. 24, 1998, as amended by ATF No. 1, 68 FR 13787, Mar. 20, 2003; ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.103" NODE="27:3.0.1.3.5.6.31.3" TYPE="SECTION">
<HEAD>§ 555.103   Transactions among licensees/permittees and transactions among licensees and holders of user permits.</HEAD>
<P>(a) [Reserved]
</P>
<P>(b) <I>Transactions among licensees/permittees on and after May 24, 2003</I>—(1) <I>General.</I> (i) A licensed importer, licensed manufacturer or licensed dealer selling or otherwise distributing explosive materials (or a holder of a user permit disposing of surplus stock to a licensee; a holder of a user permit; or a holder of a limited permit who is within the same State as the distributor) who has the certified information required by this section may sell or distribute explosive materials to a licensee or permittee for not more than 45 days following the expiration date of the distributee's license or permit, unless the distributor knows or has reason to believe that the distributee's authority to continue business or operations under this part has been terminated.
</P>
<P>(ii) A licensed importer, licensed manufacturer or licensed dealer selling or otherwise distributing explosive materials (or a holder of a user permit disposing of surplus stock to another licensee or permittee) must verify the license or permit status of the distributee prior to the release of explosive materials ordered, as required by this section.
</P>
<P>(iii) Licensees or permittees desiring to return explosive materials to a licensed manufacturer may do so without obtaining a certified copy of the manufacturer's license.
</P>
<P>(2) <I>Verification of license/user permit.</I> (i) Prior to or with the first order of explosive materials, the distributee must provide the distributor a certified copy (or, in the case of a user-limited, the original) of the distributee's license or user permit. However, licensees or holders of user permits that are business organizations may (in lieu of a certified copy of a license or user permit) provide the distributor with a certified list that contains the name, address, license or user permit number, and date of the license or user permit expiration of each location.
</P>
<P>(ii) The distributee must also provide the distributor with a current list of the names of persons authorized to accept delivery of explosive materials on behalf of the distributee. The distributee ordering explosive materials must keep the list current and provide updated lists to licensees and holders of user permits on a timely basis. A distributor may not transfer possession of explosive materials to any person whose name does not appear on the current list of names of persons authorized to accept delivery of explosive materials on behalf of the distributee. Except as provided in paragraph (b)(3) of this section, in all instances the distributor must verify the identity of the distributee, or the employee of the distributee accepting possession of explosive materials on behalf of the distributee, by examining an identification document (as defined in § 555.11) before relinquishing possession.
</P>
<P>(iii) A licensee or holder of a user permit ordering explosive materials from another licensee or permittee must provide to the distributor a current, certified statement of the intended use of the explosive materials, <I>e.g.,</I> resale, mining, quarrying, agriculture, construction, sport rocketry, road building, oil well drilling, seismographic research, etc.
</P>
<P>(A) For individuals, the certified statement of intended use must specify the name, address, date and place of birth, and social security number of the distributee.
</P>
<P>(B) For business organizations, the certified statement of intended use must specify the taxpayer identification number, the identity and the principal and local places of business.
</P>
<P>(C) The licensee or holder of a user permit purchasing explosive materials must revise the furnished copy of the certified statement only when the information is no longer current.
</P>
<P>(3) <I>Delivery of explosive materials by common or contract carrier.</I> When a common or contract carrier will transport explosive materials from a distributor to a distributee who is a licensee or holder of a user permit, the distributor must take the following actions before relinquishing possession of the explosive materials:
</P>
<P>(i) Verify the identity of the person accepting possession for the common or contract carrier by examining such person's valid, unexpired driver's license issued by any State, Canada, or Mexico; and
</P>
<P>(ii) Record the name of the common or contract carrier (<I>i.e.,</I> the name of the driver's employer) and the full name of the driver. This information must be maintained in the distributor's permanent records in accordance with § 555.121.
</P>
<P>(4) <I>User-limited permit transactions.</I> A user-limited permit issued under the provisions of this part is valid for only a single purchase transaction and is not renewable (see § 555.51). Accordingly, at the time a user-limited permittee orders explosive materials, the licensed distributor must write on the front of the user-limited permit the transaction date, his signature, and the distributor's license number prior to returning the permit to the user-limited permittee.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0079)
</APPRO>
<CITA TYPE="N">[ATF No. 1, 68 FR 13787, Mar. 20, 2003, as amended by ATF No. 2, 68 FR 53512, Sept. 11, 2003; ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.104" NODE="27:3.0.1.3.5.6.31.4" TYPE="SECTION">
<HEAD>§ 555.104   Certified copy of license or permit.</HEAD>
<P>Except as provided in § 555.49(a), each person issued a license or permit under this part shall be furnished together with his license or permit a copy for his certification. If a person desires an additional copy of his license or permit for certification and for use under § 555.103, he shall:
</P>
<P>(a) Make a reproduction of the copy of his license or permit and execute the certification on it;
</P>
<P>(b) Make a reproduction of his license or permit, enter on the reproduction the statement: “I certify that this is a true copy of a (<I>insert the word license or permit</I>) issued to me to engage in the specified business or operations”, and sign his name next to the statement; or
</P>
<P>(c) Submit a request, in writing, for certified copies of his license or permit to the Chief, Federal Explosives Licensing Center. The request will show the name, trade name (if any), and address of the licensee or permittee and the number of copies of the license or permit desired. There is a fee of $1 for each copy of a license or permit issued by the Chief, Federal Explosives Licensing Center under this paragraph. Fee payment must accompany each request for additional copies of a license or permit. The fee must be paid by (1) cash, or (2) money order or check made payable to the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-290, 54 FR 53054, Dec. 27, 1989; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.105" NODE="27:3.0.1.3.5.6.31.5" TYPE="SECTION">
<HEAD>§ 555.105   Distributions to limited permittees.</HEAD>
<P>(a) [Reserved]
</P>
<P>(b) <I>Distributions to holders of limited permits on and after May 24, 2003.</I> (1) This section will apply in any case where distribution of explosive materials to the distributee is not otherwise prohibited by the Act or this part.
</P>
<P>(2) A licensed importer, licensed manufacturer or a licensed dealer may distribute explosive materials to a holder of a limited permit if such permittee is a resident of the same State in which the licensee's business premises are located, the holder of the limited permit presents in person or by mail ATF Form 5400.4, Limited Permittee Transaction Report (LPTR), and the licensee completes Form 5400.4 in accordance with § 555.126(b). In no event will a licensee distribute explosive materials to a holder of a limited permit unless the holder presents a Form 5400.4 with an original unaltered and unexpired Intrastate Purchase of Explosives Coupon (IPEC), ATF Form 5400.30, affixed. The coupon must bear the name, address, permit number, and the coupon number of the limited permittee seeking distribution of the explosives.
</P>
<P>(3) A holder of a limited permit is authorized to receive explosive materials from a licensee or permittee whose premises are located in the same State of residence in which the premises of the holder of the limited permit are located on no more than 6 separate occasions during the one-year period of the permit. For purposes of this section, the term “6 separate occasions” means six deliveries of explosive materials. Each delivery must—
</P>
<P>(i) Relate to a single purchase transaction made on one ATF F 5400.4;
</P>
<P>(ii) Be referenced on one commercial invoice or purchase order; and
</P>
<P>(iii) Be delivered to the holder of the limited permit in one shipment delivered at the same time.
</P>
<P>(4) A holder of a user permit may dispose of surplus stocks of explosive materials to a licensee or holder of a user permit, or a holder of a limited permit who is a resident of the same State in which the premises of the holder of the user permit are located. A holder of a limited permit may dispose of surplus stocks of explosive materials to another holder of a limited permit who is a resident of the same State in which the premises of the distributor are located, if the transaction complies with the requirements of paragraph (b)(2) of this section and § 555.126(b). A holder of a limited permit may also dispose of surplus stocks of explosive materials to a licensee or holder of a user permit if the disposition occurs in the State of residence of the holder of the limited permit. (<I>See</I> § 555.103.)
</P>
<P>(5) Each holder of a limited permit ordering explosive materials must furnish the distributing licensee prior to or with the first order of the explosive materials a current list of the names of employees authorized to accept delivery of explosive materials on behalf of the limited permittee. The distributee ordering explosive materials must keep the list current and provide updated lists to licensees and holders of user permits on a timely basis. A licensed importer, licensed manufacturer, licensed dealer, or permittee, selling or otherwise distributing explosive materials to a holder of a limited permit must, prior to delivering the explosive materials, obtain from the limited permittee a current list of persons who are authorized to accept deliveries of explosive materials on behalf of the limited permittee. A licensee or permittee may not deliver explosive materials to a person whose name does not appear on the list.
</P>
<P>(6)(i) <I>Delivery at the distributor's premises.</I> Where possession of explosive materials is transferred directly to the distributee at the distributor's premises, the distributor must obtain an executed Form 5400.4 in accordance with § 555.126(b) and must in all instances verify the identity of the person accepting possession on behalf of the distributee by examining an identification document (as defined in § 555.11) before relinquishing possession.
</P>
<P>(ii) <I>Delivery by distributor.</I> Where possession of explosive materials is transferred by the distributor to the distributee away from the distributor's premises, the distributor must obtain an executed Form 5400.4 in accordance with § 555.126(b) and must in all instances verify the identity of the person accepting possession on behalf of the distributee by examining an identification document (as defined in § 555.11) before relinquishing possession.
</P>
<P>(iii) <I>Delivery by common or contract carrier hired by the distributor.</I> Where a common or contract carrier hired by the distributor will transport explosive materials from the distributor to a holder of a limited permit:
</P>
<P>(A) The limited permittee must, prior to delivery of the explosive materials, complete the appropriate section on Form 5400.4, affix to the Form 5400.4 one of the six IPECs he has been issued, and provide the form to the distributor in person or by mail.
</P>
<P>(B) The distributor must, before relinquishing possession of the explosive materials to the common or contract carrier:
</P>
<P>(<I>1</I>) Verify the identity of the person accepting possession for the common or contract carrier by examining such person's valid, unexpired driver's license issued by any State, Canada, or Mexico; and
</P>
<P>(<I>2</I>) Record the name of the common or contract carrier (<I>i.e.,</I> the name of the driver's employer) and the full name of the driver. This information must be maintained in the distributor's permanent records in accordance with § 555.121.
</P>
<P>(C) At the time of delivery of the explosive materials, the common or contract carrier, as agent for the distributor, must verify the identity of the person accepting delivery on behalf of the distributee, note the type and number of the identification document (as defined in § 555.11) and provide this information to the distributor. The distributor must enter this information in the appropriate section on Form 5400.4.
</P>
<P>(iv) <I>Delivery by common or contract carrier hired by the distributee.</I> Where a common or contract carrier hired by the distributee will transport explosive materials from the distributor to a holder of a limited permit:
</P>
<P>(A) The limited permittee must, prior to delivery of the explosive materials, complete the appropriate section on Form 5400.4, affix to the Form 5400.4 one of the six IPECs he has been issued, and provide the form to the distributor in person or by mail.
</P>
<P>(B) Before the delivery at the distributor's premises to the common or contract carrier who will transport explosive materials to the holder of a limited permit, the distributor must:
</P>
<P>(<I>1</I>) Verify the identity of the person accepting possession for the common or contract carrier by examining such person's valid, unexpired driver's license issued by any State, Canada, or Mexico; and
</P>
<P>(<I>2</I>) Record the name of the common or contract carrier (<I>i.e.,</I> the name of the driver's employer) and the full name of the driver. This information must be maintained in the distributor's permanent records in accordance with § 555.121.
</P>
<P>(7) A licensee or permittee disposing of surplus stock may sell or distribute commercially manufactured black powder in quantities of 50 pounds or less to a holder of a limited permit, nonlicensee, or nonpermittee if the black powder is intended to be used solely for sporting, recreational, or cultural purposes in antique firearms as defined in 18 U.S.C. 921(a)(16), or in antique devices as exempted from the term “destructive device” in 18 U.S.C. 921(a)(4).
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0075)
</APPRO>
<CITA TYPE="N">[ATF No. 1, 68 FR 13788, Mar. 20, 2003, as amended by ATF No. 2, 68 FR 53513, Sept. 11, 2003; ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.106" NODE="27:3.0.1.3.5.6.31.6" TYPE="SECTION">
<HEAD>§ 555.106   Certain prohibited distributions.</HEAD>
<P>(a) A licensee or permittee may not distribute explosive materials to any person except—
</P>
<P>(1) A licensee;
</P>
<P>(2) A holder of a user permit; or
</P>
<P>(3) A holder of a limited permit who is a resident of the State where distribution is made and in which the premises of the transferor are located.
</P>
<P>(b) A licensee shall not distribute any explosive materials to any person:
</P>
<P>(1) Who the licensee knows is less than 21 years of age;
</P>
<P>(2) In any State where the purchase, possession, or use by a person of explosive materials would be in violation of any State law or any published ordinance applicable at the place of distribution;
</P>
<P>(3) Who the licensee has reason to believe intends to transport the explosive materials into a State where the purchase, possession, or use of explosive materials is prohibited or which does not permit its residents to transport or ship explosive materials into the State or to receive explosive materials in the State; or
</P>
<P>(4) Who the licensee has reasonable cause to believe intends to use the explosive materials for other than a lawful purpose.
</P>
<P>(c) A licensee shall not distribute any explosive materials to any person knowing or having reason to believe that the person:
</P>
<P>(1) Is, except as provided under § 555.142 (d) and (e), under indictment or information for, or was convicted in any court of, a crime punishable by imprisonment for a term exceeding 1 year;
</P>
<P>(2) Is a fugitive from justice;
</P>
<P>(3) Is an unlawful user of marijuana, or any depressant or stimulant drug, or narcotic drug (as these terms are defined in the Controlled Substances Act, 21 U.S.C. 802);
</P>
<P>(4) Was adjudicated as a mental defective or was committed to a mental institution;
</P>
<P>(5) Is an alien, other than an alien who—
</P>
<P>(i) Is lawfully admitted for permanent residence (as that term is defined in section 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101));
</P>
<P>(ii) Is in lawful nonimmigrant status, is a refugee admitted under section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or is in asylum status under section 208 of the Immigration and Nationality Act (8 U.S.C. 1158), and—
</P>
<P>(A) Is a foreign law enforcement officer of a friendly foreign government, as determined by the Attorney General in consultation with the Secretary of State, entering the United States on official law enforcement business, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of this official law enforcement business;
</P>
<P>(B) Is a person having the power to direct or cause the direction of the management and policies of a corporation, partnership, or association licensed pursuant to section 843(a), and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of such power;
</P>
<P>(C) Is a member of a North Atlantic Treaty Organization (NATO) or other friendly foreign military force, as determined by the Attorney General in consultation with the Secretary of Defense, (whether or not admitted in a nonimmigrant status) who is present in the United States under military orders for training or other military purpose authorized by the United States, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of the military purpose; or
</P>
<P>(D) Is lawfully present in the United States in cooperation with the Director of Central Intelligence, and the shipment, transportation, receipt, or possession of the explosive materials is in furtherance of such cooperation;
</P>
<P>(6) Has been discharged from the armed forces under dishonorable conditions; or
</P>
<P>(7) Having been a citizen of the United States, has renounced citizenship.
</P>
<P>(d) The provisions of this section do not apply to the purchase of commercially manufactured black powder in quantities not to exceed 50 pounds, intended to be used solely for sporting, recreational, or cultural purposes in antique firearms or in antique devices, if the requirements of § 555.105(a)(7) or (b)(7) are fully met.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981. Redesignated by T.D. ATF-487, 68 FR 3748, Jan. 24, 2003, as amended by ATF No. 1, 68 FR 13790, Mar. 20, 2003]


</CITA>
</DIV8>


<DIV8 N="§ 555.107" NODE="27:3.0.1.3.5.6.31.7" TYPE="SECTION">
<HEAD>§ 555.107   Record of transactions.</HEAD>
<P>Each licensee and permittee shall keep records of explosive materials as required by subpart G of this part.


</P>
</DIV8>


<DIV8 N="§ 555.108" NODE="27:3.0.1.3.5.6.31.8" TYPE="SECTION">
<HEAD>§ 555.108   Importation.</HEAD>
<P>(a) Explosive materials imported or brought into the United States by a licensed importer or holder of a user permit may be released from customs custody to the licensed importer or holder of a user permit upon proof of his status as a licensed importer or holder of a user permit. Proof of status must be made by the licensed importer or holder of a user permit furnishing to the customs officer a certified copy of his license or permit (see § 555.103).
</P>
<P>(b) A nonlicensee or nonpermittee may import or bring into the United States commercially manufactured black powder in quantities not to exceed 50 pounds. Upon submitting to the customs officer completed ATF F 5400.3, certifying that the black powder is intended to be used solely for sporting, recreational, or cultural purposes in antique firearms or in antique devices, black powder may be released from customs custody. The disposition of the executed ATF F 5400.3 will be in accordance with the instructions on the form.
</P>
<P>(c) The provisions of this section are in addition to, and are not in lieu of, any applicable requirement under 27 CFR Part 447.
</P>
<P>(d) For additional requirements relating to the importation of plastic explosives into the United States on or after April 24, 1997, see § 555.183.
</P>
<P>(e) For requirements relating to the marking of imported explosive materials, see § 555.109.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 FR 8376, Feb. 25, 1997; ATF No. 1, 68 FR 13790, Mar. 20, 2003; ATF 5F, 70 FR 30633, May 27, 2005]


</CITA>
</DIV8>


<DIV8 N="§ 555.109" NODE="27:3.0.1.3.5.6.31.9" TYPE="SECTION">
<HEAD>§ 555.109   Identification of explosive materials.</HEAD>
<P>(a) <I>General.</I> Explosive materials, whether manufactured in the United States or imported, must contain certain marks of identification.
</P>
<P>(b) <I>Required marks</I>—(1) <I>Licensed manufacturers.</I> Licensed manufacturers who manufacture explosive materials for sale or distribution must place the following marks of identification on explosive materials at the time of manufacture:
</P>
<P>(i) The name of the manufacturer; and
</P>
<P>(ii) The location, date, and shift of manufacture. Where a manufacturer operates his plant for only one shift during the day, he does not need to show the shift of manufacture.
</P>
<P>(2) <I>Licensed importers.</I> (i) Licensed importers who import explosive materials for sale or distribution must place the following marks of identification on the explosive materials they import:
</P>
<P>(A) The name and address (city and state) of the importer; and
</P>
<P>(B) The location (city and country) where the explosive materials were manufactured, date, and shift of manufacture. Where the foreign manufacturer operates his plant for only one shift during the day, he does not need to show the shift of manufacture.
</P>
<P>(ii) Licensed importers must place the required marks on all explosive materials imported prior to distribution or shipment for use, and in no event later than 15 days after the date of release from Customs custody.
</P>
<P>(c) <I>General requirements.</I> (1) The required marks prescribed in this section must be permanent and legible.
</P>
<P>(2) The required marks prescribed in this section must be in the English language, using Roman letters and Arabic numerals.
</P>
<P>(3) Licensed manufacturers and licensed importers must place the required marks on each cartridge, bag, or other immediate container of explosive materials that they manufacture or import, as well as on any outside container used for the packaging of such explosive materials.
</P>
<P>(4) Licensed manufacturers and licensed importers may use any method, or combination of methods, to affix the required marks to the immediate container of explosive materials, or outside containers used for the packaging thereof, provided the identifying marks are legible, permanent, show all the required information, and are not rendered unreadable by extended periods of storage.
</P>
<P>(5) If licensed manufacturers or licensed importers desire to use a coding system and omit printed markings on the container that show all the required information specified in paragraphs (b)(1) and (2) of this section, they must file with ATF a letterhead application displaying the coding that they plan to use and explaining the manner of its application. The Director must approve the application before the proposed coding can be used.
</P>
<P>(d) <I>Exceptions</I>—(1) <I>Blasting caps.</I> Licensed manufacturers or licensed importers are only required to place the identification marks prescribed in this section on the containers used for the packaging of blasting caps.
</P>
<P>(2) <I>Alternate means of identification.</I> The Director may authorize other means of identifying explosive materials, including fireworks, upon receipt of a letter application from the licensed manufacturer or licensed importer showing that such other identification is reasonable and will not hinder the effective administration of this part. 
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control numbers 1140-0055 and 1140-0062)
</APPRO>
<CITA TYPE="N">[ATF 5F, 70 FR 30633, May 27, 2005, as amended by ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 555.110" NODE="27:3.0.1.3.5.6.31.10" TYPE="SECTION">
<HEAD>§ 555.110   Furnishing of samples (Effective on and after January 24, 2003).</HEAD>
<P>(a) <I>In general.</I> Licensed manufacturers and licensed importers and persons who manufacture or import explosive materials or ammonium nitrate must, when required by letter issued by the Director, furnish—
</P>
<P>(1) Samples of such explosive materials or ammonium nitrate;
</P>
<P>(2) Information on chemical composition of those products; and
</P>
<P>(3) Any other information that the Director determines is relevant to the identification of the explosive materials or to identification of the ammonium nitrate.
</P>
<P>(b) <I>Reimbursement.</I> The Director will reimburse the fair market value of samples furnished pursuant to paragraph (a) of this section, as well as reasonable costs of shipment.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0073)
</APPRO>
<CITA TYPE="N">[ATF No. 1, 68 FR 13790, Mar. 20, 2003]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="G" NODE="27:3.0.1.3.5.7" TYPE="SUBPART">
<HEAD>Subpart G—Records and Reports</HEAD>


<DIV8 N="§ 555.121" NODE="27:3.0.1.3.5.7.31.1" TYPE="SECTION">
<HEAD>§ 555.121   General.</HEAD>
<P>(a)(1) Licensees and permittees shall keep records pertaining to explosive materials in permanent form (i.e., commercial invoices, record books) and in the manner required in this subpart.
</P>
<P>(2) Licensees and permittees shall keep records required by this part on the business premises for five years from the date a transaction occurs or until discontinuance of business or operations by the licensee or permittee. (See also § 555.128 for discontinuance of business or operations.)
</P>
<P>(b) ATF officers may enter the premises of any licensee or holder of a user permit for the purpose of examining or inspecting any record or document required by or obtained under this part (see § 555.24). Section 843(f) of the Act requires licensees and holders of user permits to make all required records available for examination or inspection at all reasonable times. Section 843(f) of the Act also requires licensees and permittees (including holders of limited permits) to submit all reports and information relating to all required records and their contents, as the regulations in this part prescribe.
</P>
<P>(c) Each licensee and permittee shall maintain all records of importation, production, shipment, receipt, sale, or other disposition, whether temporary or permanent, of explosive materials as the regulations in this part prescribe. Sections 842(f) and 842(g) of the Act make it unlawful for any licensee or permittee knowingly to make any false entry in, or fail to make entry in, any record required to be kept under the Act and the regulations in this part.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0030)
</APPRO>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; ATF No. 1, 68 FR 13790, Mar. 20, 2003; ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 555.122" NODE="27:3.0.1.3.5.7.31.2" TYPE="SECTION">
<HEAD>§ 555.122   Records maintained by licensed importers.</HEAD>
<P>(a) Each licensed importer shall take true and accurate physical inventories which will include all explosive materials on hand required to be accounted for in the records kept under this part. The licensed importer shall take a special inventory
</P>
<P>(1) At the time of commencing business, which is the effective date of the license issued upon original qualification under this part;
</P>
<P>(2) At the time of changing the location of his business to another region;
</P>
<P>(3) At the time of discontinuing business; and
</P>
<P>(4) At any time the Director, Industry Operations may in writing require. Each special inventory is to be prepared in duplicate, the original of which is submitted to the Director, Industry Operations, and the duplicate retained by the licensed importer. If a special inventory specified by paragraphs (a) (1) through (4) of this section has not been taken during the calendar year, at least one physical inventory will be taken. However, the record of the yearly inventory, other than a special inventory required by paragraphs (a) (1) through (4) of this section, will remain on file for inspection instead of being sent to the Director, Industry Operations. (See also § 555.127.)
</P>
<P>(b) Each licensed importer shall, not later than the close of the next business day following the date of importation or other acquisition of explosive materials, enter the following information in a separate record:
</P>
<P>(1) Date of importation or other acquisition.
</P>
<P>(2) Name or brand name of manufacturer and country of manufacture.
</P>
<P>(3) Manufacturer's marks of identification.
</P>
<P>(4) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, number of display fireworks, etc.).
</P>
<P>(5) Description (dynamite (dyn), blasting agents (ba), detonators (det), display fireworks (df), etc.) and size (length and diameter or diameter only of display fireworks).
</P>
<P>(c) Each licensed importer shall, not later than the close of the next business day following the date of distribution of any explosive materials to another licensee or a permittee, enter in a separate record the following information:
</P>
<P>(1) Date of disposition.
</P>
<P>(2) Name or brand name of manufacturer and country of manufacture.
</P>
<P>(3) Manufacturer's marks of identification.
</P>
<P>(4) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, number of display fireworks, etc.).
</P>
<P>(5) Description (dynamite (dyn), blasting agents (ba), detonators (det), display fireworks (df), etc.) and size (length and diameter or diameter only of display fireworks).
</P>
<P>(6) License or permit number of licensee or permittee to whom the explosive materials are distributed.
</P>
<P>(d) The Chief, Explosives Industry Programs Branch may authorize alternate records to be maintained by a licensed importer to record his distribution of explosive materials when it is shown by the licensed importer that alternate records will accurately and readily disclose the information required by paragraph (c) of this section. A licensed importer who proposes to use alternate records shall submit a letter application to the Chief, Explosives Industry Programs Branch and shall describe the proposed alternate records and the need for them. Alternate records are not to be employed by the licensed importer until approval is received from the Chief, Explosives Industry Programs Branch.
</P>
<P>(e) Each licensed importer shall maintain separate records of the sales or other distribution made of explosive materials to nonlicensees or nonpermittees. These records are maintained as prescribed by § 555.126.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0030)
</APPRO>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. ATF-293, 55 FR 3721, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998; ATF-11F, 73 FR 57242, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.123" NODE="27:3.0.1.3.5.7.31.3" TYPE="SECTION">
<HEAD>§ 555.123   Records maintained by licensed manufacturers.</HEAD>
<P>(a) Each licensed manufacturer shall take true and accurate physical inventories which will include all explosive materials on hand required to be accounted for in the records kept under this part. The licensed manufacturer shall take a special inventory
</P>
<P>(1) At the time of commencing business, which is the effective date of the license issued upon original qualification under this part;
</P>
<P>(2) At the time of changing the location of his premises to another region;
</P>
<P>(3) At the time of discontinuing business; and
</P>
<P>(4) At any other time the Director, Industry Operations may in writing require. Each special inventory is to be prepared in duplicate, the original of which is submitted to the Director, Industry Operations, and the duplicate retained by the licensed manufacturer. If a special inventory required by paragraphs (a) (1) through (4) of this section has not been taken during the calendar year, at least one physical inventory will be taken. However, the record of the yearly inventory, other than a special inventory required by paragraphs (a) (1) through (4) of this section, will remain on file for inspection instead of being sent to the Director, Industry Operations. (See also § 555.127.)
</P>
<P>(b) Each licensed manufacturer shall not later than the close of the next business day following the date of manufacture or other acquisition of explosive materials, enter the following information in a separate record:
</P>
<P>(1) Date of manufacture or other acquisition.
</P>
<P>(2) Manufacturer's marks of identification.
</P>
<P>(3) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, number of display fireworks, etc.).
</P>
<P>(4) Name, brand name or description (dynamite (dyn), blasting agents (ba), detonators (det), display fireworks (df), etc.) and size (length and diameter or diameter only of display fireworks).
</P>
<P>(c) Each licensed manufacturer shall, not later than the close of the next business day following the date of distribution of any explosive materials to another licensee or a permittee, enter in a separate record the following information:
</P>
<P>(1) Date of disposition.
</P>
<P>(2) Name or brand name of manufacturer or name of importer, as applicable, if acquired other than by his own manufacture.
</P>
<P>(3) Manufacturer's marks of identification.
</P>
<P>(4) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, number of display fireworks, etc.).
</P>
<P>(5) Description (dynamite (dyn), blasting agents (ba), detonators (det), display fireworks (df), etc.) and size (length and diameter or diameter only of display fireworks).
</P>
<P>(6) License or permit number of licensee or permittee to whom the explosive materials are distributed.
</P>
<P>(d) Each licensed manufacturer who manufactures explosive materials for his own use shall, not later than the close of the next business day following the date of use, enter in a separate record the following information:
</P>
<P>(1) Date of use.
</P>
<P>(2) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, number of special fireworks, etc.).
</P>
<P>(3) Description (dynamite (dyn), blasting agents (ba), detonators (det), display fireworks (df), etc.) and size (length and diameter or diameter only of display fireworks).
</P>
<EXTRACT>
<FP><I>Exception:</I> A licensed manufacturer is exempt from the recordkeeping requirements of this subsection if the explosive materials are manufactured for his own use and used within a 24 hour period at the same site.</FP></EXTRACT>
<P>(e) The Chief, Explosives Industry Programs Branch may authorize alternate records to be maintained by a licensed manufacturer to record his distribution or use of explosive materials when it is shown by the licensed manufacturer that alternate records will accurately and readily disclose the information required by paragraph (c) of this section. A licensed manufacturer who proposes to use alternate records shall submit a letter application to the Chief, Explosives Industry Programs Branch and shall describe the proposed alternate records and the need for them. Alternate records are not to be employed by the licensed manufacturer until approval is received from the Chief, Explosives Industry Programs Branch.
</P>
<P>(f) Each licensed manufacturer shall maintain separate records of the sales or other distribution made of explosive materials to nonlicensees or nonpermittees. These records are maintained as prescribed by § 555.126.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0030)
</APPRO>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. ATF-293, 55 FR 3721, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998; ATF-11F, 73 FR 57242, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.124" NODE="27:3.0.1.3.5.7.31.4" TYPE="SECTION">
<HEAD>§ 555.124   Records maintained by licensed dealers.</HEAD>
<P>(a) Each licensed dealer shall take true and accurate physical inventories which will include all explosive materials on hand required to be accounted for in the records kept under this part. The licensed dealer shall take a special inventory
</P>
<P>(1) At the time of commencing business, which is the effective date of the license issued upon original qualification under this part;
</P>
<P>(2) At the time of changing the location of his premises to another region;
</P>
<P>(3) At the time of discontinuing business; and
</P>
<P>(4) At any other time the Director, Industry Operations may in writing require. Each special inventory is to be prepared in duplicate, the original of which is submitted to the Director, Industry Operations, and the duplicate retained by the licensed dealer. If a special inventory required by paragraphs (a) (1) through (4) of this section has not been taken during the calendar year, at least one physical inventory will be taken. However, the record of the yearly inventory, other than a special inventory required by paragraphs (a) (1) through (4) of this section, will remain on file for inspection instead of being sent to the Director, Industry Operations. (See also § 555.127.)
</P>
<P>(b) Each licensed dealer shall, not later than the close of the next business day following the date of purchase or other acquisition of explosive materials (except as provided in paragraph (d) of this section), enter the following information in a separate record:
</P>
<P>(1) Date of acquisition.
</P>
<P>(2) Name or brand name of manufacturer and name of importer (if any).
</P>
<P>(3) Manufacturer's marks of identification.
</P>
<P>(4) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, number of display fireworks, etc.).
</P>
<P>(5) Description (dynamite (dyn), blasting agents (ba), detonators (det), display fireworks (df), etc.) and size (length and diameter or diameter only of display fireworks).
</P>
<P>(6) Name, address, and license or permit number of the person from whom the explosive materials are received.
</P>
<P>(c) Each licensed dealer shall, not later than the close of the next business day following the date of use (if the explosives are used by the dealer) or the date of distribution of any explosive materials to another licensee or a permittee (except as provided in paragraph (d) of this section), enter in a separate record the following information:
</P>
<P>(1) Date of disposition.
</P>
<P>(2) Name or brand name of manufacturer and name of importer (if any).
</P>
<P>(3) Manufacturer's marks of identification.
</P>
<P>(4) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, number of display fireworks, etc.).
</P>
<P>(5) Description (dynamite (dyn), blasting agents (ba), detonators (det), display fireworks (df), etc.) and size (length and diameter or diameter only of display fireworks).
</P>
<P>(6) License or permit number of licensee or permittee to whom the explosive materials are distributed.
</P>
<P>(d) When a commercial record is kept by a licensed dealer showing the purchase or other acquisition information required for the permanent record prescribed by paragraph (b) of this section, or showing the distribution information required for the permanent record prescribed by paragraph (c) of this section, the licensed dealer acquiring or distributing the explosive materials may, for a period not exceeding seven days following the date of acquisition of distribution of the explosive materials, delay making the required entry into the permanent record of acquisition or distribution. However, until the required entry of acquisition or disposition is made in the permanent record, the commercial record must be (1) kept by the licensed dealer separate from other commercial documents kept by the licensee, and (2) readily available for inspection on the licensed premises.
</P>
<P>(e) The Chief, Explosives Industry Programs Branch may authorize alternate records to be maintained by a licensed dealer to record his acquisition or disposition of explosive materials, when it is shown by the licensed dealer that alternate records will accurately and readily disclose the required information. A licensed dealer who proposes to use alternate records shall submit a letter application to the Chief, Explosives Industry Programs Branch and shall describe the proposed alternate records and the need for them. Alternate records are not to be employed by the licensed dealer until approval is received from the Chief, Explosives Industry Programs Branch.
</P>
<P>(f) Each licensed dealer shall maintain separate records of the sales or other distribution made of explosive materials to nonlicensees or nonpermittees. These records are maintained as prescribed by § 555.126.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0030)
</APPRO>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. ATF-293, 55 FR 3721, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998; ATF-11F, 73 FR 57242, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.125" NODE="27:3.0.1.3.5.7.31.5" TYPE="SECTION">
<HEAD>§ 555.125   Records maintained by permittees.</HEAD>
<P>(a) [Reserved]
</P>
<P>(b) <I>Records maintained by permittees on and after May 24, 2003.</I> (1) Each holder of a user permit must take true and accurate physical inventories that will include all explosive materials on hand required to be accounted for in the records kept under this part. The permittee must take a special inventory—
</P>
<P>(i) At the time of commencing business, which is the effective date of the permit issued upon original qualification under this part;
</P>
<P>(ii) At the time of changing the location of his premises;
</P>
<P>(iii) At the time of discontinuing business; and
</P>
<P>(iv) At any other time the Director, Industry Operations may in writing require. Each special inventory is to be prepared in duplicate, the original of which is submitted to the Director, Industry Operations and the duplicate retained by the permittee. If a special inventory required by paragraphs (b)(1)(i) through (iv) of this section has not been taken during the calendar year, a permittee is required to take at least one physical inventory. The record of the yearly inventory, other than a special inventory required by paragraphs (b)(1)(i) through (iv) of this section, will remain on file for inspection instead of being sent to the Director, Industry Operations. (<I>See</I> also § 555.127.)
</P>
<P>(2) Each holder of a limited permit must take true and accurate physical inventories, at least annually, that will include all explosive materials on hand required to be accounted for in the records kept under this part.
</P>
<P>(3) Each holder of a user permit or a limited permit must, not later than the close of the next business day following the date of acquisition of explosive materials, enter the following information in a separate record:
</P>
<P>(i) Date of acquisition;
</P>
<P>(ii) Name or brand name of manufacturer;
</P>
<P>(iii) Manufacturer's marks of identification;
</P>
<P>(iv) Quantity (applicable quantity units, such as pounds of explosives, number of detonators, number of display fireworks, etc.);
</P>
<P>(v) Description (dynamite (dyn), blasting agents (ba), detonators (det), display fireworks (df), etc., and size (length and diameter or diameter only of display fireworks)); and
</P>
<P>(vi) Name, address, and license number of the persons from whom the explosive materials are received.
</P>
<P>(4) Each holder of a user permit or a limited permit must, not later than the close of the next business day following the date of disposition of surplus explosive materials to another permittee or a licensee, enter in a separate record the information prescribed in § 555.124(c).
</P>
<P>(5) When a record book is used as a permittee's permanent record the permittee may delay entry of the required information for a period not to exceed seven days if the commercial record contains all of the required information prescribed by paragraphs (b)(3) and (b)(4) of this section. However, the commercial record may be used instead of a record book as a permanent record provided that the record contains all of the required information prescribed by paragraphs (b)(3) and (b)(4) of this section.
</P>
<P>(6) Each holder of a user permit or a limited permit must maintain separate records of disposition of surplus stocks of explosive materials to holders of a limited permit as prescribed in § 555.126.
</P>
<P>(7) The Chief, Explosives Industry Programs Branch may authorize alternate records to be maintained by a holder of a user permit or a limited permit to record his acquisition of explosive materials, when it is shown by the permittee that alternate records will accurately and readily disclose the required information. A permittee who proposes to use alternate records must submit a letter application to the Chief, Explosives Industry Programs Branch and must describe the proposed alternate records and the need for them. Alternate records are not to be employed by the permittee until approval is received from the Chief, Explosives Industry Programs Branch.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0030)
</APPRO>
<CITA TYPE="N">[ATF No. 1, 68 FR 13790, Mar. 20, 2003, as amended by ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014; ATF 2017R-21, 84 FR 13799, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.126" NODE="27:3.0.1.3.5.7.31.6" TYPE="SECTION">
<HEAD>§ 555.126   Limited Permittee Transaction Report for distribution of explosive materials.</HEAD>
<P>(a) [Reserved]
</P>
<P>(b) <I>Limited Permittee Transaction Report for distribution of explosive materials on and after May 24, 2003.</I> (1) A licensee or permittee may not distribute explosive materials to any person who is not a licensee or permittee. A licensee or permittee may not distribute explosive materials to a limited permittee unless the distributor records the transaction on ATF Form 5400.4, Limited Permittee Transaction Report.
</P>
<P>(2) Before distributing explosive materials to a limited permittee, the licensee or permittee must obtain an executed Form 5400.4 from the limited permittee with an original unaltered and unexpired Intrastate Purchase of Explosives Coupon (IPEC) affixed. Except when delivery of explosive materials is made by a common or contract carrier who is an agent of the limited permittee, the licensee, permittee, or an agent of the licensee or permittee, must verify the identity of the holder of the limited permit by examining an identification document (as defined in § 555.11) and noting on the Form 5400.4 the type of document presented. The licensee or permittee must complete the appropriate section on Form 5400.4 to indicate the type and quantity of explosive materials distributed, the license or permit number of the seller, and the date of the transaction. The licensee or permittee must sign and date the form and include any other information required by the instructions on the form and the regulations in this part.
</P>
<P>(3) One copy of Form 5400.4 must be retained by the distributor as part of his permanent records in accordance with paragraph (b)(4) of this section and for the period specified in § 555.121. The distributor must mail the other copy of Form 5400.4 to the Bureau of Alcohol, Tobacco, Firearms and Explosives in accordance with the instructions on the form.
</P>
<P>(4) Each Form 5400.4 must be retained in chronological order by date of disposition, or in alphabetical order by name of limited permittee. A licensee may not, however, use both methods in a single recordkeeping system. Where there is a change in proprietorship by a limited permittee, the forms may continue to be filed together after such change.
</P>
<P>(5) The requirements of this section are in addition to any other recordkeeping requirement contained in this part.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0078)
</APPRO>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-93, 46 FR 50787, Oct. 15, 1981; T.D. ATF-172, 49 FR 14941, Apr. 16, 1984; T.D. ATF-446, 66 FR 16602, Mar. 27, 2001; ATF No. 1, 68 FR 13791, Mar. 20, 2003; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014; ATF 2017R-21, 84 FR 13800, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.127" NODE="27:3.0.1.3.5.7.31.7" TYPE="SECTION">
<HEAD>§ 555.127   Daily summary of magazine transactions.</HEAD>
<P>In taking the inventory required by §§ 555.122, 555.123, 555.124, and 555.125, a licensee or permittee shall enter the inventory in a record of daily summary transactions to be kept at each magazine of an approved storage facility; however, these records may be kept at one central location on the business premises if separate records of daily transactions are kept for each magazine. Not later than the close of the next business day, each licensee and permittee shall record by manufacturer's name or brand name, the total quantity received in and removed from each magazine during the day, and the total remaining on hand at the end of the day. Quantity entries for display fireworks may be expressed as the number and size of individual display fireworks in a finished state or as the number of packaged display segments or packaged displays. Information as to the number and size of display fireworks contained in any one packaged display segment or packaged display shall be provided to any ATF officer on request. Any discrepancy which might indicate a theft or loss of explosive materials is to be reported in accordance with § 555.30.
</P>
<CITA TYPE="N">[T.D. ATF-293, 55 FR 3722, Feb. 5, 1990, as amended by T.D. ATF-400, 63 FR 45003, Aug. 24, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 555.128" NODE="27:3.0.1.3.5.7.31.8" TYPE="SECTION">
<HEAD>§ 555.128   Discontinuance of business.</HEAD>
<P>Where an explosive materials business or operations is discontinued and succeeded by a new licensee or new permittee, the records prescribed by this subpart shall appropriately reflect such facts and shall be delivered to the successor. Where discontinuance of the business or operations is absolute, the records required by this subpart must be delivered within 30 days following the business or operations discontinuance to any ATF office located in the region in which the business was located, or to the ATF Out-of-Business Records Center, 244 Needy Road, Martinsburg, West Virginia 25405. Where State law or local ordinance requires the delivery of records to other responsible authority, the Chief, Federal Explosives Licensing Center may arrange for the delivery of the records required by this subpart to such authority. (See also, § 555.61.)
</P>
<CITA TYPE="N">[T.D. ATF-290, 54 FR 53054, Dec. 27, 1989, as amended by T.D. ATF-446a, 66 FR 19089, Apr. 13, 2001; ATF No. 1, 68 FR 13792, Mar. 20, 2003; ATF-11F, 73 FR 57242, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.129" NODE="27:3.0.1.3.5.7.31.9" TYPE="SECTION">
<HEAD>§ 555.129   Exportation.</HEAD>
<P>Exportation of explosive materials is to be in accordance with the applicable provisions of section 38 of the Arms Export Control Act (22 U.S.C. 2778) and implementing regulations. However, a licensed importer, licensed manufacturer, or licensed dealer exporting explosive materials shall maintain records showing the manufacture or acquisition of explosive materials as required by this part and records showing the quantity, the manufacturer's name or brand name of explosive materials, the name and address of the foreign consignee of the explosive materials, and the date the explosive materials were exported. See § 555.180 for regulations concerning the exportation of plastic explosives.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-387, 62 FR 8377, Feb. 25, 1997]


</CITA>
</DIV8>


<DIV8 N="§ 555.130" NODE="27:3.0.1.3.5.7.31.10" TYPE="SECTION">
<HEAD>§ 555.130   [Reserved]</HEAD>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:3.0.1.3.5.8" TYPE="SUBPART">
<HEAD>Subpart H—Exemptions</HEAD>


<DIV8 N="§ 555.141" NODE="27:3.0.1.3.5.8.31.1" TYPE="SECTION">
<HEAD>§ 555.141   Exemptions.</HEAD>
<P>(a) <I>General.</I> Except for the provisions of §§ 555.180 and 555.181, this part does not apply to:
</P>
<P>(1) Any aspect of the transportation of explosive materials via railroad, water, highway, or air which is regulated by the U.S. Department of Transportation and its agencies, and which pertains to safety. For example, regulations issued by the Department of Transportation addressing the security risk of aliens transporting explosives by commercial motor or railroad carrier from Canada preclude the enforcement of 18 U.S.C. 842(i)(5) against persons shipping, transporting, receiving, or possessing explosives incident to and in connection with the commercial transportation of explosives by truck or rail from Canada into the United States. Questions concerning this exception should be directed to ATF's Explosives Industry Program Branch in Washington, DC.
</P>
<P>(2) The use of explosive materials in medicines and medicinal agents in the forms prescribed by the official United States Pharmacopeia or the National Formulary. “The United States Pharmacopeia and The National Formulary,” USP and NF Compendia, are available from the United States Pharmacopeial Convention, Inc., 12601 Twinbrook Parkway, Rockville, Maryland 20852.
</P>
<P>(3) The transportation, shipment, receipt, or importation of explosive materials for delivery to any agency of the United States or to any State or its political subdivision.
</P>
<P>(4) Small arms ammunition and components of small arms ammunition.
</P>
<P>(5) The manufacture under the regulation of the military department of the United States of explosive materials for, or their distribution to or storage or possession by, the military or naval services or other agencies of the United States.
</P>
<P>(6) Arsenals, navy yards, depots, or other establishments owned by, or operated by or on behalf of, the United States.
</P>
<P>(7) The importation, distribution, and storage of fireworks classified as UN0336, UN0337, UN0431, or UN0432 explosives by the U.S. Department of Transportation at 49 CFR 172.101 and generally known as “consumer fireworks” or “articles pyrotechnic.”
</P>
<P>(8) Gasoline, fertilizers, propellant actuated devices, or propellant actuated industrial tools manufactured, imported, or distributed for their intended purposes.
</P>
<P>(9) Industrial and laboratory chemicals which are intended for use as reagents and which are packaged and shipped pursuant to U.S. Department of Transportation regulations, 49 CFR Parts 100 to 177, which do not require explosives hazard warning labels.
</P>
<P>(10) Model rocket motors that meet all of the following criteria—
</P>
<P>(i) Consist of ammonium perchlorate composite propellant, black powder, or other similar low explosives;
</P>
<P>(ii) Contain no more than 62.5 grams of total propellant weight; and
</P>
<P>(iii) Are designed as single-use motors or as reload kits capable of reloading no more than 62.5 grams of propellant into a reusable motor casing.
</P>
<P>(b) <I>Black powder.</I> Except for the provisions applicable to persons required to be licensed under subpart D, this part does not apply with respect to commercially manufactured black powder in quantities not to exceed 50 pounds, percussion caps, safety and pyrotechnic fuses, quills, quick and slow matches, and friction primers, if the black powder is intended to be used solely for sporting, recreational, or cultural purposes in antique firearms, as defined in 18 U.S.C. 921(a)(16) or antique devices, as exempted from the term “destructive devices” in 18 U.S.C. 921(a)(4).
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-87, 46 FR 46916, Sept. 23, 1981; T.D. ATF-293, 55 FR 3722, Feb. 5, 1990; T.D. ATF-387, 62 FR 8377, Feb. 25, 1997; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998; ATF No. 1, 68 FR 13792, Mar. 20, 2003; ATF 6F, 71 FR 46101, Aug. 11, 2006; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014]


</CITA>
</DIV8>


<DIV8 N="§ 555.142" NODE="27:3.0.1.3.5.8.31.2" TYPE="SECTION">
<HEAD>§ 555.142   Relief from disabilities.</HEAD>
<P>(a) Any person prohibited from shipping or transporting any explosive in or affecting interstate or foreign commerce or from receiving or possessing any explosive which has been shipped or transported in or affecting interstate or foreign commerce may make application for relief from disabilities under section 845(b) of the Act .
</P>
<P>(b) An application for relief from disabilities must be filed with the Director by submitting ATF Form 5400.29, Application for Restoration of Explosives Privileges, in accordance with the instructions on the form. The application must be supported by appropriate data, including the information specified in paragraph (f) of this section. Upon receipt of an incomplete or improperly executed application for relief, the applicant will be notified of the deficiency in the application. If the application is not corrected and returned within 30 days following the date of notification, the application will be considered abandoned.
</P>
<P>(c)(1) The Director may grant relief to an applicant if it is established to the satisfaction of the Director that the circumstances regarding the disability and the applicant's record and reputation are such that the applicant will not be likely to act in a manner dangerous to public safety and that the granting of such relief is not contrary to the public interest.
</P>
<P>(2) Except as provided in paragraph (c)(3) of this section, the Director will not grant relief if the applicant—
</P>
<P>(i) Has not been discharged from parole or probation for a period of at least 2 years;
</P>
<P>(ii) Is a fugitive from justice;
</P>
<P>(iii) Is a prohibited alien;
</P>
<P>(iv) Is an unlawful user of or addicted to any controlled substance;
</P>
<P>(v) Has been adjudicated a mental defective or committed to a mental institution, unless the applicant was subsequently determined by a court, board, commission, or other lawful authority to have been restored to mental competency, to be no longer suffering from a mental disorder, and to have had all rights restored; or
</P>
<P>(vi) Is prohibited by the law of the State where the applicant resides from receiving or possessing explosive materials.
</P>
<P>(3)(i) The Director may grant relief to aliens who have been lawfully admitted to the United States or to persons who have not been discharged from parole or probation for a period of at least 2 years if he determines that the applicant has a compelling need to possess explosives, such as for purposes of employment.
</P>
<P>(ii) The Director may grant relief to the persons identified in paragraph (c)(2) of this section in extraordinary circumstances where the granting of such relief is consistent with the public interest.
</P>
<P>(d) A person who has been granted relief under this section is relieved of all disabilities imposed by the Act for the disabilities disclosed in the application. The granting of relief will not affect any disabilities incurred subsequent to the date the application was filed. Relief from disabilities granted to aliens will be effective only so long as the alien retains his or her lawful immigration status.
</P>
<P>(e)(1) A licensee or permittee who is under indictment or information for, or convicted of, a crime punishable by imprisonment for a term exceeding one year during the term of a current license or permit, or while he has pending a license or permit renewal application, shall not be barred from licensed or permit operations for 30 days after the date of indictment or information or 30 days after the date upon which his conviction becomes final. Also, if he files his application for relief under this section within such 30 day period, he may further continue licensed or permit operations while his application is pending. A licensee or permittee who does not file an application within 30 days from the date of his indictment or information, or within 30 days from the date his conviction becomes final, shall not continue licensed or permit operations beyond 30 days from the date of his indictment or information or beyond 30 days from the date his conviction becomes final.
</P>
<P>(2) In the event the term of a license or permit of a person expires during the 30 day period following the date of indictment of information of during the 30 day period after the date upon which his conviction becomes final or while his application for relief is pending, he shall file a timely application for renewal of his license or permit in order to continue licensed or permit operations. The license or permit application is to show that the applicant has been indicted or under information for, or convicted of, a crime punishable by imprisonment for a term exceeding one year.
</P>
<P>(3) A licensee or permittee shall not continue licensed or permit operations beyond 30 days following the date the Director issues notification that the licensee's or permittee's application for removal of the disabilities resulting from an indictment, information or conviction has been denied.
</P>
<P>(4) When a licensee or permittee may no longer continue licensed or permit operations under this section, any application for renewal of license of permit filed by the licensee or permittee while his application for removal of disabilities resulting from an indictment, information or conviction is pending, will be denied by the Director, Industry Operations.
</P>
<P>(f)(1) Applications for relief from disabilities must include the following information:
</P>
<P>(i) In the case of a corporation, or of any person having the power to direct or control the management of the corporation, information as to the absence of culpability in the offense for which the corporation, or any such person, was indicted, formally accused or convicted;
</P>
<P>(ii) In the case of an applicant who is an individual, two properly completed FBI Forms FD-258 (fingerprint card), and a written statement from each of three references who are not related to the applicant by blood or marriage and have known the applicant for at least 3 years, recommending the granting of relief;
</P>
<P>(iii) Written consent to examine and obtain copies of records and to receive statements and information regarding the applicant's background, including records, statements and other information concerning employment, medical history, military service, immigration status, and criminal record;
</P>
<P>(iv) In the case of an applicant having been convicted of a crime punishable by imprisonment for a term exceeding one year, a copy of the indictment or information on which the applicant was convicted, the judgment of conviction or record of any plea of <I>nolo contendere</I> or plea of guilty or finding of guilt by the court;
</P>
<P>(v) In the case of an applicant under indictment, a copy of the indictment or information;
</P>
<P>(vi) In the case of an applicant who has been adjudicated a mental defective or committed to a mental institution, a copy of the order of a court, board, commission, or other lawful authority that made the adjudication or ordered the commitment, any petition that sought to have the applicant so adjudicated or committed, any medical records reflecting the reasons for commitment and diagnoses of the applicant, and any court order or finding of a court, board, commission, or other lawful authority showing the applicant's discharge from commitment, restoration of mental competency and the restoration of rights;
</P>
<P>(vii) In the case of an applicant who has been discharged from the Armed Forces under dishonorable conditions, a copy of the applicant's Certificate of Release or Discharge from Active Duty (Department of Defense Form 214), Charge Sheet (Department of Defense Form 458), and final court martial order;
</P>
<P>(viii) In the case of an applicant who, having been a citizen of the United States, has renounced his or her citizenship, a copy of the formal renunciation of nationality before a diplomatic or consular officer of the United States in a foreign state or before an officer designated by the Attorney General when the United States was in a state of war (<I>see</I> 8 U.S.C. 1481(a)(5) and (6)); and
</P>
<P>(ix) In the case of an applicant who is an alien, documentation that the applicant is an alien who has been lawfully admitted to the United States; certification from the applicant including the applicant's INS-issued alien number or admission number, country/countries of citizenship, and immigration status, and certifying that the applicant is legally authorized to work in the United States, or other purposes for which possession of explosives is required; certification from an appropriate law enforcement agency of the applicant's country of citizenship stating that the applicant does not have a criminal record; and, if applicable, certification from a Federal explosives licensee or permittee or other employer stating that the applicant is employed by the employer and must possess explosive materials for purposes of employment. These certifications must be submitted in English.
</P>
<P>(2) Any record or document of a court or other government entity or official required by paragraph (f)(1) of this section must be certified by the court or other government entity or official as a true copy.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-0076)
</APPRO>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981. Redesignated by T.D. ATF-487, 68 FR 3748, Jan. 24, 2003, as amended by ATF No. 1, 68 FR 13792, Mar. 20, 2003; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014; ATF 2017R-21, 84 FR 13800, Apr. 8, 2019]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="I" NODE="27:3.0.1.3.5.9" TYPE="SUBPART">
<HEAD>Subpart I—Unlawful Acts, Penalties, Seizures and Forfeitures</HEAD>


<DIV8 N="§ 555.161" NODE="27:3.0.1.3.5.9.31.1" TYPE="SECTION">
<HEAD>§ 555.161   Engaging in business without a license.</HEAD>
<P>Any person engaging in the business of importing, manufacturing, or dealing in explosive materials without a license issued under the Act, shall be fined not more than $10,000 or imprisoned not more than 10 years, or both.


</P>
</DIV8>


<DIV8 N="§ 555.162" NODE="27:3.0.1.3.5.9.31.2" TYPE="SECTION">
<HEAD>§ 555.162   False statement or representation.</HEAD>
<P>Any person who knowingly withholds information or makes any false or fictitious oral or written statement or furnishes or exhibits any false, fictitious, or misrepresented identification, intended or likely to deceive for the purpose of obtaining explosive materials, or a license, permit, exemption, or relief from disability under the Act, shall be fined not more than $10,000 or imprisoned not more than 10 years, or both.


</P>
</DIV8>


<DIV8 N="§ 555.163" NODE="27:3.0.1.3.5.9.31.3" TYPE="SECTION">
<HEAD>§ 555.163   False entry in record.</HEAD>
<P>Any licensed importer, licensed manufacturer, licensed dealer, or permittee who knowingly makes any false entry in any record required to be kept under subpart G of this part, shall be fined not more than $10,000 or imprisoned not more than 10 years, or both.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 FR 45003, Aug. 24, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 555.164" NODE="27:3.0.1.3.5.9.31.4" TYPE="SECTION">
<HEAD>§ 555.164   Unlawful storage.</HEAD>
<P>Any person who stores any explosive material in a manner not in conformity with this part, shall be fined not more than $1,000 or imprisoned not more than one year, or both.


</P>
</DIV8>


<DIV8 N="§ 555.165" NODE="27:3.0.1.3.5.9.31.5" TYPE="SECTION">
<HEAD>§ 555.165   Failure to report theft or loss.</HEAD>
<P>(a) Any person who has knowledge of the theft or loss of any explosive materials from his stock and fails to report the theft or loss within 24 hours of discovery in accordance with § 555.30, shall be fined not more than $1,000 or imprisoned not more than one year, or both.
</P>
<P>(b) Any licensee or permittee who fails to report a theft of explosive materials in accordance with § 555.30 will be fined under title 18 U.S.C., imprisoned not more than 5 years, or both.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF No. 1, 68 FR 13793, Mar. 20, 2003; ATF 2017R-21, 84 FR 13800, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.166" NODE="27:3.0.1.3.5.9.31.6" TYPE="SECTION">
<HEAD>§ 555.166   Seizure or forfeiture.</HEAD>
<P>Any explosive materials involved or used or intended to be used in any violation of the Act or of this part or in any violation of any criminal law of the United States are subject to seizure and forfeiture, and all provisions of title 26, U.S.C. relating to the seizure, forfeiture, and disposition of firearms, as defined in 26 U.S.C. 5845(a), will, so far as applicable, extend to seizures and forfeitures under the Act. (See § 72.27 of this title for regulations on summary destruction of explosive materials which are impracticable or unsafe to remove to a place of storage.)
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-363, 60 FR 17449, Apr. 6, 1995]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:3.0.1.3.5.10" TYPE="SUBPART">
<HEAD>Subpart J—Marking of Plastic Explosives</HEAD>


<DIV8 N="§ 555.180" NODE="27:3.0.1.3.5.10.31.1" TYPE="SECTION">
<HEAD>§ 555.180   Prohibitions relating to unmarked plastic explosives.</HEAD>
<P>(a) No person shall manufacture any plastic explosive that does not contain a detection agent.
</P>
<P>(b) No person shall import or bring into the United States, or export from the United States, any plastic explosive that does not contain a detection agent. This paragraph does not apply to the importation or bringing into the United States, or the exportation from the United States, of any plastic explosive that was imported or brought into, or manufactured in the United States prior to April 24, 1996, by or on behalf of any agency of the United States performing military or police functions (including any military reserve component) or by or on behalf of the National Guard of any State, not later than 15 years after the date of entry into force of the Convention on the Marking of Plastic Explosives with respect to the United States, <I>i.e.,</I> not later than June 21, 2013.
</P>
<P>(c) No person shall ship, transport, transfer, receive, or possess any plastic explosive that does not contain a detection agent. This paragraph does not apply to:
</P>
<P>(1) The shipment, transportation, transfer, receipt, or possession of any plastic explosive that was imported or brought into, or manufactured in the United States prior to April 24, 1996, by any person during the period beginning on that date and ending on April 24, 1999; or
</P>
<P>(2) The shipment, transportation, transfer, receipt, or possession of any plastic explosive that was imported or brought into, or manufactured in the United States prior to April 24, 1996, by or on behalf of any agency of the United States performing a military or police function (including any military reserve component) or by or on behalf of the National Guard of any State, not later than 15 years after the date of entry into force of the Convention on the Marking of Plastic Explosives with respect to the United States, <I>i.e.,</I> not later than June 21, 2013.
</P>
<P>(d) When used in this subpart, terms are defined as follows:
</P>
<P>(1) <I>Convention on the Marking of Plastic Explosives</I> means the Convention on the Marking of Plastic Explosives for the Purposes of Detection, Done at Montreal on 1 March 1991.
</P>
<P>(2) “Date of entry into force” of the Convention on the Marking of Plastic Explosives means that date on which the Convention enters into force with respect to the U.S. in accordance with the provisions of Article XIII of the Convention on the Marking of Plastic Explosives. The Convention entered into force on June 21, 1998.
</P>
<P>(3) <I>Detection agent</I> means any one of the substances specified in this paragraph when introduced into a plastic explosive or formulated in such explosive as a part of the manufacturing process in such a manner as to achieve homogeneous distribution in the finished explosive, including—
</P>
<P>(i) Ethylene glycol dinitrate (EGDN), C<E T="52">2</E>H<E T="52">4</E>(NO<E T="52">3</E>)<E T="52">2</E>, molecular weight 152, when the minimum concentration in the finished explosive is 0.2 percent by mass;
</P>
<P>(ii) 2,3-Dimethyl-2,3-dinitrobutane (DMNB), C<E T="52">6</E>H<E T="52">12</E>(NO<E T="52">2</E>)<E T="52">2</E>, molecular weight 176, when the minimum concentration in the finished explosive is 0.1 percent by mass;
</P>
<P>(iii) Para-Mononitrotoluene (p-MNT), C<E T="52">7</E>H<E T="52">7</E>NO<E T="52">2</E>, molecular weight 137, when the minimum concentration in the finished explosive is 0.5 percent by mass;
</P>
<P>(iv) Ortho-Mononitrotoluene (o-MNT), C<E T="52">7</E>H<E T="52">7</E>NO<E T="52">2</E>, molecular weight 137, when the minimum concentration in the finished explosive is 0.5 percent by mass; and
</P>
<P>(v) Any other substance in the concentration specified by the Director, after consultation with the Secretary of State and Secretary of Defense, that has been added to the table in Part 2 of the Technical Annex to the Convention on the Marking of Plastic Explosives.
</P>
<P>(4) <I>Plastic explosive</I> means an explosive material in flexible or elastic sheet form formulated with one or more high explosives which in their pure form has a vapor pressure less than 10<E T="51">−4</E> Pa at a temperature of 25 °C, is formulated with a binder material, and is as a mixture malleable or flexible at normal room temperature. <I>High explosives,</I> as defined in § 555.202(a), are explosive materials which can be caused to detonate by means of a blasting cap when unconfined.
</P>
<CITA TYPE="N">[T.D. ATF-387, 62 FR 8376, Feb. 25, 1997, as amended by T.D. ATF-419, 64 FR 55628, Oct. 14, 1999]


</CITA>
</DIV8>


<DIV8 N="§ 555.181" NODE="27:3.0.1.3.5.10.31.2" TYPE="SECTION">
<HEAD>§ 555.181   Reporting of plastic explosives.</HEAD>
<P>All persons, other than an agency of the United States (including any military reserve component) or the National Guard of any State, possessing any plastic explosive on April 24, 1996, shall submit a report to the Director no later than August 22, 1996. The report shall be in writing and mailed by certified mail (return receipt requested) to the Director at P.O. Box 50204, Washington, DC 20091-0204. The report shall include the quantity of plastic explosives possessed on April 24, 1996; any marks of identification on such explosives; the name and address of the manufacturer or importer; the storage location of such explosives, including the city and State; and the name and address of the person possessing the plastic explosives.
</P>
<CITA TYPE="N">[T.D. ATF-382, 61 FR 38085, July 23, 1996, as amended by T.D. ATF-387, 62 FR 8377, Feb. 25, 1997; ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 555.182" NODE="27:3.0.1.3.5.10.31.3" TYPE="SECTION">
<HEAD>§ 555.182   Exceptions.</HEAD>
<P>It is an affirmative defense against any proceeding involving §§ 555.180 and 555.181 if the proponent proves by a preponderance of the evidence that the plastic explosive—
</P>
<P>(a) Consisted of a small amount of plastic explosive intended for and utilized solely in lawful—
</P>
<P>(1) Research, development, or testing of new or modified explosive materials;
</P>
<P>(2) Training in explosives detection or development or testing of explosives detection equipment; or
</P>
<P>(3) Forensic science purposes; or
</P>
<P>(b) Was plastic explosive that, by April 24, 1999, will be or is incorporated in a military device within the territory of the United States and remains an integral part of such military device, or is intended to be, or is incorporated in, and remains an integral part of a military device that is intended to become, or has become, the property of any agency of the United States performing military or police functions (including any military reserve component) or the National Guard of any State, wherever such device is located. For purposes of this paragraph, the term “military device” includes, but is not restricted to, shells, bombs, projectiles, mines, missiles, rockets, shaped charges, grenades, perforators, and similar devices lawfully manufactured exclusively for military or police purposes.
</P>
<CITA TYPE="N">[T.D. ATF-387, 62 FR 8377, Feb. 25, 1997]


</CITA>
</DIV8>


<DIV8 N="§ 555.183" NODE="27:3.0.1.3.5.10.31.4" TYPE="SECTION">
<HEAD>§ 555.183   Importing plastic explosives.</HEAD>
<P>Persons filing a Form 6 application to import plastic explosives must attach to the application the following written statement executed under the penalties of perjury:
</P>
<P>(a) “I declare under the penalties of perjury that the plastic explosive to be imported contains a detection agent as required by 27 CFR 555.180(b)”; or
</P>
<P>(b) “I declare under the penalties of perjury that the plastic explosive to be imported is a “small amount” to be used for research, training, or testing purposes and is exempt from the detection agent requirement pursuant to 27 CFR 555.182.”
</P>
<CITA TYPE="N">[T.D. ATF-387, 62 FR 8377, Feb. 25, 1997, as amended by ATF 2025R-38F, 91 FR 24366, May 6, 2026]


</CITA>
</DIV8>


<DIV8 N="§ 555.184" NODE="27:3.0.1.3.5.10.31.5" TYPE="SECTION">
<HEAD>§ 555.184   Statements of process and samples.</HEAD>
<P>(a) A complete and accurate statement of process with regard to any plastic explosive or to any detection agent that is to be introduced into a plastic explosive or formulated in such plastic explosive shall be submitted by a licensed manufacturer or licensed importer, upon request, to the Director.
</P>
<P>(b) Samples of any plastic explosive or detection agent shall be submitted by a licensed manufacturer or licensed importer, upon request, to the Director.
</P>
<APPRO TYPE="N">(Paragraph (a) approved by the Office of Management and Budget under control number 1140-0042)
</APPRO>
<CITA TYPE="N">[T.D. ATF-387, 62 FR 8378, Feb. 25, 1997, as amended by ATF-11F, 73 FR 57242, Oct. 2, 2008]


</CITA>
</DIV8>


<DIV8 N="§ 555.185" NODE="27:3.0.1.3.5.10.31.6" TYPE="SECTION">
<HEAD>§ 555.185   Criminal sanctions.</HEAD>
<P>Any person who violates the provisions of 18 U.S.C. 842(l)-(o) shall be fined under title 18, U.S.C., imprisoned for not more than 10 years, or both.
</P>
<CITA TYPE="N">[T.D. ATF-387, 62 FR 8378, Feb. 25, 1997]


</CITA>
</DIV8>


<DIV8 N="§ 555.186" NODE="27:3.0.1.3.5.10.31.7" TYPE="SECTION">
<HEAD>§ 555.186   Seizure or forfeiture.</HEAD>
<P>Any plastic explosive that does not contain a detection agent in violation of 18 U.S.C. 842(l)-(n) is subject to seizure and forfeiture, and all provisions of 19 U.S.C. 1595a, relating to seizure, forfeiture, and disposition of merchandise introduced or attempted to be introduced into the U.S. contrary to law, shall extend to seizures and forfeitures under this subpart. See § 72.27 of this chapter for regulations on summary destruction of plastic explosives that do not contain a detection agent.
</P>
<CITA TYPE="N">[T.D. ATF-387, 62 FR 8378, Feb. 25, 1997]


</CITA>
</DIV8>

</DIV6>


<DIV6 N="K" NODE="27:3.0.1.3.5.11" TYPE="SUBPART">
<HEAD>Subpart K—Storage</HEAD>


<DIV8 N="§ 555.201" NODE="27:3.0.1.3.5.11.31.1" TYPE="SECTION">
<HEAD>§ 555.201   General.</HEAD>
<P>(a) Section 842(j) of the Act and § 555.29 of this part require that the storage of explosive materials by any person must be in accordance with the regulations in this part. Further, section 846 of this Act authorizes regulations to prevent the recurrence of accidental explosions in which explosive materials were involved. The storage standards prescribed by this subpart confer no right or privileges to store explosive materials in a manner contrary to State or local law.
</P>
<P>(b) The Director may authorize alternate construction for explosives storage magazines when it is shown that the alternate magazine construction is substantially equivalent to the standards of safety and security contained in this subpart. Any alternate explosive magazine construction approved by the Director prior to August 9, 1982, will continue as approved unless notified in writing by the Director. Any person intending to use alternate magazine construction shall submit a letter application to the Director, Industry Operations for transmittal to the Director, specifically describing the proposed magazine. Explosive materials may not be stored in alternate magazines before the applicant has been notified that the application has been approved.
</P>
<P>(c) A licensee or permittee who intends to make changes in his magazines, or who intends to construct or acquire additional magazines, shall comply with § 555.63.
</P>
<P>(d) The regulations set forth in §§ 555.221 through 555.224 pertain to the storage of display fireworks, pyrotechnic compositions, and explosive materials used in assembling fireworks and articles pyrotechnic.
</P>
<P>(e) [Reserved]
</P>
<P>(f) Any person who stores explosive materials shall notify the authority having jurisdiction for fire safety in the locality in which the explosive materials are being stored of the type, magazine capacity, and location of each site where such explosive materials are stored. Such notification shall be made orally before the end of the day on which storage of the explosive materials commenced and in writing within 48 hours from the time such storage commenced.
</P>
<APPRO TYPE="N">(Paragraph (f) approved by the Office of Management and Budget under control number 1140-0071)
</APPRO>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 FR 3722, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998; ATF-11F, 73 FR 57242, Oct. 2, 2008; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014; ATF 2017R-21, 84 FR 13800, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.202" NODE="27:3.0.1.3.5.11.31.2" TYPE="SECTION">
<HEAD>§ 555.202   Classes of explosive materials.</HEAD>
<P>For purposes of this part, there are three classes of explosive materials. These classes, together with the description of explosive materials comprising each class, are as follows:
</P>
<P>(a) <I>High explosives.</I> Explosive materials which can be caused to detonate by means of a blasting cap when unconfined, (for example, dynamite, flash powders, and bulk salutes).
</P>
<P>(b) <I>Low explosives.</I> Explosive materials which can be caused to deflagrate when confined (for example, black powder, safety fuses, igniters, igniter cords, fuse lighters, and “display fireworks” classified as UN0333, UN0334, or UN0335 by the U.S. Department of Transportation regulations at 49 CFR 172.101, except for bulk salutes).
</P>
<P>(c) <I>Blasting agents.</I> (For example, ammonium nitrate-fuel oil and certain water-gels (see also § 555.11).
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 FR 3722, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998; ATF 2017R-21, 84 FR 13800, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.203" NODE="27:3.0.1.3.5.11.31.3" TYPE="SECTION">
<HEAD>§ 555.203   Types of magazines.</HEAD>
<P>For purposes of this part, there are five types of magazines. These types, together with the classes of explosive materials, as defined in § 555.202, which will be stored in them, are as follows:
</P>
<P>(a) <I>Type 1 magazines.</I> Permanent magazines for the storage of high explosives, subject to the limitations prescribed by §§ 555.206 and 555.213. Other classes of explosive materials may also be stored in type 1 magazines.
</P>
<P>(b) <I>Type 2 magazines.</I> Mobile and portable indoor and outdoor magazines for the storage of high explosives, subject to the limitations prescribed by §§ 555.206, 555.208(b), and 555.213. Other classes of explosive materials may also be stored in type 2 magazines.
</P>
<P>(c) <I>Type 3 magazines.</I> Portable outdoor magazines for the temporary storage of high explosives while attended (for example, a “day-box”), subject to the limitations prescribed by §§ 555.206 and 555.213. Other classes of explosives materials may also be stored in type 3 magazines.
</P>
<P>(d) <I>Type 4 magazines.</I> Magazines for the storage of low explosives, subject to the limitations prescribed by §§ 555.206(b), 555.210(b), and 555.213. Blasting agents may be stored in type 4 magazines, subject to the limitations prescribed by §§ 555.206(c), 555.211(b), and 555.213. Detonators that will not mass detonate may also be stored in type 4 magazines, subject to the limitations prescribed by §§ 555.206(a), 555.210(b), and 555.213.
</P>
<P>(e) <I>Type 5 magazines.</I> Magazines for the storage of blasting agents, subject to the limitations prescribed by §§ 555.206(c), 555.211(b), and 555.213.


</P>
</DIV8>


<DIV8 N="§ 555.204" NODE="27:3.0.1.3.5.11.31.4" TYPE="SECTION">
<HEAD>§ 555.204   Inspection of magazines.</HEAD>
<P>Any person storing explosive materials shall inspect his magazines at least every seven days. This inspection need not be an inventory, but must be sufficient to determine whether there has been unauthorized entry or attempted entry into the magazines, or unauthorized removal of the contents of the magazines.


</P>
</DIV8>


<DIV8 N="§ 555.205" NODE="27:3.0.1.3.5.11.31.5" TYPE="SECTION">
<HEAD>§ 555.205   Movement of explosive materials.</HEAD>
<P>All explosive materials must be kept in locked magazines meeting the standards in this subpart unless they are:
</P>
<P>(a) In the process of manufacture;
</P>
<P>(b) Being physically handled in the operating process of a licensee or user;
</P>
<P>(c) Being used; or
</P>
<P>(d) Being transported to a place of storage or use by a licensee or permittee or by a person who has lawfully acquired explosive materials under § 555.106.


</P>
</DIV8>


<DIV8 N="§ 555.206" NODE="27:3.0.1.3.5.11.31.6" TYPE="SECTION">
<HEAD>§ 555.206   Location of magazines.</HEAD>
<P>(a) Outdoor magazines in which high explosives are stored must be located no closer to inhabited buildings, passenger railways, public highways, or other magazines in which high explosives are stored, than the minimum distances specified in the table of distances for storage of explosive materials in § 555.218.
</P>
<P>(b) Outdoor magazines in which low explosives are stored must be located no closer to inhibited buildings, passenger railways, public highways, or other magazines in which explosive materials are stored, than the minimum distances specified in the table of distances for storage of low explosives in § 555.219, except that the table of distances in § 555.224 shall apply to the storage of display fireworks. The distances shown in § 555.219 may not be reduced by the presence of barricades.
</P>
<P>(c)(1) Outdoor magazines in which blasting agents in quantities of more than 50 pounds are stored must be located no closer to inhabited buildings, passenger railways, or public highways than the minimum distances specified in the table of distances for storage of explosive materials in § 555.218.
</P>
<P>(2) Ammonium nitrate and magazines in which blasting agents are stored must be located no closer to magazines in which high explosives or other blasting agents are stored than the minimum distances specified in the table of distances for the separation of ammonium nitrate and blasting agents in § 555.220. However, the minimum distances for magazines in which explosives and blasting agents are stored from inhabited buildings, etc., may not be less than the distances specified in the table of distances for storage of explosives materials in § 555.218.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-293, 55 FR 3722, Feb. 5, 1990; T.D. ATF-400, 63 FR 45003, Aug. 24, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 555.207" NODE="27:3.0.1.3.5.11.31.7" TYPE="SECTION">
<HEAD>§ 555.207   Construction of type 1 magazines.</HEAD>
<P>A type 1 magazine is a permanent structure: a building, an igloo or “Army-type structure”, a tunnel, or a dugout. It is to be bullet-resistant, fire-resistant, weather-resistant, theft-resistant, and ventilated.
</P>
<P>(a) <I>Buildings.</I> All building type magazines are to be constructed of masonry, wood, metal, or a combination of these materials, and have no openings except for entrances and ventilation. The ground around building magazines must slope away for drainage or other adequate drainage provided.
</P>
<P>(1) <I>Masonry wall construction.</I> Masonry wall construction is to consist of brick, concrete, tile, cement block, or cinder block and be not less than 6 inches in thickness. Hollow masonry units used in construction must have all hollow spaces filled with well-tamped, coarse, dry sand or weak concrete (at least a mixture of one part cement and eight parts of sand with enough water to dampen the mixture while tamping in place). Interior walls are to be constructed of, or covered with, a nonsparking material.
</P>
<P>(2) <I>Fabricated metal wall construction.</I> Metal wall construction is to consist of sectional sheets of steel or aluminum not less than number 14-gauge, securely fastened to a metal framework. Metal wall construction is either lined inside with brick, solid cement blocks, hardwood not less than four inches thick, or will have at least a six inch sand fill between interior and exterior walls. Interior walls are to be constructed of, or covered with, a nonsparking material.
</P>
<P>(3) <I>Wood frame wall construction.</I> The exterior of outer wood walls is to be covered with iron or aluminum not less than number 26-gauge. An inner wall of, or covered with nonsparking material will be constructed so as to provide a space of not less than six inches between the outer and inner walls. The space is to be filled with coarse, dry sand or weak concrete.
</P>
<P>(4) <I>Floors.</I> Floors are to be constructed of, or covered with, a nonsparking material and shall be strong enough to bear the weight of the maximum quantity to be stored. Use of pallets covered with a nonsparking material is considered equivalent to a floor constructed of or covered with a nonsparking material.
</P>
<P>(5) <I>Foundations.</I> Foundations are to be constructed of brick, concrete, cement block, stone, or wood posts. If piers or posts are used, in lieu of a continuous foundation, the space under the buildings is to be enclosed with metal.
</P>
<P>(6) <I>Roof.</I> Except for buildings with fabricated metal roofs, the outer roof is to be covered with no less than number 26-guage iron or aluminum, fastened to at least 
<FR>7/8</FR> inch sheathing.
</P>
<P>(7) <I>Bullet-resistant ceilings or roofs.</I> Where it is possible for a bullet to be fired directly through the roof and into the magazine at such an angle that the bullet would strike the explosives within, the magazine is to be protected by one of the following methods:
</P>
<P>(i) A sand tray lined with a layer of building paper, plastic, or other nonporous material, and filled with not less than four inches of coarse, dry sand, and located at the tops of inner walls covering the entire ceiling area, except that portion necessary for ventilation.
</P>
<P>(ii) A fabricated metal roof constructed of 
<FR>3/16</FR>-inch plate steel lined with four inches of hardwood. (For each additional 
<FR>1/16</FR> inch of plate steel, the hardwood lining may be decreased one inch.)
</P>
<P>(8) <I>Doors.</I> All doors are to be constructed of not less than 
<FR>1/4</FR> inch plate steel and lined with at least two inches of hardwood. Hinges and hasps are to be attached to the doors by welding, riveting or bolting (nuts on inside of door). They are to be installed in such a manner that the hinges and hasps cannot be removed when the doors are closed and locked.
</P>
<P>(9) <I>Locks.</I> Each door is to be equipped with (i) two mortise locks; (ii) two padlock fastened in separate hasps and staples; (iii) a combination of a mortise lock and a padlock; (iv) a mortise lock that requires two keys to open; or (v) a three-point lock. Padlocks must have at least five tumblers and a casehardened shackle of at least 
<FR>3/8</FR> inch diameter. Padlocks must be protected with not less than 
<FR>1/4</FR> inch steel hoods constructed so as to prevent sawing or lever action on the locks, hasps, and staples. These requirements do not apply to magazine doors that are adequately secured on the inside by means of a bolt, lock, or bar that cannot be actuated from the outside.
</P>
<P>(10) <I>Ventilation.</I> Ventilation is to be provided to prevent dampness and heating of stored explosive materials. Ventilation openings must be screened to prevent the entrance of sparks. Ventilation openings in side walls and foundations must be offset or shielded for bullet-resistant purposes. Magazines having foundation and roof ventilators with the air circulating between the side walls and the floors and between the side walls and the ceiling must have a wooden lattice lining or equivalent to prevent the packages of explosive materials from being stacked against the side walls and blocking the air circulation.
</P>
<P>(11) <I>Exposed metal.</I> No sparking material is to be exposed to contact with the stored explosive materials. All ferrous metal nails in the floor and side walls, which might be exposed to contact with explosive materials, must be blind nailed, countersunk, or covered with a nonsparking lattice work or other nonsparking material.
</P>
<P>(b) <I>Igloos, “Army-type structures”, tunnels, and dugouts.</I> Igloo, “Army-type structure”, tunnel, and dugout magazines are to be constructed of reinforced concrete, masonry, metal, or a combination of these materials. They must have an earthmound covering of not less than 24 inches on the top, sides and rear unless the magazine meets the requirements of paragraph (a)(7) of this section. Interior walls and floors must be constructed of, or covered with, a nonsparking material. Magazines of this type are also to be constructed in conformity with the requirements of paragraph (a)(4) and paragraphs (a)(8) through (11) of this section.


</P>
</DIV8>


<DIV8 N="§ 555.208" NODE="27:3.0.1.3.5.11.31.8" TYPE="SECTION">
<HEAD>§ 555.208   Construction of type 2 magazines.</HEAD>
<P>A type 2 magazine is a box, trailer, semitrailer, or other mobile facility.
</P>
<P>(a) <I>Outdoor magazines</I>—(1) <I>General.</I> Outdoor magazines are to be bullet-resistant, fire-resistant, weather-resistant, theft-resistant, and ventilated. They are to be supported to prevent direct contact with the ground and, if less than one cubic yard in size, must be securely fastened to a fixed object. The ground around outdoor magazines must slope away for drainage or other adequate drainage provided. When unattended, vehicular magazines must have wheels removed or otherwise effectively immobilized by kingpin locking devices or other methods approved by the Director.
</P>
<P>(2) <I>Exterior construction.</I> The exterior and doors are to be constructed of not less than 
<FR>1/4</FR>-inch steel and lined with at least two inches of hardwood. Magazines with top openings will have lids with water-resistant seals or which overlap the sides by at least one inch when in a closed position.
</P>
<P>(3) <I>Hinges and hasps.</I> Hinges and hasps are to be attached to doors by welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be installed so that they cannot be removed when the doors are closed and locked.
</P>
<P>(4) <I>Locks.</I> Each door is to be equipped with (i) two mortise locks; (ii) two padlocks fastened in separate hasps and staples; (iii) a combination of a mortise lock and a padlock; (iv) a mortise lock that requires two keys to open; or (v) a three-point lock. Padlocks must have at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR>-inch diameter. Padlocks must be protected with not less than 
<FR>1/4</FR>-inch steel hoods constructed so as to prevent sawing or lever action on the locks, hasps, and staples. These requirements do not apply to magazine doors that are adequately secured on the inside by means of a bolt, lock, or bar that cannot be actuated from the outside.
</P>
<P>(b) <I>Indoor magazines</I>—(1) <I>General.</I> Indoor magazines are to be fire-resistant and theft-resistant. They need not be bullet-resistant and weather-resistant if the buildings in which they are stored provide protection from the weather and from bullet penetration. No indoor magazine is to be located in a residence or dwelling. The indoor storage of high explosives must not exceed a quantity of 50 pounds. More than one indoor magazine may be located in the same building if the total quantity of explosive materials stored does not exceed 50 pounds. Detonators must be stored in a separate magazine (except as provided in § 555.213) and the total quantity of detonators must not exceed 5,000.
</P>
<P>(2) <I>Exterior construction.</I> Indoor magazines are to be constructed of wood or metal according to one of the following specifications:
</P>
<P>(i) Wood indoor magazines are to have sides, bottoms and doors constructed of at least two inches of hardwood and are to be well braced at the corners. They are to be covered with sheet metal of not less than number 26-gauge (.0179 inches). Nails exposed to the interior of magazines must be countersunk.
</P>
<P>(ii) Metal indoor magazines are to have sides, bottoms and doors constructed of not less than number 12-gauge (.1046 inches) metal and be lined inside with a nonsparking material. Edges of metal covers must overlap sides at least one inch.
</P>
<P>(3) <I>Hinges and hasps.</I> Hinges and hasps are to be attached to doors by welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be installed so that they cannot be removed when the doors are closed and locked.
</P>
<P>(4) <I>Locks.</I> Each door is to be equipped with (i) two mortise locks; (ii) two padlocks fastened in separate hasps and staples; (iii) a combination of a mortise lock and a padlock; (iv) a mortise lock that requires two keys to open; or (v) a three-point lock. Padlocks must have at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR>-inch diameter. Padlocks must be protected with not less than 
<FR>1/4</FR>-inch steel hoods constructed so as to prevent sawing or lever action on the locks, hasps, and staples. Indoor magazines located in secure rooms that are locked as provided in this subparagraph may have each door locked with one steel padlock (which need not be protected by a steel hood) having at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR>-inch diameter, if the door hinges and lock hasp are securely fastened to the magazine. These requirements do not apply to magazine doors that are adequately secured on the inside by means of a bolt, lock, or bar that cannot be actuated from the outside.
</P>
<P>(c) <I>Detonator boxes.</I> Magazines for detonators in quantities of 100 or less are to have sides, bottoms and doors constructed of not less than number 12-gauge (.1046 inches) metal and lined with a nonsparking material. Hinges and hasps must be attached so they cannot be removed from the outside. One steel padlock (which need not be protected by a steel hood) having at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR>-inch diameter is sufficient for locking purposes.


</P>
</DIV8>


<DIV8 N="§ 555.209" NODE="27:3.0.1.3.5.11.31.9" TYPE="SECTION">
<HEAD>§ 555.209   Construction of type 3 magazines.</HEAD>
<P>A type 3 magazine is a “day-box” or other portable magazine. It must be fire-resistant, weather-resistant, and theft-resistant. A type 3 magazine is to be constructed of not less than number 12-gauge (.1046 inches) steel, lined with at least either 
<FR>1/2</FR>-inch plywood or 
<FR>1/2</FR>-inch Masonite-type hardboard. Doors must overlap sides by at least one inch. Hinges and hasps are to be attached by welding, riveting or bolting (nuts on inside). One steel padlock (which need not be protected by a steel hood) having at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR>-inch diameter is sufficient for locking purposes. Explosive materials are not to be left unattended in type 3 magazines and must be removed to type 1 or 2 magazines for unattended storage.


</P>
</DIV8>


<DIV8 N="§ 555.210" NODE="27:3.0.1.3.5.11.31.10" TYPE="SECTION">
<HEAD>§ 555.210   Construction of type 4 magazines.</HEAD>
<P>A type 4 magazine is a building, igloo or “Army-type structure”, tunnel, dugout, box, trailer, or a semitrailer or other mobile magazine.
</P>
<P>(a) <I>Outdoor magazines</I>—(1) <I>General.</I> Outdoor magazines are to be fire-resistant, weather-resistant, and theft-resistant. The ground around outdoor magazines must slope away for drainage or other adequate drainage be provided. When unattended, vehicular magazines must have wheels removed or otherwise be effectively immobilized by kingpin locking devices or other methods approved by the Director.
</P>
<P>(2) <I>Construction.</I> Outdoor magazines are to be constructed of masonry, metal-covered wood, fabricated metal, or a combination of these materials. Foundations are to be constructed of brick, concrete, cement block, stone, or metal or wood posts. If piers or posts are used, in lieu of a continuous foundation, the space under the building is to be enclosed with fire-resistant material. The walls and floors are to be constructed of, or covered with, a nonsparking material or lattice work. The doors must be metal or solid wood covered with metal.
</P>
<P>(3) <I>Hinges and hasps.</I> Hinges and hasps are to be attached to doors by welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be installed so that they cannot be removed when the doors are closed and locked.
</P>
<P>(4) <I>Locks.</I> Each door is to be equipped with (i) two mortise locks; (ii) two padlocks fastened in separate hasps and staples; (iii) a combination of a mortise lock and a padlock; (iv) a mortise lock that requires two keys to open; or (v) a three-point lock. Padlocks must have at least five tumblers and case-hardened shackle of at least 
<FR>3/8</FR> inch diameter. Padlocks must be protected with not less than 
<FR>1/4</FR> inch steel hoods constructed so as to prevent sawing or lever action on the locks, hasps, and staples. These requirements do not apply to magazine doors that are adequately secured on the inside by means of a bolt, lock, or bar that cannot be actuated from the outside.
</P>
<P>(b) <I>Indoor magazine</I>—(1) <I>General.</I> Indoor magazines are to be fire-resistant and theft-resistant. They need not be weather-resistant if the buildings in which they are stored provide protection from the weather. No indoor magazine is to be located in a residence or dwelling. The indoor storage of low explosives must not exceed a quantity of 50 pounds. More than one indoor magazine may be located in the same building if the total quantity of explosive materials stored does not exceed 50 pounds. Detonators that will not mass detonate must be stored in a separate magazine and the total number of electric detonators must not exceed 5,000.
</P>
<P>(2) <I>Construction.</I> Indoor magazines are to be constructed of masonry, metal-covered wood, fabricated metal, or a combination of these materials. The walls and floors are to be constructed of, or covered with, a nonsparking material. The doors must be metal or solid wood covered with metal.
</P>
<P>(3) <I>Hinges and hasps.</I> Hinges and hasps are to be attached to doors by welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be installed so that they cannot be removed when the doors are closed and locked.
</P>
<P>(4) <I>Locks.</I> Each door is to be equipped with (i) two mortise locks; (ii) two padlocks fastened in separate hasps and staples; (iii) a combination of a mortise lock and padlock; (iv) a mortise lock that requires two keys to open; or (v) a three-point lock. Padlocks must have at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR> inch diameter. Padlocks must be protected with not less than 
<FR>1/4</FR> inch steel hoods constructed so as to prevent sawing or lever action on the locks, hasps, and staples. Indoor magazines located in secure rooms that are locked as provided in this subparagraph may have each door locked with one steel padlock (which need not be protected by a steel hood) having at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR> inch diameter, if the door hinges and lock hasp are securely fastened to the magazine. These requirements do not apply to magazine doors that are adequately secured on the inside by means of a bolt, lock, or bar that cannot be actuated from the outside.


</P>
</DIV8>


<DIV8 N="§ 555.211" NODE="27:3.0.1.3.5.11.31.11" TYPE="SECTION">
<HEAD>§ 555.211   Construction of type 5 magazines.</HEAD>
<P>A type 5 magazine is a building, igloo or “Army-type structure”, tunnel, dugout, bin, box, trailer, or a semitrailer or other mobile facility.
</P>
<P>(a) <I>Outdoor magazines</I>—(1) <I>General.</I> Outdoor magazines are to be weather-resistant and theft-resistant. The ground around magazines must slope away for drainage or other adequate drainage be provided. When unattended, vehicular magazines must have wheels removed or otherwise be effectively immobilized by kingpin locking devices or other methods approved by the Director.
</P>
<P>(2) <I>Construction.</I> The doors are to be constructed of solid wood or metal.
</P>
<P>(3) <I>Hinges and hasps.</I> Hinges and hasps are to be attached to doors by welding, riveting, or bolting (nuts on inside of door). Hinges and hasps must be installed so that they cannot be removed when the doors are closed and locked.
</P>
<P>(4) <I>Locks.</I> Each door is to be equipped with (i) two mortise locks; (ii) two padlocks fastened in separate hasps and staples; (iii) a combination of a mortise lock and a padlock; (iv) a mortise lock that requires two keys to open; or (v) a three-point lock. Padlocks must have at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR> inch diameter. Padlocks must be protected with not less than 
<FR>1/4</FR> inch steel hoods constructed so as to prevent sawing or lever action on the locks, hasps, and staples. Trailers, semitrailers, and similar vehicular magazines may, for each door, be locked with one steel padlock (which need not be protected by a steel hood) having at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR> inch diameter, if the door hinges and lock hasp are securely fastened to the magazine and to the door frame. These requirements do not apply to magazine doors that are adequately secured on the inside by means of a bolt, lock, or bar that cannot be actuated from the outside.
</P>
<P>(5) <I>Placards.</I> The placards required by Department of Transportation regulations at 49 CFR part 172, subpart F, for the transportation of blasting agents shall be displayed on all magazines.
</P>
<P>(b) <I>Indoor magazines</I>—(1) <I>General.</I> Indoor magazines are to be theft-resistant. They need not be weather-resistant if the buildings in which they are stored provide protection from the weather. No indoor magazine is to be located in a residence or dwelling. Indoor magazines containing quantities of blasting agents in excess of 50 pounds are subject to the requirements of § 555.206 of this subpart.
</P>
<P>(2) <I>Construction.</I> The doors are to be constructed of wood or metal.
</P>
<P>(3) <I>Hinges and hasps.</I> Hinges and hasps are to be attached to doors by welding, riveting, or bolting (nuts on inside). Hinges and hasps must be installed so that they cannot be removed when the doors are closed and locked.
</P>
<P>(4) <I>Locks.</I> Each door is to be equipped with (i) two mortise locks; (ii) two padlocks fastened in separate hasps and staples; (iii) a combination of a mortise lock and a padlock; (iv) a mortise lock that requires two keys to open; or (v) a three-point lock. Padlocks must have at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR> inch diameter. Padlocks must be protected with not less than 
<FR>1/4</FR> inch steel hoods constructed so as to prevent sawing or lever action on the locks, hasps, and staples. Indoor magazines located in secure rooms that are locked as provided in this subparagraph may have each door locked with one steel padlock (which need not be protected by a steel hood) having at least five tumblers and a case-hardened shackle of at least 
<FR>3/8</FR> inch diameter, if the door hinges and lock hasps are securely fastened to the magazine and to the door frame. These requirements do not apply to magazine doors that are adequately secured on the inside by means of a bolt, lock, or bar that cannot be actuated from the outside.
</P>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-298, 55 FR 21863, May 30, 1990]


</CITA>
</DIV8>


<DIV8 N="§ 555.212" NODE="27:3.0.1.3.5.11.31.12" TYPE="SECTION">
<HEAD>§ 555.212   Smoking and open flames.</HEAD>
<P>Smoking, matches, open flames, and spark producing devices are not permitted:
</P>
<P>(a) In any magazine;
</P>
<P>(b) Within 50 feet of any outdoor magazine; or
</P>
<P>(c) Within any room containing an indoor magazine.


</P>
</DIV8>


<DIV8 N="§ 555.213" NODE="27:3.0.1.3.5.11.31.13" TYPE="SECTION">
<HEAD>§ 555.213   Quantity and storage restrictions.</HEAD>
<P>(a) Explosive materials in excess of 300,000 pounds or detonators in excess of 20 million are not to be stored in one magazine unless approved by the Director.
</P>
<P>(b) Detonators are not to be stored in the same magazine with other explosive materials, except under the following circumstances:
</P>
<P>(1) In a type 4 magazine, detonators that will not mass detonate may be stored with electric squibs, safety fuse, shock tube, igniters, and igniter cord.
</P>
<P>(2) In a type 1 or type 2 magazine, detonators may be stored with delay devices and any of the items listed in paragraph (b)(1) of this section.
</P>
<CITA TYPE="N">[T.D. ATF-487, 68 FR 3748, Jan. 24, 2003, as amended by ATF 15F, 75 FR 3163, Jan. 20, 2010]


</CITA>
</DIV8>


<DIV8 N="§ 555.214" NODE="27:3.0.1.3.5.11.31.14" TYPE="SECTION">
<HEAD>§ 555.214   Storage within types 1, 2, 3, and 4 magazines.</HEAD>
<P>(a) Explosive materials within a magazine are not to be placed directly against interior walls and must be stored so as not to interfere with ventilation. To prevent contact of stored explosive materials with walls, a nonsparking lattice work or other nonsparking material may be used.
</P>
<P>(b) Containers of explosive materials are to be stored so that marks are visible. Stocks of explosive materials are to be stored so they can be easily counted and checked upon inspection.
</P>
<P>(c) Except with respect to fiberboard or other nonmetal containers, containers of explosive materials are not to be unpacked or repacked inside a magazine or within 50 feet of a magazine, and must not be unpacked or repacked close to other explosive materials. Containers of explosive materials must be closed while being stored.
</P>
<P>(d) Tools used for opening or closing containers of explosive materials are to be of nonsparking materials, except that metal slitters may be used for opening fiberboard containers. A wood wedge and a fiber, rubber, or wooden mallet are to be used for opening or closing wood containers of explosive materials. Metal tools other than nonsparking transfer conveyors are not to be stored in any magazine containing high explosives.


</P>
</DIV8>


<DIV8 N="§ 555.215" NODE="27:3.0.1.3.5.11.31.15" TYPE="SECTION">
<HEAD>§ 555.215   Housekeeping.</HEAD>
<P>Magazines are to be kept clean, dry, and free of grit, paper, empty packages and containers, and rubbish. Floors are to be regularly swept. Brooms and other utensils used in the cleaning and maintenance of magazines must have no spark-producing metal parts, and may be kept in magazines. Floors stained by leakage from explosive materials are to be cleaned according to instructions of the explosives manufacturer. When any explosive material has deteriorated it is to be destroyed in accordance with the advice or instructions of the manufacturer. The area surrounding magazines is to be kept clear of rubbish, brush, dry grass, or trees (except live trees more than 10 feet tall), for not less than 25 feet in all directions. Volatile materials are to be kept a distance of not less than 50 feet from outdoor magazines. Living foliage which is used to stabilize the earthen covering of a magazine need not be removed.


</P>
</DIV8>


<DIV8 N="§ 555.216" NODE="27:3.0.1.3.5.11.31.16" TYPE="SECTION">
<HEAD>§ 555.216   Repair of magazines.</HEAD>
<P>Before repairing the interior of magazines, all explosive materials are to be removed and the interior cleaned. Before repairing the exterior of magazines, all explosive materials must be removed if there exists any possibility that repairs may produce sparks or flame. Explosive materials removed from magazines under repair must be (a) placed in other magazines appropriate for the storage of those explosive materials under this subpart, or (b) placed a safe distance from the magazines under repair where they are to be properly guarded and protected until the repairs have been completed.


</P>
</DIV8>


<DIV8 N="§ 555.217" NODE="27:3.0.1.3.5.11.31.17" TYPE="SECTION">
<HEAD>§ 555.217   Lighting.</HEAD>
<P>(a) Battery-activated safety lights or battery-activated safety lanterns may be used in explosives storage magazines.
</P>
<P>(b) Electric lighting used in any explosives storage magazine must meet the standards prescribed by the “National Electrical Code,” (National Fire Protection Association, NFPA 70-81), for the conditions present in the magazine at any time. All electrical switches are to be located outside of the magazine and also meet the standards prescribed by the National Electrical Code.
</P>
<P>(c) Copies of invoices, work orders or similar documents which indicate the lighting complies with the National Electrical Code must be available for inspection by ATF officers.



</P>
</DIV8>


<DIV8 N="§ 555.218" NODE="27:3.0.1.3.5.11.31.18" TYPE="SECTION">
<HEAD>§ 555.218   Table of distances for storage of explosive materials.</HEAD>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" colspan="2" scope="col">Quantity of explosives
</TH><TH class="gpotbl_colhed" colspan="8" scope="col">Distances in feet
</TH></TR><TR><TH class="gpotbl_colhed" rowspan="2" scope="col">Pounds over
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Pounds not over
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Inhabited buildings
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Public highways with traffic volume of 3000 or fewer vehicles/day
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Passenger railways—public highways with traffic volume of more than 3,000 vehicles/day
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Separation of magazines
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Barricaded
</TH><TH class="gpotbl_colhed" scope="col">Unbarricaded
</TH><TH class="gpotbl_colhed" scope="col">Barricaded
</TH><TH class="gpotbl_colhed" scope="col">Unbarricaded
</TH><TH class="gpotbl_colhed" scope="col">Barricaded
</TH><TH class="gpotbl_colhed" scope="col">Unbarricaded
</TH><TH class="gpotbl_colhed" scope="col">Barricaded
</TH><TH class="gpotbl_colhed" scope="col">Unbarricaded
</TH></TR><TR><TD align="right" class="gpotbl_cell" scope="row">0</TD><TD align="right" class="gpotbl_cell">5</TD><TD align="right" class="gpotbl_cell">70</TD><TD align="right" class="gpotbl_cell">140</TD><TD align="right" class="gpotbl_cell">30</TD><TD align="right" class="gpotbl_cell">60</TD><TD align="right" class="gpotbl_cell">51</TD><TD align="right" class="gpotbl_cell">102</TD><TD align="right" class="gpotbl_cell">6</TD><TD align="right" class="gpotbl_cell">12
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">5</TD><TD align="right" class="gpotbl_cell">10</TD><TD align="right" class="gpotbl_cell">90</TD><TD align="right" class="gpotbl_cell">180</TD><TD align="right" class="gpotbl_cell">35</TD><TD align="right" class="gpotbl_cell">70</TD><TD align="right" class="gpotbl_cell">64</TD><TD align="right" class="gpotbl_cell">128</TD><TD align="right" class="gpotbl_cell">8</TD><TD align="right" class="gpotbl_cell">16
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">10</TD><TD align="right" class="gpotbl_cell">20</TD><TD align="right" class="gpotbl_cell">110</TD><TD align="right" class="gpotbl_cell">220</TD><TD align="right" class="gpotbl_cell">45</TD><TD align="right" class="gpotbl_cell">90</TD><TD align="right" class="gpotbl_cell">81</TD><TD align="right" class="gpotbl_cell">162</TD><TD align="right" class="gpotbl_cell">10</TD><TD align="right" class="gpotbl_cell">20
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">20</TD><TD align="right" class="gpotbl_cell">30</TD><TD align="right" class="gpotbl_cell">125</TD><TD align="right" class="gpotbl_cell">250</TD><TD align="right" class="gpotbl_cell">50</TD><TD align="right" class="gpotbl_cell">100</TD><TD align="right" class="gpotbl_cell">93</TD><TD align="right" class="gpotbl_cell">186</TD><TD align="right" class="gpotbl_cell">11</TD><TD align="right" class="gpotbl_cell">22
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">30</TD><TD align="right" class="gpotbl_cell">40</TD><TD align="right" class="gpotbl_cell">140</TD><TD align="right" class="gpotbl_cell">280</TD><TD align="right" class="gpotbl_cell">55</TD><TD align="right" class="gpotbl_cell">110</TD><TD align="right" class="gpotbl_cell">103</TD><TD align="right" class="gpotbl_cell">206</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">24
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">40</TD><TD align="right" class="gpotbl_cell">50</TD><TD align="right" class="gpotbl_cell">150</TD><TD align="right" class="gpotbl_cell">300</TD><TD align="right" class="gpotbl_cell">60</TD><TD align="right" class="gpotbl_cell">120</TD><TD align="right" class="gpotbl_cell">110</TD><TD align="right" class="gpotbl_cell">220</TD><TD align="right" class="gpotbl_cell">14</TD><TD align="right" class="gpotbl_cell">28
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">50</TD><TD align="right" class="gpotbl_cell">75</TD><TD align="right" class="gpotbl_cell">170</TD><TD align="right" class="gpotbl_cell">340</TD><TD align="right" class="gpotbl_cell">70</TD><TD align="right" class="gpotbl_cell">140</TD><TD align="right" class="gpotbl_cell">127</TD><TD align="right" class="gpotbl_cell">254</TD><TD align="right" class="gpotbl_cell">15</TD><TD align="right" class="gpotbl_cell">30
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">75</TD><TD align="right" class="gpotbl_cell">100</TD><TD align="right" class="gpotbl_cell">190</TD><TD align="right" class="gpotbl_cell">380</TD><TD align="right" class="gpotbl_cell">75</TD><TD align="right" class="gpotbl_cell">150</TD><TD align="right" class="gpotbl_cell">139</TD><TD align="right" class="gpotbl_cell">278</TD><TD align="right" class="gpotbl_cell">16</TD><TD align="right" class="gpotbl_cell">32
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">100</TD><TD align="right" class="gpotbl_cell">125</TD><TD align="right" class="gpotbl_cell">200</TD><TD align="right" class="gpotbl_cell">400</TD><TD align="right" class="gpotbl_cell">80</TD><TD align="right" class="gpotbl_cell">160</TD><TD align="right" class="gpotbl_cell">150</TD><TD align="right" class="gpotbl_cell">300</TD><TD align="right" class="gpotbl_cell">18</TD><TD align="right" class="gpotbl_cell">36
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">125</TD><TD align="right" class="gpotbl_cell">150</TD><TD align="right" class="gpotbl_cell">215</TD><TD align="right" class="gpotbl_cell">430</TD><TD align="right" class="gpotbl_cell">85</TD><TD align="right" class="gpotbl_cell">170</TD><TD align="right" class="gpotbl_cell">159</TD><TD align="right" class="gpotbl_cell">318</TD><TD align="right" class="gpotbl_cell">19</TD><TD align="right" class="gpotbl_cell">38
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">150</TD><TD align="right" class="gpotbl_cell">200</TD><TD align="right" class="gpotbl_cell">235</TD><TD align="right" class="gpotbl_cell">470</TD><TD align="right" class="gpotbl_cell">95</TD><TD align="right" class="gpotbl_cell">190</TD><TD align="right" class="gpotbl_cell">175</TD><TD align="right" class="gpotbl_cell">350</TD><TD align="right" class="gpotbl_cell">21</TD><TD align="right" class="gpotbl_cell">42
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">200</TD><TD align="right" class="gpotbl_cell">250</TD><TD align="right" class="gpotbl_cell">255</TD><TD align="right" class="gpotbl_cell">510</TD><TD align="right" class="gpotbl_cell">105</TD><TD align="right" class="gpotbl_cell">210</TD><TD align="right" class="gpotbl_cell">189</TD><TD align="right" class="gpotbl_cell">378</TD><TD align="right" class="gpotbl_cell">23</TD><TD align="right" class="gpotbl_cell">46
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">250</TD><TD align="right" class="gpotbl_cell">300</TD><TD align="right" class="gpotbl_cell">270</TD><TD align="right" class="gpotbl_cell">540</TD><TD align="right" class="gpotbl_cell">110</TD><TD align="right" class="gpotbl_cell">220</TD><TD align="right" class="gpotbl_cell">201</TD><TD align="right" class="gpotbl_cell">402</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">48
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">300</TD><TD align="right" class="gpotbl_cell">400</TD><TD align="right" class="gpotbl_cell">295</TD><TD align="right" class="gpotbl_cell">590</TD><TD align="right" class="gpotbl_cell">120</TD><TD align="right" class="gpotbl_cell">240</TD><TD align="right" class="gpotbl_cell">221</TD><TD align="right" class="gpotbl_cell">442</TD><TD align="right" class="gpotbl_cell">27</TD><TD align="right" class="gpotbl_cell">54
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">400</TD><TD align="right" class="gpotbl_cell">500</TD><TD align="right" class="gpotbl_cell">320</TD><TD align="right" class="gpotbl_cell">640</TD><TD align="right" class="gpotbl_cell">130</TD><TD align="right" class="gpotbl_cell">260</TD><TD align="right" class="gpotbl_cell">238</TD><TD align="right" class="gpotbl_cell">476</TD><TD align="right" class="gpotbl_cell">29</TD><TD align="right" class="gpotbl_cell">58
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">500</TD><TD align="right" class="gpotbl_cell">600</TD><TD align="right" class="gpotbl_cell">340</TD><TD align="right" class="gpotbl_cell">680</TD><TD align="right" class="gpotbl_cell">135</TD><TD align="right" class="gpotbl_cell">270</TD><TD align="right" class="gpotbl_cell">253</TD><TD align="right" class="gpotbl_cell">506</TD><TD align="right" class="gpotbl_cell">31</TD><TD align="right" class="gpotbl_cell">62
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">600</TD><TD align="right" class="gpotbl_cell">700</TD><TD align="right" class="gpotbl_cell">355</TD><TD align="right" class="gpotbl_cell">710</TD><TD align="right" class="gpotbl_cell">145</TD><TD align="right" class="gpotbl_cell">290</TD><TD align="right" class="gpotbl_cell">266</TD><TD align="right" class="gpotbl_cell">532</TD><TD align="right" class="gpotbl_cell">32</TD><TD align="right" class="gpotbl_cell">64
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">700</TD><TD align="right" class="gpotbl_cell">800</TD><TD align="right" class="gpotbl_cell">375</TD><TD align="right" class="gpotbl_cell">750</TD><TD align="right" class="gpotbl_cell">150</TD><TD align="right" class="gpotbl_cell">300</TD><TD align="right" class="gpotbl_cell">278</TD><TD align="right" class="gpotbl_cell">556</TD><TD align="right" class="gpotbl_cell">33</TD><TD align="right" class="gpotbl_cell">66
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">800</TD><TD align="right" class="gpotbl_cell">900</TD><TD align="right" class="gpotbl_cell">390</TD><TD align="right" class="gpotbl_cell">780</TD><TD align="right" class="gpotbl_cell">155</TD><TD align="right" class="gpotbl_cell">310</TD><TD align="right" class="gpotbl_cell">289</TD><TD align="right" class="gpotbl_cell">578</TD><TD align="right" class="gpotbl_cell">35</TD><TD align="right" class="gpotbl_cell">70
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">900</TD><TD align="right" class="gpotbl_cell">1,000</TD><TD align="right" class="gpotbl_cell">400</TD><TD align="right" class="gpotbl_cell">800</TD><TD align="right" class="gpotbl_cell">160</TD><TD align="right" class="gpotbl_cell">320</TD><TD align="right" class="gpotbl_cell">300</TD><TD align="right" class="gpotbl_cell">600</TD><TD align="right" class="gpotbl_cell">36</TD><TD align="right" class="gpotbl_cell">72
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">1,000</TD><TD align="right" class="gpotbl_cell">1,200</TD><TD align="right" class="gpotbl_cell">425</TD><TD align="right" class="gpotbl_cell">850</TD><TD align="right" class="gpotbl_cell">165</TD><TD align="right" class="gpotbl_cell">330</TD><TD align="right" class="gpotbl_cell">318</TD><TD align="right" class="gpotbl_cell">636</TD><TD align="right" class="gpotbl_cell">39</TD><TD align="right" class="gpotbl_cell">78
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">1,200</TD><TD align="right" class="gpotbl_cell">1,400</TD><TD align="right" class="gpotbl_cell">450</TD><TD align="right" class="gpotbl_cell">900</TD><TD align="right" class="gpotbl_cell">170</TD><TD align="right" class="gpotbl_cell">340</TD><TD align="right" class="gpotbl_cell">336</TD><TD align="right" class="gpotbl_cell">672</TD><TD align="right" class="gpotbl_cell">41</TD><TD align="right" class="gpotbl_cell">82
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">1,400</TD><TD align="right" class="gpotbl_cell">1,600</TD><TD align="right" class="gpotbl_cell">470</TD><TD align="right" class="gpotbl_cell">940</TD><TD align="right" class="gpotbl_cell">175</TD><TD align="right" class="gpotbl_cell">350</TD><TD align="right" class="gpotbl_cell">351</TD><TD align="right" class="gpotbl_cell">702</TD><TD align="right" class="gpotbl_cell">43</TD><TD align="right" class="gpotbl_cell">86
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">1,600</TD><TD align="right" class="gpotbl_cell">1,800</TD><TD align="right" class="gpotbl_cell">490</TD><TD align="right" class="gpotbl_cell">980</TD><TD align="right" class="gpotbl_cell">180</TD><TD align="right" class="gpotbl_cell">360</TD><TD align="right" class="gpotbl_cell">366</TD><TD align="right" class="gpotbl_cell">732</TD><TD align="right" class="gpotbl_cell">44</TD><TD align="right" class="gpotbl_cell">88
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">1,800</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">505</TD><TD align="right" class="gpotbl_cell">1,010</TD><TD align="right" class="gpotbl_cell">185</TD><TD align="right" class="gpotbl_cell">370</TD><TD align="right" class="gpotbl_cell">378</TD><TD align="right" class="gpotbl_cell">756</TD><TD align="right" class="gpotbl_cell">45</TD><TD align="right" class="gpotbl_cell">90
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">2,000</TD><TD align="right" class="gpotbl_cell">2,500</TD><TD align="right" class="gpotbl_cell">545</TD><TD align="right" class="gpotbl_cell">1,090</TD><TD align="right" class="gpotbl_cell">190</TD><TD align="right" class="gpotbl_cell">380</TD><TD align="right" class="gpotbl_cell">408</TD><TD align="right" class="gpotbl_cell">816</TD><TD align="right" class="gpotbl_cell">49</TD><TD align="right" class="gpotbl_cell">98
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">2,500</TD><TD align="right" class="gpotbl_cell">3,000</TD><TD align="right" class="gpotbl_cell">580</TD><TD align="right" class="gpotbl_cell">1,160</TD><TD align="right" class="gpotbl_cell">195</TD><TD align="right" class="gpotbl_cell">390</TD><TD align="right" class="gpotbl_cell">432</TD><TD align="right" class="gpotbl_cell">864</TD><TD align="right" class="gpotbl_cell">52</TD><TD align="right" class="gpotbl_cell">104
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">3,000</TD><TD align="right" class="gpotbl_cell">4,000</TD><TD align="right" class="gpotbl_cell">635</TD><TD align="right" class="gpotbl_cell">1,270</TD><TD align="right" class="gpotbl_cell">210</TD><TD align="right" class="gpotbl_cell">420</TD><TD align="right" class="gpotbl_cell">474</TD><TD align="right" class="gpotbl_cell">948</TD><TD align="right" class="gpotbl_cell">58</TD><TD align="right" class="gpotbl_cell">116
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">4,000</TD><TD align="right" class="gpotbl_cell">5,000</TD><TD align="right" class="gpotbl_cell">685</TD><TD align="right" class="gpotbl_cell">1,370</TD><TD align="right" class="gpotbl_cell">225</TD><TD align="right" class="gpotbl_cell">450</TD><TD align="right" class="gpotbl_cell">513</TD><TD align="right" class="gpotbl_cell">1,026</TD><TD align="right" class="gpotbl_cell">61</TD><TD align="right" class="gpotbl_cell">122
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">5,000</TD><TD align="right" class="gpotbl_cell">6,000</TD><TD align="right" class="gpotbl_cell">730</TD><TD align="right" class="gpotbl_cell">1,460</TD><TD align="right" class="gpotbl_cell">235</TD><TD align="right" class="gpotbl_cell">470</TD><TD align="right" class="gpotbl_cell">546</TD><TD align="right" class="gpotbl_cell">1,092</TD><TD align="right" class="gpotbl_cell">65</TD><TD align="right" class="gpotbl_cell">130
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">6,000</TD><TD align="right" class="gpotbl_cell">7,000</TD><TD align="right" class="gpotbl_cell">770</TD><TD align="right" class="gpotbl_cell">1,540</TD><TD align="right" class="gpotbl_cell">245</TD><TD align="right" class="gpotbl_cell">490</TD><TD align="right" class="gpotbl_cell">573</TD><TD align="right" class="gpotbl_cell">1,146</TD><TD align="right" class="gpotbl_cell">68</TD><TD align="right" class="gpotbl_cell">136
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">7,000</TD><TD align="right" class="gpotbl_cell">8,000</TD><TD align="right" class="gpotbl_cell">800</TD><TD align="right" class="gpotbl_cell">1,600</TD><TD align="right" class="gpotbl_cell">250</TD><TD align="right" class="gpotbl_cell">500</TD><TD align="right" class="gpotbl_cell">600</TD><TD align="right" class="gpotbl_cell">1,200</TD><TD align="right" class="gpotbl_cell">72</TD><TD align="right" class="gpotbl_cell">144
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">8,000</TD><TD align="right" class="gpotbl_cell">9,000</TD><TD align="right" class="gpotbl_cell">835</TD><TD align="right" class="gpotbl_cell">1,670</TD><TD align="right" class="gpotbl_cell">255</TD><TD align="right" class="gpotbl_cell">510</TD><TD align="right" class="gpotbl_cell">624</TD><TD align="right" class="gpotbl_cell">1,248</TD><TD align="right" class="gpotbl_cell">75</TD><TD align="right" class="gpotbl_cell">150
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">9,000</TD><TD align="right" class="gpotbl_cell">10,000</TD><TD align="right" class="gpotbl_cell">865</TD><TD align="right" class="gpotbl_cell">1,730</TD><TD align="right" class="gpotbl_cell">260</TD><TD align="right" class="gpotbl_cell">520</TD><TD align="right" class="gpotbl_cell">645</TD><TD align="right" class="gpotbl_cell">1,290</TD><TD align="right" class="gpotbl_cell">78</TD><TD align="right" class="gpotbl_cell">156
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">10,000</TD><TD align="right" class="gpotbl_cell">12,000</TD><TD align="right" class="gpotbl_cell">875</TD><TD align="right" class="gpotbl_cell">1,750</TD><TD align="right" class="gpotbl_cell">270</TD><TD align="right" class="gpotbl_cell">540</TD><TD align="right" class="gpotbl_cell">687</TD><TD align="right" class="gpotbl_cell">1,374</TD><TD align="right" class="gpotbl_cell">82</TD><TD align="right" class="gpotbl_cell">164
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">12,000</TD><TD align="right" class="gpotbl_cell">14,000</TD><TD align="right" class="gpotbl_cell">885</TD><TD align="right" class="gpotbl_cell">1,770</TD><TD align="right" class="gpotbl_cell">275</TD><TD align="right" class="gpotbl_cell">550</TD><TD align="right" class="gpotbl_cell">723</TD><TD align="right" class="gpotbl_cell">1,446</TD><TD align="right" class="gpotbl_cell">87</TD><TD align="right" class="gpotbl_cell">174
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">14,000</TD><TD align="right" class="gpotbl_cell">16,000</TD><TD align="right" class="gpotbl_cell">900</TD><TD align="right" class="gpotbl_cell">1,800</TD><TD align="right" class="gpotbl_cell">280</TD><TD align="right" class="gpotbl_cell">560</TD><TD align="right" class="gpotbl_cell">756</TD><TD align="right" class="gpotbl_cell">1,512</TD><TD align="right" class="gpotbl_cell">90</TD><TD align="right" class="gpotbl_cell">180
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">16,000</TD><TD align="right" class="gpotbl_cell">18,000</TD><TD align="right" class="gpotbl_cell">940</TD><TD align="right" class="gpotbl_cell">1,880</TD><TD align="right" class="gpotbl_cell">285</TD><TD align="right" class="gpotbl_cell">570</TD><TD align="right" class="gpotbl_cell">786</TD><TD align="right" class="gpotbl_cell">1,572</TD><TD align="right" class="gpotbl_cell">94</TD><TD align="right" class="gpotbl_cell">188
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">18,000</TD><TD align="right" class="gpotbl_cell">20,000</TD><TD align="right" class="gpotbl_cell">975</TD><TD align="right" class="gpotbl_cell">1,950</TD><TD align="right" class="gpotbl_cell">290</TD><TD align="right" class="gpotbl_cell">580</TD><TD align="right" class="gpotbl_cell">813</TD><TD align="right" class="gpotbl_cell">1,626</TD><TD align="right" class="gpotbl_cell">98</TD><TD align="right" class="gpotbl_cell">196
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">20,000</TD><TD align="right" class="gpotbl_cell">25,000</TD><TD align="right" class="gpotbl_cell">1,055</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">315</TD><TD align="right" class="gpotbl_cell">630</TD><TD align="right" class="gpotbl_cell">876</TD><TD align="right" class="gpotbl_cell">1,752</TD><TD align="right" class="gpotbl_cell">105</TD><TD align="right" class="gpotbl_cell">210
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">25,000</TD><TD align="right" class="gpotbl_cell">30,000</TD><TD align="right" class="gpotbl_cell">1,130</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">340</TD><TD align="right" class="gpotbl_cell">680</TD><TD align="right" class="gpotbl_cell">933</TD><TD align="right" class="gpotbl_cell">1,866</TD><TD align="right" class="gpotbl_cell">112</TD><TD align="right" class="gpotbl_cell">224
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">30,000</TD><TD align="right" class="gpotbl_cell">35,000</TD><TD align="right" class="gpotbl_cell">1,205</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">360</TD><TD align="right" class="gpotbl_cell">720</TD><TD align="right" class="gpotbl_cell">981</TD><TD align="right" class="gpotbl_cell">1,962</TD><TD align="right" class="gpotbl_cell">119</TD><TD align="right" class="gpotbl_cell">238
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">35,000</TD><TD align="right" class="gpotbl_cell">40,000</TD><TD align="right" class="gpotbl_cell">1,275</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">380</TD><TD align="right" class="gpotbl_cell">760</TD><TD align="right" class="gpotbl_cell">1,026</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">124</TD><TD align="right" class="gpotbl_cell">248
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">40,000</TD><TD align="right" class="gpotbl_cell">45,000</TD><TD align="right" class="gpotbl_cell">1,340</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">400</TD><TD align="right" class="gpotbl_cell">800</TD><TD align="right" class="gpotbl_cell">1,068</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">129</TD><TD align="right" class="gpotbl_cell">258
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">45,000</TD><TD align="right" class="gpotbl_cell">50,000</TD><TD align="right" class="gpotbl_cell">1,400</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">420</TD><TD align="right" class="gpotbl_cell">840</TD><TD align="right" class="gpotbl_cell">1,104</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">135</TD><TD align="right" class="gpotbl_cell">270
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">50,000</TD><TD align="right" class="gpotbl_cell">55,000</TD><TD align="right" class="gpotbl_cell">1,460</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">440</TD><TD align="right" class="gpotbl_cell">880</TD><TD align="right" class="gpotbl_cell">1,140</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">140</TD><TD align="right" class="gpotbl_cell">280
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">55,000</TD><TD align="right" class="gpotbl_cell">60,000</TD><TD align="right" class="gpotbl_cell">1,515</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">455</TD><TD align="right" class="gpotbl_cell">910</TD><TD align="right" class="gpotbl_cell">1,173</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">145</TD><TD align="right" class="gpotbl_cell">290
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">60,000</TD><TD align="right" class="gpotbl_cell">65,000</TD><TD align="right" class="gpotbl_cell">1,565</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">470</TD><TD align="right" class="gpotbl_cell">940</TD><TD align="right" class="gpotbl_cell">1,206</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">150</TD><TD align="right" class="gpotbl_cell">300
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">65,000</TD><TD align="right" class="gpotbl_cell">70,000</TD><TD align="right" class="gpotbl_cell">1,610</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">485</TD><TD align="right" class="gpotbl_cell">970</TD><TD align="right" class="gpotbl_cell">1,236</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">155</TD><TD align="right" class="gpotbl_cell">310
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">70,000</TD><TD align="right" class="gpotbl_cell">75,000</TD><TD align="right" class="gpotbl_cell">1,655</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">500</TD><TD align="right" class="gpotbl_cell">1,000</TD><TD align="right" class="gpotbl_cell">1,263</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">160</TD><TD align="right" class="gpotbl_cell">320
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">75,000</TD><TD align="right" class="gpotbl_cell">80,000</TD><TD align="right" class="gpotbl_cell">1,695</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">510</TD><TD align="right" class="gpotbl_cell">1,020</TD><TD align="right" class="gpotbl_cell">1,293</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">165</TD><TD align="right" class="gpotbl_cell">330
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">80,000</TD><TD align="right" class="gpotbl_cell">85,000</TD><TD align="right" class="gpotbl_cell">1,730</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">520</TD><TD align="right" class="gpotbl_cell">1,040</TD><TD align="right" class="gpotbl_cell">1,317</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">170</TD><TD align="right" class="gpotbl_cell">340
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">85,000</TD><TD align="right" class="gpotbl_cell">90,000</TD><TD align="right" class="gpotbl_cell">1,760</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">530</TD><TD align="right" class="gpotbl_cell">1,060</TD><TD align="right" class="gpotbl_cell">1,344</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">175</TD><TD align="right" class="gpotbl_cell">350
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">90,000</TD><TD align="right" class="gpotbl_cell">95,000</TD><TD align="right" class="gpotbl_cell">1,790</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">540</TD><TD align="right" class="gpotbl_cell">1,080</TD><TD align="right" class="gpotbl_cell">1,368</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">180</TD><TD align="right" class="gpotbl_cell">360
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">95,000</TD><TD align="right" class="gpotbl_cell">100,000</TD><TD align="right" class="gpotbl_cell">1,815</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">545</TD><TD align="right" class="gpotbl_cell">1,090</TD><TD align="right" class="gpotbl_cell">1,392</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">185</TD><TD align="right" class="gpotbl_cell">370
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">100,000</TD><TD align="right" class="gpotbl_cell">110,000</TD><TD align="right" class="gpotbl_cell">1,835</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">550</TD><TD align="right" class="gpotbl_cell">1,100</TD><TD align="right" class="gpotbl_cell">1,437</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">195</TD><TD align="right" class="gpotbl_cell">390
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">110,000</TD><TD align="right" class="gpotbl_cell">120,000</TD><TD align="right" class="gpotbl_cell">1,855</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">555</TD><TD align="right" class="gpotbl_cell">1,110</TD><TD align="right" class="gpotbl_cell">1,479</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">205</TD><TD align="right" class="gpotbl_cell">410
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">120,000</TD><TD align="right" class="gpotbl_cell">130,000</TD><TD align="right" class="gpotbl_cell">1,875</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">560</TD><TD align="right" class="gpotbl_cell">1,120</TD><TD align="right" class="gpotbl_cell">1,521</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">215</TD><TD align="right" class="gpotbl_cell">430
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">130,000</TD><TD align="right" class="gpotbl_cell">140,000</TD><TD align="right" class="gpotbl_cell">1,890</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">565</TD><TD align="right" class="gpotbl_cell">1,130</TD><TD align="right" class="gpotbl_cell">1,557</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">225</TD><TD align="right" class="gpotbl_cell">450
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">140,000</TD><TD align="right" class="gpotbl_cell">150,000</TD><TD align="right" class="gpotbl_cell">1,900</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">570</TD><TD align="right" class="gpotbl_cell">1,140</TD><TD align="right" class="gpotbl_cell">1,593</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">235</TD><TD align="right" class="gpotbl_cell">470
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">150,000</TD><TD align="right" class="gpotbl_cell">160,000</TD><TD align="right" class="gpotbl_cell">1,935</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">580</TD><TD align="right" class="gpotbl_cell">1,160</TD><TD align="right" class="gpotbl_cell">1,629</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">245</TD><TD align="right" class="gpotbl_cell">490
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">160,000</TD><TD align="right" class="gpotbl_cell">170,000</TD><TD align="right" class="gpotbl_cell">1,965</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">590</TD><TD align="right" class="gpotbl_cell">1,180</TD><TD align="right" class="gpotbl_cell">1,662</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">255</TD><TD align="right" class="gpotbl_cell">510
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">170,000</TD><TD align="right" class="gpotbl_cell">180,000</TD><TD align="right" class="gpotbl_cell">1,990</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">600</TD><TD align="right" class="gpotbl_cell">1,200</TD><TD align="right" class="gpotbl_cell">1,695</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">265</TD><TD align="right" class="gpotbl_cell">530
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">180,000</TD><TD align="right" class="gpotbl_cell">190,000</TD><TD align="right" class="gpotbl_cell">2,010</TD><TD align="right" class="gpotbl_cell">2,010</TD><TD align="right" class="gpotbl_cell">605</TD><TD align="right" class="gpotbl_cell">1,210</TD><TD align="right" class="gpotbl_cell">1,725</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">275</TD><TD align="right" class="gpotbl_cell">550
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">190,000</TD><TD align="right" class="gpotbl_cell">200,000</TD><TD align="right" class="gpotbl_cell">2,030</TD><TD align="right" class="gpotbl_cell">2,030</TD><TD align="right" class="gpotbl_cell">610</TD><TD align="right" class="gpotbl_cell">1,220</TD><TD align="right" class="gpotbl_cell">1,755</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">285</TD><TD align="right" class="gpotbl_cell">570
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">200,000</TD><TD align="right" class="gpotbl_cell">210,000</TD><TD align="right" class="gpotbl_cell">2,055</TD><TD align="right" class="gpotbl_cell">2,055</TD><TD align="right" class="gpotbl_cell">620</TD><TD align="right" class="gpotbl_cell">1,240</TD><TD align="right" class="gpotbl_cell">1,782</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">295</TD><TD align="right" class="gpotbl_cell">590
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">210,000</TD><TD align="right" class="gpotbl_cell">230,000</TD><TD align="right" class="gpotbl_cell">2,100</TD><TD align="right" class="gpotbl_cell">2,100</TD><TD align="right" class="gpotbl_cell">635</TD><TD align="right" class="gpotbl_cell">1,270</TD><TD align="right" class="gpotbl_cell">1,836</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">315</TD><TD align="right" class="gpotbl_cell">630
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">230,000</TD><TD align="right" class="gpotbl_cell">250,000</TD><TD align="right" class="gpotbl_cell">2,155</TD><TD align="right" class="gpotbl_cell">2,155</TD><TD align="right" class="gpotbl_cell">650</TD><TD align="right" class="gpotbl_cell">1,300</TD><TD align="right" class="gpotbl_cell">1,890</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">335</TD><TD align="right" class="gpotbl_cell">670
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">250,000</TD><TD align="right" class="gpotbl_cell">275,000</TD><TD align="right" class="gpotbl_cell">2,215</TD><TD align="right" class="gpotbl_cell">2,215</TD><TD align="right" class="gpotbl_cell">670</TD><TD align="right" class="gpotbl_cell">1,340</TD><TD align="right" class="gpotbl_cell">1,950</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">360</TD><TD align="right" class="gpotbl_cell">720
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">275,000</TD><TD align="right" class="gpotbl_cell">300,000</TD><TD align="right" class="gpotbl_cell">2,275</TD><TD align="right" class="gpotbl_cell">2,275</TD><TD align="right" class="gpotbl_cell">690</TD><TD align="right" class="gpotbl_cell">1,380</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">385</TD><TD align="right" class="gpotbl_cell">770</TD></TR></TABLE></DIV></DIV>
<EXTRACT>
<HD1>Table: American Table of Distances for Storage of Explosives (December 1910), as Revised and Approved by the Institute of Makers of Explosives—June 1991.
</HD1>
<HD2>Notes to the Table of Distances for Storage of Explosives
</HD2>
<P>(1) Terms found in the table of distances for storage of explosive materials are defined in § 555.11.
</P>
<P>(2) When two or more storage magazines are located on the same property, each magazine must comply with the minimum distances specified from inhabited buildings, railways, and highways, and, in addition, they should be separated from each other by not less than the distances shown for “Separation of Magazines,” except that the quantity of explosives contained in cap magazines shall govern in regard to the spacing of said cap magazines from magazines containing other explosives. If any two or more magazines are separated from each other by less than the specified “Separation of Magazines” distances, then such two or more magazines, as a group, must be considered as one magazine, and the total quantity of explosives stored in such group must be treated as if stored in a single magazine located on the site of any magazine of the group, and must comply with the minimum of distances specified from other magazines, inhabited buildings, railways, and highways.
</P>
<P>(3) All types of blasting caps in strengths through No. 8 cap should be rated at 1
<FR>1/2</FR> lbs. (1.5 lbs.) of explosives per 1,000 caps. For strengths higher than No. 8 cap, consult the manufacturer.
</P>
<P>(4) For quantity and distance purposes, detonating cord of 50 or 60 grains per foot should be calculated as equivalent to 9 lbs. of high explosives per 1,000 feet. Heavier or lighter core loads should be rated proportionately.</P></EXTRACT>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by T.D. ATF-400, 63 FR 45003, Aug. 24, 1998; T.D. ATF-446, 66 FR 16602, Mar. 27, 2001; T.D. ATF-446a, 66 FR 19089, Apr. 13, 2001; ATF 2017R-21, 84 FR 13800, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.219" NODE="27:3.0.1.3.5.11.31.19" TYPE="SECTION">
<HEAD>§ 555.219   Table of distances for storage of low explosives.</HEAD>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" colspan="2" scope="col">Pounds
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">From inhabited building distance (feet)
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">From public railroad and highway distance (feet)
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">From above ground magazine (feet)
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Over
</TH><TH class="gpotbl_colhed" scope="col">Not over
</TH></TR><TR><TD align="right" class="gpotbl_cell" scope="row">0</TD><TD align="right" class="gpotbl_cell">1,000</TD><TD align="right" class="gpotbl_cell">75</TD><TD align="right" class="gpotbl_cell">75</TD><TD align="right" class="gpotbl_cell">50
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">1,000</TD><TD align="right" class="gpotbl_cell">5,000</TD><TD align="right" class="gpotbl_cell">115</TD><TD align="right" class="gpotbl_cell">115</TD><TD align="right" class="gpotbl_cell">75
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">5,000</TD><TD align="right" class="gpotbl_cell">10,000</TD><TD align="right" class="gpotbl_cell">150</TD><TD align="right" class="gpotbl_cell">150</TD><TD align="right" class="gpotbl_cell">100
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">10,000</TD><TD align="right" class="gpotbl_cell">20,000</TD><TD align="right" class="gpotbl_cell">190</TD><TD align="right" class="gpotbl_cell">190</TD><TD align="right" class="gpotbl_cell">125
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">20,000</TD><TD align="right" class="gpotbl_cell">30,000</TD><TD align="right" class="gpotbl_cell">215</TD><TD align="right" class="gpotbl_cell">215</TD><TD align="right" class="gpotbl_cell">145
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">30,000</TD><TD align="right" class="gpotbl_cell">40,000</TD><TD align="right" class="gpotbl_cell">235</TD><TD align="right" class="gpotbl_cell">235</TD><TD align="right" class="gpotbl_cell">155
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">40,000</TD><TD align="right" class="gpotbl_cell">50,000</TD><TD align="right" class="gpotbl_cell">250</TD><TD align="right" class="gpotbl_cell">250</TD><TD align="right" class="gpotbl_cell">165
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">50,000</TD><TD align="right" class="gpotbl_cell">60,000</TD><TD align="right" class="gpotbl_cell">260</TD><TD align="right" class="gpotbl_cell">260</TD><TD align="right" class="gpotbl_cell">175
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">60,000</TD><TD align="right" class="gpotbl_cell">70,000</TD><TD align="right" class="gpotbl_cell">270</TD><TD align="right" class="gpotbl_cell">270</TD><TD align="right" class="gpotbl_cell">185
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">70,000</TD><TD align="right" class="gpotbl_cell">80,000</TD><TD align="right" class="gpotbl_cell">280</TD><TD align="right" class="gpotbl_cell">280</TD><TD align="right" class="gpotbl_cell">190
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">80,000</TD><TD align="right" class="gpotbl_cell">90,000</TD><TD align="right" class="gpotbl_cell">295</TD><TD align="right" class="gpotbl_cell">295</TD><TD align="right" class="gpotbl_cell">195
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">90,000</TD><TD align="right" class="gpotbl_cell">100,000</TD><TD align="right" class="gpotbl_cell">300</TD><TD align="right" class="gpotbl_cell">300</TD><TD align="right" class="gpotbl_cell">200
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">100,000</TD><TD align="right" class="gpotbl_cell">200,000</TD><TD align="right" class="gpotbl_cell">375</TD><TD align="right" class="gpotbl_cell">375</TD><TD align="right" class="gpotbl_cell">250
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">200,000</TD><TD align="right" class="gpotbl_cell">300,000</TD><TD align="right" class="gpotbl_cell">450</TD><TD align="right" class="gpotbl_cell">450</TD><TD align="right" class="gpotbl_cell">300</TD></TR></TABLE></DIV></DIV>
<EXTRACT>
<HD1>TABLE: Department of Defense Ammunition and Explosives Standards, Table 5-4.1 Extract; 4145.27 M, March 1969</HD1></EXTRACT>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2017R-21, 84 FR 13800, Apr. 8, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.220" NODE="27:3.0.1.3.5.11.31.20" TYPE="SECTION">
<HEAD>§ 555.220   Table of separation distances of ammonium nitrate and blasting agents from explosives or blasting agents.</HEAD>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" colspan="2" scope="col">Donor weight (pounds)
</TH><TH class="gpotbl_colhed" colspan="2" scope="col">Minimum separation distance of acceptor from donor when barricaded (ft.)
</TH><TH class="gpotbl_colhed" rowspan="2" scope="col">Minimum thickness of artificial barricades (in.)
</TH></TR><TR><TH class="gpotbl_colhed" scope="col">Over
</TH><TH class="gpotbl_colhed" scope="col">Not over
</TH><TH class="gpotbl_colhed" scope="col">Ammonium nitrate
</TH><TH class="gpotbl_colhed" scope="col">Blasting agent
</TH></TR><TR><TD align="right" class="gpotbl_cell" scope="row"></TD><TD align="right" class="gpotbl_cell">100</TD><TD align="right" class="gpotbl_cell">3</TD><TD align="right" class="gpotbl_cell">11</TD><TD align="right" class="gpotbl_cell">12
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">100</TD><TD align="right" class="gpotbl_cell">300</TD><TD align="right" class="gpotbl_cell">4</TD><TD align="right" class="gpotbl_cell">14</TD><TD align="right" class="gpotbl_cell">12
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">300</TD><TD align="right" class="gpotbl_cell">600</TD><TD align="right" class="gpotbl_cell">5</TD><TD align="right" class="gpotbl_cell">18</TD><TD align="right" class="gpotbl_cell">12
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">600</TD><TD align="right" class="gpotbl_cell">1,000</TD><TD align="right" class="gpotbl_cell">6</TD><TD align="right" class="gpotbl_cell">22</TD><TD align="right" class="gpotbl_cell">12
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">1,000</TD><TD align="right" class="gpotbl_cell">1,600</TD><TD align="right" class="gpotbl_cell">7</TD><TD align="right" class="gpotbl_cell">25</TD><TD align="right" class="gpotbl_cell">12
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">1,600</TD><TD align="right" class="gpotbl_cell">2,000</TD><TD align="right" class="gpotbl_cell">8</TD><TD align="right" class="gpotbl_cell">29</TD><TD align="right" class="gpotbl_cell">12
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">2,000</TD><TD align="right" class="gpotbl_cell">3,000</TD><TD align="right" class="gpotbl_cell">9</TD><TD align="right" class="gpotbl_cell">32</TD><TD align="right" class="gpotbl_cell">15
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">3,000</TD><TD align="right" class="gpotbl_cell">4,000</TD><TD align="right" class="gpotbl_cell">10</TD><TD align="right" class="gpotbl_cell">36</TD><TD align="right" class="gpotbl_cell">15
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">4,000</TD><TD align="right" class="gpotbl_cell">6,000</TD><TD align="right" class="gpotbl_cell">11</TD><TD align="right" class="gpotbl_cell">40</TD><TD align="right" class="gpotbl_cell">15
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">6,000</TD><TD align="right" class="gpotbl_cell">8,000</TD><TD align="right" class="gpotbl_cell">12</TD><TD align="right" class="gpotbl_cell">43</TD><TD align="right" class="gpotbl_cell">20
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">8,000</TD><TD align="right" class="gpotbl_cell">10,000</TD><TD align="right" class="gpotbl_cell">13</TD><TD align="right" class="gpotbl_cell">47</TD><TD align="right" class="gpotbl_cell">20
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">10,000</TD><TD align="right" class="gpotbl_cell">12,000</TD><TD align="right" class="gpotbl_cell">14</TD><TD align="right" class="gpotbl_cell">50</TD><TD align="right" class="gpotbl_cell">20
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">12,000</TD><TD align="right" class="gpotbl_cell">16,000</TD><TD align="right" class="gpotbl_cell">15</TD><TD align="right" class="gpotbl_cell">54</TD><TD align="right" class="gpotbl_cell">25
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">16,000</TD><TD align="right" class="gpotbl_cell">20,000</TD><TD align="right" class="gpotbl_cell">16</TD><TD align="right" class="gpotbl_cell">58</TD><TD align="right" class="gpotbl_cell">25
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">20,000</TD><TD align="right" class="gpotbl_cell">25,000</TD><TD align="right" class="gpotbl_cell">18</TD><TD align="right" class="gpotbl_cell">65</TD><TD align="right" class="gpotbl_cell">25
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">25,000</TD><TD align="right" class="gpotbl_cell">30,000</TD><TD align="right" class="gpotbl_cell">19</TD><TD align="right" class="gpotbl_cell">68</TD><TD align="right" class="gpotbl_cell">30
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">30,000</TD><TD align="right" class="gpotbl_cell">35,000</TD><TD align="right" class="gpotbl_cell">20</TD><TD align="right" class="gpotbl_cell">72</TD><TD align="right" class="gpotbl_cell">30
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">35,000</TD><TD align="right" class="gpotbl_cell">40,000</TD><TD align="right" class="gpotbl_cell">21</TD><TD align="right" class="gpotbl_cell">76</TD><TD align="right" class="gpotbl_cell">30
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">40,000</TD><TD align="right" class="gpotbl_cell">45,000</TD><TD align="right" class="gpotbl_cell">22</TD><TD align="right" class="gpotbl_cell">79</TD><TD align="right" class="gpotbl_cell">35
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">45,000</TD><TD align="right" class="gpotbl_cell">50,000</TD><TD align="right" class="gpotbl_cell">23</TD><TD align="right" class="gpotbl_cell">83</TD><TD align="right" class="gpotbl_cell">35
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">50,000</TD><TD align="right" class="gpotbl_cell">55,000</TD><TD align="right" class="gpotbl_cell">24</TD><TD align="right" class="gpotbl_cell">86</TD><TD align="right" class="gpotbl_cell">35
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">55,000</TD><TD align="right" class="gpotbl_cell">60,000</TD><TD align="right" class="gpotbl_cell">25</TD><TD align="right" class="gpotbl_cell">90</TD><TD align="right" class="gpotbl_cell">35
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">60,000</TD><TD align="right" class="gpotbl_cell">70,000</TD><TD align="right" class="gpotbl_cell">26</TD><TD align="right" class="gpotbl_cell">94</TD><TD align="right" class="gpotbl_cell">40
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">70,000</TD><TD align="right" class="gpotbl_cell">80,000</TD><TD align="right" class="gpotbl_cell">28</TD><TD align="right" class="gpotbl_cell">101</TD><TD align="right" class="gpotbl_cell">40
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">80,000</TD><TD align="right" class="gpotbl_cell">90,000</TD><TD align="right" class="gpotbl_cell">30</TD><TD align="right" class="gpotbl_cell">108</TD><TD align="right" class="gpotbl_cell">40
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">90,000</TD><TD align="right" class="gpotbl_cell">100,000</TD><TD align="right" class="gpotbl_cell">32</TD><TD align="right" class="gpotbl_cell">115</TD><TD align="right" class="gpotbl_cell">40
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">100,000</TD><TD align="right" class="gpotbl_cell">120,000</TD><TD align="right" class="gpotbl_cell">34</TD><TD align="right" class="gpotbl_cell">122</TD><TD align="right" class="gpotbl_cell">50
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">120,000</TD><TD align="right" class="gpotbl_cell">140,000</TD><TD align="right" class="gpotbl_cell">37</TD><TD align="right" class="gpotbl_cell">133</TD><TD align="right" class="gpotbl_cell">50
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">140,000</TD><TD align="right" class="gpotbl_cell">160,000</TD><TD align="right" class="gpotbl_cell">40</TD><TD align="right" class="gpotbl_cell">144</TD><TD align="right" class="gpotbl_cell">50
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">160,000</TD><TD align="right" class="gpotbl_cell">180,000</TD><TD align="right" class="gpotbl_cell">44</TD><TD align="right" class="gpotbl_cell">158</TD><TD align="right" class="gpotbl_cell">50
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">180,000</TD><TD align="right" class="gpotbl_cell">200,000</TD><TD align="right" class="gpotbl_cell">48</TD><TD align="right" class="gpotbl_cell">173</TD><TD align="right" class="gpotbl_cell">50
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">200,000</TD><TD align="right" class="gpotbl_cell">220,000</TD><TD align="right" class="gpotbl_cell">52</TD><TD align="right" class="gpotbl_cell">187</TD><TD align="right" class="gpotbl_cell">60
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">220,000</TD><TD align="right" class="gpotbl_cell">250,000</TD><TD align="right" class="gpotbl_cell">56</TD><TD align="right" class="gpotbl_cell">202</TD><TD align="right" class="gpotbl_cell">60
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">250,000</TD><TD align="right" class="gpotbl_cell">275,000</TD><TD align="right" class="gpotbl_cell">60</TD><TD align="right" class="gpotbl_cell">216</TD><TD align="right" class="gpotbl_cell">60
</TD></TR><TR><TD align="right" class="gpotbl_cell" scope="row">275,000</TD><TD align="right" class="gpotbl_cell">300,000</TD><TD align="right" class="gpotbl_cell">64</TD><TD align="right" class="gpotbl_cell">230</TD><TD align="right" class="gpotbl_cell">60</TD></TR></TABLE></DIV></DIV>
<EXTRACT>
<HD1>Table: National Fire Protection Association (NFPA) Official Standard No. 492, 1968
</HD1>
<HD2>Notes of Table of Separation Distances of Ammonium Nitrate and Blasting Agents From Explosives or Blasting Agents
</HD2>
<P>(1) This table specifies separation distances to prevent explosion of ammonium nitrate and ammonium nitrate-based blasting agents by propagation from nearby stores of high explosives or blasting agents referred to in the table as the “donor.” Ammonium nitrate, by itself, is not considered to be a donor when applying this table. Ammonium nitrate, ammonium nitrate-fuel oil or combinations thereof are acceptors. If stores of ammonium nitrate are located within the sympathetic detonation distance of explosives or blasting agents, one-half the mass of the ammonium nitrate is to be included in the mass of the donor.
</P>
<P>(2) When the ammonium nitrate and/or blasting agent is not barricaded, the distances shown in the table must be multiplied by six. These distances allow for the possibility of high velocity metal fragments from mixers, hoppers, truck bodies, sheet metal structures, metal containers, and the like which may enclose the “donor.” Where explosives storage is in bullet-resistant magazines or where the storage is protected by a bullet-resistant wall, distances and barricade thicknesses in excess of those prescribed in the table in § 555.218 are not required.
</P>
<P>(3) These distances apply to all ammonium nitrate with respect to its separation from stores of high explosives and blasting agents. Ammonium nitrate explosive mixtures that are high explosives pursuant to § 555.202(a) or are defined as a blasting agent pursuant to § 555.11 are subject to the table of distances for storage of explosive materials in § 555.218 and to the table of separation distances of ammonium nitrate and blasting agents from explosives or blasting agents in this section.
</P>
<P>(4) These distances apply to blasting agents which pass the insensitivity test prescribed in regulations of the U.S. Department of Transportation (49 CFR part 173).
</P>
<P>(5) Earth or sand dikes, or enclosures filled with the prescribed minimum thickness of earth or sand are acceptable artificial barricades. Natural barricades, such as hills or timber of sufficient density that the surrounding exposures which require protection cannot be seen from the “donor” when the trees are bare of leaves, are also acceptable.
</P>
<P>(6) For determining the distances to be maintained from inhabited buildings, passenger railways, and public highways, use the table in § 555.218.</P></EXTRACT>
<CITA TYPE="N">[T.D. ATF-87, 46 FR 40384, Aug. 7, 1981, as amended by ATF 2017R-21, 84 FR 13800, Apr. 8, 2019; ATF 2002R-226F, 84 FR 12097, Apr. 1, 2019]


</CITA>
</DIV8>


<DIV8 N="§ 555.221" NODE="27:3.0.1.3.5.11.31.21" TYPE="SECTION">
<HEAD>§ 555.221   Requirements for display fireworks, pyrotechnic compositions, and explosive materials used in assembling fireworks or articles pyrotechnic.</HEAD>
<P>(a) Display fireworks, pyrotechnic compositions, and explosive materials used to assemble fireworks and articles pyrotechnic shall be stored at all times as required by this Subpart unless they are in the process of manufacture, assembly, packaging, or are being transported.
</P>
<P>(b) No more than 500 pounds (227 kg) of pyrotechnic compositions or explosive materials are permitted at one time in any fireworks mixing building, any building or area in which the pyrotechnic compositions or explosive materials are pressed or otherwise prepared for finishing or assembly, or any finishing or assembly building. All pyrotechnic compositions or explosive materials not in immediate use will be stored in covered, non-ferrous containers.
</P>
<P>(c) The maximum quantity of flash powder permitted in any fireworks process building is 10 pounds (4.5 kg).
</P>
<P>(d) All dry explosive powders and mixtures, partially assembled display fireworks, and finished display fireworks shall be removed from fireworks process buildings at the conclusion of a day's operations and placed in approved magazines.
</P>
<CITA TYPE="N">[T.D. ATF-293, 55 FR 3722, Feb. 5, 1990, as amended by T.D. ATF-400, 63 FR 45004, Aug. 24, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 555.222" NODE="27:3.0.1.3.5.11.31.22" TYPE="SECTION">
<HEAD>§ 555.222   Table of distances between fireworks process buildings and between fireworks process and fireworks nonprocess buildings.</HEAD>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Net weight of fireworks 
<sup>1</sup> (pounds)
</TH><TH class="gpotbl_colhed" scope="col">Display fireworks 
<sup>2</sup> (feet)
</TH><TH class="gpotbl_colhed" scope="col">Consumer fireworks 
<sup>3</sup> (feet)
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> 0-100</TD><TD align="left" class="gpotbl_cell">57</TD><TD align="left" class="gpotbl_cell">37
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">101-200</TD><TD align="left" class="gpotbl_cell">69</TD><TD align="left" class="gpotbl_cell">37
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">201-300</TD><TD align="left" class="gpotbl_cell">77</TD><TD align="left" class="gpotbl_cell">37
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">301-400</TD><TD align="left" class="gpotbl_cell">85</TD><TD align="left" class="gpotbl_cell">37
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">401-500</TD><TD align="left" class="gpotbl_cell">91</TD><TD align="left" class="gpotbl_cell">37
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Above 500</TD><TD align="left" class="gpotbl_cell">Not permitted 
<sup>4 5</sup></TD><TD align="left" class="gpotbl_cell">Not permitted 
<sup>4 5</sup>
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">
<sup>1</sup> Net weight is the weight of all pyrotechnic compositions, and explosive materials and fuse only.
</P><P class="gpotbl_note">
<sup>2</sup> The distances in this column apply only with natural or artificial barricades. If such barricades are not used, the distances must be doubled.
</P><P class="gpotbl_note">
<sup>3</sup> While consumer fireworks or articles pyrotechnic in a finished state are not subject to regulation, explosive materials used to manufacture or assemble such fireworks or articles are subject to regulation. Thus, fireworks process buildings where consumer fireworks or articles pyrotechnic are being processed shall meet these requirements.
</P><P class="gpotbl_note">
<sup>4</sup> A maximum of 500 pounds of in-process pyrotechnic compositions, either loose or in partially-assembled fireworks, is permitted in any fireworks process building. Finished display fireworks may not be stored in a fireworks process building.
</P><P class="gpotbl_note">
<sup>5</sup> A maximum of 10 pounds of flash powder, either in loose form or in assembled units, is permitted in any fireworks process building. Quantities in excess of 10 pounds must be kept in an approved magazine.</P></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-293, 55 FR 3723, Feb. 5, 1990, as amended by T.D. ATF-400, 63 FR 45004, Aug. 24, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 555.223" NODE="27:3.0.1.3.5.11.31.23" TYPE="SECTION">
<HEAD>§ 555.223   Table of distances between fireworks process buildings and other specified areas.</HEAD>
<DIV width="100%"><DIV class="table_head"><P class="gpotbl_title">Distance from Passenger Railways, Public Highways, Fireworks Plant Buildings used to Store Consumer Fireworks and Articles Pyrotechnic, Magazines and Fireworks Shipping Buildings, and Inhabited Buildings. 
<sup>3 4 5</sup>
</P></DIV><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Net weight of fireworks 
<sup>1</sup> (pounds)
</TH><TH class="gpotbl_colhed" scope="col">Display fireworks 
<sup>1</sup> (feet)
</TH><TH class="gpotbl_colhed" scope="col">Consumer fireworks 
<sup>2</sup> (feet)
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row"> 0-100</TD><TD align="left" class="gpotbl_cell">200</TD><TD align="left" class="gpotbl_cell">25
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">101-200</TD><TD align="left" class="gpotbl_cell">200</TD><TD align="left" class="gpotbl_cell">50
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">201-300</TD><TD align="left" class="gpotbl_cell">200</TD><TD align="left" class="gpotbl_cell">50
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">301-400</TD><TD align="left" class="gpotbl_cell">200</TD><TD align="left" class="gpotbl_cell">50
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">401-500</TD><TD align="left" class="gpotbl_cell">200</TD><TD align="left" class="gpotbl_cell">50
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Above 500</TD><TD align="left" class="gpotbl_cell">Not permitted</TD><TD align="left" class="gpotbl_cell">Not permitted.
</TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">
<sup>1</sup> Net weight is the weight of all pyrotechnic compositions, and explosive materials and fuse only.
</P><P class="gpotbl_note">
<sup>2</sup> While consumer fireworks or articles pyrotechnic in a finished state are not subject to regulation, explosive materials used to manufacture or assemble such fireworks or articles are subject to regulation. Thus, fireworks process buildings where consumer fireworks or articles pyrotechnic are being processed shall meet these requirements.
</P><P class="gpotbl_note">
<sup>3</sup> This table does not apply to the separation distances between fireworks process buildings (see § 555.222) and between magazines (see §§ 555.218 and 555.224).
</P><P class="gpotbl_note">
<sup>4</sup> The distances in this table apply with or without artificial or natural barricades or screen barricades. However, the use of barricades is highly recommended.
</P><P class="gpotbl_note">
<sup>5</sup> No work of any kind, except to place or move items other than explosive materials from storage, shall be conducted in any building designated as a warehouse. A fireworks plant warehouse is not subject to § 555.222 or this section, tables of distances.</P></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-293, 55 FR 3723, Feb. 5, 1990, as amended by T.D. ATF-400, 63 FR 45004, Aug. 24, 1998]


</CITA>
</DIV8>


<DIV8 N="§ 555.224" NODE="27:3.0.1.3.5.11.31.24" TYPE="SECTION">
<HEAD>§ 555.224   Table of distances for the storage of display fireworks (except bulk salutes).</HEAD>
<DIV width="100%"><DIV class="gpotbl_div"><TABLE border="1" cellpadding="1" cellspacing="1" class="gpotbl_table" frame="void" width="100%"><TR><TH class="gpotbl_colhed" scope="col">Net weight of firework 
<sup>1</sup> (pounds)
</TH><TH class="gpotbl_colhed" scope="col">Distance between magazine and inhabited building, passenger railway, or public highway 
<sup>3 4</sup> (feet)
</TH><TH class="gpotbl_colhed" scope="col">Distance between magazines 
<sup>2 3</sup> (feet)
</TH></TR><TR><TD align="left" class="gpotbl_cell" scope="row">0-1000</TD><TD align="left" class="gpotbl_cell">150</TD><TD align="right" class="gpotbl_cell">100
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">1001-5000</TD><TD align="left" class="gpotbl_cell">230</TD><TD align="right" class="gpotbl_cell">150
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">5001-10000</TD><TD align="left" class="gpotbl_cell">300</TD><TD align="right" class="gpotbl_cell">200
</TD></TR><TR><TD align="left" class="gpotbl_cell" scope="row">Above 10000</TD><TD align="left" class="gpotbl_cell">Use table § 555.218</TD><TD align="right" class="gpotbl_cell"></TD></TR></TABLE></DIV><DIV class="table_foot"><P class="gpotbl_note">
<sup>1</sup> Net weight is the weight of all pyrotechnic compositions, and explosive materials and fuse only.
</P><P class="gpotbl_note">
<sup>2</sup> For the purposes of applying this table, the term “magazine” also includes fireworks shipping buildings for display fireworks.
</P><P class="gpotbl_note">
<sup>3</sup> For fireworks storage magazines in use prior to March 7, 1990, the distances in this table may be halved if properly barricaded between the magazine and potential receptor sites (55 FR 3717).
</P><P class="gpotbl_note">
<sup>4</sup> This table does not apply to the storage of bulk salutes. Use table at § 555.218.</P></DIV></DIV>
<CITA TYPE="N">[T.D. ATF-293, 55 FR 3723, Feb. 5, 1990, as amended by T.D. ATF-400, 63 FR 45004, Aug. 24, 1998; ATF 2017R-21, 84 FR 13800, Apr. 8, 2019]


</CITA>
</DIV8>

</DIV6>

</DIV5>

</DIV4>


<DIV4 N="D" NODE="27:3.0.1.4" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER D—MISCELLANEOUS REGULATIONS RELATING TO ALCOHOL AND TOBACCO


</HEAD>

<DIV5 N="646" NODE="27:3.0.1.4.6" TYPE="PART">
<HEAD>PART 646—CONTRABAND CIGARETTES AND SMOKELESS TOBACCO


</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>18 U.S.C. 2341-2346, unless otherwise noted.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>45 FR 48612, July 21, 1980, unless otherwise noted. Redesignated by T.D. ATF-487, 68 FR 3753, Jan. 24, 2003.
</PSPACE></SOURCE>
<EDNOTE>
<HED>Editorial Note:</HED><PSPACE>Nomenclature changes to part 646 appear by T.D. ATF-487, 68 FR 4753, Jan. 24, 2003.</PSPACE></EDNOTE>

<DIV7 N="31" NODE="27:3.0.1.4.6.0.31" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 646.141" NODE="27:3.0.1.4.6.0.31.1" TYPE="SECTION">
<HEAD>§ 646.141   Scope of part.</HEAD>
<P>The regulations in this part relate to delivery sales of smokeless tobacco and cigarettes, and to distributing, either in a single transaction or cumulatively, more than 10,000 cigarettes or 500 single-unit consumer-sized cans or packages of smokeless tobacco within a single month.
</P>
<CITA TYPE="N">[ATF 2006R-1F, 91 FR 25131, May 8, 2026]




</CITA>
</DIV8>


<DIV8 N="§ 646.142" NODE="27:3.0.1.4.6.0.31.2" TYPE="SECTION">
<HEAD>§ 646.142   Territorial extent.</HEAD>
<P>The provisions of the regulations in this part apply in the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.


</P>
</DIV8>


<DIV8 N="§ 646.143" NODE="27:3.0.1.4.6.0.31.3" TYPE="SECTION">
<HEAD>§ 646.143   Meaning of terms.</HEAD>
<P>When used in this part, terms are defined as follows in this section. Words in the plural shall include the singular, and vice versa. Words indicating the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude other things not named which are in the same general class or are otherwise within the scope of the term defined.
</P>
<P><I>Appropriate ATF officer.</I> An officer or employee of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) authorized to perform any functions relating to the administration or enforcement of this part by ATF Order 1130.28, Delegation of the Director's Authorities in 27 CFR Parts 45 and 646.
</P>
<P><I>Business premises.</I> When used with respect to persons who sell cigarettes or smokeless tobacco, the property on which the cigarettes or smokeless tobacco are kept or stored. The business premises include the property where distributors keep their cigarette and smokeless-tobacco records.
</P>
<P><I>Cigarette.</I> A cigarette is:
</P>
<P>(1) Any roll of tobacco wrapped in paper or in any substance not containing tobacco; and
</P>
<P>(2) Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1) of this definition.
</P>
<P><I>Common or contract carrier.</I> A carrier holding a certificate of convenience and necessity, a permit for contract carrier by motor vehicle, or other valid operating authority under the Interstate Commerce Act, or under equivalent operating authority from a regulatory agency of the United States or of any State.
</P>
<P><I>Contraband cigarettes.</I> Any quantity of cigarettes in excess of 10,000, if:
</P>
<P>(1) The cigarettes bear no evidence that applicable state or local cigarette taxes in the state or locality where such cigarettes are found has been paid;
</P>
<P>(2) The state or local government in which the cigarettes are found requires a stamp, impression, or other indication to be placed on packages or other containers of cigarettes to evidence payment of cigarette taxes; and
</P>
<P>(3) The cigarettes are possessed by any person other than an exempted person.
</P>
<P><I>Contraband smokeless tobacco.</I> Any quantity of smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages, or their equivalent, that any person other than an exempted person possesses.
</P>
<P><I>Delivery sale.</I> Any sale of cigarettes or smokeless tobacco in interstate commerce to a consumer if:
</P>
<P>(1) The consumer submits the order for such sale by means of a telephone or other method of voice transmission, mail, the internet or other online service, or by any other means in which the consumer is not in the same physical location as the seller when the purchase or sales offer occurs; or
</P>
<P>(2) The cigarettes or smokeless tobacco are delivered through mail, common carrier, private delivery service, or any other means in which the consumer is not in the same physical location as the seller when the consumer physically obtains possession of the cigarettes or smokeless tobacco.
</P>
<P><I>Disposition.</I> The movement of cigarettes or smokeless tobacco from a person's business premises, wherever situated, by distribution.
</P>
<P><I>Distribute.</I> To sell, ship, issue, give, transfer, or otherwise dispose of.
</P>
<P><I>Distributor.</I> Any person who distributes more than 10,000 cigarettes, or 500 single-unit consumer-sized cans or packages of smokeless tobacco, in a single transaction.
</P>
<P><I>Exempted person.</I> An exempted person is:
</P>
<P>(1) With respect to cigarettes in excess of 10,000, any person who is:
</P>
<P>(i) Holding a permit issued pursuant to chapter 52 of the Internal Revenue Code of 1986 as a manufacturer of tobacco products or as an export warehouse proprietor;
</P>
<P>(ii) Operating a customs bonded warehouse pursuant to section 311 or section 555 of the Tariff Act of 1930 (19 U.S.C. 1311 or 1555);
</P>
<P>(iii) An agent of a tobacco products manufacturer, an export warehouse proprietor, or an operator of a customs bonded warehouse;
</P>
<P>(iv) A common or contract carrier transporting the cigarettes involved under a proper bill of lading or freight bill that states the cigarettes' quantity, source, and destination;
</P>
<P>(v) Licensed or otherwise authorized by the state in which the person possesses cigarettes to account for and pay cigarette taxes imposed by that state; and who has complied with the license or authorization's accounting and payment requirements with respect to the cigarettes involved;
</P>
<P>(vi) An officer, employee, or other agent of the United States or a state, or any department, agency, or instrumentality of the United States or a state (including any political subdivision of a state) possessing cigarettes in connection with performing official duties; or
</P>
<P>(vii) Operating within a foreign-trade zone established under 19 U.S.C. 81b, when the cigarettes involved have been entered into the zone under zone-restricted status or, in respect to foreign cigarettes, have been admitted into the zone but have not been entered into the United States.
</P>
<P>(2) With respect to smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages, any person who is:
</P>
<P>(i) Holding a permit issued pursuant to chapter 52 of the Internal Revenue Code of 1986 as a tobacco products manufacturer or as an export warehouse proprietor;
</P>
<P>(ii) Operating a customs bonded warehouse pursuant to section 311 or section 555 of the Tariff Act of 1930 (19 U.S.C. 1311 or 1555);
</P>
<P>(iii) An agent of a tobacco products manufacturer, an export warehouse proprietor, or a customs bonded warehouse operator;
</P>
<P>(iv) A common or contract carrier transporting the smokeless tobacco under a proper bill of lading or freight bill that states the smokeless tobacco's quantity, source, and destination;
</P>
<P>(v) Licensed or otherwise authorized by the state in which the person possesses smokeless tobacco to account for and pays smokeless tobacco taxes imposed by that state; and who has complied with the license or authorization's accounting and payment requirements with respect to the smokeless tobacco involved;
</P>
<P>(vi) An officer, employee, or agent of the United States or a state, or any department, agency, or instrumentality of the United States or a state (including any political subdivision of a state) possessing smokeless tobacco in connection with performing official duties; or
</P>
<P>(vii) Operating within a foreign-trade zone established under 19 U.S.C. 81b, when the smokeless tobacco involved has been entered into the zone under zone-restricted status or, in respect to foreign smokeless tobacco, has been admitted into the zone but has not been entered into the United States.
</P>
<P><I>Person.</I> Any individual, corporation, company, association, firm, partnership, society, or joint stock company. The term includes within the definition of “person” any business that operates at different locations that function under common control, as well as businesses that conduct commercial tobacco enterprises on tribal land.
</P>
<P><I>Retail purchaser.</I> With reference to a particular cigarettes or smokeless tobacco sale, a consumer who purchases cigarettes or smokeless tobacco in a face-to-face transaction in which the consumer is physically present at the business premises of the person making the sale; makes the order directly to the seller without using a telephone, mail, the internet, other online service, or other means of remote communication; and who physically obtains possession of the cigarettes or smokeless tobacco in the same physical location as the seller, not by having the cigarettes or smokeless tobacco delivered by mail, common carrier, or private delivery service.
</P>
<P><I>Smokeless tobacco.</I> Any finely cut, ground, powdered, or leaf tobacco that is intended to be placed in the oral or nasal cavity or otherwise consumed without being combusted.
</P>
<P><I>State.</I> A State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or the Virgin Islands.
</P>
<CITA TYPE="N">[45 FR 48612, July 21, 1980, as amended by T.D. ATF-472, 67 FR 8881, Feb. 27, 2002; ATF 2013R-9F, 79 FR 46694, Aug. 11, 2014; ATF 2006R-1F, 91 FR 25131, May 8, 2026]




</CITA>
</DIV8>

</DIV7>


<DIV7 N="32" NODE="27:3.0.1.4.6.0.32" TYPE="SUBJGRP">
<HEAD>Records and Reports</HEAD>


<DIV8 N="§ 646.146" NODE="27:3.0.1.4.6.0.32.4" TYPE="SECTION">
<HEAD>§ 646.146   General record-keeping and reporting requirements.</HEAD>
<P>(a) <I>Persons subject to record-keeping requirements.</I> Each person who distributes cigarettes or smokeless tobacco must keep copies of invoices, bills of lading, or other suitable commercial records equivalent thereto relating to each disposition of more than 10,000 cigarettes, or smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages. Dividing a single agreement for the disposition of more than 10,000 cigarettes, or smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages, into delivery of smaller components of 10,000 cigarettes or less, or smokeless tobacco of not more than 500 single-unit consumer-sized cans or packages, does not exempt persons from the record-keeping requirements of this part. Such distributors must include the information prescribed in § 646.147 in their commercial disposition records. Records persons generate in the ordinary course of business suffice to satisfy this section.
</P>
<P>(b) <I>Reporting requirements and persons subject to them.</I> (1) Except for a tribal government, each person who engages in a delivery sale, and who distributes cigarettes in excess of 10,000, or smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages, or their equivalent, within a single calendar month, must prepare and submit to the Director, ATF, a Tobacco Inventory and Direct Sales Report (“report”), in accordance with instructions on ATF's website, by the 10th day of the calendar month following the month in which the delivery or distribution occurred. The report must include the following information:
</P>
<P>(i) The person's beginning and ending inventories of cigarettes and cans or packages of smokeless tobacco (in total) for such month, including the cigarettes' or smokeless tobacco's manufacturer and brand family names, and the number of cigarettes or ounces of smokeless tobacco inventoried.
</P>
<P>(ii) The total quantity of cigarettes and cans or packages of smokeless tobacco—including the cigarettes' or smokeless tobacco's manufacturer and brand family names—the person received within such month from each other person (itemized by name and address).
</P>
<P>(iii) The total quantity of cigarettes and cans or packages of smokeless tobacco—including the cigarettes' or smokeless tobacco's manufacturer and brand family names—that the person disposed of within such month to each person (itemized by name and address) other than a retail purchaser.
</P>
<P>(2) Each person described in paragraph (b)(1) of this section must also submit a copy of each completed report to the attorneys general and the tax administrators of the States from where the deliveries or distributions both originated and concluded.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-[TBD])
</APPRO>
<CITA TYPE="N">[ATF 2006R-1F, 91 FR 25132, May 8, 2026]




</CITA>
</DIV8>


<DIV8 N="§ 646.147" NODE="27:3.0.1.4.6.0.32.5" TYPE="SECTION">
<HEAD>§ 646.147   Required record-keeping information.</HEAD>
<P>(a) <I>Distributors who are exempted persons.</I> Distributors who are exempted persons as defined in § 646.143 must show the following information in their commercial records:
</P>
<P>(1) For each disposition of more than 10,000 cigarettes, or 500 single-unit consumer-sized cans or packages of smokeless tobacco, to an exempted person; or for each disposition of more than 10,000 cigarettes, or 500 single-unit consumer-sized cans or packages of smokeless tobacco, to a person who is not an exempted person, which is delivered by the distributor to the recipient's place of business, the distributor must show on dated records—
</P>
<P>(i) The full name of the purchaser (or the recipient if there is no purchaser);
</P>
<P>(ii) The street address (including city and State) to which the cigarettes or smokeless tobacco are destined; and
</P>
<P>(iii) The quantity of cigarettes or smokeless tobacco disposed of.
</P>
<P>(2) For each disposition of more than 10,000 cigarettes, or 500 single-unit consumer-sized cans or packages of smokeless tobacco, other than the dispositions specified in paragraph (a)(1) of this section, the distributor must show on dated records—
</P>
<P>(i) The full name of the purchaser (if any);
</P>
<P>(ii) The name, address (including city and state), and signature of the person receiving the cigarettes or smokeless tobacco;
</P>
<P>(iii) The street address (including city and state) to which the cigarettes or smokeless tobacco are destined;
</P>
<P>(iv) The quantity of cigarettes or smokeless tobacco disposed of;
</P>
<P>(v) The driver's license number of the individual receiving the cigarettes or smokeless tobacco;
</P>
<P>(vi) The license number of the vehicle in which the cigarettes or smokeless tobacco are removed from the distributor's business premises;
</P>
<P>(vii) A declaration by the individual receiving the cigarettes or smokeless tobacco of the specific purpose for the items (such as personal use, resale, delivery to another person, etc.); and
</P>
<P>(viii) A declaration, by the person receiving the cigarettes or smokeless tobacco when acting as an agent, of the name and address of their principal.
</P>
<P>(b) <I>Distributors who are not exempted persons.</I> Each distributor who is not an exempted person as defined in § 646.143 must show on dated commercial records the information specified in paragraphs (a)(2)(i) through (viii) of this section for each disposition of more than 10,000 cigarettes or 500 single-unit consumer-sized cans or packages of smokeless tobacco.
</P>
<APPRO TYPE="N">(Approved by the Office of Management and Budget under control number 1140-[TBD]
</APPRO>
<CITA TYPE="N">[ATF 2006R-1F, 91 FR 25132, May 8, 2026]


</CITA>
</DIV8>


<DIV8 N="§ 646.150" NODE="27:3.0.1.4.6.0.32.6" TYPE="SECTION">
<HEAD>§ 646.150   Retaining records.</HEAD>
<P>(a) <I>General.</I> Each distributor that distributes more than 10,000 cigarettes, or 500 single-unit consumer-sized cans or packages of smokeless tobacco in a single transaction must retain the records required by §§ 646.146 and 646.147 for five years following the close of the year in which the records are made. Such distributors must keep the required records on their business premises (or otherwise make the records available from the business premises) and may keep them in electronic form. If storing records electronically, the distributors must maintain an electronic record-keeping system, including stored information, on their business premises or remotely, using a server located within the United States or its territories, or, if using a host facility, the facility must have a business premises within the United States or its territories that is subject to U.S. legal process. The distributors must also ensure that ATF can access the electronic records on the premises by request.
</P>
<P>(b) <I>Shorter retention periods.</I> The appropriate ATF officer may, pursuant to an application submitted by a distributor, approve a shorter retention period where—
</P>
<P>(1) The distributor requesting the shorter retention period is an agent of a tobacco products manufacturer;
</P>
<P>(2) The tobacco products manufacturer will retain the required record for each disposition of more than 10,000 cigarettes, or 500 single-unit consumer-sized cans or packages of smokeless tobacco, from the agent's premises for the full retention period specified in paragraph (a) of this section; and
</P>
<P>(3) The approval of a shorter retention period will not unduly hinder the administration of enforcement of this subpart.
</P>
<P>(c) <I>Application requirements.</I> Each distributor proposing to employ a shorter retention period shall submit a written application, in duplicate, to the appropriate ATF officer. A distributor may not employ a shorter retention period until approval is received from the appropriate ATF officer. Each application should indicate the duration of the proposed retention period and should include the information required by paragraph (b) of this section.
</P>
<CITA TYPE="N">[45 FR 48612, July 21, 1980, as amended by T.D. ATF-472, 67 FR 8880, 8881, Feb. 27, 2002; ATF 2006R-1F, 91 FR 25133, May 8, 2026]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="33" NODE="27:3.0.1.4.6.0.33" TYPE="SUBJGRP">
<HEAD>Other Provisions Relating to Distributing Cigarettes and Smokeless Tobacco</HEAD>


<DIV8 N="§ 646.153" NODE="27:3.0.1.4.6.0.33.7" TYPE="SECTION">
<HEAD>§ 646.153   Authority of appropriate ATF officers to enter business premises.</HEAD>
<P>Any ATF officer may, during normal business hours, enter the business premises of any person described in § 646.146 to inspect the records required under §§ 646.146 and 646.147, or to inspect any cigarettes or smokeless tobacco kept or stored by the person at the premises.
</P>
<CITA TYPE="N">[ATF 2006R-1F, 91 FR 25133, May 8, 2026]


</CITA>
</DIV8>

</DIV7>


<DIV7 N="34" NODE="27:3.0.1.4.6.0.34" TYPE="SUBJGRP">
<HEAD>Penalties and Forfeitures</HEAD>


<DIV8 N="§ 646.154" NODE="27:3.0.1.4.6.0.34.8" TYPE="SECTION">
<HEAD>§ 646.154   Penalties.</HEAD>
<P>(a) Any person who knowingly ships, transports, receives, possesses, sells, distributes, or purchases contraband cigarettes or contraband smokeless tobacco shall be fined not more than $100,000 or imprisoned not more than five years, or both.
</P>
<P>(b) Any person who knowingly violates any regulation contained in this part or makes any false statement or misrepresentation with respect to the information required to be recorded by this part shall be fined not more than $5,000 or imprisoned not more than three years, or both.
</P>
<CITA TYPE="N">[45 FR 48612, July 21, 1980, as amended by ATF 2006R-1F, 91 FR 25133, May 8, 2026]




</CITA>
</DIV8>


<DIV8 N="§ 646.155" NODE="27:3.0.1.4.6.0.34.9" TYPE="SECTION">
<HEAD>§ 646.155   Forfeitures.</HEAD>
<P>(a) Any contraband cigarettes or contraband smokeless tobacco involved in any violation of the provisions of 18 U.S.C. chapter 114 are subject to seizure and forfeiture. The provisions of 18 U.S.C. chapter 46 relating to civil forfeitures extend to any seizure or civil forfeiture under this section. Any cigarettes or smokeless tobacco so seized and forfeited must be either—
</P>
<P>(1) Destroyed and not resold; or
</P>
<P>(2) Used for undercover investigative operations for detecting and prosecuting crimes, and then destroyed and not resold.
</P>
<P>(b) Any vessel, vehicle, or aircraft used to transport, carry, convey, conceal, or possess any contraband cigarettes or contraband smokeless tobacco with respect to which there has been committed any violation of any provision of 18 U.S.C. chapter 114 or the regulations in this part is subject to seizure and forfeiture pursuant to 49 U.S.C. 80302-03. The provisions of 18 U.S.C. chapter 46 relating to civil forfeitures extend to any seizure or civil forfeiture under this section.
</P>
<CITA TYPE="N">[ATF 2006R-1F, 91 FR 25133, May 8, 2026]






</CITA>
</DIV8>

</DIV7>

</DIV5>


<DIV5 N="647-699" NODE="27:3.0.1.4.7" TYPE="PART">
<HEAD>PARTS 647-699 [RESERVED]


</HEAD>
</DIV5>

</DIV4>


<DIV4 N="E" NODE="27:3.0.1.5" TYPE="SUBCHAP">
<HEAD>SUBCHAPTER E—EXPLOSIVE LICENSE AND PERMIT PROCEEDINGS
</HEAD>

<DIV5 N="700-770" NODE="27:3.0.1.5.8" TYPE="PART">
<HEAD>PARTS 700-770 [RESERVED]


</HEAD>
</DIV5>


<DIV5 N="771" NODE="27:3.0.1.5.9" TYPE="PART">
<HEAD>PART 771—RULES OF PRACTICE IN EXPLOSIVE LICENSE AND PERMIT PROCEEDINGS


</HEAD>
<AUTH>
<HED>Authority:</HED><PSPACE>18 U.S.C. 843, 847.
</PSPACE></AUTH>
<SOURCE>
<HED>Source:</HED><PSPACE>84 FR 64744, Nov. 25, 2019, unless otherwise noted.


</PSPACE></SOURCE>

<DIV6 N="A" NODE="27:3.0.1.5.9.1" TYPE="SUBPART">
<HEAD>Subpart A—Scope and Construction of Regulations</HEAD>


<DIV8 N="§ 771.1" NODE="27:3.0.1.5.9.1.51.1" TYPE="SECTION">
<HEAD>§ 771.1   Scope of part.</HEAD>
<P>Regulations in this part govern procedures and practices for disapproving applications for licenses and permits and denying renewal of or revocation of such licenses or permits under 18 U.S.C. chapter 40.


</P>
</DIV8>


<DIV8 N="§ 771.2" NODE="27:3.0.1.5.9.1.51.2" TYPE="SECTION">
<HEAD>§ 771.2   Liberal construction.</HEAD>
<P>Regulations in this part shall be liberally construed to secure just, expeditious, and efficient determination of the issues presented. The Rules of Civil Procedure for the U.S. District Courts (28 U.S.C. appendix) are not controlling, but may act as a guide in any situation not provided for or controlled by this part and shall be liberally construed or relaxed when necessary.


</P>
</DIV8>


<DIV8 N="§ 771.3" NODE="27:3.0.1.5.9.1.51.3" TYPE="SECTION">
<HEAD>§ 771.3   Forms prescribed.</HEAD>
<P>(a) The Director is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part.
</P>
<P>(b) Requests for forms should be made to the ATF Distribution Center or through the ATF website at <I>http://www.atf.gov</I>.


</P>
</DIV8>

</DIV6>


<DIV6 N="B" NODE="27:3.0.1.5.9.2" TYPE="SUBPART">
<HEAD>Subpart B—Definitions</HEAD>


<DIV8 N="§ 771.5" NODE="27:3.0.1.5.9.2.51.1" TYPE="SECTION">
<HEAD>§ 771.5   Meaning of terms.</HEAD>
<P>When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning provided in this subpart. Words in the plural form shall include the singular, and <I>vice versa,</I> and words importing the masculine gender shall include the feminine.
</P>
<P><I>Administrative law judge.</I> The person appointed pursuant to 5 U.S.C. 3105, designated to preside over any administrative proceedings under this part.
</P>
<P><I>Applicant.</I> Any person who has filed an application for a license or permit under 18 U.S.C. chapter 40.
</P>
<P><I>Application.</I> Any application for a license or permit, including renewal applications, under 18 U.S.C. chapter 40.
</P>
<P><I>ATF.</I> The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice.
</P>
<P><I>Attorney for the Government.</I> An attorney in the ATF Office of Chief Counsel authorized to represent the Director of Industry Operations in the proceeding.
</P>
<P><I>CFR.</I> The Code of Federal Regulations.
</P>
<P><I>Contemplated notice.</I> Includes any notice contemplating the revocation or denial of renewal of a license or permit.
</P>
<P><I>Director.</I> The Director, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice.
</P>
<P><I>Director of Industry Operations.</I> The principal ATF official in a Field Operations division responsible for administering regulations in this part.
</P>
<P><I>Ex parte communication.</I> An oral or written communication not on the public record with respect to which reasonable prior notice to all parties is not given, but not including requests for status reports.
</P>
<P><I>Initial decision.</I> The decision of the Director of Industry Operations in a proceeding concerning the revocation of, denial of renewal of, or denial of application for a license or permit. This decision becomes the agency's final decision in the absence of an appeal.
</P>
<P><I>Final decision.</I> The definitive decision of ATF, <I>e.g.,</I> the agency's decision in the absence of an appeal or the Director's decision following an appeal to the Director.
</P>
<P><I>License.</I> Subject to applicable law, entitles the licensee to transport, ship, and receive explosive materials in interstate or foreign commerce, and to engage in the business specified by the license, at the location described on the license.
</P>
<P><I>Licensee.</I> Any importer, manufacturer, or dealer licensed under the provisions of 18 U.S.C. chapter 40 and 27 CFR part 555.
</P>
<P><I>Limited permit.</I> A permit issued to a person authorizing him to receive for his use explosive materials from a licensee or permittee in his State of residence on no more than six occasions during the 12-month period in which the permit is valid. A limited permit does not authorize the receipt or transportation of explosive materials in interstate or foreign commerce.
</P>
<P><I>Other term.</I> Any other term defined in the Federal explosives laws (18 U.S.C. chapter 40), the regulations promulgated thereunder (27 CFR part 555), or the Administrative Procedure Act (5 U.S.C. 551 <I>et seq.</I>), where used in this part, shall have the meaning assigned to it therein.
</P>
<P><I>Permittee.</I> Any user of explosives for a lawful purpose who has obtained either a user permit or a limited permit under 18 U.S.C. chapter 40 and 27 CFR part 555.
</P>
<P><I>Person.</I> Any individual, corporation, company, association, firm, partnership, society, or joint stock company.
</P>
<P><I>Recommended decision.</I> The advisory decision of the administrative law judge in any proceeding regarding the revocation of, denial of renewal of, or denial of application for a license or permit. ATF must act on a recommended decision with its own initial or final decision.
</P>
<P><I>User-limited permit.</I> A user permit valid only for a single purchase transaction. Recipients of a user-limited permit must obtain a new permit for any subsequent purchase transaction.
</P>
<P><I>User permit.</I> A permit issued to a person authorizing him to—
</P>
<P>(1) Acquire for his own use explosive materials from a licensee in a State other than the State in which he resides or from a foreign country; and
</P>
<P>(2) Transport explosive materials in interstate or foreign commerce.
</P>
<P><I>Willfulness.</I> The plain indifference to, or purposeful disregard of, a known legal duty. Willfulness may be demonstrated by, but does not require, repeat violations involving a known legal duty.


</P>
</DIV8>

</DIV6>


<DIV6 N="C" NODE="27:3.0.1.5.9.3" TYPE="SUBPART">
<HEAD>Subpart C—General</HEAD>


<DIV8 N="§ 771.25" NODE="27:3.0.1.5.9.3.51.1" TYPE="SECTION">
<HEAD>§ 771.25   Communications and pleadings.</HEAD>
<P>(a) All communications to the Government regarding the procedures set forth in this part and all pleadings, such as answers, motions, requests, or other papers or documents required or permitted to be filed under this part, relating to a proceeding pending before an administrative law judge, shall be addressed to the administrative law judge at his post of duty and the Attorney for the Government. Communications concerning proceedings not pending before an administrative law judge should be addressed to the Director of Industry Operations or Director, as the case may be.
</P>
<P>(b) Except to the extent required for the disposition of ex parte matters as authorized by law, no ex parte communications shall be made to or from the administrative law judge concerning the merits of the adjudication. If the administrative law judge receives or makes an ex parte communication not authorized by law, the administrative law judge shall place on the record of the proceeding:
</P>
<P>(1) All such written communications;
</P>
<P>(2) Memoranda stating the substance of all such oral communications; and
</P>
<P>(3) All written responses and memoranda stating the substance of all oral responses to paragraphs (b)(1) and (2) of this section.


</P>
</DIV8>


<DIV8 N="§ 771.26" NODE="27:3.0.1.5.9.3.51.2" TYPE="SECTION">
<HEAD>§ 771.26   Service on applicant, licensee, or permittee.</HEAD>
<P>All orders, notices, motions, and other formal documents required to be served under the regulations in this part may be served by mailing a signed, original copy thereof to the designated representative of the applicant, licensee, or permittee by certified mail, with request for return receipt card, at the representative's business address, by personal service, or as otherwise agreed to by the parties. If the applicant, licensee, or permittee has not yet designated a representative, all orders, notices, motions, and other formal documents required to be served under the regulations in this part may be served by mailing a signed, original copy thereof to the applicant, licensee, or permittee at the address stated on his application, license, or permit, or at his last known address, or by delivery of such original copy to the applicant, licensee, or permittee personally, or in the case of a corporation, partnership, or other unincorporated association, by delivering the same to an officer, or manager, or general agent thereof, or to its attorney of record. Such personal service may be made by any employee of the Department of Justice designated by the Attorney General or by any employee of ATF. A certificate of mailing and the return receipt card, or certificate of service signed by the person making such service, shall be filed as a part of the record.


</P>
</DIV8>


<DIV8 N="§ 771.27" NODE="27:3.0.1.5.9.3.51.3" TYPE="SECTION">
<HEAD>§ 771.27   Service on the Director of Industry Operations or Director.</HEAD>
<P>Pleadings, motions, notices, and other formal documents may be served by certified mail, by personal service, or as otherwise agreed to by the parties, on the Director of Industry Operations (or upon the Attorney for the Government on behalf of the Director of Industry Operations), or on the Director, if the proceeding is before him for review on appeal.


</P>
</DIV8>


<DIV7 N="51" NODE="27:3.0.1.5.9.3.51" TYPE="SUBJGRP">
<HEAD>Time</HEAD>


<DIV8 N="§ 771.28" NODE="27:3.0.1.5.9.3.51.4" TYPE="SECTION">
<HEAD>§ 771.28   Computation.</HEAD>
<P>In computing any period of time prescribed or allowed by this part, the day of the act, event, or default after which the designated period of time is to run is not to be included. The last day of the period to be computed is to be included, unless it is a Saturday, Sunday, or Federal holiday, in which event the period runs until the next day that is not a Saturday, Sunday, or Federal holiday. Pleadings, requests, or other papers or documents required or permitted to be filed under this part must be received for filing at the appropriate office within the time limits, if any, for such filing.


</P>
</DIV8>


<DIV8 N="§ 771.29" NODE="27:3.0.1.5.9.3.51.5" TYPE="SECTION">
<HEAD>§ 771.29   Continuances and extensions.</HEAD>
<P>For good cause shown, the administrative law judge, Director, or Director of Industry Operations, as the case may be, may grant continuances and, as to all matters pending before him, extend any time limit prescribed by the regulations in this part (except where the time limit is statutory).


</P>
</DIV8>

</DIV7>


<DIV7 N="52" NODE="27:3.0.1.5.9.3.52" TYPE="SUBJGRP">
<HEAD>Representation at Hearings</HEAD>


<DIV8 N="§ 771.30" NODE="27:3.0.1.5.9.3.52.6" TYPE="SECTION">
<HEAD>§ 771.30   Personal representation.</HEAD>
<P>Any individual or member of a partnership may appear for himself, or for such partnership, and a corporation or association may be represented by a bona fide officer of such corporation or association, upon showing of adequate authorization.


</P>
</DIV8>


<DIV8 N="§ 771.31" NODE="27:3.0.1.5.9.3.52.7" TYPE="SECTION">
<HEAD>§ 771.31   Attorneys and other representatives.</HEAD>
<P>An applicant, licensee, or permittee may represent himself, or be represented by an attorney, a certified public accountant, or any other person, specifically designated in a duly executed power of attorney that shall be filed in the proceeding by the applicant, licensee, or permittee. The applicant, licensee, or permittee shall file waivers, if applicable, under the Privacy Act of 1974 and 26 U.S.C. 6103(c) (confidentiality and disclosure of returns and return information). The Director of Industry Operations may be represented in proceedings by an attorney in the Office of Chief Counsel who is authorized to execute and file motions, briefs, and other papers in the proceeding on behalf of the Director of Industry Operations, in the attorney's own name as “Attorney for the Government.”


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="D" NODE="27:3.0.1.5.9.4" TYPE="SUBPART">
<HEAD>Subpart D—Compliance and Settlement</HEAD>


<DIV8 N="§ 771.35" NODE="27:3.0.1.5.9.4.53.1" TYPE="SECTION">
<HEAD>§ 771.35   Opportunity for compliance.</HEAD>
<P>No license or permit shall be revoked or denied renewal unless, prior to the institution of proceedings, facts or conduct warranting such action shall have been called to the attention of the licensee or permittee by the Director of Industry Operations in writing in a contemplated notice, and the licensee or permittee shall have been accorded an opportunity to demonstrate or achieve compliance with all lawful requirements as set forth in section 9(b) of the Administrative Procedure Act. In cases in which the Director of Industry Operations alleges in his contemplated notice, with supporting reasons, willful violations or that the public interest requires otherwise, this section does not apply and the issuance of a contemplated notice is unnecessary.


</P>
</DIV8>


<DIV8 N="§ 771.36" NODE="27:3.0.1.5.9.4.53.2" TYPE="SECTION">
<HEAD>§ 771.36   Settlement.</HEAD>
<P>Any proposals of settlement should be made to the Director of Industry Operations, but may be made through the Attorney for the Government. Where necessary, the date of the hearing may be postponed pending consideration of such proposals when they are made in good faith and not for the purpose of delay. If proposals of settlement are submitted, and they are considered unsatisfactory, the Director of Industry Operations may reject the proposals and may, either directly or through the Attorney for the Government, inform the licensee or permittee of any conditions on which the alleged violations may be settled. If the proposals of settlement are considered satisfactory to the Director of Industry Operations, the licensee or permittee shall be notified thereof and the proceeding shall be dismissed.


</P>
</DIV8>


<DIV8 N="§ 771.37" NODE="27:3.0.1.5.9.4.53.3" TYPE="SECTION">
<HEAD>§ 771.37   Notice of contemplated action.</HEAD>
<P>Where the Director of Industry Operations has not ascertained whether the licensee or permittee has willfully violated the Federal explosives laws and where he believes the matter has the potential to be settled informally, <I>i.e.,</I> without formal administrative proceedings, he shall, in accordance with section 5(b) of the Administrative Procedure Act, prior to the issuance of a notice of revocation or denial of renewal, give the licensee or permittee a contemplated notice of such action and an opportunity to show why the license or permit should not be revoked or denied renewal. The notice should inform the licensee or permittee of the charges on which the notice would be based, if issued, and afford him a period of 15 days from the date of the notice, or such longer period as the Director of Industry Operations deems necessary, in which to submit proposals of settlement to the Director of Industry Operations. Where informal settlement is not reached promptly because of inaction by the applicant, licensee, or permittee or proposals are made for the purpose of delay, a notice shall be issued in accordance with § 771.42 or § 771.43, as appropriate. The issuance of a notice of contemplated action does not entitle the recipient to a hearing before an administrative law judge.


</P>
</DIV8>


<DIV8 N="§ 771.38" NODE="27:3.0.1.5.9.4.53.4" TYPE="SECTION">
<HEAD>§ 771.38   Licensee's or permittee's failure to meet requirements within reasonable time.</HEAD>
<P>If the licensee or permittee fails to meet the requirements of applicable laws and regulations in this part within such reasonable time as may be specified by the Director of Industry Operations, proceedings for revocation or denial of renewal of the license or permit shall be initiated.


</P>
</DIV8>


<DIV8 N="§ 771.39" NODE="27:3.0.1.5.9.4.53.5" TYPE="SECTION">
<HEAD>§ 771.39   Authority of Director of Industry Operations to proceed with revocation or denial action.</HEAD>
<P>Where the evidence is conclusive and the nature of the violation is such as to preclude any settlement, the violation is of a continuing character that necessitates immediate action to protect the public interest, or the Director of Industry Operations believes that any informal settlement of the alleged violation will not ensure future compliance with applicable laws and regulations in this part, or in any similar case where the circumstances are such as to clearly preclude informal settlement, and the Director of Industry Operations so finds and states the reasons therefor in the notice, the Director of Industry Operations may proceed with the revocation or denial of renewal.


</P>
</DIV8>

</DIV6>


<DIV6 N="E" NODE="27:3.0.1.5.9.5" TYPE="SUBPART">
<HEAD>Subpart E—Revocation or Denial</HEAD>


<DIV8 N="§ 771.40" NODE="27:3.0.1.5.9.5.53.1" TYPE="SECTION">
<HEAD>§ 771.40   Denial of initial application.</HEAD>
<P>Whenever the Director of Industry Operations has reason to believe that an applicant for an original license or permit is not eligible to receive a license or permit under the provisions of § 555.49 of this chapter, the Director of Industry Operations shall issue a notice of denial on ATF Form 5400.11 (Notice of Denial of Application for License or Permit) (F 5400.11). The notice will set forth the matters of fact and law relied upon in determining that the application should be denied and will afford the applicant 15 days from the date of receipt of the notice in which to request a hearing to review the denial. If no request for a hearing is filed within that time, a copy of the application, marked “Disapproved,” will be returned to the applicant.


</P>
</DIV8>


<DIV8 N="§ 771.41" NODE="27:3.0.1.5.9.5.53.2" TYPE="SECTION">
<HEAD>§ 771.41   Denial of renewal application or revocation of license or permit.</HEAD>
<P>If, following the opportunity for compliance under § 555.71 of this chapter, or without opportunity for compliance under § 555.71 of this chapter as circumstances warrant, the Director of Industry Operations finds that the licensee or permittee is not likely to comply with applicable laws or regulations in this part or is otherwise not eligible to continue operations authorized under his license or permit, the Director of Industry Operations shall issue a notice of denial of the renewal application or revocation of the license or permit, ATF F 5400.11 (Notice of Denial of Application for License or Permit) or ATF Form 5400.10 (Notice of Revocation of License or Permit) (F 5400.10), as appropriate. The notice will set forth the matters of fact constituting the violations specified, dates, places, and the sections of law and regulations violated. In the case of the revocation of a license or permit, the notice will specify the date on which the action is effective, which date will be on or after the date the notice is served on the licensee or permittee. The notice will also advise the licensee or permittee that he may, within 15 days after receipt of the notice, request a hearing and, if applicable, a stay of the effective date of the revocation of his license or permit.


</P>
</DIV8>


<DIV8 N="§ 771.42" NODE="27:3.0.1.5.9.5.53.3" TYPE="SECTION">
<HEAD>§ 771.42   Grounds for revocation of licenses or permits.</HEAD>
<P>Whenever the Director of Industry Operations has reason to believe that any holder of a license or permit has willfully violated any provision of 18 U.S.C. chapter 40 or 27 CFR part 555 or has become ineligible to continue operations authorized under the license or permit, the Director of Industry Operations shall issue a notice for the revocation of such license or permit, as the case may be.


</P>
</DIV8>


<DIV8 N="§ 771.43" NODE="27:3.0.1.5.9.5.53.4" TYPE="SECTION">
<HEAD>§ 771.43   Grounds for denial of applications for licenses or permits.</HEAD>
<P>If, upon examination of any application (including a renewal application) for a license or permit, the Director of Industry Operations has reason to believe that the applicant is not entitled to such license or permit, the Director of Industry Operations shall issue a denial of the application. An applicant is not eligible for a license or permit if he fails to meet the requirements of 18 U.S.C. 843(b) and § 555.49 of this chapter.


</P>
</DIV8>

</DIV6>


<DIV6 N="F" NODE="27:3.0.1.5.9.6" TYPE="SUBPART">
<HEAD>Subpart F—Hearing Procedure</HEAD>


<DIV7 N="53" NODE="27:3.0.1.5.9.6.53" TYPE="SUBJGRP">
<HEAD>Notices</HEAD>


<DIV8 N="§ 771.55" NODE="27:3.0.1.5.9.6.53.1" TYPE="SECTION">
<HEAD>§ 771.55   Content.</HEAD>
<P>(a) Notices for the revocation or denial of renewal of a license or permit shall be promptly issued by the Director of Industry Operations and shall set forth:
</P>
<P>(1) The sections of law and regulations relied upon for authority and jurisdiction;
</P>
<P>(2) The specific grounds upon which the revocation or denial is based, <I>i.e.,</I> the matters of fact constituting the violations specified, dates, places, and sections of law and regulations violated;
</P>
<P>(3) In the case of a revocation, the date on which the action is effective; and
</P>
<P>(4) That the licensee or permittee has 15 days from receipt of the notice within which to request a hearing before an administrative law judge.
</P>
<P>(b) Notices for the denial of an initial application for a license or permit shall set forth:
</P>
<P>(1) The sections of law and regulations relied upon for authority and jurisdiction;
</P>
<P>(2) The specific grounds upon which the denial is based, <I>i.e.,</I> the matters of fact and law relied upon for the disapproval of the application; and
</P>
<P>(3) That the application will be disapproved unless a hearing is requested within 15 days from receipt of the notice.


</P>
</DIV8>


<DIV8 N="§ 771.56" NODE="27:3.0.1.5.9.6.53.2" TYPE="SECTION">
<HEAD>§ 771.56   Forms.</HEAD>
<P>Notices shall be issued on the following forms:
</P>
<P>(a) ATF Form 5400.9, “Order After Denial or Revocation Hearing,” for all revocations or denials of renewal of licenses or permits pursuant to 18 U.S.C. chapter 40 after a hearing has been held and a Recommended Decision has been issued by the administrative law judge;
</P>
<P>(b) Form 5400.10, “Notice of Revocation for License or Permit,” for all revocations of licenses or permits pursuant to 18 U.S.C. chapter 40, except as provided for in paragraph (a) of this section;
</P>
<P>(c) Form 5400.11, “Notice of Denial of Application for License or Permit,” for the denial of renewal or original applications for licenses or permits pursuant to 18 U.S.C. chapter 40, except as provided for in paragraph (a) of this section;
</P>
<P>(d) Form 5400.12, “Notice of Contemplated Denial or Revocation of License or Permit,” for the contemplated revocation or denial of renewal application of licenses or permits pursuant to 18 U.S.C. chapter 40; or
</P>
<P>(e) Such other forms as the Director may prescribe.


</P>
</DIV8>


<DIV8 N="§ 771.57" NODE="27:3.0.1.5.9.6.53.3" TYPE="SECTION">
<HEAD>§ 771.57   Execution and disposition.</HEAD>
<P>A signed original of the applicable form shall be served on the licensee or permittee. If a hearing is requested, a copy shall be sent to the administrative law judge designated to conduct the hearing. Any remaining copies shall be retained for the office of the Director of Industry Operations.


</P>
</DIV8>


<DIV8 N="§ 771.58" NODE="27:3.0.1.5.9.6.53.4" TYPE="SECTION">
<HEAD>§ 771.58   Designated place of hearing.</HEAD>
<P>The designated place of hearing shall be determined by the administrative law judge, taking into consideration the convenience and necessity of the parties and their representatives.


</P>
</DIV8>

</DIV7>


<DIV7 N="54" NODE="27:3.0.1.5.9.6.54" TYPE="SUBJGRP">
<HEAD>Request for Hearing</HEAD>


<DIV8 N="§ 771.59" NODE="27:3.0.1.5.9.6.54.5" TYPE="SECTION">
<HEAD>§ 771.59   Initial application proceedings.</HEAD>
<P>(a) If the applicant for an initial license or permit desires a hearing, he shall file a request in writing with the Director of Industry Operations within 15 days after receipt of notice of the disapproval, in whole or in part, of the application.
</P>
<P>(b) On receipt of the request, the Director of Industry Operations shall forward a copy of the request, together with a copy of the notice, to the Office of Chief Counsel for the assignment of an administrative law judge.
</P>
<P>(c) After the Office of Chief Counsel notifies the Director of Industry Operations or the Attorney for the Government of the assignment of an administrative law judge, the Director of Industry Operations shall notify the licensee or permittee of the assignment, if the administrative law judge has not already done so.


</P>
</DIV8>


<DIV8 N="§ 771.60" NODE="27:3.0.1.5.9.6.54.6" TYPE="SECTION">
<HEAD>§ 771.60   Revocation or denial of renewal proceedings.</HEAD>
<P>(a) If the licensee or permittee desires a hearing, he shall file a request, in writing, with the Director of Industry Operations within 15 days after receipt of the notice or within such time as the Director of Industry Operations may allow.
</P>
<P>(b) Where a licensee or permittee requests a hearing, the Director of Industry Operations shall forward a copy of the request, together with a copy of the notice, to the Office of Chief Counsel for the assignment of an administrative law judge.
</P>
<P>(c) After the Office of Chief Counsel notifies the Director of Industry Operations or the Attorney for the Government of the assignment of an administrative law judge, the Director of Industry Operations shall notify the licensee or permittee of the assignment, if the administrative law judge has not already done so.
</P>
<P>(d) In the case of a revocation, a licensee or permittee may include a request for a stay of the effective date of revocation with the request for a hearing.
</P>
<P>(e) On receipt of a request for a stay of the effective date of a revocation, the Director of Industry Operations shall timely advise the licensee or permittee whether the stay is granted.
</P>
<P>(1) If the stay is granted, the matter shall be referred to an administrative law judge pursuant to paragraph (b) of this section.
</P>
<P>(2) If the stay is denied, the licensee or permittee may request an immediate hearing. In this event, the Director of Industry Operations shall immediately refer the matter to the Office of Chief Counsel for the assignment of an administrative law judge, who shall set a date and place for hearing, which date shall be no later than 10 days from the date the licensee or permittee requested the immediate hearing.


</P>
</DIV8>


<DIV8 N="§ 771.61" NODE="27:3.0.1.5.9.6.54.7" TYPE="SECTION">
<HEAD>§ 771.61   Notice of hearing.</HEAD>
<P>Once a request for a hearing has been referred to the administrative law judge, the administrative law judge shall set a time and place for a hearing and shall serve notice thereof upon the parties at least 10 days in advance of the hearing date.


</P>
</DIV8>

</DIV7>


<DIV7 N="55" NODE="27:3.0.1.5.9.6.55" TYPE="SUBJGRP">
<HEAD>Non-Request for Hearing</HEAD>


<DIV8 N="§ 771.62" NODE="27:3.0.1.5.9.6.55.8" TYPE="SECTION">
<HEAD>§ 771.62   Initial application.</HEAD>
<P>In the case of an initial application, if the applicant does not request a hearing within 15 days, or within such additional time as the Director of Industry Operations may in his discretion allow, the Director of Industry Operations will return a copy of the application, marked “Disapproved,” to the applicant, accompanied by a brief statement including the findings upon which the denial is based.


</P>
</DIV8>


<DIV8 N="§ 771.63" NODE="27:3.0.1.5.9.6.55.9" TYPE="SECTION">
<HEAD>§ 771.63   Revocation or denial of renewal.</HEAD>
<P>In the case of a revocation or denial of renewal of an application, if the licensee or permittee does not request a hearing within 15 days, or within such additional time as the Director of Industry Operations may in his discretion allow, the Director of Industry Operations shall make the initial decision in the case pursuant to § 771.78(b).


</P>
</DIV8>

</DIV7>


<DIV7 N="56" NODE="27:3.0.1.5.9.6.56" TYPE="SUBJGRP">
<HEAD>Responses to Notices</HEAD>


<DIV8 N="§ 771.64" NODE="27:3.0.1.5.9.6.56.10" TYPE="SECTION">
<HEAD>§ 771.64   Answers.</HEAD>
<P>(a) Where the licensee or permittee requests a hearing in accordance with §§ 771.59 and 771.60, a written response to the relevant notice may be filed with the administrative law judge and served on the Director of Industry Operations within 15 days after the licensee or permittee receives service of the designation of the administrative law judge.
</P>
<P>(b) Where no hearing is requested, the licensee or permittee may file a written answer to the relevant notice with the Director of Industry Operations within 15 days after service of the notice.
</P>
<P>(c) An answer shall contain a concise statement of the facts that constitute the grounds for defense. A hearing, if requested, may be limited to the issues contained in the notice and the answer. The administrative law judge or Director of Industry Operations, as the case may be, may, as a matter of discretion, waive any requirement of this section.
</P>
<P>(d) Answers need not be filed in initial application proceedings.


</P>
</DIV8>


<DIV8 N="§ 771.65" NODE="27:3.0.1.5.9.6.56.11" TYPE="SECTION">
<HEAD>§ 771.65   Responses admitting facts.</HEAD>
<P>If the licensee or permittee desires to waive the hearing on the allegations of fact set forth in the notice and does not contest the facts, the answer may consist of a statement that the licensee or permittee admits all material allegations of fact charged in the notice to be true. The Director of Industry Operations shall base the decision on the notice and such answer, although such an answer shall not affect the licensee's or permittee's right to submit proposed findings of fact and conclusions of law or right to appeal.


</P>
</DIV8>


<DIV8 N="§ 771.66" NODE="27:3.0.1.5.9.6.56.12" TYPE="SECTION">
<HEAD>§ 771.66   Initial conferences.</HEAD>
<P>(a) In any proceeding, the administrative law judge, upon his own motion or upon the motion of one of the parties or their qualified representatives, may in the administrative law judge's discretion direct the parties or their qualified representatives to appear at a specified time and place for a conference to consider:
</P>
<P>(1) Simplification of the issues;
</P>
<P>(2) The necessity of amendments to the pleadings;
</P>
<P>(3) The possibility of obtaining stipulations, admissions of facts, and documents;
</P>
<P>(4) The possibility of both parties exchanging information or scheduling discovery;
</P>
<P>(5) A date on which both parties will simultaneously submit lists of proposed hearing exhibits;
</P>
<P>(6) Limiting the number of expert witnesses;
</P>
<P>(7) Identifying and, if practicable, scheduling all witnesses to be called; however, there is no requirement in these proceedings for the parties to submit pre-hearing statements or statements of proposed testimony by witnesses; and
</P>
<P>(8) Such other matters as may aid in the disposition of the proceeding.
</P>
<P>(b) As soon as practicable after such conference, the administrative law judge shall issue an order that recites the action taken, the amendments allowed to the pleadings, and the agreements made by the parties or their qualified representatives as to any of the matters considered. The order shall also limit the issues for hearing to those not disposed of by admission or agreement. Such order shall control the subsequent course of the proceedings, unless modified for good cause by a subsequent order. After discovery is complete, the order may be amended or supplemented if necessary.


</P>
</DIV8>

</DIV7>


<DIV7 N="57" NODE="27:3.0.1.5.9.6.57" TYPE="SUBJGRP">
<HEAD>Failure to Appear</HEAD>


<DIV8 N="§ 771.67" NODE="27:3.0.1.5.9.6.57.13" TYPE="SECTION">
<HEAD>§ 771.67   Initial applications.</HEAD>
<P>Where the applicant on an initial application for a license or permit has requested a hearing and does not appear at the appointed time and place, evidence has not been offered to refute or explain the grounds upon which disapproval of the application is contemplated, and no good cause has been shown for the failure to appear, the applicant shall be considered to have waived the hearing. When such waiver occurs, a default judgment against the applicant will be entered and the administrative law judge shall recommend disapproval of said application.


</P>
</DIV8>


<DIV8 N="§ 771.68" NODE="27:3.0.1.5.9.6.57.14" TYPE="SECTION">
<HEAD>§ 771.68   Revocation or denial of renewal.</HEAD>
<P>If, on the date set for a hearing concerning the revocation or denial of renewal of a license or permit, the licensee or permittee does not appear, no evidence has been offered, and no good cause has been shown for the failure to appear, the Attorney for the Government will proceed ex parte and offer for the record sufficient evidence to make a <I>prima facie</I> case. At such hearing, documents, statements, and affidavits may be submitted in lieu of testimony of witnesses.


</P>
</DIV8>

</DIV7>


<DIV7 N="58" NODE="27:3.0.1.5.9.6.58" TYPE="SUBJGRP">
<HEAD>Waiver of Hearing</HEAD>


<DIV8 N="§ 771.69" NODE="27:3.0.1.5.9.6.58.15" TYPE="SECTION">
<HEAD>§ 771.69   Withdrawal of request for hearing.</HEAD>
<P>At any time prior to the assignment of an administrative law judge, the licensee or permittee may, by filing written notice with the Director of Industry Operations, withdraw his request for a hearing. If such a notice is filed after assignment to the administrative law judge and prior to issuance of his recommended decision the Director of Industry Operations shall move the administrative law judge to dismiss the proceedings as moot. If such a notice is filed either after issuance of a notice of denial or notice of revocation and before assignment of the administrative law judge, or after issuance by the administrative law judge of his recommended decision and prior to the Director of Industry Operations' order disapproving the application or denying the renewal of or revoking the license or permit, the Director of Industry Operations shall, by order, dismiss the proceeding.


</P>
</DIV8>


<DIV8 N="§ 771.70" NODE="27:3.0.1.5.9.6.58.16" TYPE="SECTION">
<HEAD>§ 771.70   Adjudication based upon written submissions.</HEAD>
<P>The licensee or permittee may waive the hearing before the administrative law judge and stipulate that the matter will be adjudicated by the Director of Industry Operations based upon written submissions. Written submissions may include stipulations of law or facts, proposed findings of fact and conclusions of law, briefs, or any other documentary material. The pleadings, together with the written submissions of both the licensee or permittee and the attorney for the Government, shall constitute the record on which the initial decision shall be based. The election to contest the denial or revocation without a hearing under this section does not affect the licensee's or permittee's right to appeal to the Director pursuant to § 555.79 of this chapter or to the United States Court of Appeals for the circuit in which the licensee or permittee resides or has his principle place of business pursuant to § 555.80 of this chapter.


</P>
</DIV8>

</DIV7>


<DIV7 N="59" NODE="27:3.0.1.5.9.6.59" TYPE="SUBJGRP">
<HEAD>Surrender of License or Permit</HEAD>


<DIV8 N="§ 771.71" NODE="27:3.0.1.5.9.6.59.17" TYPE="SECTION">
<HEAD>§ 771.71   Before citation.</HEAD>
<P>If a licensee or permittee surrenders the license or permit before the notice of revocation or denial of renewal, the Director of Industry Operations may accept the surrender. But if the evidence, in the opinion of the Director of Industry Operations, warrants issuance of a notice for revocation or denial of renewal, the surrender shall be refused and the Director of Industry Operations shall issue the notice.


</P>
</DIV8>


<DIV8 N="§ 771.72" NODE="27:3.0.1.5.9.6.59.18" TYPE="SECTION">
<HEAD>§ 771.72   After citation.</HEAD>
<P>If a licensee or permittee surrenders the license or permit after notice, but prior to the referral to an administrative law judge and prior to an initial decision, the Director of Industry Operations may accept the surrender of the license or permit and dismiss the proceeding as moot. If a licensee or permittee surrenders the license or permit after notice and after the referral to the administrative law judge, but prior to the issuance of a recommended decision, the Director of Industry Operations may accept the surrender of the license or permit and shall move the administrative law judge to dismiss the proceedings as moot. In either case, if, in the opinion of the Director of Industry Operations, the evidence is such as to warrant revocation or denial of renewal, as the case may be, the surrender of the license or permit shall be refused, and the proceeding shall continue.


</P>
</DIV8>

</DIV7>


<DIV7 N="60" NODE="27:3.0.1.5.9.6.60" TYPE="SUBJGRP">
<HEAD>Motions</HEAD>


<DIV8 N="§ 771.73" NODE="27:3.0.1.5.9.6.60.19" TYPE="SECTION">
<HEAD>§ 771.73   General.</HEAD>
<P>All motions shall be made and addressed to the administrative law judge before whom the proceeding is pending, and copies of all motion papers shall be served upon the other party or parties. The administrative law judge may dispose of any motion without oral argument, but he may, if he so desires, set it down for hearing and request argument. The administrative law judge may dispose of such motion prior to the hearing on the merits or he may postpone the disposition until the hearing on the merits. No appeal may be taken from any ruling on a motion until the whole record is certified for review. Examples of typical motions may be found in the Rules of Civil Procedure referred to in § 771.2.


</P>
</DIV8>


<DIV8 N="§ 771.74" NODE="27:3.0.1.5.9.6.60.20" TYPE="SECTION">
<HEAD>§ 771.74   Prior to hearing.</HEAD>
<P>All motions that should be made prior to the hearing, such as a motion directed to the sufficiency of the pleadings or of preliminary orders, shall be filed in writing with the Director of Industry Operations or the administrative law judge if the matter has been referred to him, and shall briefly state the order or relief applied for and the grounds for such motion.


</P>
</DIV8>


<DIV8 N="§ 771.75" NODE="27:3.0.1.5.9.6.60.21" TYPE="SECTION">
<HEAD>§ 771.75   At hearing.</HEAD>
<P>Motions at the hearing may be made in writing to the administrative law judge or stated orally on the record.


</P>
</DIV8>

</DIV7>


<DIV7 N="61" NODE="27:3.0.1.5.9.6.61" TYPE="SUBJGRP">
<HEAD>Hearing</HEAD>


<DIV8 N="§ 771.76" NODE="27:3.0.1.5.9.6.61.22" TYPE="SECTION">
<HEAD>§ 771.76   General.</HEAD>
<P>If a hearing is requested, it shall be held at the time and place stated in the notice of hearing unless otherwise ordered by the administrative law judge.


</P>
</DIV8>


<DIV8 N="§ 771.77" NODE="27:3.0.1.5.9.6.61.23" TYPE="SECTION">
<HEAD>§ 771.77   Initial applications.</HEAD>
<P>(a) The administrative law judge who presides at the hearing on initial applications shall recommend a decision to the Director of Industry Operations. The administrative law judge shall certify the complete record of the proceedings before him and shall immediately forward the complete certified record to the Director of Industry Operations. The administrative law judge shall also send one copy of his recommended decision to the applicant or the applicant's representative, one copy to the Attorney for the Government, and one copy to the Director of Industry Operations, who shall make the initial decision as provided in § 771.107. The applicant may be directed by the Director of Industry Operations to produce such records as may be deemed necessary for examination. All hearings on applications shall be open to the public subject to such restrictions and limitations as may be consistent with orderly procedure.
</P>
<P>(b) If no hearing is requested, the return of the application marked “Disapproved” is the Director of Industry Operations' initial decision.


</P>
</DIV8>


<DIV8 N="§ 771.78" NODE="27:3.0.1.5.9.6.61.24" TYPE="SECTION">
<HEAD>§ 771.78   Revocation or denial of renewal.</HEAD>
<P>(a) The administrative law judge who presides at the hearing in proceedings for the revocation or denial of renewal of licenses or permits shall make a recommended decision to the Director of Industry Operations. The administrative law judge shall certify the complete record of the proceedings before him and shall immediately forward the complete certified record to the Director of Industry Operations. The administrative law judge shall also send one copy of his recommended decision to the licensee or permittee or the licensee's or permittee's representative, one copy to the Attorney for the Government, and one copy to the Director of Industry Operations, who shall make the initial decision as provided in § 771.109.
</P>
<P>(b) If no hearing is requested, the Director of Industry Operations shall make the initial decision.


</P>
</DIV8>

</DIV7>


<DIV7 N="62" NODE="27:3.0.1.5.9.6.62" TYPE="SUBJGRP">
<HEAD>Burden of Proof</HEAD>


<DIV8 N="§ 771.79" NODE="27:3.0.1.5.9.6.62.25" TYPE="SECTION">
<HEAD>§ 771.79   Initial applications.</HEAD>
<P>In hearings on the initial denial of applications, the burden of proof is on the Government to show by a preponderance of the evidence that the Director of Industry Operations had reason to believe that the applicant is not entitled to a permit or license.


</P>
</DIV8>


<DIV8 N="§ 771.80" NODE="27:3.0.1.5.9.6.62.26" TYPE="SECTION">
<HEAD>§ 771.80   Revocation or denial of renewal.</HEAD>
<P>In hearings on the revocation or denial of renewal of a license or permit, the burden of proof is on the Government to show that the Director of Industry Operations had reason to believe that the licensee or permittee is not entitled to a permit or license, as may be the case. The Government must meet this proof by a preponderance of the evidence.


</P>
</DIV8>

</DIV7>


<DIV7 N="63" NODE="27:3.0.1.5.9.6.63" TYPE="SUBJGRP">
<HEAD>General</HEAD>


<DIV8 N="§ 771.81" NODE="27:3.0.1.5.9.6.63.27" TYPE="SECTION">
<HEAD>§ 771.81   Stipulations at hearing.</HEAD>
<P>If there has been no initial conference under § 771.66, the administrative law judge may at the beginning of the hearing require that the parties attempt to arrive at such stipulations as will eliminate the necessity of taking evidence with respect to allegations of fact about which there is no substantial dispute. The administrative law judge should take similar action, where appropriate, throughout the hearing and should call and conduct any conferences that he deems advisable with a view to the simplification, clarification, and disposition of any of the issues involved in the hearing.


</P>
</DIV8>


<DIV8 N="§ 771.82" NODE="27:3.0.1.5.9.6.63.28" TYPE="SECTION">
<HEAD>§ 771.82   Evidence.</HEAD>
<P>The Federal Rules of Evidence are not binding on these proceedings. However, any relevant evidence that would be admissible under the rules of evidence governing civil proceedings in matters not involving trial by jury in the Courts of the United States shall be admissible. The administrative law judge may relax such rules in any hearing when in his judgment such relaxation would not impair the rights of either party and would more speedily conclude the hearing or would better serve the ends of justice. However, the administrative law judge shall provide for the exclusion of irrelevant, immaterial, or unduly repetitious evidence. Every party shall have the right to present his case or defense by oral or documentary evidence, depositions, or duly authenticated copies of records and documents; to submit rebuttal evidence; and to conduct such reasonable cross-examination as may be required for a full and true disclosure of the facts.
</P>
<P>(a) <I>Witnesses.</I> The administrative law judge shall have the right in his discretion to limit the number of witnesses whose testimony may be merely cumulative and shall, as a matter of policy, not only exclude irrelevant, immaterial, or unduly repetitious evidence but shall also limit the cross-examination of witnesses to that required for a full and true disclosure of the facts so as not to unnecessarily prolong the hearing and unduly burden the record. Opinion or expert testimony shall be admitted when the administrative law judge is satisfied that the witness is properly qualified as defined by Federal Rules of Evidence 701 or 702.
</P>
<P>(b) <I>Documentary evidence.</I> Material and relevant evidence shall not be excluded because it is not the best evidence unless its authenticity is challenged, in which case reasonable time shall be given to establish its authenticity. When only portions of a document are to be relied upon, the offering party shall prepare the pertinent excerpts, adequately identified, and shall supply copies of such excerpts, together with a statement indicating the purpose for which such materials will be offered, to the administrative law judge and to the other parties. Only the excerpts, so prepared and submitted, shall be received in the record. However, the whole of the original document should be made available for examination and for use by opposing counsel for purposes of cross-examination. Compilations, charts, summaries of data, and photocopies of documents may be admitted in evidence if the proceedings will thereby be expedited, and if the material upon which they are based is available for examination by the parties. Objections to the evidence shall be in short form, stating the grounds relied upon. The transcript shall not include argument or debate on objections, except as ordered by the administrative law judge, but shall include the rulings thereon. Where official notice is taken of a material fact not appearing in the evidence in the record, any party shall, on timely request, be afforded an opportunity to controvert such fact.
</P>
<P>(c) <I>Hearsay.</I> Probative, material, and reliable hearsay evidence is admissible in proceedings under this subpart.


</P>
</DIV8>


<DIV8 N="§ 771.83" NODE="27:3.0.1.5.9.6.63.29" TYPE="SECTION">
<HEAD>§ 771.83   Closing of hearings; arguments, briefs, and proposed findings.</HEAD>
<P>Before closing a hearing, the administrative law judge shall inquire of each party whether the party has any further evidence to offer, which inquiry and the response thereto shall be shown in the record. The administrative law judge may hear arguments of counsel and the administrative law judge may limit the time of such arguments at his discretion. The administrative law judge may, in his discretion, allow briefs to be filed on behalf of either party but shall closely limit the time within which the briefs for both parties shall be filed, so as to avoid unreasonable delay. The administrative law judge shall also ascertain whether the parties desire to submit proposed findings and conclusions, together with supporting reasons, and, if so, a period of not more than 15 days (unless extended by the administrative law judge)—after the close of the hearing or receipt of a copy of the record, if one is requested—will be allowed for such purpose.


</P>
</DIV8>


<DIV8 N="§ 771.84" NODE="27:3.0.1.5.9.6.63.30" TYPE="SECTION">
<HEAD>§ 771.84   Reopening of the hearing.</HEAD>
<P>The Director, the Director of Industry Operations, or the administrative law judge, as the case may be, may, as to all matters pending before him, in his discretion reopen a hearing—
</P>
<P>(a) In case of default under § 771.67 or § 771.68 where the applicant, licensee, or permittee failed to request a hearing or to appear after one was set, upon petition setting forth reasonable grounds for such failure; and
</P>
<P>(b) Where any party desires leave to adduce additional evidence upon petition summarizing such evidence, establishing its materiality, and stating reasonable grounds why such party with due diligence was unable to produce such evidence at the hearing.


</P>
</DIV8>

</DIV7>


<DIV7 N="64" NODE="27:3.0.1.5.9.6.64" TYPE="SUBJGRP">
<HEAD>Record of Testimony</HEAD>


<DIV8 N="§ 771.85" NODE="27:3.0.1.5.9.6.64.31" TYPE="SECTION">
<HEAD>§ 771.85   Stenographic record.</HEAD>
<P>A stenographic record shall be made of the testimony and proceedings, including stipulations, admissions of fact, and arguments of counsel in all proceedings. A transcript of the evidence and proceedings at the hearing shall be made in all cases.


</P>
</DIV8>


<DIV8 N="§ 771.86" NODE="27:3.0.1.5.9.6.64.32" TYPE="SECTION">
<HEAD>§ 771.86   Oath of reporter.</HEAD>
<P>The reporter making the stenographic record shall subscribe an oath before the administrative law judge, to be filed in the record of the case, that he will truly and correctly report the oral testimony and proceedings at such hearing and accurately transcribe the same to the best of his ability.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="G" NODE="27:3.0.1.5.9.7" TYPE="SUBPART">
<HEAD>Subpart G—Administrative Law Judges</HEAD>


<DIV8 N="§ 771.95" NODE="27:3.0.1.5.9.7.65.1" TYPE="SECTION">
<HEAD>§ 771.95   Responsibilities of administrative law judges.</HEAD>
<P>In hearings under this subpart, administrative law judges must apply all governing agency rulings and governing agency precedent. They shall be responsible for the conduct of hearings and shall render their decisions as soon as is reasonably possible after the hearing is closed. Administrative law judges shall also be responsible for the preparation, certification, and forwarding of the complete record of proceedings and the administrative work relating thereto and, by arrangement with Directors of Industry Operations and representatives of the Office of Chief Counsel shall have access to facilities and temporary use of personnel at such times and places as are needed in the prompt dispatch of official business.


</P>
</DIV8>


<DIV8 N="§ 771.96" NODE="27:3.0.1.5.9.7.65.2" TYPE="SECTION">
<HEAD>§ 771.96   Disqualification.</HEAD>
<P>An administrative law judge shall, at any time, withdraw from any proceeding if he deems himself disqualified. Upon the filing in good faith by the applicant, licensee, permittee, or Attorney for the Government of a timely and sufficient affidavit of facts showing personal bias or otherwise warranting the disqualification of any administrative law judge, if the administrative law judge fails to disqualify himself, the Director shall upon appeal, as provided in § 771.120, determine the matter as a part of the record and decision in the proceeding. If the Director decides the administrative law judge should have deemed himself disqualified, the Director will remand the record for hearing de novo before another administrative law judge. If the Director should decide against the disqualification of the administrative law judge, the proceeding will be reviewed on its merits by the original administrative law judge. The burden is upon the party seeking disqualification to set forth evidence sufficient to overcome the presumption of the administrative law judge's honesty and integrity.


</P>
</DIV8>


<DIV8 N="§ 771.97" NODE="27:3.0.1.5.9.7.65.3" TYPE="SECTION">
<HEAD>§ 771.97   Powers.</HEAD>
<P>Administrative law judges shall have authority to:
</P>
<P>(a) Administer oaths and affirmations;
</P>
<P>(b) Issue subpoenas as authorized by law;
</P>
<P>(c) Rule upon offers of proof and receive relevant evidence;
</P>
<P>(d) Take or cause depositions to be taken whenever the ends of justice would be served thereby;
</P>
<P>(e) Regulate the course of the hearing;
</P>
<P>(f) Hold conferences for the settlement or simplification of the issues by consent of the parties;
</P>
<P>(g) Require the attendance at such conferences of at least one representative of each party who has the authority to negotiate concerning resolution of issues in controversy;
</P>
<P>(h) Dispose of procedural requests or similar matters;
</P>
<P>(i) Render recommended decisions in proceedings on applications for licenses and permits and on revocation or denial of renewal of licenses or permits;
</P>
<P>(j) Call, examine, and cross-examine witnesses, including hostile or adverse witnesses, when the administrative law judge deems such action to be necessary to a just disposition of the case, and introduce into the record documentary or other evidence; and
</P>
<P>(k) Take any other action authorized by rule of the Bureau of Alcohol, Tobacco, Firearms, and Explosives consistent with the Administrative Procedure Act. <I>See</I> 5 U.S.C. 556(c) and 18 U.S.C. 843.


</P>
</DIV8>


<DIV8 N="§ 771.98" NODE="27:3.0.1.5.9.7.65.4" TYPE="SECTION">
<HEAD>§ 771.98   Separation of functions.</HEAD>
<P>Administrative law judges shall perform no functions inconsistent with their duties and responsibilities. The Director may assign administrative law judges duties not inconsistent with the performance of their functions as administrative law judges. Except to the extent required for the disposition of ex parte matters as required by law, no administrative law judge shall consult any person or party as to any fact in issue unless there has been notice and opportunity for all parties to participate. The functions of the administrative law judge shall be entirely separated from the general investigative functions of the agency. No officer, employee, or agent engaged in the performance of investigative or prosecuting functions in any proceeding shall, in that proceeding or a factually related proceeding, participate or advise in the administrative law judge's or Director's decision, or in the agency review on appeal, except as a witness or counsel in the proceedings. The administrative law judge may not informally obtain advice or opinions from the parties or their counsel, or from any officer or employee of the ATF, as to the facts or the weight or interpretation to be given to the evidence. The administrative law judge may, however, informally obtain advice on matters of law or procedure in a proceeding from officers or employees who were not engaged in the performance of investigative or prosecuting functions in that proceeding or a factually related proceeding. The administrative law judge may, at any time, consult with and obtain instructions from the Director on questions of law and policy. Furthermore, it is not a violation of the separation of functions for the administrative law judge to participate in the questioning of witnesses, where the questioning is for clarification or to move the proceedings along, and where the questioning is not so extensive as to place the administrative law judge in the position of a prosecuting officer.


</P>
</DIV8>


<DIV8 N="§ 771.99" NODE="27:3.0.1.5.9.7.65.5" TYPE="SECTION">
<HEAD>§ 771.99   Conduct of hearing.</HEAD>
<P>The administrative law judge is charged with the duty of conducting a fair and impartial hearing and of maintaining order in form and manner consistent with the dignity of a court proceeding. In the event that counsel or any person or witness in any proceeding shall refuse to obey the orders of the administrative law judge, or be guilty of disorderly or contemptuous language or conduct in connection with any hearing, the administrative law judge may, for good cause stated in the record, suspend the hearing, and, in the case of disorderly or contemptuous language or conduct by an attorney, report the matter to the Department of Justice, Office of Professional Responsibility. <I>See</I> 28 CFR 0.39a(a)(9). The refusal of a witness to answer any question that has been ruled to be proper shall be considered by the administrative law judge in determining the weight to be given all the testimony of that witness.


</P>
</DIV8>


<DIV8 N="§ 771.100" NODE="27:3.0.1.5.9.7.65.6" TYPE="SECTION">
<HEAD>§ 771.100   Unavailability of administrative law judge.</HEAD>
<P>In the event that the administrative law judge designated to conduct a hearing becomes unavailable before the filing of his findings and recommended decision, the Director may assign the case to another administrative law judge for the continuance of the proceeding, in accordance with the regulations in this part in the same manner as if he had been designated administrative law judge at the commencement of the proceeding.


</P>
</DIV8>

</DIV6>


<DIV6 N="H" NODE="27:3.0.1.5.9.8" TYPE="SUBPART">
<HEAD>Subpart H—Decisions</HEAD>


<DIV8 N="§ 771.105" NODE="27:3.0.1.5.9.8.65.1" TYPE="SECTION">
<HEAD>§ 771.105   Administrative law judge's findings and recommended decision.</HEAD>
<P>Within a reasonable time after the conclusion of the hearing, and as expeditiously as possible, the administrative law judge shall render his recommended decision. All decisions shall become a part of the record and, if proposed findings and conclusions have been filed, shall show the administrative law judge's ruling upon each of such proposed findings and conclusions. Decisions shall consist of:
</P>
<P>(a) A brief statement of the issues of fact involved in the proceeding;
</P>
<P>(b) The administrative law judge's findings and conclusions, as well as the reasons or basis therefor with record references, upon all the material issues of fact, law, or discretion presented on the record (including, when appropriate, comment as to the credibility and demeanor of the witnesses); and
</P>
<P>(c) The administrative law judge's recommended determination as to the revocation or denial at issue.


</P>
</DIV8>


<DIV8 N="§ 771.106" NODE="27:3.0.1.5.9.8.65.2" TYPE="SECTION">
<HEAD>§ 771.106   Certification and transmittal of record and decision.</HEAD>
<P>After reaching his decision, the administrative law judge shall certify the complete record of the proceeding before him and shall immediately forward the complete certified record together with one copy of the administrative law judge's recommended decision to the Director of Industry Operations for initial decision, one copy of the recommended decision to the applicant or the applicant's representative, and one copy of the recommended decision to the Attorney for the Government.


</P>
</DIV8>


<DIV7 N="65" NODE="27:3.0.1.5.9.8.65" TYPE="SUBJGRP">
<HEAD>Action by Director of Industry Operations</HEAD>


<DIV8 N="§ 771.107" NODE="27:3.0.1.5.9.8.65.3" TYPE="SECTION">
<HEAD>§ 771.107   Initial application proceedings.</HEAD>
<P>(a) <I>Accepting the recommended decision.</I> If the Director of Industry Operations, after consideration of the record of the hearing and of any proposed findings, conclusions, or exceptions filed with him by the applicant, accepts the recommended decision of the administrative law judge, the Director of Industry Operations shall by order approve or disapprove of the application in accordance with the recommended decision. If the Director of Industry Operations approves the application, he shall briefly state for the record his reasons therefor. However, if the Director of Industry Operations disapproves of the applications, he shall serve a copy of the administrative law judge's recommended decision on the applicant, informing the applicant of the Director of Industry Operations' contemplated action and affording the applicant not more than 10 days in which to submit proposed findings and conclusions or exceptions to the recommended decision with reasons in support thereof.
</P>
<P>(b) <I>Rejecting the recommended decision.</I> If, after such consideration referenced in paragraph (a) of this section, the Director of Industry Operations rejects the recommended decision of the administrative law judge, in whole or in part, the Director of Industry Operations shall by order make such findings and conclusions as in his opinion are warranted by the law and facts in the record. Any decision of the Director of Industry Operations ordering the disapproval of an application for a permit shall state the findings and conclusions upon which it is based, including his ruling upon each proposed finding, conclusion, and exception to the administrative law judge's recommended decision, together with a statement of the administrative law judge's findings, conclusions, and reasons or basis therefor, upon all material issues of fact, law, or discretion presented on the record. A signed original of the decision of the Director of Industry Operations shall be served upon the applicant and the original copy containing a certificate of service shall be placed in the official record of the proceeding.


</P>
</DIV8>


<DIV8 N="§ 771.108" NODE="27:3.0.1.5.9.8.65.4" TYPE="SECTION">
<HEAD>§ 771.108   Director of Industry Operations' decision.</HEAD>
<P>When the Director of Industry Operations issues an initial decision in accordance with § 771.77 or § 771.107 the decision shall become a part of the record. The decision shall consist of:
</P>
<P>(a) A brief statement of the issues involved in the proceedings;
</P>
<P>(b) The Director of Industry Operations' findings and conclusions, as well as the reasons therefor; and
</P>
<P>(c) The Director of Industry Operations' determination on the record.


</P>
</DIV8>


<DIV8 N="§ 771.109" NODE="27:3.0.1.5.9.8.65.5" TYPE="SECTION">
<HEAD>§ 771.109   Revocation or denial of renewal proceedings.</HEAD>
<P>(a) <I>Accepting the recommended decision.</I> After consideration of the complete certified record of the hearing, if the Director of Industry Operations agrees with the recommended decision of the administrative law judge, the Director of Industry Operations shall enter an order revoking or denying the renewal of the license or permit or dismissing the proceedings in accordance with the administrative law judge's recommended decision.
</P>
<P>(b) <I>Rejecting the recommended decision.</I> After consideration of the complete certified record of the hearing, if the Director of Industry Operations disagrees with the recommended decision of the administrative law judge, he may file a petition with the Director for review of the recommended decision, as provided in § 771.120. If the Director of Industry Operations files such a petition, he shall withhold issuance of the order pending the decision of the Director, upon receipt of which he shall issue the order in accordance with the Director's decision. A signed original of the order of the Director of Industry Operations shall be served upon the licensee or permittee or his representative and the original copy containing a certificate of service shall be placed in the official record of the proceeding.
</P>
<P>(c) <I>Decisions pursuant to § 771.78(b).</I> In a case where the initial decision is made by the Director of Industry Operations in accordance with § 771.78(b), the Director of Industry Operations shall also issue an order revoking or denying the renewal of the license or permit, or dismissing the proceedings in accordance with his initial decision. A signed original of the decision and order of the Director of Industry Operations shall be served upon the licensee or permittee or his representative and the original copy placed in the official record of the proceeding.


</P>
</DIV8>


<DIV8 N="§ 771.110" NODE="27:3.0.1.5.9.8.65.6" TYPE="SECTION">
<HEAD>§ 771.110   Revocation or denial of renewal.</HEAD>
<P>Pursuant to § 771.109(a), when the Director of Industry Operations issues an order revoking or denying the renewal of a license or permit, he shall furnish a copy of the order and of the recommended decision on which it is based to the Director. Should such order be subsequently set aside on review by the courts, the Director of Industry Operations will so advise the Director.


</P>
</DIV8>


<DIV8 N="§ 771.111" NODE="27:3.0.1.5.9.8.65.7" TYPE="SECTION">
<HEAD>§ 771.111   Proceedings involving violations not within the division of issuance of license or permit.</HEAD>
<P>In the event violations occurred at a place not within the field division where the licensee or permittee is located, the Director of Industry Operations of the field division where the licensee or permittee is located will take jurisdiction over any proceeding and will take appropriate action in accordance with this subpart, including issuing the relevant notice.


</P>
</DIV8>

</DIV7>

</DIV6>


<DIV6 N="I" NODE="27:3.0.1.5.9.9" TYPE="SUBPART">
<HEAD>Subpart I—Review</HEAD>


<DIV8 N="§ 771.120" NODE="27:3.0.1.5.9.9.66.1" TYPE="SECTION">
<HEAD>§ 771.120   Appeal on petition to the Director.</HEAD>
<P>(a) An appeal to the Director may be made by the applicant, licensee, or permittee, or by the Director of Industry Operations (DIO). For the applicant, licensee, or permittee, such appeal shall be made by filing a petition for review on appeal with the Director within 15 days of the service of the adverse initial decision by the Director of Industry Operations. For the Director of Industry Operations, such appeal shall be taken by filing a petition for review on appeal with the Director within 15 days of the issuance of the administrative law judge's decision recommending against revocation or denial of renewal. The petitioning applicant, licensee, or permittee must submit arguments showing that the Director of Industry Operations' initial decision, and if applicable the underlying administrative law judge's recommended decision, was without reasonable warrant in fact or contrary to law and regulations. The petitioning DIO must submit arguments showing the administrative law judge's recommended decision was without reasonable warrant in fact or contrary to law and regulations. Nothing in this part shall limit the authority of the Director to review the administrative law judge's decision exercising all the powers that he would have in making the recommended decision.
</P>
<P>(b) A copy of the petition shall be filed with the Director of Industry Operations or served on the applicant, licensee, or permittee, as the case may be. In the event of an appeal, the Director of Industry Operations shall immediately certify and forward the complete original record, by certified mail, to the Director, for his consideration and review.


</P>
</DIV8>


<DIV8 N="§ 771.121" NODE="27:3.0.1.5.9.9.66.2" TYPE="SECTION">
<HEAD>§ 771.121   Review by Director.</HEAD>
<P>(a) <I>Modification or reversal.</I> On appeal, the Director shall afford a reasonable opportunity for the submission of proposed findings, conclusions, or exceptions with reasons in support thereof and an opportunity for oral argument. The Director may alter or modify any finding of the administrative law judge (or of the Director of Industry Operations as the case may be) and may affirm, reverse, or modify the recommended decision of the administrative law judge, or the initial decision of the Director of Industry Operations, or may remand the case for further hearing, but shall not consider evidence that is not a part of the record.
</P>
<P>(b) <I>Affirmance.</I> Except in the case of a remand, when, on appeal, the Director affirms the initial decision of the Director of Industry Operations or the recommended decision of the administrative law judge, as the case may be, such decision shall be the agency's final decision.
</P>
<P>(c) <I>Recusal.</I> Appeals and petitions for review shall not be decided by the Director in any proceeding in which the Director has engaged in an investigation or prosecution and in such event the Director shall so state his disqualification in writing and refer the record to the Deputy Director for appropriate action. The Deputy Director may designate an Assistant Director or one of the Deputy Director's principal aides to consider any proceeding instead of the Director. The original copy of the decision on review shall be placed in the official record of the proceeding, a signed duplicate original shall be served upon the applicant, licensee, or permittee, and a copy shall be transmitted to the Director of Industry Operations.


</P>
</DIV8>


<DIV8 N="§ 771.122" NODE="27:3.0.1.5.9.9.66.3" TYPE="SECTION">
<HEAD>§ 771.122   Denial of renewal or revocation.</HEAD>
<P>If the Director orders the denial of an application, a copy of the application marked “Disapproved” will be returned to the applicant by the Director of Industry Operations. If the Director orders a revocation of a license of permit, any stay of revocation will be withdrawn and the revocation will become effective upon the order of the Director of Industry Operations. After the issuance of a denial of a renewal application or a revocation, and pending the final determination of a timely appeal, the licensee or permittee may continue operations, if at all, pursuant to § 555.83 of this chapter.


</P>
</DIV8>


<DIV8 N="§ 771.123" NODE="27:3.0.1.5.9.9.66.4" TYPE="SECTION">
<HEAD>§ 771.123   Court review.</HEAD>
<P>(a) If an applicant, licensee, or permittee files an appeal in the United States Court of Appeals for the circuit in which he resides or has his principle place of business, within 60 days after the receipt of the Director's decision, the Director, upon notification that an appeal has been taken, shall prepare the record for submission to the court in accordance with applicable court rules.
</P>
<P>(b) If an applicant, licensee, or permittee does not seek review with the Director, but instead seeks review within 60 days after the receipt of the initial decision of the Director of Industry Operations pursuant to § 771.109, the Director of Industry Operations, upon notification that an appeal has been taken, shall prepare the record for submission to the court in accordance with applicable court rules. The Director of Industry Operations shall notify the Director if such an appeal is taken.
</P>
<P>(c) The Director, or the Director of Industry Operations, as the case may be, shall certify the correctness of the transcript of the record, forward one copy to the attorney for the Government in the review of the case, and file the original record of the proceedings with the original certificate in the appropriate United States Court of Appeals.


</P>
</DIV8>

</DIV6>


<DIV6 N="J" NODE="27:3.0.1.5.9.10" TYPE="SUBPART">
<HEAD>Subpart J—Miscellaneous</HEAD>


<DIV8 N="§ 771.124" NODE="27:3.0.1.5.9.10.66.1" TYPE="SECTION">
<HEAD>§ 771.124   Depositions.</HEAD>
<P>The administrative law judge may take or order the taking of depositions by either party to the proceeding at such time and place as the administrative law judge may designate before a person having the power to administer oaths, upon application therefor and notice to the parties to the action. The testimony shall be reduced to writing by the person taking the deposition, or a person under his direction, and the deposition shall be subscribed by the deponent unless subscribing thereof is waived in writing by the parties.


</P>
</DIV8>


<DIV8 N="§ 771.125" NODE="27:3.0.1.5.9.10.66.2" TYPE="SECTION">
<HEAD>§ 771.125   Witnesses and fees.</HEAD>
<P>Witnesses summoned before the administrative law judge may be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses whose depositions are taken and the persons taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the United States. Witness fees and mileage shall be paid by the party at whose instance the witnesses appear and the person taking the deposition shall be paid by the party at whose instance the deposition is taken.


</P>
</DIV8>


<DIV8 N="§ 771.126" NODE="27:3.0.1.5.9.10.66.3" TYPE="SECTION">
<HEAD>§ 771.126   Discovery.</HEAD>
<P>The discovery provisions of the Federal Rules of Civil Procedure and the Federal Rules of Criminal Procedure are not controlling with respect to agency proceedings under this part. However, fundamental fairness requires a party be given the opportunity to know what evidence is offered and a chance to rebut such evidence. Either party may petition the administrative law judge for non-burdensome discovery if the party can demonstrate that the interests of justice require disclosure of these materials.


</P>
</DIV8>


<DIV8 N="§ 771.127" NODE="27:3.0.1.5.9.10.66.4" TYPE="SECTION">
<HEAD>§ 771.127   Privileges.</HEAD>
<P>The Administrative Procedure Act, 5 U.S.C. 559, provides that, except as otherwise required by law, privileges relating to procedure or evidence apply equally to agencies and persons. Therefore, an agency may rely on judicially-approved privileges to resist production of its files where appropriate.


</P>
</DIV8>


<DIV7 N="66" NODE="27:3.0.1.5.9.10.66" TYPE="SUBJGRP">
<HEAD>Record</HEAD>


<DIV8 N="§ 771.135" NODE="27:3.0.1.5.9.10.66.5" TYPE="SECTION">
<HEAD>§ 771.135   What constitutes record.</HEAD>
<P>The transcript of testimony, pleadings, exhibits, all papers and requests filed in the proceeding, and all findings, decisions, and orders, shall constitute the exclusive record. Where the decision rests on official notice of material fact not appearing in the record, the administrative law judge shall so state in his findings and any party shall, on timely request, be afforded an opportunity to show facts to the contrary.


</P>
</DIV8>


<DIV8 N="§ 771.136" NODE="27:3.0.1.5.9.10.66.6" TYPE="SECTION">
<HEAD>§ 771.136   Availability.</HEAD>
<P>A copy of the record shall be available for inspection or copying by the parties to the proceedings during business hours at the office of the administrative law judge or the Director of Industry Operations or, pending administrative review, at the Office of the Director.


</P>
</DIV8>

</DIV7>

</DIV6>

</DIV5>


<DIV5 N="772-799" NODE="27:3.0.1.5.10" TYPE="PART">
<HEAD>PARTS 772-799 [RESERVED]


</HEAD>
</DIV5>

</DIV4>

</DIV3>

</DIV1>

</ECFRBRWS>
</BODY>
</TEXT>
</DLPSTEXTCLASS>
